Ord 2201 - Participation in Alternative Voluntary Redevelopment Program'71 `EMMOLM*U1
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
ENACTED PURSUANT TO HEALTH AND SAFETY CODE SECTION 34193 TO
CONDITIONALLY ELECT AND IMPLEMENT PARTICIPATION BY THE
TOWN OF LOS GATOS AND THE TOWN OF LOS GATOS
REDEVELOPMENT AGENCY IN THE ALTERNATIVE VOLUNTARY
REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF THE
CALIFORNIA COMMUNITY REDEVELOPMENT LAW
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ORDAINS AS FOLLOWS:
SECTION 1. RECITALS AND BACKGROUND INFORMATION
a. Pursuant to the California Community Redevelopment Law (Health and Safety
Code Section 33000 et sec.; the "Redevelopment Law "), the Town Council (the "Council') of
the Town of Los Gatos (the "Town ") adopted Ordinance No. 1806 on December 4, 1989
declaring the need for the Town of Los Gatos Redevelopment Agency (the "Agency ") to
function in the Town.
b. Also in accordance with the Redevelopment Law, the Town Council adopted
Ordinance No. 1882 on November 25, 1991 adopting the Redevelopment Plan for the Central
Los Gatos Redevelopment Project (the "Redevelopment Plan "), and the Agency is responsible
for implementing the Redevelopment Plan pursuant to the Redevelopment Law.
C. ABxl 26 (the 'Dissolution Act ") and ABxl 27 (the "Voluntary Program Act ";
and together with the Dissolution Act, the "Redevelopment Restructuring Acts ") have been
enacted to significantly modify the Redevelopment Law generally as follows:
1. The Dissolution Act immediately suspends all new redevelopment
activities and incurrence of indebtedness, and dissolves redevelopment agencies effective
October 1, 2011; and
2. The Voluntary Program Act, through the addition of Part 1.9 to the
Redevelopment Law (the "Alternative Voluntary Redevelopment Program "), allows a
redevelopment agency to avoid dissolution under the Dissolution Act by opting into an
alternative voluntary redevelopment program requiring specified annual contributions to local
school and special districts.
d. Specifically, Section 34193(a) of the Redevelopment Law (as added to the
Redevelopment Law by the Voluntary Program Act) authorizes the Council to enact an
ordinance to comply with Part 1.9 of the Redevelopment Law, thereby exempting the Agency
from the provisions of the Dissolution Act, and enabling the Agency to continue to exist and
function under the Redevelopment Law, so long as the Town and the Agency comply with the
Alternative Voluntary Redevelopment Program set forth in Part 1.9 of the Redevelopment Law.
e. Through the adoption and enactment of this Ordinance, it is the intent of the
Council to enact the ordinance described in Section 34193(a) of the Redevelopment Law and to
participate for itself and on behalf of the Agency in the Alternative Voluntary Redevelopment
Program set forth in Part 1.9 of the Redevelopment Law.
f Pursuant to Section 34193.2(b) of the Redevelopment Law, the Council
understands that participation in the Alternative Voluntary Redevelopment Program requires
remittance of certain payments as set forth in the Voluntary Program Act (as further described
below), and also constitutes an agreement on the part of the Town, in the event the Town fails to
make such remittance payments, to assign its rights to any payments owed by the Agency,
including, but not limited to, payments from loan agreements, to the State of California.
g. The Council does not intend, by enactment of this Ordinance, to waive any rights
of appeal regarding the amount of any remittance payments established by the California
Department of Finance, as provided in the Voluntary Program Act.
h. On August 11, 2011, the California Supreme Court agreed to review the
California Redevelopment Association and League of California Cities' petition challenging the
constitutionality of the Redevelopment Restructuring Acts and issued an order granting a partial
stay on specified portions of the Redevelopment Restructuring Acts, as modified on August 17,
2011 (the "Stay "), including a stay of the provisions of the Voluntary Program Act.
i. Accordingly, the Town Council intends to adopt this Ordinance understanding
that it will be effective only upon the lifting of the Stay and the Court's determination that the
Voluntary Program Act is constitutional and Council's ratification of the Ordinance.
SECTION 2. ENACTMENT OF ORDINANCE PURSUANT TO REDEVELOPMENT LAW
SECTION 34193(a)
To the extent required by law to maintain the existence and powers of the Agency under the
Redevelopment Law (including the Redevelopment Restructuring Acts), the Council hereby
enacts the ordinance authorized by Section 34193(a) of the Redevelopment Law, whereby the
Town, on behalf of itself and the Agency, elects to and will comply with the provisions of Part
1.9 of the Redevelopment Law, including the making of the community remittance payments
called for in Section 34194 of the Redevelopment Law (the "Remittance Payments "), and
whereby the Agency will no longer be subject to dissolution or the other prohibitions and
limitations of Parts 1.8 and 1.85 of the Redevelopment Law as added by the Dissolution Act.
SECTION 3. ADDITIONAL UNDERSTANDINGS AND INTENT
It is the understanding and intent of the Council that the Town will enter into an agreement with
the Agency as authorized pursuant to Section 34194.2 of the Redevelopment Law, whereby the
Agency will transfer annual portions of its tax increment to the Town in amounts not to exceed
the annual Remittance Payments (the "Agency Transfer Payments ") to enable the Town, directly
or indirectly, to make the annual Remittance Payments. Unless otherwise specified by resolution
of the Council, it is the Council's intent that the Town's annual Remittance Payments shall be
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made exclusively from the Agency Transfer Payments or from other funds that become available
as a result of the Town's receipt of the Agency Transfer Payments. The Council does not intend,
by enactment of this Ordinance, to pledge any of its general fund revenues or other assets to
make the Remittance Payments, it being understood by the Council that any Remittance
Payments will be funded solely from the Agency Transfer Payments and/or other assets
transferred to the Town in accordance with the Voluntary Program Act.
SECTION 4. CEQA
The Council finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4),
that this ordinance is exempt from the requirements of the California Environmental Quality Act
(CEQA) in that it is not a Project, but instead consists of the creation and continuation of a
governmental funding mechanism for potential future projects and programs, and does not
commit funds to any specific project or program. The appropriate environmental review shall be
completed in accordance with CEQA prior to the commencement of any future Agency-
supported project or program.
SECTION 5. SEVERABILITY
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to
be unconstitutional and invalid, such decision shall not affect the validity of the remaining
portion of this Ordinance. The Council hereby declares that it would have passed this Ordinance
and every section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any
one or more sections, subsections, clauses or phrases be declared unconstitutional or invalid.
SECTION 7. ENACTMENT AND EFFECTIVE DATES
This Ordinance is deemed enacted as of September 6, 2011 for purposes of Section 34193(a) of
the Redevelopment Law, and shall take effect and will be enforced thirty (30) days after its
adoption, conditioned upon the lifting of the Stay and the Court's determination that the
Voluntary Program Act is constitutional, subject to ratification by Council.
SECTION 8. PUBLICATION AND POSTING
The Town Clerk is directed to post and /or publish this Ordinance (or summary thereof) as
required by law.
The foregoing Ordinance was duly introduced at a regular meeting of the Town Council held on
September 6, 2011, and finally adopted at a regular meeting of the Town Council of Los Gatos
on September 19, 2011, by the following votes to wit:
TOWN OF LOS GATOS:
AYES: Steven Leonardis, Diane McNutt, Steve Rice, Barbara Spector, Mayor /Chair Joe
Pirzynski
NAYS:
V.1 1r'll I
ABSENT:
SIGNED:
MAYOR/CHAIR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST: & Wl
CLERK ADMINISTATOR/SECRETARY OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA