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AGENDA BILL Agenda Item No. 7(A) Date: January 17, 2012 To: City Council of the City ofEl Cerrito El Cerrito Redevelopment Agency Board From: Lori Trevifio, Redevelopment Manager Hilde Myall, Senior Project Manager Subject: Actions related to State dissolution of the Redevelopment Agency ACTION REQUESTED Staff is requesting the following actions of members of the Redevelopment Agency Board and the City Council, pursuant to legislation dissolving redevelopment agencies, enacted by the State on June 29, 2011 and ruled constitutional by the State Supreme Court on December 29, 2011: 1) Adoption of an Agency Resolution amending its Enforceable Obligation Payment Schedule previously approved on August 15, 2011, for publication and delivery to the County Auditor and required State agencies; and 2) Adoption of a City Resolution electing to retain the Redevelopment Agency's housing assets and functions upon its dissolution on February 1, 2012. BACKGROUND On June 29, 2011, the State enacted AB1x26 (the "Dissolution Act"), which respectively dissolved redevelopment agencies throughout California, and AB 1 x27 (the "Alternative Redevelopment Program Act"), which provided cities a voluntary alternative redevelopment program ARP") for continuation of redevelopment activities contingent on annual payments to the State. Cities and redevelopment agencies challenged the constitutionality of the legislation and the State Supreme Court issued a stay of portions of the legislation. The Redevelopment Agency went into a suspension period per the requirements of the Dissolution Act, and the City and/or Agency took various actions in keeping with requirements of both statutes, pending results of the litigation. Those actions included: • Adopting an Agency Resolution approving an Enforceable Obligation Payment Schedule ("EOPS") for its obligations through December 31, 2011; posted the schedule on the City website and made required notifications; and made payments only for obligations listed on the EOPS; • Adopting a City Resolution electing to serve as the Successor Agency to the Redevelopment Agency, should the City choose not to or be unable to participate in the V ARP; and • Enacting an ordinance electing to participate in the V ARP and adopted both City and Agency Resolutions approving a funding agreement for the required opt-in ---PAGE BREAK--- Agenda Item No. 7(A) payment to the State, all contingent on the Court ruling that the V ARP is constitutional. The Dissolution Act also provided the City the ability to assume the Agency's affordable housing responsibilities, but the fiscal impact on the City of making such an election was sufficiently uncertain for City staff to recommend the City Council wait to consider that action pending clean-up legislation to clarify various issues or until it became clear the Agency would be dissolved. DISSOLUTION AND SUCCESSOR AGENCY On December 29, 2011, the Court ruled the Alternative Redevelopment Program Act unconstitutional, but upheld the constitutionality of the Dissolution Act and extended the timelines for suspension and dissolution of agencies by four months. Therefore, the Redevelopment Agency remains in suspension through the month of January and will be dissolved on February 1, 2012. Upon dissolution, the City as Successor Agency to the Redevelopment Agency will assume certain of the Redevelopment Agency's functions and all assets of the Agency will be transferred to the Successor Agency. Staff is still in the process of evaluating further implications of the legislation, which appears to have unintended consequences and conflicting provisions, and will return with additional information and clarifications as they become available. In the meantime, in keeping with the extended timelines, staff and legal counsel are recommending the City and Agency take the requested actions. AMENDED ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Attached is a resolution with an amendment to the EOPS originally adopted by the Agency Board on July 15, 2011. Revision of the EOPS is not clearly required under the Court ruling, but is permitted and advisable since the original schedule was only to cover payment of Agency obligations due during Agency suspension, the period ending December 31, 2011 and the suspension now extends through the end of this month. The Dissolution Act also required the Agency to prepare an initial Recognized Obligation Payment Schedule (ROPS) for Agency obligations due through June 30, 2012 for submittal to its Successor Agency, though no formal action was required. As a result of the City's election to participate in the VARP, the Redevelopment Agency did not prepare an initial ROPS. Given the impending Agency dissolution, the Court extended the deadline for its preparation and submittal by four months and the current deadline for the preparation of the ROPS is March 1, 2012. The amended EOPS being considered includes payment schedules extended through the end of June 30, 2012, and other revisions that are noted on the schedule. The amended EOPS will be submitted to the County Auditor and State agencies by January 31, 2012. It will be used as the basis for the initial ROPS being submitted to the Successor Agency at the same time. The initial ROPS will be subject to review and/or approval of the Successor Agency, an Oversight Board, the County Auditor and the State through a process outlined in the Dissolution Act. Staff will return to the Successor Agency in February to provide information on that process. The budget implications of the Agency dissolution will be discussed in detail at the midyear budget review in February. Page 2 ---PAGE BREAK--- Agenda Item No. 7(A) HOUSING FUNCTIONS Under the Dissolution Act, the City may elect to retain the Redevelopment Agency's housing functions, including its redevelopment powers to fulfill housing obligations, and its assets, but excluding any unencumbered amounts that have already been deposited in the Housing Fund. If the City chooses not to do so, those functions, powers, and assets would be assumed by the County Housing Authority. The Dissolution Act requires the Successor Agency to repay amounts previously borrowed from the Housing Fund by the Redevelopment Agency to the entity that assumes the Redevelopment Agency's housing functions. By electing to retain the housing functions, the City would receive payments on the loans made by the Housing Fund for payments to the Educational Revenue Augmentation Fund ("ERAF") and Supplemental ERAF. Outstanding ERAF and SERAF loans total $1,663,091 and must be repaid by 2015. While the assumption of housing responsibilities is written broadly in the legislation and is difficult to interpret, assuming housing responsibilities would enable the local community to control development of the property already conveyed by the Agency to the City in February 2011 for future development with affordable housing. Collection of loan repayments is the only funding likely to be available for current and future housing projects and programs. Despite the loss of other funding for housing functions, for the above reasons, staff is recommending the City assume the Redevelopment Agency's housing functions. While the Dissolution Act does not establish a specific deadline for this action, staff recommends adoption of the necessary resolution prior to the Agency's dissolution on February 1, 2012. LEGAL CONSIDERATIONS The Agency's General Counsel and the City Attorney have reviewed this report and the attachments to ensure they are in keeping with the Dissolution Act. Executive Director & City Manager Attachments: 1. Agency Resolution and Amended Enforceable Obligation Payment Schedule 2. City Resolution Electing to Assume the Redevelopment Agency's Affordable Housing Functions Upon Dissolution Page 3 ---PAGE BREAK--- RESOLUTION NO. Agenda Item No. 7(A) Attachment 1 RESOLUTION OF THE EL CERRITO REDEVELOPMENT AGENCY APPROVING AND AMENDING THE ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF THE REDEVELOPMENT LAW WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "Redevelopment Law"), the City Council of the City of El Cerrito (the "City Council") adopted the City of El Cerrito Redevelopment Plan by Ordinance No. 77-17 on November 28, 1977, and subsequently amended by Ordinance No. 80-13 on December 15, 1980; by Ordinance No. 89-5 on July 10, 1989; by Ordinance No. 94-4 on July 25, 1994; by Ordinance No. 2004-3 on March 1, 2004, by Ordinance No. 2005-1 on March 21, 2005; and by Ordinance No. 2006-10 on November 6, 2007 (as amended, hereafter the "Redevelopment Plan"); and WHEREAS, the El Cerrito Redevelopment Agency (the "Agency") is responsible for implementing the Redevelopment Plan pursuant to the Redevelopment Law; and WHEREAS, Section 34169 of the California Redevelopment Law requires the Agency to adopt an enforceable obligation schedule (the "Enforceable Obligation Payment Schedule") listing all of the obligations that are enforceable within the meaning of Section 34167(d) of the Redevelopment Law and to designate an official of the Agency whose responsibility shall be to provide information and documentation for items listed in the Enforceable Obligation Payment Schedule; and WHEREAS, the Agency prepared its Enforceable Obligation Payment Schedule setting forth all of the obligations which the Agency has determined are enforceable obligations under Section 34167(d) of the Redevelopment Law, which was approved on by way of Agency Resolution No. 616; and WHEREAS, the Agency is authorized to amend the Enforceable Obligation Payment Schedule and has prepared such an amended schedule, which is Exhibit A to this Resolution; and WHEREAS, the Agency Board has reviewed and duly considered the proposed amended Enforceable Obligation Payment Schedule, documents and other written evidence presented at the meeting. NOW, THEREFORE, BE IT RESOLVED, that the Agency Board finds that the above Recitals are true and correct and have served, together with the supporting documents, as the basis for the findings and approvals set forth below. BE IT FURTHER RESOLVED, that the Agency hereby approves and appropriates (to the extent not already appropriated) the amounts necessary to fund the Agency's obligations as a lawful expenditure of Agency funds under the Law. The Agency's current fiscal year budget is hereby amended to the extent necessary to implement the foregoing appropriation. 1 ---PAGE BREAK--- Agenda Item No. 7(A) Attachment 1 BE IT FURTHER RESOLVED, that the Agency Board hereby approves and adopts the amended Enforceable Obligation Payment Schedule. BE IT FURTHER, RESOLVED, that the Agency Board authorizes the Agency's Executive Director or the Executive Director's designee to take such other actions and execute such other documents as are appropriate to effectuate the intent of this Resolution and to implement the Enforceable Obligation Payment Schedule on behalf of the Agency. BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect upon adoption. The above and foregoing resolution was duly and regularly passed and adopted at a meeting by the Redevelopment Agency Board on the 17th day of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: I certify that the foregoing is a true and correct copy of the original Resolution on file in the office of the Agency Secretary of the El Cerrito Redevelopment Agency. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal of the El Cerrito Redevelopment Agency this _th day of January, 2012. Cheryl Morse, Agency Secretary Approved: Ann Cheng, Agency Chairperson 2 ---PAGE BREAK--- Name of Redevelopment Agency: El Cerrito Redevelopment Agency Project Area(s} ~ty of El Cerrito Redevelopment Project Area ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per ABlX 26- Section 34167 and 34169, and State Supreme Court Ruling on CRA v. Matosantos Total Outstanding Debt or Total Due During Fiscal Project Name I Debt Obligation Payee Description Obligation Year 1 1997 Tax Allocation Bonds, Series A Union Bank Refunding of prior TAB for Redev Projs 4,748,727.50 557,547.50 2 1998 Tax Allocation Bonds, Series B Union Bank Refunding of prior TAB for L&M Hsg Pro·s 1,091,775.00 215,937.50 3) 2004 Tax Allocation Bonds, Series A Union Bank Tax-exempt TAB for Infrastructure Projs 13,849,540.00 426,227.50 4) 2004 Tax Allocation Bonds, Series B Union Bank Portion of Taxable TAB for Redev Pro·s 492,090.00 492,090.00 5) 2004 Tax Allocation Bonds, Series B Union Bank Portion ofTaxable TAB for L&M Hsg Projs 5,521,045.00 273,065.00 6) Valente Promissory _Note George Valente Loan for land a~istion 3,746,801.06 288,215.00 7) Cooperation Agreement El Cerrito Municipal Services Corporation Redevelopment Plan implementation /non-housing) 106,230,000.00 1,626,340.00 8) Cooperation Agreement City of El Cerrito Redevelopment Plan implementation (housing) 50,700,000.00 208,670.00 9) =l=raele a, baFeJ aeep::~·s·feA FH~Q ~a 1ful j;I::JR8 10) Employee Compensation Dalman, Myall, Trevino Salary, Taxes, Benefits, Insurance 447,961.00 447,961.00 11) 2009-2010 SERAF Loan L&M Housing Fund Funds advanced for SERAF payment 1,327,655.00 331,914.00 12 200S-2006 ERAF Loan L&M Housing Fund Funds advanced for ERAF payment 335,436.00 83,859.00 13) Ohlone Gardens Loan Agreement Resources for Commu~i!Y_ Development Undisbursed loan commitment 477,821.00 477,821.00 14) Eden Housing Loan Agreement Eden Housing Undisbursed loan commitment 350,000.00 350,000.00 15 Legal Counsel Goldfarb & Lipman Professional services contract 75,000.00 75,ooo.oo I 16) Eden Housing ERN Deposit Eden Housing, Inc. Refundable deposit to Housing Fund for ERN 25,000.00 2S,OOO.OO 17) l=Qg Feas"8T12) £twet 1 ~ Prefess·eRal seF ·ees eeR~raet 18)~ ~ Prefess·aRalseP "ees saRtFa~ 19) MIG PFehss·aAalseF"eeseeRtFae4: 20 PFefess"eRalseF iees eeRtFaet 21 Tradeway Housing Developer Selection Keyser Marston Associates Professional services contract 9,646.87 9,646.87 22) Agency FY10-11 Annual Audit Maze & Associates Professional services contract 3,990.00 3,990.00 23) Overhead Transfer CityofEICerrito Direct and indirect agency administrative expenses 712,069.00 712,069.00 24) Cerrito Theater Lease El Cerrito Municipal Services Corporation Tenant Security deposit 5,000.00 5,000.00 25) Agency Property Mana[ement Old Republic Title Recording fees 2,646.00 2,646.00 26) Continuing Disclosure Willdan Associates Professional services contract 250.00 250.00 27) Agency Reporting Thales Consulting Professional services contract 1,200.00 1,200.00 28) Administrative Budget Successor Agency Administrative Budget per AB1x 26 250,000.00 250,000.00 OTHER OBLIGATIONS- PAYMENT SCHEDULE (PASS THROUGH OBLIGATIONS) 29) Fiscal Agreement Sec 33401 Contra Costa County Estimated Payments Through 2025 3,917,224.00 199,191.00 30) Fiscal Agreement Sec 33401 West Conta Costa USC Estimated Payments Through 2025 4,710,982.00 242,802.00 31) Fiscal Agreement Sec 33401 EB Reg Park District Estimated Payments Through 2025 54,870.00 26,520.00 32) Fiscal Agreement Sec 33401 Contra Casta Comm CO Estimated Payments Through 2025 1,002,477.00 56,166.00 33) Statutory Pass-Through Payment City of El Cerrito Estimated Payments Through 2025 2,890,316.00 1S7,061.00 34) Statutory Pass-Through Payments Various Taxing Entities Estimated Payments Through 2025 5,896,351.00 299,631.00 35) Fiscal Agreement Sec 33401 Contra Costa County Public Facilities Obligation 5,100,000.00 0.00 Total $ 213,975,873.43 $ 7,845,820.37 $ This Enforceable Obligation Payment Schedule (EOPS) was originally adopted on 8/15/11 and valid through 12/31/11. By State Supreme Court ruling, the Agency's suspension was extended to 1/31/12 when a Successor Agency will be formed, which will prepare a subsequent Recognized Obligation Payment Schedule (ROPS). This amended EOPS is revised and extended to cover the period through 6/30/12 to ensure the Successor Agency is able to pay enforceable obligations until the ROPS can be prepared by the Successor Agency and approved by the Oversight Board. Revisions are as follows: - Item 7 Cooperation Agreement current year amount due increased pursuant to provisions of the contract. - Item 8 Cooperation Agreement current year amount due increased pursuant to provisions of the contract. -Duplicate obligations were removed. Item 9 duplicated repayment of bond proceeds in Item 3. Items 17 and 18 duplicated payment of the Cooperation Agreement in Item 7. - Item 11 SERAF Loan and Item 12 ERAF Loan, total outstanding loan balances reduced to amounts in the Agency's FY10-11 financial statement and current amounts due revised to match payment schedules. - Item 19 was removed as it is not an Agency obligation. - Item 20 was removed as the project was cancelled. - Item 24 Cerrito Theater Lease and Item 25 Agency Property Management1 previously unpaid obligations pursuant to prior fiscal year transactions, were added to the schedule. -Item 26 Continuing Disclosure and Item 27 Agency Reporting were added obligations related to activity for FY10-11. - Item 28 was added for the Successor Agency's administrative budget, as provided in AB1x 26. Includes only payments to be made after the adoption of the original EOPS on August 15, 2011. Page 1 of2 Aug Sept Oct Nov Dec I Jan 86,680.00 20,737.50 213,113.75 11,045.00 101,532.50 631,340.oo I 995,000.00 133,670.00 l 75,000.00 I 17,229.27 34,458.54 34,458.54 34,458.54 51,687.81J 34,458.54 6,25o.oo I 6,25o.oo I 6,25o.oo I 6,250.00 I 6,25o.oo I 6,250.00 3,990.00 178,017.25 178,017.251 356,034.50 I 5,000.00 l 2,646.00 250.00 1,200.00 199,191.00 242,802.00 26,520.00 56,166.00 157,061.00 299,631.00 23,479.27 $ 218,725.79 $ 40,708.S4 $ 40,708.54 $ 2.420,884.81 I s 1,474,389.04 ---PAGE BREAK--- Name of Redevelopment Agency: El Cerrito Redevelopment Agency Project Area(s) City of El Cerrito Redevelopment Project Area ENFORCEABLE OBLIGATION PAYMENT SCHEDULE Per ABlX 26- Section 34167 and 34169, and State Supreme Court Ruling on CRA v. Matosantos Total Outstanding Debt or Total Due During Fiscal Pro"ect Name I Debt Obligation Payee Description Obligation Year 1) 1997 Tax Allocation Bonds. Series A Union Bank Refunding of prior TAB for Redev Pro·s 4, 748,727.50 557,547.50 2 1998 Tax Allocation Bonds, Series B Union Bank Refunding of prior TAB for L&M Hsg Projs 1,091,775.00 215,937.50 3) 2004 Tax Allocation Bonds, Series A Union Bank Tax-exempt TAB for Infrastructure Projs 13,849,540.00 426,227.50 4 2004 Tax Allocation Bonds, Series B Union Bank Portion ofTaxable TAB for Redev Projs 492,090.00 492,090.00 5) 2004 Tax Allocation Bonds, Series B Union Bank Portion of Taxable TAB for L&M 5,521,045.00 273,065.00 6 Valente Promissory Note George Valente Loan for land acquistion 3,746,801.06 288,215.00 7) Cooperation Agreement El Cerrito Municipal Services Corporation Redevelopment Plan implementation (non-housing) 106,230,000.00 1,626,340.00 8) Cooperation Agreement CityofEICerrito Redevelopment Plan implementation (housing) 50,700,000.00 208,670.00 9} TFaele a 1 baF1el 'EE!b'si~iSR RQ' ~a13"tal F1:1t1B 10) Employ_ee Compensation Dalman, Mya\1. Trevino Salary, Taxes, Benefits, Insurance 447,961.00 447,961.00 11) 2009-2010 SERAF Loan L&M Housing Fund Funds advanced for SERAF payment 1,327,655.00 331,914.00 12) 2005-2006 ERAF Loan L&M Housing Fund Funds advanced for ERAFpayment 335,436.00 83,859.00 13) Oh\one Gardens Loan Agreement Resources for Community Development Undisbursed loan commitment 477,821.00 477,B21.00 14 Eden Housing Loan Agreement Eden Housing Undisbursed loan commitment 350,000.00 350,000.00 15) Legal Counsel Goldfarb & Lipman Professional services contract 75,000.00 75,000.00 16 Eden Housing ERN Deposit Eden Housing, Inc. Refundable deposit to Housing Fund for ERN 25,000.00 25,000.00 17) l'QQ Feas"BTF1 £t1:1ei 1 AEGBM Prsfess"eRalsep ·ees eeRtFaa 18)~ ~ Pr:efess·a,al seF ·ees seRtr:a6t 19) Ml(; Pre~ess"eRal sep ·ees eeA~Fae~ 20 Kerser P1ar~eF1 'ssae·aies Pre~essieRalseF iees eeRtrast: 21) Tradeway Housing Developer Selection Keyser Marston Associates Professional services contract 9,646.87 9,646.87 22) Agency FY10-11 Annual Audit Maze & Associates Professional services contract 3,990.00 3,990.00 23) Overhead Transfer City of El Cerrito Direct and indirect agency administrative expenses 712,069.00 712,069.00 24) Cerrito Theater lease El Cerrito Municipal Services Corporation Tenant Security deposit 5,000.00 5,000.00 25) Agency Property Management Old Republic Title Recording fees 2,646.00 2,646.00 26) Continuing Disclosure Willdan Associates Professional services contract 250.00 250.00 27) Agency Reporting Thales Consulting Professional services contract 1,200.00 1,200.00 28) Administrative Budget Successor A~ Administrative Budget per ABlx 26 250,000.00 250,000.00 OTHER OBUGATIONS- PAYMENT SCHEDULE (PASS THROUGH OBUGATIONS) 29) Fiscal Agreement Sec 33401 Contra Costa County Estimated Payments Through 2025 3,917,224.00 199,191.00 30) Fiscal Agreement Sec 33401 West Conta Costa USC Estimated Payments Through 2025 4,710,982.00 242,802.00 31) Fiscal Agreement Sec 33401 EB Reg Park District Estimated Payments Through 2025 54,870.00 26,520.00 32) Fiscal Agreement Sec 33401 Contra Costa Comm CD Estimated Payments Through 2025 1,002,4 77.00 S6,166.00 33) Statutory Pass-Through Payment City of El Cerrito Estimated Payments Through 2025 2,890,316.00 157,061.00 34) Statutory Pass-Through Payments Various Taxing Entities Estimated Payments Through 2025 5,896,351.00 299,631.00 35) Fiscal Agreement Sec 33401 Contra Costa County Public Facilities Obligation 5,100,000.00 0.00 Total $ 213,975,873.43 $ 7,845,820.37 $ This Enforceable Obligation Payment Schedule (EOPS) was originally adopted on 8/15/11 and valid through 12/31/11. By State Supreme Court ruling, the Agency's suspension was extended to 1/31/12 when a Successor Agency will be formed, which will prepare a subsequent Recognized Obligation Payment Schedule (ROPS). This amended EOPS is revised and extended to cover the period through 6/30/12 to ensure the Successor Agency is able to pay enforceable obligations until the ROPS can be prepared by the Successor Agency and approved by the Oversight Board. Revisions are as follows: - Item 7 Cooperation Agreement current year amount due increased pursuant to provisions of the contract. - Item 8 Cooperation Agreement current year amount due increased pursuant to provisions of the contract. -Duplicate obligations were removed. Item 9 duplicated repayment of bond proceeds in Item 3. Items 17 and 18 duplicated payment of the Cooperation Agreement in Item 7. -Item 11 SERAF Loan and Item 12 ERAF Loan, total outstanding loan balances reduced to amounts in the Agency's FY10-ll financial statement and current amounts due revised to match payment schedules. - Item 19 was removed as it is not an Agency obligation. - Item 20 was removed as the project was cancelled. - Item 24 Cerrito Theater Lease and Item 25 Agency Property Management, previously unpaid obligations pursuant to prior fiscal year transactions, were added to the schedule. -Item 26 Continuing Disclosure and Item 27 Agency Reporting were added obligations related to activity for FY10-11. - Item 28 was added for the Successor Agency•s administrative budget, as provided in ABlx 26. Includes only payments to be made after the adoption of the original EOPS on August 15, 2011. Page2 of2 Feb Mar Aprl May June Total 470,867.50 $ 557,547.50 195,200.00 $ 215,937.50 213,113.75 $ 426,227.50 481,045.00 $ 492,090.00 171,532.50 $ 273,065.00 288,215.00 $ 288,215.00 $ 1,626,340.00 $ 208,670.00 $ 34,458.54 34,458.54 34,458.54 34,458.54 51,687.81 $ 396,273.21 331,914.00 s 331,914.00 83,859.00 $ 83 859.00 477,821.00 $ 477,821.00 350,000.00 s 350,000.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 $ 68,750.00 25,000.00 $ 25,000.00 9,646.87 $ 9,646.87 $ 3,990.00 $ 712,069.00 $ 5,000.00 $ 2,646.00 $ 250.00 $ 1,200.00 250,000.00 $ 250,000.00 189,000.00 s 388,191.00 231,000.00 $ 473,802.00 67,000.00 $ 93,520.00 69,000.00 $ 125,166.00 150,000.00 $ 307,061.00 281,000.00 $ 580,631.00 $ 40,708.54 $ 328,923.54 $ 50,355.41 $ 1,559,302.54 $ 1,589,696.56 $ 8,774,882.58 ---PAGE BREAK--- RESOLUTION NO. 2011-:XX: Agenda Item No. 7{A) Attachment 2 RESOLUTION OF THE CITY OF EL CERRITO TO ELECT TO RETAIN THE HOUSING ASSETS AND FUNCTIONS PREVIOUSLY PERFORMED BY THE EL CERRITO REDEVELOPMENT AGENCY PURSUANT TO HEALTH AND SAFETY CODE SECTION 34176 WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.; the "Redevelopment Law"), the City Council (the "City Council") of the City of El Cerrito (the "City") adopted the Redevelopment Plan for the City of El Cerrito Redevelopment Project Area by Ordinance No. 77-17, adopted on November 28, 1977, as amended by Ordinance No. 80-13, adopted on December 15, 1980; as amended by Ordinance No. 89-5, adopted on July 10, 1989; as amended by Ordinance No. 94-4, adopted on July 25, 1994; as amended by Ordinance No. 2004-3, adopted March 1, 2004; as amended by Ordinance No. 2005-01, adopted March 21, 2005; and as further amended by Ordinance No. 2006-10, adopted November 6, 2006 (collectively, the "Redevelopment Plan"); and WHEREAS, the El Cerrito Redevelopment Agency (the "Agency") is responsible for implementing the Redevelopment Plan pursuant to the Redevelopment Law; and WHEREAS, as part of the 2011-12 State budget bill ABX1 26 and ABX1 27 (respectively the "Dissolution Act" and the "Alternative Redevelopment Program Act," and collectively the "Redevelopment Restructuring Acts") were enacted to significantly modify the Redevelopment Law; and WHEREAS, on August 11, 2011, the California Supreme Court (the "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 Alternative Redevelopment Program Act; and WHEREAS, on December 29, 2011, the California Supreme Court ruled that the Dissolution Act is largely constitutional and the Alternative Redevelopment Program Act is unconstitutional; and WHEREAS, the Court's decision means that all California redevelopment agencies will dissolve on February 1, 2012 pursuant to the Dissolution Act; and WHEREAS, Section 34176(a) of the Redevelopment Law provides that the city that authorized the creation of a redevelopment agency may elect to retain the housing assets and functions previously performed by the former redevelopment agency; and WHEREAS, the City desires to elect to retain the housing assets and functions previously performed by the Agency in accordance with Section 34176 of the Redevelopment Law. 1 ---PAGE BREAK--- Agenda Item No. 7(A) Attachment 2 NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of El Cerrito that it hereby elects to retain the housing assets and functions previously performed by the Agency in accordance with Section 34176 of the Redevelopment Law. BE IT FURTHER RESOLVED, that the City Manager, or his or her designee, is hereby authorized to file a copy of this resolution with the County Auditor in accordance with Part 1.85. The above and foregoing resolution was duly and regularly passed and adopted at a meeting by the City Council of the City of El Cerrito on the 17th day of January, 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: I certify that the foregoing is a true and correct copy of the original Resolution on file in the office of the City Clerk of the City ofEl Cerrito. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official Seal of said City, this_ day of January, 2012. Cheryl Morse, City Clerk Approved: William C. Jones, III, Mayor 2