AgdaPkt 2012-01-23 - Laserfiche WebLink

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8. B. - Page 1 To the Honorable Mayor and City Cou nci I From the City Manager January 23, 2012 SUBJECT Update on state elimination of redevelopment agencies, and other actions necessary to comply with new state legislation RECOMMENDATION That the City Council waive first reading and introduce an ordinance repealing Ordinance No. 2366, which determined the City would comply with the �/oluntary Alternative Redevelopment Program. (Attachment 1) That the City Council adopt a resolution confirming Resolution No. 15141, which determined the City would serve as the Successor Agency to the Redevelopment Agency of Redwood City and elect to retain the housing assets and functions previously held and performed by the Redevelopment Agency of Redwood City. (Attachment 2) That the Agency Board adopt a resolution amending its Enforceable Obligation Payment Schedule pursuant to AB 1X 26. (Attachment 3) BAC KG RO U N D In January 2011, the 2011-2012 State Budget proposed to abolish redevelopment agencies in California. Companion redevelopment bills AB1X26 (dissolving redevelopment agencies) and AB1X27 (allowing redevelopment agencies to survive upon payment of a continuation remittance) were added by the legislature. In response, the California Redevelopment Association and others brought suit claiming the legislation to be in violation of various provisions of the State Constitution. On December 29, 2011, the California Supreme Court issued its ruling in California Redevelopment Association et al. v. Ana Matosantos et al. The Court upheld AB1X26, invalidated AB1X27, and extended all statutory deadlines under AB1X26. The Court action dissolved redevelopment agencies throughout the State effective February 1, 2012. ANALYSIS Continuation Ordinance The Supreme Court ruling invalidated the voluntary alternative redevelopment program after finding the provisions of AB1 X27 violated Proposition 22. Proposition 22 was a voter initiative that amended the State Constitution to prohibit the State from borrowing or taking funds used for transportation, redevelopment or other local government projects and services.