RDA Resolution No. 11-05 Agency Transfer Payment Agreement with the City of Cupertino RESOLUTION NO. 11 -05
RESOLUTION OF THE CITY OF CUPERTINO REDEVELOPMENT
AGENCY APPROVING AND AUTHORIZING THE EXECUTION OF THE
AGENCY TRANSFER PAYMENT AGREEMENT WITH THE CITY OF
CUPERTINO PURSUANT TO PART 1.9 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 (the "City
Council ") of the City of Cupertino (the "City ") adopted Ordinance No. 1850, on August 21,
2000, adopting the Redevelopment Plan for the Cupertino Vallco Redevelopment Project Area
(the "Redevelopment Plan "), as amended from time to time; and
WHEREAS, the City of Cupertino 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 (the "Dissolution Act ")
and ABX1 27 (the "Voluntary Program Act ") (col[ectively, the "Redevelopment Restructuring
Acts ") have been enacted to significantly modify the Redevelopment Law generally as follows:
• The Dissolution Act immediately suspended all new redevelopment activities and
incurrence of indebtedness, and dissolves redevelopment agencies effective
October 1, 2011; and
• The Voluntary Program Act , trough the addition of Part 1.9 to the
Redevelopment Law ( "Part 1.9 "), establishes a voluntary alternative
redevelopment program whereby the Agency is authorized to continue to exist
upon the enactment of an ordinance by the City to comply with Part 1.9, including
payment of an annual remittance to the County Auditor- Controller (the "Opt -In
Ordinance "); 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 Voluntary
Program Act; and
WHEREAS, the City has enacted the Opt-In Ordinance prior to consideration of this
Resolution, conditioned upon the lifting of the Stay and the Court's determination that the
Voluntary Program Act is constitutional; and
WHEREAS, Section 34194.2 of the California Redevelopment Law authorizes the
Agency to enter into an agreement with the City whereby the Agency agrees to transfer a portion
of its tax increment to the City, in an amount equal to the annual remittance required under
Chapter 3 of Part 1.9 to the County Auditor - Controller; and
1
WHEREAS, for reasons further set forth in the staff report accompanying this Resolution
(the "Staff Report"), the City and the Agency desire to enter into an agreement, whereby the
Agency will transfer to the City sufficient funds to make the annual remittance required under
Chapter 3 of Part 1.9, and the City will make the annual remittances to the County Auditor -
Controller in satisfaction of the requirements under Chapter 3 of Part 1.9 of the Redevelopment
Law (the "Agency Transfer Payment Agreement "); and
WHEREAS, as fully set forth in the Agency Transfer Payment Agreement, the Agency
Transfer Payment Agreement will be immediately binding upon the parties, but the operation of
its terms will be conditioned upon the lifting of the Stay and the Court's determination that the
Voluntary Program Act is constitutional; and
WHEREAS, under Title 14 of the California Code of Regulations, Section 15378(b)(4)
the approval of the Agency Transfer Payment Agreement 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 and does not commit
funds to any specific project or program; and
WHEREAS, the Agency Board has reviewed and duly considered the Staff Report,
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 Board finds, under Title 14 of the
California Code of Regulations, Section 15378(b)(4), that this resolution 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 o a governmental funding mechanism and does
not commit funds to any specific project or program. The Agency Board therefore directs that a
Notice of Exemption be filed with the County Clerk of the County of Santa Clara in accordance
with the CEQA guidelines.
BE IT FURTHER RESOLVED, that the Agency Board hereby approves the Agency
Transfer Payment Agreement and authorizes the Agency Executive Director or the Executive
Director's designee to execute on behalf of the Agency the Agency Transfer Payment
Agreement, substantially in the form on file with the City Clerk and the Agency Secretary and
with such revisions thereto as may be approved by the Agency Counsel.
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 Agency Transfer Payment Agreement on behalf of the Agency.
2
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 Agency Board on the 20th day of September, 2011 . by the following vote:
AYES: Wong, Santoro, Chang, Mahoney, Wang
NOES: None
ABSENT: None
ABSTAIN: None
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 City of Cupertino Redevelopment Agency.
Kimberly Smith, ge cy Secretary
Approved:
/
//
Gilbert Wong, Agency Chairperson
3