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HomeMy WebLinkAboutMinutes - City Council - 2012-01-12 - Special Meeting1 City Council, Special Meeting Civic Center Council Chambers 777 Cypress Avenue Redding, California January 12, 2012 2:00 p.m. I The meeting was called to order by Mayor Dick Dickerson with the following Council Members present: Patrick Jones, Missy McArthur, and Francie Sullivan. Vice Mayor Rick Bosetti was absent. Also present were City Manager Kurt Starman, City Attorney Rick Duvernay, Assistant City Manager/Electric Utility Director Barry Tippin, City Clerk Pamela Mize, and Executive Assistant Sharlene Tipton. JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY At the hour of 2:01 p.m., Mayor Dickerson convened the Special Meeting of the Redding City Council for a joint meeting with the Redding Redevelopment Agency. 2. Resolution - Regarding Election to serve as the Successor Agency to the Redding Redevelopment Agency upon its dissolution [R-030-010] . Assistant City Manager Tippin highlighted the Report to City Council (staff report) dated January 9, 2012, incorporated herein by reference, and recommended that the City Council adopt a resolution electing to serve as the Successor Agency to the Redding Redevelopment Agency (Agency) upon its dissolution, directing the Director of Finance to establish a Redevelopment Obligation Retirement Fund for the purpose of receiving property tax revenues to be used by the Successor Agency, and directing staff to file the appropriate notification of this election in accordance with Assembly Bill xl 26 (ABxl 26) (Dissolution Act). I City Manager Starman explained that the California Supreme Court delivered its decision in the California Redevelopment Association v. Matosantos case, finding the Dissolution Act largely constitutional and AB 1 x 27 (Alternative Redevelopment Program Act) unconstitutional. Mr. Starman noted that the Court's bifurcated decision means that all California redevelopment agencies, including the Agency, will be dissolved under the constitutional Dissolution Act as of February 1,2012, and none will have the opportunity to opt into continued existence under the unconstitutional Alternative Redevelopment Program Act. Mr. Tippin stated that upon dissolution, the Agency's non-housing funds and assets will be turned over to a successor agency (Successor Agency) charged with the responsibility of: (1) paying the former Agency's existing debts; (2) disposing of the former Agency's properties and assets to help payoff debts and return revenues to the local government entities that receive property taxes (Taxing Entities); and (3) winding up the affairs of the former Agency.. He noted that, at a future date, the Agency's affordable housing assets other than its existing housing fund balance, will be turned over to a successor housing agency (Successor Housing Agency) to continue performing affordable housing activities. I Council discussion ensued. In response to Council Member Jones, Mr. Starman noted that the decision to become the Successor Agency is not reversible according to the legislative language as interpreted. 01/12/2012 2 A MOTION WAS MADE by Council Member McArthur, seconded by Council Member Sullivan, to adopt Resolution No. 2012-001, a resolution ofthe City Council of the City of Redding to express its intent to serve as the Successor Agency of the Redding Redevelopment Agency, pursuant to Health and Safety Code Section 34l7l(j) and Section 34173, authorizing the Finance Director to establish a Redevelopment Obligation Retirement Fund for the purpose of receiving property tax revenues to be used by the Successor Agency, and directing staff to file the appropriate notification of this election in accordance with Assembly Bill xl 26. The Vote: Ayes: Noes: Abstain: Absent: Council Members: Jones, McArthur, Sullivan, and Dickerson Council Members: None Council Members: None Council Members: Bosetti I Resolution No. 2012-001 is on file in the Office of the City Clerk. ADJOURNMENT There being no further business, Mayor Dickerson dechlred the meeting adjourned at the hour of2:23 p.m. APPROVED: {fU~ Mayor ATTEST: I ~~~ City Clerk I 01/12/2012