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HomeMy WebLinkAboutResolution No. 6238376 RESOLUTION NO. 6238 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS APPROVING A FUNDING AGREEMENT BY AND BETWEEN THE CITY AND THE CYPRESS REDEVELOPMENT AGENCY, AND MAKING THE FINDINGS REQUIRED BY HEALTH & SAFETY CODE SECTION 33445, FOR AGENCY FUNDING OF THE LINCOLN AVENUE SEWER PROJECT WHEREAS, the Cypress Redevelopment Agency ( "Agency ") is authorized, under the provisions of the California Community Redevelopment Law (Health & Safety Code §33000 et seq.) ( "CRL "), and under the provisions of the Redevelopment Plan ( "Redevelopment Plan ") for the Cypress Merged and Amended Redevelopment Project Area ( "Project Area "), to undertake certain activities necessary for the implementation of the Redevelopment Plan and to effectuate the purposes of the CRL; and WHEREAS, the City of Cypress ( "City ") is a charter city and municipal corporation organized and existing under the Constitution of the State of California; and WHEREAS, the City Council, by adoption of Ordinance No. 852, on June 25, 1990, approved and adopted the Redevelopment Plan for the Lincoln Avenue Redevelopment Project Area, as thereafter amended from time to time ( "Original Lincoln Avenue Project Area "); and WHEREAS, on June 27, 2005, the City Council approved and adopted ordinances amending the Redevelopment Plans for the Civic Center Redevelopment Project Area, the Los Alamitos Race Track and Golf Course Redevelopment Project Area, and the Lincoln Avenue Redevelopment Project Area, including an amendment to add territory to the Lincoln Avenue Redevelopment Project Area ( "Lincoln Avenue Added Area "), and merged those redevelopment project areas, as amended, and adopted a Merged, Amended, and Restated Redevelopment Plan ( "Merged Redevelopment Plan ") for the Cypress Merged and Amended Redevelopment Project Area ( "Merged Project Area "); and WHEREAS, the Original Lincoln Avenue Project Area and the Lincoln Avenue Added Area are collectively referred to as the Lincoln Avenue Component Area of the Merged Project Area; and WHEREAS, the City has commenced a public project known as the Lincoln Avenue Sewer Rehabilitation Project, Project No. 2008 -23 (the "Project Area Sewer Improvement "), which is located within and contiguous to the Merged Project Area and specifically the Lincoln Avenue Component Area; and WHEREAS, pursuant to Health and Safety Code Sections 33445, the Agency, with the consent of the City, may pay for the cost of the land for and the installation of publicly owned facilities and improvements inside or contiguous to a redevelopment project area within the community, provided the Agency and City Council make certain required findings set forth in Sections 33445; and WHEREAS, the City and Agency, pursuant to the authority set forth in Health and Safety Code Sections 33445, desire to make available a portion of the Agency's tax increment revenues allocated to and received by the Agency pursuant to Health and Safety Code Section 33670(b), in an amount not to exceed TWO MILLION THREE HUNDRED NINETY -FIVE THOUSAND FIVE HUNDRED FORTY -TWO DOLLARS ($2,395,542) (the "Agency Funds "), to pay for, or assist in paying for, the construction of the Project Area Sewer Improvement which is located within or contiguous to the Merged Project Area; and WHEREAS, the Agency staff and City staff have prepared this Funding Agreement (the "Agreement ") to commit and effectuate the use of the Agency Funds in the amount described above (the "Project Costs ") for the Project Area Sewer Improvement; and WHEREAS, because no part of the Project Area Sewer Improvement is a publicly owned building, Health and Safety Code Section 33679 is not applicable; and 377 WHEREAS, the City and Agency each desire to enter into the Agreement for the purposes set forth above and declare that their entering into the Agreement is in the best interests and welfare of the residents of the City, including the residents of the Lincoln Avenue Component Area as well as the businesses located within the Lincoln Avenue Component Area, and effectuates the purposes of the Merged Redevelopment Plan, including but not limited to as it pertains to the Lincoln Avenue Component Area, and the purposes of the CRL specifically therein the policies and purposes evidenced by Health and Safety Code Section 33445. NOW, THEREFORE, the City Council of the City of Cypress resolves as follows: Section 1. The foregoing Recitals are true and correct and are incorporated herein and made a part hereof. Section 2. The City Council finds and determines: (1) That, pursuant to Health and Safety Code Section 33445(a)(1), the Project Area Sewer Improvement, which is located inside or contiguous to the Merged Project Area, to be funded with Agency Funds pursuant to the Agreement, is of benefit to the Merged Project Area by helping to eliminate blight within the Merged Project Area, in that: (a) By adoption of various ordinances more than ninety (90) days prior to the Effective Date of this Agreement, the territory within the Merged Project Area has been conclusively determined under law to be a blighted area as defined by law, and including specifically the Lincoln Area Component Area by adoption of the Ordinance No. 852 on June 25, 1990 with respect to the Original Lincoln Avenue Project Area, and by adoption of Ordinance No. 1067 on June 27, 2005, with respect to the Lincoln Avenue Added Area. (b) An essential purpose of the Merged Redevelopment Plan is the redevelopment of the Lincoln Avenue Component Area. (c) The Merged Redevelopment Plan identifies as among its purposes the elimination and prevention of blight by, among other actions, installing public facilities, including specifically sewer projects within the Lincoln Avenue Component Area. (d) The Report to Council, reviewed by the Agency and City Council at the time of adoption of the Merged Redevelopment Plan, identified the need to install sewer facilities within the Merged Project Area and specifically within the Lincoln Avenue Component Area, to alleviate blighting conditions within the Merged Project Area. (e) The alleviation of the foregoing blighting conditions is dependent upon the provision of adequate publicly owned infrastructure and community facilities, including sewer facilities. The Project Area Sewer Improvement will therefore directly help alleviate the foregoing blighting conditions and thereby benefit the Merged Project Area, including therein the Lincoln Avenue Component Area. (2) That, pursuant to Health and Safety Code Section 33445(a)(2), no other reasonable means of financing the Project Area Sewer Improvement is available to the community for the following reasons: (a) Since the City Council's award of the construction contract for the Project Area Sewer Improvement on January 24, 2011, additional information has been made available that changes in State law and the State budget are likely, including reduction of local revenues and increased mandated local services, and these likely changes have necessitated a reassessment of the need for retention of City funds for other projects and the need for alternative funding for the Project Area Sewer Improvement, specifically use of the Agency Funds. -2- (3) 378 (b) Other City monies are dedicated to critical police, fire, and other necessary expenditures, including the other capital improvement projects shown on the City's Capital Improvement Program. (c) The decline in the local and national economy, and reasonable projections in connection therewith, has delayed, and potentially reduced, City funds available to be used for the payment for the Project Area Sewer Improvement. (d) Limits set forth in the State Constitution and State law on local control over traditional revenue sources make it infeasible for the City to raise new local revenues to meet the cost of the Project Area Sewer Improvement. (e) The only practical means of paying for all or part of the cost of the Project Area Sewer Improvement is to use the Agency Funds and the failure to use the Agency Funds would be detrimental to the community including specifically the residents and businesses within the Lincoln Avenue Component Area of the Merged Project Area. That, pursuant to Health and Safety Code Section 33445(a)(3), the payment of the Agency Funds for the Project Area Sewer Improvement is consistent with Agency's adopted Section 33490 Five Year Implementation Plan 2010 -2014 (1/1/10 through 12/31/14) (the "Implementation Plan "), in that: (a) A goal of the Agency as set forth in the Implementation Plan is to pursue public infrastructure projects within the Lincoln Avenue Component Area of the Merged Project Area. (b) Sewer improvements within the Lincoln Avenue Component Area of the Merged Project Area are specifically identified as potential capital projects that are desired to be undertaken during the Implementation Plan period. (4) That, consistent with Health and Safety Code Section 33445(b)(2), sewer projects within the Merged Project Area, and specifically the Lincoln Avenue Component Area, are among the public infrastructure and facilities improvements set forth in the Merged Redevelopment Plan, and thus the Project Area Sewer Improvement is a project identified in the Merged Redevelopment Plan. Section 3. The City Council hereby approves the Funding Agreement in the form on file with the City Clerk concurrent with the adoption of this Resolution and authorizes and directs that either the Mayor, Mayor Pro -Tem, or City Manager sign the Funding Agreement on behalf of the City. Section 4. The City Manager and authorized designees are hereby authorized and directed to take such other and further actions, and sign such other and further documents, as are necessary and proper in order to implement this Resolution on behalf of the City. Section 5. The City Council finds and determines, in the exercise of its independent judgment and based on the whole of the record, that the Funding Agreement is exempt from the California Environmental Quality Act (Pub. Res. Code §21000 et seq.) ( "CEQA ") pursuant to Section 15301(d) of the State CEQA Guidelines [14 C.C.R. §15301(d)], in that the Project Area Sewer Improvement is the rehabilitation of deteriorated sewer facilities, and is also exempt pursuant to Section 13301(d) of the State CEQA Guidelines [14 C.C.R. §15301(d)], in that the Project Area Sewer Improvement is the replacement and reconstruction of sewer facilities. Section 6. If any section, subsection, subdivision, paragraph, sentence, clause or phrase, or portion of this Resolution is, for any reason, held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, or is rendered invalid, void, or unenforceable as a result of a change in State or federal law, such decision shall not -3- 379 affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council herby declares that it would have adopted this Resolution and each section, subsection, subdivision, paragraph sentence, clause or phrase of this Resolution irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional or invalid or ineffective. To this end the provisions of this Resolution are declared to be severable. PASSED AND ADOPTED by the City Council of t City of ' press at a special meeting held on the 8th day of March, 2011. ATTEST: r ,,f CITY CLERK OF THE CITY OF CYPRESS STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS MAYOR • THE CITY OF CYPRESS I, DENISE BASHAM, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a special meeting of the said City Council held on the 8th day of March, 2011, by the following roll call vote: AYES: 4 COUNCIL MEMBERS: Bailey, Narain, Seymore, and Mills NOES: 0 COUNCIL MEMBERS: None ABSENT: 1 COUNCIL MEMBERS: Luebben J��1P- Gu-OQ- iicuoKEt -v✓I CITY CLERK OF THE CITY OF CYPRESS