080211 Lakeport City Council Agenda and Packet

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    Any person may speak for three (3) minutes on any agenda item; however, total public input per item is not to exceed 15 minutes, extended at the

    discretion of the City Council. This rule does not apply to public hearings. Non-timed items may be taken up at any unspecified time.

    I. CALL TO ORDER & ROLL CALL: 5:00 p.m.

    II. CLOSED SESSION: Pursuant to Government Code 54957(a), Threat to Public Services or Facilities

    Consultation with Chief of Police.

    III. REPORT FROM CLOSED SESSION:

    IV. PLEDGE OF ALLEGIANCE:

    V. ACCEPTANCE OF AGENDA: Move to accept agenda as posted, or move to add or delete items.

    Urgency Items: To add item, Council is required to make a majority decision that an urgency exi

    (as defined in the Brown Act) and a 2/3rds determination that the need to take

    action arose subsequent to the Agenda being posted.

    VI. CONSENT AGENDA: The following Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon byCouncil at one time without any discussion. Any Council Member may request that any item be removed from theConsent Agenda for discussion under the regular Agenda. Removed items will be considered following the Consen

    Calendar portion of this agenda.

    A. Ordinances: Waive reading except by title, of any ordinances under consideration at this

    meeting for either introduction or passage per Government Code Section 36934

    B. Warrants: Approve warrants as listed on Warrant Register dated August 2, 2011.

    C. Minutes: Approve minutes of the regular City Council meeting of July 19, 2011.

    D. Cancel Meeting of 09/06/2011 Authorize cancellation of the regular meeting of September 6, 2011.

    E. Modify Scope of High Street Chip Seal

    Project

    Direct staff to modify the scope of the High Street Chip Seal Project to include

    Lakeshore Boulevard from Giselman to Lange Streets.

    F. Grand Jury Response Receive and file response to the 2010-2011 Lake County Civil Grand Jury Report

    VII. PUBLIC PRESENTATIONS/REQUESTS:

    A. Citizen Input: Any person may speak for 3 m inutes about any subject within the authority of the City Council, provided that thesubject is not already on tonights agenda. Persons wishing to address the City Council are requested to complete

    Citizens Input form and submit it to the City Clerk prior to the meeting being called to order. While not required,

    please state your name and address for the record. NOTE: Per Government Code 54954.3(a), the City Council can

    take action or express a consensus of approval or disapproval on any public comments regarding matters which d

    appear on the printed agenda.

    VIII. LAKEPORT REDEVELOPMENT AGENCY BUSINESS:

    A. Voluntary Alternative Redevelopment

    Project

    Introduce proposed Ordinance determining that the Agency will comply with th

    Voluntary Alternative Redevelopment Project pursuant to Part 1.9 of Division 24

    of the Health and Safety Code, as provided in AB1X27, and set it for a public

    hearing on September 20, 2011, at 6:00 p.m.

    IX. CITY COUNCIL COMMUNICATIONS:

    A. Miscellaneous Reports, if any:

    X. CLOSED SESSION: Pursuant to Government Code 54956.9(b), Pending Litigation, one case,

    Operating Engineers Local Union No. 3 and Lakeport Police Officers Association

    City of Lakeport, Lakeport City Council(Lake County Superior Court Case

    No. CV410232)

    Pursuant to Government Code Section 54954.5(b) (Real Property Negotiations)

    Green Ranch; Negotiators: City Attorney

    XI. REPORT FROM CLOSED SESSION:

    AGENDAREGULAR JOINT MEETING OF THE LAKEPORT CITY COUNCIL

    AND THE LAKEPORT REDEVELOPMENT AGENCYTuesday, August 2, 2011

    City Council Chambers, 225 Park Street, Lakeport, California 95453

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    City Council and Lakeport Redevelopment Agency Agenda of August 2, 2011 Page 2

    XII. ADJOURNMENT: Adjourn

    Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are av ailable for public inspection in the City Clerks Office

    225 Park Street, Lakeport, California, during normal business hours. Such documents are also available on the City of Lakeports website,www.cityoflakeport.com , sub

    to staffs ability to post the documents before the meeting.

    In compliance with theAmericans with Disabilities Act, the City of Lakeport will make available to members of the public any special assistance necessary to participatethis meeting. The public should contact the City Clerks Office at (707) 263-5615 to make such a request. Notification 72 hours prior to the meeting will enable the City

    make reasonable arrangements to ensure accessibility to this meeting.

    ____________________________________

    Janel M. Chapman, City Clerk

    http://www.cityoflakeport.com/http://www.cityoflakeport.com/http://www.cityoflakeport.com/http://www.cityoflakeport.com/
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    MINUTESLAKEPORT CITY COUNCIL AND

    LAKEPORT REDEVELOPMENT AGENCY

    REGULAR MEETINGJuly 19, 2011

    I. CALL TO ORDER:

    ROLL CALL:

    Mayor/Chairperson Lyons called the regular meeting of the City Council o

    the City of Lakeport and Lakeport Redevelopment Agency to order at

    6:02 p.m. with Council/Agency Members Roy Parmentier, Robert Rumfel

    Stacey Mattina, and Tom Engstrom present.

    II. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Public Works Director Grider.

    III. ACCEPTANCE OF AGENDA: A motion was made by Council/Agency Member Parmentier, seconded b

    Council/Agency Member Rumfelt, and unanimously carried by voice vote

    accept the agenda as presented.IV. CONSENT AGENDA:

    A. Ordinances Waive reading except by title, of any ordinances under consideration at t

    meeting for either introduction or passage per Government Code 36934

    B. Warrants: Approve warrants as listed on Warrant Register dated July 19, 2011.

    C. Minutes: Approve minutes of the regular City Council meeting of July 5, 2011.

    D. Application 2011-15 Approve Application No. 2011-15 for the Lake County Fair to hold its ann

    opening parade on September 1, 2011, from 5:00 to 6:00 p.m.

    E. Modification to Summer Concert

    Series Agreement

    Approve request of Bicoastal Media to reserve the picnic tables on

    northeast side of library park for use by the sponsors of the series.

    F. Building Permit Report Receive and file Building Permit Report for June, 2011.

    Vote on Consent Agenda A motion was made by Council/Agency Member Rumfelt, seconded by

    Council/Agency Member Engstrom, and unanimously carried by voice vo

    to approve the Consent Agenda as posted.

    V. PUBLIC PRESENTATIONS/ REQUESTS:

    A. Citizen Input There was no citizen input.

    B. Recognition for Tom Carlton Community Development Director Knoll recognized Tom Carlton for

    obtaining the Associates of State Floodplain Managers Certified Floodpla

    Manager certificate.

    VI. LAKEPORT REDEVELOPMENT AGENCY BUSINESS:

    A. Redevelopment Funding Strategy Glen Wienke and Suzanne Russell addressed the Council and encouraged

    the Council to go ahead with Redevelopment. A motion was made by

    Council Member Engstrom, seconded by Council Member Rumfelt, and

    unanimously carried by voice vote to direct staff to bring back an Ordina

    under the AB1X27 Continuation Bill to continue the Lakeport

    Redevelopment Agency and make the required payments as outlined in t

    staff report.

    VII. COUNCIL BUSINESS:

    A. Community Development Director:

    1. Resolution Authorizing

    Submittal of Application for

    HOME Investment Partnerships

    Program

    A motion was made by Council Member Rumfelt, seconded by Council

    Member Mattina, and unanimously carried by voice vote to approve a

    Resolution of the City Council of the City of Lakeport authorizing the

    submittal of an application to the California State Department of Housing

    and Community Development for funding under the HOME Investment

    Partnerships Program.

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    Minutes of the Lakeport City Council and Redevelopment Agency Meeting of 07/19/2011 Page

    2. MOU Regarding Access to New

    Courthouse Building

    A motion was made by Council Member Mattina, seconded by Council

    Member Engstrom, and carried by voice vote, with Council Member

    Parmentier voting no, to approve the MOU between the AOC and the Cit

    regarding right-of-way access to the Lakeport Boulevard site.

    B. Planning Services Manager:

    1. Appointment to Clean Water

    Program Advisory Council

    A motion was made by Council Member Engstrom, seconded by Council

    Member Rumfelt, and unanimously carried by voice vote to appoint the

    Planning Services Manager as the City's representative on the Lake Coun

    Clean Water Program Advisory Council.

    C. Administrative Services Director:

    1. Exempt Hiring Freeze A motion was made by Council Member Parmentier, seconded by Counc

    Member Engstrom, and unanimously carried by voice vote to approve

    exemptions from the hiring freeze for the following positions: Water

    Operator (or the vacancy left by internal promotion to Water Supervisor)

    Department Secretary (Part-Time), and Public Works Foreman. Discussio

    regarding the Police Lieutenant will be brought back at a later date.

    D. City Manager:

    1. City Hall Offices A motion was made by Council Member Rumfelt, seconded by Council

    Member Parmentier, and unanimously carried by voice vote to direct stato proceed with a construction project enclosing three office spaces in Ci

    Hall.

    2. Measure I Breakdown The Council received a Report of Measure I breakdown and provide

    direction and feedback to staff as to the recommended uses of Measure

    revenue.

    VIII. CITY COUNCIL COMMUNICATIONS:

    A. Miscellaneous Reports: Council Member Rumfelt reported that LAFCO is meeting here tomorrow

    The agenda includes a review of Lakeports sphere of influence and

    municipal service review.

    Community Development Director reported that we held a well-attended

    meeting regarding the South Main Street Annexation Project.

    Police Chief Rasmussen reported that the newest training officer finished

    his field training and is certified to be on his own. He also reported that

    will do emergency training for staff and council on September 14.

    Public Workers Director Grider reported that the Council will be receiving

    an invitation for the pool magic camp finale next week.

    Utilities Superintendent Brannigan reported that the intertie will be put

    into use Thursday, Friday, and Saturday for an inspection of California

    Department of Health. We will be trying to get one of our wells online

    before that.

    The City Manager asked that the negotiation item be pulled from the clo

    session.

    Supervisor Farrington would like to do a joint meeting with the Council a

    Board of Supervisors regarding annexation. This meeting will probably b

    held in September.

    Council Member Engstrom reported that he met with Cindy Ustrud today

    for Grillin on the Green on August 6. The booths need to be set up at

    about 10:00 a.m., and they will be serving from 5:00 to 8:00 p.m. and wil

    need to start barbecuing around 4:00 p.m.

    Mayor Lyons reported that CLAS is meeting on Friday and will discuss

    specific issues they want the Board of Supervisors to take to the State.

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    Meeting Date: 08/02/2011 Page 1 Agenda Item #VI.E.

    CITY OF LAKEPORTCity Council

    Lakeport Redevelopment AgencyCity of Lakeport Municipal Sewer District

    STAFF REPORTRE: Cape Seal on Lakeshore Boulevard MEETING DATE: 08/02/2011

    SUBMITTED BY: Douglas Grider, Public Works Director

    PURPOSE OF REPORT: Information only Discussion Action Item

    WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD:

    The City Council is being asked to approve adding additional roadway to the High Street Cape Seal Project.

    The approximate cost is $50,000.00.

    BACKGROUND:

    The Public Works Staff has completed performing "Mill & Fill" operations on Lakeshore Boulevard fromGiselman Street to Lange Street. Lakeshore Boulevard is now ready for a Cape Seal to extend the life of theexisting surface course by sealing the roadway and providing a bonded wearing course.

    DISCUSSION:

    The City has a planned Cape Seal Project on High Street. Staff is recommending changing the scope of thatproject to include the stretch of Lakeshore Boulevard from Giselman Street to Lang Street. This wouldnecessitate a Contract Change Order to the High Street Cape Seal Project andwould include striping.

    There are sufficient funds in our Road Projects budget to cover this.

    OPTIONS:

    Approve changing the scope of the project to include Lakeshore Boulevard from Giselman Street to LangeStreet or choose not to change the scope.

    FISCAL IMPACT:

    None $50,000.00 Account Number: 110-3020-990.308

    SUGGESTED MOTIONS:

    Move to direct staff to modify the scope of the High Street Chip Seal Project to include LakeshoreBoulevard from Giselman to Lange Streets.

    Attachments:

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    Meeting Date: 08/02/2011 Page 1 Agenda Item #VIII.A.

    CITY OF LAKEPORTCity Council

    Lakeport Redevelopment AgencyCity of Lakeport Municipal Sewer District

    STAFF REPORTRE: Voluntary Alternative Redevelopment Project MEETING DATE: 08/02/2011

    SUBMITTED BY: Richard Knoll, Redevelopment, Housing & Economic Development Director

    PURPOSE OF REPORT: Information only Discussion Action Item

    WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD:

    The Council is being asked to adopt the attached Ordinance determining that it will comply with theVoluntary Alternative Redevelopment Project pursuant to Part 1.9 of Division 24 of the Health and Safety

    Code, as provided in AB 1X 27.

    BACKGROUND:

    The Governor recently signed into law Assembly Bill 1X 26 and Assembly Bill 1X 27 as part of the Statebudget package which have the combined effect of abolishing every redevelopment agency unless thecommunity that created the agency agrees to pay a community remittance pursuant to AB 1X 27. TheCalifornia Redevelopment Association (CRA) and the League of CaliforniaCities (the League) havefiled a legal challenge to the bills and to request a stay of their enforcement. If a stay is not granted, the CityCouncil of the City of Lakeport must take certain actions over the next few months if it and theRedevelopment Agency of the City of Lakeport intend to meet this financial obligation and have the Agencyremain in existence. This ordinance would allow the Agency to continue to operate, but also states that

    while the City currently intends to make these community remittances, any actual community remittanceswill be made under protest and without prejudice to the Citys right to recover such amounts and interestthereon in the event that litigation results in a determination that AB 1X 26 and AB 1X 27 areunconstitutional.

    The Redevelopment Agency of the City of Lakeport (Agency) was created by the City Council for thepurposes of implementing redevelopment activities in the City. On June 7, 1999, the City Council adoptedthe Redevelopment Plan for the Lakeport Project in accordance with the Community Redevelopment Law(Health and Safety Code 33000 et seq.) (CRL). The Lakeport Redevelopment Project Area was found tohave a significant number of physical and economic blighting conditions that necessitated adoption of theRedevelopment Plan. The Redevelopment Plan authorizes the Agency to receive tax increment revenue topay for programs and projects that address these conditions consistent with the CRL.

    In January, 2011, the Governor announced his intent to eliminate redevelopment agencies as a way to helpbalance the State budget. The Legislature then enacted, and the Governor signed, Assembly Bill 1X 26 andAssembly Bill 1X 27; many believe these bills violate a number of provisions in the California Constitution,including the recently enacted Proposition 22. These bills took effect on June 29, 2011.

    Assembly Bill 1X 26 immediately suspended all new redevelopment activities and incurrence ofindebtedness, and dissolves redevelopment agencies effective October 1, 2011 (the "Dissolution Act"). Itdoes this by terminating virtually all otherwise legal functions of the redevelopment agency and mandating aliquidation of any assets for the benefit of local taxing agencies. Some debts would be allowed to be repaid,but any such remittances would be managed by a successor agency, that would function primarily as a debt

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    Meeting Date: 08/02/2011 Page 2 Agenda Item #VIII.A.

    repayment administrator. The successor agency could not continue or initiate any new redevelopmentprojects or programs. The activities of the successor agency would be overseen by an oversight board,comprised primarily of representatives of other taxing agencies, until such time as the remaining debts of theformer redevelopment agency were paid off, all agency assets liquidated and all property taxes wereredirected to local taxing agencies.

    Assembly Bill 1X 27 allows a city or county that has a redevelopment agency to avoid the consequences ofthe Dissolution Act by adopting an ordinance stating it will comply with the alternative redevelopmentprogram (the Alternate Redevelopment Program) and pay specified community remittances. For FiscalYear 2011-12, the community remittances are calculated pursuant to a complex formula based on the Statesstated objective of generating $1.7 billion from all redevelopment agencies and agency revenues shown inthe State Controllers report for 2008-09.

    While the ordinance commits the City to make the community remittance, AB 1X 27 allows the City and theAgency to enter into a reimbursement agreement whereby the Agency agrees to transfer a portion of its taxincrement to the City, in an amount not to exceed the annual community remittance, so that the Citysgeneral fund is not obligated. In addition, for 2011-12 only, an agency is exempted from the 20 percenthousing set-aside requirement if the agency adopts a resolution finding that those funds are necessary tomeet its debt obligations, including those under the city-agency agreement.

    The State Director of Finance will notify the City of the actual amount of the 2011-12 community

    remittance by August 1, 2011. In subsequent years, the community remittances will be smaller amounts,again determined by formulas set forth in the bill. The City can appeal the amount of its 2011-12 remittanceby August 15, 2011; however, the grounds for an appeal are quite narrow. The Citys estimated communityremittance for Fiscal Year 2011-12 is $311,534.50.

    The League and CRA are challenging the legality of AB 1X 26 and AB 1X 27, but unless a stay is granted orthe bills are overturned by the courts, they remain the law. It is the League and CRAs position thatAB 1X 26 and 27 are inconsistent with various constitutional provisions which protect city and countyproperty tax and redevelopment agency tax increment including, but not limited to, the provisions added byProposition 22 approved by the voters in November 2010.

    The proposed ordinance preserves the Citys right to challenge the legality of AB 1X 26 and AB 1X 27 andstates that the payment of any community remittance is made under protest. If the court grants a stay of thebills enforcement, the City would not be obligated to make any community remittances for the duration ofthe stay. Additionally, the Ordinance provides that if AB 1X 26 and AB 1X 27 are invalidated, theOrdinance shall be invalidated, and the City shall have the right to seek a refund.

    DISCUSSION:

    Although the City has until November 1, 2011, to adopt the ordinance, if it has not done so by the end ofSeptember, the Council should adopt a resolution of intent before October 1, stating that it intends to adoptthe ordinance and send copies of the resolution to the Department of Finance, State Controller and CountyAuditor-Controller before October 1. Otherwise, the Agency will be deemed to be dissolved on October 1.It is only the adoption of the ordinance, however, that allows the Agency to continue its activities. It is for

    this reason that staff is recommending that the Council consider adopting the ordinance now.AB 1X 27 provides that upon the enactment of the Ordinance agreeing to make the community remittancepayments, the Agency shall be authorized to continue its activities.

    CEQA

    The City is the lead agency concerning the Ordinance pursuant to the California Environmental Quality Act(codified as Public Resources Code Sections 21000 et seq.) (CEQA) and the State CEQA Guidelines .City staff has determined that the Ordinance is exempt from CEQA, pursuant to CEQA GuidelinesSection 15378 (b)(4), because such authorizations are not considered a project subject to CEQA review.

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    Meeting Date: 08/02/2011 Page 3 Agenda Item #VIII.A.

    The community remittance is a government funding mechanism and fiscal activity which does not involveany commitment to any specific project which may result in a potentially significant environmental impact.

    OPTIONS:

    Consider adoption of the proposed ordinance or reject it. If passed, the Redevelopment Agency remains inexistence and must pay the amount stated above. If rejected, the Redevelopment Agency will cease to exist.

    FISCAL IMPACT:

    For the Agency, the Fiscal Year 2011-12 community remittance is estimated to be approximately$311,534.00 based on preliminary calculations prepared by CRA. The Ordinance provides that no CityGeneral Fund money is pledged to make this payment. Subsequent annual community remittances will alsobe due as determined based upon a formula set forth in AB 1X 27. The actual amounts that will be due areto be determined by the State Director of Finance. Under the Ordinance, the City reserves the right toappeal the State Director of Finances determination of the Fiscal Year 2011-12 community remittance, asprovided in Health and Safety Code Section 34194, and any subsequent annual community remittance thatmay become due.

    SUGGESTED MOTIONS:

    Move to introduce the proposed Ordinance determining that the Agency will comply with the VoluntaryAlternative Redevelopment Project pursuant to Part 1.9 of Division 24 of the Health and Safety Code, asprovided in AB1X27, and set it for a public hearing on September 20, 2011, at 6:00 p.m.

    Attachments: Proposed Ordinance

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    ORDINANCE NO. ______

    AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKEPORT,CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE ALTERNATIVE

    VOLUNTARY REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OFDIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO

    PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE

    REDEVELOPMENT AGENCY OF THE CITY OF LAKEPORT

    WHEREAS,the City Council of the City of Lakeport (City) approved and adopted theRedevelopment Plan for the Lakeport Redevelopment Project (Redevelopment Plan) covering certainproperties within the City (the Project Area); and

    WHEREAS,the Redevelopment Agency of the City of Lakeport (Agency) is engaged in activitiesto execute and implement the Redevelopment Plan pursuant to the provisions of the California CommunityRedevelopment Law (Health and Safety Code33000, et seq.) (CRL); and

    WHEREAS, since adoption of the Redevelopment Plan, the Agency has undertaken redevelopmentprojects in the Project Area to eliminate blight, to improve public facilities and infrastructure, to renovate andconstruct affordable housing, and to enter into partnerships with private industries to create jobs and expand

    the local economy; and

    WHEREAS, over the next few years, the Agency hopes to implement a variety of redevelopmentprojects and programs to continue to eliminate and prevent blight, stimulate and expand the Project Areaseconomic growth, create and develop local job opportunities and alleviate deficiencies in public infrastructure,to name a few; and

    WHEREAS, as part of the 2011-2012 State budget bill, the California Legislature has recentlyenacted, and the Governor has signed, companion bills AB 1X 26 and AB 1X 27, requiring that eachredevelopment agency be dissolved unless the community that created it enacts an ordinance committing it tomaking certain payments; and

    WHEREAS, specifically, AB 1X 26 prohibits agencies from taking numerous actions, effectiveimmediately and purportedly retroactively, and additionally provides that agencies are deemed to be dissolvedas of October 1, 2011; and

    WHEREAS,AB 1X 27 provides that a community may participate in an Alternative VoluntaryRedevelopment Program, in order to enable a redevelopment agency within that community to remain inexistence and carry out the provisions of the CRL, by enacting an ordinance agreeing to comply with Part 1.9of Division 24 of the Health and Safety Code; and

    WHEREAS, the Alternative Voluntary Redevelopment Program requires that the community agreeby ordinance to remit specified annual amounts to the county auditor-controller; and

    WHEREAS, under the threat of dissolution pursuant to AB 1X 26, and upon the contingencies andreservations set forth herein, the City shall make the Fiscal Year 2011-2012 community remittance, currentlyestimated to be Three Hundred Eleven Thousand, Three Hundred Fifty-Four Dollars ($311,354.00), as wellas the subsequent annual community remittances as set forth in the CRL; and

    WHEREAS, the City reserves the right to appeal the California Director of Finances determinationof the Fiscal Year 2011-2012 community remittance, as provided in Health and Safety Code34194; and

    WHEREAS, City understands and believes that an action challenging the constitutionality of AB 1X26 and AB 1X 27 will be filed on behalf of cities, counties and redevelopment agencies; and

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    WHEREAS,while the City currently intends to make these community remittances, they shall bemade under protest and without prejudice to the Citys right to recover such amounts and interest thereon, tothe extent there is a final determination that AB 1X 26 and AB 1X 27 are unconstitutional; and

    WHEREAS, the City reserves the right, regardless of any community remittance made pursuant tothis Ordinance, to challenge the legality of AB 1X 26 and AB 1X 27; and

    WHEREAS, to the extent a court of competent jurisdiction enjoins, restrains, or grants a stay on theeffectiveness of the Alternative Voluntary Redevelopment Programs payment obligation of AB 1X 26 and

    AB 1X 27, the City shall not be obligated to make any community remittance for the duration of suchinjunction, restraint, or stay; and

    WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

    THE CITY COUNCIL OF THE CITY OF LAKEPORT, CALIFORNIA, DOES ORDAINAS FOLLOWS:

    Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein byreference.

    Section 2. Participation in the Alternative Voluntary Redevelopment Program. In accordance

    with Health and Safety Code34193, and based on the Recitals set forth above, the City Council herebydetermines that the City shall comply with the provisions of Part 1.9 of Division 24 of the Health and SafetyCode, as enacted by AB 1X 27.

    Section 3. Payment Under Protest. Except as set forth in Section 4, below, the City Councilhereby determines that the City shall make the community remittances set forth in Health and Safety Code34194 et seq.

    Section 4. Effect of Stay or Determination of Invalidity. City shall not make any communityremittance in the event a court of competent jurisdiction either grants a stay on the enforcement of AB 1X 26and AB 1X 27 or determines that AB 1X 26 and AB 1X 27 are unconstitutional and therefore invalid, and allappeals therefrom are exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed. Anycommunity remittance shall be made under protest and without prejudice to the Citys right to recover suchamount and interest thereon in the event that there is a final determination that AB 1X 26 and AB 1X 27 are

    unconstitutional. If there is a final determination that AB 1X 26 and AB 1X 27 are invalid, this Ordinanceshall be deemed to be null and void and of no further force or effect.

    Section 5. Implementation. The City Council hereby authorizes and directs the City Manager totake any action and execute any documents necessary to implement this Ordinance, including but not limitedto notifying the City of Lakeport County Auditor-Controller, the Controller of the State of California, and theCalifornia Department of Finance of the adoption of this Ordinance and the Citys agreement to comply withthe provisions of Part 1.9 of Division 24 of the Health and Safety Code, as set forth in AB 1X 27.

    Section 6. Additional Understandings and Intent. It is the understanding and intent of the CityCouncil that, once the Agency is again authorized to enter into agreements under the CRL, the City will enterinto an agreement with the Agency as authorized pursuant to Section 34194.2, whereby the Agency willtransfer annual portions of its tax increment to the City in amounts not to exceed the annual community

    remittance payments to enable the City, directly or indirectly, to make the annual remittance payments. TheCity Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues orassets to make the remittance payments.

    Section 7. CEQA. The City Council finds, under Title 14 of the California Code of Regulations,Section 15378(b)(4), that this Ordinance is exempt from the requirements of the California EnvironmentalQuality Act (CEQA) in that it is not a project, but instead consists of the creation and continuation of agovernmental funding mechanism for potential future projects and programs and does not commit funds toany specific project or program. The City Council, therefore, directs that a Notice of Exemption be filed withthe County Clerk of the County of Lake in accordance with CEQA Guidelines.

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    Section 8. Custodian of Records. The documents and materials that constitute the record ofproceedings on which these findings are based are located at the City Clerks office located at 225 Park Street,Lakeport, CA 95453. The custodian for these records is the City Clerk.

    Section 9. Severability. If any provision of this Ordinance or the application thereof to any personor circumstance is held invalid, such invalidity shall not affect other provisions or applications of thisOrdinance which can be given effect without the invalid provision or application, and to this end theprovisions of this Ordinance are severable. The City Council hereby declares that it would have adopted thisOrdinance irrespective of the invalidity of any particular portion thereof.

    Section 10. Certification; Publication. The City Clerk shall certify to the adoption of this Ordinance andcause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of generalcirculation printed and published within the City of Lakeport, and shall post a certified copy of thisOrdinance, including the vote for and against the same, in the Office of the City Clerk in accordance withGovernment Code36933.

    Section 11. Effective Date. This Ordinance shall become effective thirty (30) days from itsadoption.

    Section 12. Posting/Advertising. The City Clerk shall cause this ordinance to be publishedand/or posted within fifteen days after its adoption.

    This ordinance was introduced before the City Council of the City of Lakeport at a regular meetingthereof on the 2nd day of August, 20110, and passed its first reading by the following vote:

    AYES:NOES:

    ABSTAINING:ABSENT:

    This ordinance was duly enacted by the City Council of the City of Lakeport at a regular meetingthereof on the 20th day of September, 2011, by the following vote:

    AYES:NOES:

    ABSTAINING:ABSENT:

    ____________________________________SUZANNE LYONS, Mayor

    ATTEST: APPROVED AS TO FORM:

    ______________________________ _______________________________

    JANEL M. CHAPMAN, City Clerk STEVEN J. BROOKES, City Attorney