Resolution No. 2013-078RESOLUTION NO. 2013-78
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON (A) TAKING NO POSITION TO THE FOLLOWING
ACTIONS OF THE SUCCESSOR AGENCY TO THE FORMER
VERNON REDEVELOPMENT AGENCY ACTIONS: (i) THE
CESSATION OF MEMBERSHIP ACTIVITY OF THE FORMER
VERNON REDEVELOPMENT AGENCY IN THE VERNON ECONOMIC
DEVELOPMENT AUTHORITY AND VERNON NATURAL GAS
FINANCING AUTHORITY, (ii) THE SETTING OF
OCTOBER 1, 2013, OR AS SOON THEREAFTER, AS THE
PUBLIC HEARING FOR TERMINATION OF THE VERNON
ECONOMIC DEVELOPMENT AUTHORITY AND VERNON NATURAL
GAS FINANCING AUTHORITY, AND (iii) AUTHORIZING THE
EXECUTIVE DIRECTOR OF THE SUCCESSOR AGENCY OF THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON, OR HIS
ASSIGNEE, TO TAKE ALL NECESSARY, APPROPRIATE, AND
ANCILLARY ACTIONS TO IMPLEMENT THE CESSATION OF
MEMBERSHIP AND SETTING OF PUBLIC HEARING FOR
TERMINATION OF THE VERNON ECONOMIC DEVELOPMENT
AUTHORITY AND VERNON NATURAL GAS FINANCING
AUTHORITY, WHICH ARE IN FURTHERANCE AND PURSUANT TO
CALIFORNIA HEALTH & SAFETY CODE SECTIONS 34177(h)
AND 34177.3 AND (B) AUTHORIZING THE SUCCESSOR
AGENCY TO THE FORMER VERNON REDEVELOPMENT AGENCY TO
IMPLEMENT AFORESAID ACTIONS SO LONG AS IT OBTAINS
THE APPROVAL OF ITS OVERSIGHT BOARD
WHEREAS, the City Council of the City of Vernon Acting as
the Successor Agency of the Redevelopment Agency of the City of Vernon
(the "Successor Agency") has assumed the obligations of the former
Vernon Redevelopment Agency pursuant to AB X1 26, as amended by AB
1484 (the "Dissolution Statutes"); and
WHEREAS, the Oversight Board to the Successor Agency (the
"Oversight Board") was created in the Dissolution Statutes; and
WHEREAS, the Successor Agency assumed responsibilities as a
co -member with the City of Vernon in the Vernon Economic Development
Authority ("VEDA") and the Vernon Natural Gas Financing Authority
("VNGFA"), two joint powers authorities engaged in, among other
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things, the elimination of blight in the City of Vernon; and
WHEREAS, the Dissolution Statutes effectively dissolved the
former Vernon Redevelopment Agency and its powers of blight
elimination under the Community Redevelopment Law; and
WHEREAS, the Successor Agency is charged with the winding
down of the affairs of the former Vernon Redevelopment Agency under
Health & Safety Code section 34177(h); in furtherance of this
obligation in the Dissolution Statutes, the Successor Agency desires
to cease its membership in VEDA and VNGFA and set public hearings on
October 1, 2013, or as soon thereafter, for the termination of VEDA
and VNGFA, and approve certain related actions pursuant to California
Health & Safety code sections 34177(h) and 34177.3; and
WHEREAS, the City Council of the City of Vernon does not
presently have the budget or foresee sufficient budgeting to continue
the affairs of VEDA or VNGFA without the former Vernon Redevelopment
Agency and there is no other public entity presently available to
replace the former Vernon Redevelopment Agency in VEDA or VNGFA;
therefore, the City Council of the City of Vernon desires to take no
action in response to the actions herein of the Successor Agency as
part of the obligations under the Dissolution Statutes and authorizes
the Successor Agency to.move forward with their plans so long as it
obtains approval from its Oversight Board.
NOW, THEREFORE, BE IT RESOLVED BY A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon takes no
position in response to the action of the Successor Agency to.cease
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membership activity in VEDA and VNGFA, other than such membership
activity necessary and appropriate to the obligations imposed upon the
Successor Agency to wind down the affairs of the former Vernon
Redevelopment Agency.
SECTION 3: The City Council of the City of Vernon consents
to the Successor Agency action to set October 1, 2013, or as soon
thereafter, as the date in which there be noticed public hearings of
Successor Agency, VEDA, VNGFA, and the City of Vernon to consider the
termination of VEDA and VNGFA as the Successor Agency does not have
the capacity or statutory authority to undertake the activities of
VEDA and VNGFA to eliminate blight in the City.
SECTION 4: The City Council of the City of Vernon consents
to the Successor Agency action to authorize the Executive Director of
the Successor Agency, or his assignee, to take all necessary,
appropriate, and ancillary actions to implement and facilitate the
desires of the Successor Agency hereinabove.
SECTION 5: Pursuant to California Health & Safety Code
section 34179(h), the California Department of Finance may review an
oversight board action. An action of the oversight board shall become
effective five (5) business days after notice in the manner specified
by Finance, unless Finance requests review. The Assistant Executive
Director of the Successor Agency, Mr. Alex Kung, c/o Vernon City Hall,
4305 Santa Fe Avenue, Vernon, CA 90058 Telephone (323) 583-8811
Extension 355 (akung@ci.vernon.ca.us) is designated as the official for
notice of review by Finance. Except as otherwise provided in
California Health & Safety Code section 34179(h), in the event Finance
requests a review of a given oversight board action, Finance shall have
forty (40) days from the date of this request to approve the oversight
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board action or return it to the oversight board for reconsideration;
the oversight board shall resubmit the modified action for Finance
approval and the modified oversight board action shall not become
effective until approved by Finance.
SECTION 6: The City Council of the City of Vernon finds
that this action is exempt under the California Environmental Quality
Act (CEQA), in accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an effect on the
environment.
SECTION 7: The Interim City Clerk, or Deputy City Clerk, of
the City of Vernon shall certify to the passage, approval and adoption
of this resolution, and the Interim City Clerk, or Deputy City Clerk,
of the City of Vernon shall cause this resolution and the Interim City
Clerk's, or Deputy City Clerk's, certification to be entered in the
File of Resolutions of the Council of this City.
APPROVED AND ADOPTED this 17th day of September, 2013.
Z&0001'0
Name: W. Michael McCormick
Title:Chairman / e
�d
ATTEST:
Interim City Clerk /
r-_lr Yr
APPROVED AS TO FORM:
Kane o/Lama'
Kane, Ballm :r/O rkSpecial Co n1 to City
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Dana Reed Interim City Clerk-Bepp Si.*,—C1 A��p
the City of Vernon, do hereby certify that the foregoing Resolution,
being Resolution No. 2013-78, was duly passed, approved and adopted by
the City Council of the City of Vernon at a regular meeting of the
City Council duly held on Tuesday, September 17, 2013, and thereafter
was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this k day of September, 2013, at Vernon, California.
(SEAL)
W IWI
D a Reed
Interim City Clerk / Rep �r v
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CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: September 24, 2013
TO: Alex Kung, Assistant Executive Director of the Successor Agency
FROM: Deborah Juarez, Records Management Assistant
RE: Resolution No. 2013-78 — Recommending that the City Take no Position as the
Successor Agency of the Former Vernon Redevelopment Agency and its Oversight Board
Consider Ceasing Membership as a Member of the Joint Powers Authorities for (1)
Vernon Economic Development Authority; and (2) Vernon Natural Gas Finance
Authority
Transmitted herewith is a copy of Resolution No. 2013-78 as referenced above, which was approved by
City Council on September 17, 2013.
Thank you.
Attachment
c: William Fox
Gustavo Lamanna
Resolution No. 2013-78
SEP 1 1 2013
RECEIVED STAFF REPORT �ITYADMINISTRATION
SEP 12 2013 Successor Agency
CIT`�Gpu c nG�ir�
DATE: September 17, 2013
TO: Honorable Mayor and City Council
FROM: Alex Kung, Successor Agency Staff hk
RE: (A) Recommendation that the City of Vernon take no position as the
Successor Agency of the Former Redevelopment Agency and its Oversight
Board consider ceasing membership in the Joint Powers Authorities for (1)
Vernon Economic Development Authority; and (2) Vernon Natural Gas
Financing Authority; and
(B) Authorization to allow Successor Agency to Implement the
Recommendation of the Successor Agency and its Oversight Board with the
expected termination of the (1) Vernon Economic Development Authority;
and (2) Vernon Natural Gas Financing Authority and take all acts necessary,
appropriate, and ancillary to the termination thereof.
Recommendations to the City Council:
1) Find that the recommendation to take no position in the cessation of membership activities in
the Vernon Economic Development Agency ("VEDA") and the Vernon Natural Gas
Financing Authority is except under the California Environmental Quality Act ("CEQA") in
accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects
that may have an effect on the environment; and
2) Direct staff to take no position in the likely upcoming termination of VEDA and VNGFA as
the Successor Agency and its Oversight Board move to cease membership in VEDA and
VNGFA; and
3) Authorize the Successor Agency, with the approval of its Oversight Board, to implement
recommendations concerning the expected termination of VEDA and VNGFA and take all
acts necessary, appropriate, and ancillary to the wind down of the affairs of VEDA and
VNGFA.
Background:
The City of Vernon is a member of two joint powers authorities with the former Vernon
Redevelopment Agency; these joint powers authorities are the Vernon Economic Development
Authority (VEDA) and Vernon Natural Gas Financing Authority (VNGFA).
The stated purpose for VEDA is to undertake projects and programs for the promotion of
economic development of the City including creation and retention of employment, stimulation
of economic activity, increase of tax base, and financing through the Industrial Development
Act.
The stated purpose for VNGFA is to undertake projects and programs for the promotion of
economic development of the City including creation and retention of employment, stimulation
of economic activity, increase of tax base, and assisting in procuring natural gas for distribution
including financing through the issuance of bonds or like evidence of indebtedness.
Pursuant to those obligations imposed on the City of Vernon acting as the Successor Agency to
the former Vernon Redevelopment Agency (the "Successor Agency") by the dissolution statutes
AB Xl 26, as amended by AB 1484, there is no further economic development activity being
undertaken by the former Vernon Redevelopment Agency since January 31, 2012.
These joint powers authorities are partially charged with the furtherance of economic
development within the City of Vernon. As the former Vernon Redevelopment Agency no
longer exists to assist the City of Vernon with promoting economic development, Successor
Agency staff, in furtherance of the dissolution statutes, recommends setting public hearings on
October 1, 2013 for consideration of termination of VEDA and VNGFA.
The Successor Agency is charged with the obligation to expeditiously wind down the affairs of
the Redevelopment Agency in accordance with the direction of the Oversight Board to the
SuccessonAgency under the dissolution statutes AB Xl 26, as amended by AB 1484,
specifically, Health & Safety Code section 34177(h). In Health & Safety Code sections
3417 1 (d)(1)(E) and 34171(d)(2), the Successor Agency is not prohibited from terminating
existing agreements so long as it seeks approval of the Oversight Board of the Successor
Agency. On September 5, 2013, the Oversight Board approved Resolution No. OB-22
consenting to the Successor Agency's recommendations to cease membership activity in VEDA
and VNGFA.
As the former Vernon Redevelopment Agency no longer engages in the elimination of blight and
furtherance of economic development in the City of Vernon and Health & Safety Code section
34177(h) calls for the wind down of its affairs, the Successor Agency staff does not see any
further reason for the Successor Agency to participate in either VEDA or VNGFA on a going
forward basis. Therefore, on September 17, 2013, the Successor Agency will be considering the
cessation of the Successor Agency membership in VEDA and VNGFA. Staff is advising the
City of this upcoming event and if approved, staff will subsequently recommend that the City
and Successor Agency terminate the joint powers agreements for both VEDA and VNGFA on or
after October 1, 2013.
As the Successor Agency no longer has powers under the current version of the Community
Redevelopment Law to engage in new activities to promote economic development, staff is also
recommending that the City authorize the Successor Agency, with direction of its Oversight
Board, to implement the recommendations concerning the expected termination of VEDA and
VNGFA on or after October 1, 2013 and take all acts necessary, appropriate, and ancillary to the
wind down of the affairs of VEDA and VNGFA.
Fiscal Impact:
Since the City of Vernon has not budgeted or historically expended general funds for blight
elimination and the former Vernon Redevelopment Agency was the statutorily charged public
entity to satisfy that role in the jurisdiction, staff does not recommend general funds be used for
blight elimination at this time.