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Home My WebLink AboutCC AG PKT 2010-11-08 #F AGENDA REPORT DATE: November 8, 2010 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Mark Persico, AICP, Director of Development Services SUBJECT: INTRODUCE ORDINANCE NO. 1602 AMENDING THE RIVERFRONT REDEVELOPMENT PLAN EXTENDING THE EFFECTIVE DATE OF THE PLAN ONE YEAR AS AUTHORIZED UNDER THE EDUCATION REVEUNE AUGMENTATION FUND (ERAF) EXTENSION HEALTH AND SAFETY CODE SECTION 33333.6(e)(2)(C) SUMMARY OF REQUEST: That the City Council introduce the above referenced Ordinance No. 1602 extending the Agency's ability to collect tax increment by one year. BACKGROUND, FACTS AND ANALYSIS: In order to balance its budget, the State has required redevelopment agencies to shift agency revenue to the state. Such payments to the state are commonly known as Educational Revenue Augmentation Fund (ERAF) (and, more recently, Supplemental SERAF) payments. Historically, Seal Beach's redevelopment agency has used such revenue on local projects such as acquiring the land for the police station, City yard and greenbelt, expanding the capacity of the pump station and improving and repaving City streets. To partially alleviate the impacts of reduced available revenue available for such local projects due to shifting agency revenue to the State, the State has authorized cities to amend redevelopment plans to extend the Redevelopment Plan's time limits on effectiveness and the receipt of tax increment one year for each of certain years — fiscal years 2003 -04, 2004 -05 and 2005 -06— agencies were required to make ERAF payments. The Agency made ERAF payments in each of those years. As authorized under Health and Safety Code Section 33333.6(e)(2)(C), the proposed ordinance extends the time limits for one year to compensate for the loss in revenue for fiscal year 2003 -04. Agenda Item F Page 2 This Ordinance is deemed to not be a project that is subject to the requirements of the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15378(b)(4) as a government funding mechanism which does not involve a commitment to any specific project. FISCAL IMPACT: Projected increase in tax increment for an additional year. RECOMMENDATION: That the Council introduce first reading of Ordinance No. 1602 extending the Riverfront Redevelopment Plan by one year. SUBMITTED BY: NOTED AND APPROVED: Mark Persico David Carmany Director of Development Services City Manager Attachments: A. Ordinance No. 1602 - Extending the Redevelopment Agency by One Year ATTACHMENT "A" ORDINANCE NO. 1602 AN ORDINANCE OF THE SEAL BEACH CITY COUNCIL AMENDING THE RIVERFRONT REDEVELOPMENT PLAN EXTENDING THE EFFECTIVE DATE OF THE PLAN ONE YEAR AS AUTHORIZED UNDER THE EDUCATION REVEUNE AUGMENTATION FUND (ERAF) EXTENSION HEALTH AND SAFETY CODE SECTION 33333.6(e)(2)(C) ORDINANCE NUMBER 1602 AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING CERTAIN TIME LIMITS WITH RESPECT TO THE REDEVELOPMENT PLAN FOR THE RIVERFRONT REDEVELOPMENT PROJECT PURSUANT TO THE PROVISIONS OF HEALTH AND SAFETY CODE SECTION 33333.6(e)(2)(C) RECITALS: A. The Seal Beach Redevelopment Agency ( "Agency ") is a redevelopment agency in the City of Seal Beach, created pursuant to the California Community Redevelopment Law, California Health and Safety Code Section 33000 et seq. B. The City Council of the City of Seal Beach ( "City Council ") adopted Ordinance No. 780, approving and adopting the redevelopment plan for the Riverfront Redevelopment Project. From time to time, the City Council has amended such redevelopment plan. Pursuant to California Health and Safety Code Section 33333.6, the City Council adopted Ordinance No. 1392, establishing and confirming certain time limits in the redevelopment plan for the Riverfront Redevelopment Project (as amended, the "Redevelopment Plan "). C. Health and Safety Code Section 33681.9, added by Senate Bill 1045, required the Agency during the 2003 -04 fiscal year to make a payment for deposit in Orange County's Educational Revenue Augmentation Fund ( "ERAF ") and the Agency made such payment. D. Senate Bill 1045 amended Health and Safety Code Section 33333.6 to provide that when a redevelopment agency is required to make a payment pursuant to Health and Safety Code Section 33681.9, the legislative body may amend a redevelopment plan adopted on or before December 31, 1993 to extend by one year the time limit(s) on the, effectiveness of the redevelopment plan and the time limit(s) to repay indebtedness and receive property taxes pursuant to Health and Safety Code Section 33670 by the adoption of an ordinance. E. The City Council and Agency desire to extend the time limits on the effectiveness of the Redevelopment Plan and the time limits to repay indebtedness and receive property taxes pursuant to Health and Safety Code Section 33670 by one year pursuant to Health and Safety Code Section 33333.6(e)(2)(C). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Effectiveness. Notwithstanding any provision of the Redevelopment Plan or Ordinance No. 1392, pursuant to Health and Safety Code Section 33333.6(e)(2)(C), except as otherwise permitted or required by law, the time limits in the Redevelopment Plan on the effectiveness of the Redevelopment Plan shall be extended by one year. Section 2. Repayment of Indebtedness and Receipt of Property Taxes. Notwithstanding any provision of the Redevelopment Plan or Ordinance No. 1392, pursuant to Health and Safety Code Section 33333.6(e)(2)(C), except as provided in subsections (g) and (h) of Health and Safety Code Section 33333.6 or as otherwise permitted or required by law, the time limits in the Redevelopment Plan for the Agency to pay indebtedness with the proceeds of property taxes received pursuant to Health and Safety Code Section 33670 or to receive property taxes pursuant to Health and Safety Code Section 33670 are extended by one year. Ordinance Number 1602 Section 3. Continuation of Redevelopment Plan. Except as amended by this Ordinance, the Redevelopment Plan is unchanged and is continued in full force and effect in accordance with its terms. Section 4. California Environmental Quality Act. This Ordinance has been reviewed with respect to applicability of the California Environmental Quality Act ( "CEQA "), and the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines "), and the City's environmental guidelines. The City has determined that this Ordinance is not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378. Specifically, this Ordinance is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment. (Guidelines Section 15376(b)(5)) Therefore, because it is not a "project," this Ordinance is not subject to CEQA's requirements. Further, even if this Ordinance were deemed a "project" and therefore subject to CEQA, the Ordinance would be covered by the general rule that CEQA applies only to projects that have the potential to cause a significant effect on the environment. (Guidelines Section 15061 (b)(3)) As an organizational or administrative activity, the Ordinance does not have the potential to cause a significant effect on the environment and is therefore exempt under this general rule. Further, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, and thus this Ordinance is not subject to CEQA. (Guidelines Section 15061(b)(3).) Section 5. Severability. If any part of this Ordinance is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, for any reason, such decision shall not affect the validity of the remaining portions of this Ordinance and this City Council hereby declares that it would have passed the remainder of this Ordinance if such invalid or unconstitutional portion thereof had been deleted. Section 6. Certification. The City Clerk shall certify to the passage of this Ordinance and is hereby directed to publish or post this Ordinance in accordance with law. Section 7. Transmittal to Agency. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 8. Filing Notice of Exemption. Staff is hereby directed to file a Notice of Exemption with the County Clerk within five days of the adoption of this Ordinance pursuant to Section 15062 of the Guidelines. PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach at a regular meeting held on the day of , 2010. Mayor ATTEST: City Clerk Ordinance Number 1602 STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing Ordinance was introduced for first reading at a regular meeting held on the 8th day of November , 2010 and was passed, approved and adopted by the City Council at a regular meeting held on the _ day of ,2010 by the following vote: • AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: And do hereby further certify that Ordinance Number 1602 has been published pursuant to the Seal Beach City Charter and Resolution Number 2836. City Clerk