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Home My WebLink AboutCC AG PKT 2011-01-10 #P AGENDA STAFF REPORT DATE:. January 10, 2010 TO: Honorable Mayor and City Council THRU: Patrick P. Importuna, City Manager FROM: Mark Persico, AICP, Director of Development Services SUBJECT: INTRODUCE ORDINANCE NO. 1604 AMENDING THE RIVERFRONT REDEVELOPMENT PLAN EXTENDING THE EFFECTIVE DATE OF THE PLAN TWO YEARS AS AUTHORIZED UNDER THE EDUCATION REVEUNE AUGMENTATION FUND (ERAF) EXTENSION HEALTH AND SAFETY CODE SECTION 33333.6(e)(2)(D) SUMMARY OF REQUEST: That the City Council introduce the above referenced Ordinance No. 1604. extending the Agency's ability to collect tax increment by two years. 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 ERAF) 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. Health and Safety Code Section 33333.6(e)(3)(A) requires the legislative body shall conduct a public hearing, notice of which shall be mailed to the governing body of each affected taxing entity at least 30 days prior to the public hearing and Agenda Item P Page 2 published in a newspaper of general circulation in the community at least once, not less than 10 days prior to the public hearing. Mailed notice was sent to the affected entities on December 10, 2010, and the notice was published on December 22, 2010. On December 13, 2010, the City Council adopted Ordinance No. 1602 amending the time limit for the Riverfront Redevelopment Project Area by one year for the ERAF payment made in fiscal year 2003 -04. As authorized under Health and Safety Code Section 33333.6(e)(2)(D), the proposed ordinance extends the time limits for two years to compensate for the Toss in revenue for fiscal year 2004 -05 and 2005 -06. 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 two additional years. RECOMMENDATION: That the Council introduce first reading of Ordinance No. 1604 extending the Riverfront Redevelopment Plan by two years. SUBMITTED BY: NOTED AND APPROVED: 1%114111111.' / 141 AA, Mark Persico Pa rick P. m • o City Manager Director of Development Services • Attachments: A. Ordinance No. 1604 - Extending the Redevelopment Agency by Two Years ATTACHMENT "A" ORDINANCE NO. 1604 AN ORDINANCE OF THE SEAL BEACH CITY COUNCIL AMENDING THE RIVERFRONT REDEVELOPMENT PLAN EXTENDING THE EFFECTIVE DATE OF THE PLAN TWO YEARS AS AUTHORIZED UNDER THE EDUCATION REVEUNE AUGMENTATION FUND (ERAF) EXTENSION HEALTH AND SAFETY CODE SECTION 33333.6(e)(2)(D) ORDINANCE NUMBER 1 604 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)(D) 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. Pursuant to Health and Safety Code Section 33333.6(e)(2)(C), the City Council, by Ordinance No. 1602, amended the redevelopment plan for the Riverfront Redevelopment Project to extend by one year the time limits on the effectiveness of such redevelopment plan and the time limits to repay indebtedness and receive property taxes pursuant to Health and Safety Code Section 33670 (as amended, the redevelopment plan for the Riverfront Redevelopment Project is hereinafter referred to as the "Redevelopment Plan "). C. Health and Safety Code Section 33681.12, added by Senate Bill 1096, required the Agency during the 2004 -05 fiscal year and the 2005 -06 fiscal year to make a payment for deposit in Orange County's Educational Revenue Augmentation Fund ( "ERAF ") and the Agency made such payments. D. Senate Bill 1096 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 33681.12, the legislative body may amend a redevelopment plan adopted on or before December 31, 1993, for which the time limit(s)for the effectiveness of the redevelopment plan established pursuant to Health and Safety Code Section 33333.6(a) are 10 years or Tess from the last day of the fiscal year in which an ERAF payment is made pursuant to Health and Safety Code Section 33681.12, to extend by one year for each year an ERAF payment was made 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. Health and Safety Code Section 33333.6(e)(3)(A) provides that prior to adopting an SB 1096 amendment ordinance, the legislative body shall conduct a public hearing, notice of which shall be mailed to the governing body of each affected taxing entity at least 30 days prior to the public hearing and published in a newspaper of general circulation in the community at least once, not Tess than 10 days prior to the public hearing. F. 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 two years pursuant to Health and Safety Code Section 33333.6(e)(2)(D) in accordance with paragraph (D) above. Ordinance Number 1604 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Finding. The City Council hereby finds and determines that the funds used to make the fiscal year 2004 -05 and 2005 -06 ERAF payments would otherwise have been used to pay the cost of projects and activities necessary to carry out the goals and objectives of the Redevelopment Plan. Section 2. Public Hearing. On January 10, 2011, the City Council held a duly noticed public hearing to introduce and conduct first reading of this Ordinance. Section 3. Effectiveness. Notwithstanding any provision of the Redevelopment Plan or Ordinance Nos. 1392 or 1602, pursuant to Health and Safety Code Section 33333.6(e)(2)(D), 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 two years. Section 4. Repayment of Indebtedness and Receipt of Property Taxes. Notwithstanding any provision of the Redevelopment Plan or Ordinance Nos. 1392 or 1602, pursuant to Health and Safety Code Section 33333.6(e)(2)(D), 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 two years. Section 5. 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 6. 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 15378(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 7. 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 8. 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. Ordinance Number 1604 Section 9. Transmittal to Agency. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 10. 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 , 2011. Mayor ATTEST: City Clerk 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 10th day of January , 2011 and was passed, approved and adopted by the City Council at a regular meeting held on the day of ,2011 by the following vote: AYES: Council Members: NOES: Council Members: ABSENT: Council Members: ABSTAIN: Council Members: And do hereby further certify that Ordinance Number 1604 has been published pursuant to the Seal Beach City Charter and Resolution Number 2836. City Clerk