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Home My WebLink AboutCC AG PKT 2011-03-07 #A AGENDA STAFF REPORT DATE: March 7, 2011 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, Acting City Manager FROM: Mark Persico, AICP, Director of Development Services SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1605 AMENDING THE RIVERFRONT REDEVELOPMENT PLAN TO ELIMINATE THE TIME LIMIT ON THE REDEVELOPMENT AGENCY'S ABILITY TO INCUR DEBT SUMMARY OF REQUEST: Waive further reading and adopt Ordinance No. 1605, eliminating the time limit on the Agency's ability to incur debt. BACKGROUND: The City Council conducted a public hearing on the matter on February 28, 2011 and introduced the subject ordinance. It is now appropriate to adopt the subject ordinance. FISCAL IMPACT: No impact at this time. ANALYSIS: This Ordinance eliminates the time limit on incurring indebtedness, but does not affect the overall time limits of the Riverfront Redevelopment Plan. RECOMMENDATION: Waive further reading and adopt Ordinance No. 1605, eliminating the time limit on the Agency's ability to incur debt. Agenda Item A Page 2 SUBMITTED BY: NOTED AND APPROVED: Mark Persico, AICP J' . Ingram, Director of Development Services Acting City Manager Attachment A. Ordinance No. 1605 • ORDINANCE NUMBER 1605 AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING THE REDEVELOPMENT PLAN FOR THE RIVERFRONT REDEVELOPMENT PROJECT PURSUANT TO THE PROVISIONS OF HEALTH AND SAFETY CODE SECTION 33333.6(e)(2)(B) RECITALS: A. The Seal Beach Redevelopment Agency ( "Agency ") is a redevelopment agency in the City of Seal Beach, created pursuant to the Califomia Community Redevelopment Law, Califomia Health and Safety Code Section 33000 et seq. ( "Redevelopment Law "). B. The City Council of the City of Seal Beach ( "City Council "), by Ordinance No. 780, adopted on March 2, 1969, approved and adopted the redevelopment plan ("Redevelopment Plan ") for the Riverfront Redevelopment Project ( "Original Territory"). C. The City Council, by Ordinance No. 983, adopted on December 29, 1975, approved and adopted an amendment to the Redevelopment Plan which added territory to the Riverfront Redevelopment Project ( "Added Territory"). D. The City Council, by Ordinance No. 1392, adopted on December 12, 1994, established and confirmed certain time limits in the Redevelopment Plan for the Original Territory and the Added Territory pursuant to Califomia Health and Safety Code Section 33333.6. E. Pursuant to Health and Safety Code Sections 33333.6 (e)(2)(C) and 33333.6(e)(2)(D), the City Council, by Ordinance No. 1602, adopted on December 13, 2010, and Ordinance No. 1604, adopted on January 17, 2011, amended the Redevelopment Plan to extend the time limit on the effectiveness of the Redevelopment Plan and the time limit to repay indebtedness and receive property taxes pursuant to Health and Safety Code Section 33670 for the Original Territory and the Added Territory. F. SB 211 (effective January 1, 2002) amended Health and Safety Code Section 33333.6 to eliminate former subdivision (a). Subdivision (a) required redevelopment plans (or amendments adding territory) adopted on before December 31, 1993 to contain a time limit on the establishment of loans, advances and indebtedness to be paid with the proceeds of property taxes received pursuant to Health and Safety Code Section 33670 of not to exceed the later of 20 years from adoption of the redevelopment plan (or amendment adding territory) or January 1, 2004. In addition, SB 211 added language to subdivision (e)(2) of Health and Safety Code Section 33333.6 providing that on or after January 1, 2002, a redevelopment plan which was adopted on or before December 31, 1993, may be amended to eliminate the time limit on the establishment of loans, advances and indebtedness which was required by Health and Safety Code Section 33333.6 prior to January 1, 2002. Section 33333.6 was subsequently amended by SB 1045 (effective September 1, 2003) to codify such provision in subdivision (e)(2)(B) thereof. G. The City Council desires to amend the Redevelopment Plan pursuant to Health and Safety Code Section 33333.6(e)(2)(B) to eliminate the time limits on the establishment of loans, advances and indebtedness to be paid with the proceeds of property taxes derived from the Original Territory and the Added Territory and received pursuant to Health and Safety Code Section 33670 to finance in whole, or in part, the redevelopment project. Health and Safety Code Section 33333.6(e)(2)(B) provides that the City Council may so amend the Redevelopment Plan by adopting an ordinance and that in adopting such ordinance, neither the City Council nor the Agency is required to comply with Health and Safety Code Section 33354.6 or Article 12 (commencing with Health and Safety Code Section 33450) or any other provision of the Redevelopment Law relating to the amendment of redevelopment plans; except that the Agency shall -1- S7284.0502\1324468v3 doc a Ordinance Number 1605 make the payment to affected taxing entities required by Health and Safety Code Section 33607.7. H. Health and Safety Code Section 33607.7 provides that following the adoption of this Ordinance, the Agency shall pay to each affected taxing entity for which an agreement requiring payments to the taxing entity had not been entered into as of January 1, 1994 the amounts required pursuant to Health and Safety Code Section 33607.5 calculated against the amount of assessed value by which the current year assessed value exceeds an adjusted base year assessed value, with the payments to commence in the first fiscal year following the fiscal year in which the adjusted base year value is determined. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Pursuant to Health and Safety Code Section 33333.6(e)(2)(B), the time limit on the establishment of loans, advances and indebtedness to be paid with the proceeds of property taxes derived from the Original Territory or the Added Territory and received pursuant to Health and Safety Code Section 33670 to finance in whole, or in part, the redevelopment project is hereby eliminated. Section 2. For the purpose of making payments to affected taxing entities pursuant to Health and Safety Code Section 33607.7 occasioned by the adoption of this Ordinance the City Council hereby determines (i) that the adjusted base year assessed value of the Original Territory is the assessed value of the Original Territory in fiscal year 2003 -04 (January 1, 2004 being the time limit on the establishment of loans, advances and indebtedness with respect to the Original Territory as set forth in the City's Ordinance No. 1392) and (ii) that the adjusted base year assessed value of the Added Territory is the assessed value of the Added Territory in fiscal year 2003 -04 (January 1, 2004 being the time limit on the establishment of loans, advances and indebtedness with respect to the Added Territory as set forth in the City's Ordinance No. 1392). The City Council hereby further determines that the Agency shall commence making payments to affected taxing entities pursuant to Health and Safety Code Section 33607.7 in fiscal year 2011 -12, being the first fiscal year following the fiscal year in which the adjusted base year value is determined (i.e., fiscal year 2010 -11). The City Council hereby further determines that no payments shall be made to affected taxing entities pursuant to Health and Safety Code Section 33607.7 based upon tax increment revenues received by the Agency in any fiscal year prior to fiscal year 2011 -12. The City Council further determines that the amounts, if any, required to be paid pursuant to Health and Safety Code Section 33607.5(c) or (d) shall commence in fiscal year 2021- 22 and fiscal year 2041 -42, respectively and the adjusted base year values of the Original Territory and the Added Territory shall be the assessed value of the Original , Territory and Added Territory, respectively, in fiscal year 2020 -21 and fiscal year 2040- 41, respectively. Section 3. This Ordinance is adopted pursuant to Health and Safety Code Section 33333.6(e)(2)(B). Section 4. 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 5. Califomia Environmental Quality Act. This Ordinance has been reviewed with respect to applicability of the California Environmental Quality Act ( "CEQA "), and the State CEQA Guidelines ( Califomia 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 -2- S7284-0502U324468v3 doc Ordinance Number 1605 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 6. Severabilitv. 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 7. 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 8. Transmittal to Agency. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 9. 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 7th day of March , 2011. Mayor ATTEST: City Clerk -3- S7284- 0502\1324468v3 dac Ordinance Number 1605 , 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 28th day of February , 2011 and was passed, approved and adopted by the City Council at a regular meeting held on the 7th day of March ,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 1605 has been published pursuant to the Seal Beach City Charter and Resolution Number 2836. City Clerk -4- S7284 - 0502 \1324468v3 doc