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HomeMy WebLinkAbout10/5/2011 - STAFF REPORTS - 2.F.City Council Staff Report DATE: October 5, 2011 CONSENT CALENDAR SUBJECT: SECOND READING AND ADOPTION OF PROPOSED ORDINANCE NO. 1798, TO PRESERVE THE ABILITY TO CONTINUE THE EXISTENCE OF THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY FROM: David H. Ready, City Manager BY: Office of the City Clerk SUMMARY: The City Council will consider adoption of Ordinance No. 1798. RECOMMENDATION: Waive further reading and adopt Ordinance No. 1798, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS." STAFF ANALYSIS: At its September 21, 2011, meeting Ordinance No. 1798 was introduced for first reading "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS" by the following vote: AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Mills, Mayor Pro Tern Weigel, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. Item No. 2. F. ADOPTION OF PROPOSED ORDINANCE NO. 1798 October 5, 2011 Page 2 This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30-days from adoption. s,r / ames Thompson e; City Clerk /kdh Attachment: Ordinance No. 1798 David H. ReadyPh.D. City Manager 5 ORDINANCE NO. 1798 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS City Attorney Summary On July 29, 2011, the Governor signed a law dissolving all redevelopment agencies. At the same time, the Governor signed a law that provides a city the option to continue the existence of its redevelopment agency subject to a series of new conditions and commitments — primarily commitments to make payments to other agencies to be used for special district and educational purposes. Litigation has been filed challenging this legislation and the California Supreme Court has issued a stay on potions of the legislation pending completion of the litigation process. Notwithstanding the uncertainty in the legal status of the legislation, adoption of this Ordinance would preserve the ability to continue the existence of the Palm Springs Community Redevelopment Agency, subject to any judicially validated requirements provided in the new State law. WHEREAS, the City Council of the City of Palm Springs ("City") approved and adopted the Redevelopment Plan for the Merged Redevelopment Project No. 1 and Merged Redevelopment Project No. 2 ("Redevelopment Plan") covering certain properties within the City (the "Project Area"); and WHEREAS, the Community Redevelopment Agency of the City of Palm Springs ("Agency") is engaged in activities to execute and implement the Redevelopment Plan pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ("CRL"); and WHEREAS, since adoption of the Redevelopment Plan, the Agency has undertaken redevelopment projects in the Project Area to eliminate blight, to improve public facilities and infrastructure, to renovate and construct 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 redevelopment projects and programs to continue to eliminate and prevent blight, stimulate. and expand the Project Area's economic growth, create and develop local job opportunities and alleviate deficiencies in public infrastructure, to name a few; and WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has recently enacted and the Governor has signed, companion bills AB 1 X 26 and AB 1 X 27, Ordinance No. 1798 Page 2 requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments; and WHEREAS, specifically, AB 1X26 prohibits agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that agencies are deemed to be dissolved as of October 1, 2011; and WHEREAS, AB 1 X 27 provides that a community may participate in an "Alternative Voluntary Redevelopment Program," in orderto enable a redevelopment agencywithin that community to remain in existence and carry out the provisions of the CRL, by enacting an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code; and WHEREAS, the Alternative Voluntary Redevelopment Program requires that the community agree by 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 and reservations set forth herein, the City shall make the Fiscal Year 2011- 2012 community remittance, currently estimated to be Three Million Four Hundred Thirty Six Thousand, Three Hundred Eighty Dollars ($3,436,380), as well as the subsequent annual community remittances as set forth in the CRL; and WHEREAS, City understands and believes that an action challenging the constitutionality of AB 1 X 26 and AB 1 X 27 was filed with the California Supreme Court (the "Court") on behalf of cities, counties and redevelopment agencies, and that on August 11, 2011, the Court issued a partial stay on the effectiveness of AB 1X 26 and AB 1 X 27 until it can rule on the constitutionality of the two bills; and WHEREAS, while the City currently intends to make these community remittances, they shall be made under protest and without prejudice to the City's right to recover such amounts and interest thereon, to the extent there is a final determination that AB 1 X 26 and AB 1X 27 are unconstitutional; and WHEREAS, the City reserves the right, regardless of any community remittance made pursuant to this Ordinance, to challenge the legality of AB 1X 26 and AB 1X 27; and WHEREAS, to the extent the Court enjoins, restrains, or grants a stay on the effectiveness of the Alternative Voluntary Redevelopment Program's payment obligation of AB 1 X 26 and AB 1 X 27, the City shall not be obligated to make any community remittance for the duration of such injunction, restraint, or stay; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. M Ordinance No. 1798 Page 3 THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. Particioation in the Alternative Voluntary Redevelooment Program. In accordance with Health and Safety Code Section 34193, and based on the Recitals set forth above, the City Council hereby determines that the City shall comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by AB 1 X 27. SECTION 3. Pavment Under Protest. Except as set forth in Section 4, below, the City Council hereby determines that the City shall make the community remittances set forth in Health and Safety Code section 34194 et seq. SECTION 4. Effect of Stav or Determination of Invalidity,. City shall not make any community remittance in the event a court of competent jurisdiction either grants a stay on the enforcement of AB 1 X 26 and AB 1 X 27 or determines that AB 1 X 26 and AB 1 X 27 are unconstitutional and therefore invalid, and all appeals therefrom are exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed. Any community remittance shall be made under protest and without prejudice to the City's right to recover such amount and interest thereon in the event that there is a final determination that AB 1 X 26 and AB 1 X 27 are unconstitutional. If there is a final determination that AB 1 X 26 and AB 1X 27 are invalid, this Ordinance shall 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 to take any action and execute any documents necessary to implement this Ordinance, including but not limited to notifying the Riverside County Auditor -Controller, the Controller of the State of California, and the California Department of Finance of the adoption of this Ordinance and the City's agreement to comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as set forth in AB 1 X 27. SECTION 6. Additional Understandings and Intent. It is the understanding and intent of the City Council that, once the Agency is again authorized to enter into agreements under the CRL, the City will enter into a Remittance Agreement with the Agency as authorized pursuant to Section 34194.2, whereby the Agency will transfer 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. The City Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues or assets 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 Ordinance No. 1798 Page 4 the California Environmental Quality Act ("CEQA") in that it is not a "project," but instead consists of the creation and continuation of a governmental funding mechanism for potential future projects and programs, and does not commit funds to any specific project or program. The City Council, therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of Riverside in accordance with CEQA Guidelines. SECTION 8. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City Clerk's office located at 3200 Tahquitz Canyon Way, Palm Springs, California, 92262. The custodian for these records is James Thompson, City Clerk. SECTION 9. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. SECTION 10. Certification: Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of Palm Springs, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code § 36933. SECTION 11. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 6T" DAY OF JULY, 2011. STEPHEN P. POUGNET, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK Ordinance No. 1798 Page 5 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss. CITY OF PALM SPRINGS) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 1798 was introduced at a regular meeting of the Palm Springs City Council on the 21 st daX of September, 2011, and adopted at a regular meeting of the City Council held on the 5 day of October, 2011 by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California 07 CITY OF PALM SPRINGS NOTIFICATION a City Council Meeting Date: October 5, 2011 Subject: Ordinance No. 1798 AFFIDAVIT OF PUBLICATION I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Ordinance was published in the Desert Sun on October 12, 2011. I declare under penalty of perjury that the foregoing is true and correct. Kathie Hart, CMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Ordinance was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board and in the Office of the City Clerk on October 13, 2011. I declare under penalty of perjury that the foregoing is true and correct. u4a� Kathie Hart, CIVIC Chief Deputy City Clerk �o•tj.11 a� CITY OF PALM SPRINGS ORDINANCE NO. 1795 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 93.20.00 OF THE PALM SPRINGS ZONING CODE RELATING TO BARBER POLES". Citv Attomev's Summary This Ordinance adopts a definition and standards for rotating `barber poles' within the Palm Springs Zoning Code Section 93.20. ORDINANCE NO. 1798 ✓ AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS City Attomey Summary On July 29, 2011, the Govemor signed a law dissolving all redevelopment agencies. At the same time, the Governor signed a law that provides a city the option to continue the existence of its redevelopment agency subject to a series of new conditions and commitments — primarily commitments to make payments to other agencies to be used for special district and educational purposes. Litigation has been filed challenging this legislation and the Califomia Supreme Court has issued a stay on potions of the legislation pending completion of the litigation process. Notwithstanding the uncertainty in the legal status of the legislation, adoption of this Ordinance would preserve the ability to continue the existence of the Palm Springs Community Redevelopment Agency, subject to any judicially validated requirements provided in the new State law. CERTIFICATION I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance Nos. 1795 and 1798 are full, true, and correct copies, and was introduced September 21, 2011, and adopted at a regular meeting of the Palm Springs City Council on October 5, 2011, by the following vote: AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Mills, Mayor Pro Tern Weigel, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. mes Thompson, City Clerk City of Palm Springs, California ORDINANCE NO. 1798 V— AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS City Attorney Summary On July 29, 2011, the Governor signed a law dissolving all redevelopment agencies. At the same time, the Governor signed a law that provides a city the option to continue the existence of its redevelopment agency subject to a series of new conditions and commitments — primarily commitments to make payments to other agencies to be used for special district and educational purposes. Litigation has been filed challenging this legislation and the California Supreme Court has issued a stay on potions of the legislation pending completion of the litigation process. Notwithstanding the uncertainty in the legal status of the legislation, adoption of this Ordinance would preserve the ability to continue the existence of the Palm Springs Community Redevelopment Agency, subject to any judicially validated requirements provided in the new State law. WHEREAS, the City Council of the City of Palm Springs ("City") approved and adopted the Redevelopment Plan for the Merged Redevelopment Project No. 1 and Merged Redevelopment Project No. 2 ("Redevelopment Plan") covering certain properties within the City (the "Project Area"); and WHEREAS, the Community Redevelopment Agency of the City of Palm Springs ("Agency") is engaged in activities to execute and implement the Redevelopment Plan pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ("CRL"); and WHEREAS, since adoption of the Redevelopment Plan, the Agency has undertaken redevelopment projects in the Project Area to eliminate blight, to improve public facilities and infrastructure, to renovate and construct 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 redevelopment projects and programs to continue to eliminate and prevent blight, stimulate and expand the Project Area's economic growth, create and develop local job opportunities and alleviate deficiencies in public infrastructure, to name a few; and WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has recently enacted and the Governor has signed, companion bills AB 1X 26 and AB 1X 27, Ordinance No. 1798 Page 2 requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments; and WHEREAS, specifically, AB 1X 26 prohibits agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that agencies are deemed to be dissolved as of October 1, 2011; and WHEREAS, AB 1X 27 provides that a community may participate in an "Alternative Voluntary Redevelopment Program," in order to enable a redevelopment agency within that community to remain in existence and carry out the provisions of the CRL, by enacting an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code; and WHEREAS, the Alternative Voluntary Redevelopment Program requires that the community agree by 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 and reservations set forth herein, the City shall make the Fiscal Year 2011- 2012 community remittance, currently estimated to be Three Million Four Hundred Thirty Six Thousand, Three Hundred Eighty Dollars ($3,436,380), as well as the subsequent annual community remittances as set forth in the CRL; and WHEREAS, City understands and believes that an action challenging the constitutionality of AB 1 X 26 and AB 1 X 27 was filed with the California Supreme Court (the "Court") on behalf of cities, counties and redevelopment agencies, and that on August 11, 2011, the Court issued a partial stay on the effectiveness of AB 1X 26 and AB 1X 27 until it can rule on the constitutionality of the two bills; and WHEREAS, while the City currently intends to make these community remittances, they shall be made under protest and without prejudice to the City's right to recover such amounts and interest thereon, to the extent there is a final determination thatAB 1X 26 and AB 1X 27 are unconstitutional; and WHEREAS, the City reserves the right, regardless of any community remittance made pursuant to this Ordinance, to challenge the legality of AB 1 X 26 and AB 1 X 27; and WHEREAS, to the extent the Court enjoins, restrains, or grants a stay on the effectiveness of the Alternative Voluntary Redevelopment Program's 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 such injunction, restraint, or stay; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. Ordinance No. 1798 Page 3 THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. Participation in the Alternative Voluntary Redevelopment Proaram. In accordance with Health and Safety Code Section 34193, and based on the Recitals set forth above, the City Council hereby determines that the City shall comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by AB 1X 27. SECTION 3. Pavment Under Protest. Except as set forth in Section 4, below, the City Council hereby determines that the City shall make the community remittances set forth in Health and Safety Code section 34194 et seq. SECTION 4. Effect of Stav or Determination of Invaliditv. City shall not make any community remittance in the event a court of competent jurisdiction either grants a stay on the enforcement of AB 1X 26 and AB 1 X 27 or determines that AB 1X 26 and AB 1 X 27 are unconstitutional and therefore invalid, and all appeals therefrom are exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed. Any community remittance shall be made under protest and without prejudice to the City's right to recover such amount and interest thereon in the event that there is a final determination that AB 1 X 26 and AB 1X 27 are unconstitutional. If there is a final determination that AB 1X 26 and AB 1X 27 are invalid, this Ordinance shall 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 to take any action and execute any documents necessary to implement this Ordinance, including but not limited to notifying the Riverside County Auditor -Controller, the Controller of the State of California, and the California Department of Finance of the adoption of this Ordinance and the City's agreement to comply with the provisions of Part 1..9 of Division 24 of the Health and Safety Code, as set forth in AB 1X 27. SECTION 6. Additional Understandinas and Intent. It is the understanding and intent of the City Council that, once the Agency is again authorized to enter into agreements under the CRL, the City will enter into a Remittance Agreement with the Agency as authorized pursuant to Section 34194.2, whereby the Agency will transfer 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. The City Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues or assets 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 Environmental Quality Act ("CEQX) in that it is not a "project," but instead consists of the creation and continuation of a governmental funding mechanism for Ordinance No. 1798 Page 4 potential future projects and programs, and does not commit funds to any specific project or program. The City Council, therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of Riverside in accordance with CEQA Guidelines. SECTION 8. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City Clerk's office located at 3200 Tahquitz Canyon Way, Palm Springs, California, 92262. The custodian for these records is James Thompson, City Clerk. SECTION 9. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. SECTION 10. Certification: Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of Palm Springs, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code § 36933. SECTION 11. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption. PASSED, APPROVED, AND ADOPTED BYTHE PALM SPRINGS CITY COUNCIL THIS 6T" DAY OF JULY, 2011. STEPHEN P. POUGNET, MAYOR ATTEST: JAMES THOMPSON. CITY CLERK Ordinance No. 1798 Page 5 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss. CITY OF PALM SPRINGS) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 1798 was introduced at a regular meeting of the Palm Springs City Council on the 2151 day of September, 2011, and adopted at a regular meeting of the City Council held on the 5t day of October, 2011 by the following vote: AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Mills, Mayor Pro Tern Weigel, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. JAMES THOMPSON, CITY CLERK City of Palm Springs, California