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Home My WebLink About2009-10-20; City Council; 20008; Time extension for Village Redevelopment PlanCITY OF CARLSBAD - AGENDA BILL AB# 20,008 MTG. 10/20/09 DEPT. Clerk EXTENSION OF TIME LIMIT FOR VILLAGE REDEVELOPMENT PLAN DEPT. HEAD c/- CITY ATTY. l CITY MGR. RECOMMENDED ACTION: Adopt Ordinance No. CS-060, amending the Carlsbad Village Area Redevelopment Plan to extend the effectiveness time limit for one (1) additional year pursuant to Assembly Bill 26 as codified in Health and Safety Code Section 33331.5. ITEM EXPLANATION: Ordinance No. CS-060 was introduced and first read at the City Council meeting held on October 6, 2009. The second reading allows the City Council to adopt the ordinance which will become effective thirty days after adoption. The City Clerk will have the ordinance published within fifteen days, if adopted. FISCAL IMPACT: See Agenda Bill No. 19,990 on file in the Office of the City Clerk. EXHIBITS: 1. Ordinance No. CS-060. DEPARTMENT CONTACT: Karen R. Kundtz (760) 434-2808, karen.kundtz@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED )& DENIED D CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 18 19 21 22 23 24 25 27 XV k.xL'J '/ ORDINANCE NO. CS-060 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING THE CARLSBAD VILLAGE AREA REDEVELOPMENT PLAN TO EXTEND THE EFFECTIVENESS TIME LIMIT FOR ONE (1) ADDITIONAL YEAR PURSUANT TO ASSEMBLY BILL 26 AS CODIFIED IN HEALTH AND SAFETY CODE SECTION 33331.5 WHEREAS, the City Council of the City of Carlsbad ("City Council) adopted Ordinance No. 9591 on July 7, 1981, approving and adopting the Carlsbad Village Redevelopment Plan (hereinafter referred to as the "Redevelopment Plan"); and WHEREAS, Section 33690 (a) (1)(A) of the State of California's Health and Safety Code as enacted by Assembly Bill 26 purports to require the Carlsbad Redevelopment Agency to remit payment to the Supplemental Educational Revenue Augmentation Fund in an amount determined by the State of California's Director of Finance; and WHEREAS, the Carlsbad Redevelopment Agency has, subject to the reservation of rights set forth in Section 4 of this Ordinance, allocated the full amount of the Supplemental Educational Revenue Augmentation Fund to be calculated pursuant to applicable law within its Village Redevelopment Area spending plan, consistent with the estimates of the State Director of Finance; andIO WHEREAS, Section 33331.5 of the Health and Safety Code provides that when a Redevelopment Agency is required to make a payment to the Supplemental Educational Revenue Augmentation Fund pursuant to Section 33690 of the Health and Safety Code and the Agency has allocated the full amount of the payment to be calculated pursuant to applicable law, the legislative body may extend the effectiveness of the redevelopment plan by one (1) year; and, 20 WHEREAS, the effectiveness time limit for the Village Redevelopment Plan may be approved by the legislative body, and neither the legislative body nor the agency is required to comply with Section 33354.6, Article 12 (commencing with Section 33450) of the State Health and Safety Code, or any other provision of this part relating to the amendment of redevelopment plans, including, but not limited to, the requirement to make the payment to the affected taxing entities required by Health and Safety Code Section 33607.7; and, WHEREAS, the City Council desires to amend the Village Redevelopment Plan pursuant to the authority granted in Health and Safety Code Section 33331.5 26 to extend the effectiveness date of the Plan for one additional year to July 21, 2010, and is authorized to do so pursuant to State Redevelopment Law as set forth within Health and Safety Code Section 33331.5; and 28 1 2 3 4 5 6 NOW, THEREFORE, the City Council of the City of Carlsbad, California does ordain as follows: SECTION 1. Amendment of the Redevelopment Plan for the Carlsbad Village Redevelopment Project. In accordance with Health and Safety Code Section 33331.5, and notwithstanding any other provision in the Redevelopment Plan, the City Council hereby amends the Redevelopment Plan as stated herein by adoption of this Ordinance, and establishes the following limitations, subject to 7 8 9 22 23 24 WHEREAS, it is hereby acknowledged by the City Council that the Sacramento County Superior Court has previously ruled that the legislation mandating the ERAF transfer on redevelopment agencies for the 2008-09 fiscal year is unconstitutional and invalidated the required payment to the State, and there is an anticipated additional ruling by a court of competent jurisdiction as a result of anticipated judicial review of Assembly Bill 26 which sets forth an additional requirement for Redevelopment Agencies to make the noted payments in fiscal years 2009-10 and 2010-11; and, all other provisions of this Ordinance: A. In accordance with Health and Safety Code Section 33331.5, the effectiveness of the Redevelopment Plan shall terminate July 21, 2010, after which time the Commission shall have no authority to act pursuant to the Redevelopment Plan, except to pay previously incurred indebtedness, to enforce existing covenants, contracts, unless the Commission has not completed its housing obligations pursuant to subdivision (a) of Health and Safety Code Section 33333.8, including its ability to incur and pay indebtedness for this purpose, and shall use this authority to complete these housing obligations as soon as it is reasonably possible. B. In accordance with Health and Safety Code Section 33333.6(e)(2)(D)(i), and except as provided in subdivisions (g) and (h) of Health and Safety Code Section 33333.6, the Commission shall not pay indebtedness or receive property taxes pursuant to Health and Safety Code Section 33670 after ten (10) years from the Section 2. Application. The limitations established by this Ordinance shall apply to the Carlsbad Village Redevelopment Project and may only be amended in the manner required and to the extent permitted by law. Section 3. Severability of Provisions. If any provisions of this Ordinance or the application thereof is held to be invalid for any reason, the remainder of this 25 Ordinance and the application of provisions thereof shall not be affected thereby. 26 27 28 Section 4. Reservation of Rights. It is the position of the City that the duties of county auditors to deposit funds received from redevelopment agencies in County Educational Revenue Augmentation Funds and SERAF funds are, among other things, inconsistent with the ruling of the Superior Court for Sacramento County, in California Redevelopment Association et al v. Genest et al, Case No. 34-2008- 00028334-CU-WM-GDS ("CRA v. Genest'), and other applicable law, because such payment requirements violate various state and federal constitutional provisions and are therefore unlawful and unenforceable. Neither the adoption of this ordinance, nor the acknowledgment of the requirement of the Agency to pay 6 the SERAF funds, nor the allocation of the SERAF funds shall be deemed to be, 7 nor are they intended as, an acknowledgment of the validity of the SERAF payment requirements of AB 26, and the City reserves any rights it may have to 8 withhold the payment of SERAF funds and/or challenge the validity of such payment requirement in any administrative or judicial proceeding. 9 1 2 3 4 5 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 'I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause it to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a Regular meeting of the Carlsbad City Council on the 6- day of October. 2009, and thereafter. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 20® day of October. 2009 by the following vote to wit: AYES: Council Members Lewis, Kulchin and Blackburn. NOES: None. ABSENT: Council Members Hall and Packard. ABSTAIN: None. APPROVED AS TO FORM AND LEGALITY RONM.D R. BALL, City Attorney if ATTE