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HomeMy WebLinkAbout2011-04-05; City Council; 20508; ADOPTING URGENCY ORDINANCECITY OF CARLSBAD - AGENDA BILL 8 AB# MTG. DEPT. 20.508 4/5/11 CA INTRODUCE AND ADOPT URGENCY ORDINANCE A/O.CS-1^ESTABLISHING THE CITY OF CARLSBAD AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY AND OVERRULING STATE LAW INTERFERING WITH CARLSBAD MUNICIPAL AFFAIRS DEPT. DIRECTOR CITY ATTORNEY CITY MANAGER RECOMMENDED ACTION: Introduce and adopt urgency Ordinance No. cs-137 by a majority vote of the City Council, pursuant to Government Code section 36937 and CS-009 enacting Carlsbad Municipal Code, Title 23, establishing the City as the successor agency to the former Redevelopment Agency of the City of Carlsbad and overruling state law interfering with the municipal affairs of the City of Carlsbad. Introduce Ordinance No. cs-138 enacting Carlsbad Municipal Code, Title 23, establishing the City as the successor agency to the former Redevelopment Agency of the City of Carlsbad and overruling state law interfering with the municipal affairs of the City of Carlsbad. ITEM EXPLANATION: There are two bills pending before the California Legislature that would dissolve redevelopment agencies throughout the State of California. Carlsbad has a Redevelopment Agency which has been in place since approximately 1981. Under the proposed laws, redevelopment agencies would be dissolved and their assets, properties, contracts, leases, records, buildings and equipment would be transferred to a successor agency. The successor agency would be overseen by a seven-member oversight committee of which only one member would be appointed by the Mayor of Carlsbad. The oversight board would then direct the successor agency to, in essence, wind up and dissolve the Redevelopment Agency and dispose of its assets and properties. The proposed legislation would substantially interfere with the municipal affairs of the City of Carlsbad in that it would declare all contracts, agreements or arrangements entered into between the City and the Redevelopment Agency void, regardless of when they were executed. The assets, including real properties and leases, transferred from the Redevelopment Agency to the City on March 8, 2011 by the City Council Resolution No. 2011-021 would not be within control of the City Council, but instead effectively controlled by an oversight board in which the City would be only a minority member. In addition, the assets transferred by the Redevelopment Agency to the City of Carlsbad would be seized and sold to help pay the debts of the State of California. DEPARTMENT CONTACT: Ron Ball 760-434-2891 ron.ball@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D Page 2 Local Government Attorneys as well as the California Redevelopment Association, and the League of California Cities believe that the law itself is unconstitutional in many respects. It violates the contracts clause of the United States Constitution (Article I, section 10) and several clauses of the California State Constitution, Article XVI, section 16 and Article XIII, section 24. Therefore, it is recommended that the City Council adopt this proposed urgency Ordinance for the immediate preservation of the public peace, health or safety by prohibiting the State's intrusion into municipal affairs. FISCAL IMPACT: It is likely that if the proposed bills are adopted and enacted into law there will be numerous legal challenges. The California Redevelopment Association, the League of California Cities and local cities and counties throughout California are likely to initiate litigation against the State for violations of the United States and California State Constitutions as described above. It is premature to speculate on the magnitude of the potential litigation costs at this time. If the legal challenges are overruled and the bills take effect, the City would lose control of, and the benefit from, assets valued at approximately $15 million. ENVIRONMENTAL IMPACT: The introduction and adoption of this ordinance does not constitute "project" within the meaning of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15378 as it does not result in a direct or reasonable foreseeable indirect physical change in the environment. EXHIBITS: 1. Urgency Ordinance No. cs-137 2. Ordinance No. cs-138 1 ORDINANCE NO. CS-137 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA ESTABLISHING THE CITY OF CARLSBAD AS THE SUCCESSOR AGENCY TO 4 THE FORMER REDEVELOPMENT AGENCY AND OVERRULING STATE LAW WHICH WOULD INTERFERE 2 3 5 6 7 declared their independence from state laws interfering with the conduct of their 8 municipal affairs; and 9 WHEREAS, the preamble to the Charter of the City of Carlsbad sets10 11 12 13 14 20 21 27 28 (• ;^ WITH THOSE MUNICIPAL AFFAIRS WHEREAS, at the election of June 3, 2008, the citizens of Carlsbad forth the intent of the citizens in adopting a charter as follows: "We the people of the City of Carlsbad, declare our intent to maintain in our community the historic principles of self-governance inherent in the doctrine of home-rule. We the people of Carlsbad, are sincerely committed to the belief that local government has the closest affinity to the people governed and firmly convinced that the economic and fiscal independence of our local government will better serve and promote the health, safety and welfare of all the citizens of Carlsbad. Based on these principles, we do hereby exercise the express right granted by the Constitution of the State of California and do ordain and establish this Charter for the City of 16 17 M Carlsbad." 18 WHEREAS, section 100 of the Charter specifies the powers of the Cityi y to adopt, make, exercise and enforce all legislation, laws and regulations with respect to municipal affairs subject only to the limitations and restrictions as may be provided in this Charter, in the Constitution of the State of California and in the laws of the 23 22 United States; and 24 ' WHEREAS, section 400 of the Charter provides that subject to the 25 expenditure limitations established by the citizens of Carlsbad in 1982, the City shall 26 have the power to utilize revenues from the General Fund to encourage, support and promote economic and community development in the City; and 1 City Council to establish standards, procedures, rules and regulations regarding all 3 2 aspects of the award and performance of contracts; and 4 WHEREAS, section 500 prohibits the reductions in revenue due to or 5 raised by the City and requires that it will remain within the boundaries of the City of6 7 8 9 10 11 12 13 14 15 16 22 23 24 27 28 WHEREAS, section 404 of the Charter provides plenary power to the Carlsbad for appropriation solely by the City Council. That section further provides that no such revenue shall be subject to subtraction, retention attachment, withdrawal or any other form of involuntary reduction by any other level of government; and WHEREAS, section 600 provides that in the event of any conflict between the provisions of this Charter and the provisions of the general laws of the State of California, the provisions of this Charter shall control; and WHEREAS, the City Council has exercised its sovereign powers and immunities in the course and control of municipal affairs since the adoption of the City Charter in the following ways: 1. Adopted an ordinance reinstituting the majority of the quorum (CS-001) 18 17 2. Adopted a prevailing wage ordinance (CS-047). 19 3. Adopted design build law ordinance (CS-046). 20 4. Amended the purchasing ordinance to streamline contracting and purchasing (CS-002). 5. Adopted an ordinance setting forth qualifications to run for City Treasurer and City Clerk CS-080 and 042). 25 (CS-023). 6. Adopted an ordinance setting eligibility requirements for holding office 26 1 findings by the Planning Commission (CS-071). 3 III U WHEREAS, the Redevelopment Agency of the City of Carlsbad has, 4 by contract, transferred its assets, including its real properties, to the City of Carlsbad 5 for the performance of redevelopment and housing activities and the furtherance of6 7 8 9 Carlsbad including Assembly Bill 101 and Senate Bill 77; and 11 WHEREAS, certain provisions of these bills violate the State of 12 California and United States Constitutions including California Constitution Article 11, 13 section 5 which provides that a charter city may make and enforce all ordinances14 15 16 17 22 23 24 7. Amended the municipal code to eliminate General Plan conformance its municipal affairs as determined by the City Council; and WHEREAS, there are pending before the California Legislature several bills which would make major intrusions into the municipal affairs of the City of and regulations in respect to municipal affairs and that the powers granted under this provision shall supersede all inconsistent general laws with respect to municipal affairs; and 18 WHEREAS, these bills pending before the California Legislature would 19 interfere with municipal affairs of the City of Carlsbad in that they would purport to 20 void existing contracts, place other levels of government or entities in charge of 21 municipal affairs, would require the disposition of local assets, including real properties, intended for use in carrying out municipal affairs and reduce or eliminate revenue needed for the carrying out of municipal affairs including the housing and redevelopment functions for the betterment of the citizens of Carlsbad. 26 25 ieueveiu|jiiie WHEREAS, this urgency Ordinance is adopted pursuant to 27 Government Code section 36937 and CS-009 by a majority vote of the City Council. 28 1 2 3 SECTION I: That the above recitations are true and 4 correct. 5 SECTION II: The City of Carlsbad is hereby named as6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 I" 23 24 25 26 /// 27 28 NOW, THEREFORE, the City Council of the City of Carlsbad ordains as follows: the successor agency to the former Redevelopment Agency of the City of Carlsbad. SECTION III: Title 23 of the Carlsbad Municipal Code is enacted to read as follows: Chapter 23.01 - City Council Redevelopment Authority A. Proposed state laws in the form of AB 101 or SB 77 or any substantially similar legislation purporting to interfere with the municipal affairs of the City of Carlsbad including any which void local contracts for the performance of municipal affairs for health and safety, redevelopment, and housing purposes shall not operate and are ineffective within the municipal boundaries of the City of Carlsbad. B. The City Council of the City of Carlsbad shall use the assets, properties, leases, contracts, and other resources of the former redevelopment agency for the health and safety, housing and other necessary and appropriate policies and programs, as determined by the City Council to increase standards and qualities of the public good for the citizens of Carlsbad and to assist in carrying out the municipal affairs of the City of the Carlsbad without interference or intrusion of the State. 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 DECLARATION OF EMERGENCY: This ordinance is hereby declared to be an emergency ordinance adopted as an urgency measure for the preservation of the public peace, health, safety and welfare and shall take effect immediately upon its adoption. The facts constituting the emergency are set forth above and represent a current and immediate threat to the public peace, health, safety and welfare. EFFECTIVE DATE: This urgency ordinance shall be effective immediately upon the adoption of Assembly Bill 101, Senate Bill 77 or similar legislation that interferes with the municipal affairs of the City of Carlsbad and shall be of no further force after the adoption of ordinance number CS-138. INTRODUCED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council on the 5th day of April 2011, by the following vote, to wit: AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard. NOES: None. ABSENT: None. APPROVED AS TO FORM AND LEGALITY: RONALD R. BALL, City Attorney MATT HALL, Mayor ATTEST: . WOOD, City Clerk -S. ••TltXZi-- -OK,*X ORDINANCE NO. CS-138 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING THE CITY OF 3 CARLSBAD AS THE SUCCESSOR AGENCY TO THE 4 FORMER REDEVELOPMENT AGENCY AND OVERRULING STATE LAW WHICH WOULD INTERFERE WITH THOSE 5 6 7 declared their independence from state laws interfering with the conduct of their 8 municipal affairs; and 9 WHEREAS, the preamble to the Charter of the City of Carlsbad sets10 „ „ forth the intent of the citizens in adopting a charter as follows:11 12 13 14 19 20 21 22 26 27 28 MUNICIPAL AFFAIRS WHEREAS, at the election of June 3, 2008, the citizens of Carlsbad "We the people of the City of Carlsbad, declare our intent to maintain in our community the historic principles of self-governance inherent in the doctrine of home-rule. We the people of Carlsbad, are sincerely committed to the belief that local government has the closest affinity to the people governed and firmly convinced that the economic and fiscal independence of our local government will better serve and promote the health, safety and welfare of all the citizens of Carlsbad. Based on these principles, we do hereby exercise the express right granted by the Constitution of the State of California and do ordain and establish this Charter for the City of 16 17 n Carlsbad." 18 WHEREAS, section 100 of the Charter specifies the powers of the City to adopt, make, exercise and enforce all legislation, laws and regulations with respect to municipal affairs subject only to the limitations and restrictions as may be provided in this Charter, in the Constitution of the State of California and in the laws of the 23 United States; and 24 WHEREAS, section 400 of the Charter provides that subject to the 25 expenditure limitations established by the citizens of Carlsbad in 1982, the City shall have the power to utilize revenues from the General Fund to encourage, support and promote economic and community development in the City; and "x. 1 City Council to establish standards, procedures, rules and regulations regarding all 3 2 aspects of the award and performance of contracts; and 4 WHEREAS, section 500 prohibits the reductions in revenue due to or 5 raised by the City and requires that it will remain within the boundaries of the City of 6 7 8 9 10 WHEREAS, section 600 provides that in the event of any conflict 11 between the provisions of this Charter and the provisions of the general laws of the 12 State of California, the provisions of this Charter shall control; and 13 WHEREAS, the City Council has exercised its sovereign powers and14 15 16 17 21 22 23 24 27 28 WHEREAS, section 404 of the Charter provides plenary power to the Carlsbad for appropriation solely by the City Council. That section further provides that no such revenue shall be subject to subtraction, retention attachment, withdrawal or any other form of involuntary reduction by any other level of government; and immunities in the course and control of municipal affairs since the adoption of the City Charter in the following ways: 1. Adopted an ordinance reinstituting the majority of the quorum (CS-001) 18 2. Adopted a prevailing wage ordinance (CS-047). 19 3. Adopted design build law ordinance (CS-046). 20 4. Amended the purchasing ordinance to streamline contracting and purchasing (CS-002). 5. Adopted an ordinance setting forth qualifications to run for City Treasurer and City Clerk CS-080 and 042). 25 (CS-023). 6. Adopted an ordinance setting eligibility requirements for holding office 26 1 findings by the Planning Commission (CS-071). 3 in u WHEREAS, the Redevelopment Agency of the City of Carlsbad has, 4 by contract, transferred its assets, including its real properties, to the City of Carlsbad 5 for the performance redevelopment and housing activities and the furtherance of its6 7 8 9 10 section 5 which provides that a charter city may make and enforce all ordinance and 11 regulations in respect to municipal affairs and that the powers granted under this 12 provision shall supersede all inconsistent general laws with respect to municipal 13 affairs; and14 15 16 22 23 24 7. Amended the municipal code to eliminate General Plan conformance municipal affairs as determined by the City Council; and WHEREAS, certain provisions of these bills violate the State of California and United States Constitutions including California Constitution Article 11, WHEREAS, there are pending before the California Legislature several bills which would make major intrusions into the municipal affairs of the City of Carlsbad including Assembly Bill 101 and Senate Bill 77; and 18 v_»ai loucjvj ii ivsi WHEREAS, these proposed laws would interfere with municipal affairs 19 of the City of Carlsbad in that they would purport to void existing contracts, place 20 other levels of government or entities in charge of municipal affairs, would require the disposition of local assets, including real properties, intended for use in carrying out municipal affairs and reduce or eliminate revenue needed for the carrying out of municipal affairs including the housing and redevelopment functions for the 25 betterment of the citizens of Carlsbad. 26 /// 27 28 1 2 3 SECTION I: That the above recitations are true and correct. 4 SECTION II: The City of Carlsbad is hereby named as the successor 5 agency to the former Redevelopment Agency of the City of Carlsbad.6 7 8 9 10 A. Proposed state laws in the form of AB 101 or SB 77 or any 11 12 13 Carlsbad.14 15 16 17 18 19 20 III21 22 23 24 25 26 27 28 NOW, THEREFORE, the City Council of the City of Carlsbad ordains as follows: SECTION III: Title 23 of the Carlsbad Municipal Code is enacted to ead as follows: /// Chapter 23.01 - City Council Redevelopment Authority substantially similar legislation purporting to interfere with the municipal affairs of the City of Carlsbad including any which void local contracts for the performance of municipal affairs for health and safety, redevelopment and housing purposes shall not operate and are ineffective within the municipal boundaries of the City of B. The City Council of the City of Carlsbad shall use the assets, properties, leases, contracts, and other resources of the former redevelopment agency for the health and safety, housing and other necessary and appropriate, policies and programs, as determined by the City Council to increase standards and qualities of the public good for the citizens of Carlsbad and to assist in carrying out the municipal affairs of the City of the Carlsbad without interference or intrusion of the State. 1 its adoption; and the City Clerk shall certify the adoption of this ordinance and cause 3 2 it to be published at least once in a newspaper of general circulation in the City of 4 Carlsbad within fifteen days after its adoption. 5 OPERATIVE DATE: This Title shall become operative only in the event of the adoption of Assembly Bill 101, Senate Bill 77 or similar legislation that 8 g 10 Carlsbad City Council on the 5OT day of April 2011, and thereafter. PASSED AND ADOPTED at a regular meeting of the City Council of 12 the City of Carlsbad on the day of , 2011, by the following 13 vote, to wit: EFFECTIVE DATE: This ordinance shall be effective thirty days after interferes with the municipal affairs of the City of Carlsbad. INTRODUCED AND FIRST READ at a regular meeting of the AYES: NOES: ABSENT: APPROVED AS TO FORM AND LEGALITY: RONALD R. BALL, City Attorney 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (Seal) 28 " MATT HALL, Mayor ATTEST: LORRAINE M. WOOD, City Clerk