HomeMy WebLinkAboutCity Council Position on legislation pending as recommended Council/Agency Meeting Held:
Deferred/Continued to:
App ved ❑ Conditionally Approved ❑ Denied �'.�City rFs Ignatur
Council Meeting Date: 04/06/2009 Department ID Number: AD 09-007
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jill Hardy, Council Member, Chair on behalf of Intergovernmental Relations
Committee Members Mayor Keith Bohr, and Councilman Don Hansen
PREPARED BY: Patricia Dapkus, Department Analyst, Senio
SUBJECT: APPROVAL OF A CITY COUNCIL POSITION ON LEGISLATION, A
REGULATION OR BUDGET ISSUES PENDING BEFORE A FEDERAL,
STATE, OR REGIONAL GOVERNMENT AS RECOMMENDED BY THE
CITY COUNCIL INTERGOVERNMENTAL RELATIONS COMMITTEE (IRC)
Statement of Issue, Funding Source, Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: Approval of a City Council position on legislation, a regulation, or budget
issues pending before a federal, state, or regional government as recommended by the City Council
Intergovernmental Relations Committee (IRC).
Funding Source: N/A
Recommended Action: Motion to:
1. SUPPORT AB 46 (Blakeslee) Energy Conservation Assistance —Authorizes the California
Energy Commission (CEC) to deposit funds received pursuant to the federal American
Recovery and Reinvestment Act of 2009 (ARRA) into two energy program assistance accounts,
and extends the sunset date for the two state accounts to 2020
2. OPPOSE AB 109 (Feuer) Outdoor Advertising — Digital Advertising Displays — Prohibits, until
January 1, 2012, certain outdoor advertising and message displays from being constructed as,
or converted to, a digital advertising display, as defined
3. OPPOSE AB 1 (Mendoza) Municipal Bankruptcy— Requires approval by a committee made
up of the State Controller, State Treasurer, and State Finance Director before a city could file for
bankruptcy
4. OPPOSE SB 93 (Kehoe) Redevelopment: payment for land or buildings— Restricts the
spending of redevelopment dollars on public facilities acquired, constructed, or improved inside
and outside of project areas using funds intended to eliminate blighted conditions
Alternative Action(s):
Do not take the recommended action on one or all of the above and provide direction to staff on a
possible city position.
REQUEST FOR COUNCIL ACTION
MEETING DATE: 04/06/2009 DEPARTMENT ID NUMBER: AD 09-007
Analysis:
1. SUPPORT AB 46 (Blakeslee) Energy Conservation Assistance —Authorizes the California
Energy Commission (CEC) to deposit funds received pursuant to the federal American
Recovery and Reinvestment Act of 2009 (ARRA) into two energy program assistance
accounts, and extends the sunset date for the two state accounts to 2020.
On February 17, 2009, the President signed HR 1, the America Recovery & Reinvestment Act
(ARRA), a $787 billion stimulus package. The California Energy Commission (CEC) expects
California to receive about $239 million for energy efficiency and renewable energy programs.
The ARRA includes programs for which the state is eligible to apply. Two significant programs include
competitive grants to implement an Energy Efficient Appliance Rebate program, and an Energy
Efficiency and Renewable Energy Worker Training Program. Should the state be granted funds from
the ARRA for these programs, federal guidelines encourage the use of a long-term funding
mechanisms such as revolving loans and energy savings performance contracting to administer these
funds.
AB 46 would authorize the California Energy Commission to deposit funds from the ARRA into two
energy assistance accounts, the Energy Conservation Assistance Account (ECAA) and the Local
Jurisdiction Energy Assistance (LJEA) Account. It would also extend the sunset date for these two
state accounts to January 1, 2020.
The ECAA is continuously appropriated without regard to fiscal year, and the LJEA funds are
disbursed by the Controller as authorized by the CEC. As such, the expenditures are consistent with
federal guidelines, and the department has wide latitude to determine which programs and projects it
chooses to fund.
The Intergovernmental Relations Committee is recommending that the City Council support AB 46 in
its present form.
2. OPPOSE AB 109 (Feuer) Outdoor Advertising — Digital Advertising Displays — Prohibits, until
January 1, 2012, certain outdoor advertising and message displays from being constructed
as, or converted to, a digital advertising display, as defined.
This bill would impose a moratorium until January 1, 2012 on digital advertising and message displays
that are visible from a state, county, or city highway, from being constructed, converted, enhanced,
improved, modified, modernized, or altered into a digital advertising display.
At a time when businesses in California are struggling and unemployment is over 10%, this bill is
unwarranted and counterproductive. Local communities already have the ability to adequately
regulate digital billboards. This bill would impose a complete ban on new digital billboards, and in so
doing hurt California businesses large and small by limiting their options for promoting their products.
Further, it would eliminate crucially needed jobs not only for those workers who construct, convert, and
maintain the billboards but also for the people who work for those businesses that depend on this
advertising.
The Intergovernmental Relations Committee is recommending that the City Council oppose AB 109 in
its current form.
-2- 3/24/2009 9:38 AM
REQUEST FOR COUNCIL ACTION
MEETING DATE: 04/06/2009 DEPARTMENT ID NUMBER: AD 09-007
3. OPPOSE AB 155 (Mendoza) Municipal Bankruptcy- Requires approval by a committee
made up of the State Controller, State Treasurer, and State Finance Director before a city
could file for bankruptcy.
Under existing law, any taxing agency or instrumentality of the state may file a petition and prosecute
to completion bankruptcy proceedings permitted under the laws of the United States. This bill would
provide that a local public entity may only file under federal bankruptcy law with the approval of the
Local Agency Bankruptcy Committee that would consist of the State Controller, Treasurer, and
Director of Finance. According to the information sheet prepared by the author's staff, this bill is
needed to protect against a weakening of the state's credit that might potentially occur if a city were to
declare bankruptcy.
The record shows that cities will use all means available to them to avoid bankruptcy. Since adoption
of Chapter 9 of the state Bankruptcy Code in 1949 —60 years ago - only two cities have petitioned
for its use: the City of Desert Hot Springs in 1994, and last year the City of Vallejo. Municipal
bankruptcy is not an attractive alternative for local communities, nor is it an easy process. In fact, it is
one of the last options that a local agency would choose because it is difficult, and certainly not
popular with local voters-the ultimate decision-makers at the local level.
AB 155 would do nothing to address the factors affecting the state's credit rating. Instead, it will insert
state elected officials into what is fundamentally a local decision-making process, and substitute the
judgment of those state officials for that of the local officials who are elected by a community to
manage a city's affairs.
The Intergovernmental Relations Committee is recommending the City Council oppose AB 155 in its
present form.
4. OPPOSE SB 93 (Kehoe) Redevelopment: payment for land or buildings- Restricts the
spending of redevelopment dollars on public facilities acquired, constructed, or improved
inside and outside of project areas using funds intended to eliminate blighted conditions
Existing law imposes stringent requirements on the expenditure of tax increment. SB 93 would
impose new, expensive and time-consuming additional mandates on all redevelopment project area
spending on public facilities both inside and outside project areas.
The author is attempting to place further scrutiny on agency spending for unnecessary public facilities
outside of project areas. Unfortunately, SB 93 also places constraints upon public improvement-
spending within project areas. If approved SB 93 would seriously impede efforts to eliminate the blight
which redevelopment is specifically intended to address. By limiting the power of a redevelopment
agency, most especially in these uncertain economic times, SB 93 could actually increase blighted
conditions and make it more difficult to achieve community goals.
SB 93 would require agencies to make new findings of blight in the project area while at the same time
eliminating the power of such findings to be final and conclusive under agency authority. As a result,
blight findings could become subject to unnecessary litigation, thereby creating project delays and
costly legal battles. Instead of using funds to eliminate blight, agencies would be spending
redevelopment funds on proving evidence that blight exists. Because of this, SB 93 would undermine
a redevelopment agency's authority and delay or even eliminate altogether the possibility of
implementing many important public projects.
The Intergovernmental Relations Committee is recommending the City Council oppose SB 93 in its
current form.
-3- 3/24/2009 9:38 AM
REQUEST FOR COUNCIL ACTION
MEETING DATE: 04/06/2009 DEPARTMENT ID NUMBER: AD 09-007
Strategic Goal:
Action on this legislation meets the strategic goal under City Services of providing quality public
services with the highest professional standards to meet community expectations and needs, assuring
that the city is sufficiently staffed and equipped overall.
Environmental Status: NA
Attachment(s):
bbstflotiOn
1. AB 46 Blakeslee Energy Conservation Assistance
2. AB 109 (Feuer) Outdoor Advertising — Digital Advertising Dis la s
3. AB 155 Mendoza Municipal Bankru tc
4. Orange County Division Letter Opposing AB 155
5. SB 93 (Kehoe) Redevelo ment: payment for land or buildin s
-4- 3/24/2009 9:38 AM
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AB 46 Assembly Bill - AMENDED Page 1 of 2
BILL NUMBER: AB 46 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY FEBRUARY 19, 2009
INTRODUCED BY Assembly Member Blakeslee
DECEMBER 1, 2008
An act to amend Beet-__ 25i2± of Sections
25421 and 25449. 4 of, and to add Section 25227 to, the Public
Resources Code, relating to energy, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 46, as amended, Blakeslee. Energy: energy conservation
assistance.
(1) Existing law requires the
State Energy Resources Conservation and Development Commission to
administer the State Energy Conservation Assistance Account, a
continuously appropriated account, in the General Fund, until January
1, 2011, to provide grants and loans to local governments and public
institutions to maximize energy use savings. All loans outstanding
as of that date are required to continue to be repaid as specified
until paid in full, and all unexpended funds in the account on and
after that date, except as specified, are required to revert to the
General Fund.
This bill would extend the operation of those provisions to
January 1, —2e±5 2020 , and would
thereby make an appropriation by extending the time during which the
funds in a continuously appropriated account are made available.
(2) Existing law establishes, until January 1, 2011, a financial
assistance program that provides loans to local jurisdictions for
energy projects, including to purchase, maintain, and evaluate energy
efficient equipment for existing or new facilities. Existing law
establishes, until January 1, 2020, the Local Jurisdiction Energy
Assistance Account in the General Fund for the purposes of the
program and requires the funds to be disbursed by the Controller as
authorized by the commission.
This bill would extend the financial assistance program and the
Local Jurisdiction Energy Assistance Account to January 1, 2020.
(3) This bill would authorize the commission to receive and
deposit funds from the federal government pursuant to the federal
American Recovery and Reinvestment Act of 2009 into the State Energy
Conservation Assistance Account and the Local Jurisdiction Energy
Assistance Account for expenditure as authorized by federal law, and
would thereby make an appropriation by authorizing the depositing of
moneys into a continuously appropriated account.
Vote: 2/3 . Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
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AB 46 Assembly Bill - AMENDED Page 2 of 2
SECTION 1. Section 25227 is added to the
Public Resources Code , to read:
25227. The commission may receive and deposit funds from the
federal government pursuant to the federal American Recovery and
Reinvestment Act of 2009 into the State Energy Conservation
Assistance Account established pursuant to subdivision (a) of Section
25416 and the Local Jurisdiction Energy Assistance Account
established pursuant to subdivision (a) of Section 25449.3 for
expenditure as authorized by federal law.
—sEe,pim6i3 -i— SEC. 2. Section 25421 of
the Public Resources Code is amended to read:
25421. (a) Except as provided in subdivision (b) , this chapter
shall remain in effect only until January 1, -26±5
2020 , and as of that date is repealed, unless a later
enacted statute, which is enacted before January 1, —265
2020 , deletes or extends that date.
(b) All loans outstanding as of January 1, 28±5
2020 , shall continue to be repaid on a semiannual basis,
as specified in Section 25415, until paid in full. All unexpended
funds in the State Energy Conservation Assistance Account on January
i, -2e±5 2020 , and thereafter, except
to the extent those funds are encumbered pursuant to Section 25417.5,
shall revert to the General Fund.
SEC. 3. Section 25449.4 of the Public
Resources Code is amended to read:
25449.4 . (a) Except as provided in subdivision (b) , this chapter
shall remain in effect until January 1, 28±'r
2020 , and as of that date is repealed, unless a later enacted
statute which is enacted before January 1, ee±lm
2020 , deletes or extends that date.
(b) All loans outstanding as of January 1, -fir
2020 , shall continue to be repaid in accordance with a
schedule established by the commission pursuant to Section 25442 .7,
until paid in full. All unexpended funds in the Local Jurisdiction
Energy Assistance Account on January 1, 2e±±
2020 , and thereafter, except to the extent that those funds
are encumbered pursuant to Section 25443 .5, shall be deposited in the
Federal Trust Fund and be available for the purposes for which
federal oil overcharge funds are available pursuant to court judgment
or federal agency order.
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AB 109 Assembly Bill - INTRODUCED Page 1 of')
BILL NUMBER: AB 109 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Feuer
JANUARY 13, 2009
An act to add and repeal Section 5420 of the Business and
Professions Code, relating to outdoor advertising.
LEGISLATIVE COUNSEL'S DIGEST
AB 109, as introduced, Feuer. Outdoor advertising: digital
advertising displays .
Existing law, the Outdoor Advertising Act, provides for the
regulation by the Department of Transportation of advertising
displays, as defined, within view of public highways, as specified.
This bill, until January 1, 2012, would prohibit an advertising
display that is visible from a state, county, or city highway, as
specified, from being constructed as, or converted, enhanced,
improved, modified, modernized, or altered into, a digital
advertising display, as defined. The bill, until January 1, 2012,
would also prohibit an official highway changeable message sign, as
defined, from being constructed as, or converted, enhanced, improved,
modified, modernized or altered into, a digital advertising display
for the purpose of displaying commercial messages in addition to
official traffic operations or public safety messages. The bill would
provide for civil penalties for a violation of these provisions and
provide other remedies for enforcement. The bill would also state the
intent of the Legislature.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Numerous municipalities and states have raised safety concerns
regarding the construction and conversion of advertising displays
along and on state, county, and city highways into digital
advertising displays.
(b) The key issues of concern are potential distraction to
motorists due to brightness, rapid changes in the signs, and
proximity to complex driving environments and areas of high traffic
congestion; diversion of attention from official highway signs; and
spacing, among other factors.
(c) The Federal Highway Administration is expected to release, in
early 2009, Phase 1 of a study indicating a need for more research on
the safety impacts of commercial electronic variable message signs,
referred to in this act as digital advertising displays.
(d) In early 2009, the American Association of State Highway and
Transportation Officials is expected to release a critical review of
studies in 50 countries around the world over the last 10 years on
safety impacts of digital advertising displays.
(e) In 2010, the Federal Highway Administration is expected to
release Phase 2 of the study referred to in subdivision (c) ,
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AB 109 Assembly Bill - INTRODUCED Page 2 of 3
consisting of field work and conclusions concerning safety impacts of
digital advertising displays.
(f) It is the intent of the Legislature to protect the public
safety by prohibiting, until January 1, 2012, the construction of new
digital advertising displays, or the conversion, enhancement,
improvement, modification, modernization, or alteration, other than
routine maintenance, of existing advertising displays into digital
advertising displays, that are visible from a state, county, or city
highway, in order to provide the Legislature adequate time to analyze
the safety studies described in this section, hold public hearings
throughout the state on the findings of those studies, and revise
state law as appropriate.
SEC. 2 . Section 5420 is added to the Business and Professions
Code, to read:
5420 . (a) (1) No advertising display subject to this chapter, or
any other advertising display that is visible from a highway, as
defined in Section 5213, that is under state, county, or city
jurisdiction, other than an advertising display described in Section
5272, shall be constructed as, or converted, enhanced, improved,
modified, modernized, or altered into, a digital advertising display.
(2) No official highway changeable message sign shall be
constructed as, or enhanced, upgraded, improved, modified,
modernized, or altered into, a digital advertising display for the
purpose of displaying commercial messages in addition to official
traffic operations or public safety messages.
(b) (1) For purposes of this section, "digital advertising display"
means an advertising display of still, scrolling, or moving images,
including video and animation, that may be changed remotely through
electronic means and utilizes a series of grid lights, including
cathode ray, light-emitting diode display (LED) , plasma screen,
liquid crystal display (LCD) , fiber optic, or other electronic media
or technology. "Digital advertising display" includes a message
center, as defined in Section 5216.4.
(2) For purposes of this section, "official highway changeable
message sign" means a traffic control device owned and operated by or
on behalf of the department or a local or regional transportation
agency designed to provide the public with traffic operations and
public safety information.
(c) A civil penalty of three thousand five hundred dollars
($3, 500) shall apply for each day that an advertising display or
official highway changeable message sign is in violation of this
section. Furthermore, the owner of a display or sign in violation of
this section shall be required to disgorge profits gained over the
period during which the display or sign is in violation. The civil
penalty shall be assessed and recovered in an action brought by the
Attorney General or by any district attorney, county counsel, or city
attorney, who is also authorized to seek an injunction against
further violation of this section.
(d) Enactment of this section constitutes the exercise of the
state' s police power to protect the public health and safety.
(e) Notwithstanding Section 5227 or any other provision of law, it
is the intent of the Legislature to occupy the whole field of
regulation with regard to the subject matter of this section.
Accordingly, this section constitutes a matter of statewide concern
and shall apply to and within the territory of charter cities and
charter counties.
(f) It is the intent of the Legislature to supersede any
ordinances, agreements, or stipulated judgments by and between local
and regional agencies and public or private persons or entities that
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AB 109 Assembly Bill - INTRODUCED Page 3 of 3
are in conflict with this section, except that nothing in this
section is intended to preclude ordinances or regulations by local
jurisdictions that impose restrictions on digital advertising
displays greater than those imposed by this section.
(g) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
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AB 155 Assembly Bill - INTRODUCED Page 1 of 1
BILL NUMBER: AB 155 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Mendoza
(Principal coauthor: Assembly Member Torrico)
(Coauthors: Assembly Members Brownley, Coto, De Leon, Fuentes,
Furutani, Ma, Nava, John A. Perez, V. Manuel Perez, and Yamada)
(Coauthor: Senator Wiggins)
JANUARY 26, 2009
An act to amend Section 53760 of the Government Code, relating to
local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 155, as introduced, Mendoza. Local government: bankruptcy
proceedings.
Under existing law, any taxing agency or instrumentality of the
state may file a petition and prosecute to completion bankruptcy
proceedings permitted under the laws of the United States.
This bill would provide that a local public entity may only file
under federal bankruptcy law with the approval of the Local Agency
Bankruptcy Committee that would consist of the Controller, the
Treasurer, and the Director of Finance, as specified.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53760 of the Government Code is amended to
read:
53760 . (a) Except as otherwise provided by statute, a local
public entity in this state may , with the approval of the Local
Agency Bankruptcy Committee, under the terms and conditions that the
committee may impose, file a petition and exercise powers
pursuant to applicable federal bankruptcy law.
(b) As used in this section, "local public entity" means any
county, city, district, public authority, public agency, or other
entity, without limitation, that is a "municipality, " as defined in
paragraph (40) of Section 101 of Title 11 of the United States Code
(bankruptcy) , or that qualifies as a debtor under any other federal
bankruptcy law applicable to local public entities.
(c) The Local Agency Bankruptcy Committee is comprised of the
Controller, the Director of Finance, and the Treasurer.
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LEAGUE OF ORANGE COUNTY DIVISION
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March 10, 2009
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huFNA PARK The Honorable Tony Mendoza
•,If SA Member of the Assembly, 56"District
CYPRPSS State Capitol,Room 2188
)ArA POIT Sacramento, CA 95814
101 N I MN V,ALI_,Ir:Y Fax: 916-319-2 156
c ARI1.N ICE• AB 155(Mendoza)Municipal Bankruptcy.
rR;N"FI NG ION !�I_ACII NOTICE OF OPPOSITION
fRVI'~,
1,A I!,,,II R A Dear Assembly Member Mendoza:
LA RM-NIA
LAG!I"NA B"EACII I am writing on behalf of the Orange County Division, League of California Cities to
LACUNA HILLS inform. you that we strongly oppose AB 155, which would create a Local Agency
"`�"'"` Nr�'�''L Bankruptcy Committee to approve municipal bankruptcy filings in California.
�;A�,:�;<}ass
LAM,t ORIEST
?0S A1,AJV11 r0S The Orange County Division, League of California Cities strongly objects to this
�IINS,ON ViE1 legislation for the following reasons:
rtEWPOR't BLAr H
ORANGE Most Cities Produce On-Time Balanced Budgets — In Good Times and Bad.
LA rvI I,, Even as cities are seeing dramatic declines in local property and sales taxes as a result
k-,'rNCI Ie sal y of the current economic crisis, we are making the difficult decisions necessary to
SAN Cr_E IFNTE produce a balanced budget, even when that means cutting substantially into core
sAF RW C-'WIST RANC'7 services, furloughing or laying off workers, or some combination of both.
S A'S1 A A N A
ss At,BLACH Municipal bankruptcy is rarely used. The record shows that cities will use all
S'f AN 3 c>IV means available to avoid bankruptcy. Since adoption of Chapter 9 of the state
Bankruptcy Code in 1949 — 60 years ago — only two cities have petitioned for its
V11-LA PACK use: the City of Desert Hot Springs in 1994, and last year the City of
�YEnSTMI1 SITIR Vallejo. Municipal bankruptcy is not an attractive alternative for cities, nor is it an
LI N DA easy process.
AB 155 is a questionable solution in search of a problem.According to the
information sheet your office prepared on this bill, you believe AB 155 is needed to
protect a further weakening of the state's credit that might potentially occur if a city
were to declare bankruptcy. The Orange County Division, League of California
Cities finds this argument unfounded. The state today has one of the worst credit
ratings in the nation—not the result of a city action, but due to a lack of confidence
among major bonding and financial institutions.
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U26:'p1C'f"?;°Ct,RGE kBYRES�.RTA'Pf-rSc 1ST DIS T RIC! v',rcz_r Su.vita rr,.C or,nt�1 A1ernhC itu�dn� zND Ut>Ti2!CF lark h:.d .,_.wi
IRD D:STRIC1 lan cs;ttr s,'-viwr,V-Wa1ark.3TH DI`-TRICT Pau K:Il . 4;—Ln Tcrl, 7TH DI-STRICT-Rohr., -ig.: a- _ :pl?:
Cirl',1AN ,CKR RT?RESE\-',V,L H,mci _Ivan,Ca, h _a!,N�,p,,1 B ac.i,DXECUTIVr DIKLC'i i2 Lac,K,11v
The Honorable Tony Mendoza
Member of the Assembly, 56 Ih District
March 10, 2009
Page 2
If the state is concerned about agencies petitioning for bankruptcy, the most
important assistance it can provide is to fix its own budget problems quickly,
and do so without borrowing, shifting, or taking local revenues. Since 1986 the
state budget has been late 22 times — in good economic times and bad. Local
agencies working to solve their own budget problems are greatly affected by the
uncertainty of whether a state budget will take, borrow or shift funds from local
sources.
Orange County Cities sympathize greatly with the challenges that the Legislature
faces in trying to put together a budget that can win the required two-thirds vote to
pass and respects and appreciate the efforts put forward this year to pass a budget that
did not rely substantially on borrowing or shifting local funds. But we all know that
the state faces continuing uncertainty over whether the various pieces that comprise
the state budget will hold together sufficiently to temporarily address the ongoing
state deficit. This uncertainty hurts local agencies,as it does the state itself.
AB 155 will do nothing to address the factors affecting the state's credit rating.
Rather, it will insert state elected officials into what is fundamentally a local
decision-making process, and substitute the judgment of those state officials for that
of the local officials who are elected by a community to manage their city's affairs.
Given these reasons, the Orange County Division, League of California Cities
strongly opposes AB 155.
Sincerely,
L.Allan Son.Rs�tad,AJr. -1
President
Orange County Division
League of California Cities
cc: Assembly Local Government Committee,Fax:916-319-3959
Natasha Karl,Legislative Analyst,League of California Cities,Fax:916-658-8240
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SB 93 Senate Bill - AMENDED Page 1 of 3
BILL NUMBER: SB 93 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 10, 2009
INTRODUCED BY Senator Kehoe
JANUARY 22, 2009
An act to amend Section 33445 of the Health and Safety Code,
relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
SB 93, as amended, Kehoe. Redevelopment: payment for land or
buildings.
The Community Redevelopment Law requires a redevelopment agency to
make specified findings if the agency pays all or a part of the
value of the land for and the cost of the installation
and construction of any building, facility, structure,
or other improvement that is publicly owned either within or without
the project area. These determinations by the agency and the local
legislative body are final and conclusive. An agency is authorized to
enter into a contract with the community or other public corporation
when the value of the land or the cost of the installation and
construction of the building, facility, structure, or other
improvement, or both, has been, or will be, paid or provided for
initially by the community or other public corporation, and the
agency agrees to reimburse, the community or other public
corporation. An agency may contract with the community when the land
has been or will be acquired by, or the cost of the installation and
construction of the building, facility, structure, or other
improvement has been paid by, a parking authority, joint powers
entity, or other public corporation to provide a building, facility,
structure, or other improvement that has been or will be leased to
the community.
This bill would require a redevelopment agency to make specified
findings, based on substantial evidence in the record, if the agency
pays all or a part of the value of the land for and the
cost of the installation and construction of any
building, facility, structure, or other improvement that is publicly
owned either within or without the project area. These findings would
not be final and conclusive. An agency would no longer be authorized
to enter into a contract with a public corporation other than the
community for the value of the land or the cost of the installation
and construction of the building, facility, structure, or other
improvement, or both. The bill would provide that an agency may
contract with the community prior to January 1, —26E9
2010 , when the land has been or will be
acquired by, or the cost of the installation and construction of the
building, facility, structure, or other improvement has been paid by,
a parking authority, joint powers entity, or other public
corporation to provide a building, facility, structure, or other
improvement that has been or will be leased to the community.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
http://info.sen.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_93_bill_20090310_amended_se... 3/24/2009
SB 93 Senate Bill - AMENDED Page 2 of 3
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 33445 of the Health and Safety Code is amended
to read:
33445 . (a) Notwithstanding Section 33440, an agency may, with the
consent of the legislative body, pay all or a part of the value of
the land for and the cost of the installation and construction of any
building, facility, structure, or other improvement that is publicly
owned either within or without the project area, if the legislative
body finds, based on substantial evidence in the record, all of the
following:
(1) Significant blight remains within the project area.
(2) The blight cannot be eliminated without the acquisition of the
land or the installation and construction of the building, facility,
structure, or other improvement that is publicly owned.
(3) That no other reasonable means of financing the buildings,
facilities, structures, or other improvements, are available to the
community, including, but not limited to, general obligation bonds,
revenue bonds, special assessment bonds, and bonds issued pursuant to
the Mello-Roos Community Facilities Act of 1982 (Chapter 2 .5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of
the Government Code) .
(4) That the payment of funds for the acquisition of land or the
cost of buildings, facilities, structures, or other improvements that
are publicly owned is consistent with the implementation plan
adopted pursuant to Section 33490.
(b) The acquisition of land and the installation or construction
of each building, facility, structure, or improvement that is
publicly owned shall be provided for in the redevelopment plan.
(c) An agency shall not pay for the normal maintenance or
operations of buildings, facilities, structures, or other
improvements that are publicly owned. Normal maintenance or
operations do not include the construction, expansion, addition to,
or reconstruction of, buildings, facilities, structures, or other
improvements that are publicly owned otherwise undertaken pursuant to
this section.
(d) (1) When the value of the land or the cost of the installation
and construction of the building, facility, structure, or other
improvement, or both, has been, or will be, paid or provided for
initially by the community, the agency may enter into a contract with
the community to reimburse the community for all or part of the
value of the land or all or part of the cost of the building,
facility, structure, or other improvement, or both, by periodic
payments over a period of years.
(2) The obligation of the agency under the contract shall
constitute an indebtedness of the agency for the purpose of carrying
out the redevelopment project for the project area, and the
indebtedness may be made payable out of taxes levied in the project
area and allocated to the agency under subdivision (b) of Section
33670 or out of any other available funds.
(e) Prior to January 1, 2669— 2010
in a case where the land has been or will be acquired by, or the cost
of the installation and construction of the building, facility,
structure, or other improvement has been paid by, a parking
authority, joint powers entity, or other public corporation to
provide a building, facility, structure, or other improvement that
has been or will be leased to the community, the contract may be made
with, and the reimbursement may be made payable to, the community.
(f) With respect to the financing, acquisition, or construction of
a transportation, collection, and distribution system and related
http://info.sen.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_93 bill_20090310_amended_se... 3/24/2009
SB 93 Senate Bill - AMENDED Page 3 of 3
peripheral parking facilities, in a county with a population of
4, 000, 000 persons or more, the agency shall, in order to exercise the
powers granted by this section, enter into an agreement with the
rapid transit district that includes the county, or a portion
thereof, in which agreement the rapid transit district shall be given
all of the following responsibilities :
(1) To participate with the other parties to the agreement to
design, determine the location and extent of the necessary
rights-of-way for, and construct, the transportation, collection, and
distribution systems and related peripheral parking structures and
facilities.
(2) To operate and maintain the transportation, collection, and
distribution systems and related peripheral parking structures and
facilities in accordance with the rapid transit district' s
outstanding agreements and the agreement required by this paragraph.
(g) (1) Notwithstanding any other authority granted in this
section, an agency shall not pay for, either directly or indirectly,
with tax increment funds the construction, including land
acquisition, related site clearance, and design costs, or
rehabilitation of a building that is, or that will be used as, a city
hall or county administration building.
(2) This subdivision shall not preclude an agency from making
payments to construct, rehabilitate, or replace a city hall if an
agency does any of the following:
(A) Allocates tax increment funds for this purpose during the
1988-89 fiscal year and each fiscal year thereafter in order to
comply with federal and state seismic safety and accessibility
standards.
(B) Uses tax increment funds for the purpose of rehabilitating or
replacing a city hall that was seriously damaged during an earthquake
that was declared by the President of the United States to be a
natural disaster.
(C) Uses the proceeds of bonds, notes, certificates of
participation, or other indebtedness that was issued prior to January
1, 1994, for the purpose of constructing or rehabilitating a city
hall, as evidenced by documents approved at the time of the issuance
of the indebtedness.
http://info.sen.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_93_bill_20090310_amended_se... 3/24/2009
RCA ROUTING SHEET
INITIATING DEPARTMENT: Administration
SUBJECT: Intergovernmental Relations Recommendations
COUNCIL MEETING DATE: April 6, 2009
RC'A ATTACHMENTS STATU$r
. ..
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Ap licable
Contract/Agreement (w/exhibits if applicable) Attached ❑
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not Ap licable
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑
Not Ap licable
Bonds (If applicable) Attached ❑
Not Applicable
Staff Report (If applicable) Attached ❑
Not Applicable
Commission, Board or Committee Report (If applicable) Attached ❑
Not Applicable
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
-XPL"ANATI0. FO I SI ..G' .TTAC, T A „
REUIjEVUE®' RETURNED FORINA DED''
Administrative Staff ( )
Assistant City Administrator (Initial) ( ) )
City Administrator (Initial)
( )
City Clerk ( )
F
`EXPLANATCON„FOR RETURN`OF ITEM.
e
RCA Author: Dapkus
,a," •• CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICATION
® lh�(°QE,�B�jiyQy'P�'L i OFFICE OF THE CITY TREASURER
TO: Joan Flynn, City Clerk
FROM: Shari L. Freidenrich, CPA, City Treasur
DATE: April 6, 2009
SUBJECT: LATE COMMUNICATION—AGENDA ITEM#13 (C)
A recent amendment to AB 155 changes the method by which the State of California would
intervene in a local agency's bankruptcy. The amendment deletes the new Committee proposed
in the original version, the Local Agency Bankruptcy Committee (members: the Controller, the
Treasurer and the Director of Finance) and adds an existing body, the California Debt and
Investment Advisory Commission in its place. I have attached a list of the current Commission
members.
However, the basic premise of this legislation is that a public agency may only file under federal
bankruptcy laws with the approval of the above commission and takes away the local control of
the City Council. Staff s recommendation does not change and is to oppose AB 155.
SLF
Attachment
California Debt and Investment Advisory Commission
Commission Overview
The California Debt and Investment Advisory Commission was created by the California Legislature to assist
state and local agencies with the issuance, monitoring,and management of public debt and the investment
of public funds through its research and technical assistance programs. CDIAC also acts as the state's
clearinghouse for public debt issuance information.
Commission Members
Bill Lockyer
California State Treasurer and Chair
Arnold Schwarzenegger
Governor
John Chiang
State Controller
Dave Cox
State Senator
Carol Liu
State Senator
Anna Caballero
Assemblymember
Ted Lieu
Assemblymember
Jose Cisneros
Treasurer and Tax Collector
City and County of San Francisco
Jay Goldstone
Chief Operating Officer
City of San Diego