Loading...
HomeMy WebLinkAboutApproval of City Council position on legislation, a regulati Council/Agency Meeting Held:_aZ - / Deferred/Continued to: *Appro ved ❑ Conditionally Approved ❑ Denied Qt�� y CI 's Sign ure Council Meeting Date: February 7, 2011 Department ID Number: AD 11-003 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Mayor Joe Carchio, Chair, on behalf of the Intergovernmental Relations Committee Members, Council Members Devin Dwyer and Mathew Harper PREPARED BY: Paul Emery, Deputy City Administrator SUBJECT: Approval of 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: 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). Financial Impact: N/A Recommended Action: Motion to: A) APPROVE the 2012 Federal Funding Agenda establishing those items on which our Washington lobbyist will focus attention during the current Congressional session, and B) AUTHORIZE the Mayor to send a letter in opposition to the Governor's proposed budget item recommending elimination of Redevelopment Agencies. Alternative Action(s): Do not approve the recommended actions and direct staff accordingly. NB -1 35- Item 10. - 1 ATTAC H M E N T #2 Item , o . ,a He ,,, California Redevelopment',Association Redevelopment. Building Better Communities GOVERNOR`S PROPOSAL TO ELIMINATE REDEVELOPMENT TALKING POINTS (as of 1/10/11) o The Governor's proposal to eliminate redevelopment agencies is not the solution to the State's budget deficit. It is more budget smoke and mirrors that will bring little financial gain for the State, but instead,will cause widespread and significant economic.pain in communities throughout California. It is another gimmick that will likely result in extensive litigation. The State and local governments have very few mechanisms for economic development, but redevelopment is the exception. ® Redevelopment is essential for revitalizing blighted communities and bringing them back to economic vitality by creating jobs,funding affordable housing, building public infrastructure improvements, and creating commercial opportunities. e Redevelopment is a locally-governed service which annually generates 304,000 full- and part- time private sector jobs and puts people to work at a time when unemployment is soaring over 12 percent. ® The Governor's proposal would eliminate redevelopment agencies and instead create "shell" organizations which would simply administer existing debt obligations. However, this would cripple many local economic development programs which are currently in place to improve and revitalize local communities. ® Eliminating redevelopment means the end of California's Affordable Housing program. This would be devastating to California's low-income population and for workforce housing options. ® Since 1993, redevelopment agencies in California have built or rehabilitated over 98,000 units of affordable housing. o Redevelopment contributes $40 billion annually to California's economy and generates more than $2 billion in state and local taxes. It makes no sense to kill this vital economic engine. ® If redevelopment agencies were eliminated, it will have a direct and lasting negative impact on California's economy. • Bottom line, the budget proposal to eliminate redevelopment will hurt California and cripple the local economies in cities and counties statewide. It is not a solution and will not work to solve the budget problems. 1400 KStreet, Suite 204, Socromento, CA 95814-3916 (916)448-87-n ® F--1916)448-9397 wwL,t 145-ap.arg Item 10. - 11 '•_ � n Pd 4 s •� Y REDEVELOPMENT IN CALIFORNIA SUPPORTS JOBS, FUELS THE ECONOMY, PROMOTES SLISTAINABILITY, & BUILDS BETTER COMMUNITIES As California searches for ways to increase high-quality jobs and promote more sustainable development patterns,local redevelopment agencies play a powerful role: Jobs and the Economy: • Redevelopment Supports Private Sector Jobs. Redevelopment activities support 304,000 full- and part-time jobs in a typical year, including 170,600 construction jobs. © Redevelopment contributes over$40 billion annually to California's economy in the generation of goods and services. Redevelopment agency activities increase the state's construction sector output by about$19 billion annually. ® Tax Revenue Contributions. Redevelopment construction activities generate more than $2 billion in state and local taxes in a typical year. ® Redevelopment funds infrastructure and builds commercial,industrial and residential developments statewide. In 2007-08,398 active redevelopment agencies implemented economic development-related projects in 756 project areas in local jurisdictions. During that year,$8.28 billion were expended for project-related costs(paying bonds,building construction,property acquisition, and other activities). And, since 1993,redevelopment agencies have built/rehabilitated over 98,000 affordable homes for eligible families. Benefits of Redevelopment: • Infill-Centered Growth. Communities use redevelopment for cleaning up brownfield sites,building infill projects,and spurring local job creation. Redevelopment encourages infill development rather than greenfield development. Redevelopment agencies have the experience and tools needed to help implement the regional Sustainable Communities Strategy plans required by AB 32/SB 375, and to alter the state's growth patterns. ® Green and Sustainable Development. Redevelopment agencies are actively pursuing green and sustainable building principles, including implementation of CALGREEN standards. • Catalyst for change. Redevelopment investments provide the infrastructure improvements that leverage private investment and breathe new economic life into areas that would otherwise languish. ® Redevelopment Strengthens Communities. Redevelopment activities revitalize communities by investing in local infrastructure and community facilities. Property values are increased,thereby creating more value for schools,businesses, and residents. 0 Affordable Housing in the Right Location. Redevelopment is the largest(under of affordable homes in California after the federal government. Over 98,000 units of affordable housing have been constructed or rehabilitated since 1993. Twenty percent of property tax revenues generated from redevelopment activities must be spent for affordable housing. Item 10. - 12 H -14 - Where Do Redevelopment Agency Tax Increment Revenues Go? Redevelopment builds better communities and revitalizes blighted project areas. In addition, redevelopment activities fuel infrastructure improvement and construction activity,thereby supporting jobs, generating taxes, increasing property values,and other benefits. The following pie chart shows where redevelopment tax increment revenues go: Annual Redevelopment Agency ' Tax Increment Revenue Uses Community Affordable Improvements& Housing Set- j Infrastructure, Aside,20% 18% i 1 J -. _-.... . ._ =�a"�i�� ^9 ia r>:nei;;._ fie.:.<.... _`;$''."'.- a::i:-?i r..it,:::tiiin=�::-eu�..i,i,.y.�,. ,ryq •.. __� e::?i::=?:i'z2rc Bond and Other Payments to 3 Debt Payments, Schools,Counties 41% and Other Entities,21Y 1 ( Source of Data:State Controller, Community Redevelopment Agencies Annual Report, 2007-08,State Total;Table 4;Figure 9;and Figure 16. ¢ I HB -147- Item 10. - 13 January 10, 2011 Honorable Jerry Brown Governor State Capitol Sacramento,CA Members, California State Legislature State Capitol Sacramento, CA fCCJ) hFD1�D1Gr S1?11A`JB;L �' Tl�.PI?7 T ) ) FEE: Eliminating or curtailing redevelopment will weaken the economy and not provide budget relief for the State Dear Governor Brown or Members of the Legislature: As local elected officials,we understand the difficulty of passing a budget in these times of limited resources and worldwide economic meltdown. Those of us in local government have been forced to make difficult decisions to bring our own budgets into balance. However, even in difficult times, the Governor's proposal to eliminate or curtail redevelopment is short-sighted public policy that will damage our economy and bring little budget relief to the State. The proposal to eliminate redevelopment: • Will not provide expected budget relief to the State or local governments after bond issues and contractual obligations are repaid; • Will destroy billions of dollars in local economic activity and hundreds of thousands of jobs; • Will kill the state's leading program to provide affordable housing; and • Will harm our efforts to grow responsibly by focusing on urban and infill development. The proposal will not provide budget savings to the State or local governments. Redevelopment agencies issue bonds to finance redevelopment activities, which must be repaid with interest. Under the federal and state constitutions,these and other contractual obligations must be met before revenues are made available to any other entities or purposes. Agencies currently hold over $20 billion in bonded indebtedness. The proposal will kill iobs and economic expansion at the worst possible time. Eliminating redevelopment will have a direct and lasting negative impact on the California economy and job creation. • Redevelopment activities support an average of 304,000 full- and part-time private sector jobs in a typical year,including 170,600 construction jobs. Item 10. - 14 HB -148- • Redevelopment contributes over$40 billion annually to California's economy in the generation of goods and services,including increasing the state's construction sector output by about$19 billion. • Redevelopment construction activities generate$2 billion in state and local taxes in a typical year. 4"`11 R :�, XM ' fi + ' _ A' ,' E The proposal is bad for the environment,bad for working families, bad for our state. Eliminating redevelopment will take away the primary tool local governments have to comply with SB 375, to grow sustainably, and to provide affordable housing. Consider the following: • Infill-Centered Growth. Communities use redevelopment for cleaning up brownfield sites, building infill projects, and spurring local job creation. Redevelopment encourages infill development rather than greenfield development. Redevelopment agencies have the experience and tools needed to help implement the regional Sustainable Communities Strategy plans required by AB 32/SB 375,and to alter the state's growth patterns. • redevelopment is the second largest finder of affordable homes in California after the federal government. Over 98,000 units of affordable housing have been constructed or rehabilitated since 1993. Twenty percent of property tax revenues generated from redevelopment activities must be spent on affordable housing. This proposal runs completely contrary to the Governor's and Legislature's stated goals of realigning state services to provide more responsibility and funding locally. Redevelopment funds are already locally-generated property tax dollars(agencies do not receive State funding) directed toward community projects and programs directed by locally-elected officials with input from citizens. The proposal wipes out the only tool local governments have to drive economic growth, build up tax revenues, and grow sustainably. We urge you to reject this misguided proposal. Sincerely, HB -149- Item 10. - 15 REQUEST FOR COUNCIL ACTION MEETING DATE: 2/7/2011 DEPARTMENT ID NUMBER: AD 11-003 Analysis: 1. Approve the 2012 Federal Funding Agenda establishing those items on which our Washington lobbyist will focus attention during the current Congressional session. Each year City Departments are asked to provide a list of those projects for which they would like to seek federal funding. Based on those submittals, meetings are scheduled with our lobbyist in Washington, Charmayne Macon of the Ferguson Group. From these meetings the Ferguson Group assists in determining which requests have a likelihood of being considered. This determination is made based the Ferguson Group's knowledge of appropriation bills that will be moving forward and an understanding of those projects our legislators are likely to support. This year the list includes: Water Infrastructure Improvement Projects Beach/Edinger Corridor Improvements Murdy Fire Station Improvements Talbert Lake Diversion Bartlett Park Improvements More detailed information on these funding requests is included in Attachment 1. The Committee recommended approval of this item on a vote of 2-0-1 (Harper absent). 2. Authorize the Mayor to send a letter in opposition to the Governor's proposed budget item recommending elimination of Redevelopment Agencies. In early January, the Governor submitted his proposed budget that includes the elimination of Redevelopment Agencies. The City of Huntington Beach has a rrobust Redevelopment Agency that has been a cornerstone for successful projects including the recently completed Strand project, as well as ongoing improvements to Bella Terra. The Redevelopment Agency is repaying debt to the City's general fund of $4.9 million in the current fiscal year and has addressed infrastructure improvements including Magnolia Street pedestrian and lighting improvements as well as storm drain improvements to the Talbert and Beach area and in the Yorktown Lake area. The proposal of the Governor will shift tax increment to the State level and eliminate the Agency's ability to address blighted conditions in the City. Background information on this proposal, as well as the impacts, are identified in Attachment 2. The Committee recommended approval of this item on a vote of 2-0-1 (Harper absent). Environmental Status: N/A Strategic Plan Goal: Maintain financial viability and our reserves Item 10. - 2 HB -1 3 - REQUEST FOR COUNCIL ACTION MEETING DATE: 2/7/2011 DEPARTMENT ID NUMBER: AD 11-003 Attachrnent(s): o Dopri0tionq, 1. Draft 2012 Federal Agenda 2. Sample Letter and back up information on the Governor's budget proposal relative to Redevelopment Agencies N -1 37- Item 10. - 3 ATTACHMENT # 1 or THE FERGUSON179 IGROUPLLC Connecticut Aven tle,i"4"" suiw 300 GVashington,D.t._20036 202.331.8500 202.331.1598 fax TO: Paul Emery, City of Huntington Beach, CA FROM: Charmayne Macon DATE: December 30, 2010 RE: Federal Agenda Building Session Notes The incoming House of Representatives Republican majority in the 1121h Congress is committed to ending the practice of earmarking while a handful of Democrats support a ban. As we look to prepare the City's federal agenda for the coming year,TFG is working to: • Identify key program accounts that are typically earmarked and determine how the federal agencies will distribute these funds in FYI 1 — i.e. formula, competitive grant; and • Develop strategies for greater opportunities and equal distribution of federal funds in FY12 (if there are no earmarks) for local government programs/projects by the agencies. Additionally, without the use of earmarks to direct federal funds to particular projects, there are opportunities for the congressional delegation to weigh in on City funding priorities. The following are a few examples: • Budget Advocacy Advocacy to White House, Office of Management and Budget (OMB) and agencies for inclusion of specific projects or programs into Administration budget. • Criteria Directing Authorizations and Appropriations Legislation or reports that contain criteria that ensure that grants and funding awards go to local communities (such as geographic diversity requirements, maximum amounts that can be awarded to certain states or localities, set-asides for small, rural or other types of communities). This can include the creation of pilot and demonstration programs that put money into specific efforts. • Infrastructure Line Items in Authorization Bill Project authorization items in bills such as the Surface Transportation Reauthorization or Water Resources Development Act. • Agency Outreach Calls, meetings, and letters from a Member to the agency to support or highlight competitive funding requests. ] aee HB -139- Item 10. - 5 • Congressional Hearings/Recommendations Requests for authorization committees/subcommittees to hold hearings that identify worthy projects and create recommendations to agencies on spending priorities. Below are projects/issues identified by City staff and potential federal resources, along with key legislative items that are applicable to cities like Huntington Beach. As discussed during my meetings with staff, TFG will work with the City to pursue funding opportunities for priority projects listed below or others yet to be determined. Please review the list below so we can soon begin the process of finalizing the City's 2011-2012 Federal Agenda. FUNDING PRIORITIES ..� #.- rterr,, r+_R Gi1V S Beach/Edinger Corridor Improvements • FHWA grant opportunities (Transportation, Community & Preservation Program; TIGER Program; Livable Communities Program) • SAFETEA-LU Reauthorization • FHWA Appropriations (TCSP rogram) Water Infrastructure—pump stations, trans • EPA— State Revolving Loan Fund pipelines • EPA Appropriations(STAG program) • ACOE appropriation(Construction account— under WRDA 2007 authorization (P.L. 110-114, Section 5006) Fire Stations—Murdy (flood mitigation; seismic • FEMA grant opportunities retrofit) Firefighter/Station Equipment . FEMA grant opportunity(Fire Act) a DHS grant opportunity (Urban Area Security Initiative UASI)) Bartlett (undeveloped park) —flood control, • ACOE continuing authorities program habitat preservation,water treatment (ACOE Section 206—habitat restoration; Section 205 —flood control ($7m limit)) EPA appropriations(STAG program) Talbert Lake diversion (water quality) . EPA— State Revolving Loan Fund • ACOE continuing authorities program (Section 206 -water quality) • EPA Appropriations(STAG program Bluff Top—erosion, recreational trails,bike paths • FHWA grant opportunities (Transportation, Community& Preservation Program;Livable 2JI` ag �> Item 10. - 6 HB -140- Communities Program;National Scenic Byways program) O ACOE continuing authorities program (Section 14- emergency streambank and shore protection projects) a FHWA Appropriations(TCSP program) Community Garden a Dept of Agriculture grant opportunity (Community Food Projects program) Edison Park—parking and lighted practice area • CDBG program entitlement funding a HUD Appropriations(Economic Development Initiative) Senior Center(programs and equipment) a CDBG program entitlement funding a HUD Appropriations(Economic Development Initiative) a HHS Administration on Aging grant programs LeBard Park - ADA Ramps, drainage,walking a Drainage—CA State Clean Water paths Revolving Loan Fund (for possible green infrastructure project). a Walking paths—FHWA grant program opportunities: TIGER,TCSP, Sustainable Communities Initiative implementation(For livability/ walkability improvements as part of larger project-depending upon nature of larger project. Walking paths unlikely to be ended as stand-alone project.) Emergency Oil Spill Containment Boom System a DHS grant opportunity (Urban Area Security Initiative(UASI)) a FEMA grant opportunity(Pre-'Disaster Mitigation program) Shooting Range- Huntington Beach Police a Byrne JAG funding(formula) Officer Facility 911 Call/Dispatch Center—Police,Fire and a DOD's Appropriations(COPS Marine Safety Technology program) POLICY AND ADMINISTRATIVE PRIORITIES Community Development Block Grant Support increased funding for the CDBG (CDBG) program, which is critical in assisting with job creation,providing affordable housing, eliminating blight and generating new economic investment. Home Investment Partnerships Program Support increased funding for the HOME 31Pa e HB -141- Item 10. - 7 (HOME) program,which provides formula grants to local governments to create affordable housing for low-income households. Energy and Environmental Efficiency Block Support full funding of the EECBG program, Grant Program (EECBG) authorized in the Energy Policy Act of 2007 (P.L. 110-140). This will provide resources directly to local governments for programs that improve community energy efficiency,develop and implement community and transportation energy conservation programs, and promote and develop alternative and renewable energy sources. Sustainable Development Support legislation that provides incentives and resources to expand local redevelopment planning policies that integrate housing, transportation and land use and assist in the reorganization and replacement of existing support infrastructure. Property Assessed Clean Energy (PACE) Support legislation that would require that federal regulators and mortgage lenders treat PACE assessments like others and underwrite mortgages with PACE assessments,allow property owners to finance energy efficiency and renewable energy projects for their homes and commercial buildings. Local Jobs for America Act Support legislation to provide units of general local government with funding to save and create local jobs through the retention, restoration, or expansion of services needed by local communities. Infrastructure Loan Bank Proposal Support legislative initiatives that would increase local government access to government-backed low interest loans and private capital for priorities including transportation and water infrastructure. Law Enforcement/First Responders/Homeland • Support increased Federal investment in Security resources critical to local law enforcement, including full funding for the Local Law Enforcement Block Grant; additional funding for the Community Oriented Policing Services (COPS) program; as well as integrated public safety communications systems. Maximize first responder funding, as well as flexibility in the use of funds to assist 411-1age: Item 10. - 8 HB -142- areas of need (i.e. personnel, training, and target hardening). • Support increased funding for disaster preparedness, prevention, recovery, and response for all-hazard threats. • Support increased funding for. F'EMA Assistance to Firefighters (AFG) Grants and Fire Prevention & Safety (FP&S) Grants Local Parks and Recreation Establish dedicated federal funding streams for local parks and recreation. Online Travel and Tourism Taxation Prevent passage of legislation that would exempt online tourism companies from paying appropriate sales taxes to state and local governments. `Please excuse any errors in project names or issues misrepresented. 51P HB -143- Item 10. - 9