In Depth
Showdown Nov. 16 Vote Set On Whether Councilmembers, Or Current Non-Elected Body, Will Govern LB Redevelopment;
Councilman Lerch Modifies & Adds To His Proposed Limits, Seeks Mgr. Report On Add'l Time & Costs
(November 11, 2004, updated Nov. 12) -- A November 16 showdown City Council hearing has been scheduled at which Councilmembers could direct the City Attorney to prepare an ordinance that would declare Councilmembers to be LB's governing Redevelopment Agency Board.
If approved by a Council majority, this would (when the ordinance becomes effective effective shortly after Jan. 1, 2005) effectively replace LB's current non-elected (Mayor-appointed, Council-approved) Redevelopment Agency board with members of the City Council.
Councilmembers will basically be deciding whether to give themselves direct control over millions of dollars that are supposed to be used to combat blight in nearly half of LB previously declared within Redevelopment project areas (as well as the power to place additional areas under Redevelopment subject to a statutory definition of "blight" and other legal requirements).
While not explicitly listed on the agenda, the hearing materials include two memoranda by 9th district Councilman Val Lerch...which differ in some respects from the limits on Council/RDA action he sought on November 9. (The Council voted 6-3 to defer action on Councilman Lerch's items until after the Council votes on the main Redevelopment issue on November 16.)
Councilman Lerch's two proposals now are:
A full and complete report from the City Manager on...[r]esponsibilities and total time involvement of the current RDA members; equate that time involvement to dollar cost; The estimated extra time expenditure/involvement for Council Members/RDA Members (over and above time involvement for Council duties); What will be the extra cost to City Council budgets for additional staff required to handle the RDA work? What are any other possible costs that might be implemented?
[I]n the event that the City Council votes to establish itself as the RDA Board, that the following be included in the establishing Ordinance: Require that property tax increment must be spent within the Redevelopment Project Area in which it was generated, except for low
and moderate housing set-aside funds; Require that the merger of any of the Redevelopment Areas require a two-thirds vote of the members of the Redevelopment Agency Board; Require that any increase in the stipend received by the RDA Board shall not become effective until after the incumbent member is no longer in office.
If approved by a Council majority, the City Council would become the Redevelopment Agency governing board on January 6, 2005 and could hold its first meeting at its January 11, 2005 regular meeting date.
City staff proposes to include the Mayor as Chair of the Redevelopment Agency and a non-voting member of the Board, with the Vice Mayor as Vice Chair. (In most communities where the City Council is the redevelopment agency, the Mayor serves as the chair of the Redevelopment Agency.)
The proposed Council actions are described in detail in a staff memo and "Report Substantiating and Explaining the Determination that the City Council Shall Declare Itself the Redevelopment Agency" spelling out the reasons for the action and including proposed findings for Council action.
LBReport.com posts these materials below.
City staff report re hearing declaring City Council to be LB's Redevelopment Agency
November 16,2004
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach, California
SUBJECT: Public Hearing Declaring the City Council to be the Redevelopment
Agency - Citywide
DISCUSSION
On August 25, 2004, the City Manager sent a memorandum to the Mayor and
City Council that discussed their role in the redevelopment process. It described
his concerns regarding the lack of progress in redevelopment project areas, the
disconnect between City Council interest and the direction of the Agency Board
and the fact that the City Council is held responsible for redevelopment policy but
has little authority over it (Exhibit A) [(Previous LBReport coverage, click here.] The memorandum suggested that the City Council consider becoming the Agency Board.
On October 19, 2004, the City Council decided to hold a public hearing on
November 9 or after to discuss the advantages and disadvantages of the City
Council declaring itself to be the Redevelopment Agency. The hearing was
scheduled for November 16, 2004 at which time, after listening to public
testimony and discussing the matter, the City Council may request the City
Attorney to prepare an ordinance declaring the City Council to be the
Redevelopment Agency.
Legal Requirements
Community Redevelopment Law (CRL) Section 33200 (b) describes the process
that is required for a city council to declare itself the redevelopment agency if an
appointed agency board has been in existence for more than three years. The
following steps are required:
- Publish the public hearing notice during the 10 days prior to the public
hearing.
- Post the public hearing notice throughout the redevelopment project areas
at least 10 days before the public hearing.
- Mail the public hearing notice to persons who have expressed interest in
receiving information on redevelopment activities.
- Prepare a report explaining the determination that the City Council will
declare itself the Redevelopment Agency.
- Hold a public hearing.
- Approve an ordinance declaring the City Council to be the Redevelopment
Agency.
As part of the City Council's Ordinance, it must make findings that: (1) the action
will serve the public interest and promote the public safety and welfare in a more
effective manner than the current appointed Redevelopment Agency Board; and
(2) there has been a full public disclosure of all reports and proposals relating to
the City Council's intent to declare itself the Redevelopment Agency.
The noticing requirements for the public hearing have been met (Exhibit B) [not included below] and the report explaining the determination has been prepared and is attached as Exhibit C [included below]. All of the legal prerequisites for the public hearing have been met.
After the public hearing, the City Council could request the City Attorney to
prepare an Ordinance declaring the City Council to be the Redevelopment
Agency.
Effective Date
Ordinances usually take effect 30 days after the second reading. If the City
Council requests the preparation of the Ordinance on November 16, 2004, it
could approve the Ordinance on November 23, 2004, and have the second
reading on December 7, 2004. The Ordinance would take effect, and the City
Council would be the Redevelopment Agency, on January 6, 2005. The City
Council could hold its first meeting as the Redevelopment Agency at its January
11, 2005, regular meeting date.
Role of the Mayor
In most communities where the city council is the redevelopment agency, the
Mayor serves as the chair of the redevelopment agency. The proposed
Ordinance would include the Mayor as Chair of the Redevelopment Agency and a
nonvoting member of the Board. It is also suggested that the Vice Mayor serve
as the Vice Chair.
This letter was reviewed by Assistant City Attorney Heather Mahood on
November 3, 2004, and Budget Management Officer David Wodynski on
November 4,2004.
TIMING CONSIDERATIONS
City Council action on this matter is not time critical.
FISCAL IMPACT
The assumption of redevelopment authority by the City Council will have no fiscal
impact assuming Agency operations remain the same. Additional fiscal impacts will be
evaluated at a later time.
IT IS RECOMMENDED THAT THE CITY COUNCIL:
1. Receive supporting documentation into the public record, conclude the
public hearing and request the City Attorney to prepare an Ordinance
declaring the City Council to be the Redevelopment Agency; or
2. Receive and file this report; or
3. Request the Redevelopment Agency to study the advantages and
disadvantages of appointed redevelopment agency boards and city
councils serving as redevelopment agency boards as part of the
Independent Study of Redevelopment.
Respectfully submitted,
s/ GERALD R. MILLER
CITY MANAGER
Report Substantiating and Explaining the Determination
that the City Council Shall Declare Itself the Redevelopment Agency
November 16.2004
Redevelopment Agency Governance in California
There are 475 cities in California. The City of Long Beach is the fifth largest city in the
state with a population of 473,000. Only Los Angeles, San Francisco, San Jose and
San Diego are larger with populations of 800,000 to 3 million. Slightly smaller cities
include the cities of Sacramento, Oakland and Fresno, which have populations ranging
from 400,000 to 450,000. Smaller yet are Santa Ana and Anaheim, both of which have
populations of about 350,000. Other cities in California have populations under
300,000. To recap, the ten largest cities are as follows:
City | Population |
1. Los Angeles | 3,807,400 |
2. San Diego | 1,244,700 |
3. San Jose | 918,000 |
4. San Francisco | 793,600 |
5. Long Beach | 473,100 |
6. Fresno | 441,900 |
7. Sacramento | 426,000 |
8. Oakland | 408,800 |
9. Santa Ana | 343,700 |
10. Anaheim | 334,700 |
Most of California’s 475 cities have activated their redevelopment powers. Community
Redevelopment Law empowers the City Council to utilize redevelopment powers by
adopting an ordinance declaring the need for an agency and establishing a
redevelopment agency board. In most cities, the city council also serves as the board
of the redevelopment agency. Only in the largest cities are separately appointed boards
that handle redevelopment matters more typical. In three large cities, these boards
operate as fully functioning redevelopment agencies. It is just as common, however, for
the appointed boards to have less than a full range of powers even in large cities. Many
of the boards serve in an advisory capacity or handle smaller matters. For instance, in
San Diego, several non-profit groups (CCDC and SEDC) perform many of the functions
of a redevelopment agency, but their vote is advisory in nature and most redevelopment
agenda items must still be taken to the City Council for approval. Agency boards are
appointed bodies, typically appointed by the mayor or city council.
In Long Beach, the City Council established an appointed board to oversee day-to-day
redevelopment matters. That board, which is empowered with the full range of
redevelopment powers available under the law, is appointed by the Mayor and
confirmed by the City Council. Beginning in 1999, two of the members were appointed
by the Mayor from nominees submitted by the Agency’s existing Project Area
Committees (PACs). The number of PAC-nominated Agency Board members
increased from two to three in June of 2003. Long Beach appears to be the only city in
California where the Project Area Committee submits nominees for the Agency Board.
To recap, in all but the largest cities, the city council acts as the agency board. In the
ten largest cities in California, three have separate agency boards with full powers,
three have advisory boards or boards with limited powers and in four the city council is
the redevelopment agency board. The type of agency boards in the ten largest cities is
as follows:
City | Agency | Board |
1. Los Angeles | Separate Board with Full Powers. |
2. San Diego | Separate Boards with Advisory Powers/CCDC and SEDC.
City Council is the Agency Board and the Mayor is the Chair and votes. |
San Jose | City Council serves as Board. Mayor is the Agency Chair and
votes. |
4. San Francisco | Separate Board with Full Powers/Redevelopment Commission. |
5. Long Beach | Separate Board with Full Powers. |
6. Fresno | City Council serves as Board. Mayor does not vote on Agency
matters. City Council elects one if its own as Agency Chair. |
7. Sacramento | Separate Board with Limited Powers/Housing and
Redevelopment Commission. City Council is the Redevelopment Agency Board; the Mayor is the Chair and votes. |
8. Oakland | City Council serves as Board. The Mayor is the CEO and
does not vote. The City Council President is the Agency Chair. |
9. Santa Ana | City Council serves as Board. The Mayor is the Chair and votes. |
10. Anaheim | Separate Board with Advisory Powers/Housing and Redevelopment Commission. The City Council is the Redevelopment Agency Board. The Mayor is the Chair and votes. |
In communities where the city council serves as the redevelopment agency, the mayor
generally is the chair of the agency and votes on issues before the board. All city
council members are generally voting members of the redevelopment agency board.
However, there are exceptions to this rule. Staff surveyed the seven largest cities
where the city council has retained redevelopment agency powers. Five of the seven
used the model described above with the mayor as a voting chair and all city council
members as voting members of the agency board. The two exceptions were the cities
of Fresno and Oakland. In Fresno, the Mayor does not vote on redevelopment matters
and the City Council elects one of its own as the Agency Chair. The City of Oakland
has a strong mayor form of government and the Mayor serves as the CEO of the
Agency working closely with the City Manager to set policy and direct redevelopment
staff.
Process Required for the City Council to Become the
Redevelopment Agency Board
Community Redevelopment Law clearly describes the process required for the City
Council to declare itself the Redevelopment Agency. The City Council may, by adoption
of an ordinance, declare itself to be the Agency; in this case, all the rights, powers,
duties, privileges and immunities vested by Community Redevelopment Law in an
agency will be vested in the City Council. If a member of the City Council does not wish
to serve on the Redevelopment Agency Board, the member may so notify the City
Council and the City Council would appoint a replacement that is an elector of the city to
serve out the term of the replaced member.
As part of the City Council’s ordinance declaring itself to be the Redevelopment Agency,
the City Council must make findings that the action shall serve the public interest and
promote public safety and welfare in an effective manner. The City Council may not
adopt an ordinance declaring itself to be the Redevelopment Agency without first
conducting a public hearing on the proposed ordinance.
Notice of the public hearing must be published not less than once during the ten
calendar days immediately prior to the hearing in a newspaper of general circulation
printed and published in the community. The notice of hearing must include a general
statement of the procedure and effect of the City Council declaring itself to be the
Redevelopment Agency. Copies of the notice must be posted throughout the project
areas at least ten calendar days prior to the hearing. The City Council must also mail
by first-class mail copies of the notice at least ten calendar days prior to the hearing to
all persons who have expressed to the Redevelopment Agency or the City Council an
interest in receiving information on redevelopment activities.
The City Council must cause the preparation of reports or proposals necessary to
substantiate and explain the determination that the City Council will declare itself the
Redevelopment Agency to be presented at the public hearing.
As part of the City Council’s ordinance declaring itself to be the Redevelopment Agency,
the City Council must make findings that: (1) the action will serve the public interest and
promote public safety and welfare in a more effective manner than the current
organization and (2) there has been full public disclosure of all reports and proposals
relating to the legislative body’s intent to declare itself the Redevelopment Agency.
Having declared itself the Redevelopment Agency, the City Council must decide on the
structure of its governing board. Most cities have chosen to have all city council
members serve on the redevelopment agency board and have the mayor serve as the
chair and a voting member of the agency board. In Long Beach, the City Charter
specifies that the Mayor does not vote on City Council matters. However, the Charter
does not prohibit the Mayor from serving as a voting member of the Redevelopment
Agency. The City Council has the authority to select the most commonly used model
for a Redevelopment Agency Board or, as in the case of Fresno or Oakland, devise
another model.
Findings
The City Council makes the following findings:
1. The City Council’s declaration of itself to be the Redevelopment Agency
will serve the public interest and promote public safety and welfare in a
more effective manner than the current organization for the following
reasons:
A. The current organization of the Redevelopment Agency has resulted in
policy conflicts that would be avoided if the City Council were to declare
itself the Redevelopment Agency.
The City of Long Beach’s appointed Redevelopment Agency Board sets
redevelopment policy for all of the City’s seven redevelopment project
areas. The Redevelopment Agency is a separate legal entity from the City
of Long Beach and the Agency Board has considerable authority to act
independently without City Council review. The Redevelopment Agency
Board has the authority to approve contracts, purchase goods and
services, provide assistance to private developers, provide loans, review
the design of development projects and approve design standards without
the review or approval of the City Council.
Community Redevelopment Law provides the City Council oversight in a
few critical areas. The approval of the City Council is required for Agency
agreements that result in the sale of land purchased with tax increment.
The City Council must also approve the Redevelopment Agency’s annual
budget and must also approve the adoption and amendment of
redevelopment plans. The City Council’s authority over these matters is
one of acceptance or rejection. The City Council can reject projects
proposed by the Redevelopment Agency, but cannot compel the
Redevelopment Agency to approve projects, programs or policies
proposed by the City Council. The City Council has in the past made
recommendations to the Redevelopment Agency that the Agency has
declined to accept.
The City Council reviews all matters of importance to the City, while the
current Redevelopment Agency Board concentrates on matters related to
redevelopment. As a result, the Redevelopment Agency may embrace
priorities that differ from those of the City Council. When City Council and
Redevelopment Agency Board priorities differ, the City Council’s ability to
redirect Redevelopment Agency policy is limited.
If the City Council declared itself the Redevelopment Agency Board, the
potential for conflict over redevelopment policy between two public bodies
would be removed.
B. The City Council is more directly accountable to voters than the current,
appointed Redevelopment Agency Board.
The residents of the City of Long Beach have made known their desire to
have a voice in setting redevelopment policy and approving projects in the
City of Long Beach. The City of Long Beach has formalized the role of the
public in the formation of redevelopment policy to a greater degree than
any other City in the State of California. There are three Project Area
Committees (PACs) that provide advice on redevelopment matters. In
most communities, PACs are in existence for three years and then are
disbanded. The redevelopment plans for the Central and North Project
Areas guarantee the existence of the PACs for the life of the project areas.
A legal agreement with the West Long Beach Industrial PAC guarantees
their continued existence.
The voters of Long Beach directly elect members of the City Council.
Citizens have the ability to hold members of the City Council accountable
through elections and their power to recall members of the Council.
Members of the appointed Redevelopment Agency Board are selected by
the Mayor and City Council, but are not directly accountable to the general
public. If the City Council were the Redevelopment Agency Board, the
redevelopment policymakers would be directly accountable to those
citizens who are affected by redevelopment projects and programs.
C. By declaring itself the Redevelopment Agency, the City Council would
streamline and simplify the process of approving redevelopment agency
projects and programs.
Proposals for new redevelopment projects and programs originate with
members of the Redevelopment Agency Board, City Council members,
developers, staff, PACs and the public. Before these projects and
programs become proposals before either public body, staff spends
considerable time attempting to achieve consensus among all of the
groups listed above. Often members of the Agency Board and members
of the City Council initially have different ideas regarding how a project
should be implemented or whether it should be implemented at all. This
process of consensus building would be streamlined if only one public
body granted redevelopment approvals.
After a general consensus on a redevelopment project is achieved, many
proposals face a dual approval process. Projects must be scheduled for
Agency Board review at Redevelopment Agency Board meetings and, if
they are approved, then scheduled for approval by the City Council. The
assumption of redevelopment authority by the City Council has the
potential to streamline this dual approval process for redevelopment
projects and programs. The formal approval process would take less time
if only one body provided all of the necessary approvals.
The Redevelopment Agency has the authority to review the design of
development projects located in redevelopment project areas. The
Planning Commission has the authority to review the design of
development projects throughout the City. The Redevelopment Agency
and Planning Commission have developed a process to coordinate the
reviews by both bodies. If the City Council became the Redevelopment
Agency, it is likely that it would delegate its authority over design review to
the Planning Commission. The design review process in the City of Long
Beach would likely be quicker and less difficult to understand for
developers if a single body, the Planning Commission, undertook all
reviews.
2. There has been full public disclosure of all reports and proposals relating
to the City Council’s intent to declare itself the Redevelopment Agency.
A. The City Council will hold a public hearing to discuss its proposal to
declare itself the Redevelopment Agency.
B. The Long Beach Press-Telegram published a notice of the public hearing.
C. The Notice of Public Hearing was posted in at least one public place in
each redevelopment project area.
D. The Notice of Public Hearing was mailed to all persons that have
expressed an interest in receiving information on redevelopment activities
and to all Project Area Committee members, neighborhood organizations
and everyone that has submitted a current request to receive
Redevelopment Agency or Project Area Committee agendas.
E. The City Council caused staff to prepare this Report, which substantiates
and explains its determination that it will declare itself the Redevelopment
Agency.
Memorandum
Date: November 10,2004
To: Larry Herrera, City Clerk
From: Val Lerch, Councilmember, 9th District
Subject: ITEM FOR INCLUSION IN NOVEMBER 16,2004 RDA HEARING
I would like to request that included in the agenda item referencing the hearing
on the City Council consideration of taking over the RDA a full and complete
report from the City Manager on the following:
Responsibilities and total time involvement of the current RDA
members.
Equate that time involvement to dollar cost.
The estimated extra time expenditure/involvement for Council
Members/RDA Members (over and above time involvement for Council
duties.)
What will be the extra cost to City Council budgets for additional staff
required to handle the RDA work?
What are any other possible costs that might be implemented?
Thank you.
Cc: Mayor and City Council
Robert Shannon, City Attorney
Gerald Miller, City Manager
Date: November 10,2004
To: Larry Herrera, City Clerk
From: Val Lerch, Councilmember, 9th District
Subject: ITEM FOR INCLUSION IN NOVEMBER 16,2004 RDA HEARING
I would like to request that included in the agenda item referencing the hearing
on the City Council consideration of taking over the RDA, in the event that the
City Council votes to establish itself as the RDA Board, that the following be
included in the establishing Ordinance:
Require that property tax increment must be spent within the
Redevelopment Project Area in which it was generated, except for low
and moderate housing set-aside funds.
Require that the merger of any of the Redevelopment Areas require a
two-thirds vote of the members of the Redevelopment Agency Board.
Require that any increase in the stipend received by the RDA Board
shall not become effective until after the incumbent member is no longer in office.
Thank you
Cc: Mayor and City Council
Robert Shannon, City Attorney
Gerald Miller, City Manager
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