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Description
San Bruno City Council Meeting August 9, 2011
8. Continued Existence & Operation of Redevelopment Agency
A
Public
hearings,
notices
have
been
published
and
posted
and
mailed
we're
going
to
hold
a
public
hearing
wave
the
first
reading
and
adopted
and
urgency
ordinance
of
the
city
of
San
Bruno
in
order
to
opt
in
and
allow
the
continued
existence
and
operation
of
the
San
Bruno
redevelopment
agency
in
accordance
with
a
b-1
x27
city
attorney.
For.
B
This
item
three
of
the
council
members
are
refused
council
members,
O'connell,
Medina
and
Salazar.
However,
councilmember
O'connell
had
been
previously
selected
to
be
the
third
member
constituting
the
quorum
for
our
da
discussions.
However,
this
item
requires
for
affirmative
votes.
If
it's
to
be
passed
and
so
as
a
result,
state
law
requires
and
allows
a
random
drawing
to
occur
for
a
one
of
the
two
remaining
council
members
to
participate
on
the
item.
B
D
Honorable
mayor
members
of
the
City
Council,
as
we
learned
at
the
July
twelfth
city
council,
meeting,
two
new
state
laws
that
significantly
affect
redevelopment
in
California
were
passed
as
part
of
adopting
the
safe
budget,
a
be
126.
The
elimination
bill
eliminates
redevelopment
agencies
as
of
October
first
2011,
and
immediately
suspended
most
redevelopment
activities
and
prohibits
agencies
from
incurring
new
debt.
A
b27
provides
an
opportunity
for
for
redevelopment
agencies
to
opt
in
and
to
continue
to
operate
by
participating
in
an
alternative
redevelopment
program.
D
The
state
is
using
these
bills
to
help
solve
its
own
budget
problems
in
the
tooth.
In
two
thousand
eleven
and
twelve,
by
diverting
1.7
billion
dollars
from
redevelopment
agencies
to
close
an
unprecedented
precedented
state
budget
gap,
the
City
Council
directed
staff
to
pursue
the
option
for
the
city
to
opt
in
to
the
alternative
program
to
allow
the
San
Bruno
redevelopment
agency
to
remain
in
existence.
This
presentation
outlines
the
reasons
for
the
city
to
opt
in,
and
the
process
involved
in
complying
with
a
b27
San
Bruno
has
a
very
strong
interest
in
maintaining
its
redevelopment
program.
D
Redevelopment
was
key
in
laying
the
groundwork
for
the
development
at
the
crossing.
The
agency
prepared
the
Navy
site
specific
plan,
any
e
ir
and
provided
affordable
housing
subsidies.
The
developer
relied
on
this
agency
investment
and
commitment
in
making
its
decision
to
purchase
the
site
from
the
federal
government.
The
agency's
investment
leveraged,
the
development
of
one
town
over
1,000
housing
units,
including
325,
affordable,
multifamily
and
senior
units,
15,000
square
feet
of
retail
space
and
the
site
for
a
hotel.
D
D
The
agency
is
actively
involved
in
a
number
of
critical,
ongoing
redevelopment
projects
identified
in
the
redevelopment
plan,
the
five-year
implementation
plan
and
the
draft
transit
corridors
plan.
The
agency
has
already
made
substantial
investments
in
these
projects
that
would
diminish
in
value
if
they're
not
completed.
D
The
agency
is
now
in
the
process
of
developing
the
transit
corridors
plan,
which
seeks
to
create
a
similar
framework
as
the
Navy
site-specific
plan
in
order
to
transform
the
downtown
and
commercial
corridors
around
the
new
caltrain
station
into
a
transit
oriented
development
district.
The
plan
will
be
a
guide
for
future
public
and
private
improvements
designed
to
promote
private
investments,
accelerate
the
economic
recovery
of
the
city
and
to
generate
quality
local
jobs.
D
City
staff
are
also
working
with
developers
to
identify
potential,
affordable
housing
projects,
affordable
housing
opportunities
on
vacant
and
underutilized
sites
in
the
transit
quarters
area,
such
as
the
budget
motel
site
on
el
camino.
Real
adopting
the
opt-in
ordinance
will
ensure
that
these
important
redevelopment
activities
are
not
disrupted.
D
Without
the
adoption
of
an
opt-in
ordinance
agreeing
to
comply
with
a
be
27,
the
Redevelopment
Agency
is
operating
under
the
requirements
of
a
b-26.
The
elimination
bill,
which
is
a
b-26,
suspend
suspended.
All
new
redevelopment
activities
and
dissolves
redevelopment
agencies,
effective,
October,
1,
2011,
suspended
activities
include
incurring
you
indebtedness,
restructuring
existing
indebtedness,
making
loans
or
grants
entering
into
contracts
and
amending
existing
agreements.
The
only
permitted
activities
now
include
making
payments
on
existing
bonds
loans,
legally
binding
agreements
and
contracts
for
administration
of
the
agency.
D
Additional
requirements
of
a
b-26
include
the
preparation
of
an
enforceable
obligation,
payment
schedule
by
August
twenty-eighth
2011.
If
the
ordinance
is
not
enact
by
that
day,
the
opt-in
ordinance,
that
is,
creation
of
a
successor
agency
and
an
oversight
board
to
pay
enforceable
obligations
and
administer
the
dissolution
of
the
of
the
agency.
D
Once
the
agency
adopts
the
opt-in
ordinance,
it
can
resume
normal
operations
without
the
threat
of
dissolution
imposed
by
a
b-26.
The
primary
obligation
incurred
by
the
opt-in
ordinance
is
for
the
city
to
make
annual
payments
to
the
county
or
to
auditor-controller,
beginning
in
this
fiscal
year
and
in
all
succeeding
years
of
the
agency's
existence.
If
the
city
fails
to
make
a
payment,
the
sanction
is
dissolution
of
the
redevelopment
agency
under
a
b-26.
Therefore,
the
general
fund
and
other
funds
are
not
at
risk.
D
If
the
agency
fails
to
make
a
payment,
I
mean
if
the
city
fails
to
meet
the
pavement,
a
b27
is
designed
to
generate
a
total
of
1.7
billion
dollars
from
all
redevelopment
agencies
in
the
state.
In
this
initial
year,
the
California
Department
of
Finance
published
the
payments
for
each
redevelopment
agency
in
the
last
week
and
San
Bruno's
payment
amount
will
be
three
million
one
hundred
and
fifty
two
thousand
dollars
in
subsequent
years.
The
intent
is
to
raise
four
hundred
million
dollars
annually
from
payments.
D
Unfortunately,
the
formula
for
raising
those
funds
is
complex
and
dependent
on
future
factors,
so
it
is
not
possible
to
know
at
this
time
what
the
what
the
city's
annual
payment
will
be.
After
the
first
year,
clean
up
legislation
is
in
progress
which
should
clarify
that
calculation,
a
be
27
payments
to
the
county.
Auditor
controller
are
due
in
two
payments
on
January
15
and
May.
Fifteenth
funds
to
make
the
annual
payments
may
come
from
any
available
fund
source,
including
the
agency's
non
housing
fund,
which
it's
assumed
where
most
of
the
we'll
come
from.
D
However,
the
agency
may
use
the
low
and
moderate
income
housing
fund
in
the
first
year
if
no
other
funds
are
available,
staff
has
identified
redevelopment,
Housing
and
non
housing
funds
to
make
the
initial
payment.
Although
the
finance
department
is
evaluating,
what
portion
could
come
from
housing
funds
which
will
be
presented
at
a
future
meeting,
the
opt-in
ordinance
has
been
crafted
as
an
urgency,
ordinance,
effective
immediately
and
urgency.
Ordinance
does
not
require
a
second
reading
or
a
30-day
wait
period.
Adoption
of
an
urgency
ordinance
requires
for
both
votes
for
approval.
D
State
law
states
that
an
urgency
ordinance
may
be
adopted
when
it
is
necessary
to
take
immediate
action
in
order
to
protect
public
peace,
health
or
safety.
Redevelopment
agencies
protect
public
peace,
health
and
safety
by
eliminating
blight,
providing
affordable
housing
and
expanding
economic
growth
within
the
project
area.
Under
the
current
conditions
of
a
b-26,
the
Redevelopment
Agency
no
longer
has
the
tools
necessary
to
carry
out
these
stated
goals
without
this
or
urgency
ordinance.
D
The
RDA
would
be
in
limbo
until
november,
1
or
even
later,
disabled
from
acting
while
the
legal
wrangling
continues
in
the
Supreme
Court
during
this
prolonged
nationwide
recession,
where
investment
and
lending
activity
can
be
deterred
by
even
the
slightest
negative
veritable.
It
is
critical
that
local
government
provide
a
stable
and
predictable
environment
in
which
to
operate
without
a
redevelopment
agency.
The
local
environment
is
neither
stable
nor
predictable.
D
Furthermore,
the
transit
quarters
plan
a
ir,
will
soon
be
released
after
a
two-year
visioning
process.
The
transit
corridors
plan
sets
forth
a
bold
new
vision
for
a
portion
of
the
redevelopment
area
and
has
already
attracted
a
significant
amount
of
private-sector
attention.
However,
that
the
transit
quarters
plan
vision
relies
heavily
on
the
continued
existence
of
the
Redevelopment.
D
Agency,
therefore,
is
necessary
to
immediately
enact
this
ordinance,
which
will
allow
the
Redevelopment
Agency
the
day-to-day
tools
necessary
to
eliminate
blight,
provide,
affordable
housing
and
expand
economic
growth
while
providing
the
stable
environment,
which
is
necessary
to
encourage
private
sector
investment
in
today's
tenuous
economy
should
also
be
noted
that
the
California
redevelopment
Association
and
the
California
League
of
Cities
have
filed
a
lawsuit
in
this
in
the
California
Supreme
Court
challenging
the
constitutionality
of
a
b-26
and
a
b27.
The
suit
asks
for
a
stay
while
the
case
is
being
decided.
D
As
the
next
step
will
be
for
the
agency
and
the
City
Council
to
approve
an
agreement
whereby
the
agency
will
transfer
tax
increment
to
the
city
for
the
required
annual
payment,
this
should
be
done
sometime.
This
fall
prior
to
making
the
first
payment
staff
will
also
be
monitoring
and
report
back
on
clean
up
legislation
that
is
currently
in
progress,
which
should,
as
I
mentioned
before,
clarify
the
calculation
of
payments
after
the
first
year.
And
that
concludes
my
presentation,
you
happy
to
answer
any
questions.
Thank.
A
A
A
E
You
know,
911
happens
and
we
get
stuck
explosion
happens
and
we,
you
know,
and
we
got
to
regroup
and
it's
just
san
bruno,
the
resilient,
City
and
I
think
we're
going
to
do
it
again
and
I
think
we've
got
some
great
plans
for
redevelopment
and
with
that
I
think
we
should
keep
redevelopment
and
I'd
like
to
introduce.
The
resolution
introduced.
The
ordinance
we've
waived,
the
first
reading
and
I
think
a
motion
to
waive
the
first
reading.
Second,.
A
Before
we
move
on
to
the
next
item,
I
just
want
to
say
also,
since
the
Assemblyman
is
here
joining
us
this
evening,
I've
spoken
to
him
personally,
any
public
debt
I
believe
this
is
a
form
of
extortion
and
I'm,
not
really
in
favor
of
it,
but
as
councilmember
I
Barisan.
We
really
have
no
have
no
choice:
I
guess
the
you
know,
Prop
22
a
while
ago
said:
don't
touch
our
money.
The
governor
pretty
much
said
well
yeah.
A
We
can't
touch
the
money,
but
we
can
sure
try
to
eliminate
the
agency's
circumvent
what
the
people
really
want.
I
still
believe
that
the
people
don't
want
this
touched,
but
unfortunately,
at
this
point
in
time
we
really
have
really
have
no
choice,
so
hopefully,
as
the
council
member
said,
you
know
this
is
to
receive
the
light
at
the
end
of
the
tunnel.
It's
just
a
little
further
out
there
and
hope
it's
not
a
train
coming
the
other
way.
So
anyone.