CJ Dablo
Staff Writer
There’s still no final word on the future of redevelopment agencies throughout California, but Signal Hill officials are wrestling over how to handle their own redevelopment agency’s affairs while the issue remains in limbo.
During the City Council and Redevelopment Agency (RDA) meetings on Tuesday night, City Manager Ken Farfsing recommended that the Council enact a resolution that states it intends to pay a financial obligation as required by controversial redevelopment legislation. Two key redevelopment bills are presently tied up in a lawsuit, but the resolution intends to be a maneuver to avoid the loss of the City’s redevelopment agency. With the future of that legislation pending at the California Supreme Court, Signal Hill’s redevelopment agency and other agencies throughout the state could be on the losing end of a fight over redevelopment and may be required to pay millions of dollars to the state.
The Court has not yet ruled on the legality of two new redevelopment laws and issued a statement last month that it intends to rule on one of the redevelopment lawsuits by mid-January. In the meantime, the Court issued a stay on the legislation. However, just in case the proponents of redevelopment agencies lose their case against the state, the Signal Hill city manager recommended that the Council prepare for that scenario by passing a resolution before Oct. 1. The move might at least buy the City a little time if Farfsing’s analysis is correct. According to his staff report, passage of the resolution was one step that could effectively delay dissolving the RDA until Nov. 1.
The resolution is carefully worded. If proponents of redevelopment win their lawsuit, and the California Supreme Court invalidates the redevelopment laws in question, the resolution states it won’t hold the City to the financial obligation as stated by the redevelopment bill in question. If, however, the Court rules in favor of the state law, the legislation would force the City to pay a significant amount if the City wants to keep its agency. According to Farfsing’s staff report, Signal Hill would be required to pay the state $3.8 million in Fiscal Year 2011-2012 and more than $900,000 in the subsequent years if the state wins the suit.
All of the members of the City Council have made numerous statements over the last year in support of the RDA and criticized the new legislation that could create a significant financial burden for redevelopment agencies.
However, not all of the councilmembers were present for the vote on the resolution. Signal Hill’s Council Chambers was missing two out of the five councilmembers who also serve on the City’s Redevelopment Agency. Ellen Ward and Michael Noll had been scheduled that night to attend a meeting in Northern California that was sponsored by the League of California Cities. Noll also serves as the RDA chair.
With these absences, all three remaining councilmembers had to agree to pass the resolution stating they intended to make the annual remittance payments required under the controversial legislation named AB1x 27. They didn’t, but the vote was close. Both Mayor Larry Forester and Vice Mayor Tina Hansen voted in favor of the resolution. Councilmember Ed Wilson voted against it.
“I personally agree, think that we need a redevelopment agency, so I’m not voting to eliminate it. But I just don’t think we need to act right now,” Wilson said in an interview Tuesday.
Wilson stated that the Court said that they would give the cities time if it ruled in favor of the state’s redevelopment legislation. He also disputed the required amount that the City would have to pay since those numbers were based on state estimates.
Wilson’s dissenting vote surprised the mayor, who described the resolution as a “prudent” move. Language in the resolution specifically describes an intent to pay. And just to be clear, no one said Tuesday that they liked the idea of paying the state millions of dollars. Neither Wilson nor Forester called this potential financial obligation a “voluntary” payment.
“This is basically just saying to the State on the AB1x 27 that we have intentions of keeping our agency and that we’d be willing to pay the ‘ransom,'” Forester said Tuesday night after the Council meeting. Forester also emphasized the importance of redevelopment to the City.
Signal Hill’s RDA has been responsible for affordable housing projects and for numerous projects to develop land with abandoned oil wells.
“We would not be the City we are today if it was not for redevelopment. Everything in the city has been built by redevelopment. You cannot afford to clean up contaminated oil and petrochem land, and close in wells without somebody paying the tag,” Forester added. (Petrochem land refers to land contaminated by petroleum and petroleum by-products.)
Farfsing said that the failure to pass the resolution was a “risk,” even if the Court had put a stay on enacting the resolution until a decision had been made.
“I mean, we know that the courts are inconsistent at best at times, so I guess our concern at the staff level is we wanted to make sure that the agency was protected and the City [was] protected.” Farfsing said Tuesday.
Both Forester and Vice Mayor Hansen acknowledged that there was the possibility of calling another special Council meeting so that all five councilmembers can address the redevelopment resolution again. Indeed, the mayor’s office called the Signal Tribune Thursday, confirming that there will be a special meeting at 5pm Tuesday, Sept. 27.
“It would be foolish to put ourselves in a position where we could ever risk dissolution of the redevelopment agency,” Hansen said Tuesday night.
Hansen said she believes that the explanation of what was at stake may not have been communicated effectively to Wilson, but she also added that her fellow councilmember was really on the side of keeping redevelopment.
“I know that Councilmember Wilson would never do anything to jeopardize the redevelopment agency,” Hansen said. “So, if there’s a problem, you know, hopefully it can be fixed, because he’s as committed to it as we are.”
Other City Council highlights:
SCE Connie Turner of Southern California Edison presented the City with an appreciation resolution. SCE is celebrating its 125th anniversary.
Sustainability Award Mayor Larry Forester presented the Third Quarter Sustainability Award to Kluger Architects. Project manager Craig Prestininzi accepted the award on behalf of Kluger Architects.
Library donation Jorge Lopez presented a contribution to the Signal Hill Public Library to purchase young-adult books. A recipient of the 2011 Rotary Service Above Self Award, Lopez volunteered more than 1,800 hours to the library.
Food trucks The City Council voted in a second reading to approve an ordinance that would amend the municipal code regulating food truck events held on private property. The ordinance establishes requirements surrounding the size of the events, paving requirements, licensing and compliance with County health code standards.
Street trees After taking a first-reading vote, the City Council adopted an ordinance that would amend the municipal code governing city-owned trees in the public right-of-way. The ordinance would enable the City to establish standards addressing the replacement, removal and care of these trees. According to a report from the public works director, the municipal code would not apply to trees located in city parks or on private property.
Abandoned Oil Well Urgency Ordinance The City Council voted to extend the interim urgency ordinance that addressed development on properties with abandoned and re-abandoned oil wells. The ordinance was initially adopted in August to provide interim standards for construction on these properties after the State Division of Oil, Gas and Geothermal Resources (DOGGR) notified the City that they would end their methane leak testing, development site plan review and well certification process.
PoliceReports.US The City Council voted to authorize the police chief to enter into a one-year contract with PoliceReports.US, which would provide online public access to accident reports. For a fee, users can access online information on specific traffic accident reports based on the City’s police records. The Council requested that PoliceReports.US would agree to remove information from the company’s database if the City terminated the agreement. The information would be limited to accident reports generated by the Signal Hill Police Department, according to Police Chief Michael Langston. The police department would not release crime reports to the service provider.
The next Signal Hill City Council meeting will beTuesday, Oct. 4 at 7pm in the Council Chambers.
