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Home My WebLink About24 LEGISLATIVE REPORTS (EMINENT DOMAIN & 714 AREA CODE) 02-05-07 AGENDA REPORT MEETING DATE: FEBRUARY 5,2007 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: CITY CLERK'S OFFICE SUBJECT: LEGISLATIVE REPORTS SUMMARY: Attached are the following legislative items for discussion by the City Council. . ACA 2: California Constitutional Amendment - Eminent Domain (Walters) and other Redevelopment and Eminent Domain related bills. . Area Code 714 Split: Public Utilities Commission is continuing to hold a series of public meetings to discuss which alternative(s) will be adopted. Staff is continuing to monitor the following and will report back to Council: . Urban Casinos - There are several state and federal bills being considered pertaining to urban casinos. Staff will follow up with a report at the next regularly scheduled Council Meeting. RECOMMENDATION: Pleasure of the City Council. FISCAL IMPACT: None. Maria R. Huizar Chief Deputy City Clerk AGENDA REPORT MEETING DATE: FEBRUARY 5,2007 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: REDEVELOPMENT AGENCY STAFF SUBJECT: REDEVELOPMENT/EMINENT DOMAIN RELATED BILLS SUMMARY A summary of recently adopted redevelopment/eminent domain related legislation is summarized along with newly introduced redevelopment/eminent domain related bills. RECOMMENDATION Pleasure of the City Council. FISCAL IMPACT If ACA 2 is adopted and a constitutional amendment is successful, some escalation in property acquisition costs may occur and the City or Agency will be prohibited from transferring any acquired property to a private party or entity. ACA 2 would preclude acquisition, except for a stated public use and not without consent of an owner for economic development, increasing tax revenue or other private use, or for maintaining a present use with a different owner. Acquisition costs can also be expected to escalate with this proposed legislation. BACKGROUND The Agency thought it would be helpful to review redevelopment/eminent domain related bills currently proposed, recently adopted during the 2006 Legislative Session, recently signed by the Governor, or new proposals for 2007 2006 Legislative Session Redevelopment/Eminent Domain Bills . AB 773 (Mullin-D). AB 773 provides all voters with 90 days to gather signatures to qualify a referendum challenge to a redevelopment ordinance eliminating past laws which differentiated between big cities and small cities (small cities less than 500,000 in population only had a 30-day time frame). . AB 782 (Mullin-D). AB 782 removes the exception for "antiquated subdivisions from the definition of physical and economic blight in the Health and Safety Code as a stand alone condition of blight. . SB 1206 (Kehoe-D). The provisions of SB 1206 tightens the definition of blight including elimination of "high turnover rates" and "impaired investments" as indicators of economic blight, and/or "other similar factors". The bill requires submittal of additional reports to Department of Finance including projections of tax increments, as well as project population changes and number of school age children during the 35-year life of a project, agencies must reimburse school districts for the costs of developing this information. The Attorney General and Department of Finance are named as interested parties in any challenges to plan adoptions and amendments. Removal of "antiquated subdivisions" as a stand alone condition of blight requires blight findings to be based on "clearly articulated and documented" evidence; extends to all cities and counties the requirements that a referendum of plan adoption, amendment or modification be submitted within 90 days of the adoption of the ordinance; prohibits use of tax increment for land acquisition, related site clearance, and design costs in construction of a city hall or county administration office; and, for those mergers of project areas which are not contiguous, it requires that substantial blight must be found to remain within one of the. project areas and that the blight cannot be eliminated without the merger. . AB 1893 (Salinas-D). A8 1893 extends the prohibition on use of a tax increment for construction of a city hall or county administration building to also include acquisition of land upon which such a building is to be constructed. . SB 53 (Kehoe-D). SB 53 requires that all redevelopment plans containing eminent domain authority adopted after January 1, 2007, must include a description of the agency's program to acquire property by eminent domain. For all existing redevelopment plans containing eminent domain authority adopted prior to January 1 , 2007, an ordinance must be adopted on or before July 1 , 2007 describing the agency's program to acquire real property by eminent domain. Once the agency's eminent domain program is adopted, either as part of a new plan or in connection with the ordinance required to be adopted for existing plans, the eminent domain program may be changed only by amending the redevelopment plan pursuant to the normal plan amendment process in Article 12 of Community Redevelopment Law. . SB 1210 (Torkalson-D). SB 1210 amends sections of the eminent domain law applicable to all "public agencies" that use eminent domain to contain the following provisions: makes it more difficult and time-consuming to obtain orders of immediate pre-judgment possession (exception is provided for public utilities in the event of an emergency); adds a definition for litigation expenses, "reasonable attorneys fees and costs, including reasonable expert witness and appraiser fees (current practice). Following a notice of condemnation or an offer to purchase "under threat of eminent domain", the bill requires the public agency to pay for an independent appraisal of the property by a licensed appraiser with a cost capped at $5,000; prohibits an officer whose is also a member of the governing body of an organization that has an interest in, or to which the public agency may transfer an interest in, property that the public agency may acquire by eminent domain from voting on any matter affecting that organization; requires that an amendment to extend the time limitation on exercising the power of eminent domain requires findings of substantial remaining blight and that the blight cannot be removed without use of eminent domain. . SB 1650 (Kehoe-D). SB 1650 requires a public agency to lease a condemned property to the original owner if the entity is not going to use the property for a public use for the next two years. In additio"n, if a public agency takes private property for public use, but later decides to use the condemned property for another public use, the bill requires a two-thirds vote by the agency's governing body. If the agency fails to justify the change in public use, the agency is required to offer a first right of refusal to sell the property back to the original property at an affordable price. If the condemned property was a single-family residence and owners were low or moderate income, the bill requires the agency to sell the property back to the original property owners at the acquisition price. If the original owner declines the first right of refusal, the agency would be required to sell the property as surplus property with any financial gain paid to the former owner. The bill also outlines what constitutes a diligent effort by a public agency in locating the former owner. . SB 1809 (Machado-D). SB 1809 amends the current requirement that a legislative body record a statement upon adoption of a redevelopment plan to reflect that property is located within a redevelopment project area, adding a requirement that recordation take place within 60 days and requiring a statement be added on whether the plan authorizes the use of eminent domain and what limitations are imposed on that use. The requirements of this Bill also apply to existing redevelopment plans adopted on or before December 31, 2006. In order to comply with these requirements, on or before December 31, 2007, agencies must record a revised statement for the redevelopment plan containing the additional information described above. The revised statement must be adopted before an agency may commence any action in eminent domain. 2007 Leaislative Session Redevelopment/Eminent Domain Related Bills . SCA 1 (McClintock-R). SCA 1 is a resolution to propose an amendment to the California Constitution relating to eminent domain. The measure would provide that private property may 'be taken or damaged only for a stated public purpose, and not without the consent of the owner for purposes of economic development, increasing tax revenue, or any other private use, or for maintaining the present use by a different owner. The measure would require the property acquired in eminent domain be owned and occupied by the condemner, except as specified, and be used only for the public use stated at the time of the taking, If the property ceases to be used for the stated public use, the former owner would also have the right to reacquire the property at its fair market value. The measure would also require the county assessor, upon property being so acquired, to appraise the property for purposes of property taxation as its adjusted base year value as had been last determined at the time the property was acquired by the condemnor. "Just compensation~ would be defined for purposes of condemnation and specify the scope of review in an action challenging the validity of the taking. SCA 1 has been assigned to the Judiciary Committee and the Elections, Reapportionment and Constitutional Amendments Committee but has not yet been heard. The League of California Cities and California Redevelopment Association have taken positions opposing the Bill. . ACA 2 (Waters-R). ACA 2 is a resolution to propose an amendment to the California Constitution relating to eminent domain. The measure would permit private property to be taken or damaged, only for a stated public purpose and only when just compensation has been paid to, or into court for, the owner of the property. The measure would prohibit, with respect to both new and pending eminent domain projects that involve the exercise of the power of eminent domain, a community redevelopment agency, community development commission, or joint powers agency from exercising the power to acquire any real property if ownership of the property will be transferred to a private party or private entity, except as specifically specified. ACA 2 has not yet been assigned or heard in committees. The League of California Cities and California Redevelopment Assoc.iation have taken positions opposing the Bill. Christine A. Shingleton Assistant City Manager 4 AGENDA REPORT MEETING DATE: FEBRUARY 5,2007 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: LISA WOOLERY, COMMUNICATIONS MANAGER SUBJECT: 714 AREA CODE SPLIT SUMMARY: The CPUC (California Public Utilities Commission) is running out of phone numbers for the 714 area code and is planning to split the 714 area code and add 657. Currently the CPUC is offering three alternatives to divide the area code. RECOMMENDATION: Pleasure of the Council. FISCAL IMPACT: Unknown at this time. If either Alternative #4 or #6 were chosen and Tustin was in the area where 714 was changed to 657, the City would incur costs changing business cards, letterhead, advertisements, databases for water bills, etc. BACKGROUND: Phone numbers in the 714 area code are running out so the CPUC (California Public Utilities Commission) is planning on splitting the area code and assigning the 657 area code to an area that encompasses approximately 500/0 of the assigned numbers. The CPUC is requesting public comments regarding how the current 714 area code will be divided. There are three options to be considered: Alternatives #4 and #6 will reduce the size of the 714 area code region by splitting it in half, considering the amount of phone numbers assigned in the PUC's phone number prefix areas. Municipal boundaries will not be considered. The decision as to which area will retain 714 and' which will change to 657 has not yet been determined. Alternative #4 this alternative will split Tustin. A very small portion of the northern area of the City will be assigned the alternate area code. Alternative #6 this alternative will split Tustin. Two very small portions of the northern area of the City will be assigned the alternate area code. Page 2 Alternative #5 does not propose a regional split, but an overlay. An overlay requires all new number requests in the current 714 be assigned with the 657 area code. Different area codes could be assigned to numbers at the same business or home. NOTE: Long distance calling charges will remain the same no matter what alternative is chosen. It will not be a long distance between 714 and 657. Lisa Woolery Communications Manager Attachments: Map of Alternative #4 Map of Alternative #6 FAQs (published by the CPUC) ~ "'C en t: Q) ~f", ~ Q) .~ \. "..,~~ C) l:l C Q) en ~ ...J .~ 0 .... OJ "\. 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Why is another area code needed? . Whole prefixes are running out in the existing 714 area code. Once an area code no longer has any whole prefixes, it is considered to be at exhaust. The available telephone numbers in the 714 area code are limited and cannot support the needed demand for telephone numbers in the long- term. 2. What will the new area code be? . The new area code will be the 657 area code. 3. Will I be affected by the area code change? . If you have a telephone number with the 714 area code, you will be affected by the area code change regardless of the area code change option implemented. . If the CPUC implemented an area code overlay, but you do not have a telephone number with the 714 area code; and you work, live, go to school, in the geographical region of the 714 area code, you will be affected. 4. Who will get the new area code? . The CPUC has not decided which region will receive the new area code if an area code split is implemented. . Those consumers who order new telephone numbers or services will receive the new area code if the CPUC implements an area code overlay. 5. What is an area code split? . Traditionally, area codes have been split to provide more prefixes for the telecommunications industry and its customers, creating smaller geographic areas. Area code splits create new area codes by splitting a geographical region in multiple ways. Only one area code is assigned to a particular geographical region. Some people will be able to retain the 714 area code while others will have to change their area code to the new 657 area code. 6. What is an area code overlay? . An area code overlay is a form of area code change that adds area code(s) to the same geographic region. Therefore, multiple area codes co-exist within the same geographic region. People with telephone numbers with the 714 area code will retain their current telephone number(s) and area code. People who would like to have new or additional telephone numbers or telecommunications services may be given telephone numbers with the new 657 area code. 7. Will I have to change my telephone number or area code? . If an area code split is implemented then some people will have to change their area code to the new 657 area code. This depends on the rate center associated with the telephone number. Check out the list of prefixes associated with a particular rate center called Prefix and Rate Center List. . If an area code overlay is implemented then people will be able to retain their current telephone number and area code. 8. When will telephone numbers with the new 657 area code be available? . Telephone numbers with the new 657 area code will be available after the implementation of the area code change is completed. Page I of 4 Common Questions and Answers 714 Area Code 13. How will customer directory listings be impacted? . The telecommunications industry will be updating the directory listings in the white pages for all affected communities to identify the associated area code of a telephone number. Individual customers are responsible for any changes to listings appearing in other directories. Each customer is responsible for telephone numbers appearing in any display advertising. 14. What can individuals do to prepare if the CPUC decided to implement an area code split? . Reprogram equipment or features, i.e. automatic dial, speed-dial, call forwarding, modems for computer or internet dial-up access, etc. programmed to dial the new 657 area code if you received the new area code. . Update items like stationary, checks, etc. to include the new 657 area code if you received the new area code. . Teach families, friends, etc. to dial the new 657 area code if you received the new area code. . When asking for someone else's number, remember to ask for the area code too. . Check with your service provider if manual or over-the-air reprogramming of your cell phone is needed to account for the new 657 area code if you received the new area code. 15. What can individuals do to prepare if the CPUC decided to implement an area code overlay? . Contact security or alarm vendors to update dial-up numbers to avoid a break in security routines and contacts. . Reprogram equipment or features, i.e. ~utomatic dial, speed-dial, call forwarding, modems for computer or internet dial-up access, etc. programmed to dial seven digits to dial "I " + area code + telephone number. . Update items like stationary, checks, etc. to include your area code + telephone number. . Start thinking of dialing the area code + telephone number for all calls. . Teach families, friends, etc. to dial the area code + telephone number for all calls. . Give your area code + telephone number, not just the telephone number, as needed. . When asking for someone else's number, remember to ask for the area code too. . Remember that the 714 and 657 area codes co-exist within the same geographic region. . During implementation of the area code overlay, businesses with telephone numbers with the 714 area code should do the following: ~ Notify alarm service providers of all appropriate area code + telephone number(s) so alarm service records and equipment can be updated as needed. ~ Ensure security door and gate systems are reprogrammed to dial "1" + area code + telephone number. ~ Reprogram any call-forwarding, automatic-dial or speed-dial features to dial "I " + area code + telephone number. ~ Test telephone equipment to determine if it can dial and receive" 1 " + area code + telephone number. Questions regarding changes in telephone equipment should be directed to telephone equipment vendors. ~ Update items like stationary, checks, business cards, advertisements, promotional items, brochures, internet web pages, catalogs, etc. to include your area code + telephone number. ~ Teach employees, coworkers, customers, etc. to dial the area code + telephone number for all calls. ~ Give -your area code + telephone number, not just the telephone number. Page 3 of 4