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HomeMy WebLinkAbout1984/04/26 - Minutes - Adourned April 26, 1984 CITY OF RANCHO CUCAMONGA CITY COUNCIL MINUTES Adiourned Meeting with Parks Advisory Committee CALL TO ORDER An adjourned joint meeting of the City Council with the Parks Advisory Committee was held on Thursday, April 26, 1984, in the Lions Park Community Center, 9161 Base Line Road. The meeting was called to order at 7:35 p.m. by Mayor Jon D. Mikeis and Chairman Pam Henry. Present were: Councilmembers: Pamela J. Wright, Charles J. Buquet II, Richard M. Dahl, Jeffrey Ring, and Mayor Jon D. Mikels. Park Advisory Committee Members: Peter Pitassi, Livia Vallance, and Chairman Pam Henry. Also present: City Manager, Lauren M. Wasserman; City Attorney, Robert Doughstry; Finance Director, Harry Empey; Community Services Director, Bill Holley. Absent: Park Advisory Committee Members: Sam Punter and Leslie Riggs. ANNOUNCEMENTS Mr. Wasgerman requested a Closed Session with the Council upon adjournment of the special meeting. Request was granted. PURPOSE OF M~ETING Bill Holley reported that the purpose of the joint meeting was for the presentation of the Mello-Roos Implementation Plan Feasibility Study to the Council and the Committee. Mr. Holley introduced Ron Paige of Recreation Systems, Inc., consultants for the design of Heritage and Red Hill Basin Parks. Mr. Paige presented Council and Committee with the site plans for Heritage Park and Red Hill Basin Park. Funding for the development of these parks (to include acquisition of Red Hill Basin Park) is the proposed target for the Mello-Roos program. Committee member Leslie Riggs arrived at 7:40 p.m. Mr. Paige reported that each of these parks were designed by a separate community task force comprised of a cross section of the com~nunity. Mr. Holley introduced John Brown of Best, Best & Krieger, Bond Counsel for this project. Mr. Brown explained that the Mallo-Roos Community Facilities Act of 1982 is an enabling Act authorizing the creation of a legally constituted governmental entity to be used as a vehicle for providing acquisition and development of certain public facilities. Mr. Brown reported that not only does Mello-Roos provide for electorate approved establishment of a Co~mnity Facilities District, but can also provide authorization for that District to sell bonds, providing immediate capital for specific projects, and to levy a special tax to retire the bonds. City Council Minutes April 26,198~ PaSs 2 Mr. Brown reported on the necessary steps involved prior to creation of the District as follows: Development and/or acquisition projects must be These projects are currently defined as development acquisition/development of Red Hill Basin Park. specifically defined. of Heritage Park and Costs for these projects must be estimated. Total project cost is currently estimated at $5 million. District boundaries must be established. Boundaries currently proposed: beZinnlng at Haven and Foothill, proceed along Foothill easterly consistent with the Industrial Specific Plan to Ktiwanda. South on Etiwands to Arrow, east alon~ Arrow to city limits. At that point, boundary is contiguous to southern, western and northern City limit boundaries to a point where the boundaries intersect at Highland then west to deer Creek Flood Control Channel, south along the channel to the Southern Pacific Railroad, west of Base Line Road, then south to point of origin. A public hearin8 receiving testimony regarding establishment of the District, levy of tax and sale of bonds must be held. This public hearing is triggered by a request by two or more Councilmembers or a Council Resolution of Intent to form a Community Facilities District and authorize that District to levy a special tax. (If the District intends to sell bonds, this request must be made at the same time). After the public hearing, the formation of the District, levy of tax and sale of bonds must go before the electorate (located within the proposed boundaries) within 90-180 days. Mr. Brown cautioned Council on the possible effects of the Jarvia Bill, to be put before the electorate in November. The Jarvia Bill, if passed, may have the effect of nullifying a Mello-Roos taxation based on ownership of land. A second caution concerns an apparent Mello-Reos regarding special elections. hoped for in a clean-up bill this June. conflict between the Election Code and Clarification of that conflict is Mr. Holley introduced Larry Rolapp of Fieldman & Rolapp, bond consultants. Mr. Rolapp explained the cash flow connected with formation of a District as follows: First, define the debt. Second, define the amount and method of payment per parcel. Third, collect the revenue from the tax rolls. He further explained that the $5 million construction cost estimate translates to a $7.5 million pay back. This $7.5 million includes the monies needed to pay all costs associated with a bond issue and a reserve fund that can be used to pay debt prior to collection of taxas if needed. Mayor MikeIs asked Mr. Rolapp if the Mello-Roos issue could be hampered because of possible effects of future legislation. Mr. Rolapp suggested that future legislation always carries the possibility of concern. Councilmember King asked Mr. Rolapp if a bond issue is preferred to an assessment district. Mr. Rolapp explained that the chief benefit of bond sales over assessment levies is that the revenue is produced immediately on the sale of the bonds. A benefit assessment district only allows the monies to be generated on an annual basis from the property tax rolls. Thus, the sale of bonds will guarantee available monies for imediate acquisition and/or development at today's dollar value rather than a "pay as you go' plan such as would be allowed by a benefi~ assessment district. Councilmember King questioned the possible effects on assessment districts should new legislation be enacted. Mr. Dougherty, city attorney, reported that various assessment district laws currently exist and any new legislation would be overlaid on existing laws for determination. It is feasible that a 2/3 vote of the electorate could be required to establish an assessment district. Councilmember Wright asked Mr. Rolapp if an area of benefit must be defined. Mr. Rolapp explained that an area of benefit is defined by the boundaries of the District. City Council Minutes April 26, 1984 Page 3 Council and Committee discussed the time frame allowed regarding public hearing process and the election date. Mr. Brown and Mr. Rolapp reported that to insure all legal requirements have been met, the preferred method is to have the entire election process judicially validated. Chairman Henry asked for an opinion on the feasibility of having a special election prior to November. It was the consensus of the Council and Committee that holding a special election prior to November would be premature. Bill Holley introduced Bob Merrell of Hilldan & Associates. Mr. Merrell explained the proposed taxing formula. In the proposed formula there is a direct relation to benefit received by park improvements and costs required to meet debt obligation. This proposed formula calls for contributions from all taxable parcels of land and has been based on land use information obtained from the County Assessor's office. Emphasis for repayment of the debt has been placed on residential parcels containing one or more dwelling units per acre. Mayor MikeIs asked Mr. Martell what amount of property tax the average home owner would be charged. Mr. Herrell reported that the average home owner would be charged a maximum tax of $35 annually, He further explained that the home owners not within that $35 category would be charged on a sliding scale of a minimum tax of $17.50 per year and a maximum tax of $875 per year. Mr. Herrell explained that the sliding scale would affect less than lI of the property owners within the City. Discussion was held on proposed District boundaries. It was explained that the planned communities of Victoria and Tetra Vista have been excluded from the District as their development plans call for adequate park space to serve the residents in those areas. Mayor Mikeis and Chairman Henry suggested that development of adequate park space to serve that entire area may not be a correct assumption at this time. Mr. Herrell explained that boundaries do not have to show direct benefit and that the proposed boundaries could be changed to include areas not currently shown to be within the proposed District. He suggested that a logical approach to defining the boundaries would be to include the supporters of the issue. Councilman Buquet suggested that voters south of 19th Street would not vote favorably for Heritage Park. Mr. Herrell reported that voters would not be voting on specific park sites, but rather the overall project scope which includes Heritage and Red Hill Basin Parks. Staff explained that each park will need $2.5 million for development, each park is general use in nature and each park was designed by a citizen design group and addresses the local needs of each. Chairman Henry asked Mr. Martell how the taxing formula is justified when some parcels are charged at a higher rate. Mr. Herrell explained that for the formula to be defendable to the electorate, all taxable property within the District boundaries must be taxed, including industrial, commercial and very low density areas. Mayor MikeIs asked staff what they considered appropriate action for the Council to take at this meeting. Sill Holley suggested that Council digest the results of the feasibility study they were presented with and perhaps consider asking the Park Advisory Committee and the Advisory Commission for recommendations regarding this issue. Councilmember King reported on possible problems associated with the boundaries as proposed in that some voter groups within the District may not vote in favor of an increase in taxes. Councilmember Hright requested an opinion regarding the scheduling of the election. Councilmember Dahl suggested that entire issue of a bond election should not come from the Council or Committee, but rather a grass roots movement from the general public. It was the consensus of both the Council and the Committee that a grass roots movement to try for a bond election for the Mallo-Roos program would be necessary for the issue to be approved by the electorate. City Council Minutes April 26,198~ Page 4 Co~mittee member Pitassi reported that he was in basic agreement with the taxing formula and the maximum price per average dwelling unit being $35. He further stated that the need for development of these two parks is evident and the only apparent way of funding would be a bond issue. Committee member Vallance left the meeting at 9:19 p.m., not to return. Councilmember Dahl suggested that further discussion of the Mello-Roos issue he abandoned at this time and that the entire issue he left to a grass roots movement from residents. Mayor Mikels stated that the Council is already involved as it will he Council's decision on whether to commit to the expense of an election. Mayor Mikels requested staff to prepare an analysis framing the issues to he considered (boundaries, taxing formula, election timing and direction of the grass roots movement). This analysis is to be sent in addition to the minutes of this meeting. Another meeting will he scheduled within the next month to discuss staff's analysis. (2) ADDED ITBN Councilmember Dahl requested that an ordinance be prepared for presentation at the May 3 Council meeting establishing a Park Advisory Commission. Councilmember Buquet stated he thought this matter should be addressed at a future meeting as it would be too late for consideration at the May 3 meeting. Mr. Wasset-man reported that the agenda for the May 3 meeting has already been processed. Councilmember Dahl requested Mr. Wasserman to prepare the ordinance as an add item for the Pay 3 meeting. Councilmember Buquet reiterated that he felt discussion of the ordinance was inappropriate at this time. ACTION: Ordinance is to be prepared by staff and submitted as an add item for the May 3 Council meeting. MOTION: Hoved by Riggs, seconded by Pitassi, to adjourn. Hotion carried unanimously. Chairman Henry adjourned the Parks Committee Meeting at 9:25 p.m. MOTION: Moved by Buquet, seconded by Dahl to adjourn to a Closed Session, not to reconvene. Hotion carried unanimously. Mayor Mikels adjourned the meeting at 9:25 p.m. Respectfully submitted, Mary Whitney Coumunity Services Department