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HomeMy WebLinkAbout1993/04/07 - Minutes April 7, 1993 CITY OF RANCHO CUCAMONGA CITY COUNCIL MINUTES Regular Meeting A. CAI.I, TO ORDER A regular meeting of the Rancho Cucamonga City Council was held on Wednesday, April 7, 1993, in the Council Chambers of the Civic Center, located at 10500 Civic Center Drive, Rancho Cucamonga, California. The meeting was called to order at 7:00 p.m. by Mayor Dennis L. Stout. Present were Councilmembers: William J. Alexander, Charles J. Buquet II, Rex Gutierrez, Diane Willjams, and Mayor Dennis L. Stout. AIso present were: Jack Lam, City Manager; James Markman, City Attorney; Brad Buller, City Planner; Cathy Morris, Planning Technician; Joe O'Neil, City Engineer; Mike Olivier, Sr. Civil Engineer; Cindy Hackett, Associate Engineer; Walt Stickney, Associate Engineer; Joe Stofa Associate Engineer; Tom Neely, Engineering Aide; Richard Camllo, Public Works Inspector II; Katie Freeno, Public Service Technician; Louise Lantz, Office Specialist II; Bob Dominguez, Administrative Services Director; Susan Neely, Finance Officer; Jim Frost, City Treasarer; Tony Flores, Management Analyst I; Debra Harem, Administrative Secretary; Rhonda Sullivan, Office Specialist II; Chuck Varney, Sr. Business License Technician; Brigit Tate, Risk Management Analyst; Mary Kuhn, Personnel Analyst I; Suzanne Ota, Community Services Manager; Duane Baker, Assistant to the City Manager; Diane O'Neal, Management Analyst II; Susan Mickey, Management Analyst I; Chief Dennis Michael, Rancho Cucamonga Fire Protection District; Capt. Bruce Zeiner, Rancho Cucamonga Police Department; and Jan Sutton Deputy City Clerk. B. ANNOUNCEMENTS/PRESENTATIONS B 1. Presentation of Proclamation recognizing the week of April 18 - 24, 1993 as Volanteer Week. Mayor Stout presented the proclamation to Susan Mickey, the City's volunteer coordinator. B2. Presentation of Proclamation designating April 1993 as Fair Housing Month and recognizing the winner of the Fair Housing Poster Contest from Rancho Cucamonga. Mayor Stout presented the proclamation to representatives from the Equal Housing Committee of the Inland Empire West Board of Realtors and Inland Mediation Board who advised that all five winners came from Summit Elementary School. City Council Minutes April 7, 1993 Page 2 (3) (4) C. COMMUNICATIONS FROM THE PUBI,IC No communications were made from the public. D. CONSENT CAI.ENDAR DI. Approval of Minutes: February 27, 1993 March 3, 1993 March 12, 1993 (Buquet, Williams absent) March 17, 1993 D2. Approval of Warrants, Register Nos. 3/10/93 and 3/17/93 and Payroll ending 3/11/93 for the total amount of $1,086,057.00. D3. Alcoholic Beverage Application for On Sale General Eating Place for Yamafuji Japanese Restaurant/Mandarin Garden, Evergreen Imperial, Incorporated, 8034 Haven Avenue. D4. Alcoholic Beverage Application for Off Sale Beer & Wine for Shop N Go, Ruth Doureghali and Albert Sanan, 10110 Foothill Boulevard. D5. Alcoholic Beverage Application for On-Sale Beer & Wine Eating Place for Volume Services, Volume Services, Incorporated, 8408 Rochester Avenue. D6. Alcoholic Beverage Application for Off-Sale Beer & Wine for Stop N Shop, Jamal and Majida Shehadeh, 8694 Arrow Highway. D7. Approval to seek bid proposals to resurface equestrian arenas at Heritage Park. (0601-01 BID) D8. Approval to destroy records and documents which are no longer required as provided under Govemment Code Section 34090. (0304-00 REC MGMT) RESOLUTION NO. 93-063 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING THE DESTRUCTION OF CITY RECORDS AND DOCUMENTS WHICH ARE NO LONGER REQUIRED AS PROVIDED UNDER GOVERNMENT CODE SECTION 34090 D9. Approval to appropriate $41,000.00 from Fund 09 - "Gas Tax" for the final payment to Lewis Homes for the Street Improvements to Base Line Road in conjunction with the Central Park Land Acquisition. (0401-21 FUND APPRO) D10. Approval to Order the Annexation to Landscape Maintenance District No. 3B and Street Lighting Maintenance District Nos. 1 and 6 for Parcel Number 12 of Parcel Map 13724, located on the south side of Foothill Boulevard between Interstate 15 and Etiwanda Avenue, submitted by Wal-Mart Stores, Incorporated. (0401-03 LNSCAPE MD) (0401-03 ST LT MD) City Council Minutes April 7, 1993 Page 3 RESOLUTION NO. 93-064 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ORDERING THE ANNEXATION OF CERTAIN TERRITORY TO LANDSCAPE MAINTENANCE DISTRICT NO. 3B AND STREET LIGHTING MAINTENANCE DISTRICT NOS. 1 AND 6 FOR PARCEL NUMBER 12 OF PARCEL MAP 13724 DII. Approval to Order the Annexation to Landscape Maintenance District No. 1 and Street Lighting Maintenance District Nos. I and 2 for Parcel Map 13800, located on the south side of Main Street, east of Archibald Avenue, submitted by the Rancho Cucamonga Redevelopment Agency. (0401-03 LNSCAPE MD) (0401-03 ST LT MD) RESOLUTION NO. 93-065 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ORDERING THE ANNEXATION OF CERTAIN TERRITORY TO LANDSCAPE MAINTENANCE DISTRICT NO. I AND STREET LIGHTING MAINTENANCE DISTRICT NOS. 1 AND 2 FOR PARCEL MAP 13800 D12. Approval to execute Usage Agreement (CO 93-023) between Chaffey Community College and the City of Rancho Cucamonga for Use of Recreational Fields at the College, allowing the City to allocate the recreation fields for organized sports usage as well as gymnasium time with a payment of $25,000.00 for the upkeep and maintenance of said facilities. (0602-01 CONTRACT) D13. Approval to execute Improvement Agreement, Improvement Security, Release of Current Faithful Performance Bond and Ordering the Annexation to Landscape Maintenance District No. 3B and Street Lighting Maintenance District Nos. 1 and 6 for Conditional Use Permit 92-19, located at 10807 Jersey Boulevard, submitted by Atco Structures, Incorporated. (0602-01 AGREE IMPR) (0602-01 BOND REL) (0401-03 LNSCAPE MD) (0401-03 ST LT MD) RESOLUTION NO. 93-066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEME~ AGREEMENT AND IMPROVEMENT SECLrRITY FOR CONDITIONAL USE PERMIT 92-19 RESOLUTION NO. 93-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ORDERING THE ANNEXATION OF CERTAIN TERRITORY TO LANDSCAPE MAINTENANCE DISTRICT NO. 3B AND STREET LIGHTING MAINTENANCE DISTRICT NOS. 1 AND 6 FOR CONDITIONAL USE PERMIT 92-19 D14. Approval to execute Improvement Agreement Extension for Tract 13279, located on the south side of Highland Avenue between Rochester Avenue and Miiliken Avenue, submitted by The William Lyon Company. (0602-01 AGREE EXTN) (6) (7) (8) City Council Minutes April 7, 1993 Page 4 (9) (io) (ii) (i2) (13) RESOLUTION NO. 93.068 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 13279 D15. Approval to execute Improvement Agreement Extension for Tract 13280 Landscape located on the northwest corner of Base Line Road and Rochester Avenue, submitted by The William Lyon Company. (0602-01 AGREE EXTN) RESOLUTION NO. 93-069 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 13280 LANDSCAPE D16. Approval to execute Improvement Agreement Extension for Tract 13281 Landscape, located on the north side of Base Line Road between Rochester Avenue and Milliken Avenue, submitted by The William Lyon Company. (0602-01 AGREE EXTN) RESOLUTION NO. 93-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 13281 LANDSCAPE D17. Approval to execute Improvement Agreement Extension for Tract 13351, located on the southwest corner of Mitliken Avenue and Terra Vista Parkway, submitted by Lewis Homes. (0602-01 AGREE EXTND RESOLUTION NO. 93-071 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 13351 D18. Approval to execute Improvement Agreement Extension for Tract 13703, located on the west side of Haven Avenue north of Banyan Street, submitted by Kajima Development. (0602-01 AGREE EXTN) RESOLUTION NO. 93-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 13703 D19. Approval to execute Improvement Agreement Extension for Tract 13750, located on 24th Street and Cherry Avenue, submitted by First City Properties/Metropolitan Development. (0602-01 AGREE EXTN) City Council Minutes April 7, 1993 Page 5 RESOLUTION NO. 93-073 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR TRACT 13750 D20. Approval to execute Improvement Agreement Extension for DR 89-12, located on Feron Boulevard, east of Helms Avenue, submitted by A.W. Davies. (0602-01 AGREE EXTN) RESOLUTION NO. 93-074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR DR 89-12 D21. Approval to execute Improvement Agreement Extension for Parcel Map 10185, located on the southwest comer of Highland Avenue and Milliken Avenue, submitted by The William Lyon Company. (0602-01 AGREE EXTN) RESOLUTION NO. 93-075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR PARCEL MAP 10185 D22. Approval to accept Improvements, Release of Cash Security and Notice of Completion for DR 88-25, located on the northeast corner of 6th Street and Hermosa Avenue. (0602-01 BOND REL) (0704-18 NOT COMPLT) Release: Faithful Performance Cash Security $ 3,200.00 RESOLUTION NO. 93-076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR DR 88-25 AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK D23. Approval to accept On-Site Drainage Facility Improvements, Release of Bonds and Notice of Completion for DR 89-14, located on the south side of Arrow Highway east of the 1-15 Freeway. (0602-01 BOND REL) (0704- 18 NOT COMPLT) Release: Faithful Performance Bond $ 172,000.00 (On-Site Drainage Facility) RESOLUTION NO. 93-080 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACCEPTING THE ON-SITE DRAINAGE IMPROVEMENTS FOR DR 89-14 AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK (x4) (is) (17) City Council Minutes April 7, 1993 Page 6 (20) (2x) D24. Approval to accept Improvements, Release of Bonds and Notice of Completion for Parcel Map 11030, located on the northeast comer of Haven Avenue and Foothill Boulevard. Approval to execute Improvement Agreeanent Extension for the Spruce Avenue Improvements between Foothill Boulevard and Elm Street which are complete except for asphalt street capping. (0602-01 BOND REL) (0704-18 NOT COMPLT) (0602-01 AGREE EXTN) Release Faithful Performance Bond: Haven Avenue from Foothill Blvd. to Deer Creek Foothill Blvd. from Deer Creek to Orchard Ave. Foothill BIrd. and Spruce Avenue Signal Foothill BIrd and Haven Avenue Signals Foothill BIrd. and Aspen Avenue Signal Town Center Dr. from Haven to Spruce Avenues $ 351,682.00 711,607.00 121,000.00 44,000.00 121,000.00 No Bond RESOLUTION NO. 93-077 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR PARCEL MAP 11030 (SPECIFICALLY HAVEN AVENUE BETWEEN FOOTHILL BOULEVARD AND DEER CREEK; FOOTHILL BOULEVARD BETWEEN DEER CREEK AND ORCHARD AVENUE; TOWN CENTER DRIVE BETWEEN HAVEN AVENUE AND SPRUCE AVENUE; FOOTHILL BOULEVARD AND SPRUCE AVENUE TRAFFIC SIGNAL; FOOTHILL BOULEVARD AND ASPEN AVENUE TRAFFIC SIGNAL; AND FOOTHILL BOULEVARD AND HAVEN AVENUE TRAFFIC SIGNAL MODIFICATION) AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK RESOLUTION NO. 93-078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING IMPROVEMENT AGREEMENT EXTENSION AND IMPROVEMENT SECURITY FOR PARCEL MAP 11030 D25. Approval to Release Maintenance Guarantee Bond for Tract 13662, located at the southwest comer of Base Line Road and Haven Avenue. (0602-01 BOND REL) Release: Maintenance Guarantee Bond (Street) $ 16,658.00 D26. Approval to Release Maintenance Guarantee Bond for Parcel Map 11891, located on Milliken Avenue between Jersey Boulevard and Arrow Highway. (0602-01 BOND REL) Release: Maintenance Guarantee Bond (Street) $ 225,000.00 D27. Approval to Release Maintenance Guarantee Bond for Parcel Map 12263, located at the southeast comer of Milliken Avenue and Highland Avenue. (0602-01 BOND REL) Release: Maintenance Guarantee Bond (Street). $ 33,600.00 City Council Minutes April 7, 1993 Page 7 D28. Approval to Release Maintenance Guarantee Bond for Parcel Map 13125, located at the southwest comer of Trademark Sixeet and Center Avenue. (0602-01 BOND REL) Release: Maintenance Guarantee Bond (Street) $ 4,400.00 MOTION: Moved by Alexander, seconded by Willjams to approve all staff recommendations contained in the staff reports of the Consent Calendar. March 12, 1993 minutes. No items were submitted. FI. Motion carned unanimously, 5-0, with Buquet and Williams abstaining from the E. CONSENT ORDINANCES F. ADVERTISED PUBI.IC HEARINGS CONSIDERATION TO ADOPT UTILITY USER'S FEE Staff report presented by Jack Lam, City Manager, and Bob Dominguez, Administrative Services Director, who also presented slides illustrating the budget reductions made by the City over the previous three fiscal years. (0401-00 REV & TAX) Mayor Stout asked why banks and other financial institutions were exempt under this proposal. James Markman, City Attomey, stated under California state law financial institutions were exempt from local taxation. Councilmember Buquet clarified that it was estimated that $5 million would be lost this year through the State's proposed budget Bob Dominguez, Administrative Services Director, stated yes. Councilmember Gutierrez asked for clarification on the low income exemption. Bob Dominguez, Adminisu'ative Services Director, stated the exemption levels were determined by the Department of Labor figures for the San Bemardino/Riverside area. Councilmember Alexander stated when they reviewed the Fire Department, they analyzed fu'e fighter positions only for an appropriate comparison. He asked if support staff levels were compared at all. Chief Michael, Fire District, stated they have that data and it compared favorably with sunounding cities, that the ratios were about the same as shown on the bar chart for fire fighters. Mayor Stout opened the meeting for public hearing. Addressing the Council were: City Council Minutes April 7, 1993 Page 8 Mike Eagleson, 10262 Ironwood Court, representing the Rancho Cucamonga Fire Fighters Association, stated the proposed cuts by the State would jeopardize the safety of the citizens of Rancho Cucamonga. He stated they currently have a higher ratio of residents to fire fighters than any surrounding city, and a reduction in personnel would have drastic consequences. He stated demands placed on fire fighters were greater than ever, with their duties encompassing medical response, technical rescue and haTardous materials mitigation, as well as fire fighting duties. He felt the residents deserved protection, and encouraged the Council to continue putting public safety as their first priority. Eliza Harms, 6634 Eggleston Place, asked the Council to keep the rate at the lowest percentage possible in consideration of the effects of the recession on the citizens, and suggested the City' look at maximizing revenue generating sources already in place. She stated there is a proposed assembly bill which would repeal the bank taxation burden so that cities could tax banks. She asked that the Council keep in mind the residents that might be just above the exemption levels that would have to make hard decisions on where else to cut if the tax percentage were too high for them. Dennis Bishop, 7363 Greenhaven Avenue, read a prepared stated which is on file in the office of the City Clerk, that went over areas where he thought there were discrepancies in the budget and ways the City could cut expenditures. He proposed that for every dollar the City raised in tax revenue, they should cut expenses by $.50. Peter Bryan, 9466 Hillside, stated there should be a cap on the tax for residential as well as commercial users. He felt a sunset clause should be considered, and to be sure and only fund primary services. He did not feel they should have an animal shelter or library at this time, and wondered why public agencies were exempt from this tax. He felt the Council should ask the community what public safety levels they wanted and how much they would be willing to pay for that service. He stated he supported the tax for increasing public safety services, but urged the Council not to use emergency services as a scare tactic for raising revenues, and not to fund any other new services at this time. Brent Rivard, 10186 Lemon, representing Cucamonga Citizens Coalition (CCC), stated they were concerned about accountability on the part of the City. He stated they wondered how the City accumulated the debt they were in, why they were talking about spending for services such as a library when there was a crises that would require the levying of a mx to solve, and to have limits for the proposed tax in the form of a sunset clause. He felt the process for enacting this tax needed to change to allow more taxpayer involvement, and that there should be special elections for all tax issues. He also felt if the tax were passed, people should look at changing the charter to allow the audit process to take place and eliminate the problem. He felt there were not enough incentives for technical business to locate to the community, and that they should not keep going back to the business community and taxpayers every time there was a problem. Bill Alexander, 16309 Citrine and also a member of CCC, felt they should not build a library at this time, and charging for licensing of animals besides just dogs would support an animal shelter, then only a 2.25% utility tax would be needed to meet the City's shortfall. He wanted to know if the tax would only be instituted after the State made their cuts, would there be a sunset clause, would adding more code enforcement personnel take care of graffiti without spending $72,000 per year, is the need for the tax caused by overspending, will small business survive the tax, have employees making over $60,000.00 a year had a reduction in pay, and could the charter be changed to require that all tax measures be put on the ballot. City Council Minutes April 7, 1993 Page 9 John BarkIcy, 11000 Jersey Blvd. and controller for Amcast, stated his company will be negatively impacted by the tax. He asked the Council to put a cap on the tax because their manufacturing process requires them to use a lot of utilities. He stated they employ 160 people, and were becoming very concerned about being able to run their business in California. He felt the Council should look at options other than a tax. Rance C!ouse, President of the Chamber of Commerce, referred to the position paper submitted by the Chamber stating they were opposed to the tax at this time. He stated a tax increase has historically never decreased debt and encouraged growth. He felt the City should not enact the tax until the State has taken action, or the surrounding cities have enacted similar taxes so they would be on equal footing when trying to attract new business to the area. He felt the Council needed to take a leadership role in changing the way government operates instead of taking the usual steps. He spoke about problems businesses were experiencing and read from an exit interview with Goodyear Rubber Company. Gary Klinerd, 4895 Archibald, stated he is the Chief Executive Officer of a company that moved to Rancho Cucamonga in 1985. He stated he employs 60 people at his high-tech company, but that he was close to leaving the area because of the cost of doing business in Califomia, and the utility tax would be the final burden to convince him to leave. Douglas Pure, 7970 Layton, stated he was opposed to the tax. He asked if the City enacted street light and park assessment districts in 1992, and if so, he felt the information provided in the pamphlet put out by the City was incorrect when it stated they needed the tax to pay for streets, parks and lights. He was also concerned that the City might have offered some type of tax deal or adjustment to get Wal-Mart to locate in Rancho Cucamonga and that was why they had to make up the difference with a utility tax. He stated people have been hard hit by the recession, and they are already being taxed by other government agencies and would not be able to afford the utility tax. He also questioned why other cities had a larger portion of the County taxes that are collected than Rancho Cucamonga. He felt there could be other alternatives available. David Block, 9408 Lemon, would like to see law enforcement services increase, but did not feel the City was operating as lean as it claimed. He was concerned as the owner of rental property that increased costs of the landlords will be passed on to low-income people who rent from them. Hugh Lansdell, 6153 Sapphire Street, was concerned about another tax because he was on a fixed income. He felt there were other ways the City could raise revenue such as a consumption surtax. Eric Snedeker, resident, stated he believed in paying for what he uses, but was concerned this tax would effect the quality of life for his family. He stated he was opposed to this tax and any other new tax while the recession was having a negative effect on everyone, and was opposed to caps and exemptions because he felt it would create a greater burden for the middle income resident Michael Mitchell, 5271 Turquoise and a CPA in town, stated that businesses in the City are hurting, and he did not know how the City got to this point. He felt if the Council were aware of the problems in the business community, they would not even be considenng a utility tax. Becky Oliver, 10147 Strutton Court, felt the City let her down in regards to the Nordic issue, and asked if they were aware there were three vacant houses in her neighborhood due to foreclosure, and soon to be a fourth one. She felt the City could not afford to watch people walk away. City Council Minutes April 7, 1993 Page 10 Charlie Reno, 5949 Kirkwood, felt the City was being fiscally irresponsible not to have a set proposed rate. He stated it appeared to him to be opportunistic with no controls or accountability, and felt they should address the budget better before enacting a tax. Jeff sceranka, 8990 19th Street, felt people were cynical about this issue because they have not seen any benefits of taxation by the State or Federal governments. He felt the City has planned well since incorporation, but is now suffering at the hands of politicians at the State level. He felt the City needed to control its revenue source and not be at the mercy of Sacramento. He asked the City to allow the community to be part of the solution and have detailed budget workshops for the citizens to help plan the future of the City. He stated the City should create a system to identify available sites for interested businesses and go after targeted employment that will benefit the community, and should also create a business retention strategy. He felt a utility tax will hit the people who create value in Rancho Cucamonga, as well as the business and industry that is already here. He felt a consumption tax would be better than a utility tax. Mike McLannis, 7606 Sandpiper, came to Rancho Cucamonga because it was affordable and he could not afford the taxes he was paying in other areas. He felt he would be taxed out of this area also. Dave Jones, Liquid Air Corporation, Arrow Route, showed a chart listing the power usage at his company. He stated utilities were 70-80% of their cost, and felt the proposed tax was possibly discriminatory to them because of the nature of their processes. He felt his customers in town, as well as his own business, would be at risk if the tax were passed. He stated they would need $3 million in sales to recover the costs paid out in this tax. He stated he would like to work with the City and Chamber of Commerce in coming up with a pro-active solution. Dwight Jerlow, president of Tamco Steel, stated they are the largest energy consumer in the City, and the only steel producer in California. He stated they have been working with Southern California Edison to get a special rate in order to stay competitive while operating in California, and paying this tax would offset any benefit they receive from that. He stated they were opposed to the tax, and wanted to see the City reduce its staffing and costs. Ron Johnson, a resident on Alacon Avenue and business owner in town, stated that government as usual would not suffice any longer. He felt the City had not saved for the future and that it was not fair for the citizens to pay a tax because the City caused its own shortfall. Ede Swistock. 6759 Vanderbilt, read a letter he had submitted to the Council, which is on file in the office of the City Clerk, expressing his opinions on how the tax should be structured and what the funds raised should be used for. He felt that public safety should be protected, but that City services should not expand beyond Fiscal Year 1992/93 levels. Mayor Stout called a rece~ at 9:05 p.m. present. The meeting reconvened at 9:22 p.m. with all members of Council Paul Tamborino, Hartwell Corporation, stated they have been operating in Rancho Cucamonga since 1968 and discussed how the recession has hun his business. He stated he endorsed the position taken by the Chamber of Commerce. City Council Minutes April 7, 1993 Page 11 Dave Langman, Johnson Controls, stated he sympathized with everyone's position due to the economy. He stated that business was based on return on investment, and that they have recently invested $10 million in their company, and trying to compensate for this tax would hun his business. He stated the utility tax might drive them out of Rancho Cucamonga. He stated utilities represented one of the biggest differences in doing business in California as opposed to other states, and that he supported the position of the Chamber of Commerce. Jackie Bolda, 11849 Mt. Gunnison, felt the Council has been very accountable in their actions. She suggested that all churches be exempt from paying the tax, and that they cut the cost for the proposed library by half. She stated she would like the City to continue contracting for animal'control services. She stated she would like to see a sliding scale for families that were just above the low-income exemption level. She would like there to be a sliding cap for industry and to try and have the lowest possible cap. Harold Pierce, Parkhurst Drive in the Terra Vista community, stated citizens wanted the Council to be accountable, and to conduct workshops where citizens could go over the budget. Ray Stuehrmann, 12440 Lily Coun, felt the Council might be out of touch with reality. He felt they were not operating from greed, corruption and inefficiency, etc., like other levels of government are, but that they should listen to the comments made by the public tonight. Mike Cable, 7731 Coca and small business owner in Rancho Cucamonga, felt this tax would make it difficult for him to continue to operate his business in the City. He felt they should make efforts to encourage new business to come into town, which would increase revenues through licensing and sales lax. Tom Shafer, 8361 Vicara and employee of Fasson, which employs 124 people, supported the position of the Chamber of Commerce. He stated that nine companies in Rancho Cucamonga would be paying 25% of the revenues generated by this tax. He stated that Fasson has been struggling over the last couple of years, and this tax might drive them away. Paul Dunn, 8990 19th Sl~eet, stated he was opposed to the tax, and the City should be looking at bringing new business into the community. He felt the Council was not concerned about keeping existing jobs in the City. Lonnie Blank, Terra Vista resident and small business owner, stated she and her husband have considered moving their business to Rancho Cucamonga, but because of the high standards imposed on businesses, they were still debating on it. If the utility tax was passed, they would look elsewhere to relocate their business. Charles Sechrist, 10210 Base Line #264, stated he was a retired senior citizen who came to this community nine years ago. He stated he has never seen a tax that was good for anyone, and that there was waste in all departments. He felt they needed the fire and police departments, but he was opposed to passing the utility tax because his other expenses are constantly going up and they are taxed too much by other levels of government. Gloria Ybarra, 20 year resident, wanted to know what the City has been doing with all the property tax money they have collected since incorporation and the increased growth in the area. She stated she is a single parent supporting a family of four and is employed by a church, and if her employer has to pay this tax, her salary will be cut. She stated she was o. pposed to the tax. There being no further comments, the public hearing was closed. City Council Minutes April 7, 1993 Page 12 Councilmember Alexander stated the Council has listened to the residents tonight and felt there were some valid points made. He stated in the past he has heard from thousands of people in the community that a library is a top priority, but since the people speaking tonight have expressed that now is not a good time for a library, maybe they could do without. He stated the Council has gone to Sacramento to plead the City's case regarding unfunded State mandates, but the State legislators do not care what the effects are on local government. He stated the City has utilized volunteers more than any other stirrounding community, and possibly they could look into using volunteers for operating the animal control facility. He felt that backfilling the state take-aways was necessary, as well as maintaining fire services and increasing police services. He encouraged everyone to participate in the budget process as the Council does hold public workshops. Mayor Stout stated he would not allow public safety levels to go any lower than they currenfiy were. He stated violent crimes were increasing in the surrounding areas, and felt they needed to increase police services to keep residents feeling safe. He also felt they could not lessen the level of service for the Fire DeparUnent either because it would threaten the well-being of the residents. He felt having an adequate library and animal shelter were services that make a city a decent place to live in, but if the community felt this was not the right time for those services, the City could look at delaying them. He stated the County is having a problem supporting the library, and will probably close the local branch if the City doesn't take it over. He stated he has been to Sacramento also to plead the City's case, but the legislature calls all the shots and then takes no responsibility for their actions. Councilmember Williams stated this was a difficult situation for everyone but felt the Council was in touch in reality when it came to this issue. She concurred that the City's public safety could not be jeopardized. She encouraged the public to participate in the budget process, as the workshops were public meetings. She stated the Council was in constant communication with their Federal and State representatives asking for relief from unfunded mandates. She also has heard from hundreds of people in the community that they want a better library, but if the feeling now was to hold off, perhaps they could explore other options for operating a library without using utility tax funding. She felt they might be able to utilize volunteers and private fund raising for both a library and animal shelter. Councilmember Gutierrez staled he was thankful for the level of safety services they have now and felt they needed to maintain that level. He stated during his recent campaign he was told by many people in the community that they wanted a library, but felt they might have to wait if that was really how people felt as expressed tonight. He stated he is disappointed that they have to wait again due to these hard times, but he knew that times would change. He felt there should be a $30,000.00 cap, to be sure to take care of the seniors and low-income families, and to look at having a sunset clause. His recommendation would be to look at providing police and fire services and replacing the projected losses to the City, and to see if they can wait until they know exactly what Sacramento is going to do. Councilmember Buquet stated he appreciated everyone who came to the meeting with constructive ideas. He stated people have asked how can they be considering such a thing at this time, but it is because times are so bad that the City has to consider this item. He stated the City has worked hard at trying to get the legislators to face the real problems. He stated he has been on the Council eleven years, through both good and bad times, and he felt the coming years would be exlxemely challenging, because they were going to try to provide services to those that were here already, bnng in new business, and at the same time hold costs down but provide the same quality of service without compromises. He stated the public safety services they were providing now were incredible considering the staffing levels were so low for the population served, but felt they needed to increase those levels. He concurred with the Mayor that crime levels were increasing in the surrounding areas. He stated the City has to be realistic when dealing with the problems of today, and they have saved money and conserved over the years, but the State has hurt them with their budget maneuvers. He stated the way other levels of government run their budgets, departments are City Council Minutes April 7, 1993 Page 13 penalized if they save. He felt the State would one day find some way to attach funds raised through a utility tax, the same as they have done to the redevelopment agencies. He did not feel they should lake on the animal control or libra~ services at this time. He stated he could consider a cap for business, but did not want it to be so low it hurt the residents. He stated possibly they should consider the timing for implementation as suggested, to set it up but hold it in abeyance until needed. Mayor Stout asked the City Manager to explain the timing necessary for implementation. Jack Lain, City Manager, stated the utility companies would need 90 days before they could starting the billing process after the adoption of a utility tax. He stated the City is vimally debt free. He addeil their local legislators have been supportive, and explained the situation on being a no and low property tax city. He stated State law requires them to have a balanced budget by July 1st, even though the State and Federal governments do not. If they do not adopt the utility tax, staff would need to lay out cuts in the next 30 days to the Council and Fire Board, as well as the labor groups for the Fire District, in order to balance the budget. He did not feel the State would adopt their budget until September again. He explained how the Council can determine the date for implementing the utility tax. Mayor Stout asked the City Attorney if churches could be exempted. James Markman, City Attorney, stated they could not exempt churches because it would be a violation of the First Amendment. He added the reason behind exempting public agencies was that if they were taxed, they would pay the tax bill with taxes that the citizens have already paid, so it would compound the tax, and that is why virtually every entity that has enacted a utility tax has exempted public agencies. James Markman, City Attorney, stated he would respond to some of the legal questions raised. First, could the City's charter be changed or can tax issues be put on the ballot. He stated Rancho Cucamonga is a general law City and does not operate by charter, but by the provisions of the California Government Code. He stated there is a State Constitutional provision which precludes general elections by either initiative or referendum on tax matters. He stated you could only change that provision by amending the State Constitution. He also explained why the City is a low property tax city, but how the City had the foresight to set up one of the best redevelopment agencies in the State. However, redevelopment funds could only be used for capital projects or enticing new business into town. He also detailed how the State had raided re, development agencies and how this has affected Rancho Cucamonga in particular. He also explained how redevelopmerit agencies can be used to attract new business, and the arrangement made with the Price Club and how that benefitted the City. Councilmember Buquet asked if the situation Mr. Markman just explained regarding how they brought the Price Club to town, was the same type of deal that other states are doing to attract California businesses to relocate. James Markman, City Attorney, stated yes, that in states like Arizona and Utah, every governmental entity has the power to offer deals without creating a redevelopmerit agency, and that was what California was up against. He felt it was ironic that the State was taking re, development money first, which was the one mechanism they had for competing with other states and retaining businesses. Jack Lam, City Manger, stated when he spoke earlier about the City's contingency plan and why it had to be dealt with earlier for the Fire District, it was because the Fire District had less than $50,000.00 in their contingency funds. He explained how the County would not allow the District to save any funds when under their jurisdiction, and when the City took them over four years ago, they set up a contingency fund, but starting three years ago they had to cut all budgets and there was no ability to save aOything. City Council Minutes April 7, 1993 Page 14 James Markman, City Attorney, stated a question was raised regarding spending limitations, and stated the Gann Act froze governmental spending at the end of the 1970's, and only allows it to increase by a combination of population growth and cost of living increase. He stated the City of Rancho Cucamonga is currently spending $7 million less than the Gann limit would allow, which is unusual, so whether the Council adopted all or part of the utility tax, it would not exceed the Gann limit. Councilmember Gutierrez felt they should give the residents a chance to have workshops and study the issues, if the City had 30 days leeway. Councilmember Buquet felt the Council should look into the offers of assistance made by the public, and they should work with the Chamber of Commerce to come up with a win-win solution. He stated he was concerned about the time frame, but wanted to give people time to study the issue. He felt if they came up with other solutions, they might not need the utility tax anymore. Mayor Stout asked what his recommendation would be for tonight. Councilmember Buquet stated this was the most immediate measure available, even though he was not happy that they had to consider it, but in light of the financial situation, they needed to maintain the integrity of the operations. Councilmember Alexander stated that delaying a decision on this would delay work on the budget. He stated the ordinance has safeguards built in that if the State gives back to the cities what they projected taking, then part of it would be null and void. James Markman, City Attorney, stated that was the intention of the recitals. He pointed out that even if the lawsuit he mentioned earlier were successful and funds were restored, there were other ways the State can remove funding that were constitutional. He stated if the State restored a permanent financial base, the Council could consider immediately repealing the ordinance. Councilmember Alexander stated he was prepared to go forward. Councilmember Williams asked Bob Dominguez what the figures would be if they were to continue services at the current level. Bob Dominguez, Administrative Services Director, stated with a $50,000.00 cap, to restore services would be 4.02%; to add additional police services would be 4.66%. He stated with a $30,000.00 cap, to restore services would be 4.02%; to add additional police services would be 4.82%. Councilmember Alexander stated he would not want to go lower than $50,000.00 on the cap, because if you go lower than that, proportionally you will be adding more to the residents of the community, and though he sympathized with the problems in the business community, he did not want to make it any more difficult on the citizens. Councilmember Buquet still thought they should have the content prepared but leave the final approval until a later date. James Markman, City Attorney, stated the safeguards worked into the ordinance should appease Councilmember Buquet's concerns. The Council discussed what rate to consider and when adoption should take place. City Council Minutes April 7, 1993 Page 15 Mayor Stout stated he would like to move forward with this tonight due to the noticing requirements if they were to delay it, then if anything changed with the State budget, they could modify it then. Jack Lam, City Manager, stated every year they have been cutting the budget, so even with this tax to backfill the revenues taken by the State, the Fiscal Year 1993/94 budget will be less than the 1992/93 budget. He stated the reason for that is there has been no consideration of backfilling any amount of money due to the local recession, this is only in respect to the State take aways. MOTION: Moved by Alexander, seconded by Stout to adopt the ordinance with the amount set at 4.66% with a $50,000.00 cap, to be effective July 1, 1993, and to waive full reading. James Markman, City Attorney, stated the ordinance would be completed by adding the following information: on page 4, section 3.48.035A insert the figure $50,000.00; on page 4, section 3.48.040 insert the figure 4.66%; on page 5, section 3.48.050 in the third line insert the figure 4.66%; on page 6 in sections 3.48.055 and 3.48.060 insert the figure 4.66%; on page 7, section 3.48.070 insert the figure 4.66%; and on section 2 of the ordinance at the bottom of page 10, insert the date July 1, 1993. He also indicated that the ordinance number had been corrected to number 510. Jan Sutton, Deputy City Clerk, read the title of Ordinance No. 510. ORDINANCE NO. 5n~° 510 (Pursuant to Govt. Code Section 36937) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AMENDING TITLE 3 OF THE RANCHO CUCAMONGA MUNICIPAL CODE BY ADDING A NEW CHAPTER 3.48 PERTAINING TO THE ESTABLISHMENT OF UTILITY USER'S FEES MOTION: Moved by Stout, seconded by Williams to waive full reading of Ordinance No. 510. Motion carried 4-1 (Gutierrez no). Councilmember Gutierrez stated he had misunderstood the motion and asked for a vote to be taken again. MOTION: Moved by Stout, seconded by Wiiliams to waive full reading of Ordinance No. 510. Motion carried unanimously, 5-0. Councilmember Buquet stated to clarify for people who were concerned that the City had advertised a range of 4% - 9%, this was lower than a compromise situation, and while he was not happy about having to move forward in this manner, he felt it was the most honest, direct approach to deal with it and have the funding in place while they explore other options. He stated he would be working with the Chamber of Commerce on setting up workshops to look for alternatives. Councilmember Gutierrez stated he would like the workshops to have occurred before the tax was voted on. Mayor Stout asked for a vote on the motion made previously by Councilmember Alexander to adopt Ordinance No. 5 10 as modified. Motion carried 4-1 (Gutierrez no). Mayor Stout called a recess at 11:30 p.m. The meeting reconvened at 11:52 p.m. with all members of Council present. City Council Minutes April 7, 1993 Page 16 (24) (2s) G. PUBLIC HEARINGS G1. CONSIDERATION OF AN URGENCY MEASURE AMENDING CHAPTER 12.04 OF THE MUNICIPAL CODE PERTAINING TO SALES ACTIVITIES WITHIN CITY PARKS Staff report presented by Suzanne Ota, Community Services Manager. (1404-05 PARK) Mayor Smut read the title of Ordinance No. 509 (Urgency). Mayor Smut opened the meeting for public hearing. There being no response, the public hearing was closed. ORDINANCE NO. 509 (URGENCY) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AMENDING, AS AN URGENCY MEASURE, CHAPTER 12.04 OF THE RANCHO CUCAMONGA MUNICIPAL CODE PERTAINING TO SALE ACTIVITIES WITHIN CITY PARKS AND MAKING FINDINGS IN SUPPORT THEREOF MOTION: Moved by Buquet, seconded by Gutierrez to waive full reading and approve Ordinance No. 509. Motion carried unanimously, 5-0. H. CITY MANAGER'S STAFF REPORTS HI. CONSIDERATION TO ACCEPT IMPROVEMENTS. RELEASE OF BONDS AND NOTICE OF COMPLETION FOR TRACT 12902. LOCATED ON THE WEST SIDE OF HERMOSA AVENUE NORTH OF HILLSIDE ROAD, DEVELOPED BY NORDIC WOODS I LTD.. A CALIFORNIA LIMITED PARTNERSHIP Staff report presented by Joe O'Neil, City Engineer. (0602-01 BOND REL) (0704-18 NOT COMPLT) Release: Faithful Performance Bond (Street) Accept: Maintenance Guarantee Bond (Street) $ 310,000.00 31,000.00 RESOLUTION NO. 93-079 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS FOR TRACT 12902 AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE WORK MOTION: Moved by Willjams, seconded Alexander to approve Resolution No. 93-079. Motion carried unanimously, 5-0. I. COU~CII. BUSINESS No items were submitted. City Council Minutes April 7, 1993 Page 17 .!. IDENTIFICATION OF ITEMS FOR NEXT MEETING J 1. Councilmember Alexander stated there would be an update report from the Day Laborer Subcommittee. J2. Councilmember Alexander stated he would also like a report on the City's continued participation in the California League of Cities and the National League of Cities. K. COMMUNICATIONS FROM THE PUBI.IC No communications were made from the public. ADJOURNMENT MOTION: Moved by Alexander, seconded by Williams to adjourn to Executive Session to discuss personnel matters and property acquisition at Laurel and Aspen. Motion carried unanimously 5-0. The meeting adjourned at 12:00 Respectfully submitted, Deputy City Clerk Approved: May 5, 1993