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HomeMy WebLinkAboutMinutes - July 22, 1991 - CCCITY OF AZUSA MINUTES OF THE CITY COUNCIL ADJOURNED REGULAR MEETING JULY 22, 19910 - 7:30 P.M. The City Council of the City of Azusa met in adjourned regular session at the above date and time in the Civic Auditorium. Mayor Moses called the meeting to order and led in the Call to order salute to the Flag. Invocation was given by Director of Finance, Geoff Craig. ROLL CALL PRESENT: COUNCILMEMBERS: STEMRICH, MOSES ABSENT COUNCILMEMBERS: DANGLEIS ALSO PRESENT NARANJO, ALEXANDER, Acting City Attorney Goodkind, City Administrator Caswell, Director of Finance Craig, Assistant City Administrator Garcia, Chief of Police Nelson, City Clerk Solis. It was noted for the record that Councilman Dangleis was excused from the meeting. Roll Call Dangleis absn Also Present Dangleis excused PUBLIC HEARING - on the establishment of a Community Pub Hrg Facilities District and to levy a special tax to pay for Comm Fac Dist certain public facilities in and for said district No. 91-1 (Police svcs) (Police Services), pursuant to the Mello -Roos Community Facilities Act of 1982. The Mayor declared the Hearing open, the City Clerk read the Hearing opene affidavit of proof of publication of notice of said hearing published in the Azusa Herald on July 11, 1991. City Administrator Caswell advised at this time that there Caswell ad - were certain documents the City Attorney needed to peruse to vised Atty verify their form and content, which would take some time. needed time He, therefore, suggested that in order to save time, that to peruse the Council recess to Closed Session to discuss a personnel documents matter now rather than at the end of the meeting. It was then moved by Councilman Naranjo, seconded by Mayor Recess to Moses and unanimously carried* by roll call to recess to Closed Sess Closed Session. N TIME OF RECESS TO CLOSED SESSION: 7:35 P.M. THE CITY COUNCIL RECONVENED AT 8:10 P.M. Reconvened Finance Director Craig addressed the Community Facilities Testimony District for police services advising that the development Craig of tract housing in the City will incur higher costs for the City than the revenues derived from the tracts. One way of bridging the gap was the establishment of said district which would generate funds in the amount of $27,500 per year for the provision of public safety services in these four new tracts. The levy for the 1991-92 fiscal year would be $144.00 per housing unit per year and would be assessed on the property tax bills. He then explained in detail how this $144.00 figure had been reached for the assessment. Future tracts would be required to become a part of the district and this stipulation would be made part of the approval in their conditional use permit, as was done with the four tracts in question. General discussion was held between Council, Acting City Attorney and staff relating to possibility of the future homeowners objecting to the assessment, if it were approved, and then petitioning the Council for its removal. Procedures for doing so were discussed. In the event this occurred then the developers would not be burdened with any contributions to the City as by establishing this District they would have complied with the conditional use permit condition; thus the City would then receive no revenues and still have the expense for police services. Possibility of having developers contribute a $30,000 fee or such rather than establishing the assessment district was discussed as well as other concerns relating to the fact that if the district did not receive approval, then the conditions of approval for the conditional use permits would have to amended; that fees for sewers, building inspection, etc., could not be placed in a separate interest bearing account to subsidize police services, because these funds were needed for services rendered. Further, that Lewis Homes had received approval of their Final Map, therefore, the conditions of approval for the CUP could not be amended. Discussion was also held relating to the fact that the issue was highly political, and that the registered voters in the district could sway the results of an election of Councilmembers. Mr. Ken Corhan, General Counsel for Lewis Homes, addressed the Council stating that Lewis Homes is not trying to minimize their contribution to the City. That they have complied with all of the conditions of approval, of which, one was the establishment of a Mello -Roos District. They did not seek to do so, that it was a City requirement. He stated that this additional tax was a burden to the new homeowner and agreed that it was an unfair; that an assessment fee should be created for the entire City. He could not specifically state that the assessment fee would deter prospective home buyers. Further lengthy discussion was held regarding the possibility of placing this issue on the ballot and if it was feasible or legal to do so as well as other issues of concerns relating to the possibility that even though the Council approved this assessment district, another Council or the majority of the homeowners could over -turn the decision; other Mello -Roos districts within California and how many are in litigation at present and how many have been overturned by the homeowners. Mr. Carroll Cline addressed the issue advising that he was not opposed to the assessment. He stated that he could not believe that the Council was worried about 191 votes swaying an election of the Councilmembers one way or another. He was advised that in Azusa that was definitely the case. He then went on to state that the Council was elected to make decisions for the people and that this should not be a 07/22/91 PAGE TWO Discussion K. Corhan comments Discussion Comments C. Cline The Mayor then advised that he owned prperty adjacent to Moses left one of the developments and that he would abstain from table & ab - participating in the proceedings and subsequently left the staind, Stem - Council table. Mayor Pro -tem Stemrich chaired the item. rich chaired General discussion was held between Council, Acting City Attorney and staff relating to possibility of the future homeowners objecting to the assessment, if it were approved, and then petitioning the Council for its removal. Procedures for doing so were discussed. In the event this occurred then the developers would not be burdened with any contributions to the City as by establishing this District they would have complied with the conditional use permit condition; thus the City would then receive no revenues and still have the expense for police services. Possibility of having developers contribute a $30,000 fee or such rather than establishing the assessment district was discussed as well as other concerns relating to the fact that if the district did not receive approval, then the conditions of approval for the conditional use permits would have to amended; that fees for sewers, building inspection, etc., could not be placed in a separate interest bearing account to subsidize police services, because these funds were needed for services rendered. Further, that Lewis Homes had received approval of their Final Map, therefore, the conditions of approval for the CUP could not be amended. Discussion was also held relating to the fact that the issue was highly political, and that the registered voters in the district could sway the results of an election of Councilmembers. Mr. Ken Corhan, General Counsel for Lewis Homes, addressed the Council stating that Lewis Homes is not trying to minimize their contribution to the City. That they have complied with all of the conditions of approval, of which, one was the establishment of a Mello -Roos District. They did not seek to do so, that it was a City requirement. He stated that this additional tax was a burden to the new homeowner and agreed that it was an unfair; that an assessment fee should be created for the entire City. He could not specifically state that the assessment fee would deter prospective home buyers. Further lengthy discussion was held regarding the possibility of placing this issue on the ballot and if it was feasible or legal to do so as well as other issues of concerns relating to the possibility that even though the Council approved this assessment district, another Council or the majority of the homeowners could over -turn the decision; other Mello -Roos districts within California and how many are in litigation at present and how many have been overturned by the homeowners. Mr. Carroll Cline addressed the issue advising that he was not opposed to the assessment. He stated that he could not believe that the Council was worried about 191 votes swaying an election of the Councilmembers one way or another. He was advised that in Azusa that was definitely the case. He then went on to state that the Council was elected to make decisions for the people and that this should not be a 07/22/91 PAGE TWO Discussion K. Corhan comments Discussion Comments C. Cline ballot measure. The Council, staff and Mr. Cline discussed the process whereby homeowners could petition the Council to eliminate the assessment; that 25% of the owners were need to set a public hearing whereby Council could dismiss the request as not being in the best interests of the City or allow it to be heard; then 2/3 of the homewoners woul have to vote for or against the assessment at a subsequent public hearing. Mr. Jeffrey Tan addressed the issue requesting formalities on the voting process by the homewoners. His questions were responded by City Attorney. He then stated that potentional homeowners should not be burdened with more taxes. That a percentage of the cost of the homes could be assessed and placed in a trust fund and then use the interest for the police services that are needed. That if years from now more funds are needed then the whole City should be assessed. Moved by Councilman Naranjo, seconded by Councilman Alexander and carried.by roll call* to close the Hearing. Mayor Moses abstaining. Councilman Naranjo made a motion to approve the district. Further discussion ensued by the Council stating that if a mechanism could not be established that this type of assessment fee would remain in effect without being overturned then the majority would not vote for it. Therefore, Councilman Naranjo's motion died for the lack of a second. Mayor Moses returned to the Council table. Comments J. Tan Hrg closed Motion to approve & further discussion Motion died Moses retrnd Staff and developers were commended for the time, effort and Staff, et al costs expended to establish this district, however, it was commended Council consensus that other avenues would have to be explored in order to generate needed funds. It was then moved by Councilman Alexander, seconded by Receive and Councilman Stemrich and carried by roll call* to receive and file file. Mayor Moses abstaining. Moved by Councilman Alexander, seconded by Councilman Terminate Stemrich and carried by roll call* to terminate proceedings. proceedings Mayor Moses abstaining. Moved by Councilman Stemrich, seconded by Councilman Naranjo Staff to in - and unanimously carried by roll call* to direct staff to vestigate research alternate methods for generating needed revenues. alternate revenues Discussion was held regarding draining Morris Dam reservoir Reservoir and that sluicing would be part of the process of doing so. draining Concerns that all of these deposits would be damaging to the discussion riverbed. It was consensus of Council that staff investigate Staff rpt on procedures for draining the reservoir and report to Council draining of 'and if action is needed to be taken by the Council that a reservoir special meeting be called. Mr. Jeffrey Tan adressed the Council regarding unpermitted J. Tan external refrigeration unit at Goldilock's Bakery, that is complaint re: situated outside of the premises and causes noise pollution. Goldilock's He contacted a staff member and was advised that the bakery Bakery would be notified to have the unit removed, to date, this has not occurred. He requested Council to intervene as the noise of the compressor kept him awake and was on constantly. His request was referred to staff for follow- up. 07/22/91 PAGE THREE Moved by Councilman Stemrich, seconded by Councilman Naranjo Adjourn and unanimously carried by roll call* to adjourn. TIME OF ADJOURNMENT: 9:50 P.M. CITYLAG ERK NEXT RESOLUTION NO. 91-C101 NEXT ORDINANCE NO. 91-010 * Indicates Councilman Dangleis absent 07/22/91 PAGE FOUR