Proposed Incorporation Study of Rancho Palos VerdesRANCHO PALOS VERDES DOCUMENTS
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A STUDY OF THE PROPOSED INCORPORATION OF
RANCHO PALOS VERDES
WITH REVISED BOUNDARIES
Revised
July 12, 1973
Prepared by
BO LLE NS, SMITH AND ASSOCIATES
1100 Glendon Avenue
Los Angeles, California 90024
101SI
TABLE OF CONTENTS
LIST OF TABLES
Page
• . •
I. SUMMARY OF FINDINGS AND CONCLUSIONS . . 1
Findings . • . . . . • . . 1
Conclusions . . . . . 4
II. FISCAL EFFECTS OF INCORPORATION . . 5
Additional Costs and Revenues Arising from
Incorporation: General • . . 5
Operational Costs of the Proposed New City for
the First Partial Year and the Full Fiscal Year
Following Incorporation . . 7
Proposed Budget: City of Rancho Palos Verdes
Consideration of Anticipated Future Capital
Improvements
Estimated Cost to Rancho Palos Verdes Citizens
Arising from Incorporation .
• .27
▪ .33
. . . . . . .36
General Projection of the Possible Fiscal Position
of Such a New City in 1975 and 1980 .
. . . .37
III. NON -FISCAL ASPECTS OF INCORPORATION .
. • • .42
APPENDIX A. LETTER FROM SHERIFF PETER PITCHESS . .44
APPENDIX B. PERSONNEL SCHEDULE • . 47
ii
LIST OF TABLES
Pale
1. Proposed City of Rancho Palos Verdes Operating
Budget for Partial Year 1'973-'74 and Full Fiscal
Year 1974-75 . . . . . . . . . . . . • . 28
2. Operating Budget Summary .
• . 32
I. SUMMARY OF FINDINGS AND CONCLUSIONS
FINDINGS
1. Rancho Palos Verdes, as defined in this study, is an area of
approximately 12.3 square miles. It comprises (except for two
small unincorporated islands and the unincorporated area not in
the Palos Verdes Peninsula Unified School District encompassing
Western Avenue) the remainder of the unincorporated Palos
Verdes Peninsula.
2. The attempt to incorporate has been initiated through the desire
of a great number of residents to retain their semi -rural, low-
density
ow-
density type of living and to discourage the present accelerating
trend toward construction of multi -unit apartment and townhouse
developments on the Peninsula at a much higher population density
per acre.
3. The proposed incorporation is unusual in that the three contiguous
cities have, by appropriate Council action, indicated their full
support of the new incorporation.
4.Thearea ed for incorporation has a unique advantage in that
p op p q g
it has no involveme`irt`with "through traffic," since the—Pe-nth-Fa-la
is not part of either a north• 1`=�s.ou h or an- e . s -west corridor. This
characteristic is a mai or .advantage from th nd�oint of requir -
in the constru_ctiti o- f streets and highways ca able of handling
gP g
traffi a en rated onlybythe developments on the Peninsula.
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5. The organizational arrangement proposed in this study for the
potential new city is designed to continue at maximum feasible
levels the types of service now provided by the County or by exist-
ing special districts with a minimal increase in cost due to the
act of incorporation.
6. The organizational arrangement proposed to implement this objec-
tive under the policy direction of an elective, five -man City
Council- -one of whom would serve as Mayor --would be:
a. General governmental services not provided by special
district or county contract would be provided by a totally
appointive city staff of ten persons, plus a contract city
attorney, as follows:
• A combination City Manager -City Clerk with a
combined staff of four persons --one professional
and three secretarial or clerical.
• A combination Director of Finance -City Treasurer.
• A contract for City Attorney services from a firm
specializing in such services.
• A Planning Director with a staff of three persons--
one
ersons--
one professional and one secretarial.
Operating within policies set by the City Council, this group
would provide services covering general and budget admin-
istration, contract coordination and servicing, legal, pur-
• chasing, personnel, accounting, clerical, record keeping,
elections, planning and zoning, and business licensing.
b. The school district and other special districts would con-
tinue to furnish the following services: school, fire pro-
tection, sewage disposal, sewer maintenance, surface
drainage and flood control, library (within the Palos Verdes
Library District) , recreation and park services (full ser-
vice not now provided but legally available by areal or
service expansion) .
c. The following services would be provided by county contract:
general law enforcement, traffic enforcement, general pub-
lic safety and welfare, building inspection, engineering
services, street maintenance, street construction (supervi-
sion of private contractors) , health services, animal shelter,
tax assessment and collection, and district attorney's ser-
vices
er-
vices on criminal matters.
d. Los Angeles County would continue to furnish judicial ser-
vices and the maintenance and operation of regional park and
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recreational areas owned by the County. The County will
furnish services for local parks until they are officially
turned over to the new city.
e. Refuse pickup services would continue by private arrange-
ment as at present.
7. Assuming incorporation in September 1973, and a level of expendi-
ture adequate to preserve present levels of service, the first par-
tial fiscal year could end with an excess of revenues over expendi-
tures or a deficit --depending on the extent to which county ser-
vices are continued in that year.
8. The proposed budget for 1974-75 would entail a property tax rate
of 18.46 cents --a net increase of 11.44 cents due to the elimina-
tion of the road district tax upon incorporation.
9. There would be no other increased costs as a result of
incorporation.
10. The only significant capital improvement expenses necessary to
be borne by the new city would be those involving the reconstruc-
tion, widening, or realignment of existing streets and roads.
Funds available for this purpose would be adequate to gradually
decrease overall street deficiencies.
11. To protect the new city frorn liability, the Portuguese Bend area
and other potential slide areas can best be handled by adopting and
continuing the carefully thought out policies of Los Angeles County
relative to building permits, grading permits, and other applica-
tions for physical use of such areas.
12. Following adoption by the new city of a carefully conceived General
Plan and Zoning Ordinance, consideration might be given to con-
trolled development of commercial and non -nuisance light industrial
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facilities as a balancing factor to provide an expanded revenue
structure with minimal disturbance to the Peninsula way of life.
CONCLUSIONS
As the study has proceeded, it has become increasingly apparent that
the real decision facing residents and property owners in the unincor-
porated arca of the Peninsula is not primarily a fiscal one. It is rather
a choice which must be made immediately involving the future land use
and ultimate character of development on the Peninsula.
Fortunately, fiscal considerations do not stand in the way of incorpora-
tion. There are extra costs involved as the result of becoming an incor-
porated city; however, the modest increase in taxes has to be measured
against the other benefits that would accrue. Extrapolation of current
revenue trends and a consideration of available fiscal remedies indicate
a healthy financial condition through 1980 --provided there are no in-
creases in levels of service.
As a result of this study, it is the consultant's conclusion that the incor-
poration
ncor-
poration of Rancho Palos Verdes is fiscally feasible.
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II. FISCAL EFFECTS OF INCORPORATION
ADDITIONAL COSTS AND REVENUES ARISING FROM INCORPORATION:
GENERAL
In compilation of cost and revenue amounts, the following data sources
were used:
• Records of the State of California, County of Los Angeles,
various cities, special districts, and private organizations
• Discussions with officials and informed citizens from these
governments and groups
Despite the several comparatively recent surveys, reports and budgets
available, the above sources were directly consulted where it was felt
necessary to have current facts and records for this study.
This study as prepared contemplates the initial extension, by contract,
of as many of the county services as are compatible with the prime
motivations for incorporation. Service levels are assumed to remain at
their present levels. Of course, the new city may decide --after brief
experience with contracted county services --to dispense with some and
establish these as independent services of the city. This constitutes no
problem since
• County contracts are renewed yearly, and
• The costs for those services which would appear to present
some justification for their assumption by the new city
would be essentially the same—whether -whether provided by con-
tract or by independent city operation.
The study also takes into consideration additional potential future costs
and revenues not covered by the Factual Report on the Palos Verdes
Area, prepared by the Chief Administrative Officer of the County of
Los Angeles and dated November 1972.
To be really practical, a study of incorporation feasibility must recog-
nize that there are two fiscal time periods which must be considered in
some detail, plus a more general look at likely future fiscal
developments.
The first fiscal time period extends from the date the Secretary of State
notifies officials of the new city that it has been officially formed until
the following June 30th which ends the municipal fiscal year. During
this fractional fiscal year following incorporation, the County will con-
tinue to extend most county services furnished prior to incorporation
from tax funds and at the same level of service. This is because the
County has levied or collected taxes in advance for the full fiscal year
and consequently will furnish the services for which the tax was levied.
During this period, the new city normally finds itself receiving a sub-
stantial portion of that part of annual city revenues collected by the
state and returned to the cities. At -the same time, expenses are quite
low since -most services are being furnished by the County at its own
expense or by special taxing districts. The new councilmen may experi-
ence a false sense of municipal prosperity at this time. As a matter of
fact, it is particularly important during this period that the city be oper-
ated very economically in order to have as much money left at the end
of the fiscal year as possible. The monies thus accumulated will con-
stitute the "unbudgeted reserve" funds necessary to absorb unexpected
expenses in the years to come. For the purpose of this report, it is
assumed that incorporation will be finalized on or about September 1,
1973.
The second fiscal time period begins the next July 1 after incorporation
and extends until the following June 30. During budget considerations
for this first full fiscal year, the relatively inexperienced council ordi-
narily gets its first concrete indication of what the expense of running
the new city will be.
During this first partial year, the County, as a matter of previously
established policy, may continue to provide the services of the County
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Road Department and Department of Parks and Recreation through the
end of the fiscal year, June 30, since the incorporation occurs prior to
February 1 of that same year. In addition, the County will provide the
services of the County Sheriff's Department upon action by the new city
council in relinquishing to the County the fines and forfeitures collected
during the period agreed to by both parties.
To assist interested citizens, this fiscal section of the study will set
forth the following elements, based upon an analysis of the proposed
community's needs and the consultant's experience in the field of muni-
cipal government:
• A tentative minimal budget covering services, costs,
and revenues for the first fractional fiscal year. This
is calculated for 10 months, assuming incorporation
on or about September 1, 1973.
• A basic budget covering services proposed to be fur-
nished by the new city for the first full fiscal year of
operation.
• Consideration of possible future large capital outlay
items.
• A general projection of the possible fiscal position of
such a new city in 1975 and 1980.
OPERATIONAL COSTS OF THE PROPOSED NEW CITY FOR THE
FIRST PARTIAL XEAR AND THE FULL FISCAL YEAR FOLLOWING
INCORPORATION
1. Legislative Functions
A five -member city council, elected at large, would repre sent the citi-
zens of the new city in enacting ordinances, expressing policy, and
'In view of the fact that the first partial year extends over a 10 -month period- -
almost a complete fiscal year- -all non -road capital costs are presented as being
expended in the partial year rather than in both the partial and full fiscal years.
holding the administrative officials accountable. No salaries are neces-
sary,
eces-
sary, but the budget should include minirnal funds for office supplies,
travel expenses, and for small expenses council members might incur
on city business.
Salarie s
Material supplies, services:
Printing and publications
Memberships and meetings
Telephone
Office supplies (cards and
letterhead)
Travel
Total
2. Mayor's Functions
Partial Year Fiscal Year
1973-74 1974-75
92 110
2,200 2,640 tt.5-`)D
321 385.x'
183 220
1,008 • 1,210 -
$3,804 $4,565
A mayor is elected by the council from among its members. He presides
over meetings, signs legal papers for the city, and represents the city
in public functions and ceremonies. There would be no expense directly
related to this office. He might or might not assume some administra-
tive functions.
3. City Manager's Functions
Most new cities are organized with provision for a City Manager or
Administrative Officer. This central executive is appointed by and
completely responsible to the Council. His office is the administrative
center of the city. It is the point at which policy established by the
Council is translated into action. He performs or supervises the per-
formance of such administrative functions as personnel recruitment and
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training; budget planning and administration; long-range physical, fis-
cal
is-
cal and social planning; purchasing; property management; and liaison
and public relations.
Under this arrangement, the council can serve effectively as a policy-
making body without being distracted or its time wasted by matters of
detail. Furthermore, in the study and consideration of policy matters,
the Council has the advantage of professional counsel on administrative
matters just as it would have available professional counsel on legal
matters from the City Attorney.
As later suggested in the section covering the City Clerk's function, it
is recommended that this office also be assigned the duties prescribed
by law for a City Clerk.
Because of the importance of this office, the new council should not allow
itself to be forced into a hasty selection of its first city manager. In-
stead, an experienced professional public administrator should be re-
tained on a full-time consultant basis immediately subsequent to a suc-
cessful incorporation election to help the new City Council prepare for
assumption of its heavy responsibilities. As soon as the initial flurry
of incorporation detail has been handled and the new council has gained
experience, it can then more knowledgeably (and with the assistance of
the consultant, if desired) select its first city manager. Meanwhile, the
consultant is appointed acting City Manager and City Clerk. Purchasing
and personnel functions can also be handled in this office through the
use of an administrative assistant.
The expenses of this office would be the following:
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Partial Year Fiscal Year
1973-74 1974-75
SALARIES
City Manager @ $26,400 year
(75% of City Manager's salary allocated
here and 25% to City Clerk) $16,500 $19,800
Administrative Secretary @ $660/month 6,600'-- . 7,920
Administrative Assistant/Purchasing
Agent/Personnel Officer 9,900 11,880
MATERIALS, SUPPLIES, SERVICES
Printing and publications 550 660
Equipment maintenance 83 100
Memberships and meetings 641 770
Office supplies (for Manager, pur- 1,650 1,980
chasing and personnel)
Travel 1,100 1,320
Total $37,024 $44,430
CAPITAL OUTLAY
1 executive desk with side extension
or credenza
330
2 secretarial desks, 60" x 30" with _
side extension @ $264 5218
1 secretarial posture chair, swivel
1 executive chair, swivel 176 ---
1 junior executive chair, swivel 72
1 IBM typewriter, Selectric, 11" carriage 622
1 office table, 78" x 38" 160 ---__
'side chairs with arms 688
1 printing calculator 550
1 bookcase 110
5 -drawer legal file (locking) 119
Small equipment 275
1 small waiting room table 38
Total $ 3,712
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4. City Clerk's Function
A City Clerk is necessary under state law to maintain an accurate record
of City Council proceedings and those of the Board of Equalization; to
see that all legal publication and reporting required by law is done; to be
responsible for city elections; and to be custodian of the city seal. The
City Clerk also maintains the central files of the city. This position
may be elective, though the trend in new cities and the one proposed for
this city is to make the office appointive so that it may be easily com-
bined
om-
bined with that of City Manager. This arrangement is more economical,
tends to make all aspects of administration directly responsible to the
Council, and eliminates the possibility of political infighting which fre-
quently develops between an elected City Clerk and the City Manager.
The actual taking of council minutes and the clerical functions of the
office are physically carried out by a Deputy City Clerk.
Expenses of this office would be the following:
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Partial Year
1973--74
Fiscal Year
1974-75
SALARIES
City Manager/City Clerk (25% of City
Manager's salary) $ 5,500 $ 6,600
Deputy City Clerk @ $660/month 6,600 7,920
Secretary -Clerk (2nd Deputy) @ $468/
month 4,680 5,616
MATERIALS, SUPPLIES, SERVICES
Printing and publications 92 110
Equipment maintenance 101 121
Memberships and meetings 137 165
Office supplies 733 I 880
Travel 137 165
Faithful performance bond 152 182
Surety and bond (City Clerk) 152 182
Total
CAPITAL OUTLAY
2 IBM Selectric typewriters
Adding machine --used, reconditioned
2 60" x 30" secretarial desks with side
extensions @ $264
Document safe --used, fireproof
Supply cabinet
5 -drawer legal file (with lock)
Small equipment
2 secretarial posture chairs @ $44
Total
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$18,284 $21,941
$ 1,243
110
528
660
66
232
220
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. $ 3,147
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5. Director of Finance /City Treasurer
Since many of the city functions will be handled by either county contract
or already existing special districts, thus minimizing the workload and
complexity of the accounting system, the Director of Finance and the
City Treasurer function can be efficiently combined. Under the general
supervision of the City Manager, the Director of Finance is responsible
for the financial administration of all city fiscal affairs. This includes
accounting for all monies received and disbursed, for the preparation of
payroll and payment of commercial demands, and for business license
supervision. The department assists in the preparation and administra-
tion of the annual budget and prepares various monthly and annual re-
ports as required by the Municipal Code, the City Manager, and state
law.
In his capacity as City Treasurer, this official has the statutory duty of
accounting for incoming and outgoing funds; the investment of idle funds
so as to earn maximum interest for the city; and the maintenance of all
financial records of assessment districts and bond issues, collecting
all assessment payments as they fall due, and paying off all coupons or
bonds upon their expiration dates.
Expenses of the office would be as follows:
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SALARIES
Director of Finance/City Treasurer
$770/month
Partial Year
1973-74
Fiscal Year
1974-75
$7,700 $9,240
MATERIALS, SUPPLIES, SERVICES
Printing and publications 46 55
Equipment maintenance 41 50
Memberships and meetings 183 220
Office supplies (includes business license
forms) 550 660
Travel 92 110
Faithful. Performance 'Bond 208 250
Total $8,820 $10,585
CAPITAL OUTLAY
1 secretarial desk 60" x 30" with side
extension $ 264
1 junior executive chair, swivel 72
1 printing calculator 550
1 bookcase 66
1 side chair, no arms 42
Small equipment 220
Total $1,214
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6. City Attorney's Functions
A city attorney is the second key employee needed immediately subse-
quent to a successful incorporation election. He will be needed to draft
the format for a codified set of city ordinances; to prepare the plethora
of initial ordinances and resolutions; to advise the City Council and the
acting City Manager/City Clerk on legal points; and to represent the city
on civil matters. A contract with the County for the services of the Dis-
trict Attorney's office for criminal matters is recommended and so
budgeted.
Expenses would be the following:
Partial Year
1973-74
Fiscal Year
1974-75
Contractual services:
Legal firm for civil matters $ 8,250 $ 9,900
District Attorney's office for
criminal matters 1,833 2,200
Membership and meetings 321 385
Office supplies 0 0
Travel 183 220
Capital outlay 0 0
Total $10,587 $12,705
7. Planning and Zoning.
Basic planning goals for the Palos Verdes Peninsula unincorporated area
have been established by citizen groups over the past decade. This cur-
rent factual material is of good quality and should not be wasted or ig-
nored following incorporation. Immediate efforts should be made to
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utilize this data plus appropriate personnel to move swiftly, yet care-
fully, toward formulation and adoption of an acceptable general plan
based on a clearly stated and approved set of Rancho Palos Verdes goals
and objectives. This may be done either by immediate retention of a
planning consultant or by immediate initiation of a careful recruitment
program for the city's own planning staff. Should the latter course be
chosen, the eligible list of planning director and planning staff appli-
cants should be made available to the City Manager immediately upon
his appointment so that his appointees will have the maximum time to
proceed with planning matters.
It should be pointed out that, although technical services are furnished
by the County for the partial year, policy guidance is furnished and final
decisions made by the new city's own Planning Commission and City
Council, based upon the' legal, administrative and planning counsel of
the city's own appointive staff.
For purposes of this study, it is assumed that the new City Council will
decide that the city will recruit its own planning director and staff and
that Planning Commission members will serve without pay.
Expenses of the office are the following:
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Partial Year Fiscal Year
1973-74 1974-75
SALARIES
Planning Director @ $17,600/year $14,667 $17,600
Associate Planner @ $13,200/year 11,000 13,200
Assistant Planner @ $10,560/year 8,800 10,560
Administrative Secretary @ $660/month 6,600 7,920
MATERIALS, SUPPLIES, SERVICES
Printing and publications 3,208 3,850
Equipment maintenance 83 100
Membership and meetings 416 500
Office supplies 733 880
Travel 1,083 1,300
Total $46,590 $55,910
CAPITAL OUTLAY
1 executive desk with side extension
or credenza $ 330
1 junior executive desk, 60" x 30"
with side extension 550
1 executive chair, swivel 176
1 junior executive chair, swivel 144
1 secretarial desk, 60" x 30" 262
1 secretarial posture chair 44
1 IBM Selectric typewriter, 11" carriage 621
1 office table, 84" x 36" 160
1 five -drawer legal file 233
1 printing calculator 550
1 bookcase 110
1 supply cabinet 66
1 drafting table 187
1 drafting machine and scales 220
1 drafting stool 44
1 map and plan storage cabinet 193
Small equipment 1,100
5 side chairs with arms 385
Total $ 5,375
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8. Non -Departmental Functions
These expenditures are of the type which cannot logically be allocated
to a specific function. Included are City Hall rental and modification and
maintenance of City Hall building and grounds; city insurance programs;
retirement contributions; legal advertising; expense of the annual audit;
telephone and utility services.
Expenses would be:
SALARIES
MATERIALS, SUPPLIES, SERVICES
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Printing and publications (legal
advertising)
Election expense
Contractual services (audit and
janitorial) 11,917 14,300
Memberships and meetings 2,350 2,820
City Hall rental @ $800/month 8, 000 9,600
Utilities 1,833 2,200
Telephone -telegraph service 3,666 4,400
Building maintenance supplies 1,833 2,200
Insurance, security and retirement 16,362 19,635
Partial Year Fiscal Year
1973-74 1974-75
OS Oa
1,833 2,200
ell .1111 Ow Wm
Fire and liability insurance
Faithful Performance (blanket)
Workmen's . compensation
Retirement contributions
Social Security plus PERS
Health insurance
Total
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$47,794 $57,355
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Partial Year
1973-74
CAPITAL OUTLAY
Structural modification to rented city
hall to fit city needs: $12,100
Council room
Lighting
Off- street parking
Restrooms
Council room furniture and fixtures 4,350
Equipment to serve all city
departments
Xerox duplicator (Table Model 660.
Leasing cost coes not include paper.)
Dictating machine
Polaroid camera
Paper cutter 23" x 24"
Total
9. Law Enforcement Service
3,020
550
220
66
$20,306
Fiscal Year
1974-75
The objectives of this service are to enforce the penal provisions of the
new city's Municipal Code and the laws of the state for the purpose of
protecting persons and property, to preserve the peace of the commun-
ity, and to provide traffic law enforcement within its boundaries. This
service would be provided by contract with the Los Angeles Sheriff's
Office .1
To supply the new city's needs, the city would contract with the Sheriff
for two patrol units for law enforcement and one patrol unit for traffic
1See Appendix A for a letter from the Los Angeles County Sheriff concerning ser-
vices to be provided to a newly incorporated city.
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enforcement. The proposed level of service is as follows: general law
enforcement (four shifts, 2 -man; and two shifts, 1 -man) and traffic law
enforcement (three shifts, 1 -man) . Supporting the above will be detec-
tive services for the equivalent of one and one-half detectives (84 hours
per we a k) .
Expenses for this service would be as follows:
MATERIALS, SUPPLIES, SERVICES
General law enforcement
Traffic law enforcement
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Detective services
Total
Partial Year
1973-74(1)
Fiscal Year
1974-75
$538,146
175,854
54,351
$7&8,&1--
531
The effect of this is to provide an increased level of service because the
three patrol cars presently assigned for the entire unincorporated area
on the Peninsula would be serving a smaller area encompas sed within
the new city boundaries.
Traffic enforcement service is presently provided by the California High-
way Patrol but would terminate some time after incorporation. The
Sheriff's patrol cars, as noted above, would furnish this service by
contract,
'See operating budget for Partial Year 1973-74 alternate expenditure possibili-
ties (I: $640,416; II: $384,250; and III: $0).
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10. General Public Safety and Welfare
Los Angeles County, by contractual arrangement, provides several ser-
vices that bear a relationship to law enforcement, to safety, or to the
general welfare of the community. The following are proposed for the
new city at the cost shown:
Partial Year
1973-74
MATERIALS, SUPPLIES, SERVICES
Contractual services
Fiscal Year
1974-75
Emergency ambulance $1,925 $2,310
County jail service 550 660
Civil defense and disaster 458 550
Total $2,933 $3,520
11. Fire Protection
Fire protection for the new city would continue to be furnished by the
Consolidated Fire Protection District of Los Angeles. The cost would
continue to be included in the County tax rate; there would be no cost to
the new city.
12. Building, Plumbing, and Electrical Inspection
Present services as furnished by the County Engineer's office seem
adequate and well -administered. To maintain the same level of service,
it is proposed that they be contracted from the County Engineer's office.
The cost would be as follows:
MATERIALS, SUPPLIES, SERVICES
Contractual services
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Partial Year Fiscal Year
1973-74 1974-75
Costs will bal-
ance revenues.
13. Engineering Services
Engineering services other than those mentioned above under Building,
Plumbing and Electrical Inspection are available from the County Engi-
neer at productive work hour rates. These include employee retire-
ment, Social Security and Workmen's Compensation, plus 37.5 percent
for applicable indirect expenses. Estimated cost:
MATERIALS, SUPPLIES, SERVICES
Contractual service s
14. Street Maintenance
Partial Year
1973-74
Fiscal Year
1974-75
$6,250 $7,500
Street maintenance services would be contracted from the County Road
Department. These services would include, at present levels, all those
presently performed, including street patching and maintenance, traffic
signal and safety lighting maintenance, street sweeping, street striping,
storm inlet clearance, and bridge maintenance (if any) . As a matter of
policy, the Board of Supervisors will continue to provide the services
of the County Road Department to the end of the fiscal year (June 30) for
cities incorporating before February 1. The estimated cost of this
service is shown below:
MATERIALS, SUPPLIES, SERVICES
Contractual services (Select System)
Contractual services (Non -Select
System)
Partial Year Fiscal Year
1973-74 1974-75(1)
$ 0 $279,660
98,000
$377,660
'This includes the cost of maintaining and periodic minor relocation of Palos
Verdes Drive South in the Portuguese Bend slide area.
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15. Street Construction
This annual construction expense for updating and major repair of
streets and roads in the city represents the fiscal year's share of the
long-term capital improvement plan for a city or county, modified by
the judgment of the Council at budget session after reviewing the city's
financial situation. This will be about the only recurring capital outlay
expense to the new city, except for public buildings (not immediately
contemplated) . Cost of other major outlay items will be borne by the
various existing special taxing districts. Funds in this budget will be
recommended in accordance with County estimates and policy enumerated
above. (See general analysis of street deficiencies in Section IIID, Con-
sideration of Anticipated Future Capital Improvements.)
MATERIALS, SUPPLIES, SERVICES
Contractual services
16. Sewage Disposal Services
Partial Year Fiscal Year
• 1973-74 1974-75
$ 0 $114,800
Sewage disposal services generally consist of three elements:
• The construction and operation of trunk sewers,
sewage disposal plants, and ocean outfalls. This is
handled in the study area by the South Bay Cities Sani-
tation District and County Sanitation District No. 5,
and its cost is part of the County tax rate.
• The construction of sewer laterals and private services
extending from residences and other facilities to the
trunk sewers. These extensions are usually built by
developers and subdividers, and their cost becomes
part of the total house and lot costs. In other cases,
new sewers (or replacement ones) are built by use of
special assessment districts. In any case, this would
be a function of the Sanitation Districts working in coor-
dination
oor-
dination with the city. No cost to the city would be
involved.
23
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• The maintenance of existing sewers. This function is
handled in the study area by the Consolidated Sewer
Maintenance District, and its cost is part of the County
tax rate. No cost to the potential new city would be
involved except a service charge for any city buildings.
Since these will likely be rented or leased for some
time, the cost will be included elsewhere in building
rental.
17. Surface Drainage and Flood Control
All main drains have been established and constructed by the Los Angeles
Flood Control District and are maintained by it. Construction of further
drainage facilities connected to main drains would be borne by developers
and subdividers.
Subsidiary drainage facilities would be maintained under the street main-
tenance contract with the County Road Department; the cost is included
in that figure. There would be no cost to the new city under this heading.
18. Refuse Disposal Services
Refuse disposal services are furnished the study area by private arrange-
ment with individual property owners, and no city cost is involved.
Refuse disposal site costs are borne by the sanitation districts and recov-
ered by fees charged to the private disposal services. There would be
no cost to the new city for this service.
19. Health Services
Health services to cities in California are normally furnished by the
County Health Department for fees. Services are furnished to standards
set by state law and would be the same services now received. The only
extra service which might be desired and for which special charges
might be made would be rodent and similar vermin control.
Estimated cost to the new city would be:
24
MATERIALS, SUPPLIES, SERVICES
Rodent Control
20. Animal Shelter Services
Partial Year
1973-74
Fiscal Year
1974-75
$167 $200
Animal shelter and rabies control services are more important to the
proposed city than to many cities because the nature of the community
allows for greater animal, bird, and wildlife concentration than usual.
County services under an animal and rabies control agreement can be
obtained in exchange for all licenses and impound fees collected. There
would be no cost to the new city.
21. Library Service
Library service would continue to be furnished by the Palos Verdes
Library 15istrict. Since the cost is included in the present County tax
rate, there would be no cost to the new city.
22. Parks and Recreation
The onlypark and recreational functions currentlypaid for by the Co VI/
be transferred to the new citywould be its$19,751 contribu- -/-,which would �
tion to the Palos Verdes Unified School District Recreation Program.
This County contribution would cease following incorporation, and the
city would be morally obligated to continue the cost of the program. In
the future, of course, the city might decide to provide an expanded pro-
gram. Since this budget is predicated upon no increase in present ser-
vice level, this possibility is not considered here.
25
Partial Year Fiscal Year
1973-74(1) 1974-75
MATERIALS, SUPPLIES, SERVICES
County park maintenance and $53,000
operation(2)
Contribution to school recreation '-1-9,751?
program
Total
23. Tax Assessment and Collection
$72,751
The offices of the County Assessor and the County Tax Collector furnish
services at no extra charge above those already included in County
taxes. There would be no cost to the new city.�--�e4
h
24. Business Licensing Services
For purpose of regulation, the present County business licensing system
should be continued following incorporation. This service could be ren-
dered by the Finance Officer/ City Treasurer. Funds for the purpose
are included in the budget for that office. No additional cost is shown
here..
25. Judicial Services
Local courts are provided by the County in accordance with law. Incor-
poration would not change this arrangement or 'create any expense for
the city.
' i See the operating budget for alternatives (I: $60,623; II: $36,374; and III: $0).
2It is proposed that Los Verdes Park become a city park.
26
26. Schools
In California, school districts are separate and distinct from cities.
They have a separate administrative organization and levy their own
taxes. No aspect of their operation or cost would affect a city budget.
PROPOSED BUDGET: CITY OF RANCHO PALOS VERDES
Projected revenues and expenditures for the partial fiscal year
(September 1973 -June 1974) and the full fiscal year 1974-75 are shown
in Table 1.
Following the incorporation of new cities, it is the policy of Los Angeles
County to continue providing certain services for a stipulated period of
time. The extent and duration of such services are subject to the nego-
tiation and consummation of an agreement between the new city council
and the Board of Supervisors. Since terms of the agreement are unknown
at this time, and because such terms will directly affect the initial
year's budget, several potential arrangements are shown in the budget
summary (other than roads) as follows:
• Alternate I assumes no County support, with the city
providing all services.
• Alternate II assumes the County will continue to pro -
vide law enforcement and parks and recreation ser-
vices
er-
vices for September through December 1973, with the
city providing all services thereafter,
• Alternate III assumes the County will continue to pro-
vide law enforcement and parks and recreation ser-
vices for the entire partial year—namely, September
1973 -June 1974.
It is to be noted that the end of year balances under these three possibil-
ities
ossibilities range from a deficit under Alternate I to surpluses under Alternates
II and III. Based on prior experience, it appears that Alternate II may
represent the most realistic compromise that will be reached.
27
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c„ c-
c /A-
A- 5V!t CA.
s
1) i
•
TABLE 1. PROPOSED CITY OF RANCHO PALOS VERDES
OPERATING BUDGET FOR PARTIAL YEAR 1973-74
AND FULL FISCAL YEAR 1974-75
EXPENDITURES
Non -Road Expenditures
Legislative Functions
City Manager
City Clerk
Director of Finance/City
Treasurer
City Attorney
Planning and Zoning
Non -Departmental
Law Enforcement
General Public Safety
Building Inspection
Engineering Services
Health Services
Parks and Recreation
Capital Expenditures
Contingency Fund
a
Total Non -Road Expenditures
Road Expenditures
ft
Partial Fiscal Year 1973-74
Alternate I Alternate II Alternate III
$ 3,804 $ 3,804 $ 3,804
37,024 37,024 37,024
18,284 18,284 18,284
8,820 8,820 8,820
10,587 10,587 10,587
46,590 46,590 46.590
47,794 47,794 47.794
640,416 384,250 0
2,933 2,933 2,933
(Balanced with Revenues)
6,250 6,250 6,250
167 167 167
60,623 36,374 0
33,754 33,754 33,754
45,853 31,832 10,800
$962,899 $668,463 $226,807
Road Maintenance (Select System)
Road Construction (Select System)
Road Maintenance (Non -Select System)
Total Road Expenditures
Partial Year
1973-74(1)
•
Fiscal Year
1974-75
$ 4,565 "A'
44,430
21,941
10,585
12,705 tor
55.910
57,355 ✓X
768,531 k
3.520 iX
7,500
200 -
72,751
53,000
$1,112,993
Fiscal Year
1974-75
$279.660
114,800
98,000
14,800-
98,000
$492,460
1 No expenditures would be made in 1973-74 on the assumption that the County will continue the
services of the County Road Department through .Tune 30, 1974, since incorporation would take
effect prior to February 1 of that same fiscal year.
28
TABLE 1 (Continued)
Partial Fiscal Year 1973-74 Fiscal Year
Alternate 1 Alternate II Alternate III 1974-75
REVENUES
Non -Gas Tax Revenuesl
Property Tax2 $ 0 $ 0 $ 0 $263,058
Sales Tax 59,122 59,122 59,122 76,947-.
Franchise Tax 62,918 62,918 62,918 75,502
Room Tax 1,917 1,917 1,917 2,300
Real Property Transfer 11,417 11,417 11,417 13,700
Business License 726 726 726 871
Building and Construction
Permits (Balanced with Costs)
Other Permits 167 167 167 200
Fines and Forfeiturea3 67,451 40,471 0 80,941
Interest 1,667 1,667 1,667 2,000
Liquor License Fee 2,668 2,668 2,668 2,668
Motor Vehicle In -Lieu Tax 424,328 424,328 424,328 450,455
Planning and Zoning 16,667 16,667 16,667 20,000
Cigarette Tax 97,594 97.594 97,594 117,117
Highway Carrier 3,810 3,810 3,810 4,572
Off -Highway Vehicle 7,218 7,218 7,218 8,662
Total Non -Gas Tax Revenues $757,670 $730,690 $690,219 $1,112,993
Gas Tax Revenue s
2106 Funds
2107 Funds
2107.5 Funds
County Aid Funds4
Total Gas Tax Revenues
. 07
Parti Year
1973-74
Fiscal Year
1974-75
$229,805 $275,777
210,653 252,794
7.500 7,500
0 82,884
$447,958 $618,955
1Projected revenues are conservative in that they do not include sales tax on gasoline revenues, which
can amount to $4,800 annually. Nor do they include Federal Revenue Sharing which, if estimated on the
lowest per capita of $3.72 and the current population of 35,200, would result in $130,944 annually while
in force (five years).
2The tax rate required to produce this amount on an assessed valuation of approximately $144 million
is 18.24 cents. As reported by the County Tax Assessor's Office, all undeveloped subdividable land
within five miles of the coast (due to Proposition 20) is being reduced in assessed value by. 10 percent,
This will increase the tax rate by 0.22 cents to a total of 18.46 cents. This relatively small impact is
due to the fact that the value of unimproved land is only 11.97 percent of the total assessed valuation.
This is a net increase of only 11.44 cents since the 7.02 -cent road district No. 4 tax ceases upon
thcarporation.
;Fub+s and forfeitures are relinquished to the County from the date of incorporation through the period
*ultimo that the County continues to furnish law enforcement services. In return, the County Sheriff's
Departrnent continues to provide the present services at no additional cost.
Comity doss not snake these funds available in the fiscal ear followingincorporation.
Y
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Another aspect of the beginning months of operating any new city is the
lag between incoming revenues and immediate cash needs. The city
council can make appropriate arrangements for deferred payments with
other public and private agencies. Several methods of temporary borrow-
ing are authorized in the California Government Code. In addition, a
number of state -shared and -collected revenues will be received soon
after incorporation since they are distributed on monthly and quarterly
schedules.
30
1
Before the above budget is summarized, it is important to realize that
the use of some monies received from the state is rather sharply re-
stricted and such monies are not available for general operational ex-
penses. The 2106 State Gas Tax Funds, for example, can be spent for
construction and maintenance on, or acquisition of, rights -of-way for
projects in a city's "Select System of Streets." These are streets
accepted by the state as of general citywide importance, in contract to
strictly local streets. The 2107 Funds can be spent for street work on
any city street. The 2107.5 Funds are known as "Gas Tax Engineering
Grant Funds" and can be spent only for engineering and administrative
expenses with regard to city streets. Also in the budget revenues is an
item, "County Aid." This represents a portion of County Gas Tax Funds
and can also be used only for street construction on Select System
streets.
Certain other state restrictions are placed on municipal use of the Motor
Vehicle In -Lieu Tax and liquor license fees; however, since these are
automatically followed in the city financing of routine services, they
need not be considered here. Restrictions just discussed have been
taken into account.
One should note that an existing 7.02 cent rate in the County tax billing
will be removed by the act of incorporation. This County levy supports
County Road District No. 4, which maintains the non -Select System
local streets in the unincorporated area. Since this service will hence-
forth be performed at the city's expense by contract with the County, it
is so budgeted.
31
4 VI 111111 -in me no no En ow am am
w
TABLE 2. OPERATING BUDGET SUMMARY
Partial ,Fiscal Year 1973-74
Alternate I Alternate II Alternate III
Fiscal Ye
.r.
1974-75t1)
NON -ROAD SUMMARY
Fiscal Year Revenue $757,670 $730,690 $690,219 $1,112,993
Less Fiscal Year Expenditures 962,899 668,463 - 226,807 1,112,993
End of Year Balance ($205,229) $ 62,227 $463,412 0
ROAD CONSTRUCTION/
MAINTENANCE SUMMARY
Previous Year's Balance
Carried Forward
Fiscal Year Revenue
Less Fiscal Year Expenditures
End of Year Balance
Partial Year
1973-74
Fiscal Year
1974-75
$ $ 447,958
447,958 618,955
492,460
. $447,958 $ 574,453
1 The potential unbudgeted surpluses which would occur under Alternates II and III are not shown here.
If the Alternate I situation became apparent, the city council could reevaluate proposed levels of service
for the partial year.
CONSIDERATION OF ANTICIPATED FUTURE CAPITAL
IMPROVEMENTS
In addition to the routine operational expenses and one year's street
construction expense set forth in the previous section of the report,
there are other types of major capital improvements which Rancho Palos
Verdes residents must consider for financing and/or construction in the
foreseeable future. These are discussed below as they affect the new
city's finances.
Street and Road Construction
After incorporation, the decision whether and when to make street im-
provements in Rancho Palos Verdes will rest with citizens of the city
through their elected representatives. The Street and Road Deficiency
Report submitted to the state by the Los Angeles County Road Depart-
ment in May 1968 can be important input to this decision. Projected
deficiencies are predicated on traffic projections resulting from a con-
templated high population density concentrated at the end of the road
network. Based on this assumption, the table below shows projected
street deficiencies through 1980.
Street Segment
Crest Road, Rolling Hills City Limit to Ganado
Crenshaw Boulevard, 200 south of Seacrest Drive
to Palos Verdes Drive South
Palos Verdes Drive East, Sunnyside Ridge to Via
Canada
Palos Verdes Drive East, Ganado to Palos Verdes
Drive South
Palos Verdes Drive South and Palos Verdes Drive
West, Palos Verdes Estates City Limit to Palos
Verdes Drive East
Cost
$ 50,000
402,000
442,000
846,000
1,264,000
Local Streets 244,000
Total $3,248,000
33
1
As favorable factors, it should be noted that:
• The above revenue figures are based upon the assump-
tion of a static population of 35,200, while the deficien-
cies tacitly assume population growth and development.
As a matter of fact, the population will be increasing,
resulting in a greater receipt of Gas Taxes from the
state since such taxes are distributed according to
population. Thus, greater sums will be available for
street improvement.
• The expressed desire of the citizens to maintain a low-
density residential environment compatible with the
present character will tend to diminish the deficiencies.
It is estimated that these deficiencies will be reduced
to approximately $1,840,000.
A review of the operating .budget shows that a surplus of $447,958 in
Gas Tax revenues is available after the first partial year 1973-74 (since
the County continues supplying services of the County Road Department
through June 30, 1974) . After the first full fiscal year (1974-75), this
amount is increased by $126,495 annually.
This approximation indicates that the new city, using only its gas tax
funds available for construction and without subsidy from the General
Fund, should be able to eliminate essentially all projected street defi-
ciencies
efi-
ciencies before June 30, 1983.
Generally speaking, the new city will be in as good or a better position
than many cities with respect to its street deficiencies. It will continue
an adequate program of street maintenance, require new streets to be
furnished by developers; allow owners of private, undedicated streets
to continue to maintain these streets until they are brought up to city
construction standards; and apply all Gas Tax construction funds received
toward a continued program of street improvement.
Local street improvements would be financed either from general city
funds or from 2107 Funds, if the improvements become sufficiently vital
to those areas.
34
1
1
1
1
1
1
1
1
1
1
1
1
The Portuguese Bend Slide Area
The perplexing problem of the continuing earth slide at Portuguese Bend
and the existence of other potential slide areas present fiscal problems
to the city, related chiefly to the issuance of building and grading per-
mits and to street construction and maintenance. Los Angeles County,
with its tremendous resources, has not been able to solve the problem
but undoubtedly has evolved rules, regulations, and ordinances to pro-
tect the County from any further liability. These procedures and safe-
guards, based upon the best legal counsel available, should be imme-
diately adapted to and adopted by the new city upon incorporation.
Street maintenance costs in this area are included in the estimate of
contract cost for street maintenance furnished by the City -County Ser-
vices
er-
vices Section of the Chief Administrative Office . of the County and are
consequently covered in that portion of the operating budget. Any costs
for street construction or reconstruction are covered in the previous
section concerning Street and Road Construction costs.
Sanitary Sewers
As stated earlier in the report, the financing of any capital improve-
ments relating to sanitary sewers would lie in the province of the South
Bay Cities Sanitation District and County Sanitation District No. 5. No
costs would be borne by the new city.
Surface Drainage and Flood Control
Costs of any future capital improvements to storm drainage and flood
control facilities would be borne by the County Flood Control District.
Domestic Water Supply
The area proposed for incorporation receives its water supply through
the facilities of the Palos Verdes Water Company. It is assumed that
35
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
•
service would continue on a franchise basis with the new city. The com-
pany is charged with the responsibility, through the Public Utilities
Commission, to furnish the necessary services to an area as develop-
ment demands. No cost to the city is involved.
Electricity_
The area proposed for incorporation is furnished with electric service
through the facilities of the Southern California Edison Company.
Should the area incorporate, service is expected to continue on a fran-
chise basis. The Edison Company is charged with the responsibility,
through the Public Utilities Commission also, to furnish service accord-
ing to demand, and there will be no cost to the city.
Gas
The area proposed for incorporation is within the service area of the
Southern California Gas Company. It is assumed that the newly incor-
porated
ncor-
porated city would grant a franchise to this company to continue service
within its area. Service is adequate and, in line with the company' s
past policy, will be expanded to meet any development plans that might
arise in the area in the future.
Public Buildings
The only public building which the new city will need is a City Hall suf-
ficient to adequately house its general government functions. These
functions are proposed to be rented or leased at the beginning, so no
immediate outlay is necessary.
ESTIMATED COST TO RANCHO PALOS VERDES CITIZENS ARISING
FROM INCORPORATION
Cost to Rancho Palos Verdes residents arising from the proposed incor-
poration can be determined by considering three general factors:
36
0
.1P
1
1
1
1
1
1
1
1
1
l
1
1
1
1
1
1
• Any additional property taxes resulting from
incorporation
• Other costs arising from incorporation
• Savings resulting from incorporation
In the case of the incorporation format proposed for Rancho Palos
Verdes, the County Road District No. 4 Tax presently levied by the
County at the rate of 7.02 cents would be automatically dissolved and its
tax rate eliminated for the succeeding tax year by the act of
incorporation.
Business licenses are proposed to be continued at the same rate as pres-
ently
res-
ently charged by the County, so no additional cost to the new city's busi-
ness
usi-
ness areas would arise from incorporation.
Building and other construction permits at the rates charged by the
County appear adequate, and no change is proposed.
In summary, extra costs to new city residents arising from the act of
incorporation would amount to a net property tax increase of 11.94 cents
(18.96 cents less the 7.02 -cent district road tax) .
GENERAL PROJECTION OF THE POSSIBLE FISCAL POSITION OF
SUCH A NEW CITY IN 1975 AND 1980
A projection of this type cannot adequately made in concrete terms
because of the extreme number of variables involved. Therefore, the
matter will be generally discussed, with extrapolations made from the
favorable outcome of the projected budget.
Capital Improvements
Cha ra cte ri stic s lly, cities in a rapid growth phase such a s that being
experienced by Rancho Palos Verdes can adequately finance the
37
maintenance and operational costs involved. Their principal difficulty
has been the financing of major capital improvements --both land acqui-
sition and facility construction costs, the need for which develops in
advance of the total revenue base expansion necessary to help defray its
costs. Therefore, we shall first address this prime concern in looking
at the fiscal outlook for the new city in 1975 and 19 80 .
In the case of Rancho Palos Verdes, the majority of these costs would
not be a city obligation but would be handled by existing special districts.
Since none of these are proposed for dissolution except County Road
14atriat....21....ivpich is automatically dissolved by the act of incorpora-
tion) , these districts would continue to furnish both their special ser-
vices and the capital improvements to accommodate the area's growing
demand from within their own revenue structure. This would hold true
ether or not the area were incorporated. --C4-124.4
P
Specifically, all future capital improvements arising from the need for
fire stations, sewage disposal facilities, surface drainage and flood
control facilities, refuse disposal sites, and parks and recreation facil-
ities would be borne by existing special districts. The school districts
would bear the costs of extra school site acquisition and facility
development.
The new city's police services, traffic enforcement, street maintenance,
jail, emergency ambulance, animal control, health services, tax assess-
ment and collection, and Civil Defense and Disaster functions would be
contracted from the County. Rancho Palos Verdes would pay for neces-
sary
eces-
sary capital improvements to accommodate growth through increased
annual contractual payments to the County, which would amortize them
over an extended period of time. There would be no local bond issues
for the city to promote or service.
38
1
1
1
i
1
1
1
1
1
1
1
1
Thus, the above capital improvements are either divorced from the obli-
gations of the new city, or payment for them is conveniently spread over
a number of budgets by the use of County contractual arrangements.
The only major category of capital improvements—the -the construction of
which might lead to substantial city expenditures --would be those for
realignment, reconstruction, or widening of existing roads and streets;
construction of new streets in new developments would be the responsi-
bility of the developer or subdivider.
The new city is well situated geographically, relative to major expendi-
tures
xpendi-
tures for street improvements, since
The Palos Verdes Peninsula traffic profile is unique in the
Los Angeles metropolitan area in that it has no involvement
with "through traffic," since the Peninsula is not a part of
either a north -south or east -west travel corridor. This
characteristic is a major advantage from the standpoint of
requiring the construction of streets and highways capable of
handling traffic generated only_ by the developments on the
peninsula.'
Furthermore, relative to the present capacity of the existing street sys-
tem on the Peninsula:
This analysis indicates, therefore, that an additional 4,750
vehicles can be handled during the outbound A.M. peak hour.
In terms of potential development, it demonstrates that
11,800 additional dwelling units could be constructed without
exceeding the capacity of the existing street system.'
1 Linscott Associates, Traffic and Parking Consultants, Palos Verdes Peninsula
Traffic Analysis, April 1968, p. 1.
•
39
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Consequently, in addition to the estimated 56,500 population of the unin-
corporated area and the three Peninsula cities at the time the parking
study was made, the present road and street system can be expected to
accommodate an additional 40,120 people, for a total population of 96,620
--or slightly more than a maximum population of 90,000 quoted by
Peninsula study groups.
Aside from improvements for the greater traffic mobility convenience
of. Peninsula residents, it seems obvious that no significant street con-
struction costs will arise by either 1975 or 1980. Since these costs
would represent the primary source of capital outlay expense to be
borne by the new city, the new entity's major fiscal concern will be to
ensure its ability to adequately fund maintenance and operation costs,
including adequate street maintenance.
Revenue s
The revenue situation in a viable new city is usually improved over the
first two or three years of its existence as it adjusts to its job. Minor
but numerous sources of incidental revenue are available; and fee, per-
mit and license cost structures are developed. Following adoption of
the General Plan and new zoning ordinances, the city council and the
Planning Commission are able to better determine city policy toward
development of commercial and non -nuisance light industrial properties.
Proper, controlled development of such land uses can be utilized as a
balancing factor to provide an expanded revenue structure. Such devel-
opment would have the further economic advantage of providing more
local employment for residents, decreasing the volume of inbound and
outbound commuter traffic, and increasing the proportion of earned pay-
roll spent in the new city with little disturbance to the Peninsula way of
life.
As population increases in Rancho Palos Verdes, so also will revenues.
Those from sales tax, cigarette taxes, and business licenses will
40
1
1
1
1
1
1
1
1
1
1
1
1
1
increase only if adequate commercial and non -nuisance industrial areas
are developed. Other sources, which are in some way directly propor-
tional to population increase, will increase with or withoutbusiness
development. These include revenue from the motor vehicle in -lieu
tax, gas tax, franchise taxes, court and traffic fines and forfeitures,
and that portion of the cigarette tax which is based upon population.
Maintenance and Operational Cost
Aside from general increases in costs due to changes in the national
economy, the post 1974-75 operational costs of the city (postulating no
change in service levels) should be minimal since street maintenance
costs should remain relatively stable. The same should hold true of
law enforcement services which, despite some population growth, will
continue for the same land area and essentially the same street mileage.
The relative isolation of the Peninsula from through traffic and its own
generally high moral atmosphere are further contributing factors toward
continued moderate costs for this service.
General government costs will move slowly upward for about 3-1/2
years, at which time personnel merit increases will level off; thereafter,
they would vary with the economy.
Taken as a whole, the fiscal situation of the city should improve as the
area grows increasingly desirable in contrast to crowded conditions
developing elsewhere. A further fiscal assist would arise from the
added revenue from sales tax on gasoline and some portion of federal
revenue sharing.
Sometime between 1975 and 1980, service levels could be raised slightly
as the city's fiscal position improves due to a developing sales tax and
other business revenues from carefully conceived and executed commer-
cial areas.
41
III. NON -FISCAL ASPECTS OF INCORPORATION
The ultimate in local home rule and in scope of desired services in
municipal affairs is attained for an area by the act of incorporation.
Cities in California are first incorporated as general -law cities and
may, by subsequent election or elections, establish a city with its own
separate charter. In recent years, the general law has become so in-
creasingly comprehensive and flexible that few cities have proceeded to
charter status.
The reasons usually motivating a community to incorporate are:
• The desire to gain greater control over local planning,
zoning, and land use
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• The desire for greater representation in local affairs
• The desire for municipal identity and greater bargain-
ing strength in intergovernmental relations
• The desire for a higher level of service or for a dif-
ferent kind of service
This desire to incorporate is often whetted by the discovery by citizen
committees that some or all of these gains can be had at no additional
cost or at a cost the majority of voters find to be justified by the
advantages.
When a community incorporates, particularly in Los Angeles County, it
faces another choice—whether -whether to contract with the County for some or
all of its services or to develop all of its own facilities and staff. Some
may object to contracting with the County on the grounds that, if this is
done, they may as well avoid the procedure and costs of forming a new
city. It should be noted that there is an important difference. When a
city incorporates, the people --through their elected representatives--
make
epresentatives--
make their own decisions concerning the kinds and levels of service they
want. In negotiating a contract with the County, they are an e3ual party
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at the bargaining table, in a position to specify the amount and kind of
service they want as long as they are willing to pay the cost. Further-
more, if they are dissatisfied with a particular service, they may estab-
lish their own facilities and personnel to provide that service
themselves.
There are clear advantages to contracting, at least in the early stages.
The new city thereby spares itself an initial investment in capital im-
provements and equipment and can take advantage of experienced County
personnel for routine services while it concentrates on basic planning
and policies.
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Tututta of Elm :Aitrie;:i
Offire Lif Hut gshrriff
Xtuitirr
Kos Anlyirv,(CatiforniaUU,1I2
j. PITCHESS, SHERIFF •
January 10, 1973
Mr. James Herbert
Richards, Watson & Dryfuss
615 South Flower Street
Los Angeles, California 90017
.Dear Mr. Herbert:
In response to your request for information relative to services
provided to a newly incorporated city at the meeting with Assistant
Sheriff Earle and Lieutenant Hansell in Supervisor Hayes' office,
the following has been the policy of the Sheriff's Department since
the inception of the contract program:
"Upon incorporation, a new city should adopt at its
first council meeting the agreement for enforcement
of city ordinances, which provides that the Sheriff
will enforce local police ordinances until the end of
the fiscal year, and in return the city will turn over
to the County all fines and forfeitures derived from
the enforcement of such municipal ordinances. The
purpose of this temporary agreement is to give the new
city time to receive certain state and local revenues
sufficient to pay the cost of law enforcement services."
This policy is in accord with Section 34333 of the Government Code
which provides:
"Section 34333. Duty of board of supervisors to
continue to furnish services to area incorporated
from unincorporated territory. Whenever a city has
been incorporated from territory formerly unincorporated,
the board of supervisors shall continue to furnish, with-
out additional charge, to the area incorporated all
services furnished to the area prior to the incorporation.
Section 34333 (Continued)
Such services shall he furnished for the remainder
of the fiscal year during which the incorporation
became effective or until the legislative body of
the city requests discontinuance of the services,
whichever first occurs."
The current level of service provided to the area proposed for
incorporation is as follows:
3 - Two-man general law cars on the early morning
shift
3 -- One-man general law cars on the day shift
3 - Two-man general law cars on the evening shift
-- Detective services as needed
These units also provide service to the small County islands that
are not proposed for incorporation.
Once the city has incorporated, traffic enforcement becomes a
responsibility of the' new city. It is estimated that, by virtue of
the exclusion of some unincorporated areas, the traffic function can
be assumed through the utilization of the same number of personnel
listed above by re -deployment and assignment. The estimated cost of
this service based upon current rates, which are now under review,
is $850,000.
The final contracted level of service will, of course, be based upon
discussions between the new council and the commander of the patrol
station serving the city. Many factors must be considered and many
options are available.
If you are in need of further information or clarification, please
let us know.
Sincerely,
PETER J, ITCHESS
SHERIF
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APPENDIX B. PERSONNEL SCHEDULE
An economical use of personnel will be possible in the new city if organ-
izational recommendations are followed.
In a contract city such as Rancho Palos Verdes, the number of employees
is small at the outset since administrative, planning, coordinative and
related staff functions will constitute the principal workload. Field ser -
vices will be performed on a contract basis by County employees. If
staff workload expands, its accommodation will ordinarily involve the
-► ' r -.. .:.rte, �y _,....r
addition of clerical -level personnel only.
The proposed number of employees for Rancho Palos Verdes is purposely
kept minimal since adding personnel when needed is much easier than
deleting unnecessary personnel already employed. Salary levels pro-
posed are equivalent to those for similar positions in this area, and
necessary level of performance has been considered. The following per-
sonnel schedule anticipates employment of ten city staff members.
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Partial Year
1973-74
CITY MANAGER'S OFFICE
Fiscal Year
1974-75
City Manager -City Clerk (75%) $16,500 $19,800
Administrative Secretary 6,600 7,920
Administrative Assistant 9,900 11,800
CITY CLERK'S OFFICE
City Manager -City Clerk (25%)
Deputy City Clerk
Secretary -Clerk (2nd Deputy)
DIRECTOR OF FINANCE -
CITY TREASURER'S OFFICE
Director of Finance -City Treasurer
PLANNING AND ZON1NG OFFICE
Planning Director
Associate Planner
Assistant Planner
Administrative Secretary
Total
5,500
6,600
4,680
6,600
7,920
5,616
7,700 9,240
14,667
11,000
8,800
6,600
$98,547
17,600
13,200
10,560
7,920
$118,176