CC MINS 19871201 ADJADJOURNED REGULAR MEETING
RANCHO PALOS VERDES CITY COUNCIL
December 1, 1987
The meeting was called to order at 6:14 P.M. by Mayor Hughes, at Fred Hesse
Park, notice having been given with affidavit thereto on file.
Present: RYAN, BACHARACH, McTAGGART, HINCHLIFFE and MAYOR HUGHES
Also present were City Manager Dennis McDuffie, Finance Director Kevin Smith,
City Clerk Jo Purcell, Public Works Director George Wentz, Environmental
Services Director Robert Benard, and City Attorney Steve Dorsey,
Financial Advisory Committee on Taxation Recommendation - Finance Director Smith
presented the memorandum from the F.A.C.T. Committee and their recommendations
to prepare for an election in June 1988 by: a) appointing a Sub - Committee of
the City Council to meet with F.A.C.T. at their next meeting - December 7,
1987; b) formally request the City Council to direct the City Attorney to sub-
mit sample ballots based on the F.A.C.T. recommendations to the City Council;
and c) request the Finance Department to prepare a five year budget projection
for all expenses and revenues.
He then presented the staff alternatives: 1. Continue the Utility Tax at the
current level. 2. Continue the Utility Tax at the current level and tax or
charge undeveloped land at an equal rate. 3. Have a Parcel Tax election at a
rate equivalent to the utility tax at either a 5% or 9% level. 4. Do nothing
and have the current Utility Tax end in November, 1988.
Staff and Council discussed whether there should be a tax election, the revenues
received from future development, and the effects on the City's finances without
the utility or parcel. If no additional tax was implemented, it was felt that
there would be a two year gap in the CIP.
The discussion next centered on the updating of the infrastructure study which
it was estimated, would-cost approximately $19,000. This update would provide
additional information on the condition of the infrastructure and aid in
establishing CIP priorities. The next items of concern were: the number of
miles of preventative maintenance done annually, how the improvements along
Palos Verdes Drive South would be paid for by the developments in that area, and
the effects of the low and no property tax bill would have on the City's revenue
position.
Council then proceeded to review the items listed on the Capital Improvement
Plan and the funding sources and completion dates for the twenty -six projects
listed as the City's priorities,
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Additional concern was then expressed about the amount of revenue shortfall that
the City would face when the utility tax sunsets. Also discussed was the time-
line for the Long Point project and when revenues could be expected to start
coming in to the City.
Additional discussion then took place on the condition of the streets and what
standards that were set by the pavement study for their condition, the tech-
nology used in the road update study, and if the results would be influenced by
the condition of the bed under the road surface. More discussion took place on
the timeline for construction of the Barkentine /Deadman' s Canyon project, the
necessity of installing irrigation at Rancho Palos Verdes Park and if the
necessary park maintenance was included in the CIP list of projects.
With regard to the tax issue, discussion centered on the kind of tax to be pro-
posed for the ballot, the amount of tax needed in order to fund the CIP pro-
jects, how the amount of a parcel tax equated to the various percentages of the
utility tax, and if there should be a $1 per foot frontage tax on undeveloped
land and a utility tax,
Concern was expressed about the amount of involvement and publicity the City
could give a ballot proposal, in particular the amount of Council involvement
and if the City could make any expenditures on its behalf. The .suggestion was
made that a citizens committee should be formed to publicize this issue.
Several suggestions were made about the date for holding the election and
whether it should be June or November, 1988.
After discussion of the expected date of receipt of revenue from a parcel tax,
staff was requested to find out how quickly the County could put a parcel tax on
the property tax bill and when the revenue would be received.
It was the consensus that the subcommittee (Bacharach /Mc Taggart) should meet
with the FACT Committee and discuss with them the alternatives suggested such as
placing the issue of a 5% utility tax and steet frontage tax of $1.00 on undeve
loped property on the June 1988 ballot and the role of the F.A.C.T. Committee in
that election.
ADJOURNMENT
ATTEST:
At 7:30 P.M. the meeting adjourned on
motion of Councilman Mc Taggart .
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