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HomeMy WebLinkAbout1982-11-23; City Council; N/A; Proposition HNOVEMBER 23, 1982 c TO: CITY COUNCILrt to FROM: City Manager tn 3 PROPOSITION H 'S: 4^ The purpose of this memo is to list some of the issues which ",j Council needs to discuss in connection with Prop H. £ 1. LEGAL INTERPRETATION -H Council may wish to have an opinion concerning the legal o> ramifications of the ordinance. City Attorney has already g done some research. League of California Cities and other municipal attorneys might be consulted. An opinion listing -p legal issues in the ordinance would assist Council in a deciding how to implement Prop H. -H u • 2. GUIDELINESiH cn ^ .^ The initiative ordinance requires the Council to adopt to^ guidelines to implement the ordinance. Before those guide- ,013 lines can be written, we need some discussion by Council on §'3 how you wish to interpret and carry out the ordinance. Si tn -HP. 3. CAPITAL PROJECTS-HO •u I-H . S ? In the current CIP are 8 projects which will exceed o o) $1 million over the next 5 years: U Ti ^2 City Hall Expansion $5.1 w Police/Operations Center 7.2 n Q' Calavera Park 1.2 % g Macario Park 1.9 "• o Stagecoach Park 2.8 u-P Poinsettia Bridge 1.2 ^^ Encina Phase IV 2.4 Calavera Effluent Line 1.0 (0 -H * u Will each project require a vote? Are some of the projects 1 exempt? Does the Council wish to reconsider any of those <N projects? \ £ 4. ELECTION \ M Assuming the projects listed do require a vote of the people, how shall we schedule the election? Should all projects be included at one election? Should the election be a special election or should the Prop H issues be included on a general election ballot? NOVEMBER 23, 1982 PROPOSITION H PAGE 2 5. CITIZEN INFORMATION Any election will require the City to provide information to the voters about the projects. How should this be done? Should we schedule Town Hall meetings, provide mailers, form a citizens committee? One idea would be to prepare Cable TV tapes using the City's CATV Foundation. Because of the com- plexity of the projects and the different financing methods, I anticipate a major effort will be needed to inform the voters. 6. ALTERNATIVE PROCEDURES The current policy of the City is to require developers to pay the City a fee to cover the cost of public facilities, parks and sewers. The City then accumulates the funds and builds the public facility when needed. An alternative procedure would be to require the developer to build specified improvements (parks) and give a credit against the required developer fees. 7. VESTED PROJECTS The ordinance excepts projects on which substantial work has already been done. All of the 8 projects were approved by Council prior to adoption of Prop H. Are any of them exempt from Prop H? - The Police/Operations Center City has purchased land and has hired an architect. - The Parks Land has been acquired by City; preliminary site plans have been approved; the parks are included in an approved master plan for parks. - Poinsettia Bridge City has entered into a contract with Occidental and other developers to build the bridge upon payment of fees. There is a two year termination date on the contract. City has designed the bridge and applied for permits from Coastal Commission. NOVEMBER 23, 1982 PROPOSITION H PAGE -3 - Calavera Effluent Line City has entered into agreement to finish the Calavera wastewater reclamation plant and granted rights to developers. - Encina Phase IV City is a partner in a joint powers agreement (Encina) to build and operate the sewer plant. Current construc- tion (Phase IIIA) is over 80% grant funded. Phase IV will be the subject of an amendment to the JPA whereby Leucadia will enlarge the plant subject to Carlsbad and others paying their fair share at a later date. 8. DEVELOPER FEES The Council has adopted a Public Facility Management System whereby developers are required to provide public facilities necessary to serve new developments. In lieu of building facilities, the City accepts various fees to cover estimated construction costs. In a sense the City has a contract with each developer to build the facilities as needed. If the voters reject a planned project, what happens to the developer fees? 9. GRANTS Under the ordinance, grant funded projects are exempt from the election process. Normally grants are defined as proj- ects where federal, state or other funds are specifically earmarked for a project or program. The Agua Hedionda-Carlsbad Boulevard Bridge project is such a grant funded project which exceeds $1 million. Most grants require some local matching contribution. We need a definition of what constitutes a grant funded project. 10. REDEVELOPMENT PROJECTS The downtown redevelopment district has not spent significant monies to date. In the future tax increment financing will become available. It is possible that major projects will become feasible where the City could borrow money to be repaid from tax increment and other revenues. If such proj- ects exceed $1 million, will they also be subject to voter approval? NOVEMBER 23, 1982 PROPOSITION H PAGE 4 11. JOINT POWERS AUTHORITIES In the past the City has financed projects using independent joint powers authorities. Examples are the City Hall Build- ing Authority and the May Company Parking Authority. Are such financing authorities required to receive approval of the voters? SUMMARY Proposition H, like Proposition 13, raises many questions of interpretation and implementation. The purpose of this memo is to get some of these issues on the table so that the City Council can arrive at policy decisions. The immediate problem concerns what to do about the current capital improvement program. The most critical issue is the Police/Operations Center project which is already underway. It appears that an early election at least on that project will be needed. Most of the other projects could be deferred for a year or two. FRANK ALE SHI RE City Manager Attachment (Ordinance No. 1255) cc: Department Heads, w/c ordinance FArcle ^ B. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 ?A 25 26 27 ORDINANCE NO. 1255 AN INITIATIVE ORDINANCE OF THE CITY OF CARSLBAD, CALIFORNIA, AMENDING TITLE 1 OF THE CARLSBAD MUNICIPAL CODE BY THE ADDITION OF CHAPTER 1.24 TO REQUIRE VOTER AUTHORIZATION FOR REAL PROPERTY PURCHASE OR IMPROVEMENT PROJECTS WHICH COST IN EXCESS OF $1,000,000. The people of the City of Carlsbad, California do ordain as follows: SECTION 1: That Title 1 of the Carlsbad Municipal Code is amended by the addition of Chapter 1.24 which reads as follows: "Chapter 1.24 EXPENDITURE LIMITATION Sections: 1 111 1 1 1 1 1.24.0 .2 .2 .2 .2 .2 .2 .2 .2 10 4 4 4 4 4 4 4 4 .010 .020 .030 .040 .050 .060 .070 .080 Pur Pu r pos e Def init Vote Re and In t ent ions qu De t ermina ired t ion of Cos t Guide lines Exemp t ion Amendme Sever ab pose and nt il In for or ity ten Ce r.t ain Repeal t Th e ac Projects The acquisition and/or development of real estate by the City of Carlsbad has profound financial impacts upon the budget of the City and upon the tax burden imposed upon the taxpayers; The City's financial resources have become more constrained as a result of the passage of recent constitutional amendments such as Proposition 13 and the Gann Initiative Spending Limitation, thereby increasing the significance and importance of decisions by the City to spend large amounts of money to purchase or develop real property; In the absence of the provisions of this ordinance requiring voter approval for major land acquisition or development projects by the City these decisions are often made without adequate public review and comment in the context of an overall capital improvements program; 28 1 It is the intent of this ordinance to provide the citizens and taxpayers of Carlsbad with an opportunity to express directly 2 their preference by vote prior to major city expenditures for the purchase or development of land 3 It is not the intent of this ordinance to interfere with the 4 normal day to day administration of the City or with routine ongoing capital expenditures; 5 1.24.020 Definitions. 6 For purposes of this ordinance, the following words and 7 phrases shall have the following definitions: 8 a. "Effective Date" shall mean the date on which this proposed ordinance was adopted by the City Council of the City of 9 Carlsbad or was passed by the voters at the polls whichever occurs first. 10 ise or '11 lease of any real property, improved or unimproved, within or paid 12 occursfirst. b. "Real Property Acquisition" shall mean the purchas lease of any real property, improved or unimproved, within without the corporate limits of the City of Carlsbad to be for in whole or in part by city funds. 13 c. "Improvement to Real Property" shall mean the actual physical construction of improvements on real property owned, 14 leased, or controlled by the City, or the modification, enlargement, or alteration of existing improvements on such 15 property, 16 d. "City Funds" shall mean City of Carlsbad general fund monies; federal general revenue sharing monies and all other 17 monies, but shall not include categorical federal and state grants available to the city for specific purposes. City funds 18 shall not include special assessments. 19 1.24.030 Vote Required. The City of Carlsbad shall make no Real Property Acquisition and/or no Improvement to Real Property the 20 cost of which exceeds $1,000,000 in City funds, unless the pro- posed acqusition and/or improvement project and the cost in City 21 funds is first placed upon the ballot and approved by a majority of the voters voting thereon at an election. A project may not 22 be separated into parts or phases so as to avoid the effects of this ord inance. 23 1.24.040 Determination of Cost. In determining whether or not 24 the cost in City funds of a proposed Real Property Acquisition or Improvement to Real Property exceeds $1,000,000, the following 25 costs shall be included: 26 a. The purchase price of the real estate, including improvements, or the present value of a lease, as appropriate; 27 2 . 28 1 b. The contract price of the improvements; 2 c. All preliminary studies and reports directly related to the acquisition or improvement, including but not limited to, 3 Environmental Impact Reports, architectural renderings, soils analyses, engineering work, and the like; 4 _ . d. Finance cost, if any. 5 1.24.050 Guidelines. The City Council may adopt reasonable 6 guidelines to implement this ordinance following notice and public hearing. 7 1.24.060 Exemption for Certain Projects. This ordinance shall 8 not apply to any Real Property acquisition or Improvement to Real Property which has obtained a vested right as of the effective 9 date of this ordinance. For purposes of this ordinance, a "vested right" shal have been obtained if each of the following 10 is met: 11 a. The proposed project has received its final discretionary j app roval; and 12 b. Substantial expenditures have been made in good faith 13 reliance on the final discretionary approval; and 14 c. Substantial construction has been commenced in good faith reliance on the final dicretionary approval, where construction 15 is contemplated. 16 Whether or not a vested right has been obtained in a particular case is a question of fact to be determined on a case by case 17 basis by the City Council following notice and public hearing. 18 1.24.070 Amendment or Repeal. This ordinance may be amended or repealed only by a majority of the voters voting at an election 19 thereon. 20 1.24.080 Severability. If any section, sentence, clause, phrase, part, or portion of this ordinance is for any reason held 21 to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the 22 remaining portions of this ordinance. It is hereby declared that this ordinance and each section, subsection, sentence, clause, 23 phrase, part, or portion thereof, would have been adopted or passed irrespective of the fact that any one or more sections, 24 sentences, clauses, phrases, parts, or portions be declared invalid or unconstitutional." 25 26 27 3. 28 1 2 3 4! 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EFFECTIVE DATE: In accordance with Section 4013 of the Elections Code of the State of California, this ordinance shall be considered as adopted upon the date that the vote is declared by the City Council, and shall go into effect 10 days after that date. MARY H. CASLER, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) 4.