CITY OF LA HABRA HEIGHTS
MINUTES OF A SPECIAL MEETING OF
THE LA HABRA HEIGHTS CITY COUNCIL
NOVEMBER 29, 2004
1. CALL MEETING TO ORDER
Mayor Borrowe called to order the Meeting of the La Habra Heights City Council at 7:00 P.M. on Monday, November 29, 2004 in the Multi Purpose room at 1245 Hacienda Road.
2. ROLL CALL
Members present were Mayor Borrowe, Mayor Pro Tem Douglas, Councilmembers Carroll, Klein and Millsap. Also present were City Attorney Levin and City Manager Hendrickson.
3. FLAG SALUTE
John Beau led the flag salute.
PUBLIC COMMENTS ON MATTERS ON THE AGENDA
John Beau asked the City Attorney what the rate for his tax is now, and how much higher can it go, and how high under the new 5% maximum rate. He stated that he was not clear if that was one 5% raise or a 5% increase each year. Mr. Beau asked if the 5% maximum permissible rate covers combination Fire/Life Safety Services. Mr. Beau asked if this is a new tax, which requires a 2/3 vote, or is it part of the present tax and only needs a majority vote.
City Attorney Levin explained that the current Fire Tax has not yet been increased to its maximum and has approximately 15% room to increase as it is now. This ballot Measure B would raise it up to 20% or 5% more than it currently could. City Attorney Levin stated that the 5% increase would not happen each year. The rules are that it can increase by 3% or the CPI, whichever is less each year. It is a type of cost of living increase and will continue happening to the Fire Tax. Any increase will cover the combined Fire/Life Safety Services. It does replace the existing tax, so it takes a 2/3 vote. She stated that she could not answer how much his tax would go up because it is up to the needs reported by the City Manager and the discretion of the City Council.
City Manager Hendrickson explained that Measure B is not an automatic increase.
Mayor Borrowe noted that the amount that the tax can increase each year is cumulative.
Mayor Borrowe closed the Public Comments.
City Manager Hendrickson suggested that they consider Items 4, 5 and 6 together.
City Attorney Levin noted that Council should make separate motions on each one.
4. REPEAL OF RESOLUTION 04-49 – PROPOSED FIRE AND LIFE SAFETY SERVICES TAX – MARCH 8, 2005 ELECTION.
RECOMMENDATION: Approve Repeal of Resolution 04-49.
RESOLUTION 04-52 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA HEIGHTS REPEALING RESOLUTION 04-49 WHICH PROPOSED A FIRE AND LIFE SAFETY SERVICES TAX TO REPLACE THE EXISTING SPECIAL FIRE TAX AND SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY AT THE MARCH 8, 2005 GENERAL ELECTION AN ORDINANCE IMPOSING SUCH TAX AND TEMPORARILY CHANGING THE CITYÕS APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION.
City Manager Hendrickson explained that this is a repeal of Measure B (04-49) that was adopted two weeks ago and would allow the Council to set rates up to 20% but would not happen automatically.
5. CONSIDERATION OF BALLOT MEASURE PROPOSING AN AMENDMENT TO THE EXISTING SPECIAL FIRE TAX TO ALLOW THE PROCEEDS OF THE TAX TO BE SPENT ON LIFE SAFETY SERVICES, INCLUDING PARAMEDICS.
RESOLUTION 04-54 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA HEIGHTS PROPOSING AN AMENDMENT OF THE EXISTING SPECIAL FIRE TAX AND SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY AT THE MARCH 8, 2005 GENERAL ELECTION AN ORDINANCE ADOPTING SUCH AN AMENDMENT.
RECOMMENDATION: Council Decision to adopt Resolution 04-53.
City Manager Hendrickson noted that Resolution 04-53 took the language out regarding the 20%. It made the technical changes to the wording that the funds we collect from the Fire Fund could be used for Life Safety including Paramedics. That would not change the tax structure and could be raised to 15%. In March it should be raised to approximately 18% (3% or the CPI, whichever is less).
6. CONSIDERATION OF BALLOT MEASURE PROPOSING A FIRE AND LIFE SAFETY SERVICES TAX TO REPLACE THE EXISTING SPECIAL FIRE TAX, INCREASING THE MAXIMUM PERMISSIBLE RATE AND ALLOWING THE PROCEEDS TO BE SPENT ON LIFE SAFETY SERVICES.
RESOLUTION 04-54 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA HEIGHTS PROPOSING A FIRE AND LIFE SAFETY SERVICES TAX TO REPLACE THE EXISTING SPECIAL FIRE TAX AND SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY AT THE MARCH 8, 2005 GENERAL ELECTION AN ORDINANCE IMPOSING SUCH TAX AND TEMPORARILY CHANGING THE CITYÕS APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION.
RECOMMENDATION: Council Decision to adopt Resolution 04-54 and the amount of the Tax Rate permitted by the accompanying Ordinance.
City Manager Hendrickson explained that Resolution 04-54 would be to mirror Resolution 04-49 and to discuss what it would be like to raise it in different increments of 5%. Again, not an automatic increase in tax, only the ability to raise the amount. City Manager Hendrickson provided the Council with a chart showing what 25%, 30%, 35% and 40% would mean in taxes if it were increased to each maximum.
Mayor Borrowe asked how the last sentence in Section 1 of Ordinance 259 pertains to the chart City Manager Hendrickson provided.
City Manager Hendrickson stated that this section does not apply to the chart. This section means that the charge does not change from what is charged now.
City Attorney Levin explained that this language is of the current tax and is not part of what is being amended. Also there are categories in the tax; however, the tax is not based on the value of the land.
Councilmember Klein asked if they could repeal Measure 04-49 and replace it with another Measure in the same motion.
City Attorney Levin answered in the affirmative.
Councilmember Klein offered a motion to approve repeal of 04-49 by Resolution 04-52 and adopt Resolution 04-53 which will change the language to include Fire and Life Safety and to use the tax collected without changing the Tax Rate. The motion was seconded by Councilmember Carroll.
City Attorney Levin noted that this allows the taxes to be paid for Fire and Life Safety Services without changing the Tax Rate structure if it passes by a 2/3 vote on March 5th.
The motion was approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
Councilmember Carroll asked what happens if the Measure fails on the Ballot.
City Attorney Levin noted that if it fails on the Ballot, the existing Fire Tax and the existing maximum rate would remain. The proceeds from the tax would not be able to be used for the Paramedic Services. We would have to do some careful analysis of the costs incurred for Fire Suppression and costs related to Paramedic and Life Safety Services. We would have to figure which hours are related to Fire Suppression and which hours are used as Life Safety Services.
City Manager Hendrickson noted that it was figured that about one-half of the hours served would be for each service.
Mayor Borrowe asked if the Measure failed could the City decide to use General Fund money to pay for the Paramedic Services.
City Manager Hendrickson answered in the affirmative.
Councilmember Millsap reminded everyone that the majority of the calls are associated with Medical Aid.
Councilmember Klein noted that Item 6 has no purpose at this point, as it was for a second choice for a Measure.
Mayor Borrowe offered a motion to not adopt Resolution 04-54 which would have increased the CityÕs Appropriations Limit.
There was no second. The consensus of the Council was to move on to Item 7.
7. AUTHORIZATION OF COUNCIL MEMBERS TO SUBMIT BALLOT ARGUMENTS.
RECOMMENDATION: Select Council Members to prepare Arguments for the Ballot Measures to be presented and discussed at the regular City Council Meeting on December 9, 2004.
City Attorney Levin commented that not knowing which Measure they would place on the Ballot, Item 1 and Item 2 were included. Since Item 1 was chosen, the Council should cross out Item 2 on Resolution 04-55.
City Attorney Levin explained that if the Council does not choose to write an Argument in Favor of, then anyone could submit one. The City Council has first priority to write the Argument in Favor.
Councilmember Klein asked if they could have the City Manager write a draft Argument that they can consider at their regular Council meeting.
City Attorney Levin noted that the City Manager could do that, and if the Council approves, they can all sign it. This can be done at the next Regular Meeting, or they can have a Special Meeting.
City Manager Hendrickson noted the deadline to submit an Argument to the City Clerk is Monday, December 13, by 6 P.M.
City Attorney Levin reminded the Council that as soon as they receive the Argument, it becomes Public.
City Manager Hendrickson stated that it would be on the Agenda for their Regular Meeting on December 9, 2004, and at that time the Argument becomes Public.
Mayor Pro Tem Douglas asked if there was some way the whole Council could get the Argument before the meeting so they would have time to look it over without discussing it between members.
City Attorney Levin stated that it could be done and sent to the City Manager, and he would send it to Councilmembers so they could consider it and make any changes they would like without discussion. At that time it would become Public. Technically, another Councilmember could prepare an Argument in Favor, and it should also be given to the City Manager to distribute, but she advised against it.
Councilmember Klein offered a motion to Adopt Resolution 04-55 and direct Staff to prepare a draft Argument in Favor as amended for consideration at the Regular City Council Meeting on December 9, 2004. The motion was seconded by Mayor Borrowe and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
City Manager Hendrickson explained that from this point there will be 14 days for people to make an Argument which must be turned in to the City Clerk by 6:00 P.M., December 13, 2004. Then there will be 10 days for Rebuttal.
City Attorney Levin explained that the 10th day is a City Holiday, so the Rebuttal days will run from December 13 through 6:00 P.M., December 22, 2004.
ADJOURNMENT
Mayor Borrowe adjourned the City Council meeting at 7:45 P.M. to the next Regular City Council meeting on December 9, 2004 at 7:30 P.M.
ATTEST:
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CITY CLERK, JOHN F. HENDRICKSON