78-0629_CC_Minutes_Special MeetingI I �
JUNE 29, 1978
SPECIAL MEETING OF THE CITY COUNCIL
OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA
The Special Meeting of the City Council of the City of San
Juan Capistrano, California, was called to order by Mayor
Friess at 8:05 P.M., in the City Council Chamber.
ROLL CALL PRESENT: Kenneth E. Friess, Mayor
James F. Thorpe, Mayor pro tem
Lawrence F. Buchheim, Councilman
Gary L. Hausdorfer, Councilman
ABSENT: Phillip R. Schwartze, Councilman
STAFF PRESENT: James S. Mocalis, City Manager; E. Phillip Hale,
Assistant City Manager/Director of Administrative Services;
William D. Murphy, Director of Public Works/City Engineer;
Thomas G. Merrell, Director of Community Planning and Development;
James S. Okazaki, City Attorney; Mary Ann Hanover, City Clerk.
ADOPTION OF SYSTEMS DEVELOPMENT CHARGE AND TAX
(86) Mayor Friess announced that this Special Meeting was called
for the purpose of considering establishment of a taxing
system on new development to be paid in conjunction with
payment of building permit fees. After June 30th, pro-
visions of Proposition 13 will be in effect which require
approval of two-thirds of the electorate to impose new
taxes.
Written Communications:
Report dated June 29, 1978, from the City Manager, forwarding
copies of a proposed Ordinance and Resolution.
Mayor Friess welcomed comments from members of the audience.
Tom Hribar, 26362 Via Alano, addressed the Council in
opposition to the matter and suggested that more creative
methods be found for generating funds.
Marilyn Williams, 29931 Camino Capistrano,'noted'concerns
with the effect of the program on the City's industrial/
commercial incentive plans and stated that the program is
tantamount to a tax on undeveloped property that will be
paid at the time the property is developed. Mrs. Williams
suggested the program should be closely looked at from an
equity standpoint.
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Mayor Friess advised that additional Public Hearings will
be held and that the City has the option of rescinding the
ordinance at any time. Mayor Friess requested that members
of the community suggest viable methods of generating
operating funds and noted that the City is in the position
of accommodating development growth at a rate of 15-20%
per year. Councilman Thorpe noted that the proposed tax
would enable installation of public improvements such as
sewers, streets, and storm drain facilities to provide the
services required for continued commercial and residential
'
growth. Mayor Friess noted that without such capital
improvements the City will lose business interests.
Further, the City should avoid the type of restrictions
placed on State funds to the extent possible. Councilman
Hausdorfer stated that the City has a responsibility to
explain the need for the imposition of the tax during
upcoming budget hearings. Councilman Thorpe stated that
all City programs and activities should be re-evaluated
during budget hearings, along with the new taxing ordinance.
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/ I 1
Mr. Thorpe requested that staff provide a comparison between
the costs to a new home from the proposed ordinance and the
amount of property taxes over a 10 -year period of time.
Councilman Buchheim noted that the impacts of Proposition 13
are not presently known, that means of gathering revenues
from other sources should be investigated and, if possible,
the ordinance should be considered for future repeal.
tion of Ordinance No. 364, Establishing Systems
DevelopmentCriarge:
The City Attorney read the title of the Ordinance next in
order. It was moved by Councilman Thorpe, seconded by
Councilman Buchheim and unanimously carried to waive
further reading of the Ordinance. It was moved by _
Councilman Thorpe and seconded by Councilman Buchheim
that the following Ordinance be adopted:
ORDINANCE NO. 364, SYSTEMS DEVELOPMENT CHARGE -
AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, ESTABLISHING A SYSTEMS DEVELOPMENT
CHARGE ON DEVELOPMENT IN THE CITY (URGENCY)
The motion carried by the following vote:
AYES: Councilmen Hausdorfer, Thorpe, Buchheim
and Mayor Friess
NOES: None
ABSENT: Councilman Schwartze
The Ordinance provides that any applicant for a building
permit for a new development shall pay the systems develop-
ment charge tax in conjunction with payment of the building
permit fee. Exemptions include alterations which do not
increase the floor area of a structure, additions to single
family residential dwellings, and low and moderate income
level housing. All revenues collected pursuant to the
Ordinance are to be used solely for design, construction
and acquisition of capital projects required by development
growth; those revenues to be placed in a separate account.
The funds may be accumulated in unlimited amounts for
expected further expansion costs; and, any expenditure of
such funds shall be by direction of the City Council. As
a revenue measure and pursuant to Government Code
Section 36936, the Ordinance takes effect immediately.
Adoption of Resolution No. 78-6-29-1 Setting a
Systems Development Charge Tax:
It was moved by Councilman Thorpe and seconded by Councilman
Hausdorfer that the following Resolution be adopted:
. 78-6-29-1, SETTING A
DEVELOPMENT CHARGE TAX - A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, SETTING A SYSTEMS DEVELOPMENT CHARGE
TAX OF ONE PERCENT (1%) OF THE ESTIMATED BUILDING
PERMIT VALUATION OF A BUILDING
The motion carried by the following vote:
AYES: Councilmen Hausdorfer, Thorpe, Buchheim
and Mayor Friess
NOES: None
ABSENT: Councilman Schwartze .
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The Resolution sets a tax equal to 1% of the estimated
building permit valuation of a building payable concurrently
with the payment of any and all building construction fees.
Public Hearings:
It was moved by Councilman Thorpe, seconded by Councilman
Buchheim and unanimously carried that staff be directed
to set Public Hearings on the Ordinance no later than
October 18, 1978, in conjunction with Public Hearings on
the adoption of the 5 -year fiscal budget. The City Manager
advised that budget meetings should commence in August.
ADJOURNMENT
There being no further business before the Council, the meeting was
adjourned at 9:00 P.M., to the next regular meeting date of
Wednesday, July 5, 1978, at 7:00 P.M., in the City Council Chamber.
Respectfully submitted,
'MARY �ANN11 OVER, CITY CLERK
ATTEST:
0
KENNETH E. FRIESS', OR
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6/29/78
451
N O T I C E
A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN CAPISTRANO, CALIFORNIA, WILL BE HELD ON
THURSDAY, JUNE 29, 1978
AT 8:00 P.M., IN THE COUNCIL CHAMBER OF CITY HALL,
32400 PASEO ADELANTO, SAN JUAN CAPISTRANO. THE
PURPOSE OF THE MEETING IS TO CONSIDER A SYSTEMS
DEVELOPMENT CHARGE TAX.
DATED: June 28, 1978
KENNETH E. FRIESS, M YOR
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
AFFIDAVIT OF POSTING
NOTICE OF SPECIAL MEETING
1. Councilman Lawrence F. Buchheim
2. Daily Pilot, 25201 La Paz Road, MV
3. Register, 25631 Taladro Circle, MV
4. Daily Sun -Post 1542 N. E1 Camino Real
DATED: June 29, 1978
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452
I, JAMES S, MOCALIS
, do
hereby certify that
'
on June 28,1978, before
the hour of 8:00
o'clock P.M., I
personally delivered a
copy of the Notice
of Special Meeting of
the City Council of the
City of San Juan
Capistrano, California,
to be held on Thursday,
June 29, 1978, at
8:00 P.M., to the
following:
1. Councilman Lawrence F. Buchheim
2. Daily Pilot, 25201 La Paz Road, MV
3. Register, 25631 Taladro Circle, MV
4. Daily Sun -Post 1542 N. E1 Camino Real
DATED: June 29, 1978
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452
453
7#
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
AFFIDAVIT OF POSTING
NOTICE OF SPECIAL MEETING
I LORETTA A. MURRAY , do hereby certify that
on June 28,1978, before the hour of 8:00 o'clock P.M., I
Personally delivered a copy of the Notice of Special Meeting of
the City Council of the City of San Juan Capistrano, California,
to be held on Thursday, June 29, 1978, at 8:00 P.M., to the
following:
1. Los Angeles Times - Orange County
2. News Post
DATED: July 3, 1978
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
AFFIDAVIT OF POSTING
NOTICE OF SPECIAL MEETING
I, Cheryl Johnson , do hereby certify that
on June 28,1978, before the hour of 8:00 o'clock P.M., I
personally delivered a copy of the Notice of Special Meeting of
the City Council of the City of San Juan Capistrano, California,
to be held on Thursday, June 29, 1978, at 8:00 P.M., to the
following:
Councilman Hausdorfer
Councilman Schwartze
Councilman Thorpe
Mayor Friess
Lynn Smith, Capistrano Valley News
DATED: July 3 1978 z
r
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