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HomeMy WebLinkAboutAgenda Report - August 20, 1986 (63)Ron Thomas Robert Mullen Jenanne Benjamin Walter Pruss Beryl Georqus6n G TO: THE CITY COUNCIL FROM: THE CITY MANAGER'S OFFICE CIL COI1IMUNICATIO DATE AUGUST 20,1986 SUBJECT: CHARGE OF MEASURE A TASK FORCE Council will recall at'the December 18, 1985 Council Meeting, following receipt of a report from the City Attorney regarding the L.I.F.E. vs the City of Lodi (Green Belt Initiative) suit and discussion, Council, on motion of Council Member Snider, Olson second, agreed to proceed with the appeal process and to move forward with the development of a Task F-)rce to seek viable alternatives to Measure A. The Measure A Task Force consisting of Ann Cerney,-Frank Johnson, A. Fred Baker, John Ledbetter, Ron Thomas, Robert Mullen, Jenanne Benjamin, Walter Pruss,`and Beryl Georguson, have met on numerous occasions: {' Following the most recent meeting of the Task. Force, July 24, 1986, Council Member Snider asked that a copy of the minutes of the City Council meeting of } December 18, 1985 be forwarded to the Task Force as well as a copy of his = letter to the Council dated July 28, 1986. - Council Member Snider feels that it is important for this Council to reiterate its charge to the Task Force and has requested that this matter be placed on the Agenda for the Regular Council Meeting of August 20, 1986. For your information I have included with this Council Communication the following documents regarding this matter: a) Letter from City Attorney Stein dated December 3, 1985 4:, k b),Copy of December 18, 1985 City Council Meeting Minutes c) letter from Council Member Snider dated July 28, 1986 d) Letter from Council Mmber Snider to the Measure A Task Force z s gated August 11, 1986 F j; { ALICE M. REIMC HE City Clerk Y. c t i To: Honorable Mayor and Council Members _ Fran: City Attorney Re: L.I.F.E. vs. City of Lodi. (Green Belt Initiative) Date: December 3, 1985 P Cn November 25, 1985, Su;,erior Court Judge James P. Darrah ruled on a Sunaary Judgmt Motion by the L.I.F.E. Cauaittee (hereinafter referred to as "Petiticcier") that Measure A (Green Belt Initiative) was invalid. The ruling has as its basis that the measure interfered with the process of arube>ation, uiuch is a matter of compelling State . interest in Which the State has preeapted the field, not allowing cities by their councils or voters to prescribe any ra�ixemert relating to annexation. A number of questions have been asked of this office since the decision was rendered, arra I feel that it would be very important, in order fon- this Council to make a decision regarding the appeal process, to have these questions answered. I am sure that these are not the 'only questions,and obviously I'wiL' make myself available to "answer any additional questions regarding this matter.' I felt. that the %=mat to use should be a question and answer type format that would simplify and clarify the issues: (1) Q. haiat did the Court decide? A. Before tin Court were two lines of cases which the Court was required to apply to its decision .on the constitutionality ° of Measure ' A. .r be first line of cases, in effect, disallowed citizens of a municipality from voting on annexations, discussed in Ferr:ni v. The City of San Luis Obispo Werrini) . The second line of cases allowed the citizens of a m nicipaLity to f vote on zoning matters, incljding general plans. discussed in Associated' Home Builders' of the Greater Eastbay v.' City of Livermore (O,ermre) . In the Judge's decision, he determined that Measure A was in effect, an initiative which would' allow. the citizens to vote on '- annexations, an area which has been preempted by State' law (Ferinni). The Judge looked at the initiative itself ani determined_ that the language of the initiative, thn arguments in favor thereof, andthe impartial analysis by the City Attorney, x" all referred to annexations. The Judge was of the opinion that the initiative was in effect to allow a vote on annexations by the ' citizens (a precondition to annexation); and therefnrs wan invalid. e` s ' ,,t► r Kms, � the cost to date of defend -'ng Measure A? iyproxirn+tely $32,0w. (3) Q. what c -x uld be the cost of an appeal? A. Approximately $10,000 - $15,000. Most of the work has already t,ren done Superior Court. The cost of briefing and arguir- Will ))e sonewhat linAted. x vt (4) Q. %Inat would be the issues on appeal? A. Ci appeal, tt.- Third AFpellate Caurt would have to decide whether Judge Darrah's decision should in fact be sustained. It wduld be my understanding that the City would be arguing that the C;seocnd line of cases allowing the citizens of the City to vote cn general plans (Livermore), is in fact the cases that the Judge in the lower Court should have applied. V&at we would be arguing would be that the Court should have looked at the way the City interpreted Measure A, i.e., in our Measure A elections over the 1} years, rather than the initiative lancvage itself. 4 (5) Q. Vtot is the time frame for appealing the decision? A. within 60 days of the issuance of the final Judgment and Cozier of tlye Court. Attorney Steve. Heruan who represents the Petitioners in the case, is in the F-3oess of preparing the order at this time. Q. h3iat if we don't appeal? Can others appeal? A. Yes,another party wind attempt to ink on behalf of the citizens of the City of Lodi to pursue five appeal. 3 (7) Q. Meat options does the City Cuancil have as it relates to the Measure A litigation? -i A. The City Council may: 1. Appeal the decisicn. 2. Do nothing and assure that same other person may or may not appeal. (8) Q, i4lsat happens if we go on appeal and Petitioner is successful on appeal? Mtat can the City Council then do? A. If the Petitioner is successful on appeal, the City Council can at that time ask for a hearing before the California State Supreme Cxirt. (9) Q. vftt if the City wins on appeal and Measure A is sustained? h3 A. At that time, Petitioners can ask for a hearing before the Supreme Cant. Further, in the laser Court, these were two issues ;1.. '7 x vt W2 ig� . �t� In; that were riot resr-lved, because Judge Darrah felt that the major issue was whether or not the measure was valid as it relates to the aforementioned lines of cases. The two other issues were not resolver] and it is possible that the Petitioners can go back to the Superior Court and have th-ise two issues resolved. Both issues were on a sum Tery judgmie-L motion and the City's defense to that was that there were facts in dispute and therefore they issues that should be tried. The two isw:es were: a) Whet -her or not Measure Jz. was unconstitutional in that it limited the City's ability to take its regional share of homing for low and moderate income people; and b) V6ether Measure A was invalid because it made tl:-q other elements of our General Plan inconsistent. It should be noted that even if the City were to win on the above- mentioned issues in the Superior Court, this would not stop the Petitioner fran appealing those issues or from going to trial and then having those issues decided after a trial in an Appellate Court. (10) Q. Are arj-x--xaticn requests stayed pending appeal? A. Yes. Until the order of the Court is final, Measure A is still in eff--!ct arxl once the order of Court is final and if the City Council chooses to appeal or if someone else chooses to appeal, Measure A could still be in effect pending the outcome of (11) Q. Car: the Petitioner make a motion for the City to pay A Ply' A. Yes they can according to Code of Civil Procedure -S-ztion 1021.5. (12) Q. If the city cckricil should choose not to appeal the Judge Is eecision, at what point and time could the City resume accepting W2 ig� . �t� In; that were riot resr-lved, because Judge Darrah felt that the major issue was whether or not the measure was valid as it relates to the aforementioned lines of cases. The two other issues were not resolver] and it is possible that the Petitioners can go back to the Superior Court and have th-ise two issues resolved. Both issues were on a sum Tery judgmie-L motion and the City's defense to that was that there were facts in dispute and therefore they issues that should be tried. The two isw:es were: a) Whet -her or not Measure Jz. was unconstitutional in that it limited the City's ability to take its regional share of homing for low and moderate income people; and b) V6ether Measure A was invalid because it made tl:-q other elements of our General Plan inconsistent. It should be noted that even if the City were to win on the above- mentioned issues in the Superior Court, this would not stop the Petitioner fran appealing those issues or from going to trial and then having those issues decided after a trial in an Appellate Court. (10) Q. Are arj-x--xaticn requests stayed pending appeal? A. Yes. Until the order of the Court is final, Measure A is still in eff--!ct arxl once the order of Court is final and if the City Council chooses to appeal or if someone else chooses to appeal, Measure A could still be in effect pending the outcome of (11) Q. Car: the Petitioner make a motion for the City to pay Pet-itioner's attorney's fees since Petitioner is the successful Ply' A. Yes they can according to Code of Civil Procedure -S-ztion 1021.5. (12) Q. If the city cckricil should choose not to appeal the Judge Is eecision, at what point and time could the City resume accepting applications for annexations? A. The City Council could again accept applicaticsis for amexation 60 days from the date of the issuance of the final Judgment, and Order of tkse Superior Court. (13) Q. Assuring the Judge's decision is not appealed, what effect does the Judc)e's decision have on the City's General Plan? A. It places the areas between the 1AxU City -Limits and the former growth lil&dts bac)( into the City's land use element of the City's General Plan. Ibope that these few questions and answers give you some insight into the Court's decision, and some of the questi6ns that kwm been brought P&ie _our F up regarding this matter. If you have any other yuesticmCr oas is ;tEt; please feel frac: to contact me. ys FCNAID ' CITY A sd IM:VC r ` 4 i :t 10. :L .. F , � L t ,t S.� L z f� r� qtr., ,+ ,,•i. .,• ,. tt : 4-, r •,moi t tr t' {. r..,r� - ' r g Continued December 18, 1985 Public Works Director Ronsko asked that the record show that he reccamanded against the establishing of a mid-block crossing in the subject area. Following additional discussion Council directed Staff to review the various locations suggested for a Turner Road mid-block crossing and to bring back a report regarding the matter to Council at the earliest possible date. REPORT FRGM CITY ATTORNEY REGARDING 1 LIFE VS CITY OF I)ODI (GREEN BELT {. INITIATIVE) SUIT Following receipt of a report from the City Attorney f. regarding the L.I.F.E. vs the City of Lodi (Green Beit Initiative) suit and discussion, Council, on rroti-z of Council Member Snider, Olson second, agreed to proceed with the appeal process and to mnve forward with the develogzent of a Task Force to seek viable alternatives to Measure A. ERNST AMID WHIM4EY CITY OF LORI AUDIT AMID MANAGD= LEI IM Following introduction of the matter by City.Manager Peterson Finance Director Robert Holm presented, for Council's perusal, the 1984-85 Annual Audit and Managemnt Letter, as submitted by the audit firm of Ernst and Whinney. C a encs regarding the Management Letter wed provided by Librarian Leonard Lachendro and Finance Director Holm: Following discussion, with questions being directed to Mr. Holm, Council, on motion of Mayor Fro Tempore Reid, Hinchman second,received for filing he :1984-85 Annual Audit and Management Letter as submitted by, the audit film of Ernst and W iinney. TJ IG STREET S'IR= LIGHTING DISPRICT .' City Clerk Reimche apprised the Council that on Noventer J\ 18, 1985 property owners on-Liebiq Street, located CITY COUNCIL THOMAS A. PETERSON ;FRED M_ REID. Mayor T TY ® O T City Manager - . ., . 1 ALICE M REIMC EVELYN M. OLSON 1 1 jY HE " Mayor Pro Tempore CITY HAIL, 221 WEST FINE STREET City Clerk' ' DAVID M. HINCHMAN CALL BOX 3006 RONALD M. STEIN JAMES W. PINKERTON, Jr. LODI, CALIFORNIA 95241-1910 City Attorney JOHN R. (Randy) SNIDER (209) 334-5634 I. z - - August ' 111-1986 :i Dear . Enclosed please find a copy of my July, 28, 1986 Memorandum to the other Members of the Lodi City Council regarding Measure A and the charge of the Task Force to seek viable alternatives to Measure A. I have requested that this matter be placed on the Agenda for the Regular Council Meeting of August 20, 1986 at which time I will ask for 4 a clarification of the charge and duties of the Task Force. You attendance at this Council Meeting would be most welcomed. Very truly yours, a r, r ` John "Randy" Snider Member-.,:,, Lodi City Council.' { by:' i Alice M.,Reimche City Clerk The above letter was sent to all Measure A_Task Force Monbers: .James Schroeder,"Ann Cerney, Frank Johnson, A ,Fred Baker, John hedbetter;''. ' Ron Thomas, Robert Mullen,` Jenanne Benjamin, Walter.Pruss,. and Beryl Georgusan f � , MEMORANDUM To: Honorable Mayor and Council Members > - Fran: Councilman John "Randy" snider - Bate: July 28, 1986 y_ a Re: Re: Measure A _ I am sure that the Council has heard accounts regarding the Measure A Task Force meeting of July 24, . 1986. I was presei_t at that meeting, and frankly, do not necessarily agree with the 'perception regarding confusion, or lack of consensus on the part of .the Task- Force. However, I think that it is important for this Council to reiterate its charge to the Task Forca. I have taken the liberty of"sending to each Task Force mmber, a copy of the City Council minutes of December 181 1985, at which meeting I made the motion which was seconded :by Councilwoman. Olson, to proceed with the appeal intheL.I.F. E. V. City of Lodi suit, however, but to also develop a'Task Force, to seek viable alternatives to Measure A. It was my understanding of the Council's charge that the Task Force could recommend that the City could do the following, although certainly not limited to only the following: (1) Recoamend to the City Council that we continue; with the appeal and not worryabout an alternative to Measure until the. final Court abo A Y � decision on the constitutionality of Measure'A was rendered. (2) Develop an alternative to Measure A which could include a general - plan update 'which would have'a ,pgrowth element thereto: . (3) Cane up with a growth management ordinance similar to Measure A._ E Further, I believe that whatever the recamendation of the Task Force, r `that the City Council, at: the. very. 'earliest possible` time,, should - permit the citizenry of the City of Lodi, to take an active part in. .- '= - advising the .City Council,'' through an'advisory election,' whether this alternative. is viable. For example: F If the Task Force were to recamTend as an alternative.' to Measure A a general plan ::update which would 'include .a.growth management element � limiting ; the 'growth in the City of Lxli to a certain percentage, each a. year, it would be, my remotion.that the Council would then place on the ballot, an advisory measure, seeking -fran the -citizenry., a �- positive or native vote on whether we should pursue that plan' h fi .....mss { . ir a Honorable Mayor and Council Members Re: Measure A s Page Two It is my understanding that it has .never been Council's intent that the Task Force.should go about ,the business'of:updating thelan P without an affirmative vote of the citizenry on this matter. � f John." dy" Snider €. City Councilman y- 4 9 s� t'1 t'1 j Continued June 25, 1986 I 1,' r { MEMORANDUM'`_ Date: July 31, 1986' 'Ib: Honorable Mayor and Members of the Lodi City Council From: Alice M. Rein-che - City Clerk Subject:.: Letter from Robert H. Mullen Regarding Measure A Task Force Charge Attached please find letter from Robert H. Mullen addressed to the Task Force Camdttee.Mmgibers which include his thoughts regarding the responsibility and 3 ' A charge of that camdttee. Mr. Nallen's letter is being forwarded to you at his request. ` �heX111 Alice M. City Clerk AMR:jj _ -E MULLEN, SULLIVAN &. NEWTON ROBERT M. MULLEN ATTORNEYS AT LAW C. M. --BUO" SULLIVAN THOMAS J. NEWTON (111 WEST TOKAY STREET O• ANTHONY NN, ERO. PEROVICM CRAIG RASMUSSEN THOMAS J. DRISCOLL, JR. - P. O. BOX 560 ROBERT C. LITTS STEPHEN C. SNIDER LOD1, CALIFORNIA 95241-0560 -, - - - - - GAEL A. GISVOLO . - (2091 334-5144 - - - July 30, 1986 Dear Task Force Committee Member: a I an sorry that I was unable -to attend the last meeting the Committee as -I was out of town. '.: ,of I read of the meetingin thepaper and have read Alice's July; 25th letter which enclosed a copy of the Council meeting minutes of 12/18/85. These are my'' thoughts: The City Council should place the respon- sibility of: coming up with recommendations on our Committee and our Committee in turn should be chaired by "one of our members. I -believe that Ann Cerney:has the mutual respect of 'all -of us'and-I would propose her for s chairperson of our group. I think that our Committee should meet more - often than once a month so that we may complete our assignment. .,: I think that the Committee should recommend to the Council'that: 1. The City Attorney and legal staff be . instructed. to proceed as rapidly.as possible to obtain a decision from the:Appellate.Court to determine the`consti- =-. tutonality'of Proposition, A.. If this recommendation is adoptedby the Council, then if Proposition A is held constitutional, -that will be the end of it. If it is held unconstitutional, our.Committee,'could.then be reactivated to come,up with a'proposed ordinance or initiative ordi- `nance concern ng the future growth of the City. OR: 2. Ask the Council to delay. the_ appeal fora E; one ,year',period in order to,permit technical advice and x- A F{ News aw*iCmIAO."B""LLS Vol. 2, No. 6/June 24, 1986 A Business Newsletter Published 11V the CALIFORNIAASSOCLAXION OF REAIXORStr InsidePresident Rosenthal Alerts This Issue ... Senators ®n Tax Concerns JUNE FLECTION, page 2 C.A.R. President Richard from deducting losses against other ® COASTAL CASE, page 2 Rosenthal recently sent a forceful income such as salary, dividends • "MARKET VALUE," page 3 message to California Sens. Alan and interest—even up to the r Cranston and Pete Wilson amount of cash invested— reiterating the Association's deep 'effectively taxing investors on their, B.I.A. V. Cly Of CQmQrillO concern over a number of cash losses. A $25,000 partial provisions in the tax revision bill exemption for taxpayers "actively i Ce>idrt RUieS on recently passed by the Senate participating" in a rental real estate 4 Finance Committee. activity would be allowed for the No -Growth Ballots One of these provisions, the so- deductibility of losses. in a long-awaited derision late called "loss disallowance" This allowance; however, is ' last month, the state Supreme proposal, would prevent a taxpayer phased out as adjusted income a Court reversed two tower courts from deducting real estate incurred increases from $100,000 to and ruled that, while ballot losses from most other forms of $150,000. 'Active participation" measures are a legitimate vehicle income. Intended to limit requires that the taxpayer own at for no -growth initiatives, propo- deductions by passive investors, least 10 percent of all interests in nents`must be prepared to defend this proposal would hurt middle- the activity and that he/she `_ ; the measure if challenged in court. income owners who actively participate in a significant and The case, Building Industry manage small-scale rental property. bonafide service. 's Association v. City of Camarillo, The loss disallowance rule The rule would apply originated from the passage of an would also prevent both active and retroactively to real estate initiative in June 1981 that limited passive rental property owners (Continued on page three) i 2 the number of new condominium More Than 400,000 Affected units built in the city to 400 a year. B.1.A. sued Camarillo to have the FHA Extensti®n Remains at Impasse i measure declared invalid, but lost in Superior Court and the state On June 17, Rep. applications, even those received t Courtof Appeal. Chalmers Wylie (R -Ohio) prior to the suspension... ; In his opinion for the court, introduced House Joint Congress, meanwhile, has been t i Justice Malcolm Lucas wrote that, Resolution 656 to extend the debating several other ' ve hides s in exercising its power of initiative, Federal Housing Administrations which would attempt to resolve the', i "the local government must bear operating authority through issue of FHA operating and credit the burden of showing that the September 30, 1987, and to authority. Unfortunately; many of ordinance, is reasonably related toincrease FHA credit autnority to these measures have fallen victim i the protection of the public health, $132 billion for fiscal 1986 and to to other political manipulations, safety or welfare of the affected $100 billion for 1987. and their passage does not appear 2 population." As of this writing, this is the latest promising. € As a result of the ruling, law of many attempts to reinstate FHA C.A.R. recently wrote to the for tl t- cityof Camarillo and operating authority, which was California members on the House backers of the initiative must return suspended, for the sixth and Banking, Finance and Urban,Affairs t' z >„a to a Ventura County Superior Court longest time this fiscal year, on Committee and to the California t ' to prove that the ballot measure is June 5. It is also anticipated that Congressional Delegation urging necessary to protect "public FHA credit authority could expire them to "actively support speufic welfare” and alleviate such within the next day or so, at which legislation that will immediately v" problems as traffic congestion and point the agency � will stop and fully _restore FHA mortgage (Continued on page four) accepting or processing all (Contirtuerl'o» page forir):: Y k 4 m^„'a'«^^s^,s.'^.•-• rn.+.w ds•oFrm=emvrw�^n+9.^tar.rn �ec+«� r k`. Stout v. Edmonds Some Fraud Recoveries Barred N® -Growth Ballots (Continued from page one) The California Court of Appeal, fraud and obtained a default overcrowded schools. First District, recently reversed a judgment against the buyer and The issue at hand arises out of trial court ruling and held that applied for payment from the Real 1980 legislation which shifted the sellers defrauded by a broker -buyer Estate Recovery Fund. When the burden of proof from developers to were not entitled to real estate trial court ruled that the sellers governments in cases involving city recovery fund compensation were entitled to recovery, the Real or county ordinances that affect the _ because the broker -buyer was Estate Commissioner appealed. housing supply acting on her own behalf and not The Recovery Fund, which has In passing the law, the performing acts requiring a real Iong been supported by C.A.R., was Legislature deci--red that "an estate license. established as a means of compen- adequate supply of housing is The case, Stout u. Edmonds, sating people defrauded by real necessary for the health, safety and involved a real estate broker who estate licensees. The fraud, public welfare of all Californians" purchased a parcel of property however, must arise "directly out and that initiatives prohibiting from the sellers and defaulted after of any transaction when the expansion might lead to a shortage collecting property rents and judgment debtor performed acts for of affordable housing. making the first two installments which a Iicense is required." The court noted that, since 1980, on three trusa deeds, resulting in State lair, in fact, specifies that voter -approved initiatives have foreclosure and reacquisition of the anyone who directly performs the amounted to almost one-half of the: property by the sellers. acts with reference to his/her.ow•n growth limitation ordinances The sellers then filed suit for property does not require a license. passed in California. It was unclear until the recent ruling Five -Year Nigh statute also applied to such whether the . Resale Rate Jumps 27.8 Percent in April initiatives. Sales of existing single-family strong homebuying season, fixed ��� Extension homes in California rose by _ interest rates in the 10 percent remarkable 27.8 percent in April range have resulted in even greater (Continued from page one) from the previous month, the sales activity. Nationwide, April lending activity." - highest level of sales activity since resales reached their highest level In addition, all C.A.R. members October 1980. With a sales pace in more than six years. and their clients who have been 14.6 percent higher than that of . The median price of an existing adversely affected by the FHA April 1985, this marked the tenth single-family home in California in program suspension are i consecutive month in which sales April rose to a record $130,648,14 encouraged to communicate their were higher than the year before. percent above the Ap:il 1985 concerns to their congressional Al thoughspring is traditionally a median price of $114,648. representatives as soon as possible t 3j - t}t News a la C AR. 525 South Virgil Avenue PRESORTED j Los Angelcs. California 90020 FIRST CLASS MAIL , j (213) -39-8200 US POSTAGE PAID LOS ANGELES, CA Permit No. 26306.; Yy. . r 080348 MULLEN, ROBERT H. LITTS, MULLEN ET AL „ P 0 BOX -560 „` LODI<`CA '95241