HomeMy WebLinkAbout2022 08-30 CC AGENDA PKTAGENDA
Consolidated Special Meeting
City Council Chamber - 1243 National City
Boulevard, National City, CA
Alejandra Sotelo-Solis, Mayor
Marcus Bush, Vice-Mayor Brad Raulston, City Manager
Jose Rodriguez, Councilmember Barry J. Schultz, Interim City Attorney
Ron Morrison, Councilmember Luz Molina, City Clerk
Mona Rios, Councilmember Mitchell Beauchamp, City Treasurer
_______________________________________________________________________
The City Council also sits as the City of National City Community Development Commission, Housing Authority,
Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the
National City Redevelopment Agency
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AGENDA
Consolidated Special Meeting
City Council Chamber - 1243 National City
Boulevard, National City, CA
Alejandra Sotelo-Solis, Mayor
Marcus Bush, Vice-Mayor Brad Raulston, City Manager
Jose Rodriguez, Councilmember Barry J. Schultz, Interim City Attorney
Ron Morrison, Councilmember Luz Molina, City Clerk
Mona Rios, Councilmember Mitchell Beauchamp, City Treasurer
_______________________________________________________________________
The City Council also sits as the City of National City Community Development Commission, Housing Authority,
Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the
National City Redevelopment Agency
Gracias por participar en las reuniones del gobierno local y del Consejo de la Ciudad de National
City.
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martes del mes a las 6:00 p.m. La reunión especial de sesión privada y los talleres pueden ser el
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conocer los horarios.
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Título II de la Ley de Discapacidades Americanas: En cumplimiento con la Ley de Discapacidades
Americanas de 1990, las personas con discapacidad pueden solicitar una agenda en formatos
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dirigir dicha solicitud a la Oficina del Secretario de la Ciudad (619) 336-4228 al menos 24 horas
antes de la reunión.
AGENDA
Special Meeting
Tuesday, August 30, 2022, 4:00 p.m.
City Council Chamber - 1243 National City Boulevard
National City, CA
Pages
1.CALL TO ORDER
2.ROLL CALL
3.PLEDGE OF ALLEGIANCE TO THE FLAG
4.PUBLIC COMMENT
In accordance with State law, an item not scheduled on the agenda may be brought
forward by the general public for comment; however, the City Council will not be able to
discuss or take action on any issue not included on the agenda. Speakers will have up
to three (3) minutes.
5.STAFF REPORT
5.1.Discussion of Election Code Section 9212 Report on Initiative Measure to
Establish a Special Parcel Tax in National City for Streets and Parks and
Accept Certification of Sufficiency of Initiative Petition
2
Recommendation:
Accept and file the report, and direct staff to take the appropriate steps to
submit the initiative for voter consideration at the next regular municipal
election, which is scheduled to occur in November 2024, and adopt resolution
entitled, “Resolution of the City Council of the City of National City, California,
Accepting the Certification of the San Diego County Registrar of Voters as to
the Sufficiency of the Initiative Petition entitled “National City Special Parcel Tax
for Streets and Parks.”
6.ADJOURNMENT
Regular Meeting of the City Council of the City of National City - Tuesday, September
6, 2022 - 6:00 p.m. - Council Chambers - National City, California.
AGENDA REPORT
Department: City Manager's Office
Prepared by: Alex Mendivil, Management Analyst II
Meeting Date: Tuesday, August 30, 2022
Approved by: Brad Raulston, City Manager
SUBJECT:
Discussion of Election Code Section 9212 Report on Initiative Measure to Establish a Special
Parcel Tax in National City for Streets and Parks and Accept Certification of Sufficiency of Initiative
Petition
RECOMMENDATION:
Accept and file the report, and direct staff to take the appropriate steps to submit the initiative for
voter consideration at the next regular municipal election, which is scheduled to occur in
November 2024, and adopt resolution entitled, “Resolution of the City Council of the City of
National City, California, Accepting the Certification of the San Diego County Registrar of Voters
as to the Sufficiency of the Initiative Petition entitled “National City Special Parcel Tax for Streets
and Parks.”
BOARD/COMMISSION/COMMITTEE PRIOR ACTION:
Not Applicable.
EXPLANATION:
On August 2, 2022, an Initiative Measure to amend entitled “National City Special Parcel Tax for
Streets and Parks”, having been certified by the County of San Diego Registrar of Voters as
having the necessary number of qualifying signatures, was presented to the City Council for
action. At that time, the City Council had three options: 1) Adopt the Ordinance (Initiative
Measure), without alteration, at the regular meeting in which the certification of the petition is
presented, or within (10) days after it is presented; 2) Submit the ordinance (Initiative Measure),
without alteration, to the voters; or 3) Order a report pursuant to Election Code Section 9212 at a
regular meeting at which the certification to the petition is presented. When the report is presented
to the legislative body, the legislative body shall either adopt the ordinance within 10 days or order
an election. If option 3 is selected, the report must be presented to the legislative body within 30
days after the elections officer certifies to the legislative body the sufficiency of the petition
(Elections Code, Section 9212).
On August 2, 2022, the City Council selected option 3 and directed staff to prepare a report as
outlined in Elections Code 9212. The Election Code 9212 report responds to that direction.
The focus of this report is on its fiscal impact, especially with respect to the funding for certain
elements of the City’s infrastructure. The Initiative Measure is not anticipated to have any
significant impacts on the development of new housing or the City’s ability to attract and retain
businesses.
After consideration of the 9212 Report, the Council must submit the initiative for consideration at
the next regular municipal election, which is scheduled to occur in November of 2024. Staff should
Page 2 of 32
be directed to prepare the necessary resolutions for adoption and submittal to the County
Registrar of Voters no later than 88 days prior to the November 2024 election.
FINANCIAL STATEMENT:
See attached Election 9212 Report
RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:
Not Applicable
ENVIRONMENTAL REVIEW:
This is not a project under CEQA and is therefore not subject to environmental review.CCR15378;
PRC 21065.
PUBLIC NOTIFICATION:
Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act.
ORDINANCE:
Not Applicable
EXHIBITS:
Exhibit A – Election Code 9212 Report
Exhibit B – Citizen Initiative Measure – Copy Not For Use
Exhibit C – Resolution Certifying Sufficiency
Exhibit D – ROV Certification Letter
Page 3 of 32
Election Code Section 9212
REPORT ON INITIATIVE MEASURE TO ESTABLISH A SPECIAL PARCEL TAX IN
NATIONAL CITY FOR STREETS AND PARKS
August 30, 2022
Page 4 of 32
1
Introduction
On August 2, 2022, an Initiative Measure to amend the National City Municipal Code entitled
“National City Special Parcel Tax for Streets and Parks,” having been certified by the County of
San Diego Registrar of Voters as having the necessary number of qualifying signatures, was
presented to the City Council for action. At that time, the City Council had three options: 1) Adopt
the Ordinance (Initiative Measure), without alteration, at the regular meeting in which the
certification of the petition is presented, or within (10) days after it is presented; 2) Submit the
ordinance (Initiative Measure), without alteration, to the voters; or 3) Order a report pursuant to
Election Code Section 9212 at a regular meeting at which the certification to the petition is
presented. When the report is presented to the legislative body, the legislative body shall either
adopt the ordinance within 10 days or order an election. If option 3 is selected, the report must
be presented to the legislative body within 30 days after the elections off icer certifies to the
legislative body the sufficiency of the petition (Elections Code, Section 9212).
On August 2, 2022, the City Council selected option 3 and directed staff to prepare a report as
outlined in Elections Code 9212. This report responds to that direction.
Background
On Tuesday, February 1, 2022, Initiative proponents filed a Notice of Intent to Circulate Petition
to have an initiative measure entitled: “National City Special Parcel Tax for Streets and Parks.”
(“Initiative Measure”) placed on the ballot in an upcoming election. On Tuesday June 7, 2022,
Proponents Barbara Avalos, Ken Seaton-Msemaji, and Jose Rodriguez submitted to the Deputy
City Clerk signatures for examination pertaining to the initiative.
On Thursday July 21, 2022, the County of San Diego Registrar of Voters certified the measure to
have the amount of qualified signatures necessary to be place on the ballot for a vote of the
residents.
On August 2, 2022 the Initiative Measure was presented to the City Council. The Elections Code
Section 9215 offered three options for the City Council to consider when a citizen’s initiative
petition has been certified as sufficient.
Option 1:
Adopt the Ordinance, without alteration at the Regular Meeting in which the certification
of the petition is presented, or within (10) days after it is presented.
While this generally is an option for citizens’ initiative, there is no ordinance to adopt in this
case because the Initiative Measure proposes a tax and State law requires voter-approval
for taxes. Consistent with such limitations, the initiative measure did not propose that the
Council adopt the tax itself but rather proposes submission of a tax and corresponding
revisions to the Municipal Code to the voters. Accordingly, option 1 was not available.
Page 5 of 32
2
Option 2:
Submit the Initiative Measure, without alteration, to the voters. This action would consist
of the City Council adopting Resolutions to place the item on the ballot for the voters of
National City to decide.
Option 3:
Order a report pursuant to Election Code Section 9212 at a regular meeting at which the
certification of the petition is presented. When the report is presented to the legislative
body, the legislative body shall either adopt the ordinance within 10 days (not available
due to this being a tax measure) or order an election.
City Council Direction
On August 2, 2022 the City Council chose option 3. The City Council ordered a report pursuant
to Election Code Section 9212 and directed staff to address the impact the passage of the
Initiative Measure would have with respect to the eight categories enumerated in paragraphs (1)
through (8) of Election Code Section 9212:
(1) Fiscal impact.
(2) Effect on the internal consistency of the city’s general and specific plans, including the
housing element, the consistency between planning and zoning, and the limitations on city
actions under Section 65008 of the Government Code and Chapters 4.2 (commencing
with Section 65913) and 4.3 (commencing with Section 65915) of Division 1 of Title 7 of
the Government Code.
(3) Effect on the use of land, the impact on the availability and location of housing, and the
ability of the city to meet its regional housing needs.
(4) Impact on funding for infrastructure of all types, including, but not limited to, transportation,
schools, parks, and open space. The report may also discuss whether the measure would
be likely to result in increased infrastructure costs or savings, including the costs of
infrastructure maintenance, to current residents and businesses.
(5) Impact on the community’s ability to attract and retain business and employment.
(6) Impact on the uses of vacant parcels of land.
(7) Impact on agricultural lands, open space, traffic congestion, existing business districts,
and developed areas designated for revitalization.
(8) Any other matters the legislative body requests to be in the report.
Further, the City Council directed that the report specifically look at the actual amount of money
the parcel tax would raise, how much would be raised by Council district, the impact the tax would
have on new housing as well as the benefit from it, and the bonding capacity that the tax would
provide.
Initiative Summary
The Initiative Measure would supplement the City’s existing expenditures by imposing a parcel
tax on property owners within the City of National City. A “parcel” is an area of land delineated on
a map by the County for the sole purpose of collecting taxes on property.
The rate of taxation is based on the character of the property:
Page 6 of 32
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Single-Family residential parcels - $75.00;
Multifamily residential parcels - $99.00-$500.00;
Mobile home parcels - $52.00;
Commercial parcels - $365.00;
Industrial parcels - $365.00;
Agriculture parcels - $52.00;
Unimproved Residential or commercial parcels - $1,000.00; or
Miscellaneous parcel - $150.00.
Upon the submission of the required documentation, the following types of properties would be
exempt from the parcel tax:
Private, parochial, or special schools;
Qualifying senior citizens;
Affordable housing projects (partial exemption);
Religious institutions;
Government institutions;
Common areas, as defined;
Non-profit organizations; and
Any other organization or parcel that is exempt from taxation by law
If passed, the City would be limited to spending parcel tax funds in the following manner:
At least 50% of the funds would be used on street and sidewalk repairs, street lighting and
pedestrian safety improvements and alleyway improvements
At least 20% of the funds would be used on the improvement, maintenance, and
programming at existing parks, playgrounds, open space, and tot lots
At least 15% of the funds would be used on construction, development, and programming
of new parks, playgrounds, open space, and tot lots
No more than 15% of the funds may be used to reimburse the City for collecting the parcel
tax enforcing and administering initiative measure.
The Initiative Measure proposes the creation of a five-member advisory Citizen Oversight
Committee (“Committee”) to ensure funds are spent consistent with the initiative measure.
Committee members would be appointed by the City Council and would consist of residents
subject to the parcel tax. The committee may not include City employees or elected or appointed
officials. The Committee would report annually to the City Council on how the parcel tax funds
were spent. The City Manager would provide administrative support to the Committee as well as
quarterly status reports to the Committee on the projects funded by the proceeds of the tax.
The City Treasurer would prepare an annual report detailing the funds collected and expended
and the status of projects or programs funded by the parcel tax. The annual report would be filed
with the City Council, posted on the City’s website, and provided to the Committee. The City
Treasurer would also cause the performance of an annual independent audit of the special parcel
tax fund.
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Impacts and Effects of the Measure
EC Section 9212 (1): If approved by the voters, the special parcel tax would have a fiscal impact
in that it would provide additional funding for streets, alleyways, lighting and parks, as well as for
the additional costs to administer the tax and perform the reporting requirements. Estimates of
the fiscal impact are discussed below under the heading “Fiscal Impact.”
EC Section 9212 (2): there would be no anticipated effects on the internal consistency of the City’s
General Plan, specific plans or housing element, consistency between planning and zoning, nor
the limitations on city actions under Section 65008 of the Government Code and Chapters 4.2
(commencing with Section 65913) and 4.3 (commencing with Section 65915) of Division 1 of Title
7 of the Government Code.
EC Section 9212 (3): The proposed parcel tax is not expected to impact the use of land except in
the event of the creation of new parks. It is not anticipated to impact the supply of new housing or
the City’s ability to meet its regional housing needs.
EC Section 9212 (4): The funding from the proposed parcel tax would result in additional funding
for parks and transportation infrastructure throughout the City. The impact of the funding is
discussed in the “Fiscal Impact” section below.
EC Section 9212 (5): Approval of the measure is not anticipated to impact the community’s ability
to attract and retain business and employment.
EC Section 9212 (6): Approval of the measure is not anticipated to have a significant impact on
the uses of vacant parcels of land.
EC Section 9212 (7): Approval of the measure is not anticipated to have a significant impact on
agricultural lands or open space.
EC Section 9212 (8): Under other matters, the City Council directed that the report specifically
look at the actual amount of money the parcel tax would raise, how much would be raised by
Council district, the impact the tax would have on new housing as well as the benefit from it, and
the bonding capacity that the tax would provide. The impact on new housing is addressed above
in the paragraph that discusses EC Section 9212 (3). The remaining topics are addressed in the
“Fiscal Impact” section below.
Fiscal Impact
As noted above, the special parcel tax would have a fiscal impact in that it would provide additional
funding for streets, alleyways, lighting and parks, as well as for the additional costs to administer
the tax and perform the reporting requirements. The remainder of this report discusses the
estimated amount of revenue the measure would raise, how much would be allocated to each of
the uses outlined in the measure, and looks at possible scenarios for funding improvements via
both “pay-as-you-go” and bonding funding mechanisms. It also describes the administrative
activities expected to be required to support the measure.
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Potential Tax Revenue from Initiative Measure
Based on the “2022 Inventory of Parcel Values - City of National City” provided by the County of
San Diego, we are able to estimate that the yearly potential tax revenue from the Initiative
Measure to be at most $1,555,810.00 as seen in Figure A. The analysis does not take into account
listed exemptions provide by the initiative as follows:
Private, parochial, or special schools;
Qualifying senior citizens;
Affordable housing projects (partial exemption);
Religious institutions;
Government institutions;
Common areas, as defined;
Non-profit organizations; and
Any other organization or parcel that is exempt from taxation by law
There is currently no available data that ties the ownership of the parcels to the exemptions
provided for in the Initiative Measure. Until qualifying institutions, organizations, or individuals
apply for an exemption pursuant to the provisions of the Initiative Measure, any attempts to
quantify a final amount would be speculative at best. For that reason, the basis for the revenue
and expenditure estimates provided in this report will be the $1.56 million. The amount generated
may be more or less over time as changes in land uses, number of housing units, or ownership
and occupancy occur. This inventory is for the City as a whole, and within the time frame available
to prepare this report, cannot be provided by City Council district.
Page 9 of 32
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Figure A
Note: There is no reduction in revenue for potential exemptions other than those parcels
identified as exempt. As a result, the projections should be considered as the maximum
revenue.
Category Ordinance Count Rate Extended
Residential - 16+ Units Multiple Residential - 16+ Units 77 500.00$ 38,500$
Residential - 2-4 Units Multiple Residential - 2-4 Units 1,229 150.00$ 184,350$
Residential - 5-15 Units Multiple Residential - 5-15 Units 185 425.00$ 78,625$
Residential - Mobile Homes Mobile Home Unit Parcels - 52.00$ -$
Residential - Other Miscellaneous Parcels 2 150.00$ 300$
Residential - Single-Fam Attchd.Condominium Unit Parcels 1,286 99.00$ 127,314$
Residential - Single-Fam Detchd.Single Family Residential Parcels 5,420 75.00$ 406,500$
Residential - Unimproved Unimproved Residential Parcels 168 1,000.00$ 168,000$
Commercial Commercial Parcels 586 365.00$ 213,890$
Commercial - Unimproved Unimproved Commercial Parcels 195 1,000.00$ 195,000$
Industrial Industrial Parcels 267 365.00$ 97,455$
Institutional Miscellaneous Parcels 16 150.00$ 2,400$
Recreational Miscellaneous Parcels 31 150.00$ 4,650$
Unknown (pi)Miscellaneous Parcels 71 150.00$ 10,650$
Utilties Miscellaneous Parcels 2 150.00$ 300$
Vacant Miscellaneous Parcels 86 150.00$ 12,900$
Govt. Owned Exempt - -$ -$
Non-taxable Exempt 266 -$ -$
Zero-Value Exempt Exempt 159 -$ -$
Avg. Rate
TAXABLE TOTAL 9,909 157.01$ 1,555,810$
Page 10 of 32
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The Distribution of Funds Based on the Initiative Measure
The initiative measure prescribes how revenue from the parcel tax is to be used. Figure B shows
the amount of money that would be available by category annually assuming total annual
proceeds of $1.56 million.
Figure B
Category Description $ Projected
Amount
Explanation
1 Streets and Alleyways $777,905.00
Streets and Sidewalk repairs, street
lighting and pedestrian safety
improvements, and alleyway
improvements (50%)
2 Existing Parks $311,162.00
Improvement, maintenance, and
programing at existing parks,
playgrounds, open space, and tot
lots (20%)
3 New Parks $233,371.50
Construction, development, and
programming of new parks,
playgrounds, open space, and tot
lots (15%)
4 Administrative Costs $233,371.50
Reimburse the City for collecting the
parcel tax and enforcing and
administering the initiative measure.
(15%)
The Different Avenues of Financing with the Initiative Measure’s Parcel Tax
Two different options of financing were identified while conducting the analysis of the initiative
measure. There is a “pay-as-you-go” model, which would finance the streets, parks and
administrative cost on a yearly basis as the tax revenue is collected, and the “bonding option,”
which would give the City more money up front for capital improvements.
The “Pay-As -You-Go” Option
The main advantages of pay-as-you-go financing (relative to the bonding option) are as follows:
Reduced interest expense. The savings in interest costs payable on outstanding debt can
be used to finance additional capital projects under the tax or expand services.
Increased flexibility. The absence of fixed annual debt costs provides for greater flexibility
during economic downturns. Future revenues are not designated for debt service and can
be used for other purposes such as saving up for future street and park projects.
Enhanced debt capacity and credit rating. If an agency has low or zero outstanding current
debt, it may find that future ability to borrow for “greater” capital needs is enhanced. If the
City borrows now, it may not be able to borrow as much in the future. High current debt
burdens may lower credit ratings and raise the cost of future borrowing.
Increased fiscal responsibility. The likelihood of incurring excessive debt is reduced.
Decision makers are forced to consider the impact of major capital expenditures on the
Page 11 of 32
8
operating budget.
The main disadvantages of pay-as-you-go financing (relative to bonding option) are as follows:
Insufficient funds. Current revenues are not likely to be sufficient to pay for projects
requiring significant lump sum capital outlays.
Higher cost of construction if inflation raises costs at a rate higher than the interest cost of
borrowing.
Intergenerational inequity. Those who benefit in the future from a capital facility do not
contribute to the cost of the facility.
Uneven funding requirements. Unlike debt service payments, the funds necessary for
capital projects may be greatly inconsistent from year to year.
Waiting for normal cash flow to fund projects will necessarily delay the enjoyment of
benefits that could be accelerated if borrowing facilitates earlier construction.
The Bonding Option
The main advantages of the bonding option (relative to pay-as-you-go) are as follows:
Acquisition as needed. The City can enjoy prompt use and benefit of capital
improvements.
Immediate or rapid construction is limited with pay-as-you-go financing.
Intergenerational equity. The cost of capital expenditures is spread more equally over all
of its users.
Repayment in cheaper dollars. With a positive inflation rate, repayment costs will be less
burdensome than would full payment at the time of acquisition.
Enhanced Stability. Since debt service payments are known and predictable, wide
fluctuations in required expenditures are avoided.
Reduced operating cost as older, high-maintenance roadways are more quickly replaced
by newer, low-maintenance roadways.
The main disadvantages of bonding (relative to pay-as-you-go) are as follows:
Interest costs. The cost for the use of money must be added to the total cost of the capital
project.
Encumbered future revenues. Potential revenues are dedicated to the repayment of debt
and are thus not available for other uses.
The temptation to take on too much debt.
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9
Assuming a set aside of 20% of the park portion of the tax for yearly park maintenance and
programing, the bonding capacity is as shown in Figure C.
Figure C
National City - Bonding Capacity Analysis
Streets Bond Annual D/S Constraint from Parcel Tax: $777,905
Parks Bond Annual D/S Constraint from Parcel Tax: $441,072*
10-Year 20-Year 30-Year
Streets Bond Par Amount: $6,615,000 $10,545,000 $11,925,000
Parks Bond Par Amount: $3,735,000 $5,965,000 $6,735,000
*Reflects 20% of the annual park share proceeds for maintenance and programming
How Initiative Measure Funds Could Be Spent in the Categories Provided
The tables below present possible scenarios for the use of the revenues that would be received
from the parcel tax from both the pay-as-you-go and bonding approaches. There are a few
assumptions that are made in the following allocation of funds within their respective categories.
The amounts shown assume the availability of $1.56 million annually from the parcel tax. It’s
possible that once known, the value of the exemptions could impact final decisions on the
distribution of the funds.
We also do not take into account any grants or special funding the City might receive towards the
construction of streets, alleyways and parks. The focus of the report is solely on the fixed amounts
provided by the parcel tax. All amounts shown are based on 2022 dollar values and do not account
for potential inflation.
Category 1 – Streets & Alleyways
Under the tax initiative, and under City Council direction, 50% of the tax would go to improve
streets and alleys to the target Pavement Condition Index (PCI) starting with the unpaved alleys,
then augmenting the existing pavement, sidewalk, street lights and pedestrian safety
improvement programs as possible.
The yearly dollar projection from the tax initiative under this category is $777,905.
Alternative A (Pay as you Go)
Under City Council direction, improve and maintain streets and alleys to the target Pavement
Condition Index (PCI). The City would develop an unpaved alleys program and augment existing
pavement, sidewalk, street lights and pedestrian safety improvement programs as possible.
Proposed allocations are as follows:
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Item Description Investment/Yr Improvement
1 Unpaved Alleys (30%) $233,371
Under City Council direction,
prioritize existing unpaved alleys.
(Assume $300,000 per alley)
2
Pavement
Management Program
(30%)
$233,371
Augment the $2,000,000 yearly
investment by the City by helping
achieve the $3,000,000 target yearly
investment to maintain a PCI in the
70’s
3
Sidewalk/Pedestrian
Ramps/Pedestrian
Safety transition
program (20%)
$155,581
Augment the City’s yearly investment
by helping achieve the $900,000
target yearly investment to complete
the transition in 10 years
4 Street lights (20%) $155,581
This amount will augment the City’s
yearly investment by helping achieve
the $200,000 target yearly
investment to complete the purchase
and transition to LED of all
streetlights in the City in 10 years
Alternative B (Bonding)
The maximum bonding amount projected under this category is $6,615,000 (assume a 10 year
bond). This alternative envisions allocating funding for improved streets and alleys to the target
Pavement Condition Index (PCI) as shown in the table below. Under this scenario the City could
borrow against 10 years of revenue each decade to prioritize more projects, but limit its bonding
to every 10 years.
Item Description Investment Improvement
1 Unpaved Alleys (30%) $1,984,500
Under City Council direction prioritize
existing unpaved alleys. (Assume
$300,000 per alley)
2
Pavement
Management Program
(30%)
$1,984,500
Augment the $2,000,000 yearly
investment by the City by helping
achieve the $3,000,000 target yearly
investment to maintain a PCI in the
70’s
3
Sidewalk/Pedestrian
Ramps/Pedestrian
Safety transition
program (20%)
$1,323,000
Augment the City’s yearly investment
by helping achieve the $900,000
target yearly investment to complete
the transition in 5 years.
4 Street lights (20%) $1,323,000
This amount will help achieve
investment of $2,500,000 necessary
to complete the purchase and
transition to LED of all streetlights in
the City
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11
Category 2 – Existing Parks
Under the tax initiative, 20% of the collected parcel tax would go to the improvement,
maintenance, and programing at existing parks, playgrounds, open space, and tot lots
The yearly dollar projection from the tax initiative under this category is $311,162.
Alternative A (Pay as you Go)
The City’s yearly park maintenance budget is about $1,700,000. The parks component of the
City’s facilities need assessment identified more than $18,000,000 in unfunded improvements
needed in various tiers. The proposed allocation is as follows:
Item Description Investment Improvement
1 Programing Addition
(10%) $31,116
Currently, the City does not provide
youth soccer or youth basketball
clinics. This funding would help to
provide the needed supplies and
staffing for these programs. There
are certainly other programs the City
could provide with these funds; this
is simply to illustrate the new
programs that would be possible.
$50K would offset costs for a youth
soccer program providing funding for
2 Rec Leader IIIs, 2 Rec Leader Is,
and supplies and materials at very
low cost to our residents. (The
investment may be combined with
Category 3 programing amount)
2 Maintenance (45%) $140,022
Increase park caretakers to help with
trash and maintenance of the city
parks and open space areas around
the city as possible.
3 Improvements (45%) $140,022
Augment investment as to park
facilities as prioritized by the facilities
need assessment under the direction
of the City Council.
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12
Alternative B (Bonding)
The maximum bonding amount projected under this category is $2,134,285 assuming a 10 year
bond and a 20% allocation of yearly revenue for maintenance (10% - $31,116) and programing
(10% - $31,116).
The parks component of the City’s facilities need assessment identified more than $18,000,000
in unfunded improvements needed in various tiers. Under this alternative, funding would go to
the most urgent park needs as identified through the asset management program in development
by staff.
Item Description Investment Improvement
1 Programing Addition
(10%) $31,116 per year
Currently, the City does not provide
youth soccer or youth basketball
clinics. This funding would help to
provide the needed supplies and
staffing for these programs. There
are certainly other programs the City
could provide with these funds; this
is simply to illustrate the new
programs that would be possible.
$50K would offset costs for a youth
soccer program providing funding for
2 Rec Leader IIIs, 2 Rec Leader Is,
and supplies and materials at very
low cost to our residents. (The
investment may be combined with
Category 3 programing amount)
2 Maintenance (10%) $31,116 per year
Increase park caretakers to help with
trash and maintenance of the city
parks and open space areas around
the city as possible.
3 Improvements $2,134,285 per
10 years
Augment investment as to park
facilities as prioritized by the facilities
need assessment under the direction
of the City Council.
Page 16 of 32
13
Category 3 – New Parks
15% of the parcel tax would go to the construction, development, and programming of new parks,
playgrounds, open space, and tot lots.
The yearly dollar projection from the tax initiative under this category is $233,372.
Alternative A (Pay as you Go)
The development of new parks would necessitate a citywide Parks Master Plan (PMP) that would
help identify potential sites and costs and would position the City well for any future grant
opportunities. In addition, the preparation costs and some of the required m atching funds could
potentially be secured through this alternative.
Item Description Investment per
Yr
Improvement
1 Programing Addition
(10%) $23,337
Currently, the City does not provide
youth soccer or youth basketball
clinics. This funding would help to
provide the needed supplies and
staffing for these programs. There
are certainly other programs the
City could provide with these funds;
this is simply to illustrate the new
programs that would be possible.
$50K would offset costs for a youth
soccer program providing funding
for 2 Rec Leader IIIs, 2 Rec Leader
Is, and supplies and materials at
very low cost to our residents.
(The investment may be combined
with Category 2 programing
amount)
2 Park Master Plan and
Grants $50,000
The development of new parks
would necessitate a citywide Parks
Master Plan (PMP) that would help
identify potential sites and costs
and would position the City well for
any future grant opportunities.
3 Development/Construction $160,034
Prepare, develop, sites to be
“shovel ready for granting
opportunities. Construct new sites.
Augment the construction of new
park facilities.
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14
Alternative B (Bonding)
Synopsis: The maximum bonding amount projected under this category is $1,600,714 assuming
a 10 year bond and a 20% allocation of yearly revenue for maintenance (10% - $23,337) and
programing (10% - $23,337). The development of new parks would necessitate a citywide Parks
Master Plan (PMP) that would help identify potential sites and costs. Once that is done, staff
would recommend to the City Council a particular site for a new park facility.
Item Description Investment Improvement
1 Programing Addition
(10%) $23,337 per year
Currently, the City does not provide
youth soccer or youth basketball
clinics. This funding would help to
provide the needed supplies and
staffing for these programs. There
are certainly other programs the City
could provide with these funds; this
is simply to illustrate the new
programs that would be possible.
$50K would offset costs for a youth
soccer program providing funding for
2 Rec Leader IIIs, 2 Rec Leader Is,
and supplies and materials at very
low cost to our residents. (The
investment may be combined with
Category 2 programing amount)
2 Maintenance (10%) $23,337 per year
Increase park caretakers to help with
trash and maintenance of the city
parks and open space areas around
the city as possible.
3 Parks Master Plan Only use in Year 1
The development of new parks
would necessitate a citywide Parks
Master Plan (PMP) that would help
identify potential sites and costs
4 Development/
Construction
$1,600,714 per
10 years
Augment investment as to park
facilities as prioritized by the facilities
need assessment under the direction
of the City Council.
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15
Category 4 – Administrative Costs
The total amount available under the Initiative Measure for administrative costs is estimated to be
$233,300. These funds would go to the establishment and support of the five-member Citizen
Oversight Committee, the quarterly status reports to the Oversight Committee, the annual report
to be provided to the City Council by the City Treasurer, the annual audit of the parcel tax fund to
be caused by the City Treasurer, establishing and maintaining the parcel tax database,
processing new and continuing requests for exemptions, handling possible appeals, and annually
putting the parcel tax on the tax roll. These activities are anticipated to require additional staffing
support in both the Engineering and Finance departments as well as assistance from outside
consultants.
Summary
This report presents an analysis of the impacts of the proposed parcel tax measure and
provides scenarios that illustrate the potential uses of the projected funds available with the
stated assumptions. Acceptance of this report by the City Council does not constitute any
commitment to any alternative, specific projects or funding methods.
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16
Category Item
Yearly
Projected
Revenue
Improvement Need Investment Per
Yr.Notes
Umpaved Alleys - 30%
of Category 1 projected
revenue
$300,000 per alley 233,371$
Assume $60 per square foot of alley. Total
for unpaved alleys is estimated to be
$7,000,000.
Pavement Management
Program - 30% of
Category 1 projected
revenue
$1,000,000 additional per
year to maintain a PCI in the
70’s
233,371$ Current yearly investment is about
$2,000,000
Sidewalk/Pedestrian
Ramps/Pedestrian
Safety transition
program - 20% of
Category 1 projected
revenue
$1,000,000 per year to
complete a 10 year
transition plan
155,581$ Current yearly investment is about $500,000
Street lights - 20% of
Category 1 projected
revenue
$2,500,000 investment to
purchase and transition all
street lights to LED
155,581$
The savings in energy will pay for transition
in 6 years. The additional investment per
year will help pay back sooner.
Additional Programing
10% of Category 2
pojected revenue
$50,000 would offset costs
for a youth soccer program
providing funding for 2
Recreation Leaders IIIs, 2
Recreation Leaders Is, and
supplies and materials at
very low cost to our
residents.
$ 31,116
Currently, the City does not provide youth
soccer or youth basketball clinics. This
funding would help to provide the needed
supplies and staffing for these programs.
(The investment may be combined with
Category 3 programing amount)
Maintenance - 45% of
Category 2 projected
revenue
Parks yearly maintenance
budget is about $1,700,000 $ 140,022
Increase park caretakers to help with trash
and maintenance of the city parks and open
space areas around the city as possible.
Improvements - 45% of
Category 2 projected
revenue
The parks component of the
City’s facilities need
assessment identified more
than $18,000,000 in
unfunded improvements
needed in various tiers
$ 140,022 Augment investment to existing park
facilities
Additional Programing
10% of Category 3
pojected revenue
$50K would offset costs for a
youth soccer program
providing funding for 2
Recreation Leaders IIIs, 2
Recreation Leaders Is, and
supplies and materials at
very low cost to our
residents.
$ 23,337
Currently, the City does not provide youth
soccer or youth basketball clinics. This
funding would help to provide the needed
supplies and staffing for these programs.
(The investment may be combined with
Category 2 programing amount)
Parks Master Plan and
Grants $ 50,000
The development of new parks would
necessitate a citywide Parks Master Plan
(PMP) that would help identify potential
sites and costs and would position the City
well for any future grant opportunities.
Development /
Construction $ 160,034
Prepare, develop, sites to be “shovel ready
for granting opportunities. Construct new
sites. Augment the construction of new
park facilities.
4 Administrative
Costs 233,372$ $ 233,372
New Parks 233,372$ 3
Streets and
Alleyways1 777,905$
Alternative A - PayGo
2 Existing Parks 311,162$
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RESOLUTION NO. 2022-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL
CITY, CALIFORNIA, ACCEPTING THE CERTIFICATION OF THE SAN
DIEGO COUNTY REGISTRAR OF VOTERS AS TO THE SUFFICIENCY
OF THE INITIATIVE PETITION ENTITLED “NATIONAL CITY SPECIAL
PARCEL TAX FOR STREETS AND PARKS”
WHEREAS, on Tuesday, February 1, 2022, proponents of an initiative measure entitled
“National City Special Parcel Tax for Streets and Parks” (“Initiative”) submitted a Notice of
Intention and written text of the measure and requested that a title and summary be prepared by
the City Attorney for the measure in order to circulate the petition; and
WHEREAS, on Monday, February 14, 2022, the City Attorney prepared and provided an
official ballot title and summary for the proposed Initiative for use by the proponents for publication
and circulation of the petition; and
WHEREAS, on Monday, February 14, 2022, the City of National City Deputy City Clerk
contacted the San Diego County Registrar-Recorder’s Office to determine the number of
registered voters in the City of National City, as of its last report to the Secretary of State pursuant
to Elections Code Section 2187, effective January 2022, and the Clerk determined that the
number of registered voters in the City was 27,785; and
WHEREAS, the initiative petition would require at least 2,779 (10%) valid signatures to be
sufficient to qualify for a regular or special election; and
WHEREAS, the petitions regarding the initiative were filed with the City Clerk on Tuesday,
June 7, 2022, and were then submitted to the San Diego County Registrar-Recorder on Tuesday,
June 7, 2022, for signature verification; and
WHEREAS, the results of the signature verification conducted by the San Diego County
Registrar-Recorder established that 3,353 of the 3,421 signatures on the petition were examined
of which 2,779 were found to be sufficient; and
WHEREAS, the number of signatures qualified, 2,779, is in excess of the minimum
number of signatures required for a regular or special election pursuant to Election Code Section
9215 and 1405; and
WHEREAS, the San Diego County Registrar-Recorder has prepared the Certificate of
Sufficiency of the Initiative Petition attached as Exhibit “A”; and
WHEREAS, Elections Code Sections 9114, and 9215 requires that the voter initiative
petitions be submitted to the City Council at the next regular City Council meeting following the
certification;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,
DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Page 30 of 32
Section 1. That the City Council of the City of National City hereby accepts the
Certificate of Sufficiency regarding the initiative petition.
PASSED, and ADOPTED this 30th day of August, 2022.
________________________
Alejandra Sotelo-Solis, Mayor
ATTEST:
________________________
Luz Molina, City Clerk
APPROVED AS TO FORM:
____________________________
Barry J. Schultz, Interim City Attorney
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