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HomeMy WebLinkAboutNB 6 N. TUSTIN INCORP 01-21-91'DATE: TO: FROM: Y JANUARY 21, 1991 WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT NEW BUSINESS N0. 6 1-21-91 Inter - Com NORTH TUSTIN INCORPORATION - REVIEW OF FISCAL ANALYSIS BY SUBJECT: STATE CONTROLLER RECOMMENDATION Pleasure of the Council. BACKGROUND As the City Council is aware, a petition to incorporate North Tustin was filed with the Local Agency Formation Commission (LAFCO) on December 26, 1990. As part of the incorporation petition, a comprehensive Fiscal Analysis of the Feasibility of the Community of North Tustin, dated December 26, 1990 and prepared by the firm of Christensen and Wallace, Incorporated has been submitted by the incorporation proponents. At the request of Mayor Edgar, please find attached written requests from Mr. Douglas Chapman and Marshall Krupp asking that the City of Tustin request that LAFCO have the fiscal analysis presented to LAFCO reviewed by the State Controller pursuant to Sections 56833.3 of the Cortese -Knox Local Government Reorganization Act of 1985 (see attached code section). The Controller may charge LAFCO the actual costs incurred for said review and LAFCO may recover these costs by charging the interested party who requested the Controller's review. It is staff's information that LAFCO would need a $20,000 deposit to make such a request of the State Controller on behalf of the City of Tustin. In any event, pursuant to Section 56834 of the Cortese -Knox Local Government Reorganization Act of 1985, the executive officer of LAFCO is required to prepare or cause to have prepared a comprehensive fiscal analysis for an incorporation proposal. Apparently, however, LAFCO at this time do not intend to do their own independent fiscal analysis and may likely accept the incorporation petitioner's submitted fiscal analysis. Clristine Shingleton / Director of Community( Development CAS:kf/ntustin.cas C4 r UL W it r t, [,-'I V January 2, 1990 ��� JAN — i 1991 cOfeDear Council Member of Tustin: ¢ V O � e ADMINISTRATION ,� As you know from following local news, I have become involved with the effort to block the FCA's intention to form a new city of North Tustin. What happens to this area, will affect our combined community. I'm sure you are interested in what is said about the issues. I'm also sure you have followed what I have had to say with my letters to the local editors, and therefore you understand that I support the City of Tustin. I feel no need here to repeat the reasons why I oppose the effort for a new city, since you can follow them in the local news. But I do want to communicate to you directly that I support the existing city council as well. I speak only for myself, and I cannot pretend to represent a large number of people in this area, but 1 do believe that as time goes along you will become convinced that a majority of people believe as I do that the existing Tustin leadership is sound and should be supported. Unfortunately, the new city supporters often feel it is necessary to unfairly criticize Tustin in order to get their way with their audience. I believe you will be able to see through these tactics for what they are, and they do not represent truth or the opinion of the majority of residents. Several years ago a past council member of Tustin publicly voiced concern that a large area of the county, if annexed to the city, would begin to take control of the council. I hope you won't reject applications for annexation from an area because of this fear. I sincerely believe that, as the debate with the FCA over the "new city" continues, the FCA and its leaders will begin to lose followers permanently. Also, I believe that at some time in the future, when all of your county sphere is in the city, those most closely associated with the decisions made within the FCA will find that their unwise support of the "North Tustin Town Plan" will become a political liability, if they should than try to run for the city council in Tustin. If so, it will be deserved. Hopefully, when this happens, all areas of the City of Tustin would feel that their views are recognized by all members of the City Council. There is only so much I can do as an individual within the area where I live. I can speak out on the issues, I can carry petitions, I can do my best at interpreting laws and financial reports, but I cannot change the rules. One of these rules I refer to is the annexation law that prevents my including a request for an annexation election within the original petition. If this element could be included, I believe it would enhance fairness to both sides. As it stands, I fear that the effort to annex will fail because many of those in our area follow the decisions of the FCA without much question. These good neighbors, whether for lack of time or lack of interest, are not encouraged by the FCA to understand the issues, and as a result blindly follow the FCA's recommendations. I must win over some FCA converts, or during the protest period the FCA will send an army of petition -gatherers down to my area and kill the annexation. They basically have the last word. Too many residents will sign a protest to the annexation when confronted on their door step, then casually return to what they were previously doing. Contrast the little preparation that goes into the decision to sign a protest when asked, to the effort and time necessary to understand the issues on an election ballot. Time to study the issues is given to the latter, and those that don't study the issues are typically the ones that don't A vote. Also, neither side can enter the voting booth and argue with the voter while the ballot is being marked, yet that is in essence what happens during the protest period. I am not asking that individual members of the city council become publicly engaged with the debate over North Tustin issues. That, of course, is up to you. I do, however, ask for your support. Any support is welcome, and your support is most welcome. I believe Tustin has a legitimate role to play in analyzing any proposal involving its sphere of influence. Specifically, I request that your city request a State Controller's audit of the Comprehensive Fiscal Analysis presented to LAFCO by the FCA. This request could be made with a prorated contribution against its cost from the City of Orange. I would like the privilege of carrying your request to LAFCO if that is appropriate. The 30 day period of time during which this request can be made will probably start sometime in February. I would like to thank you for your decision to contribute to your community by serving on the Tustin City Council. Whether or not we agree on every issue, you have won my respect. Sincerely, AWXa-2 Douglas M. Chapman 13252 Fairmont Way Santa Ana, CA 92705 (Resident, County unincorporated area, Tustin Sphere of Influence) CC: Richard B. Edgar, Mayor Charles E. Puckett, Mayor Pro -tem Earl Prescott, Councilman Jim Potts, Councilman Leslie Anne Pontious, Councilwoman t- it A. Huston, City Manager COMMUNITY SYSTEMS ASSOCIATES, INC.- Mr. Bill Huston City Manager CITY OF TUSTIN 300 Centennial Way Tustin, California Q�� 92680 SUBJECT: North Tustin Incorporation Dear Bill: January lo, 1991 RECEIVED JAN1 1 !1991] - L ADMINISTRATION Following in the tracks of Doug Chapman, I have decided reluc- tantly to again become involved in the issues of North Tustin, particularly the proposal for incorporation of the community. Enclosed please find a copy of a letter to the editor published in the Tustin News on January 10, 1991, together with recent let- ters to Mr. James Colangelo, Executive Director of LAFCO, and Su- pervisors Stanton and Vasquez. It is certainly a travesty that the proponents and their consult- ant, Christensen & Wallace, Inc., continue to misrepresent the realities of the situation. As such, my firm is presently con- ducting a detailed, page -by -page and paragraph -by -paragraph analysis of the Report to identify all of the errors, inconsis- tencies, misrepresentations, and false conclusions. I highly encourage the Cities of Tustin and Orange to pursue the matter with the State Controller's Office, and I would certainly be prepared to provide any factual information that may be neces- sary. Should you or members of the City Council want to meet 4- A4 Udon't hesitate to call. lsc"ss -Itlatter6, please , I hope you are having a good New Year. Sincerely, CO UNITY SYSTMS ASSOCIATES, INC. hall r p e ident "public/private project management, feasibility, and implementation" 1717 SOUTH STATE COLLEGE BOULEVARD - SUITE 100 - ANAHEIM, CALIFORNIA 92806 - TELEPHONE (714) 978-8887 COMMUNITY SYSTEMS ASSOCIATES, INC ----IS 0 18� January 10, 1991 -q C31 PW Mr. Roger Stanton Supervisor COUNTY OF ORANGE 10 Civic Center Plaza Santa Ana, California 92701 Mr. Gaddi Vasquez Supervisor COUNTY OF ORANGE 10 Civic Center Plaza Santa Ana, California 92701 RE: North Tustin Incorporation Proposal Gentlemen: On January 8, 1991, 1 transmitted the enclosed letter to Mr. James Colangelo, Executive Director of the County of Orange Local Agency Formation Commission (I1LAFCOII) raising concerns relative to the adequacy, accuracy, completeness and objectivity of the Comprehensive Fiscal Analysis prepared by the firm of Christensen & Wallace, Inc. to determine the feasibility of incorporation of the community of North Tustin. It is certainly unfortunate that in the past you and your col- leagues have experienced controversy, attacks, and considerable time and resources having to address the sometimes irrational outcries and concerns of the North Tustin Community, in general, and certain factions in the community, in particular. It is also unfortunate that the proposal and application to LAFCO for incor- poration of North Tustin may be just the beginning of a period of ever more controversy and community turmoil, and that you and your colleagues will end up in the middle of this controversy be- cause of political and personality differences, and technical in- adequacies. Clearly, I have no justification to suggest that you become in- volved or look into the issues relating to the political and per- sonality differences. However, as one public entity that will be using the technical documentation to take certain actions in favor or in opposition to the incorporation proposal, it would appear that you and your colleagues should and must be concerned with the adequacy, accuracy, completeness and objectivity "public/private project management, feasibility, and implementation" 1717 SOUTH STATE COLLEGE BOULEVARD • SUITE 100 • ANAHEIM, CALIFORNIA 92806 • TELEPHONE (714) 978-8887 COMMUNITY SYSTEMS ASSOCWE& 04C COUNTY OF ORANGE January 10, 1991 Page 2 of the technical documentation, including the Comprehensive Fis- cal Analysis, so as to ensure that full and complete disclosure of the financial issues are addressed, enabling the various public bodies and the community to make an informed decision. It is finally unfortunate that should you not intervene with LAFCO at this time, or suggest that the County's staff look into the Comprehensive Fiscal Analysis, the resulting public con- troversy and ultimately the final decisions could be sig- nificantly embarrassing to the County, the Board of Supervisors, LAFCO and Christensen & Wallace, Inc., and may have legal im- plications which the County and LAFCO may have to defend after the fact. I am certain that neither the Board of Supervisors nor the Com- mission would want to be in that position, particularly if inter- vening in the early stages of the process might reconcile certain technical differences of opinion. I would, therefore, respectfully request that you give considera- tion to my letter to Mr. Colangelo, and that I be provided with an opportunity to meet with you to discuss this matter in greater detail. As a representative of the area to be affected by the incorpora- tion proposal, I appreciate your time, concern, and interest in this matter, although I also acknowledge your limited time and resources. It is not my intent to seek your consideration of actions which are unreasonable or unrealistic. Rather, it is my objective to seek your intervention with LAFCO in terms of seeking a Com- prehensive Fiscal Report which is a full, complete, and objective disclosure, before we enter the public arena process. Thank you for your consideration and assistance. Sincerely, UNITY S TE 4_7 shalil B. r p eside t MBK:mmg 12/123 ASSOCIATES, INC. COMMUNITY SYSTEMS ASSOCIATES, INC�M JIM q; P - Mr. James Colangelo Executive Director COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION 1200 North Main Street - Suite 614 Santa Ana, California 92701 January 8, 1991 SUBJECT: Proposed Incorporation of North Tustin Application and Reorganization No. 127 Dear Mr. Colangelo: I am a resident of the North Tustin community. and reside at 1891 Beverly Glen Drive, Santa Ana, California 92705. As a resident which may be affected by the above stated application and reor- ganization, and as an active member in North Tustin community af- fairs, I am disappointed as to the lack of factual information which has been made available by the proponents relative to the issues, impacts, advantages and disadvantages regarding the in- corporation proposal. I would hereby request that I be placed on all mailing lists relative to a) the public distribution of information and materials; b) public meeting and hearing notices; and c) in- quiries as to resident opinions and input. Thank you for your assistance and consideration. Sincerely, COMMUNITY SYSTEMS 4 XA1111 s�hfihallt4rupp Pesiden MBK: dl 3:44 ASSOCIATES, INC. "public/private project management, feasibility, and implementation" 1717 SOUTH STATE COLLEGE BOULEVARD - SUITE 100 - ANAHEIM, CALIFORNIA 92806 - TELEPHONE (714) 978-8887 C OMMUNITY SYSTEMS ASSOCIATES, INC. C25 January 8, 1991 Mr. James Colangelo Executive Director COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION 1200 North Main Street - Suite 614 Santa Ana, California 92701 SUBJECT: Comprehensive Fiscal Analysis North Tustin Incorporation Application Dear Mr. Colangelo: I recently received a copy of the Comprehensive Fiscal Analysis of the Feasibility of the Community of North Tustin ("Report") dated December 26, 1990 and prepared by the firm of Christensen & Wallace, Inc. (11C&W11). As a resident of North Tustin, and having a business which provides professional and technical consultation to public agencies on fiscal matters, including but not limited to, creative public financing, fiscal impact analysis, community development, strategic planning, community participation, and political strategies, I believe that I am qualified and capable to objectively review and analyze the Report, and identify its adequacy or inadequacy towards addressing the fiscal issues of incorporation. Although I have spent over 20 hours reading and re -reading the Report, I have not put all of my thoughts on paper as of yet, but hope to do so in the next several weeks. In the interim, I felt it necessary to forward this letter to you due to disturbing in- formation I have recently received. I have been advised that the staff of the County of orange Local Agency Formation Commission (11LAFCOII) has or intends to find and accept the Report as being "acceptable, adequate and complete" for consideration by the Commission and the Board of Supervisors of the County of Orange. I am confident that this finding, if made, will be a result of a comprehensive evaluation of the con- tents of the Report, including but not limited to, a) the ac- curacy of the mathematical calculations; b) the substantiation and documentation of data and references cited in the Report; c) the acceptability of the methodology used in the analysis; d) the accuracy of the legal conclusions cited relative to the use of revenues; and e) the accuracy of the conclusions cited relative to the scope, magnitude, and completeness of the expenditures noted, etc. "public/private project management, feasibility, and implementation" 1717 SOUTH STATE COLLEGE BOULEVARD - SUITE 100 - ANAHEIM, CALIFORNIA 92806 - TELEPHONE (714) 978-8887 �_±�� 9: -:'ice.. e_ Mr. James Colangelo COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION January 8, 1991 Page 2 .It appears to me that the Report is not an objective, complete, and accurate analysis of the fiscal ramifications of incorpora- tion, but rather contains inconsistencies, contradictions, errors and incompleteness, that when addressed, appear to lead to con- clusions which are substantially different than presented in the Report. In light of the fact that the incorporation proposed for North Tustin is significantly different than other communities due to the fact that a) there are no sales tax or transient occupancy tax revenue sources, except for the single restaurant; b) the lack of -potential for such revenue sources due to the North Tus- tin Community Plan land use designations and the proponents claim that such land uses will not be pursued upon incorporation; and c) the unique physical, socio -demographic, and economic charac- teristics of the community, it would not be prudent to accept or consider a fiscal analysis which was not scrutinized in detail so as to protect the legal rights of the citizens, residents, and property owners of the affected area. The Report itself cites the uniqueness of this area relative to incorporation, and LAFCO would be remiss to not use its authority, technical capability, and professional objectivity to scrutinize the Report at a level significantly higher than it would a report which addressed a community that had a balance land use pattern, and resulting revenues and costs. It would appear that this is even more justified, in light of the fact that the proposal for incorporation has and continues to be highly controversial, and any attacks will either be addressed to the political and personality side of the issues, and/or the fis- cal and technical side of the issues. If the kind of quality analysis is not conducted at the staff level of LAFCO, it cer- tainly will become a point of argument at the public hearing processes, resulting in a time consuming and potentially politi- cally embarrassing and vulnerable situation. It would be unfair to you for me to reach the conclusion set forth in this letter, in light of the fact that my detail analysis of the Report is forthcoming. However, let me at least give you several examples of some of the failures in the Report which are readily apparent: NA I - IWO zZ mr, I CSTC, co4ww STWCWS ASSOC %a we Mr. James Colangelo COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION January 8, 1991 Page 3 1) The Report reaches several conclusions with regards to the availability and broad use of Measure I'M" Funding. In reality, Measure I'M" has significant restrictions in terms of utilization and levels of funding, which a City can be- come a limited participant in. The Report fails to disclose accurately and concisely these constraints and limitations, and how they will or can be applied in North Tustin. 2) The Report concludes that fire protection services will con- tinue to be provided by the Orange County Fire Department at the same level of service and at no additional cost to the community (i.e., contract services). If this conclusion is accurate, then it must assume that either the County of Orange or other contract cities will assume and subsidize the additional financial liability, resulting in county revenue short -falls versus actual costs to provide services. In light of the unique physical characteristics of the com- munity, it would appear that this is a false assumption. 3) The Report assumes that routine maintenance, street main- tenance, and traffic signal maintenance will only increase in cost by the rate of inflation (i.e., 5%) above the FY 1988/1989 service standard. This argument fails to address the condition of the community's infrastructure and the necessity to increase maintenance as a result of continued aging, deterioration, and increased usage. The Report fur- ther does not acknowledge the necessity for on-going capital expenditures to address important needs in the community due to usage conditions, failures in the systems due to natural causes, existing conditions which do not meet appropriate design standards, and conditions which would cause legal and financial liability to the City. 4) The Report uses FY 1988/1989 estimates of expenditures and revenues, which unrealistically reflect today's financial conditions of cities and counties. As you are aware, the FY 1989/1990 and the first half of FY 1990/1991 has reflected a significant down -turn in public revenues combined with an increases in the cost of doing business. The horizon ap- pears to indicate that the State's adverse financial condi- tion could be shared by cities, counties and school dis- tricts through cuts in State funded programs, modifications �l___��� �� �i,'.lii'Pili i:I� a=:moi C,0w � SYSEMS ASSOCWE& 04 Mr. James Colangelo COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION January 8, 1991 Page 4 of subvention formulas, and reductions in funding levels. To assume a FY 1988/1989 base from which to project expendi- tures and revenues, and only acknowledge inflationary changes in the budgetary analysis of a community, is blindly viewing the future. The Report appears to disregard the financial changes in the local, State and national economy, reflecting a potentially unrealistic analysis. 5) The Report cites data and information used in reaching the conclusions in the Report based upon surveys of cities con- ducted by C&W and the League of California cities. However, the data and information is not contained in the Report or its appendices, and cannot be validated and substantiated in terms of the accuracy of the data or its acceptability and applicability to North Tustin. The Report further uses data and statistical documentation from the County of Riverside and the San Diego Joint Powers Insurance Authority which is applied to North Tustin, but no comparative analysis has been provided to substantiate the similarities of these areas with North Tustin and/or the conditions that will ex- ist upon incorporation. 6) Finally, it should be noted that throughout the Report, there are mathematical, grammatical, and typographical er- rors, inconsistencies and contradictions. Appendix A is missing, and there is no list of reference materials and in- dividuals other than those stated in Appendix C. It is also noted that although much of the information cited in the letters in Appendix C were provided as "estimates," no where in the text of the Report is it so stated, and the implica- tions of these estimates evaluated. These six (6) points are perfect examples of the incompleteness of the Report, and the inaccuracy of the conclusions. Certainly, I have my own opinions as to the viability of incor- poration, and an accurate, complete, and fully disclosing Report could substantiate or alter my opinions. It is, however, unfair and inappropriate to issue a Report with such blatant inac- curacies, incompleteness, or misrepresentations, to people in the community who do not have the technical capability to distinguish between a quality report and the report that has been presented. It is further unfair to ask them to make a decision on such a Mr. James Colangelo COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION January 8, 1991 Page 5 significant issue, when the only future source of additional revenue to meet short -falls will be the pocket books of the citizens themselves. Even the Report concludes this. I would ask with all due respect, that the staff and Commission with due diligence 1) be cautious in your acceptance of the Report; 2) maintain your role as an independent and objective evaluator of such a proposal; 3) seek from the proponents a Report that is complete, substantial, error free, comprehensive, objective and rational; and 4) if the Commission does not have the resources to perform an independent evaluation of the Report, obtain outside professional and technical assistance, so that this issue can be aired with the greatest amount of full, ac- curate, and complete disclosure. Thank you for your consideration and assistance in this matter. 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' ro �". w L. ro �" > C ro i~ ' C w r4' w O 9i s RS x row �� V 6 C4' y_ .�.C, C V c 0 ,O v C U C y p C ..+ C p„ ro RS — 4 t4 -0 C w .0 L. t.i •^r'� E 7�, wroi tiro .0 C v 40 o E O ro U p' ro C ^U„ ro OroJ ro ct3 '.0 C O ++ 'C+' O C aJ C7 ❑ u cd vs u;; u a o.� ar ❑ 0 ro o v c c >,v L.3"cad 0-;: o v 4 v 3 23 o ° ai o � � � v v � � °. 14 En a i aroi w a, � i >- R - 4"i u"c >'^'�'�v a.% , en ro . V rn s ro ..., ro rq -+ .�., Q> "'.' Mtn C Z.- 0 w Low o •>, w C'.'C., ^ (� w 3 •• ,,, � '�' � .b 4V �v +-� .. ro. G3 > vE+ ro � �•4 a� > o vi v•^ ° � �°w _> v � a aroi3 $Z � vpp�,�, 4 av v g � �..,�Z•Lss �Z 4.� c ❑ `� 0;0� cw � v vi•� E:''° cu..� > c>c a, a v o rod, Q c CO70 a ^ qO E E' c i0 • m O to U D m January 18, 1991 The Honorable Richard Edgar, Mayor and Honorable Members of the City Council The City of Tustin 300 Centennial Way Tustin, Ca 92680 Dear Mayor Edgar and Members of the Council: North Tustin Citizens Against Incorporation is a newly formed group of long term North Tustin residents who are dedicated to the defeat of incorporating North Tustin into a new city. We believe incorporation would be destructive to the best qualities of our community and that the financial instability of such a city would be detrimental to property values. Incorporation proponents cite as their authority for the viability of a new city, a "...Comprehensive Fiscal Analysis..." prepared by Christensen & Wallace, Inc. We have thoroughly reviewed this study and find it sufficiently misleading and unreliable as to justify examination by the State Controller's office. Since portions of North Tustin lie in your sphere of influence, we trust that you share our interest in insuring that residents will have dependable information available to them. We request, therefore, that the city councils of Tustin and orange agree as soon as possible to cooperate in seeking an official review of this document from the State Controller's office in a time frame consistent with LAFCo procedures. Thank you for your consideration. Sincerely, NORTH-TV-STIN CITIZENS AGAINST INCORPORATION 1v Jim Brooks, Chairman Pro Tem cc: Honorable Gene Beyer, Mayor and Honorable Members of the City Council, orange Enc. (1) P.O. Box 427-117 # Tustin, CA 92681-0427 * 7141832-3093 NORTH TUSTIN CITIZENS January 18, 1991 The Honorable Gene Beyer, Mayor and Honorable Members of the City Council The City of Orange 300 East Chapman Avenue Orange, CA 92666 Dear Mayor Beyer and Members of the Council: North Tustin Citizens Against Incorporation is a newly formed group of long term North Tustin residents who are dedicated to the defeat of incorporating North Tustin into a new city. We believe incorporation would be destructive to the best qualities of our community and that the financial instability of such a city would be detrimental to property values. Incorporation proponents cite as their authority for the viability of a new city, a "...Comprehensive Fiscal Analysis. . ." prepared by Christensen & Wallace, Inc. We have thoroughly reviewed this study and find it sufficiently misleading and unreliable as to justify examination by the State Controller's office. Since portions of North Tustin lie in your sphere of influence, we trust that you share our interest in insuring that residents will have dependable information available to them. We request, therefore, that the city councils of Tustin and orange agree as soon as possible to cooperate in seeking an official review of this document from the State Controller's office in a time frame consistent with LAFCo procedures. Thank you for your consideration. Sincerely, N#ORTH TUSTI-NCITIZENS AGAINST INCORPORATION it rooks, Chairman Pro Tem cc: Honorable Richard Edgar, Mayor and Honorable Members of the City Council, Tustin Enc. (1) P.O. Box 427-117 • Tustin, CA 92681-0427 • 7141832-3093 M + e FOR RELEASE: IMMEDIATE January 21, 1991 CONTACT: North Tustin Citizens Against Incorporation (832-3093) GROUP FORMS TO OPPOSE NORTH TUSTIN INCORPORATION The formation of North Tustin Citizens Against Incorporation was announced today by a group of long-term North Tustin In making the announcement, Chairman -Pro tem Jim Brooke commented, "Our name, North Tustin citizens Against Incorporation, defines our mission to defeat the incorporation of North Tustin into a new city. We welcome support from other citizens who strongly oppose incorporation. They may prefer to remain unincorporated or they may prefer to annex to neighboring cities, but they will support self-determination for neighborhoods and will strongly oppose any efforts to create a new city. That's true local, control." "We're responding to community demands for an organization that reflects the views of the vast majority of North Tustin residents. Most people understand that incorporation into a fiscally unstable now city would rob North Tustin of the unique qualities we want to preserve." Contending that incorporation activists are misleading both voters and government officials, Brooks described the new group as a resource center for factual information. "Providing North Tustin households with reliable data about the economic and political impacts of incorporation has yet to take place and we intend to fill that void." Citing early pledges of support from respected members of the community, Brooks stated, "we urge those who strongly oppose any efforts to create a new city and at the same time believe in self-determination for neighborhoods to contact our group at $32- 3093.11 agr :her. ub i*' Ih��a_• filed .e fid' � he \\ ar to proposal to furnish 90 or the :` electric service; report of Public Utilities esolu Commission on file befote� propo4 hearing ne per the y propo.,., .nd re Executive officer's report; set to whom copies furnished r that i.. '4 L to a ied for final a idiary is 11 do and the it and alternative proposal. (2) Approve both the original proposal and the alternative proposal. (3) Approve one proposal and deny the other. (c) 'Alternative proposal,' as used in this section, means an alternative proposal to a subsidiary district proposal as provided for in Section 56829. (Amended by Stats. 1989, Ch. 233) 56832. If any sufficient petition or resolution of application shall propose, as a part of the petition or resolution of application, that the district shall furnish gas or electric service, as provided in Sections 56129 to 56131, inclusive, a certified copy of the \,report of the Public Utilities Commission s,ia11 be on file with the executive officer prior to setting that petition or resolution for public hearing by the commission. 56831\ The executive officer shall preview each application which is filed with the execut've officer and shall prepare a report, inc uding his or her recommendations, on the application. The report shall be completed notess than five days prior to the date specified the notice of hearing. Upon completion, the a ecutive officer shall furnish copies of t e report to each of the following: \ (a) The officers or\\ersons designated in the application. �'�, (b) Each local agency whose boundaries or sphere of influence would be changed by the proposal or recommendation. (c) Each affected local agerisy which has filed a request for a report with the executive officer. (d) The executive officer of another affected county when'a district is or,will be located in that other county. \, (e) Each affected city. other. Comprehensive fiscal 56833.1. For any proposal which includes sting analysis; contents an incorporation, the executive officer shall th prepare, or cause to be prepared by contract, o one a comprehensive fiscal analysis. This analysis shall become part of the report n required pursuant to Section 56833. Data used - 91 - for the analysis shall be from the most recent fiscal year for which data are available, provided that the data are not more than one fiscal year old. When data from the most recent fiscal year are unavailable, the analysis shall document the source and methodology of the data used. The analysis shall review and document each of the following: (a) The costs to the proposed city of providing public services and facilities during the three fiscal years following incorporation. (b) The revenues of the proposed city during the three fiscal years following incorporation. (c) The effects on the costs and revenues of any affected local agency during the three fiscal years of incorporation. (d) Any other information and analysis needed to make the findings required by Section 56375.1. (Added by Stats. 1989, Ch. 1384) Review of comprehensive 56833.3. (a) For any proposal which in - fiscal analysis by cludes an incorporation, the executive comptroller;requests; officer shall, at the request of an inter - costs ested party and prior to issuing his or her report and recommendation pursuant to Section 56833, request the Controller to review the comprehensive fiscal analysis prepared pursuant to Section 56833.1. (b) Vithin 45 days of receiving the analysis, the Controller shall issue a report to the executive officer regarding the accuracy and reliability of the information, methodologies, and documentation used in the analysis. The executive officer shall include the results of the Controller's report into his or her own report and recommendation issued pursuant to Section 56833. (c) Notwithstanding Sections 56378 and 56386, the Controller may charge the commission for the actual costs incurred pursuant to this section. The commission may recover these costs by charging the person vha requested the Controller's review. (Added by Stats. 1989, Ch. 1384) Notice of hearing by 56834. The executive officer shall give publication and notice of-any__hearing__by--the--commission by posting �- publication, as provided in Sections 56153 92 - k cs, - January 2, 1990 Eo JAN — 7 1991 14,N $ y� CC�r h�t;VI' Y 0E`Ji.t:nPM . T ADMINISTRATION Dear Council Member of Tustin: �� As you know from following local news, I have become involved with the effort to block the FCA's intention to form a new city of North Tustin. What happens to this area, will affect our combined community. I'm sure you are interested in what is said about the issues. I'm also sure you have followed what I have had to say with my letters to the local editors, and therefore you understand that I support the City of Tustin. I feel no need here to repeat the reasons why I oppose the effort for a new city, since you can follow them in the local news. But I do want to communicate to you directly that I support the existing city council as well. I speak only for myself, and I cam -lot pretend to represent a large number of people in this area, but I do believe that as time goes along you will become convinced that a majority of people believe as I do that the existing Tustin leadership is sound and should be supported. Unfortunately, the new city supporters often feel it is necessary to unfairly criticize Tustin in order to get their way with their audience. I believe you will be able to see through these tactics for what they are, and they do not represent truth or the opinion of the majority of residents. Several years ago a past council member of Tustin publicly voiced concern that a large area of the county, if annexed to the city, would begin to take control of the council. I hope you won't reject applications for annexation from an area because of this fear. I sincerely believe that, as the debate with the FCA over the new city continues, the FCA and its leaders will begin to lose followers permanently. Also, I believe that at some time in the future, when all of your county sphere is in the city, those most closely associated with the decisions made within the FCA will find that their unwise support of the "North Tustin Town Plan" will become a political liability, if they should than try to run for the city council in Tustin. If so, it will be deserved. Hopefully, when this happens, all areas of the City of Tustin would feel that their views are recognized by all members of the City Council. There is only so much I can do as an individual within the area where I live. I can speak out on the issues, I can carry petitions, I can do my best at interpreting laws and financial reports, but : cannot change the rules. One of these rules I refer to is the annexation law that prevents my including a request for an annexation election within the original petition. If this element could be included, I believe it would enhance fairness to both sides. As it stands, I fear that the effort to annex will fail because many of those in our area follow the decisions of the FCA without much question. These good neighbors, whether for lack of time or lack of interest, are not encouraged by the FCA to understand the issues, and as a result blindly follow the FCA's recommendations. I must win over some FCA converts, or during the protest period the FCA will send an army of petition -gatherers down to my area and kill the annexation. They basically have the last word. Too many residents will sign a protest to the annexation when confronted on their door step, then casually return to what they were previously doing. Contrast the little preparation that goes into the decision to sign a protest when asked, to the effort asci time necessary to understand the issues on an election ballot. Time to study the issues is given to the latter, and those that don't study the issues are typically the ones that don't - vote. Also, neither side can enter the voting booth and argue with the voter while the ballot is being marked, yet that is in essence what happens during the protest period. I am not asking that individual members of the city council become publicly engaged with the debate over North Tustin issues. That, of course, is up to you. I do, however, ask for your support. Any support is welcome, and your support is most welcome. I believe Tustin has a legitimate role to play in analyzing any proposal involving its sphere of influence. Specifically, I request that your city request a State Controller's audit of the Comprehensive Fiscal Analysis presented to LAFCO by the FCA. This request could be made with a prorated contribution against its cost from the City of Orange. I would like the privilege of carrying your request to LAFCO if that is appropriate. The 30 day period of time during which this request can be made will probably start sometime in February. I would like to thank you for your decision to contribute to your community by serving on the Tustin City Council. Whether or not we agree on every issue, you have won my respect. Sincerely, 64 -,-Wat-4— Douglas M. Chapman 13252 Fairmont Way Santa Ana, CA 92705 (Resident, County unincorporated area, Tustin Sphere of Influence) CC: Richard B. Edgar, Mayor Charles E. Puckett, Mayor Pro -tem Earl Prescott, Councilman Jim Potts, Councilman Leslie Anne Pontious, Councilwoman iam A. Huston, City Manager IIEMP�Irftlhh COMMUNITY SYSTEMS ASSOCIATES, INC. -fes �c ad= = a `y Mr. Bill Huston City Manager CITY OF TUSTIN 300 Centennial Way Tustin, California SUBJECT: North Tustin Incorporation Dear Bill: January 10, 1991 RECEIVED JM 1 1199! ADMINISTRATION Following in the tracks of Doug Chapman, I have decided reluc- tantly to again become involved in the issues of North Tustin, particularly the proposal for incorporation of the community. Enclosed please find a copy of a letter to the editor published in the Tustin News on January 10, 1991, together with recent let- ters to Mr. James Colangelo, Executive Director of 1AFCO, and Su- pervisors Stanton and Vasquez. It is certainly a travesty that the proponents and their consult- ant, Christensen & Wallace, Inc., continue to misrepresent the realities of the situation. As such, my firm is presently con- ducting a detailed, page -by -page and paragraph -by -paragraph analysis of the Report to identify all of the errors, inconsis- tencies, misrepresentations, and false conclusions. I highly encourage the Cities of Tustin and Orange to pursue the matter with the State Controller's Office, and I would certainly be prepared to provide any factual information that may be neces- sary. Should you or members of the .City Council want to meet �•: if''c '.O da.%A %-L lese ma,1Cter;�-, please don't hesitate to call. I hope you are having a good New Year. Sincerely, CO UNITY SYST MS ASSOCIATES, INC. h� r p e ident MBK: dl 3:48 "public/private project management, feasibility, and implementation" 1717 SOUTH STATE COLLEGE BOULEVARD • SUITE 100 • ANAHEIM, CALIFORNIA 92806 • TELEPHONE (714) 978-8887 COMMUNITY SYSTEMS ASSOCIATES. INC. Mr. Roger Stanton Supervisor ZA1141391p, I F. �11 r EWE q C31 PW COUNTY OF ORANGE 10 Civic Center Plaza Santa Ana, California 92701 Mr. Gaddi Vasquez Supervisor COUNTY OF ORANGE 10 Civic Center Plaza Santa Ana, California 92701 RE: North Tustin Incorporation Proposal Gentlemen: January 10, 1991 On January 8, 1991, I transmitted the enclosed letter to Mr. James Colangelo, Executive Director of the County of Orange Local Agency Formation Commission (11LAFCO11) raising concerns relative to the adequacy, accuracy, completeness and objectivity of the Comprehensive Fiscal Analysis prepared by the firm of Christensen & Wallace, Inc. to determine the feasibility of incorporation of the community of North Tustin. It is certainly unfortunate that in the past you and your col- leagues have experienced controversy, attacks, and considerable time and resources having to address the sometimes irrational outcries and concerns of the North Tustin Community, in general, and certain factions in the community, in particular. It is also unfortunate that the proposal and application to LAFCO for incor- poration of North Tustin may be just the beginning of a period of ever more controversy and community turmoil, and that you and your colleagues will end up in the middle of this controversy be- cause of political and personality differences, and technical in- adequacies. Clearly, I have no justification to suggest that you become in- volved or look into the issues relating to the political and per- sonality differences. However, as one public entity that will be using the technical documentation to take certain actions in favor or in opposition to the incorporation proposal, it would appear that you and your colleagues should and must be concerned with the adequacy, accuracy, completeness and objectivity "public/private project management, feasibility, and implementation" 1717 SOUTH STATE COLLEGE BOULEVARD • SUITE 100 • ANAHEIM, CALIFORNIA 92806 0 TELEPHONE (714) 978-8887 �i CO4MN.TV SYSTEMS A CNTEi MC _= _ I COUNTY OF ORANGE January 10, 1991 Page 2 of the technical documentation, including the Comprehensive Fis- cal Analysis, so as to ensure that full and complete disclosure of the financial issues are addressed, enabling the various public bodies and the community to make an informed decision. It is finally unfortunate that should you not intervene with LAFCO at this time, or suggest that the County's staff look into the Comprehensive Fiscal Analysis, the resulting public con- troversy and ultimately the final decisions could be sig- nificantly embarrassing to the County, the Board of Supervisors, LAFCO and Christensen & Wallace, Inc., and may have legal im- plications which the County and LAFCO may have to defend after the fact. I am certain that neither the Board of Supervisors nor the Com- mission would want to be in that position, particularly if inter- vening in.the early stages of the process might reconcile certain technical differences of opinion. I would, therefore, respectfully request that you give considera- tion to my letter to Mr. Colangelo, and that I be provided with an opportunity to meet with you to discuss this matter in greater detail. As a representative of the area to be affected by the incorpora- tion proposal, I appreciate your time, concern, and interest in this matter, although I also acknowledge your limited .time and resources. It is not my intent to seek your consideration of actions which are unreasonable or unrealistic. Rather, it is my objective to seek your intervention with LAFCO in terms of seeking a Com- prehensive Fiscal Report which is a full, complete, and objective disclosure, before we enter the public arena process. Thank you for your consideration and assistance. Sincerely, UNITS TE shat- B. r p esident MBK:mmg 12/123 ASSOCIATES, INC. ;OMMUNITY SYSTEMS ASSOCIATES, INC. i - p)l H . ; Nl, i w',1 • ='j'm � ..100%. M!nm— I 'Wq CM ap" Mr. James Colangelo Executive Director COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION 1200 North Main Street - Suite 614 Santa Ana, California 92701 January 81 1991 SUBJECT: Proposed Incorporation of North Tustin Application and Reorganization No. 127 Dear Mr. Colangelo: I am a resident of the North Tustin community.and reside at 1891 Beverly Glen Drive, Santa Ana, California 92705. As a resident which may be affected by the above stated application and reor- ganization, and as an active member in North Tustin community af- fairs, I am disappointed as to the lack of factual information which has been made available by the proponents relative to the issues, impacts, advantages and disadvantages regarding the in- corporation proposal. I would hereby request that I be placed on all mailing lists relative to a) the public distribution of information and materials; b) public meeting and hearing notices; and c) in- quiries as to resident opinions and input. Thank you for your assistance and consideration. Sincerely, COMMUNITY SYSTEMS shall rupp P esident MBK: dl 3:44 ASSOCIATES, INC. "public/private project management, feasibility, and implementation" 1717 SOUTH STATE COLLEGE BOULEVARD • SUITE 100 0 ANAHEIM, CALIFORNIA 92806 0 TELEPHONE (714) 978-8887 .OMMUNITY SYSTEMS ASSOCIATES, INC. = ;�" Z=I " CMI® Mr. James Colangelo Executive Director COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION 1200 North Main Street - Suite 614 Santa Ana, California 92701 SUBJECT: Comprehensive Fiscal Analysis North Tustin Incorporation Application Dear Mr. Colangelo: January 8, 1991 I-recentlyreceived a copy of the Comprehensive Fiscal Analysis of the Feasibility of the Community of North Tustin ("Report") dated December 26, 1990 and prepared by the firm of Christensen & Wallace, Inc. ("C&W"). As a resident of North Tustin, and having a business which provides professional and technical consultation to public agencies on fiscal matters, including but not limited to, creative public financing, fiscal impact analysis, community development, strategic planning, community participation, and political strategies, I believe that I am qualified and capable to objectively review and analyze the Report, and identify its adequacy or inadequacy towards addressing the fiscal issues of incorporation. Although I have spent over 20 hours reading and re -reading the Report, I have not put all of my thoughts on paper as of yet, but hope to do so in the next several weeks. In the interim, I felt it necessary to forward this letter to you due to disturbing in- formation I have recently received. I have been advised that the staff of the County of Orange Local Agency Formation Commission ("LAFCO") has or intends to find and accept the Report as being acceptable, adequate and complete" for consideration b the Commission and the Board of Supervisors of the County of Orange. I am confident that this finding, if made, will be a result of a comprehensive evaluation of the con- tents of the Report, including but not limited to, a) the ac- curacy of the mathematical calculations; b) the substantiation and documentation of data and references cited in the Report; c) the acceptability of the methodology used in the analysis; d) the accuracy of the legal conclusions cited relative to the use of revenues; and e) the accuracy of the conclusions cited relative to the scope, magnitude, and completeness of the expenditures noted, etc. "public/private project management, feasibility, and implementation" 1717 SOUTH STATE COLLEGE BOULEVARD • SUITE 100 • ANAHEIM, CALIFORNIA 92806 • TELEPHONE (714) 978-8887 0460" Y SKTEMS ASSOW1164 `= Mr. James Colangelo COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION January 8, 1991 Page 2 It appears to me that the Report is not an objective, complete, and accurate analysis of the fiscal ramifications of incorpora- tion, but rather contains inconsistencies, contradictions, errors and incompleteness, that when addressed, appear to lead to con- clusions which are substantially different than presented in the Report. In light of the fact that the incorporation proposed for North Tustin is significantly different than other communities due to the fact that a) there are no sales tax or transient occupancy tax revenue sources, except for the single restaurant; b) the lack of -potential for such revenue sources due to the North Tus- tin Community Plan land use designations and the proponents claim that such land uses will not be pursued upon incorporation; and c) the unique physical, socio -demographic, and economic charac- teristics of the community, it would not be prudent to accept or consider a fiscal analysis which was not scrutinized in detail so as to protect the legal rights of the citizens, residents, and property owners of the affected area. The Report itself cites the uniqueness of this area relative to incorporation, and LAFCO would be remiss to not use its authority, technical capability, and professional objectivity to scrutinize the Report at a level significantly higher than it would a report which addressed a community that had a balance land use pattern, and resulting revenues and costs. It would appear that this is even more justified, in light of the fact that the proposal for incorporation has and continues to be highly controversial, and any attacks will either be addressed to the political and personality side of the issues, and/or the fis- cal and technical side of the issues. If the kind of quality analysis is not conducted at the staff level of LAFCO, it cer- tainly will become a point of argument at the public hearing processes, resulting in a time consuming and potentially politi- cally embarrassing and vulnerable situation. It would be unfair to you for me to reach the conclusion set forth in this letter, in light of the fact that my detail analysis of the Report is forthcoming. However, let me at least give you several examples of some of the failures in the Report which are readily apparent: Mr. James Colangelo COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION January 81 1991 Page 3 1) The Report reaches several conclusions with regards to the availability and broad use of Measure "M" Funding. In reality, Measure "M" has significant restrictions in terms of utilization and levels of funding, which a City can be- come a limited participant in. The Report fails to disclose accurately and concisely these constraints and limitations, and how they will or can be applied in North Tustin. 2) The Report concludes that fire protection services will con- tinue to be provided by the Orange County Fire Department at the same level of service and at no additional cost to the community (i.e., contract services). If this conclusion is accurate, then it must assume that either the County of Orange or other contract cities will assume and subsidize the additional financial liability, resulting in County revenue short -falls versus actual costs to provide services. In light of the unique physical characteristics of the com- munity, it would appear that this is a false assumption. 3) The Report assumes that routine maintenance, street main- tenance, and traffic signal maintenance will only increase in cost by the rate of inflation (i.e., 5%) above the FY 1988/1989 service standard. This argument fails to address the condition of the community's infrastructure and the necessity to increase maintenance as a result of continued aging, deterioration, and increased usage. The Report fur- ther does not acknowledge the necessity for on-going capital expenditures to address important needs in the community due to usage conditions, failures in the systems due to natural causes, existing conditions which do not meet appropriate design standards, and conditions which would cause legal and financial liability to the City. 4) The Report uses FY 1988/1989 estimates of expenditures and revenues, which unrealistically reflect today's financial conditions of cities and counties. As you are aware, the FY 1989/1990 and the first half of FY 1990/1991 has reflected a significant down -turn in public revenues combined with an increases in the cost of doing business. The horizon ap- pears to indicate that the State's adverse financial condi- tion could be shared by cities, counties and school dis- tricts through cuts in State funded programs, modifications >>�i'li �- i �n �s MG 1 co"Muory SVVEwf A"OCWEi PC i Mr. James Colangelo COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION January 8, 1991 Page 4 of subvention formulas, and reductions in funding levels. To assume a FY 1988/1989 base from which to project expendi- tures and revenues, and only acknowledge inflationary changes in the budgetary analysis of a community, is blindly viewing the future. The Report appears to disregard the financial changes in the local, State and national economy, reflecting a potentially unrealistic analysis. 5) The Report cites data and information used in reaching the conclusions in the Report based upon surveys of cities con- ducted by C&W and the League of California Cities. However, - the data and information is not contained in the Report or its appendices, and cannot be validated and substantiated in terms of the accuracy of the data or its acceptability and applicability to North Tustin. The Report further uses data and statistical documentation from the County of Riverside and the San Diego Joint Powers Insurance Authority which is applied to North Tustin, but no comparative analysis has been provided to substantiate the similarities of these areas with North Tustin and/or the conditions that will ex- ist upon incorporation. 6) Finally, it should be noted that throughout the Report, there are mathematical, grammatical, and typographical er- rors, inconsistencies and contradictions. Appendix A is missing, and there is no list of reference materials and in- dividuals other than those stated in Appendix C. It is also noted that although much of the information cited in the letters in Appendix C were provided as "estimates," no where in the text of the Report is it so stated, and the implica- tions of these estimates evaluated. These six (6) points are perfect examples of the incompleteness of the Report, and the inaccuracy of the conclusions. Certainly, I have my own opinions as to the viability of incor- poration, and an accurate, complete, and fully disclosing Report could substantiate or alter my opinions. It is, however, unfair and inappropriate to issue a Report with such blatant inac- curacies, incompleteness, or misrepresentations, to people in the community who do not have the technical capability to distinguish between a quality report and the report that has been presented. It is further unfair to ask them to make a decision on such a M1, 'J:MCW_� � Mr. James Colangelo COUNTY OF ORANGE LOCAL AGENCY FORMATION COMMISSION January 81 1991 Page 5 significant issue, when the only future sourceadditional revenue to meet short -falls will be the pocket books the citizens themselves. Even the Report concludes this. I would ask with all due respect, that the staff and commission ce of the with due diligence 1) be cautious in your acceptance Report; 2) maintain your role as an independent and objective evaluator of such a proposal; 3) seek from the proponents a Report that is complete, substantial, error free, comprehensive, objective and rational; and 4) if the Commission does not have the resources to perform an independent evaluation of he Report, obtain outside professional and technic assistance,, , R that this issue can be aired with the greatest amount of full, ac- curate, and complete disclosure. Thank you for your consideration and assistance in this matter. Sincerely, 7CO ITY SYSTE ASSOCIATES, INC. shall B. rupp President MBK: dl 3:45 cc: Mr. Doug Chapman Ms. Jill Leach Tustin News Mr. Don Rosen The Orange County Register 16 00 C i E O Z 6 +J Jc Lo Ln w LLIm 11.. <O O Q LLI LLJ ce LL, r� .O 0 ua a.W W J L O tw 1 L 41� a.. r .. C N> d o >s„ _u ° '�• _ o ��acc� o° 3 V: •ai v a zi •ti y r '$� v _y >,z, aci '3 19 >.5.i a 3^pp 0�'C o cc 0 dg y v a C •a O ti w V E y J p >' y" L§ 4 g 3 U.'_70. - >b .. y ooq�g't7o co j.E'fl 7 W V H z bo C a3L Coly b C•rW.y yEn Cl 4 vL u o� °' $ v �;. rs a�i E >_ v acv a� a c $; r o+ G h E �'.ti v o Lo. urs ;;� cc ;`" N '�>�: N� a w d� >i�. N r dcw=4) �cd dv�'o00reo3E, Nsd'tiy�u c°� o9 aEi°..o�peo�b'.>��i�M,,d�',�$� 3 aq N co cU «+ c L°. -� tcl.Up e d 3 y-:: •� O .G O y 67 W V O cu cc >b CL 'a �r F�+ p no o► s-E._u=co02 tic tori a� �, c .et S. ofi_ :� � a.- g� � e�' 3 " a 3V eo t..°e A S. a cB'E `' c c 3 3 E.o o� o� $.�'- 3 c eco': °." d nom. 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