BodyCity Council
MeetingRegular Meeting
Date📅 January 14, 2026

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0:00 – 0:1118 turns

Pledge of Allegianceceremonial · click to expand
UnidentifiedCity ClerkProposed · by roll call0:08

Call to order the special meeting of the San Paul City Council this Wednesday January 14th, 2026. If you'd all please stand let's do the flag salute. Council Member Chavez would you lead us in the flag

UnidentifiedUnidentified speaker 1Proposed0:19

salute? Sure if you stand put your right hand over your heart ready begin

I pledge allegiance to the flag

UnidentifiedCity ClerkProposed · by roll call0:26

of the United States of America and to the Republic for which it stands one nation under God indivisible with liberty and justice for all

UnidentifiedCity ClerkProposed · by roll call0:36

thank you Madam Clerk, would you please do a roll call?

Roll call — called by Unidentified speaker 3
Show transcript
Council Member Chavez. Present. Council Member Ornelas. Present. Vice Mayor Crosswhite. Present. Mayor Juarez. Present And Council Member Cornejo is absent
UnidentifiedUnidentified speaker 2Proposed0:55

this evening.

UnidentifiedCity ClerkProposed · by roll call0:56

Thank you. Do we have any public comment?

UnidentifiedUnidentified speaker 2Proposed0:59

I've received no public comment cards, if anyone wants to make a public comment.

UnidentifiedCity ClerkProposed · by roll call1:04

Thank you. I believe our city manager would like to make a public comment or a public presentation.

UnidentifiedUnidentified speaker 3Proposed1:08

I would. I didn't submit a speaker card but if you'll allow me we have a new face in the audience and it's my pleasure to introduce to the council and to the public our new deputy city manager Dr. Amina Mears who is in the back there. Miss Mears comes to us from the Inland Empire area where she has done, well really her whole career has been in the public sector. Most recently with the city of Corona doing a lot of work in emergency preparedness and in the city manager's office so we're really pleased to have her, have her skill set, have her energy And enthusiasm and ideas. So you'll get to hear from and see her quite a lot.

UnidentifiedCity ClerkProposed · by roll call1:59

Thank you. Well, she doesn't fill out a speaker card but we'd be honored have you at least give us a few words please. Thank you.

UnidentifiedUnidentified speaker 4Proposed2:17

Mayor Council members very happy to be here I always Well, I've been telling people that the City of Santa Paula when they ask me what it's like. It's really like my city, my home city of Fontana. I call it a small city but with big charm and big aspirations and big hope so I'm very very happy to be here very excited to serve and very grateful to Mr. Dan Singer for you know seeing the light in me and allowing me to join the team here so thank you.

UnidentifiedCity ClerkProposed · by roll call2:51

Comments? Oh, well welcome from the council.

UnidentifiedUnidentified speaker 5Proposed2:57

Mr. Mayor, close session report. Thank you. This evening Council recess in a closed session up for item 5 a on the special agenda for 4.30 special meeting conference real property negotiators pursuant to government code 5, 4, 9, 5, 6, 0.8 property James Mason, Community Economic Development Director. Negotiating party was Xavier Magnin under negotiation or price in terms of payment that there are no reportable actions taken and that concludes my report.

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UnidentifiedCity ClerkProposed · by roll call3:38

Thank you Ms. Castillo. I will go to item number four public hearing. Madam Clerk do we need verification of posting by the City Clerk?

UnidentifiedUnidentified speaker 2Proposed3:47

Yes Mayor.

UnidentifiedCity ClerkProposed · by roll call3:48

Declaration of conflicts if any?

UnidentifiedUnidentified speaker 1Proposed3:51

Mr. Mayor, due to an abundance of caution I'm recusing myself from item 4A amendment to number four the development agreement although there is no legal reason for recusal my decision falls on the ethical standards and practices as I was not involved in initial development agreement due to stake of ownership and don't want to create any public confusion that would question my integrity.

UnidentifiedUnidentified speaker 5Proposed4:12

To avoid an apparent conflict of interest.

UnidentifiedCity ClerkProposed · by roll call4:15

Well thank you Councilmember Chavez for your recusal A declaration of ex parte contacts, if any. We're going to open the public hearing. Staff presentation. This will be with Monica.

UnidentifiedUnidentified speaker 5Proposed4:37

That'll be me Mr. Mayor. Can I have the PowerPoint? Thank you council members of the audience. The item tonight is amendment number four to development agreement. This is some of you will be familiar with this, your present here for the last amendment. Good morning. Good evening, everyone. The recommendation recommendation tonight is to introduce and waive first reading of ordinance number 13 5 one entitled an ordinance finding that approving amendment number 4 to the development agreement will not result in new significant impacts or increased severity of impacts addressed in a previously adopted So just a little bit of a primer treated last time the development agreement is negotiated century contract between local government and The city is committed to providing public services under agreed upon land use regulations for a defined period and then an exchange developers commitment.

Well, developer will commit provide public benefits mitigation measures infrastructure improvements This is a benefit to both sides because it creates certainty and predictability for the developer while ensuring the city receives long-term public improvements aligned with its objectives. So I'm going to go through this. I kind of organize this in terms of the major material terms and the development agreement amendment.

One of those, there is a section in the amendment that references the second item on your agenda today which will be amendments to the community facilities district number one So what happens is there's a the scope usually called a mellow roost fee you'll see it on your County property collection, tax collectors notice. It's a special tax on harvest parcels for to fund public facilities and services.

These are taxes that are then used to reimburse The developer, this case LLCB for their construction of public facilities. Public facilities and services are only those that are made necessary because of the development. The harvest consists of improvement areas A through C Tonight's item. It will only affect improvement area. A will not it will not affect We're going to be looking at sections area see an area B. Those are the only portions of harvest that will be affected by the CFD amendments.

An improvement Improvement area B is known as a foothill neighborhood. That's the area that Lennar is developing. Improvement Area C is known as Santa Paula Creek, that is up for development in the future and currently owned by Lemon Air Lewis. So under this proposed amendment I'm going to give just the very basics and then I'll have our CFD council I'm going to talk a little bit more about that and then get into more of the details. So generally speaking, once the city.

Once the amendment is approved, the city's going to receive $250,000 plus 4% annually starting fiscal year 2029 until what is known as the transition period or Then what will happen is. After that transition period, which is defined as the earlier of fiscal year 67 in the fiscal year 6768 or when bonds are fully repaid for each At least around annually $750,000 in the early years and up to an annual 10 million in the later years. And this is all subject to market factors.

If there's anything Mr. Fama who was on the Zoom call might want to add or explain further about how the CFD amendment might work Here's your opportunity to explain those details to the council.

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UnidentifiedUnidentified speaker 6Proposed10:34

Yeah, thank you. Yes, yes, great. So Monica, you did a great job of explaining on a high level what the amendments would involve. There's procedural steps that need to go through that relate to the next resolution up for consideration. I've met these also on Mike does what we call the rating method of apportionment Which would reflect some of these changes that were mentioned.

So at this point in time, I don't have anything to add but certainly can answer questions when we get to the next item and bring out more detail.

0:11 – 0:2610 turns

UnidentifiedUnidentified speaker 5Proposed11:21

Yes. Our finance director would like to speak.

UnidentifiedCity ManagerProposed · by role11:25

So, so like Dave said the next staff report is really our time to shine, but that really is dependent on this staff report if this staff report gets approved then so with the next one as an introduction The process right Dave, I'm not mistaken in that. Correct? So we really thought that it was important to have this conversation right now and we'll get a little bit further into it when you see the chart of estimated surpluses but I do want to highlight The partnership that the developer and the city have really worked on towards this, because originally this was $250,000 for the first five years.

And that alone would not have... You know me personally I'm a numbers person so I was thinking the two million dollars which it wasn't a guarantee but the two million dollars in revenue surplus deposits I'm much more comfortable now that the 250 is for the rest of the term. And we'll talk more about it in the future, but I did want to note that early on this conversation.

UnidentifiedUnidentified speaker 6Proposed12:30

Yeah, and I framed the conversation in that we're talking about surpluses for the public and for the council to review. So there's special tax which is led by the city for the CFPB. As was mentioned, you pay for facilities and services And on the facility side, the special tax is a certain amount and it is a maximum amount that can't be levied. That's expressed in the waivement that might get drafted way back when we formed the district.

So the difference between the maximum that we're getting in money and the amount that's actually needed to pay for debt service on a bond, you know, plus administrative costs. There's always going to be some excess. Mass versus debt service and admin. That's what we're talking about tonight. When you hear the word surpluses, that's what we're talking about. The money that could be left over from the money annually after debt service and administration is paid.

UnidentifiedUnidentified speaker 7Proposed13:36

The way that I see this change is that in the initial years during the bond term, It's a lot of money, but I would say that in most modern CFDs it would not be considered sufficient to fully cover a home's service burden. After the bonds are paid down, when the tax fee is increased to take over some of the room that the tax they used to occupy. I think the best way to think about it is even though every dollar of that is going to be spent on services in a way It's kind of making up for the time during which the services tax was a bit lower So really to me this deal is great for the city because Overall and over the long term, these homes will be paying their own way in terms of city services. They're not going to put a burden on the city budget in the long term.

And this just happens to be a solution that uses two phases. The initial phase when the bonds are being repaid and then subsequent phase when the services are the predominant thing that is funded with the special taxes.

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UnidentifiedUnidentified speaker 6Proposed15:11

Thanks Mike. And just to explain the heart of the change, so on the facility side you have this surplus and what's being proposed is that 50% of that surplus after the transition that was mentioned earlier when Baja paid off, 50% of that surplus on the facility side that's generated And go to the city for services, and we can get into the mechanism of how that happens. But that's the effect of what's kind of before you tonight.

So back to you.

UnidentifiedCity ManagerProposed · by role15:51

I hope so too we will talk shortly about longer term revenue or not revenue, but longer-term fiscal impacts and short-term fiscal impacts in the power from presentation, but for now Monica, I think we've taken all your time

UnidentifiedUnidentified speaker 5Proposed16:04

great. Thank you. A little clicker error here Any questions while we have the slides return? Oh, here we go. Yes The next major material term. Terms I should say relate City would be required to maintain the park at a first class level. In order to ensure that the city with our parks and recs director, and Lemonaire Lewis negotiated a sports park maintenance program And that is included. As one of your handouts that was I apologize, was not attached as an exhibit to your agreement. But you will have that in front of you at the dais.

So that explains in detail what Lemona Lewis and Lenar will be contributing a general plan maintenance fee credit. They'll be given credit, and those funds will go towards sports park construction maintenance. Another term affecting sports Park is the water rights accounting. So at the conclusion acceptance of the sports Park, which conclude that these 2 then the developer will perform an The park is not a reclaimed area.

And then I wanted to point out that the planning Commission made a recommendation to council to what was originally. Performing the accounting 2 years after sports Park acceptance And then we'll have a. Assessment of the water usage there. Another relates to public improvement reimbursement agreements. Once this agreement is We will begin negotiations to enter agreements that will reimburse.

LLC be the costs that it incurred in building certain public improvements that exceeded its fair share and specifically those include the bridge Howie and telegraph intersection. In addition, as part of those development agreements. It will consider a credit And then. Another term of this amendment would help facilitate an existing obligation in RDA that East Area 1 approvals are on a fast track procedure. So the party's spent a good amount of time negotiating these timelines to process permits and plan checks, so you can take a closer look at that document if you have any questions for staff.

The next term have relates to traffic circulation. We decided in our negotiations that it would help facilitate city control given all the intersecting citywide improvements that are happening That's also we're also taking over the completion of high road. In 10th Street in Santa Santa Paula streets, 3 way The city council has stated. To these improvements that they would be excusable delays.

And The city of Sioux Falls does not have a building permit. However, we would be able to hold off on release of building permits if it created serious traffic impacts or there is an We have a motion to approve. An agreement that L C B would take care of any sort of. Some other terms are that the city will agree to once the Easter one project is fully complete.

The city will agree to take ownership of land on which public storm chains are currently present and however, we would not be There's also a term that the parties would discuss. The idea of the city acquiring the linear Park and see conceptually this could include for purposes And then there's also a discussion that the parties would engage in to consider small retail at the sports park.

So. Terms of fiscal impacts. This is a positive net gain to the city. The CFD changes will provide millions in perpetual long-term revenue and LLC LLC be is agreeing to pay some certain significant short term Then we have some reimbursements as a as I discussed earlier for oversized infrastructure that will not come from city general fund. That will come from deaths from other developments and other sources.

And those I list up there the Also the city. Although cities completing the 2 streets I mentioned earlier, we still offset by a fair share from LLC and it will also be funded with others other development contributions. We also are receiving general plan And then we do. We will be returning a 2 million dollar deposit to Lewis after the 100,000th certificate of occupancy.

So all in all there is a measurable net gain to the city and will probably be long gone when And this is a good segue to go into the next item, but we'll pause here for questions.

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UnidentifiedUnidentified speaker 8Proposed25:40

Any questions from council? Question when you say next item...

UnidentifiedUnidentified speaker 5Proposed25:44

On the agenda.

UnidentifiedUnidentified speaker 8Proposed25:45

Okay So we should ask questions on the development agreement amendment at this time All right, so I talked with Monica earlier about potentially just clarifying even though you really can't have one item without the other making sure that the language was explicit. That when we approve the first if we approve The first item on the agenda that it would be approved. But it would not take effect unless the amendments to the CFP were also approved, which is the second item on the agenda just so that it's clear that those 2 things come as a package.

So anyway, I just wanted to throw that out there. There's anything else Monica

0:26 – 0:3216 turns

UnidentifiedUnidentified speaker 5Proposed26:40

And then we'll be returning to Council on and that's why because that next item is just the first step. That's

UnidentifiedCity ManagerProposed · by role26:45

why I just want to make sure

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UnidentifiedUnidentified speaker 8Proposed27:09

That would be one thing. But because we have to put out a notice of intent and then that has habits own hearing and vote in all of that, I just want to make sure that it's clear that any action we take on the amendment tonight would

UnidentifiedUnidentified speaker 5Proposed27:30

In effect, the change would be adding a new section that says the DA will not be affected unless the CFD amendment and RMA changes are approved.

UnidentifiedCity ClerkProposed · by roll call27:44

Mr. Singer you had a question?

UnidentifiedUnidentified speaker 3Proposed27:45

Yeah it's just more a comment for our city attorney and finance director that council member Chavez is planning to participate in the second item tonight so to the extent we're getting into too much detail on the CFD It may be appropriate to have him in the room. So just please keep that in mind.

UnidentifiedUnidentified speaker 5Proposed28:07

Understood. Yeah, so we'll rehash the CFD amendment changes on the next item for Council Member Chavez.

UnidentifiedCity ClerkProposed · by roll call28:17

And real quick question. So it appears that as Vice Mayor Crosswhite said, that Item 5A might be important to pass before this amendment

UnidentifiedUnidentified speaker 8Proposed28:30

That's not what I'm saying. No, I'm saying that we would make a decision on one way or the other on the first item but then it wouldn't go into effect until after the second is finalized. Just to make it clear that it won't go into effect until that second item is finalized because that will take more than tonight.

UnidentifiedCity ClerkProposed · by roll call28:52

Okay, understood thank you so does this mean we should switch topics to let Councilmember

UnidentifiedUnidentified speaker 5Proposed28:59

Chavis? We're still on the development agreement item. And I'm

UnidentifiedUnidentified speaker 8Proposed29:04

not done asking questions on the development agreement. Very good, thank

UnidentifiedCity ManagerProposed · by role29:06

you. May I ask Mr. Fama can you confirm if that is fine? I thought it was my understanding that if the DA gets amendment gets approved and understand that it's dependent on the second item but then we're kind of doing a circle 22 reasoning because I thought the second item had to be approved Dave, are you on

UnidentifiedUnidentified speaker 6Proposed29:34

there? There we go. Sorry I had to unmute. Yeah, I was having a thought and I'll explain but I was having a thought at the comment and that is that if the amendment to the DA gets approved tonight it doesn't necessarily mean that the city's going to sign it tomorrow so the signing could take place after the amendment to the CFD So that's something that's kind of a little safeguard too. It's up to Monica whether or not, you know, that's something she might want to depend on or just want to write something into the agreement. But Christy back to your comment.

Yeah, the CFP amendment is a two-step process and so you wouldn't really kick off the first step which is the second action item tonight Unless the amendment got approved, and that means that could be signed. But it doesn't necessarily mean, or at least in my mind, and doesn't require that it be signed after the meeting tomorrow. In other words, it would be up for approval. If and when the CFPB is formalized to see if you change the formalized in February.

So anyway, that's kind of where I was coming from on approving versus executing is built in safeguards.

UnidentifiedUnidentified speaker 5Proposed31:02

And since this is an ordinance, it wouldn't be effective until 30 days after the next meeting that this is heard. The odds that the agreement won't

UnidentifiedUnidentified speaker 8Proposed31:31

I just wanted it to be clear that they are connected, right? So that somehow we didn't make a decision on the first item and then something weird happens and we get to the February meeting. And suddenly that goes sideways like both things. I just want it to be clear that both things have to go together but that's how this package is So anyway, we can figure out practically how that functions. But I just wanted to be clear that they both go together especially since we're going to have different people acting on different things it sounds like so.

So to go to the actual agreement again, I think because it's in there that means that we've agreed to it but I just need to publicly ask probably Mr. Singer since none of your other staff is here We are comfortable that we can meet some of these things like the park maintenance program and the expedited permitting.

0:32 – 0:3816 turns

UnidentifiedUnidentified speaker 3Proposed32:40

Mr. Mayor, members of the Council, Vice-Mayor thank you for the question in both cases these were negotiated not only with LLCB but vetted with our departments in fact the Park Maintenance Schedule was developed internally and has been run by our partners here, but so they're fully on board. And in the case of the expedited permitting we Mr. Mason and I have sat down with Will Dan We've sat down with m6 We've sat down with M&S and They're all very agreeable to those terms

UnidentifiedUnidentified speaker 8Proposed33:24

And do we what are we going to The

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UnidentifiedUnidentified speaker 3Proposed33:36

new software will be really effective for new permits coming in. Once it's up and running, especially for your smaller projects. And I say that because oftentimes companies that aren't large enough to have a whole development team often don't know how to navigate effectively through the planning and permitting You know, building inspection process and that software will be a tool for our staff and for our applicants.

I think it'll be helpful to our larger developers but you know they're already pretty on top of their game.

UnidentifiedUnidentified speaker 8Proposed34:17

And then in terms of the reclaimed water provision, I think that the presentation tonight clarified some other questions I had about the water provisions but on the reclaimed water portion I'm going to ask you about phase 2. Because it was talking about how at the end of after the park phase 2 will first of all, can we just clarify are there 2 or 3 phases to the park?

So we're we've now been able to condense it down to 2 because at one point it looked like they were going to be 3.

UnidentifiedUnidentified speaker 3Proposed34:43

Well, it's kind of a 1, A and B and then a phase 2 okay. And so

UnidentifiedUnidentified speaker 8Proposed34:58

When that reconciling happens. Is the reclaimed water is it if that happens within those 5 years or if in 30 years recycled water is implemented, then at

UnidentifiedUnidentified speaker 5Proposed35:20

So the accounting would occur 5 years after acceptance. The reclaimed water use, if that occurs before the five years then it'd be factored in but I don't think we've considered afterwards after the five-year accounting.

UnidentifiedUnidentified speaker 3Proposed35:44

Yeah, I don't remember that being discussed. But I will tell you we don't have what's called purple pipe reclaimed water going from our wastewater treatment plant which would be the most likely source of that reclaimed water anywhere near to the east end of town. It would be an expensive infrastructure project it would take probably years to develop and There are other potential uses downstream.

So I honestly, I don't see it being a reality anytime in the near term.

UnidentifiedUnidentified speaker 8Proposed36:16

But I'm just saying since there is a purple pipe in the new development if that ever connected am I to understand that the trigger would be that it was finally connected?

UnidentifiedUnidentified speaker 3Proposed36:27

It would seem appropriate to me.

UnidentifiedUnidentified speaker 8Proposed36:28

That's a reading

UnidentifiedUnidentified speaker 3Proposed36:29

of this.

UnidentifiedUnidentified speaker 8Proposed36:29

I'm seeing nodding in the audience that that was their intention.

UnidentifiedUnidentified speaker 3Proposed36:33

Yeah, I think if at some time in the future were to be able to rely on reclaimed water then there would be a credit at that time. Okay. That seems reasonable. All

UnidentifiedUnidentified speaker 8Proposed36:45

right. I just wanted to understand that that was what how you all And then the process for determining. So And can someone speak to sort of what that process of that negotiation because I had lots of questions, but I won't try to figure them out if we're going to be having a future conversation about

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UnidentifiedUnidentified speaker 5Proposed37:38

Once there. The developer has oversized its construction of certain facilities and so they've in other words, they have built an incurred construction costs more than their fair share To that public infrastructure that they've already completed. So once that is completed, then we will determine in the reimbursement agreement how much the city is to pay them based on what other And that's all going to be. Explained and calculated in a reimbursement agreement

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0:38 – 0:4415 turns

UnidentifiedUnidentified speaker 8Proposed38:59

Understanding of how all of those pieces fit together and what developments would have to provide what towards which pieces of those various intersections. And

UnidentifiedUnidentified speaker 5Proposed39:10

yes,

UnidentifiedUnidentified speaker 8Proposed39:11

infrastructure amenities would all be conceived of in this other agreement that will have to be worked through

UnidentifiedUnidentified speaker 5Proposed39:22

Yes, and it will probably take some time to work with consultants who do nexus studies and impact studies to help us work out what that fair share cost will be.

UnidentifiedUnidentified speaker 8Proposed39:36

And make sure that those other costs aren't paying for something that's already been covered by a CFD reimbursement and how that all comes out in the wash?

UnidentifiedUnidentified speaker 5Proposed39:49

There will be multiple sources of reimbursement considered.

UnidentifiedUnidentified speaker 8Proposed39:53

Oh, boy. All right. Well that's going to be fun. You're going to have your work cut out for you. Let's see. So then when it comes to the Santa Paula Creek, or sorry, Santa Paula Street from 11th to the bridge is it The idea then that we will try to do some of her D I don't know if anyone here knows is our thought to hopefully try to do part of that as when we do that section of the next 5 year cycle of the payment management program.

Is that the hope so that when they were working in that area? Thinking that that'll be sometime in the future.

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UnidentifiedUnidentified speaker 3Proposed40:48

So, Vice Mayor and members of the council, the improvements to that corridor would really take place after such time as the Crosstown Pipeline is installed. And it's the primary reason we didn't think it made sense to ask the developers to repave that street and do improvements only to have us go in and tear it up and have to then repave it. So I don't know if it will happen in the cycle of the PMP.

It'll be an appropriate question to ask in February when Mr. Woodward comes back with that final plan. I think it would be more appropriate to say, it will occur after such time as the pipeline is completed. So that could be in just a few years or it could be a little farther out. I would hope it's within the next five years for sure

UnidentifiedUnidentified speaker 8Proposed41:48

Are there some, would we have the ability to break up some of those improvements? Part of my concern is if the bridge gets finished and there's no sidewalks and you're coming off the bridge to walking on the street. So I'm just wondering even if you couldn't pave certain parts, if there are at least some of those improvements that, I mean that was why they were conceived of that they would be done I guess I would I would hope that even if staff said well, we can't quite get to the paving part yet that we could at least do some of those.

Improvements sooner rather

UnidentifiedUnidentified speaker 3Proposed42:34

than this will all be appropriate

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UnidentifiedUnidentified speaker 8Proposed42:46

I just want to ask a question. Caltrans has just done a ton of work in that area. Do we have an understanding of what or is there anyone here that has understanding of when the staff report talks about. Potential one reconfiguring and widening. And if that intersection, all is imagined that needs to go there?

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UnidentifiedUnidentified speaker 3Proposed43:20

I'm going to have to call on Mr. Lolletta because I don't know the details of how that widening is supposed to occur or what's supposed to occur there.

UnidentifiedUnidentified speaker 9Proposed43:31

Good afternoon, Mayor and Council. Is this on? Okay. We did have a traffic analysis done recently based on the Caltrans project And we saw very minimal work needed to be done after they were finished. So, we don't anticipate any widening or any significant improvements to it.

UnidentifiedUnidentified speaker 8Proposed43:53

Okay because it was one of those intersections that it was always like oh well y'all are going to do it so I don't have to worry about it and then now it's like wait a second now we're going to have to be responsible. I want to have a sense of like is the timing just really off here with all those Caltrans improvements? Is it so? I'm just trying to understand that.

And then the storm drains, if we own them and the HOA is maintaining them does that mean they'll need to be some sort of a separate agreement also with the HOA in order to work out what that maintenance looks like and any kind of liability so long as the HOA is maintaining them?

UnidentifiedUnidentified speaker 5Proposed44:40

Yes, there's going to be a separate. Agreements to work out that relationship and responsibilities each way.

0:44 – 0:5019 turns

UnidentifiedUnidentified speaker 8Proposed44:51

And then just one last question miss Ramirez so the 2 million dollar. Oh gosh, what was that thing called Sir

UnidentifiedCity ManagerProposed · by role45:03

revenue

UnidentifiedUnidentified speaker 8Proposed45:10

Because I know there was a loan towards the park thing that happened with that.

UnidentifiedCity ManagerProposed · by role45:16

Yes, and that's why the key language of due at the thousandth certificate of occupancy is so key because then we'll have a payment due from Lewis as well and then that will true up the loan that was made. And it's not just $2 million, right? It's $2 million plus interest, I'm sure.

UnidentifiedUnidentified speaker 8Proposed45:33

Right.

UnidentifiedCity ManagerProposed · by role45:34

Very eager for me to say that out loud but yes, we'll have that.

UnidentifiedUnidentified speaker 8Proposed45:38

I just wanted to make sure that that wasn't somehow we were going to get to the end of the thousandth house and go, okay. Thank you.

UnidentifiedCity ClerkProposed · by roll call45:52

I just have one follow up and that's having to do with the reclaimed water. I mean it's interesting concept that could happen and I'm here in five years or whatever but that brought up a good point about the crosstown pipeline And that is, if we're going to spend that much time to put that in, is that also the concept to do the purple piping for the reclaimed?

UnidentifiedUnidentified speaker 3Proposed46:11

I don't believe that's anticipated as part of the Crosstown pipeline. They have to be separate pipes for obvious reasons. We are in discussions with two entities that are very interested in our reclaimed water. They're downstream downstream and north of the wastewater treatment plant, and it would be a lot more cost effective to you know look to allow our water to be used there instead of trying to pipe it back to the east side of town.

Because it would have to be pressurized lines, and it just would get very expensive.

UnidentifiedCity ClerkProposed · by roll call46:52

And also, as Vice Mayor Cross always saying, we've seen all this improvement with all the crosswalks and the handicap ramps. And yeah, when I saw the report where it said widening, I thought there's good money after bad, right? But now it looks like they're going to be satisfied that that's the widening of it. But anyway, it also brings up the concept that we are going to get funding for the bike path, which is going to mean improvements on Santa Paula Street. So again, if we're going to be doing all that work, let's not do that before we anticipate what's going to happen with a bike path. I guess everybody's got to be talking to each other. And I know at one point we did replace or repair Virginia Terrace, knowing that eventually we'd have to do infrastructure.

But this is a little bit different. The street isn't that bad that we can hopefully anticipate repairs before improvements.

UnidentifiedUnidentified speaker 3Proposed47:39

There's a lot at play including potential private development on the south side of the road. The bike and pedestrian improvements that we're looking to make, and I anticipate those final designs coming to the council as soon as March or April. And so it's really for those reasons that we felt Not that we were looking to take on another capital improvement project, but that we felt like we wanted to make sure that corridor is done right.

Any more questions?

UnidentifiedCity ClerkProposed · by roll call48:17

Do you have a more staff presentation?

UnidentifiedUnidentified speaker 5Proposed48:21

No Mr. Mayor.

UnidentifiedCity ClerkProposed · by roll call48:22

Okay so that's it. Do we have any public comment?

UnidentifiedUnidentified speaker 2Proposed48:27

The mayor received no public comment cards

UnidentifiedCity ClerkProposed · by roll call48:31

And at this point we'll go ahead and close the public hearing, and I will move on to discussion in action.

UnidentifiedUnidentified speaker 8Proposed48:43

I don't think I have any further discussion So my only question...my only question...I don't know if there's other...do you have further? If no one else has further discussion, my only question would be to City Attorney so if I read The introduction of the ordinance and then just said at the end, something to the effect of that would not become finally effective unless the CMT amendments are approved. Would that satisfy or is there something else that you would?

UnidentifiedUnidentified speaker 5Proposed49:18

Thank you, vice mayor. I would suggest adding a new section 13 to the development agreement amendment number 4 that says this 4th amendment will not go into effect unless the

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UnidentifiedUnidentified speaker 8Proposed49:43

All right. So the section 13. Yes, I said if I read this and said with the addition of Section 13 as read by city attorney. Yes. Okay. With that, Mary, you're ready for motion ready? I'm here today to make a motion that approving amendment number 4 to the development agreement will not result in new significant impacts or increase the severity of significant impacts addressed in the previous adopted addendum. Number 6 to the final East Area, one environmental impact report E I R and addendum number 4 to the East Area. One specific plan supplemental E I are and approving

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0:50 – 1:0212 turns

UnidentifiedCity ClerkProposed · by roll call50:36

So it's been moved by Vice Mayor Crosswhite about Amendment No. 4 to the Development Agreement and Harvest. Is there a second?

UnidentifiedUnidentified speaker 6Proposed50:43

I'll second.

UnidentifiedCity ClerkProposed · by roll call50:44

It's moved and seconded, and seconded by Council Member Nellis. Any further discussion? All right with that since there is only three of us let's do a roll call vote please.

Roll-call vote Passed 3–0 Moved by Jenny Crosswhite moved and seconded, and seconded by Council Member Nellis. Any further discussion? All right with that since there is only three of us let's · 3 under review
Show transcript
Council Member Nellis? Yes. Vice Mayor Crosswhite? And Mayor Juarez? Yes.
UnidentifiedUnidentified speaker 2Proposed51:06

And that is passes with 3-0. All

UnidentifiedCity ClerkProposed · by roll call51:13

right, we're done with item 4A and can we get Council Member Chavez? Okay thank you. Thank you Councilmember Chavez for your patience. We're going to

move on to item number 5A, Resolution of Consideration of Changes Improvement Areas B and C of Harvest CFD Number 1. And this will be by... Did

UnidentifiedUnidentified speaker 3Proposed51:47

you

UnidentifiedCity ClerkProposed · by roll call51:50

mean 5A or 5B? Five

UnidentifiedUnidentified speaker 3Proposed51:52

A. My mistake. Yes, so Ms. Ramirez will walk you through some of that along with our consultants who are online.

UnidentifiedCity ManagerProposed · by role52:08

Good evening Mayor and Council. So in accordance with the discussion that occurred with the development agreement to Refresh that in relation to the current staff report. During the discussions with a developer, there was an interest to amend the rate and method for improvement to areas Area B and C primarily to allow the portion of the facilities component of the special tax in those improvement areas and not Area A to be used to contribute to the cost of certain city services including maintenance of the sports park This staff report kicks off the legal process for the changes to those, the changes to the rate and method for improvement.

Earlier you saw anticipated surplus from The areas B and C that would partially be attributable to the city. Definitively $250,000 per year starting in fiscal year 28-29 through the end of the term after bonds are made payable that would then change to 50% of the surplus. I don't want to butcher the rest so I am going to kick it off to Dave Fama Thank you, Chris. And I'll just give you a brief on the process

UnidentifiedUnidentified speaker 6Proposed53:33

here and what we're trying to accomplish. CFD changes, which is section 6.3.4. I believe it's on page 23 of your packet. The bottom is where it begins. Anyway, in order to implement that particular provision, changes need to be made to the CFD in terms of the flow of funds from the special tax and the levy of the special tax So I addressed before the fact that there is a surplus, which is the difference between the maximum and the debt service. The discussions on changes initially went in the direction of the city sharing in that surplus and through the negotiation process what we've ended up with here is the city would not really need to share in the surplus because I'm going to talk a little bit about the bond payment. The total maximum tax for Would transition to a services tax at the rate of 50% of the maximum at the time of transition.

And it's important to note, and Mike can address this that there also is an escalation factor. So the scenario would be bonds pay off. We stop levying for facilities. We levy 50% of what used to be the facility's levy for services. In order to accomplish that, you have to amend the CFD proceedings that were undertaken back in 2017 I believe it was when we formed the district.

And there's a formal process for that under the government code and it involves this two-step process that we're going through. Step number one is that the council declares to the public basically that they are considering a change. That's the resolution of consideration for tonight And they set a public hearing date. And so the resolution of consideration explains what the changes are. The RMAs that Mike drafted in their amended form are attached to the resolution, and the list of facilities and services needs a slight change to allow services related to the sports park So what you're doing is you're doing what we call a change proceeding. You're considering the changes, the changes are revising the RMA for Area B and Area C and revising the list of facilities and services to allow maintenance of this sports park So that's what's embedded in the resolution.

And if you pass that tonight, which as Christy mentioned kind of goes hand in hand with the DA amendment in order to accomplish the provision of the amendment on the CFD, you need to go through these steps in order to make that effective. So, passing the resolution tonight sets a public hearing for February 18th. At that point in time there's a vote by the landowners and I believe that it's obviously the Miminero group and Lenar I think owns something already or if they do at the time of the February 18th action they would be a voter Those two voters have to unanimously vote in favor of the changes.

And with that, the council would be able to proceed to pass a resolution on the 18th that officially adopts the changes and adopts the new RMAs. So that's kind of a recap of where we're at and where we're going. And Mike you want to just speak briefly on the change you made to the RMAs for each of those area B&Ts?

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UnidentifiedUnidentified speaker 7Proposed57:48

Sure. Yes, I will. You know, the fortunate thing here is that we are making changes to the arm as they were already approved a while ago. They certainly you know, for primary AIDS it's worked well. I would say this deal is really a great deal for the city like Dave mentioned. It's not so much a share of the surplus funds that we've used to help pay for facilities, it's a share of the special tax A amount. The facility's amount after it's no longer needed.

We created a revenue stream equal to about half of that. And one of the things that we've done to keep the services tax in line with the other services taxes in the city, and most services taxes in California is to make it the same way for every home in the development. So you'll notice in the RMA that while the tax aid does go up with square footage, the special tax B replaces it.

for each home, at least on a per improvement area basis. It is once the tax fee takes over it will increase at the same rate that inflation does with the CPI factor. So after that transition year you're going to have a revenue stream in perpetuity A very good amount to help care for all the amenities of this development, and that increases also with inflation.

This is starting to become a more common thing in California now, but I would say it is a very good deal for any development and ensures that the residents who benefit from the amenities are paying their own way. Not putting a burden on the city's general fund when it becomes more common for that type of thing to become a burden later on in the development when things start to break and things start to need replacing So it's a great deal in that respect. The other thing you'll see a lot of in the RMA when it comes to changes is the concept of prepayment, so our concept here again in keeping with other CFPs that work in this way is that we wanted to avoid the prospect of a future homeowner prepaying the special tax A and then perhaps selling the house only Have somebody buy the house with a, you know, no mellow ruse.

And then all of a sudden the tax deed pops up out of nowhere during the transition here. So what we've done is limit the prepayment to equal... They can only prepay the share that would set them at the level of the tax deed that's going to be levied. And again because the tax deed is the same across every tax class, the prepaid share does differ by tax class Usually, the smaller homes have a smaller prepayment percentage because their flat tax fee after the transition year is greater percentage of their tax aid before the transition year. And the larger homes have more ability to prepay because as a percentage of the tax aid before the transition, their tax fee is lower.

I should mention that even though we have included this provision to avoid any hassle when the transition year comes along, to avoid any complaints of taxes going up and down wildly. Prepayment is not a very common thing. It's kind of a... it's certainly in each market some people want to be able to prepay their taxes just not to have to worry about them but it's a pretty small percentage One of the things about being a special tax consultant is we do sweat the details and we try to make sure that we prepare the army in a way that's going to minimize the hassle for the city, minimize the hassle for the administrator. But you know this should, the prepayment provision should be seen as just a way of dotting the I's and crossing the T's to make sure that everything is going to go smoothly.

It shouldn't have a great impact on the future residence of this CFPB. And I think that's, other than a few cleanup changes, that pretty much constitutes what the changes to the RMA were. So happy to answer any questions about the technical aspects.

1:02 – 1:0720 turns

UnidentifiedCity ClerkProposed · by roll call1:02:22

Questions?

UnidentifiedUnidentified speaker 1Proposed1:02:24

Go ahead Councilman Jones. Sorry, I have two questions just how does a developer benefit from these changes to the agreement

UnidentifiedCity ManagerProposed · by role1:02:38

I wouldn't say the developer benefits from the changes to this RMA, but they do benefit from the other changes that were part of the DA. That was heard earlier.

UnidentifiedUnidentified speaker 1Proposed1:02:53

And regarding public hearing if it goes to February 18th, what recourse? That's just informational, educational or is there a recourse or provision if there are disagreements from the public?

UnidentifiedUnidentified speaker 3Proposed1:03:07

It's important to keep in mind that the public that would have an interest in this would be the future homeowners. And right now they don't exist, and that's why both Lenore and Lewis-Limanera are the ones that will get to vote on this. So Mike you've had some experience with With some of these kind of community service districts, is there any examples of times when communities or neighborhoods have objected?

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UnidentifiedUnidentified speaker 7Proposed1:03:46

Most objections I hear are People coming to comment during public hearing worry that their own taxes are going to be affected by the CFD. Usually they're swiftly assured that the CFD only applies to the future residents of the area within the boundaries. That's, you know, other than the people who enjoy speaking on every item no matter what it is, those are the only

UnidentifiedUnidentified speaker 1Proposed1:04:15

comments

UnidentifiedUnidentified speaker 7Proposed1:04:16

I typically

UnidentifiedUnidentified speaker 1Proposed1:04:16

hear.

UnidentifiedUnidentified speaker 3Proposed1:04:18

We don't have too many of those.

UnidentifiedUnidentified speaker 1Proposed1:04:19

And then just a question regarding the section that says areas B and C to include maintenance of and lighting of parks, parkways, streets, roads and open space which would include the sports park. There's obviously parts of that have been underdeveloped so this in a sense would allow us to use these special funds from the local community to maintain all these facilities existing and future potential upgrades?

UnidentifiedUnidentified speaker 3Proposed1:04:49

Yes. Okay. Including public safety or matters that we couldn't even today anticipate, you know 20 years ago you wouldn't think there might be security cameras on every corner of an intersection right? Sure. So who knows what the future has in store but they basically become general fund monies You can imagine with 2,000 homes out there how we're going to afford to pay for additional law enforcement services or maybe there'll be an interest in developing a youth center there or gymnasium at the park. Any number of things that these funds could fund. The dog park right? The dog park will happen well before 2067 or 68 so... All right

UnidentifiedUnidentified speaker 1Proposed1:05:41

great thank you. Other questions?

UnidentifiedUnidentified speaker 8Proposed1:05:46

A clarification on the last statement you made. I would imagine in the beginning years, a lot of that money will go towards the sports park? Correct.

UnidentifiedUnidentified speaker 3Proposed1:06:00

So the 250,000 that will start in 2 years from now. And the increments of it will be used for the sports park and you know potentially some of the landscape median site

UnidentifiedUnidentified speaker 8Proposed1:06:12

predominantly they will be used for that purpose

UnidentifiedUnidentified speaker 9Proposed1:06:15

correct

UnidentifiedUnidentified speaker 8Proposed1:06:15

so then at the point that the transition event which I mean none of us are going to be sitting here then but won't at the point that maybe Gabby at the then do those expenses not have to be used exclusively for their portion of those services? Because originally when we were talking about this, my understanding was that it needed to be for that community's portion of police or parks and rec or other things. I'll

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UnidentifiedUnidentified speaker 3Proposed1:06:51

let Mr. Fama respond to that question.

UnidentifiedUnidentified speaker 6Proposed1:06:56

Yeah, when we form these districts, we keep it general and so the authorized services are basically encompass all these services throughout the city that are listed on the list of facilities and services that are authorized. So we don't virtually ever make it specific to a certain neighborhood or certain community, or even to all the homes within the CFD. Number one, you know, it's pretty hard for a city to segregate out services that go in one direction or the other geographically. And then to the new homes benefit from services provided to all parts of the city and all the parks and you know, all the facilities that the city has. So that's the theory behind it. But in your case here there isn't a limitation one way or the other.

It's up to the city to decide how they want to allocate the funds

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1:08 – 1:1313 turns

UnidentifiedUnidentified speaker 8Proposed1:08:06

I mean, all of those services do serve the new development. I was just trying to understand like if you had we're going to have to go through and be like, all right, they are. 15% of the community population. So it's It's a little bit of a logistical

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UnidentifiedUnidentified speaker 3Proposed1:08:54

It's fair to say that future decision makers will have the opportunity to decide how these funds are allocated for the betterment of the community with a focus on where they're being originated. I could envision once the harvest is built out, if a future council were to say we're going to use that $5 million we're now getting To just be used on the other side of town, there might be a revolt. And that would be kind of maybe irresponsible decision making but I think that's pretty unlikely.

UnidentifiedUnidentified speaker 8Proposed1:09:28

Well and given how little of their property tax we actually receive it's helpful because I remember even before that transition that changed our way our property taxes worked in town I was I remember we talked about the fact that development didn't outright pay for itself anymore. And so The changes that have been made since then, hopefully this will help future councils be able to have things not be so challenging.

UnidentifiedUnidentified speaker 3Proposed1:10:05

I'm going to go out on a limb and say it's not even just hopefully it'll help, it will help significantly. This is not a wealthy community and the opportunity to see a perpetual revenue source that is stable It's not subject to economic swings and contributes to the quality of life for all of our residents, is something that councils don't get to act on every day.

So it's a pretty big deal.

UnidentifiedCity ClerkProposed · by roll call1:10:34

Yeah. Anyone else? I just have kind of maybe it's a rhetorical question but is there any process in the future for those future homeowners decades from now to be able to challenge this, to reverse it or modify it?

UnidentifiedUnidentified speaker 3Proposed1:10:50

Dave, do you want to respond

UnidentifiedUnidentified speaker 6Proposed1:10:52

to that? Yeah sure. So it's a tax and so it's always subject to referendum and actually the law is unclear as to if there was a referendum whether the voters would be everybody in the city or everybody within the CFD There is no course case on that. We've done research on that because the question comes up once in a while and we're of the opinion, I guess I should say opinion because it's not official but it's our understanding based on our research that it would take a referendum passed by all the voters in the city All the voters in the city benefit from the services and that's kind of the theory behind it. We've never seen that happen, but it's a tax and all taxes are subject to

UnidentifiedCity ClerkProposed · by roll call1:11:41

referendum.

UnidentifiedUnidentified speaker 6Proposed1:11:45

And I might add while bonds are outstanding they can't do a referendum that would impair the payment of the bonds but we're talking about services once the bonds are paid off so yes that conceivably could happen.

UnidentifiedCity ClerkProposed · by roll call1:11:58

All right. Thank you much, Mr. Farmer. Any other questions? Well thank you very much for staff and finance and attorneys for everything. If there's nothing else I think we're ready for someone if they're inclined to make a motion.

Roll-call vote Moved by Jenny Crosswhite
Show transcript
All right, I can do that. I move that we adopt resolution number 7599 stating it's consideration... Thank you. So it's been moved by vice mayor Crossway. Is there a second? I'll second. Thank
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Any nays? Okay, it passes. Thank you very much for your presentation this evening and thank you for joining us virtually as well.

UnidentifiedUnidentified speaker 6Proposed1:13:12

We're going to

UnidentifiedCity ClerkProposed · by roll call1:13:13

move on to adjournment then.

1:13 – 1:132 turns

UnidentifiedUnidentified speaker 3Proposed1:13:20

I would just like to take a quick second to thank the members of the team that are here. This only came about because LLCB recognized that there was an opportunity to make Santa Paula better. This money doesn't go in their pocket, yes there's some concessions that makes it easier for them up front But this wasn't something on our radar screen and I just want to acknowledge them.

UnidentifiedCity ClerkProposed · by roll call1:13:48

So thank you very much for that consideration. All right, and with that we're going to go ahead and adjourn at 753.