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Home My WebLink AboutCC Minutes 2022-08-03 CITY COUNCIL MINUTES Cathedral City Special Meeting Wednesday, August 3, 2022 5:00 PM City Council Chambers 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 This meeting was conducted in person and via Zoom. • CALL TO ORDER The meeting was called to order at 5:00 PM by Mayor Ernesto Gutierrez. • PLEDGE OF ALLEGIANCE Councilmember Raymond Gregory led the Pledge of Allegiance. • INVOCATION (MOMENT OF REFLECTION) Councilmember Mark Carnevale offered a moment of reflection and moment of silence. • ROLL CALL Attendee Name Title Status Arrived Ernesto Gutierrez Mayor Present 5:00 PM Rita Lamb Mayor Pro Tem Present 5:00 PM Mark Carnevale Councilmember Present 5:00 PM Nancy Ross Councilmember Present 5:00 PM Raymond Gregory Councilmember Present 5:00 PM • AGENDA FINALIZATION Mayor Gutierrez requested that Staff provide the report for items 2A and 28 prior to the Public Hearing. Eric Vail, City Attorney, indicated that Staff can provide the presentation and take Public Comments on items 2A and 28, however, he recommends that consideration and/or adoption of the items be in the order listed on the Agenda. It was the consensus of the City Council to hear the Staff reports for items 2A and 28 prior to the Public Hearing. 1. PUBLIC HEARINGS A. Resolution of Formation of CFD 2022-1; Resolution Determining Necessity of Bonds for CFD 2022-1; Resolution Calling Special Election for CFD 2022-1; and Resolution Consolidating CFD Election with the Statewide General Election Recommendation: To approve four resolutions completing the required legal steps to form a Community Facilities District to provide parks and recreation services and facilities and authorize a special election to allow voters to decide the question: 1. Resolution of Formation of CFD 2022-1 2. Resolution Determining Necessity of Bonds for CFD 2022-1 3. Resolution Calling Special Election for CFD 2022-1 4. Resolution Consolidating CFD Election with Statewide General Election City Manager Charles McClendon provided an overview of the proposed Formation of Community Facilities District (CFD) 2022-1 and the process to give voters the opportunity to decide on the necessary funding. The following points were presented: • Background Information • Plan for Recreation Services and Facilities • Funding for the Plan • Use of the Funds • Legal Required Actions Councilmember Raymond Gregory requested clarification on the proposed formation of the CFD and the tax measure as it relates to neighborhoods and the Landscape and Lighting District. Eric Vail, City Attorney, stated that the measure will have no legal impacts, however, it will remove the need for the current General Fund subsidy that pays for the maintenance of Panorama Park and Century Park. He stated that the City Council has the following options to eliminate that from the CFD: • In December when the City Council certifies the vote, should it pass, they can consider adopting a Resolution modifying the Engineer's Report for the Landscape and Lighting District removing the funds designated for the maintenance of Panorama Park and Century Park. • As part of the General Fund budgeting, the Council can remove the subsidy since it will no longer be necessary. Councilmember Raymond Gregory requested that the City Council consider taking action as suggested by City Attorney Eric Vail which will address his concerns related to the LLD taxes collected for the maintenance of Panorama Cathedral City Page 2 Printed on 8/18/2022 Park and Century Park, should the measure pass. It was the consensus of the City Council to consider his request should the measure pass. The members of the City Council had various questions related to the proposed CFD tax. In response to those taxation related questions, Sara Mares, Special Tax Consultant, provided an overview of the rate method of apportionment and how commercial buildings, mobile homes, condos, ADUs, and RV parks are taxed. Mayor Ernesto Gutierrez opened the Public Hearing to receive public comment. Jullie Osburn expressed her opposition to a new tax. Bethany Ballard expressed her concern with only homeowners being taxed and feels everyone should pitch in. Danielle Mead is supportive of the idea but expressed her concerns. Peggy Sorenson expressed her opposition to a new tax. Janice Ciletti expressed her opposition to a new tax. Danny Lee expressed his support of the measure and feels it will improve the Community. Rick Saldivar expressed his support of Desert Recreation District and feels something has to be done for the youth in the Community. Luke Carpenter feels that the public has to know exactly what they are getting for their money, which is not clear. Mayor Ernesto Gutierrez closed the Public Hearing and returned discussion to the City Council. Councilmember Raymond Gregory expressed his support for moving this item forward. Councilmember Mark Carnevale expressed his support for moving this item forward. Mayor Pro Tem Rita Lamb expressed her support for this item moving forward. Councilmember Nancy Ross expressed her support for this item moving forward. Mayor Ernesto Gutierrez expressed his concerns with the tax rate for commercial business owners, however, he is supportive of moving this item forward. A motion was made by Councilmember Gregory and seconded by Mayor Pro Tem Lamb to approve the following four resolutions completing the required legal steps to form a Community Facilities District to provide parks and recreation Cathedral City Page 3 Printed on 8/18/2022 services and facilities and authorize a special election to allow voters to decide the question: 1. Resolution of Formation of CFD 2022-1 2. Resolution Determining Necessity of Bonds for CFD 2022-1 3. Resolution Calling Special Election for CFD 2022-1 4. Resolution consolidating CFD Election with Statewide General Election Mayor Gutierrez made a substitute motion for commercial property owners to pay $0.15 per square feet up to 5,000 square feet and to pay $0.10 per square foot over 50,000 square feet instead of the $734.00 flat rate for all commercial properties. The motion died due to a lack of a second. Reso 2022-35 Reso 2022-36 Reso 2022-37 Reso 2022-38 RESULT: APPROVED [UNANIMOUS] MOVER: Raymond Gregory, Councilmember SECONDER: Rita Lamb, Mayor Pro Tern AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory 2. AGENDA ITEMS A. Adopt a Resolution Approving a Joint Community Facilities Agreement with Desert Recreation District Related to Cathedral City Community Facilities District No. 22-1 (Cathedral City Park & Recreation Services) Recommendation: Adopt a Resolution Authorizing Execution and Delivery of Joint Community Facilities Agreement between the City of Cathedral City and the Desert Recreation District, Related to City of Cathedral City Community Facilities District No. 22-1 (Cathedral City Park & Recreation Services) Reso 2022-39 A motion was made by Councilmember Gregory and seconded by Mayor Pro Tern Lamb to adopt a Resolution authorizing execution and delivery of Joint Community Facilities Agreement between the City of Cathedral City and the Desert Recreation District, Related to City of Cathedral City Community Facilities District No. 22-1 (Cathedral City Park & Recreation Services). RESULT: APPROVED [UNANIMOUS] MOVER: Raymond Gregory, Councilmember SECONDER: Mark Carnevale, Councilmember AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory B. Resolution in Support of Parks & Recreation Ballot Measure Cathedral City Page 4 Printed on 8/18/2022 Recommendation: Consider adopting a resolution in support of the Parks and Recreation Ballot Measure which, if approved by Cathedral City voters, would allow the City to invest up to $39 million in capital improvements to City parks and recreation facilities up front, and provide an annual revenue stream of approximately $4.5 million for parks and recreation services within the City. Reso 2022-40 A motion was made by Councilmember Carnevale and seconded by Councilmember Gregory to adopt a resolution in support of the Parks and Recreation Ballot Measure which, if approved by Cathedral City voters, would allow the City to invest up to $39 million in capital improvements to City parks and recreation facilities up front, and prove an annual revenue stream of approximately$4.5 million for parks and recreation services within the City. RESULT: APPROVED [UNANIMOUS] MOVER: Mark Carnevale, Councilmember SECONDER: Raymond Gregory, Councilmember AYES: Gutierrez, Lamb, Carnevale, Ross, Gregory ADJOURN Mayor Ernesto Gutierrez adjourned the Special City Council Meeting at 6:31 p.m. LchAII Lc, 'la or, Cityof Cathedral CityCityClerk, i o Cathedral City Cathedral City Page 5 Printed on 8/18/2022