50 years ago: groundwork laid for newly incorporated Yorba Linda at 1967 meeting

 Much of the groundwork for the newly incorporated Yorba Linda was laid at a four-hour meeting of civic leaders held days before the first City Council session 50 years ago this week.

Participating in the Oct. 26, 1967, meeting were the five newly elected council members and nine Steering Committee for Incorporation officers. Minutes were taken by Betty Christiansen, the only woman among 27 contenders for the initial council positions. (She placed sixth.)

Jim Erickson, a cityhood supporter who became the first City Attorney, told the group that revenue to finance the fledgling city was a key concern, according to meeting minutes. Incorporation proponents had promised to not levy a city property tax.

Sales tax revenue wouldn't be assigned to the city until Jan. 1, 1968, but gasoline taxes, license funds and other revenue streams would be available immediately. Additional voter registrations would bring in $150 each to the city.

One reason cityhood won by a 3 to 1 voter margin was dismay over county zoning decisions. According to meeting minutes, Erickson stated, “Zoning problems such as apartments and trailer parks can be cut off as soon as the city becomes a legal entity through the adoption of an emergency ordinance.”

While many of the city's first ordinances would follow county practices and contract for county services, such as policing and planning, the new council would have final authority on all matters. Zoning variances would go through the dreaded county process, but they would need council approval.

Erickson recommended council appoint a planning commission within one month and follow with other citizen advisory committees to deal with oil problems, beautification and parks and recreation as “an excellent way of involving more people in city government.”

Among other first actions Erickson suggested: appoint a city engineer, clerk, treasurer and attorney; set up a bank depository; establish a meeting place and time; purchase public liability insurance and surety bonds for each council member and city officer; and adopt a city seal.

Erickson “stressed the importance of the council presenting a solid front. It is important that there be no public blood-letting and dissension,” meeting minutes noted. Obviously, several succeeding councils have ignored this advice, which is too often impractical to implement.

Also, about “the art of talking to the press,” meeting minutes stated Erickson gave this advice to the new council: “As a general rule, reporters ask questions that would be embarrassing to the council, or they raise issues that will sell papers. Smile a lot and don't say much. Cities are a particular target of newspapers.”

The first council meeting was an organizational session held Nov. 2, 1967, at the Richard Nixon School (now the site of the Richard Nixon Presidential Library & Museum). The first regular council meeting took place at the school Nov. 6, 1967.

Yorba Linda: city adopts unclaimed funds policy, water district sees bond rating comments, school district adds student board member, sets extra teacher pay for teaching extra classes

Meriting attention this week are interesting items from recent City Council and water and school district agendas and meetings.

First, from the Yorba Linda City Council:

A new policy regarding uncashed, city-issued checks and unrefunded deposits held in city accounts – some dating as far back as 1993 – has been adopted. It applies to cash held for at least three years “that will likely never be claimed,” according to a report to the council.

The policy sets procedures and public notice requirements for a currently eligible $20,000 in uncashed checks and about $677,000 in deposits for swimming pools and planning and engineering matters that will be transferred to the city's general fund.

Future write-off amounts, allowed under state law, are expected to be significantly smaller once the backlog of unclaimed funds has been eliminated.

Second, from the Yorba Linda Water District:

Reasons for a Fitch Ratings AA designation for a $29 million bond sale earlier this year to refund a 2008 bond issue and fund $6 million in upgrades to the Fairmont pump station include the district's “strong financial profile,” “healthy debt profile” and “strong operating profile.”

However, Fitch, one of three nationally recognized rating companies, also noted: “The rating is lower than suggested by the financial metrics due to continued concerns about the district's governance and the electorate's willingness to accept rates that guarantee full cost recovery.”

Fitch added: “The rating could be revised upward if adopted rates continue to produce strong financial performance and political tensions dissipate. Alternately, the rating ultimately could come under downward pressure if the district and community fail to reach a consensus on rates that lead to full cost recovery and continued solid financial performance.”

Third, from the Placentia-Yorba Linda school district:

Each semester a high school senior is appointed as a non-voting member of the district's board of trustees to report on student activities and offer student viewpoints during discussions. The position is rotated among the district's high schools.

This semester's representative is Kiara Espericueta from the La Entrada High School campus at Yorba Linda Boulevard and Casa Loma Avenue. La Entrada is the district's fully accredited school for independent study that offers personalized diploma programs.

And so far this year, trustees have approved 61 teachers to teach an extra period each day for extra pay. Forty high school teachers are teaching six periods daily instead of the usual five periods, while 21 middle school teachers are teaching seven periods daily instead of six.

The extra pay per teacher amounts to one-sixth or one-seventh of contract salaries or a yearly range from $8,274 to $17,128 at high schools and from $7,092 to $14,682 at middle schools, depending on each teacher's placement on the district's salary schedule.

Yorba Linda increases efforts to collect business license taxes; sets six-month amnesty period

An increased effort to gain voluntary compliance to Yorba Linda's business license ordinance that includes a six-month amnesty period for unlicensed businesses has received unanimous approval from Yorba Linda's City Council.

“Compliance with the business license ordinance should be viewed no differently than compliance with any other local ordinance or state and federal law,” Finance Director Scott Catlett reported to council members.

So the city will be implementing “a more proactive, but still business-friendly, approach to enforcement of the city's business license ordinance,” Catlett stated.

Business license taxes bring in about $400,000 each year, but enforcement efforts could bring in $50,000 more, although “it is likely to be less than this amount,” according to Catlett.

Historically, the city has used “a passive approach to enforcement,” Catlett noted, adding that compliance “while high in retail centers is likely lower, though still good, for other types of businesses.”

He identified these as businesses located in office parks; mobile businesses, such as swimming pool, lawn maintenance and cleaning services and plumbing, electrical and other contractors; home-based businesses; and short-term vacation rentals.

Also, businesses not located in the city but doing business here, such as lawn maintenance and plumbing services, must have a Yorba Linda business license, Catlett noted. “Compliance for these businesses is also good, but again not to the level seen for retail centers.”

Catlett didn't recommend changes to tax rates and penalties, which would require a public vote. Rates are minimal and not adjusted annually for inflation and probably haven't been increased since 1973, he noted.

The “primary benefit of the city's business license requirement is to ensure that businesses operating within the city are known to the city and located in appropriately zoned/permitted locations,” Catlett stated.

Options to improve enforcement include online research using sources such as sales and property tax databases and lists of business utility accounts, periodic field surveys of businesses cross-referenced with the business license database and sharing information with the state's Franchise Tax Board.

The latter would include the city and board exchanging names of owners, addresses and types of businesses from each agency's databases, without providing financial information.

To avoid a perception “the city is simply out to increase revenue,” amnesty and education programs that include “carefully crafted letters to violators” will be conducted, Catlett stated.

Collection of unpaid license taxes is limited to the current and three prior years, which could amount to 800 percent of an annual payment when penalties are added. The amnesty would waive back taxes and penalties during a six-month period, with waivers considered on a case-by-case basis after the amnesty period ends.

Merit raise for Yorba Linda City Manager; some city fees increased; final revote for landscape maintenance zone fee hike now taking place

A merit raise for City Manager Mark Pulone, a restructuring of fees paid by residents for some city services and a re-vote to set higher maintenance fees in one of the city's local landscape zones are recent actions taken by Yorba Linda's City Council.

First, Pulone, who began his city service in 2013, is now earning a $241,022 annual salary, up 5 percent. Pulone's latest contract amendment calls only for the salary hike, with health and retirement benefits – listed as $67,888 in the city's required report to the state – and term – through October 2021 – remaining the same as last year.

Second, a small number of fees in the city clerk, finance, library and parks and recreation departments have been revised, while more significant fee adjustments in the planning, engineering and building departments await action after completion of a new study.

The fees increased will bring in an additional $50,000 in revenue, “primarily attributable to the recommended increases to parks and recreation rental fees,” noted a report by Finance Director Scott Catlett.

The proposed fee increases to be recommended for planning, engineering and building matters “may in some cases be substantial,” Catlett stated, adding, “At that time the council may wish to consider a gradual implementation of fee increases over a number of years, with cost recovery beginning at a lower percentage and increasing toward 100 percent each year.”

According to Catlett, “the fees for planning, engineering and building are now 12 years old,” and “because they are based on the cost of providing these services in 2005, the amount of revenue generated by the fees is clearly less than the cost of providing the service.”

With some fees up to 30 years old, officials stated an intent to update fee schedules every three years. Also, the city manager has authority to apply consumer price index increases at his discretion, with appropriate notification to the council.

Third, property owners in the northwest section of the city, including Vista Del Verde residences, are in the process of voting on increases in yearly landscape maintenance fees to $1,088 from the current $493.

The 759 parcel owners in the underfunded Zone 5a are voting by mail, with ballots due Nov. 7, the day of a public hearing set before the council. Passage requires a majority of the zone's assessed valuation. The zone includes 745 residences and 14 undeveloped parcels.

Property owners in several of the city's 33 local maintenance zones voting on assessment hikes the past couple of years requested re-votes after initial tallies turned down increases.

The current vote is expected to be the last re-vote for these underfunded zones. A petition with 270 signatures was submitted seeking a new ballot, well over the 194 required. If successful, the increase will be added to 2017-18 property tax bills from the county or, possibly, billed separately by the city.