Loading...
Feasibility Study - City of Grand Terrace Incorporation December 8, 1977 San Bernardino County Board of Supervisors and Municipal Advisory Council of Grand Terrace Dear Members: With the transmittal of this report, we conclude a comprehensive and professionally satisfying assignment. This extensive exploration of alternate ways to deliver expanded local governmental services should encourage informed discussion and community determination of its local governmental structure. The majority of the project work was conducted by project supervisor Lee Weber and Douglas Ayres of our Western staff. However, a specialist in public works, Harold Rothbart, and another in fire, Joe Miller, were also brought in for review in their specific areas of expertise. We must express our appreciation for the remarkably good cooperation extended to us by the Municipal Advisory Council and the Special Districts Department of San Bernardino County. Numerous. other County departments offered information and advice and reviewed segments of the report as they became available. Finally, without the cooperation and continuing input of the nearby cities of Colton and Loma Linda, this study would be neither as comprehensive nor complete. cerely liam J. Hilty Associate Director TABLE OF CONTENTS PAGE CHAPTER I. BACKGROUND OF THE STUDY History of the Grand Terrace Community. . , . . , 1 -- MAP #1--GRAND TERRACE VICINITY Physical Attributes of Grand Terrace. . . . . . . 2 Background of this Study. . . . . . . . . . . . . 4 CHAPTER II. GRAND TERRACE--PRESENT AND FUTURE GROWTH Methodology , , , , , , , , , , , , , , , , , , , 8 Population. . . . . . . . . . . . . . . . . . . . 8 Assessed Valuations . . . . . . . . . . . . . . . 13 CHAPTER III. EXISTING SERVICES & TRENDS Methodology . . . . . . . . . . . . . . . . . . 17 Public Utilities. . . . . . . . . . . . . . . . . 17 -- MAP #2--SEPARATELY DEFINED AREAS Public Works. . . . . . . . . . . . . . . . . . . 21 Public Safety . . . . . . . . . . . . . . . . . . 24 Leisure Services. . . . . . . . . . . . . . . . . 26 Social Services . . . . . . . . . . . . . . . . . 26 Land Use Controls . . . . . . . . . . . . . . . . 27 -- MAP #3--PROJECTED COMMERCIAL AND INDUSTRIAL USES Tax Structure . . . . . . . . . . . . . . . . . . 28 CHAPTER IV. ALTERNATIVE SERVICE LEVELS Methodology . . . . . . . . . . . . . . . . . . . 29 Municipal Advisory Council Input. . . . . . . . . 30 Public Utilities. . . . . . . . . . . . . . . . . 31 Public Works. . . . . . . . . . . . . . . . . . . 34 Public Safety . . . . . . . . . . . . . . . . . . 38 Leisure Services. . . . . . . . . . . . . . . . . 42 Social Services . . . . . . . . . . . . . . . . . 44 Land Use Contracts. . . . . . . . . . . . . . . . 44 Cost Calculations/Conclusions . . . . . . . . . . 46 CHAPTER V. CAPITAL CONSTRUCTION REQUIREMENTS Methodology . . . . . . . . . . . . . . . . . . . 47 Storm Drainage. . . . . . . . . . . . . . . . . . 47 -- MAP #4--MAJOR STORM DRAINS Streets . . . . . . . . . . . . . . . . . . . . . 48 Fire. . . . . . . . . . . . . . . . . . . . . . . 49 -- MAP #5--MAJOR STREET IMPROVEMENTS Parks < . . . . . . . . . . . . . . . . . . . . . 50 Civic Center. . . . . . . . . . . . . . . . . . . 51 Summary of Capital Improvement Funding. . . . . . 54 CHAPTER VI. SERVICE DELIVERY ALTERNATIVES Methodology . . . . . . . . . . . . . . . . . . 55 County Service Area . . . . . . . . . . . . . . 55 Community Services District . . . . . . . . . . 59 Discussions of CSA and CSD. . . . . . . . . . . 59 Reorganization. . . . . . . . . . . . . . . . . 64 Annexation to Colton. . . . . . . . . . . . . . 66 Incorporation . . . . . . . . . . . . . . . . . 68 Discussion of Alternatives. . . . . . . . . . . 69 Reviews of Alternatives with Affected Parties 70 CHAPTER VII. RANKING OF ALTERNATIVES Methodology . . . . . . . . . . . . . . . . . . 72 Revenue Comparisons . . . . . . . . . . . . . . 72 Expenditure Comparisons . . . . . . . . . . . . 73 Ranking of Alternatives . . . . . . . . . . . . 74 General Revenue Comparisons . . . . . . . . . . 76 General Expenditure Comparisons . . . . . . . . 77 Summary of Financial Effects of Alternatives. 78 CHAPTER VIII. CONCLUSION AND RECOMMENDATION Methodology . . . . . . . . . . . . . . . . . . 79 Reconciliation of "Preferences" with "Costs". 80 City of Grand Terrace Financial Projections . 81 General Law vs. Chartered City. . . . . . . . . 86 Charter City Financial Projections. . . . . . . 86 Procedure for Incorporation . . . . . . . . . . 88 Conclusion. . . . . . . . . . . . . . . . . . . 91 Implementation of Recommended Alternative . . . 92 APPENDICES I. STATE BOARD OF EQUALIZATION REVENUE ESTIMATES Letter of September 23, 1977 to Local Agency Formation Commission. II. BASIC REVENUE PROJECTIONS Five-year projections with accompanying comments. III. BASIC EXPENDITURE PROJECTIONS Five-year projections with accompanying comments. IV. PLANS FOR COLTON SPHERE OF INFLUENCE REVIEW LAFCO letter of October 18, 1977 to Grand Terrace Municipal Advisory Council. V. DRAFT REPORT REVIEW COMMENTS--CITY OF COLTON Colton letter of November 9, 1977 to Public Administration Service; City Manager report of November 9, 1977 to Colton Mayor and City Council. VI. DRAFT REPORT REVIEW COMMENTS--CITY OF LOMA LINDA Loma Linda letter of November 21, 1977 to Public Administration Service. CHAPTER I BACKGROUND OF THE STUDY The study reported by this volume encompasses the unincorporated Grand Terrace area of San Bernardino County. The relationship of this area to nearby San Bernardino County communities and the Riverside County line is shown by Map #1. The purpose of the study is to explore all possible alternatives for providing local government services to the area and to assess the economics and organizational possibilities of each. History of Grand Terrace Grand Terrace is named for the high bluff which comprises much of the 5.9 square mile unincorporated island lying in the southwest portion of San Bernardino County. The Grand Terrace--several hundred feet above the Santa Ana River plain, but dominated to the east by the 2,428 foot Blue Mountain--slopes slightly in a general east to west direction until the nearly vertical cliffs drop off on the north and La Loma Hills rise on the west. The area lies between the historical Lugo Rancho San Bernardino and the Jurupa Rancho. With the formation of San Bernardino County in 1853 Grand Terrace's present sourtherly boundary was set as the Riverside- San Beranrdino County boundary line. Citrus Groves. Land sales records for the area now called Grand Terrace go back to the 1870s, with citrus plantings beginning on the well-drained land around the turn of the century. Agriculture--especially citrus-- remained the dominant force into the 1920s. A flurry of real estate sub-division had taken place in the 1880s in the general area, but Grand Terrace remained basically unaffected. World War II had a major effect on Grand Terrace, with the beginning of housing development in support of Norton Air Force Base and its employees. Post-World War II development was steady, especially as those who had been stationed at Norton or March Air Force Bases began to retire in the desirable Southern California climate. With the rapid expansion of Loma Linda University persons affiliated with that complex of medical facili- ties also began to congregate in Grand Terrace. Growth was fairly steady from 1950 to 1975, with three factors being dominant: 1. Norton and March Air Force Bases 2. Loma Linda University 3. Central location between San Bernardino and Riverside Impact of the Interstates. Location adjacent to Interstate 10 and bisec- tion by Interstate 15E provided Grand Terrace residents quick and easy 1 access to the remainder of the region. Even more importantly the semi- rural citrus grove-sprinkled nature of the area made Grand Terrace a highly desirable living environment and, with the freeway access, both residences and businesses grew apace. The Southern California housing boom of 1976-77, coupled with newly available sanitary sewers, and the relatively inexpensive large chunks of open land on the Grand Terrace, has now caused the most rapid period of housing and population growth in local history. Growth Potential. Plentiful water, lots of open land, a homogeneous- and higher income population, ready access to and from two major freeways, service by two major railroad lines, a desirable mid-location between Riverside and San Bernardino, and a semi-isolation afforded by the topo- graphy all seem to combine to make Grand Terrace a potentially "hot" growth area. Growth seems to be coming in housing and population, with added commercial construction probably not far behind. The railroad, freeway and mid-point advantages of Grand Terrace also seem to indicate additional potential importance as a distribution center. Physical Attributes of Grand Terrace The boundaries of the present area known as "Grand Terrace" for the pur- poses of this study are set by the San Bernardino-Riverside County line on the south, the Reche Canyon annexation to the City of Colton on the east, the La Loma Hills annexation to Colton on the west, and the main body of Colton on the north. Thus legally Grand Terrace--as herein defined--is completely surrounded by the City of Colton. The California Constitution does not permit a city to exist in two counties, thus the establishment of a legal enclave. Blue Mountain. Although a large part of this 5.9 square mile Grand Terrace island lies east of the Southern Pacific Railroad and Interstate 15E, a significant portion of that area consists of Blue Mountain. Only the lower portion of this 2,428 foot rocky outcropping is built on, and the balance would be extremely difficult to develop. The mountain is split with the City of Colton, the latter having encompassed about half the mountain within its Reche Canyon annexation. To the west, the slightly more buildable La Loma Hills are similarly more or less split between incorporated Colton and unincorporated Grand Terrace. Railroads, Freeways and Annexation. Existence of the Southern Pacific Railroad, the Atchison, Topeka and Santa Fe, and Interstate 15--from east to west--on the western boundary of Grand Terrace more or less tends to isolate the La Loma Hills area from the balance of the Grand Terrace. In fact, the City of Colton, through gradual annexation, has nearly isolated the area lying west of the Southern Pacific at Burns and Vivienda Avenues. Only several hundred feet of unincorporated strip 2 prevent the legal isolation of the La Loma Hills-La Cadena area. Topography. Slopes of around 50 percent exist on the sides of Blue Mountain, almost vertical cliffs on the north and west edges of the main body of Grand Terrace, but a gentle slope of only around four percent prevails in the center of the unincorporated island. Climate. The mild inland temperatures are ideal for citrus, but the warm, dry summers, combined with the prevailing westerly winds, cause considerable air pollution in all of the Inland Empire of the Riverside- San Bernardino area, including Grand Terrace. Average annual rainfall is some 13 inches, concentrated from December through March. Irriga- tion water being readily available, plus the existence of the Foothill Pipeline of the California Aqueduct through Grand Terrace, combine to cause the area to have bright development prospects. Addition of the sanitary sewer system in 1975-76 completed the necessary utility infra- structure to enable developers to exploit the climate, location and land economics of Grand Terrace. Land Use. Much of Grand Terrace other than Blue Mountain remains in citrus orchards. These are rapidly being developed or allowed to come under less intense cultivation as land values for development soar. As the Kinnard, Delahousie and Gault "Grand Terrace General Plan" study of February, 1975 states: Even now growers are being faced with pressures to urbanize and develop their holdings. The result of this has been the accelerated conversion of orchards into more intensified land uses. Though this seems undesirable from an open space objec- tive, the present realities of agricultural production and land values makes it nearly unavoidable. . . . 1 Thus open space definition and preservation may well become one of the major problems facing the Grand Terrace area in the not-too-distant future. For, as the same report states: A large area of Grand Terrace is used for citrus orchards and there is a feeling that these orchards are part of the natural open space resource of the community and should be retained. In terms of land use, however, they are a visual resource and are not suitable for general recreation. . . .2 Much of the balance of Grand Terrace is a mixture of older single family residences on large lots, strip and isolated commercial, newer tract single family homes on quite small lots, high value custom built homes on the lower slopes of Blue Mountain, light industrial-distribution, and 1Background Summary Report--Grand Terrace General Plan: Kennard, Delahousie and Gault and the San Bernardino County Planning Department, February 3, 1975, p. 13. 2Ibid. , p. 13. 3 some new quite high-density apartments. The adopted General Plan allows a solid mixture of land uses which seem conducive to developing a solid tax base. The only two imponderables are speed of development and a solution to the "open space problem." Background of this Study Provision of local governmental services to the Grand Terrace area was steady, uncomplicated and unemotional until a series of events in 1975 and 1976, as outlined below. Annexations. First, the San Bernardino Local Agency Formation Commission (LAFCO) granted permission to the City of Colton to annex major portions of La Loma Hills, Reche Canyon and Blue Mountain, and the industrial- commercial area astride La Cadena Avenue. Thus the bulk of what was known as Grand Terrace was surrounded. Next, the LAFCO determination of the statutorily encouraged "sphere of influence" for Colton was held up pending a study of local government services in the unincorporated area now surrounded by the City limit lines of Colton. Sewers. In the meantime Improvement Zone "H" of County Service Area 70 was formed to provide sanitary sewer service to the unincorporated Grand Terrace island. Such was accomplished after studies, debates and much sensitization of the citizens of Grand Terrace as to local government services and the way they are or can be organized. As a part of this process the County Board of Supervisors created the Municipal Advisory Council (MAC) . MAC Actions. The Municipal Advisory Council, prompted by the community acceptance of the necessity for sewers, Colton's annexations and the LAFCO-Colton feeling of necessity for action on a "sphere of influence," sought assistance. The decision to examine the future governmental service delivery system for Grand Terrace was--in the expressed opinion of many-- made a necessity by the prospect of being submerged into the City of Colton without any orderly examination of the impacts of such a decision. A "nibbling" process of piecemeal annexation would be possible and probable once the Colton sphere of influence was created containing Grand Terrace. The obvious result would be submerging of any possible City of Grand Terrace, or other local district arrangement, into the greater City of Colton. But even more importantly it was felt, all decisions would be piecemeal and without significant local input. Thus the MAC prevailed on the Special Districts Department and the San Bernardino County Board of Supervisors to commission a "Grand Terrace Feasibility Study for Governance" request for proposal for consultant services. Granting of Study Contract. A competitive process, designed in such a way that responsiveness and capability were given equal standing with 4 price, was devised by the County Special Districts Department Staff in the late spring of 1977. Several local government consultant firms submitted responses to the RFP and were interviewed during early July. Later that month Public Administration Service was selected, a revised scope of work and study methodology was negotiated, and a contract let by the Board of Supervisors. Work began in earnest on the study on August 1, 1977. Basic Scope of the Study. The basic purpose of the study, as stated in the "Request for Proposal" is: To provide a feasibility study regarding the expansion of services and alternative means for providing such services by Governmental Agency or Agencies to meet the needs and desires of the Grand Terrace community. A plan of study was to be prepared to: A. Inspect existing facilities and services to analyze and project intermediate and long-range feasibility regarding current and future services and current (and) future methods for providing these services through alternative forms of government. . . . C. Develop a five-year budget projection based on alternative levels of community service. This projection would include, but not be limited to: 1. Requirements for service needs to include police, fire, sanitation, street maintenance, parks and recreation, street lighting, animal control, and water. 2. Requirements for new construction (including a time frame) . 3. Estimates of costs . . . 4. Source of anticipated funding. 5. Projection of manpower needs for current and proposed services and facilities. D. Analyze alternative forms of government to provide the services required. This analysis would include as a minimum an analysis of various forms of Districts (CSA's, CSD's, etc) , city incorporation, annexation to nearby cities, the effect on these cities and potential re- organizations. 5 Study Procedure per RFP. The contract procedure calls for a Draft Feasibility Report to be prepared and presented to the MAC and the Special Districts Department (SDD) , comments and feedback on that Draft Report, and then, upon written approval by the Special Districts Department, preparation and submission of a "final feasibility report" to the Board of Supervisors. A nine-element study procedure was prepared and submitted by Public Administration Service, and was accepted by the MAC and SDD, as follows: 1. Establish Growth Assumptions 2. Define Existing Basic Services 3. Project Alternative Service Levels 4. Define Capital Construction Requirements 5. Assess Annexation Implications 6. Develop Independent Agency Models 7. Project Five-year Comprehensive Budgets 8. Draft Feasibility Study 9. Prepare and Present Final Feasibility Study. The "Proposed Study Methodology" described each element in detail. All were accepted by both the SDD and MAC and includedin the final study methodology, except that elements 5 and 6 essentially were merged into an assessment of alternative organizational means for providing local government services. Further, element 7 was limited to a detailed bud- get for the most feasible and desirable organizational alternative, with less detailed budgets provided for other alternative arrangements which seemed to be possible of achievement. Adopted Procedure. On August 2 this final "Study Plan" was presented to and adopted by the Municipal Advisory Council, pursuant to the consul- tant agreement's provisions that policy and procedural guidance and approvals be provided by that body and by the SDD. To keep all involved and interested parties informed, and in a position to make constructive comments, two devices have been used in the process of developing this report. A series of interim reports was used to provide the MAC, adjacent cities, the SDD and other County agencies, SANBAG, LAFCO and the press informed as the study progressed. The following interim reports were issued: DATE REPORT NO. TITLE August 10 1 Tentative Project Report Outline and Reporting Procedures August 12 2 Population Estimates August 24 3 Assessed Valuation Projections September 12 4 Existing Services and Trends September 28 4A Existing Services and Trends September 30 5 Alternate Service Levels October 4 6 Capital Construction Requirements October 20 7 Background of the Study 6 DATE REPORT NO. TITLE October 26 8 Basic Revenue Projections November 15 9 Basic Expenditure Projections November 22 -- Draft Feasibility Report A series of MAC meetings were held at which times the interim reports were discussed, MAC and general public input sought and received, and appropriate notations and/or corrections and modifications made. Consultant Procedure. Public Administration Service has followed an uncomplicated procedure in accomplishing the agreed-on duties required by the study contract. First, all written material regarding Grand Terrace was gathered and digested. Included among these were the several sewer studies, the general plan study, a municipal incorporation feasibility report, and other pertinent documents. Private and state governmental sources also were utilized, including Security Pacific Bank, Southern California Edison, and revenue figures prepared by the State Board of Equalization. Second, numerous county, city, regional, MAC, district and local govern- ment officials were interviewed and data gathered from their files and records. Also an extensive tour of the area was made and talks had with various "opinion leaders." The latter conversations in no way could be considered a valid survey--just an orientation. Third, PAS staff specialists in engineering and public works, finance and organization, fire service and communications were brought in for varying periods of time to supplement the assigned staff. Their written report gathering and interviews with counterpart specialists were quite detailed and extensive. Fourth, added materials were discovered, requested to be developed, or gleaned verbally from a wide variety of governmental and local sources. Last, and certainly not least, the series of informal, formal and public meetings with the MAC, SDD and other officials as the study has progressed has developed added "feel" and materials to be added to the informed, unbiased and objective outlook inherent in any "outside consultant." The result, Public Administration Service believes, is an economically feasible and politically achievable plan of procedure to provide Grand Terrace with local government services. The balance of this report out- lines the step-by-step information and data development which culminates in the suggestions outlined in some detail in the last chapter hereof. 7 CHAPTER II PRESENT AND FUTURE GROWTH The need for and cost of governmental services in the Grand Terrace will be impacted by the type and rate of growth the area may expect to experience. Methodology The basic approach taken in this study involved establishing a set of growth assumptions to be reviewed by all interested parties early in the study. These assumptions would then serve as the. common base upon which to build, experiment and project revenues and expenditures for various alternate local government organization patterns. Establishing this "common base" proved to be somewhat more involved than originally expected. The process began with the establishment of the current population and anticipated growth. These growth projections were required before any growth in total assessed valuation could be estimated. The methodology involved in each set of projections is more fully described in the following sections on population and assessed valuation. Population Several problems arise in attempting to establish the present and project the future population of the Grand Terrace area. First among these difficulties is the underlying problem of agreeing upon what constitutes the boundaries of the area. For the purposes of this report the total unincorporated area bounded by Colton on the north, east and west and Riverside County on the south is assumed to be the Grand Terrace area except when otherwise specified. This 5.9 square-mile area corresponds with the planning study area involved in the June, 1976 Community General Plan. Establishing the Base In order to project population, current population first had to be esti- mated. Detailed data from the 1970 and special 1975 census was examined. Census data provides exact figures for the defined Grand Terrace area showing the following fifteen-year growth pattern: 1960 . . . . . . . 2,120 1970 . . . . . . . 5,901 1975 . . . . . . . 6,608 Other Population Estimates. A variety of sources were contacted and data examined to help establish current and projected estimated population for the Grand Terrace area. Among these sources were: 8 Department of Building and Safety General Plan Study Files -- 1974-75 Department of Planning -- Population Section Riverside Highland Water Company Sanitary Sewer Engineering Reports San Bernardino Associated Governments Southern California Edison Company Security Pacific National Bank Census Tract Relationships. From April, 1975 onward all estimated popu- lation projections were carefully analyzed and modified to reflect only the total included in the defined Grand Terrace area. The most frequent mistake appearing in some references to community population relate to treating Census Tract #71 data interchangeably with the Grand Terrace area. In both the 1970 and 1975 special census, the area contained only approximately 90% of the population included in Census Tract #71. Some of this population actually resides in Census Tract #40, only a very small portion of which is in the defined Grand Terrace area. The use of Census Tract #71 data interchangeably with that of the defined Grand Terrace area automatically inflates the area estimate more than 10%. The overwhelming majority of persons living in Tract #71 reside in the Grand Terrace area making that demographic data essentially transferable to provide a profile of the community characteristics. However, whenever using census tract projections for population estimates, this report reduces those estimates to 90% of the tract total to obtain the area population estimate. Current Population Estimate. Most estimates of Grand Terrace area have not been updated in the past two years. However, both the County Planning Department and Security Pacific National Bank have prepared current popu- lation data for the first half of 1977. County Planning Department estimates the April, 1977 population of Census Tract #71 to be 7,441. Applying the 1.8% growth for Census Tract #71 to the 1975 special census population in the Grand Terrace area results in a Grand Terrace area estimate of 6,721. Security Pacific National Bank recently completed a study in connection with a proposed Grand Terrace branch expansion. Their estimated Census Tract #71 population is 7,400. Based on the 90% factor for Grand Terrace, this estimate would indicate an area population of 6,660. The basic current estimate, upon which all future area, population projec- tions are based, is 6,750. This estimate was arrived at by adding popu- lation for the 51 dwelling units constructed since the 1975 special census, less a vacancy factor of 3.62% and multiplying the 3.02 persons per unit average found in 1975 (49 x 3.02 - 148 + 6,602 = 6,750) . Registered Voter Population Estimate. Should the Grand Terrace area incor- porate the population basis for state subventions paid the city government will be arrived at by multiplying the number of registered voters by three. The County Registrar of Voters reports that as of August 1, 1977, there 9 were 2,878 persons registered to vote in the defined Grand Terrace area. This means that, regardless of current population estimates or projec- tions, a population estimate of 8,634 can be utilized in estimating state subventions which might be paid to an incorporated Grand Terrace local government. This figure would be adjusted to reflect the latest voter registration at the time of an incorporation election and then could be used until official results of another census were available. Projecting Population Growth The few figures available seem to point in the same direction concerning the approximate 6,750 current Grand Terrace area population. However, estimates for future population vary so substantially as to be of little value. After analyzing all of these sources it was essentially necessary to start over and project the next five years on the basis of quickly changing current building and subdividing situations. These figures and the growth they foretold were not available to others who have consistently projected more conservative growth estimates than those in this report. Trends Affecting Growth. At least three broad trends can be identified which have had or will have significant impact on the population growth of the Grand Terrace area. The three broad trends can be identified as: 1) Past and present sanitary sewer problems; 2) Orange County housing speculation; and, 3) Future environmental concerns. Each trend is briefly described below. Past and present sanitary sewer problems have had the most impact in causing wildly fluctuating growth trends in Grand Terrace. In recent years the lack of sanitary sewers in the Grand Terrace area has caused a virtual absence of new construction. The fact that only 51 building permits were issued for new dwelling in a two-year period account for the virtual lack of any growth between 1975 and 1977. With the comple- tion of the $6,000,000 sanitary sewer collection system, its tie-in with and purchase of capacity in the Colton Treatment Plant, a resumption of healthy growth could be expected. The fact that this has occurred at virtuaily the same time the east valley treatment facilities have become overloaded, thus limiting that rapid growth, is resulting in far more rapid development than would have otherwise occurred. Orange County housing speculation, resulting in the nationally noted new home price spiral during the past three years, is beginning to drive many new home buyers into the competitively lower priced Riverside-San Bernardino County home market. The extra driving time begins to look reasonable measured against a monthly payment of a $20,000 to $25,000 larger mortgage. The maintenance of this differential could make the Riverside-San Bernardino area the "next boom housing market" as predicted in a recent New West magazine article. A sudden drop in Orange County home prices, expected by some observers as speculators attempt to unload their investments, could result in sharply reducing the growth of new housing in that market. 10 Future environmental concerns which might affect Grand Terrace growth involve air quality. The Grand Terrace sanitary sewer collection and treatment capacity is fully adequate for the five-year period of growth projected in this report. At least for a portion of this period growth will be sharply restricted in some other areas of the valley because of a lack of such facilities. Given this situation it is assumed that growth will be permitted to continue in Grand Terrace during the next five years. Current Construction. A search of County Building and Safety Department recordsreveals that construction is currently underway in the Grand Terrace area for 375 dwelling units. All of these permits have been taken out since March 1, 1977 and are not included in the county popula- tion April 1, 1977 update. When fully occupied at the 1975 average per dwelling unit, the current construction will add 1,090 residents--or 550 more than in the five years preceding 1975. This only marks the beginning of the growth picture. Current Subdivision Activity. In the past twelve months tentative sub- division plats have been filed which will create lots for 645 dwelling units. Only 147 of these units are included in the 375 building permits issued since March 1, 1977 since 228 of these units are contained in a single apartment complex. Thus, in addition to the 1,090 residents that can be housed by current construction, enough lots have been tentatively platted within the past year to house an additional 1,504 persons when fully built. Other Population Projections. A number of other private and public agency population projections and other indications of growth as previously list- ed were analyzed. Several projections of Grand Terrace area population were available including those contained in those previously mentioned studies and sources. It was determined that these projections were currently usable for only the most general guidance. The majority of these projections were made before the effects of the current rush in development were known. Further, only two of the estimates, those for the sanitary sewer engineering report and the general plan study, coincide with study area boundaries. The Southern California Edison projections covered such a large area as to be of little direct value in the annual estimates required for the specific Grand Terrace area. The major areas of agreement among most projections concern the approximate total population (14,000-16,000) and the probable time (late 1980s to early 1990s) . Only two projections have been revised in the current year. Both of these are based on the projected population of Census Tract #71 where population exceeds that of the Grand Terrace area. Interpreting that data indicates that the Security Pacific National Bank projects only 9,180 people in the area in 1988. The County Planning Department, Population Section appears to project 7,632 in 1980 and 8,147 in 1985 based on interpretation of their larger census tract data. Thus it would appear that even the most 11 recent estimates of population have not yet taken into account the sudden growth developments already underway in Grand Terrace. It became necessary to project an entirely new set of growth assumptions as a basis for this study. Projected Grand Terrace Growth. Beginning with an estimated Grand Terrace community population of 6,750 as of July 1, 1977 projections for the next five years are clearly divided into three stages as described briefly below. July 1977 to July 1978 projections are based on occupying the dwelling units for which construction permits have been issued through July, 1977. A small vacancy factor is included in the calculations. No occupancy of any units for which permits might be issued after July 31, 1977 is pro- vided for in this estimate. As previously described, this current con- struction provides for 1,090 more residents bringing the July 1, 1978 projected population to 7,840. July 1978 to July 1979 projections envision the construction and occupancy of dwelling units on the tentatively platted lots filed prior to August 1, 1977. This estimate provides a maximum of three years and a minimum of two years from the date of tentative platting to the completion of con- struction. Not every one of the lots tentatively platted will have been built upon and some possibly dropped before the final subdivision is approved. Since no allowance is included for subdivisions which may be platted after August 1, 1977, this estimate is nonetheless considered to be conservative. As previously outlined, this tentative platted property would add an additional 1,504 persons bringing the July 1, 1979 estimated population to 9,344. July 1979 to July 1982 projections must be based on considerably less hard data. Some of the trends previously outlined could sharply acceler- ate or curb growth during this period. In view of the possibilities, a middle course of continued, though somewhat more normal slower growth, has been charted at a 5% annual increase resulting in the following estimates: July 1, 1980 . . . . . . . . 9,811 July 1, 1981 . . . . . . . . 10,302 July 1, 1982 . . . . . . . . 10,817 A steady 5% growth rate would bring the Grand Terrace community to its maximum 14,000-16,000 population by the end of the decade. 12 In summary past, present and future Grand Terrace area population is presented below: 1960 Census . . . . . . . . . . 2,120 1970 Census . . . . . . . . . . 5,901 1975 Special Census . . . . . . 6,608 1977 Current Estimate . . . . . 6,750 1978 Projected Estimate . . . . 7,840 1979 Projected Estimate . . . . 9,344 1980 Projected Estimate . . . . 9,811 1981 Projected Estimate . . . . 10,302 1982 Projected Estimate . . . . 10,817 p LO n aD M O N I,. CO 00 CO rn rn on rn as rn a; I 10,000 do 8,000 OF 6,000 4,000 2,000 0 Assessed Valuations The boundaries of the Grand Terrace area do not correspond directly with any established taxing jurisdiction so directly historical assessed valua- tion data is not available. However, Improvement Zone H of County Service Area #70 most nearly corresponds to the area boundaries. Establishing the Base In order to establish the current assessed valuation of the Grand Terrace area a review of the history of Improvement Zone H was conducted, values obtained from the State Board of Equalization and others hand-tabulated by the San Bernardino County Assessor' s office. Improvement Zone H Boundaries. Improvement Zone H of County Service Area #70 includes virtually all of the Grand Terrace area except for the portion west of La Cadena. Values for this area were tabulated separately from existing assessor records and added to Improvement Zone H totals to pro- vide the current approximately assessed valuation. However, before arriving at 13 this total, the history of Improvement Zone H assessed valuations was reviewed to determine any significant trends or factors which might affect future projections. Improvement Zone H Growth. The following inconsistent pattern of assessed valuation growth is partly influenced by both the sanitary sewer problem and assessor re-evaluation practices. Total Assessed % of Valuation Increase 1972-73 $14,644,440 -- 1973-74 14,925,930 1.9 1974-75 15,950,155 6.9 1975-76 17,281,180 8.3 1976-77 19,022,820 10. 1 1977-78 26,612,375 39.9 Sanitary sewers, or the lack of them as pointed out in the discussion of population trends, virtually halted growth in the most recent period prior to 1977. Assessor re-evaluation practices have more influence on the annual rate of growth than general market conditions. This effect is clearly demon- strated in the most recent year's 39.9% growth rate. The 1977 surge in construction had barely begun at the date of assessment. Thus, the over- whelming majority of the growth is the result of a re-evaluation of pro- perty in the area to reflect the inflationary increases of recent years. The Assessor's office reports that these increases will be reflected annually by 1980. This revised program will tend to even out the growth rate and eliminate these occasional jumps in the growth pattern. Grand Terrace Valuations. The 1977-78 assessed valuation estimate for Grand Terrace consists of the total Zone H valuation plus the area west of La Cadena. This is a conservative estimate since there is actually a small strip in the north area which is not included in this total. Improvement Zone H assessed valuations in 1977-78 break down as follows: Net Secured $19,083,280 Net Utility 3,114,710 Net Unsecured 1,454,590 State Reimbursed Exemptions 2,959,795 Total Tax Base $26,612,375 West of La Cadena net secured values of $791,070 were hand-tabulated from County assessment records. This total includes utility company land, but not facilities assessed by the State Board of Equalization and not broken down in this manner. Unsecured and state reimbursed exemptions are also not available for this specific area. Since most of the property in ques- tion is vacant, the omission of these figures should not substantially 14 change the total and provides a conservative base upon which to project the community total assessed valuations. 1977-78 Grand Terrace Assessed Valuations can be conservatively estimated to be 27,403,445, the total of all Zone H value plus the secured value of land and improvements in the area west of La Cadena. Projecting Assessed Valuations In projecting future assessed valuations for the Grand Terrace area the nature of probable construction and inflationary trends need to be care- fully considered. Population As a Basis for Projections. More than in most areas, the use of future estimated population growth serves quite adequately as the basis for projecting assessed valuation growth. This approach is possible because of the overwhelmingly residential character of the area. While some utility, commercial or minor industrial growth may be expected to occur, the application of the projected population growth rates provides the soundest basis for projecting assessed valuations. Application-of these rates, not allowing for inflation, produces the following totals: 1977-78 $27,4031455 1978-79 31,829,112 1979-80 37,933,935 1980-81 39,830,631 1981-82 41,822,162 1982-83 43,913,270 Inflationary Allowances. The market value of real estate has appreciated considerably faster than the general inflation rate over the past three years. There are indications that, at least in the Riverside-San Bernar- dino real estate market, this trend can be expected to continue due to the fact that Los Angeles and Orange County prices have moved far ahead of this market. Still, it would be unwise to anticipate revenues on the basis of projecting a highly inflationary real estate market. The infla- tionary factor used in this report is 4% which might seem high by standards other than the past several years. For a five-year period in this market it will likely prove to be conservative. However, if that assumption is incorrect, an off-setting inflationary factor of 6%, applied to projected expenditures, would negate much of the effect of any possible incorrect projection. In summary it would take an unlikely combination of almost no growth in property values at the same time as an extremely rapid gener- al price index to negatively affect these assumptions. 15 1977-1982 assessed valuation projections using population as the primary basis and providing for a 4% annual increase in property values are summarized below: 1977-78 $27,403,445 1978-79 33,101,696 1979-80 41,030,002 1980-81 44,804,762 1981-82 48,926,800 1982-83 53,428,065 1977-78 1978-79 1979-80 1980-81 1981-82 '982-83 $ 50,000,000 100, 00, $ 40,000,000 $ 30,000.000 / 000, $ 20.000,000 $ 10,000,000 0 16 CHAPTER III EXISTING SERVICES AND TRENDS This chapter reviews the various basic public services now offered in the Grand Terrace area. When appropriate the current levels of service and delivery systems are defined as a basis for projecting future services. Except for community planning and land use controls only direct services are reviewed. Such support services as finance, legal and engineering are not considered in this chapter. Methodology Consultant staff contacted all providers of public services in the Grand Terrace area. The current services of each were .reviewed. Trends which might affect the nature or level of services were identified. Costs and the nature of financing, and the services provided were reviewed and the potential effect of any change in governmental structure was briefly re- viewed. To permit maximum flexibility in planning future services, whenever feasible services and/or revenues and expenditures were identified by three separate subareas as shown on Map #2 included in this report. The three subareas when combined constitute all of the unincorporated 5.9 square miles pre- viously defined as the Grand Terrace area. Within that overall 5.9 square miles the three separate subareas can be generally defined as follows: Area #1 - all of the unincorporated area of Grand Terrace lying east of Interstate Highway 1SE. Area #2 - The major portion of the area lying between Interstate Highway 15E and La Cadena Avenue. Area #3 - The area situated west of La Cadena Avenue (La Loma Hills) plus a small section to the east of La Cadena Avenue south of Barton Road, but lying between La Cadena and I—ISE. Public Utilities Public utilities in the Grand Terrace area include telephone, gas, electric, refuse, water and sanitary sewer. Each is briefly identified and further comments offered whenever a change in governmental organization might affect the delivery or cost of the service. When the service is provided by pri- vate enterprise the gross revenues generated is estimated. When that ser- vice is provided by government, the basis of its financing is outlined. 17 Telephone Telephone services are provided to Grand Terrace by Pacific Telephone and Telegraph Company. The basic service is served by a 783 (Riverside) prefix. Because of the location of Grand Terrace midway between downtown Riverside and San Bernardino, many business and residence accounts use foreign ex- change lines (824 $ 825) from adjacent Colton to increase their free calling area. Even though Colton surrounds Grand Terrace on three sides, annexa- tion into the City of Colton would not automatically affect the exchange status. The Grand Terrace area would continue to be a part of the Riverside exchange with Colton service available only on an optional extra-cost basis. A change in the long standing exchange boundries would require study and hearings before the State Public Utilities Commission. Such changes can and have been made because of a change in community status, but the instances are comparatively rare. Gross revenue generated in the area is estimated by Pacific Telephone to be approximately $800,000. This total does not include interstate long dis- tance revenues specifically excluded from local taxation by law. Records do not show gross revenues by subareas. However, based on the registered voter count, rough totals can be estimated as follows: Area #1 . . . . . . . . $684,800 (85.6%) Area #2 . . . . . . . . 90,400 (11.3%) Area #3 . . . . . . . . 24,800 ( 3.1%) TOTAL . . . . . . . 800,000 Gas Southern California Gas Company provides natural gas service in the area. Gross revenues are estimated by the company to be $693,000. It should be noted that approximately one-half($342,000) of this gross is represented by sales to Southern California Edison Company for use in their Grand Terrace generating facility. The present shortage of natural gas could seriously impact gross revenues if deliveries for electrical generation were to be sharply reduced or curtailed. Within the overall area gross revenues break down as follows: Area #1 . . . . . . . . $656,000 Area #2 . . . . . . . . 22,000 Area #3 . . . . . . . . 15,000 TOTAL . . . . . . . . $693,000 Electric Southern California Edison Company supplies electric utility service for Grand Terrace and has a generating plant and substantial transmission facil- ities physically located in the community. 18 The City of Colton owns and operates its own electric distribution system. In the past when areas served by Southern California Edison have been annexed by Colton, the private system has been allowed to continue to oper- ate until the city was able and willing to purchase the system and incor- porate it into its public utility system. The length of time has varied according to the interest and financial condition of the city. Current gross revenues which would be subject to local taxation in the event of Grand Terrace incorporation are estimated by Southern California Edison Company to be $1,269,462. Within the overall area gross revenues break down as follows: Area #1 . . . . . . . . $1,064,291 Area #2 . . . . . . . . 183,883 Area #3 . . . . . . . . 21,288 TOTAL . . . . . . . . f1,269,462 Refuse San Bernardino County regulates private refuse haulers and their rates for all unincorporated areas. All services in the Grand Terrace area are pro- vided by four private haulers, one of which--Loma Linda Disposal--is by far the largest. Current records do not indicate the number of houses or busi- nesses which subscribe to refuse service. Because of the semi-rural nature of much of the community and its nearness to the Colton disposal site, only slightly over one-half of the dwellings are estimated to be service sub- scribers. Based on this estimate the approximate gross revenue generated is $53,000 annually. Records do not show the gross revenue by subareas since even the $53,000 total is an estimate. However, based on the regis- tered voter count rough totals can be estimated as follows: Area #1 . . . . . . . . $45,368 (85.6%) Area #2 . . . . . . . . 5,989 (11.3%) Area #3 . . . . . . . . 1,643 ( 3. 1%) TOTAL . . . . . . . . $53,000 Water Water for the Grand Terrace Community is provided by the Riverside-Highland Water Company (R.H.W.C.) , which is a privately owned mutual water company in business since 1898. Ownership is maintained by the distribution and issue of stock by the company. At present there are 5,325 shares of stock outstanding among the company's shareholders. Whenever a new home or sub- division (or any other type of use) is constructed, shares of stock must be purchased from the R.H.W.C. before water supply will be provided. The shares of stock are a function of the estimated water consumption by the new custo- mer(s) requesting service based on lot size. For example, lots less than 15,000 square feet require 1/2 share; lots larger than 15,000 square feet require a full share. Currently a 1/2 share sells for $375. A full share costs $750. 19 The company is governed by a Board of Directors consisting of nine people. The company has nine employees including a General Manager, maintenance per- sonnel, meter readers and staff performing billing, secretarial and engineer- ing services. Water is provided to the Grand Terrace area from sub-surface supplies. There are four wells which supply the system. They are driven to a depth varying from two to four-hundred feet. Additional water is available if needed from the San Bernardino Municipal Valley Water District. Four reservoirs are used as storage areas for water supply. Anticipating further growth in the area, the R.H.W.C. has applied to the San Bernardino Planning Commission for approval to construct a fifth reservoir. The planned capacity for the new reservoir would be 500,000 gallons. It is estimated that the reservoir can be operational about three to four months after initial construction is commenced. The service area of the R.H.W.C. includes all of Grand Terrace. 'There are about 2,000 domestic customers and approximately 1,900 acres of citrus agri- cultural land served in Grand Terrace. A few customers are served in River- side County and elsewhere outside Grand Terrace. The R.H.W.C. has stated that there is adequate water and piping to supply customer needs. The size of water lines extend from six inches as the smallest size pipe up to 30 inches for domestic lines and 36 inches for irrigation lines. The General Manager of the R.H.W.C. estimates the volume of water supply available is 8,500 acre feet capacity. Each water service provided to customers is metered. The only type of treatment provided is chlorination. Quality of water supplied is monitored by the California State Board of Health which performs inspections approximately every two years. The estimated quantity of water consumed is 275 to 300 gallons per day for each person obtaining water service. Costs to customers average $11 every two months for the meter charge and a flat rate of $8 charged every two months. Total revenue from customers was $375,000 in 1976. Based on the registered voter count, the approximate gross revenues can be broken into subareas as follows: Area #1 . . . . . . . . $321,000 (85.6%) Area #2 . . . . . . . . 42,375 (11.3%) Area #3 . . . . . . . . 11,625 ( 3.1%) TOTAL . . . . . . . $3751000 Sanitary Sewer At a total cost of approximately $6,000,000 the Grand Terrace area has recent- ly completed the installation of sanitary sewer laterals, and the purchase of present and future treatment capacity in the Colton Regional Treatment Plant. Property assessments and matching grants financed the construction of the sanitary sewer installation which includes County Service Area #70, Improvement Zone 11 and a portion of the La Loma Hills area west of La Cadena. 20 With minor exceptions the sewered area almost exactly coincides with that defined in this report as the Grand Terrace Community. Sewer assessments were payable immediately or in ten annual increments plus interest. The operational cost of the system is financed by a monthly service charge pay- able to the City of Colton. The City contracts to maintain all lines and treat the raw sewage for a monthly fee which must by contract be equal to that charged Colton residents for the same service. Public Works For the purposes of this inventory public works services will be defined as storm drainage, streets, transportation, street sweeping and street lighting. Storm Drainage The San Bernardino County Flood Control District's boundaries are County-wide. This agency was created by the State of California. It is not a county agency but is a quasi-state public agency. The District is responsible for pro- tection, development and conservation with regard to flood control. The District is organized into six flood control zones within the County of San Bernardino. Each of the six zones is represented by a Citizen's Advisory Committee. The purpose of each Citizen's Advisory Committee is to make recommendations to the County Board of Supervisors regarding tax rates, bud- gets, and flood control programs, including priority of projects for each Zone. Grand Terrace is located in Zone Z of the Flood Control District. The taxing limit capability of the District is 30� per $100 of assessed valuation. Monies raised by taxation within a zone must be spent in that zone. The purposes, organization and financing of this function would not be affected by annexation or incorporation. At the present time, there are several storm drains within the Grand Terrace area. These include the DeBerry storm drain, the Grand Terrace storm drain and the Barton storm drain. The DeBerry storm drain runs on DeBerry Street originating just west of Mt. Vernon Avenue. At this point it consists of a 48-inch line. It continues west on DeBerry Street and becomes a 60-inch line near Michigan Avenue. It then connects into the Barton storm drain. The Grand Terrace storm drain originates as a 48-inch line on Barton Road and ties into the Barton drain. The Barton drain originates as a 48-inch line and expands to 60 inches with- in the Grand Terrace area. Total past expenditures for the storm drains presently within Grand Terrace have been estimated by the Flood Control Dis- trict to be approximately one million dollars. 21 Streets The major function of the road division of the Transportation Department within the County Public Works Agency is the administration, planning, design, construction, maintenance, and land development coordination for the County road system. There are approximately 5,000 miles of road with- in the county. In Grand Terrace there are 31. 16 miles of county-maintained roadway for which a city would assume responsibility in the event of annex- ation or incorporation. The estimated cost of routinely maintaining the roads in Grand Terrace during fiscal 1976-77 was $41,183. The county also recently expended about $150,000 during fiscal year 1976-77 for a major program in Grand Terrace to resurface the streets along the route of the storm sewer installation completed in 1976. The resurfacing consisted of a one-inch thick plant mix paving grade asphalt cover. All streets in Grand Terrace carry almost exclusively residential traffic except for Barton Road and Mt. Vernon. The estimated average daily traffic for Barton Road, the major street, is 10,000 vehicles. The county maintains two traffic signals in Grand Terrace on contract basis with a private company. The annual cost for all contract maintenance is $3,700 per signal per year for a total of $7,400 within Grand Terrace. Street Sweeping At this time no program of regular street cleaning exists in Grand Terrace. Because of the semi-rural character of the generally curbless well-drained streets, there has been no apparent urgent need for such a program. The current and projected level of subdivision activity including new curb con- struction may raise the question of need in the near future. Street Lighting Southern California Edison conducted a field survey count of all street lights in the Grand Terrace area currently paid for through a tax rate im- posed by County Service Area SL1. The current annual cost of maintaining the 94 street lights is $8,248. By subareas the cost breaks down as follows: Area #1 . . . . . . . . $7,536 Area #2 . . . . . . . . -0- Area #3 . . . . . . . . 712 TOTAL . . . . . . . 8,248 Additional lights can be added or the area expanded by petition to and action by the Board of Supervisors. 22 Transportation The county supports the costs associated with the bus route which traverses Grand Terrace. This route is designated as Grand Terrace Route 19. The locations covered are Loma Linda Medical Center and Anderson on the east; Pico and Michigan to the south; and Grand Terrace Avenue to the west. The county share of the cost which is in addition to federal and state grants, is $30,000. The county share becomes a local responsibility in the case of incorporation or annexation. However, State monies are available for at least a part of this purpose. The Transportation Development Act (SB 325) enacted in 1971, and as amended in 1977, provides operating grants for a public transportation system(s) and related uses within counties and cities. The average amount available in San Bernardino County for 1977-78 from this source is $9.20 per capita. Based on Grand Terrace's voter registration population estimate of 8,634, the amount available would be $79,433, were it incorporated or annexed. The following table shows the distribution of grant monies for fiscal year 1977-78. CITY POPULATION OR PER CENT OF COUNTY MAXIMUM GOVERNMENT JURISDICTION TOTAL POPULATION ALLOCATION San Bernardino County Unincorporated areas 279,329 39.52% $2,570 402 Adelanto 2,403 .34 22,114 Barstow - 18,600 2.63 1713057 Chino 28,300 4.00 260,162 Colton 20,706 2.93 190,569 Fontana 23,850 3.38 219,837 Loma Linda 11,679 1.65 107,317 Montclair 22,651 3.21 208,780 Needles 4,175 .59 38,374 Ontario 65,630 9.29 604,227 Redlands 37,800 5.35 347,967 Rialto 32,250 4.56 296,585 San Bernardino 108,877 15.40 1,001,624 Upland 37,900 5.36 348,617 Victorville 12,650 1.79 116,423 Ridership levels for the bus serving Grand Terrace is relatively low. Information provided by the State Department of Transportation for route 19 indicates that the average operating cost is $292.95 per day. The average number of passengers is 36 a day. The total number of route miles covered in a day is 217 miles. The average total hours of bus operation per day is 12.65 hours. The net result is an extremely high operating cost of $8. 14 per capita as compared to $.87 within Colton on Lines 13, 15 and 16. The opening of the new Veteran's Hospital in Loma Linda, combined with current construction in Grand Terrace, may increase the ridership on Route 19. In any case Grand Terrace, if incorporated or annexed, could not alter the 23 bus service currently in operation in the community without approval of the San Bernardino County Transportation Commission and Southern California Association of Governments. Public Safety Public safety services provided in Grand Terrace include law enforcement, fire and animal regulation. Fire Services Fire protection and rescue service in the unincorporated area of Grand Terrace is currently being provided by the San Bernardino County Forestry and Fire Warden Department. At the present time, the nearest fire station is in Loma Linda. The closer Highgrove Station of the Riverside County Fire Department also responds to alarms in Grand Terrace when requested pursuant to a verbal agreement entered into by the two departments. Fire prevention inspections are being made by engine company personnel assigned to the Loma Linda Station under the direction of the County Fire Marshal using the Uniform Fire Code. Arson Investigations are conducted by trained personnel from the County Headquarters Station located at 3800 Sierra Way, San Bernardino. All regular fire personnel have been trained in Emergency Medical Service, but no trained paramedics at this time serve the Grand Terrace area. A proposal has been submitted through California Department of Forestry budget channels eventually to replace the Loma Linda Station when state monies are available. The recommendation is to relocate in the general area of Barton Road and Reche Canyon Road. At best this move will not take place for at least another six to eight years. Also, there is no assurance that the proposal will be approved at all levels of the budget process. Present manning levels, equipment, and distances to the intersection of Barton Road and Mount Vernon Avenue from the above referred to fire stations, and proposed sites are as follows: Loma Linda Station. . . . . . . . . . . . . . . . . 3.7 miles One pumper engine (one captain, one engineer, two firemen during peak fire season, balance are call personnel) Highgrove Station . . . . . . . . . . . . . . . . . . . . 2.3 miles One pumper engine, one squad (one man on duty, balance are call personnel) Barton Road $ Reche Canyon Road . . . . . . . . 1.9 miles (Proposed site to replace Loma Linda Station) 24 Law Enforcement At the present time law enforcement service provided by the Sheriff's Office in the Grand Terrace area is almost totally limited to responding to called-for services, with very little actual patrol time. When a unit is available for patrol, that unit is assigned to an area designated as "area 6," which encompasses West Colton, Slover Mountain, county unincorporated terri- tory of La Loma Hills west to Riverside Avenue and extending to the Riverside County line, Grand Terrace, county area of Reche Canyon, and the county area south of Norton Air Force Base and west of Tippecanoe. This 14-1/2 square miles is more than twice the size of Grand Terrace. As a basis for determining the desirable level of law enforcement service, misdemeanor and felony crimes were hand-tabulated by Sheriff's Office per- sonnel for the most recent fiscal year. The following table provides a summary of all 1,632 incidents reported within the Grand Terrace Community from July 1, 1976 through June 30, 1977. FELONY CRIMES MISDEMEANOR CRIMES 1. Homicide. . . . . . . . . . . 1 1. Battery . . . . . . . . . . . 17 2. Rape. . . . . . . . . . . . . 6 2. Petty Theft . . . . . . . . . 115 3. Robbery . . . . . . . . . . . 10 3. Disturbing the Peace. . . . . 332 4. Assault . . . . . . . . . . . 6 4. Exhibiting Deadly Weapon. . . 0 5. Kidnapping. . . . . . . . . . 1 5. Prowler . . . . . . . . . . . 53 6. Sex Violations. . . . . . . . 1 6. Annoying Phone Calls. . . . . 25 7. Burglary. . . . . . . . . . . 275 7. Indecent Exposure . . . . . . 2 8. Grand Theft . . . . . . . . . 22 8. Carrying Concealed Weapon . . 0 9. Check Violations. . . . . . . 6 9. Malicious Mischief. . . . . . 79 10. Grand Theft Autos . . . . . . 18 10. Drunk . . . . . . . . . . . . 8 11. Conspiracy & Fraud. . . . . . 0 11. Breaking $ Entering . . . . . 0 12. Embezzlement. . . . . . . . . 2 12. Trespassing . . . . . . . . . 0 13. Receiving Stolen Property 1 13. Vice. . . . . . . . . . . . . 2 14. Arson . . . . . . 1 14. Check Offenses. . . . . . . . 0 15. Narcotics $ Drug Violations 12 15. Driving Under Influence . . . 11 16. Other . . . . . . . . . . . . 626 TOTAL FELONIES . . . . . . . 362 TOTAL MISDEMEANORS. . . . 1,270 Animal Regulation Animal regulation service becomes the responsibility of a city upon annexa- tion or incorporation. Colton has its own animal regulation services and would assume this responsibility were Grand Terrace to become a part of that city. Should the Grand Terrace area incorporate the existing level of ser- vices could be continued through negotiation of a city-county contract. The county also would continue the licensing function. Through dog tag and other revenues it collected and would keep, the service would be provided a Grand Terrace city for no additional cash outlay. 25 Leisure Services Leisure services in Grand Terrace consist of library and parks and recrea- tion services, neither of which are currently provided directly in the un- incorporated Grand Terrace. Library Library service is provided throughout the county through a library district covering areas which do not have a locally provided municipal library. The service is financed through a tax levy of $1.524 per $100 of assessed valua- tion. Bookmobile services are provided within Grand Terrace, but the two nearest branches are in Loma Linda and Rialto. Colton has its own city financed and operated library. However, Colton is the only city in San Bernardino County having its own library system for which the county library district tax is also collected. The total collected within the City of Colton, approximately $80,000 is then reimbursed to the City for the operation of its library. Given this unique tax and reimbursement arrangement, neither incorporation nor annexation would affect the existing library tax rate. Parks and Recreation Neither parks nor community-oriented recreation services are currently pro- vided within the Grand Terrace area. Though there is now considerable sub- division activity there is no method for systematically acquiring park land through dedication or purchase monies. Such a procedure is authorized through the "Quimby Act" and could be enacted by the County for County Ser- vice Area #70, Improvement Zone H, or applied by Colton in the case of annexation, or by a new city when incorporated. A review of the plans of the San Bernardino Regional Parks Department indi- cated no development which would directly affect Grand Terrace. The only planned nearby regional park facility, near the intersection of Interstate Highways 10 and 15, was removed from the plan in July, 1977 by the Board of Supervisors. A possibility exists for a 200 to 300 acre regional park, Agua Mansa, on the Santa Ana River west of Grand Terrace. However, the facility is not contained in an adopted plan at this time. Social Services A variety of social services are provided for Grand Terrace through the San Bernardino County Environmental Improvement Agency, Health Care Services Agency, and the Law and. Justice Agency. Services of the latter agency would be unaffected by annexation or incorporation of the Grand Terrace area. 26 Environmental Improvement Agency Services Services provided by this Agency, which need not be affected by the local governmental organization in Grand Terrace, include mosquito and vector control and the licensing and inspection of food establishments. Continua- tion of these basic services would require the execution of a City-County contract in the event of incorporation. Additional services for licensing and inspecting trailer parks and providing housing code regulation and inspection can be provided by the Agency to an incorporated area at the request of a city. Both these services are pro- vided only after adoption of the appropriate regulatory codes. Fees collect- ed by the County support the services. No general nuisance, housing deterioration, or abandoned vehicle inspections or enforcement efforts are presently provided to Grand Terrace. Health Care Agency Services As is the case with the Law and Justice Agency, most services provided by this Agency are unaffected by local governmental structure. However, con- tinuation of these existing County services within an incorporated city does require the execution of a City-County contract since each city technically has the option of providing all or any part of the services through its own organization. Services provided include public health nursing, well-baby clinics, communi- cable disease control, and child health programs handled through the Colton office and the Colton School District. County hospital and mental health programs also are available. Land Use Controls Control of the use of land in Grand Terrace occurs through the application of planning, zoning, subdivision and building regulations. General Plan The San Bernardino County Planning Department recently completed a general plan for Grand Terrace following the area boundaries described in this report and prepared with active community involvement. No major revisions of zon- ing were required following the plan's adoption, since the proposed future land use generally followed existing usage patterns. Map #3 shows projected commercial and industrial land use within the Grand Terracd area. Proposed subdivisions are reviewed in detail by the County Subdivision Committee representing all interested services prior to their review by the Planning Commission. In the event of annexation or incorporation these functions normally become the responsibility of the City government. 27 Building Regulation The County Building and Safety Department currently provides plan checks, inspection of all new construction, and enforcement of the land use plan to assure compliance with zoning regulations. These services would become the responsibility of a city in the event of annexation or incorporation. However, a city may contract with the county to continue to provide the same level of service, with payment consisting of inspection and filing fees collected by the county. Tax Structure Following the determination of 1977-78 total assessed valuation all tax rates were adopted by September 1, 1977. Grand Terrace Combined Tax Rates Four tax code areas and portions of two others exist in the Grand Terrace area. Each of these areas could have a different combined tax rate. How- ever, there are actually only three separate but very slightly differing combined rates. The combined rates vary from a rate of $10.0657 to $10.28 per hundred dollars of assessed valuation. The exact composition of the three different combined rates is shown below: 6401 6447-48 6449 $ 6413 & 6750 Basic County Rate . . . . . . . . . . . $ 2.8356 $ 2.8356 $ 2.8356 Colton School District. . . . . . . . . 5.6217 5.6620 5.6217 Flood Zone 2. . . . . . . . . . . . . . .2866 .2866 .2866 S.B.Valley Municipal Water District . . .9500 .9500 .9500 Riverside-Corona Conservation District .0220 .0220 .0220 COUNTY SERVICE AREAS (Fire Protection) -38 .1820 . 1820 . 1820 (Fire Protection) -38G .1500 . 1500 .1500 (Administration) -70 .0009 .0009 .0009 (Weed Abatement) -70A .0169 .0169 .0169 (Street Lighting) -SL I -- -- . 1740 COMBINED TAX RATES . . . . . . . . $10.0657 $10. 1060 $10.2800 Effect of Annexation or Incorporation Upon annexation to another city or incorporation as a new city the tax rates established for the County Service Areas would automatically be abolished. Such action would result in a tax rate reduction of $.3498 per $100 of 28 assessed valuation for much of the area and a reduction of $.5238 for the area covered by the County Street Lighting tax. The City Council of the annexing or newly-created city could, if it chose, create a new street lighting district and essentially restore the existing method of financing street lighting, or it could finance these lights from general city revenues or special assessments. This tax rate reduction of $.3498 to $.5238 would be deducted from the city tax rate imposed by the annexing or newly-created city to determine the net tax rate increase or decrease. 29 CHAPTER IV ALTERNATE SERVICE LEVELS Each of the public services defined in Chapter III is reviewed and pro- jected at alternate levels of service. The cost implications of each service level are examined whenever that data is available. Methodology Each public service is reviewed in the same sequence as in Chapter III. The level of service most nearly corresponding to the existing previously defined level is identified as "level 1." Each additional alternative identified is labeled "level 2," "level 3," and so forth for as many levels as is necessary. Some services have no alternates to the existing level 1. However, others have up to five additional levels of service identified with a potential for still other combinations. The level number does not represent a ranking of the various alternatives. Whenever feasible service levels are defined independently of the govern- mental structure which might deliver that service. Thus either a County Service Area (CSA) , Community Services District (CSD) , or a newly incor- porated city might contract for a clearly defined level of street mainten- ance. However, the possibility of annexation to an existing city requires a separate level definition. This separate level was provided so that the annexing city could define its own level of service equal to that already provided its citizens. The annexing city is legally required to provide equal service throughout its residential and commercial areas. Comments relating to levels of service for annexed areas are taken from a November 9, 1977 City of Colton response to this draft report material. The response was reviewed and approved by the Colton City Council and the complete text of that response has been reproduced in Appendix V of this report. Municipal Advisory Council Input The service levels defined are the combined result of extensive agency interviews, consultant analysis and input from a public meeting of the Grand Terrace Municipal Advisory Council held September 12, 1977. At that meeting each service previously defined by the consultant was re- viewed and comments sought as to the level of service desired by resi- dents of the Grand Terrace area. Comments offered at the meeting which might impact service levels are briefly summarized by service area. Refuse. Any decisions regarding contracting or sole franchises should be the decision of a future city council in the event of incorporation. Storm Drainage. A better organized effort to obtain storm drainage 30 improvements through Zone 2 of the San Bernardino County Flood Control District was considered to be desirable in order to obtain improvements proportional to taxes paid. It was pointed out that the mayors of incorporated cities automatically become members of the Zone 2 Advisory Board. Strictly localized drainage, however, was discussed separately. Street Maintenance. Very little major maintenance work was done on Grand Terrace Streets from 1972 through 1976 because of the scheduled sanitary sewer construction. A major "catch up" program is currently being dis- cussed with the County which would affect future expenditure requirements. Street Sweeping. Municipal Advisory Council members requested alternate costs for street sweeping services on an every-six-months and a monthly basis. Street Lighting. The decision on methods of financing current and addi- tional street lights would be made later by the appropriate officials in the event of a change in governmental structure. Fire Service. As a minimum the cost of continuing the existing level of service and another with a station in Grand Terrace constantly manned by one employee and backed by volunteers should be provided. Other levels found to be practical should also be defined. Parks and Recreation. Emphasis should be placed on joint use with school grounds with future plans to light ball parks. Public Utilities Four of the six utility services provided Grand Terrace residents would potentially be affected by a change in the legal status of delivery systems. The breadth of effect, and the consequent level of service of each of telephone, gas, electric, refuse, water and sewer is covered in this sec- tion. Telephone As a privately owned utility regulated by the California Public Utilities Commission, there would be no impact on or ability to affect telephone service levels whether Grand Terrace incorporated, annexed or reorganized. Were the area to be annexed to Colton, however, unless extended area service was subscribed to by the telephone user, a call for city services could result in toll charges. In the event of annexation the City of Colton indicated that it would petition the PUC to change Grand Terrace from the Riverside to the Colton exchange. An equally acceptable solution would be to add Riverside exchange numbers to its city telephone numbers through which Grand Terrace residents and businesses could call into Colton. A franchise would have to be negotiated with Pacific Telehpone Company by a new city. 31 Gas No change in or impact on natural gas service would be caused by a change in legal status by Grand Terrace. In the event of incorporation a franchise would have to be negotiated with the Southern California Gas Company. Annexation would automatically extend the existing franchise. Electric Two potential levels of service could be the result of a change in the status of Grand Terrace. Since the City of Colton owns and operates its own electric distribution system, and has the legal right to acquire the facilities of Southern California Edison Company, the potential of two levels of service is discussed below. While annexation to Colton would not necessarily cause any change--upward or downward--in level of service, the fact of a potential change in ownership has caused some discussion. Level 1. In the event of remaining as a County Service Area, or reorgan- izing as a Community Services District, or separately incorporating as a city, there would be no change in service provider and no revision of service level. A reorganization of the area, to enable Loma Linda to include a part of Grand Terrace also would present the same result. Level 2. Were Grand Terrace in part through reorganization, or partially or wholly through annexation, to be incorporated into the City of Colton, the City then could legally acquire the Southern California Edison distribution system in Grand Terrace. In the recent past Colton has acquired only isolated pieces of the SCE system varying lengths of time after small annexations. There is no experience on larger scale annexation-acquisition actions. Refuse Four service level potentials exist for provision of refuse service. Each is intertwined with the legal entity chosen by the citizens of Grand Terrace to provide services, although several modifications also exist. Level 1. The existing multiple collection permits could be continued under any legal arrangement. Not all houses and businesses are required to subscribe to a refuse removal service and only about 500 of them do. Level 2. One exclusive permit could be granted by a CSA, CSD or a City of Grand Terrace. Reorganization into Loma Linda could have the same result. Based on standard municipal practice and experience, better con- trol over cleanliness, traffic and rates could be achieved, as well as possibly slightly lower rates, were the exclusive permit alternative selected. Level 3. An alternate to Level 2, securing the same results but with 32 somewhat tighter control and revenue potentials for a city-,but with enforcement difficulties--is assumption of the legal responsibility by a City of Grand Terrace and contracting the service to a single contrac- tor. This device is often used to enforce the desire to have universal pick-up service. Level 4. Annexation to the City of Colton would result in an appreciable change in level of service. Under existing refuse ordinances and regu- lations all homes and businesses would be required to suscribe to the City-operated refuse service to provide a healthy and esthetic environ- ment. The service is available for residential areas for $4 per month with twice weekly pickup. Upon annexation, existing private haulers would be notified that they would have three years to discontinue service, at which time the City would provide mandatory refuse collection for all residences and businesses in the annexed area. Residential charges in Colton are currently $4 monthly for twice-weekly mandatory service compared to $2.50 monthly for once a week optional service in the Grand Terrace area. Water Two alternatives are available for the level of service provided for water distribution. Level 1. This level would continue service being provided by the River- side-Highland Water Company. No change in either cost or service level should be encountered. Such an arrangement would prevail under any dis- trict arrangement, or incorporation. Level 2. Annexation to the City of Colton would require a later determination as to long run benefits for provision of coordinated ser- vices and planned orderly development according to the need of the city and possible acquisition of Riverside-Highland Water Company's services in these areas. The City of Colton states that it presently has more than adequate water capacity to serve these areas. A City of Grand Terrace also would possess the legal authority to acquire, absorb and directly operate the R.H.W.C. were it to so desire, setting its own rate structure. Such is not considered herein as being a short- range possibility. Sanitary Sewer The existing long-term contract between County Service Area 70, Improve- ment Zone H for sanitary sewer line maintenance and effluent disposal probably precludes any short-range revision. Level 1. Maintenance of the current level of service, provided by exist- ing long-term contract by the City of Colton, would require or permit no 33 changes. Level 2. Extensions of existing sewer trunk lines, and providing ade- quately sized lines could cause either a City of Grand Terrace, City of Colton, or Improvement Zone H to adjust charges, assessments or rates in the medium term future, depending on rapidity and pattern of growth. These realities will have to be faced under whatever organizational arrangement results. But builder-driven improvements can be financed by direct charges such that no significant general financial or service impact should be felt. Expansion of the capacity of the Colton regional sewage treatment plant, or addition of tertiary treatment requirements, also may eventually have to be faced, thus driving up both operating and capital costs, and thus in effect increasing services to level 2. A City of Colton letter response to draft report copies circulated for comment stated, when referring to the report projections: Considering Colton's growth and resultant demands on treatment capacity at the Water Quality Control Plant, the projected [Grand Terrace] growth may not be achievable. This statement raises questions about interpretation of the terms of the contract relating to the capacity of treatment capacity which has been purchased by present and future Grand Terrace area residents. Public Works The public works functions of storm drainage, streets, street sweeping, street lighting and transportation are considered as to levels of service and cost in this section. Storm Drainage Three potential levels of service can be fairly clearly discerned. In no event would the major drainage projects or maintenance be affected, i.e. , those facilities and potential projects of sufficient size to be included within the San Bernardino County Flood Control District program would remain in force as a responsibility of that agency. Thus, all levels of service contain this constant. Level 1. With the probability of continued mixing of curbed and uncurbed streets, hopscotch development and varying levels of newly developed and extant residential lots, significant local drainage problems will develop. Such are not within S.B.C.F.C.D. responsibilities. At present the County Road Department expends only incidental, and minor, effort and expense on these. These minor drainage problems predictably will increase in the near-term future. Developers will solve only some of these local drainage problems, in turn causing others. Level 1 contemplates maintenance 34 of the status quo, with, in effect, no expense. This probability is un- likely. Level 2. An estimated $15,375 for the first year would be required for the alleviation of "nuisance"--type minor local drainage problems as above described. These monies would be in addition to that expended under a street maintenance contract which would include only such minor attention as unclogging drains, diverting overflows, repairing drainage-related street culverts and curb/gutter repair and modification for drainage purposes. The detail of these additional costs are described in level 3, Street Maintenance. Level 3. A City of Grand Terrace also could provide its own storm drain- age maintenance in conjunction with its own closely allied street main- tenance. The base cost, excluding administrative costs, would be $14,375. Such an arrangement is described in level 40 Street Maintenance. Level 4. Annexation of the area to the City of Colton would transfer the responsibility for this program to that City to provide the same level of service it provides other similar areas. The alternative of utilizing redevelopment agency authority to solve existing storm drainage problems would also become available. City General Fund revenues would finance this service. Street Maintenance Street capital requirements are contained in Chapter V hereof. This dis- cussion of three possible levels of service is thus restricted to mainten- ance. Allied storm drainage is as discussed in the immediately preceding section. The level of capital construction undertaken will, of course, have an up- ward or downward pull on the cost of both storm drainage and street main- tenance. The amount of "catch up" major maintenance street work under- taken by the County prior to any local governmental structure change will have an even greater effect on future street maintenance budgets. Level 1. Present service levels being provided by the County Road Depart- ment appear to be inadequate. However, this condition is largely the result of planned neglect prior to the recent major construction of sani- tary sewer lines. Some increase in the level of maintenance should now be expected regardless of what direction the area moves in restructuring local government. Level 2. An estimate has been prepared based on the assumption that the County of another city might contract to provide street maintenance ser- vice to an incorporated Grand Terrace. The City of Loma LInda has ex- pressed an interest in providing mutually advantageous contract services when feasible. Estimated current costs follow: 35 2 Maintenance Workers @ $850--3/4 time . . . . . $15,300 Fringe Benefits @ 25 0. . . . . . . . . . . . . . 3,825 Administrative and Supervision Salaries. . . . . 4,000 Total Personnel Costs. . . . . . . . . . . . . . . . .$23,125 1-3/4 ton truck--12 mos. @ $185. . . . . . . . . $ 2,250 Misc. Patching Materials, Supplies 4 Signs . . . 6,500 Total Other Operating Costs. . . . . . . . . . . . 8,750 Sub-total Operating Costs. . . . . . . . . . . . . . .$31,875 Contract Traffic Signals . . . . . . . . . . 7,400 Contract Road Work . . . . . . . . . . . . . . $33,510 Total Contract Road Work . . . . . . . . . . . . . . . 40,910 Total Operating Budget . . . . . . . . . . . . . . . .$72,785 *Contract work assumes an average pavement width of 34' and a 15-year cycle of slurry, chip seal, overlay and re-striping with more heavily traveled streets more often. Street striping and curb painting, in the limited areas where such would be needed and not covered by the re-striping as part of re-paving, is included in the basic $31,875 cost. Level 3. This estimate provides the same basic service as level 2, but with the addition of resources for also providing the drainage program described as level 2 storm drainage. The operation budget adds to the level 2 street maintenance budget: 2 Maintenance workers @ $850--1/4 time . . . . . $ 5,100 Fringe Benefits @ 25. . . . . . . . . . . . . . 1,275 Administrative and Supervision . . . . . . . . . 1,000 Added Personnel Costs. . . . . . . . . . . . . . . . .$ 7,375 Additional Pipe, Concrete and Materials. . . . . $ 8,000 Added Material Cost . . . . . . . . . . . . . . . 8,000 Total Added Cost . . . . . . . . . . . . . . . . . . .$15,375 Level 2 Street Maintenance Operating Budget. . . . . . . . 72,785 Total Street and Drainage Operating Budget . . . . . . . .$88,160 Level 4. Level 4 service anticipates annexation to the City of Colton which would extend its existing level of street maintenance services to include the Grand Terrace area. The City of Colton indicated that this standard will be above that currently provided or identified in other levels, especially in the area of street striping and signing. Cost would be paid through the City's General Fund. Street Sweeping Street sweeping service is desirable as growth intensifies. Four levels 36 can be discerned. Level 1. No street sweeping services are currently provided by San Bernardino County in unincorporated areas. Level 2. Sweeping of every street in Grand Terrace every six months under a contract .between a City of Grand Terrace and a private contractor would cost approximately $700 the initial year. Each year would escalate, as shown in Chapter VII. Level 3. Raising the frequency of the city contract to once a month would increase the cost by $3,300 the first year to a total annual charge of $4,000. Level 4. Based on a twice-monthly sweeping of all streets, the annual contract cost would be $8,000. Level 5. In the event of annexation the annexing city would provide the same residential and commercial area sweeping cycle in force for the balance of the city--every other week in residential areas. Cost would be covered by the basic City General Fund tax rate. Street Lighting Street lighting service is limited currently in the Grand Terrace area. Three service levels seem to be reasonably discernible. Level 1. Presently there are 94 street lights financed by County Service Area SL1 within Grand Terrace. This area can be expanded, new ones formed that are non-contiguous, and lights added, all under established SCE tariffs and District tax procedures. Level 2. Street lighting could be extended by a City of Grand Terrace through either per-lot assessment or property tax procedures. Each pro- perty owner would thus pay a set annual fee. A city has some flexibility of procedure which a County Service Area does not. No direct costs would be incurred and lighting could be included as desired by petition. Level 3. Upon annexation to Colton its municipally-owned electric utility could acquire the Edison system and install street lights. Street lights are financed as a part of the Electric Department budget and electric charges. It would be an integral part of the acquisition process to pro- vide such a service, or the city would have to make alternate--and possib- ly interim--arrangements with SCE. Transportation Bus transportation is restricted to one current route traversing Grand Terrace. 37 Level 1. The present service seems to be more than adequate under present circumstances. It could not be materially affected by another local organ- izational arrangement without considerable procedural and political effort being expended and time consumed. The current $30,000 annual subsidy cost would be paid by a city in the event of incorporation from SB325 revenues available to incorporated cities. Level 2. Annexation to the City of Colton would make that City's Dial-a-Ride Program available to Grand Terrace residents. The program funded through SB325 charges only 50� per ride. Official representation on the regional bonds which plan transportation service would also become immediately available to the area. Public Safety The public safety functions of fire and emergency medical services, law enforcement and animal regulation are reviewed in this section. Fire Service Fire protection and rescue service in the unincorporated area of Grand Terrace is currently provided by the San Bernardino County Forestry and Fire Warden Department. A wide variety of levels of service reflecting differing governmental structures, varying agencies potentially providing varying services and different physical facility requirements have been analyzed. The following six levels have been selected as the most repre- sentative of feasible cost effective alternatives. Level 1. Should the Grand Terrace area remain essentially the same, unin- corporated and unannexed while continuing to grow rapidly, the San Bernar- dino Forestry and Fire Warden Department would plan to upgrade fire pro- tection by proposing a fire station in Grand Terrace "in the next two (2) or three (3) years."1 The new station, its equipment, personnel and operations would be funded through the County Service Area 38 tax rate. This rate is currently set at 33. 2� of its 38¢ legal permitted maximum per $100 of assessed valuation. The Grand Terrace area would incur no additional operating costs or contract changes. Service provided would continue to include medical aids, resuscitator calls, vehicle accident extrications, and the like. Paramedic service would not be included in this cost. The exact operation- al cost of the Grand Terrace station would be dependent on the budgeting process of San Bernardino County and other CSA 38 requirements. Level 2. If the Grand Terrace area were to incorporate and then desired to contract with the County Forestry and Fire Warden Department to operate 1Fire Protection and Rescue Service Alternatives for Grand Terrace; September, 1977; San Bernardino County Firestry and Fire Warden Department. 38 from within the new city it would be necessary to build and furnish a new fire station. Station fire equipment and personnel would be furnished through the County contract. According to figures provided by the County Department this service level would provide two firemen on each shift, backed up by paid-call fire fighters. Annual operations charges, based on current costs, break down as follows: 1/2 Battalion Chief . . . . . . . . . . . . $15,000 3 Fire Captains . . . . . . . . . . . . . 76,000 3 Fire Fighters . . . . . . . . . . . . . 50,000 Paid-call Fire Fighters . . . . . . . . . . 12,000 Overhead and Administrative (15%) . . . . . 26,250 Total Personnel Costs. . . . . . . . . . . . . .$179,250 Fire Apparatus & Equipment. . . . . . . . . $10,000 Operating Expenses. . . . . . . . . . . . 12,000 Total Other Costs . . . . . . . . . . . . . . . 22,000 Total Operating Costs . . . . . . . . . . . . . .$201,250* In addition to the annual costs, there would be a start-up cost to acquire land, construct, furnish and improve the property around a new fire sta- tion. Fire capital costs are reviewed in Chapter V. Level 3. Level 3 expands the service outlined in level 2 to also include a fully trained and equipped paramedic unit for which the additional costs are shown below: 3 Fire Apparatus Engineers. . . . . . . . . $70,000 3 Fire Fighters . . . . . . . . . . . . . . 60,000 Overhead and Administration (15%) . . . . . 21,000 Total Personnel Costs . . . . . . . . . . . . . .$151,000 Paramedic Mobile Unit and Equipment . . . . $ 5,000 Operating Expenses. . . . . . . . . . . . . 5,000 Total Other Costs . . . . . . . . . . . . . . . . 10,000 Total Added Costs . . . . . . . . . . . . . . . .$161,000* Level 2 Operating Costs . . . . . . . . . . . . . 201,250 Total Operating Costs . . . . . . . . . . . . 362,250 Level 4. Should Grand Terrace desire the exact same level of fire protec- tion and paramedic services provided in level 3, but without incorporation into a city, it could be provided through a combination of the base CSA 38 tax rate and a new CSA 38 improvement zone. The improvement zone would establish a separate tax rate to fund the con- struction, furnishing and equipping of the fire station in Grand Terrace including all fire and paramedic equipment. The improvement zone would Fire Protection and Rescue Alternatives for Grand Terrace, San Bernardino County Forestry and Fire Warden Department, September, 1977. 39 also pay the $161,000 paramedic cost identified in level 3. The CSA 38 $.332 tax rate would continue to fund the existing level of fire protec- tion. The first year capital costs to the new improvement zone would be the same as identified in level 2 for the provision of a completely con- structed and furnished fire station. Fire and paramedic apparatus and equipment could be furnished for an additional $140,000. Capital costs and financing alternatives are reviewed in Chapter V. Level S. Level 5 service envisions incorporation and the furnishing of complete fire and paramedic service through contract with the City of Colton. Colton already has plans to construct a fire station at Washing- ton and Barton at the northeast corner of Grand Terrace. It is conceivable that should a long term agreement be feasible, a site just up the hill on Barton Road might provide better coverage for the total affected area, in- cluding portions of Colton. The location of the station would clearly have to be based on the best interests of Colton residents. Should these interests not be incompatible with Grand Terrace needs the possibility for significant savings for both areas appears probable. Level 6. In the event of annexation to Colton, Grand Terrace fire protec- tion and paramedic service would be provided by the Colton Fire Department. Though the City of Colton did not furnish an anticipated date for construc- tion of the planned nearby Washington and Barton Road fire station, the following service level data was furnished. The City stated: The level of fire protection would include: 1) residential areas--response by two engine companies and a paramedic unit; 2) commercial areas--response by three engine companies and a paramedic unit; 3) paramedic and rescue responses would be provided through the paramedic unit with an engine company back up. The department also has a second paramedic equipped as a back up unit. This unit would respond to additional calls should the primary unit be on call. A chief officer would respond to all structural fires or any incident requiring two or more engine company response. Outside of the construction cost of the third fire station for which land has already been purchased and is available, all costs could be assumed under the general tax rate. Law Enforcement Law enforcement service is currently provided by the San Bernardino Sher- iff's Department as described in Chapter III. All alternatives, except for annexation to an existing city, envision that the service will continue to be provided through the Sheriff's Department whatever level of service is decided upon. Level 1. The existing service is described in Chapter III and provides one car "when a unit is available" to patrol an area more than twice the size of Grand Terrace. In the absence of any change in governmental structure the level of service can be expected to continue until the growth 40 of Grand Terrace or an increase in the budget demands or permits an increase in patrol coverage. Level 2. This service level provides one marked patrol unit and one officer in the Grand Terrace area,, 24 hours a day. In addition, all back- up investigative and support personnel and equipment would be made avail- able as required. This level is identical to that contained in the County contract with the City of Loma Linda and could be provided an incorporated city, CSA or CSD. Exact costs are recalculated annually in great detail. This data has been reviewed, but is not reproduced in, this report due to its detailed nature. Total costs for the provision of personnel and all services and equipment is estimated by the Sheriff's Department to be $151,851 for the 1977-78 year. An additional charge of $5,012 is made for the optional helicopter service, bringing the total current cost for this level including helicopter service to $156,863.* Level 3. An optimum level of service for the area to be served would be to provide two marked patrol units 16 hours a day and one for eight hours. Having two units on duty during certain times of the day would allow the Department to adjust hours and patrol when and where needed, while still having one unit free to handle traffic and called-for services. All back- up investigative and support personnel and equipment would be made avail- able as required. Current annual costs for this level are estimated to be $204,743. When the $5,012 helicopter option is added the total current cost for this level of service is $209,755. Level 4. Comments furnished by the City of Colton indicate law enforcement services roughly equivalent to level 2 would be furnished by the Colton Police Department in the event of annexation. Specifically, the City of Colton response of November 9 stated: If the unincorporated areas south of Colton were to annex to the City of Colton, Colton would provide the same total police services for all citizens and businesses presently provided within the City of Colton. This would include patrol services, calls for [sic] services and inspection of commercial establishments. This would be accomplished by placing one police unit in the unincorporated areas south of Colton on a 24-hour basis. Helicopter back up patrol services would also be provided. Animal control services, detective services and back up administrative costs would also be provided as a part of the basic tax rate. In the opinion of the police chief of the City of Colton, these provisions would provide a much higher level of police service than the residents and business- men of the unincorporated areas south of Colton present- ly receive. Service levels defined in Memorandum of August 26, 1977 from Sheriff Frank Bland to Special Districts Department and costs provided in Memorandum of September 15, 1977 from Patrol Captain P. L. Pounders to PAS. 41 Animal Regulation Regulation of dogs and other non-feline animals would fall in two levels. Level 1. In the event of incorporation the current arrangement and ser- vice level could be continued. The County provides tag collection and animal pickup as needed for collected fees. Level 2. Upon annexation Colton's animal regulation program would be extended to Grand Terrace. Basic fees and services are similar to that provided by the County. Leisure Services The three leisure services of library, parks and recreation are discussed below. Library Three possible service levels exist for this service. Level 1. Continuation of the current bookmobile and County library use can continue with or without incorporation. No added services or costs are involved. Annexation to Loma Linda would also not likely result in any change in the current service. Level 2. The City of Grand Terrace could probably effectively press for a County library branch were it to create a civic center complex and pro- vide land upon which a branch could be built by San Bernardino County. Costs would be funded through the existing County-wide library tax rate, but service would be materially improved. Level 3. Annexation into the City of Colton would effectively exclude the County from building a branch in Grand Terrace since the city has its own library system. The service level in the Grand Terrace area would be determined by policies of the City of Colton. The same County tax rate would apply in all circumstances. City of Colton comments concerning library service are included in their November 9, 1977 response and reproduced as Appendix V. Parks Four discernible levels of service can be seen for parks acquisition and development. Level 1. No parks are currently provided in the Grand Terrace area and there are no existing methods established for acquiring and developing parkland. Level 2. Through a CSA, CSD Improvement Zone H, or a newly incorporated city the area could locally adopt the provisions of the "Quimby Act" 42 requiring subdividers to dedicate parkland or provide an equivalent cash contribution toward a fund to be used for parkland acquisition and develop- ment. Using recently adopted County Ordinance No. 2126 as the model for enacting this procedure, it is estimated that the Grand Terrace area could acquire and reasonably develop 25 acres of parkland from land yet to be developed--provided the procedures are legally established very soon. Operating costs are defined in Level 3. Level 3. This level anticipates enactment of legal procedures to obtain and develop 25 acres of parkland as in level 2, and to enlarge the total system through the purchase and development of an additional J.5 acres to provide a future park system of 40 acres. The following breakdown of operating costs is based on current budgeting estimates. It would have to be adjusted upward for inflation allowances until the first year it would be introduced into the new city's budget. The maintenance budget below would permit adequate maintenance of 10 to 15 acres of developed parkland and should be sufficient to carry through the remaining two years of the projected five-year Grand Terrace budget and would be applicable during this period for either level 2 or level 3 service. Administrative costs would have to be added when the full extent and nature of all city operations become apparent. 2 Maintenance Workers @ $850 . . . . . . . . . . $20,400 Fringe Benefits @ 25%. . . . . • . . . . . . . . 5,100 Total Personnel Costs. . . . . . . . . . . . . . . . .$25,500 1-3/4 ton truck--12 mos. @ $185. . . . . . . . . $ 2,250 Supplies & Equipment . . . . . . . . . . . . . . 5,000 Total Other Costs. . . . . . . . . . . . . . . . . 7,250 Total Operating Budget . . . . . . . . . . . . . . . .$32,750 v Level 4. Insofar as discernible, it appears that annexation to the City of Colton would provide parks service roughly equivalent to Level 2; that is acquisition and development of parklands funded from developers' land and cash donations under the Quimby Act. Capital outlay and development costs related to the purchase and develop- ment of additional land as defined in level 3 are reviewed in Chapter V. Recreation Three levels of community recreation services have been defined. Level 1. There currently is no centrally organized and conducted communi- ty recreation program in the Grand Terrace area. Level 2. This level contemplates a modest level designed to centralize recreation planning, the formation of teams, scheduling of events, pro- vision of supervision and coordination of the use of grounds with the 43 school system. Little direct cost for materials and recreation supplies would be possible at this level. The primary expense would be for hiring a coordinator for a four-month period each year at $1,000 monthly. Indi- rect fringe costs, transportation and miscellaneous supplies would bring the first year cost of this program to $7,500. Level 3. Indications are that annexation to the City of Colton would result in a service similar to level 2. Regular city revenues, tax rate and nominal service charges would finance the service. Added comments by the City of Colton are contained in Appendix V. Social Services Most social services are the responsibility of San Bernardino County and the local governmental structure normally has little practical affect on their delivery system. However, some possible exceptions are noted below. Environmental Services Existing services include mosquito and vector control and the licensing and inspection of food establishments. Level 1. Existing services can continue to be performed under each possible local government structure through the County at no change in cost. In the event of incorporation a contract would need to be executed with the County to assure continued service. Level 2. Basic level 1 services would be provided, but supplemented by the licensing and inspection of trailer parks and housing code regulation and inspection. These services would require the local adoption of addi- tional regulations and appropriate fee schedules. Inspection services could be provided by County contract with the County collecting and retain- ing the fees as payment for the services. Level 3. Upon annexation to the City of Colton the level of services and costs would continue to be furnished through San Bernardino County. Health Care Services Health care services include public health nursing, well-baby clinics, communicable disease control, and child health programs. Level 1. These existing services would continue under any local govern- mental structure, though a city-county contract would need be executed in the event of incorporation. Land Use Controls Control of land use is provided through San Bernardino County departments concerned with the application of planning, zoning, subdivision and build- ing regulations. 44 General Plan The Grand Terrace area has a recently adopted general plan and subdivision review is the responsibility of San Bernardino County. Level 1. This level anticipates continuing the same services through the County. Level 2. This level anticipates the employment of a planning consultant on a monthly retainer fee basis to provide technical staff expertise to the Grand Terrace City government. The planning consultant would review and make recommendations on zoning matters and all proposed subdivisions. A first year retainer cost for these services is estimated to be $9,000. Major special studies, such as updates or revisions for general plan ele- ments, would be extra cost requirements. For the latter reason an addi- tional allowance is provided with a projected total $12,000 cost. Level 3. Colton would make all services the responsibility of the Colton Planning Commission and City Countil, upon both of which the nearby annexed residents would be eligible to serve. These services would be funded from the City's General Fund. Building Regulation This service currently provides plan checking, complete inspections of new construction and policing of the area to assure land use and zoning compliance. The level 2 option broadens the service somewhat to include some environmental service areas. Level 1. This level anticipates continuation of the existing services as provided by the County of San Bernardino whether to the area as it now exists, a CSA or CSD, or through contract to an incorporated city. Fees collected by the County would finance the service in all cases. Level 2. While continuing to contract for technical building inspection services this level anticipates the addition of an Environmental Coordina- tor. Duties for this position would include assisting in the coordination of zone change and subdivision plat processing in the planning process. Environmental field duties would include investigation of nuisance com- plaints regarding the maintenance of property and unsightly conditions, inspection of minor drainage or flooding problems, and enforcement of appropriate general nuisance ordinances. Supplemental service would be provided in the area of more thorough zoning and land use enforcement through more frequent field inspections by this individual, who would be thoroughly familiar with permitted land use in. Grand Terrace. First year costs follow: 45 Environmental Coordinator Salary . . , . . . .$15,000 Clerical Support Salary (1/4 time) . . . . . . 1,800 Total Salaries . . . . . . . . . . . . . .$165800 Fringe Benefits @ 250. . . . . . . . . 4,200 Total Personnel Costs. . . . . . . . . . . . . . . .$21,000 Automobile--8,000 miles @ 17¢. . . . . . . .$ 11-360 Maint. and Office Supplies . . . . . . . . 1,000 Total Other Costs. . . . . . . . . . . . . . . . 2,360 Total Operating Budget . . . . . . . . . . . . . . .$23,360 Level 3. Level 3 anticipates annexation to the City of Colton, in which case the handling of permits and inspections would become a responsibility of that City's Department of Building and Safety funded through permit fees. Cost Calculations/Conclusions Appendix III presents the basic expenditure projections for a potential incorporated city. Much of the data is drawn from information presented in this chapter. That summary also serves as the basic set of expendi- ture figures from which various levels of service are matched to appropriate organizational alternatives to determine the total potential cost of each model. 46 CHAPTER V CAPITAL CONSTRUCTION REQUIREMENTS This chapter provides information on the public capital construction needs for the Grand Terrace area over the next five years. The primary focus of the capital needs review concerns the direct costwhich must become the responsibility of any local government, city, CSA or CSD. However, needs such as major storm drainage are also reviewed even when no direct local financial responsibility is involved because of their importance to the quality of life in the area. Methodology Consultant personnel have personally contacted and interviewed agency of- ficials concerned with all of the areas covered in this review. Numerous reports and budget documents were also reviewed and analyzed. The follow- ing five areas were identified for additional comments relating to capital construction or purchase requirements: 1. Storm Drainage 2. Street 3. Fire 4. Parks S. Civic Center Storm Drainage Zone 2 of the San Bernardino County Flood Control District has projected several storm sewer projects that were indicated as being required for the Grand Terrace area. These projects are designated as: The Van Buren Storm Drain The DeBerry Storm Drain Extension The Grand Terrace Storm Drain Extension The 8th Street Storm Drain The Barton Drain Improvements The estimated current total cost of these projects, all of which would be borne by the District, are shown following Map #4, which illustrates the location of existing and proposed major storm drains. 47 ESTIMATED CONSTRUCTION COSTS FOR STORM DESCRIPTION DRAIN PROJECTS (August 1977) 1. Van Buren Storm Drain (Pipe sizes 48, 60, 66, 6911) $ 829,775 2. DeBerry Storm Drain (Pipe sizes 30 and 4811) 74,320 3. Grand Terrace Storm Drain (Lined channel) 319,730 4. 8th Street Storm Drain (Pipe sizes 30, 51, 6311) 390,270 5. Barton Storm Drain (Pipe sizes 30, 3911) 104,970 Subtotal . . . . . . . . . . . . . . . . . . . . . . . $1,719,065 Utility relocation, construction contingency @ 15% . . . . . . 257,860 Construction total . . . . . . . . . . . . . . . . . . $1,976,925 Administration, engineering, inspection @ 15%. . . . . . . . . 296,540 ESTIMATED TOTAL FOR ALL PROJECTS . . . . . . . . . . . $2,273,465 The timing for installation of the above major storm drainage facilities would be a function of when future development occurs, as well as the community's attitude about potential run-off problems. Direct community representation on the Zone 2 Advisory Board might make the District more aware of the Grand Terrace storm drainage needs. In any case, Grand Terrace can minimize direct expenditures to the community for storm drain costs by requiring developers to install these lines as a prior condition to obtain- ing construction permits. Additional local drainage work might be included in a local operating bud- get as fully described in alternate storm drainage and street maintenance service levels identified in Chapter IV. However, that work is designed to meet smaller problems on a routine annual basis and thus is not summar- ized in this listing of needed capital construction. All costs hereinabove are obligations of the San Bernardino County Flood Control District. While it may not be able to finance the projects, the obligation remains regard- less of organizational status of Grand Terrace. Streets The projected growth of the Grand Terrace area clearly indicates the need for future major street system reconstruction to adequately serve the coming increase in traffic. The Transportation Division within the County Department of Public Works has recently initiated a multi-year plan for major road projects that will be required for new construction, repair and rehabilitation. There are five projects in the Grand Terrace area that are of sufficient importance to have been considered as major projects scheduled over the next six years. These projects are: Barton Road--La Cadena Avenue/I-15; Barton Road at Southern Pacific RR; Barton Road Overcrossing at I-15; Barton Road--Mt. Vernon Avenue/I-15; Vivienda Avenue at Southern Pacific Railroad It should be noted that the six-year planning process is relatively new within the Department of Public Works. Therefore, all information with 48 regard to these projects should be considered current and accurate but subject to change in accordance with future modifications in the planning, budgeting or finance processes. If Grand Terrace were incorporated, many of the projected projects could be provided by the City, financed from revenues to the City secured from the fuel tax and vehicular registration fees. In addition, state law re- quires that any road projects planned and funded for any particular fis- cal year by the County must be completed without cost to any cities that may have incorporated during that fiscal year. Although these projects are priorities of the Department of Public Works, they are not yet budgeted, are subject to change and Grand Terrace, if incorporated as a city, could alter the schedule to fit its desires and financial capacity. The street improvement projects are shown on the following page on Map #5, and listed below together with the total costs allowing for anticipated inflation. The footnote for each project shows the "local share"--that amount that an incorporated City of Grand Terrace would be required to fund. ESTIMATED TOTAL PROJECT COST BY FISCAL YEAR TOTAL PROJECT NAME 1978-79 1979-80 1980-81 1981-82 1982-83 ALL YEARS Barton Rd.-La Cadena/ I-15. . . . . . . . 0 0 0 0 $110,0001 $110,000 Barton Rd. at So. Pacific RR. . . 0 0 $ 50,0002$ 70,0002 0 120,000 Barton Rd. Over- crossing/I-15 . . . 0 $ 3,0003 0 0 0 3,000 Barton Rd, Mt. Vernon Ave./I-15 . . . . . $51,0004 $40,0004 $333,0004 0 0 424,000 Vivienda Ave. at So. Pacific RR. . . 0 0 0 $300,0005 0 300,000 TOTAL PROJECT COSTS $51,000 $43,000 $383,000 $370,000 $110,000 $957,000 TOTAL LOCAL SHARE $ 8,670 $ 9,800 $ 61,610 $ 37,000 $110,000 $227,080 1Local Share 100% ($110,000) ; 2Local Share 10% ($5,000+$7,000) 3Local Share 100% ($3,000) ; 4Local Share 17% ($8,670-$6,800-$56,610) 5Local Share 10% ($30,000) Fire Fire service capital requirements vary widely depending upon the choice of local governmental structure and the type of contract or other method- ology by which service is provided. These alternatives are discussed in Chapter IV and the capital costs associated with each identified there. The construction and furnishing . of a fire station is estimated to cost $200,000, based on current similar stations just designed for San Bernardino County. Allowing for a 20% inflationary increase prior to construction time, a total of $250,000 is allowed. This cost does not include fire apparatus and equipment or site acquisition. Should the station be built by a newly incorporated city the site would be on the civic center land 49 separately budgeted for in this chapter, If the station were to be built by a CSA or CSD an additional $50,000 should be budgeted for the separate site acquisition. The purchase of complete fire equipment and paramedic equipment is estimated to cost $140,000. Parks Through a CSA, CSD Improvement Zone H, or a newly incorporated city the area could locally adopt the provisions of the "Quimby Act" requiring subdividers to dedicate parkland or provide an equivalent cash contribu- tion toward a fund to be used for parkland acquisition and development. Using recently adopted County Ordinance No. 2126 as the model for enact- ing this procedure, it is estimated that the Grand Terrace area could acquire and reasonably develop 25 acres of parkland from land yet to be developed--provided the procedures are legally established very soon. This constitutes a modest level of service compared to a nationally recog- nized community goal of 5 acres per 1,000 population. Using this admitted- ly high national goal indicates a "need" for 75 acres of parkland for the fully developed area of 15,000 people. However, 25 acres represents the absolute maximum parkland which could be acquired and developed without additional tax supported financing. The alternate service level defined in Chapter IV as "level 2" envisions the enactment of legal procedures to obtain and develop 25 acres of park- land through the Quimby Act and then to enlarge the total system through the purchase and development of an additional 15 acres to provide a future park system of 40 acres. This total, still well below the national goal of 75 acres, could provide an adequate diversified local park system especially if planned in conjunction with area schools and other open areas. Based on current estimated purchase costs of $12,000 and develop- ment costs of $16,000 per acre this supplement to the entire system would cost $180,000 to purchase and another $240,000 to fully develop for a total expenditure of $420,000. Such a major capital cost would almost certainly have to be financed by the issuance of general obligation bonds, approval of which requires a favorable two-thirds vote. Proceeds from the early authorization and sale of such bonds could be used to establish a park acquisition and develop- ment fund from which the entire program could be financed over the next several years of active subdivision development. Monies collected from subdividers in lieu of parkland would also accrue to this fund. This type of financing would assure a new city the ability to purchase land in advance of its parkland development, allowing savings and permitting a better choice of park sites. For the purposes of calculating the cost of meeting annual debt service created by the issuance of bonds, the pro- jection calculates a 6% interest rate, 20-year maturity annual level amortized bond issue. Annual debt service requirements for this $420,000 bond issue would be $36,620. 50 Civic Center The creation of a civic center of public buildings and community meeting facilities in a park-like setting is increasingly being utilized as a method of building community identity and pride. This type of comprehen- sive civic center would become a consideration only in the event of the incorporation of a City of Grand Terrace. Nevertheless, because incor- poration is one of the alternative local government structure possibili- ties, the consideration and costs involved in the creation of a civic center are reviewed in this section. Elements which might be included in a community civic center include a city hall with city council meeting facilities, public safety facilities, library, post office, justice courts and county offices, and a park area. Each of these elements as they might apply to an incorporated Grand Terrace is discussed below. Following these comments there is a total review of all land, building and financing requirements to accomplish such a Civic Center. City Hall The community's city hall would house the administrative staff of the municipal government and provide city council and community meeting facili- ties. The total floor space required for these facilities can only be accurately determined when the exact nature of the potential city's opera- tions are defined. The nature and extent of contract operations versus those operated directly by the new city government would significantly impact the space requirements. Loma Linda, in the early stages of civic center planning, provides an indication of what a new city of Grand Terrace might require. Loma Linda is similar in size and population to the poten- tial City of Grand Terrace, though the potential for future population growth is considerably greater for Grand Terrace. First estimates for the combined Loma Linda City Hall/Fire Station esti- mate building requirements of 15,000 square feet, of which 7,500 is for city hall and city council meeting facilities. These gross figures are expected to be revised upward, especially for the fire facility. The final total gross square footage will likely be between 20,000 and 23,000 square feet with 8,000 to 10,000 devoted to city hall and city council meeting facilities. For the purposes of projection this report assumes a future gross total space of 10,000 square feet for a Grand Terrace City Hall and City Council meeting space requirements. The total would have to be adjusted upward or downward following the final determination of govern- mental service contract alternatives and staffing requirements. Current building costs of $50 per square foot indicate a facility construction cost of $500,000 before allowing for inflation. Public Safety Facilities In the forseeable future the "public safety facilities" mentioned above would likely consist of a fire station. Whether the new city provided 51 the facility and site for direct or contract operations, the size of the facility should be sufficient to accomodate future growth. If constructed in a civic center_, the station should be planned to allow for future expan- sion to house local police operations. Police facilities, while included in the preliminary design of a public safety building, could remain un- built indefinitely if the city were to continue to contract for law en- forcement services. The preceding chapter outlines a number of fire station construction and equipment cost alternatives. The final cost would depend upon the alter- native level of service selected. Post Office The creation of a community post office is one of the most effective ways to establish community identity. The provision of a central site in a civic center is among the most effective strategies for persuading the Postal Service to construct such a facility. Other than the land purchase, no additional cost would accrue to the community. Library By providing a central civic center site location, a City of Grand Terrace should be able to attract a county community library branch. The provision of such a central community facility would be financed from the county-wide library tax. Buildingsof such a type and size to serve Grand Terrace usually contain a 100-seat auditorium, thus reducing the type of community meeting facilities which might otherwise have been required in a city hall building. Examination of the County Library standards indicate that future Grand Terrace growth would justify a "medium" branch as opposed to the "small" branch planned for the Loma Linda Civic Center. This assumption is based on the future Grand Terrace population estimate of 15,000. Comparative standards for small and medium library branches in San Bernardino County are shown following: 52 COUNTY BRANCH COUNTY BRANCH STANDARD (SMALL) (MEDIUM) Population 5,000-10,000 10-20,000 Annual circulation 20,000-40,000 40-60,000 Hours Open 50-60 50-60 Reference Questions 3,000-5,000 5,000-7,000 Staff--FTE Sr. Librarian Librarian 1.00 1.00 Lib. Assistant 1.00 1.50 Clerk 1.00 1.50 Page .75 1.00 Total 3.75 5.00 Book Stock 7,000-15,000 15-25,000 Reader seating 30-40 40-60 persons persons Parking 15-25 cars 25-30 cars Auditorium 100 seats 100 seats Existing Branch Locations: Adelanto Apple Valley Joshua Tree Big Bear Lake Arrowhead Bloomington Loma Linda Herperia Trona Yucca Valley Needles Justice Courts and County Offices Due to the proximity of the Grand Terrace area to San Bernardino and to the existing Colton and Mission Justice Courts it is not expected that additional facilities would have to be provided in a Grand Terrace civic center. Should any such court facilities be located in the community civic center in the future, they could be housed in a planned general county building through slight modifications and additions. Park Area The amount of open space provided will impact both the cost and the attractiveness of any Grand Terrace civic center. The planned Loma Linda Civic Center contains six acres, including park space. Such an arrange- ment is desirable. A portion of the monies designated previously herein for park acquisition could be used to pui0h ase and develop that part of the civic center site which would function as a park. Based on the construction of a City Hall, Public Safety Facility designed for possible future expansion for police facilities, a post office and a medium size county library branch in a park-like setting, it is estimated that a seven-acre site should be acquired. This site, due to its necessary proximity to major streets, will cost more than the $12,000 per acre esti- mated for park land in Chapter IV. A current cost of $17,000 per acre is utilized for the acquisition. Thus the seven acres would cost around $119,000. Site development would occur in stages in conformance with an over-all plan executed with the construction of each separate building. 53 SUMMARY OF CAPITAL IMPROVEMENT FUNDING The following data is summarized as it would apply to a newly incorporated city. If annexed to an existing city certain expenses such as a civic center would be reduced or eliminated but a separate site would have to be acquired for a fire station. Local street capital costs would be borne by San Bernardino County if the area were to continue as a County Service Area or become a Community Service District. In summary, these costs represent the greatest possible costs for the related levels of service. Some adjustments are made in the report as required to reflect the type of local government organization and level of service under discussion. PROJECTED ANNUAL COSTS 1978-79 1979-80 1980-81 1981-82 1982-83 STORM DRAINAGE Major capital costs to be borne by S.B.County Flood Control District STREETS (Gas Tax Funds) Barton Rd.Overcrossing/I-15 -- $ 3,000 -- -- __ Barton Rd.-Mt. Vernon/I-15 $ 8,670 $ 6,800 $ 56,610 -- -- Barton Rd. at SPRR -- -- 5,000 $ 7,000 -- Vivienda at SPRR -- -- -- 30,000 -- Barton Rd.-LaCadena/I-15 -- -- -- -- $110,000 TOTAL STREETS 8,670 9,800 61,610 37,000 110,000 FIRE Station $ Furnishings $250,000 -20 year bonds -- $ 21,798 $ 21,798 $ 21,798 $ 21,798 Fire $ Paramedic Apparatus $ Equipment $140,000 -15 year bonds -- 14,415 14,415 14,415 14,415 PARKS Level 1 - Funded thru subdivider dedicating only - 25 acres Level 2 - Supplemented by 15 developed add. acres $420,000 -20 year bonds -- $ 36,620 $ 36,620 $ 36,620 $ 36,620 CIVIC CENTER PURCHASE AND SITE DEVELOPMENT 7 acres - $300,000 -20 year bonds -- $ 26,157 $ 26,157 $ 26,157 $ 26,157 CITY HALL Including contingencies $600,000 -20 year bonds -- $ 52,314 $ 52,314 $ 52,314 $ 52,314 SUMMARY OF TOTAL BOND FINANCING 1978-79 1979-80 1980-81 1981-82 1982-83 LEVEL 1-Civic Center,City Hall, Fire Stn. and Level 1 Parks -20 year bonds -- $ 100,269 $ 100,269 $ 100,269 $100,269 LEVEL 2 - Civic Center, City Hall, Fire Stn. and Level 2 parks - Total Bond Requirements -- $ 136,889 $ 136,889 $ 136,889 $136,889 LEVEL 3 - Civic Center, City Hall, Fire Stn. Fire $ Paramedic apparatus $ equip. and Level 1 Parks - Total Bond Requirements -- $ 114,684 $ 114,684 $ 114,684 $114,684 LEVEL 4 - Civic Center, City Hall, Fire Stn. Fire $ Paramedic apparatus 8 equip. and Level 2 Parks - Total Bond Requirements -- $ 151,304 $ 151,304 $ 151,304 $151,304 54 CHAPTER VI SERVICE DELIVERY ALTERNATIVES United States-style democracy operates generally under the precept of majority rule. To decide which way any major decision will go also generally requires a ballot measure. To develop such clear-cut decisions, by majority vote, compels identification of, discussion about, and ulti- mate decision among alternatives. This chapter will attempt both to identify and explore the alternatives which are available to the people of Grand Terrace for providing local government services. Methodology A review of six alternative approaches that are available under state law and the advantages and disadvantages of each follow. The six pat- terns identified are: 1) Maintenance of the status quo as a County Ser- vice Area with no added services or changed service levels; 2) continua- tion of a County Service Area (CSA) with expanded services; 3) creation of a Community Service District (CSD) ; 4) governmental reorganization; 5) annexation to Colton and, 6) incorporation of a City of Grand Terrace. County Service Area This section presents and considers the present situation, the County Service Area. Maintenance of the Status Quo This first alternative is retention of that which presently exists, both as to level of service and organizationally. In essence, retention of the combination of several types of districts, generally advised on by the Municipal Advisory Council, but operated by the County, would be maintaining the status quo. No changes in financing or services would be made. Maintenance of everything in a static condition is very probably next to impossible. The Local Agency Formation Commission staff on October 18 wrote, in calling a LAFCO hearing for December 14 on the status of Grand Terrace: Staff feels that on this issue the Community has the following options: 1. It can recommend that the Grand Terrace Community be included within the City of Colton Sphere of Influence, and this would mean that in the long range the urban services for Grand Terrace would be supplied by the City of Colton. 55 2. It can recommend that on the basis that Grand Terrace is or wishes to be an in- dependent community that it be left out of the Sphere of Influence of Colton and be given its own Community Sphere. In this event, the Community must define what it perceives to be the Grand Terrace Community, and explain to the Commission the public entity or source from which it expects to receive needed present and future urban services. It shall be the position of the Staff that as a Community becomes an "urban" area, it should become (in its own self interest) more than a combination of county and special dis- trict urban services. It should either become a multi-purpose special district, or incorporate into a city, or annex to a city capable of supply- ing urban services needs. The full text of the LAFCO staff letter from which the above is extracted is reproduced herein as Appendix IV. From the above statements it becomes eminently clear that the Grand Terrace area will not likely continue as a CSA. In fact, due to annexation capabilities of a city, Grand Terrace may only have two alternatives available: annexation into Colton or incorpora- tion. However, all other alternatives need to be discussed and considered, especially in view of the fact that the LAFCO is charged with the responsi- bility of assessing all information. The County Service Area is thus dis- cussed on the next several pages. Advantages. Maintenance of the CSA unchanged would probably act to hold down costs, and services. Nothing else favorable can be said for this alternative. Disadvantages. Added services to meet problems bring added costs, even though such a procedure may save significant expense in the long run. The major disadvantage, however, is that no immunity to piecemeal annexation is available to a CSA. Thus the fact that the City of Colton surrounds Grand Terrace makes piecemeal annexation highly likely once the moratorium on such small annexations is lifted. Such very probably will occur at the conclusion of the January 11 Grand Terrace-Colton sphere of influence hear- ing continuation. Another disadvantage of the current status is a diversion of what would be local monies derived from state subventions and local taxes into the County General and Road Funds. Also, there are only limited possibilities for home rule under a CSA. Expanded Services Through the County Services Area In the event the community of Grand Terrace chooses to remain an unincorporated territory and form a County Service Area to 56 provide the services desired, it could accomplish this requirement in one of two ways: 1) Form a new County Service Area or, 2) remain as County Service Area 70-"H".Both entities could provide the same services in the same manner under the power and authority of the County Board of Supervisors as the CSA Board of Directors. Formation Process. In the event that the community chose to form a new County Service Area, the general procedures would be as follows: 1. The initiation of the formation of a County Service Area would first have to be met by application to the Local Agency Formation Commission. Such appli- cation may be made by a petition signed by 10% of the registered voters or property owners within the area in consideration or by resolution by the Board of Supervisors filed with the Local Agency Formation Commission. In the event that all review processes find the proposal favorable and LAFCO approves of the formation of the County Service Area, the matter is then filed with the Board of Supervisors for a formation of the County Service Area. 2. The formation process to the Board of Supervisors may be initiated by the following: a) By written request signed by two members of the Board or, b) a resolution adopted by majority vote of a governing body of any city in the County of less than 4,000 population or c) a petition signed by not less than 10% of the registered voters resid- ing within the area. After receipt of the written request or petition the Board of Supervisors would then fix the time and place for a public hearing on the establishment of the service area. 3. At the hearing, the Board of Supervisors may alter the service area boundaries as proposed to exclude any areas which may not be benefitted. After the hearing, if a written protest has not been initiated by at least 60% or more of the registered voters or 50% of the owners of the land within the proposed service area, the Board may then form the service area by resolution without calling for an election. However, within 60 days from the adoption of such resolution if any petition signed by 10% or more of the registered voters is filed with the Board, the Board, after reconsider- ing the resolution, must either rescind the resolu- tion or call for an election of voters residing within the proposed service area. At this election the majority of the qualified voters must vote in favor of the issue in order for the service area to be formed. 57 A County Service Area or Improvement Zone within the Grand Terrace Community could provide all those services provided by the Government Code Statute, including police protection, fire protection, park and recreation facilities and services, library facilities and services, television translator facilities and services, and any other government services which the County is authorized by law to perform and which the County does not also perform to the same extent on a County-wide basis. Also included is water service, sewer service, pest or rodent control, street and highway lighting, street and highway sweeping, refuse and garbage collection, animal control and ambulance service. Within this form of government the community would continue to receive those ser- vices provided by the County and may choose to augment the services under the authorized services listed above. Generally speaking, those services which the County would continue to provide are mental health services, library services, transportation services, flood control ser- vices, law enforcement, street services, health care services, services provided by the Courts, and other services provided by the Environmental Improvement Agency. The issue, of course, is what credit, if any, a CSA would get for "basic" services provided it as part of a "County-wide service" as listed above, if that service is augmented by the CSA. CSA Administration A County Service Area (CSA) is administered by the Board of Supervisors as the governing body and normally has a locally established Advisory Commission or Council appointed by the Board to advise it on the matters concerning the operation of the CSA. Types and levels of service are generally established by the Board of Supervisors for a community through recommendations of the Local Advisory Commission and the County Staff, after reviewing the needs of the area involved and its ability to finance those services desired. The Grand Terrace area currently is a CSA with a Municipal Advisory Council (MAC) . The CSA can include a series of Improvement Zones and special assessment districts to supplement service levels normally provided by the County or to add services not provided. Advantages. The major advantage of the CSA is an ability to pick and choose, with considerable specificity, services to be provided. The advantages of County staff, with all its specialized expertise being available, is a significant one. Disadvantages. Complaints are often heard of non-responsiveness to highly localized issues because of the County providing the staff for such selected services. Obviously, little home rule is possible. Costs generally are high, as will be seen later in this report in Chapter VII. Too, state subventions and local taxes are not necessarily "kept at home." 58 But the biggest disadvantage remains--no possibility for retention of the CSA--for piecemeal annexation to Colton would be probable. Thus a total solution to local governance and services would not be arrived at. Community Services District The third alternative is the Community Services District available under State law. The Community Services District (CSD) is a legal pub- lic entity governed by a Board of Directors elected by the voters of the community served by the District. This type of district and its Board of Directors has no relationship to the County Board of Super- visors, and exercises complete local control. Advantages. A fairly complete range of services can be provided by a CSD. A major degree of home rule also is possible. Disadvantages. No state subventions can be gained by a CSD. But probably more importantly, while a CSD can have a sphere of influence provided it by a LAFCO, the actual protection it would afford would be minimal. Thus the prospect, again, of dismemberment of any CSD created, by piecemeal annexation to the City of Colton would be a distinct proba- bility. Discussion of CSA and CSD Since these two formats for providing local government services are similar in many ways the discussion of the services provided, the way in which each would be delivered, and the way in which each would be financed is contained in the next several sections. The material herein is drawn liberally, and many times literally, from a very comprehensive memo prepared by Dale Bailey, Administrative Analyst in the Special Districts Department. Financing Generally Sources of revenue for both the CSA and the CSD are generally limited to local taxes. For certain services user fees may be charged. Also, certain types of grants are available to CSA's and CSD's; however, when available, the area may not be successful in obtaining such grants due to the high level of competition for such monies. Specific Services The format followed in Chapter IV hereof generally is followed in the following sections. The memo utilized herein was the County Special District Department response to the MAC request for service delivery alternatives sent to each of Colton, Loma Linda and the SDD of the County. Public Utilities. The public utilities of gas, telephone, electric, and sewer would remain unchanged under a CSA. It is possible for a County 59 Service Area to assume responsibility for domestic water service. How- ever, this usually only occurs if service is substandard or incapable of being performed under the existing circumstances, and the serving company wishes to dispose of the system. Such is not indicated by the present Grand Terrace circumstances. Thus water service would remain the same as currently provided by the Riverside-Highland Water Company. Both the CSA and the CSD could exercise authority to provide water service, if the R.H.W.C. wished to dispose of its system. Sanitary Sewers. The County Service Area would continue to maintain the existing long term contract between CSA 70, Improvement Zone "H" and the City of Colton, to provide for sewer line maintenance and effluent dis- posal. Periodic discussions with the City will be required to maintain and insure adequate mutual capacity for the future. Contract revisions may be required from time to time. Contract administration would be provided by Special Districts Department staff. A Community Services District would probably assume control of the exist- ing contract that CSA 70, Zone "H" has with the City of Colton for sewer line maintenance and treatment. The administration of this contract then would become the responsibility of the CSD staff. Refuse. This service could remain as currently provided by several pri- vate haulers who obtain permits through the County to operate within Grand Terrace. In the event that the County Service Area chose to change this arrangement, it could enact a legal change to require collection per- mits, or to establish an exclusive permit for more standardized and controlled refuse pick-up service. The cost to administer any change in program of this nature would be minimal and could be handled by the Special Districts Department. The policy guidelines under such an arrangement would be subject to review by the MAC. A Community Services District, through its local Board of Directors, also could establish a legal change in permits, by exercising its legal author- ity to administer matters relating to the collection and disposal of garbage or refuse. Costs of administering this type of program would be the responsibility of the CSD and its staff. Storm Drainage. Problems which are generally identified as "nuisance" situations could be addressed in accordance with the service needs of the area and be provided, at increased cost, by the County Service Area. Alleviation of such "nuisance-type" minor local drainage problems could be handled by the County Service Area by contract administered by the Special Districts Department fot the express purposes of unclogging drains diverting overflows, repairing drains, culverts, curbs and gutters. A sufficient property tax would be required to fund the contract at the requested level. For the CSD similar services could be provided at similar taxes, but the contract would have to be drawn by the CSD attorney and administered by 60 the CSD staff. Street Maintenance. If desired, a County Service Area could undertake to provide any extended level of maintenance and street improvement work beyond that which the County presently provides. The levels of service identified in Chapter IV could be made available under a Service Area concept, and costs would vary according to the level of service and whether services would be provided by contract or by County Service Area employees. If the Service Area chose to contract for the services to be provided, the contract could be monitored by the Special Districts Depart- ment, with minimal review through a local district advisory commission. The costs would be funded through a local property tax in accordance with appropriate budgets. A Community Services District also may provide street improvements, main- tenance, and repair to the streets within its jurisdiction, subject to the consent of the Board of Supervisors. Those levels of service identi- fied in Chapter IV hereof could be provided by a CSD. The costs to fund the desired level of service would be raised from a CSD property tax, as established by appropriate budgets. Any work performed by a CSD staff also would have to be similarly financed. Street Sweeping. This service could be provided by the County Service Area under contract with a private contractor at the costs indicated in levels two or three of Chapter IV. The contract would be monitored by the County Special Districts Department. These costs would be funded through a local property tax. Street sweeping may be provided by a CSD in the same manner as stated for the Service Area above, with expenses also paid from property taxes. Street Lighting. This service would continue to be provided by County Service Area SL-1. Generally, Area SL-1 covers those tracts with street lights. Other developed areas are not included. This Service Area is administered by the County Special Districts Department. The street lighting district is expanded when new developments are made within Grand Terrace. The property tax rate for CSA SL-1 then pays for those street lights provided. Additional lighting could be recommended through the MAC to the Special Districts Department and, if found appropriate, added lights installed at no additional charge to the Community. Tax revenues would, of course, have to be adequate to so finance and necessary tax rate increases applied.to meet all costs, whether caused by energy costs, added lights or other expenses. A Community Services District has the legal authority to provide street lighting services to that area within its boundaries. Presently installed street lights and any additional ones would be under the administrative con- trol of the CSD staff, who would contract with the Southern California Edi- son Company for installation, operation and maintenance of the lights. The cost of this service would be funded by the CSD tax. The existing 94 lights would cost approximately $8,250 per year. These costs and the tax rate probably would increase rapidly as currently developing subdivisions are completed and new street lights added. 61 Transportation. Bus transportation would generally be restricted to the services provided by Omnitrans operated out of San Bernardino. No change would be caused by a CSA or CSD. Fire Service. Fire protection of Grand Terrace could be maintained at the current level provided by CSA 38. Any increase in service could be provided through a contractual arrangement with CSA 38 and additional property taxes levied sufficient to pay for increased levels of service. Any increases in service could approximate the same levels identified in Chapter IV hereof, or any combination thereof. There would be no additional cost in terms of personnel provided or monitoring of this contract, which would be done by the Special Districts Department. A CSD could choose to assume total responsibility for fire protection services or allow fire protection to continue to be provided by County Service Area 38. Increases in levels of service could be provided by separate contract with CSA 38. Such contractual arrangements would have to be funded by local property tax dollars levied in the CSD. Law Enforcement. The County Service Area could contract with the County Sheriff to provide an extended level of police protection to Grand Terrace in excess of that already provided. Such added services would be funded from a local property tax of a rate appropriate to cover such ser- vice. The cost involved in the implementation of such a program would generally be identical to those costs established in Chapter IV hereof by the Sheriff's Office. There would be no additional costs in terms of administering this contract, which would be handled through the Special Districts Department of the County. Extended law enforcement services could be contracted through the County Sheriff in the same manner as described for a County Service Area for a CSD. The costs for such services would be funded by a local property tax. Thus the two are identical, except that local administration by a locally controlled CSD staff would be possible. Added costs would be incurred to finance the administrative staff to administer the contract. Animal Regulation. Animal control services would generally remain the same through a CSA as currently provided by the County animal control program. If the community chose to increase its level of service such would generally require a part-time person qualified as an animal control officer with the ability to issue citations to violators. Costs of such a program would generally run around $5,000 per year with an additional cost the first year of approximately $3,000 for a used vehicle for the enforcement officer. The Community Services District would retain the existing County animal control program as a CSD does not have the legal authority to provide ani- mal control services. Library. Through the CSA arrangement library services would generally remain as currently provided through the County Library. Grand Terrace 62 could request that the County establish a County library branch in the community, but such an action would be up to the Library Department and the Board of Supervisors as to whether or not such expanded service could be provided. A CSD could choose to continue the services provided through the County library program. If deemed desirable, the CSD could extend its library services through its legal authority to build and maintain library buildings, and operate library service. Any such increase in facilities and services would have to be funded by local property taxes. Parks. A system of parks could be established through a County Service Area or through the existing Improvement Zone "H", much the same as outlined in Chapter IV hereof. The utilization of the Quimby Act, which would require subdividers to dedicate park land or provide equivalent cash contributions, would be a recommended method for establishing a minimal park system within the Grand Terrace community. In the event that the community chose to establish one or more parks such normally would require additional park maintenance personnel. However, maintenance could be provided by contract and would generally incur the same level of costs as the maintenance services provided by a County Service Area staff. Annual maintenance of park property would typically cost $2,000 per acre. A system of parks could be established by a Community Services District in the same manner as mentioned above for the County Service Area. Costs would be the same as those identified for the CSA. These monies would come from a special district property tax. Recreation. If the community chose to establish a recreation program in the community such could then be provided through a County Service Area or a Community Services District. Appropriate personnel would be needed to develop and provide those services desired. A combination of parks and recreation services generally would then require that a park and recreation manager be hired at a rate sufficient to provide such services. The SDD staff feels that the capital costs presented in Chapter IV hereof appear proper. Recreation personnel would cost approximately $13,500 per year per person through either a CSA or CSD. Additional Services. The added services categorized in Chapter IV as social services, environmental services, health care services and land use controls of general plan maintenance, and building regulation under either a CSA or CSD would continue to be provided through the County as they are currently, with no additional cost to the community. Summary--CSA/CSD. The aforecited report by the Special District Depart- ment staff summarizes the CSA and CSD appropriately as follows: A County Service Area designed to implement the above mentioned services would then generally require that the Service Area hire and provide for staff necessary to establish the contractual services stated above. 63 Again, depending upon the level of service, all of these could be handled generally by contract to be monitored by the Special Districts Department within the County. Any capital construction requirements incurred as the result of the increase of additional levels of service would be handled by the construction division within the Special Districts Department and would generally be covered through the normal administrative overhead charged against such services by this division. A Community Services District would be able to provide all those services listed providing an appropriate tax rate were established to cover the incurred costs. These costs would include additional items not neces- sarily stated above, such as: 1. Professional legal services; 2. Accounting and fiscal control; 3. Architectural and engineering services; 4. Insurance and other miscellaneous expenses. Additionally, both the County Service Area and the Community Services District in their formation process would incur the costs of an election. This election would be necessary to establish the tax rate for the former and necessary to establish the district and elect the Board of Directors for the latter. Conclusion--CSA/CSD A rapidly urbanizing area such as Grand Terrace will almost certainly demand a variety of local government services. A CSD providing those services incurs most of the same expenses as an incorporated city, but without substantial state subventions available to a city. If the exist- ing level of County-provided major services as fire, police and street maintenance is considered acceptable for the Grand Terrace area then a CSD would provide a vehicle for greater local control and the ability to increase certain types of services. However, when the costs for increasing major services are the same or greater for a CSD as to an incorporated city, but with the city having significantly greater potential financial resources, there is little advantage in not incorporating. Finally, only incorpora- tion provides total protection from small partial annexations which might eventually effectively eliminate incorporation of the remaining area as a viable alternative. The above review summarizes the CSA/CSD alternatives. Costs are estimated and summarized for these alternatives in Chapter VII. The next alternative --reorganization--is discussed in the following section. Reorganization It has been suggested by some persons and officials that Grand Terrace be divided between Colton and Loma Linda. To do so would require the approval of each of the City Councils of the cities of Loma Linda and 64 Colton, and of the Board of Supervisors. The division would require the City of Colton to de-annex Reche Canyon lying between the Grand Terrace area and the City of Loma Linda. Then a mutually agreeable north-south boundary in the Grand Terrace area would have to be decided on. All un- incorporated land lying west of that boundary would then become part of the City of Colton, while unincorporated land to the east of that boundary would become a part of the City of Lama Linda. Were this alternative to be considered seriously it would be highly desirable for the City of San Bernardino to enter into the arrangement by withdrawing from and restricting its south boundary to Interstate Route 10. Such an agreement would require San Bernardino to agree to de-annex that part of its current city limits extending just south of I-10 near its intersection with I-15. San Bernardino would, in return, secure an agree- ment that Loma Linda would not seek to change its sphere of influence to I-10. Advantages. Division of the area along these general lines would provide logical service access. Expansion of both Colton and Loma Linda would provide each some economics of scale. Recognition of the urbanization of the area and inclusion in a city would enable all to "get about their business" of fully developing their respective service systems within relatively permanently fixed and stable boundaries and planning areas. That is the purpose of the "sphere of influence" legislation. And the overhead of a fourth city in the area would be obviated. Other access- service advantages on a function-by-function basis can be readily seen by re-reading Chapter III hereof with this alternative in mind. Disadvantages. Unanimous consent of three, and preferably four, political governing bodies is necessary. Such decisions are rare in government. Further, the apparent lack of any real consultation with the residents of Grand Terrace, not to speak of the de-annexed areas of Colton and possibly San Bernardino City, undoubtedly would raise cries of "star chamber proceedings," Munich-like partition agreements, and undemocratic procedures. Lawsuits and petitions for referenda undoubtedly would abound. At best the procedure could take years, at worst it could be stalemated or thwarted entirely. Such a procedure, while legally permissible under a recently enacted state governmental reorganization statute, has seldom been successfully implemented in California under a preceding less liberal law or elsewhere in the U.S. The procedure requires no elections but does require the con- currence of each of the existing City Councils and the County Board of Supervisors. The failure of any of the three--and in this case preferably four--bodies to approve the identical specific plan automatically results in rejection. This plan has been brought to the attention of some affected officials. There is an apparent lack of interest on the part of all governments, making this alternative somewhat academic. The City Council of Loma Linda has, at least initially, expressed disinterest in such an approach, as illustrated by its letter of response to service system requests made by the Grand Terrace MAC, provided as Appendix VI. 65 Commentary. The probability of the reorganization alternative is probably as politically remote as it is logical. For the long term solution to problems and economic viability of each of Loma Linda and Colton this alternative is quite desirable. But short-term achievability can be considered most problematical. Annexation to Colton Under current law the City of Loma Linda cannot annex any of Grand Terrace due to an intervening strip of Colton--Reche Canyon. Since the City of Colton completely surrounds Grand Terrace, save the Riverside County boundary line, annexation to that City would be a relatively simple legal procedure. Securing a favorable vote at referendum and extending services expeditiously may, however, be another matter. Under the California Con- stitution annexation cannot take place across a county line, since no city may encompass parts of two or more counties. Thus, Colton cannot surround Grand Terrace, nor can the City of Riverside intercede. Colton thus potentially is in an all or nothing situation. However, in Chapter III hereof this study divided Grand Terrace into Areas 1, 2 and 3 (See Map #2) generally defined as follows: Area #1--all of the unincorporated area of Grand Terrace lying east of Interstate Highway 15-E. Area #2--the major portion of the area lying between Interstate Highway 15-E and La Cadena Avenue. Area #3--the area situated west of La Cadena Avenue (La Loma Hills) plus a small section to the east of La Cadena Avenue south of Barton Road, but lying between La Cadena and I-15E. Partial Annexation It is thus conceivable that Colton could annex only Area #2, only Area #3, both Areas #2 and #3, or all of Areas #1, 2 and 3. It has to so desire, petition LAFCO to so do, secure the approval of that body, and then secure a majority vote in the area. Once annexed the area is co-equal with the pre-existing areas of Colton and, by law and court decision, must be provided services equal to all pre-existing Colton. A reasonable time must be provided, with "reasonable" varying from instantaneous in the case of electoral representation, to years for utility service. Colton already almost surrounds Area #3 and has made significant inroads to the same end on Area #2. It is possible that some combination of annexation, either in stages or in combination with incorporation of the City of Grand Terrace, could be considered. Such a division of tax base would, however, be disadvantageous for any City of Grand Terrace, as it would also be for the City of Colton. 66 Advantages. The advantages of annexing all of Grand Terrace to the City of Colton should be obvious. Grand Terrace is basically surrounded by Colton. Major parts of Grand Terrace (Areas #1 and 2) are essentially geographically isolated by Colton from the balance of the study area. Colton has its administrative infrastructure already in place; its ordinances, systems and regulations are established and understood. Colton's tax rate and structure are clear and decided. Expenses of extending services to Grand Terrace, while significant, would be manage- able except for two--electric and water--discussed later and in Chapters III and IV as well. And the City has indicated its willingness to absorb Grand Terrace. Disadvantages. There seems to be little political compatability between Grand Terrace and Colton. Much antagonism and fear of Colton--for highly personalized reasons it seems in some cases--make the outcome of the probable annexation referendum or referenda chancy. The contrast between the two areas seem major--as they have been described repeatedly to the study team. Grand Terrace enjoys higher income and economic levels than Colton. Colton has a large proportion of its population as minority and of the Catholic faith. Many residents of Grand Terrace are of the majority racial-ethnic extraction and of non-Catholic background. Then there is the major geographic feature separating Grand Terrace from the major part of Colton and resulting in the area on a natural high shelf above the valley floor and Colton. Commentary. The question, then, is: Are the economics of scale, operational and long-range advantages of annexation of Grand Terrace to Colton signifi- cant enough to overcome all the emotional intangibles recited above? They are not original with the study team--just passed on from a drumming of sources. While difficult to raise, such issues are the stuff from which ballot issues are decided. In its response to the Grand Terrace Municipal Advisory Council's request for inputs to this study the City of Colton did not--and probably could not or could not be expected to--provide time frames for service exten- sion. Such responses probably are critical, however, for an informed elector,.te should such an annexation referendum come to pass. Removal of doubt would be especially critical for fire station construction, parks land acquisition, major street reconstruction and building regula- tion. Some nagging questions also seem to exist, even though baseless in fact, as to the impact annexation would have on electric distribution system acquisition and rates, ultimate water supply, and schools. In all three cases the answer is clearly 11-Ule or none, but such an answer should and would have to come from the City of Colton loudly and clearly to provide a positive atmosphere at any election on annexation of Grand Terrace to Colton. 67 Additional Commentary. Annexation to the City of Colton is feasible, both for Colton and Grand Terrace. Absorption of an area nearing 8,000 in population by a City of around 20,000 is not an easy administrative task. Nor is it politically ideal. Grand Terrace would demand representation, which would take some time to secure within Colton's at-large Council elections. Yet by voting as a bloc, Grand Terrace voters easily could become the major Colton political force. Last, and by far the major question is: Would Grand Terrace voters choose at referendum to be included within a much larger and vastly different Colton? Incorporation The California Government Code provides that an unincorporated area may choose to become a separately incorporated city after following certain procedures. The Local Agency Formation Commission and Board of Super- visors would have to approve of such an election. There is little evidence that petitions to bring the issue to a vote could not be secured. Advantages. Separate identification, local responsiveness, community of interest, locally-determined levels of service, and political separate- ness are real advantages of Grand Terrace incorporating as a city. The area would gain "political clout" in dealings with San Bernardino County, could well secure better treatment in the financing of county-wide ser- vices like flood control and transportation, and would more nearly preserve the status quo--in the short run. Disadvantages. In the long run it is a serious matter to incorporate as a fixed-boundary city. A relatively stagnant tax base in 15 to 20 years can be predicted. The costs are very high for providing initial facili- ties and services, start-up expenses, support of a separate overhead operation, and the intense activity that would be required to establish initial policies and procedures. A strong case can be made that a new city could command the loyalty and dedicated public service to hold down initial expenses. But contention in virginal situations has a way of eating away such loyalty. An effec- tive network of service arrangements could be put together for a City of Grand Terrace. The question is, however, whether in the long run those services would be both effective and inexpensive, not to speak of viable. Commentary. The potential long run problems of a City of Grand Terrace would require an initial voter commitment that would have to be solid and profound. Anything less would be inviting trouble in the long haul. Suggestions will be made later--in Chapter VIII--whfeh could have the potential of providing such commitment--if the incorporation alternative is ultimately selected. 68 Discussion of Alternatives The following sections discuss each of the available alternatives, gener- ally in the order of their preference. In this case "preference" is based on the empirical research garnered from throughout the United States by students and practitioners of municipal government. Of course, such "preference" ofttimes does not pass the muster of local referenda. Governmental Reorganization From an idealistic, long-range area wide general public benefit standpoint the Reorganization alternative seems to be both the most desirable and least possible. Total Annexation Next on a long-range desirability scale seems to be the total annexation of Grand Terrace by Colton. Several issues--mentioned earlier--should be addressed by Colton prior to any real decision. Partial Annexation Third in "preference" is the separate incorporation of Grand Terrace as a city, but excluding Areas #2 and #3, which would be added to Colton. However, annexation of only a portion of the study area creates both real and potential financial and service problems for the remaining area. Incorporation If incorporation is to succeed economically in the long haul, Areas #2, and #3 must be included in any City of Grand Terrace. The industrial, commercial and multiple residential potential--especially in defined Area #2--seems too great to deny a new city that tax base potential. So this alternative starts out as four and rapidly rises to third after considering incorporation from the cost and tax standpoint. Community Services District Creation of a Community Services District runs a poor fifth because such a District assumes most of the responsibilities of an incorporated city without many of the state subvention revenues which would accrue to a city. The CSD is more appropriately suited to providing specific upgrad- ed services thru to the full range of municipal services. County Service Area Maintenance of the status quo as a County Service Area runs a distant sixth because of the piecemeal annexation argument put forth earlier, plus lack of both capability and desirability to provide adequate service levels. Both the CSA and CSD would be subject to probable piecemeal annexation 69 into Colton, thus resolution of local service problems could only be delayed and aggravated, .not resolved---just expensively delayed. Conclusion The above discussion is strictly from a long-range financial, service level and broad long-term governmental well-being standpoint. Unfortunately, what may be for the total good of the greater area may not be to strictly local benefit, or acceptable to the citizens. Further, what is possible at the ballot box, or that which would be politically acceptable many times appears to be widely divergent from what makes "good governmental sense." More will be said about these six alternatives in the next section of this chapter, and in Chapter VIII. Specific cost effects on the citizens of the Grand Terrace area will be examined in Chapter VII, as opposed to this general look at the entire area. Reviews of Alternatives by Affected Parties The factual information contained in Chapters I, II, III, IV and V hereof was provided to each of the City Council of Loma Linda, the City Council of Colton, and to the Special District Department of San Bernardino County. The question was put this way, in essential part: Attached is a complete set of all relevant interim draft reports submitted so far by Public Administration Service (PAS) in connection with our study of public service delivery systems for the Grand Terrace area. A significant aspect of this study procedure involves the input of other governmental units which might have an interest in area local governmental organization or the delivery of public services. We seek written input from your agency based on your review of this draft material. Your complete written comments will be made available to all interested parties and, when bearing on the delivery or cost of a Grand Terrace public service under discussion, may be utilized as a basis for discussion in the report text. . . . We request written comments concerning any concerns you may have relating to this study area such as a desire to establish joint services, furnish contract services or absorb a portion of the area through governmental reorganization. The absence of any such concerns would also be significant to this study effort. . . We welcome your comments, corrections and constructive criticism. We would sincerely appreciate the receipt of all of your 70 written comments no later than November 2, 1977. This date will insure your views and concerns are considered in an expanded and reworked draft report due to be submitted to the Grand Terrace Municipal Advisory Council in mid-November. The responses thereto are reproduced herein as Appendices V (Colton) and VI (Loma Linda) . The latter is The County Special Districts Department response for CSA and CSD purposes and is contained as a major portion of the earlier portion of this Chapter. Conclusion The next chapter hereof revises materially the seeming conclusions and "preferences" reached in this chapter. There revenues and expenditures are brought together, and "costs" to the taxpaying citizen detailed and summarized. 71 CHAPTER VII RANKING OF ALTERNATIVES The preceding chapter discussed alternate methods of organizing govern- mental services from the broad perspectives of commonly accepted public ad- ministration assumptions regarding the economies of scale. Those assump- tions relate to the greatest benefit for the greatest number of residents in the region. This chapter reduces the costs to specific figures as they apply to the residents of the unincorporated Grand Terrace area only. Based on the cost effects for only that limited area a present "cost" ranking of the alternate types of governmental organization is presented. Long term considerations propounded in the preceding chapter should be considered in viewing these financial rankings. Methodology All financial rankings are based on current 1977-78 revenue and expenditure calculations applicable to each different governmental alternative.. Each is calculated so as to provide as nearly as possible the same approximate levels of service. Exceptions, where there is a distinct difference in the level of service that would be available under different organizational structures, are pointed out in the discussion of expenditure comparisons. Governmental reorganization--altering city boundaries to realign Loma Linda, Colton and San Bernardino and absorb the unincorporated Grand Terrace area-- has not been considered in these financial rankings. The requirement for unanimous agreement among affected agencies and the apparent lack of official interest excludes this arrangement from consideration as a viable alternative at this time. Financial effects of the remaining alternatives: Incorporation of a City of Grand Terrace, annexation to the City of Colton, creation of a Community Services District, and continuation of a County Service Area are compared. First the revenues that would accrue to each are totalled, excluding all property taxes. Second, comparative expenditures for each alternate are totalled. The Summary of Financial Effects then presents the total tax rate required to deliver services under each organizational arrangement, and subtracts any county district taxes which would be eliminated, to show a net tax increase for each alternate. All of these should be quite conser- vative due to the assessed valuation growth expected in the next two years. The rates actually required by the time any of these options would actually begin operation should be lower than shown in this summary. Revenue Comparisons Revenues, excluding property taxes that would accrue to each alternate form of governmental organization, are shown on the page headed "General Revenue Comparison," page 76. 72 Incorporation is the first alternative listed since it has the greatest number of potential revenue sources drawn from Appendix II. In the event of annexation each revenue would accrue to the City of Colton to help it finance the Grand Terrace area services. The only major exception to this rule would be the construction tax shown for an incorporated city but not currently in effect in the City of Colton. While this source is a "one time tax" financing on-going expenditures -in the general fund, its gradual loss as development wanes would be mitigated by increased assessed valuations accruing to the City every year thereafter by virtue of the new construction. The next two columns show to which agency or agencies each revenue would accrue in the event services were to be provided through a CSD or CSA. Compared to incorporation or annexation almost every tax would continue to exist, but accrue to other agencies. In those few instances showing a. zero, no such tax would be paid except in the event of incorporation or annexation. A major tax source shown in Appendix II is the 6% utilities users tax which can be imposed only by a charter city. A charter can only be adopted follow- ing incorporation as a general law city. For this reason that revenue source is excluded from the general comparison and the financial ranking. However, the effect of the utility tax as an alternate to a portion of the property tax of a new city is shown in the last summary as a possible alternative following incorporation and adoption of a charter. Expenditure Comparisons Expenditures for services for each of the four governmental organization arrangements are shown on page 77 for the same approximate level of service wherever feasible. When a distinctly different service level is anticipated that is explained in this text material. In the case of annexation, service would be provided by the- City of Colton within its overall tax rate and general revenues so no exact cost is shown. Instances where the county or a private contractor might provide the service without direct cost to the local government the agency which would provide the service is shown instead of the cost. Administrative and Support Services Some administrative and support services required in a city government are furnished by the County for a CSD or CSA. In other instances the costs of these services might be less than would be the case for a city. Each potential expenditure item was reviewed with a representative of the County Special Districts Department and the estimate modified in accordance with County experience in similar settings. Service Level Variances Instances which require some explanation of differences in service levels among possible alternate governmental forms of organization are outlined in the following sections. 73 Refuse. Monthly residential charges in Grand Terrace for optional once- a-week refuse pickup are $2.50. The City of Colton has a mandatory require- ment that all homes subscribe to its twice-weekly City-operated refuse service at a $4.00 monthly rate. Thus, annexation would provide an increased level of service at a somewhat higher cost to the residents. Street Maintenance. A credit of $31,160 is provided on the CSA and CSD street budget for the approximate cost of current County Road Department expenditures. Thus the remaining $34,225 represents the additional expendi- tures above the service level already provided to bring this service up to the defined city levels. Street Lighting. All four comparisons assume street lighting will continue to be funded by a separate tax rate imposed only on those areas which enjoy the lighting benefits. Transportation. No cost is shown in the event of annexation to Colton. However, an increased level of service, including the provision of 50¢ dial-a-ride service, would be available to the Grand Terrace area in the event of annexation. Fire. Level 2 fire service contemplates two persons on duty at all times and no paramedic service. The capital improvements tax levy for a new city will fund the immediate construction and equipping of a properly located Grand Terrace fire station. Annexation to Colton would provide a higher level of service, including paramedic response. The proposed location of a Colton fire station, at Washington and Barton, would not be as well situated as one built to service Grand Terrace exclusively. Also, there is no assurance of the date that such a station would be placed in operation. Law Enforcement. The cost shown for a CSD and a CSA is the maximum charge- able based on contract services provided an incorporated city by the Sheriff's Department. A contract negotiated by a CSD or CSA should be reduced to account for the level of service already provided so that the area would pay only for the additional service it requested. That total is negotiable, for which no estimate is currently available. Parks. Acquisition of 15 acres of parkland to supplement the estimated 25 acres which is estimated as being capable of being legally obtained and developed through subdivider dedications is anticipated with the incorporation of a new city. Money is provided in the capital improvement tax levy for acquisition and development of this additional acreage. The City of Colton also proposes the use of subdivider dedications for future parks development in the event of annexation. No reference to a program for catching up on past deficiencies is mentioned in Colton's Appendix V comments. Therefore, the standard proposed under the incorporation alternate and provided for in the CSD and CSA must be presumed to exceed that to be provided should the area be annexed to the City of Colton. Financial Ranking of Alternatives Based on the current projected and estimated costs to the residents of the 74 unincorporated Grand Terrace area the alternate forms of government avail- able to deliver expanded governmental services clearly rank as follows: 1. Incorporation of a new city; 2. Annexation to Colton; 3. An expanded County Service Area; and, 4. Creation of a Community Services District. These rankings are based only on local, not regional costs. They do not consider longer term considerations discussed in Chapter VI. The rankings assume approximately the same level of services to be delivered in all identified functions. Should the number or types of services to be delivered be substantially changed, the rankings might also be altered. Finally, the wishes as well as the needs of the area residents must be considered following community input based on available alternatives and considerations presented in this report. 75 GENERAL REVENUE COMPARISON 1977-78 BASE (Refer to Appendix II for Detail Backup) INCORPORATE ANNEX CSD CSA Sales & Use Tax $100,699 To Colton To County To County Franchise Tax 27,955 To Colton -- -- Construction Tax 75,000 -- -- -- Utilities Tax--6% Exclude -- -- -- Property Transfer Tax 7,500 To Colton -- -- Business License Tax 15,000 To Colton -- -- Highway Carriers Tax 889 To Colton -- -- Building Permits County To Colton To County To County Animal License County To Colton To County To County Bicycle License 300 To Colton -- -- Other Licenses & Permits 1,000 To Colton To County To County Court Fines 2,000 To Colton To County To County Traffic Fines 44,300 To Colton To County To County Parking Fines 100 To Colton To County To County General Revenue Sharing 36,000 To Colton To Other Cities & Counties State ABC 1,127 To Colton To County To County State Trailer In Lieu 4,000 To Colton To County To County Off-Highway License 200 To Colton To County To County Cigarette Tax 23,938 To Colton To Other Cities Motor Vehicle In Lieu 98,092 To Colton To County To County SB-325--Transportation 79,433 To Colton To Other Cities Zoning & Subdivision Fees County To Colton To County To County Sales of Maps $ Public't'ns 50 To Colton To County To County Miscellaneous Fees 100 To Colton To County To County TOTAL-General Fund $517,683 To Colton -- -- *Available only to a charter city. 76 GENERAL EXPENDITURE COMPARISON 1977-78 COST BASE (Refer to Appendix III for Detail Backup) Showing the Cost of the Service or Providing Agency Incorporate Annex CSD CSA Governing Body $ 7,100 Colton $ 7,100 County Elections 4,500 Colton 4,500 $ 2,250 Manager 61,200 Colton 40,000 40,000 Attorney 12,600 Colton 9,600 County Finance 41,200 Colton 9,600 County Engineering 12,500 Colton 6,000 County Non-Departmental 59,100 Colton 59,100 40,000 Refuse Contract Colton Contract Contract Storm Drainage-Level 2 15,375 Colton 15,375 15,375 Street Maintenance-Level 2 72,785 Colton 24,202 24,202 Street Sweeping-Level 4 8,000 Colton 8,000 8,000 Street Lighting District District District District Transportation 30,000 Colton County County Fire-Level 2 191,350 Colton 191,3S0 191,350 Law Enforcement-Level 2 1S6,863 Colton 156,863* 156,863* Parks-Level 3 32,750 Colton 32,750 32,750 Recreation-Level 2 7,500 Colton 7,500 7,500 Planning-Level 2 12,000 Colton County County Building Regulation 23,360 Colton 23,360 23,360 Contingencies @ 5% 36,000 Colton 31,000 29,000 TOTAL-GENERAL FUND $783,085 Colton $626,300 $570,6S0 Lower costs may be negotiated with the County based on payment for only the additional service over that already provided from the general County tax rate. 77 SUMMARY OF FINANCIAL EFFECTS OF ALTERNATIVES BASED ON 1977-78 REVENUES AND EXPENDITURES GENERAL LAW CITY COMPARED TO ANNEXATION TO COLTON, COMMUNITY SERVICES DISTRICT AND COUNTY SERVICE AREA INCORPORATE ANNEX CSD CSA GENERAL FUND REVENUES $517,683 Colton -- -- GENERAL FUND EXPENDITURES 784,083 Colton $626,300 $570,650 AMT. TO BE RAISED BY PROPERTY TAXES 266,400 Colton 626,300 570,673 REQUIRED TAX RATE @97% COLLECTION 1.01 Colton 2.36 2.15 CAPITAL IMPROVEMENT TAX LEVY .3498 Colton .22* .22* TOTAL REQUIRED TAX RATE $ 1.3598 $1.8357 $ 2.58 $ 2.37 LESS COUNTY SERVICE AREA TAXES .3498 .3498 .332 .332 NET TAX RATE INCREASE $ 1.01 $1.4859 $ 2.248 $ 2.038 CHARTER CITY COMPARED TO ANNEXATION TO COLTON, COMMUNITY SERVICES DISTRICT AND COUNTY SERVICE AREA INCORPORATE ANNEX CSD CSA GENERAL FUND REVENUES $517,683 Colton -- -- ADD 6% UTILITY TAX 167,728 Colton -- -- TOTAL GENERAL FUND REVENUES $685,411 Colton -- -- GENERAL FUND EXPENDITURES 784,083 Colton $626,300 $570,650 AMT. TO BE RAISED BY PROPERTY TAXES 98,672 Colton 626,300 570,650 REQUIRED TAX RATE @ 97% COLLECTION .37 Colton 2.36 2. 15 CAPITAL IMPROVEMENT TAX LEVY .3498 Colton .22* .22* TOTAL REQUIRED TAX RATE $ .6998 $1.8357 $ 2.58 $ 2.37 LESS COUNTY SERVICE AREA TAXES .3498 .3498 .332 .332 NET TAX RATE INCREASE $ .37 $1.4859 $ 2.248 $ 2.038 *Based on building a fire station and purchase/development of 15 acres of parks but no civic center. 78 CHAPTER VIII CONCLUSION AND RECOMMENDATION Pursuant to the contract between San Bernardino County and Public Adminis- tration Service a previous edition of this report was submitted to and reviewed by the Grand Terrace Municipal Advisory Council and the Special Districts Department Staff. At its November 22 meeting the MAC received the earlier draft of all this report with the exception of this Chapter. The "Draft Feasibility Report" was accepted by the MAC at its November 29 meeting. Also pursuant to the contract the County Special Districts Depart- ment acknowledged its approval, in writing, the next day. Both County instrumentalities then. instructed the PAS study staff to proceed with the next-to-last step in the five month process--to revise where appropriate and to prepare a "Comprehensive Final Feasibility Report." This chapter comments on the revisions and presents data and time tables concerning the apparent conclusions. Appropriate recommendations are made and commented on. The final step is presentation to the Board of Supervisors. Methodology During the process of developing the data included in and the commentary explaining, leading to, and based thereon, a series of preliminary reports were developed by the PAS staff. Each was presented to the Municipal Advisory Council of Grand Terrace and discussed at one of a series of public meetings. Also, copies were provided to the County Special Districts Department staff, who also commented thereon. Further, considerable input was made by the Cities of Loma Linda and Colton, especially the latter, regarding information in and perceptions regarding the preliminary reports. Revisions Based on the requests and comments of the MAC and the public at the meetings held by the MAC, several revisions were made in response to the data, mostly providing clarifications. Several County departments, especially the Special Districts Department and LAFCO staff, made significant inputs, also causing some corrections, deletions and clarifications. Very important and cogent comments were made by the staff of the City of Colton, resulting in additional corrections, deletions, additions and clari- fications, both in data and in approach. Last, of course, were the usual grammatical, typographical and style changes prevalent in transition from preliminary to final report. Results The resultant "Final Feasibility Report" contained herewith, and concluded hereby is one which can be defended and implemented. The comprehensive reviews and inputs, not to mention the considerable research, have resulted in a report that truly can be cited both as comprehensive and feasible. After all, the requirement for a preliminary report was designed to secure 79 as much corrective input as possible toward the comprehensiveness and feasibility goals. Projections One additional major change will be noted between the "Preliminary" and the "Final" Reports--in calculating the financial data for the recommended approach and projecting such data into a specific implementational calendar. More will be said, in detail, about these data in a later section of this final--and new, additional chapter. Reconciliation of "Preferences"with "Costs" Chapter VI presented on page 69 six alternative methods for providing local government services to the Grand Terrace area. These "preferences," as discussed in that chapter, were based on long range considerations and standard local government practice garnered from throughout the United States. "Preferred" Alternatives Based on the above long range and academic considerations the six possible ways to organize to provide local government services in Grand Terrace were ranked by the PAS staff in the following "preferred" rank order: 1. Governmental reorganization 2. Total annexation to Colton 3. Partial annexation to Colton 4. Incorporation as a City of Grand Terrace 5. Community Services District 6. County Service Area Comments on each are made in Chapter VI, in effect disposing of all but alternatives 2 and 4. Financial Results Ranking Chapter VII presented a summary of financial data which would prevail for the several alternative ways to provide expanded local government ser- vices to the Grand Terrace area. Those results were so clear and pronounced, considering the basically conservative way in which they were derived, that the "preferred" alternative rankings presented above were totally overridden. Decision Sequence. It is significant that the PAS staff wrote Chapter VI and its "preference" rankings before ever adding up and balancing revenues with expenditures for Chapter VII. In other words, the work of the study staff was organized in such a way that no financial ranking comparison between alternatives was possible until after the Chapter VI preferred alternatives were reached. The resultant relatively low tax rate that will be possible if the incorporation alternative transpires came as much of a surprise to the staff as it did to the MAC and SDD. 80 Financial Rankings. The comparison of revenues which would be available, and expenditures which would prevail for each alternative organizational pattern was. calculated and the difference between the two reduced to a property tax rate. Those resultant "financial" rankings of the alternatives are presented in tabular form on page 78 of Chapter VII. These are, again in rank order: 1. Incorporation of a City of Grand Terrace 2. Annexation in entirety to Colton 3. An expanded County Service Area 4. Creation of a Community Services District The Result. Clearly, the difference between the 1977-78 $1.01 tax rate (as a general law city) or a 37� tax rate (as a Charter City) increase presented in the preliminary report, as compared to the increased rate of $1.4859 for annexation to Colton, makes the alternative of incorporation as a separate city an irresistibly alluring alternative. The prospect of a 47.6� property tax increase by being made a part of Colton, over that which a separate city would require, is not a seductive alternate. The some- what academic alternative of regional reorgnization also was discarded as infeasible. Thus the request of the MAC, and the clear conclusion of the consultant, to develop the least expensive alternative of incorporation in detail. The balance of this chapter does that. The decision by the MAC to pursue the incorporation alternative thru implementation steps led to revised financial calculations that, as will be shown later in this chapter, makes the incorporation of Grand Terrace even more irresistible by having a lower tax rate than the $1.01 or 37¢ shown above. City of Grand Terrace Financial Projections Based on the above inescapable conclusion that a City of Grand Terrace would be the least expensive alternative for providing local government services to Grand Terrace, a calendar for incorporation was calculated. That calen- dar is presented later. Based on incorporation on November 7, 1978, the budgetary revenue and expenditure projections presented on page 78 and in detail in Appendices II and III, were revised and projected through Fiscal 1982-83. Financial Figures Projected The following table--Five Year General Fund Expenditures--summarizes the General Fund for the proposed City of Grand Terrace based on incorporation at election on November 7, 1978. It is to be noted that the figures present- ed here, and in subsequent tables, differ somewhat from both those in the preliminary report and those in Chapter VII and in Appendices II and III. The reasons for the differences are: first, the earlier figures are those for 1977-78; second, a City of Grand Terrace would have to provide and finance. . . only limited services between November 7, 1978 and June 30, 1979; and, third, higher assessed valuations make a somewhat lower tax rate possible. 81 Total Financial Picture. The next table--Five Year Financial Effects of Incorporation--presents the total financial scene which would prevail were the City of Grand Terrace to incorporate on November 7, 1978. As can be seen, a healthy financial picture can emerge quite steadily, with good management and reasonable self-restraint. It is most important, however, that the Capital Improvement Fund be created and financed as recommended, otherwise financial difficulties could be predicted in the not-too-distant future. More will be said on this later. Resultant Property Tax Rate. The financial summary table shows that instead of the previously (on page 78 as revised) projected property tax rate of $1.3598 for 1977-78, a lower rate would be possible starting with fiscal year 1979-80 on July 1, 1979. The first property tax rate to be set by the Grand Terrace City Council would be as follows: Operating Costs $ .8700 Capital Improvements 3498 Total City Levy 1.2198 per $100 assessed valuation This is an 87¢ increase beyond that currently paid. On a $50,000 owner- occupied house this would be some $93.53 per year, or a $7.79 per month increase in property taxes. A charter city could mitigate this considerably, about which more will be stated later. Comparison with Colton Rate. The $1.2198 City of Grand Terrace rate would compare quite favorably with the $1.8357 Colton rate. The $.6159 difference means that the same $50,000 home in a City of Grand Terrace would pay some $66.21 per year, or $5.52 per month, less than were it in the City of Colton. These figures can be summarized as follows: Total City Net Tax Tax Rate Rate Increase City of Colton $1.8357 $1.4859 City of Grand Terrace 1.2198 .87 Difference $ .6159 $ .6159 In addition, substantial fund balances, to be held in reserve for the lack of future growth, would fairly quickly put the City of Grand Terrace in an enviable financial position. 82 FIVE YEAR GENERAL FUND EXPENDITURES BASED ON NOVEMBER, 1978 INCORPORATION The following table summarizes only General Fund expenditures as a basis for the following table, "Five. Year Effects of Incorporation." Gas Tax and Capital Improvement Fund expenditures are not included in these totals. All of these totals are drawn from Appendix II. However, for added quick reference the page number(s) following each expenditure item denotes the page number(s) upon which that expenditure estimate is described in detail. When the number is a combination such as III-3, that indicates Page 3 of Appendix III. First year estimates are calculated for only 6 months for services which the new city must provide. Services which would continue to be furnished by the County until the end of the fiscal year (June 30, 1979) show no first year city cost. 1978-79 1979-80 1980-81 1981-82 1982-83 City Council (III-3) $ 3,763 $ 7,978 $ 8,456 $ 8,964 $ 9,501 Elections (III-3) 4,770 5,056 5,360 5,881 6,022 City Manager (III-3) 32,436 68,764 72,890 77,264 81,900 City Attorney (III-3) 6,678 14,157 15,007 15,907 16,862 Finance (III-4) 21,836 46,292 49,070 52,014 55,135 Engineering (III-4) -- 14,045 1.4,888 15,780 16,728 Non-Dptmental (III-4) 31,323 66,405 70,389 74,612 79,089 Storm Drainage Level 2 (35) -- 17,275 18,312 19,411 20,572 Street Maintenance Level 2 (35-36) -- 81,781 86,688 91,889 97,403 Street Sweeping Level 4 (37) 4,452 9,910 11,030 12,276 13,664 Transportation (23-24, 38) -- 30,000 30,000 30,000 30,000 Fire - Level 2 (38-39) -- 214,889 227,782 241,449 255,936 Law Enforcement Level 2 (41) -- 176,251 186,826 -- -- Level 3 (41) -- -- -- 264,811 280,700 Parks - Level 3 (43) -- 36,798 39,006 41,346 43,827 Recreation - Level 2 (43-44) -- 8,427 8,933 9,469 10,037 Planning - Level 2 (45) -- 13,483 14,292 15,158 16,059 Building Regulation (45-46) 12,381 26,247 27,822 29,491 31,261 Contingencies @ 5% 5,882 41,888 44,338 50,286 53,235 $123,521 $879,646 $931,089 $1,056,008 $1,117,931 83 FIVE YEAR FINANCIAL EFFECTS OF INCORPORATION GENERAL LAVA CITY OF GRAND TERRACE BASED ON NOVEMBER, 1978 INCORPORATION The following five year projections provide a realistic basis for funding greatly increased governmental services to be provided by a new city. Adequate and steadily increasing cash balances assure continuing financial health for the proposed city. An operating tax rate of 87¢ and capital improvement rate of 34.98� are calculated for the four years in which a tax could be levied. The capital improvement tax rate, exactly equivalent to the current combined County Service Area rates which would be abolished upon incorporation, provides parks, a fire station and equipment and a City Hall and Civic Center fully paid for in a 20-year period. Steadily increasing Gas Tax and Capital Improvement Fund balances could be either: 1. Transferred to the General Fund for street maintenance use and increasing various service levels; 2. Slightly reducing the operating tax rate; or, 3. Substantially accelerating development of the Grand Terrace major street system as state and federal construction fund shares become available. 1978-79 1979-80 1980-81 1981-82 1982-83 OPENING BALANCE- ALL FUNDS -- $ 187,734 $ 321,678 $ 358,696 $ 414,024 GENERAL FUND Opening Balance -- 148,524 150,304 169,798 159,225 General Revenues(1)$272,045 535,174 572,476 632,542 667,923 Property Taxes (.87) (2) -- 346,252 378,107 412,893 450,879 Total Available Funds $272,045 $1,029,950 $1,100,887 $1,215,233 $1,278,027 Less Expenditures(3)123,521 879,646 931,084 1,056,008 1,117,931 Closing Balance $148,524 , 150,304 169,798 159,225 160,096 GAS TAX FUND Opening Balance -- 39,210 107,829 124,638 175,825 St. Subventions(4) 39,210 78,419 78,419 88,187 88,187 Total Available Funds $ 39,210 $ 117,629 $ 186,248 $ 212,825 $ 264,012 Local Share Ex- penditures (5) -- 9,800 61,610 37,000 110,000 Closing Balance 39,210 107,829 124,638 175,825 154,012 84 1978-79 1979-80 1980-81 1981-,82 1982-83 CAPITAL IMPROVEMENTS FUNDS Opening Balance -- $ 63,545 $ 64,260 $ 78,974 Property Tax (.3498) (6) -- $139,217 152,025 166,012 181,285 Total Available Funds _ -- $139,217 $ 215,570 $ 230,278 $ 260,259 Level 4 Expen- ditures (7) -- 75,672 151,304 151;304 151,304 Closing Balance -- 63,545 64,260 78,974 108,955 CLOSING BALANCE-- ALL FUNDS $187,734 $321,678 $ 358,696 $ 414,024 $ 423,063 (1) GENERAL REVENUES are shown in detail in Appendix II. These totals ex- clude the 6% utilities tax which can be imposed only if a city charter is adopted. (2) OPERATING PROPERTY TAX at 87� per $100 assessed valuation calculated on 97% collection on assessed valuation projections shown in Appendix I.I-3. (3) GENERAL EXPENDITURES are shown in detail on the preceding schedule. (4) STATE SUBVENTIONS for the Gas Tax Fund are shown in detail on Appendix II-2 and II-6. (5) LOCAL SHARE EXPENDITURES from street construction are shown in greater detail on pages 49 and 54. (6) CAPITAL IMPROVEMENT PROPERTY TAX at 34.98� per $100 of assessed valuation is the exact equivalent to the total of County Service Area taxes which will be abolished upon incorporation and is calculated at 97% collection on assessed valuation projections shown in Appendix II-3. (7) LEVEL 4 EXPENDITURES are summarized on page 54 and discussed in detail in Chapter V. 85 General Law vs. Chartered City Under the California Constitution and California Government Code there are only two classes of cities: chartered or general law. As stated in an authoritative study on the differences between the two: As a general proposition, the main advantage of the charter form of government stems from the potential breadth of local authority which may be exercised. Chartered cities are not restricted to the exercise of- such powers as are set forth in the general law. . . . On the other hand, general law cities are what their name implies, i.e. , those governed principally by the general laws of the state. l About 80 of the almost 420 cities in California have charters. Advantage to Grand Terrace The major advantage to a City of Grand Terrace of having a city charter would be to avail itself of added taxing powers, thus enabling the City to de-emphasize property taxes, to diversify its tax structure, and to broaden its tax base. The resultant "tax reform" possible is effectively illustrated by the below table: CHARTER CITY FINANCIAL PROJECTIONS (General Fund) 1978-79 1979-80 1980-81 1981-82 1982-83 Genearl Revenues $272,045 $535,174 $572,476 $ 632,542 $ 667,923 6% Utilities Tax -- 255,974 282,144 311,064 342,948 Total $272,045 $791,148 854,620 943,606 $1,010,871 Expenditures 123,521 879,646 931,084 1,056,008 1,117,931 Amount to be Raised by Property Tax $-- $ 88,498 $ 76,464 $ 112,402 $ 107,060 97% of 23¢ Rate 91,538 99,959 109,156 119,198 Balance 3,040 23,495 ( 3,246) 12,138 Property Tax Rate. It can be seen that a 23� per $100 of assessed valuation property tax rate would be possible were Grand Terrace to adopt a charter. Only chartered cities are empowered to levy such a tax, which is proposed to be imposed at the 6% general sales tax rate on each of the monthly bills for the utilities of electric, gas, water and telephone. Thus the tax base is spread and the tax paid, in effect, in installments four times monthly, rather than as property tax--annually in a lump. 1Reid, Carlyn F. , Charter or General Law City?. League of Califor- nia Cities, Sacramento, Marc 1971, p. l. 86 Comparison of Property Tax Rates. The following table shows the resultant city property tax rate if Grand Terrace opts to become a chartered city, rather than a general law organization; Property Taxes Total Tax Net Increased Rate Tax Rate General Law City $1.2198 $ .87 Chartered City 5798 23 Difference .64 .64 On the $50,000 house this would be a reduction in property taxes of $68.80 per year, or $5.73 per month, from taxes paid to a general law city. A charter provides other marked advantages to a City: its powers emanate directly from the State Constitution, not solely from the Legislature. Thus the whims of the latter are severely limited. Disadvantages of a Charter There are three basic disadvantages to Grand Terrace if it decides to incorporate and become a chartered city. First, as stated in the previously quoted work: The general laws have been subjected to judicial scrutiny over the years, and there is a clarity of meaning and resultant understanding of what can and cannot be done under the general laws of the state. . . . Utilities Tax is Adjudicated. However, the basic reason that a City of Grand Terrace would desire a city charter--a utilities users tax--has already been clearly adjudicated.2 No difficulties should be encountered unless some exotic act is attempted sometime in �he future, and even then the body of charter case law is quite extensive. The second disadvantage is that a city cannot now incorporate as a chartered city. Thus on November 7, 1978 the City of Grand Terrace would have to have an election on incorporation and, if successful, have another election to adopt a city charer on March 6, 1979. This leads to the third disadvantage. To assure that the voters casting 1Ibid. , p. 1. 2Rivera vs. Fresno (6 Cal 3rd, 132) . 3Reid; Op. Cit. , pp. i-iii cites other cases. 87 ballots on incorporation would know absolutely that they would be committing themselves to subsequent adoption of a city charter, that charter should be drawn between January and October of 1978. That way its contents and intents would be clearly known to the citizens of Grand Terrace prior to voting on incorporation. Procedure for Drawing and Adoption. In the event that incorporation as a City of Grand Terrace is decided on, and that a charter would be desirable so as to keep property taxes low, the following procedures would have to be followed. First, the charter would have to be drawn starting in January, to be in- cluded no later than mid-October of 1978. Next, the charter--at this point unofficial--would have to be fully publicized both during its drawing and after its adoption--presumably by the Municipal Advisory Council. Third, immediately after incorporation the City Attorney would have to be employed and the newly elected City Council would then declare itself a Charter Commission. The previously unofficial charter would then be sub- jected to a series of legally required public hearings, all of which would be. approved in advance by the City Attorney, as required by state law. Next, the charter would be adopted by the City Council, sitting as a Charter Commission. Any revision would have to be considered quite serious, due to the implied commitment made by its unofficial approval by publicity prior to the incorporation election , and due to the tightness of the schedule. Last, the charter would be subjected to referendum on March 7, 1979. If adopted by majority vote it would go into effect upon filing with the California Secretary of State. The major--and only--necessity for the above procedure is so that when the first full year budget, and property tax rate setting ordinance, is required to be passed before July 1, 1979 and September 1, 1979 respectively, both could be predicted on a lower property tax rate than would be possible for a general law city. Such would only be possible were the charter drawn and adopted on the schedule outlined, and a utilities tax ordinance sub- sequently passed before about May 1, 1979. Thus the utilities tax could start producing revenue on July 1, 1979, in lieu of a 64¢ higher property tax required to finance a general law city. Procedure for Incorporation Under existing--and newly revised--state law, several major and numerous minor steps must be taken to incorporate as a city in San Bernardino County. The schedule in the case of Grand Terrace is extremely tight, as seen herein. Fortunately, the newly enacted Municipal Organization Act of 1977 reduces the time by some two months. The citizens of Grand Terrace could not have an incorporation election on November 7, 1978 had such Act not been passed. Even with it the schedule is extremely tight, maybe impossibly so. 88 Recommended Schedule The following is the schedule which is recommended and must be adhered to if economical incorporation is to be accomplished before 1980. DATE STEP December 14 to January 11, 1978 Secure signatures of at least 25% of registered voters in area proposed to incorporate January 11, 1978 Present petitions to LAFCO Present feasibility study to LAFCO January, 1978 Start drafting proposed city charter April 12, 1978 Present Environmental Impact Report to LAFCO May 10, 1978 LAFCO hearing on Incorporation and EIR May 24, 1978 Special LAFCO meeting to adopt resolution approving incorporation June 26, 1978 Hearing before Board of Supervisors Call election on incorporation July 10, 1978 Last possible date for Board of Supervisors to call election on incorporation October, 1978 Complete city charter November 7, 1978 Referendum on incorporation Election of Mayor and City Council November 1978-- January, 1979 City Council sit as Charter Commission March 6, 1979 Referendum on City Charter Referencum on $420,000 in Park bonds April 3, 1979 Adoption of utilities users tax ordinance June 26, 1979 Adopt 1979-80 budget August 28, 1979 Adopt property tax ordinance: 35¢ capital improvement fund 23¢ general fund 58¢ total Commentary on Schedule There is only two weeks slippage possible in the proposed schedule--between 89 June 26 and July 10. "Murphy's Law" should be remembered--if something can go wrong it will. Thus if Grand Terrace wishes to incorporate on favorable financial terms and timing before November of 1980 its leaders must act swiftly and certainly. The Petition. A petition for incorporation must be carefully drawn. Its contents can bind the city for centuries. The petition must include the following: 1. Legal description of the area to be incorporated; 2. The number of inhabitants in the area; 3. The number of registered voters in the area; 4. Other specific optional provisions. Under 4, above, it is recommended that any petition for a proposed City of Grand Terrace include the additional provisions: 1. A map of the area; 2. That the Mayor would be separately elected every two years; 3. That a city manager would be appointed; 4. That the city clerk and city treasurer would be appointed, by the city manager, or that such official could assume such duties; S. The intent to re-incorporate as a chartered city at the first opportunity. An affidavit of the circulator must accompany each petition. Environmental Impact Report. The EIR usually is required--but not always-- and is usually done by an outside consultant specializing in such. The County has stated that it could not do such a report in 90 days--thus an expedited selection procedure is necessary. Unless procedures are speedy and the selection made of such a consultant early in January, the EIR presentation cannot be made to LAFCO by the April 12 required date. Even with this hasty schedule, a consultant will be hard pressed to do the EIR in the three months available. This step is probably the most vulnerable and difficult to control. Critical Date. The Board of Supervisors must call the election by not later than July 10, 1978. This is the last date by which the Registrar of Voters can implement the necessary procedures. A slippage of any more than two weeks anytime prior to July 10 would not be fatal, but the July 10 date is fixed, and all steps prior to that date are extremely tightly timed. It is only fair to state that the LAFCO staff thinks that the above schedule cannot be met, it being extremely optimistic. While possible, a November 7, 1978 election is not highly probable. Should the incorporation election be slipped to March 6, 1979 from November 7, 1978 such is definitely to the distinct disadvantage of a City of Grand Terrace. Only three months of revenues and three months of "free" services from the County would be provided. Under the November 1978 schedule nearly 90 eight months of revenues are accrued without services being denied by the County. Plus the property tax relief measure made possible by the previously related city charter procedure would be most problematical. However, Larry Hendon, LAFCO Assistant Executive Officer, is of the unofficial opinion that the LAFCO does have the authority to make the incorporation date effective on July 1 after a March 6, 1979 election. 'Thus one full year of revenues would accrue without commensurate service responsibilities-- the latter still required to be provided by the County through June 30, 1980. The PAS staff is dubious of either the expectation or, if legal, probability of a consolation prize of a "free ride" for a year through LAFCO delaying the effective date of incorporation for some 3-3/4 months after the election. The schedule calling for a November 7, 1978 election on incorporation should be pushed, if this is what is desired. Election of City Council. Petitions for candidacy for the Mayor and four City Councilmen would have to be filed, and their campaigns held concurrent- ly with the campaign on the incorporation referendum. Candidacy petition dates and forms will be available from the County Registrar of Voters on the appropriate schedule, dependent on whether the July 10, 1978 absolute deadline is met. Later Referenda and Financial Actions. The referenda on each of the city charter and the proposed $420,000 of park acquisition and development bonds would have to be called in January, 1979 and held on March 6, 1979. The charter needs only a majority to pass; the bonds 66-2/3% of those voting, since it is proposed that these be general obligations. The civic center land acquisition, city hall and fire station construction bonds could be either joint powers obligations financed in conjunction with either the County or School District, or lease purchase, or non-profit bonds. None require a referendum, the City Council having authority to issue. The fire equipment would be bought when needed through lease-purchase provisions:. All are as sanctioned in state law. All are to be financed indirectly or directly through the 35¢ capital improvement levy--the amount currently being levied by the special districts. The new city council would withdraw from the districts and, on August 28, 1979 adopt a 58¢ (or $1.22 without a city charter) city property tax levy ordinance. Conclusion This "Final Report" is felt to be both comprehensive and accurate. Some minor details may be questioned, and the basic result already has been challenged by the City of Colton. However, taken as an entirety it should present a full and fair picture upon which each of the Municipal Advisory Council of Grand Terrace, the San Bernardino County Local Agency Formation Commission, the San Bernardino County Board of Supervisors, and the citizens of Grand Terrace and La Loma Hills can reach an informed decision as to the future mode of providing and financing local government services to them- selves. The recommendations made in the following section have been arrived at 91 after an excrutiatingly deliberate and open process. As stated in Chapter VI governmental reorganization is the "academic and good government" pre- ferred alternative. But the costs of local government, and the passions surrounding "self-determination and home rule" are such that only one realistic conclusion could be drawn by the consultant staff--incorporation as a separate City of Grand Terrace. Such self-determination is the rock upon which American democracy rests. Even if ultimately more expensive--and in this case there is no indication that such would be the case--people regularly vote their pocketbooks, even if local self-government does cost more. In the current case such will cost less--significantly less. 'Thus the purely pragmatic prognostications and specific recommendations made in the final section of this report. Implementation of Recommended Alternative Based on all the data and statements contained herein the Public Adminis- tration Service survey staff recommends the following: Area Included in Recommendations The feasibility of the incorporation of a City of Grand Terrace to provide cost-effective local government services is dependent on the tax base of the entire study area, including all of Areas 1, 2 and 3 (see Map 2 after page 17) . The City of Colton sphere of influence should not be extended into any of this area until after the incorporation election, should that be unsuccessful. The new city will need all its potential land area and tax base to remain viable. The citizens thereof should be provided the opportunity to decide on the future as an entirety, not partially. Thus it is recommended that the election procedure for a November 7, 1978 incor- poration referendum be for all the unincorporated area of Grand Terrace and La Loma Hills currently surrounded by the City of Colton. Specific Recommendations The following specific implementing recommendations are made so as to effectuate this report and study: 1. That this report be presented on December 14, 1978 to the San Bernardino County LAFCO and Board of Supervisors; 2. That the Municipal Advisory Council of Grand Terrace immediately seek legal advice, draft and circulate the required petition mentioned earlier in this chapter; 3. That the LAFCO provide an expedited procedure toward a November 7, 1978 incorporation election for a City of Grand Terrace; 4. That all steps in the schedule contained herein be proceeded with with all deliberate speed; 92 5. That a city charter be drafted per the schedule contained herein, 6. That the Grand Terrace MAC budget for 1977-78 be amended, and the 1978-79 budget reflect appropriate amounts to. finance the necessary expenses for the preparatory work and expedited schedule contained herein. 93 APPENDICES STATE OF CALIFORNIA ° STATE BOARD OF EQUALIZATION GEORGE R.Francisco 7020 N STREET, SACRAMENTO, CALIFORNIA First District,San Franncisco(P.O. BOX 1799, SACRAMENTO, CALIFORNIA 95808) IRIS SANKEY Second District, San Diego WILLIAM M. BENNETT (916) 445-0840 Third District, San Rafael RICHARD NEVINS Fourth District, Pasadena September 23, 1977 KENNETH CORY Controller,Sacramento DOUGLAS D. BELL Executive Secretary Mr. Larry Hendon San Bernardino County Local Agency Formation Commission 1111 East Mill Street Building 1, 2nd Floor San Bernardino, California 92415 Dear Mr. Hendon: The enclosed revenue forecast sheets for Grand Terrace in San Bernardino County summarize the data for local sales tax and other sources of State revenue. All estimates are for the first full year of receipts. Also enclosed are data that show when payments from each revenue source may be expected. I am sorry for the confusion and delay caused by the map of the area. Our local tax unit which controls the registration cards cannot function without boundary lines defined by street numbers. Let us know if we can be of any further assistance. Sincerely, ;�.,r� 0� Richard B. West Statistical Research and Consulting Division RBW:se Enclosures vv� I-1 FORECAST OF LOCAL REVENUES Grand Terrace - San Bernardino County A. Local Sales and Use Taxes (1%) 1. Estimated local sales taxes in 12-months ended 3-31-77 $ 94,990 2. Estimated percentage change in tax between date shown above and 12-months ended 12/31/78 18 3. Estimated tax during 12 months ended 12/31/78 $ 112,088 4. Cost of administration (computed at .82%)----------------------- $ 919 5. Net first full year revenue from a 1% local tax----------------- $_111,169 6. Amount (if any) to be shared with the county---( - %)---------- $ - 7. Anticipated net revenues in the first full year of receipts----- $ 111,169 B. Anticipated Liquor License Fees in the First Full Year of Receipts Estimated population (3 times registered voters)-------------------- Number of active outlets with industry codes: (22 + 34) 2 x $315--------------------------------------------- $ 630 833 2 x $ 22--------------------------------------------- 44 5 3 x $151--------------------------------------------- 453 36 + 75 (76) POPULATION NO. FEE AMOUNT NO. FEE AMOUNT Less than 20,000 $T9 $Tg�g 20,000 - 39,999 $371 $223 ------ 40,000 and over $522 $297 ------ Minimum net amount to be anticipated------------- $ 1,127 C. Cigarette tax----6ao of Line 7 + $2.00 x pop. $ D. Anticipated receipts from other sources of State revenue 1. "In-lieu" tax monies (population x $11.36)---------------------- $ 2. Gas tax revenue, §2107 Streets & Highways Code, (population x $4.35 )------------------------------------------- $ 3. Collier-Unruh gas tax funds §2106 Streets & Highways Codes, (population x $3.945)-t-480�------------------------------------ $ 4. Engineering allotment (based on population)--------------------- $ 5. Highway Carriers Uniform Business License Tax §4304 Public Utilities Code (population x $.103 )---------------------------- $ Estimates prepared for: Mr. Larry Hendon San Bernardino County Local Agency Formation Commission 1111 East Mill Street Building 1, 2nd Floor San Bernardino, California 92415 GA-421 Rev. 4 (10-74) I-2 DATE September 23, 1977 APPENDIX II BASIC REVENUE PROJECTIONS (See Accompanying Comments) F I S.0 A L Y E A R 1977- 1978- 1979- 1980- 1981- 1982- 1978 1979 1980 1981 1982 1983 GENERAL FUND Property Taxes S e e C o m m e n t s Secured Taxes - - - - - - Unsecured Taxes - - - - - - Prior Years Secured - - - - - - Prior Years Unsecured - - - - - - State Reimbursed Exemptions - - - - - - Sub-Total. . . . . . . . . . S e e C o m m e n t s Other Taxes Sales $ Use Tax $100,699 $114,505 $128,246 $143,636 $155,127 $ 167,537 Franchise Tax 27,955 31,310 35,067 39,275 42,417 45,810 Transient Occupancy Tax - - - - - - Construction Tax 75,000 105,000 33,000 35,000 37,000 39,500 Utilities Tax - 6% 167,728 207,968 255,974 282,144 311,064 342,948 Property Transfer Tax 7,500 10,500 3,300 3,500 3.700 3,950 Business License Tax 15,000 16,800 18,800 21,100 22,750 24,600 Highway Carriers Tax 889 889 889 889 1,011 1,011 Sub-Total. . . . . . . . . . $394,771 $486,972 $475,276 $525,544 $573,069 625,356 License & Permits Building Permits c c c c c c Animal Licenses c c c c c c Bicycle Licenses $ 300 $ 300 $ 300 $ 350 $ 350 $ 400 Other Licenses & Permits 1,000 1,100 1,200 1,300 1,400 1,500 Sub-Total. . . . . . . . . . $ 1,300 $ 1,400 $ 1,500 $ 1,650 $ 1,750 1,900 Fines $ Forfeits Court Fines $ 2,000 $ 2,500 $ 2,800 $ 3,300 $ 3,800 $ 4,200 Traffic Fines 44,300 46,960 51,186 55,793 59,141 64,463 Parking Fines 100 100 100 100 100 100 Sub-Total. $ 46,400 49,560 54,086 $ 59,193 $ 63,041 68,763 From Use of Money $ Property Investment Earnings - - - - - - Rental Income - - - - - - Sub-Total. - - - - - - Intergovernmental Revenues General Revenue Sharing $- $- $ 40,000 $ 42,000 $ 44,100 $ 46,300 CETA - - - - - - HCDA - - - - - - State ABC 1,127 1,262 1,414 1,583 1,710 1,847 State Trailer in Lieu 4,000 4,200 4,400 4,650 5,500 5,725 Off Highway License 200 225 250 275 300 350 Cigarette Tax 23,938 24,138 24,963 25,886 28,935 29,679 Motor Vehicle In Lieu 98,092 101,968 106,026 110,256 130,290 135,490 SB 325--Transportation 79,433 79,433 79,433 79,433 90,261 90,261 County Grants - - - - - - Sub-Total . . . . . . . . . . $206,790 21_1__,2_2_6_____j 256,486 $264,083 $301,096 $ 309,652 Charges for Services Zoning $ Subdivision Fees c c c c c c EIR's - - - - - - Sales of Maps $ Publications $ s0 $ 100 $ ISO $ ISO $ ISO $ ISO Park $ Recreation Fees - - 500 S00 750 1,000 Fire Inspection Fees - - - - - - Weed 8 Nuisance Fees - 2,500 2,750 3,000 3,250 3,SOO Miscellaneous Fees 100 100 100 100 100 100 Sub-Total. . . . . . . . . . $ 150 $ 2,700 3,S00 $ 3,750 $ 4,250 $ 4,750 Miscellaneous Revenues Sale of Property $- $- $ 100 $ 200 $ 200 $ 250 Other Revenue 200 200 200 200 200 200 Sub-Total. . . . . . . . . . $ 200 $ 200 $ 300 $ 400 $ 400 4SO TOTAL - GENERAL FUND $649,611 $7S2,OS8 $791,148 $854,620 $943,606 $1,010,871 II-1 APPENDIX II PROJECTIONS F I S C A L Y E A R 1977- 1978- 1979- 1980- 1981- 1982- 1978 1979 1980 1981 1982 1983 TOTAL - GENERAL FUND (Forward) $649,611 $752,058 $ 791,148 $ 854,620 $ 943,606 $1,010,871 GAS TAS FUND Gas Tax--Section 2106 $ 38,861 $ 382861 $ 382861 $ 38,861 $ 432509 $ 43,509 Gas Tax--Section 2107 37,558 37,558 37,558 37,558 42,678 42,678 Gas Tax--Section 2107.5 2,000 2,000 2,000 2,000 2,000 2,000 Capital Constructions Grants - 42,330 33,200 321,390 333,000 - TOTAL - GAS TAX FUND $ 78,419 $120,749 $ 111,619 $ 399,809 $ 421,187 $ 88,187 CAPITAL IMPROVEMENT FUND Property Taxes $ -- $-- $ 139,217 $ 152,025 $ 166,012 $ 181;285 Quimby Act Park Revenue State Bond Park Revenue TOTAL CAPITAL IMPROVEMENT FUND $ -- $-- $ 139,217 $ 152,025 $ 166,012 $ 181,285 TOTAL REVENUES $728,030 $872,807 $1,041,984 $1,406,454 $1,530,805 $1,280,343 "c" indicates a County contract service for which revenues are retained by the County in payment for the services provided. II-2 APPENDIX II COMMENTS BASIC REVENUE PROJECTIONS As a basis for future revenue projections the actual revenues which could accrue to a current incorporated City of Grand Terrace have been evaluated and are shown in the 1977-78 (first) column. All of these estimates are based on incorporation of the total 5.9 square mile currently unincorporated Grand Terrace area and must be adjusted when only a portion of that area is considered. A number of potential revenue categories are listed for which no revenues are shown. These listings are included to show a future potential or for other reasons explained under the appropriate heading in these comments. Each revenue and some comment concerning its com- position, total and/or projected amounts follow in the order shown on Appendix II. General Fund Eight major categories of General Fund revenue are shown. Together they constitute the overwhelming bulk of municipal operating revenues, which in most instances can be expended for any legitimate governmental purpose. Some revenues within the Fund, such as SB 325 transportation revenues and federal General Revenue Sharing do have some limitations concerning the purposes for which they may be expended and in how they are accounted for respectively. Property Taxes Property taxes are broken into three separate categories. The projected assessed valuations for each category for each of the years included in the scope of this study are shown below: PROJECTED ASSESSED VALUATIONS Property Tax 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 Secured taxes $22,989,060 $27,769,386 $34,420,531 $37,587,220 $41,045,244 $44,821,406 Unsecured taxes 1,454,590 1,757,057 2,177,896 2,378,262 2,597,062 2,835,992 State Reimbursed Exemptions 2,959,795 3,575,253 4,431,575 4,839,280 5,284,494 5,770,667 TOTAL $27,403,445 $33,101,696 $41,030,002 $44,804,762 $48,926,800 $53,428,065 These totals provide the basis upon which tax estimates are drawn for the various alternate methods of financ- ing local government. Property tax revenues may be shown in five different categories. The definition of each category follows. Secured Taxes. This tax rate is applied to land, improvements to land, buildings and structures that are, in effect, attached to the land. The assessed value must by statute be set by the elected County Assessor at 25% of the "true cash value." Periodic reassessments--usually on a three to five-year cycle--cause these values to change as values change. Modest increases are projected based on both increased values of existing property and on new construction. Unsecured Taxes. The same rate as applied to secured property is applied to personal property, which is not exempt and which is movable--not secured to the property. Such things as machinery, trade inventory, equipment, and other movable property used in the production of income, and aircraft are covered here. Prior Years' Secured Taxes. No revenue would be secured from this the first two years of any levy, since this category is the revenue secured from the 3% average of delinquent taxes paid on secured property plus interest and penalties. All the levy, plus some penalty and interest, will be collected eventually, but spread over five years of delinquencies. Prior Years' Unsecured Taxes. This category is the delinquent payments, plus penalties and interest--after the initial two years of enforcement proceedings--for unsecured taxes. The two years is conservative, as some delinquencies may come in the first year. State Reimbursed Exemptions. The State of California over the past several legislative sessions has passed a series of local property tax reimbursement measures. In effect certain classes of property owners are exempt from payment of all or a portion of their local property taxes, with the State making up the loss by payment to local jurisdictions, but from State sales and income tax sources. These revenues would reimburse the City of Grand Terrace for losses incurred due to the homeowners, veterans and disabled veterans exemptions, senior citizens exemptions and deferrals, and inventory tax exemption. Other Taxes Eight other types of taxes are described below. Sales and Use Tax. These taxes are equal to 1% of the total cost of all items for which sales taxes are collect- in the community, after deductions of a small State administrative charge. Reimbursement is paid from the State Board of Equalization quarterly. The first and second year estimates are based on data provided by the State. II-3 APPENDIX II Subsequent years' projections are increased at rates reflecting inflation compounded by anticipated growth. Franchise Tax. Franchise taxes are paid by utility companies to the City representing one percent of the gross revenues collected by the telephone, gas, electric and water utilities. The possibility of levying a similar tax on refuse collection also might become feasible as the City grows and the refuse franchise question decided. The 1977-78 total represents actual estimates from the concerned companies less a substantial but undependable volume of natural gas sales now being used by SCE for electric power generation in its Grand Terrace plant. Projections follow the same inflation factor used previously plus the population curve plotted for sales taxes, which should be quite conservative in times of rapidly increasing energy costs. Transient Occupancy Tax. This tax is levied by cities and counties on the gross receipts of hotels, motels, and boarding houses and is available for Grand Terrace use. Construction Tax. This tax, first utilized by Palm Springs, is now widely used to produce additional revenue in situations of rapid growth which create strains on a City's ability to meet expanding demands for service. The formula for the tax as here computed is based on a one-time charge of $200 per new dwelling unit and 5� per square foot of industrial and commercial construction. Projections are directly related to total new dwelling units required to house the estimated population projections with a minimal additional allowance for commercial and industrial construction. Utilities Tax. This tax shown as 6% of gross utility bills is presented as a possible alternate to an equal amount of property taxes (approximately equal to a tax rate of 62¢ per $100 of assessed valuation). It has the advantage of being less painful to pay,occuring more frequently and in smaller amounts, than property tax. Given the inflationary trend of energy costs it also appears to offer a more elastic growth rate. This tax could only be used if the new city were to have its own city charter instead of being incorporated under general law. Property Transfer Tax. This tax, much like the construction tax, produces additional revenue in rapid growth situations which tend to strain a City's ability to meet expanding needs. It is almost universally applied by cities. It is based on the sale value of real property. Projections for future revenue are directly related to real estate activity, in this case taken as a percentage of the anticipated construction tax revenue. Business License Tax. This commonly utilized city tax is difficult to estimate accurately since the rates are variable. However, this conservative projection begins at 25% below the current Loma Linda budgeted revenue and is increased in accordance with expected commercial growth. Each business and occupation would pay the tax based on a minor percentage of its gross receipts. Highway Carriers Tax. One-tenth of one percent of the gross operating revenue of highway carriers under the jurisdiction of the California Public Utilities Commission is rebated after expenses to the various cities. This negligible revenue amounts to approximately ten cents per capita per year, in lieu of a local business tax. Licenses and Permits Four potential revenue sources combine to provide possible City license and permit revenues. Building Permits. No city revenue is shown since it is expected that the San Bernardino County Building and Safety Department would provide City building inspection services by contract and keep the permit fees in consideration for the services performed. Animal Licenses. County contract services provided a City would also in this instance be paid for through County retention of related fees. Therefore, no City revenue is shown. Bicycle Licenses. A minor regulating revenue is shown with a modest projected growth. Other Licenses and Permits. This "catch all" of miscellaneous regulatory and permit charges is projected at a growth rate of approximately 10% per year. Fines and Forfeits Court fines are collected by the Colton Justice Court and apportioned on a formula to the City in which the offense occurred. Court Fines. This small category of fines represents those general non-traffic related fines imposed for minor law violations within the City. Traffic Fines. Traffic fines are rebated at a rate of 79% to the City with the County retaining 21% for the cost of collection. The estimate is based on an examination of the Colton Justice Court records while projections reflect the combined effect of population and enforcement increases. II-4 APPENDIX II Parking Fines. Only a nominal unchanging amount is shown for this revenue source. From Use of Money and Property Revenues may accrue to a city from interest income or rental of its property or equipment. Investment Earnings. Investment earnings are directly related to projected cash flows and surplus monies ex- pected to be available for investment. Amounts have to be projected based on each alternate government form and its anticipated cash flow. Rental Income. It is not expected that the City would acquire property or equipment which would produce rental income during its first years of existence. Intergovernmental Revenue A variety of revenues may accrue from other governments, some automatically and others in the form of specific grants. General Revenue Sharing. A city does not become eligible for this federal program until the beginning of the next fiscal year following incorporation. The amount of revenue is determined by a complex formula involving, among other factors, population and "local tax effort." The exact figure cannot be determined at this time. However, the estimate is a conservative one based on a review of other similarly sized and constituted communi- ties. CETA. The Comprehensive Employment and Training Act (CETA) provides federal employment and training grants for public service jobs. These jobs must be funded to provide additional services after the city is in operation. Any such grants would be applied for by the city and used to underwrite new or expanded programs. HCDA. The Housing and Community Development Act (HCDA) also provides federal grants for specified programs . upon application by a city. A city the size of Grand Terrace must file its application through the county. These monies must be utilized for programs or services directly related to developing the community or eliminating physical blight. The beginning of any such program would be a decision of the City Council following incorpora- tion. State ABC. This State subvention is based on the number of retail liquor outlets in the city. A modest growth, considering anticipated population increases, .is projected. State Trailer In Lieu. Though this is a State subvention, no estimate was provided by the State Board of Equali- zation for the local share of revenues from State trailer registration fees. The PAS estimate is considered conservative based on an examination of surrounding communities. Only the most modest growth is projected due to the uncertainty of possible mobile home population increases. Off Highway License. Dirt bikes, dune buggies and other off-highway vehicles must be State licensed. A percent- age of this fee is rebated by the Department of Motor Vehicles to the City or County in which the vehicle is registered. Cigarette Tax. This revenue is rebated from the State monthly based on a formula involving a percentage of sales tax and city population. The current estimate is calculated from data provided by the State Board of Equalization using the registered voter, estimated population of 8,634 (3 x 2,878 registered voters as of August 1, 1977). This population formula would be and is used until 1981-82 when the projected 1980 census population of 9,811 is used for the last two annual projections. Motor Vehicle In Lieu. Monthly allocations are paid from the State to the City based on population and the total vehicle registration fees available for apportionment. Current figures were supplied by the State Board of Equalization. Projections reflect an annual increase of 4% in monies available due to inflation raising the total value of vehicles upon which registration fees are based. The population portion of the projection formula described under the cigarette tax heading is applied in the same manner for this revenue. SB 325 Transportation. The current $9.20 per capita rebate under the terms of this State legislative bill has been steadily increasing over the past several years. The trend is expected to continue. Revenue uses are restricted to Article 4 public transportation and Article 8 street construction and/or maintenance. The latter uses are subject to Southern California Association of Governments'(SCAG) approval. The regional trend is toward withholding approval for large sums of non-public transportation uses. For these reasons no revenue increases are projected. Minor increases in anticipated public transportation expenditures result in a diminishing amount of this revenue being available for general use. County Grants. No regular revenue is projected in this category, though some future city programs may qualify for County assistance. II-5 APPENDIX II Charges for Services A number of services rendered by a community are financed totally or in part through charges paid by the persons using the service. Zoning and Subdivision Fees. These fees finance all related zoning and subdivision services. Since it is ex- pected that the County would provide the service and keep the fees in payment, no city revenue is shown. EIR's. The city might, through its planning consultant or the County, require an Environmental Impact Report (EIR) whenever required by State law or local need. These reports will often be paid for by private developers interest- ed in a particular project. If that is the case the total cost might be shown as a revenue item, but an off- setting cost would usually be shown in the City's budget. Neither are shown in these projections. Sale of Maps and Publications. This is a minor somewhat unpredictable revenue item projected on a relatively flat basis. Park and Recreation Fees. A modest revenue is projected for persons participating in miscellaneous recreation classes which are anticipated to begin in summer programs the second year of incorporation. Fire Inspection Fees. A very effective fire prevention device is to require all commercial, industrial and multiple dwelling building owners and operators to secure an annual fire inspection, for which a modest fee is charged. This amount is projected to be collected by the fire service contractor, which would retain the fees to provide the service. Weed and Nuisance Fees. The major portion of this revenue would result from charges against property due to City-ordered cleaning of weeds or otherwise littered private property. This service, often provided through a private contractor, would also show as a City expenditure item. Miscellaneous Fees. This category catches the "odds and ends" revenues for which there is no regular recurring tax, fee or charge. Miscellaneous Revenues All General Fun revenues not included in the preceding major categories are credited as "miscellaneous revenues." Sale of Property. It is not expected that a newly incorporated city will have any significant amount of surplus property for sale during its first five years of existence. However, a negligible revenue is projected beginning the second year of incorporation. Other Revenue. This revenue item is the "catch all" for small non-recurring revenues for which no regular account exists. Gas Tax Fund Revenues accruing to the Gas Tax Fund may be used only for maintenance and construction of streets. A 1977 legislative enactment removes former restrictions to where this Fund can be utilized on street-allied arterial, collector and residential street construction and maintenance, with the latter two terms broadly construed by State regulation. Gas Tax--Section 2106 The current estimate was supplied by the State Board of Equalization and is based on $3.945 per capita plus a lump sum of $4,800. Population assumptions are explained under the cigarette tax revenue item. Due to the uncertainty of the national energy situation, no increase is projected in gasoline consumption throughout the projection period. An adjustment is provided for following the change in population certified by the 1980 census. Gas Tax--Section 2107 Current State subventions are based on $4.35 per capita. Projections of this revenue item were based on the same assumptions outlined for Section 2106 gas taxes. Gas Tax--Section 2107.5 This flat $2,000 annual allotment is based on city population and may be used only for engineering costs and administrative expenses relating to city streets. Capital Construction Grants Revenue shown in this category reflects the Federal and State (non-local) share of street construction projects outlined in Chapter V. Expenditures balanced against this estimate of revenue will reflect the total construction costs, of each project. II-6 APPENDIX II Capital Improvement Fund ` Property Taxes. A tax rate exactly equivalent to the $.3498 combined rate for present County Service Area levies (Nos. 38, 38G, 70 and 70A) is calculated to produce sufficient revenue to pay for site acquisition, construction and furnishing of a fire station and City Hall within a 7-acre Civic Center complex and the acquisition and development of a supplemental 25 acres of park land (identified as level 2 service in Chap- ter IV). These improvements would be financed through bond issues, lease-purchases or joint powers agreements, none of which would exceed a twenty-year pay out period. Projected revenue is based on the $.3498 tax rate applied to the appropriate projected assessed valuation and calculated at a 97% collection rate. The tax could not be levied until the beginning of the fiscal year following incorporation. Quimby Act Park Revenues. Some subdivisions would be too small or inappropriately located to dedicate land. In this instance the cash equivalent would be paid into a city fund restricted to purchasing and developing park lands. State Bond Park Revenue. The State of California has bond issue money which can be made available to local governments for park development. Since the amount which might be available to Grand Terrace cannot at this time be estimated, no revenue is shown from this source. II-7 APPENDIX III BASIC EXPENDITURE PROJECTIONS (See Accompanying Comments) F I S C A L Y E A R 1977- 1978- 1979- 1980- 1981- 1982- 1978 1979 1980 1981 1982 1983 GENERAL FUND City Council $ 7,100 $ 7,526 $ 7,978 $ 8,456 $ 8,964 $ 9,501 Elections 4,500 4,770 5,056 5,360 5,881 6,022 City Manager 61,200 64,872 68,764 72,890 77,264 81,900 City Attorney 12,600 13,356 14,157 15,007 15,907 16,862 Finance 41,200 43,672 46,292 49,070 52,014 55,135 Engineering 12,500 13,250 14,045 14,888 15,780 16,728 Non-Departmental 59,100 62,646 66,405 70,389 74,612 79,089 Storm Drainage Level 2 15,375 16,298 17,275 18,312 19,411 20,572 Level 3 14,375 15,238 16,152 17,121 18,148 19,237 Street Maintenance 72,785 77,152 81,781 86,688 91,889 97,403 Level 2 Level 3 88,160 93,450 99,OS7 104,940 111,299 117,978 Street Sweeping Level 2 700 779 867 965 1,074 1,196 Level 3 4,000 4,452 4,955 5,515 6,138 6,832 Level 4 8,000 8,904 9,910 11,030 12,276 13,664 Street Lighting -- -- -- -- -- -- Transportation 30,000 30,000 30,000 30,000 30,000 30,000 Fire Service Level 2 191,250 202,725 214,889 227,782 241,449 25S,936 Level 3 336,450 356,637 378,035 400,717 424,760 450,240 Law Enforcement Level 2 156,863 166,275 176,251 186,826 198,036 209,918 Level 3 209,755 222,340 2359681 249,822 264,811 280,700 Animal Regulation -- -- -- -- -- -- Parks Level 2 32,750 34,715 36,798 39,006 41,346 43,827 Level 3 32,750 34,715 36,798 39,006 41,346 43,827 Recreation Level 2 7,500 7,950 8,427 8,933 9,469 10,037 Planning Level 2 12,000 12,720 13,483 14,292 15,158 16,059 Building Regulation Level 2 23,360 24,761 26,247 27,822 29,491 31,261 Contingencies @ 5% 36,000 38,200 40,400 42,400 45,500 48,200 TOTAL-GENERAL FUND-- WILL VARY DEPENDING ON SELECTED LEVELS OF SERVICE GAS TAX FUND --Barton Rd.-La CAdena/I-15 -- -- -- -- -- 110,000 --Barton Rd. at Southern Pacific R.R. -- -- -- 50,000 70,000 -- --Barton Rd, overcrossing I-15 -- -- 3,000 -- -- -- --Barton Rd., Mt. Vernon Avenue/ I-15 -- 51,000 40,000 333,000 -- -- --Vivienda Avenue at Southern Pacific R.R. -- -- -- -- 300,000 -- TOTAL-GAS TAX FUND -- $ 51,000 $ 43,000 $383,000 $370,000 $110,000 III-1 APPENDIX III PROJECTIONS 1977- 1978- 1979- 1980- 1981- 1982- 1978 1979 1980 1981 1982 1983 CAPITAL IMPROVEMENT FUND Fire Station and Furnishings -- -- $ 21,798 $ 21,798 $ 21,798 $ 21,798 Fire $ Paramedic Apparatus -- -- 14,415 14,415 14,415 14,415 Add 15 Acres Parks -- -- 36,620 36,620 36,620 36,620 Civic Center Site $ Develop -- -- 26,157 26,157 26,157 26,157 City Hall $ Furnishings -- -- 52,314 52,314 52,314 52,314 TOTAL - CAPITAL IMPROVEMENT FUND -- -- $ 151,304 $ 151,304 $ 151,304 $ 151,304 II1-2 APPENDIX III COMMENTS BASIC EXPENDITURE PROJECTIONS As a basis for future expenditure projections the current costs which would be associated with an incorporated City of Grand Terrace have been estimated and shown in the 1977-78 (first) column. An annual inflation rate of 6% is allowed for each successive year for almost all expenditures. When that rate is varied the reason is noted in these comments. All of these estimates are based on incorporation of the total 5.9 square mile cur- rently unincorporated Grand Terrace area and must be adjusted when only a portion of that area is considered. In some instances more than one level of service for a particular operation will be shown. This permits the community to chose the appropriate level of service and if desired, to change levels during the five year projection period. For these reasons, no total expenditure costs are provided in this basic summary. Totals can be provided only when the appropriate levels of service have been selected and the size of the proposed city determined,should it be smaller than the 5.9 square mile total area. General Fund Because of the general comparability of the City of Loma Linda to the possible City of Grand Terrace, the former city's recent budgets were examined in detail and used as a guide and a check list to assure inclusion of all appropriate expenditures in this schedule. Knowledge of other similarly sized and situated cities also was called on by the PAS staff. City Council. The 1977-78 City Council expenditures for a City of Grand Terrace should it currently exist, are estimated as follows: 1 Mayor @ $50 per meeting for 26 meetings/year. . . . . . . $1,300 4 Council persons @ $25 per meeting for 26 meetings/year. . . . 2,600 Total Personnel Expense . . . . . . . . . . . . . . . . . . . . . . . . . .$3,900 Travel, Meetings and Training . . . . . . . . . . . . . . . . . $2,400 Memberships $ Dues. . . . . . . . . . . . . . . . . . . . . . . 300 Printing, Office 8 Miscellaneous Supplies . . . . . . . . . . . 500 Total Other Expense . . . . . . . . . . . . . . . . . . . . . . . 3,200 Total - City Council Operations . . . . . . . . . . . . . . . . . . . . . 7,100 Clerical support would be provided by the City Manager's office. Elections. Total supplies and materials for the conduct of local elections are estimated to cost $4,500. The City Clerk is responsible for the conduct of all local elections. Total Elections Operations . . . . . . . . . . . . . . . . . . . . . . . .$4,500 City Manager. Current expenditures for the operation of a City Manager's office are shown below: City Manager/City Clerk @ $2,200 per month. . . . . . . . . . .$263400 Executive Secretary/Deputy City Clerk @ $900 per month. . . . . 10,800 Clerk Typist @ $600 per month . . . . . . . . . . . . . . . . . 7,200 Fringe Benefits @ 25% . . . . . . . . . . . . . . . . . . . . . 11,100 Total Personnel Expense . . . . . . . . . . . . . . . . . . . . . . . . . $55,500 Automobile @ $150 per month . . . . . . . . . . . . . . . . . .$ 1,800 Travel, Meetings 8 Training . _ . . . . . . . . . . . . . . . . 13200 Memberships $ Dues. . . . . . . . . . . . . . . . . . . . . . . 200 Printing, Office & Miscellaneous Supplies . . . . . . . . . 2,500 Total Other Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,700 Total - City Manager Operations . . . . . . . . . . . . . . . . . . . . . $61,200 City Attorney. City Attorney services can be provided through a retainer arrangement with a legal firm experienced in municipal law. The retainer would cover legal services for the City Council,City Manager and staff requiring services. Major litigation requiring extensive research and preparation would be billed on a separate case basis whenever needed and authorized by the City Council. City Attorney Retainer @ $800 monthly . . . . . . . . . . . . .$ 9,600 Additional Professional Services . . . . . . . . . . . . . . . 2,500 Travel, Meetings $ Training . . . . . . . . . . . . . . . . . . 400 Memberships and Dues. . . . . . . . . . . . . . . . . . . . 100 Total City Attorney Operations. . . . . . . . . . . . . . . . . . . . . . $12,600 Secretarial services and miscellaneous supplies would be provided by the contracting legal firm. II1-3 APPENDIX III Finance. This budget assumes the provision of an Administrative Services Officer who would serve as an assistant to the City Manager with specific responsibilities for finance, business licenses, purchasing and assisting the City Manager in detailed administration of contracts. Administrative Services Officer @ $1500 per month. . . . . . _ . . 18,000 Business License Clerk @ $700 per month . . . . . . . . . . . . . . 8,400 Fringe Benefits @ 25% . . . . . . . . . . . . . . . . . . . . . . . 6,600 Total Personnel Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$33,000 Travel, meetings, and training. . . . . . . . . . . . . . . . . . . $ 1,000 Annual Audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Dues & Memberships. . . . . . . . . . . . . . . . . . . . . . . . . 200 Printing, Office F, Miscellaneous Supplies . . . . . . . . . . . . . 2,000 Total Other Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,200 Total Finance Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 200 Engineering. This budget item anticipates the City contracting with a consulting engineering firm to act as professional advisor to the City and serve as City Engineer on a limited basis. Major engineering undertakings involving capital construction would be authorized and paid for separately, chargable to the project cost. City Engineer Retainer @ 1,000 monthly . . . . . . . . . . . . . . $12,000 Travel, meetings and Training . . . . . . . . . . . . . . . . . . . 400 Memberships & Dues. . . . . . . . . . . . . . . . . . . . . . . . . 100 Total Engineering Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . .$12,500 Non-Departmental. This account covers miscellaneous costs which are not easily directly attributed to one particular department. Insurance costs shown here do not include health, worker's compensation, social security and any other insurance associated with employment. Those costs are included in the 25% Fringe Benefits allow- ance on all budgeted departmental salaries. * Building Rental--2000 sq. ft. @ 55� per month . . . . . . . . . . . $13,200 General Insurance . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 City-wide Memberships F, Dues. . . . . . . . . . . . . . . . . . . . 4,700 Central Printing. . . . . . . . . . . . . . . . . . . . . . . . . . 7,200 Total Non-Departmental Expense. . . . . . . . . . . . . . . . . . . . . . . . . . .$59,100 * Until City Hall is constructed. Storm Drainage. Costs for these service levels are detailed in Chapter IV--Alternate Service Levels. Level 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cost Level 2 . . . . . . . Contract. . . . . . . . . . . . . . . . . . . $15,375 Level 3 . . . . . . . City Operation. . . . . . . . . . . . . . . . 14,375 Level 4 . . . . . . . Not Applicable. . . . . . . . . . . . . . . . Street Maintenance. The detail of costs for various levels of street maintenance are shown in Chapter IV. Level 1 . . . . . . . Not Applicable. . . . . . . . . . . . . . . . Level 2 . . . . . . . Contract Service. . . . . . . . . . . . . . . $65,385 Level 3 . . . . . . . Contract Including Storm Drain. . . . . . . . 80,760 Street Sweeping. Chapter IV more fully outlines costs for this service. Level 1 . . . . . . . No sweeping . . . . . . . . . . . . . . . . . Cost Level 2 . . . . . . . Every 6 months. . . . . . . . . . . . . . . . $ 700 Level 3 . . . . . . . Every month . . . . . . . . . . . . . . 4,000 Level 4 . . . . . . . Twice monthly . . . . . . . . . . . . . . . . 8,000 Level 5 . . . . . . . Not Applicable. . . . . . . . . . . . . . . . Projections allow for 5% annual growth in the miles of curbed streets to be swept in addition to the standard 6% inflation factor. III-4 APPENDIX III Street Lighting. Neither level of street lighting service relating to incorporation as outlined in Chapter IV would result in general city expenditures, but anticipate continued use of user financed districts. Transportation. Bus service is currently subsidized in the Grand Terrace area through funds received from S.B.325, state gasoline sales taxes. Level 1 . . . . . . . . . . . Continued level of funding . . . . . $30,000 Because of the uncertainty of this program neither the expenditure nor its related revenue are increased in future projections. Fire Service. A variety of potential service levels are fully explained in Chapter IV. Level 1 . . . . . . . . . . . Not Applicable . . . . . . . . . Level 2 . . . . . . . . . . . Contract . . . . . . . . . . . . . .$ 191,350 Level 3 . . . . . . Contract Inca. Paramedic. . . . . . . . . . . 356,450 Level 4 . . . . . . . . . . . Not Applicable . . . . . . . . . . . Level 5 . . . . . . . . . . . Not Available Level 6 . . . . . . . . . . . Not Applicable . . . . . . . . . . . Law Enforcement. Current costs for alternate levels of law enforcement are defined in Chapter IV. Level 1 . . . . . . . . . . . Not Applicable . . . . . . . . . Level 2 . . . . . . 1 Unit - 24 hours $ helicopter . . . . . . . .$156 863 Level 3 . . . . . . 1-2/3 units'- 24 hours & helicopter. . . . . . 204,755 Level 4 . . . . . . . . . . . Not Applicable . . . . . . . . . . . Animal Regulation. Neither level of service outlined in Chapter IV anticipates any direct expenditures, nor are fees shown in the revenues, since these would be retained by a contractor as payment for the service. Level 1 . . . . . . . . . . . Not Applicable . . . . . . . . . . . Level 2 . . . . . . . . . . . Contract with County . . . . . . . . No Direct Cost Parks. As defined in Chapter IV the following costs are shown where applicable for an incorporated city: Level 1 . . . . . . . . . . . No parks to maintain . . . . . . . . No Cost Level 2 . . . . . . . . . . . Quimby Act $ Overhead Costs. . . . . $32,7SO Level 3 . . . . . . .Quimby $ Purchase & 32,750 Recreation. Summarized below are the recreation service levels described in Chapter IV. Level 1 . . . . . . . . . . . No recreation program. . . . . . . . No Cost Level 2 . . . . . . . . . . Limited summer program . . . . . . . $ 7,500 Level 3 . . . . . . . . . . . Not Applicable . . . . . . . . . . . Planning. Described in Chapter IV under the main heading of "Land Use Controls" the following alternate service levels are defined: Level 1 . . . . . . . . . . . Not Applicable . . . . . . . . . . . Level 2 . . . . . . . . . . . Consultant or Retainer . . . . . . . $12,000 Level 3 . . . . . . . . . . . Not Applicable . . . . . . . . . . . Building Regulation. Alternate levels are fully defined in Chapter IV. Level I . . . . . . . . . . . Contract County Services . . . . No direct costs Level 2 . . . . . . . . . . . Level 1 & Environmental Coordinator $ 23,360 Level 3 . . . . . . . . . . . Not Applicable Gas Tax Fund For the purposes of initially calculating expenditures from this fund, only the major street construction projects included in the San Bernardino County Road Department's six-year capital construction program are included. Assum- ing November, 1978 incorporation the following four year program leaves $114,802 -in unspent local monies in this fund. Added to the partial year (1978-79) accumulations, approximately $150,000 in local match or project money should be available to substantially expedite and expand the major street development program currently planned. III-5 APPENDIX III Should matching federal and state money not be available to speed up this capital program construction, or should a City Council decide to utilize the surplus in a different manner, any or all of the annual surplus could be applied toward street maintenance or construction costs. Capital Improvement Fund The 34.984 tax rate per $100 assessed valuation currently paid to finance various county services produces $649,135 during a four-year period, outdistancing the cost to amortize all capital improvement needs shown in Chapter V by $43,919. The surplus of revenue over expenditures grows each year and reaches $35,587 for the last year of this projection. Costs for all improvements, defined as level 4 in the chapter "Capital Budget Projections," are based on 20 year financing for all improvements except fire and paramedic equipment, which is amortized over 15 years. Add costs are projected to be amortized on a conservative schedule at 6% interest. III-6 LOCAL AGENCY FORMATION COMMISSION L.A.F.C. COUPE! I -� OF SAN It` RNARUINO 1111 East Mill Street, Building 1, 2nd Floor San Bernardino, CA 92415 • (714) 383-2611 October 18 , 1977 Municipal Advisory Council - Grand Terrace 22038 Van Buren Colton, California 92324 Ladies and Gentlemen: The LAFC Staff has been asked the procedure which will be followed relating to the request for review of the Sphere of Influence for the City of Colton and the subsequent consultants report. We will outline this for you: (for review) 1 . Last spring the City of Colton made a request of the LAFC to review its Sphere of Influence 2 . In response to requests for information from Staff: a. The City of Colton responded with appropriate data. b. The Community of Grand Terrace requested that the Sphere review be deferred until it had an opportunity to review its options. 3 . Subsequently, the County (on behalf of the ex- tended Grand Terrace Community) entered into contract with Public Administration Service (a private consulting firm) to review and make a report which would outline the options for governmental services which might be available to the Community. 4 . ' The Staff will place the review of the Sphere of Influence of the City of Colton on the Decem- ber 14th LAFC Hearing Agenda. coMnnl�,InNI=..f<s. VVII I I,\ 1 HARTZE111 , P,il,lit:_Mlami,�''r, Chairman nt S. JA^AI '; f IAYFIELD, Buarcl of Sul,rarvisor, MIKE: c;. Jihlf fii :', I:nia;r:': r:1rt, I- H J'\101'-S GILLIAM. (:uunc:itntan, Bat-stow NORNIPP FCF`Wi - I I c d (-i;ti HE.fiALD Br_RTOLOI II. SIx!c-ial i)i.tricts AL.TF ',NA IES EF1NA '".t HUII ING, I' rhli; Mcn'rl+., C`f=i,1".II I1 "+' !;r.' !;, I;n:• LEONARD FRKETIC:H, Ctn,ric:ihrian. (rhino PAW Cl f'..(?N "1 I I)WIq 1 WALTFR UNDERHILL,Sr�,:cial Districts-- ROItFRF B. RIt;NE e Fyerw iveWficer IV — 1 . — I r.Iii ! Ilr fillr,[ nl E • A COMMISSION OF THE STATE OF CALIFORNIA FOR SAN t PFf1NAfl DliJI1 ' i of`� ":III Municipal Advisory Council Grand Terrace - page Two October 18 , 1977 That hearing will include : The Staff report which will include the LAFC concept for Spheres of Influence, will include the City of Colton data input, and will outline the various alternatives open to the Commission. The Commission will hear the report from the City of Colton (if it chooses to make one) . The Commission will receive any input from the public (or from Grand Terrace MAC) if there are people who wish to be heard. The Commission will then consider whether or not changes should be made to the existing City . of Colton Sphere of Influence. It may well be that there will be additional information requested by the Commission or that the Commission may need more time to study the information presented. Its possible that the Commission may wish to visit the Sphere Area before reaching a final decision. In this case, the Commission will continue the Nearing until January 11 , 1978 and possibly reach a decision at that time. In considering the position the Community of Grand Terrace might take relating to the Sphere of Influence Hearing, the Staff feels that on this issue the Community has the following options : 1. It can recommend that the Grand Terrace Community be included within the City of Colton Sphere of Influence, and this would mean that in the long range the urban services for Grand Terrace would be supplied by the City of Colton. 2 . It can recommend that on the basis that Grand Terrace is or wishes to be an in- dependent Community that it be left out of the Sphere of Influence of Colton and be given its own Community Sphere. In this event, the Community must define what it perceives to be the Grand Terrace Community, and explain to the Commission the public entity or source from which it expects to receive needed present and future urban services . IV-2. Municipal Advisory Council Grand Terrace - Page Three October 18 , 1977 It shall be the position of the Staff that as a Community becomes an "urban" area, it should become (in its own self interest) more than a combination of county and special district urban services . It should either become a multi-purpose special district, or incorporate into a City, or annex to a City capable of supplying urban services needs . Looking at the various options and determining which option will best meet the needs of people who are in the areas surround- ing the City of Colton will be the thrust of the Sphere of In- fluence Hearing. The MAY- and other interested people should be prepared to speak to these ese issues at the December Hearing. Cordial Larry Hendon, Assista t Executive Officer LHH: sp cc : Supervisor Dennis Hansberger Al Reid - Special Districts City Manager - City of Colton IV-3. CE /vT FRT p RI. Q�fN 0 F� o ? CITY OF COLTON As AM, PfNOE C°MM0 November 9 , 1977 Public Administration Service c/o Special Districts Department 1111 West Mill Street San Bernardino , California 92415 ATTN : Lee Weber Dear Mr. Weber : By separate cover , Colton ' s comments on provision of services to the unincorporated areas south of Colton , are being pro- vided. The purpose of this note is to provide and suggest corrections and other constructive criticisms for your interim drafts "Grand Terrace Public Services Study" . Population Projections The basic approach used is reasonable . Your statement that "the Grand Terrace sanitary sewer collection and treatment capacity is fully adequate for the five-year period of growth projected in this report" is very questionable . Considering Colton ' s growth and resultant demands on treatment capacity at the Water Quality Control Plant , the projected growth may not be achievable . Assessed Valuations These projections may be too optimistic . Directly correlating A-V to population does not consider the slower rate historically found for utilities . Assuming an annual compound rate of 2% for utilities only , the following A-V projections are found : Fiscal Year Estimated Total Valuation �o\-uTIOA, 1977-78 $27 ,403 ,000 o, 1978-79 $31 ,631 ,000 C)�2 1979-80 $38 ,627 ,000 v m 1980-81 $42 ,071 ,000 1981 -82 $45 ,829 ,000 �b M^ate 1982-83 $49 ,924 ,000 U ?6-1916 COLTON CIVIC CENTER 650 NORTH LA CADENA DRIVE COLTON, CALIFORNIA 92324 (714) 825-3110 SISTER CITY • CANANEA, SONORA, MEXICO V-1 Mr. Lee Weber November 9 , 1977 Page Two The net result of this is a $3 , 503 ,000 lessening of A-V in 1982-83 and a cumulation reduction in A-V for the entire period of $13 ,206 ,000 . This would affect the setting of tax rates and projected incomes therefrom. Electric Colton has the legal right to acquire all of Edison ' s facilities within the corporate limits of Colton . This right cannot and does not eliminate Edison ' s absolute responsibility to provide service and maintain this system. State law and PUC orders re- quire maintenance at a safe and serviceable level . A later pur- chase would repay the investment . " Indefiniteness of Electric Service levels " is a straw-man . Fire Service Cost projections are probably too low. They assume three men can man a station around the clock for a full year. Due to vaca- tion , sick leave , and other absences , the minimum figure is closer to four (4) men for constant manning . This would raise all other projected level of service costs accordingly . This portion of your report discussed issuance of bonds . If this is intended to include general obligation bonds , it should be noted a 2/3 majority vote is required in order for a City to issue . If a 2/3 vote could not be obtained , the projected 6% interest rate would be extremely low. Library Level II indicates construction of a County library in a City Hall complex . Immediate accomplishment of this is highly im- probable unless agreed to by County in advance . Recreation General obligation bonds are again mentioned but not the 2/3 vote requirement. If overall development is limited due to limited sewage treatment capacity , projected monies from that construction for park acquisition and development would be drastically reduced . v—2 Mr. Lee Weber November 9 , 1977 Page Three Revenue and Expense I would like to delay my comments on the revenue and expense portions of the draft report because the expense portion has not been provided to the City . However , I would like to point out some general things in the expenditure area and in the revenue projections . Expenses I don ' t know if this will be addressed in the next portion of the report , but some expenditures which were not addressed in the service levels are : street striping and signing expendi - tures ; street tree maintenance programs ; engineering and design costs ; curb , gutter and sidewalk programs ; city administration ; a city attorney ; a city finance function ; the highly expensive provision of liability and other types of insurance ; interim City Hall facilities ; and , general overhead expenditures , such as utilities , office supplies , equipment , etc . Revenue The revenue projections have two areas that are of concern and may be potentially misleading to a casual reader of the report . The basic revenue projections include $168 ,000 in the first year from a utilities tax . This tax is only available to charter cities and is not available to general law cities . Additionally , the first year utilities tax cost is estimated to be equivalent to a tax rate of . 6U per $100 of assessed valuation . The revenue projections also propose a construction tax which is a one-time charge imposed on new construction . This tax is projected as a general fund source which means they are projecting one-time revenue for the provision of ongoing operating costs . This certainly is not illegal , but should be considered as a potential future problem. The revenue growth rates , in some cases , may be optimistic . For instance , the growth between the first and second years for the utilities tax is estimated at 24% . The growth between the second and third years is estimated at 23% and the growth in all future years projected is 10% . The growth in the sales and use tax is estimated at 14% from year one to year two , 12% from year two to year three , 12% from year v-3 Mr. Lee Weber November 9 , 1977 Page Four three to year four , and 8% for the remaining projected years . That consistent level of increase may be optimistic . It tends to disregard any near-term cyclical movements in the economy . The capital improvement fund projection begins in 1979-80 and runs through 1982-83 . It is based upon a tax rate of $0 . 3498 per $100 of assessed valuation . The revenue realized from this source would be less than the amounts listed if my assessed valuation numbers previously reported were used rather than yours . Very truly u s THOMAS CALABRESE City Manager TJC :mr cc : Mayor & Council Board of Supervisors Municipal Advisory Council Members City of Loma Linda San Bernardino Assn . of Governments Local Agency Formation Commission V-4 i O F CITY OF COETON 1887 OR��� INTEROFFICE MEMORANDUM TO: Mayor and City Council DATE: November 9, 1977 FILE NUMBER: FROM: Thomas J. Calabrese, City Manager SUBJECT: COMPARISON OF SERVICES PROVIDED IN THE UNINCORPORATED AREAS SOUTH OF COL`fON AND SERVICES TO BE PROVIDED IF THESE AREAS ARE ANNEXED RE: Public Administration Service Report on Public Services Study for Grand Terrace For the purposes of this comparison, the same format as provided in the PAS report is utilized. Services are addressed in the same order and arrangement. PUBLIC SERVICES The PAS report lists services provided in the unincorporated areas south of Colton as telephone, gas , electric, refuse, water, and sanitary sewer. Telephone service is provided by Pacific Telephone and Telegraph Co. The basic prefix for Colton is 825; for the unincorporated areas south of Colton, 783. The 825 prefix serves a much larger area. If annexation occurs, the City of Colton would petition the telephone company to change tine prefix used in the unincor- porated areas south of Colton. Natural�Cas service to the unincorporated areas south of Colton is provided by the Southern California Gas Co. Colton is supplied by the same source. This nation is facing impending shortages of natural gas and resultant rate increases . The City of Colton, as a political entity, has consistently taken a position in favor of addi- tional natural gas services to the Southern California area and will continue to do SO. Electric !itility service to the unincorporated areas south of Colton is provided by the Southern California Edison Company. The City of Colton serves the majority of residents and businessmen within its own corporate boundaries . Others are served by Southern California Edison. The City of Colton purchases electricity from the Southern California Edison Company for resale to its customiers. The City of Colton would have the option of purchasing and operating the electric distribution system within the unincorporated areas south of Colton if annexed to the City of Co)ton. The PAS report states "Edison may be detered from making de- sirable, i,,,ipri,vewents being unsure as to when, if ever. Colton would move to acquire." It -is felt this statenment is false and mrsleadinc, as- stitle law and tht enforcement acti;i ti cs of the Public [I-i 1 i t i os Comm i ssi o,, of the State of California t;oul d force and re'rjuire Edison Coin-my to ser%./e and t)rovide a -1cli;ato amounts ot, electrical eneriv, V-5 Mayor and City Council November 9, 1977 Page Two If the service was later to be purchased by the City, fair market value is paid under all condemnation proceedings, and in the case of a complex appraisal problem such as an electrical facility, fair market value includes within it estimates of the present value of the future income stream from utilization of those improvements. San Bernardino County presently regulates private refuse haulers and their rates for the unincorporated areas south of Colton. Refuse collection services, twice weekly pick up in residential areas for $4 a month, are provided by the City within the corporate limits of Colton. If the unincorporated areas south of Colton annexed, present haulers would be notified that they have three years to discontinue service at which time the City of Colton would opt to provide service. Under present refuse ordinances and regulations all houses or businesses must subscribe for refuse service in order to provide a healthy and esthetic environment. Water for the unincorporated areas south of Colton is presently served by the City of Colton or the Riverside Highland Water Company, a privately owned mutual water company in business since 1898. Based upon the information in the PAS report it appears that the Riverside Highland Water Company can provide an annual volume which is adequate to provide water for the projected population of the unincorporated areas. If these areas were annexed to the City of Colton, a determination would have to be made as to long run benefits for provision of coordinated services and planned orderly develop- ment according to the need of the City and possible acquisition of Riverside Highland Water Company's services in these areas. The City b f Colton presently has more than adequate water capacity to serve these areas. With the changes in federal and state laws , the provision of sanitary sewer services has in recent years become critical to continuation or growth of communities. Pre- sently the City of Colton provides this vital service for the unincorporated areas south of Colton. There is no other reasonable, viable, economical alternative for provision of this service to these areas . PUBLIC WORKS Public works services provided in the unincorporated areas south of Colton include storm drainage, streets , street sweeping, street lighting, and transportation. Provision for flood control and storm drainage are minimal and inadequate for the unincorporated areas south of Colton. The San Bernardino County Flood Control Dis- trict is -concerned with regional flood control problems and properly so. Provision of local drainage systems is the responsibility of a city and annexation of the unincorporated areas south of Colton to the City of Colton would logically and pro- perly solve these problems. The City of Colton is in a better position to obtain federal or other fundings for drainage and street capital improvements . Annexation would immediately provide the alternative of utilizing redevelopment agency authority to improve existing storm drainage with no increase in taxes. The report states that present street services provided by the County appear to be both "inadequate" and that "some increases in the level of maintenance should be ex- pected regardless of w,hi ch direction the area moves in r'est•ructur i ng local, government. " It is beyond a reasonable man's expectation that service levels will improve by doing nothing. V-F Mayor and City Council November 9, 1977 Page Four paramedic equipped as a back up unit. This unit would respond to additional calls should the primary unit be on call . A chief officer would respond to all struc- tural fires or any incident requiring two or more engine company response. Outside of the construction cost of the third fire station for which land has already been purchased and is available, all costs could be assumed under the general tax rate. Police services are presently provided by the Sheriff's Office of San Bernardino County. When a unit is available for patrol , that unit is assigned to an area designated as "Area 6" which encompasses ,Nest Colton, Slover Mountain, County un- incorporated territory of La Loma Hills to Riverside Avenue and extending to the Riverside County line, Grand Terrace county area, Reche Canyon, and county areas south of Norton Air Force Base and west of Tippecanoe. This 14.5 square miles is more than twice the size of Grand Terrace. If the unincorporated areas south of Colton were to annex to the City of Colton, Colton would provide the same total police services for all citizens and businesses presently provided within the City of Colton. This would include patrol services , calls for services and inspection of commercial establishments. This would be accomplished by placing one police unit in the unincorporated areas south of Colton on a 24 hour basis. Helicopter back up patrol services would also be provided. Animal control services, detec- tive services and back up administrative costs would also be provided as a part of the basic tax rate. in the opinion of the police chief of the City of Colton, these provisions would provide a much much higher level of police service than the residents and businessmen of the unincorporated- areas south of Colton presently receive. The felonv crime statistics contained within the PAS report indicate a high property loss w,rhich may be correlated with poor to inadequate police patrol within these areas. Regular patrol has been often shown to be a deterent to pro- perty loss. Consistent detective follow!-up of crimes and crossing guard programs are further deterents to the type of crimes mentioned. LEISURE SERVICES Leisure services in the unincorporated areas south of Colton consist of library . and parks and recreation services . Library services are provided throughout the County by means of a library district with a tax levy of $1 .524 per $100 of assessed valuation. Some Grand Terrace resi- dents use the Riverside County Library on Center Street in Highgrove. However, it is felt the unincorporated areas south of Colton have historically looked to Colton for library services. Prior to the California Public Library Services Act of 1957, the Colton Library received funds and material fror,► the County library -in exchange for giving library services to these areas. Since then, the Joint Powers Agreement for the Inland Library System assures equal access to all libraries in the system and Colton has continued to allow; service to residents of the unincorporated areas with- out reimbursement but with some sharing of materials . The County does provide occasional book mobile service but the two nearest branch libraries are in Loma Linda and {rialto. If the unincorporated areas south of Colton annexed, the resi- dents and businessmen would have absolute right to use the Colton Library and its materials and services . if these areas do not annex, the City would have the option V-7 Mayor and City Council November 9, 1977 Page Three Provision of street services, including street striping and signing which are ex- cluded as cost items from the PAS report, can be provided within the regular tax rate applied within the City of Colton if this area annexes. If it is true that street improvements have not been provided in these areas due to the recent con- struction of sanitary sewer facilities , these improvements should be immediately required of the County in order to reduce short-term and long-range costs. Street sweeping is a non-regular program in the unincorporated areas south of Colton. The City of Colton provides street sweeping services in residential areas at a level of every other week. The annual cost is based on an approximate cost of $3.75 a curbed mile and is included in the basic tax rate. This would provide a drastic improvement in services to residents with comparable benefits to the commercial areas. Very limited street lighting is presently provided through a tax rate imposed by the County services area SLI ($0.1740 per $100 of assessed valuation) . These lights are provided by the Edison Company at a cost of $8,248 annually. This is $87.85 per year per light, or $7.31 per month per light. Colton has 2,500 street lights. Colton now pays $72,000 for its 2,500 street lights per year. . This costs out to a substantial savings in the amount provided for street lighting if these areas annex to the City of Colton and Colton provides street lighting. Annexation to the City of Colton would immediately upgrade the transportation ser- vices available in the unincorporated areas south of Colton by the ,provision of a Dial-A-Ride program at no additional cost to the residents . Colton's Dial-A-Ride ,program is funded out of SB 325 monies with the charge of only 5U per ride to the residents. By annexation to the City of Colton, the City's representative on the Omnitrans Board would be in a highly advantageous position to assist in bus trans- portation routing and improvements. The Mayor of the City of Colton is also Chairman of the East `alley Transit Service Authority which approves and recommends i,erouting to the Omnitrans Board. The Mayor of Colton is also on the executive board of the San Bernardino Association of Governments which is the regional clearinghouse in transportation matters. PUBLIC SAFETY Public safety services provided in the unincorporated areas south of Colton include fire services, police or law enforcement services, and animal regulation. Fire protection and rescue service in the unincorporated areas south of Colton are currently being provided by the San Bernardino County Forestry and Fire Warden Departments. The nearest fire station is in Loma Linda. If the unincorporated areas south of Colton annexed to the City of Colton, fire protection and paramedic service would be provided. Colton is currently planning a third fire station within minute response to most of the unincorporated areas . The level of fire protection would include: (1 ) residential areas --- response by two engine companies and a paramedic unit; (2) commercial areas --- response by three engine companies and a paramedic unit; (3) paramedic and rescue responses Would be provided through the paramedic unit with an engine company back up. The department also has a second V-8 Mayor and City Council November 9, 1977 Page Five of discontinuing allowance of use of its library services and materials for resi- dents of the unincorporated areas. Neither parks nor community oriented recreation services are currently provided within the unincorporated areas south of Colton. Annexation to Colton would pro- vide a specific program for park land acquisition and development within these unincorporated areas which would be funded by new construction. Historically residents of these unincorporated areas have utilized recreation and park services of the City of Colton at no cost. Residents and businessmen of Colton pay for maintenance and operation of these facilities through the basic tax rate. If the unincorporated areas south of Colton annexed, they would share equitably in the cost for maintenance and operation of these recreation systems and for maintenance and operation of future systems to be constructed. If the unincorporated areas south of Colton were not to annex, Colton could consider a policy decision limiting access to its parks and recreation activities to residents and businessmen of Colton as they are the ones paying for these programs. SOCIAL SERVICES PAS reports that a variety of social services are provided for the unincorporated areas south of Colton through the San Bernardino County Environmental Improvement Agency, Health Care Services Agency, and the Law Enforcement and Justice Agency. If the unincorporated areas south of Colton annexed. to Colton, in addition to these County-provided services, which are provided to all , social service pro- gramming could be improved through access to the two new social service programming centers under construction at Municipal and Veterans Parks in the City of Colton. LAND USE CONTROLS The PAS report states that land use controls occur through the application of planning, zoning, subdivision and building regulations by San Bernardino County Staff. One of the greatest benefits to the people residing in the unincorporated areas south of Colton if they annex to the City of Colton would be their ease of input into the Colton planning process. Annexation would greatly facilitate their local control of development. The Building and Safety Department for the City of Colton presently provides -inspection programs with one-day service. It is currently understood County inspections are delayed up to two or three days from time of call . CAPITAL IPIPROVEMENTS The PAS report stresses the need for construction of a civic center complex to in- clude among other things city hall , public safety facilities , post office and library. If the unincorporated areas south of Colton annex to Colton, there will be no programmed, immediate or long-term, costs for construction of a city hall complex as the City of Colton already has a Civic Center complex. As discussed before, there is and will continue to be a need for a third fire station. The third fire station is in the capital improvements program adopted by the City Council of the City of Colton. Construction is considered probable within a few years, or earlier if annexation occurs. V-9 Mayor and City Council November 9, 1977 Page Six There would be no immediate need for construction of a library; however, in the long run, some provision need be made for expanding the services of the library, possibly by an outlying station to serve these southern portions. Also considered priorities in the capital improvement program are construction of City "yards" to house present equipment, and construction of a water reservoir to insure adequate water flow and pressure for fire protection and service to residential and commer- cial establishment in southern portions of the City. These constructions would also benefit the unincorporated areas south of Colton if they annex to Colton. BUDGET PROJECTIONS If the unincorporated areas south of Colton annex to Colton application of the basic tax rate of $1 .8357 per $100 assessed valuation and other in-lieu taxes will provide income assuring provision of comparable services as provided in pre- sent corporate Colton. It can be stated that there will be no property tax rate increase as a result of annexation while services will be provided for the first time or at a greatly increased level . It must also be stated those living in the unincorporated areas south of Colton do not have to fear a drastically increased tax rate in the near future. Property tax increases are limited bystate law and major revisions must be voted in by the people. Colton's present full service tax rate application is shown in comparison to rates/ costs for present County service taxes in the unincorporated areas south of Colton in attached Chart No. 1 . CONCLUSION New or additional services to be provided if the unincorporated areas south of Colton annex to Colton: Police services --- 24 hour patrol service, response within limited time to calls for service, inspection of commercial establishments. Helicopter back-up patrol ser- vice will also be provided. Detective follow-up and crossing guard programs will also be provided. Animal control services will be provided in response to calls and in patrol . Fire services --- fire protection and paramedic with two to four-minute response from soon-to-be constructed Fire Station No. 3. Back-up engines and paramedic unit are available. Street services --- street needs would be included in a master plan with new construc- tion and maintenance programs implemented. Planning --- growth control and economic development must be Master Planned. These reports and policy instruments must be periodically reviewed and can be through locally controlled Planning Commission dnd City Council . Annexation will provide local control in the hc-rnds of those living and affected by these decisions. v-10 Mayor and City Council November 9, 1977 Page Seven Recreation services --- development tax and programming for eventual recreation needs would be developed and implemented based on public input. Telephone services --- Colton would petition Pacific Telephone to extend the 825 prefix into the newly annexed areas providing a much larger service area with- out extending costs. Capital improvements --- pursuit of grant programs and use of the Redevelopment Law provisions to reduce costs of needed storm drains , streets, and other public improvements. Administrative services --- existing professional staff, serving residents full time. ist Attachment V-11 CHART NO. 1 CITY Or COLTON COMPARISON OF CURRENT UNINCORPORATED AREAS SOUTH OF COLTON TAX RATE WITHOUT CITY SERVICES AND CITY OF COLTON TAX RATE FOR FULL CITY SERVICES (l)County Service Colton Tax Annual Tax Monthly Current ilarb:et Tax $0. 3498 (2) $1 .8357 (2) Difference Difference 'Jalue of Assessed Less $1750 With No City With Full City For Full City For Full City ;!Dose Value (25%) Homeowners Ex. Services (3r _ Services (3) Services Services w 20,000 $ 5,000 $ 3,250 $11 .37 $ 59.66 1" 48.29 $ 4.02 30,000 7,500 5,750 20.11 105.55 85.44 7.12 40,000 10,000 8,250 28.86 151 .45 122.59 10.22 50,000 12,500 10,750 37.60 197.34 159.74 13.31 60,000 15,000 13,250 46.35 243.2.3 196.88 16.41 70.000 17,500 15,750 55.09 289.12 234.03 19.50 30,000 20,000 18,250 63.84 335.02 271 .18 22.60 90,CC0 22,500 20,750 72.58 380.91 308.33 25.69 100,O00 25,000 23,250 81 .33 426.80 345.47 28.79 (1 ) Street Lighting District #1 cast not included. ;2) Tax rates shown are in dollars per $100 of assessed valuation. (3) Annual cost. V-12 CITY OF LOMA LINDA J-11 P. O. Box 965, Loma Linda, California 92354 • Tel. (714)796-2531 LOMFrom the Office of: City Manager CA November 21 , 1977 Lee Weber, Public Administration Service c/o Special Districts Department of San Bernardino County 1111 E. Mill Street - Building B-1 , 2nd Floor San Bernardino, CA 92415 SUBJECT: GRAND TERRACE STUDY Dear Lee: Your studies concerning the community of Grand Terrace and its future which have been submitted to us have been submitted in their entirety to the City Council of the City of Loma Linda. At the regular meeting of October 25, 1977 the City Council was asked to submit any comments that they might wish to make in connection with these studies and their possible future involvement with the City of Loma Linda. It was the unanimous opinion of the City Council that this office be authorized and directed to inform you that should the community of Grand Terrace incorporate as a city and at that time desires to explore the possibilities of joint municipal cooperation for the purpose of bene- fiting both of the communities, then, in that event, this City would be interested in entering into such discussions. This above obviously reflects a general policy of the City Council . They are always interested in exploring means of saving taxpayers money. If joint municipal cooperation will result in savings, then they wish to explore any such possibilities. In the event of the incorporation of Grand Terrace, we look forward to co-operating with them. Sincerely yo Robert R. Mitchell City Manager/Clerk' RRM/nc VI-1 .