AGENDA
SPECIAL MEETING OF THE CITY
COUNCIL OF THE CITY OF DUARTE
TUESDAY, NOVEMBER 14, 2023
6:00 PM
CITY COUNCIL CHAMBERS,
1600 HUNTINGTON DRIVE,
DUARTE, CALIFORNIA 91010
MISSION STATEMENT
With integrity and transparency, the City of Duarte provides exemplary public services in a caring and fiscally responsible manner with a commitment to our community's future
JODY SCHULZ, MAYOR
VINH TRUONG, MAYOR PRO TEM
MARGARET FINLAY, COUNCILMEMBER
SAMUEL KANG, COUNCILMEMBER
TONEY LEWIS, COUNCILMEMBER
CESAR GARCIA, COUNCILMEMBER
TERA MARTIN DEL CAMPO, COUNCILMEMBER
City/Agency/Authority Staff:
Brian Villalobos, City Manager
Kristen Petersen, Assistant City Manager and Director of Administrative Services Craig Hensley, Director of Community Development
Manuel Enriquez, Director of Parks and Recreation
Larry Breceda, Director of Public Safety Services
Thai Viet Phan, City Attorney
Annette Juarez, City Clerk
___
ADA ACCESSIBILITY NOTICE: In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, you should contact the City Manager's office at (626) 357- 7931. Notification no later than 1:00 p.m. on the day preceding the meeting will enable the City to make reasonable arrangements to assist your accessibility to this meeting.
Notice: Any documents distributed by the City/Authorities to a majority of the City Council/Housing Authority/Financing Authority Board less than 24 hours prior to the City Council/Housing Authority/Financing Authority meeting will be made available for public inspection at City Hall, 1600 Huntington Drive, Duarte, CA 91010, during normal business hours, except such documents that relate to closed session items or which are otherwise exempt from disclosure under applicable law.
Notice: Duarte City Council meetings are videotaped for later broadcast on DCTV. Attendance at the 1 1. CALL TO ORDER AND ROLL CALL
A. Special Meeting Notice
2. ORAL COMMUNICATION - ITEMS LISTED ON THIS AGENDA
3. WORKSHOP TO DISCUSS AND ASSESS ROYAL OAKS MANOR ANNEXATION A. Resolution of Application to annex to the City of Duarte the territory encompassing Royal Oaks Retirement Community
It is recommended that the City Council give direction to City staff regarding the support or opposition of HumanGood SoCal’s Application to the Local Agency Formation Commission for the County of Los Angeles (LAFCO) requesting the annexation to the City of Duarte of the territory encompassing Royal Oaks Retirement Community.
4. ADJOURNMENT - To Scheduled Regular City Council Meeting meeting constitutes consent by members of the public to the City's and any third party's use in any media, without compensation or further notice, of audio, video, and/or pictures of meeting attendees.
Members of the public may listen/view the City Council meeting broadcast on the City’s website following each meeting. To access the meeting, log onto www.accessduarte.com then on the homepage, click on the Agendas/View Meetings icon under the LATEST NEWS/QUICK LINKS banner, then on the Agendas & Minutes page, click on the City Council Meeting link. City Council meetings are also broadcast following each meeting through Spectrum Cable, Channel 3, daily at 12:00 p.m. and 7:00 p.m.
Public comments can be submitted by emailing [email protected], prior to 5:00 p.m. on the day of the meeting and will be distributed to the City Council and made available for public review.
PLEASE NOTE: The subject line of your public comment email must contain the Agenda item number or title. Public comments are a matter of public record, including content that include emails and addresses, so consider content and remove private information as you deem appropriate. ____
.
AFFIDAVIT OF POSTING
I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing Agenda was posted at the following locations: City Hall – 1600 Huntington Drive Avenue, Duarte Public Safety Department – 1042 Huntington Drive, Duarte Library – 1301 Buena Vista Street, and the City of Duarte website (www.accessduarte.com) not less than 24 hours prior to the meeting per Government Code 54956.
Dated this 8
th day of November, 2023
Annette Juarez, MMC
City Clerk
2 1
NOTICE AND CALL OF SPECIAL MEETING OF THE
CITY COUNCIL OF THE CITY OF DUARTE
NOTICE IS HEREBY GIVEN that the majority of the City Council have called for a special meeting of the City Council of the City of Duarte to be held in the City Council Chambers on Tuesday, November 14, 2023, at 6:00 p.m. The special meeting agenda will appear as follows:
SPECIAL MEETING AGENDA
1. CALL TO ORDER AND ROLL CALL
2. ORAL COMMUNICATIONS – ITEMS LISTED ON THIS AGENDA
Any person wishing to speak on any items listed on this special meeting agenda, may do so at this time. The opportunity to speak is on a first come, first serve basis. Each person may speak once for no more than 3 minutes for all Oral Communications at this time. Public comments may be submitted by emailing [email protected] before or during the meeting, prior to the close of public comment.
Under the Brown Act, members of the City Council and staff can respond only with a brief reply to issues raised in Oral Communications, and no action on such matters may take place at this meeting.
3. WORKSHOP TO DISCUSS AND ASSESS ROYAL OAKS MANOR ANNEXATION APPLICATION
4. ADJOURNMENT – To Scheduled Regular City Council Meeting Dated: November 8, 2023
Annette Juarez, MMC
City Clerk
I, Annette Juarez, City Clerk, hereby certify that the foregoing notice of special meeting was posted on November 8, 2023 at the following locations: City Hall – 1600 Huntington Drive Avenue, Duarte Public Safety Department – 1042 Huntington Drive, Duarte Library – 1301 Buena Vista Street, and the City of Duarte website (www.accessduarte.com) not less than 24 hours prior to the meeting and delivered to each member of the Duarte City Council and to the following newspaper: Pasadena Star-News.
Annette Juarez, MMC
City Clerk
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 32
www.berksonassociates.com
REPORT
ANNEXATION FISCAL ANALYSIS (AFA)
ANNEXATION OF ROYAL OAKS RETIREMENT COMMUNITY
TO THE CITY OF DUARTE
Prepared by BERKSON ASSOCIATES
for the City of Duarte
March 2, 2023
33 AFA Duarte Annexation of Royal Oaks
March 2, 2023
[This page intentionally left blank]
34 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates
TABLE OF CONTENTS
1. Purpose and Background..........................................................................................................................1
2. Summary of Findings.................................................................................................................................3
3. Annexation Area Overview.......................................................................................................................6
4. Public Services to be Provided and Costs.................................................................................................7
5. Duarte City Budget Revenues.................................................................................................................13 35 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 1
1. PURPOSE AND BACKGROUND
OVERVIEW
The Royal Oaks Retirement Community, an
unincorporated Los Angeles County “island”
surrounded by the cities of Duarte and Bradley
as shown in Figure 1, seeks to annex to one of
the two cities. Annexation would benefit the
Retirement Community in a number of ways.
BENEFITS TO THE RETIREMENT
COMMUNITY OF ANNEXATION
Benefits to the Retirement Community of
annexation include: 1
1. Debt Restructuring. It is easier for a
non-profit to facilitate periodic
participation in Tax Equity and Fiscal
Responsibility Act (TEFRA) hearings that
provide for public comment on the use
of tax-exempt bond proceeds by the
Retirement Community.
2. Permitting. The Retirement Community feels that planning approvals and permitting would be easier, quicker and more streamlined if through a city as opposed to the County.
OTHER BENEFITS OF ANNEXATION
In addition to the Retirement Community’s objectives, being part of a city provides improved opportunities for Retirement Community residents to participate in City recreation and other programs and to engage in civic affairs generally.
Likewise, a city provides a governance structure and forum to assure that the Retirement Community collaborates in and complies with local planning and land use requirements. 1 City of Bradbury Staff Report to the Council (Aug. 16, 2022).
Figure 1 Location of Royal Oaks Retirement Community
(County “CO” Unincorporated Parcel in Yellow)
36 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 2
ANNEXATION BY THE CITY OF BRADBURY
State law that created a Local Agency Formation Commission (LAFCO) in each county to oversee jurisdictional boundaries generally discourages unincorporated “islands” due to service inefficiencies and to improve public services, infrastructure and land use planning.2 Under current law cities must be contiguous, constraining the City of Bradbury from annexing only a portion of the Retirement Community property for redistricting purposes.
The City of Bradbury’s City Council, when considering annexation of a portion of the Retirement Community property to facilitate redistricting, generally opposed annexation of the entire Community contiguous to the City as required by State law and LAFCO. The Council voted to not proceed with annexation.3 Council discussion suggested annexation by Duarte as an option.
OPPORTUNITY FOR ANNEXATION BY THE CITY OF DUARTE
The City of Duarte engaged Berkson Associates to prepare an Annexation Fiscal Analysis (AFA) to evaluate fiscal implications of the City of Duarte’s potential annexation of the Royal Oaks Retirement Community. The following chapter summarizes findings of the AFA.
Shown above: Royal Oaks Drive North looking east past Royal Oaks Retirement Community. Along the southern side of the road is the trail maintained by the City of Bradbury. A bridge perpendicular to the south side of the road across from the Community is a Duarte Trail pedestrian overcrossing. 2 Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, Gov. Code Sec. 56000 et. seq. 3 City of Bradbury City Council meeting minutes, Aug. 16, 2022. 37 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 3
2. SUMMARY OF FINDINGS
The annexation of the Royal Oaks Retirement Community (RORC) has a minimal positive net impact on the City of Duarte’s General Fund as summarized in Table 1.
The property is exempt from basic 1% property taxes but does pay additional assessments and charges.
Onsite taxable sales produce a small amount of sales tax, and utility billings will generate franchise fee revenues to the City. These revenues offset a share of existing public safety costs; the share is estimated proportionate to RORC’s calls for service relative to total City calls for services.
Gas taxes and related revenues are estimated to exceed a share of maintenance costs for the portion of Royal Oaks Drive North road and trail added to the City along RORC frontage.
Although RORC generates 13 total calls for service per year (including 2 to 3 emergent calls4), or less than one percent of total City calls averaging 5,900 total calls for service (including 290 emergent) over the last two years, the annexation of RORC according to the Sheriff’s Department “...would potentially have a significant impact to the current law enforcement services provided by the [Duarte] Substation due to the increase in volume and length of emergent calls for the services.” 5 Currently the Sheriff’s
Office meets its average response time targets by call priority to RORC and to the City of Duarte (individual responses may vary depending on time of day, location of patrol cars, traffic conditions, etc.).6
The Sheriff’s Department recommends contract staff increases ranging in cost from $294,300 to $367,900 annually (plus one-time vehicle cost).
7 These costs would exceed revenues from RORC but
would improve sheriff protection and response throughout the City. Table 1 allocates a share of existing Duarte public safety costs proportionate to total calls for service. 4 “Emergent” generally refers to calls with the potential for a serious threat. 5 County of Los Angeles Sheriff’s Department Office Correspondence from Capt. Reyes to Tracey Jue, Director Facilities Planning Bureau, Feb. 14, 2023.
6 According to the Sheriff’s Dept. (Feb. 14, 2023) “...widely accepted industry standard among law enforcement agencies for responding to emergent, priority, and routine calls for service: 10 minutes, 20 minutes, and 60 minutes, respectively.”
7 Correspondence from Stevin R. Fiedler to R. Berkson, Feb. 23, 2023. 38 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 4
Table 1 Summary of Increased Revenues and Expenditures
Annexation of Royal Oaks Retirement Community to the City of Duarte These estimates and projections may change based on future economic conditions, changes to the City of Duarte budget, decisions to be made by the City of Duarte and the Royal Oaks Retirement Community, and changes to key assumptions and calculations. See notes on the following page for additional explanation, calculations and assumptions.
note Budget Item Amount Comment
GENERAL FUND REVENUES
(1) Sales Tax $3,200 Onsite sales * 1.75% City Tax
(2) Property Tax 0 Parcel is tax-exempt
(3) Business License 0 Non-profit is exempt
(4) Franchise Fees 14,700 Estimated amount/resident
Subtotal, Revenues $17,900
EXPENDITURES
(5) Public Safety (Sheriff) $15,600 Based on calls for service NET, GENERAL FUND $2,300
STREETS AND TRAILS
(6) Gas Taxes/SB1 $13,700 Estimated amount/resident
(7) (less) Street Maintenance (2,000) Bradbury avg. per mile (8) (less) Trail Maintenance (2,100) % of Bradbury Trail Budget Net Roads Surplus
(shortfall)
$9,600
(9) Landscape & Lighting
Assessments & Expenditures
$12,700 Assessment to cover LLAD
costs.
LANDSCAPE & LIGHTING MAINTENANCE DISTRICT (LLMD)
39 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 5
Notes to Table 1:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Proportionate share of $7,082,900 City budget (inc. supplemental enforcement) based on Royal Oaks Calls for Service avg. 2.5/5,900 Duarte Total CFS = 0.22%.
Gas Taxes of $628,400 & SB1/RMRA of $489,000 estimated per capita based on additional 260 residents at $52.56 per resident for 21,258 existing City residents.
Costs allocations estimated as 21.2% share based on 720 lineal feet/3,400 total Royal Oaks Rd. N. (.64 mi.); costs based on Bradbury 2019 slurry seal of 3.2 miles at $330,000 or $103,000/mile; 7-year lifespan equals $14,700/yr per lineal mile.
Costs allocations estimated as 21.2% share based on 720 lineal feet/3,400 total Royal Oaks Rd. N. trail (.64 mi.); costs based on share of City of Bradbury annual budget for trail of $10,000.
LLAD assumes $54.62 per unit times 232 units. Note: fees may be lower depending on engineer's determination re: rates for 48 skilled nursing units out of 232 total units.
Based on $165,466 sales 2019 plus $19,284 annualized Jan. 2023 liquor sales tax, or $184,750 annual total sales tax times tax rate of 1.75%. Does not include sales taxes currently generated by Royal Oaks residents' purchases in the City of Duarte.
The property is tax exempt from the basic 1% tax rate, but does pay "overrides" including various assessments over the 1%. These existing assessments will be unchanged, and go to other agencies (except new LLAD, see below).
The non-profit RORC is exempt except for one-time fee and a small State charge.
Franchise Fees estimated using a City average per resident revenue of $56.45 based on budget Franchise Tax of $1,200,000 divided by City population of 21,258. 40 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 6
3. ANNEXATION AREA OVERVIEW
Figure 1 shows the County Assessor’s parcel map for the Royal Oaks Retirement Community (RORC), APN #8527-022-023 (TRA 03386).
Annexation Area
Population8 260 residents
Registered Voters9 199 voters
Building Area10 135,617 sq.ft.
Units 232 Units
Includes 48 skilled nursing units
Assessed Value11 $28.3 mill.
Parcel Area
Taxable Parcel12 17.71 ac.
Street/Trail Frontage 720 feet13
City of Duarte
Population14 21,258 residents
RORC/Duarte 1.2%
Registered Voters 13,208 voters15
RORC/Duarte 1.5%
8 Human Good, Royal Oaks Retirement Community, Response to Data Request. 9 Human Good Royal Oaks Presentation to Duarte City Council 12.13.2022, pg. 7. 10 2022 County Assessor Roll (AIN 8527-022-023).
11 2022 County Assessor Roll (AIN 8527-022-023); parcel is exempt from basic 1% property tax. 12 2022 County Assessor Roll (AIN 8527-022-023, per City of Bradbury Agenda Memo, Aug. 16, 2022, Att. #3) 792,225 sq.ft.
13 Total length of Royal Oaks Drive North and trail is 3,400 feet, of which 720 feet currently is in County unincorporated territory immediately south and adjacent to Royal Oaks Retirement Community. 14 Cal. Dept. of Finance, Report E-1, Jan. 1, 2022.
15 City of Duarte Redistricting data (as of Nov 2020)
Figure 2 Royal Oaks Retirement Community Parcel Map
41 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 7
4. PUBLIC SERVICES TO BE PROVIDED & COSTS
CURRENT AND PROPOSED SERVICE PROVIDERS
Annexation of the Royal Oaks Retirement Community (RORC) to the City of Duarte will transfer primary municipal service responsibility from the County of Los Angeles to the City of Duarte, as summarized in Table 1 and described in this chapter. The following chapter describes funding sources.
Table 1 Summary of Current and Post-Annexation Service Providers Annexation of Royal Oaks Retirement Community to the City of Duarte Service Current Post-Annexation
Management,
Administration
& General
Services
County of Los Angeles City of Duarte
Community
Development
County of Los Angeles City of Duarte
Roads County of Los
Angeles/City of
Bradbury
City of Duarte
(maintenance may be
subject to agreement
with City of Bradbury)
Parks & Trails City of Bradbury City of Duarte
(maintenance may be
subject to agreement
with City of Bradbury)
Police County of Los Angeles
Sheriff
City of Duarte (contract
with Sheriff)
Fire & EMS
Services
County of Los Angeles
Fire Dept.
No change
Library LA County Library No change
Public Utilities Various utility
companies as
franchisees to the
County of Los Angeles
Same City of Duarte
franchisees except
Burrtec Waste provides
waste disposal instead
of Ware Disposal.
Service Provider
42 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 8
MANAGEMENT, ADMINISTRATION & GENERAL SERVICES
No significant impact on City management, administration & general services. Royal Oaks Manor residents represent about a 1.2 percent increase in City population.
COMMUNITY DEVELOPMENT
The City of Duarte anticipates no additional staff will be required to provide planning, permitting and other Community Development services to RORC. Services are largely self-supporting through City fees.16 No code enforcement actions have been pursued against the RORC by the County17 therefore no future costs are anticipated.
Initial one-time costs estimated at $20,000 will be incurred for re-zoning and GP amendment.18 It is assumed that these costs will be covered by City fees and charges and/or negotiated as part of the annexation process.
Past Development Activity
Over the past five years RORC has sought various permits from the County and paid required fees to cover costs.
• Bistro Construction 2021 – Building, fire, health dept. About 7 permits at $1,500 each for a total about $10,500
• Bradbury Oaks Building sewer line repair 2022 - $1,170.
Future Development Activity
RORC has no plans for development and “... expect minimal permit activity in the future with the exception of two projects:
• The Bradbury building fire alarm panel replacement (2023-2024) • E and F building structural rehabilitation (2024 – 25)”19 It is assumed that permit review and inspection costs will be covered by City fees and charges for those permits.
16 City of Duarte response to 1/25/2023 Data Request, Item 2.04-05. 17 Human Good Royal Oaks response to 1/25/2023 Data Request, Item 1.01. 18 City of Duarte response to 1/25/2023 Data Request, Item 3.14. 19 Human response to 1/25/2023 Data Request, Item 2.03. 43 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 9
STREETS
Streets Added by Annexation
Annexation of RORC would include approximately 720 feet of Royal Oaks Drive North, or about 21.2% of the street.
Current Responsibility and Costs for the Street
The City of Bradbury maintains the entire 3,400 feet of street including the 720 feet that cross County unincorporated land south of RORC.
Costs specific to the street are not known, however, the City recently slurred sealed all City streets at a total cost of $330,000 or $103,000 per mile for 3.2 miles. Assuming an average 7-year lifespan, costs average $14,700 per lineal mile of street per year or about $9,400 for the entire 0.64 lineal miles of Royal Oaks Drive North.
Future Responsibility for the Street
As noted in the City of Bradbury’s staff report to its Council,20 it is recommended the two cities develop an agreement for maintenance of Royal Oaks Dr. North and the adjacent City of Bradbury trail.
Future Duarte Costs for the Street
The 720 lineal feet of Royal Oaks Drive North adjacent to RORC that would be added to the City of Duarte is approximately 21.2% of the entire length of the road. This share of the estimated $9,400 annual cost for the entire road would be approximately $2,000. Costs could be higher for paving of this short segment of roadway, and costs would also depend on an assessment of the road’s condition at that time (e.g., underlying soils, drainage impacts, base condition). Coordination with the property owner and the City of Bradbury could help to manage financial impacts (for example, repaving upon annexation, if needed, and shared maintenance to consolidate this segment with other repaving).
TRAILS
Trail Added by Annexation
Annexation of RORC would include approximately 720 feet of trail along the south side of Royal Oaks Drive North, or about 21.2% of the trail.
Current Responsibility and Costs for the Trail
The City of Bradbury maintains the entire 3,400 feet of trail including the 720 feet that cross County unincorporated land south of RORC.
20 City of Bradbury Agenda Memo, Aug. 16, 2022, pg. 4.
44 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 10
A portion of the width of the entire trail is in Duarte, but an agreement between the two cities assigned maintenance and liability for the entire trail to the City of Bradbury.21 The City of Bradbury budgets $10,000 for the entire 3,400 feet of trail including irrigation, bi-monthly landscaping, plant replacement and mulching, irrigation repairs, tree trimming, and plant border maintenance.22
Future Responsibility for the Trail
As noted in the City of Bradbury’s staff report to its Council,23 it is recommended the two cities develop an agreement for maintenance of Royal Oaks Dr. North and the adjacent City of Bradbury trail, and access to the irrigation control system for the trail located on the trail directly south of the Retirement Community. “Further consideration should also include maintenance costs for any future damage to the white fencing, graffiti on fencing or signage, and any future road signage replacement.” 24 Future Duarte Costs for the Trail
Based on the 720 feet of trail, or 21.2% of the total trail, crossing the City of Duarte, a proportionate share of the $10,000 trail budget equals $2,100 annually.
PUBLIC SAFETY
The RORC, currently served by the Los Angeles County Sheriff’s Department out of its Temple Station, will become the responsibility of the City of Duarte which is served by contract with the Sheriff’s Department from a Duarte substation.
As shown in Figure 3, RORC averaged about 13
total calls annually for Service (CFS) in 2021 and
in 2022, including 2 to 3 emergent calls, which
RORC indicates are generally representative of
the facility.25
21 1996 Agreement was referenced in Montenegro v. City of Bradbury, 2013. 22 Correspondence with City of Bradbury, 2023-02-22.
23 City of Bradbury Agenda Memo, Aug. 16, 2022, pg. 4.
24 Correspondence with City of Bradbury, 2023-02-22.
25 Correspondence with A. Smith, RORC, 2023-02-27.
Figure 3 Royal Oaks Retirement Community Calls for Service 45 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 11
The 13 total RORC calls for service represent less than 1 percent of total City of Duarte calls for service that averaged 5,900 in 2021 and 2022 shown in Figure 4.
Although RORC generates 13 total calls for service per year (2 to 3 emergent calls), or less than one percent of total City averaging 5,900 total calls for service (290 emergent) over the last two years, the annexation of RORC according to the Sheriff’s Department “...would potentially have a significant impact to the current law enforcement services provided by the [Duarte] Substation due to the increase in volume and length of emergent calls for the services.”
26 The Sheriff’s Department staff also stated that “...the project usually has calls involving deceased persons, which requires deputies to stay on the calls for a longer than normal time. The Station is currently understaffed. Assigning additional personnel to the Station to meet an acceptable service ratio will exacerbate the current shortage of space and attendant assets. Any expansion of the Station, or construction of new facilities, should not only account for the current shortage, but should also accommodate additional personnel and assets that will become necessary as our service area continues to experience growth and intensification of land uses. The proposed Annexation would change the current law enforcement services provided by the Station.” 27 The Sheriff’s Department recommended contract staff increases ranging in cost from $294,300 to $367,900 annually (plus one-time vehicle cost).28 These costs would exceed revenues from RORC but would improve sheriff protection and response throughout the City.
FIRE PROTECTION AND EMERGENCY MEDICAL SERVICES
The County of Los Angeles Fire Department provides services to cities and unincorporated areas; this will not change following annexation.
26 County of Los Angeles Sheriff’s Department Office Correspondence from Capt. Reyes to Tracey Jue, Director Facilities Planning Bureau, Feb. 14, 2023.
27 City of Duarte response to 1/25/2023 Data Request, Item 2.12. 28 Correspondence from Stevin R. Fiedler to R. Berkson, Feb. 23, 2023.
Figure 4 City of Duarte Calls for Service by Type of Call 46 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 12
LIBRARY
The Los Angeles County Library system provides services to cities and unincorporated areas; this will not change following annexation.
PUBLIC UTILITIES
RORC will continue to be served by existing utility providers with the exception of waste disposal. RORC will be required to switch from Ware Disposal, the current provider, to Burrtec Waste, the City of Duarte’s exclusive franchisee.
47 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 13
5. DUARTE CITY BUDGET REVENUES
The annexation of the Royal Oaks Retirement Community (RORC) will generate additional public revenues to the City of Duarte. Amounts are summarized on Table 1 and described in this section. These estimates and projections may change based on future economic conditions, changes to the City of Duarte budget, decisions to be made by the City of Duarte and the Royal Oaks Retirement Community, and changes to key assumptions and calculations.
PROPERTY TAX
The non-profit RORC’s total assessed value of $31,867,563 qualifies as tax exempt from basic 1% property taxes. 29 If taxable, the site would pay $318,700 annually in basic 1% property taxes of which the City of Duarte would receive about 9%,30 or $28,700.
RORC pays property tax “overrides” for voter-approved taxes, fees and assessments above the basic 1 percent. Those assessments total $56,118 annually to various agencies.31 These “overrides” will not be affected by the annexation.
SALES TAX
Onsite taxable sales produce a small amount of sales tax from food and beverage sales and more recently a license for the sale of alcohol. RORC reports approximately $184,750 of taxable sales. The estimate derives from 2019 taxable sales of $165,466 plus taxable alcohol sales in January 2023 (annualized) of $19,284. The City of Duarte will receive 1% of taxable sales and 0.75% of voter-approved additional sales tax for an estimated $3,200 annually. This increased tax will also increase the City’s share of County and State sales tax “pools” by a small amount (not estimated).
The City also benefits from road and transit related regional sales taxes, a share of which is distributed to cities. These amounts have not been estimated.
BUSINESS LICENSE TAX
As a non-profit, RORC is exempt from the City’s business license fees. Initial permit costs and State fees collected with the business license continue to apply.
29 ROM 2022-23 property tax bill.
30 City of Duarte response to 1/25/2023 Data Request, Item 3.01. 31 ROM 2022-23 property tax bill.
48 AFA Duarte Annexation of Royal Oaks
March 2, 2023
Berkson Associates 14
FRANCHISE FEES
The City of Duarte collects franchise fees from utility providers. The RORC’s utility bills will increase franchise fees by an estimated $14,700 to the City based on a “per resident” estimate. Actual future increases depend on utility usage and charges, franchise fee rates and formulas applied to franchisees.
GAS TAX AND OTHER ROAD-RELATED REVENUES
Annexation of RORC would increase road-related revenues. The City of Duarte FY2022-23 budget reports $628,400 of State Gas Taxes and $489,000 of SB1/RMRA funds, or about $1.1 million, which are restricted to road maintenance and related purposes.
For purposes of the current analysis an average of $52.56 per resident provides an estimate of roadrelated revenues based on the $1.1 million and current City population.
Other transportation revenues will increase slightly, including Measure R and Measure M revenues.
Duarte receives a 15% to 17% share of each ½ cent sales tax measure; however, the amount of increased sales tax and resulting transit revenues due to RORC are minimal and are not estimated.
LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT
The City’s Landscape and Lighting Maintenance District provides benefit assessment funding for the maintenance of City owned parks, for the maintenance of the public landscaping in public owned properties or public right of-way within the City, graffiti removal, maintenance of public-owned lighting, street lighting, and traffic signals within the City.
32 RORC Integration into the LLMD
City of Duarte staff indicate that a new LLMD zone should be created in order to most accurately reflect benefits and costs to the annexation area and to provide for cost escalation.33 City staff estimate potential assessments at $54.62 per unit. Further engineering analysis may adjust the rates for skilled nursing units.
OTHER REVENUES
Currently RORC residents participating in City of Duarte recreation programs pay non-resident rates. The City may experience a reduction in fee revenues as RORC residents qualify for lower resident rates, although this may be offset by increased participation. The net impact is not known, but likely to be minimal relative to total City fees and charges.
32 LLMD Engineer’s Report, 2022-23.
33 Correspondence with City of Duarte, Feb. 16, 2023.
49