Volume 1 Spring 2013

PGCSD Newsletter Pasadena Glen

Community Services District

Pasadena, California

Culvert Repair Project !

What is your PGCSD? Pasadena Glen Community Services District was formed in 1994 by the Los Angeles County Board of Supervisors to provide road improvements for fire access and to provide drainage improvements following a major fire that destroyed 28 of 66 existing homes. These improvements were necessary to secure approval from the County for any and all building permits. Per the requirements of the County and the Los Angeles County Local Agency Formation Commission (LAFCO), formation of the District was approved by a supermajority of the registered voters within Pasadena Glen, including 100% of the homeowners. Pasadena Glen residents Linda Williams, Terry McGough, Connie Komoroski, Mike Montoya, and Dan Ames make up the current District Board.

" Sandbags and a mud-filled Pasadena Glen Road, on February 7, 1994, after the October 27, 1993 Firestorm

Table of Contents

1

2

3

4

What is your PGCSD?

Who makes up the Board and Staff of the PGCSD?

What are the “Nuts and

Bolts” of the PGCSD?

Funding the future of the PGCSD and Pasadena

Glen Roads.

The Board of Supervisors appointment process.

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What are the “Nuts and Bolts” of the District Assessment?

Under California Community Services District Law (Cal. Gov. Code 61000 et seq.) a Community Services District is authorized to provide a broad range of services including roads, drainage improvements, and maintenance, as well as many other services normally provided by a city or town. In 1994, the Los Angeles County Board of Supervisors appointed the initial District Board and by resolution authorized the Board to levy an annual assessment of “up to $500” per parcel. This

allowed the District to provide the funds necessary to manage a $1.5 million grant from the Federal Emergency Management Agency (FEMA) to construct drainage and road improvements that the County imposed as requirements in 1994. The County also provided authorization for ongoing maintenance of the roads and drainage improvements. In an effort to comply with its original purpose, which was Fire Department access, the District

has assumed responsibility to maintain all of the roadways supporting such access. With the assistance of a part-time General Manager and counsel from the law firm of Best, Best and Krieger, the District Board has been reviewing the long range financial plan required to manage the financial needs of the District over the next twelve years. As discussed on pages 3-4, this will require an increase in the current $500 annual assessment limit.

Since inception of the District in 1994, the Board has filled vacancies at no cost to the District by recruiting residents. The five members of the Board serve staggered four-year terms.

In 2011, the District hired a part-time General Manager and contracted with specialized legal counsel to help evaluate the long-term sustainability of the District, and to provide guidance on District operating procedures.

The Board has approved an Operating and Policy Manual, ensuring proper running of the District.

Who staffs the District and the Board?

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1) How to provide funds for the future.

The Board has reviewed a long-range financial plan in order to determine the financial needs of the District, and its ability to serve the Glen, over the next twelve years. Strong and reliable roads provide Fire Department access required by the County.

Twelve years is the timeframe during which the District expects it will have to provide an asphalt overlay of the Glen roads, and to accumulate sufficient funds to do it. An asphalt overlay has not been done since 1995. Slurry seals, like the one recently completed, extend the life of the pavement.

An asphalt overlay is needed periodically to restore the integrity of the road structure.

The cost of an overlay in twelve years, or in 2024, is estimated to be approximately $250,000. The District has to accumulate funds between now and then to cover this cost, in addition to providing funds for the annual maintenance and operating costs of the District. At the current assessment of $500 per parcel, the District will fall short of the amount needed over the next twelve years by approximately $100,000.

The District has studied several different approaches to accumulating the necessary funds.

The three most likely Options are:

1. Increasing the assessment to $750 per year, beginning in 2014; or

2. Increasing the annual assessment by 7% per year, every year, as needed; or

3. Increasing the annual assessment to $650 in 2014, then increasing 3% per year thereafter as needed.

Under Option 3, the initial increase addresses some of the inflation that has occurred since the District was formed almost 20 years ago, and the annual increase is expected to keep up with future inflation.

(cont’d on next page)

How to Address Future Needs

The District has begun the process of preparing two important issues for the voters of the District to consider:

1) How to provide funds for Pasadena Glen road needs; and

2) Defining and formalizing the appointment process for Board members, which carries no cost.

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(Future Funds, cont.)

Since the formation of the District in 1994, the California State Legislature passed Proposition 218. The District’s counsel is currently working with LA County Counsel to determine whether any additional steps, beyond compliance with Proposition 218, are required for the District to implement one of the Options to increasing the assessment.

The Board has not made a final decision on which of these options to pursue, but Option 3 is seen as the most desirable. The District is planning to implement one of these Options early in 2014.

* * *

2) June 18, 2013 Advisory Election: Board of Supervisors Appointment Process or Elections.

Every two years, either two or three Board positions become available. Currently, the Los Angeles County Counsel is reviewing the process for appointing members to the Board. The appointment process carries little to no cost to the District.

On June 18, 2013, the District will be holding an advisory election asking voters answer the

question of whether the Board of Supervisors should appoint future positions, in lieu of new Board Directors being elected by voters.

This advisory election will be conducted by the County, and is required in order to conform to the terms of the District’s formation. It will cost approximately $1,700.

Every registered voter residing within the District, whether renter or owner, will receive a ballot. The County will mail ballots for the advisory election by the first of June of 2013.

If the appointment process is not the option selected, the District may need to have a regular election every two years if more people run for a Board position than are available. In that case, the County would conduct the election process and bill the District. The cost of any such contested election for a Board position would be approximately $11,000 each time it was conducted.

Continued

Since the 1993 firestorm and 1994 debris flows, County mandates, FEMA involvement, and culvert construction, the District and its volunteer Board have been charged with preserving the integrity of our roads and beneficial use of our property.

The District will be moving through this process of assuring that there are funds necessary to continue to maintain the Glen roads, and to implement the most efficient and cost-effective way to staff the Board.

Board members are available to answer

questions. The District meets the fourth or last Tuesday of each month, most months. The agendas, which have the date, time, and location of meetings, are posted 72 hours

in advance.

Looking Forward: