City of Fillmore

Tuesday’s Fillmore City Council meeting revealed how bad the shape of the City “may” be in as City Attorney Theodore Schneider gave a presentation, with as much detail as was legally possible, on the status of Fillmore’s sales tax litigation. Also discussed was the progress, or lack of progress, on the Two Rivers Park project, the Regional Housing Needs Assessment and public comments on various topics.

Schneider laid out the status of a lawsuit filed in 2009 by both the cities of Livermore and Industry against the City of Fillmore, Owens & Minor, MTS Consulting and Inspired Development. Those cities challenged the validity of what was called an Economic Development Agreement between MTS Consulting, Inspired Development and Fillmore. The agreement was that MTS and Inspired would attract large national retailers to locate a legitimate sales office in Fillmore; in exchange, Fillmore offered an incentive rebate of 85% of the sales tax received by Fillmore on account of new retailers, and retained 15%. The sharing of sales tax would continue for 20 years for each retailer. There were more retailers and other cities involved, but the only ones that filed a lawsuit were Livermore and Industry. The names of the retailers and taxpayers involved are confidential information under the State Board of Equalization (SBE).

In 2009 the California Legislature adopted SB27 making sales tax sharing agreements illegal, but grandfathered those prior to 2009, which leaves Fillmore’s still legal.

Fillmore, MTS, and Inspired won on motion at trial court, but Livermore and Industry appealed and the appellate court overturned the trial court ruling, and the case now returns to the trial court for further proceedings.
In 2008 SBE started an escrow and to date (estimate) the amount being held pending the appeal is $12,401,979. But, in the event that Fillmore loses all the (seven other retailers) pending cases, the amounts previously paid to Fillmore that could potentially be reallocated to other jurisdictions and must be repaid is $6,947,284.
The payments made (the 85%) to MTS was $4,368,284 and to Inspired was $2,218,924 with Fillmore receiving (15%) $1,000,000. Some of this money paid out by Fillmore may need to be repaid to Fillmore if the SBE reallocates sales tax away from Fillmore. Fillmore is currently repaying funds in one case and several more may be decided in the next several months. The potential future revenue to Fillmore from a single largest retailer is estimated to be $700,000 or more per year.

When Councilmembers asked why this agreement was allowed to happen the response by a member of Schneider’s law firm was, “The Council knew there was a possible down side, but the money involved was worth the risk.”
Also discussed, Community Development Director Kevin McSweeney presented the Southern California Association of Governments (SCAG) 2012 Regional Housing Needs Assessment (RHNA) that will be used in the next Housing Element period 2014 to 2021. It is expected that the State will be requiring 275 more units for 2014-2021 than the City’s General Plan Build Out. The General Plan identifies that 5,816 residential units are planned for which will result in a population of 22,693 by the year 2020. There are currently 4,408 residential units in the City. But even though the City’s plan would construct what RHNA is asking, the units may not be constructed in the time frame allotted.

RHNA residential units are based on income levels and their proposed plan for Fillmore is 160 very low income units (23.1%) along with 112 low income (16.1%), 128 moderate income (18.4%) and 294 above moderate income (42.4%). McSweeney will report back to Council on March 13th if an appeal should be made to lower the numbers.
During the discussion Ventura’s amnesty on non-conforming units was brought up; these are granny flats that were not permitted. Ventura has counted those units to meet its housing requirements. The question of doing the same in Fillmore was presented and the issue will be on a future meeting’s agenda, possibly in May after it is clearer where the City stands on RHNA’s requirements.

City Manager Yvonne Quiring discussed the $320,621 Community Development Block Grant (CDBG) funds available to construct a tot lot at Two Rivers Park. In 2008, under Proposition 12 the City submitted a competitive grant application for Two Rivers Park and received a grant for $500,000 of which $100,000 remains. The City has constructed the skate park, rest rooms and concession area, installed grass and a softball diamond. State Park staff notified the City in late January of the upcoming deadlines of June 30, 2012 for work to be completed. An extension request by the City to revise the scope of the project must be made by March 31, 2012. The State staff indicated that because it was a competitive grant, getting an extension for completion may be a challenge but that to the extent possible they would work with the City.

Fillmore Unified School District (FUSD) has partnered with the City on the project and prepared a budget and a proposed landscaping/layout plan and would serve as the project manager in trade for some surplus City vehicles which are the result of the 30% reduction in force this summer. Discussions with the County staff have resulted in the requirement that the City hire a consultant to handle monitoring part of the project.

During the public comments Mark Olson from Citrus Pest and Disease Prevention spoke to the Council on the Asian Citrus Psyllid an invasive pest that causes serious damage to citrus plants and a serious threat to the U.S. citrus industry. The Asian Citrus Psyllid is an aphid-like insect that feeds on the leaves and stems of citrus trees and other citrus-like plants – but the real danger lies in that it can be a carrier of a deadly, bacterial tree disease called Huanglongbing, also known as Citrus Greening Disease.

The Asian Citrus Psyllid has been intercepted coming into California in packages of fruit and plants, including citrus, ornamentals, herbs and bouquets of cut flowers, shipped from other states and countries. Floral bouquets containing psyllid-infested orange jasmine have been intercepted coming into California from Mexico.

Olson said the biggest problem where the bug is spreading is residential backyard citrus trees and that residents with them in their yards need to be on the lookout for the pest that is the size of a grain of rice.
Cindy Blatt with the Rotary Club of Fillmore Sun Risers announced the Rotary’s commitment of $2,000 toward the electronic gate at Fillmore High Schools running track. In addition Rotary would like local service clubs, businesses and individuals to contribute to the project. Rotary will provide another $2,000 in the form of a challenge; a dollar-for-dollar match for the other donations not to exceed the additional $2,000. If met the total would be $6,000. Those that want to contribute with a donation are encouraged to make a check payable to Fillmore Rotary Sun Risers PO Box 882, Fillmore, CA 93015 or contact Don Gunderson at 805 524-1308.

Daniel Gonzalez, youth advocate with One Step Center, announced their members are doing a controlled study of the Superfund Site and will be doing surveys and questioners in the area. One Step Center, which is now under the umbrella of Big Brothers Big Sisters of Ventura County, also received $15,000 each year for the next two years to work with the youth in Fillmore.

Councilmember Brian Sipes announce the Fillmore Chamber of Commerce in conjunction with the Santa Paula Chamber of Commerce and the Heritage Valley Tourism Bureau are trying to put together a master community calendar. A meeting is scheduled for Tuesday, March 13, 2012 between 11am and 12pm at La Fondita. All non-profits, community groups, school groups are invited to come prepared with the dates of their events to be included on the master calendar. This will be a no host lunch. For more information contact Community Calendar Chair Ari Larson at 805 794-7590.

It was also announced that it was decided to have the May Festival at City Park and not at Two Rivers Park.