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Home My WebLink AboutMARCH 14,1995 1 'I :1 O/ff). ";;U 03IV7\- 37:0065 cc CllY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CllY CLERK ROll CAll CLOSED SESSION 0110 - yo!) 1. 2. 3. LOJESKJ (Absent - March 21 Mtg.) YOUNG (Recep. tion - Sls.CIty / German Visitors) OI:J.O_^'O rI ,/- MINUTES CllY COUNCIL OF THE CllY OF ARCADIA and ARCADIA REDEVELOPMENT AGENCY ADJOURNED REGULAR MEETING (STUDY SESSION) MARCH 14, 1995 The City Council and the Arcadia Redevelopmem Agency met In an Adjourned Regular Meeting (Study Session) on Tuesday, March 14, 1995 at 5:30 p. m. In the Council Chambers Conference Room. PRESENT: ABSENT: Council/Agency Members Chang, Kuhn, LoJeskl, Margett and Young None At 5:34 p. m. the Redevelopment Agency ENTERED a CLOSED SESSION pursuam to Governmem Code Section 54956.8, to provide direction to the Agency's negotiators for the possible acquisition and developmem of the Foulger Ford site (55 East Humlngton Drive) for a theater /restaursm complex, pursuam to an Exclusive Right to Negotiate with Vlc Georglno, Developer. At 5:45 p. m. the Closed Session ended and the Adjourned Regular Meeting (Study Session) RECONVENED. SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS None AUDIENCE PARTICIPATION None MATTERS FROM ELECTED OFFICIALS REPORTS/ANNOUNCEMENTS/STATEMENTS/FUTURE AGENDA ITEMS Councllmember Lojeski requested that he be excused from the March 21, 1995 Council meeting to fulfill a lecture commitmem which will take him away from the City. Mayor Young announced that there will be a reception at the Community Center sponsored by the Sister City Commission for a delegation from Zelendorf, Germany on March 28. The German visitors are Interested In establishing a Sister City relationship with Arcadia. 1 3/14/95 4. 07:"'0.C(O 37:0066 PRESENTATION AND DISCUSSION ABOUT THE MASTER PLAN FOR PUBUC BUILDINGS, FINANCIAL PLAN AND LIBRARY RENOVATION PROJECT 1 At the February 14, 1995 study session Council considered the Master Plan fOl' Public' Buildings prepared by Lisa Sachs of Construction Controls Group, snd the Flnsncial Plsn presented by Paul McDonald of Rauscher Pierce Refsnes, which set forth financing options for the payment of the proposed projects. Assislant City Manager/Fire Chief Gardner gave a report also on the bids received fOl' the renovation and expansion of the City Ubrary. The City Council decided at the February 14th study session that Alternative I was the preferable facilities alternative. Alternative I Involves the demolition of the Armory facilities which space would In turn be used fOl' the construction of a new slate-of-the- art police facility. The vacated police facilities would be converted Into City Development Services offices which would free-up space within the current city hall buildings. City hall renovations would be required as well. Alternative I assumed also that excess space In city hall would then exist which could be leased out to help offset city hall operational costs. The net projected costs fOl' Alternative I were estimated to be $23,178,650. The unfunded cost for Alternative I has since been revised downward by $2,100,000 to $21,078,650, reflecting the availability of certain drug seizure and race track revenues which could be applied to the project cost. Based upon Input received at the February 14 study session, It was decided that General Obligation (GO) Bonds snd Certificates of Participation (COP) or s combination thereof waa the most appropriate and cost-effective means of funding the facilities. 1-' Mr. John White of Rauscher Pierce Refsnes (RPR) was In attendance this date to present an overview of RPR's Revised Financing Analysis fOl' funding the City facl:ltles projects listed In the Master Plan, Altarnatlve I. Mr. White referred to RPR's March 8 report which stated that GO bonds were the preferable means of financing the projects from a financial standpoint in that the average net debt service annually to finance the $21 million would be approximately $t.8 mlllle-n, which Is lower than the annual debt service of $2.1 million for COP's, or approximately $1.8 million annual debt service fOl' a combination of GO bonds and COP's. Mr. White pointed out that the lax rate on an assessed property valuation of $225,000 for all GO Bonds would be approximately $57. annually per tax bill., The difficulty with a bond Issue Is that It would require a two- third majority vote of the City electorate. COP's are secured by the City's general revenue funds which RPR believes could be derived from race track revenue, and an IncreaBe of 1.84% to the utility users lax of 5%, and annual Interest from the Redevelopment Agency for Interest owned on loans from the City. A funding combination of GO bonds and COP's would require approximately $1 million In Ad Valorem property laxes (GO Bonds); $500,000 from race track revenues and Redevelopment Interest payments of $300,000 annually. The property tax rate per $225,000 assessed valuation for this combination would be approximately $36. per year, with voter approval. Following Mr. White's comparison of financing alternatives, Council discussed the Information provided. Council member Lojeskl digressed to a similar discussion the 'previous City Council held just two yeara ago where a bond Issue was merely contemplated as an alternative to expending City reserves, and this created much I~ 2 3/14/95 _I -I ,I ADJOURN- MENT ATTEST: , 'I .1 37:0067 criticism In the community and became a political issue. Councilmember Kuhn felt that the community would not accept a bond Issue. Mayor Young felt the community might accept a bond Issue for a police station only. Councilmember Margett commented that If Council Is aware that the community would not accept funded debt then Council should seek other ways of getting the Job done, and suggested that these, public facilities be constructed with private monies with a City lease-back for a number of years at which time the facility ownership would revert back to the City. Perhaps Santa Anita Race Track would be Interested in this sort of an Investment. He did not think voters would buy Into a bond Issue. Mr. White commented that the annual debt service for the lease-back alternative financing plan would be greater than the options he presented. Council member Margett felt the Investors depreciation of the buildings would offset the capital costa. Staff will research thla optlon and get back to the Council. Councilmember Margett said If staff Intands to do that, then some guidelines should be set that the City would pay no more than $1 million a year In lease payments for a pollee facility, and not any more than $60,000 a year for the Ubrsry facility, for example. Mayor Young noted that perhaps the City should not try to do everything at once. Council member Kuhn agreed with Mayor Young. The City Manager pointed out that the critical need at this time is the Pollee Station and the Ubrsry ... both of these facilities are suffering physically from deferred maintenance, and the City needs $20 million now... other City buildings C3n be done at a later date. Considersble discussion centered on the Ubrsry. Council member Lojeskl suggest':'d that staff approach the School DIstrict to share In the cost of the Ubrsry renovation, since the schools benefit from Library services. The City Attorney commented that libraries are generally deemed as having an educational purpose, and In genersllaw cities IIbrsrles come under the authority of the Education Code. The City Manager commented that the School District couid be formally asked if they would be Interested In assisting the City In the Ubrsry project. He will bring this Information back when the bJd for construction 01 the Ubrary il considered. In conclusion, the City Manager noted that the presentation this date was mainly to provide additional Information to the Council regarding project Ilnanclng. The only critical Issue at this time Is the Ubrary bid which Is good for 90 days only. A decision must be reached by the explrstion date, April 17. Council decided to place the Ubrsry project on the April 4 Council agenda lor conslderstion 01 the base bid, the alternatives and award 01 the contract. At 7:05 p. m. the Adjourned Regular Meeting (Study Session) ADJOURNED to 7:00 p.m. Tuesday, March 21, 1995 In the Council Chambers for a regular meeting to conduct the buslnesl of the City Council and the Arcadia Redevelopment Agency and any Closed Session necessary to discuss personnel, litigation matters and evaluation of properties. O~4~~ Ju~b. Alford, 29 Clerk 3 3/14/95