HomeMy WebLinkAboutJUNE 28,1994
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CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY
CLERK
ROLL CALL
1.
2.
3,
ARCADIA
REDEVELOPMENT
AGENCY
FY 1994-95
OPERATING
BUDGET
(APPROVED)
()610.~ <;,",
MINUTES
CITY COUNCIL OF THE CITY OF ARCADIA
and the
ARCADIA REDEVELOPMENT AGENCY
ADJOURNED REGULAR MEETING (STUDY SESSION)
June 28, 1994
The City Council and the Arcadia Redevelopment Agency met in an
Adjourned Regular Meeting (Study Session) on Tuesday, June 28,
1994, at 5:30 p.m. in the City Hall Council Chamber.
PRESENT:
ABSENT:
Council/Agency Members Kuhn, Lojeski, Margett, and Young
Council/Agency Member Chang
It was MOVED by Member Lojeski, seconded by Member Margett, and
CARRIED to EXCUSE the absence of Member Chang.
AUDIENCE PARTICIPATION
None.
SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS
None,
The Acting City Manager, Bill Kelly, referred to a staff report
provided to the Agency regarding the Arcadia Redeve lopment Agency's
operating budget. He stated that in order for the Agency to make
bond payments, pay salaries, make payments on interest, etcetera,
the Agency, as a separate entity from the City, must adopt a budget
before July 1. Project expenditures will be presented for
discussion in future meetings. Adoption of the operating budget
will assure that the Agency may operate for Fiscal Year 1994-95;
the budget may be amended and adjusted throughout the year.
Member Lojeski inquired about the expenditure of $7,795 for a new
computer and software for the Economic Development Division. Mr.
Kelly explained that the City is attempting to standardize all of
its computers to one system and one set of software. The new
computer would replace one which is no longer compatible with the
present system. Also it would allow staff to complete work faster
and more efficiently, and to tie into the City system.
Member Lojeski reviewed the revised Annual Budget Program
Information and asked why the 1992-93 "Actual" figure for employee
services was $285.446, then dropped to a budgeted amount of
$270,655 in 1993-94, but has increased to a budgeted figure of
$289,291 for 1994-95. Mr. Kelly explained that for several years
staff was being moved around administratively. As an example. the
salary of the City Manager's secretary, until this July 1 budget
year, was charged totally to the Redevelopment Agency. Moving
salaries from one budget to another was "creative financing" to
pay for salaries. As part of this year's budget. however, staff
attempted to put salaries where they belong.
In answer to Member Lojeski's question as to why the 1994-95
supplies and services figure of $302,643 was approximately
$108,000 higher than the 1993.94 estimated figure, Mr. Kelly
pointed out that General Fund charges have been steadily
increasing. The Assistant Community Development Director/Economic
Development, Peter Kinnahan, added that the figure of $302,643
includes one-half of the salary for a Community Development
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6/28/94
36:0225
Director; however, the salary ($61,185) is subsequently deleted
from the total figure. The account also includes a significant
increase in contract services, due to the fact that many services
which were once in the project budget are being transferred to the
administrative operating budget. Member Lojeski recommended that
an explanation be included in the final budget to indicate why
there is such a marked increase in the supplies and services
figure, so that it is not misunderstood, It was noted by Mr.
Kinnahan that the cost for a new computer is $6,395 as shown in
the budget, not $7,795 as mistakenly indicated in the staff
report.
Member Kuhn asked if she should abstain from voting on the
Redevelopment Agency budget due to her possible conflict of
interest. The City Attorney stated that he was advised by the
FPPC that until a final opinion is reached, Member Kuhn should
exercise caution. The City Attorney believes Member Kuhn would be
entitled to ask questions, but perhaps should refrain from voting
on the budge t .
I
In answer to a question from Member Lojeski, Mr, Kinnahan
explained that the State requires that redevelopment agencies
place money annually into the Education Relief Augmentation Fund.
The amount of money to be paid is a percentage of the City's tax
increment. Mr. Kelly remarked that in view of the State's budget
problems, the amount of money to be paid next year could be even
higher; the State considers redevelopment agencies to be a prime
source of financial aid to help balance its budget.
Member Margett inquired as to the rate of interest on the 1989
bond issue. The City Treasurer stated that the average rate is
6.83 percent, but it varies throughout the life of the bond
depending upon the number of years until the maturity date,
Member Margett asked about the rate of interest accrued on money
loaned by the City to the Redevelopment Agency. The $300,000 in
interest earned will be given to the City to help balance its
1994-95 budget. The City Treasurer replied that the interest rate
is tied into what is earned on the funds deposited with the State.
the rate fund, which varies from quarter to quarter and is
currently at about 4.45 percent. The interest money received from
the Agency would be deposited by the City and would probably earn
a higher rate. The average yield the City earns is 5,38 percent,
Member Margett inquired as to whether the City is anticipating
implementing a two-year budget planning process in the near
future. Mr. Kelly replied that it is being discussed by staff and
may be suggested for next year. He stated that there are
advantages and disadvantages with a 2-year budget process, and
before it goes into effect Council should hear both the pros and
cons, The education process could begin in January,
With regard to Member Lojeski's question about the 3.20 full-time
positions budgeted for the Economic Development Division, Mr,
Kinnahan clarified that the corrected figure on the final budget I
report will be 2.7, which will reflect deletion of one-half of the
Community Development Director position. There will be a total of
two full-time professionals. A full-time Secretary position will
be added, 7/10ths of which will be paid by the Agency and 3/10ths
paid by the Transportation Transit Fund.
Considerable discussion ensued centered around the price per
square foot of the Northwest and Southwest Corner sites at
Huntington Drive and Second Avenue. Member Lojeski and
Mayor/Chairman Young felt that the figures of $11 to $13.00 a
squ~re foot should not be public information.., no developer
interested in these properties would offer more than that if aware
of these numbers, Staff commented that the $11-$13,00 per square
foot is only a minimum estimated figure,
Discussion of the Redevelopment Agency budget report continued,
with Mr, Kinnahan answering Members' questions, It was MOVED by
Member Lojeski. seconded by Member Margett and CARRIED on roll
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6/28/94
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4.
REDEVELOPMENT
AGENCY
PROPERTY USE/
DEVELOPMENT
OPPORTUNITIES
PRESENTATION
06 YO ...3 ()
36: 0226
call vote as follows to APPROVE and ADOPT the Redevelopment
Agency's Fiscal Year 1994-95 operating and project budget with any
addenda that were added tonight.
AYES:
NOES:
ABSTAIN:
ABSENT:
Members Lojeski, Margett and Young
None
Member Kuhn
Member Chang
A staff report with regard to Redevelopment Agency property
use/development opportunities was presented at the June 14, 1994,
Council/Agency study session. Due to time constraints, discussion
on the matter was continued to tonight's meeting. Staff presented
a report listing six priority land development projects for the
Agency's review. The estimated net funds available to the Agency
for Fiscal Year 1994- 95 are $4,103,000. If the Agency were to
issue revenue bonds, another $8,000,000 to $9,000,000 could be
raised, for a total of approximately $12,000,000 to $13,000,000 in
available revenue.
Mr. Kinnahan reviewed staff's list of priority Agency projects and
their estimated costs: (1) Administrative - Consultant for
AB 1290 Implementation Plan - $20,000; (2) Remarket Southwest
Corner project site - $230,000; (3) Remarket Northwest Corner
project site - $160,000; (4) Downtown Revitalization Program -
$1,602,000 to $5,125,000; (5) Theater project on the Foulger Ford
site - $2,600,000 to $4,500,000; (6) Joint Fifth Avenue project
with Monrovia - $6,150,000 to $7,000,000.
Mr. Kinnahan explained that there are two initial downtown
revitalization programs recommended by Michael Freedman of
Freedman, Tung and Bottomley. The original project consists of no
parking on Huntington Drive, with an estimated cost of $3,600,000
to $3,800,000. The revised project includes parking on Huntington
Drive, at an estimated cost of $3,500.000 to $3,700,000. Staff
added two more projects, called the Grand Boulevard - Plan A and
Plan B, $2.000,000 to $2,220,000.
Some information regarding the Foulger Ford site is of a
confidential nature, such as estimated cost to acquire the
property, Mr, Kinnahan stated that the Agency has received a
proposal for the Foulger Ford site, consisting of a large movie
theater, two restaurants and some retail stores. and staff is
reviewing the proposal. Discussions are taking place between the
developer and the owner. As more details are received, if it
looks like a feasible proj ect, staff will bring it before the
Agency for further analysis. Member Lojeski believes this may be
a unique opportunity for the City, and he hopes that the Agency
will not be the party to hold up progress if the owner and
developer are interested in pursuing the project.
Considerable discussion ensued with regard to the possibility of
a theater on the Foulger Ford property and its relation to the
downtown revitalization plan. Members Lojeski and Margett agreed
that there should be some revitalization and renovation efforts to
enhance the looks of the downtown area in conjunction with the
theater project, Mr. Kelly stated that whichever downtown
revitalization alternative the Agency chooses, it does not have be
accomplished all in one year, It can be phased in over a period
of years, and in that way some of the available resources may be
retained by the Redevelopment Agency.
Another Redevelopment Agency project is the southwest corner of
Huntington Drive and Second Avenue. Mr. Kinnahan stated that the
site has been under an exclusive listing with Mr. Powell of Hayes
and Company for about one and one-half years, and he has worked
diligently trying to market it. Staff would recommend that the
Agency begin the appraisal process, acquire the City island and
the access road, and redesign that corner, and construct a turn
lane that cuts through the island, This would retain the turn
lane, give the Agency more land to sell and develop, and preserve
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6/28/94
5.
LOJESKI
(Margett,
Rotary
Pres.)
(World Cup
Romanian
Soccer team)
36:0227
the trees in the island. The cost of the appraisal process,
acquisition process, and design and construction of the turn lane
totals approximately $230,000.
Dave Powell of Hayes and Company commented that American Tire
Stores contacted him today about putting a tire store on the
southwest corner site, and that is the only prospect at this time.
Member Lojeski asked Mr. Powell if the Agency has in any way held
him back with regard to what he feels is the marketability of the
property, and asked him what is the problem with the parcel since
it is still for sale. He answered no, the Agency has not
restricted his efforts; however, the railroad bridge is a big
detriment to the saleability of the property. The bridge blocks
the view of the site from drivers going west on Huntington until
they are past the bridge. Staff had approached the Metropolitan
Transit Authority with a request to remove the bridge or do I
something with a berm, and it was denied. Mr. Kelly added that
the MTA is financially unable to consider the City's request for
a rail system, so the bridge will remain but there may not be
anything on the rail until past the year 2000.
Discussion continued. Mr. Powell mentioned that an offer of $18
a square foot was received from the Hill Corporation to build a
Petco, Sportmart, etcetera, on the northwest corner if Costco went
in across the street. He suggested the site needs the draw of a
"big box" store such as Costco, Home Club, or Home Depot. Mr.
Powell stated that visibility from the freeway is very important.
As an example, a representative of Claim Jumper Restaurant told
him they can generate $1,000,000 more per year if the restaurant
is visible from the freeway than if it is not. Member Lojeski
suggested that perhaps the City codes with relation to signage are
too restrictive,
Mr. Kelly commented that the land at the northwest corner
(Huntington and Second) has many obstacles working against it, If
buildings are constructed over the flood control channel, there is
the issue of liability. Mr. Kinnahan added that the Corps of
Engineers has determined that a building may not be constructed
over the flood control channel unless the City or developer takes
responsibility for liability. In the event of a big flood, the
building may not hold up.
Member Lojeski suggested that perhaps it is time to lower the
price of the property and also take a look at the City's sign
ordinances if they are too restrictive where this property is
concerned, in the hopes of getting something that will be a
stimulus to the area. Member Kuhn commented that the Agency needs
to decide what type of projects it would like to see in that area;
actively design a plan and then stick to it, Mr, Kelly suggested
a "brainstorming" study session so that the Agency may discuss the
various projects and decide what they would like the Agency to do
with its assets. By general consent, it was agreed to go forward
with efforts to bring a theater complex to the Foulger Ford site,
and to hold a study session during which the Agency would review
all of the priority projects in depth,
I
MATTERS FROM CITY COUNCIL/ARCADIA REDEVELOPMENT AGENCY MEMBERS
Member Lojeski distributed to his colleagues a copy of a letter he
wrote in response to Dr, Kyle Hacker's letter to him, a copy of
which was sent to all Members. Member Lojeski congratulated Mr,
Margett on his being elected President of the Arcadia Rotary Club.
Member Lojeski suggested inviting the National Romanian Soccer
Team to the next Council meeting since they are in our City for the
World Cup Games, Mr, Kelly stated he is unsure of their schedule,
as it is decided by their coach. If they lose the next game, they
will be leaving the City. If the soccer team is unable to attend
the Council meeting, other plans can be made to honor them with a
certificate, resolution, or an activity. By general consent, it
was agreed to honor the Romanian Soccer Team in some way,
,4-
6/28/94
I
I
(Towner
budget
analysis)
MARGETT
(Horstman
commenda-
tion)
YOUNG
(Abandoned
shopping
carts)
6.
7.
APPROVAL OF
PAY FOR
ACTING CITY
MANAGER
OOO-J; 0
....
(J.2,30 . :, 0
8.
CLOSED
SESSION
0((0. '-It)
ADJOURNMENT
ATTEST:
,/
Ju e
36:0228
Member Lojeski referred to a budget analysis letter read by Karen
Towner at the June 21 Council meeting. Mr. Kelly stated that staff
is preparing an answer to the letter. Member Lojeski stated that
he received a letter from William Ray Hall, a Public Works
employee. and requested that Council be given a copy of staff's
reply, and also a copy of the reply to Mrs. Towner's letter.
Member Margett requested that the City acknowledge the service to
the community of Dean and Gloria Horstman, who are moving out of
state. A plaque will be presented to Dean Horstman, who was a
member of the Recreation Commission, at the July 5 Council meeting.
Gloria Horstman has also contributed her time and services to the
community in many ways. It was suggested that perhaps a humorous
resolution could be done for both of them together, recognizing in
a fun-type way their years of service.
Mayor/Chairman Young commented that she has had many phone calls
from residents regarding the problem of shopping carts being left
allover town. especially on the west side of the City. The carts
are from Hughes Market. The 99-Cent Store, Von's Pavilions, Sav-On.
and others. Mr. Kelly said staff will review the problem, and
will contact the Chamber of Commerce.
MATTERS FROM STAFF
Mr. Kelly requested that Councilmembers notify staff of the i r
vacation schedules with a phone call to his office.
With regard to the request for approval of pay for the Acting City
Manager, it was MOVED by Member Margett, seconded by Member Loj eski
and CARRIED on roll call vote as follows to APPROVE the salary of
$9,168 per month, effective June 1. 1994.
AYES:
NOES:
ABSENT:
Members Kuhn, Lojeski, Margett, and Young
None
Member Chang
The City Attorney stated, "We are going to have a Closed Session
now, pursuant to Government Code Section 54956.9 to confer with
legal counsel regarding Workers Compensation case of Rueter versus
the City of Arcadia, Thank you."
At 7:15 p,m. the City Council/Agency entered a CLOSED SESSION,
RECONVENED and ADJOURNED at 7:25 p.m. to 7:00 p.m. on Tuesday,
July 5, 1994, in the City Hall Council Chambers for a Regular
Meeting to conduct the business of the Council and the
Redevelopment Agency, and any Closed Session necessary to discuss
personnel, litigation matters or evaluation of properties.
Z??ar:1fk(cl~r
"d
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6/28/94