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HomeMy WebLinkAboutJUNE 28,1994 I I 0110 - 36:0224 ~ t)G.2 Cl Y C~ 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 -1- 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 -2- 6/28/94 I I 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 -3- 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 , 5- 6/28/94