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Home My WebLink AboutJULY 20,1999 I I ~I f: 0110_ 5-(;) O?~O '1'f 41:0171 CITY COUNCIL PROCEEDINGS ARE AUDIO TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK ROLL CALL: 1, 2. 3. MINUTES CITY COUNCIL OF THE CITY OF-ARCADIA and the ARCADIA REDEVELOPMENT AGENCY ADJOURNED REGULAR MEETING July 20. 1999 The City Council and the Arcadia Redevelopment Agency met in an Adjourned Regular Meeting on Tuesday, July 20, 1999 at 8:00 a.m, in the Conference Room of the City Council Chambers, PRESENT: Council/Agency Members Harbicht, Kovacic, Marshall, Roncelli and Chandler ABSENT: None SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS None. QUESTIONS FROM CITY COUNCIUREDEVELOPMENT AGENCY REGARDING AGENDA ITEMS None, AUDIENCE PARTICIPATION Mickev Seaal, Treasurer. Citizens Organized for a Police Station (C,O.P,S.) and a member of the former Financial Advisory Committee, stated in part that the C.OP.S. committee has discussed the concept of matching expenses with the expected life of the asset and recommend this process to the Council. In considering the structure of the bond for a new police facility, Mr. Segal noted the facility would have a long life span which would suggest as long a life as possible for the bond to allow those residents who would benefit the most to pay their fair share of the cost of the bond; and, to match that life with the costs associated with it. Vince FOlev, Cambridge Drive, Chairman of C.O.P.S., agreed with Mr. Segal's comments, and that the Committee would like the term of the Police Facility bond to be as long as possible, He believes the longer term would lower the cost of the assessment to the property owner and make the bond issue easier to sell to the voter. The C,O,P,S, Committee is in favor of a twenty-five (25) to thirty year (30) bond issue, A discussion ensued regarding the life of the bond. Mr. Segal reiterated his belief that it does not seem practicable to ask voters to pay for a 'facility for which they may not have a benefit if the bond is structured for a fifteen (15) year pay-off. This, in view of the expected life of the proposed structure. Fred Jahnke, Hacienda Drive, commented that a tax assessment for a bond issue to construct a new police facility, if spread over a twenty-five (25) or thirty (30) 1 7/20/99 41 :0172 year term, would be fair to both old and new property owners who would all benefit from its use over time, I Councilmember Marshall agreed with Mr. Jahnke, noting that it would be better for senior citizens if the cost of the bond issue was spread out over a long period of time, which would reduce the yearly assessment. Dorothv Denne, Arcadia resident, in reference to senior citizens not wanting to pay for a future facility, noted there are Arcadia seniors who supported bonds in the past; these seniors already built existing City structures, 4. MATTERS FROM ELECTED OFFICiALS None, 5. It) 3" -dO NEW POLICE Timothy Schaefer, a principal with Fieldman, Rolapp and Associates, and Denise FACILITY Hering of Stradling, Yocca, Carlson and Rault were in attendance for a FINANCING presentation and discussion of the financing for a proposed general obligation bond issue for construction of a new police facility, Mr. Schaefer presented and explained the following: - A general obligation bond issue would be repaid from ad valorem taxes which would require a two-thirds vote of qualified City electors, The ballot would specify how the bond proceeds would be used. The taxes required for the bonds are over and above the 1 % Proposition 13 tax rate. - Nature of Ad Valorem Taxation, The tax would be based on assessed value of the property, not market value, An annual levy is required on all property within the jurisdiction, -without regard to any element other than value; tax' cannot be selective, however religious and charitable organizations are exempt. I - The process for Approval. A resolution of the City Council determining the necessity for the project. An ordinance placing the bond proposition before the voters and publication of said ordinance calling for an election on November 2, 1999. A subsequent resolution authorizing the specific terms of the bond issue which would be adopted early in the year 2000. - Selling the bonds. The bonds would be sold at a competitive (advertised) sale and awarded to the bidder offering the City the lowest interest cost. The bid must conform to the basic state law requirements, i.e" sold at par or better; level debt service; maximum term of forty (40) years. - The Proposed Bond Issue. Par value of $8.0 million, Maturity options: 15-years, annual debt service of $792.000; 20-years, annual debt service of $669,000; 25- years, annual debt service of $559,000; 30-years, annual debt service of $556,000. The City will use a combination of other city funds along with the $8,0 million to meet the funding requirement of $16,0 million. The interest rate for the bonds to investors is estimated at 5,5% to 5,6% this date. This rate can change. - Tax example: Single Family Residence - Detached, 10,960 parcels, Based on an assessed value of $381,545, 20-year term, $51,78 - estimated first year tax; 30 years term, $43,05 - estimated first year tax. Median - $241,000 assessed value, $32.71, 20-years and $27.19, 30-years. $102,537 assessed value, $13.92, 20- years and $11.57, 30-years, I 2 7/20/99 I I I 6. to '~, j . '1<.' ORDINANCE NO.2111 (Calling Special 41 :0173 Mr. Schaefer further presented a tax example for 2,676 condominium/townhome parcels: Assessed vaiue of $219,193, 20-years $29,75, 30-years $24,73; assessed value of $175,307, 20-years $23.70, 30-years $19,78; and, assessed value of $137,376, 20-years $18,64; 30-years $15.50, - Tax Roll Categories, residential, commercial, unsecured, industrial, recreational and all others as a group: 2000-2001 assessed total value $4,932,800,278 (80% of this figure residential properties), 20-yearterm total $669.435; 30-yearterm total $556,537, - Top Ten Property Owners of Record: This list included Santa Anita Realty Enterprises, Methodist Hospital Lessee, Santa Anita Fashion Park LLC, Santa Anita Consolidated Inc" Vons Companies, Inc" Arcadia Gateway Center, Arcadia Bonheur, Inc. Los Angeles Tun Club, Inc., Golden West Properties and Parsons Infrastructure, for a total assessed value projected for 2000-2001 of $365,948.464, which equals 7.28% of all City properties, Discussion ensued at the conclusion of Mr. Schaefer's presentation centered on a possible drop in property values and the effect this might have on the bond assessment to property owners; the potential term of the proposed $8,0 million bond issue and costs, which costs were roughly computed by Mr. Schaefer: fifteen (15) year term - annual debt service of $792,000 would require a repayment of $11,9 million of which $3.9 million is interest; twenty (20) year term annual debt service of $669,000 would require $13,4 million in repayment of which $5,4 million is interest; twenty-five (25) year term annual debt service of $559,999 would require $14.9 million of which $7,0 million is interest; 3D-year term annual debt service of $556,000 would require $16.7 million of which $8.6 million is interest and a forty-year (40) term annual debt service of $515,000 would require $20 million which includes $12,6 million in interest. In reference to previous comments from the audience, Mr. Schaefer noted that his recommendation, when asked, is to make an attempt to match the estimated useful life of the proposed police facility to the term of the bonds, In response to Councilmember Kovacic regarding the $8.0 million in City funds to meet the total $16,0 million for the project, Mr. Penman, Deputy City Manager/Development Services Director, advised that these funds would be released from Capital Outlay and Redevelopment Funds. Staff will provide a schedule of the withdrawal of funds from the impacted accounts at a future date which will tie into funds from the bond issue, Following discussion of the term for the bond issue, it was MOVED by Mayor Chandler, seconded by Councilmember Marshall and CARRIED on roll call vote as follow to place a thirty-year (30) term on the $8,0 million bond issue to be presented to the electorate of the City at the November 2, 1999 Special Municipal Bond Election. AYES: Council/Agency Members Harbicht, Kovacic. Marshall, Roncelli, and Chandler NOES: None ABSENT: None At its July 6, 1999 meeting the City Council introduced OrrJinance No. 2111 and adopted Resolution No. 6127, both of which relate to the upcoming election for the police facility project. The City Council. this date, July 20, reconsidered the 3 7/20/99 41:0174 Muni. Bond language in the question which will appear on the ballot regarding the measure, Election - Police Following discussion several words were removed which were considered to be not I Facility) necessary, as follows: (RE-1NTORDUGED) Measure : Shall the City of Arcadia incur a bonded indebtedness in the RES, NO. 6127 principal amount of $8,000,000,00 for the aG(j~isitieA, construction (Police Sta. Prog. and completion of the following municipal improvement, to wit: a Constllmprvmts.) police station in the Arcadia Civic Center Cernplex, including (RE-ADOPTED) facilities for emergency operations, police dispatch and 911 /0 3,1 . ~/o emergency communications, detective bureau. records, police laboratory, jail facility, evidence storage and other works. property or structures for efficient, effective law enforcement necessary 9f convenient for said City Police Station? Following discussion, by consensus, the Council determined to revise the language within the ballot question regarding the bond measure by removing the following words: "acquisition", "Complex", and "or convenient", subject to approval by legal counsel. It was MOVED by Mayor Pro tem Harbicht, seconded by Councilmember Roncelli and CARRIED on roll call vote as follows to RE-INTRODUCE ORDINANCE NO, 2111, entitied: "AN ORDINANCXE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, CALLING A SPECIAL MUNICIPAL BOND ELECTION IN THE CITY OF ARCADIA FOR THE PURPOSE OF SUBMITTING TO THE ELECTORS OF SAID CITY THE MEASURE OF INCURRING A BONDED INDEBTEDNESS OF SAID CITY FOR THE CONSTRUCTION AND COMPLETION OF THE FOLLOWING MUNICIPAL IMPROVEMENT, TO WIT: POLICE STATION; DECLARING THE ESTIMATED COST OF SAID MUNICIPAL IMPROVEMENT, THE AMOUNT OF THE PRINCIPAL OF SAID INDEBTEDNESS TO BE INCURRED THEREFOR, AND THE MAXIMUM RATE OF INTEREST TO BE PAID THEREON; MAKING PROVISION FOR THE LEVY AND COLLECTION OF TAXES; FIXING THE DATE OF SAID ELECTION AND THE MANNER OF HOLDING THE SAME; CONSOLIDATING SAID SPECIAL MUNICIPAL BOND ELECTION WITH SCHOOL DISTRICT ELECTIONS TO BE HELD IN LOS ANGELES COUNTY ON TUESDAY, NOVEMBER 2, 1999; AND PROVIDING FOR NOTICE THEREOF"; and, REVISE the language within the ballot question and Ordinance No. 2111 regarding the bond measure by removing the following words: "acquisition", Complex", and "or convenient", subject to approval of legal counsel. I AYES; NOES: ABSENT: Council members Harbicht, Kovacic, Marshall, Roncelli and Chandler None None It was MOVED by Council member Roncelli, seconded by Councilmember Marshall and CARRIED on roll call vote as follows to RE-ADOPT RESOLUTION NO. 6127, entitled: "POLICE STATION PROGRAM CONSTRUCTION OF IMPROVEMENTS: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DETERMINING THAT THE PUBLIC INTEREST AND NECESSITY DEMAND THE CONSTRUCTION AND COMPLETION OF CERTAIN MUNICIPAL IMPROVEMENTS AND MAKING FINDINGS RELATING THERETO"; and, REVISE the language within the ballot question and Resolution No. 6127 regarding the bond measure by removing the following words: I "acquisition", "Complex", and, "or convenient", subject to approval by legal counsel. 4 7/20/99 I I I ADJOURNMENT (7:00 p.m. 6-20-99) ATTEST: AYES: NOES: ABSENT: 41:0175 Councilmembers Harbicht, Kovacic. Marshall, Roncelli and Chandler None None At 9:34 a,m, the Adjourned Regular Meeting ADJOURNED to 7:00 p.m., this date, July 20, 1999 in the Council Chambers for a Regular Meeting to conduct the business of the City Council and the Arcadia Redevelopment Agency and any Closed Session necessary to discuss personnel, litigation matters or evaluation of properties, IJ 5 7/20/99