HomeMy WebLinkAboutJULY 7,1998
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0110, ..., ,)
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40:0168 (e
CITY COUNCIL PROCEEDINGS ARE AUDIO AND VIDEO TAPE RECORDED AND ON FILE IN THE OFFICE OF
THE CITY CLERK
ROLL CALL:
1.
I
2.
2a.
oua '10
2b.
OlltJ If)
I
MINUTES
CITY COUNCIL OF THE CITY OF ARCADIA
and the
ARCADIA REDEVELOPMENT AGENCY
REGULAR MEETING
JULY 7. 1998
The City Council and the Arcadia Redevelopment Agency met in a Regular Meeting on
Tuesday, July 7.1998, at 6:00 p.m. in the Council Chambers Conference Room.
PRESENT:
ABSENT,
Councilmembers Chandler. Harbicht, Marshall, Roncelli and Kovacic
None
AUDIENCE PARTICIPATION
Dale SpiCkler, 414 E. Duarte Road, addressed the City council on the issue of a State
requirement regarding the inspection of public swimming pool lights. Mr. Spickler
explained that he removed the light from the swimming pool at his apartment building
many years ago. He recently received a letter from the City that his property was on the
County list to be inspected by the City. Mr. Spickler objected to the $150 permit fee to
have the City inspect his property to verify that the swimming pool light has been
removed. Staff will look into this matter.
CLOSED SESSION
Pursuant to Govemment Code Section 54957.6 to confer with City labor negotiators
William Kelly and Carol Przybycien regarding Teamsters Local 911, AFSCME Local
2264, AFFA, APOA. management and non-represented employees.
Pursuant to Government Code Section 54956.8 to confer with Agency negotiators
William' -R. Kelly, Don Penman and Peter Kinnahan pertaining to negotiations with
Stonebridge Companies (Gary Rohr) regarding the disposition of real property (price and
terms) applicable to the 4-acre site at the northwest corner of East Huntington Drive and
North Second Avenue, Arcadia.
At 6:10 p.m. the City Council RECESSED to the Closed Session and RECONVENED
the Regular Meeting in the Council Chambers at 7:05 p.m.
INVOCATION Reverend Mary Mitchell, The Santa Anita Church
PLEDGE OF
ALLEGIANCE Frank Forbes
ROLL CALL: PRESENT: Councilmembers Chandler. Harbicht, Marshall. Roncelli and Kovacic
ABSENT: None
City Attorney Miller announced the items considered at the earlier Closed Session and
that the Closed Session discussion will continue at the conclusion of the regular meeting
this date.
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3.
Mayor's Youth
Service
Awards
(Hoherd,
Larsen,
Licher,
Powers,
Soukup &
Cosbey)
4.
40:0169
PRESENTATION
I
Mayor Kovacic presented the July 1998 Mayor's Youth Service Awards to Mark Hoherd,
Mark Larsen. Wayne Licher, Dr. Tom Powers, Bob Soukup and Rick Cosbey stating, in
part, that they represent Arcadia's youth softball and baseball leagues and were selected
by league presidents for their extra efforts on behalf of each league and the youth who
enjoy playing ball every Spring and Summer. Arcadia youth receive many benefits such
as exercise, inter-personal skills and valuable life experiences as a result of these"
faithful. dedicated individuals volunteering their time and energies.
Mark Hoherd. representing the Coast Little League, has been instrumental in the success
of this league since he began coaching in 1985. He has coached over 270 regular
season games and 60 post-season games with a stunning record. held numerous
positions on the league's board of directors, and spent countless hours tending Windsor
Field to ensure Arcadia youth have the best possible playing field.
Bob Soukup, representing the Santa Anita Little League, played previously with the
Brooklyn Dodgers. He has provided service. dedication and inspiration to the league for
over 43 years; serving as a role model to youth and adults alike.
Mark Larsen, representing the National Little League, has the ability to remain calm and
level-headed while scheduling games for seven leagues during an extremely difficult
year of EI Nino storms. All leagues benefited by his calming and serene influence. and
the many extra hours he spent helping wherever and whenever needed.
Dr. Tom' Powers. representing the West Arcadia Little League, was described as a kind
and generous person giving back to his community by serving the league for 15 years as
a manager, coach. and tending the fields at Baldwin Stocker. Despite his busy medical
practice Dr. Powers always finds time for West Arcadia youth, treating them as his own
'and serving as an outstanding role model.
I
Wayne Licher. representing the Arcadia Pony/Colt League, serves as an inspiration to
everyone involved with the league, an outstanding example of good sportsmanship, and
has the best interests of the league at heart. Among many things he does for the league,
Mr. Licher personally directed and paid for the renovation of the league's playing field,
including installation of new grass infield, new sport dirt playing surface, and new
sprinkler system.
Rick Cosbey, representing the Senjor Babe Ruth League, 'was not present this date.
However, Mayor Kovacic commented that Mr. Cosbey serves as assistant coach to the
Arcadia Astros baseball team, assists with the Arcadia High School Winter Baseball
Team, and was involved with Arcadia Pony/Colt. - '
PRESENTATION
Mayor's Senior Mayor Kovacic presented the July 1998 Mayor's Senior Service Award to Chuck Yaras
Service Award stating, in part, that Mr. Yaras is also known as the .Phantom Philanthropist", a quiet and
(Varas) faithful supporter of Senior Citizen Services for six years donating numerous, varied
goodies to seniors who participate at the Arcadia Community Center. His donations are
unsolicited and given quite humbly. Mr. Yaras also supports Arcadia youth by
volunteering with National Little League in his spare time.
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5.
Certificate of
Commendation
and Service
(Tom Forbes)
6.
Library Board
(Scott &
Vanlandingham)
7.
Planning
Commission
(Bell)
8.
to;
Senior
Citizens'
Commission
(Powers)
9.
Sister City
Commission
(Johnson)
10.
11.
ORD. & RES.
READ BY
TITLE ONLY
40:0170
PRESENTATION
Mayor Kovacic presented the Mayor's Certificate of Commendation and Service to Tom
Forbes, Music Director at Arcadia High School, stating, in part, that Mr. Forbes is one of
Arcadia's shining stars by serving the community in many ways such as a long-time
member of the Pasadena Tournament of Roses; the Australia trip with the high school
band and orchestra; guest conductor at the Sydney Opera House; teaching at Arrowbear
and Wildwood Music Camps each summer; working with the Festival of Bands,-
Pasadena Youth Symphony. the Arcadia Pops Orchestra and the Arcadia Marching
Band. His work with the Southern California School Band and Orchestra Association
includes membership for 18 years. service on its Board for 9 years, and Board President.
During his term as President, the Association has flourished because of his participation
of giving more than is required and always trying to exceed expectations.
PRESENTATION
Mayor Kovacic and Council member Harbicht presented plaques to outgoing Library
Board Members, JoAnn Scott and Jesse Vanlandingham thanking them on behalf of the
City for their hard work on behalf of the Library and many years of service to Arcadia,
PRESENTATION
Mayor Kovacic and Council member Roncelli presented a plaque to outgoing Planning
Commission Member, Carolyn Bell and thanked her on behalf of the City for the many
hours spent preserving Arcadia's architectural and development character as a member
of the commission.
PRESENTATION
Mayor Kovacic presented a plaque to outgoing Senior Citizens' Commission Member.
Arthur Powers thanking him on behalf of the City and the seniors of Arcadia for being a
guiding force on the commission for many years.
PRESENTATION
Mayor Kovacic presented a plaque for Mayor Pro tern Chandler to present to outgoing
Sister City Commission Member, Jean Johnson, not present this date. Mayor Pro tern
Chandler commented that Mrs. Johnson's presence on the Commission will be missed
and on behalf of the City Council thanked her for her service.
SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS
None
QUESTIONS FROM CITY COUNCIUREDEVELOPMENT AGENCY REGARDING
AGENDA ITEMS
Council member Roncelli requested Items 15c, d and j be removed from the Consent
Agenda for discussion.
It was MOVED-by Councilmember Harbicht. seconded by Mayor Pro tern Chandler and
CARRIED that ordinances and resolutions be read by title only and that the reading in
full be WAIVED.
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12.
,',
13.
MARSHALL
(Centennial
Comsn.
SloganILogo
Contest)
(Vacation Buy-
Back program)
(Quote)
40:0171
AUDIENCE PARTICIPATION
I
Lonell Spencer. 1.008 S. Mayflower, read an excerpt from State Assemblyman Margett's
campaign literature concerning support of a potential State repeal of vehicle taxes and
commented, in part. he felt it appropriaie the City Council contact Mr. Margett regarding
such a repeal's impact on City revenues.
Lyle Wilson, Arcadia resident. commented on and voiced his agreement with recent~
Council and court decisions regarding a development request for property on Caballero
Road. Mr. Wilson requested clarification on Agenda Item 15h, why the competitive bid
process is being waived; and Agenda Item 16d, what fiscal impact will occur as a result
of the re-titling of the position classification of Building Official.
Vincent Foley, Cambridge Drive, addressed his remarks and voiced his displeasure to
Council member Marshall for her comments at the June 16. 1998 City Council Meeting
regarding management staffs use of sick leave hours in place of vacation hours, and the
unused vacation time sell-back fringe benefit.
Fred Jahnke, Arcadia resident. commented, in part. on unused vacation time sell-back
practices, use of vacation time. his support of Mrs. Marshall's comments at the June 16,
1998 City Council Meeting, forthcoming salary and benefits survey. and expressed his
appreciation for the work of each Councilmember.
City Manager Kelly responded to Mr. Spencer's comments stating, in part, that contact
has been made with Assemblyman Margett's office regarding the automobile license fee
repeal and that Mr. Marget! supports the concept of a repeal, but not if the State is not
guaranteeing that cities will get the money paid back.
I
Regarding Agenda Item 15h, Mr. Kelly stated. in part, that by using an L.A. County
contract through Office Depot the City is saving additional dollars by receiving the
discount afforded through the contract, and thus not using staff time to go out to bid.
This process is consistent with the City's purchasing procedures.
Regarding Agenda Item 15d there are no cost changes (i.e. salary or benefits)
associated with the position classification change; it is simply a requirement to change
the title based upon changes in State law.
MATTERS FROM ELECTED OFFICIALS
Councilmember Marshall announced that the Arcadia Centennial Commission Slogan
and Logo Contest closes July 15. 1998. The Commission is searching for a clever
slogan and an eye-catching logo for the City's year-long hundredth birthday celebration
in the year 2003.
Councilmember Marshall commented, in part, that to set the record straight regarding
her comments at the June 16; 1998 Council meeting concerning the City's vacation buy-
back program that at no time did she question anyone's integrity, she did Question the
plan's mechanics, is this a program the City can afford, and is the City obtaining any
benefit from the program. Mrs. Marshall stated that her constituency elected her to
make sure each tax dollar being spent is accounted for and in their best interest.
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Councilmember Marshall's quote of the day "One reason a dog can be such a comfort:
you are feeling blue and he doesn't try to find out why."
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CHANDLER
(County Fire
Dept. Survey)
RONCELLI
(Summer
Community
Concerts)
(Homeowners
Associations)
(Caballero
Property)
(Budget
Issues)
,',
MOTION:
ROLL CALL:
HARBICHT
(L.A. Cnty.
Sanit. Dist.)
(Library
Board)
40:0172
Mayor Pro tem Chandler commented that the survey concerning contracting Arcadia fire
service to Los Angeles County is near completion and it is anticipated a presentation to
the City Council will occur on July 21.
Councilmember Roncelli announced the return of the Summer community concerts
sponsored by the Parks & Recreation Department which will begin July 9. The free
family concerts will take place on the lawn behind the Community Center 7:00 - 8:30
p.m., Thursdays. July 9 through August 13.
Councilmember Roncelli commented that he has been asked by homeowners how to
form a homeowners association, who should be contacted at City Hall. and what kind of
help can be expected from the City; he would like information so that he can respond to
these inquiries.
Councilmember Roncelli stated that he too was pleased with the court upholding the City
Council's decision on the redevelopment request for the Caballero Road property;
commented that he felt that the court decision is a clear statement that both the owners
of the subject property and the surrounding neighbors have rights that must be protected.
Council member Roncelli responded to Mr. Foley's comments this date stating, in part,
thai he too would like inquiry into rationale for vacation sell-back and management leave
time issues. Another area of concern Mr. Roncelli commented on was the remodel of
City Hall rest rooms for Adults with Disabilities Act (ADA) requirements.
City Manager Kelly responded to Councilmember Roncelli's concerns regarding
homeowners association formation stating. in part, that staff will research the issue and
return with a report if directed by Council to do so. Regarding management leave and
remodel of City Hall Mr. Kelly responded. in part. that more information on how the leave
was developed can be given to Council; the ADA issue was that the City is required as a
public entity to conform to these regulations, information on previous funds expended
can also be given to Council.
Considerable discussion ensued as to the appropriateness of discussing management
vacation sell-back and leave benefits in closed and open session meetings.
Councilmember Roncelli put forth a MOTION that these issues be discussed in open
session as an agenda item. Councilmember Marshall seconded the motion, which was
later WITHDRAWN by Councilmember Roncelli.
It was then MOVED by Council member Harbicht, seconded by Council member Roncelli
that Council be provided with the background and other additional information
conceming the practice of management vacation sell-back and leave benefits; .based
upon that information, Council may further consider these matters in Closed Session.
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbichl, Marshall, Roncelli, Kovacic
None
None
Councilmember Harbicht announced that the Los Angeles County Sanitation District is
sponsoring a free Household Hazardous Waste Roundup to be held on Saturday, July 18
from 9:00 a.m. to 3:00 p.m. at the Santa Anita Race Track. Gate 6 off Colorado Place.
Councilmember Harbicht also announced that the Arcadia Library Board held a special
meeting this date and decided to reopen the Library on Fridays. the exact date is as yet
undetermined since it involves hiring additional personnel.
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717/98
KOVACIC
(Annual
Commun. Event)
(New
Businesses)
(Senior Citizen
Baseball)
(Business
License
Revenue)
14.
ROLL CALL:
14a.
STATUS
REPORT -
Agency
Finances
(Study
Session to be
scheduled in
August 1998)
1(;&'3(/'
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40:0173
Mayor Kovacic noted that Temple City had a community picnic on July 3rd and Sierra
Madre held their annual 4th of July parade and he thinks that it is about time that Arcadia
had an annual community event to celebrate what's great about Arcadia. The Mayor
requested public response to that concept.
I
Mayor Kovacic recognized four businesses that recently had formal ribbon cutting
ceremonies; The Academy of Computer Technology, 411 E. Huntington Drive; The 99~
Only Store, 140 E, Duarte Road; the First Continental Bank. 1228 S. Baldwin Avenue~
and Papa John's Pizza on Baldwin Avenue.
The Mayor announced that on June 30 he was honored to throw out the first pitch for the
Senior Citizen Baseball League at the County Park, and commented that Arcadia's team
looks good.
Mayor Kovacic announced that for Fiscal Year 1997-1998 the Business License
Revenue for the City of Arcadia was $753,919; and during the month of June 476
business licenses were processed, ,140 of which were new businesses. The Mayor
extended his personal thanks to Business License Officer, Becky Pike. for her efforts in
doing a multi-person job With just one person,
THE CITY COUNCIL RECESSED TO ACT AS THE
ARCADIA REDEVELOPMENT AGENCY
PRESENT:
ABSENT:
Agency Members Chandler, Harbicht. Marshall. Roncelli and Kovacic
None
Staff presented the status report regarding Redevelopment Agency Finances.
Considerable discussion involved the tax increment; Agency debt to the City; repayment
of City debt; property reassessments and its impact on revenues and budget projections;
Agency Operations/Administrative Budget; Agency property and pending sales; future
activities of the Agency, etcetera. Staff recommended that the Redevelopment Agency
schedule a study session to discuss future Redevelopment Agency activities. projects
and finances.
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It was MOVED by Agency Chairperson Kovacic, seconded by Agency Member Roncelli
and CARRIED on a roll call vote as follows to conduct a study session to be scheduled in
August 1998.
ROLL CALL: AYES:
NOES;
ABSENT:
Agency Members Chandler, Harbicht, Marshall, Roncelli afld Kovacic
None
None
A TRANSCRIPT OF AGENDA ITEM 14A HAS BEEN PREPARED.
ADJOURNMENT The meeting of the Arcadia Redevelopment Agency ADJOURNED to July 21, 1998 at
6:00 p.m.
15. CONSENT ITEMS
THE CITY COUNCIL RECONVENED
15a.
MINUTES APPROVED the minutes of the June 16, 1998 Regular Meeting.
(June 16, 1998)
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40:0174
15b. OQ/, tJ (\()
RESOLUTION ADOPTED RESOLUTION NO. 6058 entitled. "A RESOLUTION OF THE CITY
NO. 6058 .. COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DECLARING PORTIONS OF
(L. A. County I3ALDWIN AVENUE FROM LONGDEN AVENUE TO LOFTUS DRIVE AS PART OF
Hwy. Traffic THE SYSTEM OF HIGHWAYS OF THE COUNTY OF LOS ANGELES FOR THE
Synchron. PURPOSES OF A TRAFFIC SIGNAL SYNCHRONIZATION PROJECT."
Project)
15c.
CONTRACT.. See Page 8.
1998/99
Concrete
Repair Prog.
15d.
RESOLUTION See Page 8.
NO. 6059 -
(Fire Dept.
Records)
15e. ~J/:'
AGRMT. ..
FY 1998-99
Pers. Labor
Relations/
Legal SVC5.
15f. 0<1 >') ~ 'ia
ACCEPT ACCEPTED project for work performed by California Pavement Maintenance. Inc., for
PROJECT - 1997/1998 Street and Parking Lot Resurfacing Program; and AUTHORIZED final
(1997/98 payment of $20,001.71 (10% retention) to be made in accordance with the contract
Street and documents.
Pkg. Lot
Resurfacing)
';
15g. rJ ~r;f)
AWARD
CONTRACT -
(1998/99
Street and
Pkg. Lot
Resurfacing)
15h. tl,~ '1 '
PURCHASE-
(Library
Fumishings -
Co. Contract)
151. th (" '.
FINAL MAP
TR. 52314-
(8-Unit Res.
Condo. -
746 W. Htg.)
( ;
AUTHORIZED the City Manager to EXECUTE an agreement with Liebert. Cassidy &
Frierson for labor relations and personnel legal services for FY 1998-99.
,..
AWARDED a contract in the amount of $215,400,19 to California Pavement
Maintenance, Inc., for the 1998/99 Street and Parking Lot Resurfacing Program;
WAIVED all informalities in the bid process; APPROPRIATED $9,000.00 from the
Capital Outlay Fund to cover the cost of parking lot resurfacing; and AUTHORIZED the
City Manager and City Clerk to EXECUTE a contract in a form approved by the City
Attomey.
,3 U
WAIVED the competitive bidding process; JOINED County of Los Angeles contract with
Office Depot for the purchase of systems fumishings for the Technical Services Division
of the Library in the amount of $21,819.00; and AUTHORIZED the City Manager to
EXECUTE a contract in a form approved by the City Attomey.
IH . ~
APPROVED the Final Map of Tract No. 52314 for an 8-unit residential condominium
project at 746 W. Huntington Drive provided that before the final map is recorded all
outstanding conditions of approval shall be complied with to the satisfaction of the City
Engineer.
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40:0175
15j.
PROF. SVCS. See Pages 8 & 9.
AGRMT. -
ST. JOS.
RESERV. #1
REPLCMNT.
PROJ.
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THE PRECEDING CONSENT ITEMS 15a. b, e. f. g. h. and i APPROVED ON MOTION
BY MAYOR PRO TEM CHANDLER. SECONDED BY COUNCILMEMBER HARBICHT
AND CARRIED ON ROLL CALL VOTE AS FOLLOWS:
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht. Marshall, Roncelli and Kovacic
None
None
15c. ~ Cf rl. 0 ~ '-I (l
AWARD Staff responded to Council that if the contract is awarded this date work will begin within
CONTRACT - the next 60 days,
(1998/99
Concrete
Repair Prog.)
(APPROVED)
It was MOVED by Councilmember Roncelli, seconded by Councilmember Harbicht and
CARRIED on a roll call vote as follows to AWARD a contract in the amount of
$58,149.15 to Martinez Concrete. Inc., for the 1998/99 Concrete Repair Project;
WAIVED all informalities in the bid process; and AUTHORIZED the City Manager and
City Clerk to EXECUTE a contract in a form approved by the City Attorney.
AYES:
NOES:
ABSENT:
Councilmembers Chandler. Harbicht. Marshall, Roncelli and Kovacic
None
. None
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15d, ()13o.
RESOLUTION
NO. 6059 -
(Fire Depl.
Records)
(ADOPTED)
. ,) '<:}
Staff responded to Council that files necessary for archival are microfilmed, however the
records in question here have been determined by the Fire Chief not necessary for
archival and. involve the years from 1970 to 1993. The method for destruction was
explained.
It was MOVED by Mayor Pro tem Chandler, seconded by Councilmember Harbicht and
CARRIED on a roll call vote to ADOPT RESOLUTION NO. 6059 entitled, "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA,
AUTHORIZING THE DESTRUCTION OF CERTAIN FIRE DEPARTMENT RECORDS
AS AUTHORIZED BY LAW."
AYES:
NOES:
ABSENT:
Councilmembers Chandler. Harbicht, Marshall, Roncelli and Kovacic
None
None
15j. () 7., (.) "1')
PROF. SVCS. In reply to Council's question as to whether this work could be done in-house staff
AGRMT. '- responded, in part, that staff engineers do not have the type of expertise necessary for
ST. JOS. this project. Staff also confirmed a change in the design portion of the project as was
RESERV. #1 previously proposed.
REPLCMNT. I
PROJ. It was MOVED by Mayor Pro tem Chandler, seconded by Councilmember Harbicht and
(Civiltec Eng., CARRIED on a roll call vote as follows to AWARD a Professional Services Agreement in
Inc.) the amount of $215,160.00 to Civiltec Engineering for design of the reservoir, booster
(APPROVED) pump station, water well and appurtenances at the SI. Joseph Plant and Reservoir
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16.
16a. If) . "
CITY
BALLOTS -
Monrovia Ltg.
& Landscaping
Maint. Dist.
16b.
HUMAN
RESOURCES
COMSN.
(Wen)
c) 1.1,~ 0 I 'I
LIBRARY
BOARD
(Selmer and
Rochefort)
cJ I .
40:0176
i=acility; and AUTHORIZED the City Manager and City Clerk to EXECUTE a contract in a
lonn approved by the City Attorney.
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall. and Kovacic
Councilmember Roncelli
None
CITY MANAGER
'"
d
Consideration of the matter to authorize the City Manager to cast the City of Arcadia's
ballots for the City of Monrovia Citywide Lighting and Landscaping Maintenance District.
Staff reported that Proposition 218 requires voter approval for implementation of and/or
modifications to certain assessments. The City of Arcadia owns two parcels of land in
the City of Monrovia which are used for water purposes. The properties currently pay an
:assessment of $34.11 each. These funds are used for the exclusive purpose of
operating, servicing and maintaining citywide City 01 Monrovia street lighting. traffic
Signals and street trees, along with median and parkway landscaping on various streets.
The proposed change in Monrovia's Citywide Lighting and Landscaping Maintenance
District is the allowance of an annual increase in the assessment of no more than the
:annual change in the Consumer Price Index.
In order to be counted, the ballot must be received by the City of Monrovia no later than
July 28. 1998.
biscussion ensued on whether to vote in favor of or against the assessment increase.
It was MOVED by Councilmember Harbicht, seconded by Council member Roncelli and
CARRIED on a roll call vote as follows to AUTHORIZE the City Manager to cast two "No"
votes for the City of Arcadia's ballots in the City of Monrovia Citywide Lighting and
landscaping Maintenance District.
AYES:
NOES:
ABSENT:
Council members Harbicht, Marshall, Roncelli and Kovacic
Councilmember Chandler
None
APPOINTMENTS TO BOARDS AND COMMISSIONS
Staff presented the report and recommendation to appoint members to the City's boards
and commissions.
Councilmember Harbicht nominated S. H. Wen for reappointment to the Human
Resources Commission for a full four-tenn ending June 30, 2002. There were no other
nominations.
AYES:
NOES:
ABSE"NT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
Councilmember Chandler nominated Jerome (Jerry) Selmer for appointment to the
library Board. Councilmember Harbicht nominated Elizabeth (Betty) Rochefort.
Council member Marshall nominated Nancy Chang for appointment. Mayor Kovacic
nominated John Fung.
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, PLANNING
';OCOMMISSION
(Huang,
Kalemkiarian
and Murphy)
40:0177
ROLL CALL VOTE: Selmer
Chandler
Harbicht
Roncelli
Rochefort
Chandler
Harbicht
Marshall
Roncelli
Kovacic
Funq
Kovacic
I
Chanq
Marshall
By a majority vote of the City Council Jerry Selmer and Betty Rochefort were appointed~
to the' Library Board for full four-year terms ending June 30, 2002. .
Council member Marshall nominated Edward Huang. Paul Kalemkiarian and John
Mutphy for reappointment to the Planning Commission. Councilmember Roncelli
nominated Howard Spellman and John Wuo. Mayor Pro tern Chandler nominated David
Olson.
ROLL CALL VOTE: Huanq
Chandler
Harbicht
Marshall
Roncelli
Kovacic
Spellman
Olson
Chandler
Kalemkiarian
Chandler
Harbicht
Marshall
Roncelli
Kovacic
Murphy
Harbicht
Marshall
Roncelli
Kovacic
Wuo
By a majority vote of the Council Edward Huang, Paul Kalemkiarian and John Murphy
were reappointed to the Planning Commission for full four-year terms ending June 30,
2002.
t) I,:} "
, ,PARKING There were no nominations and no applications filed for a seat on the Parking District
, I. DIST. COMSN. Commission.
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d/.;.tO
) )' RECREATION
( .. & PARKS
COMMISSION
(Mead)
(J/:)t,
SENIOR
.~, . CITIZENS'
COMMISSION
(Curtis,
Petermann,
Gilb, Bellin
and Hubbard)
Councilmember Roncelli nominated Christine (Chris) Mead for appointment to the
Recreation and Parks Commission. Councilmember Harbicht nominated Gail Jensen.
ROLL CALL VOTE:
Jensen
Chandler
Harbicht
Mead
Marshall
Roncelli
Kovacic
By a majority vote of the Council Christine Mead was appointed to the Recreation and
Parks Commission for a full four-year term ending June 30, 2002.
It was MOVED by Mayor Kovacic, seconded by Council member Harbicht and CARRIED
on a roll call vote as follows to CONFIRM the reappointment of Carol Curtis and Irene
Petermann to the Senior Citizens' Commission for full two-year terms ending June 30,
2000.
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
Councilmember Roncelli nominated Ruth V. Gilb for appointment to the Senior Citizens'
Commission. Councilmember Harbicht Nominated Jayne V. Bellin.
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SISTER CITY
COMMISSION
(Cope,
Hanner and
Cashion)
0,.;1\' ,~ f)
':
CENTENNIAL
CELEBRATION
COMMISSION
(Wen)
0' I' <. )/
40:0178
ROLL CALL VOTE:
Gilb
Chandler
Harbicht
Marshall
Roncelli
Kovacic
Bellin
Chandler
Harbicht
Marshall
Roncelli
Kovacic
By a majority vote of the Council Jayne Bellin and Ruth Gilb were appointed to the-
Senior Citizens' Commission for full two-year terms ending June 30. 2000.
It was MOVED by Councilmember Harbicht, seconded by Councilmember Marshall and
CARRIED on a roll call vote as follows to CONFIRM the reappointment of Eileen
Hubbard to the Senior Citizens' Commission for a full two-year term, retroactive to July
1, 1997, ending June 30, 1999. .
AYES:
NOES:
ABSENT:
Council members Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
It was MOVED by Mayor Pro tem Chandler, seconded by Councilmember Marshall to
reappoint Jean Cope and James Hanner to the Sister City Commission. Council member
Harbicht nominated David Cashion for appointment to the Sister City Commission.
Councilmember Marshall nominated Pei Wen Chang. Councilmember Roncelli
nominated Louise Gelber.
ROLL CALL VOTE: Cope Hanner Cashion Chana Gelber
Chandler Chandler Chandler Marshall Roncelli
Harbicht Harbicht Harbicht Roncelli .
Marshall Marshall Roncelli
Kovacic Kovacic Kovacic
By a majority vote of the Council Jean Cope and James Hanner were reappointed, and
David Cashion appointed to the Sister City Commission for full four-year terms ending
June 30, 2002.
Council member Harbicht stated that it was the desire of the Centennial Celebration
Commission to have S. H. Wen appointed to the Commission; Mr. Harbicht then
nominated Mr. Wen. Dr. Sheng Chang was nominated by Council member Roncelli.
ROLL CALL VOTE:
Chana
Marshall
Roncelli
Wen
Chandler
Harbicht
Kovacic
By a majority vote of the Council S. H. Wen was appointed to the Centennial Celebration
Commission.
16c. -..': .'
RECREATION Consideration of the request to fill the Senior Citizens Supervisor position expected to be
DEPT. - vacated July 31,1998. Staff commented that the pOSition is fully funded in the 1998-99
(Recruit Senior Operating Budget. The Senior Services Division is currently staffed with one
Citizens management position, 2 full-time positions, 2 part-time positions, approximately 130
Supervisor) volunteers, and 1 part-time grand funded position.
(APPROVED)
An essential position, the Senior Citizens Supervisor is the only management position for
the Senior Services Division and is responsible for the overall administration of all
11
7nt98
40:0179
activities. programs and services available to senior citizens at the Arcadia Community
Center, and the management of the division budget. The position also serves as staff
. liaison to the Senior Citizens Commission.
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It was MOVED by Council member Harbicht. seconded by Mayor Pro tem Chandler and
CARRIED on a roll call vote as follows to AUTHORIZE staff to fill the position of Senior
Citizens Supervisor.
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht. Marshall: Roncelli and Kovacic
None
None
Councilmember Harbicht requested that staff place the matter of the hiring freeze on a
future agenda, Mayor Pro tem Chandler and Mayor Kovacic concurred.
16d.
POSITION Consideration of revising and re-titling the position of Inspection Services Manager to
aASSIF1CAllO'J Building Official in order to meet a new state requirement
(Re-trt1e to
Building OfIiciaQ
(APPROVED)
O;';,c, '.)" If!:)
KOVACIC
Qn memory of
Edith
Anderson)
MARSHALL
(In memory of
Patricia
McAdam)
Due to the announced retirement of the City's Inspection Services Manager. who under
"grandfather" provisions was exempt from the state ceriification requirement for Building
Officials, the City is now required to meet the new requirement. Specifically, the,slate
requires that the Building Official for the City hold or obtain within one year of
appointment the certificate as a Building Official from either the International Conference
of Building Officials or the California Association of Building Officials.
It was MOVED by Councilmember Harbicht, seconded by Mayor Pro tem Chandler and I
CARRIED on a roll call vote as follows to APPROVE changes to re-title and revise the
classification of Inspection Services Manager to that of Building Official.
AYES:
NOES:
ABSENT:
'Councilmembers Chandler. Harbicht, Marshall. Roncelli and Kovacic
None
None
Mayor Kovacic announced that the meeting would be adjourned in memory of Edith
Anderson commenting that, "In addition to being the mother of a good friend of mine,
Carl Anderson. Edith Anderson was also a resident of Arcadia for over 35 years, and with
her husband, a local business owner for 30 years. Edith was active in the Arcadia
Business Association, the Chamber of Commerce and the Methodist Hospital Auxiliary
where she served several times as president. Edith leaves behind her husband, her son
Carl, daughters Georgianne Charlton and Deidre Davis and four grandchildren.. Our
deepesl condolences to Carl and the entire Anderson family."
Councilmember Marshall adjoumed in memory of Patricia McAdam slating that, "Pat
McAdam is a fourth-generation Californian, a former Arcadian, and a former Arcadia
Library reference librarian. In collaboration with Sandy Snider, Pat wrote "Arcadia:
Where Ranch and City Meet", a pictorial history of the City and the San Gabriel Valley
published in 1981. Pat graduated from Stanford University in 1945 and retumed to
school in 1964-65 to obtain a maslers degree in Library Science at Immaculate Heart
College. She worked at the Arcadia Library from September 1974 through May 1982.
Pat and her husband, Don, lived in Arcadia from 1951 to 1982 when they retired to
Mendocino County. Pat is survived by her husband, and sons. David, Doug, Paul and
Bruce:
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HARBICHT
(In memory of
Robert Stanley
Sea res)
40:0180
Councilmember Harbicht adjourned in memory of Robert Stanley Sea res stating that,
.On June 15 Arcadia lost a good friend and former Police Chief Bob Seares. Bob began
his long and distinguished career in law enforcement in Pasadena in 1932. After moving
up in the ranks in the Pasadena Police Department he enlisted in the U.S. Army in 1943,
where he rose to the rank of Lieutenant while serving in the southwest Pacific Area. Bob
returned to the United States after serving in World War II and re-entered iaw
enforcement as an assistant to the chief of police at Pasadena Police Department. In..
1954, he became the chief of police for the City of San Marino. and four years later he
was appointed as the Arcadia Chief of Police. He was a very active police chief; he was
instrumental in the formation of the state commission called POST (Peace Officers
Standards and Training). He was a member of the California Peace Officers
Association. the Los Angeles County Peace Officers Association. the San Gabriel Valley
Police Officers Association, and the International Association of Chiefs of Police. He
attended the FBI National Academy and served as a member of the advisory board to
the California Council on Criminal Justice. Bob retired from the Arcadia Police
Department in December 1973, and retained close ties with the department ever since.
Chief Seares is survived by his wife. Harriet, his four children and five grandchildren.
We offer our sincere condolences to the family."
ADJOJRNMENT At 9:08 p.m. the City Council RECESSED to a Closed Session to discuss Agenda Items
2a and b. The City Council RECONVENED the Regular Meeting a"t 9:30 p.m. and
ADJOURNED to 6:00 p.m.. Tuesday, July 21. 1998 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.
ATTEST:
13
7/7/98
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TRANSCRIPT
(Insofar as decipherable)
-
RELATING TO
A REGULAR CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING
JULY 7,1998
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AGENDA ITEM NO. 14a. STATUS REPORT REGARDING
REDEVELOPMENT AGENCY FINANCES
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ARCADIA CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING JULY 7, 1998
STATUS REPORT REGARDING REDEVELOPMENT AGENCY FINANCES
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Agency Chairperson Gary Kovacic:
The first item is 14a.. Status Report Regarding Redevelopment Agency Finances, Mr. Kelly.
City Manager William Kelly:
Chairperson and Board Members. at your request staff has prepared a report conceming the
issues of the Agency's funding, how it is staffed and where the dollars are going. Mr. Penman
will make the staff presentation on this report, Mr. Penman.
Assistant Executive Director. Redevelopment Agency Don Penman:
Chairman Kovacic, Members of the Board, as you will recall there was a considerable amount of
discussion during the budget process regarding the Arcadia Redevelopment Agency finances.
and as a result of that discussion staff was directed to bring back some additional information to
the Board for separate discussion.
The Redevelopment Agency is financed with property tax increment money that is
generated within the project areas. Over the past several years the flow of tax increment to the
Agency has fluctuated significantly. This has been caused a number of factors. For example, in
the last six (6) years there have been 191 tax appeals from property owners in the project area.
many of which have resulted in lower assessments. I believe, totaling about $55,000,000,
resulting in lower tax increment. Additionally, because of the difficult economic times that have
been experienced there have been a number of delinquent payments. and sometimes those are
paid back several years later. And, finally, as you know, when the State was going through some
difficult economic times the State took away property tax money, not just from the City but also
the Redevelopment Agency. As a consequence of those activities it has been fairly difficult to
make projections on tax increment each fiscal year because the increment flow has changed
significantly. However, in the past couple of years the Agency is starting to benefit from this
improved economic cycle. Although we still estimate conservatively, the flow has exceeded our
expectations. We have received more tax increment than what we have actually budgeted, and
consequently, as of June 30, 1998 the Agency has an estimated cash balance of $1.2 million.
This is basically as a result of the improved economy, the property tax appeal period basically is
over with, and we have also experienced lower expenditures in the Agency budget.
The Agency bu.dget itself f<<;lr Fiscal Year 1998-1999, which you just recently adopted, is
about $4.4 million. This includes about $2:4 miflion'in:debt repayment to the City; including the
$2,000,000 that we anticipate receiving from the sale of the Northwest properties; also includes
$485,000 in housing set aside funds which is a State requirement that the Agency set aside
twenty (20%) percent of its tax increment for housing purposes; there is bond debt service of
$320,000; and the Agency Operations Budget is about $783,000. Within that $783,000,
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$192,000 goes to pay City overhead basically for utilities. the building, overhead for the staff.
'and finance personnel for running the Agency. There is also $192,000 that goes into the General
Liability Insurance Fund to repay that fund for expenses that were incurred. primarily, as a result
of the Downtown project. There is $294,000 in staff selVices which represents about, I think it's
3.3 staff persons. There is also monies in the budget for the Commercial Facade Program. for
Banner Program, for the Downtown Parking Lots and a number of other items.
The Agency debt as of June 30th was, or is $6.6 million. As I mentioned. with the sale of
the Northwest Corner property we should reduce that debt by $2 million. Additionally, the
Agency has budgeted $400,000 to help repay debt to the City which would include both principal
and interest. The Agency currently is paying interest on the outstanding debt and an additional
amount based on a schedule, repayment schedule previously approved by the City Council that
will eventually lead to the retirement of that debt. As I said a few moments ago, the Agency has
a cash balance of about $1.2 million as of June 30th and. assuming revenues and expenditures
are exactly as we projected, which will not of course be the case. but assuming that they came in
at budget. we would have a balance. a cash balance at the end of this fiscal year of about $1.4
million.
So the question that needs to be directed to the Board is what we should do with those
funds. Essentially there are a couple of alternatives that we believe you might wish to consider.
First, is to hold the money in reselVe for potential projects, or to utilize all or portion to repay
debt, and of course. you could do a combination of the two. However, prior to making any final
decision on what to do with that $1.2 million staff would like to recommend that a study session
be held with the Board where we could sit down and actually discuss the Agency strategy, what
projects you may wish to consider, what things are on the horizon. so that you can help layout a
strategy. This was done a couple of years ago. We now have a new Board with three new
members and we think it would be an appropriate session where we could actually sit down and
talk about some of the projects that are pending. We have two projects now where we do not
know if there is going to be any financial assistance necessary. including with the Folger Ford
and Arcadia Lumber site. There are other opportunities out there if the Agency Board would like
to consider those. There is possibilities for expansion of the project here. There is a whole
number of things where we need to seek some direction from the Board. So we are suggesting
that before any final decisions are made about how to deal with that $1.2 million we would like to '
recommend a study session be held. That concludes my remarks. I will be happy to respond to
any questions.
Chairperson Kovacic:
Thank you Mr. Penman. Any questions? Mr. Roncelli.
Agency Member Gino Roncelli:
Yes, Mr. Penman. A couple of questions. You mentioned that there was a number of pieces of
property within the Redevelopment area that have actually asked for their taxes to be lowered,
the property is worth less now?
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Mr. Penman:
Yes.
Agency Member Roncelli:
Now this is an area, the Redevelopment area, we've spent millions and millions of dollars and
the property values are going down?
Mr. Penman:
Well, I think that is something that is occurring everywhere, but it's a. but has resulted in lower
property taxes for all taxing agencies. I'm simply trying to point out that within the project area
there were 191 appeals, ,many of which were successful and that resulted in lower property tax
payments by the property owners. It didn't occur just in the Agency. it has occurred all over
Califomia as a result of the recession. But it did result in lower taxes that the Agency received.
Agency Member Roncelli:
I mean, I would assume that if we spent a lot of money in redeveloping an area that that would
bring up the land values, and it just has done the opposite. it looks like.
Mr. Penman:
Well, actually I think that that's really they're not related. quite frankly. For example. in the last
community I worked, if you had a $20 million facility one could almost guarantee that those
property owners were going to submit a property tax appeal to the county; and it wasn.t even a
redevelopment, because their land was worth less as a result of the economy. I think generally
people say probably their properties are worth twenty to twenty-five (20-25%) percent less than
they were maybe in the late 80's. So that's occurred everywhere. It's just that the consequence
for the Agency has been that lower property tax increment, as it has been for all taxing agencies.
And that's made it difficult for us to make projections. I think what we're saying is we're kind of
through that cycle. I guess what I am saying is simply, they're unrelated; it has had an impact.
Agency Member Roncelli:
Can you tell me about the facade work that's... what is in the budget this year? I didn'llook it up.
Mr. Penman:
We have $240,000 budgeted for that program this year.
Agency Member Roncelli:
How much, how much of that work is being done on buildings that do not tum back revenue to
our City in the way of sales tax? How many of those properties...
Mr. Penman:
So you mean, for example, service businesses as opposed to retail...
Agency Member Roncelli:
Right.
Mr. Penman:
Well, for example, we have ten projects funded to date totaling $130,000... just a' quick look
here... it looks like, perhaps, about half of them might have been either for, the landlord, which
could be a combination of service as well as retail. We had some, for example, Rumors Bar and
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Grill. Mid-City Sandwich Shop... we had Western Medical Supply, which is one of our larger
sales tax generators. but it's not a retail business in traditional sense. Sullivan's Paints, then we
had Hobson Saddlery. Arcadia Tribune Building... so, it looks like maybe two-thirds were sales
tax generating. We have nine (9) being processed today, representing another $146,000. It
looks like, again, about two-thirds are retail. about one-third, maybe are service businesses that
wouldn't generate sales tax.
Agency Member Roncelli:
Have any of the property owners participated in helping refurbish their buildings, or have we
done it all for them?
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Mr. Penman:
No, it is a program where there is a fair-share and there is a sliding scale... the more they, the
more they request, the smaller percentage the Agency pays.
Agency Member Roncelli:
Can you give us a for instance on a $20,000 job, how much the...
Mr. Penman:
I think in the $20.000 job the Agency pays the majority of the money. Unfortunately I don't have
the exact sliding scale in front of me. I don't know the exact number. The more they ask for the
less... the more the project expense is the less they receive from the Agency, I believe is how
the program works. So it's a sliding scale. I
Agency Member Roncelli:
Like on a $10,000, then what?
Mr. Penman:
We, I believe, we would pay the vast majority of that. But again, I could provide you a copy of
the fonnula, I just don't have it in front of me.
Agency Member Roncelli:
Okay.
Chainnan Kovacic:
Mr. Harbicht.
Agency Member Robert Harbicht:
Yes, Don, a question I had here... this thing about properties being reassessed on appeal and I
know that this is happening all over the State. In fact I have had property that I own reassessed
on appeal, which I unfortunately bought in about 1990, it's now worth significantly less than I paid
for it, this particular piece of property happens to be in the city of Monrovia, but... I had a
question on that... On Prop 13 limits increases and assessments to one percent (1 %) a year?
Mr. Penman:
Correct.
Agency Member Harbicht:
On most 'property. Okay. Let's say that someone has a piece of property that was assessed at
$250,000 and they go back and they appeal and it's reassessed at $150.000 and so their
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property taxes are adjusted. Now. we go back into an inflationary spiral and that property. after a
few years, is back up to worth $250,000. Are they only gomg up one percent (1 %) a year on the
$150.000?
Mr. Penman:
Or actually, it's two percent (2%).
Agency Member Harbicht:
It's at two percent (2%). Well, whatever it is. Two percent (2%)?
Mr. Penman:
Yes, I believe that's the case.
Agency Member Harbicht:
So it would take.a long, long time to get back up to the real value of that prop~rty? So they can
knock off $100,000 in one fell swoop. but it would take. it's a compounded thing, but probably
thirty-eight years to get back to what it was?
Mr. Penman:
Something, yes. That's my understanding. We can confirm that with the assessor. I don't know
Jim if...
Agency Member Harbicht:
Well it's an important thing for us to understand because we're going to see. particularly in the
Redevelopment area, I feel we're going to see that kind of turn around... that we've watched for
eight years as property values have slid and now they're leveling off. For example. one. of the
things that was real hot in that area in the late 80's was office building. you couldn't give away an
office building for the last several years. But now, all of the sudden, we're getting people talking
about office buildings, and talking about significant investment in office buildings. Which makes
that dirt much more valuable than it was just a year or two ago, and is going, I think is going to
continue up. And so, if we have the opportunity to recapture that tax increment, in other words, if
it can be reassessed back up to that original value in two or three years, as opposed to two
percent (2%) a year, that has a significant impact on what kind of income the Agency's looking
at. Because we're looking here at the figures you gave us, $55 million in reductions in value
which translates to $550,000 a year in tax increment to the Agency that we've lost and are losing
every year. So, I think that's a question that we....
Mr. Penman:
Yes, I think we're going to have to pose that to the County Assessor.
Agency Member Harbicht:
..:s~ould get the answers to because that would have an impact on any study that we do because
it's going impact the projections.
The other question that I had here is you show personnel. 3.3 staff, expenditure $294,000 by the
Agency. That also includes the payment of portions of the salary of certain City employees, is
that correct?
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Mr. Penman:
No. what that includes is Mr. Kinnahan, Mr. Connors, seventy percent (70%) of my time. and a
percentage of Robin Lugar's time, who's the secretary, The time...
Agency Member Harbicht:
That's what I'm referring to is paying seventy percent (70%) of your salary..,
Mr. Penman:
Correct.
Agency Member Harbicht:
...and a portion of the secretary's salary...
Mr. Penman:
Correct.
Agency Member Harbicht:
...and so. some of that. some of those Redevelopment funds, they're compensating for the time
that you spend on Redevelopment, but they're also helping to pay your salary and the salary of
other people who are doing other things for the City.
Mr. Penman:
Yes, exactly. I think, obviously. you know we need to be careful how we operate the Agency, but
on the other hand, when I'm working on the Santa Anita Project or the Live Oak area or other
areas, and general Economic Development activities. seventy percent (70%) of my salary is still
provided by the Agency, so I think there is some City benefit. some spillover by the Agency's,
essentially, funding the Economic Development program for the Community.
Agency Member Harbicht:
Yes, weill am sure that we're scrupulous in our allocation of time, but I think that it's important to
understand that. That there's some benefits occurring to the City simply from that part of it.
Mr. Penman:
Uhm huh.
Agency Member Harbicht:
That's all the questions I have.
Chairperson Kovacic:
Okay, any other questions? Mr. Chandler.
Agency Member Chandler:
Mr. Penman, the $1.2 million is interest earning as we speak, correct?
Mr. Penman:
Yes.
Agency Member Chandler:
Okay. If it were to be repaid back to the City, it would, auditing regulations would then dictate it
would either go back to the Equipment Replacement Fund or the Capital Improvement Fund,
right?
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Mr. Penman:
Correct.
Agency Member Chandler:
One of those two. And those two funds, as they exist, are earning interest as well, correct?
Mr. Penman:
Yes.
Agency Member Chandler:
Is the interest earned currently from the Redevelopment Fund the same as being earned from
the Equipment Replacement Fund and the Capital Improvement Fund?
Mr. Penman:
Yes, because we pool our money.
Agency Member Chandler:
Right. All right. well, you know, I for one. don't need a study session to figure out that the money
should stay there in the Redevelopment Fund and be at the ready to do any projects, which is
what Redevelopment is all about, about improving the overall commerce of our City when it's
earning the same interest. So I mean. I, I for one, just let you know I don't need a study session
to figure out how I want to go with that money. We're not losing money by leaving it there,
correct?
Mr. Penman:
That's correct.
Chairperson Kovacic:
Any other questions? Mr. Penman. you use an example when you're talking about tax increment
of a, let's see if I've got this right. You have a $10.000 property tax bill before it's in the project
area, after it's in the project area it's $10,200. The City, under redevelopment law, gets to keep
lhe increment, the $200; one-hundred percent (100%) of that amount, is that correct?
Mr. Penman:
The Agency does.
Chairperson Kovacic:
The Agency, is that correct?
Mr. Penman:
Yes.
Chairperson Kovacic:
Okay, now if that was not in a Redevelopment Project area, and a property went from $10,000 to
$10,200. how much would the City keep?
Mr. Penman:
Of the $200, the City would get $18.
Chairperson Kovacic:
Okay.
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Mr. Penman:
The City gets. the City's share of one percent (1%) is about nine and one-half percent (9 112%),
so it would be $19 of the $200 the City would get. rather.than the $200.
Chairperson Kovacic:
Now, critics of redevelopment say that there's also some money that goes to the School District
that is now being deferred to the Redevelopment Agency. But it's safe to say that under no_
scenario does the City and or the School District get the total $200 that it only gets if it's in a
Redevelopment Project area. is that correct?
Mr. Penman:
Right.
Chairperson Kovacic:
Now, you mention that, or you suggest that. and correct me if I'm wrong. at the present time the
Redevelopment Agency no longer has the power of eminent domain,
Mr. Penman:
As of June 30th it ended.
Chairperson Kovacic:
Okay: So, unless. unless we change the rules on, on that the money would not be used for
acquisition of property or assemblage of parcels or anything like that?
Mr. Penman:
Unless it was a friendly acquisition.
Chairperson Kovacic:
Right, okay. But then you mention some, some possible development sites in town. I think we
all know what the popular vacant sites are. Absent the use of eminent domain. how would
Redevelopment Funds be used to, to promote development? Are you talking about right-downs,
and things like that?
Mr. Penman:
Yes, it could be right-downs, it could be paying for fees, it could be paying for public
improvements; a combination of those things, a loan towards purchase that would be repaid.
There are some tools available that could still be used.
Chairperson Kovacic:
Now if there was no Redevelopment Agency. could the City do that under some other
mechanism?
Mr. Penman:
The only program the City can, can reasonably offer is a fee program to pay, help assist with .the
fees that a developer would pay, normally pay to the City for building and planning types of
activities. But other than that, the City couldn1 right-down the land.
Chairperson Kovacic:
The City couldn1 just give a developer a grant in order to encourage him to come to Arcadia
instead of Monrovia or Pasadena?
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Mr. Penman:
The City could not do that. no.
Chairperson Kovacic:
But the Redevelopment Agency can, if they so choose?
Mr. Penman:
Right.
Chairperson Kovacic:
Okay. Any other questions? Okay, what's... Mr. Roncelli?
Agency Member Roncelli:
At this present time, how much property... since we're coming up with a finish of the sale soon...
how much property. after that sale is over, does the Agency own?
Mr. Penman:
I believe the Agency won1 own any of their land. The only other piece that's publicly owned in
that area is the parking lot, and that was sold, I believe. to the Transportation Fund related to the
Rail Project. So the Agency does not own any other land in the Project area.
Agency Member Roncelli:
So right at this moment we don't own any land. and we don't have any projects that we, that
someone has asked us to. for funds?
Mr. Penman:
Well, it is a technicality. Technically. we still own the Northwest property. It's supposed to close
escrow this summer, but after that's sold we wouldn't, correct. have any additional land, and we
don't have anyone that specifically requested assistance. Though we are in some discussions
with a couple. but they haven't requested anything yet.
Agency Member Roncelli:
It seemed if I owned some property. I would want the Redevelopment Agency to be there at my
side because it would make my property, maybe, worth a little bit more because I could get the
City to help me sell this and come up with the difference between what the buyer wanted to buy it
for and what I wanted sell it for.
Mr. Penman:
That's a valid question. It comes up often. One of the things the Agency has to do is a reuse
appraisal. There's always that fine line, quite frankly, of where the Agency comes in, is the
Agency assistance really necessary to make the deal work. The laws have tightened quite a bit
because, overall, not saying Arcadia overall, there has been abuses in that regard. B~t we are
required' to' do reuse appraisals, to justify any assistance that may be necessary before the
Agency can provide that.
Chairperson Kovacic:
Mr. Harbicht.
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Agency Member Harbicht:
I think it's Important to recognize that when the Redevelopment Agency gets involved in a
project, either in acquiring land and bundling it and selling it to a developer, or even cooperating
with a private seller. that it's not necessarily a benefit to the seller to have us involved; because
we often times will dictate a use there which may not be the use that would, that would draw the
highest price for the property. Because it's a use that's more desirable to us, either because i~
fits with what we want in that area. An example would be the Outback Steakhouse, that could
have sold to say, McDonald's for much more than it sold to Outback. But, it was the decision of
the Agency it didn't want a McDonald's in the downtown area. that Outback fit better with what,
what they want. The second thing, the other... so often times if someone is selling a piece of
property, the Agency would get involved because we'd say we don't want you to sell it for this
particular use; we want you to sell it for other use that has some advantage to us and we'll make
up the difference to you, So we get the desirable development and we eventually get the money
back through the tax increment. So, it's not that the Agency would just go In to anybody who
wants to sell a piece of property in the Redevelopment area that we would go in and say well
we'll throw in $300,000 to make the deal happen. Sometimes, usually we're asking for
something in return for that: a certain type of development. certain standard of development, that
kind of thing. So, it's not. it's not, an unfettered advantage to have us involved.
Chairperson Kovacic:
Okay, any other questions? Thank you Mr. Penman. What's the, what's the Council's pleasure
on this? Mr. Kelly did you have something did you have something to add?
City Manager Kelly:
Yes, Mayor and Council if you do desire to have a study session staff would suggest August 19th
at 5:00 p.m. That would give us time to get reports ready for you, and give us time prior to a
Council meeting to at least start discussions of what your priorities are for Agency activities.
Chairperson Kovacic:
All right, I think Mr. Chandler's point was that if the only issue is whether we keep the money in
this account or that account and the interest rate's about the same, what's lhe big deal? I kind of
see the issue as being a bit more expansive than that. At least what's suggested by the staff
report is that the Redevelopment Agency has some potential, but the Agency doesn~ know which
direction to go without some direction from the new Council. And I've always felt that while, I've,
as I've said in the past, I've seen plenty of redevelopment abuse in Southem Califomia, I haven't
seen any in Arcadia. On quite the contrary, I've seen a rather morbund Redevelopm~nt Agency,
and occasionally I'd like them to be more, more aggressive in their redevelopment efforts. 'But, '"
personally would like to, to have an opportunity to discuss where as, where we as a Council think
the Redevelopment Agency ought to be going, and whether we say no we ,don~ want you to
aggressively court suitors and try to bring them into town, or just be reactive instead of proactive.
I think those are policy decisions the Council, or I'm sorry, the Redevelopment Agency Board has
to...
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Agency Member Roncelli.
Is that a motion?
Chairperson Kovacic:
Mr. Harbicht.
Agency Member Harbicht:
May J ask a question of Mr. Penman? Are you saying that you don't feel you have direction,
now, or you have direction but you don't know if this, the Council as is currently constituted
agrees with that direction?
Mr. Penman:
Well, I think that it's, its probably with the new Council that it would be good to reaffirm some of
the activities that we've been involved in. There's also some new areas that we would like to
explore with the Council. Perhaps an amendment. We have to look at the eminent domain
issue, There's some properties. not under City ownership, where we've received just sort of
informal inquiries about whether the Agency might be interested in getting involved. So I think
there's some new areas, plus its sort of reaffirming some of the things we've been involved in the
past.
Agency Member Harbicht:
Because you, at present time. there's a hierarchy of sites that the Council prioritized for the
Agency that we wanted addressed.
Mr. Penman:
Um huh.
Agency Member Harbicht:
And, are you suggesting that maybe staff would suggest we reprioritize those. or do you just want
this Council to confirm that direction is still the right direction?
Mr. Penman:
I think primarily just to affirm that direction, but there are a couple of new areas we feel we would
like to explore with you. One of which is a project amendment, which we think you may want to
consider, uhm, you know, in another part of the community. And then again there's a couple
new things that have come up that we think, before we get too far down the road, we think the
Board needs to take a look at those with us and give us some direction.
Agency Member Harbicht:
I guess if there are new things, then it makes sense to meet. If, if it's just a reaffirmation, I think
you could just simply issue the, the priority ,list to everybody on the Council, and if somebody
wants to'change something, but why meet if we d,on1 want to. change. But if there are new things
that you want to talk about with the Agency, and get direction from the Agency" then it does
make sense to meet.
Chairperson Kovacic:
Okay, is that a motion?
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Agency Member Harbicht:
What? No, I'm just making a comment.
Chairperson Kovacic:
To have everything make sense to you,
Agency Member Roncelli:
Uhm, no to have a study session.
Chairperson Kovacic:
I'll make that motion. I move that we have a study session.
Agency Member Roncelli:
I will second that.
Chairperson Kovacic:
Okay. it's been moved by Kovacic. seconded by Roncelli, any discussion?
Agency Member Harbicht:
What was the date again. or were we going to coordinate a date?
Chairperson Kovacic:
I think we're going to coordinate a date. Is staff ready to proceed on this. or not?
City Manager Kelly:
We're suggesting the middle of August, I mean we have...
Mr. Penman:
It would be prior to a Council meeting so that we would...
Chairperson Kovacic:
Okay. Okay, roll call please.
City Clerk June Alford:
Member Chandler?
Agency Member Chandler:
I've made my opinion clear. However, I'm not going to be cantankerous, and so I'll vote, yes.
City Clerk Alford:
Harbicht?
Agency Member Harbicht:
Yes.
City Clerk Alford:
Marshall?
Agency Member Marshall:
Yes.
City Clerk Alford:
Roncelli?
Agency Member Roncelli:
Yes.
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City Clerk Alford:
Kovacic?
Chairman Kovacic:
Yes. Okay, I will adjourn the Redevelopment Agency to July... Mr. Roncelli?
Agency Member Roncelli:
We still haven't discussed the idea that we had. what they called at that time. a windfall 01
$350,000 amount of money coming into the Development Agency, and we talked about returning
that to the City. Do we make that decision after this meeting. or...
Chairman Kovacic:
I think that money was, was part of this staff report and is part of the. the cash balance they're
talking about. so I would say that's an issue that can be discussed during this study session,
Agency Member Roncelli:
Great. Thank you.
Chairman Kovacic:
I don't think there's an additional $300,000 floating around other than what's in that memo.
Agency Member Roncelli:
No.
Chairman Kovacic:
Okay. I will adjoum the Redevelopment Agency to July 21,1998 at 6:00 p.m. and reconvene the
City Council.
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