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Home My WebLink AboutOctober 1, 1996:%t � O A G E N N T T TY D A w ❑ ❑❑ Arcadia City Council and °AP °x.TB Redevelopment Agency Meeting October 1, 1996 7:00 p. m. Arcadia Council Chambers INVOCATION Rev. Thomas Shriver, Emmanuel Assembly of God ACTION PLEDGE OF ALLEGIANCE Acting City Attorney, Michael Karger ROLL CALL Council Members Chang, Harbicht, Kovacic, Young and Kuhn All present 1. SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA.ITEMS Nov. 13 Council study session re.development stratedgy - 7 p.m. Oct. 29 Council mtg. with Sierra Madre Council canceled. MOTION Read Ordinances and Resolutions by title only and waive Adopted 5 -0 reading in full. 2. TIME RESERVED FOR THOSE IN THE AUDIENCE WHO WISH TO M. Spencer ADDRESS THE CITY COUNCIL. G. Roncelli (NON- PUBLIC HEARING FIVE - MINUTE TIME LIMIT PER PERSON) C. D. 'John Hinig 3. PUBLIC HEARING D. Krynicki a. Report and recommendation to adopt Resolutions 5952 and Public hearing 5953 setting forth planning and building processing and closed permit fees. Resolution No. 5952 - A resolution of the City Council -of the Adopted 5 -0 City of Arcadia, California, setting forth fees relating to building code appeals, fire code appeals, handicap board appeals, building permits, plan,review fees, grading plan review, grading permits, plumbing permits, plumbing plan reviews, electrical permits, electrical plan reviews, mechanical permits, mechanical plan reviews, relocation and removal permits, demolition permits, reroofing permits, sign permits, swimming pool permits and fire extinguishing permits and repealing' Resolution No. 5683 in its entirety. :4 0 0 Resolution NO. 5953 - A resolution of the City Council of the City of Arcadia, California, setting forth fees relating to filing fees, extension fees and appeal fees for General Plan amendments, Text Amendments, Zone Changes, Variances /Conditional. Use permits, Tentative Maps, Tentative Parcel Maps, Parcel Map Waivers, Administrative Modifications, Modifications, R -2 and R -3 Modifications, Home Occupation Permits and Covenants and Repealing Resolution No. 5682 in its entirety. 4. MATTERS FROM ELECTED OFFICIALS City Council Reports/ Announcements /Statements /Future Items 5. CITY CLERK a. Report and recommendation to appropriate $1,100 from the General Fund for reproduction of 300 copies of the 1996 Amended City Charter. 6. MEETING OF THE ARCADIA REDEVELOPMENT AGENCY AND CITY COUNCIL ACTION Reso. referred baco staff for changes in fee structure as pre - sented,by Council. Continued to Nov. 5, 1996 mtg. See minutes Approved 5 -0 ROLL CALL: Agency Members Chang, Harbicht, Kovacic, Young and Kuhn All present a. Minutes of the Redevelopment Agency meeting of September 17, 1996. b. Report and recommendation to amend the Arcadia Redevelopment Agency budget for FY 1996 -97 by increasing annual loan payments made to the City of Arcadia from $300,000 to $400,000 and budgeting the same amount in FY 1997 -98 and annually thereafter; and to adopt Agency Resolution No. 178, A Resolution of the Arcadia Redevelop- ment Agency of the City of Arcadia, California, adopting a "Low and Moderate Income Housing Fund Deficit Financing Plan ". C. Report and recommendation to appropriate Proposition A (Transit) funds and approve certain actions affecting the mass transit station project site at the southwest corner of First Avenue and St. Joseph Street. 2 Approved 4 -0 Harbicht abstained Adopt ARA Reso. No. 178, 5 -0 .1�6 0 0 ACTION (A) City: Purchase property owned by the Catellus Approved 5 -0 Development Corporation. (B) City: Purchase property owned by the Arcadia Approved 5 -0 Redevelopment Agency. (C) City: Reimburse the City Gas Tax Fund for Approved 5 -0 previous property acquisition costs. (D) Agency: Sell Agency -owned property to the City ADJOURN REDEVELOPMENT AGENCY to October 15, 1996 @ 7:00 p. m. 7. CONSENT ITEMS a. Minutes of the regular meeting of September 17, 1996. Approved 5 -0 Approved 4 -0 Harbicht abstains b. Report and Recommendation to adopt Resolution No. 5949 - Adopted 5 -0 A Resolution of the City Council of the City of Arcadia, California, declaring its intention to annex certain parcels into the Arcadia Consolidated Lighting District (Annexation No. 16) and setting a time for a public hearing. C. Report and recommendation to award a bid to Sam Yocum, Inc., Approved 5 -0 in the amount of $22,162 for the purchase of office furniture for the Community Development Division. d. Report and recommendation to adopt Resolution No. 5950 - Adopted 5 -0 A Resolution of the City Council of the City of Arcadia, California, amending Section 1 of Resolution No. 5848 by authorizing the Fire Captain assigned to Emergency Services, Fire Chief and City Manager to file with the Office of Emergency Services for the purpose of obtaining certain federal financial assistance under the Natural Disaster Assistance Act. e. Report and recommendation to adopt Resolution No. 5951 - Adopted 5 -0 A Resolution of the City Council of the City of Arcadia, California, Mayor Pro tem amending Resolution No. 5919 designating an Arcadia City Harbicht Council Member as the Alternate Member to the Governing Board of the San Gabriel Valley Council of Governments. 3 ACTION 8. CITY MANAGER Approved 3 -2 to a. Consideration of appointment to and membership of direct staff to the Planning Commission. prepare ordinance reducing cu rent members to & to b. Consideration of nominations for Water Quality Authority 5 on nraa Y Y Nom;.,�ro.� Board Members. Mayor Pro tem Harbicht p5-0pp. 9. CITY ATTORNEY resoffor 10-f5-96 mtg. a. Recommendation to adopt Resolution No. 5948 - Adopted 5 -0 A Resolution of the City Council of the City of Arcadia, California, specifying the order of business for City Council meetings. ADJOURN City Council to October 15,1996 @ 7:00 p. m. at 9:12 p.m. 12 �� °'�°�_•° STAFF REPORT OFFICE OF THE CITY MANAGER DATE: OCTOBER 1, 1996 TO: MAYOR AND MEMBERS OF THE CITY CO NCIL FROM: WILLIAM R. KELLY, CITY MANAGER_ BY: LINDA GARCIA, ADMINISTRATIVE COORDINATOR SUBJECT: CONSIDERATION OF NOMINATION FOR WATER QUALITY AUTHORITY BOARD SUMMARY The term of the board member representing cities with pumping rights on the San Gabriel Basin Water Quality Authority ('WQA ") will expire on January 1, 1997. The process to fill this seat on the Board requires City Councils to nominate candidates by a resolution which must be delivered to WQA headquarters by 5:00p.m October 18, 1996. It is recommended that the City Council review this report and make a determination as to whether or not you would like to nominate someone to run for this seat. DISCUSSION The WQA was established by the State Legislature on February 11, 1993 to develop, finance and implement groundwater treatment programs in the San Gabriel Valley. The Authority is under the direction and leadership of a five - member Board, with one member from each of three overlying municipal water districts, one from a city with water pumping rights and one from a city without water pumping rights. The term of the board member representing cities with pumping rights expires on January 1, 1997. The election process begins with nominations (via resolution) by each of the cities with pumping rights. Each city may nominate only one candidate and the nominations are due at WQA headquarters by 5:00p.m. October 18, 1996. A city is not limited to nominating its own Council Members and may vote in the election regardless of whether or not it nominated a candidate. After nominations are collected, a list of candidates will be sent to voting cities by November 2, 1996. Ballots will have to be cast by resolution and an election will take place on December 17, 1996 at 5:00p.m. at WQA headquarters. LASER IINIAGED C. /�7. Si, Nomination for Water Quality Authority Board October 1, 1996 Page 2 M Council Members from the following cities are eligible to run: Alhambra, Arcadia, Azusa, Covina, El Monte, Glendora, Industry, Irwindale, Monterey Park, Monrovia, South Pasadena and Whittier. We have been advised that the incumbent, Larry Glenn, intends to seek re- election. As additional background, on September 5, 1996, the City Council was given a copy of the Call for Nominations, the Procedures for Calling and Conducting Elections, and the WQA's enabling legislation. RECOMMENDATION It is recommended that the City Council review this report and determine whether or not to nominate a candidate to run for election to the Board of the San Gabriel Basin Water Quality Authority. If the Council chooses to make a nomination, staff should be directed to prepare the appropriate resolution for adoption at the October 15, 1996 City Council meeting. e � *490, lr� +' ° °, ►oe�tsa' °' STAFF REPORT ADMINISTRATIVE SERVICES DEPARTMENT DATE: October 1, 1996 TO: Mayor and City Council FROM: Donna Butler, Community Development Administrato James S. Dale, Administrative Services Director 40— Prepared by: Tracey L.H. Williams, Purchasing Officer SUBJECT: Report and Recommendation for Authorization to Enter into a Contract with Sam Yocum Inc., in the Amount of $22,162.56 for the Purchase of Office Furniture SUMMARY It is recommended that the City Council award a contract for the purchase of office furniture to Sam Yocum Inc., in the amount of $22,162.56. Funds were budgeted in the Equipment Fund in Fiscal Year 1995 -96, for furniture, painting of cabinets and files and carpeting and have been carried over to 1996 -97 for these acquisition. DISCUSSION The furniture acquisition is to replace older furniture. The furniture which is being replaced is in excess of 20 years of age and is beyond repair. The replacement furniture will allow Development Services to match the existing new furniture ordered in FY 1995 -96. Bid 9697 -19 was mailed to eleven (11) vendors. There were three (3) responses which were publicly opened. Bid results including sales tax were: Sam Yocum Inc., San Gabriel Vertex Business Interiors, Tustin, CA Pacific Business Interiors, Los Angeles, CA $22,162.56 $22,808.43 $23,422.42 LASER !IMAGED Cdr 7..c %W 1%0 Mayor and City Council October 1, 1996 FUNDING Funds for the purchase of office furniture are budgeted in the Equipment Fund budget in Fiscal Year 1996 -97. RECOMMENDATION It is recommended by staff that the City Council award a contract for the purchase of office furniture to Sam Yocum Inc., in the amount of $22,162.56, and authorize the City Manager to execute said contract in a form approved by the City Attorney. Approved by: William R. Kelly City Manager JSD:DB:THW:mlp N NOTICE TO BIDDERS NEW FURNITURE FOR THE PLANNING, BUILDING AND CODE SERVICES DEPARTMENTS BID 9697 -19 NOTICE IS HEREBY GIVEN that the City of Arcadia, California will receive bids for the purchase of NEW FURNITURE FOR THE PLANNING, BUILDING AND CODES SERVICES DEPARTMENTS as specified in accordance with the contract documents. Bids will be accepted in the Purchasing Office, City Hall, up to the hour of 2:00 P.M., September 16, 1996, at which time and place they will be publicly opened. All bids must be on forms furnished by the City, sealed and clearly marked, "NEW FURNITURE FOR THE PLANNING, BUILDING AND CODE SERVICES DEPARTMENTS, Bid 9697 -19, to be opened at 2:00 P.M., September 16, 1996." Copies of the bid forms and specification documents may be obtained in the Purchasing Office, City Hall, 240 W. Huntington Drive, Arcadia, California. Said specifications, bid forms and contract documents are hereby referred to and incorporated herein and made a part hereof by reference and all bids must strictly comply therewith. The City reserves the right to accept any bid in whole or in part, or to reject any or all bids and to waive any informalities or irregularities in the bids or in the bidding process, and all bids are binding for a period of forty -five (45) days after the bid opening and may be retained by the City for examination and comparison, as specified in the contract documents. Includes: General Provisions: 1 page Special Provisions: 2 pages Pricing Sheets including drawings: 14 pages Bid Page: 1 page Sample Contract: 4 pages Dated: August 27, 1996 Publish: August 27, 1996 CITY OF ARCADIA Tracey L. H. Williams Purchasing Officer CITY OF ARCADIA BID 9697 -19 GENERAL PROVISIONS The City of Arcadia is inviting sealed bids for the furnishing of new furniture for the Planning, Building and Code Services Departments. The Planning, Building and Code Services Departments has spent a considerable amount of time and effort to select the furnishing that they feel will provide the desired effect they want to achieve. In order to achieve the desired results, each piece of furniture will need to be bid from the list of recommended manufacturers, including brand name, styles, models, fabrics and colors, etc. NOTES: 1. You may offer a salient substitute for the Craftsman Office Furniture. 2. NO SUBSTITUTES WILL BE ACCEPTED FOR THE J.B. ENGINEERING OR THE WORKRITE ERGONOMICS FURNITURE. NO EXCEPTIONS111 ANY SUBSTITUTES OFFERED, YOUR BID WILL BE DEEMED NON - RESPONSIVE. All prices bid shall be firm until delivery and acceptance of all furniture. This is an all inclusive bid. Term discounts will be considered. If the bidder has any questions relating to the furniture to be bid, please contract Mr. Tracey L. H. Williams at (818) 574 -5429. II. SPECIAL PROVISIONS 1. Bids must be on forms furnished by the City. Do not remove the specifications or any of the pages herein but submit as a complete packet. 2. The bid price shall include and show all taxes as are applicable under the laws of the State of California and Los Angeles County relating to "Sales Taxes" and "Use Taxes ": and shall be inside delivery F.O.B. City of Arcadia , City Hall, 240 W. Huntington Drive, Arcadia, CA 91007. 3. Bid shall include inside delivery, set -up and assembly and installation in appropriate building rooms. 4. Payment shall be made by the City of Arcadia within 30 days following delivery of the new furniture, inspection for compliance to the specifications and acceptance by the City. Invoices shall be submitted in duplicate. 2 %w, ,ftml� 5. All bids shall be submitted on new, current models and shall include all equipment not herein specified by furnished by the manufacturer as standard equipment. 6. The award of the contract, if it be awarded, will be to the lowest responsible bidder whose bid complies most closely to the requirements described. The award, if made will be made within forty -five (45) days after the bid opening. 7. The successful bidder agrees to deliver to the City of Arcadia all parts, books, guarantees and warranties for the equipment at the time of delivery. 8. Where discrepancies exist between unit cost and extensions, the unit price will be the deciding number. 3 '*�We }4000 CLIENT: DONNA BUTLER CITY OF ARCADIA 240 W. Huntington Drive Arcadia, CA 91066 -6021 Quantity Descriotion Unit Price Extended Price CRAFTSMAN OFFICE FURNITURE 1 Designline 6000 Computer U Station $ $ Desk 36 "x71" Box, Box, File, Center Drawer Bridge 22 "x31" (Left) Comer 38 "x38" with Grommet Credenza 22 "x40" Lateral File Edge Detail & Finish to be determined 1 High Rise without doors, 68 wide $ $ and computer clear 1 Two Drawer Lateral File with lock $ $ 11 Bookcase, 29 "h x 36" w x 15 "d $ $ 2 Bookcase, 72 "h x 36" w x 15 "d $ $ WORKRITE ERGONOMICS 1 #170 Adjustable Arm $ $ 1 #B187 -25 Combo - Platform for keyboard $ $ and mouse, black with #25 midnite palm rest NOTE: LIST PRICES QUOTED TOTAL LIST $ FOB Factory, I j Ri:c ` ►�a I 1 179 7 Bbx Qrp4 " �o000 C�h ca Crr3�S-ri1 -a Y) (:C'�mFL'�er U Ci�ton '12x ,(af /s 36sIs 7271 34P x/6 - rccvF-zs CLIENT: ROY STREETER CITY OF ARCADIA 240 W. Huntington Drive Arcadia, CA 91066 -6021 Quantity Descriotiion Unit Price Extended Price CRAFTSMAN OFFICE FURNITURE 1 Designline 6000 Computer U Station $ $ Desk 36 "x71" File, File, Center Drawer Bridge 22 "x31" Corner 38 "x38" with Grommet Credenza 22 "x31" Box,Box,File epc.c - V � AJ Oi (P=-10 2 1 High Rise without doors, 68" wide $ $ and computer clear 1 Special filler for wall, 14 "x70" $ $ Edge Detail & Finish to be determined WORKRITE ERGONOMICS 1y #170 Adjustable Ann $ $ 1 #B187 -25 Combo - Platform for keyboard $ $ and mouse, black with #25 midnite palm rest NOTE: LIST PRICES QUOTED TOTAL LIST $ FOB Factory M `%W *40 'fin+ `*0 CLIENT: CORKY NICHOLSON CITY OF ARCADIA 240 W. Huntington Drive Arcadia, CA 91066 -6021 Quantity Description Unit Price Extanclod Price CRAFTSMAN OFFICE FURNITURE 1 Designline 6000 Computer L Unit $ $ Desk 36 "x71" Box, Box, File, Center Drawer Left Return 24 "x48" File, File, with Grommet Edge Detail & Finish to be determined AgahRiise 2 - PA.= Y_ Grl�¢�Z R8 6ICM c,-Iw -s Gc�� 0 Z 1 without doors, 46" wide $ $ and computer clear 1 Two Drawer Lateral File with lock $ $ WORKRITE ERGONOMICS 1, #173 Adjustable Arm $ $ 1 #8182 -25 Combo - Platform for keyboard $ $ and mouse, black with #25 midnite palm rest NOTE: LIST PRICES QUOTED TOTAL LIST $ FOB Factory I E5 1 Q2� H i CIO �x CLIENT: BILL STOKES CITY OF ARCADIA 240 W. Huntington Drive Arcadia, CA 91066-6021 Quantity Descriotion Unit Price Extended Price J.B. ENGINEERING 1 T- 723629 T- Series Table $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out 1 T- 722029 T- Series Table $ $ with Self Edge on all sides 1 T- 602029 T- Series Table $ $ with Self Edge on all sides 1 000-6012 Desk Top Organizer $ $ with Tack Board 2 P -122L (2 Box, 1 File Pedestal w /lk) 22" deep $ $ 2 HFA -2 (File adapter for 22" deep ped) $ $ 1 PPT -1 (Plastic Pencil Tray for box drawer) $ $ ABOVE FINISH: P -22 ROSE GRAY WORKRITE ERGONOMICS 1 #170 Adjustable Arm $ $ 1 #B186 -25 Combo - Platform for keyboard $ $ and mouse, Black with #25 Midnite palm rest NOTE: LIST PRICES QUOTED TOTAL LIST FOB FACTORY ifl.V90X firw CLIENT: JIM KASAMA CITY OF ARCADIA 240 W. Huntington Drive Arcadia, CA 91066 -6021 Quantity Description Unit Price Extended Price J.B. ENGINEERING 2 T- 723029 T- Series Table $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out 1 T- 303029 T- Series Table $ $ with SELF EDGE ON ALL SIDES and one CC -3 cable cut -out 1 T- 483029 T- Series Table $ $ with 180 degree rolled edge, user side 1 000-7212 Desk Top 07garnzer $ $ with Tack Board 1 000-3012 Desk Top Organizer $ $ with Tack Board 1 P-1 22L (2 Box, 1 File Pedestal w /Ik) 22" deep $ $ 2 P -121 L ( 2 File Pedestal w /lk) 22" deep $ $ 5 HFA -2 (File adapter for 22" deep ped) $ $ ABOVE FINISH: P -22 ROSE GRAY WORKRITE ERGONOMICS 1 #170 Adjustable Arm $ $ 1 #8186 -25 Combo - Platform for keyboard $ $ and mouse, Black with #25 Midnite palm rest NOTE: LIST PRICES QUOTED TOTAL LIST FOB FACTORY 3 1e� " = j /_,o " 1480 ipw4r sf oe �OJ*4 . E CLIENT: JOHN HALMINSKI CITY OF ARCADIA 240 W. Huntington Drive Arcadia, CA 91066 -6021 Quantity Descriation Unit Price Extended Price J.B. ENGINEERING 1 CU42422429 T- Series Corner Unit $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out 2 T- 242429 T- Series Table $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out 2 T- 482429 T- Series Table $ $ with 180 degree roiled edge, user side and one CC -3 cable cut -out 1 DDO -6612 Desk Top Organizer $ $ with Tack Board 2 P -102 (2 Box, 1 File Pedestal) 18" deep $ $ 2 P -101 (2 File Pedestal) 18" deep $ $ 6 HFA -1 (File adapter for 18" deep ped) $ $ 2 PPT -1 (Plastic Pencil Tray for box drawer) $ $ ABOVE FINISH: P -22 ROSE GRAY WORKRITE ERGONOMICS 1 #170 Adjustable Arm g $ 1 #8187 -25 Combo - Platform for keyboard g $ and mouse, Black with #25 Midnite palm rest NOTE: LIST, PRICES QUOTED FOB FACTORY TOTAL LIST CLIENT: PLANNING DEPT. CITY OF ARCADIA 240 W. Huntington Drive Arcadia, CA 91066 -6021 Quantity Descriation Unit Price Extended Price J.B. ENGINEERING 2 CU42422429 T- Series Corner Unit(Julie,Cin) $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out 2 T- 242429 T- Series Table $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out 2 T- 302429 T- Series Table $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out 1 T- 422429 T- Series Table $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out .2 T- 603629 T- Series Table (Don, Ray) $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out 1 T- 663029 T- Series Table (Bill) $ $ with 180 degree rolled edge, user side and one CC -3 cable cut -out 3 000 -7212 Desk Top Organizer $ $ with Tack Board 1 ODO -6012 Desk Top Organizer $ $ with Tack Board 6 PKA Pull -out Keyboard Drawer $ $ 4 P -122L (2 Box, 1 File Pedestal w /lk) 22" deep $ $ 4 P -102L (2 Box, 1 File Pedestal w /lk) 18" deep $ $ 4 HFA -1 (File adapter for 18" deep ped) $ $ 4 HFA -2 (File adapter for 22" deep ped) $ $ 5 PPT -1 (Plastic Pencil Tray for box drawer) $ $ ABOVE FINISH: P -22 ROSE GRAY 2 30" wide Lateral File with Lift Door Top and Fite Drawer Bottom (2 High) ALLSTEEL OR OTHER NOTE: LIST PRICES QUOTED TOTAL LIST $' FOB FACTORY nF .y a U G3 Q C7 Cc. 2 2 >» Z E- Q 0-r .] Ua rr' CITY OF ARCADIA BID 9697 -19 NEW FURNITURE FOR THE PLANNING, BUILDING AND CODE SERVICES DEPARTMENTS BID PAGE PLEASE USE SEPARATE SHEETS PROVIDED FOR EACH OFFICE FOR PRICING. Subtotal 8.25% sales tax Delivery, installation, assembly and set -up Total entire bid cR: Company name Address, City, Zip Telephone Number Fax phone number Date Authorized Signature Title Name Printed Federal Tax Id Number: Sole Owner Partnership Corporation State of Incorporation 1 1,, IM10 CITY OF ARCADIA CONTRACT BID #9697 -19 THIS CONTRACT, made and executed this 2nd day of October 1996, by and between the City of Arcadia, California, hereinafter referred to a "City ", and Sam Yocum, Inc. hereinafter referred to as "Contractor" and "Bidder ": WITNESSETH: City and Contractor do mutually agree as follows: 1. The Notice Inviting Bids, Bid, Specifications and all amendments thereof, when approved by the parties hereto, copies of which are attached hereto, are hereby incorporated in and made a part of this Contract by reference, as though fully set forth herein, and all of the foregoing shall constitute the Contract documents. 2. Contractor agrees to sell, deliver, assemble, install and set -up the specified furniture within the time specified in its bid in strict conformance with the contract documents. 3. City agrees to pay contractor the amount specified in the Contract documents and in the manner specified therein. 4. Time is of the essence of this Contract. If Contractor should fail to make delivery as specified in paragraph 2 above, City may give 30 days' written notice to Contractor to make said delivery, and if Contractor fails to do so, Contractor shall be liable to City for damages incurred by such failure, including, but not limited, to, the price differential in purchasing and securing delivery of the furniture in conformance with the Contract documents on the open market from another vendor, with or without advertised competitive bidding. 5. In addition to other warranties and guarantees, Contractor warrants that the furniture as described in the Specifications, will be of merchantable quality and will be fit for the purposes set forth in the Specifications and other ordinary purposes for which it is used. 7. The risk of loss is on and title shall remain in the Contractor until written acceptance of the furniture by the City's representative. Contractor shall obtain adequate liability, collision and property damage insurance to cover the furniture at no cost to the City. Such insurance shall remain in effect until written acceptance of the furniture by the City's Representative. 8. Contractor agrees that in the performance of this Contract, Contractor is an independent Contractor, not an employee, agent or officer of the City. N 9. This Contract shall be interpreted, construed and given effect in all respects according to the laws of the State of California. 10. Contractor shall not assign this Contract, or any part thereof, or any monies due or to become due thereunder without prior written consent of City. 11. Contractor shall indemnify and hold harmless the City, and its officers and employees, from and against any and all claims, demands, suits, loss, damage, injury and liability, including costs and expenses incurred in connection therewith, however caused, resulting from, arising out of, or in any way connected with the performance of the contract, including delivery and unloading of the supplies and equipment. 12. Contractor shall hold the City, its officer, agents, and employees, harmless from liability of any nature or kind, including costs and expenses, for infringement or use of any copyrighted or uncopyrighted composition, secret process, patented or unpatented invention, article or appliance furnished or used in connection with the Contract. 13. Contractor warrants that no gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by the Contractor, or any agent or representative of the Contractor, to any officer or employee of the City with a view toward securing the Contract or securing favorable treatment with respect to any determinations concerning the performance of the Contract. For breach or violation of this warranty, the City shall have the right to terminate the contract, either in whole or in part, and any loss or damage sustained by the City in procuring on the open market any items which the vendor agreed to supply shall be borne and paid for by the Contractor. The rights and remedies of the City provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under the Contract. 14. Rights and remedies of City for default: (a) In the event any item furnished by the Contractor in the performance of the Contract should fail to conform to the specifications therefor, the City may reject the same and it shall thereupon become the duty of the Contractor to reclaim and remove the same forthwith, without expense to the City and immediately to replace all such rejected items with others confirming to such specifications; provided that should the Contractor fail, neglect or refuse so to do, the City shall thereupon have the right to purchase in the open market, in lieu thereof, a corresponding item and to deduct from any monies due or that may thereafter become due to the Contractor and difference between the price named in the Contract documents and the actual cost thereof to the City. 3 VIo (b) In the event of the cancellation of the Contract, either in whole or in part, by reason of the default or breach thereof by the Contractor, any loss or damage sustained by the City in procuring any items which the Contractor therein agreed to supply shall be borne and paid for by the Contractor. (c) The rights and remedies of the City provided above shall not be exclusive and are in addition to any other rights and remedies provided by law or under the contract. 15. Subject to the provisions of this Contract, all terms, covenants, conditions and provisions hereof shall inure and to and shall bind each of the parties hereto and each of their respective heirs, executors, administrators, successors and assigns. 16. EQUAL OPPORTUNITY: During the performance of this Contract the Contractor /vendor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. CIVIL RIGHTS ACT OF 1964: Under Title VI of the Civil Rights Act of 1964, no person shall on the grounds of race, color or national origin, be executed from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. 17. MINORITY: Minority vendor /contractors are encouraged to bid. Please check if you are one the of following: Black/African- American Hispanic Asian and Pacific Islander American Indian or Alaskan Native Woman Owned Business 4 i `o IN WITNESS WHEREOF, the parties have caused this contract to be executed the day and year first above written. ATTEST: ity Clerk APPROVED AS TO FORM: Y� tt lylo� City Attorney Affix corporate seal (if applies) CITY OF ARCADIA Title CONTRACTOR -ve Title 5 0 A \�PnRAT�/ MEMORANDUM DEVELOPMENT SERVICES DEPARTMENT October 1, 1996 TO: Mayor and City Council FROM: James S. Dale, Administrative Services Director � Donna Butler, Community Development Administrator - SUBJECT: Report and recommendation to adopt Resolutions 5952 and 5953, setting forth Planning and Building processing and permit fees Financial pressures are forcing many city governments to take a close look at the cost to provide public services. Specifically, local governments are reviewing their fees and charges in order to assure that the beneficiaries of those services, where appropriate, are paying their "fair" share of the cost incurred in providing the service. In fiscal year 1996 -97, the Operating Budget for the City of Arcadia included, among other issues, a proposed increase in fees and charges resulting in an annual revenue increase estimated to be $200,000. Staff has conducted an intensive study of fees and charges to identify the true cost of providing services. Although all of the fees and charges included in this study will ultimately be brought to the City Council for review and possible rate increases due to the volume and complexity of this study only planning and building related fees are being presented for review at this time. This report includes a summary of the approach the City utilized to analyze both the revenue and costs of providing such services and discusses the need to increase certain fees and charges. Further, it provides information and guidance to the City Council in establishing appropriate building and planning fees and charges and requests the City Council to adopt the attached resolutions 5952 and 5953 adding, changing and amending certain building and planning fees. Clo Fee Study October 1, 1996 Page 1 M The fiscal constraints placed on local governments by declining revenues including statutory political limitations on taxation have produced a need for and an awareness of the cost/revenue relationships in providing services to the public. The City of Arcadia produces revenues of approximately $1.7 million from charges for services and other fees. These fees include such activities as building permits and inspections, planning applications and other fees relating to other City departments. Some fees are established by resolution of the City Council, others are granted by general authority per Government Code, Section 39001 and the California Constitution, Article XIII B, Section 8. Fees may be increased or new fees levied only by ordinance or resolution and only after a public hearing is held as part of a regularly scheduled City Council Meeting (Govt. Code Section E6018 et seq.). The revenue that is generated from "Charges for Services" is unrestricted as to its use but is limited by Government Code. The fees charged for service may = "exceed the reasonable cost of providing the service or regulatory activity, including overhead, for which the fee is charged and which is not levied for general revenue purposes." The rationale behind service charges is that certain services are primarily for the benefit of individuals rather than the general public. Thus, the individual benefiting from a service should pay the cost associated with providing that service. The most obvious types of service charges are for development type fees, i.e., building, electrical, mechanical and plumbing permits. Other not so obvious service charges may include charges for street sweeping of private streets, copies of crime reports/ visa letters and similar activities. Because of Article XIII, the method(s) used by cities to establish the cost of providing services has drastically changed. In the past, fees were established at rates that were primarily controlled by custom and market conditions, i.e. what the market would bear and what other cities charged. With the passage-of Proposition 4 which in turn clarified the Statutes of Proposition 13, now Article XIII, cities must be able to document the "Costs Reasonably Born" Test. The "Costs reasonably born test" implies a direct relationship between payment of fees and charges and receipt of services. The current trend in pricing public services is to use what is commonly referred to as "market based pricing." The purpose of market based pricing is to use the market place as one of the factors in establishing fees and charges. This approach to pricing allows the City Council to determine what portion of the cost of a specific service will Fee Study October 1, 1996 Page 2 %W 144 be paid for by the beneficiary and what portion, if any, will be provided by general government. As an example, the residents of Arcadia, for instance, can benefit greatly if our youth and others take advantage of the City's recreational swim program. Although the unit cost of providing the swim program has been determined to cost $5.41 per unit or $5.41 for allowing a person to swim (this includes staff costs to admit, process the fee and clean the pool). Staffs recommendation would be to continue to charge $1.00. It is staffs position that participation in the swim program far exceeds the desire for full cost recovery from the beneficiary. Pricing or the rate structure established for fees and charges then becomes a decision that the City Council makes, considering all social and economic factors, limited only to the cost of providing the service. Although the fee study included all fee and charges, the public hearing for tonight's meeting is focusing on Planning and Building fees. Exhibit A "The Fee Study Table of Contents" provides a detailed listing of the Planning and Building services and fees that staff has reviewed. This exhibit contains reference to the page numbers in the fee study manual for back -up documentation. (Note: The actual study is over 400+ pages and is therefore not attached as an Exhibit). The exhibit list the name of the fee, or service, then identifies the unit revenue the City currently receives, the next column is the unit cost to provide the service (the actual "cost of the service "), the third column identifies the profit or subsidy that is currently generated and the last column is the staffs recommended fee /charge. Although overhead is a well established, recognized and necessary expense often used in business, it is only recently that government started adopting business techniques and documentation to support these costs. There are essentially two levels of overhead - general and departmental. Departmental Overhead is derived by identifying those departmental positions and costs which provide general support to the programs within the operating department, then translating those expenses to a percentage. General Overhead or Administration Overhead, as it is commonly referred to, recognizes general support, i.e., City Council, City Manager, City Attorney, Administrative Services, etc. The purpose of deriving general and departmental overhead costs is so that these amounts might be added to direct service program costs. By adopting these rates, the Fee Study October 1, 1996 Page 3 low City will be aware of its true costs and be able to emulate business practices to identify the true costs of service delivery. After the cost allocation plan was complete, the fee study was then developed. The fee study essentially identifies, in detail, the cost associated with providing the service. These costs include both direct and indirect costs to arrive at a unit cost An example of the cost of providing a service has been attached for your review, (Exhibit B -1, B -2 and B -3). A similar set of documents has been developed for each fee /charge listed on Exhibit "A ". The service provided in our example is for a Conditional Use Permit. This permit is performed by the Community Development Division of the Development Services Department. Conditional Use Permits fees are based on a sliding scale, the average cost is $706.00 and through our analysis the cost to provide the permit is $1,540.07. Staff is recommending the charge to the customer be on a time and material basis with a minimum deposit of $500.00 and a maximum fee of $2,000 to $5,000 based on the size of the project. Exhibit B -3 provides detail data on the direct cost . This data includes the Equipment and Supplies needed to conduct the test and the Position (s) required in performing the service. In addition, this exhibit identifies the average or estimated time spent in processing the permit and the cost in terms of salary for the time spent. Exhibit B -2 summarizes the direct labor dollars and incorporates fringe benefits and overhead charges. The summation of these costs provide the unit cost or the cost associated with issuing one such permit. Exhibit B -1 then provides summary information about the service, the primary service provider, description of the service, legal authorization to collect the revenue and other accounting information. This worksheet also compares current revenues to the current unit costs, which provides data necessary to determine the recommended unit revenue. Building fees have not been increased since 1992. Building fees are currently based on the total building valuation cost within the City of Arcadia. Building permit fees have historically been charged to recover the cost of inspection services through building evaluation based on the ICBO building standards. The ICBO building valuation standards are derived from yearly studies conducted throughout the Country and are based on the average construction cost according to the various geographic areas. In order to insure that the City's fees were equitable, the Cost Allocation Fee Study October 1, 1996 Page 4 Study evaluated the City's fees based upon this formula. Based upon the attached study, it was illustrated that the City subsidizes the cost for plan check review and building inspections. Based upon the study, it is recommended that the City adopt the new 1996 Building Valuation as set forth by the ICBO and that a direct/indirect charge of 15% be applied to all permits issued. This represents charges for the direct costs of Building personnel and indirect services provided by support departments including Administrative Services, Planning, Maintenance Services etc. currently not being recouped by the fees being charged. The 15% rate was arrived at through a study identifying the relationship and services provided, between departments of the City and then allocated through a sophisticated cost allocation program. Specific representative permits were costed out showing direct charges of building personnel and then included was an indirect overhead rate, mentioned above,, to arrive at a total cost to the City to issue and provide these permits. This was then compared to the amount being charged and the corresponding gap between the cost and fee charged, justifying the inclusion of a 15% City overhead rate to recover additional amounts of direct and indirect costs while still remaining below the total cost so that the public enjoys a reasonable subsidy provided by the City. The proposed building fees are based on the 1996 ICBO building valuation tables plus 15 %. This increase more accurately reflects the costs incurred by the City in processing plan checks and building inspections. The changes in the Planning fees are based upon the actual cost to process the various planning applications. Some of the proposed additions and changes include: • An increase in Administrative Modification fees from $63.00 to $150.00 • An increase in Modification fees from $210.00 to $500.00. • A permit fee for Home occupations of $25.00 ($50.00 for Home Occupation permits requiring hearings before the Home Occupation Board). • Fees for Conditional Use Permits, zone variances, general plan changes, text amendments and zone changes have changed to a time & material cost with minimum deposits as set forth in the fee schedule. If these proposed increases are not implemented General Fund revenues will be impacted, possibly resulting in a negative fund balance requiring a transfer from other City funds to fund the difference. Notice of tonight's public hearing was advertised in "The Star" September 18 and 19th newspaper. In addition a copy of the fee schedule relating to the Development Fee Study October 1, 1996 Page 5 Services Department fees was sent to the Arcadia Board of Realtors and the Chamber of Commerce on August 15 for their review and comments. The Board of Realtors Political Affairs Committee has reviewed the fees and advised that they have no objections to the fee increases. On September 19 the Chamber of Commerce Executive Committee reviewed the proposed fee changes and notes "It seems only fair and appropriate to raise many of them to cover the cost incurred by the City." Copies of both letters are attached for your information. In addition, a notice has been posted in the Community Development Division's office notifying persons of the proposed fee changes. The purpose of the public hearing is to consider adopting and changing certain permit and processing fees relating to Building, Planning. To balance the 1996 -97 budget, $200,000 was budgeted in anticipated fee and charge increases. Building and planning fees makes up the majority of revenue generated from fees and charges and, therefore, only these fees are being addressed at this time. Ultimately all fees and charges will be brought to the City Council for review and possible rate increases. The proposed increases in the Planning and Building fees accurately reflects the costs incurred by the City in processing permits and applications. If these proposed increases are not implemented, the General Fund revenues would be impacted, possibly resulting in a negative fund balance requiring a transfer from other City funds to fund the difference. The Administrative Services Department and the Development Services Department is recommending that the City Council adopt Resolutions 5952 and 5953 as follows: Resolution 5952, a Resolution of the City Council of the City of Arcadia, California, setting forth fees relating to building code appeals, fire code appeals, handicap board appeals, building permits, plan review fees, grading plan review, grading permits, plumbing permits,. plumbing plan reviews, electrical permits, electrical plan reviews, mechanical permits, mechanical plan reviews, relocation and removal permits, demolition permits, reroofing permits, sign permits, swimming pool permits and fire extinguishing permits and repealing Resolution 5683 in its entirety. Resolution 5953, a Resolution of the City Council of the City of Arcadia, California, setting forth fees relating to filing fees, extension fees and appeal fees for General Plan Amendments, Text Amendments, Zone Changes, Variances /Conditional Use Fee Study October 1, 1996 Page 6 Permits, Tentative Maps, Tentative Parcel Maps, Parcel Map Waivers, Administrative Modifications, Modifications, R -2 and R -3 Modifications, Home Occupation Permits and Covenants, and repealing Resolution 5682 in its entirety. The City Council should move to approve and adopt Resolutions 5952 and 5953 as attached. Approved By: •. William R. Kelly, City Manager Attachments: Letters from the Chamber of Commerce and Board of Realtors Exhibits A and B Resolutions 5952 and 5953 Worksheet for Fees and Charges Fee Study October 1, 1996 Page 7 It's Good 9Business To Do Business M With A... `MEMBER OF n { SEP 2 J 1996 0 388 WEST HUNTINGTON DRIVE, ARCADIA, CALIFORNIA 91007 - (818) 447 -2159 September 20, 1996 Donna Butler Community Development Administrator City of Arcadia 240 West Huntington Drive Arcadia, CA 91007 SUBJECT: Proposed Fee Changes Dear Donna: The Chamber's Executive Committee had the opportunity to review the proposed fee schedule at its September 19th meeting. Based on the findings of the study, it is apparent that the City is subsidizing the cost to process many of the applications and permits. It seems only fair and appropriate to raise many of them to cover the cost incurred by the City. We thank you for giving us the opportunity to review this information. Sincerely, Jana D. Costuma Executive Vice President J i REALTOR' M M MARY ROVARINO `r Z Executive Vice President September 10, 1996 1996 Ms. Donna Butler, OFFICERS Community Development Administrator JOHN Wu0 City of Arcadia President 240 W. Huntington Drive P.O. Box 60021 JIHAN Arcadia, CA 91006 -6021 President -Elect CLYDE TOWLES Vice President JAMES THOMAS Secretary/Treasurer Dear Ms. Butler: DIRECTORS On behalf of the membership of the Arcadia Board of REALTORS®, I Daniel Carrillo would like to thank you for your recent letter informing the Board Maureen Chaplin of proposed fee changes for the City of Arcadia. Edda Hutson Judy Webb-Martin The proposed changes have been reviewed by our Political Affairs John Barker Committee at their recent meeting. We are pleased to inform you Lou Jean Barnes that we find no objections to the fee increases. Lydia Sun George Taylor, Marjo Weisblat Thank you again for keeping us informed of the activities within the City that could effect the residents and /or the real estate C.A.R. DIRECTORS market. John Barker Si ncerel Barbara Kuhn , Michael Ludecke Ji Han John Wuo J HN W C A.R. HONORARY res i dent DIRECTOR FOR LIFE Gordon Maddock l( JW /mr 112t EQUAL HOUSING OPPORTUNITY 601 South First Avenue, Arcadia, California 91^r)6 (818) 446 -4649 • FAX (818) 446 -4072 FEE STUDY TABLE OF CONTENTS Unit Unit Profit Page Revenue Coat (Subsidy) Recommendation Development Services Building Permit (Remodel Residence) . . . . . 1 292.15 760.01 (467.86) Add 151 Electrical Permit . . . . . . . . . . . . . . 4 126.55 212.05 (85.50) Add 151 Mechanical Permit . . . . . . . . . . . . . . 7 85.25 181.21 (95.96) Add 151 Plumbing Permit . . . . . . . . . . . . . . .10 99.95 276.76 (176.81) Add 151 Pool 4 Spa Permit . . . . . . . . . . . . . .13 550.00 552.13 (2.13) - - - -- Roofing Permit . . . . . . . . . . . . . . .16 210.00 213.18 (3.18) - - - -- Home Occupation Permit . . . . . . . . . . .19 0.00 30.13 (30.13) 25.00 Home Occup. Permit (With Hearing) . . . . . .22 0.00 146.20 (116.20) 50.00 Administrative Modification. . . . . . . . .25 63.00 251.95 (188.95) 150.00 Appeal Homeowner Association Action. . . . .28 310.00 991.58 (681.58) $00.00 Appeal of Modification . . . . . . . . . . .31 310.00 808.69 (498.69) 500.00 Certificate of Compliance. . . . . . . . . .34 0.00 716.86 (716.86) 700.00 Conditional Use Permit (< 5,000 aq ft) . . .37 607.00 1,540.07 (933.07) 500.00 Deposit - Time i Materials Max $2000 Conditional Use Permit (5- 10,000 aq ft) . . .40 706.00 1,540.07 (834.07) 500.00 Deposit - Time 4 Materials Max $2000 Conditional Use Permit (10- 15,000 sq ft) .43 805.00 1,540.07 (735.07) 500.00 Deposit - Time 4 Materials Max $2000 Conditional Use Permit (15- 25,000 aq ft) .46 904.00 1,540.07 (636.07) 500.00 Deposit - Time 4 Materials Max $2000 Conditional Use Permit (25- 35,000 aq ft) .49 1,003.00 1,540.07 (537.07) 500.00 Deposit - Time 4 Materials Max $5000 Conditional Use Permit (35- 45,000 sq ft) .52 1,102.00 1,540.07 (438.07) 500.00 Deposit - Time 4 Materials Max $5000 Conditional Use Permit (45- 55,000 sq ft) .55 1,201.00 1,540.07 (339.07) 500.00 Deposit - Time 4 Materials Max $5000 Conditional Use Permit (55- 65,000 aq ft) .58 1,300.00 1,540.07 (240.07) 500.00 Deposit - Time 4 Materials Max $5000 Conditional Use Permit (65- 75,000 aq ft) .61 1,399.00 1,540.07 (141.07) 500.00 Deposit - Time 4 Materials Max $5000 Conditional Use Permit (75- 85,000 aq ft) .64 1,498.00 1,540.07 (42.07) 500.00 Deposit - Time 4 Materials Max $5000 Conditional Use Permit (>85,000 aq ft) . . .67 1,597.00 1,540.07 56.93 500.00 Deposit - Time 4 Materials Max $5000 Final Tract Map . . . . . . . . . . . . . . .70 0.00 364.86 (364.86) 250.00 General Plan Change . . . . . . . . . . . . .73 1,009.00 1,766.68 (757.68) 500.00 Deposit - Time 4 Materials Modifications . . . . . . . . . . . . . . . .77 210.00 706.63 (496.63) 500.00 R -3 Modification . . . . . . . . . . . . . .80 899.00 1,539.59 (640.59) 1,100.00 Revision Existing Conditional Use Permit . .83 607.00 1,058.27 (451.27) 500.00 Deposit - Time 4 Materials Tentative Map /Parcel Map . . . . . . . . . .86 965.00 1,426.92 (461.92) No Change - 1463 plus 89 per lot Text Amendment . . . . . . . . . . . . . . .89 1,220.00 1,622.01 (402.01) 500.00 Deposit - Time i Materials Time Extension . . . . . . . . . . . . . . .93 57.00 176.88 (119.88) 100.00 Tree Removal /Encroachment Permit . . . . . .96 210.00 660.40 (450.40) 350.00 per Tree Removal 210.00 per Encroachment Permit Zone Change . . . . . . . . . . . . . . . . .99 1,081.00 1,473.22 (392.22) 1500.00 Deposit - Time i Materials Zoning Variance (< 5,000 aq ft) . . . . . . 10 607.00 1,540.07 (933.07) 500.00 Deposit - Time 4 Materials Max $2000 Zoning Variance (5- 10,000 sq ft) . . . . . 106 706.00 1,540.07 (834.07) 500.00 Deposit - Time 4 Materials Max $2000 Zoning Variance (10- 15,000 sq ft) . . . . . 109 805.00 1,540.07 (735.07) 500.00 Deposit - Time 4 Materials Max $2000 Zoning Variance (15- 25,000 sq ft) . . . . . 112 904.00 1,540.07 (636.07) 500.00 Deposit - Time 4 Materials Max $2000 Zoning Variance (25- 35,000 sq ft) . . . . . 115 1,003.00 1,540.07 (537.07) 500.00 Deposit - Time 4 Materials Max $5000 Zoning Variance (35- 45,000 aq ft) . . . . . 118 1,102.00 1,500.68 (398.68) 500.00 Deposit - Time 4 Materials Max $5000 Zoning Variance (45- 55,000 aq ft) . . . . . 121 1,201.00 1,540.07 (339.07) 500.00 Deposit - Time 4 Materials Max $5000 Zoning Variance (55- 65,000 aq ft) . . . . . 124 1,300.00 1,540.07 (240.07) 500.00 Deposit - Time 4 Materials Max $5000 Zoning Variance (65- 75,000 sq ft) . . . . . 127 1,399.00 1,540.07 (141.07) 500.00 Deposit - Time 4 Materials Max $5000 Zoning Variance (75- 85,000 aq ft) . . . . . 130 1,498.00 1,540.07 (42.07) 500.00 Deposit - Time 4 Materials Max $5000 Zoning Variance (> 85,000 aq ft) . . . . . 133 1,597.00 1,540.07 56.93 500.00 Deposit - Time 4 Materials Max $5000 Covenants . . . . . . . . . . . . . . . . . 136 75.00 74.52 0.48 - - - -- Permit Iaauence Fees . . . . . . . . . . . 139 35.00 46.32 (11.32) 40.25 EXHIBIT A CITY OF ARCADIA WORKSHEET FOR FEES AND CHARGES Service Provided Reference No. Conditional Use Permit Services Primarily Performed By Fund Exp. Account Development Services 001 001 -4103, 001 -4201 001 -2201 Revenue Received Fund Rev. Account . $0.00 001 001 -3108 Revenue Authorization Date last Revised Resolution 5682 August 1, 1992 Description of Service Unit of Service Designation Conditional Use Pemit for projects between 5,000 - 10,000 sq. ft. Current Fee Structure $706 per Conditional Use Permit for projects between 5,000 - 10,000 sq. ft. Fiscal Yew 1994 -95 Revenue and Cost Comparison Total Est. Rev. $ 0.00 Unit Revenue $ 706.00 Total Cost $0.00 Unit Cost $1,540.07 Profit (Subsidy) $0.00 Profit (Subsidy) ($834.07) % Cost Recovered BDIV /01 Units of Service 0 Suggested % Recovery and Fee Structure Percent: Special Conditions: EXHIBIT B -1 %w 4 CITY OF ARCADIA WORKSHEET FOR COST DETAIL Service Provided Conditional Use Permit Reference No. Total Units 0 Key Department Division Units A B C D E Development Services Development Services Development Services Fire Department Planning Engineering Building 0 0 0 0 Total Ex p. Type A 8 C D E Total Salaries & Wages Fringe Benefits Maint. & 0 erat. Overhead Total Unit Ex p. Type A B C D E Total Salaries & Wages $459.68 $65.44 $14.42 $29.47 $569.01 Fringe Benefits $160.89 $ 22.90 $ 5.05 $10.31 $199.15 Maint. & 0 erat. Overhead 1 $708.64 $33.83 $9.62 $19.82 $771.91 Total Cost By Unit 1 $1,329.21 $122.17 $29.09 $59.60 $1,540.07 EXHIBIT B -2 - --A. CITY OF ARCADIA DEPARTmNstr FEE AND CHARGE WORKSP O-ET Type of Revenue Department Charging Revenue Equipment Used To Charge This Revenue Supplies & Services Units Conditional Use Permit (5,000-10,000 sq ft ) Development Services Xerox. Automobile. Computer _ Paper, Postage, Newspaler 0 (8706 each) Positions That Assist In Processing These Fees Time SRen Extension Proj. Review w/ Applicant (Planner)" 2 hours 60.86 Prepare Radius Map & Explain Process (Planner) 1 hour 30.43 Accept Appeal of Filing (SecretaW 15 mina. 4.37 Prepare File Secretary) 30 mina. 8.74 Comm. Dev. Admin Review of Application 15 mina. 9.13 Prepare & Distribute Dept. Memo (Planner) 45 mins. 22.82 Review by Fire Dept. (Fire Marshall) 1 hour 29.47 Field Wort Prep. of Conditions (Asst. Engineer) 2 hours 56.70 Preparation of Report Engineering Secretary) 30 mina. 8.74 Review by Building Division 30 mina. 14.4 Environmental Checklist (Planner) 45 mine. 22.82 Preparation of Negative Declaration (Planner) 15 minx. 7.61 Prepare Public Hearing Notice (Planner) 20 mina. 10.14 Fax Notice to Paper (Secretary) 5 mina. 1.46 Mail Notices to Property Owners ( Secretary) 1 hour 17.47 Copy Public Hearing Notice (Secretary) 10 mins. 2.91 Prepare Staff Report w/ Meld insgec. (Planner) 5 hours 152.16 Prepare Land Use Map (Planner) 30 mina. 15.22 Review Report (Comm. Dev. Admin.) 25 mine. 15.22 Copy /Collate Staff Report (Secretary) 30 mina. 8.74 Presentation of Report to Planning Comm. (Planner) 20 mins. 10.14 Prepare Letter on Planning Comm. Action (Planner) 20 mina. 10.14 Prepare Planning Comm. Resolution (Planner) 45 mins. 22.82 Provide a Copy of Reso. & Letter to Anal. (Planner) 15 mine. 7.61 Prepare Cover Letter w/ SR to City Council (Sec.) 20 mina. 5.82 Prepare & File Notice of Determination (Planner) 10 mins. 5.07 Prepare Fish & Game's Exceptions (Planner) 10 mine. 5.07 Organize & Secure Data In File (Secretary) 10 mins. 2.91 Prepared By: Dept. Head Approval: Admin. Services Approval: Date: Date: Date: Revised: Date: Minimum amount of time - 5 minutes For the purposes of this study "Planner" refers to Assistant Planner, Associate Planner or Planning Services Manager. In order to calculate the cost of the services provided by the Community Development Planning Division, the Planning Services Manager salary was used to calculateAese fees. e.x }+ 115 T 13 3 06/ 0- ZS- IA Memorandum arcadia redevelopment agency DATE: October 1, 1996 TO: Arcadia Redevelopment Agency • FROM: f l/Peter Kinnahan, Economic Development Administrator Jim Dale, Administrative Services Director SUBJECT: REPORT AND RECOMMENDATION TO AMEND THE ARCADIA REDEVELOPMENT AGENCY BUDGET FOR FY 1996-97 BY INCREASING ANNUAL LOAN PAYMENTS MADE TO THE CITY OF ARCADIA FROM $300,000 TO $400,000 AND BUDGETING THE SAME AMOUNT IN FY 1997-98 AND ANNUALLY THEREAFTER; AND TO ADOPT AGENCY RESOLUTION NO. 178, A RESOLUTION OF THE ARCADIA REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA, CALIFORNIA, ADOPTING A "LOW AND MODERATE INCOME HOUSING FUND DEFICIT FINANCING PLAN". SUMMARY This report summarizes the Agency's current long term debt to bondholders, to the. City of Arcadia and to the Low and Moderate Income Housing Fund and discusses other factors affecting the Agency's long term financial stability. It outlines the Agency's FY 1996-97 Operating Budget, its projected annual and one time . revenues, the impact of the annual Low and Moderate Income Housing Fund. obligation, and recommends a long term financing plan to repay the City by increasing the annual payments to $400,000 and an amended financing plan to repay the Low and Moderate Income Housing Fund. DESCRIPTION . • (A) Arcadia Redevelopment Agency's Current Long Term Debt . . 1. 1989 Bond Issue: $3,385,000 In 1986, the Redevelopment Agency issued $3.4 million in 3 year notes to fund the construction of the new City Corporation Yard (Service Center) in Chicago Park. The Agency refinanced these notes into a $3.78 million, 25 year bond issue in 1989. The Agency currently owes $3,385,000 in principal to the bondholders. The Agency pays approximately $320,000 annually to retire the principal and interest of the bonds through and including the year 2015. 2. City Loans: $6,200,000• LASER !MA r V G;A / ,C �- • • • The City has loaned the Redevelopment Agency the following monies: Principal • Amount Date City Fund Purpose $ 920,097 Early 1980's Facility Construction Agency Operations $1,400,000. March, 1987 Capital Outlay } Agency Southside/ $ 550,000 March, 1988 } Northside projects $1,200,000 July, 1996 Equip. Replacement Downtown 2000 $4,070,097 Streetscape $2,129,003- Interest owed to 6/30/96 on above $6,200,000 -Total 3. Low and Moderate Income Housing Set Aside Fund: $3,606,652 By State law, the Redevelopment Agency has been required to set aside 20% of its. annual tax increment for purposes of Low and Moderate Income Housing. Agencies created prior to 1978 (like Arcadia) were allowed to delay payment; that is, these Agencies could create a deficit owed to the Fund. The Agency currently owes the Fund $3,606,652 for the period 1985-1996. • Summary of the Agency's Long Term debt is: • Bond Issue $ 3,385,000 City Loan . $ 6,200,000 Low/Mod Hsg. $ 3,606,652 $13,191,652 (B) FY 1996-97 (or Annual)Agency Expenditures 1. Agency FY 1996-97 Development Services Department/ Economic Development Division Operations Budget $ 644,000 This includes this fiscal year's budgeted costs for salaries, benefits, supplies, contract services, equipment, computers, reimbursement to the City General Fund for FY 1997 support, etc. 2. FY 1996-97 Low and Moderate Income Housing Set $ 377,000 Aside Program By law, the Agency must now actually place 20% of its FY 1997 tax increment monies into the Low and Moderate Income Housing Fund, and begin to implement such housing projects and programs. In December, 1994 the Agency adopted a five-year Housing Implementation Plan. At that time the Agency contemplated funding several Low and Moderate Income Housing programs in FY 1997 i.e., initial planning for a 15-unit senior citizen housing project, programs for first-time home buyers, mortgage assistance, home rehabilitation loans, housing participation,which would benefit approximately 9+ households and cost $180,000. Due to the shortage of available Agency funds 000002 because,of problems with the contractor on the Downtown 2000 Streetscape project, and because of the number of on-going and future Agency projects discussed below, staff proposes to utilize the services of a housing consultant to revise, obtain Agency approval of and then assist staff to implement a housing program (funds for the consultant can be taken from the Low and Moderate Income Housing Fund). A consultant is needed for two reasons-to provide needed expertise in low and moderate income housing design and implementation, and to assist the divisions two- person staff carry out the housing program. 3. Sully-Miller Litigation .$Unknown • The City has been sued by Sully-Miller, the Downtown 2000 Streetscape contractor. Depending on the outcome of the litigation, the Agency may be required to pay its share of any settlement or award. (C) Agency Revenues FY 1996-97' 1. Estimated FY 1996-97 tax increment $1,885,000 2. Estimated FY 1996-97 interest earnings $ 40,000 3. Annual lease payments for Southwest Corner Site, $ . 45,000 (Outback Steakhouse) Estimated FY 1996-97 Revenue: $1,970,000 Land Sale Proceeds - One Time 1. Sale of 3.2 acres of the 4-acre Northwest Corner Site $1,595,000 for possible hotel development($12.05/sq. ft.), less . 5% Commission - Spring, 1997 2. Payment of balance owed on Southwest Corner Site $ 400,000 by Outback Steakhouse- November, 2000 3. Sale of remnant parcel, Northwest Corner Site . $ 340,000 (if any); estimate .80 Acre at$10.00/sq. ft. 4. Sale of Agency property on the Southwest Corner est. $ 115,000 of First Avenue and St. Joseph Street to the City Transit Fund (Prop A) for mass transit station (Estimated $12.00/sq. ft.) Total estimated one-time revenues:.$2,450,000 00000:3 (D) Other Factors Affecting the Agency's Lonq Term Finances 1. Time Limits. AB 1290 passed in 1993 established certain new time limits on Redevelopment Agencies. *Incur Debt January 1, 2004 *Plan Termination January 25, 2014 *Debt Payoff January 25, 2024 Other Limits: *Condemn property by use June 30, 1998 of eminent domain 2. Property Tax Appeals. HdL Coren & Cone, the Agency's financial consultant has advised staff that the Agency has lost $500,000 cumulatively in tax increment since 1991. In addition, they advise that given historical trends applied to still pending appeals, the Agency could lose an additional $150,000 in annual tax increment. The estimate of FY 1996-97 tax increment above ($1,885,000) reflects this potential "loss". 3. Adopted Projects. Phase 2 - Downtown 2000 Streetscape Project $225,000 This includes implementation of several related programs: Commercial Facade Rehabilitation, Business Attraction, Marketing, Cooperative parking, Technical Assistance and Special Events. If successful, some of these programs will be recommended for funding in FY 1997-98 and possibly thereafter. Northwest Corner Site: $ 10,000 The Agency is working with Promus Company on the sale of 3.2+ acres for a 3-story, 120 room Homewood Suites Hotel development. The additional costs estimated at$10,000 are needed to complete the transaction, assuming the Disposition and Development Agreement (DDA) is ultimately approved by the City Council and Redevelopment Agency. Fifth Avenue Project: $ 10,000 Agency staff has informed Gateway Associates that no Agency funds are currently available, that all funds needed to acquire property and assemble the site must be provided by the developer, and that any Agency financial assistance must come from future tax increment revenue generated by the Gateway project itself. Additional costs estimated at $10,000 are needed to prepare a DDA for City Council/Redevelopment Agency consideration. 000004 0 Home Savings & Loan Surplus Parking Lot: $ 205,000 The Agency is obtaining an appraisal of the Home Savings & Loan 16,000 sq. ft. parking lot on East Alta Street for a possible affordable housing site. The asking price is $200,000-plus $5,000 for administrative costs. 4. "Opportunity' Projects: $ unknown There are several vacant or underutilized properties in the project area which may provide a future opportunity for development and for which Agency financial assistance may be requested, eg. Foulger Ford, Arcadia Lumber, Western Security Bank, Johnson property, etc. (E) Repayment of Debt to City Given the considerations above, staff has prepared and analyzed the chronological flow of revenue and expenditures for several years into the future: 1. Repayment of July 1996 $1.2 million City loan for the Downtown 2000 project. The Agency anticipates receipt of about $1.6 million from the sale of the Northwest Corner Site in Spring, 1997 for a hotel. All of this $1.2 million loan plus interest shall • be paid out of the land sale proceeds, pursuant to a City/Agency Agreement approved by the City Council and Redevelopment Agency on July 16, 1996. 2. Repayment of the remaining $5 million City loan. This debt can be repaid to the City by the year 2021 if the Agency annually repays $400,000 to the City. This would include payment of interest at a long term rate approved by the Administrative Services Director, i.e., 7% - an amortization table is provided as Attachment 1. In addition, as a further payment of principal owed, the Agency can pay to the City the $400,000 owed by Outback Steakhouse for the Southwest Corner property, due November, 2000. In June, 1996 the Agency paid $300,000 to the City to pay off interest on the debt and has budgeted $300,000 in FY 1996-97 to repay interest on these loans. By increasing this to $400,000 annually, the Agency can as stated above repay the debt (principal and interest) to the City by the year 2021. Staff is recommending that the Agency amend its FY 1996-97 budget and increase payment to the City from $300,000 to $400,000 and that a similar payment be budgeted in FY 1997-97 and future years thereafter. (F) Revised Housing Financing Plan Since 1985, the Agency has made annual findings that due to existing Agency obligations, programs, projects and activities, the Agency was unable to set aside OOOOO: n • 20% of its annual tax increment for low and moderate income housing. As a result, a deficit of approximately $3,606,652 has accrued in the Low and Moderate Income Housing Fund (LMHF). In 1988 the Agency adopted a preliminary Financing Plan (ARA Resolution No. 136) whereby an additional 5% of it's annual tax increment (or a total of 25%) was to be committed to repay the projected deficit by the end of the redevelopment project in 2026. AB 1290, passed in 1993 imposed new deadlines affecting the Redevelopment Plan in the following manner. a) last date the Agency can incur debt is January 1, 2004. b) last date the Agency can operate (unless implementing low and moderate housing) is January 25, 2014. c) last date the Agency can receive tax increment or pay indebtedness is January 25, 2024. With certain limitations the Redevelopment Law does not state when or how this deficit to the Low and Moderate Income Housing Fund is to be repaid. The agency can amend its "Financing Plan" at any time. Because of the Agency's current cash flow and indebtedness situation,the Agency can determine that the $3.6 million deficit will be paid off after January 1, 2014 using the Agency's available tax increment at that time. (The Agency is not required to pay interest on the deficit.) In 2014, the Agency will have one more year(2015) to pay $320,000 on its.1989 bond issue, and as stated above, will already be paying approximately $400,000 annually to repay the City loan. Assuming that the Agency's annual tax increment in 2014 is the same as it is today, that is about$1,900,000 a year, the $3.6 million deficit in the LMHF would be fully paid off in under 3 years. Agency Special Counsel and staff have prepared a "Low and Moderate Income Housing Fund Deficit Financing Plan" for Agency approval (see Attachment 2-ARA Resolution No. 178). FISCAL IMPACT • Repayment of the July, 1996 $1.2 million loan out of land sale proceeds from sale of the Northwest Corner site (estimated @ $1.6 million) in Spring, 1997. • Repayment of the $5 million loan by annual payment to the City of$400,000 through the year 2021, with an additional payment of$400,000 in November 2000 from proceeds of the Southwest Corner(Outback) land sale. • . • Deferral of the Agency's 1985-1996 low and moderate income housing deficit ($3.6 million) until 2014, per ARA Resolution No. 178 (See Attachment 2). 000O0t RECOMMENDATION 1. That the City-Council and Arcadia Redevelopment Agency amend the Arcadia Redevelopment Agency Budget for FY 1996-97 increasing annual loan payments made to the City of Arcadia from $300,000 to $400,000 and budgeting the same amount in FY 1997-98 and annually thereafter, and 2. That the Agency adopt ARA Resolution No. 178, A Resolution of the Arcadia Redevelopment Agency of the City of Arcadia, California, adopting a "Low and Moderate Income Housing Fund Deficit Financing Plan" (Attachment 2). Approved By: — Q William R. Kelly; City Manager/Executive Director Attachments • 00000', PAYMENT SCHEDULE AND CALCULAT10 N. 'OA , NT $400,000.00 - 1. PRINCIPAL $5,000,000.00 7/10/96 INTEREST RATE 7.000% INTEREST PRINCIPAL PRINCIPAL AMOUNT AMOUNT BALANCE PAYMENT 1996- $350,000.0 $50,000.00 $4,950,000.00 PAYMENT , 1997 3346,500.00 $53,500.00 $4,896.500.00 PAYMENT 1998 $342.755.00 ' $57,245.00 $4;839,255.00 PAYMENT 1999. , 3338,747.85 361,252.15 34,778,002:85 PAYMENT 2000 3334,460.20 3465.539.80 34,312,463.05 AID OIL. $400,000 PAYMENT 2001 $301,872.41 $98,127.59 $4,214,335.46 PAYMENT 2002 3295,003.48 3104,996.52 $4,109,338.95 PAYMENT 2003 3287,653.73 3112,346.27 $3,996,992.67 PAYMENT 2004 $279,789.49 $120,210.51 $3,876,782.16 PAYMENT 2005 3271,374.75 $128,625.25 $3,748,156.91 PAYMENT 2006 3262,370.98" 3137,629.02 $3,610,527.89 PAYMENT 2007 $252,736.95 3147,263.05 33,463,264.85 PAYMENT 2008 3242428.54 3157.571.46 $3,305,693.39 PAYMENT 2009 3231.,398.54 $168,601.46 $3,137,091.92 PAYMENT 2010 ' $219,596.43 $180,403.57 $2,956,688.36 PAYMENT 2011 3206,968.18 3193,031.82 $2,763,656.54 PAYMENT 2012 3193,455.96 3206,544.04 32,557,112.50 PAYMENT 2013 5178,997.87 $221,002.13 32,336,110.37 PAYMENT 2014 5163,527.73 $236,472.27 $2,099,638.10 PAYMENT . • 2015 .- 3146,974.67 $253,025.33 31,846,612.77 PAYMENT 2016 3129.262.89 • 5270,737.11 31,575,875.66 PAYMENT 2017 • $110,311.30 3289.688.70 51,286,186.96 PAYMENT • 2018 $90,033.09 $309,966.91 $976,220.04 PAYMENT 2019 568,335.40 3331,664.60 3644,555.45 PAYMENT 2020 - $45,118.88 5354,881.12 3289,674.33 PAYMENT 2021 $20,277.20 $289.674.33 - ($0.00) TOTAL 35,709,951.53 $5.000,000.00 • Attachment 1 00004.} ; , t , ARA RESOLUTION NO. 178 A RESOLUTION OF THE ARCADIA REDEVELOPMENT AGENCY OF THE CITY OF -ARCADIA, CALIFORNIA, ADOPTING A "LOW MODERATE INCOME HOUSING DEFICIT FINANCING PLAN" WHEREAS, the State of California enacted AB 1290 in 1993 which established certain new dates for incurring debt (January 1, 2004), terminating the Redevelopment Plan (January 25, 2014) and paying off all Agency indebtedness (January 25, 2024); and WHEREAS, the Agency's current deficit owed to the LMHF is approximately $3,606,652; and WHEREAS, because of significant unanticipated expenses on the Downtown 2000 Streetscape and Public Improvement Project,the Agency has expended all available funds and has had to borrow $1.2 million from the City; and • WHEREAS, the Agency, consistent with Health and Safety Code.Section 33000 et. seq. (Redevelopment Law) can repay the $3.6 million deficit to the LMHF after January 25, 2014 by assigning all of its annual tax increment.to the LMHF, less required pre-existing payments to bond holders, debt repayment to the City of Arcadia, and for administrative and project purposes related to the provision of Low Moderate Income Housing NOW, THEREFORE, the Arcadia Redevelopment Agency of the City of Arcadia, California does-hereby resolve as follows: - Attachment 2 -1- 00000: SECTION 1. ARA Resolution No. 136 (1988) is rescinded. SECTION 2. The Agency hereby adopts the "Low Moderate Income Housing Fund Deficit Repayment Plan", attached hereto as Exhibit One. SECTION 3. This Resolution shall take effect upon adoption. The Agency Secretary shall certify to the adoption of this Resolution. Passed, approved and adopted this 1st day of October, 1996. Chairman of the Arcadia Redevelopment Agency ATTEST: Secretary to the Arcadia. Redevelopment Agency APPROVED AS TO FORM; )1,-c4/ l_ )7)J Michael H. Miler Agency General Counsel • Attachment 2 -2- 0000:1.0 - , _ , STATE OF CALIFORNIA } COUNTY OF LOS ANGELES } SS: CITY OF ARCADIA } I, JUNE D. ALFORD, Secretary of the City of Arcadia Redevelopment Agency certify that the foregoing Resolution No. ARA 178 was passed and adopted by the Arcadia Redevelopment Agency of the City of Arcadia, signed by the Chairman and attested to by the Secretary at a regular meeting of the Agency on the 1st day of October, 1996, and said Resolution was adopted by the following vote, to wit: AYES: NOES: ABSENT: Secretary to the Arcadia Redevelopment Agency • • Attachment 2 000011 -3- ARCADIA REDEVELOPMENT AGENCY LOW MODERATE INCOME HOUSING FUND DEFICIT REPAYMENT PLAN The Agency currently owes to the Low and Moderate Income Housing Fund (LMHF) approximately $3,606,652. The Agency shall repay this deficit beginning after January 25, 2014. Assuming that the annual tax increment received by the Agency in 2001 is the same as the estimated receipts for FY 1996-1997 ($1,900,000) the Agency will repay the LMHF deficit within 3 years or by 2017. It is possible, if the national and local economy continues for improve, that the Agency's tax increment receipts will increase. Based upon the financial position of the Agency and the Agency's needs at that time, the Agency may then elect to allocate land sale proceeds or additional tax increment to defray the LMHF deficit. Exhibit One to Attachment 2 000017 -1-