HomeMy WebLinkAboutJuly 7, 1998- • p N N 0 T A T E D •
A C E N D A ~^~
- -
Arcadia City Council
and
Redevelopment Agency
°"'°°~`°='~• Meeting
July 7, 1996
b:DO p.m.
Council Chambers Conference r~oom
nrTinN
i2OLL CALL: Council ~Jiemb=r Cnandler, Harbi~ht, Marshall, ~onc~lli and Kovacic nli nresent
1. TIME rZcS~RV=D rOR THOSF IN THc AUDIcNCc W'rl0 WISH TO
ADDr2~SS TH~ CITY COUNCIL (NON-?USLIC H~AP.ING/ rN~ MINUTc
i 1Mc LIMfT P: R P~RSON) rZ=: d:DO P.M. S~SSIO~I. Dale Spickler
2. CLCS~D 5=5SI0~
a. Pursuant to G~v~mm~n: Code S°C.TIDiI ~+~J/.~ S~ CDiIT?i witn Ci2y labor
n=ootiators Wilfiam ICelly and Carol P2ybyci~n r~gardi~g i samsters
Lor,al 911, AFSCME Lo,:.al 2264, ArFA, APOA, Management and
non-repres~nted employ~s.
b. Pursuant to Govemm=nt Code S=~ion 54956.8 to confer wifh Agency negoiiat~rs
William'R. K=11y, Don °=_nman and Peter Kinnahan par~aining to n~gotiatio~s
with Stonebridg~ Compani=s (Gary Rohr) r~aarding tn~ disposition of real
pro~rty (price and terms) applicable to 4-acre site on th= Nortnw~st com~r
of East Huntington Drive and North Second Avenue, Arcadia. nt 6: 10 p.m. Council
RECESSEI}to a Closed
Session and RECONVENED
7:~0 P.m. - in the Council Chamber_=
-: -- Counc7l Chamber' at 7:05 p.m.
INVOCATION Rev. Mary Mitchell, The Santa Anita Church
PLEDGE OF ALL~GIANCE Frank Forbes
ROLL CALL- Council Members Chandler, 4-lafiicht, Marshall, RoncelG and Kovacic nii rzesenc
3. PRESENTA710N of Mayofs Youth Service Awards to r2ick Cosb~y, t~hark Hoh~rd, Mark
Larsen, Wayne iicher, Tom Powers and Bob Soukup.
4. PRESENTA710N of Mayors Senior ServirP Award to Chuck Yaras.
5. PRESENTATION to Tom ~orbes., Music Director, Arcadia fligh School.
r _ _. ~ • .
6. PRESENTATION to outgoing Library 6oard Members, Jo Ann Scott and Jesse.
Vanlandingham.
7. PRESENTATION to outooing Planning Commission f~iember, Carolyn Bsll.
ACTION
8. PRESEI~fTATION to outooing Senior Citizens' Commissi~n Member, Arthur Po~n~~rs.
9. PRESEtJTATION to outgoing Sistsr City Commission Member, Jean Johnson
10. SUPPLEMENTAL INF~RMATION FROM STArF REGARDING
AGENDA fTEMS. None
11. QU~STIONS FROM CfTY COUNCIL/RcDEVELOPMcNT AGcNCY
REGAF2DfNG AGENDA ITcMS.
MOTION: R~ad all Ordinanc~s and Resolutions by titl~ only and waive
readin~ in full.
12. TIMc RESERVED FOR TH05E IN TNE AUDIcNC~ WHO WlSi-i TO
ADDRESS THE CITY COUNCIUr2tD~VELOPMENT AG~NCY
(NON-PUBLIC HEARINGIFIVE MINUTE TIMc LIM(T PErZ PERSON).
13. MATTERS FR~M ELECTED OFrICIALS
See *;inu[es
9do~ted 5-D
L. Spencer
L. k'ilson
V. Foley
F. Jahnke
City C~uncil Reports/Announcements/Statements/ruture Ag=nda li~ms Closed Session
re ^:anagement
~'acation Sell-
RECESS C(7Y COUNClL back 6 Leave
Benefits
'14. MEE7ING OF THE ARCADIA R~DE1lELOPMENT AGENCY
ROLL CALL: Agency Members Chandler, Harbicht, Marshall, Roncelii and Kovaci~ nii titesent
a Status rEport regarding Redevelopment Agency financPS.
ADJOURN Redevelopmerrt Agency to Juiy 2~, 1996 at 6:D0 p.m.
Study Sessior.
to be schedul~
in August .
RECONVENE CITY COUNCIL
'15. CONSENT
a Nfinutes of the June 'Ifi, '1996 Regular Mfeeting. ~,P~r~~Pa 5-0
" . • ~ ~
(consent continued) ACTION
b. Report and recommendation to adopt Resolution No. 6058, A Resolution Aaopcea 5-0
of the City Council of the City of Arcadia, California, declaring portions of
Baldwin Avenue irom Longden Avenue To Loftus Drive as part of the system
of highways of the County of Los Angeles far the purpose of a trafric signal
synchronization project.
c. Report and recommendation to award a ~ontract in the amount of Approved 5-0
~58,1 °~.15 to Martinez Concrete, Inc. for the '1998-~ 999 Concrete
Repair Program.
d. Report and recommendation io adopt Resolution No. 6D59, A Resolutio~ ~dopcea 5-0
of the City Council oT th2 City ofi Arcacii2, C~lif~rniz, approving the
destruciion ~f c~~tain rira Departm~nt re~ords as authoriz~d by law.
e. Report and recomm~ndation to author~z°_ tn? Ciiy Manag=r to =x~cuie an A~Dro.~ea 5-0
agre=m~nt with Ci~b~rt, Cassidy and rrier~n Tor labor r=lations and
personn~l f=gal s~rvices ior Tiscal year i 99E-1999.
1, f~~port and f8C01T1fi1°il~diiDil tD ~C:2Di 1h° 19y7/1 °95 StfBBi 3~~ par~;j;1~ 9pPToved 5-0
lot resurfacing prog~am and auth~rize final payment of ~2D,DD1.71
to Cairfomia ~avem~nt Mainienancz Company.
g. Report and rscommendafion to award a contract in the am~unt of A~~roved 5-D
5215,4DD.19 to Cafrfomia Pav=m~nt Maint~nance Company, Inc. for in= -
'199Bl99 str2et and pa~cing lot rVsuracino program.
h. Report and recomm=ndation to approve th= purch2s= of ~2'1,819.00 os a~~ro~ea 5-0
"systems fumiture" for tfie Technical Services Divisi~n of th= Library irom
Ofrice Depot using the Los Angeles County contract and waiving the
compefrtive bid process.
i_ Report and rec:ommendation to approve Final Map ~2394 ior an 8-unit Ap~roved 5-0
residenfial condominium project at 74fi W. Hurriington Drive.
j. Report and recommendafion to award a Professi~nal Services Agreemarrt n roved 4-1
to Civtltec Engineering lnc. in the amourrt of 5215,'160.00 to provide Roncelli - No)
engineering servicesiorthe design ofithe SL Joseph Ressrvoir~'i, boost=r
pump stafion and water well.
15. CiTY MANAGEF2
a Report and recommendafion to authorize the Cily Manager t~ c2st the City ciLV Met. to vo
ofArcada's ballots for the City of Monrovia Citywide Lighting and Landscaping ballots 4-
Mairrtenance DistricL
. _'~ ~. • •
A~TION
(city manager continued)
b. Report and recommendation to app~int members to the following Boards see below
and Commissions:
Human Resources Commission (1) Recreation Commission (1) ,
Library Board (2) Senior Citizens' Commission (4)
Planning Commission (3) Sister City Commission (3)
Parking District Commissi~n (1) Centennial Commission (1)
~. Report and recommendation to authorize staff to nll the position of Senior Aonroved s-o
Citizers Supervisor. fleeZej°onlfuturetagenda recruitment (hiring
d. Report and recommendation t~ revis~ and re-fitle th° pOSItIDiI CIdS51iIC~tI0I1 Approved 5-0
of Building Onicial.
ADJOURN City Council to Jufy 21, 1°96 at 6:DD p.m. in m~mory of ~dith And=rso~, Counc~l RECESSE
Patrici~ Mc4dam and Robvrt Stanley S=ares. to a Closed
Session (2a & b
RECONVENED and
ADJOL'RhTED at
°:35 p.m.
16b - CITY MANA~ER - Appointments to Boards and Co~issions
Human Resources Commission - S.H. Wen reappointed
Library Board - Jerome (.7erry) Selmer and Elizabeth (Betty) Roche:ort appointed
Planning Co~ission - Edward Huang, Paul Ralemkiarian and John Murphy =eanpointed
Recreation Commission - Christine (Chris) Mead appointed
Senior Citizens' Co~ission -(Assistance League) Carol Curtis reappointed
-(Golden Age Club) Irene Petermann reappointed
-(At-large) Ruth V. Gilb and Jayne V. Bellin appointed
Sister City Commission - Jean Cope and James Hanner reappointed
David Cashion appoint~d
Centennial Celebration Co~ission - S.H. Wen appointed
Parking District Co~ission - No appointment
/4447.7u l/' .
111" ARD
4p0$AS59. STAFF REPORT
DEVELOPMENT SERVICES DEPARTMENT
DATE: July7, 1998
TO: Mayor and City Council
Chairperson and Board Members
FROM: 4eDon Penman, Deputy City Manager/Dev. Services Director;
Assistant Executive Director, Redevelopment Agency
SUBJECT: STATUS REPORT REGARDING REDEVELOPMENT AGENCY
FINANCES
SUMMARY
During the FY 1998-99 budget process, there was considerable discussion regarding the
status of the Arcadia Redevelopment Agency finances. A significant amount of written
material has been prepared by Agency staff over the past several months on this subject. This
report is designed to summarize the issues related to Agency finances. It is staffs
recommendation that an Agency study session be scheduled in the future where Agency
activities and priorities can be discussed, which are an integral part of any discussion of
Agency finances.
DISCUSSION
Tax Increment
The Redevelopment Agency projects, programs and activities are financed with property tax
increment. Simply defined, tax increment is the increased property taxes generated within a
specific area (project area) after a project area is established. For example, if an area
generated $10,000 in property taxes prior to formation as a project area, and $10,200 after a
project area was formed, the Agency would receive the increased tax increment of $200. The
Agency receives 100% of the incremental increase.
In order for the Agency to receive tax increment it must first incur debt. A typical means of
incurring debt is to borrow money from the City. The Arcadia Redevelopment Agency has
incurred debt through this means. As of June 30, 1998, the Agency will owe the City
(specifically, the Equipment Replacement Fund, Capital Outlay, Facility Construction and
Insurance Funds) $6,643,913.42. A breakdown of Agency debt to the City is provided on
Attachment 1.
The amount of tax increment the Agency has received over the past several years has
fluctuated significantly. One of the primary reasons for these fluctuations is the number of
successful property tax appeals that have been filed by property owners. Attachment 2
provides a six (6) year appeal history for the Agency. In summary, there have been 191
appeals, 72 of which resulted in a lowering of assessed valuation by $55 million dollars.
110 ' dA�q
Agency Finance Report
Page Two
07/07/98
Generally, property owners have been able to demonstrate lower values from the economic
downturn in the early 1990's which has impacted tax increment flow. Unfortunately, it has
been difficult to project when the appeals would be resolved, making it very difficult in the past
to make accurate tax increment projections for the budget process. Additionally, because of
delinquent payments actual revenue is often times received long after the fiscal year has
ended, adding to the problem of making accurate projections. With the economic recovery, tax
increment has been increasing and appeals will not likely have a significant negative impact on
revenue flows in the near future. Attachment 3 shows a six (6) year tax increment history.
Agency Budget
The Redevelopment Agency budget for FY 1998-99 was adopted on June 16, 1998 and is
shown as Attachment 4. The Agency has an operations/administrative budget of $783,000
which represents 17.6% of its spending for FY 1998-99. Shown below is a breakdown of the
Agency operations budget:
Personnel (3.3 staff) $294,270
General Fund charges/City overload $192,610
General Liability Insurance $192,300
Supplies and Services .$ 99,370
Computer Equipment $ 4,470
Total: $783,020
The General Fund charges/City overhead merits further explanation. Though the Agency
directly funds 3.3 positions and finances its own expenses, it still receives general support from
the City, such accounting, Human Resources and management. Therefore, through the
$192,610, the Agency pays for that support which also includes rent and utilities.
Agency Debt
As mentioned, the Agency owes the City about $6.6 million. With the impending sale of the
Northwest Corner property to Stonebridge Companies this.summer, the debt will be reduced
by about$2 million to approximately$4.6 million.
The Agency Board adopted a repayment schedule in October, 1996 for retiring the total
amount of loans from the City. In addition, the Agency also approved a schedule to meet its
housing set-aside obligations. In the FY 1998-99 budget, the Agency will be making interest
payments on the City debt as well as some principal payments (exclusive of the Northwest
Corner payment), totaling $400,000.
Because tax increment revenues over the past two years have exceeded projections, and
Agency expenses have been below budget, the Agency will have accumulated an estimated •
r, i
Agency Finance Report
Page Three
07/07/98
cash balance of$1.2 million as of June 30, 1998. The Agency Board has a number of options
for consideration relative to this balance. These include the following:
1. Hold the money in reserve subject to the need for use of these funds for future project(s);
2. Utilize all or a portion to further reduce Agency debt to the Capital Outlay or Facility
Construction Funds.
Legally, the Agency cannot pass through or transfer these monies to the General Fund as a
revenue; they must be used to repay debt or finance an eligible project or activity.
Regarding alternative #1, staff has not had an opportunity to review with the new Agency
Board the various projects and programs it is involved with, nor has there been an opportunity
to discuss projects the Board may wish to pursue in the future such as the Foulger Ford site,
Arcadia Lumber or the parking lot property on First Avenue. A study session with the Agency
Board was held last November, 1996 that focused on Agency objectives and activities. Staff
would recommend the Board withhold any decision on utilization of the $1.2 million until a more
detailed review, as part of a study session, can take place.
RECOMMENDATION
IT IS RECOMMENDED THAT THE REDEVELOPMENT AGENCY SCHEDULE A STUDY
SESSION TO DISCUSS FUTURE REDEVELOPMENT AGENCY ACTIVITIES, PROJECTS
AND FINANCES.
Approved By: e., o.xt)
William R. Kelly, City Man:•er/Executive Director
Attachments
•
AGENCY DEBT TO THE CITY
6/30/98
FUNDS AS OF 6/30/98:
EQUIPMENT REPLACEMENT $1,200,000.00
CAPITAL OUTLAY $2,838,806.00
FACILITY CONSTRUCTION $2,088,861.00
INSURANCE $ 516,246.42
TOTAL $6,643,913.42
•
•
Attachment 1
. .
:- >: THE ,1TY OF ARCADIA
H � ` COMMUNITY REDEVELOPMENT PROJECT 1
., N ,- .F".' PENDING APPEALS IMPACT PROJECTIONS
• .-C'
OREN E:,- CONE
Potential AV Loss Based On Prior Success Rates On Current Average Appeals
COMMUNITY REDEVELOPMENT PROJECT 1 Appeals History:
Lien Total Resolved • Successful Successful Successful Appeal
Year Appeals Appeals Appeals Original Value Value Loss
1992/93:'"` - •••••-: 19 .- . 15 7 (46.67%) $60,793,406 526.058.455 (42.86%)
• 1993/94 . 39 -. . 39 • 21 (53.85%) $79,588,450 517,219.774 (21.64%)
1994/95' 45 • ,. . 43 20 (46.51%) $36,763,729 $6.683,729 (18.18%)
1995/96- 47 47 19 (40.43%) $34,101,613 54,498,977 (13.19%)
1996/97 41 28 5 (17.86%) 54,871,195 5656.857 (13.48%)
1997/98 0 ' 0 0 (0.00%) 50 50 (0.00%)
Totals: 191 - 172 72 (41.86%) $216,118,393 $55,117,792 (25.50%)
'Years with less than 10%resolved appeals or no successful appeals are not included in history totals.
COMMUNITY REDEVELOPMENT PROJECT 1 Top 25 Owner Appeals History:
- - Lien . .Total Resolved Successful Successful Successful Appeal
Year - •Appeals Appeals Appeals Original Value Value Loss
1992/93 9 7 5 (71.43%) 558.214.400 525.384.400 (43.61%) 1
1993/94 17 17 11 (64.71%) $75.223,958 515.916.282 (21.16%)
1994/95--. 21- 20 10 (50.00%) $29,440,063 54,508.063 (15.31%n)
1995/96 22 22 7 (31.82%) 527,527,446 53,169.810 (11.52%)
:.1996/97::• - .: -.--._116__ .- • .. 11 1 (9.09%) 53,393,540 5513.540 (15.13%)
-..:.1997/98--.-_-- - --`: 0- •--- 0 . 0 (0.00%) SO SO (0.007c)
Totals: 85 77 34 (44.16%) $193,799,407 $49,492.095 (25.54%)
'Years with less than 10%resolved appeals or no successful appeals are not included in history totals.
COMMUNITY REDEVELOPMENT PROJECT 1 Pending Appeals Impact Projection Based On Annual Experien
- - _ _Liens;_;y__Pending:= _; Prior =Average:._.;.--. _.Prior • Projected Projected
_=I ear :APPeals �-k Successful=�-- :APPealvaltie''-_- Loss- AV.Loss Revenue Loss•
1992/93 4 46.67% $3,932,897 42.86% $3,146,817 $31,468
1994/95 2 46.51% $1,901,950 18.18% $321,655 $3,217
•
1996/97 13 17.86% $1,966,695 13.48% $615,641 $6,156
Combined 19 $2,205,421** $4,084,113 $40,841
*To calculate impact for these rears,total ratios from the history are used. -.
"Combined average value per appeal is based on:1992/93 to 1997/98.191 appeals with a total value of 5421.235.438.
Note: Projected Revenue Lass is calculated at the dry average of 100.00%of tax levy on the Projected AV Lass.
•
Attachment '2
0
NOTE These projected losses are based on historical averages and may vary significantly from actual future decisions:resolution of pending appeals will nuns,lilrk.tale several■cars.
Six Year Property Tax Increment History
6/30/98
1992/93 1993/94 1994/95 1995/96 1996/97 1997/98
$2,343,329 $1,994,271 $2,135,085 $2,106,972 $2,231,178 $2,602,600
Attachment 3
AGENCY BUDGET
6/30/98
FY 1998-99
ESTIMATED BEGINNING
FUND BALANCE $1,212,000
REVENUE
Tax Increment $2,420,000
Interest Earnings $90,000
Rent (Outback Steakhouse) $45,000
Misc. - Developer Payments, etc. -
Land Sale Proceeds (NWC; net after $2,100,000
commission)
REVENUE: $4,655,000
EXPENDITURES
1989 Bond Debt Service $320,000
Repayment of City Loan $2,500,000
Principal - $60,000 }
•
Interest- $340,000 }
Land Sale Proceeds - $2,100,000 }
Economic Dev. Div. Annual Operations $783,020
Business Incentive Prgms. (incl. CFRP) $240,000
Misc. Project Costs (NWC, 5th Avenue, CDC, $120,000
Farmers Market, Holiday Lights)
Payment into Low/Mod Housing Set- - $485,000
Aside Fund
EXPENDITURE: $4,448,020
NET ANNUAL BALANCE: $206,980
CARRYOVER: $1,418,980
• Attachment 4