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HomeMy WebLinkAboutItem 2a: Appropriation of $100,000 for Administrative Costs regarding Fire Station #105PM!' W Iii iii STAFF REPORT Arcadia Redevelopment Agency DATE: October 20, 2009 TO: Chairman and Members of the Board FROM: Donald Penman, Executive Director SUBJECT: APPROPRIATE $100,000 FROM THE IN UNRESERVED FUND BALANCE TO PAY ADMINISTRATIVE COSTS RELATED TO FIRE STATION 105 (CONTINUED FROM SEPTEMBER 15, 2009) Recommendation: Approve SUMMARY Fire Station 105 was occupied in July 2008; however the City has yet to accept the project as there are still some outstanding issues with the contractor on the project. The City still holds 5% of the project retention to cover costs the City incurred as a result of the project being completed several months behind schedule. However there are expenses the City must pay to cover administrative expenses incurred to date including project coordination and legal services, and possible other expenses incurred for resolution of the dispute and project closeout. At the projects inception several years ago the Agency appropriated funds for administrative costs, therefore staff is recommending that the Agency Board appropriate $100,000 from the unreserved fund balance to pay for some additional administrative expenses. BACKGROUND The construction of Fire Station was funded by Capital Outlay monies, a local source of funds generated from the portion of the betting handle (1/3 of 1 that the City receives from Santa Anita Racetrack. By policy established many years ago the City Council uses these funds only for capital related expenses including city facilities, and not for operating purposes. The only exception is that these dollars are also used to pay for Police Department Racetrack traffic control, which is a condition of State law in order for the City to accept the 1/3 of 1% of the handle. For this project the City Council and Redevelopment Agency Board utilized some Redevelopment monies for administrative expenses such as architectural costs. The City Council /Agency Board made the finding that Station 105 would benefit the Downtown Redevelopment Project Area since Station 105 would be the primary fire responder to the Downtown and therefore could use some Agency money, but determined to use it only for administrative related costs. Chairman and Members of the Board Appropriation of $100,000 October 20, 2009 Page 2 FISCAL IMPACT The Agency has sufficient unrestricted reserves to pay for various administrative expenses, such as legal and other consultant expenses for closeout of the project and resolution of the dispute. One of the outstanding bills that needs to be paid is for project coordination, which has not been paid since the Fire Department took occupancy. This bill is approximately $18,000. Staff would anticipant that the $100,000 would be adequate for all project closeout and dispute resolution expenses. RECOMMENDATION It is recommended that the Agency Board appropriate $100,000 from the Unrestricted Reserve balance and authorize the Executive Director to pay for expenses incurred for project closeout and dispute resolution services.