HomeMy WebLinkAboutItem 2a: Appropriation of $100,000 for Administrative Costs regarding Fire Station #105PM!'
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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.