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Home My WebLink AboutAgenda Packet - May 10, 2004 - CC SpecAZUSA LIGHT AND WATER 729 NORTH AZUSA AVENUE 1. PRELIMINARY BUSINESS • Call to Order • Pledge to the Flag • Roll Call AGENDA SPECIAL MEETING/WORKSHOP OF THE CITY COUNCIL MONDAY, MAY 10, 2004 6:30 P.M. II. PUBLIC PARTICIPATION - Please note that public comments are welcomed by recognition of the Mayor. 111. AGENDA ITEM A. Presentation of Financial Review of the Redevelopment Agency. Recommendation: Conduct workshop. B. Status Report on Property Acouisition for New Library Prolect. Recommendation: Conduct workshop. C. Formalization of the Procurement Policies for the Redevelopment Agency. Recommendation: Conduct Workshop. IV. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec 54957.6). Agency Negotiators: Mr. Robert Person &Ms. Julie Gutierrez Organization/Employee: Community Development Director V. ADJOURNMENT A. Adjourn. Studio City. San earnardim CMdG C.M. de Crinis 8 Co. Inc.. Public Finance Advisors CMdC Media Michael J. Senior Vice Council Workshop May 10, 2004 Presen The RE Financial Overview of the Redevelopment Agency Redevelopment Project Areas Redevelopment Project Areas . Merged Central Business District and West End Project Area . Ranch Center Project Area Agency's primary revenue source is property tax increment The Agency Funds M • Revenues are primarily one-time receipts • Used to pay for capital projects or a fund reserve and are not restricted Debt Service Funds T Revenues come from property tax increment, interest income and sales tax • Used for payment of debt service, financial assistance, taxing entity pass-throughs, administrative expenses and are restricted The Agency Funds Low Income Housing Set -Aside Funds . 20% of the gross property tax increment are set aside in this restricted special revenue fund . Other revenues include interest income, housing loan repayments, and HOME loan administrative subsidies • These funds are restricted and can only be used to pay for housing projects benefiting low -to - moderate income people, or the debt service for those projects What is tax increment? *When a project area is adopted, the assessed valuations are "frozen". *As the assessed valuations increase due to the project improvements or market value, 1% of this increased portion becomes the property tax increment the Agency receives Incremental Property Tax Example Increment Portion cuuU tuul 2002 2003 2004 2005 Time —Base Year AV —AV Increased 2%/Yr $1,120,000 $1,100,000 $1,080,000 c $1,060,000 $1,040,000 H $1,020,000 w d a $1,000,000 $980,000 $960,000 $940,000 Incremental Property Tax Example Increment Portion cuuU tuul 2002 2003 2004 2005 Time —Base Year AV —AV Increased 2%/Yr PROPERTY TAX DOLLAR BREAKDOWN $ 0.313 Eos Angeles County General $ 0.194 Azusa Uniftted School District $ 0.171 Educational Augmenatation Fund Impound $ 0.151 City Azusa Tax District 1 $ 0.076 Educational. Revenue Augmentation Fund $ 0.025 San. Gabriel Valley Municipal Water District $ 0.025 Citrus Community College District $ 0.0136 County Saniuttion District No. 22 Operntiag $ 0.0097 LA Co. Flood Control Maintenunes - $ 0.0084 County Schuol Services Fund Azusa - $ 0.0072 L A County Fire - FFW $ 0.0028 Clhildrens Instituhonul Tuition Fund $ 0.0017 L A Co. Flood Control Drain In, Dist. Mainz. - $ 0.0014 County School Services $ 0.0010 Devebpntent Center for Handicapped Minc, Azusn - $ 0.0006 Childrens Center Fund Citrus Community College $ 0.0001 L A County Accumulative Cnp Outlay ' $ 0.0000 San Gabriel Valley Mosquito Abatement District ' $ 0.0000 Consolidated Fire 1'rolection District Of L A Co. $1.000 THE REDEVELOPMENT AGENCY PROPERTY TAX DOLLAR BREAKDOWN �.' �.t��'cc �� a Mia �t�+,•i,«�gr��"-Mk''�,�P��db 3''3y��"'�s'�,� k.. $1.00 t' �r iAFi1 t f 'Yc P T �k Fo gency Y P � n a f Q $0.50 g J rW axing Entities $ Financial Capacity of the Agency Balance: In (Out): Beginning Balance: Restricted Funds: Encumbered Projects: Talley La Tolteca Pedestrian Breezeway Reserved for Projects: Unreserved & Unencumbered: CITY OF AZUSA REDEVELOPMENT AGENCY TWIG -YEAR FINANCIAL OUTLOOK Committed Funds At 2003/04 Year End 2003/04 $4,650,133. FY 2004105 $843,271 Capital := Debt Service Low/Mod $396,692 Capital Debt Service Low/Mod Proj Funds Funds Housing TOTAL' Proj Funds -" Funds Housing TOTAL .$4,144,669 $369,311 $351,857 $4,865,837 $3,807,933 $495,267 $843,271 $5,146;471. $1,351,300 $6,812,415 $132,720 $8,296,435 $739,797 $6,974,695 $22,500 .. $7,736,992 ($2,009,444) ($4,566,696) ($597,461) ($71173,601) ($17954,950) ($5,087,548) ($616,323) :J$23,61581821) $1,163,608 $2,119,763 $956,155 $0 $1,004,954 $1,985,722 $980,768 $0 $4,650,133 $495,267 $843,271 '$5,988,671 $12,402,266 $396,692 $1,230,216 $10,775,358) Committed Funds At 2003/04 Year End Committed Funds At 2004/05 Year End $4,650,133. $495,267 $843,271 $5,988,671 $12,402,266 $396,692 $1,230,216 $10,775;358 $0 $495,267 $843,271 $1,338,538 $0 $396,692 $1,230,216 $1,626,908 $450,000 $0 $0 .. $450,000 i $0: $p $25,700 $0 $0 .: $25,700$0 $0 $0 $0 $0 $0 $366,500 $0 $0 $0 $0 $842;200 $0 $0 $842,200 $O $0 $0 $0 $3,807,933 $0 $0 '$3807,933 $12,402,266 $0 $0 $12402;26(1 $0 $0 ,, $0 $0 $0 $0 $p spuos anssl4 s4:)aCoad 1:)2q-@IeDS* s4DaCoad @42ulwlG dePiNs wl OZT$ aye ssaappe ADu@5V aye ueD MOH 'A m k KT4 7ool Flq �ror)osed Aft Proposed Library Site' (Costs to acquire are based on estimates made within the past six months) ,fix _� s e Property Cost Incurred To Date Cost to'A ',qui gTotal Cost* Current Status, Address Fe m. v ve 716 N. Dalton Purchase$85,. Price $252,000 $410,000 City Owned Relocation 300 Asbestos/Abatement $27,500 Demolition $35,000 Consultant Fees $10,200 Subtotal $410,000 726 N. Dalton 1sOption $15,000 Purchase Price $308,500 $381,500 Non City Owned Ruelas 2nd Option $15,000 Relocation $25,000' ($5,000 applicable to 3rd Option $2,000 Consultant Fees $16,000 Purchase Price if option Subtotal $32,000,4'Subtotal $349,500 exercised) 728 N. Dalton la Option $15,000 Purchase Price $340,000 $469,712 Currently Exercising O'Shea (escrow opened Relocation $52,762 Option Agreement 3/19/03) Loss of Goodwill $25,000 (nothing applicable to Fixtures/Equip $12,450 Purchase Price) Subtotal Consultant Fees $24,500 $15,000 Subtotal $454,712 303 E. Foothill la Option $35,000 Purchase Price $531,000 $774,500 Non City Owned Zerbe ** 2"d Option $35,000 Relocation $75,000 ($60,000 applicable to 3'd Option $25,000 Loss of Goodwill $50,000 Purchase Price if option Consultant Fees $23,500 exercised) Subtotal $95,000 Subtotal $679,500 * Demolition costs, phase 1, 2 and abatement costs not included in the Non -City Owned Properties ** - Expected clean-up costs if property is found to be contaminated will range from $250,000 - $500,000 Proposed Library Site Map (Under new General Plan, site is designated as: Downtown District. New Zoning Use will allow for Commercial/Residential mixed use.) p86o8� 2s _I 1998 kDAIE , 728 N. Dalton, O'Shea Lot Size: 7,497 sq.ft. 27 ` 726 N. Dalton, Ruelas Lot Size: 7,497 sq.ft. 714, 716, 720 N. Dalton, City Owned — Totar Lot Size: 22,503 sq.ft. 303 E. Foothill Blvd., Zerbe Lot Size: 22,499 sq.ft. Total Land Sq.Ft. = 59,996 CODE 2045 FOR PREV. A99M'i 9EE. G.o1_b 2B I 8rH ST S bhWWW /6 b- i /650 St /7 / WIn .0 2 / K.19 O ?D 3220® ., 2/ Q 2/ Q O.... 22 /e .:.:::.. 23 24 /e c) p rr i So /5o Z Z /so 5 /650 St So Q .0 2 / K.19 O 3220® ., p 2/ Q O.... . .:.:::.. 7 p rr i So e� a/ 8 FOOTHILL AZUSA ee M.R. 15-93-96 � /so 5 /650 St /4 /7 ar re /2 IS K.19 O 3220® Q /0 2/ Q t5 9 Zee 5. 7 p rr i So e� a/ eo a z sa 4y E.. .x aaaarrr, BLVD. i PARCEL MAP PM, 53-85 AS COUNW OF Current Informal Bid Policy Agency limit for Public Works Projects - $75,000 Agency limit for Professional and Other Services - $10,r000 Dilemma Agency is mandated to fast track projects Current rules hinder our ability to move quickly Formal bid process adds 5 weeks or more to contract approval Need to align Agency operating rules with Council mandate Solution Increase City Manager's signature authority for Agency to $50,000 for: . Professional Services • Acquisition/Relocation • Appraisals • Architects & Engineering Construction Management • Environmental Testing • Financial Analysis • Property Survey, etc. • Equipment and Supplies • Maintenance and General Services Proposed Procedure Agency's Proposal No Bid ContractI $1 - $14,999.99 Amount Agency's Proposal Informal 3 -Bid $15,000 - $49,999.99 What checks & balances would there be? *Staff would prepare v a quarterly informational item for purchases over $15,000, which would include: • Vendor • Amount of purchase • Item or service purchased REDEVELOPMENT AGENCY CITY OF AZUSA - MAY 10, 2004 REDEVELOPMENT AGENCY CITY OF AZUSA - MAY 10, 2004 ° °�g External�ryFactors��f �n � 3 ;� � :�� t , ;��;w �:, �..,�� x vi m15-, REDEVELOPMENT AGENCY .(qq �, CITY OF AZUSA - MAY 10, 2004 REDEVELOPMENT AGENCY CITY OF AZUSA - MAY 10, 2004 e# ' REDEVELOPMENT AGENCY CITY OF AZUSA - MAY 10, 2004 71 X Agency Policy Considerations b w x�ku I IN rB 0 REDEVELOPMENT AGENCY CITY OF AZUSA - MAY 10, 2004