RA1975/06/1075 -54
ANAHEIM REDEVELOPMENT AGENCY
June 10, 1975, (10:30 A.M.)
Council Chamber
Anaheim City Hall
Adjourned Regular Meeting
PRESENT: AGENCY MEMBERS: Kaywood, Seymour and Thom
ABSENT: AGENCY MEMBERS: Pebley and Sneegas
PRESENT: SECRETARY: Alona M. Hougard
CITY ATTORNEY: Alan R. Watts
REDEVELOPMENT DIRECTOR: Knowlton Fernald
FINANCE DIRECTOR: M. R. Ringer
A quorum of the Agency having been established, Chairman Thom
called the meeting to order at 11 :00 A.M.
MINUTES: Minutes of the Anaheim Redevelopment Agency regular meeting
of June 3, 1975 were approved on motion by Mrs. Kaywood, seconded
by Mr. Seymour. Members Pebley,and Sneegas absent. MOTION CARRIED.
ANAHEIM CIVIC THEATRE: Mr. Fernald reported that the proposal for
remodeling of the former United States National Bank Building to be
used as a Civic Theatre for an interim period will be presented to
the Community Redevelopment Commission at their meeting of June 11,
1975. Although he had originally planned to discuss this further
with the Agency Members at this time, Mr. Fernald requested that
this matter be deferred for one week, pending the recommendation of
the Commission. He further reported that several representatives
_of interested civic and cultural groups are anticipated to attend
the public discussion and therefore suggested that this meeting be
adjourned to 10:30 A.M. of June 17th to provide sufficient time.
RESOLUTION NO. RA75 -29 - AGREEMENT WITH CLAUDE POMEROY AND ASSOCIATES:
Mr. Fernald reported that the Community Redevelopment Commission, at
their meeting held June 4, 1975, considered the proposal from Claude
Pomeroy and Associates to conduct informational slide shows on the
subject of Redevelopment and has recommended that the Agency approve
the proposed agreement, as prepared by the City Attorney's Office.
Mr. Fernald related that the contract term is 90 days, with a
$4,500.00 fee. Mr. Pomeroy would receive a $1,500.00 retainer and
accrue $85.00 per showing, with a total of 36 shows in the 90 -day
.period. The following are controls provided in the contract: that
Redevelopment Staff or Director approve each showing; that the
Agency maintains ability to approve final slides and subject matter
in the presentation. There is a 20 -day termination clause which
can be utilized by either party.
In reply to Mr. Seymour, Mr. Pomeroy stated that he would
actively solicit engagements for the slide - showing as well as
follow leads on invitations given by commissioners, agency members
and other people directly involved with the City. He advised that
he will present this slide exhibit to a group of any size, small or
large, and is committed to presenting it as often as necessary,
since he firmly believes that redevelopment cannot proceed unless
the citizens are knowledgeable of the process and behind it. He
indicated that he would like in this endeav ^r to know that the
Agency will give him their support when ofticial endorsement of
his program might be required.
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' Redevelopment Agency, June 10, 10:30 A.M., Continued:
Mr. Thom suggested that it would be very effective to present
the slide exhibit in the manner that the Police Community Relations
Committee disseminated information, i.e., through small neighbor-
hood meetings. He was of the opinion that. this direction should be
taken and both Mr. Fernald and Mr. Pomeroy concurred.
Mr. Thom also suggested that homeowner groups would be an
important area to cover.
Mr. Pomeroy explained that for the question and answer period,
which will follow the exhibit, he has prepared, with the assistance
of Redevelopment Staff, a list of the most frequently asked ques-
tions and a series of answers have been formulated and placed on
slides. He assured the Agency Members that he did not wish to
respond to citizen's questions without some groundwork to avoid
the possibilities of misinterpretation. He added that he will not
be addressing Redevelopment Projects Alpha or Beta per se in his
slide presentation, but the subject of Redevelopment itself.
At the conclusion of discussion, Mr. Seymour stated that he
felt this proposed expenditure is a very minor sum, especially in
comparison to the Redevelopment Department Budget for the coming
fiscal year. He was further of the opinion that, given the condi-
tions Mr. Pomeroy has outlined, it will be money well invested,
and will yield a high return.
RESOLUTION NO. RA75 -29: Mr. Seymour offered Resolution No. RA75 -29
for adoption, approving the terms and conditions of an agreement
with Claude Pomeroy and Associates:
A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY ACCEPTING THE
TERMS AND CONDITIONS OF AN AGREEMENT FOR CONSULTING SERVICES AND
AUTHORIZING THE EXECUTION THEREOF. (Claude H. Pomeroy)
Roll Call Vote:
AYES: Mrs. Kaywood, Mr. Seymour, and Mr. Thom
NOES: None
ABSENT: Mr. Pebley and Mr. Sneegas
Chairman Thom declared Resolution No. RA -29 duly passed and adopted.
PROJECT ALPHA - CONSULTANT'S REPORTS: Mr. Fernald advised that it is
expected the Consultant's reports for phase one, Project Alpha,
will be published in the next two weeks and the Redevelopment Staff,
Commission and Consultants would like to make a public presentation
of these to both the Agency and the Project Area Committee.
By general consent, the Anaheim Redevelopment Agency determined
they would meet with the Community Redevelopment Commission and
Project Area Committee for Alpha at an evening meeting for the
purpose of receiving the Consultant's reports.
AIR CONDITIONING - CHARTRES RECREATION CENTER: Mr. Fernald reported
that the bids received for air' conditioning installation at the
" Chartres Recreation Center will be presented to the Agency with
recommendation for award of contract at the June 17, 1975, regular
meeting. It is anticipated that construction will begin in early
August.
75 -56
Redevelopment Agency, June 10, 1975, 10:30 A.M., Continued
FINANCIAL REPORT: Mr. Ringer briefed the Agency Members on up -dated
financial information which was presented to the Community Redevel-
opment Commission to assist in their consideration for the first
time of financial needs outside of the operating budget. He
explained that within the next 30 and 60 days respectively, the
Community Redevelopment Commission will be asked to make recom-
mendations regarding the loss of tax revenues experienced by the
Orange Unified and Placentia Unified School Districts, as a result
of Project Alpha.
Using slide transparancies, Mr. Ringer displayed some tentative
budget amounts and emphasized that these figures were not firm. He
indicated that there is included in this tentative budget the sum
of $600,000 for Orange Unified School District and $120,000 for
Placentia Unified (although the figure most recently quoted as the
actual tax loss incurred by Placentia is $199,000 for the two -year
period of Project Alpha).
Mr. Ringer reported that an agreement with Placentia Unified
School District on the basis of a straight cash flow- through is in
preparation by the City Attorney's Office.
Mr. Ringer listed projected expenditures totaling $14,720,000,
and noted that in considering the tentative budget the Agency
Members should look beyond the Two Million Dollars available in
fiscal year 1974 -75, and remain aware that Three and One -Half to
Four Million Dollars will be available in the coming fiscal year,
plus a bonding capacity of up to Fifteen Million Dollars.
Mr. Seymour inquired what would be the maximum leverage for
bonding purposes which could be obtained from the incremental funds.
Mr. Ringer advised that bonding ability is based on the annual
tax flow and that it is considered that $100,000 would be necessary
for each Million Dollars in bonds; the Agency's total bonding capa-
city would appear to be between Fifteen and Twenty Million Dollars.
Mr. Seymour:asked if the amounts to be extended to the Orange
Unified and Placentia Unified School Districts would be a straight
cash transaction or leveraged through bonding.
Mr. Ringer reported that the Orange Unified School District
has requested assistance in school construction, and this would
probably require $60,000 of the Agency's annual tax increment over
a thirty -year period. The Placentia Unified School District and
the Redevelopment Agency will most likely sign an agreement with a
one -year term for flow - through funds to reimburse their loss, and
then review the situation on an annual basis.
In connection with a memorandum outlining his opinion on the
legal ability of the Agency and the School District to put facili-
ties such as a library, park and school together to form a joint
powers bond program, Mr. Watts advised that while he did not think
there would be any problem with the library, there may be some
problems with bond counsel regarding the facility. He indicated
that he would provide Agency Members with copies of said memorandum.
Mr. Seymour indicated that he felt the Orange Unified School
District should be prepared to make some commitment in this arrange-
ment to meet their citizens' needs, and that his attitude towards
any agreement with that governmental agency is predicated upon
their willingness to help.
75 -57
v... Redevelopment Agency, June 10, 1975, 10 :30 A.M., Co n ti nued:
In reply to Mr. Seymour's inquiry as to whether that portion
of tax increment funds to be utilized in financing.the school con -
struction were funds allocated for reimbursement to Orange Unified
School District, Mr. RingQr explained that the Orange Unified
.School District lost an estimated $156,000 the first year as a
° result of Project Alpha, but this loss was replaced 100% through
State ADA funds. The proposal to construct a school is justified
on the basis that the Orange Unified School District will be
housing students from the Project Alpha area. He stated that this
would be financed by $60,000 per year from Project Alpha tax reve-
nue, in exchange for their housing of three hundred students.
At the conclusion of report and discussion, no action was
taken by the Redevelopment Agency.
ADJOURNMENT: Mr. Seymour moved to adjourn to Tuesday, June 17, 1975,
at 10:30 A.M. Mrs. Kaywood seconded the motion. MOTION CARRIED.
ADJOURNED: 11:30 A.M.
SIGNED:
Secretary; Redevelopm nt Agency