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RA1975/07/0175 -66 ANAHEIM COMMUNITY DEVELOPMENT COMMISSION July 1, 1975 (1:00 P.M.) Council Chamber Anaheim City Hall PRESENT: COMMISSIONERS: Kaywood, Seymour, Sneegas (entered 1:06 P.M.) and Thom ABSENT: COMMISSIONERS: Pebley PRESENT: EXECUTIVE DIRECTOR: Keith A. Murdoch SECRETARY: Alona M. Hougard FINANCE DIRECTOR: M. R. Ringer REDEVELOPMENT DIRECTOR: Knowlton Fernald DEPUTY CITY ATTORNEY: Malcolm Slaughter HOUSING AUTHORITY DIRECTOR: Rosario Mattesich Chairman Thom called the meeting of the Anaheim Community Develop- ment Commission to order at 1:00 P.M. for the purpose of sitting as the Anaheim Redevelopment Agency and Anaheim Housing Authority. I. ANAHEIM REDEVELOPMENT AGENCY: The following matters were con- sidered by Anaheim Redevelopment Agency. MINUTES: On motion by Commissioner Kaywood, seconded by Commissioner Thom, the Minutes of the adjourned regular meeting of the Anaheim Redevelopment Agency held June 10, 1975, were approved. Commissioners Pebley and Sneegas absent. MOTION CARRIED. RESOLUTION NO. CDC75 -33 - WORK ORDER BLUE GUM STOR14 DRAIN IMPROVEMENT: Cc Resolution No. CDC75 -33 for adoption. NOS. 854 AND 746 -B - MI mmissioner Thom offered A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY FINDING AND DETERMINING THAT PUBLIC CONVENIENCE AND NECESSITY REQUIRE THE CONSTRUCTION AND COMPLETION OF A PUBLIC IMPROVEMENT, TO WIT: MIRALOMA -BLUE GUM STORM DRAIN IMPROVEMENT, IN THE CITY OF ANAHEIM, WORK ORDERS NOS. 854 AND 746 -B. APPROVING THE DESIGNS, PLANS, PROFILES, DRAWINGS AND SPECIFICATIONS FOR THE CONSTRUCTION OF SAID PUBLIC IMPROVEMENT IN ACCORDANCE WITH SAID PLANS, SPECIFICATIONS, ETC.; AND AUTHORIZING AND DIRECTING THE SECRETARY OF THE ANAHEIM REDEVELOPMENT AGENCY TO PUBLISH A NOTICE INVITING SEALED PROPOSALS FOR THE CONSTRUCTION THEREOF. (Bids to be Opened - July 31, 1975, 2:00 P.M.) ROLL CALL VOTE: AYES: COMMISSIONERS: Kaywood, Seymour and Thom NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Pebley and Sneegas Chairman Thom declared Resolution No. CDC75 -33, duly passed and adopted. RESOLUTION NO. CDC75 -34: Accepting deeds and ordering recordation (southeast corner of Sunshine Way and Miraloma Way): Commissioner Thom offered Resolution No. CDC75 -34 for adoption. A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY ACCEPTING CERTAIN DEEDS AND ORDERING THEIR RECORDATION. (City of Anaheim) ROLL CALL VOTE: AYES: COMMISSIONERS: Kaywood, Seymour and Thom NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Pebley and Sneegas Chairman Thom declared Resolution No. CDC75 -34 duly passed and adopted. 75 -67 Community Development Commission Minutes - July 1, 1 1:00 P.M. Redevelopment Agency Minutes, Continued PROPOSED REDEVELOPMENT AGENCY BUDGET, FISCAL YEAR 1975 -76: The Budget as proposed for Fiscal Year 1975 -76, Account No. 520 -255, Anaheim Redevelopment Agency, in the total amount of $4,000,000 was submitted for consideration by the Agency Members. Commissioner Seymour questioned the amount of $235,632 shown under Account No. 520 -255, Code No. 269 -10 "Sery -City of Anaheim ". Mr. Ringer explained that this account covers staff salaries of the Redevelopment Agency, which are in the General Fund of the City of Anaheim and a monthly bill is prepared to charge the Agency for reimbursement to the General Fund of these salaries. Additionally a charge of 14.4% of the $235,632 covers other City services rendered the Redevelopment Agency. On motion by Commissioner Seymour, seconded by Commissioner Kaywood, the Anaheim Redevelopment Agency approved the budget submitted in the amount of $4,000,000 for Fiscal Year 1975 -76. Commissioners Pebley and Sneegas absent. MOTION CARRIED. P.M.) Commissioner Sneegas entered the Council Chamber. (1:06 PROGRESS REPORT - PROPOSED AGREEMENT BETWEEN THE AGENCY AND ORANGE UNIFIED SCHOOL DISTRICT - CONSTRUCTION OF ELEMENTARY SCHOOL: Mr. Ringer reported that he had reviewed a draft of the agreement proposed between the Anaheim Redevelopment Agency and Orange Unified School District concerning a payment of $570,000 in redevel- opment funds for construction of an elementary school at Imperial Highway and Nohl Ranch Road with Mr. Platt, the Business Manager of said School District. He reported on some changes of which the Agency should be aware, particularly that the School District is now discussing the possibility of portable classrooms. .-- Mr. Ringer further advised that his previous statement regard- ing the loss of tax revenues to the Orange Unified School District as a result of Project Alpha being zero was incorrect; that they had lost $34,500 in property taxes for the first two years of Redevelopment Project Alpha which were not made up by the State. Because of the tax override recently approved, boosting the tax amount from $1.14 to $2.11, a loss of $95,700 is estimated for the coming year. He advised that the Agency will be amortizing $570,000 from five to ten years depending on the actual tax loss. Mr. Ringer also advised that the District conducted a bond election in March of 1974 for $19,000,000 to be used to construct new classrooms and remodel existing schools. This bond issue failed to receive the necessary 2/3 majority for general obligation bonds, but did receive a 57% "yes" vote, 9,306 out of 16,262 votes cast. The issue did carry a majority of the 32% voter turnout. Mr. Ringer concluded that he would recommend the City Manager and City Attorney review the proposed agreement and perhaps a consideration for future schools should be included since the draft agreement includes no discussion or proposal for future housing of students. He advised that the School District is anxious to resolve this agreement at their next meeting to be held July 10, 1975. Commissioner Seymour remarked that this is the agreement proposed to set a basis for establishing a joint powers agreement which would finance the school and other facilities, which state- ment Mr. Ringer corroborated, adding that the intent was discussed of providing one elementary school with the City's contribution of $570,000 against a $1,000,000 cost. The Agency Members indicated that this is not the proposal which they had discussed. Commissioner Kaywood stated that tem- porary facilities would be completely unacceptable to her. Commissioner Seymour recalled that a permanent elementary school 75 -G8 Community Development Commission Minutes - July 1, 1975, 1 :00 P.M. Redevelopment Agency Minutes, Continued facility was proposed for construction and the agreement included a long -range plan for housing future students and financing other facilities. Commissioner Seymour stated it appears now that the Orange Unified S�iiool Listrict is offer.; ;q one fo_,:ility, whi::h .: would be temporary in nature, for a front -end charge of $570,000 in Redevelopment Agency funds, which would not be acceptable to him at all. He suggested that if this is the manner in which the Orange Unified School District wishes to pursue the situation, he felt the Agency should reimburse them annually for the amount of taxes lost and leave them to resolve their own problems. He further stated that if the School District is unable to solve their problems and provide housing and school services for Anaheim residents, perhaps the City of Anaheim should then seek legislation to realign school district boundaries. Commissioner Kaywood agreed that if the School District is unable to service the children of Anaheim residents, the City of Anaheim will have to look after their educational needs. She advised that she had asked Mr. Platt what amount of tax dollars the School District receives from properties located within the boundaries of Anaheim and to date has not received this information. She voiced concern that the proposed agreement was drafted differ- ently from what she felt had been made very clear in preliminary discussions. She stated that this proposed school site is in a rapidly growing area and that she could see no justification for portable classrooms. Mr. Ringer interjected into the discussion the possibility that the School District Board of Trustees had not yet seen this draft agreement. At the conclusion of discussion, Chairman Thom suggested that the three agencies, i.e., the Orange Unified School District Board of Trustees, Anaheim Redevelopment Agency, and Community Redevelop- ment Commission get together for further discussion, however he pointed out that if the Orange Unified School District is looking towards construction of portable or temporary facilities, then there is no reason to consider further meetings. ANNOUNCEMENT - FORTHCOMING PROJECT ALPHA MEETINGS: Mr. Fernald informed the Agency Members that a meeting has been scheduled for July 23, 1975, 7:30 P.M. at the Chartres Recreation Center, at which time the Planning Consultant will make a presentation of Phase I reports and further present some illustrated plans of what downtown Anaheim might look like based on these recommendations. He reported that all Community Redevelopment Commission, Planning Commission, and Project Area Committee - Alpha Members, as well as the Anaheim Redevelopment Agency Members will be invited to attend. Mr. Fernald further reported that the Project Area Committee for Alpha will conduct their organizational meeting this evening in the Redevelopment Department Conference Room, 119 South Claudina Street. EXTENSION OF TIME - EXCLUSIVE RIGHT TO NEGOTI AGREEMENT - DR. WILLIAM BRASHEARS: Mr. Fernald reported that the Community Redevelopment Commission recommends to the Agency that Dr. Brashears' exclusive right to negotiate agreement be extended to 90 days from June 25, 1975. (Staff report dated June 23, 1975 together with Exhibit "A" attached, was previously distributed to Agency Members and on file in the office of the City Clerk.) Dr. William Brashears, 1400 North Harbor Boulevard, Fullerton, submitted copies of his letter dated June 12, 1975 wherein he requests the extension of time under consideration. He advised that the principle reason for this request is the fact that the alignment of streets has not definitely been established. He related that his request originally is for an extension of 90 days beyond the tim that thz street pattern - lignment is finalized 75 -69 Comm unity Development Commission Minu - July 1, 1 975, 1:00 P.M. Redevelopment Agency Minute Continued with the consultants. He stated that he could work within a framework of 90 days, but understands it will be 30 to 60 days before the cDnst present their recommendations to the Agency. Dr. Brashears advised that he is actively engaged in drawing plans for an 11 -story office building and in negotiations with prospective tenants who have asked some pointed questions about the ultimate street patterns. Commissioner.Thom indicated that his only concern was that it I is difficult to extend an agreement 90 days beyond a date not yet known. Mr. Fernald advised that the consultants show another 90 days to completion, however on July 23, 1975, the plans will be presented and it is hoped that these will be reduced to a single plan which has good community support, but even the mechanism of adoption will take some further time. RESOLUTION NO. CDC75 -35: Commissioner Seymour offered Resolution No. CDC75 -35 for adoption, extending the exclusive right to negoti- ate agreement with Dr. William Brashears for a period of 90 days from July 1, 1975. A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION ACTING AS THE ANAHEIM REDEVELOPMENT AGENCY APPROVING THE TERMS AND CONDITIONS OF A FIRST AMENDMENT TO AGREEMENT GRANTING AN EXCLUSIVE RIGHT TO NEGOTIATE FOR THE REDEVELOPMENT OF CERTAIN REAL PROPERTY. ROLL CALL VOTE: AYES: COMMISSIONERS: Kaywood, Seymour, Sneegas and Thom NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Pebley Chairman Thom declared Resolution No. CDC75 -35 duly passed and adopted. There bein-j no further business before the Anaheim Redevelop- ment Agency, the Agency Members convened as the Anaheim Housing Authority. II. ANAHEIM HOUSING AUTHORITY: The following matters were considered by the Anaheim Housing Authority: PROPOSED 1975 -76 BUDGET FOR THE ANAHEIM HOUSING AUTHORITY: The budget as proposed for Fiscal Year 1975 -76, Account No. 590 -259, in the total amount of $114,098 was submitted for consideration. Mr. Fernald reported that this budget was originally set up when it was hoped that the Authority could obtain 400 units under Section 8, however, the application mailed requests only 200 units on the advice of HUD. The final determination as to whether or not the Anaheim Housing Authority has been successful in obtaining this number of units will be known in a few more days. Mr. Fernald reported that with the revised program, since it was not known exactly what the income will be, the cost will be scheduled to come as close to the budget as possible. He advised that it might be necessary that some redevelopment funds may have to be used to supplement the amount received. In reply to Commissioner Seymour's question as to how much in redevelopment funds are anticipated to be used to supplement this budget, Mr. Fernald advised that when originally proposed, it was thought this budget would be a 32% operating budget on top of the number of units received, in which case redevelopment funds would have had to support the program to some extent. However, with the 82$ operating budget now allowed plus start -up costs of $275 per unit, it appears the budget will amount to $70,000 for the first 75 -70 Community Development Commission Minutes - July 1, 1975, 1:00 P.M. Housing Authority Minutes, Continued year. It is anticipated that expenses and salaries can be scheduled within that budget. There is, however, some problem in the start- up period since the 82% is obtained only after the units are occupied. It i- fur'L::E:r difficult 'Lo estima';:e eta: exact amount of cash to be received in the start -up year. Hopefully the Anaheim Housing Authority will have all units out in less than a year which will increase the income. He advised that a fairly vigorous approach is planned since they hope to obtain some additional units unused by other agencies later in the year. Commissioner Seymour stated that he has no problem with the fact that the exact dollar amount for the budget is not known, and would be willing to adopt any number which sounds reasonable. However, he stated he is concerned over approving a specific line item type budget, wherein, whether 100 or 400 units are eventually approved, the Housing Authority is budgeted and therefore authorized to spend the same amount of money. He inquired whether personnel requirements would be the same for 100 or 400 units. Mr. Mattesich responded in regard to personnel that he would like to add manpower as slowly as possible, but that this type of program does require a concentration of activity at its inception. He advised that he felt there is no question but that the Anaheim Housing Authority would be granted approval for 200 units, it is just a matter of receiving official commitment for this amount. Commissioner Seymour inquired why a budget was not prepared on the basis of 200 units and Mr. Mattesich replied that this budget was drawn up long before the tentative commitment to 200 units had been made. Commissioner Seymour stated that he would not want to approve a budget based on 200 to 400 units when it is fairly apparent that only 200.would be approved. He felt that a budget should be pre- pared on that basis. Mr.. Fernald suggested that the Housing Authority be frozen at 22 employee positions until such time as the budget might be revised and resubmitted for approval by the Anaheim Housing Authority. On motion Commissioner Seymour, seconded by Commissioner Kaywood, the proposed budget for Fiscal Year 1975 -76, in the total amount of $114,098 was approved, with personnel within said budget frozen at 22 positions, pending submission of a revised budget in 30 days, prepared on the basis of administering 200 units. Commissioner Pebley absent. MOTION CARRIED. There being no further business before either the Anaheim Redevelopment Agency or Anaheim Housing Authority, Chairman Thom entertained a motion to adjourn the Anaheim Community Development Commission. ADJOURNMENT: Commissioner Kaywood moved to adjourn to Tuesday, July 8, 1975, 1:00 P.M. Commissioner Seymour seconded the motion. Commissioner Pebley absent. MOTION CARRIED. ADJOURNED: 1:40 P.M. SIGNED i . a /-)? , a4o6 Secretary, Anahei Community Deve opment Commiss