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HomeMy WebLinkAbout00 AGENDA 12-20-94 AGENDA CITY COUNCIL SPECIAL MEETING CITY OF TUSTIN DECEMBER 20, 1994 - 6:00 P.M. CALL TO ORDER / PLEDGE OF ALLEGIANCE ROLL CALL PUBLIC INPUT- At this time members of the public may address the City Council regarding any items not on the agenda and within the subject matter jurisdiction of the City Council (NO ACTION can be taken on off-agenda items unless authorized by law). If you wish to address the City Council on any matter, please fill out one of the blue forms located on the speaker's podium and submit to the City Clerk so that your remarks on the tape recording of the meeting can be attributed to you. When you start to address the City Council, please state your full name and address for the record. REGULAR BUSINESS 1. ORANGE COUNTY BANKRUPTCY IMPACT ON THE CITY OF TUSTIN The City Manager will give a verbal presentation regarding the impact of the Orange County bankruptcy on the City of Tustin. Recommendation: Pleasure of the City Council. CLOSED SESSION - The City Council will convene in closed session to confer with Nick Nichols, the City's labor negotiator. The employee organizations involved in potential negotiations are Tustin Municipal Employees Association and Tustin Police Officers Association. Unrepresented employees are management and confidential units. ADJOURNMENT- The next regular meeting of the City Council is scheduled for Tuesday, J.anuary 3, 1995, at 7:00 p.m. in the Council Chambers at 300 Centennial Way. Council Agenda Special Meeting December 20, 1994 AGENDA TUSTIN COMMUNITY REDEVELOPMENT AGENCY SPECIAL MEETING CITY OF TUSTIN DECEMBER 20, 1994 CALL TO ORDER ROLL CALL CLOSED SESSION - The members of the Agency will recess to closed session to confer with General Counsel regarding: Real Property Negotiations about 1021 Edinger Avenue, Tustin, California. The parties involved are Case-Swayne Co., Inc., 1021 Edinger Avenue, a limited partnership; Gannett Outdoor of Southern California; and the Tustin Community Redevelopment Agency. The matters to be discussed include price and terms of property purchase. ADJOURNMENT- The next regular meeting of the Redevelopment Agency, is scheduled for Tuesday, January 3, 1995, at 7:00 p.m. in the Council Chambers at 300 Centennial Way. Redevelopment Agency Agenda Special Meeting December 20, 1994 ORANGE COUNTY BANKRUPTCY POTENTIAL IMPACTS ON THE CITY OF TUSTIN ProDerty tax allocations to the General Fund, RedeVel0Dment Agency, Assessment Districts and Landscape and Street Lighting District are due the week of December 26. · Will the County delay payments? Will the State mandate or will the bankruptcy court agree that property tax revenue be redirected to school districts in order to make schools whole (i.e. cover their losses)? City has adequate reserves to cover upcoming redevelopment and assessment district bond payments, but using reserves will cause loss of interest income. Delays or uncertainty about future property tax allocations will cause refinancing of assessment district bonds to be delayed or canceled (meaning that Tustin Ranch residents may not receive a reduction in annual assessments). It would be more difficult and costly to finance the City's six million dollar share for the Edinger/Jamboree Road overpass project. 1.9 million dollars held by the Orange County Transportation Authority for the Tustin rail station project appears to be in the Orange County Investment Pool. Since the funds are State bond proceeds, there should be no loss; however, there are no clear answers at this point. \ The City has financing arrangements with the Orange County Water District for construction of two new water wells and the 17th Street nitrate plant (currently under construction). It is not known at this time if the City's low interest funding Bankruptcy Impacts Page two arrangement will have to be modified. A possible implication could be the City having to finance the projects with Water Enterprise Capital Fund reserves. This could delay other water projects and/or necessitate increasing the size of future water bond issues which impacts water rates charged by the City. It is possible that due to ~the bankruptcy, the Orange County Water District will increase water replenishment fees more than otherwise had been anticipated. This will impact Tustin's Water Enterprise Fund operating costs and water rates. The proposed agreement with the County to expand library hours by one day per week could be delayed because of the County wanting to defer action on everything except critical items. The County might also want to apply a large overhead charge to the City for expanded hours. It is unclear at this point how the investment pool loss might affect future joint transportation projects with the Transportation Corridor Agency, the County, the cities of Irvine and Santa Ana, and the Orange County Transportation Agency (OCTA) . OCTA has indicated that its January 1995 allocation of Measure M turnback funds to cities will be delayed thirty days. At this point, there is a possibility that Measure M discretionary funds will be frozen. These funds are allocated on a competitive basis. The City of Tustin has several projects for which Measure M discretionary funds will be sought. Bankruptcy Impacts Page three The County is holding approximately $151,000 in federal Community Development Block Grant (CDBG) funds allocated to the City before it became a direct entitlement city. It appears these funds are in the County investment pool. The City is a member of the Orange County Risk Management Authority for self-insured programs. There is a possibility that one or more cities in the Authority will file claims against the Authority's pool to partially offset their county investment pool losses. If claims must be paid, it could impact future annual contributions made by cities to the self- insured pool. The County has decided to delay action on the 800 megahertz police/public works communications system for thirty (30) days. The City has approximately $700,000 on deposit with the County for the City's share of the "backbone" system. It is not clear at this point as to whether the funds were placed in the County investment pool and if so, would the City take a loss. These funds clearly were held in trust by the County for the communications system; not for investment in the pool. The more pressing problem with delaying the radio system is the need to replace police radios. Due to the age of the current radios, the City cannot wait for an extended period of time for the County to act on the Motorola bid. The other dimension to the County bankruptcy is what the State will or will not do to help Orange County agencies. Some public agencies are going to have serious financial problems Bankruptcy Impacts Page four because of the bankruptcy. The State probably' will not let school districts suffer significant financial losses. Compounding the problem is the State's own financial problems. Who will be the deep pocket will take time to sort out. WAH oc impact, wah