Loading...
HomeMy WebLinkAbout2005-003 CRA 2:24 PM 5/31/05 LES RESOLUTION NO. CRA 2005-003 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ADOPTING THE FISCAL YEAR 2005-2006 BUDGET BE IT RESOLVED BY THE MEMBERS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The Community Redevelopment Agency of the City of Santa Ana conclusively finds, determines and declares as follows: a. Pursuant to Health & Safety Code S 33606, the Community Redevelopment Agency of the City of Santa Ana ("Agency") must adopt an annual budget. b. The draft budget for fiscal year 2005-2006 presented to the Agency is designed to further implement the Agency's mandate to reduce or eliminate the physical and economic conditions that cause blight within the City of Santa Ana. The Projects are consistent with the 5-Year Implementation Plan, the Redevelopment Plans (as amended) and the reduction and/or elimination of blight. c. The Legislature has concluded that the term "redevelopment" includes provision for open-space types of use, such as streets and other public grounds and space, and the replanning or redesign of stagnant or improperly utilized areas which exist because of defective or inadequate street layout. d. The Agency hereby finds and determines that the planning and administrative expenses to be paid from the Low and Moderate Income Housing Fund for each redevelopment project are necessary for the production, improvement, or preservation of low- and moderate-income housing pursuant to Health and Safety Code S 33334.3(d) and are not disproportionate to the amounts budgeted for the costs of production, improvement or preservation of that housing. Such costs are necessary and proportionate to the amount proposed for actual housing assistance activities for the year. e. The Agency hereby finds that the planning and administrative expensesbudgeted last fiscal year from the Low and Moderate Income Housing Fund were necessary and appropriate for the production, improvement, or preservation of low- and moderate-income housing pursuant to Health and Safety Code S 33334.3(d) and were not disproportionate to the amounts actually spent last year for the costs of production, improvement or preservation of that housing. f. The Agency has retained certain interests in real property acquired using moneys from the Low and Moderate Income Housing Fund, and has not Resolution No. eRA 2005-003 Page 1 of 22 initiated activities consistent with the development of the property for the development of housing affordable to persons and families of low and moderate income within the statutory five (5) year period. The addresses of these properties are as follows: 602 N. Garfield; 609 N. Garfield; 619 N. Garfield; 605-607 Lacy; 606 Lacy; 614-618 Lacy; 601-603 E. Sixth Street; 609 N. Minter; and 335-3351/2 E. McFadden. The Agency intends that these properties shall be used for the development of housing affordable to persons and families of low and moderate income, and hereby requests a five (5) year extension in furtherance of said purpose pursuant to Health and Safety Code 9 33334.16. g. The Agency adopts by reference and incorporates as though fully set forth herein each and every finding contained in the supporting documentation which accompanies the draft budget for fiscal year 2005-2006, including but not limited to the May 31, 2005 memorandum from the Executive Director to the City Manager, the letter from the City Manager to the Honorable Mayor and City Council Members, and the June 6, 2005 staff report from the Executive Director to the Agency, together with all exhibits attached to said documents. h. The draft budget for fiscal year 2005-2006, together with the supporting documentation presented to the Agency, complies in all respects with the requirements of the Community Redevelopment Law, including but not limited to Health & Safety Code 9 33606. i. For those expenditures proposed which are outside a project area in the draft budget for fiscal year 2005-2006, the Agency finds and declares that such expenditures will be of benefit to the project area. This finding is made pursuant to Health & Safety Code 9 33334.2(g)(1). j. The Agency finds and declares, pursuant to Health & Safety Code 9 33420.2, that because of the magnitude and severity of the graffiti within its project areas, any actions that the agency determines are necessary to remove graffiti from public or private property may be taken in order to effectuate the purposes of the redevelopment plan, and such removal actions shall assist with the elimination of blight, as defined in section 33031. k. The Agency finds and declares, pursuant to Health & Safety Code 933445 that certain publicly owned improvements shall be constructed or improved, financed partially or wholly, as determined by the Executive Director, with Agency funds within or without the project areas, thereby constituting debt of the Agency. The legislative body has determined that the facilities, structures or other improvements are of benefit to the project area or the immediate neighborhood in which the project is located; no other reasonable means of financing the buildings, facilities, structures, or other improvements are available to the community; and the payment of funds for the cost of the facilities, structures or other improvements will assist in the elimination of one of more blighting conditions inside the project area or provide housing for low- or moderate-income persons, and is consistent with the Resolution No. eRA 2005-003 Page 2 of 22 2:24 PM 5131/05 LES implementation plan adopted by the Agency pursuant to Health & Safety Code 933490. I. The Agency has reviewed the Cooperative Agreement between the Agency and the City and hereby updates and reaffirms said Agreement. Section 2. The fiscal year 2005-2006 budget of the Community Redevelopment Agency of the City of Santa Ana is hereby approved and adopted pursuant to Health & Safety Code 9 33606. Section 3. This Resolution shall take effect immediately upon its adoption by the Agency Board, and the Agency Secretary shall attest to and certify the vote adopting this Resolution. ADOPTED this Q!h_ day of June, 2005. APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: '.~~ (.m-~ Lisa E. Storck Assistant Counsel AYES: Boardmembers: Alvarez. Bustamante. Bist. Christv. Garcia. Pulido. Solorio (7) NOES: Boardmembers: None (0) ABSTAIN: Boardmembers: None (0) NOT PRESENT: Boardmembers: None (0) Resolution No. eRA 2005-003 Page 3 of 22 CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. 2005-003 to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on June 6. 2005. ~--~~:>, ,~~' ~ecordin;~ecretary, /71' / Community Redevelopment Agency City of Santa Ana Date: fz-~/c <) Resolution No. eRA 2005-003 Page 4 of 22 MEMORANDUM ~ ~ To: City Manager Date: May 31, 2005 From: Executive Director Community Development Agency ,Subject: COMMUNITY DEVELOPMENT AGENCY 2005-2006 PROPOSED ANNUAL BUDGET We are pleased to present the Community Development Agency's FY 2005-2006 budget for your review. The Agency's overall budget has decreased by 1.3% due mainly to a decrease in the Federal Empowerment Zone allocation, and a decrease in the overall interest earnings. In the 2005-2006 fiscal year, the principal effort of the Community Development Agency will be focused upon the expansion and improvement of the City's business, industrial, and residential stock to the extent resources are available to effectuate this effort. The proposed budget reflects the Agency's commitment to neighborhood improvements with $6,816,950 dedicated to residential improvements via loans and grants. The Agency continues to encourage and facilitate the enhancement of underutilized substandard areas of the City and to support neighborhood associations to ensure the long-term commitment, investment, and stabilization of neighborhoods. The Agency's expected accomplishments in the 2004-2005 fiscal year are highlighted as follows: FY 2004-2005 ACCOMPLISHMENTS · Completed the zone change to include the expansion area for the auto mall and secured approval of DDA for BMW expansion and commenced construction. · Coordinated with the Building and Plaming Agency to initiate the specific plan for the Santa Ana Blvd. development area. . Implemented a multi-agency cooperative approach to addressing the jobslhousing imbalance for Santa Ana through an Employer Assisted Housing program. . Initiated the expansions of Bowers Museum and Discovery Science Center. . Initiated negotiations with Steadfast for the land exchange to benefit the Bowers expansion. Resolution No. eRA 2005-003 Page 5 of 22 . Advocated for the preservation and enhancement of the state Enterprise Zone program. . Initiated constmction of improvements to Festival Hall. . Negotiated the development of the Nexus project at Hutton Center. . Coordinated the submission of the Five-year Implementation Plan. . Coordinated the submission of'the Five-year HUD Consolidated Plan. . Facilitated the merging of Santa Ana Redevelopment project areas. . Initiated the Gateway Art Wall project at the Depot. . Initiated the construction of the MetroLink Pedestrian Bridge project at the Depot. . Completed the Historic Renovation of the Phillips-Hutton Building and created Class-A office space for three tenants. . Strengthened Santa Ana WIB/Y outh Council funded programs to ensure they meet the needs of Santa Ana Youth. . Completed constmction of San Miguel Residences. . Supported the rehabilitation and conversion of Santiago Villas from a motel to 89 Senior Residential Housing units. FY 2005-2006 PRIORITY OBJECTIVES . Promote and facilitate the growth of arts and culture by continuing the development of the museum district and expansions of Bowers Museum and Discovery Science Center. . Complete construction of Phase I and II Live/Work units for Santiago Street Lofts. . Finalize a Specific Plan in order to begin the development of new housing opportunities in the Santa Ana Boulevard area. . Negotiate an Adaptive Reuse Development for the Historic YMCA. Resolution No. eRA 2005-003 Page 6 of 22 . Preserve the Enterprise Zone program and advocate for the enhancement of the program through extension legislation. . Strengthen services for youth at the Santa Ana WORK Center and expand linkages with non-WIA funded providers to develop a comprehensive "All Youth One System." . Complete construction of the Digital Media Center. . Initiate Phase III of the Olson LivelWork Lofts. . Implement a multi step approach to addressing the jobslhousing imbalance for Santa Ana through the development of an Employer Assisted Housing Program. . Explore opportunities for alternate resources for the Community Development Agency through research and application of grants. . Facilitate the expansion and enhancement of the Santa Ana Auto Mall . Implement security strengthening measures at the DEPOT . Modernize the parking structure operating equipment. The $85,256, I 25 Community Development Agency annual budget reflects a number of revenue sources including $40,207,625 in tax increment revenue, which represents 47.2 percent of the total budget and $26,520,700 or 3 I. I percent from the federal Housing Voucher Program. Of the Agency's proposed expenditures for FY 05-06, 25.8 percent is dedicated toward existing debt service and outstanding obligations; 21.4 percent for the administration of Agency operations; 28.5 percent for the HUD Voucher Program; I 1.4 percent for payments to subagents and other agencies; 6.9 percent to the implementation of capital projects; and 6 percent to commercial and residential loans and rebates. While limited tax increment revenues have impacted the number of capital projects funded, infrastructure-related improvements throughout the project areas continue to be emphasized as revenues permit. The 2005-2006 budget will continue to provide the resources to assist the City in achieving ", go.!. i"e.(JEOO '0' '"pport ill ,,, f"<mo',,'oo. Patrici C. Whitaker Resolution No. eRA 2005-003 Page 7 of 22 MAYOR Miguel A. Pulido MAYOR PRO TEM Lisa Bi~t COUNCIL MEMBERS Claudia C. Alvarez Carlos Buslamante Alberta D. Christy Mike Garcia Jose Solorio ~ ~ CITY OF SANTA ANA CITY MANAGER David N. Ream CITY AITORNEY Joseph W. Fletcher CLERK OF THE COUNCIL Patricia E. Healy 20 CIVIC CENTER PLAZA' P.O. BOX 1988 SANTA ANA, CALIFORNIA 92702 June 6, 2005 Honorable Mayor and City Council Members: We are pleased to present the budget for the City of Santa Ana for the 2005-2006 fiscal year. This budget reflects the implementation of our long-range strategic planning process that established the foundation for leading the City towards fulfilling its goals. This approach of combining our strategic plan with our annual financial plan for the operations and capital improvements enables us to direct our resources toward those programs, projects and activities that have the greatest potential for successfully achieving our vision of being: "The dynamic urban center of Orange County acclaimed for our: . Investment in children, . Neighborhood pride, . . Enriching cultural experiences, . Appreciation of diversity, . Thriving economic climate, . Quality government services, and . Leadership among California cities." Our purpose statement, which provides a description of why the organization exists, is: "To provide quality service to enhance the safety, livability and prosperity of our community." The City also defined the following 12 city-wide goals that must be accomplished in order to achieve our vision: . Ensure a safe community; . Be a catalyst for the positive development of young people; . Foster neighborhood pride and community understanding; . Provide and maintain first-rate infrastructure and community facilities; . Ensure an attractive and well-maintained city; . Create an environment that stimulates the growth of arts and cultural opportunities; . Recruit and retain a highly-skilled and diverse work force; . Ensure the City's long-term financial ability to deliver quality services; . Attract and retain a prosperous business community; . Optimize workforce effectiveness through training, technology, equipment, and facilities; . Develop and continuously improve systems to assure high-quality services to customers; and . Assume a leadership role in regional issues of primary importance to Santa Ana. Resolution No. eRA 2005-003 Page 8 of 22 CS l% PrOl!ram Hil!hlil!hts The 2005-2006 fiscal year budget wiU enable the City to fulfiU its purpose of providing quality service to enhance the safety, livability and prosperity of our community. m light of this purpose, this budget emphasizes public safety, quality development standards, effective community-driven code enforcement, and a positive partnership with the business and educational communities as its external priorities; while quality customer service and sound internal systems serve as internal priorities. Given these objectives, in 2005-2006 the City will: · Continue to offer programs and services to provide youth with supervised, positive after school experiences; · Provide additional leisure time opportunities to residents by increasing the number of self- sustaining adult and youth classes; · Conclude the $1.5 million major renovation of the El Salvador Park Recreation Center and complete design and begin construction of the $2.5 million renovation of the Jerome Recreation Center; · Design and construct the Delhi Neighborhood street improvements and coordinate the design and construction of landscape park improvements at Delhi Park; · Begin construction of the Edinger Avenue Widening Proj ect between Ritchey Street and Redhill Avenue; complete acquisition for intersection improvements at Fairview and MacArthur and begin design for the expansion of the First Street Bridge from four to six lanes; · Allocate $4.2 million to begin the reconstruction of three major arterials: McFadden Avenue, Broadway Avenue and Civic Center Drive; · Begin design for the reconstruetion of portions of 12 arterials: Bristol, Edinger, First, Flower, Fourth, Main Santa Clara, Segerstrom, Seventeenth, Standard Tustin and Warner; · Invest in upgrading and replacing critical infrastructure components by dedicating $2.3 million in capital improvements through the Sewer Enterprise and $2.5 million in water system improvements; · Enhance the development of both the Main Street Corridor and the Museum District by facilitating the construction of the grant and privately funded, 30,000 square foot expansion of the Bowers Museum and the groundbreaking for a mixed-use development project with 44 courtyard residential units above neighborhood-serving retail uses fronting on Main Street; · Continue efforts to attract artists, quality restaurants, appropriate retail amenities, and complementary development in the Artists Village; · Prepare new parking and development standards for the Downtown residential projects; · Support the City's economic base by facilitating the expansion and redesign of the Main Place Mall; 2 Resolution No. eRA 2005-003 Page 9 of 22 . Explore revenue ralsmg opportunities including the institution of a Community Facilities District to create a funding source for infrastructure improvements and operations enhancements necessary to support new large development projects; · Finalize the residential development standards on both a city-wide and historic neighborhood basis; · Conduct planning studies for Santa Ana Boulevard and the East First and Fourth Street Corridor; · Reinforce the City's internal systems by improving data systems with funding for the City's strategic technology plan; . Continue the implementation of our Total Quality Service philosophy; · Provide a leadership role in enhancing the region's domestic preparedness by implementing the second year of the Urban Area Security Initiative grant awarded to Santa Ana as the Core City to ensure that all fIrst responders have adequate equipment and systems to prevent, respond to and recover from, acts of terrorism, · Facilitate the relocation and construction of the Fourth District Court of Appeal Facility in the Civic Center by fInancing, designing, and constructing a 300 space three-level parking structure in the City Hall Super Block Parking Lot, and · Partner with the Orange County Transportation Authority in its efforts to extend the expiration of Measure M, the half-cent local sales tax dedicated to funding street and transit improvement projects. Financial Overview The City continues to address the challenge of meeting demands that exceed resources in a financial environment that has been dominated by the actions of the State in two major areas: increasing retirement costs and diverting local government revenues. Over the past two years the City has been required to absorb previously unanticipated signifIcant increases in costs due to the poor management of investments by the state-run retirement system. The direct impact of these investment losses by the State was an increase in expenditures in the General Fund of $11.8 million in 2004-2005 and an additional $4.1 million for the 2005-2006 fIscal year. As a comparison, the actuarial prepared by the State in 2001 stated that the projection of surpluses in the City's accounts would support the retirement system without requiring a contribution to the fund for 67 years for the general employees and 32 years for our safety employees. To ameliorate a portion of the impact of this action by the State, the City has requested a recalculation of the rate based on changes in the term of the payments to the system, which has resulted in a reduction of $1 million for the coming year. Further, the State's approach to addressing its own fiscal crisis continues to diminish the City's resources through reductions in revenues and increases in expenditures. In an effort to resolve a projected $17 billion structural budget defIcit in 2004-2005, the State again targeted City revenues as a part of the solution to its problem. In response, the councils and staffs of cities throughout the State worked together with the League of California Cities to take the actions necessary to place a measure on the November ballot that would protect local government revenues from being diverted by the Resolution No. eRA 2005-003 Page 10 of 22 3 State. During the course of a number of months, a compromise proposal was reached and endorsed by the Governor. As a result, Proposition I A was placed on the ballot and approved by the voters in November 2004. Although the passage of this measure limited the ability of the State to divert future local government revenues, it allowed the reallocation of an additional $3.0 million of the City's property tax revenues to the State for the Educational Revenue Augmentation Fund (ERAF) in both the 2004-2005 and 2005-2006 fiscal years; this results in a total of $10 million in General Fund property tax reductions for the coming fiscal year which will be coupled with another $3.4 million diverted from redevelopment tax increment revenues. Over the past 15 years, the State has: . reallocated a cumulative total of approximately $66.7 million of City property tax for ERAF payments; . redirected a total of $14 million of redevelopment funds for ERAF payments; . postponed the reimbursements for state mandated programs which constitutes 1.5 million in deferred revenues for the General Fund; and . retained 100 percent of cigarette tax revenue, which constitutes an annual loss of approximately $580,000; . suspended payment of $2.1 million in Traffic Relief Congestion Program (proposition 42) Funds in 2003-2004 and 2005-2006. The cumulative effect of the budget related legislative actions over the past 15 years has been a decrease of$I13,075,610 from City resources. Budl!et Overview The State's actions to address its fiscal crisis, coupled with the impact of the investment losses in the State-run retirement system, have resulted in a pronounced impact on the City's budget. Given this financial environment, our efforts in preparing the proposed 2005-2006 fiscal year budget have been focused on resolving the dilemma of meeting the demands for services and infrastructure improvements while coping with declining revenues and increased retirement system costs. Specifically, the challenge of balancing the 2005-2006 General Fund budget was to address a projected deficit resulting from expenditures exceeding revenues by approximately $23 million. This budget proposal responds to that challenge through a balanced approach of increasing revenues and decreasing expenditures. The proposed 2005-2006 budget of $404,220,000, includes a General Fund that totals $197,803,660, without including redevelopment pass-throughs. This budget incorporates a cost of services adjustment of five percent in general and safety related fees and 4 percent in the water rate. In terms of expenditures, the General Fund budget supports the functions most commonly associated with city government: police, fire, recreation, library, planning and building, street maintenance, and general city administration. These services are being provided to an increasing population; according to the State Department of Finance, the population of the City in 2004 is 351,697 which constitutes a 55 percent increase over the past twenty years. Although the City's population has substantially increased over that time period, we have reduced our overall supervisory and management positions by over 20 percent. The proposed budget reduces the managerial workforce by one additional position which brings the total workforce allocation to 1,713. This workforce figure equates to a ration of 4.8 employees per 1,000 residents and demonstrates a significant improvement in Resolution No. eRA 2005-003 Page 11 of 22 4 operational efficiencies over the past several years; in FY 1986-87, the ratio was 7.5 employees per 1,000 residents. Though a combination of reductions in our workforce, maintaining a number of positions vacant and generating savings through systems improvements resulting from our continuous improvement efforts, the City continues to maintain its position of being the most efficient at providing services when compared to the II largest cities in California and the 100 largest cities in the country. Goals Overview This fiscal year the City departments will continue to consolidate and align their efforts toward reaching our vision. The following is a synopsis of the activities, programs and projects incorporated in our FY 2005-2006 efforts to meet each of these goals. A. Ensure a Safe Community In the 2005-2006 fiscal year, the City will continue to dedicate significant resources to the Police, Fire, Public Works, and Planning and Building Agencies, which are identified as having primary responsibility for attaining the goal of ensuring a safe community. The City demonstrates its commitment to this goal by providing public safety facilities that accommodate current and future needs of the City; recruiting and retaining quality public safety and code enforcement personnel; effectively and equitably enforcing construction and land use codes; and protecting the health of the community through high quality and reliable water, sewer and refuse collection systems. The City's community-oriented policing approach involves the community, private sector, other City departments, and outside agencies combining to achieve long-term solutions to persistent crime problems. In keeping with that approach, the Police Department is committed to enhancing its community outreach programs and strengthening its ties to neighborhood associations, community groups and non-profit organizations. During the past year, the Police Department's Community Relations Team (CRT) participated in numerous community events in order to pursue its efforts of fostering a productive police-community partnership. The major objective of the efforts of this team, which operates in conjunction with the Neighborhood Improvement Division ofthe Community Development Agency, is to provide community members with a comprehensive understanding of the various services that the Department offers and the means by which they may access those services. This program, in conjunction with the Westend District's Parenting Program, which educates parents as to their rights and responsibilities, support the Department's focus on prevention as a key strategy to reduce the future demand for police enforcement services. During the coming year, the Police Department will continue its comprehensive efforts to enhance the safety of our community by employing a proactive approach to preventing violent crime. Though the joint efforts of the Crime Analysis Section, the Career Criminal Apprehension Program Unit, the Directed Patrol Unit, the Gang Detail and the Patrol Division, the City will proactively utilize shared data to identiJy patterns of violent offenders and implement strategies to deploy our resources in order to prevent any additional victimization of our residents. Additionally, the Department, in collaboration with the Community Development Agency and the Proactive Rental Enforcement Program, will commence a Crime-Free Multifamily Housing Program. The structure of this program is designed to educate managers and tenants of high-density apartment complexes on techniques and methods of providing an environment that is relatively free of crime and disorder. In concert with this educational component, the program will include an inspection element to ensure that the mechanisms for improving the safety of the complex are in place. 5 Resolution No. eRA 2005-003 Page 12 of 22 By instituting programs such as these, that forge relationships with the residents and combine resources of multiple city departments, the City can continue to reinforce the goal of ensuring a safe community. Emergency preparedness has always been one of the highest priorities of the City, and the emphasis in this area has intensified over the last few years. The City continues to work towards protecting Santa Ana from the effects of terrorist attacks through continuous assessment of structural and operational protocols and identifying strengths and weaknesses throughout the community. In the 2003-2004 fiscal year, the Cities of Santa Ana and Anaheim were awarded grants of $15 million and $10 million respectively, from the United States Office of Domestic Preparedness for a coordinated effort related to the regional emergency response to acts of terrorism. In order to develop the strategies for applying these grant funds toward addressing the issues of prevention, response and recovery from a terrorist attack or natural disasters in the region, the city staff worked closely with representatives from Anaheim and the County to develop a strategic implementation plan. This plan will supplement and support the capabilities of the four mutual aid regions in the county, build upon the existing first responder preparation plan, and enhance our capability to investigate potential terrorism leads and threats to effectively prevent, interdict and respond to acts of terrorism or weapons of mass destruction incidents. This joint strategy has been approved by both the state and federal goveinmental entities, and has been cited by the Office of Domestic Preparedness as a model for other urban areas throughout the country. As a result of our efforts in this area over the past year, the State has informed both Santa Ana and Anaheim that the cities will receive additional grant funds for the 2005-2006 fiscal year. In terms of the size and scope of the operating budget for Police and Fire services, the 2005- 2006 proposed budget identifies $102,879,620 or 52.2 percent of the general fund for the Police Department, and $43,291,720 or 22.2 percent for the Fire Department. Together, these two departments represent 74 percent of general fund expenditures and 56 percent of the authorized positions. B. Be a Catalvst for the Positive Development ofY oung People The 2005-2006 budget includes a dedication of resources and programs for continued support to assist the children of Santa Ana to grow educationally, physically and personally. To accomplish this, the City has worked closely in a collaborative effort with the elementary schools, higher education organizations and other youth-serving groups to offer the children positive opportunities in a safe environment. Specifically, the FY 2005-2006 budget includes: . continuing the implementation of programs and services through collaborative efforts with K-12 schools, higher education, and community based organizations to enrich after school youth experiences; . providing funding for the operation of seven recreation centers, two senior centers, and Project PRIDE, a program that unites both youth and their parents in recreational programs; . integrating the Park Naturalist Program with the educational programs at the Zoo and recreations centers to establish programs that enlighten our youth on the wonders of nature; 6 Resolution No. eRA 2005-003 Page 13 of 22 . providing on-going resources for the coordination of organized youth sports programs and other active living opportunities through the efforts of the Santa Ana Health and Fitness Task Force; and . continue our collaborate efforts with schools and community based organizations, and leverage our state and federal grants, to support the opportunities for our youth to develop their academic and computer skills by using the services offered at the McFadden Learning and Technology Center. C. Foster Neilzhborhood Pride and Communitv Understanding A key element of fostering neighborhood pride and community understanding is creating an environment of seeking solutions to neighborhood issues through an open dialogue between neighbors and a communication linkage with the City. The activities of the Neighborhood hnprovement Program comprise a major component of the City's efforts to achieve this goal. The structure of this program, which divides the City into three districts, is designed to enhance communication with our residents and among city staff. In the 2005-2006 fiscal year, the District Managers will continue to coordinate inter-agency city teams and further develop resource networks with non-profit organizations, businesses and educational institutions in order to identify and address key neighborhood issues. Additionally, the Community Development Resource Network brings together over 1200 of Santa Ana's business leaders; community-based, service and faith-based organizations; and school representatives to discuss community issues, share ideas, and coordinate efforts. The Network has proven to be an effective means of improving communication and increasing the participation of the numerous community-based organizations. One of the programs that was initiated and sponsored through this Network is the Celebrate Santa Ana Event where individuals, neighborhoods, organizations and businesses that have made contributions which enhance the quality of life in Santa Ana are recognized and have the opportunity to interact' with each other. Complementing the City's efforts to foster improved communication and relationships with the existing neighborhood associations, is the strategic planning process for the development of new neighborhoods coupled with facilitating the acquisition of substandard properties and the subsequent introduction of new construction. Working in partnership with the Community Development Agency staff, the Planning and Building Agency will be developing the Santa Ana Boulevard Specific Plan and related documents to establish the framework for a new neighborhood in the general area bounded by Civic Center Drive, French Street, lbird Street and Grand Avenue. Another integral factor in developing neighborhood pride is the provision of visible physical improvements in the infrastructure of our neighborhoods. Every year, we direct significant resources toward the elimination of deferred maintenance in our neighborhoods, resulting in marked improvements in the condition of the sidewalks, streets, alleys, trees, curbs and gutters. In 2005-2006 our neighborhoods will continue to benefit from a concerted capital improvement program. During this fiscal year we will invest $1.8 million for improvements to streets and the replacement of sidewalks, curbs and gutters in the City's neighborhoods. These improvements provide better walking surfaces, promote proper drainage, reduce the City's liability for trip-and-fall cases, and enhance the visual attractiveness of our neighborhoods. Resolution No. eRA 2005-003 Page 14 of 22 7 Improving the quality of the physical environment has been identified as a priority in our neighborhoods as a means of fostering pride. The City will continue to proactively work with the community to abate weeds and debris from public and private properties and remove abandoned shopping carts from the right-of-way. In 2005-2006 we will dedicate $2.6 million toward the maintenance and planting of street trees in our urban forest, which will result in the placement of 750 new trees along the arterial streets. Further, our staff will continue to actively partner with neighborhood and business associations to enhance our efforts for the prevention and eradication of graffiti on commercial and residential structures. During the coming year, an internal team with members from the City Attorney's Office, Police Department, Code Enforcement and Public Works will collaborate to improve the processes for identifYing and eradicating graffiti as well as enhancing our ability to prosecute those individuals who use graffiti to vandalize property. In conjunction with these efforts, staff will conduct a concentrated educational campaign that will be offered to schools, neighborhood associations and business groups. D. Provide and Maintain First-Rate Infrastructure and Community Facilities One of the priorities under this goal is to ensure proper levels of maintenance for our infrastructure, public buildings, parks and neighborhoods. The $35 million Capital Improvement Program for the 2005-2006 fiscal year includes: . $16.2 million for street reconstruction, resurfacing and arterial widenings; . $5.6 million for the design and construction of a 300 space parking structure in the Civic Center to accommodate the relocation of the Fourth District Court of Appeal; . $4.0 for improvements at city parks including $2.5 million for major interior renovations and playground upgrades at the Jerome Park Recreation Center and $435,000 for landscape improvements at Delhi Park; . $2.5 million for traffic improvements; . $2.5 million for improvements to the water system; . $2.3 million for improvements to the sewer system; and . $1.8 million for the continuation of our commitment to neighborhood improvements, including neighborhood street improvements, street resurfacing, and reconstruction of damaged curbs and sidewalks. E. Ensure an Attractive and Well-Maintained City Our commitment to ensuring an attractive and well-maintained City is critical to the long- term success of the community in terms of safety, property values, and image. Extensive research indicates that safety-<JTiented design features and on-going maintenance of private property directly increase the effectiveness of policing efforts. We have focused our efforts on providing a balanced, well-planned community through the following: . continuing residential code enforcement efforts to address neighborhood concerns; . enhancing the appearance of the City's commercial areas through commercial code enforcement with an emphasis on key corridors such as Seventeenth Street, Main Street, Bristol Street and Harbor Boulevard; 8 Resolution No. eRA 2005-003 Page 15 of 22 . improving the City's housing stock by providing $6.8 million for the single and multi-family residential loan programs and projects; and . ensuring that the General Plan, zoning regulations and development standards reflect community goals and expectations. To this end, in 2005-2006 the City will finalize and distribute the updates of both the citywide and historic structure residential development standards. The success of these efforts is enhanced through the use of innovative enforcement tools and aggressive prosecution of the most egregious cases. To that end, the City established the use of the administrative hearing process for nuisance abatement, which has proven to be an effective tool for achieving compliance. During the past calendar year, the hearing officer reviewed 75 properties, with compliance achieved in approximately 98 percent of these cases. The cases in which the owners of the properties did not comply were referred to the City Attorney for criminal prosecution. Another example of our demonstrated commitment to achieving this goal is a continued emphasis on historic preservation. During the past year, a total of 40 properties have been added to the City's historic register. These and other properties were included in a citywide historic resources map that graphically depicts the location of historic resources in the City. Additionally, in the coming fiscal year, the City will implement a historic marker program whereby 217 properties listed on the local register will receive bronze plaques identifYing their properties as a historical resource. Finally, to further implement the objectives of the Historic Preservation program, the City has created an awards program whereby recipients will be recognized for their contributions to historic preservation efforts in Santa Ana. F. Create an Environment Which Stimulates the Growth of Arts and Cultural Oooortunities In 2005-2006 the City will continue its long-term strategy to support a successful arts and cultural program focused on the Artists Village and along the Main Street Corridor, which runs from the Downtown area through the Museum District to the Main Place area. This endeavor includes promoting new private development and redevelopment, rehabilitating historic buildings, and constructing related capital and aesthetic improvements to create a series of amenities that will distinguish Santa Ana from other cities in Southern California. These efforts will result in attracting new investment and increasing tourism to our community. During this fiscal year, the following projects and programs will enhance the City's commitment to this goal and assist in further defining Santa Ana as "A Place for Art:" . completion of Phase III of the City's first artists live/work loft project, the Sycamore Street lofts; . continued support of the California State University Grand Central Arts Center; . completion of Phase I of the Santiago Street, a 108 unit live-work loft complex, located near The Depot which will act as a catalyst for development, investment and general activity in the area; . continuation of the City's active role in supporting arts and cultural events; Resolution No. eRA 2005-003 Page 16 of 22 9 . expansion, through private and grant funding, of the Bowers Museum of an additional 30,000 square feet to house the first ongoing British Museum exhibits outside of the United Kingdom; . enhancing the Museum District through the development of a mixed-use project with 44 courtyard residential units above neighborhood-serving retail uses fronting on Main Street just south of the Bowers Museum; and . expansion of the Discovery Science Center with additional outdoor exhibits and themed areas. The City's commitment to the Arts has expanded an already vibrant Downtown, with increasing commercial and residential investment in the area. A new "Media District" consisting of advertising and post-production firms has emerged along with an entirely new neighborhood of residents who are enjoying an active and stimulating urban experience. Live theater groups and art galleries continue to support a thriving Artists Village, while we continue to pursue retail uses complementary to the Village. The success ofthe Village will support additional private investment in the rehabilitation of the historic building throughout the Downtown, which will enable the City to maintain and enhance its unique urban downtown character, one that is unmatched in Orange County. G. Recruit and Retain a Highlv-Skilled and Diverse Workforce As an integral element of the customer service program, the City continues its outreach effort to recruit applicants that can provide quality services to our multi-cultural, multi-lingual community. As a result of this program, over 74 percent of the individuals hired during the 2004-2005 fiscal year were from ethnic minority backgrounds and the overall minority representation in the City's workforce climbed above 59 percent. Hispanic Americans now comprise the largest employee ethnic group in the City's workforce, representing 49 percent of the employee population. Over the past several years, the City has received recognition and many awards for this innovative quality approach to advancing workforce diversity. H. Ensure the City's Long-Term Financial Ability to Deliver Ouality Services Ensuring the City's financial security is a fundamental responsibility of the administration of our organization. In addition to the ongoing fiduciary functions, the City's strategy for our long-term financial ability to deliver quality services includes: . aggressively seeking grant monies available to local government to fund capital projects, promote information system efficiencies or enhance operations; . refinancing debt to reduce our annual payments by capitalizing on lower interest rates; . actively pursuing competitive bids for goods, services, and capital projects; . providing adequate reserves for liability and workers compensation funds; and . minimizing credit and market risks while maintaining a competitive yield on the City's investment portfolio. In 2005-2006, the City will continue to research grant opportunities provided by the Federal and State governments and aggressively apply for programs that are in alignment with our 10 Resolution No. eRA 2005-003 Page 170122 goals. Our past concerted efforts in this area have been highly successful in providing funds for capital projects, information system improvements, and ongoing and new operating programs. Through the efforts of our departments and the city-wide grants task force, the City secured $77.8 million in competitive grant funding in fiscal year 2004-2005. Finally, the City will continue to maintain its prudent investment policy that emphasizes, in priority order: safety, liquidity and yield. In following this policy, cash temporarily idle during the coming year will be invested in secure investments including V.S. government securities and the State Local Agency Investment Fund. I. Attract and Retain a Prosoerous Business Community A key component in enhancing our economic base is the City's focus on business attraction and retention. The State's designation of approximately 99 percent of the City's commercial and industrial land use as an Enterprise Zone provides a competitive edge in this endeavor. This designation enables the City to offer significant state tax credits and other fmancial incentives to businesses. Since Santa Ana received its designation in June 1993, close to 21,000 new employees have been hired through our program with over 800 companies having earned tax credit vouchers. Our Enterprise Zone program continues to be recognized as one of the top performing enterprise zones in the State. Over the past year, the Enterprise Zone incentives were instrumental in several company decisions to relocate or expand in Santa Ana, including Grainger, Cramer Decker, Memory Experts, New Century Mortgage, Westridgelabs, GNK Automotive, Instant Jungle, Abel Catering.. As the Enterprise Zone incentives are a key element of our ability to achieve this goal to attract and retain a prosperous business community, this year the City will continue to work with key State officials to authorize legislation to extend our designation through 2013. Another important element in the City's business attraction and retention efforts is the use of mechanisms that induce private sector investment in our redevelopment project areas. For example, in the 2003-04 fiscal year, the Redevelopment Agency issued approximately $20 million in Tax Allocation Bonds to finance the acquisition of property and site preparation for the expansion of the Santa Ana Auto Mall. There are currently nine auto dealers in the mall generating approximately $3.7 million in annual sales tax revenue for the General Fund. In addition to enhancing the viability of these dealerships, it is anticipated that the increase in the volume of automobile sales resulting from this expansion will generate an additional $750,000 in annual sales tax revenue. Another major focus in this area for the 2005-2006 fiscal year will be the continued implementation of the strategic plan for the Empowerment Zone. Designated in January 1999, Santa Ana's Federal Empowerment Zone provides needed programs and services to our residents and businesses. To date, the Empowerment Zone Board has allocated close to $25 million in program funds. As the funding allocation for this program is on a year-to-year basis and, thereby, is unpredictable, the business plan of the Empowerment Zone Board includes leveraging the existing $14.9 million over the next three years to continue providing programs to the businesses and residents within the Zone boundaries. Furthermore, the Santa Ana Federal Empowerment Zone has created a tracking system to monitor and issue federal tax incentives to the Santa Ana community. Consistent with the federal government's restructuring efforts, as of 2002, any Empowerment Zone business that hires or currently employs Zone residents will receive an annual federal tax credit of up to $3,000. To date, the Empowerment Zone has issued 1000 federal tax incentives, equating to $3.0 million in federal savings for businesses within our Empowerment Zone. As a result of these efforts, the V.S Department of Housing and Urban Development has identified Santa Resolution No. eRA 2005-003 Page 18 of 22 11 Ana as a model city that other Empowerment Zones are encouraged to emulate. The City's Economic Development Division and the Housing Division have also partnered with major Empowerment Zone employers to develop an Employer Assisted Housing program. Through this program businesses can provide educational seminars for their employees to learn how to become first time homeowners. The City's ability to be successful in fulfilling this goal also depends, in part, on the availability and quality of human resources. In recognition of this need, our economic development strategy includes collaboration with other governmental and educational entities in the development of workforce programs and the delivery of services to both employees and employers. Evidence of this successful partnership with other governmental entities can be found at the Santa Ana W/OfR/K (work, opportunity, resource, and knowledge) Center. The W/OfR/K Center is the City's one-stop job center, which provides potential employees with training, retraining and job placement programs, and employers with easy access to information about qualified workers. Located in the Depot, the W /OfR/K Center is now serving approximately 4,000 clients each month. In addition, services are provided at satellite centers at Corbin Center, Centennial Park, the Mexican! American Opportunity Foundation Center, and Cornerstone Village. J. Ovtirnize Workforce Effectiveness through Training. Technology. EQuioment and Facilities A major effort directed toward achieving this goal is the creation of programs that provide our employees with the tools, skills and knowledge that enable them to become effective managers and leaders in the workplace. To that end, the City developed and instituted the Public Business Academy Program. The academy is an educational and development program designed to provide a sound business approach for supervisors and an entrepreneurial leadership perspective for managers. This program has received the Management Development Award from the American Society for Training and Development. The program has been expanded to provide non-supervisory personnel with an understanding and appreciation of the theories, concepts and practices commonly used in the public sector. As of this month, more than 1,134 employees and supervisors have been trained through our Public Business Academy, which is the most comprehensive management and employee training program in the state. During the last fiscal year, the City provided additional training opportunities for the managers, supervisors and other key personnel by hosting two public sector experts who shared ideas about managing in an environment of rapid change. In order to further expand the leadership abilities, knowledge base, and customer service skills of our supervisors and managers, in the corning year we will reinstitute the Public Business Management and Advanced Leadership components of the Academy with a revised and updated curriculum. A second emphasis in achieving this goal is the maximization of the effectiveness and efficiency of our resources through the use of technology. In 2005-2006, the City will allocate over $8 million toward the implementation and maintenance of our comprehensive management information systems. The Information Systems Strategic Plan Fund will continue to support critical city business systems including payroll, municipal billing and the Santa Ana Property Information Network (SAPIN) system that provides a complete database file on real property within the City. Additionally, the 2005-2006 budget contains a number of projects including the expansion of our document management system, and upgrades to the City network infrastructure to support the higher volume of data transfer. 12 Resolution No. eRA 2005-003 Page 190122 K. Develop and Continuouslv hnprove Svstems to Assure High-Ouality Service to Customers Our ability to deliver high quality services is determined by the individuals that we employ and the ways in which they perform their work. Fiscal and other constraints make it essential that we continually pursue ways to improve the efficiency of our internal systems. We accomplish this through a commitment to our continuous improvement philosophy known as Total Quality Service. The Total Quality Service philosophy emphasizes process analysis and improvement by individuals and teams of employees. With over 75 percent of our employees trained in continuous improvement tools and techniques, individual employees and work groups are constantly improving processes and teams can be rapidly formed to evaluate important systems issues throughout the organization. Carefully formulated process measurement, combined with a strong management commitment and customer orientation, enables these individuals and improvement teams to analyze and improve the delivery of govemmental services to our community. Currently, there are 85 inter-agency and natural work group teams operating throughout the City. L. Assume a Leadership Role in Regional Issues ofPrimarv hnoortance to Santa Ana As the County seat and the oldest, most populous city in Orange County, it is imperative that we assume a leadership role in regional issues. To that end, the City continues to be pro- active in identifying and addressing state-wide legislative issues and to work through our inter-governmental efforts to protect local control and municipal revenues. Further, the City continues to actively assume a strong leadership position regarding economic development, water, sanitation and transportation issues. In the coming year we will maintain our close working relationship with the Orange County Transportation Authority (OCT A) in order to widen the Bristol Corridor for a regional transit project that will provide our residents with additional transportation options. Additionally, we will be a partner with OCT A in the effort to reauthorize the provisions of Measure M, the local half-cent sales tax measure, approved by the voters of Orange County in 1990, dedicated to funding transportation infrastructure improvement projects. This funding mechanism, which has provided $67 million for street improvements in Santa Ana since its inception, is currently scheduled to expire in 2011. Finally, the City will continue its efforts to ensure the relocation of the Fourth District Court of Appeal to the Santa Ana Civic Center. This new facility, which will be supported by a city funded three-level parking structure, will complement the county, state and federal buildings currently located in the Civic Center area. The retention of the courthouse in Santa Ana will reinforce our vision of being the dynamic urban center of Orange County. In continuing our commitment to long-term planning, we will dedicate our time, energy and resources toward providing quality service to enhance the safety, livability and prosperity of our community. In spite of the fiscal challenges, we have made substantial progress toward that end; the 2005-2006 fiscal year budget confirms our commitment to this purpose. On behalf of our talented and dedicated workforce, I am proud to present the budget for the 2005-2006 fiscal year. ~~~ City Manager Resolution No. eRA 2005-003 Page 20 of 22 13 REQUEST FOR AGENCY ACTION ~ ~ AGENCY BOARD MEETING DATE: AGENCY SECRETARY USE ONLY: JUNE 6, 2005 TITLE: RESOLUTION APPROVING FISCAL ~ 2005-2006 COMMUNITY REDEVELOPMENT AGENCY BUDGET AND MAKE CERTAJ:N FINDINGS WITH REGARD THERETO APPROVED E As Recommended o As Amended o Ordinance on 1 $I Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For CONTINUED TO vn~~~EC~~ FILE NUMBER RECOMMENDED ACTION Adopt Resolution No. CRA 2005-003 approving the fiscal year 2005-2006 budget of the Community Redevelopment Agency as identified in the City of Santa Ana's Annual Budget and make certain findings with regard thereto. DISCUSSION Consistent with California Redevelopment Law, the annual funding plan for the Community Redevelopment Agency must be approved by resolution of the Agency. The proposed budget for the Community Development Agency for fiscal year 2005-2006 is $85,256,125. Of that amount, $40,207,625 (47.1 percent) is property tax increment revenue from the merged redevelopment project areas, and $26,520,700 (31.1 percent) is from the HUD Section 8 Voucher program. The tax increment revenue of $40,207,625 is allocated to support the programs and projects of the Community Redevelopment Agency, including the payment of debt service and obligations totaling $18,413,230 (45.8 percent), payment to the Low and Moderate-Income Housing Fund totaling $10,707,370 (26.6 percent) pursuant to California Redevelopment Law, payment of pass-through Obligations to other taxing districts totaling $3,703,095 (9.2 percent), management and administration of the merged redevelopment project areas totaling $4,947,380 (12.3 percent), and the funding of eligible capital proj ects totaling $2,436,550 (6.1 percent). 4. -1 Resolution No. eRA 2005-003 Page 21 of 22 Resolution Approving the Fiscal Year 2005-2006 Community Redevelopment Agency Budget June 6, 2005 Page 2 FISCAL IMPACT The fiscal year 2005-2006 Community Redevelopment Agency budget reflects the sum of the appropriations for debt service, contractual, capital projects, and administrative obligations in the merged redevelopment project areas and the Housing Set-Aside fund. APPROVED. AS TO FUNDS AND ACCOUNTS: ~:!;~~/~Wh~~ Executlve Dlrector ':t \\r\.\'{\.~' \:::.r .\ }\ L ~ ~~. . Franci~co G';ltierrez t. I Executlve Dlrector rv Finance & Management Services AgencjV PCW/NTE/mlr H:\ACTIONS\2005 CRA\ResoAprvgFYOS-06CRABudget - 6-6-05.doc 4.-2 Resolution No. eRA 2005-003 Page 22 of 22