Resolution - 2016-21RESOLUTION NO. 2016-21
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA CONFIRMING THE ANNUAL REPORT FOR THE WEST
COVINA AUTO PLAZA BUSINESS IMPROVEMENT DISTRICT AREA
FOR FISCAL YEAR 2016-2017
The City Council of the City of West Covina resolves as follows:
SECTION 1: The City Council proposes to levy and collect assessments within the West
Covina Auto Plaza Business Improvement District Area ("Area") for Fiscal Year 2016-17.
SECTION 2: On June 1, 1993, the City Council adopted Ordinance No. 1923, which
established the West Covina Auto Plaza Business Improvement District ("District") for purposes of
levying an assessment within the designated Area. The proposed use of the assessment revenue
collected is used for financing the construction, operation, and maintenance of an electronic
readerboard sign located in the West Covina Auto Plaza adjacent to the San Bernardino Interstate 10
freeway as well as financing of the operation and maintenance costs for the entry statement to the
Auto Plaza, which includes the sign and landscaping located at the southwest corner of Azusa
Avenue and Garvey Avenue South.
SECTION 3: The Advisory Board approved replacing the existing electronic readerboard
sign with a new LED readerboard sign. The cost to replace the sign of $532,582 is approved in the
Annual Report, which is contingent upon the City of West Covina's approval of a loan agreement
with the Association and execution of such an agreement. The proposed loan agreement is for a
principle of $532,582 with a two (2%) interest rate over a ten (10) year loan term.
SECTION 4: The Advisory Board for the District filed with the City Clerk an Annual
Report pursuant to the Parking and Business Improvement Area Law of 1989 (Streets and Flighways
Code Section 36500, et seq.) which describes the proposed improvements and activities authorized
by Ordinance No. 1923. The Annual Report is attached as Exhibit A and incorporated herein by
reference.
SECTION 5: On Februaryl6, 2016, the City Council adopted a Resolution of Intention to
levy assessments within the District for Fiscal Year 2016-17, and set the date for a public hearing to
be held on March 1, 2016.
SECTION 6: The Annual Report recommends an assessment of $20,943.00 for each of the
seven auto dealerships within the District for Fiscal Year 2016-17.
SECTION 7: The City Council confirms the Annual Report for the District for Fiscal Year
2016-17.
SECTION 8: This resolution shall take effect immediately upon adoption.
SECTION 9: The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED AND ADOPTED on this I" day of March, 2016.
4ajes -1-oma
�jmyor
APPROVED AS TO FORM: ATTEST:
Kimberly HAI Barlow Nickola� S. Lew'i's-'
City Attorney City Cle�k I
1, HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the
City of West Covina, California, at a regular meeting thereof on the Is' day of March, 2016, by the
following vote of City Council:
AYES: Johnson, Spence, Warshaw, Wu, Toma
NOES: None
ABSENT: None
ABSTAIN: None
1kolas S I-e'w s
City Clerk'
WEST COVINA AUTO PLAZA
BUSINESS LVIPROVEMENT DISTRICT
ANNIUAL REPORT
FOR
FISCAL YEAR 2016-2017
1. Any proposed changes in the boundaries of the business improvement district area.
None.
2. The improvements and activities to be provided for Fiscal Year 2016-2017.
The Auto Plaza BED has approved a budget contingent on the approval of a loan
agreement from the City of West Covina to replace the existing electronic readerboard
sign with a new LED sign. Should the City approve the loan agreement, the Auto Plaza
will replace the readerboard sign in FY 2015-16. Repayment of the proposed loan is
included in the approved FY2016-17 BED budget.
Financing the operation and maintenance of an LED readerboard sign located in the West
Covina Auto Plaza adjacent to the Sao Bernardino Interstate 10 Freeway as well as
financing of the operation and maintenance costs for the entry statement to the Auto
Plaza, which includes the sip and landscaping located at the southwest comer of Azusa
Avenue and Garvey Avenue South. Financing also includes landscape maintenance
along Interstate 10 Freeway immediately facing and parallel to the Auto Plaza
Dealerships.
3. Estimate of the cost of providing the improvements and the activities for Fiscal Year
2016-2017.
Gross estimated annual cost for repayment of the proposed loan agreement to replace the
sign, programming, maintenance, electricity, and insurance for readerboard sign, seasonal
color (landscape materials), landscape maintenance, taxes and preparation costs is
$117,284.13. The Advisory Board voted to increase the assessments to $20,943.60 the
total annual revenues for FY 2015-16 are anticipated to be $146,705.17. The Board
voted to maintain a three (3) month reserve of $29,321.03 operating reserve fimd. The
total annual budget for the FY 2016-17 is $146,605.17. The Board wishes to build their
surplus funds and will not utilize the anticipated surplus of $60,317.26 from FY 2015-16.
An assessment of $20,943.60 for each of the seven (7) dealership sites in the business
improvement district will be placed on the tax rolls by the County of Los Angeles
Department of Auditor -Controller.
4. Method and basis of levying the assessment for Fiscal Year 2015-2016.
The method and basis of levying the assessment will be pursuant to Ordinance No. 1923,
which was adopted by the City Council on June 1, 1993.
5. Amount of any surplus or deficit revenues to be carried over from Fiscal Year 2015-
2016.
The total amount of surplus to be carried over from Fiscal Year 2015-2016 is $85,302.26
this includes the six-month resme of $24,985.00.
6. Amount of any contributions to be made from sources other than the assessments
levied.
None.
'and
L A
IV,
kl�
1V
FY 2015-2016
Assessment Among 7
Dealership/Sites
.96)1 6
�94 60,376.29
lis 24,985.00
.11 $ S. - '.
WO 9,625.00
1
201S-2016 (67% of Year Complete)
Adopted Budget
As of 2/3/16
% Budget
Projected
67,404.00 67,404.00
$ 67,375.00
1 $ M,898.18
40%
$ 67,375.001
1 $ -
1 $ 26.211
#DIV/01
5 26.21
$ 67,371�
21,124.39
1 40%
$ 67,401. 1
�4,328.39
$ 315DO,.
$ 2,080.00
59%
$ 3,120.00
$ 4,120.00
$ 3,746.26
91%
$ 4,120.00
$ 16,000.0c)
$ 9,341.31
58%
$ 17,436.31
$ 600.00
$ 258.84
43%
$ 517.68
$ 12,50
$ 7,9G4M
63%
$ 11,856.00
$ 4,250.00
$ -
0%
$ 4,250.00
$ 3,0130.00
$ 1,263.00
42%
$ 2,013.00
$ 6,000.00
$ 3,094.98
52%
$ 6,189.96
is i
55%
$ 49,502.95
1 $ 24,985
$ 24,985.00
S 85,361.
F$-- —9,625-0-01
60,317.26
24,985.00
9 85,302.26
City toan 10
years Q Sign @4%
No Sian I Dealerships) I Vende, Loa
$ 68,222 Z
S 146,60 7
5 182,802.97
$ 100�2
00
$ 100�j
00
$ i00000
$ 69,009�07
146,705.17
112 022
I c U4 Dl 3�
190,614.88
2.S 23
$ 3,276.00
$ 4,500.00
4,500.00
$ 4,532.00
6,180.00
6,180.00
$ 19,200M
$ 7,680.00
7,680.00
630.00
630.00
630.00
2,000.00
$ 2,000.00
12,�18.80
10,440.00
$ 10,�0-00
$ 4,46150
$ 5,801.25
5,801-25
$ 3,150.00
4,000.00
4,000.00
$ 7,427.95
7,026.48
159,026.40
$ 17,026.48
87, .
55,127.ZS
I S 117,284.13
$ 146,242.37
13,781.811
$ 29,3Z1.03
$ 36,560.59
85,402.26
1 $ 114,009.71
$ 85,402.26
99,184.07
1 $ 143,330.74
123 962 85
S 9P844J5 1 $ 20,943.60 $ 26,114.71