Resolution - 2017-48RESOLUTION NO. 2017-48
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA CONFIRMING THE ANNUAL REPORT FOR THE
WEST COVINA AUTO PLAZA BUSINESS IMPROVEMENT DISTRICT
AREA FOR FISCAL YEAR 2017-2018 AND LEVY OF ASSESSMENT
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 (FY) 2017-18.
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 LED readerboard
sign located in the West Covina Auto Plaza adjacent to the San Bernardino Interstate 10 Freeway (1-
10) as well as financing of the operation and maintenance costs for the entry monument to the Auto
Plaza, which includes the sign and landscaping located at the southwest corner of Azusa Avenue
and Garvey Avenue South. Financing also includes landscaping maintenance along the I-10
Freeway immediately facing and parallel to the Auto Plaza dealerships.
SECTION 3: On June 16, 2015, the Advisory Board modified the benefits zones within the
District, increasing the number of benefit zones from six (6) dealership sites to seven (7) dealership
sites (Exhibit A).
SECTION 4: On March I, 2016, the Advisory Board approved a Loan Agreement with the
City of West Covina for a loan to replace the freeway readerboard sign along with the Annual
Report for FY 2016-17. The loan agreement is for a principle of $532,582 with a two (2%) interest
rate over a ten (10) year loan term.
SECTION 5: 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 Highways
Code Section 36500, et seq.) which describes the proposed improvements and activities authorized
by Ordinance No. 1923. The Annual Report is attached as Exhibit B and incorporated herein by
reference.
SECTION 6: On June 20, 2017, the City Council adopted a Resolution of Intention to levy
assessments within the District for FY 2017-18, and set the date for a public hearing to be held on
July 18, 2017.
SECTION 7: The Annual Report recommends an assessment of $16,523.77 for each of the
seven auto dealerships within the District Area for FY 2017-18, which is a decreased assessment
from the previous assessment for FY 2016-17 which was $20,943.55
SECTION 8: The City Council confirms the Annual Report for the District for FY 2017-18
and hereby levies the assessment of $16,523.77 on each of the seven auto dealerships as
recommended in the report.
SECTION 9: This resolution shall take effect immediately upon adoption.
SECTION 10: The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED, AND ADOPTED this I 8th day of July, 2017.
APPROVED AS TO FORM ATTEST
I, I-IEREBY 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 18 th day of July, 2017 by the
following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Johnson, Spence, Toma, Wu, Warshaw
None
None
None
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WEST COVINA AUTO PLAZA
BUSINESS IMPROVEMENT DISTRICT BOUNDARIES
New Proposed Benefit Zones
Exhibit B
WEST COVINA AUTO PLAZA
BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT
FOR
FISCAL YEAR 2017-2018
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 2017-2018.
Financing the operation and maintenance of an LED 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 monument to the Auto
Plaza, which includes the sign and landscaping located at the southwest corner 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
2017-2018.
Gross estimated annual cost for repayment of the loan to replace the sign, programming,
maintenance, electricity, and insurance for readerboard sign, seasonal color (landscape
materials), landscape maintenance, taxes and preparation costs, is $115,666.40. The
Advisory Board voted to utilize a portion of FY 2016-17 surplus of ($112,506.81) for the
six (6) month operating reserve ($57,833.20), decreasing the assessments from last year's
$20,943.59 to $16,523.77 for this coming fiscal year. The total annual revenues for FY
2017-18 are anticipated to be $115,666.40. The total annual budget for the FY 2017-18 is
$173,499.60. An assessment of $16,523.77 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 2017-2018.
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 2016-
2017.
The total amount of surplus anticipated to be carried over from Fiscal Year 2016-2017 is
$112,506.81. This includes the three (3) month operating reserve of $29,321.03.
6. Amount of any contributions to be made from sources other than the assessments
levied.
None.
PROJECTED YEAR-END BALANCE (w/out Reserves)
RESERVE FUND TOTAL
PROJECTED YEAR-END BALANCE W/ RESERVES
67,617.00 I
L9 321.03
96,938.03 I
$ 83 185.78
$ 29 321.03
5 112,506-81
85 237.00 [3_ 27,403130
57,833.20 1 $ 57,833.20
5 143,070.20 1 $ _ 85,237.00
9 38,933.41 $ 57,254.05 [4 60.376.29
24,935.00
I $ 1,649.38 $ 18,320.64 $ 85,361.29
66,795.01]
5 29,321.03 5 118,118.04
West Covina Auto Plaza
Business Improvement. District
2017 - 20113 Duly 1 -June 30)
Fund Balance
Beginning Balance as of July 1
Revenues
Revenues from Assessments
Interest Income / Other
City Loan
Total Revenues
TOTAL OPERATING FUND AMOUNT
ErnenditureE
Professional Services (EMI-Programming)
Other Contractual Services
Accounting
Project Improvements
Insurance
Other Services
ElectrIctty
Telephone
Equipment M & R (EMI-Maintenance)
insurance
Project improvements (Landscape)
Admin and Overhead
Capital Improvement Projects ISIgn Repayment)
City Loan Repayment
Sign Purchase
TOTAL EXPENDITURE AMOUNT
RESERVE FUND •
TOTAL EXPENDITURE _
2010-2011 2011-2012 FY 20162016 FY 2618.2017
Actual Actual
Assessment Among 7
Dealership/Sites
Actual
Assessment Among 7
Dealership/Sites
Actual
$ 37,284.03 $ 38,933.41 I $
$ 29,026.27 9 53,993.68 5 67,375.00 $ 146,605.17
$ 7,079.73 $ 163.71 5 - $ 100 00
$ 532,582.00
$ 36,105.00 $ 54,157.39 5 67,375.03 $ 146,705.17
$ 73,390.03 9 93,090.80 $ 135,33129 $ 214,222.16
$ 3,983.60 $ 3,173.50 $ 3,500.00 $ 4,500.00
5 866.56 3,177.79 $ 4,120.00 $ 17,981.25
5 8100.00
$ 4,000.00
$ 5,801.25
I
$ 2,000.00
$ 10,736.45 .5 9,506.87 5 16,020.00 $ 7,680.00
5 50168 5 514.22 5 600.00 $ 630.00
$ 11,85600 5 11,858.00 5 12,500.00 9 10,440.00
5 3,450.00 5 3,66437 5 4,250.00
$ - 0 760.00 $ 3,000.00
$ 2,686.00 $ 3,194.00 5 6,000.00 5 17,026.48
$ 376.33 ,5 - 5 - 9 59,026.40
5 59,026.40
C. 532,512.00
$ 34,456.62 $ 35,838.73 $ 49,978.00 5 117,284.13
5 17,228.31 $ 17,918.39 • $ 24,985.00 $ 29,32103
2016-2017 167% of Year Complete)
Adopted Budget As of 6/7/17 % Budget Projected
I $ 85,237.00
$ 146,605.17 5 83,722.00 57% 9 146,605.17
$ 100 ,00 $ II% $
5 532,582.00 5 - CI% $ 512,592.00
5 146,705.17 83,722.00 57% 5 146,605.17
$ 235,400.17 $ 172,417.00 73% $ 231,642.17
5 4,500.00 $ 5,836.00 41% $ 2,779.60
17,981.25 5 16,33187 91% 16,332.87
$ 6,150.00 $ 5,430.82
$ 4,06n 00 $ 1,093.05
$ 5,001.25 $ 9409.00
$ 2,000.00
7,680.00 5 9,66461 126% $ 10,669 69
9 630.00 9 391.33 62,6 $ 421.33
10,440.00 5 1144010 113% $ 13,566.15
— _
9 1742646 9 0% $ 16,139.31
9 59,026.40 $ - 016 $ 59,026.40
$ 59,026.40
5 532.59700 , 532.662.30 IV% 5 537 132.00
5 117,284.1.3 $ 56,402.76 48% $ 119,33535
$ 29321.03 $ 29,32103
$ 146,605.16 5 148,656.38
67,956.29 I $ 67,516.99 88,695.00 I$ 88,695.00
2017-2018
not using Fund
Balance
2017-2018
Using portion of Fund
Balance for Operating
ReStrveS
$ 85,237.00 $ e5,237.00
5 173,499.60 9 115,66640
$ - $
$ - 5 .
173,499.60 5 115,666.40
$ 259,736.60 5 200,903.40
$ 4,500.00 4,500.00
9 22,480.00 9 22,480.00
.5 6,180.00 $ 6,180.00
$ 5,000.00 $ 5,000.00
5 10,300.00 9 10,300.00
$ 1 000.00 $ 1 000.00
9 10,800.00 $ 10,800.90
S 720.00 $ 720.00
9 10,140.00 10,140.00
f
9 _ 6,000.00 9 600040
9 59,026.40 9 59,026.40
5 59,026.40 5 59,026.40
$ - $ •
$ 115,666.40 $ 115,666.40'
5 57,83120 $ 57,833.20
.5 173,499.60 5 173,499.60
ASSESSMENT PER DEALER pr. $ 5,262.82 $ 8,998.95 $ 9,625.00 $ 20,943.59 $ 20,943.59 5 24,78546 16,523.77
For FY10.11 and FY11-12 the BID kept a Ganonth operatin g reserve.
For F313-14 the BID voted to not have a reserve fund. Since EY14-15
the BID voted to keep a 3-month operatin g reserve. Starting FY 2017-
18 the reserve fund is required lobe at minimum 6-months per the
Loan Agreement with the City.
"Assessment changes to 7 dealerships in FY 15-16
Notes:
FY16-17 Budget assumes new sign is constructed and operational by July 1,2016.