Town Center escrow deadline moved to March 31; Original Pancake House ordered out by March 15

A key deadline in Yorba Linda's long-awaited Town Center project – the “outside” date to close escrow on the sale of city-owned properties to developer Zelman Retail Partners – has been pushed back another six months, to March 31, 2016.

The new date includes “a permissible 90-day extension request, if deemed necessary, upon payment of a $50,000 extension deposit,” states a report by Pam Stoker, the city's economic development manager.

Previous delays were due to “changes to the scope and boundaries” of the project, while the latest involves “required conditions to close and protect the interests of both Zelman and the city,” Stoker notes.

They include securing tenant leases, obtaining financing, working with architects to prepare detailed construction plans and acquiring permits for site work, construction and utilities.

The amended agreement also states the council sent owners of the long-popular Pancake House notice to vacate the premises by March 15, 2016. Another report, presented to the Planning Commission last month, notes the building “is proposed to remain” in the project.

That report from principal planner Dave Brantley says “renovation plans have not been formulated at this stage” for the building, but the space “likely will be occupied by a sit-down type of restaurant.”

Brantley notes, “the future design of building renovations will need to be tailored to the specific restaurant operator's needs.” Once a new tenant is identified, changes will require approval “to ensure that the future re-design...is architecturally integrated into the center.”

The nearby two-story ERA real estate building, owned by Walt and Jean Tamulinas, is not part of the project area and is permitted “to continue to operate as it currently exists.”

But, if the owners want to expand or modify the building in the future, the plan “would be subject to design review approval and would be required to be integrated into the overall architectural theme of the center,” Brantley reports.

Interestingly, an “economic expansion or growth” portion of an environmental impact report states: “Given the project's relatively small size in relation to the city population and work force, the economic contribution of this project alone would not be considered significant.”

While the project will provide short-term construction jobs, it's anticipated these employees would commute from elsewhere and not relocate to the city for a temporary assignment.

However, long-term full and part-time employment would be generated, and given the city's 2.9 percent unemployment rate – about 1,000 individuals – “some of the employment opportunities associated with the project would be filled by current residents of the city.”

And “any small increase in persons commuting from outside the area or potentially relocating to the area may result in a corresponding slight increase in demand for city goods and services.” 

Yorba Linda City Manager earns salary hike; landscape pact renewals; tree replacement policy

Three Yorba Linda topics merit ink this week: a raise and contract extension for City Manager Mark Pulone, contracts for landscape service for three of the city's largest maintenance areas and a look at numbers under a revised tree removal policy.

--Pulone, the city's top administrative officer since August 2013, was given a 2 per cent salary increase and a contract extension through 2020 on a 5-0 City Council vote. The $5,464 boost brings his annual salary to $218,614.

The increase, according to a report by City Attorney Todd Litfin, is based on “merit and performance that correlates to increases in cost-of-living expenses.” The extension also caps Pulone to a maximum nine months severance pay if he's “terminated without cause.”

The city's website lists salary ranges for six other management positions, as well as 25 mid-management and 69 miscellaneous classifications. Retirement plans and benefits also are explained.

To view, click on “human resources” under “transparency in government.” Data under “compensation” is from 2012, but my Sept. 4 column lists salaries and benefits for each council member (at ocregister.com/yorbalinda click on “Yorba Linda Star,” then “archives”).

--Three renewed contracts with an annual cost of more than $700,000 for landscape maintenance services in the city's cash-strapped Landscape Maintenance Assessment District also earned unanimous council approval.

The pacts are for East Lake Village, Vista Del Verde and west Yorba Linda areas, at yearly costs of $280,126; $248,805; and $185,039, respectively. The first two were renewed without price hikes, while the third has a permitted 1.4 percent consumer price index boost.

The city has seven landscape maintenance packages that are bid for initial three-year terms with two two-year renewals allowed. The December 2015-November 2017 renewals are the last for Rockey Murata (East Lake, Vista Del Verde) and Nieves Landscape (west side).

“This allows vendors to justify hiring the proper amount of labor and would give the vendor the confidence needed to move forward on the purchase of new equipment, which translates into better service,” noted a report by Bruce Carleton, assessment district manager.

--An April change in the city's longstanding tree replacement policy distinguishes between removals due to “risk” and “convenience.”

“Prior to the modifications of the policy there was no mechanism that allowed staff to approve tree removal requests for non-risk management purposes,” reported Director of Public Works Mike Wolfe.

So far, the city has received 28 requests for removals in the new “convenience” category, 22 in Landscape Maintenance Assessment District areas and six in city rights-of-way. Three were approved and 19 are in various stages of the process.

All six of the rights-of-way requests were withdrawn “once the requester was made aware that they would be financially responsible for the removals.”

High water mark on tap in flood of controversy in Yorba Linda Water District re basic service charge

High water mark in a flood of controversy regarding this month's increase in charges for Yorba Linda Water District customers will come at an upcoming meeting of the five elected directors.

An anticipated agenda item is a referendum petition seeking to overturn hikes in the district's basic service charge. Petitioners want directors to rescind the increase or, if they don't, set a special election for a public vote on the issue.

Rate hike opponents began circulating the petition after an earlier attempt to stop the increase failed, with 23 percent of property owners submitting protests, short of the required 50 percent, at a Sept. 17 meeting.

Final tally was 6,324 valid protests out of 27,355 parcels in the district that includes most of Yorba Linda and parts of Anaheim, Brea, Placentia and unincorporated county territory.

However, a successful referendum petition would have a lower threshold, needing just 2,157 valid signatures from the district's registered voters, based on 10 percent of 21,568 district votes cast in the November 2014 governor's contest.

While only property owners could submit valid protests before the increase was adopted, all registered voters at district addresses can sign a referendum petition. Petitions were expected to be presented this week, since the Oct. 17 deadline is Saturday.

Directors were scheduled to meet in closed-door session with legal counsel during the Oct. 8 meeting to discuss the referendum process and examine options, permitted as a response to potential litigation. Unless they took specific action, no public report is required.

Happily, the district has normalized penalties based on 30 days for billing cycles that run longer. For example, if 21 units are used during a 35-day cycle, there's no penalty. Penalties begin after the use of 18 units (13,464 gallons) in a 30-day period.

A key financial figure – the district's $32.7 million in 10 reserve categories on Aug. 31 – merits attention. That number includes $10 million budgeted for spending this fiscal year on projects related to water delivery and sewer services.

Of the remaining $22.7 million, $13.2 million currently is restricted to specific uses, including capital projects, employee liability and water/sewer emergencies. After a bond debt payment last month, less than $9 million is left for “unforeseen, unplanned and unbudgeted” expenses.

Directors can always shift reserves to other areas, but officials say the sums are needed for debt, services and to protect $789 million in assets in catastrophic emergencies. Opponents told me portions could be used to forestall higher fees in drought years.

Expect conflict to continue to the November 2016 ballot for seats held by 23-year director Mike Beverage and 11-year director Ric Collett, both unopposed in 2012. Directors Phil Hawkins, Bob Kiley and Gary Melton, first elected in 2010, were unopposed in 2014.

City sees more revenue than expenses in next two budget years, as City Council adopts documents

Yorba Linda finally has operating budgets for this and the next fiscal year – adopted on a 4-1 vote two and a half months after the current budget year began July 1 – with revenue expected to outpace expenditures for both 2015-16 and 2016-17.

This is the second two-year budget approved by the City Council after a couple years of one-year spending plans during the recent recession. The lone “no” vote came from Craig Young, who favored a single-year plan.

Of course, the budgets won't remain static for the next two years, as the council always reviews income and outgo numbers during six-month intervals and either tightens or loosens the purse strings as the local economy waxes and wanes.

Surplus is expected to be about $1.2 million for 2015-16 and $360,000 for 2016-17, even with a $2.4 million transfer each year to the Landscape Maintenance Assessment District, some to subsidize deficits in several of the city's 46 local landscape zones that cover 52 percent of city residences.

Revenue is projected to be near $33 million in 2015-16 and just over that figure in 2016-17.

Most landscape zone funds come from assessments on real estate due with property taxes, with $5.7 million to be collected this year from arterial and local zones.

Most operating budget revenue – some 49 percent – comes from property taxes, with 21 percent from sales taxes, 10 percent from franchise fees on utilities and business licenses and taxes and the rest from planning, engineering and recreation fees plus rents and interest.

Spending includes 36 percent for policing, 21 percent for parks and recreation,19 percent for general government, 13 percent for public works and 11 percent for community development.

Four highlights from the 83-page budget document:

--General fund expenditures for police services, including the contracted crossing guards, will take nearly $10.3 million this year and $10.5 million next year from the city's general fund, up from more than $9.3 million last year.

Among policing objectives: maintain “priority 1” response times of less than five minutes, use proactive patrol activity to deter criminal activity and “improve aggressive traffic enforcement.”

--The library expects more than $4.5 million annual income the next two years from its separate property tax stream as a former independent district (1914-1985), with $500,000 added to reserves each year, savings to help finance a new facility.

--The Black Gold Golf Club expects revenues close to $6 million this year and just over that amount next year, with more than $6.4 million expenses this year and just over $6.6 million next year, figures that include $850,000 depreciation.

--And remember the city's Redevelopment Agency the state dissolved in 2012? Its property tax income from Savi Ranch-Hidden Hills and Town Center-Imperial Highway project areas is handled by the council and will total from $6-7 million, equal to expenditures. 

Advanced Placement results, school budget final accounting, Trueblood/Janeway house restoration

Updates for past columns:

--The record 3,647 Advanced Placement tests administered in May at the four comprehensive high schools in the Placentia-Yorba Linda Unified School District earned an 86 percent “pass” rate, considerably higher than the 64 percent California and 61 percent global results.

Passing is a score of three or better on a five-point scale, although individual universities make their own decisions on awarding credit for scores on the 34 subject tests AP offers. About 370,000 tests were administered in California and nearly 4.5 million globally.

The number of tests administered and “pass” percentages at district campuses were 570 and 82 percent at El Dorado; 657 and 84 percent at Esperanza; 1,493 and 87 percent at Valencia; and 927 and 91 percent at Yorba Linda.

Even better results were reported for the International Baccalaureate program at Valencia High School, where 336 tests achieved a passing score of four or higher on a seven-point scale out of 348 tests administered, for a 97 percent “pass” rate.

Coordinator Fred Jenkins told me 41 of 43 senior candidates earned IB's Full Diploma for 2015, and 71 seniors are on track to earn the Full Diploma in 2016. He stated the program this year has 101 juniors, 143 sophomores and 189 freshmen--”our largest freshman class ever.”

IB has awarded 1.3 million Full Diplomas in 140 countries, with nearly 142,000 students taking the tests earlier this year. The next IB tests will be administered April 29 - May 13, 2016, while AP tests are scheduled May 2 -13, 2016.

--School district officials have closed the financial books on the 2014-15 fiscal year, with a report filed with the county Department of Education. The “unaudited actuals” report noted

the district's expenditures exceeded revenues by $331,908.

Fortunately, the district has healthy reserves – considered healthy for schools, that is. This fiscal year began with some $16 million on hand, with more than $11 million “designated for economic uncertainties,” representing 5 percent of last year's outlays of more than $220 million.

About 84 percent of expenses went to salaries and benefits. Most revenue (some $180 million) came from the state's new Local Control Funding Formula that provides a base amount for average daily attendance supplemented by grants tied to student demographics.

--Steady progress continues regarding the city-owned Trueblood/Janeway house at Lemon Drive and Park Avenue. The historic two-story home east of the post office and visible from Imperial Highway is again open to rehabilitation plans.

The city is reissuing a request for proposals that includes invitations to prior organizations that submitted offers in 2010, asking groups “to consider a partnership with the city to rehabilitate” the home and “allow for sale of the property to an interested party with certain conditions and constraints to renovate the home to historic standards.”