HomeMy WebLinkAboutItem No.SA1CMINUTES
REGULAR REDEVELOPMENT AGENCY MEETING
CITY OF LAKE ELSINORE
31315 CHANEY STREET
LAKE ELSINORE, CALIFORNIA
TUESDAY, FEBRUARY 9, 1993
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FALL TO ORDER
The Regular Redevelopment Agency Meeting was called to order by
Chairman Winkler at 8:07 P.M.
ROLL CALL
PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WINKLER,
WASHBI,
ABSENT: BOARDMEMBERS: NONE
Also present were: Executive Director Molendyk, Assistant
Executive Director Rogers, Legal Counsel Harper, Administrative
services Director Boone, City Planner Christen, Community Services
Director Sapp, Public Services Director Tecca, Manager of Special
Projects Watenpaugh, Special Projects Coordinator Wood, City
Treasurer Pape and Clerk of the Board Kasad.
PUBLIC COMMENTS - AGENDIZED ITEMS
A request was received to address Item No. 8 of this agenda and
deferred to that time.
CONSENT CALENDAR
The following item was pulled from the Consent Calendar for further
discussion and consideration:
Item No. 3
MOVED
TOY CHERVENY, SECONDED BY
BALANCE OF THE CONSENT CALENDAR AS PRESENTED.
1. The following Minutes were approved:
a. Joint Work Session - Redevelopment Agency /City Council -
January 19, 1993.
b. Regular Redevelopment Agency Meeting - January 26, 1993.
2. Ratified Warrant List of January 29, 1993.
ITEM PULLED FROM CONSENT CALENDAR
3. Lake Aeration - Temporary Use Permit.
Boardmember Alongi requested clarification of this permit and
the term stated of five years; and questioned whether there is
a time limit to apply. He advised that LEMA had discussed
pulling funds away from this project to address another issue.
Boardmember Washburn inquired whether this matter was "
discussion or action had actually been taken.
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PAGE TWO - REDEVELOPMENT AGENCY MINUTES - FEBRUARY 9# 1993
Boardmember Alongi explained that the point was that with the
agreement insurance is necessary and he is not sure the
project will proceed at this time. He questioned the ability
to be ready to proceed in two years. Executive Director
Molendyk clarified that staff was proceeding on the direction
to obtain the necessary permits; noting that this is a rather
burdensome process. He stressed that efforts were made to
meet the time line for consideration at the State level on
March 16th.
Boardmember Alongi explained that the reason this was
discussed at LEMA was because a few dollars remain in the
research portion of the budget and the money could be used for
another necessary study. He further explained that with
additional water in the lake the system is not as necessary at
this time. He questioned the application time limit.
Director of Special Projects Watenpaugh explained the permit
with the State and the efforts to proceed with the underlying
conditions of the 404 permit. He further explained that the
discussion at LEMA, as he understood it, was whether it was
possible to hold off on the purchase and implementation of the
system. He also explained that there is no fee for the
permit, but it would expire in five years.
Boardmember Washburn addressed the discussions pertaining to
the Salt Cedar Study suggesting that funds exist for this
study without impacting the Aeration System. He indicated
that he would not agree with this shift in funds. He stressed
the need to comply with the 404 permit.
MOVED BY WASHBURN, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE
TO APPROVE THE TEMPORARY USE PERMIT AND AUTHORIZE ITS EXECUTION.
BUSINESS ITEM
4. Designation of Redevelopment Agency Board Vice Chairman.
BOARDMEMBER CHERVENY NOMINATED BOARDMEMBER ALONGI FOR VICE
CHAIRMAN. BOARDMEMBER ALONGI DECLINED THE NOMINATION.
CHAIRMAN WINKLER NOMINATED BOARDMEMBER CHERVENY FOR VICE CHAIRMAN.
BOARDMEMBER CHERVENY DECLINED THE NOMINATION.
BOARDMEMBER WASHBURN NOMINATED BOARDMEMBER DOMINGUEZ FOR VICE
CHAIRMAN.
MOVED BY WASHBURN, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE
TO APPROVE THE APPOINTMENT OF BOARDMEMBER DOMINGUEZ AS VICE
CHAIRMAN.
5. Rodriguez Loan - Silver Street - CR & R - Payment Schedule.
Executive Director Molendyk explained this item in connection
with the contract with CR & R.
Boardmember Alongi inquired whether CR & R would still attempt
to sell the property. David Fahrion, representing CR & R,
indicated that they would still try to sell it, but stressed
the difficulty with sales at this time. He commented that he
had heard there might be an interest in this site for the
animal shelter and indicated that they would be willing to
negotiate this if appropriate.
PAGE THREE -
AGENCY MINUTES - FEBRUARY 9s 1993
MOVED BY DOMINGUEZ, SECONDED BY CHERVENY TO APPROVE THE PAYMENT
SCHEDULE AS PRESENTED.
Boardmember Cherveny commented that the performance of CR & R
to date has been less than satisfactory, but this appears to
be a step forward.
THE FOREGOING MOTION CARRIED BY A VOTE OF 4 TO 0 WITH WASHBURN
ABSTAINING.
6. Notice of_COmvietion -
Executive Director Molendyk explained that the Collier Avenue
improvements contract was awarded to MBC Constructors on July
9, 1991, and construction began in August of 1991. He advised
that the original contract was for $3,096,628 with 75 change
orders which increased the contract by $622,459 because of bad
soil encountered on site, $721,375 for changes requested by
EVMWD and $122,052 for street lights and other alterations to
make the total cost of the project $4,976,254.
MOVED BY CHERVENY, SECONDED BY ALONGI TO ACCEPT THE NOTICE OF
COMPLETION FOR COLLIER AVENUE IMPROVEMENTS FROM RIVERSIDE DRIVE TO
NICHOLS ROAD AND AUTHORIZE THE CITY CLERK TO RECORD THE DOCUMENT.
Boardmember Cherveny expressed surprise and concern in regard
to the number of change orders for this project. She inquired
whether the Agency had billed EVMWD for reimbursement. She
expressed concern with the original bid amounts and the end
cost for this project. Public Services Director Tecca
advised that as soon as all of the outstanding bills are
collected EVMWD will be billed for the reimbursements.
Chairman Winkler inquired when the 12 -inch water line was
proposed to be converted to a reclaimed waterline.
Public Services Director Tecca explained that this line will
be used for landscaping and at this time there is no reclaimed
water available so potable water is being used. He further
explained that when reclaimed water is available then EVMWD
will reimburse the City $421,808.
Boardmember Washburn explained that when the project went to
bid the reclaimed water line was an unknown factor and EVMWD
requested that one be installed later in the project and would
not allow the project to proceed until the line was installed.
Chairman Winkler commended staff for their hard work and
effort on this project to make it possible for the Outlet
Center to open. He commented on the wall that was required by
Fish and Game for that area, and noted that there was no
possibility for negotiation and he felt that staff did an
excellent job.
Boardmember Alongi questioned the completion of the ponds for
the wildlife and asked if that was included in the $4,976,254.
Public Services Director Tecca advised that it was handled as
a separate project. Mr. Alongi then asked why street lights
were not anticipated in the original plans. Public Services
Director Tecca explained that in the original plans Edison was
to install the street lights, and it was later decided to
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PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - FEBRUARY 9, 1993
provide the street lights through the project due to the high
cost of Edison. He further explained that the capital cost
was higher but reduced the annual operating cost by handling
it as part of the project.
Boardmember Alongi asked if anyone had done core testing to
check the amount of moisture in the soil. Public Services
Director Tecca explained that an extensive amount of testing
was done, but when the "March Miracle" occurred it changed the
entire project. Mr. Alongi asked if there was some way that
the City could check with Fish and Game or Corp of Engineers
to see what they might want done and include it in the
original bid package. Mr. Tecca explained the permitting
process and the difficulties experienced on this project. --
Executive Director Molendyk explained the process that the
City must go through to provide wetlands. He further
explained that Fish and Game will not do anything in advance
because of what might be found while the project is underway.
Mr. Molendyk explained that in working with Cal Trans there is
no way to plan for some of the things that occur, Cal Trans
will place conditions in the field.
Boardmember Alongi questioned Change Order 020 - Temporary
Traffic Control and asked why this was not anticipated. Mark
Biloki, Construction Manager for Albert Webb Associates,
explained that during the installation of a water line Cal
Trans reconsidered the signed and approved plans and
encroachment permit and directed the placement of temporary
traffic control or the job would be closed down.
Boardmember Alongi questioned Change Order 18 regarding hook
up of a 6" sewer lateral. Mr. Biloki explained that the sewer
was never intended to a part of this project and EVMWD
required that this be done. There was further discussion in
regard to associated costs for each project.
Boardmember Alongi questioned Item 062 - Additional work on
tie in to E/Z Products. Mr. Biloki explained that EVMWD
required additional work in this area and it would be up to
the City if they wished EVMWD to reimburse this money.
Boardmember Alongi asked that the list of change orders found
in the agenda item be more specific in regard to who ordered
them and why the item was required. Public Services Director
Tecca advised that he would provide that information.
Boardmember Washburn suggested that Mr. Ballew be contacted
because at the time he spent as the project coordinator and
worked with EVMWD.
THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE.
7. Consideration of Sewer System for the Avenues and the
Gunnerson /Riverside Area. Reauested by Boardmember Alonai.
Boardmember Alongi commented that the Agency has set a program
in place to assist in the installation of main sewer lines in
the Amber Ridge Tract even though it is not in a Redevelopment
Area and asked if Amber Ridge Tract will pay for the
PAGE FIVE - REDEVELOPMENT AGENCY MINUTES - FEBRUARY 90 1993
installation of the sewer. Chairman Winkler explained that
the funding for the main sewer line and the laterals will be
guaranteed by the Redevelopment Agency, but the cost of
hooking up from the lateral i o their the home and the $3,500 fee
to EVMWD will have to be p Y
Boardmember Alongi then requested that the Redevelopment
Agency create the same program for the Avenues and the
Gunnerson /Riverside Area as Amber Ridge has. He explained
that the Avenues are experiencing the same type of problems,
if
especially on Nebraska and ShrierDrive. Amber Ridge fined that
not
the Redevelopment Agency can pay ber can address the
in a Redevelopment Area then the Agency
problems of these areas which are in a Redevelopment Area.
Mr. Alongi stated that he felt that all areas should be opened
up for sewer service that wish to have the service provided to
them under the same conditions.
MOVED BY WASHBURN, SECONDED BY WINKLER TO TABLE INDEFINITELY THE
CONSIDERATION OF A SEWER SYSTEM FOR THE AVENUES AND THE GUNNERSON/
RIVERSIDE AREA AND DIRECT STAFF TO STUDY ALL NON- SEWERED AREAS IN
THE CITY OF LAKE ELSINORE AND RETURN WITH A REPORT OF WHAT AREAS
EXIST, WHAT AREAS NEED UP- GRADING AND SUGGESTED DIRECTION FOR THE
FUTURE OF SEWERS IN THOSE AREAS.
Boardmember Cherveny stated that the study done for Amber
Ridge included the other areas.
Boardmember Washburn explained that the reason he made his
motion was because he felt that although the areas were
included there was not a comprehensive enough explanation of
those areas and that they needed to be addressed directly.
Chairman Winkler explained that this should be addressed at
budget time. He reviewed the projects and the accomplishments
in the last seven years prior to the West End being addressed,
noting that he has worked for a project in this area for seven
years.
Boardmember Alongi stated that it takes a long time to set up
programs to address different problems, but once the program
is set it is open to everyone. He explained that Amber Ridge
was not a budgeted item and he felt that this was an
appropriate time for this to be addressed as well. He further
stated that Amber Ridge was not addressed at the time the
tract was built and he felt that to table this item
indefinitely was criminal, and felt that the Board should
address this item by no later than the next meeting. He
concurred that possibly a master plan of sewer should be
developed, so that this could be addressed. He requested that
this item be brought back on the 23rd of February.
THE FOREGOING MOTION WAS APPROVED WITH A VOTE OF 3 TO 2 WITH ALONGI
AND CHERVENY CASTING THE DISSENTING VOTES.
S.
Boardmember Cherveny yielded the floor to Phil Williams who .
had requested to address this item.
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PAGE SIX - REDEVELOPMENT AGENCY MINUTES - FEBRUARY 9. 1993
Phil Williams commented on the recent Special Meeting
concerning Walmart and the petition presented at that time.
He indicated that he currently has contacted and represents
approximately businesses in the community who are concerned
with Redevelopment Agency incentives being offered to Walmart.
He noted that the response to Walmart varies with the level of
competition to any particular business. He requested that the
Board direct staff to work with the business owners to develop
a program of assistance comparable to that offered to Walmart.
Chairman Winkler indicated that staff is presently looking at
a program and Walmart will be returning on February 23rd for
consideration. He suggested that this item also be brought
back on February 23rd. He commented that Mr. Williams had
raised some valid points and they would be reviewed.
MOVED BY WINKLER, SECONDED BY CHERVENY AND CARRIED BY UNANIMOUS
VOTE TO CONTINUE THIS ITEM FOR TWO WEEKS.
Mr. Williams requested a copy of the report presented for that
meeting as soon as possible to talk with the business people. Mr.
Winkler indicated that it would be available the Friday before the
meeting.
PUBLIC COMMENTS - NON- AGENDZ FD ITEMS
None.
EXECUTIVE DIRECTOR'S REPORT
Executive Director Molendyk commented on recent statements
concerning the Outlet Center and read the following letter to City
Manager Ron Molendyk from Kenny M. Smith, Vice President, West
Coast Operations, McArthur /Glen Group:
Dear Ron:
I was a bit taken back and very surprised today by your
line of questioning about the Outlet Center. Although I
don't know whose comments prompted your questions. I am
baffled as to how anyone who is at all familiar with our
industry and the Lake Elsinore Center could suggest that
the Center was doing anything other than tremendous
business.
The center had an excellent first year and a very strong
holiday season. This center in particular has been in
very high demand from it's conception.
The first phase of the Lake Elsinore Center is the second
largest first phase our company has ever built, and it
was leased in record time. In fact it was so over
subscribed with tenants wanting space that we fully
leased the second phase before the first phase even
opened. This allowed us to begin construction on the
second phase just a few months after the opening of the
first stores. That is the shortest time lapse between
phases of any of our centers anywhere in the country.
The center's success and popularity with the tenants has
kept demand very high. So high in fact, that all of the
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PAGE SEVEN - REDEVELOPMENT AGENCY MINUTES - FEBRUARY 91 1993
third phase stores are committed and we plan to begin
construction on that phase as soon as the rainy season
has passed. Again, another record for a third phase.
This third phase will make Lake Elsinore Outlet Center
the largest McArthur Glen Group Outlet Center in the
country, all within less than a three year period. This
will mean that even though the center in Lake Elsinore
was the last to open, it has grown faster and surpassed
the size of both of the other major outlet centers in
Southern California, Barstow and Cabazon. So strong is
this location, that we are currently working with your
staff to expand the number of stores planned in this
Center.
As for any stores "closing ", I have checked to see if any
stores have actually closed in Lake Elsinore. As I
mentioned to you on the phone, our industry has had some
manufacturing companies bought and sold and therefore
have had some store consolidation. Indeed this happened
to be the case with one store in the first phase of the
center in Lake Elsinore. There has only been one store
"close" in that center and that was the Crisa Store.
Corning Revere Company who already had a store leased in
the second phase, purchased the Crisa company and
therefore wanted to consolidate that new product line
into their larger outlet store in Phase two. Since we
have plenty of demand to fill their space, and they did
not wish to operate two separate stores in the same
center, we allowed them to consolidate to their larger
store in phase two and have released their space in phase
one.
There is one other company which has a store in Lake
Elsinore which will be closing all 50 of their outlet
stores across the country. However, we already have
three other tenants who want their space in the Lake
Elsinore center, and they have not even closed their
store yet.
I hope this helps to clarify our conversation. Please
don't hesitate to call if you have any further questions.
Sincerely,
Kenny M. Smith
BOARDMEMBER COMMENTS
Boardmember Washburn advised that he met with Laura May Leach, the
new librarian to address the future needs of the library. He
indicated that she would be meeting with staff to evaluate future
needs further.
Boardmember Alongi commented on the Amber Ridge Sewer System
consideration indicating that problems occur because the tendency
is to address only the politically important areas. He further
commented that the residents in the areas mentioned in item #'7 need
the assistance as much if not more than Amber Ridge. He also
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PAGE EIGHT - REDEVELOPMENT AGENCY MINUTES - FEBRUARY 9j 1993
commented that he doesn't deny that Amber Ridge needed assistance,
however, he is opposed to the method of payment.
Boardmember Alongi advised that he had planned not to address the
Recall this evening, however, if the Council /Board intends to keep
discussing it they should be prepared for him to address it as
well.
Boardmember Alongi commented further on the Avenues, noting that
they already pay a fee to the water district and have for some
time. He further commented that he knows he is sitting in conflict
of interest by discussing this issue, but indicated that he is the
only Boardmember willing to bring this issue forward.
CLOSED SESSION
THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED
SESSION WITH THE CITY COUNCIL TO DISCUSS MATTERS OF POTENTIAL
LITIGATION AT 9:06 P.M.
THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 10:15 P.M. NO
ACTION TAKEN.
MOVED BY WASHBURN, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS
VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 10:15
P.M.
ATTEST:
VICKI KASAD, CLERK OF THE BOARD
REDEVELOPMENT AGENCY
JIM WINKLER, CHAIRMAN
REDEVELOPMENT AGENCY
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