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HomeMy WebLinkAboutItem No. SA1AMINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 31315 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, APRIL 271 1993 •## f## fi*# f## f* f#* f### if### f * #ff# *fi! * *ff # * # # * # * # # # #f *! * *f tffff *fff CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairman Winkler at 9:30 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, CHERVENY, DOMINGUEZ, WASHBURN, WINKLER ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Legal Counsel Harper, Administrative Services Director Boone, Community Development Manager Shear, City Planner Leslie, Community Services Director Sapp, Public Services Director Tecca, Manager of Special Projects Watenpaugh, City Treasurer Pape and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS None requested. CONSENT CALENDAR MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY A VOTE OF 4 TO 0 WITH CHERVENY ABSTAINING TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - April 13, 1993. 2. Received and ordered filed the Investment Report for March 31, 1993. 3. Ratified Warrant List for April 15, 1993. 4. Ratified Lake Transfer Agreement final form. 5. Concurred with City Council Action on the Structure Abatement Program. BUSINESS IT 6. Lake Park and Recreation Enterprise Fund. Executive Director Molendyk explained this item and the logistics of the Agency loaning money to the City, to be recouped when the $1.5 million comes to the City with the transfer. He further explained that staff had proceeded to comply with requests to get the lake open. He announced that there would be a short ceremony on Wednesday, April 28th AGENDA ITEM h0. PAGE I OF-'-�_ PAGE TWO - REDEVELOPMENT AGENCY MINUTES - APRIL 27v 1993 officially opening the launch facility. He noted that the business community felt this was an important action for the summer months. Manager of Special Projects Watenpaugh detailed the efforts of staff in cooperation with State representatives to provide this facility. He noted that a quality launch facility has been completed in approximately 3 -1/2 weeks. He detailed the specifications of the ramp and facility and advised that the total cost to date was approximately $84,000. Executive Director Molendyk noted that the facility meets all handicapped requirements. Manager of Special Projects Watenpaugh show photos of the work completed at various stages of the project. He noted that work had also been coordinated with the City's traffic engineer to provide good circulation and parking areas. He also noted that there were a number of launch facilities on the Grand Avenue side of the lake, but they can not meet the needs. He explained that it is anticipated that as many as 200 boats per day could be processed at this location. Boardmember Alongi questioned the facilities launching in the County area and to whom their launch fees were paid. Mr. Watenpaugh explained that they are private facilitiesand can charge launch fees as they determine appropriate, however the day use fee still goes to the State. Public Services Director Tecca explained the traffic circulation in the vicinity of the launch ramp. He 'further explained that Lakeshore Drive had been striped for two traffic lanes, with one designated for boat trailers. He detailed the ingress and egress from the parking area to the ramp facility. ' Boardmember Washburn questioned the parking facility and what measures had been used to address the dust it might generate. Mr. Tecca explained that the drive areas of the lot have been covered with decomposed granite to cut down on dust,, -as well as coating the entire lot with magnesium chloride. Boardmember Alongi expressed concern with the traffic on Main Street and whether it would be turning on Graham Street. Mr. Tecca indicated that traffic would be directed to use the truck route and clarified the routes. Boardmember Alongi questioned the traffic back up and ;whether arrangements had been made with the Sheriff's Department. Mr. Molendyk advised that there is a plan in place to use the bike patrol to provide visibility in the area and ';address traffic concerns if necessary. Boardmember Washburn commended staff for their work on this project and their success in completing the project in three weeks time. Boardmember Cherveny questioned the police bike patrol and whether they would be additional officers. Mr. Molendyk explained that the expenditures for the first month would be from the special fund allocated for overtime officers. Boardmember Cherveny questioned the cost of this project. Mr. AGENDA ITEM NO. PACE (2, OF PAGE THREE - REDEVELOPMENT AGENCY MINUTES - APRIL 27# 1993 Watenpaugh advised that the cost to date had been $83,853.50. MOVED BY WASHBURN, SECONDED BY DOMINGUEZ TO AUTHORIZE THE ESTABLISHMENT OF THE LAKE PARK AND RECREATION ENTERPRISE FUND AND THE REDEVELOPMENT AGENCY AUTHORIZE A LOAN OF $175,000 TO THE CITY TO ESTABLISH THE FUND, CONDITIONED ON THE REPAYMENT OF THE LOAN UPON THE TRANSFER OF THE LAKE AND THE $1,5 MILLION FROM THE STATE TO THE CITY. Boardmember Alongi questioned the ability to proceed with this project without Council /Board approval. He further questioned why Council did not know this project was occurring. He also questioned the advertisement for bids and the whether this was legal processing. He noted that he was not opposed!«'to the work. Legal Counsel Harper indicated that with regard to the issue of bids, the public contract laws do not allow to the purchase of capital goods. Boardmember Cherveny inquired whether this was funding was City or Redevelopment Agency. Mr. Harper indicated that his understanding was that it was Redevelopment Agency.?; funds. Executive Director Molendyk clarified that it `was a Redevelopment Agency expenditure to set up the enterprise account. Boardmember Alongi commented that he did not feel that because Council is still at odds, a meeting could not have been held to explained the project in detail. He disagreed that paving and grading are capital expenditures. Boardmember Alongi further commented that if the Mayor and Redevelopment Agency Chairman want to bring the Council together as a team, they should work jointly for the good of the community. He indicated that he brought the idea for the parking lot on the property across the street from the ramp. He noted that all boardmembers have something to contribute. Chairman Winkler indicated that Boardmember Alongi obviously had more to do with the project than he, as he was unaware of discussions involving the lot across from the ramp. He stressed the quick action of the manager to get the lake open to the public. He indicated that the Board should, not be involved in the day to day operations of the City or the mechanics of the project. THE FOREGOING MOTION CARRIED BY A VOTE OF 4 TO 0 WITH CHERVENY ABSTAINING. 7. Structure Abatement at 31085 Machado Street. Executive Director Molendyk explained that this request was the result of a recent abatement process and amounted to approximately $5,000 to $7,000 for demolition. MOVED BY CHERVENY, SECONDED BY ALONGI TO DENY THE REQUEST AND ACCEPT STAFF RECOMMENDATIONS. Mr. Allen, property owner explained that the funds would be to reimburse him for demolition. AGENDA ITEM NO. I I CL''jj - pAGC 3 OF —L PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - APRIL 27j, 1993 Boardmember Washburn commented that the Board had previously provided letters indicating a project could receive assistance and inquired whether there was any interest in a project at this location. Mr. Allen indicated that he had previously supplied letters regarding possible projects such as a medical center or a auto related complex. He noted that there is interest in this location and he felt it was approaching development. Boardmember Washburn suggested that this area might need to be addressed for projects. He suggested possible assistance with off -site improvements, if development were to occur " in the next 3 to 5 years. Chairman Winkler suggested that this be considered when a project comes before the Board, although that was; not a guarantee. He concurred with denial of the request and recommended demolition by the owner with no financial assistance. He further suggested that Mr. Allen meet with Mr. Shear to proceed with demolition. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. 8. $20,000 Loan - classic Western Productions. Executive Director Molendyk explained that at the Meeting of March 28, 1993, Classic Western Productions, Inc. requested a one year extension for repayment and staff was directed to provide more detail on the outstanding issues and return to this Agency meeting. Mr. Molendyk gave a breakdown;, of the costs and explained that the approximate total for Agency participation is $26,694.22 and Western Classic has', made a payment of $2,000 with a remaining balance of $24,;694.22. Staff recommended that should the agency decide to extend the loan, charging of an interest rate would be appropriate. Chairman Winkler questioned for the amount of the original loan. Executive Director Molendyk advised that the original loan amount was $20,000 with a remaining balance of $18,000. MOVED BY CHERVENY TO WAIVE THE REPAYMENT OF THE LOAN. THE MOTION DIED FOR LACK OF A SECOND. Chairman Winkler questioned the outstanding issues and who was responsible for the loan. Executive Director Molendyk explained that the City is the renter and is obligated to pay the $1,500 to the Chamber of Commerce for repairs. The Chamber of Commerce has a $1,000 deposit and has requested an additional $500 to put the Rodeo Arena back into;; shape. Chairman Winkler asked if Classic Western Productions was disputing this issue. Boardmember Alongi stated that they were. Boardmember Alongi commented that when the owner leases a facility it is the owner's responsibility to provide adequate security and the Chamber must accept some responsibility for items lost; the conditions of the rodeo grounds was caused by the weather and normal use. Mr. Alongi stated that it`'was his understanding that the Community Center was also part of the Rodeo grounds activities and that there would be no charge except for cleaning. Executive Director Molendyk explained that whether the Council chose to waive the cost of the AGENDA ITEM -NO, PAGE . OF PAGE FIVE - REDEVELOPMENT AGENCY MINUTES - APRIL 27* 1993` Community Center or not there was a value placed on the use of the facility and it was the intent of staff to show the total financial obligation to the City. With this discussion being the $20,000 loan of which $2,000 has been repaid. Boardmember Dominguez stated that when this issue was proposed it was a business deal and should be handled as such. He noted that a loan was extended in the amount of $20,000 of which $2,000 was paid back, leaving a balance of $18,;000. MOVED BY DOMINGUEZ, SECONDED BY WASHBURN TO CALL FOR THE PAYMENT OF THE REMAINING BALANCE OF $18,000 ON THE LOAN TO WESTERN :'CLASSIC PRODUCTIONS WITH THE REMAINING $6,694.22 TO BE PAID BACK ON A LOAN BASIS WITH PAYMENTS SCHEDULED AT A SET AMOUNT AT A 7% INTEREST RATE. Chairman Winkler explained that he has a problem with the $6,694.22 being paid back since he doesn't feel that the Agency has all the facts regarding this issue. He stated he would prefer to address the $18,000 loan balance only. Executive Director Molendyk stated that he agreed with the Board that this should address the $18,000 remainingbalance on the loan. The cost of the Community Center was placed in the report to show the value of the contribution and'not for repayment. Chairman Winkler explained that the $6,694.22 should be brought back at a later time to allow staff to provide''further information. MOVED BY DOMINGUEZ, SECONDED BY WASHBURN TO AMEND MOTION'TO CALL FOR PAYMENT OF THE REMAINING BALANCE OF THE LOAN TO WESTERNJ'CLASSIC PRODUCTIONS OF $18,000 TO BE PAID IN FULL. Boardmember Alongi stated that the Agency needs to look at what Western Classic Productions was trying to do ':for the community. Just as the City and Agency are placing the dock for the public, so did the Western Classic Productions; present the Rodeo. He further explained that the weather created the situation and he feels that the Agency should exten& the time for pay back of the loan to give Western Classic Productions the time to raise the money. Chairman Winkler explained that he would rather call for the pay back of the remaining amount on the loan of $18;000 and then work with the people who have made the personal guarantees for the loan. Legal Counsel Harper explained that since he did not have the information on the personal guarantees he not sure to what extent they cover the loan nor who executed them. He!ffurther explained that in terms of the expenditure of City money and trying to recover on personal guarantees, a demand would be made for the loan and then the Agency could work with the organization and the persons who made the guarantees. THE FOREGOING MOTION CARRIED BY A VOTE OF 4 TO 1 WITH CHERVENY CASTING THE DISSENTING VOTE. PUBLIC COMMENTS - NON- AGENDIZED ITEMS Chris Hyland, 15191 Wavecrest, questioned the Lake Transfer AGENDA ITEM LLNO. �_ PAGE J OF —7— PAGE SIX — REDEVELOPMENT AGENCY MINUTES - APRIL 27, 1993 Agreement and its impact on the Eastern Municipal Water District Agreement with E.V.M.W.D. She inquired whether the agreement presented for consideration was the preliminary one or a changed one. She addressed Mr. Lech regarding his comments to Boardmember Cherveny and their inappropriateness. Linda Boyd, resident of Sun City, addressed the weed abatement program on two lots she owns on Graham Street. She expressed concern that she was charged the previous year, even though she cleared the lot herself. She questioned the $250 administrative fee and requested that her situation be resolved. Chairman Winkler referred Ms. Boyd to Community Development Manager Shear for assistance. Peter Dawson, 18010 Grand Avenue, commented that the lake opening has been of great assistance to the local businesses and &:benefit to the community. He thanked staff for speeding up the construction of the launch ramp. He inquired which draft, of the Lake Transfer Agreement had been ratified this evening. EXECUTIVE DIRECTOR'S REPORT None. BOARDMEMBER COMMENTS Boardmember Alongi commented on the following: 1. Policy for putting items on the agenda. 2. Only had the City car for 5 days because of storm threat and his knowledge of problem areas in the City to relay information via the two way radio. 3. Lake Transfer Agreement, thought it would be discussed and therefore did not remove from consent calendar. 4. Main problem with the Council, not an issue of 3 votes, but an issue of keeping all members equally informed. f Boardmember Dominguez commented on the following: 1. His enjoyment of this meeting, because priorities of the Community had been addressed. He noted that it was good to hear from the residents about the lake. He thanked the City Manager and staff for their aggressive approach with the lake. Boardmember Washburn commented on the following: 1. When good policies are in place and staff has leverage to proceed much can be accomplished. 2. The Lake Management Project has been important for the Community, as well as the agreement to operate and fill the lake and the pending transfer. He stressed his pride in being part of this process. Chairman Winkler commented on the following: 1. Lake Transfer Agreement, a few changes requested by the Water Board and some technical changes were included, but AGENDA ITEM NO, � PAGE OF _ PAGE SEVEN AGENCY MINUTES - APRIL 27p 1993 this action was only for ratification this evening. He noted that the underlying agreement still exists and supports this agreement. He further noted that the patrol services are addressed by a separate agreement. CLOSED SESSION None. MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 10:54 P.M. JIM WINKLER, CHAIRMAN REDEVELOPMENT AGENCY ATTEST: VICKI KASAD, CLERK OF THE BOARD REDEVELOPMENT AGENCY AGENDA ITENj0. !"= PAGE _L OF