HomeMy WebLinkAboutItem No. SA1AMINUTES
REGULAR REDEVELOPMENT AGENCY MEETING
CITY OF LAKE ELSINORE
31315 CHANEY STREET
LAKE ELSINORE, CALIFORNIA
TUESDAY, APRIL 271 1993
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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
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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.
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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.
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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
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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
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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
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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
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