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Home My WebLink About01-09-1992 RDAMINUTES SPECIAL REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, JANUARY 9, 1992 ***~*********************************************************~**** l. CALL TO ORDER The Special Redevelopment Agency Meeting was called to order by Chairman Buck at 3:10 p.m. 2. ROLL CALL PRESENT: BOARDMEMBERS: DOMINGUEZ, STARKEY, WINKLER, WASHBURN, BUCK ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Community Development Manager Shear, Special Projects Coordinator Wood and Clerk of the Board Kasad. 3. CONSENT CALENDAR A. Resolution No. RDA 92-1 - Authorizing a Loan Agreement relating to the issuance of Public Finance Authority Bonds and Approving Official 5tatement. (F:126.5) MOVED BY STARKEY, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION N0. RDA 92-1: RESOLUTION N0. RDA 92-1 AUTHORIZING AND DIRECTING THE EXECUTION OF A LOAN AGREEMENT RELATING TO THE ISSUANCE OF CERTAIN BONDS BY THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY, APPROVING FINAL OFFICIAL STATEMENT RELATING TO SUCH BONDS, AND AUTHORIZING AND APPROVING OTHER MATTERS PROPERLY RELHTING THERETO. 4. ADJOURNMENT MOVED BY STARKEY, SECONDED BY WASHBb~ AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE SPECIAL REDEVELOPME AGENCY~~TTNG AT 3:11 P.M. / ~ A TEST: ~ ~ ~,~ /~~-~L~°'~ -- ICKI Y..ASAD, CL!~:RK OF THE BOARD REDEVELOPMEYT P.aENCY WILLIAM S. BUCK; CHAIRMAN REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY Of LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIfORNIA TUESDAY, JANUARY 14, 1992 *********************************~xx******************************* CALL TO ORDER _ The Regular Redevelopment Agency Meeting was called to order by Boardmember Washburn at 8:20 p.m. ROLL CALL PRESENT: BOARDMEMBERS: DOMINGUEZ, WASNBURN, WINKLER ABSENT: BOARDMEMBERS: BUCK, STARKEY Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Development Manager Shear, Community Services D'irector Watenpaugh, Public Services Director Tecca and Clerk of the Board Kasad. ' PUBLIC COMMENTS = AGENDIZED ITEMS Dick Knapp, 29690 Dwan Drive, inquired about Item l.a. Minutes and the action taken on item 3.C. of those Minutes. Boardmember Washburn advised that the study being undertaken in that item is in connection with the interchanges within the City. Public Services Director Tecca further clarified that it was for the Olive Street Interchange study to review the potential alternatives. He also explained the Caltrans requirements for this type of study and the timing involved. CONSENT CALENDAR MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE CONSEMT CALENDAR AS PRESENTED. 1. The following Minutes were approved a. Adjourned Redevelopment Agency Meeting - December 19, 1991. (F:134.3) 2. Received and ordered filed the Investment Report for November, 1991. (F:12.5) 3. Ratified the following Warrant Lists: a. December 16, 1991. (F:12.3) b. December 30, 1991. (F:12.3) 4. Approved Change Orders 30 and 33 for Collier Avenue Improvements between Riverside Drive and Nichols Road involving widening of Collier Avenue and restraini,ng joints for the twelve-inch waterline. (F:156.2) PUBLIC COMMENTS _ NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTOR REPORT None. :.,PAGE.TWO - REDEVELOPMENT AGENCY MINUTES - JANUpRY 14, 1992 BOARDMEMBER COMMENTS None. ~:CLOSED SESSION Nane. 11DJOURNMENT .'MOVED BY WINKLER, SECONDEO BY DOMINGUEZ AND CARRIED BY UNANIMOUS VbTE OF THOSE PRESENT TO ADJOURN T~E REGULAR REDEV~LOPMENT AGENCY .M~ETING AT 8:25 P.M. ~ ~,~1 GARY . WASHBURN, BOARDMEMBER ~ RED E PMENT AGENCY ±;•RTffEST: ~ •rn~u~ .` ,'.`, ~ ~' ~~. KASAD, CLERK OF THE BOARD ELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, JANUARY 28, 1992 ****************************************************************** CALL TO ORDER The Regular Redevelopment Agency was called to order by Chairman Buck at 7:58 p.m. ROLL CALL PRESENT: BOARDMEMBERS: DOMINGUEZ, STARKEY, WASHBURN, WINKLER, BUCK ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Development Manager Shear, Community Services Director Watenpaugh, Public Services Director Tecca, City Planner Christen and Clerk of the Board Kasad. PUBLIC COMMENTS = AGENDIZED ITEMS Chairman Buck advised that he had a request to address item #4 of this agenda. CONSENT CALENDAR The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 3 and 4. MOVED BY WASHBURN, SECONDED BY STARKEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. i. The following Minutes were approved: a. Special Redevelopment Agency Meeting - January 9, 1992. (F:134.3) b. Regular Redevelopment Agency Meeting - January 14, 1992. (F:134.3) 2. Received and ordered filed the Investment Report for December, 1991. (F:12.5) ITEMS PULLED fROM CONSENT CALENDAR 3. Pro~ertv Acquisitiorr _ 120 Franklin Street. (F:134.8) Executive Director Molendyk commented orr this item in connection with the Nuisance Abatement Program. He explained the efforts to eliminate existing substandard buildings. MOVED BY WASHBURN, SECONDED BY STARKEY AND CARRIED BY UNANIMUU~ VOTE TO ACQUIRE THE PROPERTY FOR $32,000 PLUS CLOSING COSTS. 4. Notice of Completion = Peck Street Parkinp Lot. (F:112.2) City Manager Molendyk advised that after questions from the Redevelopment Agency Boardmembers at the last meeting this PAGE TWO - REDEVELOPMENT AGENCY MINUTES - JANUARY 28, 1992 item was continued for further review of the 13 change orders. He further advised that they are detailed in the staff report and represent only a 7% increase in the projected cost. Dick Knapp, 29690 Dwan Drive, expressed concern with the cost of this project. Boardmember pominguez expressed concern with the landscaping and some trees which have been broken. Executive Director Molendyk advised that they will be replaced. Boardmember Washburn commented that he feels the change orders are appropriate. MOVED BY DOMINGUEZ, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO CONCUR WITH COUNCIL ACTION TO ACCEPT THE NOTICE OF COMPLETION. EXECUTIVE DIRECTOR REPORT Executive Director Molendyk advised that the 0utlet Center Phase 2 should begin in April and Phases 3 and 4 should begin in early Fall. COMMENTS None. THE REDEVELOPMENT AGENCY MEETING WAS RECESSED AT 8:05 P.M. THE REDEVELOPMENT AGENCY MEETING RECONVENED AT 8:06 P.M. CLOSED SESSION THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO CLOSED SESSION AT 8:06 P.M. TO DISCUSS A MATTER OF POTENTIAL LITIGATION REGARDING A CAPITAL PROJECT. THE REDEVELOPMENT AGENCY MEETING RECONUENED AT 8:49 P.M. NO ACTION TAKEN. ADJOURNMENT MOVED BY DOMINGUEZ, SECONDED BY TO ADJOURN THE REGULAR REDEVELO AND CARRIED BY UNANIMOUS VOTE AGENCY MEETING AT 8:50 P.M. / / ~ y._, WILLIAM S. BUCK, CHAIRMAN REDEVELOPMENT AGENCY Vi:,'Y,I KASAD, CLERK OF THE BOARD REDEVELOPMEN? AGENCY __ _ __ .. _ _ _. MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA 7UESDAY, FEBRUARY 11, 1992 **************************************************************************~r,r*** CALL TO ORDER Tfie Redevelopment Agency Meeting was called to order by Chairman Buck at 8:10 p.m. ROLL CALL PRESENT: BOARDMEMBERS: DOMINGUEZ, STARKEY, WASHBURN, WINKLER, BUCK ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS None. CONSENT CALENDAR MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS UOTE TO ADD ITEM #11 FROM THE CITY COUNCIL AGENDA TO THIS AGENDA. MOVED BY STARKEY, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS IIOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - January 28, 1992. (F:134.3) 2. Ratified the following Warrant Lists: a. January 15, 1992. (F:12.3) b. January 31, 1992. (F:12.3) 3. Concurred with Council Action to Approve the Second Amendment to Joint Powers Agreement with Elsinore Water District. (F:134.7)(X:68.1) 4. Approved Change Order Nos. 35, 36 and 37 for Collier Avenue Improvements between Riverside Drive and Nichols Road in the amounts of $25,224.00, $20,760.00 and $10,614.60 respectively. (F:156.2) 5. Approved Change Order No. 34 for Collier Avenue Improvements between Riverside Drive and Nichols Road in the amount of $64,469.25. (f:156.2) 6. Lake Manaaement Pro.iect Chan e Order Itein #11 from Citv Council A enda . (F:92.2) Executive Director Molendyk explained this item based on the agreement between E.V.M.W.D. and the City. MOVED BY WASHBURN, SECONDED BY STARKEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CHANGE ORDER IN THE AMOUNT OF $19,000. PUBLIC COMMENTS - NON-AGENDIZED ITEMS None. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - FEBRUARY 11, 1992 EXECUTIVE DIRECTORS REPORT Executive Director Molendyk advised that the Downtown Revitalization Project is on scheduled and has received many compliments. Executive Director Molendyk also advised that the Outlet Center had its official Grand Opening and the owners of that center are very complimentary toward the City and the success of the center. BOARDMEMBER COMMENTS None. CLOSED SESSION THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO JOINT CLOSED SESSION WITH THE CITY COUNCIL AT 8:14 P.M. TO DISCUSS MATTERS OF PENDING AND POTENTIAL LITIGATION. THE REDEVELOPMENT AGENCY MEETING RECONVENED AT 9:10 P.M. NO ACTION TAKEN. ADJOURNMENT MOVED BY BUCK, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 9:10 P.M. ATTEST: ~~'~n ~ VICKI KA AD, CLERK OF THE BOARD REDEVELOPMENT AGENCY - -. ~ ~ ,. _ ~ --- _ _ C ~ _ WILLIAM S. BUCK, CHAIRMAN REDEIIELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, FEBRUARY 25, 1992 ******************************************************************************* CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairman Buck at 8:00 p.m. ROLL CALL PRESENT: BOARDMEMBERS: DOMINGUEZ, STARKEY, WASHBURN, WINKLER, BUCK ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear; City Planner Christen and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS None. CONSENT CALENDAR MOVED BY DOMINGUEZ, SECONDED BY STARKEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Re~ular Redevelopment Agency Meeting - February 11, 1992. (F:134.3) 2. Adopted Resolution No. RDA 92-2 regarding the 1992 Series C Tax A7location Revenue Bond Issuance. (F:126.5) RESOLUTION N0. RDA 92-2 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE AUTHORIZING AND DIRECTING THE EXECUTION OF A LOAN AGREEMENT RELATING TO THE ISSUANCE OF CERTAIN BONDS BY TNE LAKE ELSINORE PUBLIC FINANCING AUTHORI7Y, APPROVING fINAL OFFICIAL STATEMENT RELATING TO SUCH BONDS, AND AUTHORIZING AND APPROVING OTHER MATTERS PROPERLY RELATING THERETO. 3. Approved Lake Elsinore Outlet Channel Assurance Agreement between Riverside County Flood Control and Water Conservation District, City of Lake Elsinore Redevelopment Agency, Elsinore Valley Municipal Water District and State of California Department of Parks and Recreation; and authorized the Chairman to sign on behalf of the Redevelopment Agency. (F:68.1)(X:134.7)(X:92.2) PUBLIC COMMENTS - NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTORS REPORT Executive Director Molendyk advised that the Main Street Project is on schedule and nearing completion. Boardmember Washburn questioned the official opening of the two block section. Public Services Director Tecca advised that the project would be complete in 2 to 3 weeks. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - FEBRUARY 25, 1992 Executive Director Molendyk commented on the slurry seal and other improvements that will be beginning within the next week. Public Services Director Tecca detailed the types of improvements and locations. BOARDMEMBER COMMENTS None. CLOSED SESSION None. ADJOURNMENT MOUED BY WASHBURN, SECONDED BY STARKEY AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 8:02 P.M. `'~°-x.~ S ' . ~,l~ e__~__.~ WILLIAM S. BUCK, CHAIRMAN REDEVELOPMENT AGENCY TTEST: > (~~ VICKI KASAD, CLERK OF THE BOARD REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MARCH 10, 1992 ******************************************************************~************ CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairman Buck at 8:43 p.m. ROLL CALL PRESENT: BOARDMEMBERS: DOMINGUEZ, STARKEY, WASHBURN, WINKLER, BUCK ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS Request was received to address Item No. 3. CONSENT CALENDAR MOVED BY WASHBURN, SECONDED BY STARKEY AND CARRIED BY UNANIMOUS VOTE TO ADD ITEM N0. 11 FROM THE CITY COUNCIL AGENDA AS ITEM 6 ON THIS AGENDA. The following item was pulled from the Consent Calendar for further discussion and consideration: Item No. 6. MOIIED BY WINKLER, SECONDED BY STARKEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - February 25, 1992. (F:134.3) 2. Received and ordered filed the Investment Report for January 31, 1992. (F:12.5) 3. Ratified Warrant Lists: a. February 19, 1992 (F:12.3) b. February 28, 1992 (F:12.3) 4. Authorized the appropriation of Inspection Fees in the amount of $25,432.00 for the Twelve-Inch Waterline in Collier Avenue between Riverside Drive and Nichols Road. (F:156.2) 5. Adopted Resolution No. RDA 92-3 relating to Tax Allocation Bond Anticipation Notes, 1992 Series. (F:126.5) RESOlUTION N0. RDA 92-3 - A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY Of LAKE ELSINORE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $5,750,000 PRINCIPAL AMOUNT OF RANCHO LAGUNA REDEVELOPMENT PROJECT AREA N0. III TAX ALLOCATION BOND ANTICIPATION NOTES, 1992 SERIES, APPROVING AND AUTHORIZING AND DIRECTING EXECUTION OF INDENTURE OF TRUST RELATING THERETO, AUTHORIZING SALE OF SUCH NOTES, APPROVING OFFICIAL STATEMENT AND PROVIDING OTNER MATTERS PROPERLY RELATING THERETO. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - MARCH 10, 1992 ITEMS PULLED FROM CONSENT CALENDAR 6. San Jacinto/Lakeshore Drive Bridae Replacement = Contract for Professional Services. (F:156.2) Boardmember Washburn commented on this project and requested Public Services Director Tecca to give an overview. Public Services Director Tecca explained that the funds for this project were allocated some time ago, however after the Loma Prieta Earthquake they had been reallocated, and approximately two weeks ago they were reallocated to this project. He showed the plan for the new bridge and clarified the temporary and permanent right-of-ways. He detailed the specifications of the new bridge and explained that the contract proposed is for an update of the materials previously prepared. Boardmember Starkey questioned the final design and the portion that would be four lanes plus a median. Mr. Tecca advised that the four lane section would be from Railroad Canyon Road across the bridge. MOVED BY WASHBURN, SECONDED BY STARKEY AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT. PUBLIC COMMENTS - NON-AGENDIZED ITEMS Dick Knapp, 29690 Dwan, commented on the impact of development on the police and fire services currently available to the Community. He further commented on the procedure of paying off of bond issuances. He clarified that he feels the General Fund is only a small part of the picture and suggested that the money for police, fire, etc. needs to be increased. EXECUTIVE DIRECTORS REPORT Executive Director Molendyk clarified the inability to utilize Redevelopment Agency funds for police services. Legal Counsel Harper further clarified the limitations of Redevelopment funding. BOARDMEMBER COMMENTS Boardmember Washburn commented on the current projects underway such as Graham Street and stressed that those monies are limited to that type of use for physical improvements and can not be used for salaries, etc. THE REDEVELOPMENT AGENCY MEETING WAS RECESSED AT 8:55 P.M. THE REDEVELOPMENT AGENCY RECONVENED AT 8:56 P.M. CIOSED SESSION THE REDEVELOPMENT AGENCY ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL AT 8:56 P.M. TO DISCUSS ACQUISITION OF PROPERTY. THE REDEVELOPMENT AGENCY RECONVENED AT 9:31 P.M. NO ACTION TAKEN. MOVED BY DOMINGUEZ, SECONDED BY BUCK A THE REGULAR REDEVELOPMENT AGENCY MEETI A EST. V AD, CIERK OF THE BOARD REDEVELOPMENT AGENCY ~, r .~ 32 WILLIAM S. BUCK, CHAIRMAN REDEVELOPMENT AGENCY VOTE TO ADJOURN MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MARCH 24, 1992 ******************************************************************************* CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairman Buck at 9:06 p.m. ROLL CALL PRESENT: BOARDMEMBERS: DOMINGUEZ, STARKEY, WASHBURN, WINKLER, BUCK ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS Chairman Buck advised that he had requests to address Item Nos. 2 and 3 of this agenda. CONSENT CALENDAR The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 2, 3& 4. MOUED BY WINKLER, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - March 10, 1992. (F:134.3) 5. Concurred with Council Action to Approve the Extension of Time on Tentative Parcel Map 22385 for Dura Construction. (F:110.2) ITEMS PULLED FROM CONSENT CALENDAR 2. Warrant List = March 17• 1992. (F:12.3) Tony Gilenson 151 N. Torn Ranch Road, requested clarification of a list of Checks on this list. Chairman Buck referred Mr. Gilenson to Administrative Services Director Bob Boone for clarification. 3. Rehabilitation of Mission Trail from Svlvester Street to Cam~bell Street. (f:156.2) Dick Knapp, 29690 Dwan Drive,'commented on prior negotiations on this project and stressed the need to beqin work right away. City Attorney Harper clarified that the City did not build the project, E.V.M.W.D. disclaims responsibili2y, and T& S Development has not accepted the responsibility. He explained the the Engineering Study done on this problem shows the responsibility belongs to E.V.M.W.D., however, the City feels responsible to its residents to repair the problem. He stressed that the City will look to the other parties for funding of the repairs. MOVED BY BUCK, SECONDED BY STARKEY AND CARRIED BY UNANIMOUS VOTE TO AUTHORIZE PAGE TWO - REDEVELOPMENT AGENCY MINUTES - MARCH 24, 1992 THE APPROPRIATE OF $800,000.00 FOR REHABILITATION AND RECONSTRUCTION OF MISSION TRAIL; AUTHORIZE THE CITY ENGINEER TO ADVERTISE AND THE EXECUTIVE DIRECTOR TO AWARD CONTRACT FOR THE PROJECT AND AUTHORIZE STAFF AND THE CITY ATTORNEY TO PURSUE REIMBURSEMENT FOR THIS EXPENDITURE FROM ELSINORE VALLEY MUNICIPAL WATER DISTRICT. 4. Propertv Acauisition = Methodist Church. (F:134.8) Boardmember Washburn suggested that this approval include a right of lease-back arrangement if necessary. MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND DEFEATED BY A VOTE OF 2 TO 3 WITH BUCK, DOMINGUEZ AND STARKEY CASTING THE DISSENTING VOTE TO APPROVE THE PROPERTY ACQUISITION WITH A LEASE-BACK ARRANGEMENT AS NECESSARY. Chairman Buck expressed concern with a lease-back of the property because he felt this arrangement could be strung out for a long period of time. He explained that if an ongoing lease is allowed, the grant funding could be delayed. He suggested that the City reserve a 30 day termination clause. MOVED BY BUCK, SECONDED BY DOMINGUEZ AND CARRIED BY A VOTE OF 4 TO 1 WITH WASHBURN CASTING THE DISSENTING UOTE TO APPROVE THE PROPERTY ACQUISITION WITH A 30 DAY TERMINATION CLAUSE. PUBLIC COMMENTS = NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTORS REPORT Executive Director Molendyk advised that all four lanes of Collier Road should be open by the end of April, and Phase II of the Outlet Center should begin in the next two weeks. BOARDMEMBER COMMENTS Chairman Buck thanked Boardmember Starkey for his efforts in obtaining a detour for the Lakeshore Bridge Reconstruction Project. - THE REDEVELOPMENT AGENCY MEETING WAS RECESSED AT 9:14 P.M. THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 9:16 P.M. CLOSED SESSION THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL AT 9:16 P.M. TO DISCUSS THE LEHR OPTION FOR PROPERTY ACQUISITION. THE REDEVELOPMENT AGENCY RECONVENED AT 9:35 P.M. NO ACTION TAKEN. ADJOURNMENT MOVED BY DOMINGUEZ, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 9~36 P.M. ~iM WINKLER,.VICE~6H REDEVELOPMENT AGENCY AT,TEST: PICKI KASAD, CLERK OF THE BOARD REDEVELOPMENT AS~NCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, APRIL 28, 1992 *~***************************************************************************** CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Mayor Washburn at 7:10 p.m. PUBLIC COMMENTS - AGENDIZED ITEMS Chris Hyland, 15191 Wavecrest; commented on the April 24th Study Session and a statement by Boardmember Winkler relating to the Redevelopment Agency Chairmanship. She further commented on "daisy-chain" or "serial meetings" ~d her belief that such had occurred in violation of the Brown Act. CEREMONIALS A. Selection of Chairman & Vice-Chairman. (F:134.1) Mayor Washburn opened nominations for Chairman of the Redevelopment Agency. BOARDMEMBER WINKLER NOMINATED BOARDMEMBER CHERUENY.. BOARDMEMBER DOMINGUEZ NOMINATED BOARDMEMBER WINKLER. Boardmember Winkler withdrew his name from the nominations and clarified his statements of Apri1 24th, indicating that he was only indicating his support of Boardmember Cherveny for the Chairmanship. He further indicated that he had no prior discussions with other Boardmembers, but chose to indicate his preference at that time. He explained that he felt the selection of Boardmember Cherveny would be good for the Community and re-emphasized his support. MOVED BY DOMINGUEZ, SECONDED BY CHERVENY AND CARRIED BY UNANIMOUS VOTE TO CLOSE NOMINATIONS FOR CHAIRMAN. ROLL CALL VOTE HAD THE FOLLOWING RESULTS: BOARDMEMBER ALONGI VOTED FOR BOARDMEMBER CNERVENY. BOARDMEMBER CHERVENY VOTED FOR BOARDMEMBER CHERUENY. BOARDMEMBER DOMINGUEZ VOTED FOR BOARDMEMBER CHERVENY. BOARDMEMBER WINKLER VOTED FOR BOARDMEMBER CHERVENY. BOARDMEMBER WASHBURN VOTED FOR BOARDMEMBER CHERVENY. Mayor Washburn opened nominations for Vice-Chairman of the Redevelopment Agency. BOARDMEMBER DOMINGUEZ NOMINATED BOARDMEMBER WINKLER. BOARDMEMBER CHERVENY NOMINATED BOARDMEMBER ALONGI. MOVED BY CHERVENY, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO CLOSE THE NOMINATIONS FOR VICE-CHAIRMAN. ROLL CALL VOTE HAD THE FOLLOWING RESULTS: BOARDMEMBER ALONGI VOTED FOR BOARDMEMBER WINKLER. BOARDMEMBER CHERVENY VOTED FOR BOARDMEMBER ALONGI. BOARDMEMBER DOMINGUEZ VOTED FOR BOARDMEMBER WINKLER. BOARDMEMBER WINKLER VOTED FOR BOARDMEMBER ALONGI. BOARDMEMBER WASHBURN VOTED FOR BOARDMEMBER WINKLER. THE REDEVELOPMENT AGENCY MEETING WAS RECESSED AT 7:19 P.M. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - APRIL 28, 1992 THE REDEVELOPMENT AGENCY MEETING RECONVENED AT 10:51 P.M. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen and Clerk of the Board Kasad. CONSENT CALENDAR Executive Director Molendyk requested that Item #9 be continued to the next meeting. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - March 24, 1992. (F:134.3) b. Regular Redevelopment Agency Meeting - April 14, 1992. (F:134.3) 2. Received and ordered filed the Investment Reports for: a. February 29, 1992. (f:12.5) b. March 31, 1992. (F:12.5) 3. Ratified Warrant Lists for: a. March 31, 1992. (F:12.3) b. April 15, 1992. (F:12.3) 4. Authorized execution of a contract for replacement of the plant material on Riverside Drive with Bee Valley Nursery in the amount of $2,820.21. (F:134.7) 5. Authorized agreement with San Bernardino County Museum to conduct a Cowbird Trapping Study for Collier Avenue, at a cost of $95,101.00. (F:134.7) 6. Approved Deferral of Permit Fees for E-Z Products in the amount of $4,699.71. (F:134.7) 7. Approved a purchase order for Repair of Lakeshore Drive Bridge at San Jacinto River by Artukovich and Sons, Inc. on a time and materials basis for $13,633.00. (F:156.2) 8. Approved Change Order No. 46 for Collier Avenue Improvements in the amount of $21,229.20. (F:156.2) 9. Continued Extension of Lehr Option to next meeting. (F:134.7) 10. Concurred with Council Action to Approve a One Year Extension of Time for Tentative Parcel Map No. 24571, Rancon Realty Fund IV. (F:110.2) PUBLIC COMMENTS = NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTORS REPORT ~ Executive Director Molendyk reported on the Redevelopment Agency's PAGE THREE - REDEVELOPMENT AGENCY MINUTES - APRIL 28, 1992 participation in the Inland Empire Economic Conference on April 23rd and 24th. He advised that Lake Elsinore was one of 35 cities represented and he felt it was a very productive conference. Executive Director Molendyk reminded the Board of the City's Economic Program to be held on May 14th. BOARDMEMBER COMMENTS Boardmember pominguez thanked staff for the good news on approvals for the Lakeshore Bridge. CLOSED SESSION ~done. ADJOURNMENT MOVED BY WASHBURN, SECONDED BY CHERVENY AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 10:53 P.M. , ~ ~~, ~ TERE CHERVENY, CHAIRMAN REDEVELOPMENT AGENCY e TTEST: VI KASAD, CLERK OF THE BOARD REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MAY 12, 1992 ******************************************************************************* CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 8:41 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen, Special Projects Coordinator Basham, Special Projects Coordinator Wood and Clerk of the Board Kasad. PUBLIC COMMENTS = AGENDIZED ITEMS None. CONSENT CALENDAR The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 4, 5 and 6. MOVED BY WINKLER, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - April 28, 1992. (F:134.3) 2. Ratified Warrant List for April 30, 1992. (F:12.3) 3. Adopted Resolution No. RDA 92-5 relating to Tax Allocation Bonds: (f;126.5) RESOLUTION N0. RDA 92-5 A RESOLUTION MAKING CERTAIN BENEFIT DETERMINATIONS RELATING TO THE RANCHO LAGUNA REDEVELOPMENT PROJECT AREA N0. I AND RANCHO LAGUNA REDEVELOPMENT PROJECT AREA N0. II OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE AND PROVIDING MATTERS PROPERLY RELATING THERETO. ITEMS PULLED FROM CONSENT CALENDAR 4. 516 North Main Street = Letter of Aqreement & Allocation of Funds. (F:134.7)(X:32.4) - Boardmember Alongi asked why the Agency would consider reimbursing 516 N. Main Street. Legal Counsel Harper explained that the agreement presented is the product of negotiations with the property owner to resolve an abatement problem without the necessity to take formal action. He further stated that after due consideration by the Redevelopment Agency, in an effort to resolve the problem in a timely fashion and to avoid litigation this agreement was reached between the property owner and the Agency to solve the problem. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - MAY 12, 1992 Mr. Harper further explained that the future provision relating to the application of fees was to encourage the immediate redevelopment of the property by the owner. Boardmember Alongi inquired whether any plans have been submitted to the Redevelopment Agency for the property. Legal Counsel Harper clarified that the agreement contains two parts; one for the demolition of the property and the other for the redevelopment of the property. He further explained that the Agency will stand the cost of demolition because the property owner disagreed with the demolition of the property and would have contested the City's position on the property and impeded the redevelopment of the property. Boardmember Alongi expressed concern with Redevelopment Agency funds being spent on private property having no time limit as to when the development will take place. He suggested that there be a time limit placed on the property, such as, if in twenty-four months development does not take place, the money spent will be converted into a low interest loan until such time as the property is developed. Mr. Alongi stressed that he feels a time limit is a necessity. Legal Counsel Harper clarified the demolition costs which he believed to be under $20,000, with the additional costs being lost income. He further clarified that the final figure was reached after much negotiation and would only be applied to development fees within the next five years. Boardmember Alongi stated that the taxpayer should not have to bear the cost if the development does not take place in a timely fashion. MOVED BY WASHBURN SECONDED BY WINKLER AND CARRIED BY A 4-1 VOTE WITH ALONGI CASTING THE DISSENTING VOTE TO APPROVE THE LETTER OF AGREEMENT AND ALLOCATION OF FUNDS. 5. "Sundowner Restaurant" = 16898 Lakeshore Drive. (F:134.7)(X:32.4) Executive Director Molendyk explained that this is another structure that has been brought to the Board as an eyesore. The property owner submitted a letter to the previous Redevelopment Agency Board requesting assistance to abate the structure because it is beyond repair. Mr. Molendyk further stated that the Agency might want to consider a interest free loan for a set period of time or a lien on the property. Boardmember Alongi still feels that there should be some type of time line to condition the property owner to either develop the property within a set time or to repay the Redevelopment Agency the funds at a low interest rate. He stressed his belief that the problems of the property owner are not the problems of the Agency; the Agency is responsible to the taxpayer and not individual property owners. Boardmember Alongi again stressed the need for a time limit. Boardmember Washburn stated that the City has had a successful structural abatement program which has yielded results, with part of the success due to the cooperation of the Redevelopment Agency's cooperation to facilitate the abatements. Boardmember Washburn stated that he has no problem with placing a time limit. Legal Counsel Harper stated that if that is the approach that the Board would like to take, then there should be a formulation of what the Agency would like and the item continued in order to take this issue back to the property owner. He further stated that under the assumption that the property owner did not agree then that would commence the abatement process. This allows for a number of hearings and an appeal process allowing the property owner the opportunity to rehabilitate the property. Legal Counsel Harper explained that one of the reasons the Redevelopment Agency approached the abatements in a lenient manner was to facilitate a speedy abatement and resolve the nuisances. He also clarified the process for placing a lien. PAGE THREE - REDEVELOPMENT AGENCY MINUTES - MAY 12, 1992 Boardmember Alongi reemphasized the need for a time limit. Boardmember Winkler stated that he was more interested in getting rid of some of the buildings rather than trying to rehabilitate them. He further stated that he would prefer to see this particular building demolished. Boardmember Alongi stated that he had no problem with taking the building down. Boardmember Winkler also stated that the Agency is being more aggressive on abatements and in doing so subsidizing the abatements. This reduces the opportunity for rehabilitation of the buildings and encourages abatement, creating the potential for improved developments on those sites. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO APPROVE ALLOCATION OF $15,300 FROM THE REDEVELOPMENT AGENCY BUDGET TO ASSIST IN THE DEMOLITION OF THE "SUNDOWNER RESTAURANT" LOCATED AT 16898 LAKESHORE DRIVE. 6. Lehr Option. Continued from April 28. 1992. (F:134.7) Mayor Washburn requested that this item be continued to the June 23, 1992, meeting. MOVED BY WASHBURN, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS VOTE TO CONTINUE THIS ITEM TO JUNE 23, 1992. PUBLIC COMMENTS = NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTORS REPORT Executive Director Molendyk advised that after meetings with the Project Manager for the Outlet Center, he can now announce that Phase Two, which will be breaking ground soon, will consist of 25 additional stores; and Phases Three and Four will be combined for an additional 40 stores for a total of 100 stores. BOARDMEMBER COMMENTS Chairwoman Cherveny commented on the upcoming Economic Development Conference to be held in the City on May 14th. Boardmember Alongi requested a Study Session regarding Redevelopment Agency money for abatement of properties. He suggested establishment of a program with time lines and proper reimbursement of funds. CLOSED SESSION None. ADJOURNMENT MOVED BY DOMINGUEZ, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 9:00 P.M. //~~ i, ri /~~~~ l~' TERE CHERVENY, CHA OMAN REDEVELOPMENT AGENCY AT EST: ~ VICKI KASAD, CLERK OF THE BOARD REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MAY 26, 1992 ******************************************************************************* CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 10:00 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Acting Legal Counsel Burns, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manoger Shear, City Planner Christen and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS Chairwoman Cherveny advised that she had received a request to speak on item #9 from Mr. Dick Knapp. Mr. Knapp was no longer presented so this item was not pulled. CONSENT CALENDAR The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 4, 5, 6 and 7. MOVED BY DOMINGUEZ, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - May 12, 1992. (F:134.2) 2. Received and ordered filed the Investment Report for April 30, 1992. (F:12.5) 3. Ratified Warrant List for May 15, 1992. (F:12.3) 8. Approved Rental of First Methodist Church Property to its congregation for $500.00 per month for a period to extend no later than September 1, 1992; provided that the congregation maintains full insurance coverage with the City/Redevelopment Agency named as additionally insured. (F:134.8) 9. Approved Change Orders for the Main Street Iriprovement Project - Phase Two. (F:156.2) ITEMS PULLED FROM CONSENT CALENDAR 4. Rear Facade Imorovements to Buildinas ad'acer?t to the Graham Avenue Parkinq Lot 101 & 109 S. Mair, Street & 120-122 W. Graham Avenue .(f:112.2) Executive Director Molendyk explained this item. He further explained that the view of these buildings is exaggerated due to the buildings being removed for the parking lot. He also explained that the intent is to offer low interest loans to the merchants and assist them with 50% of the costs for their participation. Special Projects Coordinator Basham added that the only improvements proposed are re-stuccoing and painting. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - MAY 26, 1992 Boardmember Alongi questioned the finished product and what would be done to address wiring, plumbing, etc. visible on the back of these buildings. He felt the proposed plan should be provided for review by the Board. Boardmember pominguez suggested that Mr. Alongi discuss the plans with the contractor for more details. Boardmember Alongi requested a diagram of the proposed improvements. Boardmember pominguez stressed the cost of this type of design work vs. the f9nished project. Executive Director Molendyk advised that if desired, a rendering could be brought back at the next meeting. MOVED BY WINKLER, SECONDED BY CNERVENY AND CARRIED BY A VOTE OF 3 TO 0 WITH DOMINGUEZ AND WASNBURN ABSTAINING TO 1) AUTHORIZE THE EXECUTIVE DIRECTOR TO SIGN THE AGREEMENT LETTERS FOR THE MINOR REAR FACADE IMPROVEMENTS TO 101 AND 109 SOUTH MAIN STREET; AND 2) DIRECT STAFF TO PREPARE A POLICY STATEMENT FOR FUTURE REQUESTS WHICH MAY INCLUDE ALTERNATIVE SOLUTIONS TO APPLYING STUCCO, SUCH AS THE USE OF SPECIALTY LANDSCAPING TO PROVIDE THE DESIRED SCREENING AND VISUAL ENHANCEMENT. 5. Low Interest Loan financinq = 161 N. Main Street. (F:134.1) Executive Director Molendyk detailed this item. Special Projects Coordinator Wood presented a rendering of the proposed improvements and advised that the existing policy allows for only $20,000 per low interest loan. In this case, the building is substantially larger and the applicant has requested $25,000. Mr. Molendyk advised that several meetings have occured with the owner of this building, Mrs. Pence, and she hopes to be under construction very soon. MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY A VOTE OF 4 TO 0 WITN WASHBURN ABSTAINING FROM VOTE TO AUTHORIZE THE LOAN COMMITTEE TO APPROVE A LOAN OF $25,000 ON A ONE-TIME BASIS ONLY, DUE TO THE SIZE OF THE BUILDING, SUBJECT TO DESIGN APPROVAL BY THE DESIGN REVIEW COMMITTEE AT THEIR MEETING ON JUNE 3, 1992. 6. E.V.M.W.D. Invoice for San Jacinto River Check Structures. (F:164.2) Boardmember Alongi requested that a definite time limit be set for the receipt of these monies from E.V.M.W.D. MOVED BY WASHBURN, SECONDED BY WINKLER AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO AUTHORIZE PAYMENT OF $56,369.00 TO E.V.M.W.D. AS THE CITY/RDA TOTAL OBLIGATION FOR THE CONSTRUCTION COSTS OF THE TWO CHECK STRUCTURES WITH fHE CONDITION THAT E.V.M.W.D. SHALL AGREE TO REIMBURSE THE RDA ONE-HALF OF ANY GRANT MONEY WHICH MAY BE RECEIVED FOR THE WORK. Mr. Alongi advised that he would not support this item without time limits. 7. Award of Contract = Graham Avenue Parkina Lot. (F:112.2) Executive Director Molendyk explained the concerns of staff regarding the time frame of the contract and the time limits which are required of the contractor for completion. Public Services Director Tecca explained his concerns in regard to award of contract to Taylor-Shafer and their agreement to complete the project within 30 days with the exception of the long order items such as street lights which will take longer to get than 30 days. If they do not meet their deadline, then they will have to pay liquidated damages and they are aware of this situation. Chairwoman Cherveny questioned the amount of liquidated damages. Public Services Director Tecca stated that it is in the amount of,$200 per day. Chairwoman Cherveny requested that it be increased to $1,000 per day. Deputy Legal Counsel Burns stated that the Board has the authority to PAGE THREE - REDEVELOPMENT AGENCY MINUTES - MAY 26, 1992 reject all bids and then raise the amount of liquidated damages to a potential $1,000 per day which would not be unreasonable. He further stated that this would set the project back by quite a bit, but would give the Agency the opportunity to change the amount of the liquidated damages. Public Services Director Tecca explained that in order to complete the project by July 4, 1992 a Notice to Proceed must be issued on May 27, 1992. He advised that he would get with the attorney and see if the liquidated damages portion can be increased. Boardmember Alongi stated that he would like to see local merchants used for public works projects in the City. This would help to provide funds back to the City. He inquired whether there could be something included in the contracts whereby the contractor would agree to use local merchants even if the City must allow a 5% override. Chairman Cherveny requested clarification of this contract. Executive Director Molendyk stated that legally,we must go to bid if the contract is over $5,000. Deputy Legal Counsel Burns stated that at this time it is not legal to limit contracts to in City firms. Executive Director Molendyk explained the procedure for projects and how they must be bid. Boardmember Alongi inquired why the City does not order items needed in advance. Executive Director Molendyk stated that due to warranty restrictions the City must let the contractor acquire the supplies. MOVED BY WINKLER, SECONDED BY ALONGI AND CARRIED BY 3-0 VOTE WITH DOMINGUEZ AND WASHBURN ABSTAINING TO AWARD THE CONTRACT FOR THE GRAHAM AVENUE PARKING LOT TO TAYLOR-SHAFER INC. BUSINESS ITEMS 10. 16898 Lakeshore Drive ="Sundowner Restaurant". (F:32.4) Executive Director Molendyk advised that this item was coming back for clarification. Boardmember Alongi advised that he understands steps can be taken to obtain these funds. He stressed that he wants the return of this money to occur. Chairwoman Cherveny questioned the point of confusion. Community Development Manager Shear inquired whether this abatement was to be completed without lien or repayment; the confusion was with this point. Boardmember Alongi reemphasized his concern with the repayment and his preference that it not be done with a lien, but a definite time line. Chairwoman Cherveny clarified that the action was to proceed with the abatement with no repayment and no additional action is necessary. Boardmember Winkler clarified that this was a compromise to assure that the building is removed. PUBLIC COMMENTS = NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTORS REPORT None. PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - MAY 26, 1992 BOARDMEMBER COMMENTS Boardmember Alongi commented that he is not concerned with buildings being removed, because he feels it is not the City's business to remove them. He stressed that the money should be returned with interest because he doesn't feel the property should be subsidized. He felt this was the wrong way to use valuable Redevelopment Agency monies. Chairwoman Cherveny advised that she is discussing Redevelopment Agency loans with the Executive Director. Staff advised that a Closed Session was needed to discuss potential litigation. THE REDEVELOPMENT AGENCY MEETING WAS RECESSED AT 10:34 P.M. THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 10:35 P.M. CLOSED SESSION THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL AT 10:35 P.M. TO DISCUSS MATTERS OF POTENTIAL LITIGATION. THE REDEVELOPMENT AGENCY MEETING RECONVENED AT 11:15 P.M. NO ACTION TAKEN. ADJOURNMENT MOVED BY WINKLER, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR CITY COUNCIL MEETING AT 11•16 P M A TEST: ~ ~ ~ ~~~~-o'~x~i ~ CKI AD, CLERK OF THE REDEVELOPMENT AGENCY RE CHERVENY, CHAIRWO N REDEVELOPMENT AGENCY BOARD MINUTES SPECIAL REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 130 SOUTH MAIN STREET LAKE ELSINORE, CALIFORNIA FRIDAY, MAY 29, 1992 ******************************************************************************* CALL TO ORDER The Special Redevelopment Agency Meeting was call to order by Chairwoman Cherveny at 8:06 a.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by City Manager Molendyk. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CNERVENY ABSENT: BOARDMEMBERS: NONE BUSINESS ITEMS 1. Award of Contract _ Graham Avenue Parkinq Lot. (F:112.2) City Manager Molendyk explained that this contract was previously awarded to the low bidder at the Redevelopment Agency Meeting of May 26, 1992, however, based on time frame requested, they chose not to accept the contract. The intent of this meeting is to award to the second low bidder, Vance Corporation. Mr. Molendyk also explained that due to property ownership in the immediate area two members of the board are unable to participate in this discussion; and due to client representation another member is unable to participate. He further explained that due to this situation the Deputy City Attorney was contacted fox direction, and the "Ruling of Necessity" procedure with each member has been presented was provided. Based on the "Ruling of Necessity", the Boardmembers made the following disclosures of their financial interests to clarify their inabilities to vote on this matter: Vice Chairman Winkler announced that his law firm represents Vance Corporation. Boardmember pominguez announced that he holds property in the vicinity of this project. Boardmember Washburn announced that he holds the property at 123 S. Main Street adjacent to this project. City Clerk Kasad stated that "because this Contract exceeds the allowable level for administrative processing, the Redevelopment Agency approval was required for the original award of contract as well as any subsequent award. For that reason we are left with no alternative for approval other than a majority vote of a quorum of the Redevelopment Agency Board". BY A DRAW OF STRAWS BOARDMEMBER WINKLER WAS DESIGNATED THE REHABILITATED MEMBER FOR ESTABLISHMENT OF A QUORUM. MOVED BY ALONGI, SECONDED BY CHERVENY TO AWARD THE CONTRACT TO THE SECOND LOW BIDDER, VANCE CORPORATION IN THE AMOUNT OF $192,561.79. Boardmember Alongi commented on the difference in bid amounts and its relation to the budgeted amount. He questioned the ability to renegotiate the contract to meet the engineer's estimate of $161,465.08. REDEUELOPMENT AGENfY MINUTES - MAY 29, 1992 Public Services Director Tecca clarified the time line of the contract and the changes and extension of time requested by the low bidder and their decision to withdraw their bid. Boardmember Alongi further questioned the ability to renegotiate the contract to meet the engineer's estimate. Senior Civil Engineer Shell clarified the limitations of renegotiating and the requirements of this bid. Executive Director Molendyk further clarified that the only real options are to accept the second low bidder or reject all bids and begin the process again; which would make the July 4th completion nearly impossible. Chairwoman Cherveny commented that the key focus of this bid was the need to complete the parking lot by July 4th, and to that extent if the second bidder can proceed then that appears to be a good option. She stressed the need to scrutinize any requests for change orders on this contract. Boardmember Alongi questioned this firm's ability to start on schedule. Public Services Director Tecca advised that they will be beginning work today. THE FOREGOING MOTION CARRIED BY A MAJORITY VOTE OF THE QUORUM EARLIER ESTABLISHED WITH BOARDMEMBER ALONGI AND CHAIRWOMAN CHERVENY VOTING IN FAVOR AND VICE CHAIRMAN WINKLER ABSTAINING FROM VOTE. 2. Re air of Lakeshore Drive Bridae at San Jacinto River. (F:156.2) Public Services Director Tecca explained this item and the prior action to award a purchase order to Artukovich & 3ans; followed by numerous delays requiring award of purchase order to a new firm. Chairwoman Cherveny inquired whether bids had been received on this item. Mr. Tecca advised that bids were not received due to the perceived emergency nature of the repairs. Boardmember Washburn questioned the time frame for the work to begin. Mr. Tecca advised that it would be within 5 working days. MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO AWARD A PURCHASE ORDER TO McCUTCHEN CONSTRUCTION COMPANY IN THE AMOUNT OF $14,183.00. ADJOURNMENT MOVED BY DOMINGUEZ, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE SPECIAL REDEVELOPMENT AGENCY MEETING AT 8:21 P.M. ~~~ ERE CHERVENY, C REDEVELOPMENT AG A I~ ~ t~Y~ uTCKI KASAD, CLE K OF HE BOARD REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, JUNE 9, 1992 ~*************************~*********~***~****~****************~*** CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman.Cherveny at 9:4o p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca Community Development Manager Shear and Deputy Clerk of the Board Bryning. CONSENT CALENDAR MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved a. Regular Redevelopment Agency Meeting - May 26, 1992. (F:134.3) b. Special Redevelopment Agency Meeting - May 29, 1992. (F:134.3) 2. Ratified Warrant List for May 29, 1992. (F:12.3) PUBLIC HEARINGS None. BUSINESS ITEMS 3. Eastlake Community Builders Project Presentation. (F:134.7) Executive Director Molendyk stated that approximately one year ago the Redevelopment Agency entered into an agreement with "Eastlake Community Builders" (Wilmore Development and TMC Development) to prepare a development plan, financial feasibility and environmental evaluation of the land behind the levee (the flood plain). He explained the financing and stated that Wilmore and TMC Development are partners of the Redevelopment Agency with the Redevelopment Agency assuming ha1P the cost of planning to give the Agency the ability to control the type of development which is to occur. Mr. Molendyk explained that this is a concept only and will need to be taken to the property owners and the community for their input. Dan Young, President of TMC Development then gave an overview of the project and introduced Mr. Tom Weigel, Project Director who presented a slide show giving a complete breakdown of the project. Mr. Young concluded the presentation of the concept for Eastlake project by explaining that this is a two billion dollar project and all the conditions of the Agency have been considered and met along with the needs of the community and the property owners. He further affirmed that this is a concept only and can change as they receive more input. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - JUNE 9, 1992 Executive Director Molendyk stated that in the first phase of development the recreational facilities will be address first to benefit the community immediately. He then thanked the property owners for their consideration and support of the project as this will make Lake Elsinore the Tourist Center of the area. Chairwoman Cherveny then called on Mr. Dick Knapp who commended Mr. Young on his presentation. Chairwoman Cherveny then thanked the Developers for their presentation and the property owners and public who are present and those at home who watched. She requested the developers to set the community meetings for Saturdays as so many of our community commute to work and don't get home until late. Boardmember Winkler thanked the Lehr family for attending and supporting this project. Boardmember washburn commended the property owners and persons attending the meeting. PUBLIC COMMENTS - NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTORS REPORT None. BOARDMEMBER COMMENTS Boardmember Washburn commented on the 4th of July banners and commended staff on their appearance. 9. ADJOURNMENT MOVED BY WASHBURN~ SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO ADJOURN THE REGULAR REDEVELOPMENT AGEN Y MEETING AT 10:29 P.M. % ~__`~~~~~ ,~"~~+TERE CHERVENY, CHAIRWOMAN REDEVELOPMENT AGENCY Respectfully submitted: Adria L. Bryning, Deputy City Clerk THE BOARD MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA ~ TUESDAY, JUNE 23, 1992 ,e~****««***************~irie*i.ar*****,e.~*«**********,e~r*************************** CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 10:24 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Public Services Director Tecca, Community Development Manager Shear, Community Services Manager Sapp, City Planner Christen, Special Projects Coordinator Basham, Special Projects Coordinator Wood and Clerk of the Board Kasad. PUBLIC COMMENTS = AGENDIZED ITEMS Chairwoman Cherveny announced that she had requests to address Item Nos. 6 and 7 of this agenda from Dick Knapp, however, he had already left the meeting. CONSE T CALENDAR The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 3, 5, 6, 7 and 8. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - May 26, 1992. b. Regular Redevelopment Agency Meeting - June 9, 1992. 2. Received and ordered filed the Investment Report for May 31, 1992. 4. Adopted Resolution no. RDA 92-6 Approving the Fiscal Year 1992-93 Budget. RESOLUTION N0. RDA 92-6 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIfORNIA, APPROVING AND ADOPTING TNE BUDGET FOR FISCAL YEAR 1992-93 AND APPROPRIATING THE fUNDS NECESSARY TO MEET THE EXPENDITURES SET FORTH THEREIN. ITEMS PULLED FROM CONSENT CALENDAR 3. Warrant List _ June 15, 1992. Chairwoman Cherveny advised that she pulled this item to clarify that the payment to MBC Constructors in the amount of $55,508.25 is a progress payment on the Collier Road Project. MOVED BY WASHBURN, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS VOTE TO RATIFY THE WARRANT LIST AS PRESENTED. PA6E T1i0 - REDEYELOPMENT AGENCY MINUTES - JUNE 23, 1992 5. Rear Facade Imorovements to Buildinas Adiacent to the Graham Avenue Parkin Lot 113 & 117 South Main Street . Councilman Alongi advised that if the Agency is going to pay 1/2 the cost of the proposed improvements he would like to see a drawing of how the obstacles will be covered and what will be done. He questioned the frame out area and work on venting ducts and whether they were included in the proposal. He also questioned the proposed letter to the property owners and the clause that it is their responsibility to contact the contractor and suggested that the City is the lead on the project and the City should be the contact. Councilman Dominguez advised that a meeting is scheduled with the contractor. City Manager Molendyk commented on the concerns and suggested that the best option might be to start over. Councilman Alongi clarified that he feels the bids are in order, but he needed clarification. City Attorney Narper explained the bidding process and the limitations such as the inability to make substantive changes to the original scope of work. MOVED BY ALONGI, SECONDED BY WINKLER TO TABLE THIS ITEM FOR FURTHER INVESTIGATION AND CLARIFICATION. Councilwoman Cherveny questioned the options on this item. City Manager Molendyk advised that there are basically two options: 1) continue the item for evaluation or 2) throw out the bids and start over. City Attorney Harper clarified that this is not a~ advertised public hearing and it is not necessary to continue it, only bring it back when the concerns have been clarified. Councilman Alongi questioned the need to go out to bid based on the overall costs. City Manager Harper advised that whatever the direction, he would want to review the process and situation with Engineering prior to approval. City Manager Molendyk suggested that the first step is to confirm the scope of work and them receive bids if appropriate. THE FOREGOING MOTION CARRIED BY A VOTE Of 3 TO 0 WITH DOMINGUEZ AND WASHBURN ABSTAININ6. 6. Lakeshore Brid e and San Jacinto River Channel. It was requested that this item be discussed in Closed Session with regard to pending litigation and acquisition of property. 7. Ambassador Hotel. It was requested that this item be discussed in Closed 5ession regarding pending litigation. 8. Transfer of the Jean Havman School Site to Lake Elsinore Unified School District. Boardmember Alongi inquired whether the $285,000 repayment had occurred. Administrative Services Director Boone advised that it was repaid in Fiscal Year 1987-88. MOUED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS VOTE TO CONCUR WITH COUNCIL ACTION TO APPROVE THE TRANSFER OF THE JEAN HAYMAN SCHOOL SITE TO LAKE EtSINORE UNIFED SCHOOL DISTRICT. PUBLIC COMMENTS _ NON-AGENDIZED ITEMS None. PAGE THREE - REDEVELOPMENT AGENCY MINUTES - JUNE 23, 1992 EXECUTIYE DIRECTORS REPORT None. ~ BOARDMEMBER COMMENTS None. CLOSED SESSION Legal Counsel Harper announced that the Closed Session would be for the purpose of discussing potential litigation and acquisition of property as they relate to the Ambassador Hotel and the Lakeshore Drive Bridge. THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL AT 10:36 P.M. THE REDEVELOPMENT AGENCY MEETING RECONVENED AT 11:35 P.M. 6. Lakeshore Brid4e and San Jaeinto River Channel. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY A VOTE Of 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO 1) APPROVE THE PROJECT CONCEPT AND DIRECT STAFf TO MOVE AHEAD AS SOON A5 POSSIBLE TO GET THE SAN JACINTO RIVER CHANNEL UNDER CONSTRUCTION AND 2) APPROVE THE AWARD OF CONTRACT TO THE CHAMBERS GROUP, INC. FOR $37,400 TO SECURE THE ENVIRONMENTAL CLEARANCES FOR BOTH THE CHANNEL AND THE BRIDGE. 7. Ambassador Hotel. MOVED BY CHERUENY, SECONDED BY WINKLER AND CARRIED BY A VOTE Of 4 TO 0 WITH WASHBURN ABSTAINING TO NOT SECURE THE OPTION, BUT MR. MITCHELL CAN EXPRESS THE AGENCY'S INTEREST TO THE NON-PROFIT HOUSING CORPORATION OF AMERICA AND THE CORPORATION CAN RETURN FOR POTENTIAL INTEREST AT A LATER DATE. ADJOURNMENT MOVED BY DOMINGUEZ, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 11:40 P.M. TEST: ~1l~~~ ~~'r`~„~~ VICKI KASAD, CLERK OF THE BOARD REDEVELOPMENT AGENCY ,~'~e ~~~ ~/~~~ TERE CHERVENY, CHAIRWOMAN REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, JULY 14, 1992 *~***************************************************************************** CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Vice-Chairman Winkler at 8:59 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER ABSENT: BOARDMEMBERS: CHERVENY Also present were: Executive Director Molendyk, Legal Counsel Harper, City Treasurer Pape, City Planner Christen, Community Services Manager Sapp, Engineering Manager 0'Donnell, Special Projects Coordinator Basham and Clerk of the Board Kasad. PUBLIC COMMENTS = AGENDIZED ITEMS None. CONSENT CALENDAR The following item was pulled from the Consent Calendar for further discussion and consideration: Item No. 3. MOVED BY DOMINGUEZ, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - June 23, 1992. (F:134.3) 2. Ratified Warrant List for June 30, 1992. (F:12.3) 4. Adopted Resolution No. RDA 92-7 Confirming Fiscal Year 1992-93 Special Taxes for Community Facilities District 90-2 - Tuscany Hills Public Improvements). (F:22.3) RESOLUTION N0. RDA 92-7 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTI~G THE TAX COLLECTOR OF THE COUTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES. ITEM PULLED FROM CONSENT CALENDAR 3. Rear Facade Improvements to Buildinas Ad.iacent to the Graham Avenue Parkina Lot 113 & 117 South Main Street. (F:112.2) Boardmember Alongi suggested that since the City is matching funds for this project the building permit fees should be waived. Boa~dmember Washburn inquired what the permit cost would be. Boardmember Dominguez advised that they would be exempt from anything over $500. Executive Director Molendyk advised that existing policy allows for waiver of up to $500. Special Projects Coordinator Basham advised that the fees are expected to be le~s than $200, as much of the work does not require permits. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - JULY 14, 1992 MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY A VOTE OF 2 TO 0 WITH DOMINGUEZ AND WASHBURN ABSTAINING TO APPROVE THE FUNDING AS SUGGESTED AND WAIUE RELATED BUILDING PERMIT FEES. BUSINESS ITEMS . 5. Award of Contract = Mission Trail Rehabilitation = Kennedv Pipeline Company. (F:156.2) Executive Director Molendyk requested that this item be discussed in Closed Session prior to consideration, based on potential litigation, 6. Lakeshore Drive BridQe and San Jacinto River Channel - Desi4n Contract = Black & Veatch. Inc. (F:156.2) Executive Director Molendyk explained this item. MOVED BY DOMINGUEZ, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE CONTRACT IN AN AMOUNT NOT TO EXCEED $35,000. 7. Ambassador Hotel _ Reconsideration requested ~ Councilman Alonai. (f:134.7) Executive Director Molendyk explained that this item has been heard previously by the Agency and reconsideration of this item was requested by Boardmember Alongi. He further explained that the hotel has been considered for rehabilitation by the Housing Corporation of America and that they have applied for State funding for the project to provide senior low cost housing. It further appears as though the State Department of Housing is in favor of the project and could possibly award a grant for the project in the amount of $957,000. Executive Director Molendyk explained that if they receive the grant they will approach the Redevelopment Agency for assistance. The Housing Corporation of America and the owner Mr. Mitchell requested that the Agency secure an option on the building for a period of three months to allow the State funding mechanism to mature. The option would be for $3,000 a month, to be applied to the acquisition cost; this would allow the Housing Corporation to give evidence to the State that there is an option. Boardmember Alongi explained that he is very interested in providing affordable housing for Senior Citizens of low income. He further stated that since his concerns had been resolved he would be in favor of pursuing the project. Legal Counsel Harper stated that when this project was originally proposed to the City, Boardmember Washburn did advise legal counsel of potential conflict in regard to this project. He further explained that Boardmember Washburn is aware of the conflict and did not get involved with either the Board or the owner in regard to this project. Boardmember Winkler stated that each member should make their decision in regard to what is best for the Community. He further explained that every Boardmember will be accused of all sorts of things and this must be ignored and decisions made for what is right for the Community. MOVED BY ALONGI, SECONDED BY DOMINGUEZ AND CARRIED BY A 3-0 VOTE WITH WASHBURN ABSTAINING TO SECURE AN OPTION TO ACQUIRE THE BUILDING, SAID OPTION TO RUN FOR THREE MONTHS AT $3,000 PER MONTH. PUBLIC COMMENTS _ NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTORS REPORT Executive Director Molendyk commented on the dedication of the Graham Street Parking Lot on July 4th. PAGE THREE - REDEVELOPMENT AGENCY MINUTES - JULY 14, 1992 BOARDMEMBER COMMENTS None. CLOSED SESSION THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL AT 9:15 P.M. THE REDE~ELOPMENT AGENCY RECONVENED AT 10:01 P.M: 5. Award of Contract = Mission Trai1 Rehabilitation = Kennedv Pipeline ComPanv. (F:156.2) MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO AWARD THE MISSION TRAIL REHABILITATION CONTRACT TO KENNEDY PIPELINE COMPANY AS RECOMMENDED. pDJOURNMENT MOVED BY WASHBURN, SECONDED BY PRESENT TO ADJOURN THE REGULAR A E T: ~ VICKI KASAD, CLERK 0 THE BOARD REDEVELOPMENT AGENCY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE REDEVELOPMENT AGENCY MEETI 10:02 P.M. ~ JIM WINKLER, VICE-CH IRMAN REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING , CITY OF LAKE ELSINORE 545 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, JULY 28, 1992 ******************************************************************************* CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 9:45 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Development Manager Shear, City Planner Christen, Community Services Manager Sapp, Public Services Director Tecca, Special Projects Coordinator Basham, City Treasurer Pape and Clerk of the Board Kasad. PUBLIC COMMENTS = AGENDIZED ITEMS None. CONSENT CALENDAR Mayor Washburn advised that he would be abstaining from vote on Item No. 4. The following Item was pulled from the Consent Calendar for futher discussion and consideration: Item No. 3 MOVED BY DOMINGUEZ, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - July 14, 1992. (F:44.4) 2. Ratified Warrant List for July 15, 1992. (F:12.3) 4. Approved Final Change Order and Accepted Notice of Completion for the Main Street Improvement Project - Phase Two. (F:156.2)(X:132.1) ITEM PULLED FROM CONSENT CACENDAR 3. Contract for Geotechnical Testina Services = Mission Trai1 Rehabilitation Pro.iect. (F:156.2) Councilman Alongi requested that this item be discussed in Closed Session prior to Redevelopment Agency Action. City Attorney Harper ciarified that potential litigation related to this item would be discussed in Closed Session. BUSINESS ITEMS 5. Low and Moderate Housina = Entrv Level Pilot Pro ram. (F:87.1) Executive Director Molendyk explained that this is a project for entry PAGE TWO - REDEVELOPMENT AGENCY MINUTES - JULY 28, 1992 level housing and is a 14 unit condominium project at the corner of Heald and Ellis. Mr. Molendyk introduced a tape to further explain the project and the use of the site. Sam Jiron, President of Omega Mortgage West, 506 W. Graham, explained the project which will include a play park and common grounds with maintenance. Boardmember Washburn inquired about the proposed price of the units. Mr. Jiron advised that the cost would be $90,000 to $95,000 for the first time home buyer, with their company assisting in finding appropriate financing. Chairwoman Cherveny asked about the security of the building. Mr. Jiron explained that they we addressing this issue with fencing. Chairwoman Cherveny commended Omega Mortgage Company for their efforts to redevelop and improve blighted areas. Boardmember Alongi explained that he felt that the Redevelopment Agency should help Mr. Jiron's company make this project a success, since this will encourage further development of this nature in the City. Executive Director Molendyk explained that the existing buildings on this site will be abated by Omega Mortgage Company. MOVED BY DOMINGUEZ, SEGONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE PROJECT BY OMEGA MORTGAGE WEST IN CONCEPT AND AUTHORIZED A LETTER OF INTENT FROM THE REDEVELOPMENT AGENCY CHAIRWOMAN. 6. Low Interest Loan Financina _ 125 W. Peck Street. (F:134.7) Executive Director Molendyk detailed.this itero and explained that this gentleman has offered public parking without being requested to do so. Boardmember Washburn inquired whether this parking lot would be gated. Ray Grage, 110 S. Main Street, representing the applicant Dr. Bare, advised that the plan calls for a key operated gate which would remain open during business hours. Councilman Alongi questioned the public parking and problems which might occur if cars are parked there at closing time. Mr. Grage advised that it would be proposed that the lot be clearly signed with regard to closing times; and after a specified time the local towing company would have access. Executive Director Molendyk clarified that this is not being required by the City, and it might be best if the public parking is eliminated. Boardmember pominguez suqgested that the clause in the report relating to public parking be eliminated. Boardmember Alongi concurred and suggested that it would be best if the lot remained for business purposes only. MOVED BY DOMINGUEZ, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE T0 APPROVE A LOAN OF $60,000 FOR THE MAJOR PARKING LOT IMPROVEMENTS TO 125 WEST PCK STREET WITH THE REFERENCE TO PUBLIC PARKING DELETED; AND AUTHORIZED AN INCREASE IN THE TOTAL AUTHORIZATION FOR THE LOW.INTEREST LOAN PROGRAM FROM THE PRESENT $150,000 T,0- $200, 000. ' 7. Lake Aeration S stem. (F:92.1) Executive Director Molendyk explained that there had been problems with the Lake regarding fish die off, due to water level fluctuations and poor water quality. He detailed the costs that could be expected for clean up if the fish kill occurs. PAGE THREE - REDEVELOPMENT AGENCY MINUTES - JULY 28, 1992 Special Project Manager Basham explained that the best long term solution for the Lake is to raise the water level, as the cost is prohibitive at this time. He further explained that when Lake Management nears its end the addition of water to the Lake will be realized. Mr. Basham explained the algae bloom which occurs in the Lake when the water level drops and the temperature rises; and the related fish kill. Mr. Charles Cole, C.M. Engineer, 225 E. Airport Drive, San Bernardino explained the process of installing an aeration system to replace oxygen in the.water and advised that it is the easiest, most economical solution at this time. He detailed the timing for getting the various levels of service on line. Dr. Dov Grajcer of Aquafarms International, Inc., Mecca, explained the cause of algae bloom and the need for aeration. He detailed a three step solution as follows: 1. Get oxygen into the Lake. 2. Add biological c.ontrol. 3. Lake Management. Chairwoman Cherveny asked what is involved in doing the findings. City Attorney Harper explained that evidence must be received that the project is a benefit to the Redevelopment Project Area which will be providing the funds for this project. Boardmember Washburn stated that he is in favor of the project because it will make the Lake Elsinore Management Authority a responsible participant in the Lake and will enhance the image the City has worked for and encourage the fishing which was very popular in the past. Boardmember Alongi questioned the amount that it would take to replace the water in the Lake if the aeration system creates more evaporation. He further stated that if the water is replaced by L.E.M.A. or E.V.M.W.D., then he has no problem with the aeration system. Executive Director Molendyk explained that even through it is an expense to the City it will eliminate a health hazard which is created by the fish kill. He further explained that the City, Elsinore Valley Municipal Water District and the State Park have been responsible for cleaning up the fish kill and in the last few years it has been harder to dispose of the fish due to the restrictions of the EPA. This is a long term project and is not just temporary as the aeration will continue even after the lake receives more water. Boardmember pominguez stated that this is a State problem and not a City problem and the situation has not occurred this year and should be addressed when it does occur and not before. He further explained that if the water is moved around there is evaporation and there are the wells to place water back into the lake to eliminate the fish kill problem. Boardmember Alongi explained that it was his understanding that if fresh water is added to the Lake, the algae bloom will not occur. He stated that he agreed with Boardmember pominguez that this is a State problem and if the City gets the Lake, then it will be the City's problem. Boardmember Washburn suggested that this is an investment in the future of the Lake. He further suggested that this is to increase the quality of the water, prevent fish kills and work toward improving the image of the Lake. Boardmember Alongi expressed his concern over the replenishment of the water due to loss from aeration at 4 foot of water per year. Boardmember Winkler stated that he would like to see this item go to L.E.M.A. first and then possibly have a study session with the Elsinore Valley Municipal Water District and bring it back to the Redevelopment Agency at the next meeting. PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - JULY 28, 1992 MOVED BY DOMINGUEZ, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO TAKE THE RECOMMENDATIONS REGARDING THE LAKE AERATION SYSTEM TO L.E.M.A. fOR THEIR INPUT. 8. Amber Ri'dae Sewer Study (F:159.1) Executive Director Molendyk explained that staff has been to several meetings to gain input in regard to the existing problems. Ne further explained that a study is necessary to ascertain the findings in order for the Board to reach a decision as this project is outside the boundaries of the Redevelopment Agency. Boardmember Winkler questioned the need for paragraph three on page two of the proposal. Mr. Basham explained that due to the fact that this was in an area where there was other similar potential problems he felt that this was necessary to the findings for other potential requests for assistance. Boardmember Winkler stated that this issue is separate and different from other areas and only addresses the specified area. Boardmember pominguez asked how many homes were involved. Mr. Basham explained that in Amber Ridge there are 180 homes that are not sewered. The study would give guidance in regard to how many of those homes will need to be connected to sewer. Legal Counsel Harper explained that under the assumption that the problems are the same as across the street regarding Kaufman and Broad, the difficulty was either they didn't adequately or didn't at all pot hole the project to determine whether the ground was sufficiently permeable to handle the septic systems. He advised tHat was why the septic systems failed, and assumed that the problems were similar. Boardmember pominguez stated that that area should form an assessment district. Special Projects Coordinator Basham explained that the Elsinore Valley Water District has approach the home owners in that area regarding an assessment district formation and the property owners felt that the cost was too high and approached the City for assistance. Boardmember Winkler stated that the tract was approved by the City and he felt that the City had a moral obligation to assist. He further stated that because some of the residents are not having any problems and do not want to form a district, it is nearly impossible for the residents who are having the problems to form an assessment district. He stressed that this was the City's opportunity to save a neighborhood. Chairwoman Cherveny questioned how one housinq tract affects the rest of the District. Legal Counsel Harper explained that this is the purpose of the study is to determine if the Redevelopment Agency should be involved. Boardmember Alongi explained that the Water District had asked the homeowners to take a survey of the people who are affected by this problem and the Water District had found a low interest fund to assist the area. He further stated that he had no problem with the Agency providing a low interest loan for the laterals, but still felt that the Water District is the responsible entity. MOVED BY WASHBURN, SECONDFD BY WINKLER AND CARRIED BY A 3-2 VOTE WITH ALONGI AND DOMINGUEZ CASTING THE DISSENTING VOTES TO APPROVE THE EXPENDITURE OF FUNDS FOR THE AMBER RIDGE SEWER STUDY. PUBLIC COMMENTS = NON-AGENDIZED ITEMS None. PAGE FIVE - REDEVELOPMENT AGENCY MINUTES - JULY 28, 1992 EXECUTIVE DIRECTORS REPORT Executive Director Molendyk advised that Collier Road would be opening soon. BOARDMEMBER COMMENTS None. CLOSED SESSION THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL TO DISCUSS MATTERS OF POTENTIAL LITIGATION AT 11:06 P.M. THE REDEVELOPMENT AGENCY RECONVENED AT 11:45 P.M. NO ACTION TAKEN. ADJOURNMENT MOVED BY ALONGI, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMEN.T AGENCY MEETING AT 11:46 P.M. TE~~~~CHERVE REDEVELOPME AXTEST: VICKI KASA6", CLERK dF THE BOARD REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 31315 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, AUGUST 11, 1992 ********************************~*******~***********~*************************~ CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 10:39 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Development Manager Shear, City Planner Christen, Community Services Manager Sapp, Public Services Director Tecca, Special Projects Coordinator Basham, Special Projects Coordinator Wood and Clerk of the Board Kasad. PUBLIC COMMENTS = AGENDIZED ITEMS None. CONSENT CALENDAR Boardmember Washburn indicated that he would be abstaining from vote on Item 3. MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - July 28, 1992. (F:134.3) 2. Concurred with Council Action to Approve Tentative Parcel Map 27033 and Zone Change 91-7 - Chaney Business Park - Mola Development. (f:110.2) 3. Concurred with Council Action to Continue City Center Development - Oak Grove Equities for further discussion and consideration. BUSINESS ITEMS 4. Contract for Geotechnical Testina Services _ Mission Trail Rehabilitation Pro.iect. (F:156.2) Executive Director Molendyk requested that this item be considered in Closed Session prior to consideration due to potential litigation. 5. Lake Aeration Svstem. (F:92.1) Executive Director Molendyk explained that this item was before the Board on July 28, 1992, and staff was directed to make a presentation to the Lake Elsinore Management Authority (LEMA) at their August 6, 1992 meeting. Mr. Molendyk further stated that if the Redevelopment Agency Board did approve this item that there is a urgency resolution which allows staff to take bids on the equipment to mitigate the situation before there is a health problem. Special Projects Coordinator Basham explained that at the August 6th PAGE TWO - REDEVELOPMENT AGENCY MINUTES - AUGUST 11, 1992 meeting, LEMA approved the use of the alternate aeration system using twelve, five horsepower aeration pumps to be donated by EVMWD. He further explained that LEMA authorized $134,500 of their funds for design and construction of the system upon the following conditions: 1. LEMA and the City of Lake Elsinore are to enter into an agreement which designates the City as the lead agency responsible for the design and construction of the aeration system. 2. The City will contract with the design consultant and administer the construction of the system. 3. Time is of the essence, and the aeration system is to be designed and installed as soon as possible to avoid fish kills. The consultant indicated one week is needed for testing and three additional weeks to construct. Should a fish kill occur prior to completion of the system, the City was instructed to have conditions in the contract which will allow them to stop design/construction of the system and terminate the contract. The work completed would be paid for by LEMA and would be salvaged for use next year. 4. The City is to pay for the systems monthly operation costs (estimated to be $1,500 to $3,000/month electrical costs through October, 1992, plus miscellaneous system repair costs.) The system will then be removed and stored for future use. 5. A State Department of Park and Recreation temporary use permit will be required. 6. State Department of Fish and Game is to be notified immediately and their input shall be obtained by the design consultant and any permits required by State Department of Park and Recreation shall be obtained. Also, State Fish and Game personnel are to be invited to attend aeration pump test to be conducted by the consultant. 7. Measures that address boating safety shall be incorporated into the design/construction. 8. Monitoring of the aeration system effectiveness shall be made during its operation and a report provided to LEMA. Mr. Basham further explained that the fiscal impact to the City will be staff time to administer the design and construction contracts, operation cost through October, 1992, and removal/replacement costs. Chairwoman Cherveny then called upon the persons who requested to speak on this item: Leon Strigotte, 216 Chaney Street, expressed his approval and urged the installation of the Lake aeration system. He stated that if the City could get a grip on the fish kill situation, then it would be a sure boost to the local economy. He further stated that the fish kill damages the City image and in turn hurts the local economy. Dick Knapp, 29690 Dwan Drive, stated his objection to the Lake aeration system due to the fact that the project would not be implemented until it is too late. He questioned the spread of costs and inquired who would pay for the hook up and maintenance after the installation. Mr. Knapp asked why staff had not addressed this issue months earlier. PAGE THREE - REDEVELOPMENT AGENCY MINUTES - AUGUST 11, 1992 Boardmember Winkler thanked staff and Mr. Laughlin from EVMWD for helping with this issue. He further thanked all the other persons and agencies involved. Boardmember Washburn thanked all the members of LEMA and the Water District for their support, assistance and approval. He stated that even if was not extremely effective this year, it can be used over and over again and this will help to prevent future problems. Boardmember pominguez expressed his concern in regard to the City always solving problems and suggested that there is an effective system that would work as well or better then the Lake Aeration System being the well pumps. He called on the State and City to energize the wells and return this method used in the past to control the level of the water. He stressed that this is the State's responsibility. Boardmember Alongi stressed the fact that the Lake is the State's responsibility and they should take care of this problem. He suggested that the RDA money should be going into low income housing and other appropriate items. He further stressed that the real total cost for this project is $209,300. This does not include contingencies, electrical power or the connection cost to Southern California Edison. Mr. Alongi asked how much the fish are worth in the Lake. He would prefer to see the cost of removal rather then the Aeration System. Boardmember Washburn explained that this is a portable system which can be removed and then replaced. This system is used in lakes that have a good water supply to increase the amount of oxygen and is a benefit to any body of water to improve quality. Legal Counsel Harper stated that the 4/5ths vote is necessary to have immediate bid. If the normal bid procedure is followed then it will probably delay the project and make it too late to help this year. Chairwoman Cherveny asked if this was $80,000 of RDA monies. Mr. Basham explained that the $80,000 is a savings caused by the donation of the aerators by Elsinore Valley Municipal Water District. She asked to clarify the cost to RDA, which she understands to be $1,500 to $3,000 a month for the electrical. She expressed her thanks for the cooperation between all the agencies. She suggested that if the Aeration System is not in effect for this year it will be available for next year and the following to address the problem. Boardmember Alongi asked Mr. Basham how long it will take the Aeration System to take effect if it is installed. Mr. Basham stated that it will be 1 to 3 weeks and within 30 days the system will be at peak efficiency. Mr. Alongi then stated that he was not sure that the expenditure of the funds would be worth a system that might not even work. He further questioned the amount of money that the RDA would expend. Boardmember pominguez explained that he will vote against this item because it is a State problem and if the public wants him to support the project then the public needs to call in and let him know that they want him to make the City a responsible party. Chairwoman Cherveny reviewed the project cost and requirements, and explained that this is the way for the City to show their citizens that we are willing to do something. Boardmember Alongi explained that the City doesn't own the lake yet and with the time necessary to get the system installed and in operation it will be too late to do any good. MOVED BY WASHBURN, SECONDED BY WINKLER AND DEFEATED BY A VOTE OF 3 TO 2 WITH ALONGI AND DOMINGUEZ CASTING THE DISSENTING VOTE TO APPROVE AGREEMENT AND ADOPT PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - AUGUST 11, 1992 RESOLUTION N0. RDA 92-8. (NOTE: THIS RESOLUTION REQUIRED A 4/5THS VOTE TO ADOPT). PUBLIC COMMENTS _ NON-AGENDIZED ITEMS Editfi Stafford, 54 Elm Street, commented on the Council's "game plan" and a recall strategy meeting. She warned that she is watching and listening. Dick Knapp, 29690 Dwan, commented on a recent Press Enterprise article. He questioned the outstanding R.D.A. loans and stressed the need for increased disclosure. Peter Dawson, 18010 Grand Avenue, commented on his disappointment with the vote on Lake Aeration. He further commented that while the State controls the Lake, it is in the local residents back yard. He stressed the need for Council to consider the impacts. EXECUTIVE DIRECTORS REPORT None. BOARDMEMBER COMMENTS None. CLOSED SESSION THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL TO DISCUSS MATTERS OF PENDING LITIGATION AT 11:20 P.M. THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 11:55 P.M. 4. Contract for "ueotechnical Testina Services = Mission Trail Rehabilitation Pro.iect. (F:156.2) MOVED BY CHERVENY, SECONDED BY WASHBURN AND CARRIED BY A VOTE OF 4 TO i WITH ALONGI CASTING THE DISSENTING VOTE TO AWARD A CONTRACT TO GEOCON FOR A MAXIMUM FEE OF $57,338.00 FOR GEOTECHNICAL TESTING SERVICES DURING THE REHABILITATION OF MISSION TRAIL. ADJOURNMENT MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOT TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 1:56 P.M. ERE CHERVENY, CHAIRWOMAN REDEVELOPMENT AGENCY AT EST: o- VICKI , C R~ F THE BOARD REDEVELOPMENT AGENCY MINUTES SPECIAL REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 130 SOUTH MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, AUGUST 13, 1992 *************************************************************x***************** CALL TO ORDER The Special Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 4:40 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Administrative Services Director Boone, Community Development Manager Shear, Community Services Director Watenpaugh, Public Services Director Tecca, Special Projects Coordinator Basham and Clerk of the Board Kasad BUSINESS ITEM Lake Aeration Svstem. (F:92.1) Executive Director Molendyk commented on the result of the August llth consideration of this item and the request that it be reconsidered. Boardmember Washburn commented that this meeting had been properly noticed and posted. Boardmember pominguez advised that he had made a statement that he wanted to hear from the public on this matter. He further advised that he has since received numerous phone calls encouraging his support. He commented that in the course of those discussions he has also explained his position with regard to the project as well as his position representing City residents rather than County residents. Boardmember Alongi stated for the record that he will be maintaining his no vote and clarified his position. He further stated that he would support the program next year. Ne also stated that this still involves tax dollars and it will not stop this year's fish kill. He commented that this is only a political vote and an irresponsible approach. Chairwoman Cherveny advised that she has received two calls from the west end of the lake regarding this issue. She commented that while this may not be the ultimate solution, she feels it will contribute positively to the Lake. MOVED BY WASNBURN, SECONDED BY WINKLER AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO AUTHORIZE THE EXECUTIVE DIRECTOR TO ENTER AGREEMENT WITH LEMA; AWARD A CONTRACT FOR DESIGN TESTING AND PROCESSING IN THE AMOUNT OF $19,000 AND ADOPT RESOLUTION N0. RDA 92-8: RESOLUTION NO. RDA 92-8 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, DECLARING THAT THE PUBLIC INTEREST AND NECESSITY DEMAND THE IMMEDIATE EXPENDITURE OF PUBLIC MONEY AND DISPENSING WITH THE BIDDING PROCESS FOR THE CONSTRUCTION OF AN AERATION PROJECT FOR LAKE ELSINORE. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - AUGUST 13, 1992 ADJOURNMENT MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE SPECIAL REDEVELOPMENT AGENCY MEETING AT 4:47 P.M. ~ A EST: ~=~'~i--~r~l~(R~¢.~ VICKI KASAD, CLERK OF THE BOARD REDEVELOPMENT AGENCY r ~ / RE CHERVENY, REDEVELOPMENT I MINUTES REGULAR REDEVELOPMENT AGENCY MEETING i CITY OF LAKE ELSINORE ' 31315 CHANEY STREET ~~ LAKE ELSINORE, CALIFORNIA TUESDAY, SEPTEMBER 8, 1992 ******x************************************************************************ CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 7:06 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: COUNCILMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, City Planner Christen, Special Projects Coordinator Basham, City Treasurer Pape and Clerk of the Board Kasad. i BUSINESS ITEM I 5. Lake Elsinore S uare Presentation = Central Avenue at I=15. (F:58.2) Executive Director Molendyk highlighted this item and the work thus far i with the developer. ', John Shaw & Dennis Chiniaoff, representing Rancon, detailed this project and the anchor tenants who will be secured within the next few months. He advised that the commitment has already been received from Food for Less and the entire center is anticipated to be open in 1993. He also advised I that some financial assistance will be necessary, however that will be considered at a later date. I MOVED BY WINKLER, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO CONCUR , WITH THE PROJECT AS PRESfNTED AND REQUEST THAT STAFF ASSIST WITH DEVEIOPMENT OF ' A FINANCIAL PACKAGE FOR THE NEXT AGENDA. THE REDEVELOPMENT AGENCY MEETING WAS REGESSED AT 7:11 P.M. 'I THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 9:55 P.M. PUBLIC COMMENTS = AGENDIZED ITEMS ~ I None. CONSENT CALENDAR The following item was pulled from the Consent Calendar for further discussion and consideration: Item No. 3. MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Joint Special Redevelopment Agency Meeting - August 18, 1992. (F:134.3) ~ b. Regular Redevelopment Agency Meeting - August 25, 1992. (F:134.3) PAGE TWO - REDEVELOPMENT AGENCY MINUTES - SEPTEMBER 8, 1992 ', 2. Ratified Warrant List for August 31, 1992. (F:12.3) ', 4. Concurred with Council Action to Approve the Development of an Economic , Assistance Policy as it would relate to Sales Tax and Tax Increment , Financing to include all Council/RDA input. (F:70.1) ITEM PULLED FROM CONSENT CALENDAR 3. Low & Moderate Income Housina - 20% Set Aside - Resolution No. RDA 92-9. (F:87.1) - - Boardmember Alongi questioned the housing statistics which represent the - County. He stated that he feelz there is a moral obligation to the resisdents of Lake Elsinore to produce low income units and moderate income , units for the people that work here. Mr. Alongi explained that he would like to see the City develop a program to address this and not to use the houses we are abating as low income. He further explained that there are homes that can be rehabilitated to meet the low to moderate income level. Legal Counsel Harper explained that the Board needs to do one of two things; either the Board makes these findings or the Board sets aside in a separate account 20% of the Redevelopment Agency funds for the purpose of constructing low and moderate income housing. Mr. Harper further explained that what the findings do is to allow the City and Redevelopment Agency the greatest flexibility in utilizing its money. It gives t6e Redevelopment Agency the option to spend the money on low income and other things, and , not be required to segerate the account and potentially not have to give the funds back to another housing agency when the funds are not expended in a timely fashion. ', Chairwoman Cherveny explained that this is to satisfy the State's , Requirements for the Redevelopment Agency to avoid having to do the 20% set ! aside, however this does not preclude the City from setting up a special j policy to address the low to moderate income housing. i ~i Legal Counsel Harper explained that the one of the things that the City I does now is require a developer that come into the City with a significant project, to provide affordable units as a part of the development process and there are other financing programs that are used as well. ' Executive Director Molendyk explained that this report satisfies the State requirement necessary to complay and he further explained that he understands the interest of the past and current Boards in providing low to , moderate income housing. He also explained that the City does not have an ', adopted program. Mr. Molendyk stated that there might need to be a study I to develop standards in order for the developers to know what to construct in the older section of town. MOVED BY WINKLER, SECONDED BY WASHBURN AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO ADOPT REDEVELOPMENT AGENCY RESOLUTION N0. RDA 92-9: RESOLUTION N0. RDA N0. 92-9 ' A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, FINDING AND DECLARING THAT THE REQUIREMENTS OF LOW AND MODERATE INCOME , HOUSING IN ALL PROJECT AREAS ARE BEING MET. , BUSINESS ITEMS ', 6. Fish Removal = Los Angeles Commercial Fisherman's Association. (F:92.1) Executive Director Molendyk explained that a concern of the Council and '~ Redevelopment Agency has been the remov~l of the fish caused from fish kill. He further explained that the Los Angeles Commercial Fisherman's Association has offered to do the "test seine" at a cost to the Agency of ~I $ 2, 2 5 0. 0 0, an d Mr. Dawson has dona te d a boat for their use to help cut the , cost. l , PAGE THREE - REDEVELOPMENT AGENCY MINUTES - SEPTEMBER 8, 1992 Special Projects Coordinator Basham advised that at the time of the report he had not received final figures from Mr. Joe Cracchiolo and the figure of $2,250 is accurate. He further advised that there are no commercial fishermen who will move on this project until they know how many fish are in the Lake, and the State has no idea. Depending on their findings, the program would start next year and done on an annual contract basis to be done throughout the year. Boardmember pominguez asked if this would take care of the problem then why is the aeration system necessary. Executive Director Molendyk explained that in the past it was mentioned that the fish should be utilized instead of just dying off. That is why this program was investigated and pursued. He further explained that this is the first positive step for utilization. Boardmember pominguez stated that the time is now and that Mr. Basham should continue this approach which he feels is preferred over the aeration system. Boardmember Washburn stated that there is a need for both systems, as it takes three and one half weeks to install the aeration system and if there is another heat wave it will be necessary. Boardmember Alongi stated that the State will make no funds available and will not even allow the use of thier boat for these tests and still the people do not address the State , but rather scream at the Council to resolve the problem. He feels that it would not be right to spend money on a problem that the State should be addressing. Chairman Cherveny asked if this was just for the feasibility testing. She stated that she would like the Agency and the City to take some proactive steps to resolve this problem. MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO APPROVE STAFF'S RECOMMENDATIONS TO PROCEED. 7. Riaht of W~ Acquisition for Collier Avenue. (F:156.2) MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO ADD THIS ITEM TO THE REDEVELOPMENT AGENCY AGENDA. Councilman Alongi inquired why this property was not acquired up front. Public Services Director Tecca advised that he understands that this property was acquired by the City's Acquisition Specialist and this is the final transfer. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY A VOTE OF 3 TO 1 WITH CHERVENY CASTING THE DISSENTING VOTE AND WASHBURN ABSTAINING TO APPROVE THE ACQUISITION OF RIGHT OF WAY. PUBLIC COMMENTS _ NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTORS REPORT Executive Director Molendyk advised that the repairs and improvements of Mission Trail are going forward. He also advised that Phase II of the Outlet Center is on time for the November opening. ~ Executive Director Molendyk further advised that the State Budget had impacted the General Fund by approximately $150,000 and the Redevelo.pment by PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - SEPTEMBER 8, 1992 ~ approximately $650,000. He explained that not all of the specifics have been received yet, but an update will be provided when received. BOARDMEMBER COMMENTS None. CLOSED SESSION THE REGULAR REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL AT 10:20 P.M. TO DISCUSS MATTERS Of LITIGATION INVOLVING O.M.G. AND KUNZ. THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 10:41 P.M. NO ACTION TAKEN. ADJOURNMENT MOVED BY WINKLER, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 10:42 P.M. , r ~~' ~~Y R C ERVENY, CHAIR 0 N REDEVELOPMENT AGENCY THE BOARD REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 31315 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, AUGUST 25, 1992 ******************************************************************************* CALL TO ORUER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 11:35 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Development Manager Shear, City Planner Christen, Community Services Director Watenpaugh, Public Services Director Tecca, Special Projects Coordinator Basham, City Treasurer Pape and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS None. CONSENT CALENDAR , The following item was pulled from the Consent Calendar for further discussion ' and consideration: Item No. 3. MOVED BY ALONGI, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - August 11, 1992. (F:134.3) b. Special Redevelopment Agency Meeting - August 13, 1992. (F:134.3) 2. Received and ordered filed the following Investment Reports: (F:12.5) a. June 30, 1992. b. July 31, 1992. ITEMS PULLED FROM THE CONSENT CALENDAR 3. Warrant Lists (F:12.3) a. July 31, 1992. b. August 14, 1992. Boardmember Alongi clarified items over $50,000 including Public finance Authority item, Graham Streeet Parking Lot improvements and MBC Construction for work on Collier Avenue. MOVED BY ALONGI, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO RATIFY THE WARRANT LISTS AS PRESENTED. BUSINESS ITEMS 4. Downtown East Assessment District. (F:22.3) ~~ Boardmember Winkler suggested that concurrence with Council Action on this i item is adequate. ~ PAGE TWO - REDEVELOPMENT AaENCY MINUTE$ - AUGUST 25~ 1992 MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY A VOTE OF 4 TO 1 WITH CHERVENY CASTING THE DISSENTING VOTE TO CONCUR WITH COUNCIL ACTION. 5. Tourism/Recreation (Amohitheatre-Stadium~. (F:134.7) Executive Director Molendyk highlighted this item which would authorize a contract to negotiate for a minor league baseball team. It also would provide for a feasibility study fow an Amphitheatre/Stadium. MOVED BY ALONGI, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO AUTHORIZE THE EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT FOR $100,000 FOR THE FEASIBILITY STUDY. Executive Director Molendyk requested that the Board consider the addition of an item to the Agenda regarding the upcoming Autumn Fest. MOVED BY ALONGI, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO ADD THIS ITEM TO THE AGENDA. 6. Autumn Fest (F:151.1) Executive Director Motendyk highlighted this event which will be part of the ongoing economic/tourism effort in the Community. He explained that many of the events would focus around the airport such as balloning, skydiving, etc. He further explained that the request would be for approval of the event, so publicity can be started, and the approval of a budget transfer in the amount of $20,000 to fund the event. MOVED BY DOMINGUEZ, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO AUTHORIZE THE EVENT AND THE ASSOCIATED BUDGET TRANSFER. PUBLIC COMMENTS _ NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTORS REPORT None. BOARDMEMBER COMMENTS None. CLOSED SESSION THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL TO DISCUSS A PERSONNEL MATTER AND A MATTER OF LITIGATION WITH O.M.G. AT 11:45 P.M. THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 12:14 P.M. NO ACTION TAKEN ADJOURNMENT MOVED BY ALONGI, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 12:15 P.M. / ~'-~~ ``-"°"~TERE CHERVENY, CHAI OMAN _ REDEVELOPMENT AGENCY THE BOARD REDEVELOPMENT AGENCY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 31315 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, SEPTEMBER 22, 1992 ***************************x********************************************~****** CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 9:14 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, CHERVENY ABSENT: BOARDMEMBERS: WINKLER Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, City Planner Christen, Community Development Manager Shear, Special Projects Coordinator Basham, Special Projects Coordinator Wood, City Treasurer Pape and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS None. CONSENT CALENDAR The following item was pulled from the Consent Calendar for further discussion and consideration: Item No. 3. ', MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - September 8, 1992. (F:134.3) 2. Ratified Warrant List - September 15, 1992. (F:12.3) ii ITEM PULLED FROM CONSENT CALENDAR ~ 3. Propertv Acquisition = 503 and 501 N. Main Street. (F:134.8) I Councilman Alongi requested clarification of the staff recommendation on , this item. He wanted to be sure that the owner knows he must submit plans I or obtain permits to prevent continuation of the abatement. MOVED BY ALONGI, SECONDED BY CHERVENY AND CARRIED BY A VOTE OF 3 TO 1 WITH , WASHBURN CASTING THE DISSENTING VOTE TO INDICATE TO THE PROPERTY OWNER THAT THE ' REDEVELOPMENT AGENCY HAS NO INTEREST IN THE ABOVE PROPERTIES AND AUTHORIZE ' STAFF TO CONTINUE WITH THE ABATEMENT. BUSINESS ITEMS 4. Lake Elsinore S,_guare Rancon Financial Packaae _ Central Avenue at I=15. (f:58.2) Executive Director Molendyk highlighed the Lake Elsinore Square project which now has an anchor for their project with Food for Less and a theater. ~ Special Projects Coordinator Wood explained that financial aspects of the PAGE TWO - REDEVELOPMENT AGENCY MINUTES - SEPTEMBER 22, 1992 project have been reviewed and financial aid in the area of off-site improvements of Central and Collier is being requested. He further explained that if an assessment district is placed to finance the off-site improvements the tax increment produced from their property at build-out will cover the debt service on that property. Mr. Wood explained that the Board would have to pledge the money to the debt support which would not be a contribution of cash to the applicant, but rather a pledge and the applicant would have to make up the difference in the debt service should they fall short until build-out. I Executive Director Molendyk explained that the best way to finance this is , - through the 1913/1915 Assessment District. He further explained that it would be a benefit to the entire area to provide for proper traffic circulation and signalization. ', Legal Counsel Harper explained that at this time staff is asking for conceptual approval only, as there are a number of steps to form this type of district. Special Projects Coordinator Wood explained the protest , hearing procedure. Legal Counsel Harper explained that there are other alternatives that need , to be explored with Rancon and the other property owners, and neither Mr. ~ Wood or staff is asking the Board to make a decision on the final , Assessment District. Boardmember Alongi requested clarification that instead of using RDA loans, I an Assessment District would be formed to pay with the tax increment the ! improvements. Mr. Wood confirmed. ; John Shaw, Rancon Financial Corporation presented a site plan and detailed the available information with regard to tenants. He explained that with Board approval in concept they are looking at having their tenants in the buildings by next summer. ', Boardmember Washburn expressed concern with the debt that would be incurred by the other property owners in the area. ', Executive Director Molendyk explained that if the project is approved in I concept there are two different directions the board can take. He also explained that based upon the economic opportunities of the area the improvement of the entire length of Collier would be to the benefit of the community. I! Chairwoman Cherveny commented that the community is looking forward to this project. MOVED BY ALaNGI, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE LAKE ELSINORE SQUARE (RANCON) FINANCIAL PACKAGE IN CONCEPT. 5. Rodeo Update & Recommendations. (F:108.4)(X:108.17) Boardmember Alongi explained that the City of Lake Elsinore contacted the Lake Elsinore Valley Chamber of Commerce in regard to the use of their Rodeo grounds in order to present the Sierra Circuit. He further explained that the Chamber requested the following conditions for this rental: 1. The Lake Elsinore Frontier Days Rodeo Inc. will change its corporate name. This was agreed to and an application with the state has been submitted to change the name to Western Classic Productions. 2. The corporate logo woyld not be used for the Frontier Days Rodeo. This condition was agreed to. 3. The Western Classic Productions produce a document that the Sierra ___ _._ -- -_ I PAGE THREE - REDEVELOPMENT AGENCY MINUTES - SEPTEMBER 22, 1992 Circuit will change the name of the contract from Frontier Rodeo, Inc., to Western Classics. The document has not beerr presented but that ' there will be no problem changing the name on the contract. ; '~ Boardmember Alongi further reported that there were two other conditions I already agreed upon. One was when the Western Classics releases any news article that they would refer to themselves under their new name and the ~ other condition was that in the spirit of cooperation requested that their committee not wear their green jackets at the rodeo grounds, because the jackets do display their old name and the logo in question. He further , explained that the committee is also considering $20,000 seed money as a ', loan to be paid back during the Sierra Circu~t program along with the 'I $5,000 rent of the rodeo grounds which would be from part of the seed money paid for during the circuit for immediately after the event. Warren Alstatt, 35065 E1 Dorado Road, Chairman of the Western Classics Productions, Inc., thanked the Board for their interest and concern in regard to keeping the Sierra Classics in Lake Elsinore. He explained the activities of the Sierra Circuit and stated that he feels it will be a benefit to the City. Mr. Alstatt further stated that all volunteers are gratefully appreciated and asked for anyone interested to contract their organization. Marsha Bennett, P.O. Box 321, Lake Elsinore explained that their organization is very capable to present rodeos and gave their qualifications. Todd MacIntyre, 34053 Harvest Way, stated his support of the Sierra Circuit and of the rodeo being in Lake Elsinore and being present by Western Classics Productions. Gary Denny, Member of RCA, stated his support of the Western Classics Production. Mark Blecher, 3690 Conan Circle, expressed his support of the Sierra Circuit Rodeo. Art Chaskin, 18949 Grand Avenue, Representative of SOK, expressed his support of the Sierra Circuit Rodeo. ~i Boardmember Alongi clarified two points, one being if loan to Western i, Classics is approved, they would be returning 20% of the profit to the I City; and two that there were two offers made to the Chamber one of which I was to rent the grounds for $5,000 or if the RDA wishes award a loan to the ' Chamber to upgrade the lighting at the Rodeo grounds. , Boardmember pominguez advised that he would like to see a financial I statement as to how much revenue comes into the City and see the business il owners get involved. He further questioned ~he collateral of the loan made for the Board. Boardmember Alongi called for the Board to "bite the bullet" and make a ' decision. He further stated that he would ask the Board to approve his ', recommendation. II Boardmember Washburn explained that there was a great deal of negotiation I~ and advised that he felt the City could support two rodeos and he felt that ~! this is a good thing for the community. He expressed concern that other ' organizations may come to the Agency asking for seed money. Boardmember il Washburn stressed that the agreement must be fair to all parties involved. , The Chamber of Commerce agreed to the proposal in principal as presented by Boardmember Alongi. Chairwoman Cherveny asked if the Chamber is satisfied. Tom Hundshamer, Chamber President stated that since all the conditions were met the Chamber would be agreeable to rent the grounds to the City of Lake ~ PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - SEPTEMBER 22, 1992 ~ ~ Elsinore. He advised that the Chamber would like to receive the $5,000 rent and come back to the Agency with a request for a low interest loan for , the lighting at a later date. Marsha Bennett encouraged the Board to make an immediate decision. , Chairwoman Cherveny asked Lega1 Counsel Harper if there is any problem with , loaning the money. Counsel Harper stated that there was not. ' There was general discussion in regard to the agreement between Western Classics, the City and the Chamber. ', Chairwoman Cherveny stated that the Chamber has passed a resolution of , approval that they are in agreement with the terms. She further stated , that she has been involved with both rodeo groups and she feels that there is room for both. Pam Johnson, Chief Financial Officer, Western Classics Productions, explained the draft budget shows a net profit which is projected to be approximately $23,600 after repayment of the $20,000 RDA loan and after the payment of the $5,000 rental fee for the Rodeo grounds. Chairwoman Cherveny clarified that the loan amount will be for $20,000 of which $5,000 of the loan amount will be used for the rent of the grounds. Ms. Johnson confirmed. ' Boardmember pominguez explained that he would move on this item for , approval in concept only to be brought back to Council with supporting I documentation. , Boardmember Washburn explained that he would second the motion but would like to see this item addressed before the next Council Meeting after the staff reviews the budget for the event. He would also like to see further supporting documentation. Boardmember Alongi explained that he felt brining staff into this at this late date would not be productive. He further explained that when the loan documents are drawn up staff can review their back-up documentation. He stressed that time is of the essence and there is advertisement which needs to be addressed as soon as possible. Chairwoman Cherveny questioned Executive Director Molendyk in regard to the meeting with the Chamber and asked his opinion. Executive Director Molendyk explained that he felt that Boardmember Along had covered all the points and stated that all the legal aspects would be covered in the Agreement. Legal Counsel Harper explained that a condition to this conceptual item would be an agreement signed by all three parties involved. Boardmember pominguez explained that he did not get involved in this issue because it was being addressed by Boardmember Alongi and Boardmember Washburn and asked for the financial report and collateral for the loan. Chairwoman Cherveny asked for clarification by Legal Counsel. Legal Counsel Harper explained that if action was taken in a positive manner, indicating the Board's willingness to proceed, the assumption that the agreement between the two organizations is actually executed by the two organizations, stating that you are willing ~to award a combination $5,000/$20,000 loan that at the next regular Redevelopment Agency we have a consent item of the agreement. If we are unable to get the signatures, then the organization putting on the Rodeo, who has by that time spent some of their own money and time is doing so at their own risk. Executive Director Molendyk explained that Boardmember Washburn stated he PAGE FIVE - REDEUELOPMENT AGENCY MINUTES - SEPTEMBER 22, 1992 was willing to have a special meeting to resolve this issue. Boardmember Alongi explained that it is the City of Lake Elsinore who is renting the Rodeo grounds and not the Western Classics Production. He further explained that this issue has already been resolved and this needs to be addressed tonight. He also explained that this is a special ~ circumstances and needs the Board to address the issue tonight. Mr. Alongi I stated that the Western Classics Productions will have to produce the ~ documentation to qualify for the loan and if they cannot produce the I information then they will not receive a loan. ~, MOVED BY ALONGI, SECONDED BY DOMINGUEZ AND FAILED TO CARRY BY A VOTE TO 2 TO 2 , WITH DOMINGUEZ AND WASHBURN CASTING THE DISSENTING VOTES TO APPROVE THE ITEM IN CONCEPT, TO BE BROUGHT BACK TO THE REDEVELOPMENT AGENCY BOARD WITH ' SUBSTANTIATING DOCUMENTATION FOR THE BOARDS FINAL APPROVAL OF A LOAN TO WESTERN I CLASSICS PRODUCTION IN THE AMOUNT OF $20,000. I MOUED BY ALONGI, SECONDED BY CHERVENY AND CARRIED BY A VOTE OF 3 TO 1 WITH , DOMINGUEZ CASTING THE DISSENTING VOTE TO APPROVE THE AGREEMENT BETWEEN THE CITY ', Of LAKE ELSINORE AND THE CHAMBER OF COMMERCE FOR THE RENTAL OF THE RODEO , GROUNDS IN THE AMOUNT OF $5,000 AND LEASING THE GROUNDS BY THE CITY TO THE ~i WESTERN CLASSICS PRODUCTIONS. I MOVED BY AIONGI, SECONDED BY CHERVENY AND CARRIED BY A VOTE OF 3 TO 1 WITH ' DOMINGUEZ CASTING THE DISSENING VOTE TO AUTHORIZE THE LOAN Of $20,000 TO WESTERN CLASSICS PRODUCTIONS, SUBJECT TO PREPARATION OF APPROPRIATE DOCUMENTS BY THE CITY COUNCIL WITH A PAY BACK OF THE $20,000 PLUS 20% OF THE NET PROFIT. Boardmember Washburn further stated that with the resolution of this issue ' that he would hope that the relationship between the Chamber of Commerce and the Rodeo, Inc. start to mend and heal. II Chairwoman Cherveny further stated that she would also hope that this would , start to heal the problems experienced by both groups, but most important , of all is that this is for the community and should be treated as such. !I PUBLIC COMMENTS = NON-AGENDIZED ITEMS I None. EXECUTIVE DIRECTORS REPORT None. BOARDMEMBER COMMENTS None. CLOSED SESSION None. ', ADJOURNMENT II MOVED BY WASHBURN, SECUNDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 10:40 P.M. ~ i TERE CHERVENY, CHA MAN REDEVELOPMENT AGENCY AT EST: i ~ ~~ VICKI KASAD, CLERK OF THE BOARD ~ REOEVELOPMENT AGENCY ~ MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE ' 31315 CHANEY STREET ', LAKE ELSINORE, CALIFORNIA ~, TUESDAY, OCTOBER 13, 1992 ~:**,e~,ririr*atir********~r,-~«,rt~r**,ir~,~+*:*ta~t***«*~rre~r+t~r«+r~,r*«**+ett+r~rt~e«*,r*«** CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 10:55 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMIN6UEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen, Special Projects Coordinator Basham, City Treasurer Pape and Clerk of the Board Kasad. PUBLIC COMMENTS _ AGENDIZED ITEMS None. CONSENT CALENDAR MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. j 1. The foltowing Minutes were approved: a. Regular Redevelopment Agency Meeting - September 22, 1992. 2. Received and ordered filed the Investment Report for August, 1992. BUSINE55 ITEMS 3. Warrant List _ Se~tember 30, ~. Chairwoman Cherveny questioned the payment to Bein/Frost payment for the Amber Ridge Study, and whether this was payment in full. Staff advised that it was not. MOVED BY ALONGI, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO RATIFY THE WARRANT LIST OF SEPTEMBER 30, 1992. 4. Budaet Revision = Fiscal Year 1992-93. Executive Director Molendyk commented on the State budget balancing and its impact on cities. He explained that the Redevelopment Agency was impacted by approximately $800,000. He further explained that because of recent positive financial programs placed in escrow last year and a recent review of assessor's office records, the new tax increment estimates allow for a larger draw down in the 1992/93 budget year. He detailed the additional revenues and the projects which are proposed to be added. MOVED BY WINKLER, SECONDED BY WASHBURN TO RECEIVE AND FILE THE REPORT AS SUBMITTED. Boardmember Washburn commented that he doesn't necessarily agree with the proposed allocations and suggested scheduling of a Study Session to address the p~epo~^~ ~e~~~~ions ±o the Redevelopment Agency budget. ~ PAGE TWO - REDEVELOPMENT AGENCY MINUTES - OCTOBER 13, 1992 Boardmember Alongi advised for the record that he is opposed to the allocations for powntown East Assessment District, Auto Mall, Eastlake TMC, Rehabilitation of the Church and the Lehr Option. Executive Director Molendyk commented that the allocation for the Downtown East Assessment District has been reduced. Chairwoman Cherveny inquired if the 550,000 has already been spent. Administrative Services Director Boone indicated that it has been spent. ' Chairwoman Cherveny commented on the newly budgeted items and the basic reasons for the modifications. She further commented that it is not ', necessary to allocate to new projects just because there are additional I funds this year. , Executive Director Molendyk clarified the allocations for the Outflow Channel, Downtown East Assessment District, Auto Mall, Eastlake, Graham Street, Housing Program and the Lehr Option. THE FOREGOIN6 MOTION CARRIED BY UNANIMOUS VOTE. 5. Citv Center pevelonment = Reauest for Financial Assistance. ' Executive Director Molendyk commented that this matter has been discussed ', several times and detailed the location and previous discussions. He indicated that an amendment has been requested with regard to item 2 of the , request. Milton Freeman, applicant, highlighted the two year process and , expenditures to date. He requested approval to move forward with the project, with the sales tax issue consideration postponed to a later date. ' He indicated that his primary concern at this time is the bonding to ', proceed with work on Grape Street. , ', Boardmember Winkler requested clarification that the final financial ', package would be brought back at a later date. Mr. Freeman confirmed. ~, MOUED BY WINKLER, SECONDED BY DOMINGUEZ TO APPROVE THE REQUEST WITH THE ', DELETION OF ITEM #2 REGARDIN6 SALES TAX. Boardmember Alongi inquired whether the sales tax is attached to this particular consideration. City Manager Molendyk indicated that it was not. City Attorney Harper clarified that he would understand this motion as direction to staff to proceed with formation of a Community Facilities District. ', Chairwoman Cherveny requested clarification as to whether this item is I proposing 100% of the tax increment. Boardmember Winkler clarified the tax increment and the ability to off-set , police and other costs through the sales tax generated. ~ Milton Freeman clarified the intent to link the land to the sales tax and indicated that this item will be brought back because some sales tax ', consideration will be necessary. ', Chairwoman Cherveny requested further clarification of the sales tax and ', the requirement for this consideration, particularly whether it was requested by the tenant or the developer. Mr. Freeman indicated that they ', would be requesting up do 50% of the sales tax toward retiring the debt. ' Councilwoman Cherveny questioned Mr. Freeman's statement that sales tax ', would be necessary. Mr. Freeman indicated that this is not a foregone ' conclusion. ' Boardmember Alongi concurred with Boardmember Winkler in that the basis for investing in commercial projects is the sales tax. He clarified ' subsidizing vs. assisting, and stressed the need to look at true sales tax ', generation figures. i ~ PAGE THREE - REDEVELOPMENT AGENCY MINUTES - OCTOBER 13, 1992 Boardmember Winkler stressed the need to be aggressive in generating coromercial projects. He further stressed the difficulty in this decision. Chairwoman Cherveny agreed with Boardmember Winkler, however, she felt she would be more comfortable making commitments, if she knew who the tenant would be. THE FOREGOING MOTION CARRIED BY A VOTE TO 4 TO O WiTH WASHBURN ABSTAINING. 6. Notice of Comoletion = Graham Street Parkin ~. Executive Director Molendyk highlighted this item. MOVED BY WASHBURN, SECONDED BY DOMINGUEZ TO ACCEPT THE NOTICE OF COMPLETION FOR 7HE GRAHAM STREET PARKING LOT. Chairwoman Cherveny questioned the change orders on this project and indicated that the Board discussions specifically indicated that there . would be no change orders. Public Services Director Tecca clarified the bid amounts and the contract requirements. He indicated that the only way the contractors would accept the change to 31,000 per day liquidated damages, was if they could also expect a 51,000 per day bonus for finishing early. Chairwoman Cherveny commented that she did not understand that to be part of the contract. Boardmember Alongi commented that while the bonus is legally correct, it was specifically stated that there would be no change orders on the project. He questioned the previous demolition project and whether some of this project's change order cost was due to the demolition not being complete. Public Services Tecca indicated that these items are addressed by the 20% contingency approved for the contract. Boardmember Alongi stressed that no change orders were to be included, even though he understands contingencies. Exec~tive Director Molendyk requested further clarification of the change orders. Public Services Director Tecca explained the changes. Boardmember Alongi expressed concern with the footings found and further questioned the previous demolition on this site. He suggested that the City might be entitled to reimbursement from the demolition contractor. Boardmember Alongi questioned the cost and inspection of the building removal. Community Development Manager Shear confirmed that inspection did occur as the removal was accomplished. He indicated that the slab, etc. found during this project were apparently from an even older structure at that site. Boardmember Alongi inquired whether Mr. Shear had inspected the slab. Mr. Shear indicated he had and it was approximately 18" below the existing grade. Mr. Tecca further clarified the change order: Boardmember Washburn commented for public information that a nest of old horseshoes had also been found on this site from the former uses of the property. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. 7. Additional Contract Administration Costs or Collier Avenue Improvements between Riverside Drive and Nichols Road. Public Services Director Tecca commented on this project and the numerous associated change orders during construction. He explained that the Project Manager was John Ballew and the Construction & Design Manager was Albert Webb and Associates. He detailed the change orders for Albert Webb and Associates based on the construction change orders. ~ ~ PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - OLTOBER 13, 1992 Chairwoman Cherveny questioned whether the EVMWD payment was 5700,000. Mr. Tecca explained that EVMWD was responsible for only about 555,000 of that ' cost. He further explained the cost increases due to time and project changes. He indicated that the time frame was increased from 110 days to 264 days. Matt Webb, addressed the major delays and increased costs for this project, including Department of Fish & Game permit requirements, etc. ~ , Chairwoman Cherveny further questioned the process and the impact of Water District changes. Executive Director Molendyk clarified the requirements to work with other agencies on projects of this type. Boardmember Washburn noted that additional acquisition was required during the construction phase, as well as ongoing changes required by Caltrans, ' etc. ', Mr. Webb clarified the environmental requirements which were continuously - revised. MOVED BY WINKLER, SECONDED BY WASHBURN AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO APPROVE THE CHAN6E ORDER AS PRESENTED. 8. Chanae Order for Collier Avenue Imorovements etween Riverside Drive and Nichols Road. I Public Services Director Tecca showed a diagram of the change orders on this project. He detailed negotiations for a reduction in the ', requirements. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY A VOTE Of 4 TO 1 WITH ' ALONGI CASTING THE DISSENTING VOTE TO APPROVE THE CHAN6E ORDER AS PRESENTED. ', 9. Amber Ridae Sewer Studv. Boardmember Alongi requested that the Redeveiopment Agency Board continue this item because there were not enough facts available for him to make a decision. Boardmember Winkler commented that the report concludes the Redevelopment , Agency can legally fund the project; and without the sewer main and ' laterals there is no hope for the residents in the Amber Ridge tract. He ' further commented that Boardmember Kelley and the staff of Elsinore Valley , Municipal Water District are currently }ooking at loan potentials to fund the project. Mr. Winkler suggested that the homeowners may not have to pay back loans since it is a matter of public health and safety and the sewer I lateral connection can be placed as a lien which will reimburse E.V.M.W.D. ' at the time of the sale of the home. He explained that this will be on the E.Y.M.W.D. Agenda for the 28th, and if E.V.M.W.D. does not agree to ', allowing Amber Ridge without pay on the sewer main and laterals due to ', costs, then it is justified the use R.D.A. funds to assist. Mr. Winkler ' stated that the potential for pollution of the lake and homes being boarded up creates crime problems and decreases the property value of all the , homeowners. He further stated that this is a unique situation, but the ', Board has addressed other unique situations such as the Downtown area. He ' also stated that this would save a neighborhood and benefit all the surrounding property ewners. He asked that a date specific be set when the item is continued possibly a special Council Meeting on October 29, at 4:00 p.m. This would allow the Board to consider the issue as soon as possible. Gary Kelley commented that even if only a few families have problems in a , tract the whole tract has a problem. He further commented that in his , tract eight years ago there were similar problems and it is a real burden. ', He stated that he would like to see sewer mains and laterals to the curbs. ~ Mr. Kelley also stated that due to the drought it has made the ground more j ~~ ~ _... ~- _- - -- -- PAGE FIVE - REDEVELOPMENT AGENCY MINUTES - OCTOBER 13, 1992 absorbent, however if excessive rain is received this year, it will compound the problem. Bob Hildebrant, resident of North Pennsylvania Street, requested help from the Redevelopment Agency to solve his sewer problems. Janice Fielding, 158 N. Pennsylvania, stated that she was in favor of using R.D.A. funds to assist the installation of sewer. She further stated that due to the failure of the septic systems in the Amber Ridge tract, they could be considered a blighted area and qual;fy the tract for assistance from R.D.A. Betty Martin, 159 N. Woodlake, explained that she has had several problems with her septic system and must have the tank pumped four times a year and she cannot sell her home due to required disclosures. She also cortenented that.this has caused bacteria in their water system. Wayne John, stated that the previous Sunday their septic system backed up into their home and caused $6,000 in damage. He further explained that he has lived in his home for the last eight years and has had ongoing problems. Karen Snyder, 150 N. Pennsylvania Street, asked the Board to use R.D.A. funds to assist in installing sewer in the Amber Ridge tract. She detailed the problems that have been experienced by the tract from failures of the septic systems. Chairwoman Cherveny stated her sympathy with with problems experienced by the residents of the Amber Ridge tract. She commented that she objected to payment for the consultants report, due to its inefficiency of the report and its variation from the scope of services. She further stated that she would not base her opinions on the findings in the report because the facts are at least three years old and contact was not made with the current property owners to evaluate the current problems. Boardmember Alongi expressed his dissatisfaction with the report as well and explained that he could not base a decision on the information presented. He clarified appropriate uses of R.D.A. monies. Boardmember Washburn stated that he was in favor of the motion and that Legal Council Harper made the finding that this area qualified for R.D.A. funding. Legal Counsel Harper explained that after review of the report and meeting with the consultant who indicated that there was strong potential of having adverse impacts on adjacent project areas that is sufficient to make a finding that it is of benefit to the project area to assist with project area funds. Councilman Winkler explained that he does not want to make a decision until Elsinore Valley Municipal Water District has their Board Meeting and the R.D.A. has their input in order to be better informed. Bill Green, Robert Bein, William Frost & Associates, explained that there has been a substantial amount of work that was done by his company. He further explained that they did go to the Health Department and acquired a study done three years a9o as well as doing a random survey of the Amber Ridge tract. He further explained that there has been a phone survey, as well as being on site as you can see by the pictures. He stated that he will be available for questions at the meeting of October 29th. Boardmember Alongi stated that he needed clarification in regard to the use of Redevelopment Funds in regard to this problem and how much this project will cost to resolve the problems. MOVED BY WINKLER, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO CONTINUE THIS ITEM TO OCTOBER 29, 1992 AT 7:00 P.M. PA6E SIX - REDEVELOPMENT AGENCY MINUTES - OCTOBER 13, 1992 UP BLIC COMMENTS _ NON-AGENDIZED ITEMS None. EXECUTI4E DIRECTORS REPORT Executive Director Molendyk commented on the earlier discussion and explained that staff is under the impression that certain areas are of interest to the Redevelopment Agency Board. He further explained that letters were sent out to restaurants based on earlier direction and inquired if that direction had changed. BOARDMEMBER COMMENTS Chairwoman Cherveny indicated that she felt this matter should have been brought before the board. Boardmember Washburn commented that this matter has been discussed previously. Chairwoman Cherveny explained that her real concern with Lhis item is the potential for loss of the City parking lot. CLOSED SESSION None. MOVED BY ALONGI, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT A6ENCY MEETIN6 AT 12:25 A.M. _ ~ . ~_„~.i1Lf~L NILI~~LI~1~ Nlllll~n' REDEVELOPMENT AGENCY CITY OF LAKE ELSINORE ' AT EST: / ~I ~~ VICKI KASAD, CLERK Of THE BOARD ' REDEVELOPMENT AGENCY , MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LARE ELSINORE 31315 CHANEY STREET LARE ELSINORE~ CALIFORNIA TUESDAY, OCTOSER 27, 1992 AiF+k+kie#*A+kiieA#*+tA+k+k+k***+kt#'ik~ktRtAikRRARfeikAi~AA+kAAAA*1F~kfeilr~kR~kA1t*+kiktARA#r CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 9:39 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, CHERVENY, DOMINGUEZ, WASHBURN ABSENT: BOARDMEMBERS: WINKLER Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen, Special Projects Coordinator Basham, Special Projects Coordinator Wood, City Treasurer Pape and Clerk of the Board Kasad. PUSLIC COMMENTS - AGENDIZED ITEMS No Requests were received. CONSENT CALENDAR MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - October 13, 1992. (F:134.3) ' 2. Concurred with City. Council Action to adopt Resolutions ' relatinq to formation of Community Facilities District 92-1, , Lake Elsinore Plaza Public Improvements (Rancon). (F:22.3) BUSINESS ITEMS 3. Warrant List - October 15, 1992. (.F:12.3) MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO RATIFY THE WARRANT LIST OF OCTOBER 15, 1992, AS PRESENTED. 4. Low Interest Loan Proaram - xequesL =rom ~srooxszone Lanu~nU. (F:134.1) Executive Director Molendyk explained this request for assistance and clarified that the existing signs at this site are non-conforming. He detailed the estimates of replacement costs and suggested that this would assist in addressing the existing standards and alleviating the existing vacancy rates at the West End of the Lake. ~ PAGE TWO - REDEVELOPMENT AGENCY MINUTES - OCTOBER 27, 1992 ~ Carol Altman, Applicant, explained that she has recently moved to the area and purchased the buildings under discussion. She clarified the location of the buildings and stressed the cost of the proposed improvements. She further explained that she has made this request to assist the existing tenants in conforming with the Standards. MOVED BY WASHBURN, SECONDED BY ALONGI TO APPROVE THE REQUEST. Boardmember Alongi requested information on the type of signage ', proposed. Mrs. Altman explained that they would be channel ' letter signs and there was really a time limit of June, 1992, ' to have them in place. Boardmember Alongi questioned the conformance of the signs to the others in the area. Mrs. Altman advised the Steve's signs ' had done the work in the area previously and would be doing this work. Boardmember Alongi inquired how long the payback period would ' be on the loan. Mrs. Altman was not certain as to the terms. ' Chairwoman Cherveny inquired whether a 10 year term would be j acceptable. Mrs. Altman indicated that it would be acceptable. Boardmember Alongi questioned how the loan would be secured. Legal Counsel Harper indicated it would be secured through a ', trust deed. , THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT. ' Chairwoman Cherveny expressed her appreciation of the efforts of this applicant. Mrs. Altman requested continued law enforcement efforts in the West End of the Community. ' 5. 183 North Main Street - Authorization to Proceed with ', improvements. (F;134.10) I Executive Director Molendyk requested that this item be ' continued to obtain additional information. MOVED BY DOMINGUEZ, SECONDED BY WASHBURN TO CONTINUE THIS ITEM FOR TWO WEEKS. ', Boardmember Alongi questioned the reason for continuance. ', Executive Director Molendyk clarified that the scope of work is I in question; possible other considerations including public address system, interior improvements, etc. ' Boardmember Alongi requested a Study Session on this item. Executive Director Molendyk indicated that there may be some interest in reevaluating the Study Session format and inquired ' which topics should be discussed first. ' Boardmember pominguez advised that he had expressed concern ' with this item and requested a information on a completed , project. Boardmember Washburn concurred that the estimates might need revisions. He commented that this building has the potential to house cultural events, Chamber of Commerce events, etc. He ' requested input on suitable uses for the building. I I PAGE THREE - REDEVELOPMENT AGENCY MINUTES - OCTOBER 27, 1992 ~ Chairwoman Cherveny commented on rehabilitation of the building and questioned the specific purposes for which the work is being considered. She further questioned the estimated costs for retrofitting the building and requested their inclusion in the package. TAE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT. ' E%ECUTIVE DIRECTOR~S REPORT Executive Director Molendyk commented on the Lake Elsinore Outlet Center and advised that phase 2 is now being completed, and the ' Psoft" opening is currently planned for November 4th. He detailed the stores to be opened at this time including Levi, Mikasa, ' Jordache, Carters, Windsor, etc. ' Legal Counsel Harper requested a Closed Session on the Lehr Option. BOARDMEMBER COMMENTS ' MOVED BY CHERVENY, SECONDED BY ALONGI AND CARRIED BY A VOTE OF 3 TO 1 WITH WASHBURN CASTING THE DISSENTING VOTE TO TABLE THE AMBER ' RIDGE SEWER STUDY ITEM UNTIL THE NEXT REGULAR MEETING TO ALLOW FOR ELSINORE VALLEY MUNICIPAL WATER DISTRICT CONSIDERATION OF THIS ' MATTER. Chairwoman Cherveny requested that Karen Snyder be notified of this timing. CLOSED SESSION TAE REDEVELOPMENT AGENCY ADJOURNED TO A JOINT CLOSED SESSION WITH ' THE CITY COUNCIL AT 9:42 P.M. TO DISCUSS THE LEHR OPTION AND PERSONNEL MATTERS. ' THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 9:59 P.M. NO ACTION TAKEN. ADJOURNMENT ' MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 10:00 P.M. ; - , % ERE CHERVENY,,CHAIRW MAN REDEVELOPMENT~AGENCY A TEST: / TCASADI~F THE BOARD VI K~ , REDEVELOPMENT AGENCY ~ MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LARE ELSINORE 31315 CHANEY STREET LARE ELSINORE~ CALIFORNIA TUESDAY~ NOVEMBER 10~ 1992 *r~r**r****~****r****r**~ CALL TO ORDER The Regular Redevelopment by Chairwoman Cherveny at ROLL CALL PRESENT: BOARDMEMBERS: ABSENT: BOARDMEMBERS: k**#*******i*~****#*A*#*********ii* Agency Meeting was called to order 9:25 p.m. ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen, Special Projects Coordinator Basham, City Treasurer Pape and Clerk of the Board Kasad. PUBLIC COMMENT3 - AGENDIZED ITEM3 None requested. CONSENT CALENDAR MOVED BY ALONGI, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - October 27, 1992. (Fc134.3) 2. Received and ordered filed the Investment Report for September, 1992. (F:12.5) 3. Approved Public Hearing date of November 24, 1992 for the Lake Elsinore Aeration System - Negative Declaration. (F:92.2) BUSINESS ITEM3 4. Warrant List - October 30, 1992. (F:12.3) MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO RATIFY THE WARRANT LIST AS PRESENTED. 5. Lakeshore Drive Bridge - Revised Design Work - McLean & Schultz. (F:156.2) MOVED BY WASHBURN, SECONDED BY DOMINGZJEZ AND CARRIED BY UNANIMOUS VOTE TO AWARD A CONTRACT TO MCLEAN & SCHULT2 IN THE AMOUNT OF $59,793 T0 PERFORM THE SERVICES CONTAINED IN THE SCOPE OF WORK PRESENTED. , ~ PAGE TWO - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 10, 1992 6. Lakeshore Drive Bridge & San Jacinto Channel - Contract Amendment - Revised Design - Mohle, Grover & Associates. (F:15S.2) MOVED BY WASHBURN, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO AUTHORIZE AN AMENDMENT TO THE EXISTING CONTRACT WITH MOHLE, GROVER AND ASSOCIATES TO INCORPORATE NEW SCOPE OF WORK IN THE AMOUNT OF $114,618. 7. Camelot Prooerties - Reauest for Financial Assistance. Executive Director Molendyk explained that Camelot Properties developed K-Mart as Phase I of their project and the Redevelopment Agency participated with a grant of $250,000 and a low interest loan of $350,000 for a total of $600,000. He further explained that Camelot Properties is ready to move forward with Phase II to include a theater and they are now requesting the Redevelopment Agency's consideration for a grant of $250,OO0 for the on site improvements and $600,000 in assistance for off-site improvements to complete the Malaga/Mission Trail intersection. Chairwoman Cherveny clarified that this project was not approved in the 1992/1993 Budget for the Redevelopment Agency. MOVED BY CHERVENY, SECONDED BY ALONGI TO CONTINUE THIS ITEM TO A STUDY SESSION TO ADDRESS THE CONCERNS OF THE REDEVELOPMENT AGENCY BOARD AND TO GAIN FURTHER INFORMATION IN REGARD TO THE BUDGET CONSTRAINTS. Leonard O'Byrne discussed the previous loan acquired by Camelot Properties and explained the financial assistance which was received for Phase I(K-Mart). He detailed the planning of Phase II and stressed Camelot Properties~ commitment to the City of Lake Elsinore and the benefit of $s76,3s3.72 in tax increment and sales tax that the City has received in addition to the public improvements which cost $1,856.314. He also detailed the employment that K- Mart has brought to the community. Mr. O'Byrne explained the Phase II project and advised that there will be a theater, auto parts store and various other shops. MOVED BY WASHBURN, SECONDED BY WINKLER A SUBSIDIARY MOTION TO SEND THIS ITEM BACK THROUGH THE FINANCE DEPARTMENT TO DEVELOP A TAX INCREMENT PACKAGE WHICH COULD BE PLEDGED TO THE SITE FOR THE FINANCING OF THE PROJECT, WITH THE ITEM TO BE RETURNED TO THE AGENCY AFTER THE PACKAGE IS COMPLETE. (MOTION AMENDED AND APPROVED LATER IN THE MEETING.) Legal Counsel Harper asked Boardmember Washburn if the tax increment being discussed would be from Phase II or the entire project. Boardmember Washburn suggested that it be from the entire project. Mr. Harper explained that the tax increment bonds are pledged for repayment of debt, which is pledged from the Phase I. Chairwoman Cherveny commented that Boardmember Winkler had requested, a review of the Redevelopment Agency Budget at the next study session and suggested that this information would be pertinent to a decision on this item. PAGE THREE - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 10, 1992 Mr. O'Byrne clarified that time is of the essence in that he has a 90 day contract with the theater which was submitted in August and near expiration. He expressed concern that further study would cause the time frame to go beyond the contract time. Boardmember Washburn explained that he did not want to see the Board delay progress of this project, but did want to have the financial answers. He suggested conoeptual approval. Mr. O~Byrne stated that this financing is a requirement of the lender in order to make the project a reality. He further stated that neither project can stand alone, both projects have been planned to support each other, because the project was phased for economic purposes. Boardmember Alongi commented that all projects must be looked at as an investment. He further commented that he personally needs the extra time to study this investment. Boardmember Washburn stated that he felt that the pro~ect is viable and has the commitments and he would not like to see us loose the ability to have that theater. He further discussed the ability for the project to be defined financially. Chairwoman Cherveny stated that she would like to see the financial package reworked and that the existing loan be brought current to facilitate future lending. She further stated that this project was not identified in the current Redevelopment Agency Budc}et. Boardmember pominguez commented that the Agency is addressing a priority for the community at this time and supported acting on this project to address those needs. of the community. He suggested that due to the time schedule Mr. O'Byrne is on the project be approved in concept and brought back to Council for further approval. Boardmember Alongi stated that there are a lot of priorities to be considered and he felt that he needed the opportunity to review all the project more completely and see where the funding is and what is available. Boardmember Winkler questioned the last paraqraph of the Petition for Financial Assistance and stated that it does not define Tax Increment or sales tax. Mr. Winkler questioned Legal Counsel Harper regarding the tax increment for debt repayment for Phase I. Legal Counsel Harper explained that the tax increment from K-Mart is pledged to debt repayment. Boardmember Winkler further questioned the current budget and if this project can be included in it. He also questioned if this analysis can even play a part in this project. Lega1 Counsel Harper explained that it can be used only to contemplate funds prior to receipt for payment. Mr. Harper further explained that if you look at the annual tax increment/sales tax and multiply it by ten it is roughly the amount of overall bonds that the debt service will support. He further explained that $25,000 in tax increment is going to be more or less $250,000 in potential debt. PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 10, 1992 Boardmember Winkler asked what kind of effect this would have on the tax increment of the properties around it and does this increase the value of properties. Mr. Boone stated that this could increase the value of the surrounding properties and stir other development. Legal Counsel Harper explained that if the Board accepts the premise that this is a break even project over the twenty years, the question then becomes how to you fund the front end. Boardmember Winkler inquired if Mr. O'Byrne anticipated any additional funding beside the up front money requested. Mr. O'Byrne explained that he does not because he has a lender for financing, but the assistance will be for off-sites. He further explained the cost of these improvements and the impact on the future development that will occur. Legal Counsel Harper explained that if the Board felt comfortable with a break even project and Mr. O'Byrne felt comfortable without the up front money from the 1992/1993 budget it could be approved on that basis, however, if the Board chose to do that, it could be structured so that it would potentially accomplish those things. However, if it never penciled out and it couldn~t be done, then the approval tonight doesn't mean much. He further stated that it sounds as if the potential for financing is a little different than Mr. Wood thought in his initial Staff Report. Mr. Harper stated that perhaps with the developer's cooperation there is a way of funding it which would not directly impact the 1992/93 budget. If this project is conditioned on having no impact on the 1992/93 budget then Counsel can sit down with Mr. O'Byrne and try and structure it that way. If it can't be then there is no deal anyway, if it can be done, then it sounds like it solves both the Board's and Mr.- O'Byrne~s problems. MOVED BY WASHBURN, SECONDED BY WINKLER AND CARRIED BY A VOTE OF 3 TO 2 WITH ALONGI AND CHERVENY CASTING THE DISSENTING VOTE TO AMEND THE SUBSIDIARY MOTION TO SEND THIS ITEM BACK THROUGH THE FINANCE DEPARTMENT FOR A RESTRUCTURE OF THE TAX INCREMENT PACKAGE TO PLEDGE TO THE SITE FOR THE FINANCING OF THE PROJECT, TO BE RETURNED TO THE AGENCY AFTER THE PACKAGE IS REVIEWED BY STAFF AND TWO MEMBERS -0F THE REDEVELOPMENT AGENCY. Chairwoman Cherveny explained that her preference would be to have Administrative Services Director Boone put something together and then bring it back to the Board. Boardmember Winkler stated that he will vote for this in concept for Mr. Boone to come back to the two of us and hash it out and then bring it to the Board for a decision. Boardmember Alonqi asked where the increment was going to come from and with Chairwoman Cherveny and Boardmember Winkler sitting in on the committee, how would they make the program more understandable for the rest of the Board. Legal Counsel Harper stated that from staff's point of view, if the direction is that the project as presented is O.K. in terms of the project itself and you are directing staff to sit down with the developer and try and structure it in a way which one will have no impact or minimal PAGE FIVE - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 10, 1992 8. impact on the 1992/93 RDA Budget and will be at least a break even project, then staff can proceed, and that's the direction that needed from the Agency and staff can come back with an indication of whether it works or it doesn~t. Boardmember Alongi stated that the Agency Members need to get together and hammer out some of the points on this project, as each member has different interests. Legal Counsel Harper explained that staff will do its best to bring the numbers to the sub-committee following the 1:30 p.m. meeting on November 17th on financing. Mr. O'Byrne requested clarification of the decision of Council in regard to financing. Legal Counsel Harper explained that the difficulty which has been discussed is that, not withstanding Mr. O'Byrne's recollections regarding Phase I and Phase II ultimately being all of one thing, there is the RDA budget including debt service and City budget including sales tax generated by K-Mart has spent money. In'order to count that toward Phase II which the City can do, cuts would have to be made in both of those budqets to accomplish it. Chairwoman Cherveny stated that perhaps it would be wise for both of the Boardmembers to make it all of one phase. She further stated that she thought it was two separate projects, but might be l~oked at as one. Boardmember Alongi asked when this would be coming back to the Agency. Boardmember Winkler stated that it would be at the next meeting. Boardmember Washburn stated that his interpretation would be that the applicant would work with staff and look at all avenues. - Franklin/Heald/Ellis. (F:87:1) Executive Director Molendyk explained this item and detailed the estimated costs. He clarified that this assistance is intended to assist the applicant in obtaining construction financing. MOVED BY ALONGI, SECONDED BY WASHBURN TO APPROVE THE PARTICIPATION AS REQUESTED, SUBJECT TO LAGUNA NUEVA OBTAINING CONSTRUCTION FINANCING, WITH A DEVELOPMENT AGREEMENT TO BE BROUGHT BACK FOR APPROVAL UPON FINALIZATION OF CONSTRUCTION FINANCING. Boardmember Washburn commented that the applicant and land owner have been working on this project for some time and have assisted in nuisance abatement process. He suggested that when the CC &'R's are prepared there be a contemplation of a clause to control the future sale and rental potential. The applicant indicated that this request could be accommodated. ~ Boardmember Alongi concurred with the comments of Boardmember Washburn and suggested that a commitmen~ of PAGE SIX - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 10, 1992 ' a set number of years prior to sales or rental should be , adequate. He requested a rendering of the project to show , the conversion from 18 units to 14 units. Sam Jiron, , Omega Mortgage West, showed a rendering of the project and a plot plan indicating the reduced unit count and the , proposed new confiquration. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. ', 9. Cultural & Performina Arts Facility - Methodist Church. ', (F:134.10) , Executive Director Molendyk detailed this item and that additional work is needed to present a complete report. He suggested that this item be continued to mid-December i for consideration. MOVED BY DOMINGUEZ, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO DEFER ACTION ON THE CULTURAL AND PERFORMING ARTS FACILITY ALSO KNOWN AS THE METHODIST CHURCH UNTIL THE FIRST REGULAR REDEVELOPMENT AGENCY MEETING OF DECEMBER, 1992. Boardmember Washburn suggested that weddings be added to the list of possible uses. PUBLIC COMMENTS - NON-AGENDIZED ITEMS None. EXECUTIVE DIRECTOR'S REPORT None. BOARDMEMBER COMMENTS None. CLOSED SESSION THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL AT 10:45 P.M. TO DISCUSS MATTERS OF PENDING LITIGATION WITH O.M.G., ADAMS ADVERTISING AND KUNZ; AND PROPERTY ACQUISITION ON COLLIER AVENUE. (Boardmember Winkler left the Closed Session during discussion of Property acquisition on Collier Avenue). THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 11:20 P.M. NO ACTION TAKEN. ADJOZIRNMENT MOVED BY DOMINGUEZ, SECONDED BY WINKLER AND C ED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPME AG CY MEETING AT 11:21 P.M. ....--_. _ ' TEST: ~ VICKI KAS D~ OF THE BOARD REDEVELOPMENT AGENCY i MINUTES ' ~ ' REGULAR REDEVELOPMENT AGENCY MEETING ' CITY OF LAKE ELSINORE 31315 CHANEY STREET LAKE ELSINORE, CALIFORNIA , TUESDAY, NOVEMBER 24, 1992 ' **~************************************************************ ' CALL TO ORDER ' The Regular Redevelopment Agency Meeting was called to order by I Chairwoman Cherveny at 9:31 p.m. ROLL CALL ', PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Rogers, Legal Counsel Harper, Administrative Services Director Boone, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen, Special Projects Coordinator Basham, Special Projects Coordinator Wood, City Treasurer Pape and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS Requests were received to comment on items 6 and 8 and deferred to the discussions of those items. ; CONSENT CALENDAR I MOVED BY ALONGI, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE ', TO APPROVS THE CONSENT CALENDP.R AS PRESENTED. I 1. The following Minutes were approved: ' a. Regular Redevelopment Agency Meeting - November 24, 1992. ~F:.13A.3) 2. Ratified Warrant List for November 16, 1992. (F:~2.3) PUBLIC HEARING 3. Public Hearinq and Adoption of Resolution No. RDA 92-9, certifyinq the Environmental Document for the Lake Elsinore Aeration System. (F:92.2) ' Special Projects Coordinator Basham explained this item and the necessary steps toward implementation. He further explained that the purpose of this hearing is to obtain input prior to , final certification. ' The Clerk of the Board reported no written comments or protests. ' Chairwoman Cherveny opened the public hearing at 9:34 p.m., !i asking those persons interested in this item to speak. Hearing I ~ _ _ _ _ _ _ _ _ _ __ i I PAGE TWO - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 24, 1992 no one, the public hearing was closed at 9:35 p.m• MOVED BY WASHBURN, SECONDED BY ALONGI TO ADOPT RESOLUTION NO. RDA 92-9 CERTIFYING THE NEGATIVE DECLARATION. Boardmember Washburn advised that this would now go to LEMA for their approval and participation. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. ' BUSINESS ITEMS City Manager Molendyk recommended that item number 5 of this aqenda ' be continued to December 1, 1992, at 5:00 p.m. He further ' recommended that item numbers 6 and 7 be continued to the next regular meeting on December 8, 1992. 5. Lake Elsinore Stadium, Phase II. (F:134.10) ' MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS VOTE ~ TO CONTINUE THIS ITEM TO DECEMBER 1, 1992, AT 5:00 P.M. ~ 6. Eastlake Pro-ject Memorandum of Understanding. (F:134.10) I MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS VOTE TO CONTINUE THIS ITEM TO THE NEXT REGULAR REDEVELOPMENT AGENCY I MEETING ON DECEMBER 8, 1992. ' 7. Lehr Option. (F:134.7) ' MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS VOTE ' TO CONTINUE THIS ITEM TO THE NEXT REGULAR REDEVELOPMENT AGENCY ' MEETING ON DECEMBER 8, 1992. ' 4. Camelot Pro erties Re uest - Continued from November 10 ' 1992. F:134.7 Executive Director Molendyk explained that this item was continued from November 10, 1992, to allow for further discussion. He gave an overview of the status of the project and stated that in order to make the project work in accordance ; with the desires of the Developer and Agency the developer is asking for a grant of $250,000 toward on-site improvements and up to $600,000 for off site improvements. Also, because of the rental structure of the theater, it is requested that consideration be given for tax increment and sales tax from Phase II over a period of 20 years in the amount of approximately $82,000. He further stated that Mr. O'Byrne is present to answer any questions. ' MOVED BY ALONGI, SECONDED BY CHERVENY TO DENY THE GRANT, FINANCING ' DUE TO CONSTRAINTS IN BUDGETING AT THIS TIME. Boardmember Winkler gave a brief re-cap of the meetings he had in regard to a theater being built on the corner of Malaga and Mission Trail by Camelot Properties and the benefit that he felt that it would give to the community. He stated that this is something that is desired by the community and he felt that it was time, the project was firm and would bring an economical advantage to this area of the community. Mr. Winkler further stated that if the City could have a site specific agreement and the ability not to strain the budget for the next two years that the project would work. ~ ' Mr. 0'Byrne, President of Camelot Properties, assured the Board that he could work out the details as long as he could give ~ assurance to his lender. PAGE THREE - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 24, 1992 Boardmember Winkler then addressed the off-site improvements and questioned the amount of funds necessary to accomplish the off-sites.~ Executive Director Molendyk clarified the cost based upon Mr. O'Byrne's presentation at the last meeting. He further discussed the potential need for a traffic light and improvements to the intersection of Malaga and Mission Trail and the fact that half of the street is in the County. ' Boardmember Winkler further addressed the advantage of the , potential baseball stadium and theater being in the same vicinity. Boardmember Winkler then made a subsidiary motion as follows: MOVED BY WINKLER, SECONDED BY DOMINGUEZ TO APPROVE THE CONCEPT TO GUARANTEE 5ITE SPECIFIC FUNDING FROM PHASE II, TO GUARANTEE $82,000 ' PER YEAR WITH THE GRANT NOT PAYABLE THIS OR NEXT BUDGET YEAR AND ' THE AGENCY PROVIDE MINIMUM IMPROVEMENTS ON MALAGA. Mr. O'Byrne assured the Board that he could work within the parameters of the motion. Executive Director Molendyk asked for clarification in regard to the amount of money to be spent on off-sites. Boardmember Winkler stated that it would be for the minimum amount. Public Services Director Tecca explained that he would need to know the kind of impacts that would be incurred by seeing a site plan and traffic impact analysis. He would also at that time be able to see if signalization is required for the project. Mr. Tecca further explained that if there was no access on Malaga then a traffic signal on Malaga/Mission Trail intersection would not be necessary at this time. Boardmember Washburn concurred with Boardmember Winkler in his , opinion that the community wants a theater and that this is a priority item. I Boardmember pominguez explained that he was in favor of the ' project. ' Boardmember Alongi stated that he felt that there was a potential theater presented by Rancon and he did not feel that the Malaga/Mission Trail site was to the City's ' advantage. He further stated his disagreement with a break- even project and stated that the Rancon site would be just as economically wise. Mr. Alongi further explained that he felt that the assistance requested by Mr. O'Byrne was too costly and that the Rancon site would be less expensive for the City , and bring in more sale tax. ' Chairwoman Cherveny explained that she favored the Rancon site ' because they will be operating with a CFD and will cost the . City less in the long run. Boardmember Alongi explained that Community Facilities Districts are not Redevelopment Agency funds and that this project would better pay for itself and further stated his opposition to the project proposed by Camelot Properties. Chairwoman Cherveny explained that she felt that this project was not as well located as the Rancon Project and that the Malaga/Mission Trail site was too congested. She further , explained that she felt that the loss of tax increment and ' sales tax for that area were too great and that she favored I the Central/Collier site for the lack of congestion and ~ _ __ i _ _ __. ~ i R PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 24, 1992 Accessibility. She further stressed her concern over the ' financial difficulties that could be incurred in regard to ~'` this propo~ed project. I Boardmember Washburn explained his concept of the Agency's ' role in the economic development of the community. Boardmember Winkler further clarified the tax increment that ' would be qiven to Rancon and stated that in the long run it would be more expensive than the Camelot Properties proposal. Boardmember Alongi then made a subsidiary motion as follows: MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS VOTE I TO VOTE ON THE QUESTION CALLED FOR IN REGARD TO THE ORIGINAL ' SUBSIDIARY MOTION. Chairwoman Cherveny asked for clarification of the motion made by Mr. Winkler. ' Boardmember Winkler amended his motion with the concurrence of ~I Boardmember pominguez to add a period of 20 years to the , guarantee of the $82,000. ! Chairwoman Cherveny called for the question as follows: MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY A 3-2 VOTE WITH ALONGI AND CHERVENY CASTING THE DIS5ENTING VOTES TO APPROVE THE CONCEPT TO GUARANTEE SITE SPECIFIC FUNDING FROM PHASE II AT A RATE OF $82,000 PER YEAR FOR TWENTY (20) YEARS WITH THE GRANT NOT PAYABLE THIS OR NEXT BUDGET YEAR AND PROVIDE MINIMUM IMPROVEMENTS ON MALAGA. ' S. Amber Ridqe Sewer Stndy. ~ Executive Director Molendyk explained that this item had been i before the Board and was being brought back for consideration ' by the Board. He advised that Mr. Basham was available to j answer any questions, and Mr.Molendyk explained that the staff i has presented some financial alternatives for Board Members consideration. MOVED BY ALONGI, SECONDED BY CHERVENY TO ACCEPT PROPOSAL "C" WITH ' COST PER HOME NOT TO EXCEED $4,000. PROPOSAL "C" READS AS FOLLOWS: TO LOAN OR GRANT FUNDS T,O REPLACE THE EXISTING SEPTIC SYSTEMS IN AN ESTIMATED 17 HOMES OR 8.8~ OF THE 194 HOMES. THIS NUMBER WAS ' DERIVED FROM THE RESPONSES OF 110 HOMES CONTACTED IN THE RBF SURVEY ' WHO EXPRESSED PROBLEMS WITH THEIR EXISTING SEPTIC SYSTEMS AND RATED ' THEM AS "POOR" SYSTEMS. A COMMITMENT OF $119,510 WILL REPLACE 17 SEPTIC SYSTEMS AT AN ESTIMATED COST OF $7030 EACH. ALTHOUGH 15 HOMEOWNERS INDICATED THAT THEY REPLACED THEIR FAILING 5EPTIC SYSTEMS AND HAVE NOT EXPERIENCED ANY NEW PROBLEMS, THERE CANNOT BE A GUARANTEE THAT THIS METHOD WILL BE SUCCESSFUL FOR ALL HOMES. Boardmember Winkler expressed concern with proposal "C" due to the fact that there is no way of knowing how many homes will be affected in the future and the problems can escalate. He further stated that he does not see this as a solution. Mr. Winkler explained that this problem does have a direct impact on the quality of the neighborhood and crime problems and needs to be addressed. He further stated that he felt it was a necessity to construct the sewer mains and laterals in order to maintain the quality and standard of living which should be in that tract and felt that 3"A" was the solution. Mr. Winkler explained that he would vote no on "C" because of the need for sewer and once the system is avai.lable the City should enforce the health codes to make residents go on sewer. PAGE FIVE - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 24, 1992 A SUBSIDIARY MOTION MOVED BY WINKLER, SECONDED BY WASHBURN TO APPROVE PROPOSA~ 3"A" WHICH READS: GUARANTEE REPAYMENT FOR THE CONSTRUCTION OF THE SEWER MAINS AND LATERALS WITHIN THE PUBLIC RIGHT OF WAY. TAE AGENCY WILL COMMIT APPROXIMATELY $47,051 ANNUALLY FOR 20 YEARS TO RETIRE THE EVMWD'S $700,000, 3~ LOW INTEREST LOAN. THE INDIVIDUAL HOMEOWNERS WILL BE RESPONSIBLE FOR CONNECTION TO THE SEWER, INCLUDING THE $3500 EVMWD SEWER CONNECTION FEE (WHICH THE DISTRICT MAY ACCEPT AS A LIEN ON THE PROPERTY) AND THE ESTIMATED COSTS OF $2600 TO CONSTRUCT THE LATERAL BETWEEN THE STREET RIGHT OF WAY AND THE HOUSE (INCLUDING THE BACKFILLING OF THE EXISTING SEPTIC TANK/PIT). Boardmember Alongi responded to Boardmember winkler's comments by explaining that the residents have the responsibility to install sewer and laterals, and not the City. He further stated that there is no guarantee that any of the residents will hook up. Mr. Alongi explained that the septic systems fail because they are not maintained correctl.y or because they are not installed correctly. In other areas, because of the water table, the residents are installinq their own sewer lines due to problems and others going on stand by. He further asked who would be responsible for destroying the septic tanks and the hook-up from the lateral to the home. Mr. Alongi stated that installing the sewer lines is only addressing half of the problems. After the City spends the money there is no guarantee that the lines will be used and the City has then spent the money for nothing. Mr. Alongi further explained that he has gone to three or four Water District meetings and not one person from Amber Ridge showed up, yet they present themselves here for our attention. He questioned why they were not at the Water District. Chairwoman Cherveny explained that she had some requests to address the Board. Gary Kelly, 224 Ohio Street, explained that the residents of Amber Ridge have approached the Water District and have submitted several documents to the District. He further explained that the density and drought is a factor in the problem due to the fact that the homes are built on decomposed granite. He further addressed the gray water from the White Oak Tract which now affects all the tract from their site to the Lake. Mr. Kelly stated that the Health and Safety factors can only be mitigated through the $47,000 a year. Boardmember Alongi asked Mr. Kelly why the Water District doesn't put the lines in and the City pay for the hook-ups. Mr. Kelly explained that the Water District has only agreed to apply for the 3~ loan. Mr. Alongi stated that he felt that the Water District should assume their responsibility in regard to the sewer. Boardmember pominguez explained that this matter addresses the public right-of-way and that unless the City could get the 3~ loan there should not be a commitment. He further questioned the septic systems. There was general discussion in regard to septic systems and their operation verses sewer lines and their costs. Boardmember pominguez questioned the spending of money on private property. Boardmember Alongi explained that this is a trust deed loan through the Redevelopment Agency to correct the problems. Mr. Dominguez further stated that he would like to know exactly how many homeownezs will need the assistance. ~ _ _ __ _ _ _ _ _ _ ___ I PAGE SIX - REDEVELOPMENT AGENCY MINUTES.- NOVEMBER 24, 1992 ~ Boardmember Winkler stated it would be determined through questionnaires. ~ ' Chairwoman Cherveny questioned Mr. Kelly in regard to the amount of research'the Water District Committee did prior to making their decision in regard to Amber Ridge problems. Mr. Kelly stated that their decision was based on the survey done by the City that his committee felt that the survey done by the City was adequate. He further explained that he kaew how , many residents would hook up to the system. ' Chairwoman Cherveny explained that one of her concerns is that ~ the City would be responsible for the 3~ loan and that there ' is no guarantee that when their court cases are complete that ', the City will be reimbursed. Boardmember Washburn explained that his concern that the septic systems would work for a while, but because of the high content of clay in the soils in that area it would not be the permanent answer. He further stated that there have been a ', number of health problems in that area for a number of years. ', Mr. Washburn further explained that he felt that it was a I moral obligation to help solve the problems and further hopes that the Water District step forward to assist. He further ~ stated that he would support 3"A" and not 3"C". ' Boardmember Alongi expressed his desire to see •the Water District participate in a more active manner. He further addressed the needs and manner in which the septic system , works. Chairwoman Cherveny objected to sending $47,051 to EVMWD to secure a 3~ loan which we may or may not get at this point and she feels that the City should go direct to the resident to solve the problem. She further stated that the City is not in the sewer business and that it is the responsibility of EVMWD to address the situation. Mrs. Cherveny further stated that the reason the people are appealing to the City is because she feel that the Water District was unwilling to listen or assist those residents. THE MOTION MADE BY ALONGI AND SECONDED BY CHERVENY TO APPROVE 3"C" WAS DENIED BY A 2-3 VOTE WITH DOMINGUEZ, WASHBURN, AND WINKLER CASTING THE DISSENTING VOTES. Chairwoman Cherveny explained that over a 20 year period that the amount that would be expended would be $941,028 which she felt was the obligation of the Water District. She further stated that the residents of Amber Ridge have advised her that they don't feel that the study is accurate and she is in doubt as to how the Board can make a decision without all the facts. ' Boardmember Alongi addressed 3"D" and stated that in that ' recommendation staff asked that no action be taken and to bring the matter back to the board following formal action by I EVMWD based upon the recommendation of their two man committee. He further stated that Mr. Kelly and Mr. Jeffries from EVMWD need to address this with their finding to their board. Boardmember pominguez stated that he felt that this should be addressed as a health hazard. He further explained that he felt that the reimbursement to the City should come from the compensations of the law suits to repay the 3~ loan. Mr. Dominguez further stated tha~ he would like the exact number of people who would hook-up. PAGE SEVEN - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 24, 1992 MOVED BY CHERVENY, SECONDED BY ALONGI AS A SUBSIDIARY MOTION TO APPROVE PROPOSA~ "D" WHICH READS: DIRECT STAFF TO TAKE NO ACTION AT THIS TIME ON FINANCIAL ALTERNATIVES AND BRING TAIS MATTER BACK TO THE BOARD FOLLOWING FORMAL ACTION BY EVMWD BASED UPON THE RECOMMENDATION OF THEIR TWO MAN COMMITTEE. ' Boardmember Winkler addressed 3"A" and explained that he did not feel that we would find out how many would hook-up immediately, but at the time of re-sale the home would have to be put on sewer. He further stated that he had hoped that the law suit that the residents filed would resolve the problems, but it did not, and there is no way we can use the proceeds ' from the law suit to make reimbursement. He felt that this is ', a good resolution and the entire amount of funds does not need ', to be produced at one time, but rather be spread out over a period of time. Chairwoman Cherveny stated that a concern she has is that the Amber Ridge residents didn't stress their concerns at the ' EVMWD meetinqs as they do with the City and the Agency. Tony Gilenson, 151 Torn Ranch Road, explained that for the first six years that Amber Ridge residents did go back and forth with the Water District and received no cooperation and had no other recourse but to appeal to the City for assistance. Boardmember Alongi expressed his concerns regarding the debts incurred by the different Redevelopment Agency loans and he ' felt that there should be an assessment district formed and ' low interest loans given to those people who need the assistance for septic systems. Boardmember Washburn explained that Amber Ridge was the last major subdivision that was allowed to go on septic. All the rest were required to be on sewer. Boardmember pominguez asked that Chairwoman Cherveny amend her subsidiary motion to include the potential of a sewer assessment district and that the compensation from the law suit be included in whatever the City decides and would like ' a number of how many homes would hook-up. ', Chairwoman Cherveny amended her motion with Boardmember Alongi in concurrence to read as follows: ' MOVED BY CHERVENY, SECONDED BY ALONGI WITH A VOTE OF 2-2 WITH ' DOMINGUEZ ABSTAINING AND WASHBURN AND WINKLER CASTING THE DISSENTING VOTE TO APPROVE ITEM "D" WHICH READS: DIRECT STAFF TO TAKE NO ACTION AT THIS TIME ON FINANCIAL ALTERNATIVES AND TO BRING THIS MATTER BACK TO THE BOARD FOLLOWING FORMAL ACTION BY EVMWD BASED UPON THE RECOMMENDATION OF THEIR TWO MAN COMMITTEE WITH THE POTENTIAL OF FORMING A SEWER ASSESSMENT DISTRICT WITH POSSIBLE COMPENSATZON FROM LITIGATION AND WITH THE POTENTIAL NUMBER OF HOOK- UPS. Boardmember Alongi questioned.Legal Counsel Harper in regard to a 2-2 vote. Mr. Harper stated that it nullifies the item as there is no majority. ~ PAGE EIGHT - REDEVELOPMENT AGENCY MINUTES - NOVEMBER 24, 1992 ~ MOVED BY WINKL$R, SECONDED BY WASHBURN WITH A VOTE OF 2-2 WITH i DOMINGUEZ ABSTAINING AND ALONGI AND CHERVENY CASTING THE DISSENTING , VOTES TO APPROVE PROPOSAL 3"A" WHICH READS: GUARANTEE REPAYMENT ' FOR THE CONSTRUCTION OE THE SEWER MAINS AND LATERALS WITHIN THE ', PUBLIC RIGHT OF WAY. THE RDA WILL COMMIT APPROXIMATELY $47,051 ANNUALLY FOR 20 YEARS TO RETIRE THE EVMWD'S $700,000, 3$ LOW ' INTEREST LOAN. THE INDIVIDUAL HOMEOWNERS WILL BE RESPONSIBLE FOR CONNECTION TO THE SEWER, INCLUDING THE $3500 EVMWD SEWER CONNECTION FEE (WHICH THE DISTRICT MAY ACCEPT AS A LIEN ON THE PROPERTY) AND THE ESTIMATED COSTS OF $2600 TO CONSTRUCT THE LATERAL BETWEEN THE ' STREET RIGHT OF WAY AND THE HOUSE (INCLUDING THE BACKFILLING OF THE , EXISTING SEPTIC TANK/PIT). PUBLIC COMMENTS - NON-AGENDIZED ITEMS Peter Dawson, 18010 Grand Avenue, advised that he had reguested an , opportunity to speak on item 6 of this agenda and reserved his , comments for the consideration at the December 8th meeting. He , commented that he was not aware that . this item would be on the ' agenda for this evening and had no idea of its content. Ae sugqested that more complete descriptions be included on the City , Council Agenda cover sheet when issues such as this that impact the entire Valley are to be considered. I EXECUTIVE DIRECTOR'S REPORT Executive Director Molendyk commented on the recent sign raising on the Rancon Project site at Collier and Central. , BOARDMEMBER COMMENTS None. ! CLOSED SESSION I ', THE REDEVELOPMENT AGENCY MEETING WAS ADJOURNED TO A JOINT CLOSED I SESSION WITH THE CITY COUNCIL TO DISCUSS PENDING LITIGATION WITH ' O.M.G., ADAMS ADVERTISING AND KUNZ. , THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 12:05 A.M. NO ACTION TAKEN. ADJOURNMENT ' MOVED BY DOMINGUEZ, SECONDED BY WINKLER AND CARRIED BY UNANIMOUS I VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT 12:06 ~I A.M. TO TUESDAY, DECEMBER 1, 1992, AT 5:00 P. . AT CITY ALL. i R CHERVENY, C AIRWOMAN REDEVELOPMENT AGENCY I A TEST: A 9 VIC`K"I-KASAD, CLS K OF THE BOARD REDEVELOPMENT AGE CY MINUTES REGULAR REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 31315 CHANEY STREET LAKE ELSINORE, CALIFORNIA TUESDAY, DECEMBER 8, 1992 **************************,t******,t***~******~******~***,t*********** CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 9:50 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN, WINKLER, CAERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Assistant Executive Director Roger, Legal Counsel Harper, Administrative Services Director Boone, Community Development Manager Shear, Community Services Director Watenpaugh, Public Services Director Tecca, City Planner Christen, Special Projects Coordinator Basham, City Treasurer Pape and Clerk of the Board Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS Requests to address items 3, 6 and 8 were deferred to consideration of those items. CONSENT CALENDAR MOVED BY ALONGI, SECONDED BY WASHBURN AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. Regular Redevelopment Agency Meeting - November 24, 1992. (F:134.3) 2. Ratified Warrant List for November 30, 1992. (F:12.3) BUSINESS ITEMS 3. 1. Reconsideration Of Camelot Proberties (F:134.7) Chairwoman Cherveny explained that this is a reconsideration of financial assistance for $850,000, plus $82,000 yearly for twenty (20) years, and is being considered to assist in the financing of a stadium/amphitheater project. Boardmember Winkler asked Legal Counsel Harper if it was necessary to address each item individually. Mr. Harper explained that it was necessary as certain action must be taken on each item. ~ ~' , ~ MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY A UNANIMOUS VOTE TO APPROVE THE RECONSIDERATSON OF CAMELOT PROPERTIES. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - DECEMBER 8~ 1992 ', Boardmember Washburn requested the finding for denial of this project and explained that the financial standing of the , project and a review of priorities has indicated that reconsideration of this financial assistance may be appropriate. Boardmember Washburn stated that he felt that this was a priority when the Board voted on it last time and should be considered. Chairwoman Cherveny*p958Xa~1 Counsel Aarper to address the issue. Legal Counsel Harper suggested that the applicantbe given the opportunity to speak. He explained that the Board was served with a lawsuit filed on behalf of Wells Fargo Bank in which the Redevelopment Agency is a defendant, as well as Camelot Properties. The lawsuit involves foreclosinq on the underlying ground lease which is the subject of the K-Mart property and the proposed project. Mr. Harper questioned the ', ability of the Board to legitimately enter into an agreement ', with an owner who potentially may not have clear title to the property. Boardmember Winkler explained that the litigation has caused him to have some questions and concerns in regard to the project. Boardmember Washburn clarified that this does not preclude the applicant from returning to the Board once the issue is settled. Legal Counsel Harper explained that once Camelot Properties has resolved the problem and has clear title to the property, then they or another entity can come forward to the Agency with a new proposal. Boardmember Washburn asked if the item could be tabled until the problem is resolved. Mr. Harper stated that at the November meeting the project was approved in concept and he felt that circumstances can change by the time the developer comes forward again and can alter what a future project may need. He further explained that the Agency will want to review the credit worthiness of the developer pending this litigation and that might have an effect upon future decisions since the Agency would have to be assured that Camelot Properties would be able to meet the payments for financial assistance from the Agency. Leonard O'Byrne, President of Camelot Properties explained that the foreclosure is not on the K-Mart property, it is on the 4 acres on the Malaga side and the problem is caused by a Subdivision Map Act requirement which had not been resolved by Mr. DePasquale and therefore the Assessors Parcels are not legal. He further explained that when he entered into a Development Agreement with K-Mart, part of that Agreement was to re-do the Parcel Map and they let time run out and the Final Parcel Map was never recorded to comply with the Map Act. Mr. O'Byrne explained that he found this out when he pursued financing for the new project. He further explained that under the Community Redevelopment Act he has proceeded correctly and further explained that he is current with the existing loan as was agreed with Chairwoman Cherveny. Mr. O'Byrne explained that he has compared the Rancon development with his development and his company is entitled to equal protection under the law. He indicated that the litigation PAGE TAREE - REDEVELOPMENT AGENCY MINUTE3 - DECEMBER 8~ 1992 with Wells Fargo is the only way to resolve the conveyance of the property and get the map filed. Legal Counsel Harper asked Mr. O~Byrne how long he had been aware of the map act problem. Mr. O'Byrne explained that he has been working on it since early in the year. Mr. Harper asked why a revised map. Mr. O'Byrne explained that under the development agreement with K-Mart they must make them do it in order to proceed with financing. Mr. Harper asked why the City was not approached with the problem and why a revised parcel map was not recorded or a certificate of compliance was not obtained as these could have been addressed under the map act. Boardmember pominguez asked for clarification from Legal Counsel in regard to not acting on this project due to the circumstances. Legal Counsel Harper explained that the Board puts the Agency in a form of jeopardy by executing a development agreement agreeing to.provide assistance to a developer who is in the process of judiciously being foreclosed upon. Chairwoman Cherveny asked Administrative Services Director Boone if the December payment had been made by Camelot Properties. Mr. Boone advised that billings would be sent. MOVED BY ALONGI, SECONDED BY WINKLER AND CARRIED BY A 4-1 WITH WASHBURN CASTING THE DISSENTING VOTE TO DENY REQUEST FOR FINANCIAL ASSISTANCE PACKAGE FOR $850,000, PLUS $82,000 YEARLY FOR TWENTY (20) YEARS. 2. Reconsideration Of Low Cost Housina/Heald & Ellis. (F:87.1) MOVED BY WINKLER, SECONDED BY CHERVENY AND CARRIED BY UNANIMOUS VOTE TO APPROVE RECONSIDERATION OF TIiE LOW COST HOUSING - HEALD AND ELLIS. MOVED BY WINKLER, SECONDED BY DOMINGUEZ TO DENY FINANCIAL ASSISTANCE OF $265,000 TO LAGUNA NUEVA DURING 1992-93 AND CONSIDER REIMBURSEMENT OF THE COST OF DEMOLITION BEING APPROXIMATELY $10,000. Boardmember Winkler questioned the $50,000 for demolition and asked for olarification. Executive Director Molendyk explained that staff felt that at the time the buildings were demolished there was an indication to proceed and there miqht be a consideration by the Board at least for the demolition costs. Mr. Winkler asked if the demolition had already been done with all the,proper notification. Legal Counsel Harper explained that the demolition had been done with the cooperation of the property owner. Mr. Winkler further asked if the applicant had the option of remodeling. Boardmember Alongi stated yes., Boardmember Alongi explained that he felt the City had an obligation to honor its commitment and to protect the integrity of the City's word. He expressed his resentment of the cuts in the budget, He further explained that the applicant could have rehabilitated the units, but demolished them at the advise of the City. Mr. Alongi cautioned the Board that they must stand by their vote whether it is right or wrong and indicated that he felt this action would be PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - DECEMBER 8~ 1992 ' unfair, unjust and immoral to withdraw the funds from this project after the City has committed. He made suggestions for a reallocation of funds from the outflow channel, Mission Trail project; the rehabilitation of the hotel and the ' rehabilitation of the Church as these funds are not needed ' right at this time. ~ , Boardmember Winkler explained that this project was addressed only one month ago and it was going to come back to the Board with the various concerns of the project. He further stated that he would consider the cost of demolition that was made on the recommendation of City staff to benefit the community. He questioned low income housing in an area where there is a high crime rate and if it is wise to promote more of this type of I housing. ', Tom Hundshamer, Lake Elsinore Valley Chamber of Commerce, , expressed his objection to restructuring the Agency budget to I fund a baseball field. He further stated that the City should uphold and honor their commitments to preserve the integrity of the City. ' Sam Jiron, Laguna Nueva representative, expressed his displeasure of the reconsideration of this project. Boardmember Alongi explained that he felt that this low income ', housing was necessary and he worked with Mr. Jiron to develop i affordable housing and to improve the area. He further i explained that he felt that a sports stadium should not be a j priority over homes. Mr. Alongi stated that Mr. Jiron trusted ' the word:of the Agency when his project was given a 5-0 vote ' and the Agency should stand behind their word suggesting that money can be found in the Agency Budget to cover this item. Boardmember Washburn clarified portions of this item and explained that he is not opposed to quality low income housing to improve the area, but since there is a need for a relocation of funds this item needed to be reconsidered. ~ Boardmember Alongi explained that low income housing is not necessarily future slums. He further explained that homes can ', be built for persons who cannot qualify for other tracts. Mr. ', Alongi stated that the Lake is the number one priority and the ', next should be affordable housing. Boardmember Winkler reviewed the low income housing and availability of the funds from the budget and the development agreement that would accompany this project would have to be ' closely reviewed before he would approve it and he further explained that he felt that there was more than enough low income housing within the City. Mr. Winkler stated that in each development agreement low income housing is provided for and he felt that it was adequate to address the needs of the community. , Boardmember Alongi discussed the project and explained the sequence of events that led to the presentation and decision ', of this project. He further expressed the problem with low I income housing and his opinion that there is more needed. ', THE FOREGOING MOTION CARRIED BY A VOTE OF 3 TO 2 WITH ALONGI & I WASHBURN CASTING THE DISSENTING VOTES. PAGE FIVE - REDEVELOPMENT AGENCY MINUTES - DECEMBER 8~ 1992 3. Revise Budaet/Redevelobment Aaency 1992-93. (F:30.1) Boardmember Winkler explained that in review of the present budget the Church was not included within the current budget and there is no need for an expenditure of the funds on that item at this time. He further explained that he felt that there was no need to take action on the proposed budget as presented. There was general discussion in reqard to the current and revised budget and the adjustments that are necessary. Executive Director Molendyk explained that there is a budget adjustment of $550,000 if the board desires and is outlined in the revised budget of October 13, 1992 in order to move forward on the stadium. Boardmember Washburn asked that the motion include verbiage for staff to review utilization of the church building for cultural and organizational activities until the building goes into the renovation phase. Chairwoman Cherveny asked that the motion include verbiage to retain funds for the Ambassador Hotel until January 1, 1993 only. Boardmember Alongi criticized the Board for their decision to change the budget after there were several study sessions. He further expressed his disfavor with the reallocation of funds for the stadium over the other pending projects. MOVED BY WINKLER, SECONDED BY WASHBURN AND CARRIED BY A 4-1 VOTE WITH ALONGI CASTING THE DISSENTING VOTE TO APPROVE THE REVISED REDEVELOPMENT AGENCY BUDGET OF DECEMBER 8, 1992; AND DIRECTED STAFF TO REVIEW UTILIZATION OF CHURCH BUILDING AND ALLOW FUNDS TO REMAIN IN THE BUDGET FOR THE AMBASSADOR HOTEL ONLY UNTIL JANUARY 1, 1993. 4. Stadium/Amphitheater Contract Services Phase II. (F:134.10) Executive Director Molendyk gave an overview of the project and explained that the proposed site is Malaga and Mission Trail. He further stated that the Redevelopment Agency owns the land and the cost would be for construction design. Dan Young, Younq Investment Group explained that due to time constraints the planned slide presentation will be presented at a later date and thanked the Board for the opportunity to do the feasibility study for this project and explained that the next step is to authorize a turn-key contract for design and engineering of the facility. Chairwoman Cherveny explained that time is of the essence in regard to this project and that several other cities have expressed interest in buildinq a stadium, but that the City of Lake Elsinore Redevelopment Agency has been aggressive and needs to continue to move forward with the project. Boardmember Alongi questioned the items that have been cut from the budget to provide for this item. Chairwoman Cherveny explained that $200,000 from the Methodist Church, $550,000 from the Housing Program and the Ambassador Hotel has a hold ' PAGE SIX - REDEVELOPMENT AGENCY MINUTES - DECEMBER 8~ 1992 ' on it good through January 1, 1993. Mr. Alongi asked if that includes the money for the Amber Ridge to redo their septic systems. Mrs. Cherveny explained that in January l, that money would be free to address, items not on the budget. Boardmember Alongi asked if the $750,000 was for the design of ~ the ball field. Chairwoman Cherveny explained that the money would be for the working drawings. ' Boardmember Alongi further questioned where the money would ', come from to build the project. Boardmember Winkler explained ' that there are a variety of avenues which can be addressed at a later time, such as private sources, bonding, monies which will be free in the next couple of years and several other avenues yet to be explored. , Boardmember Alongi then questioned if the rush to get the , design was to get a ball team. Boardmember Winkler explained that there is an opportunity, in the next few years, to create a new Lake Elsinore. He cited the Eastlake Project, Lake Management and the fact that Council and the Board have built up to try to make Lake Elsinore the recreational capital of Southern California and~with these projects it is right around the corner. Mr. Winkler explained that the opportunity is now , to acquire a Minor League Team which will enhance the economy , of the City and negotiations have been on-going to make this , possible. Boardmember Washburn stated his approval of this project and commented on the progress of the Lake and all the projects to improve the Lake. He stressed that if it became a choice of , choosing between the money going to the Stadium or the Lake the Lake will be the project which will take priority with him. He explained that he would encourage private investors. , I Boardmember Winkler concurred with Boardmember Washburn. Chairwoman Cherveny explained that there are 68 days of baseball in the stadium, but that is not all it brings. She further explained that the stadium can bring concerts, antique shows, car shows and other related events indicating that the stadium is not just for baseball. ', Boardmember pominguez stated that he felt that the Lake was a ', priority of the Board and agreed with Boardmember Washburn that private investors should be encouraged to do the financing. Boardmember Alongi expressed his doubt and disfavor of this project and questioned the ability of the City to further ' finance a stadium and its design over the other needed projects of the City. ', MOVED BY WINKLER, SECONDED BY CHERVENY AND CARRIED BY A VOTE OF 4 ', TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO APPROVE THE TURN ' KEY CONTRACT FOR THE DESIGN AND ENGINEERING FOR THE LAKE ELSINORE STADIUM, PHASE II, IN THE AMOUNT OF APPROXIMATELY $750,000 FOR A 10 MONTH PERIOD WITH THE YOUNG INVESTMENT GROUP. 4. Methodist Church. (F:134.10) Executive Director Molendyk explained that staff's current PAGE SEVEN - REDEVELOPMENT AGENCY MINUTES - DECEMBER 8~ 1992 understanding on this item is that Council would like to consider painting and minor upgrades and contacting ' organizations who could use the facility on a temporary basis. Mayor Washburn commented on the analysis provided for ' demolition, and indicated as a life long resident he felt this ' was a terrible consideration. He stressed that he would ' ' encourage minor repairs to allow for use of the building. MOVED BY WASHBURN, SECONDED BY CHERVENY AND CARRIED BY A VOTE OF 4 ' , TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO CONTINUE THE ' I RENOVATION OF THE METHODIST CHLJRCH TO THE NEXT BUDGET YEAR. ' i I', 5. Rancon Proiect. (F:22.3) ', MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOIIS VOTE TO CONTINUE THE CONSIDERATION OF THE REIMBURSEMENT AGREEMENT ' UNTIL QUESTIONS AAVE BEEN RESOLVED. ' 6. Eastlake Memorandums Of Understandina. (F:134.7) MOVED BY CHERVENY, SECONDED BY ALONGI TO CONTINUE THIS ITEM TO DECEMBER 22, 1992. Dan Young, representing Eastlake Community Builders, indicated that this continuation would allow time for more clarification of recent discussions concerning the Memorandum of Understanding. He advised that with regard to the Lehr Option, he would not press for a decision tonight, however, the Lehr Family is on hold an he would not want that to continue any longer than necessary. He requested that this item be considered early in the evening on December 22nd. Boardmember Alongi suggested that public comments be allowed from people who were still present. Paul Pribble, 32301 Corydon, commented on the M.O.U. and particularly section 10 pertaining to the Airport. He ' indicated that the City and the applicant are not exempt from ' the 404 Permit process, and environmental work should also be required. Kevin Jeffries, 17666 Grand Avenue, commented that the expectations are high for a full lake and it would be of ~ benefit to the City and residents to determine how the lake will be filled. He stressed the need to work with the County residents, as well as his belief that the 1240' lake level does not a11ow enough for evaporation. He also supported dredging of the lake. Peter Dawson, 18010 Grand Avenue, requested that the Agenda cover sheet relating to the Memorandum of Understanding thoroughly describe the item and indicate that it is of interest to the entire community. Robert Houts commented that he feels the lake has been stolen from he and the other County residents. He stressed their efforts of the last six months and commented on the pending M.O.U. He also stressed that the 1240' lake level is a significant issue to the Lakeland Village residents and the Lake Edge Specific Plan. He further stressed the need to reach an agreement. ~ PAGE EIGHT - REDEVELOPMENT AGENCY MINUTES - DECEMBER 8~ 1992 ' THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. 7. Lehr Option. (F:134.7) MOVED BY CHERVENY, SECONDED BY ALONGI TO CONTINUE THIS ITEM TO DECEMBER 22, 1992. Boardmember Washburn questioned the deadline for consideration of item #7. City Attorney Harper indicated that the original ' option had expired in March, 1992, and while time is an important factor, one more meeting will not cause any additional problems. ' TAE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. , 8. Amber Ridge Sewer Study. (F:134.10) MOVED BY CHERVENY~ SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO CONTINUE THIS ITEM TO DECEMBER 22, 1992. 9. LEMA Dues/Contribution - 1993. (F:92.3) ' MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS ' VOTE TO CONCUR WITH THE COUNCIL ACTION AND APPROVE THE ', REDEVELOPMENT AGENCY CONTRIBUTION OF $17,000. ' PUBLIC COMMENTS - NON-AGENDIZED ITEM3 I None. EXECUTIVE DIRECTOR'S REPORT None. ' BOARDMEMBER COMMENTS , None. CLOSED SESSION ' None. MOVED BY WASHBURN~ SECONDED BY CHERVENY AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR REDEVELOPMENT AGENCY MEETING AT ]1:50 P.M. .. / 1 CHERVENY OF THE BOARD REDEVELOPMENT AGENCY ~ MINUTES ADJOURNED REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 130 SOUTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, DECEMBER 1, 1992 ***,t***********,t*****~*****,t*,t*****************,t,t*****,k*******,t** CALL TO ORDER The Adjourned Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 5:01 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WINKLER, CHERVENY ABSENT: BOARDMEMBERS: WASHBURN BUSINESS ITEM a. Lake Elsinore Stadium. Phase II. Dan Young, Young Investment Group, clarified the phasing of this project and indicated that this would actually be $8.5 plus $750,000 for the design work. Executive Director Molendyk gave and overview of this project and explained that it had been continued from November 24th to allow for a Budget review before making a decision. He stressed that this is the time frame necessary if the Council desires to proceed and have a Stadium for April, 1994. Mr. Young further indicated that two factors should also be considered, being 1) that the entitlement to proceed is part of the Eastlake Project and 2) the project is predicated on the cost reductions presented. He further explained the phasing of the Eastlake Project and its relationship to the Stadium. He also explained that if this item is approved, they would begin immediately negotiating for a team. He detailed all of the time frames necessary for the April, 1994 completion date. He stressed that this opportunity may not exist for long and advised that Moreno Valley and Temecula are also making strides to obtain a minor league team. Boardmember Alongi commented that Lake Elsinore is different from Moreno Valley and Temecula in that they do not have lakes. He stressed the importance of the Lake and making it work for the Community. He suggested that this community would be more supportive of a Rodeo Facility, as would he. He further commented that because of economic constraints the City can not do everything it would like to. He suggested that this matter be postponed. Boardmember Winkler indicated that he has been looking into this for some time and much consideration has been given to making it work. He concurred that this City does have the Lake and much progress has been made on that as well. He stressed that the City is at this deciding point because they have been aggressive in the approach to this opportunity. He suggested that this is the time to proceed with this project and committed to taking a hard look at other cuts in the budget to make it work. PAGE TWO - REDEVELOPMENT AGENCY MINUTES - DECEMBER 1~ 1992 Boardmember pominguez concurred with Councilman Alongi's comments and stressed that the Lake needs to be the number one priority. He commented on the changes which have occurred to impact the budqet and that the priorities have really not chanqed. He also commented that theaters have been discussed for a long time and he would not want to see the priority for those shifted. He expressed concern with proceeding when the City really cannot afford the project. Chairwoman Cherveny advised that she was excited when the possibility of a minor League team came up. She indicated that she thinks the time is right and the community is prime for this project and now is the time to act to be guaranteed a team. She further indicated that she is still supportive of the project, but she is also concerned with making decisions that are fiscally sound for the Community. She also stressed the necessity to deal with the Lake, as it has been a priority of the community for a number of years. She expressed concern with financing the future of the City, and indicated that if the funding for Camelot Properties could be eliminated she would be more likely to consider proceeding. Boardmember pominquez questioned the new police facility . Chairwoman Cherveny indicated that it was not on the present agenda. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY A VOTE OF 3 TO 0 WITH WASHBURN ABSENT AND ALONGI ABSTAINING TO CONTINUE THIS ITEM TO DECEMBER 8, 1992, TO FIND ANSWERS TO FINANCING QUESTIONS. Chairwoman Cherveny stressed the importance of discussing real dollars in this process. ADJOURNMENT MOVED BY ALONGI, SECONDED BY CHERVENY AND CARRIED BY TO ADJOURN THE ADJOURNED REDEVELOPMENT AGEHEYrMEETI TERE CHERVENY, REDEVELOPMENT ~I~.°.I KASAD, CLERK OF THE BOARD REDEVEi^~r:+IENT AGENCY 5:29 P ~ MINUTES REGOLAR REDEVELOPMENT AGENCY MEETING CITY OF LARE ELSINORE 31315 CHANEY STREET LARE ELSINORE~ CALIFORNIA TUESDAY~ DECEMSER 22~ 1992 •r**********sr******~t****r*******t*********sa*tt*****t****s*r*** CALL TO ORDER The Regular Redevelopment Agency Meeting was called to order by Chairwoman Cherveny at 8:28 p.m. ROLL CALL PRESENT: BOARDMEMBERS: ALONGI, DOMINGUEZ, WINKLER, WASHBURN CHERVENY ABSENT: BOARDMEMBERS: NONE Also present were: Executive Director Molendyk, Legal Counsel Harper, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear, City Planner Christen, Special Projects Coordinator Basham, Special Projects Coordinator Wood, City Treasurer Pape and Deputy City Clerk Bryning. CONSENT CALENDAR MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: a. City Council/Redevelopment Agency Work Session - December 1, 1992. (F:134.3) b. Adjourned Redevelopment Agency Meeting - December 1, 1992. (F:134.3) c. Regular Redevelopment Agency Meeting - December 8, 1992. (F:134.3) 2. Received and ordered filed the Investment Reports for: a. October 31, 1992 (F:12.5) b. November 30, 1992 (F:12.5) 3. Ratified the Warrant List for December 15, 1992. (F:12.3) BUSINESS ITEMS 4. Eastlake Proiect Memorandum of Understandina and First Amended Plannina & Neaotiatina Agreement.(F:134.7) Executive Director Molendyk gave an overview of the Eastlake Project Memorandum of Understanding and the Planning and Negotiating Agreement. He explained that this item was continued from the November 13, 1992, meeting and the City Attorney has reviewed this item and is prepared to answer questions. ~ PAGE TWO - REDEVELOPMENT AGENCY MINUTES - DECEMBER 22, 1992 Mr. Dan Young, Eastlake Community Builders, explained the history and progress of. the project to present action that is being proposed to the Board and gave an overview of the Memorandum of Understanding and the Planning and Negotiating Agreement. He further reported that in January the Specific Plan, the Environmental Impact Report on the Specific Plan and ultimately a Development and Disposition Agreement between Eastlake Community Builders and the Redevelopment Agency which are needed to provide zoning for this project. Mr. Young stated that Eastlake Community Builders requests that this item be approved. Peter Dawson, Lakeland Village, questioned the lake level and expressed his concern for evaporation if the lake is maintained in the wet period at 1240'. Mr. Young explained that the concern was noted and the documents now state that 1240' is a minimum and not a maximum. He further explained that their engineers have revised the plan to accommodate the desired level of 1249' which is what the Water District has requested. Executive Director Molendyk explained that the reason why the original document had 1240~ as that was what the original Lake Management plan was designed for and later changed. Boardmember Washburn questioned the item regarding a franchise concern and acquisition of State Park property which the City does not control at this time. Ae requested a revision of Section 3.4.4 regarding State Park Property. Dan Young explained that the Cable Franchise is out of the agreement and the State Park land can be addressed at the time of the development agreement. Chairwoman Cherveny asked Mr. Young to clarify which property he was referring to. She stated that she did not think that this was the State Park on Riverside Drive or Lakeshore Drive. Mr. Young explained that this is the property behind the levee in the floodplain. Boardmember Washburn stated that he had no problem with that land. Boardmember Alongi advised that he would like to see the Lehr Option attached to the DDA because he would not like to commit financially to this option in connection with this project. Legal Counsel Harper explained that the Agency has been involved in this option long before this project came into being and the option does not change the project. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE MEMORANDUM OF UNDERSTANDING FOR EAST LAKE PROJECT BY AND AMONG THE CITY OF LAKE ELSINORE, THE LAKE ELSINORE REDEVELOPMENT AGENCY AND THE EASTLAKE COMMUNITY BUILDERS. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE TO APPROVE MEMORANDUM OF UNDERSTANDING FOR EASTLAKE COMMUNITY BUILDERS AND THE FIRST AMENDED AND RESTATED EXCLUSIVE PLANNING AND NEGOTIATING AGREEMENT BY AND AMONG THE CITY OF LAKE ELSINORE, THE LAKE ELSINORE REDEVELOPMENT AGENCY AND EASTLAKE COMMUNITY BUILDERS. 5. Lehr Option Agreement.(F:134.7) Executive Director Molendyk explained that this item is a revision of the Lehr Option and staff would recommend approval of the extension as negotiated and authorize the Chairperson to execute it. PAGE THREE - REDEVELOPMENT AGENCY MINUTES - DECEMBER 22, 1992 Leqal Counsel Harper explained the option and the responsibility of the City in regard to the option. Special Projects Coordinator Wood further explained that even if the money invested was not used as intended and the option was not exercised the City would receive the equivalent in land. He further explained that the $3,000 payment does not get equivalency. Boardmember Alongi stated that he felt that the funds from the Redevelopment Agency should be spent on investments and not on somethinq that does not furnish a way to recover the funds for further investments. He further stated that he felt that no further funds should be spent. Legal Counsel Harper explained that the City negotiated the price several years ago with the Grosse Corporation and after that fell through the City had an appraisal done which confirmed that the land is at fair market value. Boardmember Alongi stated that no one has come up with a viable plan, therefore as floodplain it is not able to be developed until such time as it can be proven that a development can be done. MOVED BY WINKLER, SECONDED BY DOMINGUEZ AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO APPROVE THE LEHR OPTION EXTENSION AS NEGOTIATED AND AUTHORIZED THE CHAIRPERSON TO EXECUTE THE DOCUMENT. 6. Amber Ridae Sewer Studv.(F:134.10) Executive Director Molendyk explained that this item was continued from the last meeting in regard to Amber Ridge and there has been a Study Session with Elsinore Valley Municipal Water District. He further stated that staff was directed to bring back the sewer study after the meeting with Elsinore Valley Municipal Water District for further consideration and study. Mr. Molendyk stated that staff was available to answer any questions that the Board might have. Chairwoman Cherveny explained that she thouqht that the staff's of Elsinore Valley Municipal Water District and the City were to meet and confer to resolve some of the issues and possibly come up with some type of pass-through agreement. MOVED BY WINKLER, SECONDED BY WASHBURN TO APPROVE 3"F" WHICH READ AS FOLLOWS: "GUARANTEE REPAYMENT FOR THE CONSTRUCTION OF THE SEWER MAINS AND LATERALS WITHIN THE PUBLIC RIGHT OF WAY. STAFF IS DIRECTED EACH YEAR TO REQUEST EVMWD TO PAY THE $47,051 ANNUAL PAYMENT BY COMMITTING A PORTION OF THE ANNUAL RDA PASS-THROUGH FUNDS FOR THE 20 YEAR DURATION OF THE $700,000, 3$ LOW INTEREST LOAN. THE FIRST ANNUAL PAYMENT WILL COMMENCE ONE YEAR FOLLOWING COMPLETION OF SEWER MAIN CONSTRUCTION. THE INDIVIDUAL HOMEOWNERS WILL BE RESPONSIBLE FOR CONNECTING TO THE SEWER, INCLUDING THE $3,500 E~IMWD SEWER CONNECTION FEE (WHICH THE DISTRICT MAY ACCEPT AS A LIEN ON THE PROPERTY) AND THE ESTIMATED COSTS OF $2,600 TO CONSTRUCT THE LATERAL BETWEEN THE STREET RIGHT OF WAY AND THE IiOUSE (INCLUDING THE BACKFILLING OF THE EXISTING SEPTIC TANK/PIT). THE DISTRICT WILL MAKE THE FINANCIAL ARRANGEMENTS WITH EACH PROPERTY OWNER REGARDING REPAYMENT TO THE DISTRICT FOR THE SEWER MAIN AND LATERAL COSTS WITHIN THE PUBLIC RIGAT OF WAY. Boardmember Winkler explained that EVMWD needs the funds to accomplish this and it will be six to eight months to complete after approval and he felt that the City should be movinq on this. He further stated that there should be an incentive to encourage the entire area's participation. PAGE FOUR - REDEVELOPMENT AGENCY MINUTES - DECEMBER 22, 1992 I Boardmember Washburn concurred with Boardmember Winkler and stated that this is a health issue and suggested a 50~ participation loan for hook-up using funds in a pass through agreement which are funds received by EVMWD. He further ,' stated that it is also a moral issue and he encouraged EVMWD to participate in solving this. Chairwoman Cherveny read 3"F" to reconfirm the verbiage which ' is being moved on. She questioned the actual cost of this I project. Executive Director Molendyk explained the cost is I approximately $7,500 per home. Boardmember Winkler asked that the last sentence of the motion be struck as it is not consistent with his intent. Boardmember Washburn as second concurred. Mr. Winkler explained that the intent of his motion. Boardmember Alongi explained that Amber Ridge tract has a problem and the funds from RDA are there to help assist, not to invest money for Elsinore Valley Municipal Water District. The Board is going to invest $700,000 of RDA funds if the cost does not go beyond as it seems to do with other government projects. This project could grow to $1,000,000. Mr. Alongi further stated that he did not think it was appropriate for those persons who live in Project Areas 1, 2, or 3 to pay for facilities for EVMWD. He further explained that he would like to see the Board offer the residents a low interest loan to repair their septic systems which would solve the health problems. Mr. Alongi explained that there is no guarantee that anyone in that tract will hook up to the sewer and if they do it is proposed that the City will pay and EVMWD will collect the service fee with the City getting nothing. He reaffirmed his opinion that the Board should invest RDA funds where there is a return on the dollar. Mr. Alongi asked the Board if they were willing to invest in all the other areas that are experiencing septic problems and stated his belief that the property has a responsibility to correct their own problems. Chairwoman Cherveny explained that she had no problem with the motion as long as the property owners were to participate in the repayment of the cost; without the property owners participation for at least part of the funds, she stated she could not support the motion. This item does not conform with the budget and the Board must live within the budget. Boardmember Alongi pointed out that the motion requests EVMWD to pay, the motion does not state that they will. He further stated that in January there will be a new member on the EVMWD Board and he would like to wait and see what the new member would do. Mr. Alongi stated that EVMWD should take over the installation of the sewer and the City could pay for the connection of the sewer from the house to the lateral. MOVED BY CHERVENY, SECONDED BY ALONGI AS A SUBSEQUENT MOTION TO TABLE THE ITEM TO THE FIRST MEETING IN JANUARY SO THAT THE WATER DISTRICT CAN HAVE MORE TIME TO CONSIDER THE CONSTRUCTION OF SEWER AND CONSIDERATION CAN BE GIVEN TO THE PASS-THROUGH MONEY. Boardmember Winkler stated that he was ready to move on this item now. Boardmember pominguez explained that this situation is a health hazard and the City has been waiting for the Water Company to act on this and now there is a motion to resolve the problem and he feels that this should be addressed now. ~ Boardmember Alongi explained that the problem can be resolved by repairing the septic systems. He further stated that he is PAGE FIVE - REDEVELOPMENT AGENCY MINUTES - DECEMBER 22, 1992 not opposed to assisting the people of Amber Ridge, but that he felt that providing all the funding for sewer is not the way to do it. Chairwoman Cherveny asked for the definition of a gift of public funds. Legal Counsel Harper stated that the Amber Ridge study clearly defines that this would not be a gift of public funds. MOVED BY WASHBURN TO CALL FOR THE PREVIOUS QUESTION. DIED FOR LACK OF A SECOND. There was general discussion in regard to motions made and in what order they are heard. The question was called for the subsequent motion as follows: MOVED BY CHERVENY, SECONDED BY ALONGI AND FAILED BY A VOTE OF 3-2 WITH DOMINGUEZ, WASHBURN AND WINKLER CASTING THE DISSENTING VOTES FOR THE SUBSEQUENT MOTION TO TABLE THE ITEM TO THE FIRST MEETING IN JANUARY SO THAT THE WATER DISTRICT CAN HAVE MORE TIME TO CONSIDER THE CONSTRUCTION OF SEWER AND CONSIDERATION CAN BE GIVEN TO THE PASS THROUGH MONEY. The original questions was called for as follows: MOVED BY WINKLER, SECONDED BY WASHBURN AND CARRIED BY A VOTE OF 3-2 WITH ALONGI AND CHERVENY CASTING THE DISSENTING VOTE TO APPROVE 3 "F" TO READ AS FOLLOWS: "GUARANTEE REPAYMENT FOR THE CONSTRUCTION OF THE SEWER MAINS AND LATERALS WITHIN THE PUBLIC RIGHT OF WAY. STAFF IS DIRECTED EACH YEAR TO REQUEST EVMWD TO PAY THE $47,051 ANNUAL PAYMENT BY COMMITTING A PORTION OF THE ANNUAL RDA PASS- THROUGH FUNDS FOR THE 20 YEAR DURATION OF THE $700, 000, 3$ LOW INTEREST LOAN. THE FIRST ANNUAL PAYMENT WILL COMMENCE ONE YEAR FOLLOWING COMPLETION OF SEWER MAIN CONSTRUCTION. THE INDIVIDUAL HOMEOWNERS WILL BE RESPONSIBLE FOR CONNECTING TO THE SEWER, INCLUDING THE $3,500 EVMWD SEWER CONNECTION FEE (WHICH THE DISTRICT MAY ACCEPT AS A LIEN ON THE PROPERTY) AND THE ESTIMATED COSTS OF $2,600 TO CONSTRUCT THE LATERAL BETWEEN THE STREET RIGHT OF WAY AND THE HOUSE (INCLUDING THE BACKFILLING OF THE EXISTING SEPTIC TANK/PIT). 7. Ambassador Hotel Option Extension.(F:134.7) Executive Director Molendyk asked for a continuance of the item to the January 12, 1993, Redevelopment Agency Meeting. MOVED BY DOMINGUEZ, SECONDED BY CHERVENY AND CARRIED BY UNANIMOUS VOTE TO CONTINUE THE AMBASSADOR HOTEL OPTION EXTENSION TO THE REDEVELOPMENT AGENCY MEETING OF JANUARY 12, 1993. 8. Old Military Academy.(F:134.1) Executive Director Molendyk explained that the old Military Academy located at 15900 Grand Avenue has been on the market for a long period of time and it has been suggested that the Redevelopment Agency might wish to consider the purchase for a park on that side of the Lake. He further explained that the price for the property is proposed to be $2,650,000 with terms of $1,000,000 down, carrying the balance for three to five years at nine percent interest. Legal Counsel Harper explained that the Board is precluded by constitution to enter into a debt mortgage because it violates the constitutional debt limitation. PAGE SIX - REDEVELOPMENT AGENCY MINUTES - DECEMBER 22, 1992 Irling Arend, 601 S. Main, Corona, Attorney and representative for the old Military Academy explained that he was there to answer any questions that the Board might have. Boardmember Washburn explained that at some point staff will be contacting the representatives of the old Military Academy to discuss possibilities for the site. MOVED BY CHERVENY, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO TABLE PURCHASE OF OLD MILITARY ACADEMY FOR FURTHER STUDY. PUBLIC COMMENT3 - NON AGENDIZED ITEMS Sue Bowen, 167 Torn Ranch Road, addressed Boardmember Alongi in regard to the Amber Ridge problem and stated that she was not a part of the lawsuit, but is now experiencing septic failure. She stressed the health problems and the run off which occurs because of the septic failure. EXECUTIVE DIRECTOR~S REPORT - None. BOARDMEMBER COMMENTS Boardmember Alongi addressed septic failure and perk testinq. He stressed the importance of spending the RDA monies in the participating areas. He explained that gray water should not be released to run down streets as it is in violation of health codes and those persons who are doing this should be cited and fined. Boardmember Washburn congratulated the Lake Elsinore Valley Chamber of Commerce for getting the sanction for the Frontier's Day Rodeo. Chairwoman Cherveny cautioned Boardmember Winkler to have more concern for the budget and asked that Boardmember Washburn not assist in directing her meetings. CLOSED SESSION THE REDEVELOPMENT AGENCY ADJOURNED TO A JOINT CLOSED SESSION WITH THE CITY COUNCIL AT 9:40 P.M. TO DISCUSS THE LEHR OPTION AND PERSONNEL MATTERS. THE REDEVELOPMENT AGENCY MEETING WAS RECONVENED AT 9:55 P.M. NO ACTION TAKEN. MOVED BY WASHBURN, SECONDED BY DOMINGUEZ AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO ADJOURN THE REGULAR REDEVE NT AGENCY MEETING AT 9:55 P.M. ~l~ TERE CHERVENY, CHAIRWOMAN REDEVELOPMENT AGENCY AT T: ~ ~-UC~ ' ADRIA L. BRYNI G, DEPU CLE THE BOARD REDEVELOPMENT AGENCY ~