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HomeMy WebLinkAboutrda min 1984/06/21 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY ~ OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, June 21,1984 Council Conference Room 4 :00 p.m. City Hall ROLL CALL MEMBERS PRESENT Chairman Cox; Members Moore, McCand1iss, Scott MEMBERS ABSENT ~lember Malcolm STAFF PRESENT Executive Director Goss, Community Development Director Desrochers, Redevelopment Coordinator Zeg1 er, Agency Attorney Harron, Special Counsel Reed, City Engi neer Li ppitt, Agency Treasurer Christopher ITEM NO. 1 - a. RESOLUTION NO. 511 - AMENDING RESOLUTION NO. 480 IN FULL b. RESOLUTION NO. 512 - SELLING $25 MILLION PRINCIPAL AMOUNT OF BA YFRONT /TOWN CENTRE REDEVE LOPMENT PROJECT 1984 TAX ALLOCATION NOTES, APPROVING LETTER OF CREDIT AND RE IMBURSEMENT AGREEMENT, AND RATIFYING OFFICIAL STATEMENT At their meeting of June 7, Redevelopment Agency members were provi ded wi th the details of the proposed note sale sponsored by the Agency. It was noted that the bids for the'sa1e of the notes will be received, opened, examined by the financial consultants, and awarded at this time. Chairman Cox, noting the absence of Member Scott, reques ted this i tern be trail ed until his arrival. However, since Merrill Lynch was one of the bidders on the notes sale, Special Counsel suggested that Member Scott would have to abstain. Member Scott arrived at this time and was informed that he should abstain from discussion and voting on this matter. Mr. Jeff Kinsell, representing Miller & Schroeder Municipals, Inc., indicated that the Agency receiVed a AA rating on this bond issue. Bids were received from Miller & Schroeder/Smith Barney and Merrill Lynch. The winning bid was for a discount of 1-1/2%, and a net effective rate of 8.49%. Merrill Lynch 's bid was 8.99%. Mr. Kinsell indicated that the $25 mill ion proceeds will be transferred to the REjdeve10pment Agency at the closing in San Francisco on June 28. _._._........~_____________.__.,_._ ._.._. _, ..__.n__________.____n_'_. Adjourned Regular Redevelopment Agency M/;Jeting - 2 - June 21, 1984 Mr. Chick Adams, repr~senting Bond Counsel Jones Hall Hill and White, Four Embarcadero Center, SlJite 1950, San Francisco, CA 94111, indicated there were two actions tied! into amending the bond issue. The second resolution adopted today will incorporate all the final terms. The Agency's second action today will award the bonds to Miller & Schroeder/Smith Barney. Mr. Desrochers added that !the bond rating issued by Standard and Poor 's will also be added to the final ¡official statement. In response to Chai!rman Cox 's question, Community Development Director Desrochers indicated t¡hat the funds as a result of the bond sale will assist in financing budget items. The balance will be invested. An update of the specific use of these funds will be provided for Agency members. Mr. Desrochers pointed ou:t; that one of the uses of this issue was to fund the $1.5 million Bayfront ITrolley Station. RESOLUTIONS OFFERED Bt MEMBER MOORE, the reading of the texts was waived by unanimous consent, paslsed, and adopted. (Member Scott abstained.) UNANIMOUS CONSENT- RE~OLUTION NO. 513 - AUTHORIZING THE USE OF THE LOCAL I AGENCY INVESTMENT FUND UNDER THE OFFICE OF THE CALIFORNIA STATE TREASURER AS AN ALTERNATIVE INVESTMENT MEDIA The Local Agency Inv~stment Fund is a special fund in the State Treasury created by law permi~ting the Redevelopment Agency to remit money to the State Treasury for deposit for investment purposes. Agency Treasurer ChriStopher explained that this mechanism allows cities and counties to pool their money into one fund in order to obtain more interest depending on what is Invested. The maximum amount at one time per agency is $5 mill ion. Currently, we have approximately $3 mill ion invested. Menter McCand1 iss req~ested information on having a representative from Chu1a Vista on the local inwestment advisory board. Chairman Cox suggested we may be able to util ize tI1is method of investment for the Industrial Development Authority as well. I~ response, the Finance Director stated he wou1 d have to investigate the possi~f1 ity of another separate entity investing funds. RESOLUTION OFFERED B~ CHAIRMAN COX, the reading of the text was waived by unanimous consent, passed, and adopted unanimously. ITEM NO. 2 - REPORT: LAND USE PERMIT - ROUND TABLE PIZZA ARCADE Round Table Pizza Restaurant, located in the Park Plaza at the Village, currently has four viiteo arcade machines on its premises. In accordance with a recently adopted CIJu1a Vista Ordinance, if a business operates more than three amusement machines, that business is considered to be operating an arcade and is subject to 1 icensing and a conditional use permit. Staff - ---".,.-.-." ..---.----------..-------.-- Adjourned Regular Redevelopment Agency Meeting - 3 - June 21, 1984 recommends that the Agency allow the existing use of four video machines subject to the requirements for the subject accessory use speci fied in the City Code. The Project Area Committee voted unanimously to recommend the Agency allow this use. Mr. Jerry Randel, representing Round Table Pizza Restaurant, commented in order to maximize income as an accessory, the owner felt four machines would be required. Community Development Director Desrochers stated that since the video games were designed as a t~b1etopmode1, the primary use by patrons would be for dining. Therefore, staff recommends approval. Discussion followed regarding the ordinance relating to amusement faci1 ities and games. Agency Attorney Harron exp1 ained that when this ordinance was dra fted, a nunter of problems was recogn ized. Therefore, it is hoped tha t enough 1 ati tude was provi ded in the ordinance. Since enactment of the ordinance, not one complaint has been received regarding violation of the law. MOTION TO ALLOW MACHINES MSUC (Scott/Moore) to allow existing use of the four video machines. ITEM NO. 3 - RESOLUTION NO. 514 - AUTHORIZING EXPENDITURE OF $30,163 FOR RELOCATION COSTS ASSOCIATED WITH THE ACQUISITION OF THE MARINA MOTOR MOTEL AND APPROPRIATING FUNDS THEREFOR Three types of payment are involved for requesting the subject appropriation regarding the Marina Motor Motel. For some resi dents, temporary accommodations have been arranged through payments made to local motel s. Si x families are eligible for rental assistance payments up to $4,000 each since they have resided on the property at 1 east 90 days prior to the date of the first offer made by the City to the 1 and owner. A third type of payment is available to all tenants in a fixed payment for moving expenses for $225. Since relocation assistance is required by law, the relocated individual is eligible for rental assistance of $4,000 if the indivi dual has been in residence at the acquired property prior to the date of the first offer. If in residence after that date, then a moving expense payment is made as a subsidy to the di sp1 aced person. Di scuss i on ensued regarding relocation benefi ts as required by Sta te 1 aw. Menters expressed concern that the motel was not c1 eaned up pri or to being purchased by the Agency. In response, Special Counsel Reed noted that approxima tel y $2,500 of location cos ts appropriated for purchase of the property were for unsanitary conditions. Redevelopment Coordinator Zeg1 er informed the Agency that the Pol ice Department as well as Community Development staff has provided daily patrols of the motel area. The request for proposal s authorized to be prepared for demolition of the motel has been advertised in the Sta r-News and Daily Tr an scr i pt. --.--- .-. .........- --_._-_._---_.._------_.~--_....- Adjourned Regular Redevelopment Agency Meeting - 4 - June 21, 1984 RESOLUTION OFFERED BY MEMBER SCOTT, the reading of the text was waived by unanimous consent, passed, and adopted unanimously. ITEM NO.4 - RESOLUTION NO. 515 - ADOPTING REDEVELOPMENT AGENCY BUDGET FOR FY1984-85 AND APPROPRIATING FUNDS THEREFOR The Redevelopment Agency budget was considered on May 30, 1984, as part of the Commun i ty Development Department 's presentation during City Council del iberations. Since the Agency's funds are not derived from the City 's General Fund revenues, it is necessary to approve the budget as a Redevelopment Agency item. Assistant City Manager Asmus discussed the revised reso1 utions prepared for Agency consideration which included additions to the Redevelopment budget. On June 12, 1984, the Council recommended the use of Agency funds to replace concrete in the median at Third Avenue and "H" Street. The cos t 0 f us in g bomanite as suggested by the P1 anning Department is estimated to be $9,000. MSUC (Cox/Scott) to include the use of Agency funds to replace concrete in medi an is 1 and at Th ird Avenue and II HI! Street in the FY 1984-85 Redevelopment Agency budget. On June 18, 1984, the Council recommen ded crea ti on of a contingency fund using $20,000 of Redevelopment Agency funds for unplanned expenses. Member ~lcCand1 iss stated that a1 though she does not support the creation of a contingency fund, due to the direction the Agency is going, she offered a courtesy vote in favor of this. Menter Scott disagreed with the use of funds for this purpose. MSC (Cox/Moore) to include the creation of a contingency fund, $20,000, for unp1 anned expenses as part of the FY 1984-85 Redevelopment budget. (Member Scott voted no. ) On June 18, 1984, the Council recommended the hiring of Special Counsel to handle duties associated with the Sierra C1ub's lawsuit against the City. The cos t estimated by the City Attorney is $30,000. MSUC (Moore/Cox) to approve hiring of Special Counsel to hand1 e duti es associated with Sierra C1 ub lawsuit, approximately $30,000, to be included in the FY 1984-85 Redevelopment Agency budget. On June 12, 1984, the Council requested that the expansion project at "J" Street and Bay Bou1 evard be further expanded to inc1 ude the area east of the railroad tracks and west of Bay Boulevard bounded by "J" Street and the tidal channel and requested staff to estimate the additional cost. The Director of Parks and Recreation estimated that $6,000 shou1 d be appropriated. - ._-_._--_.~~-_._._------_._---_._--- --_._.~_..- Adjourned Regular Redevelopment Agency Meeting - 5 - June 21, 1984 MUSC (CoX/Scott) to inc1 ude $6,000 for further expansion of "J" and Bay Boulevard to include the area east of the railroad tracks and west of Bay Bou1 evard in the FY 1984-85 Redevelopment budget. The Council also requested a cost estimate for the installation of an entry sign at this location. Staff will return to the Agency in the future with a report and cost estimate for this item. City Engineer Lippitt discussed the need to expand the Del Mar Avenue Storm Drain Project to include an addit i ona 1 $159,000. In the 1983-84 Capital Improvement Program, an Emergency Jobs Bill Grant was approved for the installation of the storm drain system at Del Mar Avenue from "F" Street to Ma drona Street. The project i nc1 udes the installation of various sizes of drainage culverts, drainage inlets, c1eanouts, etc. At the time the budget was prepared, precise design solutions were not available. The scope of the project was expanded to include a storm drain system along "F" Street from Del Mar to Second Avenue, a new sanitary sewer along "F" Street from Twin Oaks to Second Avenue, modification of an inlet at Third Avenue and Center Street, and some over1 ay work at Second Avenue and "F" Street. MSUC (Cox/Moore) to inc1 ude "Del Mar Avenue Storm Dra i n - Expanded Project" in the FY 1984-85 Redevelopment Agency budget and appropriate an additional $159,000. ITEM NO. 5 - CITIZENS ACTION NETWORK SLIDESHOW PRESENTATION Chairman Cox explained that representatives of the Citizens Action Network (CAN) indicated they could not make their presentation at this afternoon's meeting. In a 1 etter from Dr. Guy Li chty, it was reques ted that a presentation be held on three a1 ternate dates in JUly, each meeting suggested was at 7:00 p.m. In response, Member McCand1iss suggested in order to avoid paying overtime to all officials CAN requested be in attendance at the rescheduled presentation, the slideshow be held during an afternoon meeting at 4:00 p.m. MOTION TO RESCHEDULE CAN PRESENTATION ~ISUC (Scott/Moore) to con tact repres en ta ti ves of Citizens Action Ne twork , elected officials, County agencies, etc. , notifying them of a rescheduled presentation, possibly on July 19, 1984, at 4:00 p.m. MEMBERS I COMMENTS a. Member McCand1iss requested Building and Housing staff inspect the Navy hous i ng site. Executive Director Goss indi cated that staff has been directed to perform th i s inspection, however, status of the inspection has not been provided. b. Member Scott requested that s ta ff provi de a copy of the fi rework s ordinance at the next City Council meeting (on June 26). ----, ---,--.--."..--.--......-----.------ Adjourned Regular Redevelopment Agency Meeting - 6 - June 21, 1984 c. It was suggested that the meeting be adjourned to Closed Session for 1 iti gation matters. ~ISUC (CoX/Moore) to adjourn to Closed Session for matters of 1 itigation. DIRECTOR'S COMMENTS Executive Director Goss reported that the County is considering the Land Use Plan for Otay Mesa on June 22, which includes adding 3,000 acres. Staff requests Agency concurrence to oppose the p1 an because of overwhelming environmental impacts which could not be mitigated in this initial study. Staff will have an opportunity to review the material in-depth prior to the Board of Supervisors meeting on June 22 to oppose the p1 an for the above reasons. Therefore, staff shou1 d be di rected to report back to the Redevelopment Agency with a more detailed report in the next couple of weeks. MSUC (I~cCand1 iss/~Ioore) to direct P1 anning staff to report back to the Agency wi th a deta i 1 ed report on the Otay Mesa Land Use Plan being brought before the County Board of Supervisors. ADJOURNMENT at 5:10 p.m. to Closed Session and to the mid-month meeting of July 19, 1984, at 4 :00 p.m. The Recording Secretary was excused and the Executive Secretary reported that Closed Session adjourned at 5:15 p.m. WPC 1134H -...-----....,-.-------.--.-..-..