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HomeMy WebLinkAboutcc min 1994/03/22 RDA MINUTES OF A JOINT MEETING OF THE REDEVELOPMENT AGENCY/ CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, March 22, 1994 City Council Chambers 9:59 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Members/Council Members Hotton, Fox, Moore, Rindone, and Chairman/ Mayor Nader ALSO PRESENT: John D. Goss, Director/City Manager; Brace M. Boogaard, Agency/City Attorney; and Beverly A. Authelet, City Clerk 2. APPROVAL OF MINUTES: March 1, 1994 CONSENT CALENDAR (Items pulled: 4 and 5) 3. WRITTEN COMMUNICATIONS: None Submitted. 4. AGENCY RESOLUTION 1390 ADOPTING THE REDEVELOPMENT AGENCY BUDGET FOR FY 1993- 94 AND APPROPRIATING FUNDS THEREFOR--The FY 1993 -94 Redevelopment Agency Budget was reviewed as part of the City budget approval process. As the Re, development Agency is a separate legal entity, it is necessary to approve the budget separately as required by California Community Redevelopmerit Law. The formal Agency adoption of the budget had been delayed in order to determine the full impact of State budget resolutions and to complete the evaluation of staffing needs for the Economic Development function in the Community Development Department as directed by City Council during and subsequent to the City's budget review process. Staff recommends approval of the resolution. (Community Development Director) [4/5ths Vote Required] Continued from the March 15, 1994 meeting. Pulled from the Consent Calendar. Chris Salomone, Director of Community Development, informed the Council/Agency that it was the same budget as presented in July. It was now before the Council/Agency because over the last three years the State had used RDA funding sources to help balance the State budget and in each of those three years there had been perfunctory approval of the budget to trail until the impacts of the Stated budget were known. The other issue that caused the delay was direction by Council to look at economic development and return with that analysis. The budget was not a balanced budget, it had a clearly identified deficit. Staff hoped that with the termination of AB 1290 the revenues would continue to grow as they had in the past. It was considered a practice throughout the State to loan money to redevelopment agencies, they had to incur debt and file a statement of indebtedness in order to receive the property tax revenue. The money the Agency received was booked as loans and would be paid back with interest over the life of the five redevelopment areas. He felt it would be proved that the Agency had spent their money well. The Department had done a staff analysis and was asking for approval of an administrative secretary as they felt it would allow the department to fulfill the Council's/Agency's goals in economic development. They had also asked for the legislative offices to house the staff and possibly return in December to readdress the issue to make sure staff was meeting the goals as outlined by the Council/Agency. Chairn'mn/Mayor Nader questioned why there was no funding included for the South County Economic Development Commission. Mr. Salomone responded it was a choice made during the budget analysis period last year. His recommendation to the City Manager had been that the South County EDC had been a valuable organization. For the first three years their funding had been represented as seed money and that they would become autonomous from the City and an end to City support. In light of the State budget constrictions they were a victim of that process. Minutes Mamh 22, 1994 Page 2 Chairman/Mayor Nader stated his recollection was different, i.e. that a decision would be put off on the South County EDC to see how it would fit into the overall budget, not that they had made a decision as a Council to not support them. He felt it was very important that the South County have an active and viable economic development commission. Due to the reduced budget he could see reduced support, but had a problem in not giving them any support. Another area of concern was the benowing from the sewer fund. Because there was a General Fund reserve he felt it was more appropriate to borrow from there. If they were able to borrow from the sewer fund, which was based on sewer charges paid by the users, it suggested the City was over collecting on sewage and maybe should look at those rates. He questioned whether the addition of one clerical position would accomplish the Couneil's/Agency's goals for economic development. He recommended that the review be held in conjunction with the upcoming budget cycle rather than waiting for December while looking for other ways to increase the amount of staff commitment to economic development. Director/City Manager Goss stated there were obvious economic and space constraints, but often the clerical detail bogged down the professional staff and by adding that position it would be a real assist so the professional staff could focus on individual projects. It was felt the high priority economic development projects could be accomplished with the existing staff and the addition of the clerical position. Mr. Salomone responded that was correct. The recommendation came out of a very thorough analysis and was supported by the Economic Development Manager. The Community Development Department supported and reported to a number of committees/commissions and economic development reported to a number of committees/commissions and the clerical support was critical. Chainnan/Mayor Nader stated he did not disagree with adding the clerical position, but the point was that more needed to be done if at all possible. One area to look at was that staff had a tendency to study some things more Agency/Council Member Moore stated he had artended many of the EDC meetings and felt they were one of the commissions that gained the City money rather than costing money. Chairman/Mayor Nader felt part of the issue was the priorities within the department and maybe a mission statement or policy direction was needed that would make it clear the top priority was the creation of good paying jobs for Chula Vistans. Director/City Manager Goss suggested the Council/Agency review those priorities as a supplemental budget memo during the budget process. He agreed there was a workload that needed to be prioritized. Chairman/Mayor Nader stated he would like to see some policy direction to the department, prior to the budget process, that would make it clear what the priorities were. There were a few positions within the department that had certain areas that related to economic well being that did not relate to job creation, i.e. the Housing Coordinator and CDBG; it was appropriate those people were working in those areas. For the staff that could be assigned to anything the Director decided to assign them to, it would be appropriate to adopt a Council policy or mission statement that made it clear that job generating activity was job one. Director/City Manager Goss responded there was a lot of work that was redevelopment, but that was really more in implementing part of the economic development plan. Agency/Council Member Moore felt the key priority was to make sure a CYA program was on-going on how the City spent the money and keep the legal function going. He felt that was the top priority, after that the top priority was economic development and good jobs. Chairman/Mayor Nader stated he did not disagree with Member Moore, the legal responsibilities had to be fulfilled. He was referring to the discretionary staff assignments versus those that were legally imposed. MS (Nader/Horton) to amend the budget to include support for the South County Economic Development Commission at' the levd of $7,500. Agency/Council Member Fox questioned if the intent of the motion was to increase the deficit by that amount. Minu~e~ March 22, 1994 Page 3 Chainnan/Mayor Nader responded that would be the result of the motion. It was only a deficit budget because the State took away the funds to run their programs. Agency/Council Member Rindone questioned whether the Town Manager was funded in the budget. Mr. Salemone responded that it was through half of the year and then there would be a separate A113 coming to the Agency to address the Town Manager situation. There was a carry-over amount from the previous year and a special funding had been done from the budget approximately two weeks ago to make them current. The budget before the Agancy/Council had been approved in July and a number of things had been paid for out of the budget. Agency/Council Member Rindone questioned why the Council/Agency had to approve the budget if staff had been paying them anyway. Director/City Manager Goss responded Council/Agency adopted the budget as a Community Development Department and CIP program. The State law required that it also be adopted as an Agency by project areas. It was the same budget, but sliced differently. Agency/Council Member Rindone questioned if all of the others received their appropriation in a timely manner on July 1. Mr. Salemone responded that it was done. Agency/Council Member Moore stated the City was at the position to start looking at how much money was being put into other EDC's versus what was put into the City's economic efforts. It seemed to him the South County EDC and San Diego EDC should work toward a joint EDC with Chula Vista with donors representation on the advisory beard. That would save the duplication of resources. Ageaacy/Couneil Member Rindone stated he did not concur that the San Diego EDC would have the same thrust or interest the South County EDC would have. The motivation was for a specific targeted area and if combined he was not sure that would focus on South County issues. Agency/Council Member Moore felt that being a member of the advisory board would give the weight needed. VOTE ON MOTION: approved unanimously. MS (Nader/Fox) to amend the budget to borrow from the General Fund reserve rather than the sewer account. Director/City Manager Goss stated either fund could be utilized. Staff was reluctant to utilize the General Fund was due to Council policy which had been to maintain services levels, avoid layoffs, and not touch the General Fund re, serves as they provided a revenue stream from the interest to help support operations. There was not that much money in the General Fund reserves for the current fiscal year and next fiscal year. Staff felt the reserve for the current fiscal year was $7-$7.5 million. The Agency/Council would be looking at a similar situation next year which could put the reserves at approximately $I .6 million which would allow for very little flexibility. The sewer thnd had more money because staff realized there were going to be very heavy duty payments in the future. It was a loan that would be paid back with interest for money that would be needed later on as the costs were identified for the system. The strategy on the sewer rates was to keep them lower than San Diego's, and average or below average with other jurisdictions, and at the same time accumulate funding so that the rates would not have a real spike in rates in order to meet those big payments in the rutere. Agency/Council Member Rindone questioned if there was a legal risk by using the General Fund versus the sewer fund. Director/City Manager Goss responded the Council was in control of the appropriation of those funds. The City had not faced the "robbery" of funds from the State from the sewer fund as they had with the General Fund. The sewer fund was like an enterprise fund and did not have ties to the State. Minutes March 22, 1994 Page 4 Chairman/Mayor Nader stated if the City was so sure they could tam redevelopment around that the sewer fund would be paid back with interest, why were they not equally assured that the General Fund could not be paid back with interest. Director/City Manager Goss responded that it could be done. There was not as much money in the General Fund and the ability of the RDA to turn it around and pay it back would not occur in a short enough term to be able to save the General Fund, Agency/Council Member Fox stated due to the argument presented by the City Manager he could not support the motion. Chairman/Mayor Nader questioned how much money was in the sewer fund reserves. Director/City Manager Goss responded that the main fund had about $11 millinn and collectively it was approximately $15 - $20 million. Chairman/Mayor Nader stated if staff was not confident that redevelopment could not be tamed around soon enough to repay whatever fund was borrowed, the Agency/Council needed to do one of two things, or maybe both, i.e. look for ways to reduce the overall budget or ways to shorten the tamaround time on redevelopment. Director/City Manager Goss responded that at the time the budget was presented it identified four options: 1) balance the budget by cutting back all the staff and community development activity in order to balance the Redevelopmeat Agency budget; 2) balance it by selling the Agency's assets; 3) stop redevelopment from reimbursing the General Fund for services; and 4) the Department and Agency continue their operations as they were. The fourth item was recommended as staff felt there would be positive things coming out of redevelopment. Staff was also looking at refunding the Agency bonds which would save several hundred thousand dollars per year. The Southwest Project Area was in the beginning mode, but it was so large that as it continued the tax increment should increase sigin~cantly. Basically, the recommendation in the budget was to use the loan money until the current economic recession was over and the Agency could get back on its financial feet. They would probably reach zero in the General Fund reserves in about two years and the Sewer Fund had more money and could cushion that. Chairman/Mayor Nader felt an on-going borrowing or deficit situation from either fund was not acceptable. He suggested that if more staff resources were put into following up on potential business leads and less into negotiating the bayfront development they could shorten the tam around time. SUBSTITUTE MOTION: {RindonefNader) to refer the budget back to staff to return in two weeks with a five and ten year perspective of resolution on how to address the issue to get back to zero budgeting. Chairman/Mayor Nader stated he preferred three weeks in order to give staff sufficient time to prepare the report. He could support a deficit budget if the deficit was for the purpose of an investment rather than simply spending the money and never seeing it again. Agency/Council Member Moore stated the City made money off redevelopment because redevelopment had to reimburse the City. Redevelopment only received a portion of the property tax, the City received all the sales tax. If the City did not gamble and stay in debt with redevelopmeat they would still have the same Third Avenue they had 20-30 yearn ago. A lot of redevelopment was not profit making, it improved the City's image and therefore, there were non-tangible results. He felt it more appropriate to have a motion that stated what the Agency/Council wanted in the 1994/95 budget. He did not feel it was as bad as it looked. The budget had already been approvad and more than half of it already spent. Agency/Council Member Herton agreed with Member Moore's comments. If it was sent back to staff she did not feel the five and ten year forecast would change the end result for FY 1993/94. Therefore, she would vote against the motion. VOTE ON SUBSTITUTE MOTION: approved 3-2 with Herton and Moore opposed. Minutes March 22, 1994 Pago 5 Director/City Manager Goss stated there was an election on April L!th and it was their plan to have a short agenda. He questioned if it could be four weeks. Agreed to by the Maker and Second of the Motion. He felt the important thing was for staff to take the time and really present a well thought out plan and forecast. 5.A COUNCIL RESOLUTION 17411 APPROVING CITY SUPPORT FOR A BICYCL1NG EVENT ON JULY 10, 1994, AUTHORIZING A WAIVER OF FEES IN THE AMOUNT OF $3,000 FOR CITY-PROVIDED SERVICES, AND APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND ELII'E RACING, INC.-Elite Racing, a professional sports marketing and management company, has approached the City with a proposal to conduct a large-scale fundraising bicycling event entitled Tour de South County scheduled for 7/10/94. Elite Racing is requesting funding from the City in the amount of $15,000 and staff recommends an amount of $12,000 to help offset the costs of the event which are estimated to be $65,400. Staff recommends approval of the resolutions. (Director of Parks and Recreation) Pulled from the Consent Calendar. B. AGENCY RESOLUTION 1391 APPROVING AGENCY SUPPORT FOR A BICYCLING EVENT ON jULy 10, 1994, AND APPROPRIATING $12,000 IN FY 93/94 PROM REDEVELOPMENT AGENCY FUNDS TO OFFSET OPERATIONAL EVENT COSTS [4/5ths Vote Required] · Greg Cox, 3130 Bonita Road, Suite 200, Chula Vista, CA, representing Elite Racing, stated the title sponsor for the event would be Ranthe del Rey and with that they were planning on h~.¢ing the event be the focus of their kick-off for Phase III of the project. They had committed an extraordinary amount of resources and would be providing shuttle buses for people. A commitment had been made so that every child under the age of ten that was registered for the event, accompanied by an adult, would ride free, That cost component had been included in the revised budget. · Tim Murphy, 10509 Vista Sorrento Parkway, San Diego, CA, representing Elite Racing Inc., utilized overheads to review the proposed race. They were planning on printing 110,000 entry forms. Agency/Council Member Rindone stated the estimated economic benefit to the North County was $600,000 and questioned what the estimate would be for the South County. Mr. Murphy estimated a minimum of $175,000. Agency/Council Member Rindone stated their concern at the previous meeting was in relation ~3 the benefits of a for-profit versus a non-profit organization. It was a one year contract and there were a number of benefits to the City. He recommended that prior to the renewal of the contract the Agency/Council revisit the program to ensure that them was a remm to the City. He hoped that when the bicyclists finished the race there would be an opportunity to obtain feedback. Mr. Murphy stated that had not been planned, but felt they could do a survey as was done for the Noah County race and would do that for the City. RESOLUTIONS 17411 AND 1391 OI~'kERED BY AGENCY/COUNCIL MEMBER FOX, reading of the text was waived, passed and approved unanimously. * * END OF CONSENT CALENDAR * * PUBLIC HEARINGS None Submitted. Minutes March 22, 1994 Page 6 ORAL COMMUNICATIONS None ACTION ITEMS 6. AGENCY RESOLUTION 1392 APPROVING FIRST AMENDMENT TO THE AMENDED PALOMAR TROLLEY CENTER DISPOSITION AND DEVELOPMENT AGREEMENT AND AUTHORIZING CHAIRMAN TO EXECUTE SAME-On 7/23/93 the Agency approved the Amended Palomar Trolley Center Disposition and Development Agreement (DDA) for the development of an approximately 190,000 square foot high- volume retail center in two phases on 18 acres on Palomar Boulevard between Industrial Boulevard and Broadway. This First Amendment to the Amended DDA incorporates specific mutual efforts to provide a day care facility near the Center. The Amendment also clearly restates the understanding of the parties regarding extent of mutual exposure to potential litigation costs associated with condemnation suits and freezes the existing rate of City fees which will be applicable to Phase 2 of the project. Staff recommends approval of the resolution. (Community Development Director) Continued from the meeting of March 15, 1994. Continued to the meeting of April 5, 1994. 7.A COUNCIL RE$OLUTION 17412 APPROVING AGREEMENT WITH ANDERSON & BRABANT, INC. FOR PROVIDING APPRAISAL SERVICES FOR VARIOUS CAPITAL IMPROVEMENT, ECONOMIC DEVELOPMENT AND REDEVELOPMENT PROJECTS--Several capital improvement projects are currently budgeted which require additional right-of-way for construction. To expedite the acquisition process, staff must first appraise the value of the property and proposes to contract for property appraisal services for a period of one year with a renewable clause for an additional year. Staff has evaluated the proposals for providing professional appraisal services and recomanends Anderson & Brebant, Inc. to provide these services. Staff recommends approval of the resolutions. (Director of Public Works) Continued from the March 15, 1994 meeting. Continued to the meeting of April 5, 1994~ B. AGENCY RESOLUTION 1393 APPROVING AGREEMENT WITH ANDERSON & BRABANT, INC. FOR PROVIDING APPRAISAL SERVICES FOR VARIOUS CAPITAL IMPROVEMENT, ECONOMIC DEVELOPMENT AND REDEVELOPMENT PROJECTS 8.A COUNCIL RESOLUTION 17413 APPROVING AN AGREEMENT WITH RYALS & ASSOCIATES FOR PROPERTY ACQUISITION SERVICES IN CONNECTION WITH VARIOUS CAPITAL IMPROVEMENT, ECONOMIC DEVELOPMENT AND REDEVELOPMENT PROJECTS AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SIGN THE ACQUISITION AGREEMENT(S) AND MAKE PAYMENTS FOR RIGHT-OF-WAY OF UP TO $25,000 FOR CONSTRUCTION OF BUDGETED PROJECTS--Several capital improvement projects are currently budgeted which will require additional right-of-way for construction. To expedite the acquisition process, staff proposes to contract for property acquisition services for a period of one year with a renewal clause for an additional year. Staff has evaluated the proposals and recommends Ryals & Associates to provide these services. Staff recommends approval of the resolutions. (Director of Public Works) Continued from the March 15, 1994 meeting. Continued to the meeting of April 5, 1994. B. AGENCY RESOLUTION 1394 APPROVING AN AGREEMENT WITH RYALS & ASSOCIATES FOR PROPERTY ACQUISITION SERVICES IN CONNECTION WITH VARIOUS CAPITAL IMI'ROVEMENT, ECONOMIC DEVELOPMENT AND REDEVELOPMENT PROJECTS AND AUTHORIZING THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO SIGN THE ACQUISITION AGREEMENT(S) AND MAKE PAYMENTS FOR RIGHT-OF-WAY OF UP TO $25,000 FOR CONSTRUCTION OF BUDGETED PROJECTS Minutes March 22, 1994 Page 7 ITEMS PULLED FROM THE CONSENT CALENDAR Items pulled: 4 and 5. The minutes will reflect the published agenda order. OTHER BUSINESS 9. D1RECTOR'S/CITY MANAGER'S REPORT 10. CHAIRMAN'S/MAYOR'S REPORT 11. MEMBERS/COI. INCIL MEMBERS' COMMENTS ADJOURNMENT ADJOURNMENT AT 11: 15 P.M. to the Regular Meeting of the Redevelopmerit Agency on Tuesday, April 5, 1994 at 4:00 p.m., imm~,diately following the City Council meeting, Council Chambers, Public Services Building. Respectfully submitted, BEVERLY A. AUTHELET, CMC, City Clerk Vicki C. 5oder~uist, Deputy~ Clerl~