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HomeMy WebLinkAboutrda min 1990/08/16 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA Thursday, August 16, 1990 Council Conference Room 4:10 p.m. City Hall 1. ROLL CALL MEMBERS PRESENT: Chairman Cox; Members Moore and Malcolm; Member Nader arrived at 4:23 p.m. MEMBERS ABSENT: Member McCandliss STAFF PRESENT: Executive Director Goss; Community Development Director Salomone; Agency Attorney Boogaard; Deputy City Manager Thomson 2. APPROVAL OF MINUTES - 6/12/90, 7/10/90, 7/17/90, 7/24/90 and 8/2/90 MSC (Moore/Cox) approve the minutes of 6/12/90, 7/10/90, 7/17/90, 7/24/9Q and 8/2/90 as submitted. (The vote was 3-~0; Member Nader was not present for the vote.) Due to the number of people present regarding item 7 on the Agenda, Chairman Cox suggested dealing with this item first. 7. REPORT: PRESENTATION OF FINALIST PROPOSALS FOR THE DEVELOPMENT OF THE FORMER WINDMILL FARMS SITE A Request for Proposals for the sale or lease and development of 2.62 acres of Agency-owned land (formerly the Windmill Farms site) was issued in April 1990. Five responses were received. Each proposal received was reviewed and evaluated and three proposals were selected to be presented to the Agency for final consideration. Chairman Cox commented that in view of the fact that only three members of the Agency were present at this time and because the Town Centre Project Area Committee has not yet had the opportunity to review these proposals, he suggested this item be continued to the Agency meeting of September 6. MSC (Cox/Moore) continue this item to the Agency meeting of September 6, 1990 at 7:00 p.m. (The vote was 3-0; Member Nader was not present for the vote.) 8. ORAL COMMUNICATIONS: Mr. Paul Green addressed the Agency. He noted concern with the "national debt" and stated he is concerned with any item that involves appropriating money. Redevelopment Aqenc¥ Minutes -2- Auqust 16~ 1990 Member Malcolm commented that he discussed with the City Manager on this date the possibility of considering looking into the City's financial position and a possible hiring freeze for non- public safety personnel. He noted concern with the fact that major revenue source (sales tax and TOT tax) figures are down. The response he received from the City Manager's Office was that the City is planning on raising fees and increasing taxes. He stated he does not believe that fees should be raised and taxes increased when businesses are having a difficult time. Agenda items 3 and 4 were trailed pending arrival of Member Nader. 5. RESOLUTION 1108 AUTHORIZING THE CITY ATTORNEY TO SETTLE FEDERAL AND STATE LAWSUITS RELATING TO PARKWOODS AT THE VILLAGE CONDOMINIUMS A settlement is being considered of the Federal District Court litigation in Wisconsin Mortgage Assurance Company v. the Redevelopment Agency, et al. and the two companion state court judicial foreclosure proceedings relating to the residential mortgage revenue bonds of 1979 issued by the Agency in connection with the Parkwoods at the Village Condominiums. The proposed settlement would require Trustee action by August 31, 1990 to call the bonds. Approval of the resolution authorizes the City Attorney on behalf of the Agency and the City to approve the settlement if, in the exercise of his discretion, he believes the bondholders and the City and Agency are protected by the terms of the proposed settlement. Agency Attorney Boogaard distributed a revised resolution f~r the Agency's consideration. The revised resolution would give the Agency Attorney the authority to authorize the Trustee to call the Bond Issue if it is felt it could be done without jeopardizing the bond reserve fund. The bond reserve fund is about $528,000; the Agency would not have access to the funds until the year 2011. The approximate present value of that asset is about $100,000. This would authorize him to offer 50% of that present value to effectuate a complete settlement of the case. RESOLUTION OFFERED BY MEMBER MALCOLM, the reading of the text was waived by unanimous consent, passed and was approved. (The vote was 3-0; Member Nader abstained.) 3. RESOLUTION .......... APPROPRIATING ADDITIONAL FUNDS IN THE AMOUNT OF $25,000 FOR REDEVELOPMENT SERVICES BY RSG, INC. At its meeting of November 2, 1989, the Agency approved a contract for redevelopment consultant services with Rosenow Redevelopment Aqenc¥ Minutes -3- Auqust 16r 199u Spevacek Group, Inc. (RSG) for adoption of the new Southwest Redevelopment Project Area. This contract was approved with a not-to-exceed figure of $52,910. Completion of the scope of services by RSG, including adoption of the project area, was originally to occur by August 31, 1990. Because of the extended time period involved in the identification of the project boundaries and review of amended boundaries by the Agency and the Montgomery Planning Committee, it will be necessary to extend the RSG contract completion date to December 31, 1990. It was also recommended to appropriate an additional $25,000 to cover additional contract expenses. Member Malcolm stated he owns a piece of property near the property being considered for inclusion in the Redevelopment Project Area. Therefore, he stated he would not be able to participate in voting on any item regarding this project area. Responding to questions, Carlos Flores, representing RSG, stated there would not be a problem in continuing this item to the Agency meeting of September 6., MOTION MSUO (Cox/Malcolm) c ' ontlnue this item to September 6, 1990. 4. RESOLUTION 1109 APPROVING APPROPRIATION TO PROVIDE AGENCY'S PORTION OF COSTS FOR THIRD AMENDMENT TO AGREEMENT WITH SHUTE, MIHALY AND WEINBERGER TO PROVIDE CONSULTANT SERVICES The Redevelopment Agency previously approved a contract and two amendments thereto with the law firm of Shute, Mihaly & Weinberger in relation to the California Energy Commission proceedings relating to the San Diego Gas & Electric Company Notice of Intent (NOI) regarding a potential Second Power Plant site in Chula Vista and the SDG&E Application for Certification for an Augmentation Project. Legal services greater than those originally anticipated have been required. It was recommended that the Agency approve the resolution appropriating $75,000 to provide the Agency's portion of costs for the Third Amendment to the Contract with Shute, Mihaly & Weinberger. RESOLUTION OFFERED BY CHAIRMAN COX; the reading of the text was waived by unanimous consent, passed and was approved unanimously. Member Malcolm commented that the Coastal Commission is under severe budgetary restraints. In order to do an adequate job of addressing all of the issues relating to the SDG&E matter, the Coastal Commission is desirous of hiring an expert on Redevelopment Aqenc¥ Minutes -4- Auqust 16, 1990 environmental problems associated with this type of project. The cost for hiring this individual is $6,000. The same work would be applicable to both the City of Chula Vista and the City of Carlsbad, therefore, the cost would be about $3,000 for each city. Immediate action is necessary and he suggested directing staff to bring back on Tuesday, August 21, a resolution to proceed on the hiring of this individual and appropriation of funds in order to oppose the SDG&E project. Executive Director Goss stated because the requested funds are within his administrative authority, he has directed staff to follow through on this matter. 6. REPORT: TOWN CENTRE PROJECT AREA COMMITTEE'S RECOMMENDATION FOR APPOINTMENT TO VACANT SEAT There is one vacant seat on the Town Centre Project Area Committee (PAC). Senior Community Development Specialist Buchan reported on the action taken by the PAC at their meeting of this date. The PAC recommended as follows: 1. The Agency appoint an active member of the Downtown Business Association to be a regular voting member of the Town Centre J Project Area Committee. 2. The Agency appoint the President of the Downtown Business Association and a representative of the Chula Vista Shopping Center as ex-officio members of the PAC. 3. The Agency reconfirm that the Town Centre Project Area Committee members will serve four-year staggered terms of office. MOTION MSUC (Cox/Nader) direct staff to bring back a resolution to modify the By-laws of the Town Centre Project Area Committee to specify that two ex-officio positions be created, one for a representative of the Downtown Business Association and one for a representative of the Chula Vista Shopping Center; clarify that the terms for the members of the Project Area Committee are for four-year staggered terms with a two-term limitation. 10. DIRECTOR'S REPORT: None 11. CHAIRMAN'S REPORT: a. Conditions for Disbursing Budgeted $25,000 to Sail America/Little America's Cup Redevelopment Aqenc¥ Minutes -5- Auqust 16, 1990 Deputy City Manager Thomson distributed a copy of a proposed Agreement for Sailing Activities Promoting Chula Vista's Bayfront between the City of Chula Vista, the Redevelopment Agency and Sail San Diego. Chairman Cox noted that $25,000 was appropriated by the Redevelopment Agency in this year's budget for this matter. The question at this point is how those funds should be disbursed. Timing is an issue. Mr. Thomson stated that in the fiscal year that just ended, $25,000 was appropriated by the Redevelopment Agency and $50,000 appropriated by the Port District. That money was lumped together for a total of $75,000 that was administered by the staff of the Redevelopment Agency. That was for a one year period and was on a reimbursement basis for activities that promoted the Bayfront including the regatta that was held recently and various promotional activities. This particular contract is different in nature in that this is between the Redevelopment Agency and Sail San Diego;~it does not involve the Port District. The contract requires the signature of the City Manager, however, staff desires the Agency's policy direction on the issues. Mr. Thomson pointed out the contract is for a six year period. He further highlighted the conditions in terms of scope of services on pages 1 and 2 of the contract. It was pointed out that the payment of the $25,000 would be made immediately after the contract is executed as opposed to spread out over the six year period of the term of the contract. Responding to questions of Member Nader, Mr. Thomson stated the previous contract was different in the sense that it did not allow any reimbursement for any funds that went toward either the building of the catamaran or involvement in the race itself. It was only for activities that promoted the Bayfront. The proposed contract is more speculative in nature. It would go essentially towards helping prepare for the race. If Sail San Diego is successful in the race, having the defense of Little America's Cup here would be a significant benefit to the City. There is also a benefit in having the catamaran available at the proposed Nautical Activity Center. Member Nader suggested adding a provision to the contract that the event is to be held in this locale or that there would be certain uses of the Chula Vista facilities for the defense of the Little America's Cup if the Chula Vista Yacht Club wins the event. He would like to have staff add language to incorporate that understanding in the contract. Redevelopment Aqenc¥ Minutes -6- Auq~st 16~ 1990 MSUC (Cox/Moore) authorize the Executive Director to modify the agreement to include the provision suggested by Member Nader and authorize the Executive Director to sign the agreement. 12. MEMBERS' COMMENTS: None. ADJOURNMENT at 4:50 p.m. to Tuesday, August 21, 1990 following the City Council meeting scheduled to begin at 6:00 p.m. Chris ~alomone Community Development Director Minutes~Minutel8