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HomeMy WebLinkAboutrda min 1994/03/15 CC MINUTES OF A JOINT MEETING OF THE REDEVELOPMENT AGENCY/ CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, March 15, 1994 City Council Chambers 10:47 p.m. Public Services Building CALL TQ ORDER 1. ROLL CALL: PRESENT: Members/Council Members Hotton, Fox, Moore, Rindone, end Chairran./ Mayor Nader ALSO PRESENT: John D. Goss, Director/City Manager; Bruce M. Boogaard, Agency/City Attorney; end Beverly A. Authelet, City Clerk 2. APPROVAL OF MINUTES: March 1, 1994 CONSENT (;ALENDAR (Item pulled: 5) MSC (Horton/Fox) to continue the balance of the agenda,~ as it was not tithe sensitive, to the meeting of March 22, 1994 as it was past 10:30 p.m. Approved 4-1 with Moon opposed. 3. YVP, ri'rEN COMMUNICATIONS: None Submitted. 4. AGENCY RESOLUTION 1390 ADOPTING THE HEDEVELOPMENT AGENCY BUDGET FOR FY 1993- 94 AND APPROPRIATING FUNDS THEREFOR-The FY 1993-94 Redevalopment Agency Budget was reviewed as part of the City budget approval process. As the Redevalopment Agency is a separate legal entity, it is necessary to approve the budget separately as required by California Community Redevelopmeat Law. The formal Agency adoption of the budget had been delayed m order to determine the full impact of State budget resolutions end to complete the evaluation of staffing needs for the Economic Development function in the Community Development Department as directed by City Council during end subsequent to the City's budget review process. Staff recommends approval of the resolution. (Community Development Director) [4/5ths Vote Required] Continued to the March 22, 1994 meeting. 5.A COUNCIL RESOLUTION 17411 APPROVING CITY SUPPORT FOR A BICYCLING 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 ELrFE RACING, INC.--Elite Racing, a professional sports marketing end management company, has approached the City with a proposal to conduct a large-scale fundraising b/cycling 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 end staff recommends en 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 end Resmation) Pulled from the Consent Calendar. B. AGENCY RESOLUTION 1391 APPROVINGAGENCYSUPPORTFORABICYCLINGEVENTONJULy 10, 1994, AND APPROPRIATING $12,000 IN FY 93194 FROM REDEVELOPMENT AGENCY FUNDS TO OFFSET OPERATIONAL EVENT COSTS [4/5ths Vote Required] Minutes March 15, 1994 Page 2 Council/Agency Member Rindone questioned if it was a non-profit promoter end what the basis was for using tax dollars for a profit-making promoter. Jess Valenzuela, Director of Parks & Recreation, responded that it was not a non-profit promoter. Chris Salemone, Director of Community Development, stated the basis for the City to be involved in the event was the same as for being involved in the Arturo Barties Race, i.e. City staff was not capable of going out and getting the sponsorships, riderships, etc. In effect what the City was doing was hiring a promotional agency to put on an event that would generate economic development, attract people to the City that would not normally come on an annual basis, end created exposure through the media in ways the City was not able to do which would reverberate economically. Mayor/Chairman Nader stated the staff report indicated that $5,000 would be donated to a youth organization, but the letter from Mr. Murphy stated a guaranteed minimum of $5,000 would be donated. Tim Murphy, representing Elite Racing, responded they wanted to raise more end would continue to improve on an annual basis. They had fixed costs of over $50,000 and it was hard to say in the beginning what it would During the second year of the Arturo Barrios Race they lost money, but the charity still received their money. Mayor/Chairman Nader stated their projected costs indicated a potential loss of $400 net on the event including the $5,000 contribution from charity. He questioned if the projections were based on a certain number of participants in the event. Mr. Murphy stated that was enrrect end was also based on a certain number of incremental sponsorships. Mayor/Chairman Nader stated if there were more that the anticipated number of participants if the $400 loss could turn into a profit. Mr. Murphy responded that was correct. Mayor/Chairman Nader questioned if that happened if there would be a corresponding increase in the charitable contribution. Mr. Murphy responded that was correct. The easiest way would be to set aside an incremental amount, i.e. so much per participant that would go to the charities. He would be agreeable to that. Council/Agency Member did not feel there was any debate that it would b~ a premier activity for the City, but he was wrestling with the ethical question of using taxpayer dollars for the support of a profit-malcing promoter. He felt it would set a precedent for other promoters. Option 3, page 5-4, could accomplish both efforts; not only have the event but eliminate any reality or perception that tax dollars were finding a profit-making company. Staff should be directed to provide the in-kind services and seek the balance of the $12,000 from additional sponsors. MS CRindoneatorton) to approve Option 3, in-kind sexvices support only ($3,000); no additional funding. Direct staff to discuss with Elite Racing the possibility of obtaining the $12,000 from its current sponsors, or additional outside sponsors. Council/Agency Herton stated there was a tremendous benefit to some of the developers in the eastern territories of the City by having the race. She wanted to see staff or Elite Racing contact the Baldwin Company, EastLake, and other developers in the area regarding sponsorships. It was a family event and she felt the concept was exciting and a great way to promote the City. Mayor/Chairman Neder stated the fact that Mr. Murphy represented Elite Racing, a for-profit adventure, did not in and of itself preclude City support if there was a return on that investment for the public. The City contracted with for- profit vendors all the time. It was done with the justification that the City was getting something for it Minutes March 15, 1994 Page 3 that was worth the expenditure of tax dollars. The justification was the economic impact on the City and the contribution of fun& to the youth charity. The appearance of spending $12,000 to get a $5,000 remm did not appear to be a fantastic investment, but the principal of using a for- profit firm to put on an event to benefit the City did not necessarily bether him. He felt he could support more than Option 3 if it was tied to what the City expected to get hack. City Manager/Director Goss suggested that as an alternative the City submit $6,000 and challenge the other developers to match it. Council/Agency Member Hort~n suggested that Option 3 be tried and wait to see what the outcome was. Council/Agency Member Rindone stated it was an event he wanted to see in the City and it would have benefits other than the dollar amount, but if they could raise sponsors and not use tax dollars then it would be an even more improved situation. He felt that should be explored first. Greg Cox, representing Elite Racing, stated the Artare Barties Race was a partnership between the City, the Port District, and Elite Racing to bring a world class event to the City. It would be a first year event and there would be a lot of capital costs that may not be there in future years. They had solicited support from some of the people in the comm~Hjty that was predicated on it being a partnership with the City. The Star News had indicated they would commit a media package which was probably worth $30,000 in advertising. The McMillin Company had committed to be the title sponsor for the event, but had also made some constraints, i.e. any child under ten that was accompanied by an adult would be able to ride free. That would come at additional costs to the event with every rider that participated in the program. Sharp Community Hospital agreed to donate $2,500 and they were working with other companies. The first year was the big risk and if there was not that much support Mr. Murphy was still on the line for a significant amount of money, upwards of $50,000. They felt that because McMillin agreed to be the title sponsor and their tieing it into the opening of SPA IlI in the Rancho del Rey project there would be additional advertising, special bicycle related handouts to participants, etc. The support of the City was critical because it was the first year. He felt there was a real advantage to the City from the marketing standpoint. Council/Agency Member Fox felt if the Council/Agency was going to be asked to sponsor an event for a for-profit orgamzation they should be informed that the organization was for-profit. Council/Agency Member Moore felt it was the benefit was the promotion of the City and the effort was there. The amateurs and non-profit entities could not put on the same type of event or media exposure. Many times the only way to promote the City, with guarantees, was through a profit-making organization. Council/Agency Member Herton stated she did not have a problem with it being a for-profit organization as they had done a very good job with the Artare Battles Race. She originally felt confident that the monies could be raised from the other developers, however, if in fact McMillin was the major sponsor and using the race for their open house to promote their product she was not sure the other developers in the eastern territories would want to support it. In light of that, she would reconsider her position on the item. Mr. Murphy stated the City would get back a lot more than the $5,000 donation to a youth charity. It would be an event that had a first year budget of $65,000 and most of that was in marketing, printing, and advertising. They were bringing to it nine years of experience with Tour de North County which was the single best bicycle tour in all of Southern California. Council/Agency Member Herton questioned if staff could identify any other way, other than cash funds, to off-set the City's participation in the event. Mr. Valenzuela responded that staff felt they had identified as much as they could regarding staff support. Minutes March 15, 1994 Page 4 SUBSTITUTE MOTION: (Herton/Fox) adopt the financing alternatives in Option 1, Redevdopment Agency funding support in the amount of $12,000, as requested by Elite Racing, and in-kind services support for police services and equipment, and staff support from Parks & Recreation ($3,000). Council/Agency Member Pdndone questioned if staff had talked with Elite Racing the possibility of obtaining $12,000 from current sponsors or outside additional sponsors as included in Option 3. Mr. Valenzuela stated that had not been done. Council/Agency Member Rindone question if the item had been brought to Council without that having been done first. Mr. Valenzuela stated it was an option to direct staff to do that. Council/Agency Member Rindone stated he supported the event in the City and them were a number of benefits. He felt all options should be explored. If staff had come before the Council/Agency after doing that end stated th6y had been unsuccessful he enuld accept it. He was disappointed that had not been done. Council/Agency Member Fox stated the All3 indicated McMillin was donating $20,000 and the hospital was donating $2,000 end he questioned how it was reflected in the presented budget. Mr. Murphy responded the budget had been submitted before there were eny cash sponsors. At that point they did not have a penny but were willing to go ahead. They had been working very hard on soliciting sponsors as per Option 3. Council/Agency Member Fox stated he was prepared to vote for the motion becanse it was a July event end he felt the benefits were there for the City end felt it would be an un-going effort. The benefits to the City were not just for the at-risk youth but intangibles as well. He wanted to vote for the motion, but also wented to look at an accurate budget. He questioned if the item could be enntinued one week so Mr. Murphy could return with en amended budge. Mr. Murphy stated he would do that. He would not be able to attend the meeting as he had a presentation before the Cadsbad City Council. What they had signed was $20,000 in spoasors~ Something they did in all their events even though it had not been publicized was to provide free entries for children through the Parks & Recreation Department, Boys & Girls Club, YMCA, and school system. It was a working budget. They had also eommltW. d in advertising $3,000 over the $7,000 that was in the budget on 11/1/93. They were taking all the financial risk and making a guarantee to the youth charity. Council/Agency Member Herton stated they had identified their sponsors and questioned if their request was approved in concept, end they received more sponsors for the event, if they enuld off-set the amount the City was putting into the race. Mr. Murphy stated that was not the way it generally worked. It had been his practice that when more sponsors were obtained each year for an event he would invest the money back into the event which resulted in a premier event. That was what he would do with the proposed event. He had a track record of not taking the sponsor's or city's money and putting it in his pocket, but of building events and creating value for the commumty and city. Council/Agency Member Herton questioned whether the sponsors end amounts were disclosed. Mr. Murphy stated that was generally not done, but he would share everything on the budget. If the City wanted to say they would give him the money, and he give the City the budget after the event, have the City audit the budget and if they felt he had made a profit and wented more of it back, he would be happy to do it that way. It was a first year event end was tough to put on. All the in-kind services were not reflected in the budget. The City Minutes March 15, 1994 Page 5 j would be having over a $100,000 event in the first year for a $12,000 investment with $5,000 for a youth charity. SUBSTITUTE MOTION: (Fox) approve Option 1, in concept, with staff returning next week with the item. Mr. Murphy is to submit a working budget for Council/Agency review. Mayor/Chairman Nader questioned what was meant by a working budget. Council/Agency Member Fox stated he did not went an audited budget, but there were substantial deviations between the A113 and the proposed budget, i.e. the sponsorships and the way they would be charging for children. He wented those differences to be resolved. MOTION SECONDED: (Nader) Council/Member Rindone stated the merit of the event was not the issue. Staff was saying that other sponsors had not been solicited and the promoter was saying they had. He was not sure what the case was. He felt the Council/Agency had a responsibility to make sure they had gone the extra mile to obtain all outside sponsors to cover it. He was not expecting the promoter to take a loss but if they had not tried to obtain all the sponsors possible the Council/Agency had not done their homework. If they could not obtain other sponsors then the item should be brought back for consideration. Mayor/Chairman Nader stated the motion would include information on potential additional sponsorships. VOTE ON SUBSTITUTE MOTION: approved 4-1 with Rindone opposed. * * END OF CONSENT CALENDAR * * PUBLIC HEARINGS None Submitted. 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 appreved 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 Pglomar 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 wiB be applicable to Phase 2 of the project. Staff recommends approval of the resolution. (Community Development Director) Continued to the meeting of March 22, 1994. Minutes March 15, 1994 Page 6 7.A COUNCIL RESOLUTION 17412 APPROVING AGREEMENT WITH ANDERSON & BRXBANT, INC. FOR PROVIDING APPRAISAL SERVICES FOR VARIOUS CAPITAL IMPROVEMENT, ECONOMIC DEVELOPMENT AND REDEVELOPMENT PROJECTS-Severel capital improvement projects axe 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 recommends Anderson & Brabant, Inc. to provide these services. Staff recommends approval of the resolutions. [Director of Public Works) B. AGENCY RESOLUTION 1393 APPROVING AGREEMENT WITH ANDERSON & BRABANT, INC. FOR PROVIDING APPRAISAL SERVICES FOR VARIOUS CAPITAL IMPROVEMENT, ECONOMIC DEVELOPMENT AND REDEVELOPMENT PROJECTS Continued to the March 22, 1994 ruee~ng. 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) B. AGENCY RESOLUTION 1394 APPROVING AN AGREEMENT WITH RYALS & ASSOCIATES FOR PROPERTY ACQUISITION SERVICES IN CONNECTION WITH VARIOUS CAPITAL IMPROVEMENT, ECONOMIC DEVELOPMENT AND REDEVELOPMENT PROJECTS AND AUTHORIZING THE EXECUTIVE DIRECTOR OR HIS DESIGNlEE TO SIGN THE ACQUISITION AGREEMENT(S) AND MAKE PAYMENTS FOR RIGHT-OF-WAY OF UP TO $25,000 FOR CONSTRUCTION OF BUDGETED PROJECTS Continued to the March 22, 1994 meeting. ITEMS PULLED FROM THE CONSENT CALENDAR Item pulled: 5. The minutes will reflect the published agenda order. OTHER BUSINESS 9. DIRECTOR'S/CITY MANAGER'S REPORT - Continued to the March 22, 1994 meeting. 10. CHAIRMAN'S/MAYOR'S REPORT - Continued to the March 22, 1994 meeting. · , J Minutes March 15, 1994 Page 7 11. MEMBERS/COUNCIL MEMBERS' COMMENTS - Continued to the March 22, 1994 meeting. ADJOURNMENT AT 11:25 P.M. to the Regular Meeting of the Redevelopment Agency on Tuesday, April 5, 1994 at 4:00 p.m., immediately following the City Council meeting, Council Chambers, Public Services Building. Respectfully submitted, BEVERLY A. AUTHELET, CMC, City Clerk Vicki C. Sode~quist, Dep~ Ci~ Clerk