HomeMy WebLinkAboutrda min 1994/06/21 MINUTES OF AN ADJOURNED SPECIAL MEETING AND REGULAR MEETING
~ !~ OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
·
Tuesday, June 21, 1994 Council Chambem
10:13 p.m. Public Services Building
CALL TO ORDER
1. ROLL CALL:
PRESENT: Members Fox, Moore, Rindone, and Acting Chairman Hotton
ABSENT: Chairman Nader
ALSO PRESENT: John D. Goss, Dh'ector; Bruce M. Boogaard, Agency Attorney, and Beverly A.
Authelet, City Clerk
2. APPROVAL OF MINUTES: May 3, 1994; May 23, 1994; May 26, 1994; and June 1, 1994
MSC (Horton/Moore) to approve the minutes of May 3, 1994; May 23, 1994; May 26, 1994; and June 1, 1994
as presented. Approved 4-0-1 with Nader absent.
CONSENT CALENDAR
(Items pulled: none)
CONSENT CALENDAR OF/~'ERED BY ACTING CHAIRMAN HORTON, reading of the text was waived,
imssed and approved 4-0-1 with Nader absent.
3. WRITTEN COMMUNICATIONS: None submitted.
4. RESOLUTION 1410 AMENDlNG THE TOWN CENTRE I SIDEWALK CAFI~ POLICY-
In 1982 the Redevelopment Agency approved the establishment of the Town C~ntre I Sidewalk Caf6 Policy. Since
adoption of the policy, only a few sidewalk eaf~s have been set up for short periods of time. With the idea of
encouraging restaurant, coffee shop, and bakery operators to set up sidewalk caf6s, staff has reviewed the existing
policy. The proposed amendment to the existing policy is be'rag presented for consideration and approval. Staff
recommends approval of the resolution. (COmmqlfity Development Director)
* * END OF CONSENT CALENDAR * *
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
None submitted.
ORAL COMMUNICATIONS
None
ACTION ITEMS
5. RESOLUTION 1390 ADOPTING THE REDEVELOPMENT AGENCY BUDGET FOR
FY 1993-94 AND APPROPRIATING FUNDS THEREFOR-ITEM #5 IS AN ADJOURNED SPECIAL
Minutes
June 21, 1994
Page 2
MEETING ITEM--The FY 1993-94 Redevelopment Agency Budget was reviewed as part of the City budget
approval process. As the Redevelopment Agency is a separate legal entity, it is necessary to approve the budget
separately as required by California Commtluity Redevelopment Law. The formal Agency adoption of the budget
had been delayed in order to determine the fill]. ilnpact of State budget resolutions and to complete the evaluation
of staffing needs for the Economic Development function in the Cornmlnlity Development Department as directed
by City Council during and subsequent to the City's budget review process. Continued from the meeting of
6/7/94. Staff recommends approval of the resolution. (Administration)
Member Moore questioned if the budget included salaries, benefits, promotions, etc. for each of the individual
projects.
Mr. Goss responded thatwas correct. The Commtmity Development budgetand Redevelopment budget were sliced
up by project areas. Each program listed was an allocation of the overall budget. The major problem was that they
were suffering from an on-going deficit due to State budget take aways and a reassessment at Rohr in 1989/90.
Staff initially though the RDA budget would go into the red for the current fiscal year, but in reviewing the material
and overall humben it became clear the Agency would not go into the red in the current fiscal year. It had been
recommended that the 1993/94 budget be adopted and then look at the issue of the deficit for the 1994/95 budget.
He had submitted a report which included broad policy issues regarding the deficit. He then reviewed those options.
Specific recommendations were: 1) the 1994/95 budget be adopted by disposing of Agency owned propefiies in
order to reduce long term debt and that the approach be revisited; 2) update annually to chart the financial direction
of the Agency; and 3) revise the investment policy to permit investment which would have a cap, i.e. not to exceed
8% of the investment pool. He was proposing that next years Agency budget reimburse the low/moderate income
housing funds so there would not be a loss. He felt the proposal would lead toward a reduction of the expenditures
of the RDA budget without impacting its ability to be effective. Staff had tried to be creative in dealing with a
difficult problem.
Member Rindone stated he was pleased that two steps had been taken, i.e. recognition that there was a problem and
development of a proposal to address the issue. He questioned how much the debt service would be reduced.
Lyle Haynes, Principal Community Development Specialist, responded that the proposal called for a reduction of
the debt service on the 1986 tax allocation bonds of approximately $1.422 million for the next four to four end one-
half years. Cumulativnly it was approximately $6.5 million in debt service avoidance.
Member Rindone referred to the seven properties listed on page 7, last column, and questioned if they were the
current fair market values.
Chris Salomone, Director of Community Development, responded that it was a current market value. On the tirst
two properties staff felt it was an honest market value. On the Port District properties, they were being appraised
by the Port and at their original land use, i.e. paddand, therefore, staff falt they were accurate numbers with that
understanding. If the hayfront did move forward it would ultimately be parkland and staff felt that was a good
reason to dispose of the properties. On Fuller Ford and Southbay Chevrolet, staff was being conservative as they
felt they were worth more than that and the RDA had paid more than that in an up market.
Member Rindone stated the Marina Motor Hotel end 965 "F* Street were proposed to be sold to the Port and
questioned if that would be feasible within the next twelve months.
Mr. Goss felt it would be feasible, but it would take wok and cooperation with the Port Director. The Port had
put money in th~tr five year CIP to accomplish acquisition and therefore, the money needed to be moved in the
COming tiga] year,
Member Rindone questioned if there were any environmental concerns on the fu'st property and, if so, if the fair
market value reflected it.
Minutes
June 21, 1994
Page 3
Mr. Salomone responded that quite a bit of analysis had been done on the property end staff felt it was en accurate
number.
Member Rindone questioned access to the property.
Mr. Salomone responded that it had not beon determined and was an outstanding issue. Access would have to ha
through an ess~ment through Mr. Barkett's property.
Member Rindone questioned if it was a different purchaser, other than the investment fired proposed, if the figures
for the three properties would hold.
Mr. Salomone responded that if the City went out to the market he did not feel they could get those prices due to
the cun'ent market. He was concerned that even though the numbers were conservative they would not hold.
Member Rindone stated he did not want to get a false sense of security and find that the proposed program would
not work. He supported the City Manager's recommendation that the program be reviewed annually which would
help to address some of his concerns. The other major issue he had concern with was the investment fired and
questioned if anyone else was doing it.
Mr. Goss responded the City had an investment pool that was currently making investments. The change would
be that the investment pool, up to an 8-10% cap, could invest in real property that the City owned and felt had good
value.
Mr. Salomone stated staff had not conducted an investigation of other agencies or cities regarding those types of
transactions.
Member Rindone questioned what percentage of the investment fund was used to purchase bonds and assets.
Susan Merrill, Interim Finance Administrator, responded that the pool investment varied ~'om between $80 and $90
million. The main percentage was approximately $25 million which was in LAIF. The remainder was in
certificates of deposit with other institutions. The main portfolio was very cens~rvstive and in line with the City's
investment policy.
Member Rindone questioned how much of the investment pool was being invested.
Ms. Merrill responded that approximately 99% was invested on a daily basis.
Member Rindone questioned if staff was proposing to convert any of those investments by converting the non-
productive assets and using those funds for the purchase of properties.
Ms. Menill stated staff would be taking a percentage from the investment pool to purchase those assets from the
RDA. The investment policy would have to be changed end the City/Agency attorney was Ionking at the issue.
Member Rindone stated he was concerned with the legality of the investment fund concept and requested that staff
return with more information. He questioned if the Agency could adopt a plan to try to se~ if the first three
properties were marketable.
Mr. Goss stated the Agency had been presented with a concept on how to work toward balancing the RDA budget
and address the deficit. Staff could see if they could get the listed values on the threo properties.
Member Rindone felt the Agency should review the plan bi-annually for the fist year and then yearly after that.
Mr. Goss stated that as the plan was being implemented it would have to be brought back to Council for approval
end there would be an opportunity to review the progress of the program.
Minutes
June 21, 1994
Page 4
Member Fox expressed his concern regarding the need for a Community Development Specialist 11 and requested
that a review of the department be done several months al~er the hiring of the Administrative Secretary with an
evaluation of how the staffing was working out.
MSC (Rindone/Horton) to adopt Resolution 1390 and continue Resolution 1411 to the meeting of 7/12/94 and
dire~t staff to provide a I~gal r~view of the proposed hiv~,'lment fund and analysis of the in'st three properties
regarding curcent market value and how dose the assesinherits wife. Approved 4-0-1 with Nader absent
RESOLUTION 1390 OF'Wla/ED BY MEMBER RINDONE, reading of the text was waived, passed and
approved 4-0-1 with Nader absent.
6. RESOLUTION 1411 ADOPTING THE REDEVELOPMENT AGENCY BUDGET FOR
FY 1994-95 AND AFFROPRIATING FUNDS THEREFOR-- ITEM/6 IS A REGULAR MEETING ITEM-
The FY 1994-95 Redevelopanent Agency Budget was reviewed as part of the City budget approval process. As the
Redevelopment Agency is a separate legal entity, it is necessary to approve the budget separately as required by
California Community Redevelopmerit Law. Staff vw. ommends approval of the resolution. (Administration)
Resolution 1411 discussed with Item #5. Continued to the 7/12/94 meeting.
rrEMS PULLED FROM THE CONSENT CALENDAR
Items pulled: none. The minutes will reflect the published agenda order.
OTttER BUSINESS
7. DIRECTOR'S REPORTt'S) - None
8. CHAIRMAN'S REPORT(S} - None
9. MEMBERS' COMMENTS - None
ADJOURNMENT AT 11:06 P.M. to the Regular Redevelopment Agency Meeting on July 19, 1994 at 6:00 p.m.,
immediately following the City Council meeting, in the City Council Chambers.
Respectfully submitted,
BEVERLY A. AUTHELET, CMC, City Clerk
by: Vicki C. Soderquist, Deputc~y~y Clerk