91-0702_CRA_Minutes_Regular MeetingJULY 2, 1991
REGULAR MEETING OF THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY
BOARD OF DIRECTORS
The Regular Meeting of the Board of Directors of the City of San
Juan Capistrano Redevelopment Agency was called to order by
Chairman Buchheim at 9:45 p.m. in the City Council Chamber.
ROLL. CALL: PRESENT: Lawrence F. Buchheim, Chairman
Gil Jones, Vice Chairman
Kenneth E. Friess, Director
Jeff Vasquez, Director
ABSENT: Gary L. Hausdorfer, Director
STAFF PRESENT: Stephen B. Julian, Executive Director; Thomas
Tomlinson, Acting Deputy Director; Jeffrey C. Parker, Acting
Agency Secretary; David Bentz, Finance Officer; Thomas P. Clark,
Agency Counsel; George Scarborough, Assistant City Manager; Cheryl
Johnson, City Clerk; William Huber, Director of Engineering and
Building Services; Ronald C. Sievers, Director of Public Lands and
Facilities; Al King, Director of Community Services; Nancy
Bernardi, Recording Secretary.
MINUTES
Regular Meeting of June 18 1991:
At the time of City Council approval of the Minutes and prior to
Director Hausdorfer's departure at 9:07 p.m., it was moved by
Chairman Buchheim, seconded by Director Hausdorfer, that the
Minutes of the Regular Meeting of June 18, 1991, be approved as
submitted. The motion carried by the following vote:
AYES: Directors Friess, Hausdorfer, Jones,
Vasquez, and Chairman Buchheim
NOES: None
ABSENT: None
Adjourned Regular Meeting of June 25, 1991:
At the time of City Council approval of the Minutes and prior to
Director Hausdorfer's departure at 9:07 p.m., it was moved by
Chairman Buchheim, seconded by Director Hausdorfer, that the
Minutes of the Adjourned Regular Meeting of June 25, 1991, be
approved as submitted. The motion carried by the following vote:
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AYES: Directors Hausdorfer, Jones, Vasquez,
and Chairman Buchheim
NOES: None
ABSTAIN: Director Friess
ABSENT: None
PUBLIC HEARINGS
1. ADOPTION OF FISCAL BUDGETFOR THE FIVE YEARS BEGINNING
JULY 1, 1991. AND ENDING JUNE 30. 1996 CONTINUED FROM
JUNE 25, 19 91) ( 3 3 0 .7 0)
Proposal:
Joint public hearing with the City Council to consider the
proposed City and Community Redevelopment Agency Operating
Budgets.
Written_ C mmu-nication:
Report dated July 2, 1991, from the Assistant City Manager,
forwarding the proposed budget for consideration. The report
noted that $50,700 had been set aside for allocation to
community organizations.
Mr. Julian made an oral p; sentation, noting that the budget
addressed priorities set _�y °"..:ncil. Mr. Julian recommended
that the budget be adopted a�< proposed, including the funds
set aside for community organizations, but that specific
allocations to community organizations be withheld for 15 to
30 days to allow staff time to determine whether additional
revenue sources existed.
Public Hearing:
Notice having been given as required by law, Mayor Friess
opened the Public Hearing, and the following persons respond-
ed:
(1) Joan Scarantino, 27441 Ortega Highway, received clarifi-
cation relative to the operating budget and the various
budgets of the City, and was advised that the City had
a reserve fund of approximately $1,000,000.
The following persons responded in favor of funding for th:.
Center for Decorative Arts:
(2) Jeff Du Charme, P.O. Box 2827, Capistrano Beach.
(3) Mary Rowe, 26301 Ganeza, Mission Viejo, tenant in the
Mercado Village.
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(4) Molly Burke, Dana Point, docent for the Center.
(5) Jan Siegal, 27201 Calle Delgado, docent for the Center.
(5)
Gep
Durenberger,
director for the Center.
(7)
Tom
Breen, 28041
Paseo Aldanza.
There being no further input, the hearing was declared closed
with the right to reopen at any time.
Board Discussion:
Director Hausdorfer voiced his support for funding for the
Decorative Arts Center and the San Juan Institute. He stated
that the funding need not be permanent but should be included
in the proposed budget and suggested that the organizations
work with City staff toward their independence.
Director Hausdorfer left the meeting at 9:07 p.m. The
meeting was recessed at 9:07 p.m. and reconvened at 9:12 p.m.
Director Vasquez spoke in opposition of continued funding
for the Center for Decorative Arts and the San Juan
Institute, citing the amount of debt to the. City these
subsidies have accumulated. He disagreed that these cultural
services should be funded regardless of other needs in the
City and desired ways to direct dollars to real needs in the
community. He recommended that staff study alternative
sources for funding so that the two groups could be
completely phased out of the City budget, acknowledging the
City's commitment to the Decorative Arts Center due to the
purchase agreement.
Director Vasquez also requested information regarding the
Management Incentive Performance Pay Program and funds
budgeted for that item. Mr. Julian explained that the merit
pay was based on the attainment of goals and objectives that
would be of benefit to the City. He further noted the
program was part of the negotiated agreement with the
employees. Director Vasquez suggested it would be worth
Council consideration whether the program can be afforded
this year, particularly the 10% pay for Executive employees,
noting it was a significant amount of money.
Director Jones concurred with Director Vasquez' concerns but
stated that incentive programs are important. He felt the
percentages were not out of proportion and suggested that
the item could be discussed at a later date. He felt very
strongly that the Decorative Arts Center and the San Juan
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Institute should meet their obligations under the agreements
made with the City.
Director Friess stated that it was always the intent that the
City be a beginning patron of both organizations but that
they ultimately operate independently; deciding when that
independence should be was the question. He noted that in
the case of the San Juan Institute, it would be appropriate
to not support the lease when it expires in two years time.
However, there is a purchase agreement with the Decorative
Arts Center that needs to be considered. He noted that Mr.
Durenberger had included a clause in his will returning the
Note to the City upon his death.
Director Jones felt that the two organizations should be ren
as a business under their agreements with the City.
Approval of _ Operating Budget:
It was moved by Chairman Buchheim, seconded by Director
Jones, that the following Resolution be adopted approving a
five-year fiscal program and Agency operat-ng budget, but
excluding the Capital Improvement Program at this time, with
the provision that the budget be amended as necessary in the
future:
RESOLUTION NO. CRA 91 -7 -2 -1, --AD PTION OF FISCAL
BUDGET 1991-96 - A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, ADOPTING A FIVE-YEAR FISCAL
PROGRAM AND OPERATING BUDGET AND AUTHORIZING
EXPENDITURES AND APPROPRIATIONS RELATED THERETO
Year Ending June 30 Authorized Exaenditures
1992 $11,107,220
1993 $4,895,822
1994 $8,470,519
1995 $9,372,244
1996 $4,745,384
The motion carried by the following vote:
AYES: Directors Jones, Friess, 'asquez,
and Chairman Buchheim
NOES: None
ABSENT: Director Hausdorfer
Allocation of funds for community organizations and the
Capital Improvement Program will be scheduled for considera-
tion at the meeting of July 16, 1991.
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It was moved by Director Vasquez that staff be directed to
prepare a list of alternative ways to reduce the long-term
expenses with regard to the Center for Decorative Arts and
the San Juan Institute. Discussion ensued with Director
Vasquez stating his preference that the Center purchase its
building and facilities and the San Juan Institute pay its
own way. Mayor Friess noted that the San Juan Institute had
agreed to pay $1,000 per month rent beginning this fiscal
year and Mr. Durenberger had requested a meeting. Director
Jones concurred but felt it was unrealistic to demand funds
at this time from these organizations. He suggested that
ways to generate revenue from the two organizations could be
reviewed. Director Friess felt that the City should not back
out of its agreements because of the administrative decisions
made by the City Manager to waive and defer the Center's rent
to the City. The motion was amended to require the
Decorative Arts Center to live up to the terms of their
agreement and pay past due rents of $88,833. The motion died
for lack of a second.
It was a consensus of the Board that staff be directed 'to
meet with the Board of Directors of the Center for Decorative
Arts to resolve the City's concerns and to provide a written
report clarifying the administrative decisions made regarding
the waiver and deferral of rent for the Center.
BOARD ACTIONS
1. APPROVAL OF WARRANTS 300.30
It was moved by Director Friess, seconded by Director Jones,
and unanimously carried to approve the List of Demands dated
June 27, 1991, in the total amount of $293,418.32.
CLOSED OESSION
The Board recessed to the Council meeting at 9:47 p.m. and
reconvened in Closed Session at 10:15 p.m. for discussion of
property acquisition matters per Government Code Section 54956.9
(Lower Rosan Ranch, Capistrano Business Center, San Juan Saloon,
and Brad Miller), the Acting Agency Secretary being excused
therefrom, and reconvened at 11:45 p.m.
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AWOURMM NT
There being no further business before the Board, the meeting was
adjourned at 11:45 p.m. to the next regular meeting date of
Tuesday, July 16, 1991, at '7:00 p.m. in the City Council Chamber.
Re--pectfully submitted,
ATTEST:
LAWRENCE F. BUCHHEIM, CHAIRMAN
By Gil Jones, Vice Chairman
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