93-1102_CRA_Minutes_Regular Meeting225
NOVEMBER 2, 1993
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 Nash at 7:55 p.m. in the City Council Chamber.
ROLL CALL: PRESENT: Carolyn Nash, Chairman
Jeff Vasquez, Vice Chairman
Collene Campbell, Director
Gary L. Hausdorfer, Director
Gil Jones, Director
ABSENT: None
STAFF PRESENT: George Scarborough, Executive Director; Thomas Tomlinson, Deputy Director; Richard K
Denhalter, Agency Counsel/City Attorney; Cynthia L. Pendleton, Finance Officer; Cheryl Johnson, Agency
Secretary; William Huber, Director of Engineering and Building Services; Ronald C. Sievers, Director of Public
Lands and Facilities; Al King, Jr., Director of Community Services; Nancy Bernardi, Recording Secretary.
The Minutes of the Regular Meeting of October 5, 1993, were approved as submitted as part of the City Council
Consent Calendar.
PUBLIC HEARINGS
1. JOINT PUBLIC HEARING WITH THE CITY COUNCIL--- CONSIDERATION OF
PROPOSED STANDARD LEASE DOCUMENT AND RENT SCHEDULE FOR THE
THIRTEEN LITTLE HOLLYWOOD RESIDENCES (600.40) (CONTINUED FRAM
OCTOBER 19. 1993)
Mayor Jones indicated that he would abstain on this item due to a potential conflict of interest relating to
possible impacts on his personal property value. Mayor pro tem Campbell presided.
Prg=sal:
Consideration of a standard lease agreement and rent schedules for the thirteen Little Hollywood
residences upon completion of each unit's rehabilitation. The new rents would be based on 25% of
gross income, with a utility allowance of 5%. An additional credit of $50 per dependent child will be
given to each household. The calculations were based on standards provided by HUD, the Orange
County Housing Authority and the Orange County Housing and Redevelopment Agency. HUD
regulations stipulate that rents for low- and moderate -income housing not exceed 30% of monthly gross
income.
Written Communication:
Report dated November 2,1993, from the Finance Officer and the Deputy Director, recommending that
the standard lease agreement and rent schedules be approved.
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Ms. Pendleton made an oral presentation. In response to inquiries by Director Vasquez, Ms. Pendleton
advised that total revenue to the City from the proposed rent increases would be approximately $200
per tenant per month, or $24,000 per year. She indicated that all tenants had been notified of the
proposed increases, some of which would not take effect for two years.
Public Hearing:
Notice having been given as required by law, Mayor Jones opened the Public Hearing, and the following
persons responded:
(1) Pauline Leonard, 27589 Brookside Lane, on behalf of the Mary Erickson Foundation and San
Juan Housing Advocates, spoke in favor of the proposed lease and rent schedule because it
would preserve housing for low-income people in San Juan Capistrano. In particular, she
supported the proposed guidelines from HUD and Orange County Housing Authority, the use
of 25% income level instead of 30%, annual review of plan, consideration of children in the
households, use of revenue to be used for Community Development Block Grant projects, and
control of subletting.
(2) Jessica Dean, 27032 Pasco Burladero, member of San Juan Housing Advocates, spoke onbehaif
of the Orange County and Capistrano Bay area League of Women Voters. She concurred with
the comments made by Ms. Leonard and spoke in favor of the proposals.
.Council Discussion:
Director Vasquez felt that some of the proposed rent increases were too high for the quality of the
houses and that higher -income tenants would suffer too much of an increase. He inquired whether
there was a waiting list available for these houses. He recommended that the houses be rehabilitated
first then evaluated for their market value; from that market value, the City could then determine how
much subsidy would be needed to offer the same relatively low rents to all tenants. Chairman Nash
concurred and felt that additional evaluation was needed in this matter.
Ms. Pendleton explained that staff considered charging a percentage of market value and determined
the rents would not comply with HUD requirements for rent consistency for all tenants. She stated that
the City has the option of leaving the rents as they are today, which are below the 30% income level.
She noted that there is a waiting list of about 30 people.
Director Hausdorfer stated that options were few in this matter since the Community Redevelopment
Agency purchased these properties with HUD assistance, and that the City must comply with HUD
restrictions. He suggested that the hearing be continued so that staff could provide a series of options,
from the minimum to the maximum.
Mr. Tomlinson noted that the proposed rent structure would not become effective until each unit had
been completely rehabilitated.
Continuation f Hearing:
It was moved by Director Hausdorfer, seconded by Director Vasquez, that the hearing be continued,
to a date uncertain, for staff to provide a series of options, including guidelines for people who wish to
apply for this housing. The motion carried unanimously with Director Jones abstaining. The hearing
will be re -noticed and re -advertised when scheduled for the agenda.
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BOARD ACTION
1. RECEIVE AND FILE WARRANTS FOR QCIOBER 1993 (300-M
It was moved by Director Hausdorfer, seconded by Director Jones, and unanimously carried that the
List of Demands dated September 30, 1993, in the total amount of $10,891.00, and the List of Demands
dated October 22, 1993, in the total amount of $163,862.68 be received and filed.
2. PROPOSED AMENDMENT TO SEASIDE RANCHOS Ii OMTMR PARTICIPATION
AGREEMENT f DOLLEYL(600.M
Written Communication:
Report dated November 2, 1993, from the Executive Director, recommending that the Seaside Ranchos
II Owner Participation Agreement be amended adjusting the Schedule of Performance to accommodate
delays in acquiring the property, gas tank leakage remediation, and inability to secure an anchor tenant.
Julia Kimminau, Management Assistant, made an oral presentation.
AdQption of Resolution A r vi First Amendment easi Ranchos lI Owner
Participation Agreement:
It was moved by Director Hausdorfer, seconded by Director Campbell, that the following Resolution
be adopted:
RESOLUTION NO. CRA 93-11-2-1. APPROVAL OF AMENDMENT TO OWNER
PARTICIPATION AGREEMENT (SEASIDE RANCHOS) - A RESOLUTION OF
THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY,
APPROVING AN AMENDMENT TO THE OWNER PARTICIPATION
AGREEMENT BY AND BETWEEN THE SAN JUAN CAPISTRANO
COMMUNITY REDEVELOPMENT AGENCY AND SEASIDE RANCHOS
The motion carried by the following vote:
AYES: Directors Campbell, Hausdorfer, Jones, Vasquez, and Chairperson Nash
NOES: None
ABSENT: None
The Board recessed to the Council meeting at 8:00 p.m. and reconvened in Closed Session at 9:10 p.m. for
discussion of litigation per Government Code Section 54956.9(a) (Swerdlin v. CRA), the Agency Secretary being
excused therefrom, and reconvened at 9:40 p.m.
ACTION FOLLOWING CLOSED SESSION
1. PROPOSED SETTLEMENT AGREEMENT - MISSION PHOTOGRAPHY LEMS LITIGATION
(SWERDLIN) (600.40)
It was moved by Director Hausdorfer, seconded by Chairman Nash, and unanimously carried that the
Executive Director be authorized to sign the Release and Termination of Tenancy Agreement, settling
Swerdlin v. CRA and terminating the tenancy of David Swerdlin and Mission Photography on CRA
premises.
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There being no further business before the Board, the meeting was adjourned at 9:40 p.m. to the next regular
meeting date of Tuesday, November 16, 1993, at 7:00 p.m. in the City Council Chamber.
ATTEST:
CAkOLYN N H, CHAIRMAN
CRA Minutes
Respectfully submitted,
CHERYL JOHNSON GENCY SECRET
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