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95-0516_CRA_Minutes_Regular MeetingOS3 MAY 16, 1995 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 Swerdlin at 7:21 p.m. in the City Council Chamber. ROLL CALL: PRESENT: David Swerdlin, Chairman Carolyn Nash, Vice Chairman Collene Campbell, Director Wyatt Hart, 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; Al King, Jr., Director of Community Services; Lt. Paul Sullivan, Chief of Police Services; Nancy Bernardi, Recording Secretary. It was moved by Director Nash, seconded by Director Jones, that the staff recommendations be accepted for the following items listed on the Consent Calendar. The motion carried by the following vote: AYES: Directors Campbell, Hart, Jones, Nash, and Chairman Swerdlin NOES: None a. Regular Meeting of April 18- 149 The Minutes of the Regular Meeting of April 18, 1995, were approved as submitted. b. Adjourned Regular Meeting of April 26. 1995 The Minutes of the Adjourned Regular Meeting of April 26, 1995, were approved as submitted. CRA Minutes -1- 5116195 054 The List of Demands dated April 26, 1995, in the total amount of $17,243.32 was received and filed. APRIL 30.1995(350 .30 The Finance Officer's Report of Investments as of April 30, 1995, in the total amount of $1,772,998.86 was received and filed. The following item was removed from the Consent Calendar at the request of the Board. NEW la 1501 0,104 KINKIM961FING 1 4041M We 2 000 FIN 11 "TOW&V it] - 5"FrIlle ME-. WrjUen kation: Report dated May 16, 1995, from the Finance Officer, recommending that Council Policy No. 12 be adopted establishing a standard process for administration of City and Community Redevelopment residential and commercial lease agreements when a breach of lease occurs. Director Hart recommended that this item be continued so that staff could modify the policy to strengthen the process. He suggested that commercial and residential rates be separated, with commercial rates to be in line with the fair market rate at the time of the lease, and that the three-day notice for past -due payments be modified to be 30 days for residential and ten days for commercial leases. Director Nash suggested that the sample notification letters be modified to be more easily understood. Continuation of Item: It was moved by Director Jones, seconded by Chairman Swerdlin, and unanimously carried that this item be continued to the meeting of June 6, 1995. 6 8 ti 1 • IL4 III ED III, TN1• 121 1916VAN W I A41 _-191QRXQJ C M • • d �1 Writlgn Communication: Report dated May 16, 1995, from the Director of Engineering and Building, recommending denial of the request from Robert Dolley to waive Condition 3(c) of the Owner Participation Agreement with Seaside Ranchos. That condition required the applicant to participate CRA Minutes -2- 5116195 Q55 financially in the Del Obispo Widening at Trabuco Creek and in the Del Obispo Pedestrian Bridge across Trabuco Creek. The applicant had based his request for waiver on the fact that the Home Furnishings Center had been required to participate, but the fee had been waived, and the Marshall's/Wherehouse and Franciscan Plaza projects had not been required to participate. Staff had originally estimated Mr. Dolley's proportionate share to be $112,962 for the Del Obispo widening and $0.00 for the Pedestrian Bridge. The Del Obispo widening had not been budgeted in the City's 7 -year Capital Improvement Program; by law projects must be budgeted in a 5 -year time frame in order to request developer reimbursement. Staff reviewed the applicability of the condition and determined that the full widening project may not be achievable within 5 years, but that the pedestrian bridge project was achievable. Staff subsequently determined that Seaside Ranchos' proportionate share for the Del Obispo Widening should be based on the costs for the pedestrian bridge project, or $19,430. The Director of Engineering and Building made an oral report, noting that staff had reviewed both the applicability of the requirement to participate in the Del Obispo widening and the developer's concerns regarding the reasonableness of the requirement. He advised that staff felt each participation agreement was unique to each development and it would not be appropriate to waive the condition. He noted the Agency had paid fees on behalf of the developer through the Owner Participation Agreement; i.e., the joint planning of the Area A infrastructure; three traffic signal improvements; Ortega Highway street widening improvements; and, the Agency's contribution toward purchase of the parcel at the southeast corner of Camino Cap/Del Obispo. Public Dr. Ken Friess, 31726 Rancho Viejo Road, distributed the following documents to the Board: (1) Memorandum dated November 22, 1994, from Dr. Friess to the City of San Juan Capistrano, regarding: a) the reimbursement due Bob Dolley from the City for his share of costs for the construction of improvements and signalization at the intersection of Golondrims/Camino Capistrano; and, b) Mr. Dolley's participation in the costs for construction of the Del Obispo pedestrian bridge across Trabuco Creek. (2) Three Memoranda dated June 21, 1994, July 11, 1994, and July 26, 1994, all from the Director of Engineering and Building to the City Manager, regarding the justification of the condition placed on Mr. Dolley with regard to Mr. Dolley's participation in the costs for construction of the Del Obispo pedestrian bridge across Trabuco Creek. Dr. Friess stated that Mr. Dolley had met the many conditions placed on his Seaside Ranchos development until the issue of the pedestrian bridge widening arose during processing of the latest project. He noted the June, 1994 staff memo indicating there was no nexus for participation in the pedestrian bridge. He noted that Mr. Dalley did enter into Agreements on this matter. However, Mr. Dolley felt that the condition imposed on his project should be waived, since it had either not been required or had been waived for other area projects. CRA Minutes -3- 5116195 056 In addition, Dr. Friess stated that Mr. Dolley had fronted funding for certain capital improvements, for which his share was approximately 20%. The Reimbursement Agreement between the City and Mr. Dolley required that Mr. Dolley be reimbursed approximately $164,000 over a 15 -year period for those improvements. He advised that funds had been collected from the Stroscher and Johnson/Yu projects that should have been reimbursed to W. Dolley. To date Mr. Dolley had not received that reimbursement. He stated that charging the reimbursement from the Stroscher and Johnson/Yu projects against the $164, 000 from the Reimbursement Agreement, resulted in the City owing Mr. Dolley approximately $143,000. He stated that the City had no established program to collect the balance of the money owed Mr. Dolley. He suggested that to resolve the matter, the money W. Dolley was conditioned to pay the City for the pedestrian bridge should be subtracted from the money owed Mr. Dopey by the City, and then Mr. Dolley's obligations should be considered to have been met. This proposal would not waive the fee owed by W. Dolley, but would credit the amount of the fee against the money owed Mr. Dolley by the City. Bob Dalley, 1442 Irvine Boulevard, Tustin, owner of Seaside Ranchos, stated that he had never been informed of the amount of the fees for either the pedestrian bridge or the Del Obispo widening at Trabuco Creek. He advised that he entered into the Reimbursement Agreement for the intersection/signalization improvements only because he was told he would be reimbursed. He had not realized the Reimbursement Agreement did not provide for full reimbursement in the event additional development did not occur. Mr. Huber clarified that the Reimbursement Agreement between the City and Mr. Dolley for the intersection improvements and signalization did not provide for the City to reimburse the developer. Instead, it provided for a future development with an Environmental Impact Report identifying an impact to the intersection to pay the City, after which the City would reimburse Mr. Dolley. There is no obligation on the City if future development does not occur. Mr. Dolley indicated he had been told he would definitely be reimbursed because the improvement was part of the Area A backbone infrastructure. Director Hart expressed concern with requiring payment from only one out of the four projects which were originally required to participate in the pedestrian bridge widening. He felt that since fees for three of the projects were waived, the fee should also be waived for Mr. Dolley's project. He recommended that the matter of the Reimbursement Agreement be addressed separately by the applicant and staff. Director Jones concurred with Mr. Dolley's comments. He felt that the signal at the Golondrinas/Camino Capistrano intersection would not have been installed in a timely manner _ without Mr. Dolley's participation. Director Campbell empathized with Mr. Dolley's situation but felt it was important for the City to be responsible with the taxpayers' money. She indicated she could not vote on this matter until she the opportunity to review Dr. Friess' written submittals more thoroughly. Chairman Swerdlin noted there was no record of the fees waiver for the Johnson/Yu project and requested that this type of situation not occur again. Mr. Scarborough stated he could CRA Minutes -4- 5/16/95 057 not explain what happened in the past and felt that the authority had not existed in the past to waive the fee. He stated it would not occur in the future without disciplinary action. A212roval to Waive Condition 3(c) of Owner Partigipation geement: It was moved by Director Hart, seconded by Director Jones, that the request from Robert Dolley be approved to waive Condition 3(c) of the Owner Participation Agreement for Seaside Ranchos/Del Obispo Widening at Trabuco Creek. The motion carried by a 3-2 roll call vote, with Directors Campbell and Nash voting in opposition. Director Campbell indicated her vote reflected she felt unprepared due to new information submitted at the meeting. CLOSED SESSION (610.85) The Board recessed to the Council meeting at 7:45 p.m. and reconvened in Closed Session at 9:30 p.m. for: Conference with Real Property Negotiator per Government Code Section 54956.8 for property located at the Capistrano Depot, 26701 Verdugo Street, with Magic Holding Company, Inc., as negotiating party, to consider price and terms of payment; 2. Conference with Real Property Negotiator per Government Code Section 54956.8 for property located at the Old Elementary School site at the comer of El Camino Real and Acjachema, Parcels A and B on Parcel Map 80-853, and related parcels, with Capistrano Valley Unified School District as negotiating parry, to consider price and terms of payment; Conference with Real Property Negotiator per Government Code Section 54956.8 for property located at 31731 Paseo Adelanto, with Solag Disposal Services as negotiating party, to consider price and terms of payment; 4. Conference with Legal Counsel, Existing Litigation, per Government Code Section 54956.9, for the case known as Trackside Dining, Inc. v. City of San Juan Capistrano, San Juan Capistrano Community Redevelopment Agency, et al; Conference with Legal Counsel, Anticipated Litigation, per Government Code Section 549569(b), for significant exposure to litigation in three cases, and Government Code Section 54956.9(c), the initiation of litigation in two cases; 6. Liability Claims per Government Code Section 54956.95, M&M Jewelers, et al, claimant, against the San Juan Capistrano Community Redevelopment Agency; and 7. Liability Claims per Government Code Section 54956.95, San Juan Partners, claimant, against the San Juan Capistrano Community Redevelopment Agency. The Agency Secretary was excused therefrom, and the meeting reconvened at 12:14 a.m., Wednesday, May 17. CRA Minutes -5- 5116195 058 Mr. Denhalter advised that with regard to item #1, the Board voted to select the offer by Cedar Creek Inn, subject to further negotiations regarding certain terms and contingencies in their offer for the Capistrano Depot Purchase Agreement. The vote was 4-0, with Director Jones abstaining. There was no action to report on any of the remaining items. There being no further business before the Board, the meeting was adjourned at 12:15 a.m., Wednesday, May 17, to the next regular meeting date of Tuesday, June 6, 1995, at 7:00 p.m. in the City Council Chamber. ATTEST: SWE LIN, CHAIRMAN CRA Minutes Respectfully submitted, CHERYLi =1 C* ' ■ M 5/16/95 059 CITY OF SAN JUAN CAPISTRANO NOTICE OF SPECIAL MEETING THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, HEREBY GIVES NOTICE THAT A SPECIAL MEETING WILL BE HELD ON TUESDAY, MAY 23, 1995, AT 10:00 A.M. IN THE SAN JUAN CAPISTRANO CITY COUNCIL CHAMBER FOR THE PURPOSE OF HOLDING A CLOSED SESSION REGARDING THE FOLLOWING: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8, for property located at the Capistrano Depot, 26701 Verdugo Street, with negotiation parties, Magic Holding Company, Inc., and Ayres, to consider price and terms of payment. 2 Liability Claims pursuant to Government Code Section 54956.95, San Juan Partners claimant, against San Juan Capistrano Community Redevelo ment Agency DAVID SWEIRDLIN, CHAIRMAN DATED: MAY 19, 1995 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF SAN JUAN CAPISTRANO ) I HEREBY CERTIFY that a copy of the Notice of Special Meeting of the San Juan Capistrano Community Redevelopment Agency of the City of San Juan Capistrano, California, to be held on Tuesday, May 23, 1995, at 10:00 a.m., was mailed and/or notice accepted by telephone or personally delivery not less than twenty-four hours before the hour of 10:00 a.m., Tuesday, May 23, 1995, to: David Swerdlin, Chairman Carolyn Nash, Vice Chairman Collene Campbell, Director Wyatt Hart, Director Gil Jones, Director The Register Capistrano Valley News Los Angeles Times I declare under penalty of perjury that the foregoing is true and correct. Cheryl Johnso , Agen y Secretary