08-0514_CRA_Minutes_Adjourned Regular Meeting1
MINUTES
MAY 14, 2048
JOINT MEETING/WORKSHOP
SAN JUAN CAPISTRANO CITY COUNCIL
COMMUNITY REDEVELOPMENT AGENCY
Mayor Soto called the Adjourned Regular Meeting of the San Juan Capistrano City
Council and the Special Meeting of the Community Redevelopment Agency to order at
3:02 p.m. in the City Council Chamber for a Joint Meeting. Council Member Hribar led
the Pledge of Allegiance.
ROLL CALL
COUNCIL MEMBERSIDIRECTORS PRESENT: Sam Allevato, Tom Hribar, Dr. Londres
Uso, Mayor pro tem Mark Nielsen and Mayor Joe Soto
COUNCIL MEMBERS/Dl RECTORS ABSENT: None
ADLAINISTRATIVE ITEMS
1, CONSIDERATION OF WORKLOAD AND BUDGETARY PRIORITIES FOR
FISCAL YEAR 2008/2009 (330.20)
Description: Staff has compiled feedback fro the Council Member and prepared a
draft list of priorities for consideration. Staff recommended that the City Council
review and discuss feedback received regarding current and suggested priorities.
Staff will return to the City Council with a final list based on the Council's
discussion.
Presentation: Cynthia L. Russell, Assistant City Manager, presented the staff
report and requested Council feedback.
Discussion Summa :
• Creek/Flood Control Aesthetic Enhancements: In response a suggestion
that the City should work to combine aesthetic improvements for a more
natural look with the planned Orange County Flood Control improvements,
Nasser Abbaszadeh, Engineering & Building Director, reported that flood
control improvements would be installed behind the existing concrete channel
lining which would stay in place. Council Members discussed potential
outside grant and funding opportunities, and potential project impacts such as
water quality.
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• City Newsletter: Suggestions for cost reduction were made including
reducing the quantity of publications but retaining quality and giving staff
discretion to pursue more cost effective means of publication.
Police Services Costs: Dave Adams, City Manager, established that other
contract cities were concerned with rising costs for service. Council Members
concurred to pursue options such as joining negotiations with other cities to
reduce police services costs.
Future Extension of Paseo Adelanto/Alipaz: Douglas Dumhart, Economic
Development Manager, suggested that the final plans for the Little Hollywood
units could be located in a way to allow for an extension. Nasser
Abbaszadeh, Engineering & Building Director, established there may be
related flood control issues. Council Members discussed the need for an
extension and the potential for costs to be part of a redevelopment pian.
Consensus was reached to research a possible extension.
Downtown Visitor's Center: Council discussed the possibility and location of
a visitor's center. Consensus reached to establish as a 1 to 3 year priority
Downtown Master Plan: Discussion ensured regarding realignment of
Ortega Highway within the downtown area and to look at ways to attract more
tourists and hotel development. Consensus was reached to establish as a 1
to 3 year priority
Action: No formal action taken. Staff to return Fiscal Year 2008-2009 Workload
and Priorities on June 3, 2008 for approval.
CITY COUNCIL WORKSHOP
1. CONSIDERATION OF 2008 — 2015 CITY SEVEN-YEAR CAPITAL
IMPROVEMENT PROGRAM PROJECTS AND BUDGET ALLOCATIONS
(330.40)
Description: Each year the City develops a seven year Capital Improvement
Program (CIP) that provides consistency with State Congestion Management
Program and County Measure M Program requirements. Staff recommended the
City Council receive the report and provide direction regarding the CIP priorities.
Presentation: Jill Thomas, Senior Management Analyst, summarized the agenda
report and narrated a slide presentation.
Discussion Summary:
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• Traffic signal at the Rancho Viejo Road and Paseo Espada: previously
requested by adjacent seniors and is warranted. It can be installed to be
traffic responsive.
• Drainage Fund: Lacks adequate revenue and funding sources to address
aging infrastructure needs. Staff will return to Council to consider funding
methods such as a user fee, Proposition 218 fee, voter approved measure, or
other funding source.
• Crosswalk at Camino Capistrano and Forster streets: Includes downtown
enhancement such as special pavers that are funded through CRA funds.
• Quiet Zone — Rail Crossings: Quiet zone safety improvements are
scheduled for {4} San Juan Capistrano railroad intersections including new
signals and crossing equipment. Orange County Transportation Authority will
fund 88% of this project.
• Camino Capistrano Tennis Courts: Fiscal Year 2007108 resulted in unused
funds. Discussion was held to use repairs — staff recommended using the
$100,000 surplus to fund a native planting scheme installed as a community
volunteer project at the La Novia/San Juan Creek park.
•
I-6/Ortega Interchange funding: CIP funding represents all outside funding
sources including Measure M funds; a federal grant and Ladera Ranch CFP
funding. This funding will be used for the design phase
• Commuter Parking Surveillance system: Funded entirely by Orange
County Transportation Authority.
• Recycled project: Prop 50 grant 6.5 million — 800,000 balance coming from
other funding sources, state revolving fund loans or may get federal grant. I
had issues with extent of piping $50 to $60 million cost to re -pipe the city;
11.8 million in 7 year CIP — not the long term aspect. Don't want to commit
until issue discussion resolved. Item under consideration by council
• Del Obispo/Camino Capistrano Intersection: The project as funded has
been approved by the City Council and grant funding is involved. Only minor
adjustments are possible without derailing the project.
• San Juan Hills High School Swimming Pool: The recreational needs
assessment will return to the Council for further consideration. Pools cost
around $5 million to install. Operationimaintenance costs range $200,000 to
$300,000 annually and user fees do not cover costs. A consultant is
searching for grants and the parks and recreational projects will be included.
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Action: No formal action taken. The seven year Capital Improvement Project
program and budget is scheduled for a public hearing on June 3, 2008.
2. CONSIDERATION OF INTRODUCTION OF FISCAL. YEAR 2008/2009
OPERATING FUND BUDGETS (330.20)
Description: The Fiscal Year 2008109 operating budgets provide financial
guideline for city operations in the coming year. These budgets include the
projected costs for general operation, water and sewer operations, fund, and
other programs. Staff introduced the Fiscal Year 2008109 budget and requested
direction from Council prior the public hearing scheduled for June 3, 2008 to
consider the budget.
Presentation: Steve Montano, Assistant Administrative Services Director,
summarized the fiscal year budget and narrated a slide presentation.
Discussion Summary:
• General Liability Costs: Insurance costs have risen 44% from the last fiscal
year because this is the first year we realize the full cost of earthquake and
flood insurance; and costs from recent large litigation settlements is paid over
time as a rolling retroactive payment. Staff will have an analysis of property
values and appropriate insurance coverage to be sure we are not over
insuring our properties.
• Special Enforcement: These costs include operation of red-light cameras,
processing of moving and parking citations which are offset by revenue.
• Water Agency Collection of Bad Debts: The City recently hired a collection
agency to collect bad debts. Although there are costs involved, revenues are
anticipated to exceed costs.
• Maintenance Deferral: The budget assumes one-year sewer maintenance
deferral and any one-time extraordinary costs will need to be allocated from
reserves. If maintenance is deferred more than one year this will need close
consideration in future fiscal year budgets.
• Water and Sewer Enterprise Funds: Metropolitan Water recently increased
the rate to purchase water by 16% and increases of 5% to 10% should be
anticipated annually. Revenues are funded mostly by rates,
Action: No formal action taken. The Fiscal Year 2008/2009 Operating Fund
Budget will be considered at a public hearing scheduled for June 3, 2008.
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COMMUNITY REDEVELOPMENT AGENCY WORKSHOP
1. CONSIDERATION OF INTRODUCTION OF THE FISCAL YEAR 2008/2009
COMMUNITY REDEVELOPMENT AGENCY OPERATING AND CAPITAL
IMPROVEMENT PROJECT FUND BUDGETS (330.70)
Description: The Fiscal Year 2008109 Community Redevelopment Agency
budget provides revenue and expenditure projections for the coming year. The
Agency issues debt to fund projects within the project area. Incremental
increases in property values within the Agency generate tax increment, which is
then used to repay the debt. 80% of the tax increment is used for Agency
projects, while 20% is set-aside for affordable housing purposes. Staff
recommended receiving the introduction of budget. The Agency does not build
up reserves. Further consideration is scheduled for a June 3, 2008 public
hearing.
Discussion Summary:
• Lower Rosan: The property acquired to gain access to the site was financed
through land secured short-term financing. The recent issuance of bonds did
not include these costs, allowing for greater bonding capacity. The property
financing costs will be dealt with during the final development of the property.
• Non -housing Development Projects: Included in the CIP. All projects,
except the Los Rios Park project, may be prioritized at the Director's
discretion.
Action: None. Discussion and staff direction.
Summary of Financial Outlook and Reserves — All Funds:
Financial outlook is strong, but not as strong as in previous years due to the
current economy, increased expenses, declining revenues, among other factors.
Through a reduction in on-going costs, staff reorganization, and proposed
increased fees staff projects a balanced budget for Fiscal Year 2008109. This is
a short-term solution. A long-term solution will be developed through the
upcoming strategic business plan process which will provide a path to maintain
our strong financial standing. This process will establish our current and future
needs and ways for us to meet those needs. The proposed budgets allow for a
50% contingency of current expenditures as reserves for future contingencies.
Money is set aside for Agency loans, encumbered funds, technology, a future city
hall, leaving $2.6 million in general fund reserves for one-time extraordinary
costs. A five year rate plan is underway for the water and sewer enterprise funds
which will allow a build up of funds for infrastructure needs. The Agency has
strong revenue projections and the ability to meet its goals. The City needs to
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plan for the loss in development revenue which reduces our ability to complete
capital projects; some City Council priorities have yet to be funded; and the need
to diversity our local revenue base. In addition, the State has a substantial deficit.
We will not know the full impact of the State's deficit until after November.
ORAL COMMUNICATIONS: City Council and Community Redevelopment Agency
ADJ_ URNMENT: COMMUNITY REDEVELOPMENT_ AGENCY
There being no further business, Chairman Nielsen adjourned the meeting at 7:33 p.m.
to the Regular Meeting of Tuesday, May 20, 2008, at 5:30 p.m. for Closed Session, and
6:30 p.m. for the Public Business Session in the City Council Chamber.
Respectfully submitted,
R. MONAHAN, AGENCY SECRETARY
proved: June 3, 2008
ATT ST•
MAWmAW NIELSEN, CIJAIRMAN
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