Loading...
HomeMy WebLinkAboutRDA Min 1981-03-23 ~4 3-23-81 Seal Beach, California March 23, 1981 The Redevelopment Agency of the City of-Seal Beach met in regular session at 6:45 p.m. with Chairman Seitz calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Chairman Seitz Agency Members Kredell, Laszlo, Supple, Vanderstaay I Agency Member Kredell arrived at 6:50 Absent: None Also present: Mr. Thomas, Acting Executive Director Mr. Stenpanicich, Assistant City Attorney Mrs. Yeo, Secretary APPROVAL OF MINUTES Laszlo moved, second by Vanderstaay, to approve the minutes of the regular meeting of February 23, 1981.as presented. AYES: NOES: ABSENT: Laszlo, Seitz, Supple, Vanderstaay None Kredell Motion carried Agency Member Kredell arrived at 6:50 p.m. MEMORANDUM - PAYMENT OF REDEVELOPMENT AGENCY WARRANTS Interim Executive Director, Mr. Thomas, reported that in accordance with Council direction, the policy of paying Redevelopment Agency Obligations prior to Agency approval has been discontinued. Mr. Thomas stated that Redevelopment Agency warrants are itemized on the City'-Council list of demands and responded to Agency Member Supple that the Trailer Park rental subsidy payment is included in that listing of demands proposed for payment. Agency Member Kredell asked if the rental subsidy payments are based on the estimated or actual construction costs for the Trailer Park. The Executive Director stated that the current payment schedule has been in effect since 1979 and that he and the legal counsel for the Trailer Park are presently reviewing those payments to verify their accuracy and that a full report of the rental subsidy payments will be forthcoming to the Agency. Mr. Kredell requested the Executive Director Investigate if the Agency could recover any rental subsidy over-payments, that the report be provided by next meeting and that no further payments be made until the report Is complete. Agency Member Laszlo suggested legal ramifications of lowering the subsidy payments also be Investigated. Mr. Thomas clarified that subsidy payments for those residents of the Trailer Park are made by issuing one total check to the Trailer Park management, that the other listed subsidy demands are for those reloca- tion costs for which the Agency is obligated and to those persons who have left the Park. Mr. Thomas stated further it was his assumption that present rental subsidies are based on the second amendment to the participation agreement and that he would make every attempt to provide the report to the Agency within the next two to three weeks. Chairman Seitz asked If there was a motion to approve the Agency demands. Mr. Supple expressed concern with approving payments that may be questionable. Mr. Supple also questioned the payment to Diehl, Evans Company for the Redevelopment Agency audit. The Executive Director stated that it has been customary to charge the audit payment to the Finance Department budget and not the Agency. Mr. Supple stated he felt such payments should be charged to the appropriate account. Agency Member Kredell suggested separate accounting books be maintained for the Agency. Mr. Supple requested a report showing payment of all funds on behalf of the Redevelopment Agency by the City. The Interim Executive Director stated a report would be forthcoming; no further action was taken. I I 3-23-81 4t~[) I COMMUNICATION - SPECIAL LEGAL COUNSEL - TRAILER PARK The Interim Executive Director reported that a letter had been received from Mr. Tom Parrlngton,'Special Legal Counsel for the Trailer Park, relating to documents forwarded to the Orange County Grand Jury, Mr. Parrington's role in representing the Agency in the Trailer Park redevelopment, and comments regarding the dispute over construction costs that have exceeded the original estimates. Mr. Thomas stated Special Legal Counsel had requested his letter be included in the docu- ments forwarded to the Grand Jury. Laszlo moved, second by Supple, to authorize the transmittal of Mr. Parrington's letter to the Orange County Grand Jury as requested. AYES: NOES: Kredell, Laszlo, Seitz, Supple, Vanderstaay None Motion carried I ORAL COMMUNICATIONS Chairman Seitz declared oral communications open. The Interim Executive Director stated that pursuant to Agency direction, the City Attorney had recommended the law firm of Burke, Williams and Sorensen to provide legal counsel to represent the city in the Dawson versus Redevelopment Agency legal action and responded to the Agency that to his knowledge the suit had not yet been filed in court. Discussion foJlowed. The City Attorney stated that if the Agency anticipates the suit to be formally filed, it may be advantageous for the Agency to have retained legal counsel, that an answer would be required to be filed within thirty days of the filing date and recommended that discussion regarding pending litigation be conducted in closed session with special legal counsel. Supple moved, second by Kredell, to authorize the Executive Director to contact the firm of Burke, Williams and Sorensen to discuss the terms of their employment, said employment to commence only after the suit has been properly filed with the City. Agency Member Seitz referred to the recently renegotiated retention of special counsel for the Trailer Park and spoke in opposition to hiring special counsel for this litigation. The Executive Director reaffirmed that the City Attorney had made this recommendation only at Agency request. Agency Member Laszlo stated it was his understanding the recommended firm could provide expertise in Redevelopment Agency court litigations and spoke in favor of continuing with Mr. Parrington as special counsel for the Trailer Park redevelopment. Vote on AYES: NOES: the motion: Kredell, Laszlo Seltz, Supple, Vanderstaay Motion failed Councilman Laszlo asked if this action was authorization for Mr. Parrington to handle the litigation previously referred to. Mr. Thomas indicated it was unless the Agency directed otherwise and stated he would contact Mr. Parrington to clarify his availability to handle litigation on behalf of the Agency. I Mrs. Risner, 845 Driftwood Avenue, spoke regarding the development of the Department of Water and Power property and expressed concern regarding the availability of funds for the purchase and development of the site, marketability of the condominium and commercial establishments, and escalated restoration costs. Mrs. Risner referred to changes to the Plan as recommended by Gruen Associates as a condition of the federal loan, stated she had been informed by the Coastal Conservancy that no revisions have been officIally made to the original restoration plan, and suggested that the Councilor Agency retain the right of final approval for any plan amendments or update of grant applications. Mrs. Risner also suggested that the Agency obtain an independent marketing, planning and engineering firm to evaluate whether or not the plan is financially feasible, and that a member of the staff be authorized to accompany the Coastal Conservancy whenever they represent the city regarding the D.W.P. site. Mrs. Risner expressed interest in the status of negotiations for purchase of the site, tne CEIP loan, the $250,000 Coastal Conservancy grant, the Harbors, Beaches and Parks grant and the matching Federal Land and Water grant of $450,000. Mrs. Risner stated she had been informed by an official in the Orange County Grant Negotiating Department 466 3-23-81 that application had been made for the federal matching funds for the past two years with no. success, that the D.W.P. . project had been considered a low priority project in relation to other Orange County regional projects. Mrs. Risner also read in full a letter of response from the United States Department of Commerce stating that funds'for the federal CEIP loan would not be available. Agency Member Laszlo spoke regarding the Harbors, Beaches and Parks grant which has been allocated to the D.W.P. project and the Federal Land and Water matching funds which have not been obtained as yet. Agency Member Kredel1 spoke I regarding projected financial return to the city from the D.W.P. project. Mr. Gilkerson, 1011 Electric Avenue, commented on a recent letter to the editor in the local newspaper regarding repayment of Redevelopment Agency funds to the city; Mr. Tom Blackman responded regarding his letter to the editor. Agency Member Laszlo referred to specific amounts of Agency indebtedness to the City. There were no other oral communica- tions; Chairman Seitz declared oral communications closed. ADJOURNMENT Laszlo moved, second by Kredell, to adjourn the meeting at 8:10 p.m. AYES: NOES: Kredell, Laszlo, Seitz, Supple Vanderstaay Motion carried 5It "a i rman I I