County of Orange MONTHLY REPORT

AGENCY: El Toro Local Redevelopment Authority (LRA)

FROM: Gary Simon, Executive Director

DISTRIBUTION: Members, Board of Supervisors

Michael Schumacher, Ph.D., County Executive Officer

El Toro Team

REPORT DATE: Report for the month of November 2001

The Board approved an option agreement and sublease with the Cal State University Fullerton Foundation for a satellite campus at the base on November 6^th.

Staff is currently in discussions with the following entities for subleasing buildings/property at the base:

• County Probation Department for use of Building 873 as a Youth and Family Resource Center.
• Orange County Sheriff for use of two warehouses and a vehicle maintenance facility.
• Orange County Housing Authority for use of the base Gym for an Emergency Homeless Shelter in the event that the National Guard Armories are unavailable this year.
• AQMD for a small monitoring site. Monitoring equipment was originally slated to be installed at John Wayne Airport (JWA) but heightened security concerns at JWA since September 11^th have precluded its installation at JWA. Suitable site identified and sublease will be processed under delegated authority.

Two proposals were submitted in response to the Stables RFP, one from the Orange County Fair and Exposition Center and the other from the Western Heritage Association of San Juan Capistrano. Review is underway by the Evaluation Committee.

Board selection is scheduled for January 15^th.

Community Day Preschool ceased operations on November 23^rd, 2001. The RFP for the Child Care Centers is on hold pending continuing discussions with the Probation Department.

Sadly, the Officers Club closed effective November 30^th, 2001. Best of the Best catering indicated that the events of September 11^th resulted in cancellation of booked events, and they were unable to make the operation work in the current economic climate even under a long-term sublease. Staff is explorinbg the possibility of making the facility available under special event permits until the RFP process is completed.

 Updated schedule (tentative) for RFPs is as follows:

RFP                                             Date of Issuance             Board Selection

Agricultural Leases                       1^st Quarter 2002             1^st Quarter 2002

Warehouse Bldg. 360(318??)     1^st Quarter 20021           1^st Quarter 2002

O’Club                                             1^st Quarter 2002             1^st Quarter 2002

Golf                                                   2^nd Quarter 2002             3^rd Quarter 2002

The LRA previously requested that the Navy expedite completion of the Radiological Survey Report for warehouse buildings 319 and 360 (120,000 square feet each) to remove the Master Lease restriction which prohibits their use. The Navy will submit a Draft Radiological Report to the environmental regulatory agencies in January 2002 and request that the regulatory agencies sign a Master Lease Restriction Release Form to allow use of the buildings based on the findings in the Draft Report. If the regulatory agencies agree, the warehouse buildings could be made available for sublease in March. If the regulatory agencies require a Final Report before signing the release form, the buildings will not be available until July 2002 at the earliest.

Master Lease Amendment 4, approved by the Board in June 2001, to permit use of 15 additional buildings is still under consideration by the Navy.

A Master Lease Amendment, Addendum to Final EIR 563 and National Environmental Policy Act (NEPA) documents are being prepared for the Auto Center parking lot for approval by the Board and the Navy.

Staff is continuing to work with the County Building inspector and OCFA to identify alternative, cost-saving approaches for complying with building and fire codes.

The Board-approved market rate increases for RV Storage and the Golf Course were implemented in November. The RV lot expansion has continued with a new total of 1,764 spaces of which 1,504 are occupied. Customers on the waiting list are continuing to fill the vacant spaces.

A Negative Declaration for a project to expand the stables by 40 new horse stalls and construct a leach field for the existing horse wash rack was completed and posted for public review. The expansion by 40 stalls will be on hold pending the RFP process to select a sub lessee. The leach field will proceed to comply with Regional Water Quality Control Board requirements.

The October and November CSP Profit & Loss Statement is below.

October-01
Cost Center	Sales	Expenses	Profit
Golf Course	$ 223,206	$ 186,710	$ 36,495
Club 19	$ 29,272	$ 38,083	$ (8,811)
Stables	$ 49,936	$ 66,746	$ (16,810)
RV Storage	$ 83,501	$ 19,032	$ 64,469
Total	$ 385,915	$ 310,571	$ 75,343
November-01
Cost Center	Sales	Expenses	Profit
Golf Course	$ 216,429	$ 171,864	$ 44,565
Club 19	$ 25,205	$ 31,350	$ (6,146)
Stables	$ 49,581	$ 65,571	$ (15,990)
RV Storage	$ 98,417	$ 16,461	$ 81,956
Total	$ 389,632	$ 285,246	$ 104,385

Special Events

The majority of events held at the base continue to be vehicle-related. LRA staff is developing a marketing plan to attract more special events to the base. Recruitment for the Special Events Coordinator will open in December. The following table provides a summary of Special Events held in October, confirmed future events and associated fees.

There were no significant security issues during NovemberSeptember. OCFA is continuing to conduct vehicle-training activities on the base. Building plans and construction drawings for Building 244 were submitted to the County Building Inspector to obtain a Certificate of Occupancy. The LRA is required to provide this building for use by OCFA’s Equipment Crew per the Services Agreement between the County and OCFA.

The U.S. Department of Agriculture/Wildlife Services and California Department of Fish and Game have agreed to implement a coyote eradication program at the base. In light of recent incidents in surrounding communities, concern for the safety of patrons and employees at the base prompted the initiation of this effort. A coyote eradication program was recently completed at MCAF Tustin.

Business Plan

Continued progress on the 2002 Business Plan update. Anticipate submittal to the CEO’s Office on December 7^th. The LRA will meet with the CEO staff to review the updated plan on January 7^TH.

Developed training manuals for LRA managers/contract employees and conducted first segment of MPP training with CEO/HR Labor Relations analyst Julie Mussche on November 11^th. Filled a vacancy for an Office Assistant effective November 16^th, 2001.

The second and final request for reimbursement on the already approved OEA Grant was submitted in November. It is unlikely there will be any future appropriations in this regard with the Record of Decision scheduled for next year.

In light of the financial impacts to John Wayne Airport from escalating security costs, the LRA reviewed its Fund 14M budget to identify areas for spending reduction. A budget reduction of $1,157,500 was achieved for the current fiscal year. On November 16^th and November 26^th, the LRA met with JWA and the CEO’s Office to discuss JWA’s financial concerns and potential solutions.

Monthly Financial Statement – broken down by Fund 13K and Fund 14M.