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HomeMy WebLinkAbout2010-06-22 CC Item No. 2CITY OF LADE cog LSIT ORf DREAM EXTREME REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: JUNE 22, 2010 SUBJECT: APPROVAL OF MINUTES Discussion The following City Council minutes are submitted for approval: (a) Special City Council Meeting Minutes, May 25, 2010 (b) Regular City Council Meeting Minutes, May 25, 2010 (c) Special City Council Meeting Minutes, May 27, 2010 (d) Special City Council Meeting Minutes, June 07, 2010 Recommendation Approve the Minutes as submitted. Prepared by: Dana C. Porche(N"` Office Specialist Approved by: Carol Cowley Interim City Clerk Approved by: Robert A. Brady City Manager ~Yl~' AGENDA ITEM NO. 2 Page 1 of 25 Page 2 of 25 MINUTES SPECIAL CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MAY 25, 2010 CALL TO ORDER Mayor Melendez called the meeting to order at 4:30 p.m. ROLL CALL PRESENT: MAYOR MELENDEZ MAYOR PRO TEM BHUTTA COUNCIL MEMBER BUCKLEY COUNCIL MEMBER HICKMAN COUNCIL MEMBER MAGEE ABSENT: NONE PUBLIC COMMENTS There were none. CLOSED SESSION City Attorney Leibold announced that the City Council would recess to Closed Session. (1a) Conference with Labor Negotiator Pursuant to (Gov't Code Section 54957.6) (1b) Conference with Legal Counsel -Anticipated Litigation Initiation of litigation pursuant to subdivision (c) of Gov't Code Section 54956.9: 1 potential case. OPEN SESSION The City Council reconvened at 7:04 p.m. City Attorney Leibold announced that the City Council met for a Special Meeting at 4:30 p.m. to discuss two matters under closed session and indicated there was no reported action. Page 3 of 25 Special City Council Meeting May 25, 2010 ADJOURNMENT Page 2 of 2 There being no further business to come before the Council and Agency Board, the special meeting was adjourned at 7:04 p.m. and returned to the Regular City Council meeting at 7:04 p.m. on May 25, 2010. MELISSA MELENDEZ, MAYOR CITY OF LAKE ELSINORE ATTEST: CAROL COWLEY, INTERIM CITY CLERK CITY OF LAKE ELSINORE Page 4 of 25 MINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MAY 25, 2010 CALL TO ORDER - 7:00 P.M. Mayor Melendez called the meeting to order at 7:04 p.m. ROLL CALL PRESENT: MAYOR MELENDEZ MAYOR PRO TEM BHUTTA COUNCIL MEMBER BUCKLEY COUNCIL MEMBER MAGEE ABSENT: COUNCIL MEMBER HICKMAN Also present: City Manager Brady, City Attorney Leibold, Director of Administrative Services Riley, Public Works Director/City Engineer Seumalo, Director of Lake and Aquatics Kilroy, Information/Communications Manager Dennis, Police Chief Cleary, Fire Chief Hendershot, RDA Analyst Carlson and Interim City Clerk Cowley. PLEDGE OF ALLEGIANCE Mayor Melendez invited Peter Dawson to lead the audience in the Pledge of Allegiance. CLOSED SESSION (1a) Conference with Legal Counsel-Existing Litigation Pursuant to (Subdivision (a) of Gov't Code § 54956.9) Michel Knight vs. City of Lake Elsinore (Riverside Superior Court Case No. RIC10001036) (1b) Conference with Legal Counsel-Existinq_Litigation Pursuant to (Subdivision (a) of Gov't Code § 54956.9) Darwin Roger Booster Trust Dated 7/27/2005 (Riverside Superior Court Case No. RIP095857) City Attorney Leibold announced that the City Council met during the closed session to discuss two cases. The case of Michel Knight vs. City of Lake Elsinore is currently in Page 5 of 25 City Council Meeting May 25, 2010 the process of settlement negotiations however talks have staled. Council has recommended holding a Public Hearing on June 8th 2010 for possible revocation of the Conditional Use Permit. She indicated with regards to the case between Darwin Roger Booster there is no reportable action. PRESENTATIONS / CEREMONIALS • Recognition of Brandon Cleary for Achieving Eagle Scout Rank Mayor Melendez presented a Certificate of Recognition to Brandon Cleary for earning his Eagle Scout Badge. Brandon Cleary is the son of Police Chief Cleary. • Recognition of Police Officers Duane Parrish, Latisha Stamatelatos and Michael Dean for Auto Theft Recovery Efforts. Police Chief Cleary presented Certificates of Recognition to Officers Duane Parrish and Latisha Stamatelatos for the recovery of over $300,000 worth of stolen vehicles. Mayor Melendez thanked the Officers for all the effort on recovering the stolen vehicles. • Recognition of all members of the United States Armed Forces, past and present, on this Memorial Day, who have placed our Nation's safety before their own for generations. Mayor Melendez read the Proclamation for Memorial Day for all the members of the armed forces who gave the ultimate sacrifice of their lives for our nation's freedom. She requested the community to pay tribute to those whose lives were lost, by attending the ceremony at the City's Cemetery at 10:00 a.m. on Memorial Day. PUBLIC COMMENTS Sue Rebar advised the City Council and community of an upcoming fund raiser called "Jazz & Blues on the Green" to be held on June 19th at the Links at Summerly. She stated the event is to help raise money for the individuals while serving in the armed forces who are returning from Iraq or Afghanistan. Peter Dawson representing the US Coast Guard advised the community about Safe Boating Week and to put safety first by wearing a life jacket, never operate a boat while under the influence of alcohol or drugs, to participate in a safety boating course and have a free vessel safety check. Donna Franson advised the City Council and the community of an upcoming Citizen's Community Meeting to be held on Thursday May 27th at 7:00 p.m. at the Tuscany Hills Recreation Center. The meeting will be held to discuss the potential closing of the two local hospitals and requested those who are interested to attend to show their support. Page 6 of 25 City Council Meeting May 25, 2010 Greg Morrison representing Elsinore Valley Municipal Water District provided a brief update of the sewer project. He stated the repairs along Spring Street at the intersection of Heald & Sumner should be completed in about 45 days. Rick Bishop representing Western Riverside Council of Government (WRCOG) advised the City Council and community of their 19th annual General Assembly event to take place on Thursday, June 24, 2010 at the Morongo Resort & Casino. He stated those interested in attending the event may register on line at www.wrcog.cog.ca.us. CONSENT CALENDAR (2) Approval of City Council Minutes Recommendation: Approve the following minutes: (a) Regular City Council Meeting of April 27, 2010 (b) Joint City Council/Redevelopment Agency Meeting of May 11, 2010 (3) Warrant List Dated May 13. 2010 Recommendation: Authorize payment of Warrant List dated May 13, 2010. (4) Investment Report - April 2010 Recommendation: It is recommended the City Council receive and file. (5) Consideration of T.A.G.R.S. Service Level Agreement. Riverside County Sheriffs Department. Technical Service Bureau Recommendation: Approved and authorize the City Manager to execute T.A.G.R.S. Service Level Agreement with the Riverside County Sheriff's Department, Technical Service Bureau. (6) Consideration of Authorization for the City Manager to Modify and Existing Contract with ESA for the Preparation of an Environmental Impact Report Addendum for the Canyon Hills Specific Plan Amendment No. 3 Recommendation: It is recommended the City Council authorize the City Manager to enter into a contract with ESA for a new total amount estimated at $73,000. (7) Consideration of CC&R's Annual Consumer Price Index Increase Recommendation: It is recommended that the City Council receive and file. Page 7 of 25 City Council Meeting May 25, 2010 (8) Consideration of Third Amendment to Janitorial Services Contract with A&A Janitorial Services Recommendation: It is recommended that the City Council approve the Third Amendment to Services Contract with A&A Janitorial Services. Mayor Melendez pulled Item No. 5 from the Consent Calendar for discussion It was moved by Council Member Magee and seconded by Mayor Pro Tern Bhutta to approve Consent Calendar Items 2 through 4 and 6 through 8. The motion unanimously carried by the following vote: Ayes: Council Members: Buckley, Magee, Mayor Pro Tern Bhutta and Mayor Melendez. Noes: None. Absent: Hickman ITEMS PULLED FROM THE CONSENT CALENDAR (5) Consideration of T.A.G.R.S. Service Level Agreement, Riverside County Sheriff's Department, Technical Service Bureau Recommendation: Approve and authorize the City Manager to execute T.A.G.R.S. Service Level Agreement with the Riverside County Sheriffs Department, Technical Service Bureau. Mayor Melendez requested Information/Communications Manager Dennis to provide a brief report. Information/Communications Manager Dennis provided a brief summary to the City Council of what the program has to offer and how it works. Mayor Melendez asked if any other cities are currently using the program. Information/Communications Manager Dennis responded by saying several cities in Orange County and Los Angeles County are using the program. He also indicated that the City of Wildomar is considering the program. He stated the cost of the program would be paid through a Grant and therefore would be at no cost to the City. It was moved by Mayor Melendez and seconded by Council Member Buckley to approve and authorize the City Manager to execute the T.A.G.R.S. Service Level Agreement with the Riverside County Sheriffs Department, Technical Service Bureau. The motion unanimously carried by the following vote: Ayes: Council Members: Buckley, Magee, Mayor Pro Tern Bhutta and Mayor Melendez. Noes: None. Absent: Hickman. Page 8 of 25 City Council Meeting May 25, 2010 PUBLIC HEARING(S) None APPEAL(S) There are none. BUSINESS ITEM(S) (9) Discussion to Reconsider Temporary TUMF Reduction Recommendation: It is recommended that the City Council: (1) receive and file the report and take no action to adopt the revision to the City's TUMF ordinance; or (2) direct Staff to prepare a resolution for City Council consideration establishing a revised fee schedule applicable under the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program identifying the temporary TUMF reduction. Director of Public Works /City Engineer Seumalo provided a brief overview of the issue to City Council. Mayor Melendez opened the floor to discussion either for or against the project. Mark Knorringa representing Building Industry Association Riverside County (BIA) spoke in favor of the reduction. He stated the purpose of this reduction was an effort to stimulate the economy and put people back to work. He hoped Council would reconsider the reduction. Dave Garrison representing Marinita Development Company spoke in favor of the reduction. He indicated that any reduction in the costs would help out considerably and encouraged the City Council to reconsider the temporary reduction. Nam Joe representing Richmond American Homes spoke in favor of the reduction. He indicated that his company recently acquired 350 home sites and he felt this reduction would benefit his company. Mayor Melendez asked whether his company was ready to pull permits if the proposal passed. He stated this reduction would speed up the pace for pulling the required building permits. Council Member Magee asked him what the difference would be should Council not approve the reduction in the TUMF fees. Mr. Joe responded by saying it would be difficult to estimate; however, he stated they are planning on pulling 60 permits by June. Should the proposed reduction not pass, it could impact their business. Page 9 of 25 City Council Meeting May 25, 2010 Mayor Pro Tern Bhutta asked where the home sites were located. Mr. Joe responded by saying 118 home sites are located in Rosetta Canyon and the remaining are in Canyon Hills. Hardy Strozier representing Castle & Cooke spoke in favor of the temporary reduction in the TUMF fees. He stated it was very important to Castle & Cooke to have the Council reconsider this temporary reduction as it would have a significant & positive impact on development. Ed Fitzpatrick representing the Shopoff Group addressed Council stating that while he encouraged the reduction, he wasn't sure that by reducing the fees it would help stimulate the economy. Angela Wilson representing K. Hovnanian Homes spoke in favor of the reduction. She indicated by temporarily reducing the TUMF fees it would provide additional money to purchase land for future development. She encouraged Council to consider the temporary reduction of the fees. Council Member Buckley indicated that reducing the TUMF fees is extremely risky and therefore he cannot support the reduction. Mayor Melendez asked if a majority WRCOG member supported the 50% reduction Mr. Bishop responded by saying yes. He stated whatever the decision of the City Council is; make sure there is a legal foundation. Council Member Magee stated he would be in favor of supporting the reduction if it would improve economic development. However, he could not get a clear answer if the reduction would benefit the community. He stated if there was a nexus between cutting the fee and economic development, then he would be in favor of it, however he does not have that level of comfort. He suggested to Council to receive and file the item, but allow new information to come back anytime. Mayor Melendez requested the City Attorney to comment if the E-Verify could be used and if it would be considered legal. City Attorney Leibold indicated that she would need to research that question further. Mayor Pro Tern Bhutta stated she appreciated the idea; however, she has not seen any credible difference and is reluctant to support the temporary reduction. Mayor Melendez indicated she understands the risks and is in full support of getting people back to work, but the reduction would not be a guarantee that it would help. Mayor Pro Tem Bhutta indicated she would like to use other cities as a comparison. Page 10 of 25 City Council Meeting May 25, 2010 Mayor Melendez asked staff how much the City would lose in TUMF fees if they approved the temporary reduction. Public Works Director/City Engineer Seumalo responded by saying approximately $600,000. It was moved by Council Member Buckley and seconded by Council Member Magee to receive and file the reconsideration for temporary TUMF reduction, allowing interested parties to present to staff credible information concerning increased permit activity in communities that have reduced their TUMF with a nexus to the City. The motion unanimously carried by the following vote: Ayes: Council Members: Buckley, Magee, Mayor Pro Tern Bhutta and Mayor Melendez. Noes: None. Absent: Hickman The City Council recessed and convened to the Redevelopment Agency at 8:21 p.m. The City Council reconvened at 8:23 p.m. PUBLIC COMMENTS - NON-AGENDIZED ITEMS Chris Hyland resident of the City spoke of using the City issued phones for personal calls, which she observed while reviewing the City's cell phone invoices. She further stated she recently found that there is no City cell phone policy currently established and suggested to the City Council to adopt a policy prohibiting non-city business calls on city issued cell phones. CITY MANAGER COMMENTS City Manager Brady commented on the following: • Thursday, May 27th, there would be a Special meeting of the City Council from 5:00 p.m. to 7:00 p.m. to discuss FY 2010-2011 Budget at the City's Cultural Center which is open to the public • Monday, May 31St there would be a Memorial Day Community Service held at the Elsinore Valley Cemetery from 10:00 a.m. to 11:30 a.m. located on Collier Avenue. • Tuesday, June 1St would be the Student of the Year Dinner held at Sizzler Restaurant on Casino Drive from 5:30 p.m. to 7:30 p.m. He indicated the event is to recognize the seven students from the LEUSD celebrating their outstanding efforts. • Saturday, June 5th there would be the Just 4 Kids Fishing Derby held at the Lake Elsinore Levee (Diamond Stadium) from 7:30 a.m. to 10:30 a.m. For further information please call (951) 245-0442. Page 11 of 25 City Council Meeting May 25, 2010 • Saturday, June 5th would be the Household Hazardous Waste Collection Event which is free to City and County residents. The location for dropping off the waste is at the City's Public Work's Yard located at 521 N. Langstaff Street in Lake Elsinore. CITY ATTORNEY COMMENTS No comments. COMMITTEE REPORTS No comments. CITY COUNCIL COMMENTS Council Member Buckley congratulated Chief Cleary's son for his achievement of earning his Eagle Scout Badge. He reminded the community of the Jazz and Blues on the Green to be held on June 1gth at the Links at Summerly. He advised the public that members of the community that live in the area of Canyon Lake or parts of the City of Riverside would be receiving ballots on Friday to join the Northwestern Vector Control District. Mayor Pro Tern Bhutta reminded the community to take a moment to recognize the real purpose of Memorial Day. She updated the community of the dates fro the local graduations in town and congratulated all the graduates. Council Member Magee spoke on the topic Ms. Hyland brought to the City Council's attention. He reminded the staff to update the policy manual to include a City cell phone policy. He recognized the City staff members in the Public Works Department for applying for a $103,000 grant through SB821 which was for pedestrian walk-ways. This grant would help provide a necessary sidewalk at Grand and Riverside Drive. He spoke of the loitering activity along Main Street and advised the community that the City Council is aware of the situation and is currently working with the local law enforcement officials and EVMWD. He spoke about the City's current budget and how the City will have the first budget meeting for FY 2010-2011 to try to narrow the City's significant budget deficit. He recognized the City's Chamber of Commerce for the new City map which is available at the Chamber of Commerce. Mayor Melendez concurred with Council Member Magee's comments regarding the day labors loitering along Main Street and advised the community that the Council is aware of the issue. She indicated on Friday she would be meeting with an organization called Labor Ready who can provide legal workers and eventually get the illegal workers off the streets. She noted Mr. Fitzpatrick wishing to address the City Council. Mr. Fitzpatrick spoke briefing of how his father served in the Navy and expressed to the Council that everyday he appreciates the people who have lost their lives while serving in the armed forces. Page 12 of 25 City Council Meeting May 25, 2010 ADJOURNMENT There being no further business to come before the Council the meeting was adjourned at 8:40 p.m. to a regular meeting to be held on Tuesday, June 8, 2010, at 7:00 p.m. to be held in the Cultural Center located at 183 N. Main Street, Lake Elsinore, CA 92530 California. MELISSA MELENDEZ, MAYOR CITY OF LAKE ELSINORE ATTEST: CAROL COWLEY, INTERIM CITY CLERK CITY OF LAKE ELSINORE Page 13 of 25 Page 14 of 25 MINUTES SPECIAL CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MAY 27, 2010 CALL TO ORDER Mayor Melendez called the meeting to order at 5:01 p.m. PLEDGE OF ALLEGIANCE Mayor Melendez invited Ms. Renee Cummings to lead the audience in the Pledge of Allegiance. ROLL CALL PRESENT: MAYOR MELENDEZ MAYOR PRO TEM BHUTTA COUNCIL MEMBER BUCKLEY COUNCIL MEMBER HICKMAN COUNCIL MEMBER MAGEE ABSENT: NONE PUBLIC COMMENTS There were none. CLOSED SESSION There were none. DISCUSSION ITEM 1. Consideration of Fiscal Year 2010-2011 City Operating Budget Recommendation: It is recommended the City Council review the proposed Fiscal Year 2010-2011 proposed Operating Budget. Mayor Melendez asked if anyone wished to speak either for or against the issue. Kevin Davis, resident of the City, spoke of the allocated funds set aside for the Chamber and does not feel the Chamber of Commerce should be allocated that much Page 15 of 25 Special City Council Meeting Page 2 of 5 May 27, 2010 money based on the lack of information on their Web site particularly pertaining to water sports activity. Genie Kelley representing the Boys & Girls Club thanked City Council for their continued support over the past several years and wanted to make sure the Boys & Girls Club was being considered in the budget for the next fiscal year. Renee Cummings, resident of the City and a member of the Public Safety Advisory Commission (PSAC) expressed her concerns with reducing the funds for the commission and requested City Council to reconsider because of the significant contributions the committee has made. Richard Knapp, resident of the City requested clarification on the Public Safety Expenditures. Director of Administrative Services Riley explained that the funds used for public safety comes from the General Fund and the Special Revenue. There being no further requests to speak, Mayor Melendez requested the budget presentation. Director of Administrative Services Riley provided a PowerPoint presentation to the City Council which showed a $3.8 million shortfall. He indicated the portion of the shortfall is due to the reassessment of property which has an effect on the property tax revenue, the use of the $2.7 "Rainy Day" fund, the law enforcement 5% increase and the personnel costs. Mayor Melendez requested Council Members comments on the budget. Council Member Buckley commented on the following: • He pointed out that if the State had not taken $7 million that amount could have been repaid ahead of time. • He spoke of the support to community organizations such as the Boys & Girls Club which would come from the CDBG funds. • He suggested the PSAC have quarterly action meetings or monthly listening meetings where the public can attend and address their concerns. • He spoke of the boat launch fees increasing and asked if the City would be increasing the fees for non-residence. Director of Lake & Aquatics Kilroy responded by saying the fees that are increasing are the daily use passes. Council Member Hickman commented on the following and staff provided the following responses: • He pointed out that the economy is showing some signs of improvement, such as a slight increase of construction. He stated the City should continue to offer services that are available. Page 16 of 25 Special City Council Meeting Page 3 of 5 May 27, 2010 • He complimented the City's Union for their hard work. He pointed out that the City reduced staff members by 25% and yet the staff members are continuing to provide great service to the community. • He expressed the "Rainy Day" fund was created to be used during times like this, and is almost empty. • He noted that the City's employees have suffered along with the rest of the community and suggested extending their contract for another two years to show good faith. • He suggested terminating the car allowance for staff members and reimburse for mileage only. • He spoke of the E-Verify system and thinks the City's Code Enforcement could handle the additional task. • He requested a bus to help out the seniors in the community and noted there isn't much that could be done to help with the General Fund. • He asked how important the funds were for the Rape Crisis. Police Chief Cleary pointed out to the Council the benefits that the program provides. Council Member Hickman suggested cutting funds from the TIP program to allow money for the Unity In The Community Parade and the Memorial Day Service ceremony. Council Member Magee commented on the following: • He spoke of the Boys & Girls Club allocated funds in the amount of $9,500. • He expressed that he did not see any allocated funds for Elsinore Valley Arts Network. City Manager Brady responded by saying the funds were included in the Parks & Recreation's budget. • He thanked the members of the Budget Committee as it was not an easy task. • He pointed out that the City would be reducing funds from the Police Department and would not open the Rosetta Canyon Fire Station. • He spoke of how the City is looking at raising fees including the boat launch and raising the franchising fees. • He spoke of how the Budget Committee is requesting staff to forego the cost of living increases, merit pay increases and to continue to have two furlough days per month. • He pointed out that he received many email messages pertaining to the cuts recommended to PSAC. He stated the PSAC Chairman who also serves as the Chairman of the Board of the Chamber of Commerce did not mention any cuts to the Chamber. He stated if they have enough money perhaps they need to reduce their funds. He recommended increasing the funds from the Chamber of Commerce and back-fill the funds into the PSAC while asking staff and the Commission members to continue to look at ways to reduce costs. • He suggested reducing funds by $500 under the City Council budget for the EDC luncheons and local regional events. • He suggested keeping the car allowance for the employees. • He spoke of sharing the cost of the narcotics officer with the City of Wildomar because neither the City of Lake Elsinore nor Wildomar has the funds for that at this time. Page 17 of 25 Special City Council Meeting Page 4 of 5 May 27, 2010 • He spoke of training and certifying reserve officers that could help backfill some of the cuts that are proposed in the Police Department. • He suggested to the employees to ask their union representative to carry a message back to Sacramento to stop taking money away from the City in order to balance their own budget. Mayor Pro Tem Bhutta commented on the following: • She spoke highly of the Budget Committee and indicated they worked very hard to come up with the numbers: • She suggested possibly having PSAC take on some of the responsibilities that staff would normally handle. • She believed that the recommendations are appropriate and thanked staff for their help with the budget. • She expressed to the audience the community that the City needs volunteers and any help would be appreciated. City Treasure Baldwin commented on the following: • He commented on the amazing diligence the Budget Committee had in accomplishing this budget. • He spoke of how the City employees are working more and making less money. • He predicted that next year there won't be enough money for charities and everyone will have to pull together to make it work. Mayor Melendez commented on the following and staff provided the following responses: • She spoke of the car allowance and typically in the private sector they have eliminated the car allowance and converted to mileage expense which she feels is more appropriate. She requested clarification on how much is allowed. Director of Administrative Services Riley provided a breakdown of the car allowance of the department heads and managers which total $21,600, which is a taxable amount. • She addressed the possibility of extending the contract with the City employee union and suggested extending the contract for one year. • She requested clarification on the amount needed for EVAN. Director of Parks and Aquatics Kilroy responded by saying $12,000 has been set aside for EVAN. • She supported having the funds remain for PSAC and asked if it was necessary for legal counsel to attend those meetings. City Attorney Leibold responded by saying it is not a legal requirement for the City Attorney to attend those meetings. • She asked if the Chamber of Commerce was required to pay the necessary fees associated with an event. Director of Parks and Aquatics Kilroy responded by saying they are charged a deposit for staff time to clean up after the event. • She thanked all the Departments, City Manager and employees for their help with preparing the budget. Page 18 of 25 Special City Council Meeting Page 5 of 5 May 27, 2010 Shawn Slater employee of the City of Lake Elsinore and Union representative spoke of the issues that were addressed by City Council. He indicated that he would provide the information discussed back to the City employees. Summary of the discussion was to research having mileage reimbursement versus car allowance, reduce funds from the Chamber of Commerce and increase the funds to the Public Safety Advisory Commission and research an extension of the labor union employee contract for two years. There was mention that the School District should step up to the plat with funds for the Chamber of Commerce and the Unity in the Community event since that was the District's event to begin with. ADJOURNMENT There being no further business to come before the Council and Agency Board, the special meeting was adjourned at 6:52 p.m. and returned to the Regular City Council meeting at 7:00 p.m. on June 81, 2010. MELISSA MELENDEZ, MAYOR CITY OF LAKE ELSINORE ATTEST: CAROL COWLEY, INTERIM CITY CLERK CITY OF LAKE ELSINORE Page 19 of 25 Page 20 of 25 MINUTES SPECIAL CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA MONDAY, JUNE 07, 2010 CALL TO ORDER Mayor Melendez called the special meeting to order at 5:00 p.m. ROLL CALL PRESENT: MAYOR MELENDEZ MAYOR PRO TEM BHUTTA COUNCIL MEMBER BUCKLEY COUNCIL MEMBER HICKMAN COUNCIL MEMBER MAGEE ABSENT: NONE PLEDGE OF ALLEGAINCE Mayor Melendez invited Mr. Morsch to lead the audience in the Pledge of Allegiance. PUBLIC COMMENTS There were none. DISCUSSION ITEM 1. Consideration of Fiscal Year 2010-2010 City Operating Budget Recommendation: It is recommended the City Council review the proposed Fiscal Year 2010-2011 proposed Operating Budget Mayor Melendez asked the City Clerk if there were any speakers who wished to address the City Council. City Clerk Cowley replied by saying there were several speakers who wished to address the Council. Kathie Delgado, representing LIUNA Local 777 indicated that the employees for the City of Lake Elsinore recognize that the City Council has an important and difficult decision to make with regards to the City's budget gap. She indicated the employees have not yet finished their deliberations on what position they would take as there are several issues to consider and they have requested more time to evaluate. Page 21 of 25 Special City Council Meeting Page 2 of 5 June 07, 2010 Ron Hewison, representing Helping Our People in Elsinore (H.O.P.E) thanked the City Council for all of their support over the past several years. He stated HOPE continued to serve the community with charitable contributions and requested the Council continue to support the organization for the next fiscal year. Natasha Johnson, representing Lake Elsinore Valley Chamber of Commerce (LEVCC) provided an explanation to the audience of what the Chamber of Commerce provides to the City. Sachin Trivedi, representing the Lake Elsinore Valley Chamber of Commerce advised the City Council how the Chamber provides the community and visitors of the community with information regarding the City. He indicated that due to the furloughs when City Hall is closed every Friday, the Chamber of Commerce has been busy providing information to the public on those days. Tony Lopiccolo, Director of the Lake Elsinore Chamber of Commerce stated as a partner with the City, the Chamber of Commerce has taken extraordinary measures to provide additional resources to the public with promoting businesses, development and to increase funding and participation. He indicated the Chamber attracts visitors to grow the City's tourism business and developed relationships with outside promoters. He invited the Council, City Manager and Commissions to attend the monthly EWDC luncheon at no charge. Tom Tisdale, retired County Fire Chief spoke of the Trauma Intervention Program for Southwest Riverside County (TIP). He noted the Budget Committee is considering a reduction of funds to the organization and thanked the Council for their continued support to the organization. He advised the City Council of the services provided by TIF and how it supports law enforcement win getting their work done. Jay Stewart, representing the Public Safety Advisory Commission (PSAC) thanked the City Council for the continued support to the committee. He stated that the Commission is mindful of the City's budget challenges during these critical economical times. He advised the audience and the Council of the upcoming meeting on June 9th and requested any cuts that are being considered be finalized after the meeting, so the Commission has an opportunity to make suggested cuts. Nancy Lassey, City employee of Lake Elsinore thanked the City Council for considering an extension of the City employee's contract. She provided options to the Council for budget cuts such as reducing the funds to the Chamber to what it was in 1999, reducing the funds PSAC and the legal costs associated with the committee. She suggested reducing funds for car allowance to staff, restructure the administrative leave to a use it or lose it basis, and to utilize the volunteers to help the City staff. She expressed to the City Council that the proposed reduced funds comes to approximately $105,000 which could be used to help save a job or allow a partial cost of living increase. Page 22 of 25 Special City Council Meeting Page 3 of 5 June 07, 2010 Crystal Robinson, a City employee spoke of new events that have come to the City and suggested the Council increase revenue by increasing the percentage fee associated with the events. She indicated that for the last Wagon Wheel festival the City collected no fees for the event and the City could increase their revenue with this proposal. Shawn Slater, a City employee stated it has been an honor working for the City since 2004 and how the City of Lake Elsinore is unique. He stated that he does not envy the decision Council has to make regarding the City budget and how their decision to cut staff would have an impact on the service level that is provided to the community. He stated the staff has provided Council with some useful options and hoped the Council would consider the options. Kim Cousins, representing the Lake Elsinore Chamber of Commerce stated the Chamber is here to work with the City as business partners working to develop additional opportunities for growth to the City. He stated that visitors increase the sales tax as well as lake use fees, and he spoke of a potential drive through restaurant coming to the City. He addressed other ways to increase revenue to the City to offset the operating costs. There being no additional speakers, Mayor Melendez brought the discussion back to the dais for Council Members comments. Council Member Hickman stated that he felt the City has cut enough and needs to generate income such as extending the Weed Abatement program to 12 months. He spoke of how to generate income and agreed to look into charging a percentage for special events. Council Member Magee thanked all of the speakers that came before the City Council. He indicated that the Council Members are confident that only three positions would be cut. He suggested the Union write the State representatives to stop taking funds from local government, as the City needs to keep the money. He stated with respect to the charities, the proposal before the budget committee needs to stay as is. He commended staff employees who addressed City Council and although he does not agree with all of the suggestions, he heard their concerns. He stated he had the opportunity to meet with the Chamber of Commerce President and discussed the possible increase of the transient occupancy tax (TOT). He stated he has asked the City Manger to research what the City is generating and how the City could take action by August 1St. He stated he is somewhat disappointed with the PSAC not willing to reduce their funds and stated he does believe the citizen's of the community need the strong outreach yet the commission has a responsibility to limit staff time and cost back to the City. He noted that the staff's car allowance is considered a perk which is part of the employees pay structure and pointed out this would be the third year in a row that staff has agreed not to take a cost of living or merit increase. He stated he supports the recommendations as they stand and allowing the monthly meetings for PSAC, and Page 23 of 25 Special City Council Meeting Page 4 of 5 June 07, 2010 make up the difference through the Rainy Day fund, recognizing that staff could back fill the Rainy Day fund with funds from the TOT increase. Council Member Buckley concurred with most of Council Member Magee's recommendations. He suggested he would be in support of extending the union agreement if the union would consider the two tier pension plan. He noted there must be a better way to increase funds through special events and the Stadium. Mayor Pro Tern Bhutta appreciated the suggestions particularly with generating revenue for the City. She stated increasing the TOT is a good idea as well as attracting new businesses which she realizes the Chamber of Commerce is actively doing. She thanked the employees who addressed the Council and would agree to a one year extension as well as a two tier retirement. She feels that the proposed funds for the charitable organizations are sufficient; however next year may not be the same. She asked the PSAC to find ways to come up with cutting costs and agreed with using the Rainy Day fund to off set the costs. Commissioner Stewart agreed to have PSAC look at ways to reduce the costs and suggested not having the City's legal representative present. City Treasure Baldwin asked the City Manager what it was going to cost the City for repayment from the Redevelopment Agency. City Manager Brady replied by saying essentially having it paid off sooner. He stated there is a loan that the City made through the Redevelopment Agency and the City is advancing the payment on the loan. He stated the City is proposing to use $1.75 million this year to help balance the budget. City Treasure Baldwin spoke of the Rainy Day fund and after this year it would be $950,000 and it looks as though most of it would be used for the next budget year. He suggested not giving money to charities when the City doesn't have the extra funds. Mayor Melendez spoke of her concerns with balancing the City's budget which means that reductions need to be made. She pointed out that the City is in a very critical situation and next year there may not be those funds available. She spoke of the cut to the Police Department and to City staff and the City must reduce their expenses due to a failing economy. She stated she is not in agreement with leaving the proposed budget as it is. She stated she does support extending the employee's contract as the staff members are already taking a loss. She agreed to increase the percentage for special events and have the event be responsible for cleaning up afterwards and not be the responsibility of the employees. She agreed to research the increase to the TOT from the hotels in the community. She asked the City Manager how much the CDBG funds were and who would receive these funds. City Manager Brady stated the funds vary per year and the City gives out approximately 15% of those funds. He stated the funds could be used for Capitol Improvements or used for the City's Code Enforcement Department and must be used in an area that meets the criteria for income levels. She asked the City Manager about the policy for cashing out the administrative leave. City Manager Brady responded by saying it is the City's policy to not cash out administrative leave. He stated the only person who has cashed out administrative leave was himself, which is part of his contract. He stated it is difficult for him to take the time off due his Page 24 of 25 Special City Council Meeting Page 5 of 5 June 07. 2010 responsibilities. Mayor Melendez did address the three positions that would be eliminated and stated that the number is not a guarantee. She stated the City Council has to make a difficult decision and the Council cares about losing the positions. She advised the City Council that Chairman Norkin of the PSAC did send her an email and requested the letter be entered into the record. Mayor Melendez asked what the $31,000 under economic development was for. City Manager Brady responded that the funds were put into a separate budget to identify the City's activities such as licensing software and commercial items that staff prepares for economic development purposes. Council Member Hickman reiterated his statement from the last meeting indicating the funds have to be cut from the charitable organizations with the exception of the Boys & Girls Club. He asked if the Rape Crisis funds not get used, would the funds go back to the City. City Manager Brady was unsure. Council Member suggested having some of the CDBG funds go to the Boys and Girls Club and give $1,000 to the Memorial Day fund. Mayor Melendez pointed out that the budget agenda for the next meeting is substantially smaller than last year and does not contain all of the details. She felt the detailed information was necessary for the Council and the public. The City Manager Brady replied by saying the detailed sheets were eliminated in order to expedite the process. She thanked the audience for their participation and for being so responsive to the Council. ADJOURNMENT There being no further business to come before the Council and Agency Board, the special meeting was adjourned at 6:23 p.m. and returned to the Regular City Council meeting at 7:00 p.m. on June 8, 2010. MELISSA MELENDEZ, MAYOR CITY OF LAKE ELSINORE ATTEST: CAROL COWLEY, INTERIM CITY CLERK CITY OF LAKE ELSINORE Page 25 of 25