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Home My WebLink About02-23-2010 PFA (2)MINUTES JOINT CITY COUNCIL /REDEVELOPMENT AGENCY PUBLIC FINANCING AUTHORITY CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, FEBRUARY 23, 2010 .............................................................................. ............................... CALL TO ORDER — 4:00 P.M. Mayor Melendez called the Joint Study Session to order at 4:02 p.m. ROLL CALL PRESENT: MAYOR MELENDEZ MAYOR PRO TEM BHUTTA COUNCIL MEMBER HICKMAN COUNCIL MEMBER MAGEE ABSENT: COUNCIL MEMBER BUCKLEY Also present: City Manager Brady, City Attorney Leibold, Director of Administrative Services Riley, Director of Community Development Weiner, Public Works Director /City Engineer Seumalo, Director of Lake and Aquatics Kilroy, Information /Communications Manager Dennis and Interim City Clerk Cowley. CLOSED SESSION 1a. Public Employment (Gov't Code § 54957): City Clerk 1 b. Conference with Legal Counsel - Existing Litigation (Subdivision (a) of Gov't Code § 54956.9) In Re the Darwin Rogers Booster Trust Dated 7/27/2005 (Riverside Superior Court Case No. RIP 095857) 1c. Conference with Legal Counsel - Existing Litigation (Subdivision (a) of Gov't Code § 54956.9) Konieczny v. City of Lake Elsinore (Riverside Superior Court Case No. RIC 503156) Joint City Council Study Session Page 2 of 12 February 23, 2010 1d. Conference with Legal Counsel- Anticipated Litigation Significant exposure to litigation pursuant to subdivision (b) of Gov't Code Section 54956.9: 1 potential case. PRESENTATIONS / CEREMONIALS None. PUBLIC COMMENTS — NON AGENDIZED ITEMS No public comments CONSENT CALENDAR 2. Approval of City Council Minutes Recommendation: Approve the following minutes: 1. City Council / Redevelopment Agency / Public Finance Authority Joint Study Session Minutes of January 26, 2010. 2. Regular City Council Minutes of January 26, 2010. 3. Warrant List Dated February 11, 2010 Recommendation: 1. Authorize payment of Warrant List dated February 11, 2010. Mayor Pro -Tem Bhutta requested clarification regarding Warrant List No. 102055 to D &S Electric in the amount of $2,140.00. Public Works Director /City Engineer Seumalo replied the funds were used for street light repair service. Mayor Pro -Tem Bhutta requested clarification regarding Warrant List No. 102111 to Pauley Equipment of Temecula, Inc. in the amount of $1,292.18. Public Works Director /City Engineer Seumalo advised the warrant was for repairing weed abatement equipment. Mayor Pro -Tem Bhutta requested clarification regarding Warrant List No. 102164 for We -Do Equipment in the amount of $6,692.48. Joint City Council Study Session Page 3 of 12 February 23, 2010 Police Chief Cleary responded by saying the warrant was used for the lighting equipment currently used for check - points. Council Member Hickman requested clarification regarding Warrant List No. 102128 for RKW & MLW Elsinore L.P. in the amount of $69,424.11. Director of Administrative Services Riley advised the warrant was to refund an applicant regarding unused funds for a development project. Mayor Melendez asked if the funds to Golden State Concessions & Catering of $3,700 were already paid. Director of Administrative Services Riley replied by saying they had not yet billed the City for the services. Mayor Melendez requested clarification regarding the $100.00 for International Code Council. Inc. Director of Community Development Weiner advised the warrant was for updating the Building and Safety Code books. 4. Investment Report— January 2010 Recommendation: 1. Receive and file. 5. Purchase of Backhoe and Loader Recommendation: That the City Council: 1. Authorize staff to purchase a backhoe tractor and front end loader from Ritchie Brothers Auction Service as described in this report; and 2. Authorize a not to exceed amount of $150,000 from the City's AQMD funds for the purchase of a backhoe tractor and front end loader from Ritchie Brothers Auction Service as described in this report. Mayor Pro -Tem Bhutta asked if there were any anticipated future needs for the AQMD funds. Public Works Director /City Engineer Seumalo replied there may be some annual fees associated, however staff does not anticipate exceeding that amount. Joint City Council Study Session Page 4 of 12 February 23, 2010 Council Member Magee thanked staff for moving forward and expressed his disappointment in the over regulation of the State requirements. He explained the equipment could run eight -days a week without causing any harm relative to air quality standards. Council Member Hickman asked staff how many other diesel units the City has and what would the cost be to correct or modify these vehicles in order to meet the current State air quality standards. Staff member Rick DeSantiago replied by saying the City owns very few diesel operated vehicles. He stated it would take approximately $15,000 per vehicle to modify the vehicles which would only be good up to the year 2016. Mayor Melendez asked how much the City reserve had for the replacement of vehicles and whether the funds were replenished every year. Public Works Director /City Engineer Seumalo replied by saying the City reserved approximately $200,000 of which $55,000 would remain once the vehicles have been purchased. Director of Administrative Services Riley stated the City receives approximately $45,000 every year which accumulates, however, if the funds are not used the State has the option to withhold funds for the following year. 6. Purchase of Compact Tractor Recommendation: That the City Council: 1. Authorize staff to move forward with the purchase of a 2007 A300 Bobcat Skid Steer compact tractor from Inland Bobcat located in Riverside, California; and 2. Authorize an amount of $27,188 from the City's NPDES funds for the purchase of a 2007 A300 Bobcat Skid Steer compact tractor from the vendor Inland Bobcat located in Riverside, California. Mayor Pro Tern Bhutta asked what the City has been spending on the rental of this equipment. Public Works Director /City Engineer Seumalo replied by saying the estimate is high particularly during the rainy season, however he did not have the information available but could supply her with the figure after the meeting. Joint City Council Study Session Page 5 of 12 February 23, 2010 7. A Request for the City of Lake Elsinore to Adopt a Resolution of Support for the Establishment of a Regional Scholarship Pageant Recommendation: 1. It is recommended that the City Council adopt Resolution No. 2010 -005 supporting the establishment of a regional scholarship pageant by Southwest California Pageants. 8. A Resolution of the City of Lake Elsinore Supporting an Adjustment to the Hub Zone Boundary Recommendation: 1. It is recommended that the City Council adopt Resolution No. 2010 -006 supporting an adjustment to the HUB Zone boundary. Mayor Pro Tem Bhutta asked if the current Census numbers would have any effect on the zone boundaries. City Manager Brady replied by saying the Census number could have an effect because it is based on the Census information that is provided. He included the HUB Zone boundary was based on the 2000 Census and could change this year. Council Member Magee asked if the adjustment included Casa De Mobile R.V. Park. City Manager Brady indicated it replied by saying, "no" it would be just for the industrial portions of the non - developed area. Council Member Hickman asked if this would include a tax free zone. City Manager Brady provides an opportunity for Federal contracting, should it meet the requirements. He stated a certain number of the employees must reside in the HUB Zone area. 9. Construction on State Highway Route 74 from 0.20 Miles West of Route 15 to 0.6 Miles East of Route 15 Notice of Completion / Change Orders Recommendation: That the City Council: 1. Approve projects final change order in the amount of $927,104.43; 2. Authorize the City Manager to execute the contract change order; Joint City Council Study Session February 23, 2010 Page 6 of 12 3. Authorize staff to use TUMF funds in the amount of $277,104.43; 4. Accept the improvement within the City right -of -way into the City maintained system; 5. File the Notice of Completion with the County Recorder; and 6. Release all retention monies 35 -days after the filing of the Notice of Completion. Council Member Magee requested clarification on the figures outlined in the Staff Report, the length of time to complete the project and the lack of landscaping. Public Works Director /City Engineer Seumalo pointed out to Council Member Magee the itemized table in the Staff Report which outlines the change orders. Council Member Magee asked what the consequences would be should Council deny the change orders. Public Works Director /City Engineer Seumalo replied by saying more than likely litigation would follow. He noted that he did not have a chance to review the plan and realizes there were issues, however, he indicated he has since thoroughly reviewed the plans and are catching many of the issues. Mayor Melendez asked for clarification regarding the cost increases for Aggregate Base Class II at $36 per yard. She noted North County Sand and Gravel offer the same at $15 per yard. Public Works Director /City Engineer Seumalo responded by saying the price per cubic yard includes the purchase of the material, placement, and compacting the material. Mayor Melendez advised staff the numbers are confusing and requested them to explain how they came up with the figures. Director of Administrative Services Riley added the figures can appear confusing however staff is confident the amount is correct. Council Member Magee suggested that the item be continued, because he is still not clear of the landscaping issues. Public Works Director /City Engineer Seumalo stated the plans called for a mixed use to mitigate erosion which includes wild grasses that are native to California and do not require irrigation. Joint City Council Study Session February 23, 2010 PUBLIC HEARING(S) Page 7 of 12 10. Resolution Determining the Validity of Prior Proceedings Relating to the Establishment of City of Lake Elsinore Communitv Facilities District No. 2009 -1 (Parks. Open Space and Street Lighting Maintenance); Call a Special Election.- Canvass Election Results: Authorizing Levy of Special Taxes for CFD 2009 -1 Recommendation: That the City Council: 1. Open the public hearing and take testimony; Adopt Resolution No. 2010 -007 determining the validity of prior proceedings relating to the formation of City of Lake Elsinore Community Facilities District No. 2009 -1 (Parks, Open Space and Street Lighting Maintenance); 3. Adopt Resolution No. 2010 -008 acting on behalf of the City of Lake Elsinore Community Facilities District No. 2009 -1 (Parks, Open Space and Street Lighting Maintenance) calling a special election; 4. Adopt Resolution No. 2010 -009 acting on behalf of the City of Lake Elsinore Community Facilities District No. 2009 -1 (Parks, Open Space and Street Lighting Maintenance) canvassing of the results of the election; and 5. Waive further reading and introduce by title only ordinance No. 2010 -1273 acting as the legislative body of the City of Lake Elsinore Community Facilities District No. 2009 -1 (Parks, Open Space and Street Lighting Maintenance) authorizing the levy of special tax within said district. APPEAL(S) 11.Appeal of the Planning Commission Action Relative to the Revocation of Conditional Use Permit No. 2008 -09. for Live Music. Dancing and Entertainment within Designated Areas of an Existing Bowling and Entertainment Center (Trevi Lanes) Located at 32250 Mission Trail, Lake Elsinore, CA 92530 Recommendation: The City Council has the following options: Uphold the Planning Commission's decision to revoke Conditional Use Permit No. 2008 -09; 2. Consider the appeal and overturn the Planning Commission's decision to revoke Conditional Use Permit No. 2008 -09; Joint City Council Study Session Page 8 of 12 February 23, 2010 3. Suspend or modify Conditional Use Permit No. 2008 -09; and 4. Continue the item to either a date certain or off calendar. Council Member Hickman asked if Council received a letter requesting a continuance. Mayor Melendez responded by saying the letter requesting continuance was placed in the Council's mailboxes. Council Member Hickman expressed his request to have the item continued due to all of the activity with the Recall Election. BUSINESS ITEMS) 12.A Resolution of the City Council of the City of Lake Elsinore, California, Approving Loan Agreements to be Entered into by the Redevelopment Agency of the City of Lake Elsinore in Connection with the Issuance of the Lake Elsinore Public Financing Taking of Certain Other Actions Related Thereto. Recommendation: 1. That the City Council adopt Resolution No. CC 2010 -010 and approve execution of the necessary documents to issue Bonds in an amount not to exceed $11 million to refinance the Authority's 1995 Bonds; 2. That the Redevelopment Agency adopt the attached Resolution No. RDA 2010- 001 and approve execution of the necessary documents to issue Bonds in an amount not to exceed $11 million to refinance the Authority's 1995 Bonds; 3. That the Public Finance Authority adopt the attached Resolution No. PFA 2010- 001 and approve execution of the necessary documents to issue Bonds in an amount not to exceed $11 million to refinance the Authority's 1995 Bonds. PUBLIC COMMENTS — NON -AGENDIZED ITEMS None The City Council recessed and convened to the Redevelopment Agency. REDEVELOPMENT AGENCY Called to order at 4:29 pm. All members present except Vice -Chair Buckley. Joint City Council Study Session Page 9 of 12 February 23, 2010 CLOSED SESSION 1. Conference with Legal Counsel- Anticipated Litigation Initiation of litigation pursuant to subdivision (c) of Gov't Code Section 54956.9: 1 potential case. Chairman Magee informed the Agency that additional information was received after the posting of the Redevelopment Agency Agenda. He requested City A##orney Leibold to review the correct proceedings with Agency. City Attorney Leibold indicated correspondence was received on February 22, 2010 from the Lake Elsinore School District which requires a unanimous vote of the Agency to have it placed on the Agenda for discussion. Motion by Bhutta second by Melendez to add the closed session item to the agenda. The motion unanimously carried by: AYES: Members: Hickman, Melendez, Bhutta and Chair Magee. ABSENT: Vice Chair Buckley. PUBLIC COMMENTS — AGENDIZED ITEMS None CONSENT CALENDAR ITEMS) 2. Approval of Redevelopment Agency Minutes Recommendation: Approve the following Redevelopment Agency Minutes: 1. Joint Meeting —January 26, 2010 2. Regular Meeting —January 26, 2010 3. Warrant List Dated February 11, 2010 Recommendation: 1. Authorize payment of Warrant List dated February 11, 2010. Agency Member Melendez requested clarification regarding check number 6774. Director of Administrative Services Riley replied by saying the funds were a reimbursement from the Redevelopment Agency's Fund to the City. Joint City Council Study Session February 23, 2010 4. Investment Report —January 2010 Recommendation: Receive and File. PUBLIC HEARING(S) No Public Hearings. BUSINESS ITEM(S) Page 10 of 12 5. A Resolution of the Governing Board of the Redevelopment Agency of the City of Lake Elsinore Approving the Issuance of Lake Elsinore Public Financing Authority Tax Allocation Revenue Bonds (1995 Series A Refunding), 2010 Series B, in the Aggregate Principal Amount not to Exceed $11,000,000; Approving a Bond Purchase Contract Loan Agreements, a Continuing Disclosure Agreement and a Preliminary Official Statement; and Authorizing the Taking of Certain Other Actions Related Thereto. Recommendation: 1. That the Agency Board adopt Resolution No. 2010 -001 RDA and approve execution of the necessary documents to issue Bonds in an amount not to exceed $11 million to refinance the Authority's 1995 Bonds. Chairman Magee noted that this item is for the Redevelopment Agency and the Public Financing Authority and asked the City Attorney how to handle the procedures. City Attorney Leibold suggested conducting the meeting concurrently and have all bodies in session at the same time, have the staff report read and each body could take its action for the resolution. Chairman Magee asked the Board if they agreed. There was a consensus by the Board. PUBLIC COMMENTS — NON -AGENDIZED ITEMS — 3 MINUTES No public comments. There being no further business to come before the Agency Board, the meeting adjourned at 4:34 pm and convened to the Public Financing Authority. Joint City Council Study Session Page 11 of 12 February 23, 2010 PUBLIC FINANCE AUTHORITY Chairman Hickman called the meeting to order at 4:34 pm. ROLL CALL PRESENT: CHAIRMAN HICKMAN VICE -CHAIR BHUTTA MEMBER MAGEE MEMBER MELENDEZ ABSENT: MEMBER BUCKLEY Also present: Executive Director Brady, Agency Counsel Leibold, Director of Administrative Services Riley, Director of Community Development Weiner, Public Works Director /City Engineer Seumalo, Director of Lake and Aquatics Kilroy, Information /Communications Manager Dennis and Agency Secretary Cowley. PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES No public comments. CONSENT CALENDAR 1. Approval of Public Finance Authority Minutes Recommendations: Approve the following Public Finance Authority Minutes: 1. Minutes of Meeting of December 21, 2008. 2. Minutes of Meeting of January 26, 2010. Mayor Pro Tern noted some corrections to the December 21, 2008 Public Finance Authority Minutes, should be corrected to reflect December 21, 2009 and the Chairman was Mr. Hickman. Agency Secretary Cowley advised the Authority that these are the minutes for December 21, 2008 which had not been previously approved. There being no further business, Chairman Hickman adjourned the Public Finance Authority meeting at 4:35 p.m. The City Council reconvened at 4:35 pm. Joint City Council Study Session February 23, 2010 LEGAL COUNSEL COMMENTS Page 12 of 12 City Attorney Leibold announced that the City Council would adjourn to Closed Session at 5:00 p.m. to discuss the items listed as 1a through 1d under Closed Session. ADJOURNMENT There being no further business to come before the Council and Agency Boards, the meeting was adjourned at 4:37 p.m. to closed session at 5:00 pn and the regular meeting at 7:00 pm. DARYL HICKMAN, CHAIRMAN LAKE ELSINORE PUBLIC FINANCE AUTHORITY ATTE�T LAKE ELSINORE PUBLIC FWJANCE AUTHORITY