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HomeMy WebLinkAboutCC Item No. 02CITY Of .r-~ FP- T LADE > LSIIYO E DREAM EXTREME REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: MARCH 23, 2010 SUBJECT: APPROVAL OF MINUTES Discussion The following City Council minutes are submitted for approval: (a) Joint Study Session City Council / Redevelopment Agency/Public Financing Authority, February 23, 2010 (b) Regular City Council Meeting Minutes February 23, 2010 Recommendation Approve the Minutes as submitted. Prepared by: Dana C. Porche Office Specialist Approved by: Carol Cowley Interim City Clem Approved by: Robert A. Brady~j City Manager AGENDA ITEM NO.2 Page 1 of 30 Page 2 of 30 MINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CA 92530 TUESDAY, FEBRUARY 23, 2010 CALL TO ORDER Mayor Melendez called the meeting to order at 7:00 pm. PRESENT: Mayor Melendez, Mayor Pro Tern Bhutta, Council Member Buckley Council Member Hickman, Council Member Magee. ABSENT: None. Also present included: City Manager Brady, City Attorney Leibold, Director of Administrative Services Riley, Community Development Director Weiner, Public Works Director / City Engineer Seumalo, Director of Lake and Aquatics / Parks and Recreation Director Kilroy, Information / Communications Manager Dennis, Police Chief Cleary, Fire Chief Hendershot and Interim City Clerk Cowley. PLEDGE OF ALLEGIANCE Mayor Melendez invited Leanne Cameron to lead the audience in the pledge of allegiance. INVOCATION - MOMENT OF SILENT PRAYER The Mayor led the audience in a moment of silent prayer. CLOSED SESSION REPORT I a. Public Employee Performance Evaluation (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). Page 3 of 30 Regular City Council Meeting Page 2 of 16 February 23, 2010 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). 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. City Attorney Leibold announced there were four items discussed during Closed Session and there was no reportable action on any four items. PRESENTATIONS I CEREMONIALS Presentation of Proclamation to Brian Tisdale President of NAACP acknowledging February 2010 as Black History Month. Mayor Melendez presented a Proclamation to Brian Tisdale in acknowledging Black History Month. Brian Tisdale thanked the City Council for their support towards the NAACP (National Association for the Advancement of Colored People) which has been in the City since 1977. Introduction of Students participating in the Mayor's Intern Program. Mayor Melendez advised the Council and audience of a program she has implemented for the juniors and seniors of the local high school's in order to be involved in their local City Government. She introduced all of the students and thanked them for their participation. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE Peter Dawson representing the US Coast Guard spoke of boat safety classes for the entire summer of 2010. He indicated the March 1, 2010 session is completely full; however the March 4, 2010 session still have vacancies. He stated the number to call is (951) 202-1584. PUBLIC COMMENTS - AGENDIZED ITEMS - 3 MINUTES None Page 4 of 30 Regular City Council Meeting February 23, 2010 CONSENT CALENDAR Page 3 of 16 It was moved by Council Member Hickman and seconded by Mayor Pro Tern Bhutta to approve Consent Calendar Items 2 through 9. The motion unanimously carried by the following vote: Ayes: Council Members: Buckley, Hickman, and Magee, Mayor Pro Tern Bhutta and Mayor Melendez. Noes: None 2. Approval of City Council Minutes Recommendation: a. City Council / Redevelopment Agency / Public Finance Authority Joint Study Session Minutes of January 26, 2010. b. Regular City Council Minutes of January 26, 2010. 3. Warrant List Dated February 11. 2010 Recommendations: a. Authorize payment of Warrant List dated February 11, 2010. 4. Investment Report -January 2010 Recommendation: a. Receive and file. 5. Purchase of Backhoe and Loader Recommendation: a. Authorize staff to purchase a backhoe tractor and front end loader from Brothers Auction Service as described in this report; and b. Authorize a not to exceed amount of $150,000 from the City's AQMD funds from the purchase of a backhoe tractor and front end loader from Ritchie Brothers Auction Service as described in this report. Page 5 of 30 Regular City Council Meeting Page 4 of 16 February 23, 2010 6. Purchase of Compact Tractor Recommendations: a. 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 b. 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. 7. A Request for the City of Lake Elsinore to Adopt A Resolution of Support for the Establishment of a Regional Scholarship Pageant. Recommendations: a. 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. Recommendations: a. It is recommended that the City Council adopt Resolution No. 2010-006 supporting an adjustment to the HUB Zone Boundary. 9. Recommendations: a. Approve projects final change order in the amount of $927,104.43; b. Authorize the City Manager to execute the contract change order; c. Authorize staff to use TUMF funds in the amount of $277,104.43; d. Accept the improvement within the City right-of-way into the City maintained system; e. File the Notice of Completion with the County Recorder; Page 6 of 30 Regular City Council Meeting February 23, 2010 Page 5 of 16 f. Release all retention monies 35-days after the filing of the Notice of Completion. APPEAL(S) At the request of Mayor Melendez, Item No. 11 was moved forward. 11. Recommendation: 1. 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; 3. Suspend or modify Conditional Use Permit No. 2008-09; 4. Continue the item to either a date certain or off calendar Mayor Melendez opened the Appeal at 7:13 p.m. Mayor Melendez introduced the item and indicated the applicant requested to continue this item until March 23, 2010. Public Works Director/City Engineer Seumalo provided an overview of the project to the Council. Council Member Hickman noted in light of all the election activity he supports the continuance. It was moved by Council Member Hickman to have 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) continued to March 23, 2010. Motion died for lack of second. Director of Community Development Weiner provided a reading of the staff report to the City Council. Mayor Melendez asked if a representative for the applicant was available to speak. Page 7 of 30 Regular City Council Meeting Page 6 of 16 February 23, 2010 Director of Community Development Weiner advised the Council that he was not present. Mayor Melendez advised the Council that there has not been any written correspondence which needed to be entered into the record. Mayor Melendez asked City Clerk Cowley if anyone has requested to speak either in favor or against the appeal. City Clerk Cowley advised the Mayor that there were no requests to speak. Mayor Melendez closed the Appeal at 7:11 p.m. and brought the discussion back to the dais for Council comments. Mayor Melendez asked Police Chief Cleary, if under the Conditions of Approval Trevi Entertainment agreed to notify the Police Department if there were going to be any activities with significant attendance. Police Chief Cleary confirmed by saying "Yes". Mayor Melendez noted on July 5, 2009, during the probation period a burlesque show was schedule and asked Police Chief Cleary to confirm. Police Chief Cleary confirmed a burlesque show was advertised on the Internet, however, he could not confirm if the show actually took place. Mayor Melendez went over several dates where the Police Department was not notified of events that were to take place at the entertainment center. Police Chief Cleary confirmed the information was correct. Mayor Melendez pointed out the stage issues which had been constructed but never inspected and asked Police Chief Cleary to comment regarding the serving of alcohol to a minor. Police Chief Cleary explained to Council that the Police Department had participated in an Alcohol and Beverage Decoy Program at many of the bars in the City, and out of all of the establishments that were listed; the only place that sold liquor to a minor was Trevi Lanes. Mayor Melendez asked Director of Community Development Weiner if any of the discrepancies have been resolved. Director of Community Development Weiner replied there are still three outstanding items. Page 8 of 30 Regular City Council Meeting Page 7 of 16 February 23, 2010 Mayor Melendez indicated her main concerns; are having a building permit yet no inspection were conducted, and the Police service calls that were required. Therefore she supports the Planning Commission's decision to revoke the Conditional Use Permit. Council Member Magee addressed this issue by providing a brief history of what has transpired since July 2007, indicating the company came forward with a vision to bring an old vacant building back to life. The City allowed the company to open its doors before the entire facility had been completed. Issuing in essence, a partial Certificate of Occupancy in order for the owners to begin to recognize some needed cash flow to off set the significant monetary investment they injected into the facility. The Council did this to help and assist the business because it is important to promote and support an investment in this community. He mentioned receiving a plaque from Trevi Entertainment Center in appreciation for his help and support in the opening of the center and expressed his pride in receiving that plaque. But with the assistance and support, comes an obligation to the public to ensure their safety and protect their treasurers. The facility sought to expand its uses to include live entertainment, additional permits, restrictions and requirements were placed on the operators, and it is the compliance with or adherence to these rules where the City has had issues. Sadly these issues have placed the City and the facility operator at odds over the past two years and that pressure has certainly been increasing over the last few weeks and months. Council Member Magee shared that one of the Planning Commissioners used the current set of circumstances as two trains heading towards each other on the same set of tracks. That scenario usually ends badly. He informed Council and the audience that he has gone back through all of the meetings minutes for each of the many hearings involving this CUP in hopes of gaining some sort of perspective and focus on where we have been, how we got to this point and how we can avoid a train wreck. On July 22, 2008 the applicant's attorney indicated that he concurred with all of the proposed conditions and that his client was in agreement. At the hearing I requested that the operator comply with all of the conditions of approval and that I was taking a leap of faith at which the applicant's attorney promised that there would be no violations. But violations had occurred and City staff has noted them and has worked with the applicant to rectify them. Last year the major issues of concern dealt with the pad locking of exit doors, proper notification of large events, adequate security staffing and video surveillance monitoring. Other issues included the construction and use of un- permitted structures. Uniform Building Codes is a set of standards adopted nation wide to ensure that the public safety and the construction, renovation and modification to buildings are maintained. It is a comprehensive set of standards that must be enforced in order to keep the public safe. Anything that a human being is going to be on or under or being served food from, must comply with these standards. The facility has constructed a stage, snack bar and a kitchen without first securing a building permit to ensure compliance with the Uniform Building Code. In order to ensure compliance and the public's continued safety these structures must be permitted, inspected and finaled Page 9 of 30 Regular City Council Meeting Page 8 of 16 February 23, 2010 or removed. The applicant has made significant progress on the stage, but the final inspection and clearance is still lacking. A major area of concern is centered on the pad locking of emergency exit doors. This practice is not acceptable and at the assistance of our Fire Chief, the locked doors have been corrected. At the Planning Commission meeting of December 15, 2009, the Fire Chief indicated all other violations had been cleared. There is the issue of security and the strain on law enforcement services at this place of business. At the last Planning Commission meeting held on January 19, 2010 the Police Chief advised the Commissioner's that he did not have a problem with the hosting of events, as long as the applicant provides the department with the required two week written notice of such events and that adequate security levels approved by the Sheriffs Department are maintained. All these issues can be mitigated through careful and thoughtful compliance with the rules and regulations and conditions of approval placed upon this use. Again, turning to the December 15, 2009 meeting, Mr. Knight advised the Planning Commissioners that he disliked the nightclubs and that he was trying to turn the nightclub area into a sports center. He then went on to advise the Commissioners that this transition would take almost a year. Rather than focus on our many differences with respect to the various issues, we currently find ourselves embroiled in, let's try to build some things that we can agree on and the first one is that I believe everyone including Mr. Knight would like to see this ultimately come to an end. This conclusion however, must take into consideration the public's safety as well as certain business realities. So I would propose an exit strategy where the applicant may continue to operate in compliance with the existing permit for a limited amount of time while he transitions this space into a new use. Therefore I would like to make a motion that we modify CUP 2008-09 as follows: All existing un-permitted structures must be permitted, inspected and finaled or removed, no later than April 1, 2010. All future modifications to the building must receive a building permit issued by the Department of Building and Safety before any physical work is preformed. All existing conditions of approval for both CUPS (that's 2007-01 and 2008-09) shall remain in full force and effect. Inspections may be made at this facility at the time and frequency deemed appropriate by City staff. Failure to comply with any condition of approval may result in immediate revocation of the live entertainment permit as determined by City staff. The applicant would agree to enter into a settlement agreement with the City dismissing the current pending litigation and waiving all rights to pursue any new civil litigation against the City of Lake Elsinore, and then the live entertainment permit and use would expire on September 30, 2010. Council Member Hickman asked Director of Community Development Weiner if April 1, 2010 would give plenty of time for the applicant to get everything approved. Director of Community Development Weiner replied by saying there are three main issues; the stage which is in the final stages needs to be inspected and approved; a meeting or party room adjacent to the check-in counter which was converted into a snack bar; and lastly the equipment in the kitchen that had not been approved. Page 10 of 30 Regular City Council Meeting Page 9 of 16 February 23, 2010 Council Member Hickman pointed out that the applicant is currently out of the country, and felt that April 1, 2010 was not enough time for the applicant to complete all necessary requirements. Mayor Melendez indicated Mr. Knight has been given ample time to correct the issues that exists within his business. Council Member Buckley pointed out that it does not matter if the applicant is present or not, if he cares about his business he will make the time. He asked Council Member Magee if he would consider amending his motion to include revocation of the CUP should the applicant not agree to the conditions set forth, by March 9, 2010. Council Member Magee replied by saying there are standard practices on Conditions of Approval which the applicant would need to sign an acknowledgment that he agrees to the Conditions set forth. He stated it does concern him that the applicant is not present; however, he stated he would be willing to extend it for thirty days, say up to March 23, 2010. Mayor Pro Tern Bhutta concurred with Council Member Magee's motion to work with the applicant. She indicated she has concerns with the violations and noted there has been a reduction in service calls. She noted there are still three issues outstanding and the applicant has been given sufficient time to resolve; and therefore she would support Council Member Magee's motion. Council Member Buckley asked if the motion would include the modification of, if not agreed to by March 23, 2010 then the Planning Commission's decision would be upheld. Council Member Hickman asked if all of the permits and inspection are to be completed by March 23, 2010, or does it mean he must agree to everything by March 23, 2010 to eliminate the lawsuits. Council Member Magee replied by saying it would be for all of the modifications including the need for either permits or removal of structures that do not currently have permits. Council Member Hickman asked staff how long it would take to issue a permit. Director of Community Development Weiner stated it should take one or two inspections assuming there are no issues; and it could take a week. He stated the kitchen is different as there are many different items to inspect. Council Member Hickman noted the applicant is out of the country and he has no idea when he would return. Page 11 of 30 Regular City Council Meeting Page 10 of 16 February 23, 2010 Mayor Melendez indicated that the applicant filed the appeal and knew the appeal was coming forward. He just chose not to be here. City Attorney Leibold stated she believes the applicant has consultants and planners who have been submitting plans on his behalf. Council Member Hickman asked Director of Community Development Weiner if he knew of a way to get in touch with his consultant. Director of Community Development Weiner replied by saying staff has been in contact with the person who sends his submittals for building plan check and staff can inform them of what is required. Director of Community Development Weiner stated the Conditions of Approval for both Conditional Use Permits indicated that the facility must maintain an approved floor plan at all times. He stated, when the floor plan changes without the Building Division's approval, it is a violation of that Condition. Mayor Melendez asked if Council Member Magee's motion is a good faith effort to give the applicant one final chance. Council Member Magee replied by saying it is a modification that reminds him and the City that the use can continue as long as he maintains compliance with the City Standards and regulations for both Conditional Use Permits. It also would ensure that the existing lawsuit would go away, that additional lawsuits as threatened in the public would not raise their head and that the permit would expire and the ongoing hearing continuance, revocation, etc stops and what ever new use that the operator has indicated. This would then take the politics out of this Conditional Use Permit, allow the applicant time to make some business decisions. If he is not using the kitchen in the rear, take it out. If he wants to maintain it, have his engineer submit a set of "as built" plans and submit them to city staff for review and approval. So it is a modification to the existing Conditional Use Permit not an extension. Mayor Melendez pointed out that five of these points are already required and asked the City Attorney if dismissing the current pending litigation and waiving all rights to pursue a new litigation is acceptable. City Attorney Leibold responded by saying should Mr. Knight release the City with respect to any existing or threaten any litigation with relation to the property, Conditional Use Permit or this project, we would have a full release, but it is a negotiation point. Mayor Melendez asked Council Member Magee if he wished to amend his original motion. Page 12 of 30 Regular City Council Meeting Page 11 of 16 February 23, 2010 Council Member Magee added item number seven to his motion to include; direct the City Attorney to draft an agreement reflecting these six points, send it to the applicant (on whatever means deemed appropriate) and that the direction be given that the agreement be entered into or on before March 23, 2010 in order for it to be valid, absent a response in the affirmative then the revocation as put forth by the Planning Commission would take effect. It was moved by Council Member Magee and seconded by Mayor Pro Tern Bhutta that all existing un-permitted structures be permitted, inspected and finaled or removed, no later than April 1, 2010. All future modifications to the building must receive a building permit issued by the Department of Building and Safety before any physical work is preformed. All existing conditions of approval for both CUPS (2007-01 and 2008-09) shall remain in full force and effect. Inspections may be made at this facility at the time and frequency deemed appropriate by City staff. Failure to comply with any condition of approval may result in immediate revocation of the live entertainment permit as determined by City staff. The applicant would agree to enter into a settlement agreement with the City dismissing the current pending litigation and waiving all rights to pursue any new civil litigation against the City of Lake Elsinore, and then the live entertainment permit and use would expire on September 30, 2010 and direct the City Attorney to draft an agreement reflecting these six points, send it to the applicant (on whatever means deemed appropriate) and that direction be given that the agreement be entered into on or before March 23, 2010 in order for it to be valid, absent a response in the affirmative then the revocation as put forth by the Planning Commission would take effect. The motion unanimously carried by the following vote: Ayes: Council Members: Buckley, Hickman, and Magee, Mayor Pro Tern Bhutta and Mayor Melendez. Noes: None Council Member Buckley requested to leave the meeting at 7:46 p.m. PUBLIC HEARING(S) 10. Recommendation: 1. Open the Public Hearing and take testimony; 2. Adopt Resolution No. 2010-007 determining the validity of prior proceedings relating to the formation of City of Lake Elsinore Community Facilities District No. 2009-01 (Parks, Open Space and Street Lighting Maintenance); Page 13 of 30 Canvass Election Results; Authorizing Levy of Special Taxes for CFD 2009-01. Regular City Council Meeting February 23, 2010 Page 12 of 16 3. Adopt Resolution No. 2010-008 acting on behalf of the City of Lake Elsinore Community Facilities District No. 2009-01 (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. 2009-01 (Parks, Open Space and Street Lighting Maintenance) canvassing of the results of the election; 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. 2009-01 (Parks, Open Space and Street Lighting Maintenance) authorizing the levy of special tax within said district. Mayor Melendez opened the Public Hearing at 7:50 p.m. City Clerk announced to the Council that the notice was published in accordance with the Mello-Roos Community Facility Act of 1982 and proof of such publication is on file in the City Clerks Office. The Director of Administrative Services Riley provided and overview of Item No. 10. He stated he would be available to answer any questions the Council may have. Mayor Melendez asked the audience if anyone wished to speak in favor or opposition of the project. Mayor Melendez asked the audience if anyone wished to submit a written protest. Mayor Melendez closed the Public Hearing at 7:53 p.m. It was moved by Mayor Pro Tern Bhutta and seconded by Council Member Magee to adopt Resolution No. 2010-007 determining the validity of prior proceeding relating to the formation of the City of Lake Elsinore Community Facilities District No. 2009-01 (Parks, Open Space and Street Lighting Maintenance). City Attorney Leibold read the title of the Ordinance into the record. The motion unanimously carried by the following vote: Ayes: Council Members: Hickman, and Magee, Mayor Pro Tem Bhutta and Mayor Melendez. Noes: None. Absent: Council Member Buckley. Mayor Melendez directed the City Clerk to tabulate the ballots and announce that 2/3 of the votes are in favor of levying the special tax. City Clerk Cowley responded by saying two ballots have been received, both are in favor of the special election. Page 14 of 30 Regular City Council Meeting Page 13 of 16 February 23, 2010 It was moved by Council Member Magee and seconded by Council Member Hickman to Adopt Resolution No. 2010-008 acting on behalf of the City of Lake Elsinore Community Facilities District No. 2009-01 (Parks, Open Space and Street Lighting Maintenance) calling a special election. The motion unanimously carried by the following vote: Ayes: Council Members: Hickman, and Magee, Mayor Pro Tern Bhutta and Mayor Melendez. Noes: None. Absent: Council Member Buckley. City Clerk Cowley indicated she received two ballots which are in favor of the Community Facilities District No. 2009-01 (Parks, Open Space and Street Lighting Maintenance) calling a special election. It was moved by Mayor Pro Tern Bhutta and seconded by Council Member Hickman to Adopt Resolution No. 2010-009 acting on behalf of the City of Lake Elsinore Community Facilities' District No. 2009-01 (Parks, Open Space and Street Lighting Maintenance) canvassing of the results of the election. The motion unanimously carried by the following vote: Ayes: Council Members: Hickman, and Magee, Mayor Pro Tern Bhutta and Mayor Melendez. Noes: None. Absent: Council Member Buckley. It was moved by Council Member Hickman and seconded by Council Member Magee to 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. 2009-01 (Parks, Open Space and Street Lighting Maintenance) authorizing the levy of special tax within said district. The motion unanimously carried by a roll call vote: Ayes: Council Members: Hickman, Magee, Mayor Pro Tern Bhutta and Mayor Melendez. Noes: None. Absent: Council Member Buckley. BUSINESS ITEM(S) 12. A Resolution of the City Council of the City of Lake Elsinore. California, Approving Authorizing the Taking of Certain Other Action 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; Page 15 of 30 Regular City Council Meeting February 23, 2010 Page 14 of 16 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. Director of Administrative Services Riley provided an overview of Item No. 12 to Council. He advised Council he would be available to answer any questions the Council may have. Don Hunt, City's Bond consultant introduced himself to the City Council and indicated he would be available to answer any questions the Council may have. Council Member Hickman asked Mr. Hunt if the debt extended further than the original and whether the City was saving interest. Don Hunt responded by saying the dept is not extended and the City would be saving more than $40,000 per year. It was moved by Council Member Hickman and seconded by Council Member Magee to 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. The motion unanimously carried by the following vote: Ayes: Council Members: Hickman, and Magee, Mayor Pro Tern Bhutta and Mayor Melendez. Noes: None. Absent: Council Member Buckley. The City Council recessed and convened to the Redevelopment Agency at 7.58 p.m. The City Council reconvened at 7:59 p.m. The City Council recessed and convened to the Public Finance Authority at 7:59 p.m. The City Council reconvened at 8:00 p.m. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES None. CITY MANAGER COMMENTS City Manager Brady commented on the following: • Thursday, February 25, Business Networking Mixer will be hosted by the Holiday Inn Express from 5:30 to 7:30 p.m. Page 16 of 30 Regular City Council Meeting February 23, 2010 Page 15 of 16 • Saturday, February 27, 2010 the City will be having a household hazardous waste disposal to be held at the City's Yard from 9:00 a.m. to 2:00 p.m. which is free to City and County residents. • March 1s` through April 26, 2010 there will be boat safety classes offered through the US Coast Guard. Classes will be held on Mondays from 7:00 - 9:00 p.m. and the fee is $75. CITY ATTORNEY COMMENTS No comments. No reports. CITY COUNCIL COMMENTS Council Member Magee commented on the following: • No comments. Council Member Hickman commented on the following: • No comments. Mayor Pro Bhutta commented on the following: • Reminded the audience to continue to support the local businesses. Council Member Buckley commented on the following: • Absent. Mayor Melendez commented on the following: • No comments. ADJOURNMENT There being no further business to come before the Council, the meeting was adjourned at 8:05 p.m. to a regular meeting to be held on Tuesday, March 9, 2010 at 7:00 p.m. to be held in the Cultural Center located at 183 N. Main Street, Lake Elsinore, CA 92530 California. Page 17 of 30 Regular City Council Meeting February 23, 2010 ATTEST: CAROL COWLEY, CITY CLERK CITY OF LAKE ELSINORE Page 16 of 16 MELISSA A. MELENDEZ, MAYOR CITY OF LAKE ELSINORE Page 18 of 30 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 1 a. Public Employment (Gov't Code 4 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 7127/2005 (Riverside Superior Court Case No. RIP 095857) 1 c. 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) 1d. Conference with Legal Counsel-Anticipated Litigation Page 19 of 30 Joint City Council Study Session February 23, 2010 PRESENTATIONS / CEREMONIALS None. PUBLIC COMMENTS - NON AGENDIZED ITEMS No public comments CONSENT CALENDAR 2. Approval of City Council Minutes Recommendation: Approve the following minutes: Page 2 of 12 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. Police Chief Cleary responded by saying the warrant was used for the lighting equipment currently used for check-points. Page 20 of 30 Joint City Council Study Session Page 3 of 12 February 23, 2010 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. Council Member Magee thanked staff for moving forward and expressed his disappointment in the over regulation of the State requirements. He explained the Page 21 of 30 Joint City Council Study Session Page 4 of 12 February 23, 2010 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. 7. A Request for the City of Lake Elsinore to Adopt a Resolution of Support for the Establishment of a Regional Scholarship Pageant Page 22 of 30 Joint City Council Study Session February 23, 2010 Recommendation: Page 5 of 12 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 Tern 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; 3. Authorize staff to use TUMF funds in the amount of $277,104.43; Page 23 of 30 Joint City Council Study Session February 23, 2010 Page 6 of 12 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. Page 24 of 30 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 Community 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; 2. 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); 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.Aweal 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; Page 25 of 30 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 ITEM(S) 12. 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. Page 26 of 30 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 Attorney 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 ITEM(S) 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. Page 27 of 30 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 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. Page 28 of 30 Joint City Council Study Session 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 Page 11 of 12 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 Tem 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. Page 29 of 30 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 pm and the regular meeting at 7:00 pm. MELISSA MELENDEZ, MA CITY OF LAKE ELSINORE ATTEST: CAROL COWLEY, INTERIM CITY CLERK CITY OF LAKE ELSINORE ROBERT MAGEE, CHAIRMAN REDEVELOPMENT AGENCY DARYL HICKMAN, CHAIRMAN PUBLIC FINANCE AUTHORITY Page 30 of 30