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HomeMy WebLinkAbout10-09-2007 City Council Minutes MINUTES CITY COUNCIL CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, OCTOBER 9, 2007 **************************************************************************************************** CALL TO ORDER - 5:00 P.M. The Regular City Council Meeting was called to order by Mayor Magee at 5:00 p.m. ROLL CALL PRESENT: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCllMEMBER BUCKLEY COUNCllMEMBER KEllEY COUNCllMEMBER SCHIFFNER ABSENT: NONE Also present were City Manager Brady, City Attorney leibold, Administrative Services Director Pressey, Planning Manager Weiner, lake and Aquatic Resources Director Kilroy, Public Works Director Seumalo, Information/Communications Manager Dennis, Community Services Director Gonzales, Chief of Police Fetherolf, Fire Chief Hendershot and City Clerk Munson. CLOSED SESSION The following item was to be discussed during Closed Session: (1 a) Conference with Legal Counsel - Existing Litigation (Gov't Code Section 54956.9(a)) Wildomar and lake Elsinore Residents for Responsible Growth v. City of lake Elsinore (Riverside Co. Superior Court Case No. RIC 449594) (1 b) Conference with Real Property Negotiator (Gov't Code Section 54956.8) Property: APN 378-020-032, near the intersection of Nichols Road and Collier Avenue Negotiating Parties: City of lake Elsinore and property owner Mr. Theodore King and Mrs. Li Heng Under negotiations: price and terms of payment 1 (1c) Conference With Legal Counsel--Anticipated Litigation Significant exposure to litigation pursuant to subdivision (b) of Gov't Code Section 54956.9: (1 potential case) It was moved and seconded to recess to Closed Session at 5:01 p.m.. AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE RECONVENE IN PUBLIC SESSION - 7:00 P.M PLEDGE OF ALLEGIANCE Mayor Pro Tem Hickman led the audience in the Pledge of Allegiance. INVOCATION - MOMENT OF SILENT PRAYER Mayor Magee led the meeting in a moment of silent prayer. ROLL CALL PRESENT: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER ABSENT: NONE Also present were City Manager Brady, City Attorney Leibold, Administrative Services Director Pressey, Lake and Aquatic Resources Director Kilroy, Public Works Director Seumalo, Information/Communications Manager Dennis, Planning Manager Weiner, Community Services Director Gonzales, Chief of Police Fetherolf, Fire Chief Hendershot and City Clerk Munson. 2 PRESENT A TION/CEREMONIAlS Mayor Magee announced the representative from the American Cancer Society "Relay For Life" was unable to attend the meeting. He announced the American Cancer Society will be holding a "Relay for Life", October 20-21st at 9:00 a.m. at Canyon Lake Middle School. This 24-hour event will be held on the school's tract and all proceeds will benefit the American Cancer Society. For further information, please contact Marian Olson at (951) 288-5879. CLOSED SESSION REPORT City Attorney Leibold stated the City Council met in Closed Session to consider the following items: (1 a) Conference with legal Counsel - Existing Litigation (Gov't Code Section 54956.9(a)) Wildomar and Lake Elsinore Residents for Responsible Growth v. City of Lake Elsinore (Riverside Co. Superior Court Case No. RIC 449594) (1 b) Conference with Real Property Negotiator (Gov't Code Section 54956.8) Property: APN 378-020-032, near the intersection of Nichols Road and Collier Avenue Negotiating Parties: City of Lake Elsinore and property owner Mr. Theodore King and Mrs. Li Heng Under negotiations: price and terms of payment (1c) Conference With legal Counsel--Anticipated Litigation Significant exposure to litigation pursuant to subdivision (b) of Gov't Code Section 54956.9(b): (1 potential case) There was no reportable action taken on any of the items. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE Jeannie Corral encouraged City Council to approve the fee waiver for the 11th Annual Unity in the Community Parade. She announced the parade will be held on November 17,2007. Donna Fransom of lake Elsinore, announced the 3rd Quarter meeting of the Lake Elsinore Citizens Committee which will be held on Thursday, October 18th at the at 7"00 p.m. in the Tuscany Hills Recreation Center. Captain Louis Fetherolf will be the guest speaker. 3 COUNCIL APPROVES CONSENT CALENDAR ITEMS NOS. 3 THROUGH 9 AND 11 THROUGH 15. EXCLUSIVE OF ITEM NO.1 0 The following items were listed on the Consent Calendar for Council approval: (3) Minutes of the Followinq Meetinq(s) a. Joint City Council/Planning Commission Study Session of February 1, 2007. b. Joint City Council/Redevelopment Agency Study Session of February 27, 2007. c. Regular Meeting of February 27,2007. d. Joint City Council/Redevelopment Agency Study Session on March 13, 2007. e. Regular Meeting of March 13,2007. f. Joint City Council/Redevelopment Agency Study Session of March 27. 2007. g. Regular Meeting of March 27, 2007. h. Joint City Council/Redevelopment Agency Study Session of April 10, 2007. i. Regular Meeting of April 1 0,2007. j. Joint City Council/Redevelopment Agency Special Study Session of April 19,2007. k. Joint City Council/Redevelopment Agency Study Session of April 24, 2007. I. Regular Meeting of April 24, 2007. m. Joint City Council/Redevelopment Agency Special Study Session of April 26,2007. n. Joint City Council/Redevelopment Agency Study Session of May 8,2007. o. Regular Meeting of May 8,2007. p. Joint City Council/Redevelopment Agency Study Session of May 22, 2007. q. Regular Meeting of May 22,2007. r. Joint City Council/Redevelopment Agency Study Session of September 11,2007. s. Regular Meeting of September 11, 2007. Recommendation: Approve. (4) Warrant List Dated September 28.2007. Recommendation: Authorize payment of Warrant List dated September 28, 2007. 4 (5) Investment Report Recommendation: Receive and file. (6) Claims Aqainst the City Recommendation: Reject the claims listed and direct the City Clerk's Office to send a letter informing the claimant of the decision. (7) Purchase Order for Contract Plan Check Services for Fiscal Year 07/08 Recommendation: Authorize the City Manager to approve a Purchase Order in the amount of $150,000 for Scott Fazekas and Associates to provide plan check services for fiscal year 07/08. This amount was budgeted for in the 07/08 Building Division Professional Services account. (8) Approval of Final Map No. 32077 Recommendations: 1. Approve Final Map No. 32077, subject to the City Engineer's acceptance as being true and correct. 2. Authorize the City Clerk to accept all dedications, sign the map and arrange for the recordation of Final Map No. 32077. (9) Advanced Life Support Cardiac Monitor Replacement Recommendation: Approve the purchase of three cardiac monitors for $38,935.46 to be funded with AMR fine revenues. (10) 2007-2008 CDBG Supplemental Aqreement Recommendation: Approve the allocation for 2007-2008 COBG allocation as outlined in the fiscal impact section of this report and authorize the Mayor to sign the agreement. (11) Sidewalk Construction, Various Locations-Additional Grant Fundinq Recommendations: 1. Authorize the use of additional $161,199 CDBG Fund No. 150 for this project. 2. Authorize the return of $95,412 of In-lieu-Fees Fund No. 205 to City Budget. 3. Authorize the return of $65,787 of Traffic Impact Fees to the City Budget Fund No. 205. 5 (12) Unity in the Community Parade Request for Fee Waiver and Street Closures Recommendation: Aprrove the fee waiver and closure of streets along the parade route for the 11t Annual Unity in the Community Parade. (13) Reclassification of Receptionist Position Recommendations: 1. Approve reclassification of "Office Specialist I" to' "Customer Service Specialist." 2. Approve budget adjustment moving the position salary from the Community Development Department to the Administrative Services Department. 3. Approve a budget adjustment increasing of the salary and benefits from grade 23 to 32 ($8,600 total) for the current fiscal year. (14) Purchase Authorization to Replace Desktop Computers with Dell Laptops Recommendation: It is determined to be interest of the City to waive the bidding process and authorize the City Manager to sign and issue a purchase order to Dell Computers, Inc. for replacing management's desktop PC's with Laptops. (15) Disposal of Surplus Electronics as Scrap Recommendation: Approve disposal of surplus electronic equipment to be scrapped as e-waste. Councilmember Kelley pulled Consent Calendar Item No.1 O. It was moved by Councilmember Kelley, and seconded by Mayor Pro Tem Hickman, to approve the Consent Calendar Items No. 3 through 9 and 11 through 15, exclusive of Item No.1 o. The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE 6 ABSTAIN: NONE COUNCIL APPROVES CONSENT CALENDAR NO. 10 - TO INCREASE THE ALLOCATION BY $5.488 TO BE DIVIDED BY PROJECT HOPE ($2.744) AND $2.744 TO THE BOYS AND GIRLS CLUB AND AUTHORIZE THE MAYOR TO SIGN THE AGREEMENT Councilmember Kelly expressed her concerns with regard to the amount of funds allocated to the CDBG Fund. Ron Hewison, Executive Director encourage the City Council to allocate additional funds to the HOPE Program and the Boys and Girls Club. City Treasurer Weber indicated when he worked for the City of Riverside, no CDBG Funds were allocated to any public service programs and all of the funding went towards street maintenance. It was moved by Councilmember Kelly, and seconded by Mayor Pro Tem Hickman to increase the allocation by $5,488 to be divided by Project Hope ($2,744) and $2,744 to the Boys and Girls Club and authorize the Mayor to sign the agreement. The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE PUBLIC HEARINGS (16) COUNCIL ADOPTS RESOLUTION NO. 2007-171; ADOPTING THE FINDINGS THAT THE ENTITLEMENTS ARE EXEMPT FROM THE MULTIPLE SPECIES HABITAT CONSERVATION PLAN (MSHCP) COUNCIL ADOPTS RESOLUTION NO. 2007-172; APPROVING VESTING TENTATIVE PARCEL MAP NO. 34978 WHICH SUBDIVIDES 28.76 ACRES OF LAND WITHIN THE CANYON HILLS SPECIFIC PLAN INTO ONE LOT 7 COUNCil ADOPTS RESOLUTION NO. 2007-173; APPROVING RESIDENTIAL DESIGN REVIEW NO. 2006-09 FOR THE HUNTER'S RIDGE CONDOMINIUM COMMUNITY WITHIN VESTING PARCEL MAP NO. 34978 Community Development Director Preisendanz presented the staff report. He stated this project was called the Hunter's Ridge Condominiums. He indicated the Planning Commission approved this project unanimously and recommending approval by Council Mayor Magee opened the public hearing at 7:14 p.m. David D. Dunham, representative of Pardee Homes, thanked the City and Staff for all of the hard work they have done on this project. He stated he was available to address any concerns or questions the Council had. Mayor Magee inquired if there was anyone wishing to speak in favor or against the item. He inquired if there was anyone that wished to speak at all. John Staub of lake Elsinore, indicated he lived very close to the project and wanted Council to know there are many rattle snakes and rabbits. He inquired if there was going to be some type of fencing. Community Development Director Preisendanz responded there is usually fencing required for construction projects. He believes the developer would be willing to put up some type of fencing to prevent the animal migration. Mayor Magee closed the public hearing at 7:17 p.m. It was moved by Councilmember Buckley, and seconded by Mayor Pro Tern Hickman to waive further reading and adopt a resolution adopting the findings that the entitlements are exempt from the Multiple Species Habitat Conservation Plan (MSHCP). The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE 8 It was moved by Councilmember Buckley, and seconded by Mayor Pro Tem Hickman to Waive further reading and adopt a resolution approving Vesting Tentative Parcel Map No. 34978 which subdivides 28.76 acres of land within the Canyon Hills Specific Plan into one lot. The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE It was moved by Councilmember Buckley, and seconded by Mayor Pro Tem Hickman to. Waive further reading and adopt a resolution approving Residential Design Review No. 2006-09 for the Hunter's Ridge Condominium Community within Vesting Parcel Map No. 34978. The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE (17) COUNCIL ADOPTS RESOLUTION NO. 2007-174;ADOPTING THE FINDINGS THAT THE ENTITLEMENTS ARE EXEMPT FROM THE MULTIPLE SPECIES HABITAT CONSERVATION PLAN (MSHCP) COUNCIL ADOPTS RESOLUTION NO. 2007-175: APPROVING VESTING TENTATIVE PARCEL MAP NO. 34979 WHICH SUBDIVIDES 28.76 ACRES OF LAND WITHIN THE CANYON HILLS SPECIFIC PLAN INTO ONE LOT 9 COUNCIL ADOPTS RESOLUTION NO. 2007-176: APPROVING RESIDENTIAL DESIGN REVIEW NO. 2006-10 FOR THE HIDDEN OAKS CONDOMINIUM COMMUNITY WITHIN VESTING PARCEL MAP NO. 34979 Mayor Magee opened the public hearing at 7:18 p.m. Community Development Director Preisendanz presented the staff report. He stated this project was called the Hidden Oaks Condominiums. He indicated the Planning Commission approved this project unanimously and recommending approval by Council. Mayor Magee inquired if there was anyone wishing to speak in favor or against the item. He inquired if there was anyone that wished to speak at all. David D. Dunham, representative of Pardee Homes, thanked the City and Staff for all of the hard work they have done on this project. He stated he was available to address any concerns or questions the Council had. Mayor Magee closed the public hearing at 7:21 p.m. It was moved by Council member Buckley, and seconded by Mayor Pro Tem Hickman to waive further reading and adopt a resolution adopting the findings that the entitlements are exempt from the Multiple Species Habitat Conservation Plan (MSHCP). The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE It was moved by Councilmember Buckley, and seconded by Mayor Pro Tem Hickman to waive further reading and adopt a resolution approving Vesting Tentative Parcel Map No. 34979 which subdivides 28.76 acres of land within the Canyon Hills Specific Plan into one lot. 10 The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE It was moved by Councilmember Buckley, and seconded by Mayor Pro Tem Hickman to waive further reading and adopt a resolution approving Residential Design Review No. 2006-10 for the Hidden Oaks Condominium Community within Vesting Parcel Map No. 34979. The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE (18) COUNCIL ADOPTS RESOLUTION NO. 2007-177: DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS AND ESTABLISHING CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-4 (MAKENNA COURT) COUNCIL ADOPTS RESOLUTION NO. 2007-178: TO INCUR BONDED INDEBTEDNESS IN THE AMOUNT NOT TO EXCEED $4,000,000 WITHIN THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-4 (MAKENNA COURT) AND CALLING A SPECIAL ELECTION 11 COUNCIL ADOPTS RESOLUTION NO. 2007-179; CANVASSING THE RESULTS OF THE SPECIAL ELECTION HELD WITHIN THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-4 (MAKENNA COURT) COUNCIL INTRODUCES ORDINANCE NO. 1232; AUTHORIZING THE LEVY OF A SERVICES SPECIAL TAX AND A SPECIAL TAX Mayor Magee opened the public hearing at 7:21 p.m. Administrative Director Pressey presented the staff report. Mayor Magee requested testimony from the public. He inquired if there was anyone wishing to speak in favor or against the item. He also inquired if there was anyone that wished to speak at all Mayor Magee inquired if there were any property owners subject to the proposed assessments who wished to file a written protest. He noted that if there were any property owners who wished to file a written protest, they must file it with the City Clerk at that time. He noted that for purpose of a majority protest, only written protests were to be considered. There being none, Mayor Magee closed the public hearing at 7:25 p.m. It was moved by Councilmember Schiffner, and seconded by Mayor Pro Tem Hickman to waive further reading and adopt a resolution of formation determining the validity of prior proceedings and establishing City of Lake Elsinore Community Facilities District No. 2007-4 (Makenna Court). The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE It was moved by Councilmember Schiffner, and seconded by Councilmember Kelley to waive further reading and adopt a resolution to incur bonded indebtedness in the amount not to exceed $4,000,000 within the City of Lake 12 Elsinore Community Facilities District No. 2007-4 (Makenna Court) and Calling a Special Election. The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE Mayor Magee directed the City Clerk to tabulate the ballots and announce if two- thirds of the votes cast were in favor of levying the services special tax and special tax. City Clerk Munson announced that two-thirds of the votes cast were in favor. It was moved by Councilmember Schiffner, and seconded by Council member Kelley to waive further reading and adopt a resolution canvassing the results of the Special Election held within the City of Lake Elsinore Community Facilities District No. 2007-4 (Makenna Court). The following vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE It was moved by Councilmember Schiffner, and seconded by Councilmember Kelley to waive further reading and introduce an ordinance authorizing the levy of a services special tax and a special tax. 13 The following Roll Call vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE BUSINESS ITEMS (19) COUNCIL APPROVES THE AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY AND AUTHORIZES THE MAYOR TO EXECUTE THE AGREEMENT SUBJECT TO ANY MINOR MODIFICATIONS AS MAY BE APPROVED BY THE CITY ATTORNEY City Manager Brady presented the staff report. City Attorney Leibold indicated the agreement was restructured in a way where it is not tied to construction. It was moved by Mayor Pro Tem Hickman, seconded by Councilmember Buckley to provide Toyota an incentive by giving them the 1st half of the year 75% of the sales tax, then after July 1st it would fall back to 50%, to include a cap of $2.7 million. William Nicklas of Toyota Motor Sales responded one of the items that were heavily negotiated on with staff and the City Manager was the idea of a cap. He indicated Toyota feels that since there are already two caps on this proposal which Toyota thought it was cut and dry. The first cap being the six years and the second cap being the 50%. He indicated it was very important they don't have a monetary cap. It was motioned by Councilmember Kelley, and seconded by Councilmember Schiffner to approve the original proposal which substitutes the motion made by Mayor Pro Tem Hickman. City Attorney Liebold stated regardless of which motion prevails, there was previously approved a reimbursement agreement on this same site with Chrysler- Dodge-Jeep, and this proposal supersedes that proposal. She indicated she just 14 wanted to make sure, as part of the motion, that it is made clear that the earlier agreement is terminated and is superseded by this. Mayor Magee indicated he was leaning towards the recommendation as proposed. The following vote resulted: AYES: MAYOR MAGEE COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: MAYOR PRO TEM HICKMAN ABSENT: NONE ABSTAIN: COUNCILMEMBER BUCKLEY (20) COUNCIL ADOPTS ORDINANCE NO. 1231: AMENDING CODE SECTION 2.46.060, SUBPARAGRAPHS I AND J REGARDING THE DUTIES AND RESPONSIBILITIES OF THE PUBLIC SAFETY ADVISORY COMMISSION It was moved by Councilmember Buckley, and seconded by Mayor Pro Tem Hickman to waive further reading and adopt Ordinance No. 1231 as follows: ORDINANCE NO. 1231 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING CODE SECTION 2.46.060, SUBPARAGRAPHS I AND J REGARDING THE DUTIES AND RESPONSIBILITIES OF THE PUBLIC SAFETY ADVISORY COMMISSION The following Roll Call vote resulted: AYES: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER BUCKLEY COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER NOES: NONE ABSENT: NONE ABSTAIN: NONE 15 COUNCIL RECESSED AT 7:41 P.M. COUNCIL RECONVENED AT 7:42 P.M. PUBLIC COMMENTS There were no public comments. CITY MANAGER COMMENTS City Manager Brady commented on the following: 1) Farmer's Market, every Thursday, from 4-7:00 p.m. on Main Street and Peck. 2) The Elsinore Valley Arts Network Art Walk, Thursday, October 26th, 4-8:00 pm. downtown Main Street (3) Cruise Night, Friday, October 2th, from 5-9:00 p.m., downtown Main Street CITY ATTORNEY COMMENTS No comments. CITY TREASURER COMMENTS - No comments. CITY COUNCIL COMMENTS Councilmember Kelley commented on the following: No comments. Councilmember Schiffner commented on the following: 1) Welcomed Toyota. Mayor Pro Tern Hickman commented on the following: 1) The clubhouse, golf course and restaurant are open and the food is excellent. Councilmember Buckley commented on the following: 1) Welcomed Toyota, however; expressed his concern with setting a precedent for the future. 16 Mayor Magee commented on the following: 1) Thanked City Manager Brady for all the work on the Toyota Agreement. 2) Stated the drainage issue over at Fairfield Apartments needs to be corrected as soon as possible. 3) Stated staff will be meeting with GFI representatives next week. He stated staff will look at all options to keep the Grand Prix event operational. Mayor Magee adjourned the meeting at 7:45 p.m. ATTEST: ( L.L~ VIVIAN M.MUNSON CITY CLERK 17 TOYOTA October 8, 2007 Toyota Motor Sales, U.S.A.. Inc. l~.II)OI South \Vt'sklll AVC'lllI(' TOIFillce, CA ~XI~illl CnO) ltiiHIi()() Honorable Mayor Magee Mayor Pro Tern Hickman Councilman Schiffner Councilman Buckley Councilwoman Kelley City of Lake Elsinore 130 S. Main Street Lake Elsinore, CA 92530 Dear Mr. Mayor and Members of the Lake Elsinore City Council: At its August 28, 2007 regular meeting, after a presentation and proposal made by Toyota, the Lake Elsinore City Council directed City staff to prepare an agreement between the City and Toyota Motor Sales U.S.A., Inc. in which a new Toyota dealership entity would earn certain incentives for establishing and operating a retail operation in Lake Elsinore. Toyota explained to the Council that it intended to begin operations no earlier than the last quarter of2010. It was suggested by the City's treasurer that Toyota might accelerate the establishment of operations to sometime in 2009 if given an additional financial incentive. To that end, the City has proposed that if operations begin before 2010, an amount equal to 100% of the dealership's sales tax revenue remitted to the City be paid to the dealership entity. - While we are grateful for the City's interest in bringing a new Toyota dealership to town sooner rather than later, the involved process of dealer selection, site development and construction make 2009 higWy unlikely. Moreover, the selected dealer may view 50% of the fmal year of the agreement as more valuable than 100% of2009. Toyota is content to begin operations of a new dealership at the end of 20 1 0; however, in the interest of finding what might be might be a win - win for all, we propose the following: ~ An amount equal to 100% of the city's 2010 sales tax revenues generated by the dealership if commencement begins before June 30, 2010 ~ An amount equal to 75% of the city's 2010 sales tax revenues generated by the dealership if commencement begins after June 30, 2010, but before January 1, 2011 The alternative proposal provides the selected dealer with a realistic incentive to accelerate development and construction efforts and gives the City the opportunity to have the dealership operational up to a year earlier than originally intended. We truly appreciate the Council's desire to hasten the establishment of a new Toyota dealership and believe that this alternative to the City's proposal provides a realistic opportunity to do so. I look forward to seeing you at the October 9, 2007 meeting. S~1L 'csr William T. Nicklas cc: B. Brady, City Manager; B. Liebold, City Attorney