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HomeMy WebLinkAbout06-08-2004 City Council Minutes MINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, JUNE 8, 2004 ****************************************************************** CALL TO ORDER The Regular City Council Meeting was called to order by Mayor Buckley at 5 :20 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY ABSENT: COUNCILMEMBERS: NONE Also present were: City Manager Watenpaugh, Assistant City Manager Best, City Attorney Leibold, Administrative Services Director Pressey, Community Development Director Brady, Community Services Director Sapp, Lake & Aquatic Resources Director Kilroy, Police Chief Fetherolf, Engineering Manager Seumalo, Parks & Open Space Manager Fazzio, Recreation & Tourism Manager Fazzio and City Clerk/Human Resources Director Kasad. CLOSED SESSION a. PUBLIC EMPLOYEE PERFORMANCE EVALUATION - City Clerk. (F:42.1 ) City Attorney Leibold announced the Closed Session discussion as listed above. THE REGULAR CITY COUNCIL MEETING WAS RECESSED TO CLOSED SESSION AT 5:21 P.M. Page Two - City Council Minutes - June 8, 2004 - The Closed Session discussion was completed at 7:02 p.m. RECONVENE IN PUBLIC SESSION (7:00 P.M. ) Mayor Buckley reconvened the Regular City Council Meeting in public session at 7: 11 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY ABSENT: COUNCILMEMBERS: NONE Also present were: City Manager Watenpaugh, Assistant City Manager Best, City Attorney Leibold, Administrative Services Director Pressey, Community Development Director Brady, Community Services Director Sapp, Fire Chief Gallegos, Lake & Aquatic Resources Director Kilroy, Police Chief Fetherolf, Engineering Manager Seumalo, Information & Communications Manager Dennis, Parks & Open Space Manager Fazzio, Planning Manager Villa, Recreation & Tourism Manager Fazzio, City Clerk/Human Resources Director Kasad. - CLOSED SESSION REPORT City Attorney Leibold announced that the Council met in Closed Session for discussion of the item as listed on the agenda; and there was no reportable action. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Elder Arthur Lewis. INVOCATION - MOMENT OF SILENCE - Page Three - City Council Minutes - June 8, 2004 Mayor Buckley led the meeting in a moment of silent reflection in memory of former President Ronald Reagan and his family. PRESENTATIONS/CEREMONIALS a. Proclamation - Temescal Canyon High School Freshman Baseball Team. (F: 122.1 )(X: 142.1) Mayor Buckley called the Temescal Canyon High School Freshman Baseball Team players forward for recognition. He read and presented Proclamations to the following team members: Matt Lunn, Anthony Lopez, Matt Larkins, Sam Hirbour, Joey Benza, Alex Aunchman, Corey Fischer, Sean Dufford, Oseguera Marlon, Nick Vodrey, Shayne Robinson, Bryce Reid, Quinn Neal, Craig Neal, and Dane Gioia. Team members Sergio Villareal, and Spenser Sostre were not present for recognition. Mayor Buckley then called the coaching staff forward. Principal Kelleher and Athletic Director Burt were not present for recognition. Mayor Buckley presented Proclamations to Head Coach Kruger, Team Coach Mark Carlston and Assistant Coach Rick Sisco. Coach Carlston thanked the City staff, Council, and Mayor for this recognition. He thanked the Principal, Athletic Director and Coach Kruger for the opportunity to coach this team. He compared the baseball team to the City Council and stressed the teamwork required to achieve the goal and win the first Southwestern Championship for Temescal Canyon High School. b. Presentation - Korn Memorial Scholarships. (F:56.2) Information/Communications Manager Dennis commented on the annual opportunity to choose scholarship winners; and explained the Korn Memorial Scholarship which was left in trust to the City of Lake Elsinore for the provision of scholarships. He further explained that the scholarships were intended for students entering the health, science and skilled nursing fields. He indicated that the scholarships being presented were $1,000 each and called the winners forward for recognition. Page Four - City Council Minutes - June 8, 2004 - Scholarship winners Jill Haney from Temescal Canyon High School and Rafael Ayala from Elsinore High School were present for recognition. Winners Gregory Ohnersorgem from Temescal Canyon and Nathan Stuckey from Elsinore High School were not present for recognition. Mayor Buckley noted that the two students present were also recognized recently for Student of the Year Scholarships by the Chamber of Commerce. Jillian Haney noted that both she and Rafael were going to UC San Diego; and indicated that she was honored to be recognized by the City. Rafael Ayala indicated that he saw this award as a privilege, and it would assist him greatly at UCSD. He thanked the City for making this possible. c. Proclamation - Paula Graver. (F:122.1) Mayor Buckley read and presented the proclamation to Paula Graver and - Babooshka. Ms. Graver thanked the City for this Proclamation and noted her love for Lake Elsinore. She noted that the rallies began in 2003 and were continuing until all military personnel have returned from harm's way. She detailed the continuing efforts to support the troops including care packages. d. Chamber of Commerce Update. (F:I08.4) Jack McColley, President, Lake Elsinore Valley Chamber of Commerce, provided an update on Chamber activities including the Third Annual Student of the Year event. He congratulated the six Student of the Year winners, and noted that they each received $1,000 scholarships. He detailed the sponsors who provided the scholarships and the Elsinore First Assembly for allowing them to use the facility. He commended Sally Meyers as the founder of the Student of the Month program. He announced the EDC Luncheon this Thursday at 11 :30 a.m., and indicated that it would include a community briefing by City personnel. He indicated that the new - Page Five - City Council Minutes - June 8, 2004 marketing video would also be presented. He announced the June Business of the Month, being the Lake Elsinore Historical Society. He also announced that the next Mixer would be hosted by the Lake Elsinore Storm on June 24th at the Diamond Club. He also noted that the July mixer host was unable to hold the mixer and noted that the July 22nd date was open if someone was able to host it. Mayor Buckley suggested that the City could host the July Mixer. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE Peter Dawson, 18010 Grand Avenue, noted that it was a great holiday weekend for Memorial Day, but indicated that there were two problems which were avoidable. He advised that there was a boat fire with a bum victim, and suggested that it could have been avoided if they had attended the boating school. He indicated that the next holiday would be July 4th; and noted that the community and staff were working hard to accommodate the event and provide the boat parade and fireworks. He indicated that the Lake would be closing at 6:30 p.m. on the 4th to accommodate the events. Elder Lewis and Tim Fleming, representing the NAACP, announced the Juneteeth event at Yarborough Park. He indicated that there would be live music, vendors and food; and detailed the history of the event. He noted that the Juneteenth event was the inspiration for the 13th and 14th Amendment to the Constitution. They invited everyone to attend. PUBLIC COMMENTS - AGENDIZED ITEMS - 3 MINUTES Requests were received to address the following items and deferred to those discussions: Item Nos. 4, 5, & 35. CONSENT CALENDAR Page Six - City Council Minutes - June 8, 2004 - The following. items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 4 & 5. MOVED BY MAGEE, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were received and ordered filed: a. Planning Commission Minutes - May 18,2004. (F:60.3) 2. Ratified Warrant List for May 28, 2004. (F: 12.3) 3. Received and ordered filed the Investment Report for April, 2004. (F: 12.5) - ITEMS PULLED FROM THE CONSENT CALENDAR 4. Purchase Authorization - Diamond Stadium Furniture. (F: 134.1 0)(X:30.1) City Manager Watenpaugh explained that this was a request for bar stools in the suites. Community Services Director Sapp detailed the bid process to purchase replacement furniture for the Diamond Club and Suites. He explained that the Club was short about 37 chairs due to usage and damage; and noted that the furniture was all eleven years old. He further noted that over 700 games had been played in that time and there had been numerous rentals of the facility which have taken the toll on the furniture. He indicated that this process included the advertisement of a RFP and two proposals were received. He advised that the funding for the purchase was included in the 2003-04 budget. Edith Stafford, 29700 Hursh, noted that she asked a question at the study session, and heard an explanation, but she also heard that it was not in the - Page Seven - City Council Minutes - June 8, 2004 2003-04 or 2004-05 budget, but there was an agreement to do it. She questioned why the matter was on the agenda tonight. Councilman Magee noted that the Council would be considering the possible sale of the Stadium later in this meeting; and although the funding was available in the current year, with the potential sale he questioned the consideration. He suggested that even if the furniture was ordered today, it would not be in place for the current season. MOVED BY MAGEE, SECONDED BY HICKMAN TO CONTINUE THIS ITEM FOR THIRTY DAYS. Councilman Hickman clarified that the money was in the 2003-04 budget, but it could be carried over. Staff confirmed. City Manager Watenpaugh questioned the timing for the bids. Community Services Director Sapp indicated that they should be good for 30 days. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. 5. City- Wide Lighting and Landscaping Maintenance District Fiscal Year 2003-04 - Approval of Engineer's Report and Resolution of Intention - Resolution No. 2004-39 and 2004-40. (F:22.2) City Manager Watenpaugh noted that there was a request for a check on the timing for adoption of this item. Administrative Services Director Pressey noted that the Harris and Associates representatives were present. He explained that this item set the public hearing for approval of the annual assessment. He advised that it was about $1.2 million for tree trimming, lighting and landscaping. He noted the questions from the earlier study session and indicated that the maps were the originals prepared and adopted by the Council. He indicated that there were plans to update the maps and put them in the GIS system for Page Eight - City Council Minutes - June 8, 2004 - more detail and clarity. He noted that Councilman Magee's question would be investigated by staff. Councilman Magee confirmed that he had the opportunity to speak with Mr. Pressey and Mr. Anderson and they would be revising the maps for the next go around. He noted that Mr. Pressey had tasked him with providing the information publicly and indicated that the developments not illustrated included Alesco Development, Serenity Homes, Lago de Oro and the Reflections tract. He indicated that he was comfortable that his concerns would be resolved. Councilman Hickman questioned why with all the new developments the LLMD was not reduced. Mr. Anderson indicated that the District was formed prior to the Constitutional Amendment of Proposition 218, and could not be changed; so new developments could not be included in the current District. He explained that if the Council wanted them included, they had to form a completely new LLMD. Councilman Hickman noted _ that he resides in Tuscany Hills and it was expanding; and inquired if it would be wise to have that area change and request a reconfiguration. Mr. Anderson suggested looking at such an action when the north side of Tuscany Hills develops, to see if the costs could be recouped. Mayor Buckley noted that the large developments were annexing into the new District. Mr. Anderson confirmed. Edith Stafford, 29700 Hursh, commented that one of her concerns was answered, but she was going to recommend a change to the City-wide lighting to make it more balanced, so everyone was paying about the same amount., She indicated that she would like the Council to look into that possibility, as they had the power to change the process. Mayor Buckley noted that the District and fees were based on specific area services such as lighting and landscaping; so balancing the areas would not be fair because the services were not the same. MOVED BY SCHIFFNER, SECONDED BY KELLEY AND CARRIED BY Page Nine - (:ity Council Minutes - June 8, 2004 UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2004-39: RESOLUTION NO. 2004-39 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE APPROVING THE ENGINEER'S "REPORT" FOR THE ANNUAL LEVY OF ASSESSMENTS FOR FISCAL YEAR 2004-05 IN A DISTRICT WITHIN SAID CITY. MOVED BY SCHIFFNER, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2004-40: RESOLUTION NO. 2004-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR CERTAIN MAINTENANCE IN AN EXISTING DISTRICT, PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, AND SETTING A TIME AND PLACE FOR THE PUBLIC MEETING AND PUBLIC HEARING THEREON. PUBLIC HEARINGS None. BUSINESS ITEMS 31. Second Reading - Ordinance No. 1120 - Zone Change 2004-03. (F:58.2)(X:172.1) MOVED BY KELLEY, SECONDED BY SCHIFFNER TO ADOPT ORDINANCE NO. 1120, UPON SECOND READING BY TITLE ONLY: Page Ten - City Council Minutes - June 8, 2004 - ORDINANCE NO. 1120 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING ZONE CHANGE NO. 2004-03 CHANGING THE ZONING DESIGNATION OF A PARCEL SPECIFICALLY DESCRIBED AS APN (S) 363-540-010, 011,012 AND 013 FROM R-1 SINGLE FAMILY RESIDENTIAL DISTRICT TO C-2 GENERAL COMMERCIAL DISTRICT UNDER THE ZONING ORDINANCE. (LAKE CHEVROLET) UPON THE FOLLOWING ROLL CALL VOTE: A YES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY - NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE 32. Second Reading - Ordinance No. 1121 - Specific Plan No. 93-3. Amendment No.7. (F:150.2) MOVED BY MAGEE, SECONDED BY HICKMAN TO ADOPT ORDINANCE NO. 1121 UPON SECOND READING BY TITLE ONLY: ORDINANCE NO. 1121 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING SPECIFIC PLAN NO. 93-3, AMENDMENT NO.7, AN AMENDMENT FOR THE REMOVAL OF PARCELS WITHIN APPROVED LIBERTY - Page Eleven - City Council Minutes - June 8, 2004 SPECIFIC PLAN SPECIFICALLY DESCRIBED AS APN 370-050-013 (QUALITY FOAM PACKAGING, INC.) UPON THE FOLLOWING ROLL CALL VOTE: A YES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE 33. Second Reading - Ordinance No. 1122 - Zone Change 2004-04. (F:58.2)(X:172.1) MOVED BY MAGEE, SECONDED BY HICKMAN TO ADOPT ORDINANCE NO. 1122, UPON SECOND READING BY TITLE ONLY: ORDINANCE NO. 1122 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING ZONE CHANGE NO. 2004-04 CHANGING THE ZONING DESIGNATION OF THE PARCEL SPECIFICALLY DESCRIBED AS APN 370-050-013 FROM EAST LAKE SPECIFIC PLAN GENERAL COMMERCIAL TO M-l LIMITED MANUFACTURING DISTRICT UNDER THE ZONING ORDINANCE. (QUALITY FOAM PACKAGING, INC.) UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, Page Twelve - City Council Minutes - June 8, 2004 - MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE 34. Second Reading - Ordinance No. 1123 - Community Facilities District No. 2003-1. Annexations 7 and 8. (F:22.3) MOVED BY SCHIFFNER, SECONDED BY KELLEY TO ADOPT ORDINANCE NO. 1123, UPON SECOND READING BY TITLE ONLY: ORDINANCE NO. 1123 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO.7 (CITY CENTER TOWNHOMES PHASE II) AND ANNEXATION AREA NO.8 (VISCA Y A) AS ANNEXED TO SAID DISTRICT. UPON THE FOLLOWING ROLL CALL VOTE: A YES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE - Page Thirteen - City Council Minutes - June 8, 2004 ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE 35. General Fund Operating Budget and LLMD Operating Budget for Fiscal Years 2004-05 and 2005-06 and Capital Improvement Proiects (CIP) Budget for FY 2005 through 2009. (F:30.1)(X:30.3) City Manager Watenpaugh provided an overview of the two budget study sessions held previously and noted that the Council had either personally reviewed the budget line by line or asked general questions. He noted that there were some challenges which were addressed and indicated that staff had come up with several new revenue sources. He provided a brief overview of the budget for the public, and detailed the projected revenues and expenditures for the two year General Fund and LLMD budgets and the seven year CIP budget. Administrative Services Director Pressey commented that the main thrust of the two year budget was continued growth and maintaining services to keep pace with the growth in the community. He noted that this budget included significant growth for public safety including Police and Fire, and for Community Development; and pointed out that the other departments had reduced their budgets. He highlighted page 10 of the handout, noting that there were total reductions of about $1 million, but there were also increases to meet the continued demands of a growing community. He noted the new revenue sources, not seen in the past; and explained that in light of the State budget crisis and take-away of funds, the City was faced with the challenge of a balanced budget. He commented that the Council had made it a primary goal to have a balanced budget in each fiscal year, and that goal had been "accomplished with revisions since the last meeting. He addressed the future growth and noted that increased public safety would continue each year to keep up with the ratio of one officer per one thousand residents. He indicated that the changes since the last discussion were identified on page 5 of 105, as discussed at Agenda Review. He Page Fourteen - City Council Minutes - June 8, 2004 - commented that the most significant changes were in the DAG fees from Development Agreements, which is one time revenue. Edith Stafford, 29700 Hursh, indicated that her concern on the budget was that it seemed to have taken a very strange turn since May 20th. She expressed concern with incorporating something in the budget that was promised, but had not yet broken ground. She indicated that in her opinion, this was a gamble, and requested trying to make up the $1.2 million shortfall in a different manner. She indicated that incorporating development was not a good idea; and stressed that the Council should scrutinize the budget carefully. She stressed that the people wanted reform and a balanced budget; and suggested that government agencies should not spend any more than they take in, as it was a gamble. She further stressed that the budget should be balanced and unnecessary things should be cut. She indicated that government agencies should be more concerned about the public's money. She stressed that the public works hard and pays taxes, so they should get the full benefit of what they are paying taxes for. - City Treasurer Weber addressed the study session on May 20th and concurred that the budget had changed quite a bit. He indicated that there were increases in all departments, and not decreases except in two departments, being Administrative Services and the Lake. He stressed that there was a $1.2 million shortfall on May 20th. He suggested that there was a proposal for decreasing expenditures and no one would have lost jobs; and the City would have been in good shape fiscally. He addressed the DAG fees from developers and indicated that they should be used as one time fees for capital related items and items other than general fund items. He indicated that it was sad that the dollars were being used for operational items. He suggested that the City was loosing an opportunity to do other work that was needed; and it was a dangerous practice to use these funds to pay for staff at City Hall and daily operating expenses. He indicated that while some cuts were made in different departments, they were only on top of the increases. He indicated that the $1.2 million was not a cutting measure, but rather it was to stop the building up of government. He - Page Fifteen - City Council Minutes - June 8, 2004 suggested that the new money be used for capital improvements and infrastructure. Councilman Schiffner asked the City Manager to explain the difference between this budget and the one presented at the last meeting; where the money came from and how much surplus was left. City Manager Watenpaugh explained that the DAG fees are paid for large specific plans, based on agreements made several years ago. He noted that on several of the projects, such as Centex, the DAG fees are unrestricted and can be spent on whatever the Council wants to spend them. He indicated that based on the goals set for him, and an effort to keep the City operating at current capacity, he was recommending they be used in this way. He commented that the General Plan needed to be updated; and noted that it would seem unusual'to cut the budget, when the community was growing by 6% and bringing in more housing and more jobs. He indicated that there was $5.1 million set aside in unallocated revenues and reserves, which he would suggest remain unallocated. He stressed that the City's budget was no different from a household budget. He advised that staff s recommendation was based on moving the City forward and continuing to add services to a growing City. He indicated that staffhad looked at all of the revenue streams to make sure they were accurate and suggested that the City was two years ahead of the original strategic plan set in place over seven years ago. He stressed that dollars had not been squandered and the budgets had continued to show improvements. He further stressed that staff had done a great job of giving good service. Councilman Schiffner questioned the reserves. City Manager Watenpaugh advised that the reserves were stable at $3 million, but there was an additional $2.1 million in unallocated revenues in case of emergency. He indicated that was a substantial cushion to take care of emergencies. He reiterated that preparing a budget for municipal government was much like developing a household budget, based on the projections of what the organization believes it will receive based on past history. He indicated Page Sixteen - City Council Minutes - June 8, 2004 - that the projections were also based on the building permits being pulled and the building that will occur in the next twelve months. He stressed that the projections were based on the known growth factors and noted that a percentage had been calculated into the sales taxes to account for the growth that would occur. Councilman Schiffner expressed difficulty in understanding the belief that this was not a balanced budget. Councilman Hickman addressed the comments by City Treasurer Weber, and indicated that he was saying that Community Development had been taken out of the budget to save $1.9 million, and revenues from the DAG fees, which are one time fees that were added for $1.4 million over two years. 'He indicated that his concern was that while there was a balanced budget, he believed it could fund capital things with reserve funds, but not operational items from reserves. He indicated that this budget was giving - CPI raises and merit raises, and suggested that certain departments did not deserve merit raises. He indicated that the citizens were not happy with certain things and the citizens are the real bosses. He indicated that he was in a qua,ndary, but he had to work with Mr. Pressey, as he was still on his honeymoon with the Council. He commented that he was leery of some of the figures, but would wait and see. Councilman Magee indicated that he shared his concerns with the City Manager before the meeting today; and while he is pleased with the final product, he was uncomfortable with the process which occurred since May 20th. He expressed hopes for an improved level of communication in this area with the City Manager to ease his discomfort. He commented that the budget as presented provided for significant increases to Police and Fire services, increases to Economic Development and the Lake & Aquatics Department. He indicated that it also included improvements to infrastructure including street maintenance, traffic lights, landscaping, new parks and money for design ofI-15/Railroad Canyon. He further indicated - Page Seventeen - City Council Minutes - June 8, 2004 that there was an increase in the Community Development staffing to keep pace with the City's rapid growth. He advised that the budget allowed for updates 'to the aging General Plan, and maintained the commitment to Community Service. He stressed that this was a balanced budget for the first time in several years. He indicated that the Council and staff had spent a lot of time and he was proud of the work in support of the document. Mayor Pro Tern Kelley noted that there had been several Study Sessions and this had been a tedious process. She commended Councilman Magee on his suggestions to Council at the last meeting. She indicated that everyone had an opportunity to meet with the City Manager and get answers or propose their own resolutions to the budget. She highlighted the budget and noted the carry-over to the start of the year of over $1 million; and stressed that the City was growing. She commented that growth requires services, and technology was needed to meet the demands as the City grows. She noted that this budget was adding 3-1/2 police officers and a 90% increase in the fire budget for nine new firemen. She stressed that there was still $3 million in reserves, as well as extra unallocated revenues; and noted that from her experience the staff was very conservative with their projections. She also noted that every year for the last five years, the City had allocated $40,000 to the library and the loan from the library fund continued to be repaid. She indicated that the Community Services events were all reinstated and staff would be going forward with the Information Technology System upgrade to better meet the demands. She further indicated that the General Plan update needed to move forward on a fast track, due to the MSHCP, and noted that she would like to reinstate the Lake Safety Study in the budget. Administrative Services Director Pressey indicated that the Study was still included in the Lake Budget. Mayor Pro Tern Ke,lley commented that she didn't want to sacrifice services when the City was growing. She indicated that she was happy with the unallocated revenues being carried forward and would be supporting the budget as presented. Page Eighteen - City Council Minutes - June 8, 2004 - Councilman Magee noted that Mayor Pro Tern Kelley brought up an issue that gets under his skin. He clarified that the Information Technology Strategy was not voted on by the majority of the Council, as staff and a former Council had a study session after he was elected and before he was seated, so he was not able to vote on that issue. Councilman Hickman noted his concern for a balanced budget and indicated that he was concerned with how staff found revenues the Council was never informed of in the past. He questioned if there were any other new revenues out there. Mr. Pressey indicated that there were not. Councilman Hickman commented that he appreciated the balanced budget. Mayor Buckley inquired how much sales tax from Costco had been included in the budget. Mr. Pressey indicated that there was a very small portion, as the store would be coming on line in July, 2005. He clarified that there was only a small amount in the 2005-06 budget, due to the existing sales tax - agreement. Mayor Buckley noted a decrease in property tax revenues. Mr. Pressey commented that was due to the State shifting tax dollars. City Manager Watenpaugh noted the "triple flip" shift of dollars; and generally clarified the increases and decreases in revenues. Mayor Buckley questioned the capital improvements for Railroad Canyon, and if extra money was included for re-striping. City Manager Watenpaugh indicated that the funds were only for the planning portion of the work. Community Development Director Brady indicated that funds had been included for interim improvements. Mr. Pressey indicated that he was ready to address the property tax issue and explained that the property tax line included secured and unsecured taxes for the prior year and the current year. He indicated that staff was not sure they could count on the revenue next year. Mayor Buckley inquired if it was counted in the past. Mr. Pressey indicated that generally when the money is received it is a windfall situation, so it is not projected into the budget. Community Development Director Brady indicated that the interim improvements for Railroad Canyon were in the coming year's budget. Mayor Buckley questioned the need for a line to carry the funds over, like the Swick-Matich Restroom Reconstruction _ Page Nineteen - City Council Minutes - June 8, 2004 Project. Mr. Brady confirmed. City Manager Watenpaugh confirmed that they could be rolled over into next year's budget. Mayor Buckley addressed the DAG fees on page 8, and questioned ifD.R. Horton in Tuscany Hills had 145 units. City Manager Watenpaugh indicated that included Pulte and D.R. Horton. Councilman Hickman indicated that it was 207 lots. Mr. Pressey clarified that there were 145 remaining lots in the planning process. Mayor Buckley noted that at the last study session he questioned the Council's ability to pay themselves a flat fee instead of a salary and suggested $500 per month. City Attorney Leibold indicated that the Council salary was dictated by the Government Code and it was capped. Mayor Buckley inquired if the benefits were included in the cap. City Attorney Leibold confirmed. Mayor Buckley addressed the capital for Spring Street and questioned the need for $100,000 for the sidewalk; and questioned the provision of magnesium chloride for the dirt streets. City Manager Watenpaugh inquired how much had been included in the budget for mag-chloride. Community Services Director Sapp indicated that there was $35,000 for about two miles of coverage. Councilman Hickman inquired if it would also be used for the parking areas at the parks. Mr. Sapp indicated that staff was going to do an application at Tuscany Hills Park. Councilman Hickman asked about Lakepoint Park. City Manager Watenpaugh indicated that area was private property. Councilman Hickman addressed the ClP budget and questioned the Lakeshore Drive shoulder drainage, and suggested it could be the cause of future lawsuits. Mr. Sapp indicated that it could be addressed if the Council so desired. Mayor Buckley questioned the cost. City Manager Watenpaugh clarified the proposal and suggested that there were several items such as Wilson Way, for which mag-chloride and drainage could not be very expensive. He indicated that staff would be happy to provide more Page Twenty - City Council Minutes - June 8, 2004 information at the next meeting. Councilman Hickman requested that information to prevent future lawsuits. Councilman Schiffner suggested that if things were being added to the budget, he would like to look at moving some of the traffic signals forward. He noted that some areas were very hazardous, particularly those on Grand Avenue. Mayor Buckley noted that there were two on Grand Avenue over the next two years. Mayor Buckley addressed the cost of personnel and inquired if staff was still planning on paying the HealthlWellness benefit, even though it was never approved by the City Council. City Manager Watenpaugh indicated that the benefit was funded. Mayor Buckley questioned why it was included, when it was not approved. City Manager Watenpaugh clarified that it was in the budget and staff had received it. Mayor Buckley suggested that if it was not approved, it should be eliminated. Councilman - Schiffner noted the existence of Council Action. Mayor Buckley indicated that five people were authorized in that action, but there was not proof of changes approved in public. Councilman Magee indicated that he was sensitive to the concerns about this item. He noted the City Manager's memo which used the terms "speculate" and "assume", and indicated that did not lead to confidence that it was ever addressed. He indicated that he would like to have the budget proceed tonight, but would like the City Manager to come back with a staff report and recommendation. He noted the verbiage in the resolution and the number of people; and commented that the money had tripled. He stressed that he would like a report and recommendation on how or if that should proceed. He also noted that the fourteen staff members who receive the benefit all have salaries of over $100,000, so he would look forward to the City Manager's report. Mayor Buckley indicated that it was quite interesting that he had been asking for a balanced budget for the last couple of years and finally got it, but questioned how it was balanced with influxes of one-time money. He indicated he was not sure that was a good idea. He commented that he was _ Page Twenty-One - City Council Minutes - June 8, 2004 very uncomfortable with the sudden appearance of $1.2 million, and he was not sure that money would have been found or noticed if Mr. Magee had not specifically asked for $1.2 million in cuts, such as merit pay. He questioned how it got balanced, rather than why it got balanced and suggested that the ends did not justify the means. He questioned what to do with.it. Councilman Schiffner commented that in the budget as submitted there was over $1 million in unallocated revenues shown in the budget, but now it was $2.1 million. He stressed that there was already adequate money in the budget, but staff found other sources which had not been included. Mayor Buckley commented that there was enough to cover spending, but it was still spending more than was taken in. He indicated that the question was with the use of one-time money for ongoing expenses, what else could it have been used for; and suggested it should be used for one-time items. He commented as a side note, that he appreciated the multi-year budget, as multi-year budgets are great for planning purposes, but not for action. He suggest~d if the Council approved the budget, that they approve only 2004- 05 and not 2005-06 at the same time. He indicated that he was always worried about the potential for loss of even more Council oversight. He indicated that he thought that the budget was something that should be done every year, but multi-years were great for the long term planning process. MOVED BY KELLEY, SECONDED BY SCHIFFNER TO APPROVE THE BUDGET AS. SUBMITTED. City Manager Watenpaugh reminded the Council that the budget was a fluid, living document which was a guide for staff; and noted that the new monitoring process had been implemented and much more information would be provided to Council on a regular basis. He stressed that they could modify or change the budget at any time. He commented that staff was trying to provide more information for a comfort level in making the decisions. Mayor Buckley noted that in his first years in office he was hearing "wait for the budget" a lot. Councilman Magee questioned the Page Twenty-Two - City Council Minutes - June 8, 2004 - motion on the table, and suggested that it approve the first year, with the second year approved in concept only. There was general discussion of the nature of the budget, as a tool or a guide. MOVED BY KELLEY, SECONDED BY SCHIFFNER TO ADOPT THE 2004-05 FISCAL YEAR BUDGET AND 2005-06 BUDGET, AND THE CAPITAL IMPROVEMENT BUDGET, AS PRESENTED, WITH THE KNOWLEDGE THAT THE COUNCIL HAD FULL AUTHORITY TO OVERSEE ALL BUDGETS. Mayor Buckley questioned the term of the Capital Improvement Budget and if it was included in the approval. Councilman Schiffner commented that the budgets were reviewed every six months. Mayor Pro Tern Kelley commented that the Council requested a multi-year budget and a plan; and reminded the Council of the recent controls they had implemented. She - indicated that she was comfortable with the adoption of the budgets, as they could be changed by Council action, at any time. Councilman Magee noted that he understood that they were adopting the 2004-05, 2005-06 and Capital Improvement Budget, but they would get to review the budgets at mid-year and budget year, every year, and adjust the increments any other time the majority of the Council chooses to do so. Council confirmed. City Manager Watenpaugh confirmed the process. Councilman Hickman questioned why staff wanted a two year budget, instead of a one year. City Manager Watenpaugh clarified that the multi- year budget was suggested by the Council in the past and staff was trying to bring it forward. Mayor Pro Tern Kelley indicated that Council asked staff to come forward with a plan; and stressed that this was what the Council requested and they had full control, every step of the way. Councilman Hickman inquired if the merit raises were automatic in 2005-06. City Attorney Leibold noted that the employee contract comes up for renegotiation next year. Mayor Buckley confirmed that staff was asked to do a multi-year plan. _ Page Twenty-Three - City Council Minutes - June 8, 2004 Councilman Magee noted the increases for staff, and indicated that cost of living was automatic, but noted that the merit increases were subject to review and approval of the supervisors. He indicated that he would ask about the process next year and the number of approved increases and the number not approved, and the dollar amount. Councilman Hickman questioned the ability of the Council to supervise merit increases. THE FOREGOING MOTION CARRIED BY A VOTE OF 4 TO 1 WITH BUCKLEY CASTING THE DISSENTING VOTE. Councilman Hickman indicated that he wanted a one year budget, but would approve a two year and hold staff s feet to the fire. THE REGULAR CITY COUNCIL MEETING WAS RECESSED AT 9:05 P.M. THE CITY COUNCIL MEETING RECONVENED AT 9:22 P.M. THE REGULAR CITY COUNCIL MEETING WAS RECESSED TO CLOSED SE~SION AT 9:23 P.M. THE CITY COUNCIL MEETING RECONVENED AT 9:25 P.M. THE REGULAR CITY COUNCIL MEETING WAS RECESSED TO THE REDEVELOPMENT AGENCY MEETING AT 9:26 PM. THE CITY COUNCIL MEETING RECONVENED AT 10:33 P.M. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES None. Page Twenty-Four - City Council Minutes - June 8, 2004 - CITY MANAGER COMMENTS City Manager Watenpaugh commented on the following: 1) Congratulated the Temescal Canyon High School Freshman Baseball Team and expressed hopes that the next three years would be as good for them. 2) Noted that the City Council addressed major issues at this meeting and complimented them on the manner in which they dealt with those tasks. CITY ATTORNEY COMMENTS No Comments. - COMMITTEE REPORTS No Reports. CITY TREASURER COMMENTS City Treasurer Weber commented on the following: 1) Congratulated the organization on the lease of the Stadium; and noted their participation in baseball leagues for children. He commented that while it was a challenge, if the City didn't get too involved, they would make some big money. CITY COUNCIL COMMENTS Councilman Hickman commented on the following: - Page Twenty-Five - City Council Minutes - June 8,2004 1) Congratulated the students on the scholarships and noted that Jillian Haney had received a number of others. He stressed the high caliber of the kids who won. 2) Noted that the Council faced some struggles that were difficult and there were more study sessions coming up. Mayor Pro Tern Kelley commented on the following: 1) Congratulated the Titan Baseball Team, Jillian Haney, Rafael Ayala and Paula Graver on their recognitions. 2) Noted that she enjoyed the Student of the Year ceremonies. Councilman Schiffner commented on the following: 1) Congratulated the students on their awards, and noted that Jillian Haney had received a $100,000 ROTC scholarship to assist with her studies. 2) Indicated that it had been a good night and the decision on the Stadium might let the RDA get busy with its intended business of improving and redeveloping the City. He commented that it was unfortunate that the funds were invested in the Stadium, as the RDA had not been able to do much since then. Councilman Magee commented on the following: 1) Requested a status report from the City Manager on the Lake Chevrolet project and how the plan check was moving forward. He indicated that they needed permits by July 1st to avoid some penalties. Page Twenty-Six - City Council Minutes - June 8, 2004 - 2) Noted that he asked for a report on Health & Wellness and indicated that it was an important issue that had festered. He stressed that resolution of the issue was needed. 3) Requested a status report on Contract employees, and noted that at least one contract expires this month, which has loose ends. He indicated that he wanted a list of the current contract employees, contract term and responsibilities. 4) Indicated that this budget process taught him the term "unallocated revenue", and noted that this was not something in his household budget. He requested that before the mid-year budget review a policy be developed for unallocated revenue, as to what it is, and what the Council would like to do with it. He stressed that the Council as a group needed to decide how it was handled. - 5) Commented that with regard to the Macy/Grand Traffic Signal, there was no partner to work with on it. City Manager Watenpaugh clarified that it was a State highway and they would have to do two legs of the three leg intersection. Community Development Director Brady confirmed. City Manager Watenpaugh indicated that staff would address it with Caltrans. 6) Noted the comments regarding problems on the Lake, and commented on the boat fire which injured four youths in the care of their father. He noted the Trauma Intervention Program's involvement and the involvement of Gina Bennett in providing care and comfort to the family. He advised that the TIP would have a booth at the Juneteenth event and encouraged participation in the program. Mayor Buckley commented on the following: 1) Noted his concerns with the budget process. - Page Twenty-Seven - City Council Minutes - June 8, 2004 2) Indicated that he would watch the due diligence process on the Stadium as he was still concerned with the arrangement, but he did not want to pay $600,000 a year. 3) Addressed the recommendations from the Williams Landscaping audit and questioned the process and issues in the report. 4) Thanked the VFW and the Elsinore First Assembly of God Church for their support of the Memorial Day event. 5) Advised that on Wednesday and Thursday of this week, t~e . . . . '. "_ Governor's office in Riverside would have a remem~fapce ~ok f~-- signatures and messages for former President Reagau. . . -~ : 6) Announced that starting this date, applications for the Boat. r~!.ade; 91 Lights were being accepted; and noted that there would befirewoi.ks on the levee for the 4th of July. He indicated that applications would be accepted until June 28th. 7) Announced the Public Safety Advisory Commission Meeting to be held on June 9th at 6 p.m. 8) Announced the Study Session regarding John Laing Homes on June 10th at 5 p.m., and encouraged everyone to attend. 9) Announced the following upcoming events: High School Graduations at the Diamond - June 11 th at 3 and 7 p.m. Juneteenth event at Yarborough Park - June 19th Lake Elsinore Rod Run - June 26th ADJOURNMENT Page Twenty-Eight - City Council Minutes - June 8, 2004 - THE REGULAR CITY COUNCIL MEETING WAS ADJOURNED AT 10:41 P.M. - -