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HomeMy WebLinkAbout04-15-2003-Adjourned City Council MinutesMINUTES ADJOURNED REGULAR CITY COUNCIL MEETING 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, APRIL 15, 2003 .............................................................................., CALL TO ORDER The Adjourned Regular City Council Meeting was called to order by Mayor Brinley at 4:01 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Brinley. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, BRINLEY NONE Also present were: City Manager Watenpaugh, Assistant City Attorney Miles, Community Development Director Brady, Community Services Director Sapp, Police Chief Walsh, Finance Manager Magee, Public Works Manager Payne, and City Clerk/Human Resources Director Kasad. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision A of Gov't Code §54956.9) Water Not Promises v City of Lake Elsinore, Lake Elsinore Redevelopment Agency and Elsinore Valley Municipal Water District (Riv. Co. Superior Court Case No. 389013). (F:52.2)(X:164.2)(X:40.1) Page Two - City Council Minutes - April 15, 2003 Assistant City Attorney Miles announced the Closed Session item as listed on the Agenda. THE ADJOURNED REGULAR CITY COUNCIL MEETING WAS TO CLOSED SESSION AT 4:02 P.M. THE ADJOiIRNED REGULAR CITY COUNCIL MEETING RECONVENED AT 4:08 P.M. INVOCATION Mayor Brinley led the meeting in a Moment of Silent reflection for the military personnel serving in Iraq. CLOSED SESSION REPORT Assistant City Attorney Miles indicated that the Closed Session discussion related to the first Consent Calendar item with regard to the Defense Coordination Agreement with EVMWD in the Water Not Promises litigation. He indicated that following negotiations with Legal Counsels, the parties had agreed to the terms of the Defense Agreement. CONSENT CALENDAR ITEMS MOVED BY SCHIFFNER, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE CONSENT CALENDAR AS PRESENTED. Confirmed approval of Defense Coordination Agreement with EVMWD re: Water Not Promises litigation, and authorized the Mayor & Agency Chairperson to execute the agreement, subject to any minor modifications approved by the City Attorney. (F:68.1)(X:52.2) Page Three - City Council Minutes - April 15, 2003 BUSINESS ITEMS 21. Second Reading - Ordinance No. 1092 regarding Development Agreement between Como at Tuscany Hill Corporation and the City of Lake Elsinore. (F:68.1)(X:1321) City Manager Watenpaugh noted that this was the procedural second reading of the Ordinance. MOVED BY SCHIFFNER, SECONDED BY HICKMAN TO ADOPT ORDINANCE NO. 1092, UPON SECOND READING BY TITLE ONLY: ORDINANCE NO. 1092 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT WITH COMO AT TUSCANY HILL CORPORATION. UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, BRINLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE 22. Second ReadinQ Ordinance No. 1093 regardinQ Development Agreement between Urban Pacific Builders A California Limited Liability Corporation and the City of Lake Elsinore. (F:68.1)(X:132.1) Page Four - City Council Minutes -Apri115, 2003 City Manager Watenpaugh noted that this was the procedural second reading of the Ordinance. MOVED BY SCHIFFNER, SECONDED BY HICKMAN TO ADOPT ORDINANCE N0.1093, UPON SECOND READING BY TITLE ONLY ORDINANCE NO. 1093 AN ORDINANCE FO THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT WITH iTRBAN PACIFIC BUILDERS, LLC. UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, BRINLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE 23. Second Reading Ordinance No. 1094 regarding Development Agreement between the DEH LLC A California Limited Liability Corporation and the City of Lake Elsinore. (F:68.1)(X:132.1) City Manager Watenpaugh noted that this was the procedural second reading of the Ordinance. MOVED BY SCHIFFNER, SECONDED BY KELLEY TO ADOPT ORDINANCE N0.1094, UPON SECOND READING BY TITLE ONLY: Page Five - City Council Minutes -April 15, 2003 ORDINANGE N0.1094 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT WITH DEH, LLC. UPON THE FOLLOWING ROLL CALL VOTE: AYES: COiTNCILMEMBERS: BUCKLEY, ffiCKMAN, KELLEY, SCHIFFNER, BRINLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE 24. Second Reading Ordinance No. 1095 regarding Termination of Development Agreement dated February 28, 1997, between the City of Lake Elsinore and First Financial Group, Inc. (F:68.1) City Manager Watenpaugh indicated that this was the second reading of the ordinance which would serve as the final settlement of litigation. MOVED BY KELLEY, SECONDED BY HICKMAN TO ADOPT ORDINANCE N0.1095, UPON SECOND READING BY TTTLE ONLY: ORDINANCE NO. 1095 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REPEALING ORDINANCE NO. 1024 AND PROVIDING FOR THE TERMINATION OF THE Page Six - City Council Minutes - April 15, 2003 ~., °i ~~ ~ . ~. DEVELOPMENT AGREEMENT WITH FIRST FINANCIAL GROUP, INC. UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, BRINLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE 25. Best Western Hotel Agreement. (F:68.1) City Manager Watenpaugh highlighted the proposed Agreement with Country Inn Suites, noting that the Council had reviewed the initial proposal and directed staff to meet with the developer, Mayor and Mayor Pro Tem. He explained that the original request was for the reimbursement of the infrastructure costs by the City, and a portion of the transient occupancy tax, for a total of $1.5 million; however, the City Council did not agree. He further explained that the project was proposed for the area across from the Lakeview Inn on Casino Drive. He indicated that the proposal had been discussed further and was ready for presentation. He advised that the new proposal would provide up to one million dollars in reimbursement, with the payments limited to 15 years; and the percentage split of 60/40, with 40% to the City. He indicated that the first year was anticipated to produce $120,000 in TOT taxes; and noted that the cost of the hotel would be about $5 million. He advised that the hotel would have interior corridors, serve complimentary continental breakfast and allow room for expansion. He indicated tha4 over a period of ten years, it was anticipated that the project Page Seven - City Council Minutes - April 15, 2003 would generate about $2.1 million, not counting spin-off revenues. He stressed that there were not enough facilities in town, and noted that many special event participants had to stay in other communities to attend. Mr. Sashi Engineer thanked the City Council and Staff for their consideration. He indicated that it would be nice to have a hotel in Lake Elsinore, as there was a lack of such facilities. He stressed the loss of revenue to other cities and noted that this franchise would generate an enormous amount of money for the City. Councilman Hickman inquired if the Council's discussion had been to allow them to work with the infrastructure money only. City Manager Watenpaugh confirmed. Councilman Hickman questioned the name of this hotel and questioned the willingness of the Lakeview Inn to become a "flagship" if the City so desired. He also questioned if this approval was for the elimination of the TiJMF fees. City Manager Watenpaugh clarified the request and indicated that this would not eliminate the TLTMF fees. Councilman Hickman questioned the status of negotiations with the Baseball Stadium, and if a hotel was contemplated in that project. City Manager Watenpaugh indicated that those negotiations were not yet complete. Councilman Hickman inquired if it was true that the hotels were only at 50 or 60% capacity. City Manager Watenpaugh did not have that information available. Councilman Buckley questioned the TOT Tax Rate. City Manager Watenpaugh indicated that it was 10%. Councilman Buckley questioned the anticipated room rate. Mr. Engineer indicated it would be in the $80 to $90 a night range. Councilman Buckley questioned the anticipated occupancy rate. Mr. Engineer indicated that they anticipated about 72%. Councilman Buckley commented on the $600,000 and questioned what it would include, specifically if it was part of the TUlVIF'. City Manager Watenpaugh clarified that the infrastructure would be included, but there would still be other fees. Councilman Buckley questioned the room count and the square footage. Mr. Page Eight - City Council Minutes - April 15, 2003 Engineer indicated that it was 80 rooms and about 35,000 square fee. Councilman Buckley questioned the deal with the auto dealerships. City Manager Watenpaugh indicated that they got all infrastructure costs reimbursed. Councilman Buckley indicated that there was truly a need for more bed space in town, and with regard to infrastructure he would have no problem with the $600,000 being paid back in ten years. He indicated that the problem with going over the infrastructure amount was the setting of a precedent. He noted another project on the Planning Commission agenda, and noted that they were not requesting funding and the older establishments would also make improvements without reimbursement. He indicated that he had a problem with giving $5,000 per room over the infrastructure costs to this facility and no one else. He stressed his concern with setting that kind of precedent, and indicated that he would support only the $600,000. Mayor Pro Tem Schiffner indicated that the City needed the hotel and he had no problem with refunding the money to them, when the City share would be $48,000. He indicated that it would fill a vacancy in the City, and stressed the number of events which were precluded or the participants had to stay in Temecula. He noted that the project would not have a restaurant, so they would generate new business for the existing ones. He stressed that this project would be a considerable advantage to the City. He further stressed that the City was not paying any money, but would get a percentage back. He indicated that with regard to the precedent, he would make a deal with any business that wanted to put up money, with the City giving some back. He indicated that he would not mind that precedent. He commented that he was not thrilled with the first offer, but he could live with this proposal. Councilwoman Kelley noted that she was not thrilled with the original proposal either, and was still on the fence about this one. She concurred that there was a need for more hotel space, and stressed the spin-off for a number of events and recreation. She also concurred that it was a benefit for the community, as the City was loosing business to other areas. She indicated Page Nine - City Council Minutes - April 15, 2003 that she did not mind the $600,000, but was torn on the other issues. She commented that she did not want to set precedence, but on the other had she knew the TiJMF fees would be high. She questioned the time line for construction. Mr. Engineer indicated that they were in the process of working on grading and the architects were warking on the project. He further indicated that they intended to open by June, 2004. City Manager Watenpaugh noted that the time line might beat the TiJMF fees. Mayor Brinley indicated that the proposal was much better than before. She concurred with Mayor Pro Tem Schiffner that the community was lacking in hotel space. She noted events such as the boating events, and moto-cross racing, and indicated that there was nowhere to stay in Lake Elsinore, so they ended up in Temecula and Corona to eat and shop. She indicated that she was not thrilled with this arrangement, but if it was delayed they would have to pay TiJMF fees. She noted that they were willing to come to the community, and it was worth taking a chance. She noted comments regarding the occupancy rates, and suggested that the marketing and promotions would be different. She stressed the need for this type of facility for the community and noted the benefit for existing restaurants. MOVED BY SCHIFFNER, SECONDED BY KELLEY AND CARRIED BY A VOTE OF 3 TO 2 WITH BUCKLEY AND HICKMAN CASTING THE DISSENTING VOTES TO APPROVE THE AGREEMENT FOR THE COUNTRY INN AND SUITES. City Manager Watenpaugh noted that there were philosophical differences on how to pursue development; however if this tool was not utilized, the City would be out of the market as the surrounding cities were using similar tools and more. He stressed that this was the way development of this type occurred. Mayor Brinley noted similarities with the Embassy Suites in Temecula. City Manager Watenpaugh noted discussions of more auto dealers and water parks, which had not come to fruition, and stressed that this developer had the land and was ready to build. Mayor Pro Tem Page Ten - City Council Minutes -April 15, 2003 Schiffner expressed hopes that the City would someday reach the position where people were begging to build in the City. He questioned the number of people the project would employ. Mr. Engineer indicated that it would employ 12 to 15 people. 26. Clarification of Issues to be presented to WRCOG in Connection with Transportation Uniform Mitigation Fee Ordinance. (F:140.1)(X:108.13) City Manager Watenpaugh noted that Council approved the first reading of the Ordinance to participate in the Western Riverside County Regional TUMF Program at the previous City Council Meeting. He further indicated that as per the City Attorney and Council, the ordinance was moved forward to a second reading in order to be in compliance with what was needed to participate in the Program. He stated that the Council had directed the City Attorney's office to outline a variety of issues of concern to the Council, to go forward as a rider attached to the Ordinance. He explained that the rider would express the concerns Council would like WRCOG to consider as exceptions to the Ordinance. He further noted that the City Attorney's office had outlined the six issues of concern, and provided an overview of the concerns as follows: Exemption ofNon-Residential Projects Vested Prior to July 1, 2004 City Manager Watenpaugh explained that Mr. Bishop stated that based on being in compliance, once the ordinance was in effect, any agreements after that date would be required to pay although they may not pay until June 30, 2004. He noted that had an impact on economic development in the community. 2. The TiJMF Ordinance should include a definition of the Administrative Plan City Manager Watenpaugh noted that the Ordinance referenced an "Administrative Plan" and "Administration Plan". He further noted Page Eleven - City Council Minutes -April 15, 2003 that Council wanted to ensure that they reference the "Plan" dated March 24~'. The indemnity language in the Administrative Plan should be revised. City Manager Watenpaugh referenced the hand-out Council had received outlining what was intended to move forward to the WRCOG Executive Board at the meeting in May. He noted that the hand-out stated that Council would include language stipulating that anyone who filed litigation against one of the member agencies regarding the validity of the Ordinance at face value would be defended by WRCOG. He noted that Council wished to include explicit language to that affect. 4. Certain language in the Zone Administration Section of the Administrative Plan should be revised City Manager Watenpaugh noted that projects within a zone completed with funds left over, funds could be spent outside the zone subject to that zone membership's approval. 5. Lake Elsinore would like to recover its cost of administering the TLTIVIF. City Manager Watenpaugh stated that the in the Administrative Plan there was no cost recovery for any of the member agencies except WRCOG. He noted that Council felt that it would be beneficial to the City to recover administrative costs for evaluation and implementation of the Plan. 6. The Exemption far "Low Income Residential Housing" should include Low and Moderate Income Housing. City Manager Watenpaugh stated that it was the intent of Council to stay consistent with Redevelopment Law in terms of what was stated. Page T~velve - City Council Minutes - April 15, 2003 City Manager Watenpaugh invited questions from Council to be addressed by City Attorney Miles and forwarded to WRCOG. Councilwoman Kelley indicated her approval of the above mentioned issues. Councilman Buckley addressed No. 3, the issue of the indemnity language and noted that WRCOG would not defend any agency if they adopted the Ordinance in the wrong language. He further addressed No. 4 regarding the Zone Administration andrequested the use of different language to accomplish the same goal; he suggested the elimination of "Once all projects within a Zone have been completed and paid for..." and replace with "...provided such projects 1), 2) and 3) connect directly to projects inside the zone that have also been approved and 4) the zone in which the project is constructed must also contribute to the costs." He addressed No. 6 and indicated that he would prefer a household income of 80% as opposed to 120% of area median income. He further noted that he would present what Council approved to WRCOG. Councilman Hickman noted his approval of the item as presented. Mayor Pro Tem Schiffner addressed No. 4 regarding Zone Administration and noted that he preferred that funds be spent within the specific zone. Mayor Brinley concurred and noted that there were enough issues within the Zone to avoid taking funds to another Zone for a project. Councilman Buckley suggested that "No spending outside the Zone" be added to Issue No. 4. Mayor Brinley and Mayor Pro Tem Schiffner concurred. Mayor Pro Tem Schiffner stated that nothing prevented two zones from working together on joint projects and each using their own money. Mayor Page Thirteen - City Council Miuutes - Apri115, 2003 Brinley noted that all funds should stay within the zones until all projects were accomplished. MOVED BY KELLEY, SECONDED BY SCHIFFNER AND CARRIED BY UNANIMOUS VOTE TO ACCEPT THE VERBIAGE PRESENTED WITH ISSUE NO. 4 AMENDED TO STATE "NO SPENDING OUTSIDE THE ZONE". Assistant City Attorney Miles presented clarification to address another item set forth in the discussion, wherein the City Attorney sought direction from the Council whether to include a request from the City to WRCOG to conduct a census of units exempted from the TLJMF by participating cities. He noted that the issue related to the Nexus Study, and the premise of the Nexus Study that did not take into consideration all units exempted currently or by the time the TIJMF went into affect. He reiterated that the City Attorney's Office sought direction from Council on that issue. City Manager Watenpaugh commented that it was an important issue; and WRCOG had attempted to find out from the local communities the number of units to be built and consider the exemptions. He noted that the response was minimal, according to Mr. Bishop. He further noted that he had no problem with the City Attorney's Office request. Councilman Buckley indicated that since everyone had adopted TUMF and WRCOG was running it, the Council could demand it. Councilwoman Kelley noted that the exemptions would dramatically change the situation. MOVED BY BRINLEY, SECONDED BY SCHIFFNER AND CARRIED BY UNANIMOUS VOTE TO INCLUDE THE CITY ATTORNEY REQUEST IN THE RIDER OF SUPPLEMENTAL TUMF ISSUES. Page Fourteen - City Council Minutes -April 15, 2003 THE ADJOURNED REGULAR CITY COUNCIL MEETING WAS RECESSED AT 4:49 P.M. THE ADJOURNED CITY COUNCIL MEETING RECONVENED AT 4:50 P.M. PUBLIC COMMENTS - NON-AGENDIZED ITEMS No Comments. CITY MANAGER COMMENTS No Comments. CITY ATTORNEY COMMENTS ' ;.,,... Assistant City Attorney Miles indicated he was pleased to participate in this meeting. CITY COUNCIL COMMENTS Councilman Buckley commented on the following: 1) Questioned concerns raised by residents near the La Laguna project, about road used for construction traffic. City Manager Watenpaugh indicated that they were placing erosion control, and no construction was underway yet. He indicated that was the only means of access, and noted that he was not aware of public works or engineering giving any direction on the issue. Community Services Director Sapp agreed to check on the situation. Page Fifteen - City Council Minutes - April 15, 2003 ADJOiIRNMENT THE ADJOURNED REGULAR CITY COUNCIL MEETING WAS ADJOURNED AT 4:51 P.M. PAMELA BRI~TLEY, MAYa CITY OF LAKE ELSINORE ATTEST: C SA , CMC, CITY CLERK/ HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE