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HomeMy WebLinkAbout07-30-2002 City Council MinutesMINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, JULY 30, 2002 CALL TO ORDER The Regular City Council Meeting was called to order by Mayor Kelley at 5:10 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS BRINLEY, BUCKLEY, HICKMAN, SCHIFFNER, KELLEY NONE Also present were: City Manager Watenpaugh, Assistant City Manager Best, City Attorney Leibold, Assistant City Attorney Van Blarcom, and City Clerk/Human Resources Director Kasad. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Subdivision (a) of Gov't Code §54956.9) City of Lake Elsinore v. Elsinore Valley Municipal Water District (Riverside Superior Court Case #35961). (F:40.1)(X:52.2) B. CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.8) - United Public Employees of California, LIUNA Local 777. (F:116.1) C. CONFERENCE WITH LEGAL COUNSEL -- EXISTING LITIGATION (Subdivision (a) of Gov't Code §54956.9) PAGE TWO - CITY COUNCIL MINUTES - JULY 30, 2002 City of Lake Elsinore, Redevelopment Agency of the City of Lake Elsinore v. Diamond Sports & Entertainment LLC et al (Riverside Co. Superior Court Case #356131). (F:40. 1)(X:52. 1) D. CONFERENCE WITH LEGAL COUNSEL -- EXISTING LITIGATION (Subdivision (a) of Gov't Code §54956.9) Liberty Founders LLC v. City of Lake Elsinore, et al (Riverside Co. Superior Court Case 4355890) (F:40.1)(X:52.1) City Attorney Leibold announced the Closed Session discussion items as listed above. THE REGULAR CITY COUNCIL MEETING WAS RECESSED TO CLOSED SESSION AT 5:10 P.M. The Closed Session discussion concluded at 7:00 p.m. RECONVENE PUBLIC SESSION (7:00 p.m.) Mayor Kelley called the Regular City Council Meeting to order in Public Session at 7:05 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by City Clerk/Human Resources Director Kasad. INVOCATION The Invocation was provided by City Treasurer Ferro. PAGE THREE - CITY COUNCIL MINUTES - JULY 309 2002 ROLL CALL PRESENT: COUNCILMEMBERS ABSENT: COUNCILMEMBERS BRINLEY, BUCKLEY, HICKMAN, SCHIFFNER, KELLEY NONE Also present were: City Manager Watenpaugh, Assistant City Manager Best, City Attorney Leibold, Administrative Services Director Boone, Community Development Director Brady, Community Services Director Sapp, Police Chief Walsh, Information /Communications Manager Dennis, City Treasurer Ferro and City Clerk/Human Resources Director Kasad. PRESENTATIONS a. Presentation - Update on Outlet Center. (F:150.2) Mayor Kelley introduced Joann Truax, General Manager & Kelly Daniels, Marketing Director for the Lake Elsinore Outlet Center. Ms. Truax provided an update on the center's vehicle traffic, which is up 11% over last year, and noted that sales were up 15% over the same period last year. She advised that from the leasing perspective, they currently had 9,250 square feet of space in negotiation, and 16,550 in the written proposal phase. She indicated that the Disney Warehouse would be at the center from July 18 ' to September 3`d, and noted that they considered themselves a sales "event ", with merchandise from the theme parks in a liquidation format. She announced that they had completed negotiations with Casual Corner, Petite Sophisticate and August Max stores, with construction starting soon, and opening by the holidays. She further announced the FOXX Racing Outlet which should be open in about six weeks. She commented that the Center's growing sales trend was gaining attention from national retailers; and noted PAGE FOUR - CITY COUNCIL MINUTES - JULY 309 2002 that a variety of other issues were pending, which she hoped to share at a later date. Ms. Daniels announced their upcoming events including a Halloween "DNA Life Print for Awareness" event for the protection of children. She detailed the program and noted that it would be offered free of charge. She further announced that Christmas would bring the "Largest Tree in the Inland Empire" to the Center, to include a media event spotlighting the tree decorated in a Gingerbread theme; and a lighting ceremony on November 23`a to include snow, Santa, a parade and entertainment. She noted an event in November entitled "Outlets 101 ", with opportunities for local charities to sell tickets and raise funds. Councilwoman Brinley suggested that "Tootsie the Trolley" could be incorporated into their holiday events. b. Presentation - Unity in the Community Parade. (F:62.1) Representative was not present for presentation. CLOSED SESSION REPORT City Attorney Leibold reported that the issues were discussed as listed on the Agenda, with no reportable action. PUBLIC COMMENTS - AGENDIZED ITEMS Requests were received to address the following items and deferred to those discussions: Item Nos. 6, 22, and 33. PAGE FIVE - CITY COUNCIL MINUTES - JULY 309 2002 CONSENT CALENDAR ITEMS The following item was pulled from the Consent Calendar for further discussion and consideration: Item No. 6. MOVED BY BRINLEY, SECONDED BY SCHIFFNER AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. The following Minutes were approved: a. Regular City Council Meeting - June 25, 2002. (F:44.4) b. City Council Study Session - June 28, 2002. C. City Council /Redevelopment Agency Study Session - July 9, 2002. d. Regular City Council Meeting - July 9, 2002. e. City Council Study Session - July 16, 2002. f. City Council /Planning Commission Study Session - July 16, 2002. The following Minutes were received and ordered filed: g. Planning Commission Meeting - June 26, 2002. (F:60.3) 2. Ratified Warrant List for July 15, 2002. (F:12.3) Received and ordered filed the Investment Report for June, 2002. (F: 12.5) 4. Awarded Contract for Clean-up and Mitigation of Contamination from Former Underground Storage Tanks at 161 South Main Street (corner of Main and Sulpher) to GEO SEC, in the amount of $140,000. (F:68.1)(X:78.1) PAGE SIX - CITY COUNCIL MINUTES - JULY 309 2002 Accepted Notice of Completion for Lincoln Street, Collier and Grand Avenues Pavement Rehabilitation from All American Asphalt, and authorized recordation. (F:156.2) 7. Adopted Resolutions Confirming Fiscal Year 2002 -03 Special Taxes for: CFD 91 -2 (Summerhill Public Improvements); CFD 88 -3 (West Lake Elsinore Public Improvements); CFD 90 -3 (North Lake Elsinore Hills Public Improvements); CFD 95 -1 (Lake Elsinore City Center Public Improvements). Resolution Nos. 2002 -32 thru 2002 -35 (F: 22.3) RESOLUTION NO. 2002-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES FOR CFD 91 -2. RESOLUTION NO. 2002-33 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES FOR CFD 88 -3. RESOLUTION NO. 2002-34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES FOR CFD 90 -3. PAGE SEVEN - CITY COUNCIL MINUTES - JULY 30, 2002 RESOLUTION NO. 2002-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES FOR CFD 95 -1. 8. Adopted Resolutions Confirming Fiscal Year 2002 -03 Special Assessments for: AD 87 -2, AD 89 -1, AD 86 -1, AD 90 -1A and AD 93 -1. Resolution Nos. 2002 -36 thru 2002 -40. (F:22.3) RESOLUTION NO. 2002-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES FOR AD 87 -2. RESOLUTION NO. 2002-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES FOR AD 89 -1. RESOLUTION NO. 2002-38 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES FOR AD 86 -1. PAGE EIGHT - CITY COUNCIL MINUTES - JULY 309 2002 RESOLUTION NO. 2002-39 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES FOR AD 90 -1A. RESOLUTION NO. 2002-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REQUESTING THE TAX COLLECTOR OF THE COUNTY OF RIVERSIDE TO PLACE SPECIAL TAXES ON THE BILLS OF CERTAIN PROPERTIES FOR AD 93 -1. 9. Approved RDA Amended and Restated Reimbursement Agreement (City) with Fiscal Year 2001 -02 additions. (F: 68.1)(X:134.7) PUBLIC HEARING 21. CR & R Inc. - Request to Place Delinquent Refuse Bills on Fiscal Year 2002 -2003 Tax Roll. (F:163.1) City Manager Watenpaugh highlighted this item which is considered on an annual basis, for accounts which are 120 days late on their payments. He advised that there were currently 171 delinquent accounts totaling $22,536, and requested Council approval to place them on the tax rolls. Mayor Kelley opened the public hearing at 7:15 p.m., asking those persons interested in this item to speak. The following people spoke: George Alongi, 649 Mills Street, indicated that he was present at this meeting because he was on the Council when CR & R came to the City. He indicated that Mr. Fahrion and CR & R had kept their word, with the PAGE NINE - CITY COUNCIL MINUTES - JULY 309 2002 trucks being immaculate and pick -up provided for large items. He stressed the importance of saying when things were done right, and expressed appreciation for the level of service. Chris Hyland, 15191 Wavecrest, commented that CR & R had done an exceptional job, with on time service and courteous drivers; and encouraged the Council to approve this request. Mayor Kelley closed the public input portion of the hearing at 7:17 p.m. Councilman Hickman indicated that he met with David Fahrion and received an education; and noted that it takes seven years to pay for the containers. He commented that he was pleased with the service and the extras provided by CR & R. Councilman Buckley indicated that his only comment was that CR & R did an excellent job. He suggested having a general study session on the contract provisions, time, terms and franchise fee, and noted that the franchise fee was high and that it would be appropriate to address street sweeping on dirt roads. Councilwoman Brinley indicated that CR & R did a good job with trash collection and were very community minded. She noted Mr. Fahrion's participation in local events and stressed his community orientation. She indicated that the company meant what they said and said what they did; and noted that complaints were always addressed and reports back are provided. Mayor Pro Tern Schiffner concurred that CR & R did a terrific job and should not have to carry the delinquent accounts. He indicated that he would like to see all trash billings on the tax rolls. PAGE TEN - CITY COUNCIL MINUTES - JULY 30, 2002 Mayor Kelley concurred with the Council and audience kudos and congratulated them on their service. She noted that CR & R always assists with the "Music with a View" Concert Series. MOVED BY BRINLEY, SECONDED BY SCHIFFNER AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE PLACEMENT OF DELINQUENT ACCOUNTS ON THE FISCAL YEAR 2002 -03 TAX ROLLS. 22. Public Hearing Fiscal Year 2002 -03 Citywide Lighting and Landscape Maintenance District - Resolution No. 2002 -41. (17:22.2) City Manager Watenpaugh introduced this item, and noted that it was the annual reinstatement of the District. He explained that annual consideration of the fees for the program was required. He advised that parks had been removed from the program based on Proposition 218 and noted the projected assessments as listed in the report for each zone. He clarified that this was an annual assessment, rather than a monthly one. Mayor Kelley opened the public hearing at 7:21 p.m., asking those persons interested in this item to speak. The following person spoke: Chris Hyland, 15191 Wavecrest, indicated that the LLMD was one of her pet peeves, and indicated that the resolution was to be decided by the electorate. She noted that in 1988 -89 houses in her tract were built with a block wall fence surrounding them, and contrasted that information with information provided by the Engineer. She questioned the cost variable between homes in the same tract. She expressed concern that in the past few years, the landscaping around the tract had been replaced three times. She presented photographs of the landscaping in the area and stressed that they pay the highest assessments in the City. She suggested that the City should do the work or not charge the residents. Councilwoman Brinley questioned the names of the streets with problem landscaping. Mrs. Hyland PAGE ELEVEN - CITY COUNCIL MINUTES - JULY 309 2002 Indicated it was Tiller Lane, and stressed the City's responsibility. She advised that rocks were placed along the road and always ended up in the street and look awful. Councilwoman Brinley further questioned the streets involved. City Manager Watenpaugh indicated that staff knew the names of the streets and were addressing the concerns. Mrs. Hyland indicated that changes needed to be made or she would get 98% of the residents to oppose this District. City Manager Watenpaugh commented that he met with staff and they would be addressing Tiller Lane. He clarified statements from the July 9t' Council Meeting and noted that the City's Assessment Engineer had been called a liar for his comments. He noted documents in his possession which were previously presented to the homeowners and the City Council, explaining the issue that came up on an improper assessment, due to a computer glitch. He indicated that in December 21, 1989 a letter went to property owners explaining the glitch, and a December 14' report explained the glitch to Council. He further indicated that Mr. Cooper at Berryman & Stephenson found the glitch and subsequently wrote a check to the City, out of their fee; and the money was refunded to property owners in the amount of $36.24. He stressed that the City's Assessment Engineer was competent and did not lie. Councilman Buckley commented that aside from the problematic landscape issue, he generally supports the concept of the LLMD. He indicated that he would like to make sure the residents have as much confidence as possible in the program, and suggested a public study session to explain the District and its history. Councilman Hickman indicated that the concept for the LLMD was a pass - through with the money going to the landscapers who do the work, and the City did not make money. He suggested anyone with problems call him or staff and indicated that while there were problems where he lived, they kept addressing them. PAGE TWELVE - CITY COUNCIL MINUTES - JULY 30, 2002 Councilwoman Brinley addressed the streets in Mrs. Hyland's tract and confirmed that they were being addressed. Community Services Director Sapp indicated that staff was addressing the exterior landscaping, but not the interior. He indicated that he would go out and look at the landscaping. Councilwoman Brinley requested a follow -up report; and commented that she was glad staff followed -up on Mr. Cooper's statement and the money had been reimbursed. She suggested providing a copy of the 1989 documents to the person who made the statements from the podium, for inclusion in their documents. Councilwoman Brinley requested an explanation, from Mr. Cooper, of how the costs are broken down. Mr. Cooper noted that it was hard to be brief as the material was a bit complicated, and concurred that a study session was a good idea. He explained how the lights and landscaping are funded throughout the City, and how some facilities are designated to be of City -wide benefit and spread to all property owners. He commented that certain areas have more street lighting than others and are designated as Special Benefit Zones. Councilwoman Brinley questioned those areas. City Manager Watenpaugh clarified that all zones were broken down in the report. Mr. Cooper noted page six of the Engineer's Report which showed a breakdown of street lighting. He further noted the map in the report depicting those areas of the City. He further addressed street lighting, landscaping and tree maintenance areas. Councilwoman Brinley confirmed that a copy of the report was at City Hall for review or purchase. Mr. Cooper confirmed, noting that it was easily reproduced. He further explained the assessments for each area of service. Councilwoman Brinley noted the new residents and their lack of understanding of the District and how it was formed. She encouraged new residents to get a copy of the report or view it at City Hall; and inquired if residents should call Mr. Cooper with questions. City Manager Watenpaugh suggested contacting City Hall and he or Mr. Boone would respond to questions. Mr. Cooper noted that the rates had been frozen since 1996. Councilwoman Brinley inquired if the fees could be raised again. Mr. Cooper indicated that increases could only be made via a special election; otherwise the only way an assessment could change would be if PAGE THIRTEEN - CITY COUNCIL MINUTES - JULY 309 2002 someone had a vacant parcel on which they built, which would move them to another rate. Mayor Pro Tem Schiffner inquired how additional cost factors were addressed, as there were probably changes every year. City Manager Watenpaugh explained that it only increases via additional EDU's as they are built. Mayor Pro Tern Schiffner noted that the general fund would have to cover any other increases. Mayor Kelley questioned the newer developments and landscaped areas. City Manager Watenpaugh noted that there were several large Specific Plans with Development Agreements pending, and when they were negotiated the agreement included up -front parks with credit for park assessment fees, in lieu of park fees on every unit. He noted that Canyon Hills was building a 5+ acre park, by the time the 500`" home is built. He explained that the park would be maintained by the general fund or by an Operations and Maintenance CFD. He noted that it would be the same with Ramsgate, as they would build two new parks in their development. Mayor Kelley closed the public hearing at 7:40 p.m. MOVED BY BRINLEY, SECONDED BY SCHIFFNER AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2002-41 SETTING THE FISCAL YEAR 2002 -03 BENEFIT ASSESSMENT AND APPROVE THE AMENDED ENGINEER'S REPORT FOR FISCAL YEAR 2002 -03. RESOLUTION NO. 2002-41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CONFIRMING A DIAGRAM AND ASSESSMENT AND PROVIDING FOR ANNUAL ASSESSMENT LEVY AFTER FORMATION OF A DISTRICT - FISCAL YEAR 2002 -03. PAGE FOURTEEN - CITY COUNCIL MINUTES - JULY 309 2002 BUSINESS ITEMS 31. Measure A - Resolution of Support No. 2002 -42. (17:96.1)(X:140.1) City Manager Watenpaugh indicated that this item was based on a request from the Yes on Measure A Committee; and noted the benefits of Measure A for the community, some of which will depend on the RCIP being passed. He explained that Measure A was for maintenance of effort money for the roads within the City. He indicated that if passed it would mean an additional lane on I -15 from Ontario to the San Diego border, and the possibility of an added lane on Railroad Canyon Road. He noted that while there were potential benefits for the community, there was some concern that the TUMF and habitat plan could impact the City if it did not participate. Councilman Buckley had no comments. Councilman Hickman had no comments, but noted that the funding would start in 2009. Mayor Pro Tern Schiffner clarified the timing. Councilman Hickman noted that it would build a lot of roads. Councilwoman Brinley had no comments. Mayor Pro Tem Schiffner noted that there had been some insinuations, that if the City did not buy into the habitat program, it might not get this money; so he would like to see that worked out to the City's satisfaction, before endorsing it. He indicated that he did not know if it was possible or legal to withhold the funds, but he would like to know before supporting this. Mayor Kelley commented that Measure A funds started in 1989 and the dollars had gone to improve transportation. She also commented that there were a lot of issues regarding the County regional plan, and there had been comments that if the City did not support it, there would be no Measure A PAGE FIFTEEN - CITY COUNCIL MINUTES - JULY 309 2002 funds to the City; however she saw no reason to not support Measure A and go forward working out the issues along the way. MOVED BY BRINLEY, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE RESOLUTION NO. 2002-42 IN SUPPORT OF MEASURE A. RESOLUTION NO. 2002-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, SUPPORTING MEASURE A. City Manager Watenpaugh requested confirmation that staff should continue to work through the issues. There was general discussion of the concerns and the timing of appropriate discussions. 32. Resolution No. 2002 -43 - Authorizing the Issuance of Refunding Bonds of CFD 90 -2 (Tuscany Hills) through the Redevelopment Agency. (F:22.3) City Manager Watenpaugh noted that this item would be discussed on the RDA agenda as well. City Attorney Leibold addressed the process and indicated that it did not matter which was done first. Bond Counsel Hunt noted that Council must approve any debt being incurred by the RDA. City Attorney Leibold noted that the Council could approve the item, enabling the RDA to move forward. City Manager Watenpaugh highlighted this item and noted that it was being recommended because the interest rates were favorable to lower the total debt, and shorten the time frame for payoff. Councilman Hickman asked Mr. Hunt about the current interest rate. Bond Counsel Hunt indicated that he was not certain, but as a result of the refunding they would expect a minimum savings of $150,000 per year to start, but would escalate as the area builds out. Councilman Hickman PAGE SIXTEEN - CITY COUNCIL MINUTES - JULY 309 2002 inquired if this refinance would extend the time frame for his payments out. Bond Counsel Hunt indicated that it would reduce the term by about two years, and the payments would be less each year. Councilman Hickman asked if there was a chance of more refinancing in the area. Bond Counsel Hunt indicated that there would not, as there would be no more new money issued in Tuscany Hills. He noted that the maximum projected rate would be below 6 %. Councilman Hickman stressed that he wanted to know what would happen. Bond Counsel Hunt indicated that any new financing would require an independent CFD formation. Councilwoman Brinley inquired if this would impact Castellina and Tuscana as well. Bond Counsel Hunt indicated that it would not. Councilman Buckley clarified that it would be $150,000 per year savings. Bond Counsel Hunt confirmed. Councilman Buckley questioned the savings per house, per year. Bond Counsel Hunt indicated that he did not have the calculations. Administrative Services Director Boone indicated that there were about 900 homes involved. Councilman Buckley commented that it would be about $170 per year to start. Mayor Pro Tern Schiffner had no comments. Mayor Kelley had no comments, but noted that it appeared to be good for everyone. MOVED BY BRINLEY, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 2002-439 AUTHORIZING THE ISSUANCE OF THE REFUNDING BONDS FOR CFD 90 -2. PAGE SEVENTEEN - CITY COUNCIL MINUTES - JULY 30, 2002 RESOLUTION NO. 2002-43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, TAKING CERTAIN ACTIONS IN CONNECTION WITH THE ISSUANCE OF REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 90 -2 (TUSCANY HILLS PUBLIC IMPROVEMENTS) SPECIAL TAX PARITY BONDS, 2002 SERIES A. 33. Parity & Process Audit - L. B. Hayhurst. (F:68.1)(X:116.1) City Manager Watenpaugh highlighted this item, and noted that it had been requested during negotiations and staff had discussed it previously. He explained that Council had suggested sending out bids for the Parity study and a Process Audit. He indicated that he sent out letters to 11 agencies and firms and received responses from four, and a letter from one stating that they were too busy to comply with the timeline for the audit. He detailed the proposals submitted and the associated costs. He recommended L.B. Hayhurst for both processes, which would take about six months to complete. He advised that L. B. Hayhurst would meet with the Council regarding implementation and comparable positions. Chris Hyland, 15191 Wavecrest, questioned the cost, which was originally to be about $20,000 and the reason for the escalated costs. She expressed concern with using a firm (L.B. Hayhurst) from Novato, in the bay area, and questioned the area to be used for calculation of salaries. She suggested that comparisons should be made to towns like Perris, Norco, Banning, etc. She noted that the Union wanted this study and questioned if the Union was willing to pay for half of it. She indicated that she didn't want her tax money used for this study and didn't believe other residents would want that either. She suggested finding salaries and job descriptions on the computer. She commented that this town was not at the same level as other cities and PAGE EIGHTEEN - CITY COUNCIL MINUTES - JULY 309 2002 she did not want her tax money used for the study. She suggested if the Union wanted the study, they should pay for it. Michael O'Neal noted that a Parity Study would be a waste of time and money; as if employees were underpaid there would be an obligation to raise salaries. He suggested that what was needed was a management reorganization, and commented that it was apparent when reviewing the budget. He noted that the Riverwalk design looked great. Councilman Buckley indicated that he was personally willing to have disgruntled employees if they were underpaid. He concurred with the need for a salary study and questioned the Hayhurst proposal. He expressed concern with asking the employee to tell the analyst what they do, and suggested that there would be a temptation to inflate their responsibilities. He commented on the Process Audit portion and suggested that there were a number of problems with the proposal; and expressed concern with the mindset being bought with the consultant, as it mentioned residents after employees. He noted that one other process audit offer specifically said they would meet with focus groups and community groups, but there was no such offer in the Hayhurst proposal. He stressed that the point was not to make staff happy, but rather to make the public happy. He addressed the background of Hayhurst representatives and expressed concern that they were all former public employees, which did not give him a good comfort level. He indicated that before he would approve contract, he would want a face to face meeting, so the Council could evaluate the firms first. He requested that this item be tabled until after a study session at which each potential firm could make presentations to the Council as a whole. Councilman Hickman concurred that a face to face meeting and a study session was warranted. He noted that at his classes last week there was information correlated by populations of 30,000 which would make them easy to compare. He noted that he had suggested that the work be done by the Chamber of Commerce, but he was shot down on that idea. He PAGE NINETEEN - CITY COUNCIL MINUTES - JULY 309 2002 Indicated that he did not want to see any increases until the Parity study was done, and he did not think management deserved one at all. He commented that he believed that the study would show excesses and necessary changes. He reiterated that he wanted to talk to the firms face to face to let them know his feelings. Councilwoman Brinley addressed City Manager Watenpaugh regarding L.B. Hayhurst and the areas to be surveyed. City Manager Watenpaugh indicated that while he could not answer that question directly, he could explain the process. He explained that they would interview the employees and supervisors and make sure the employees were doing what the job description said, and based on their expertise and knowledge they would find comparable jobs and responsibilities; which were not tied directly to location or population. Councilwoman Brinley inquired if Hayhurst had worked for other area cities. City Manager Watenpaugh indicated that he had not surveyed that, however the Murrieta City Manager felt good about their work; and they have done work all over the State. Councilwoman Brinley inquired if Councilman Buckley had someone who wanted to put in a resume for this work. Councilman Buckley indicated that when he thought of a process audit, he was hoping to have it done by a "think- tank" kind of thing, and noted the three he had requested, noting that letters were mailed to their general mailboxes. He indicated he didn't know if they responded, but he did get a call from a person at Reason, indicating that they would only do the work under their terms and did not take government money, so they would not do it. He highlighted the backgrounds of Rand Corporation and the Rose Institute. Councilwoman Brinley questioned the letters sent by staff. City Manager Watenpaugh indicated that the information was obtained from the web page contact information. Councilwoman Brinley noted that a parity study had not been done for a while and it was needed. City Manager Watenpaugh confirmed, noting it was not done since 1985. Councilwoman Brinley noted that the proposals were all in the same price range. PAGE TWENTY - CITY COUNCIL MINUTES - JULY 30, 2002 Mayor Pro Tern Schiffner indicated that he was not a believer in going with the world renown people, as some of them were the most ridiculous. He noted that any company was only as good as the staff they hired for the project. He noted that there were considerable price differences, but he wouldn't know by interviewing them that they could say anything to overcome the differences in costs. He noted that Hayhurst was willing to do both for $35,000, compared to the individual costs submitted by the others. He commented that this group was forthright in saying that by doing both the information could be combined, which made sense to him. He noted that there would be a study session for direction as to the kind of information the Council wished to obtain, but suggested there was no benefit in talking to all of the firms. Councilwoman Brinley noted that timing was important in earlier discussions and suggested it would be helpful for mid -year budget discussions. Mayor Kelley noted that eleven requests were sent out; and at first this was requested by the Union because it had been years since one was done. She concurred with Councilman Buckley that a study session was needed with the consultant to be clear about the goals; and that the public should be included in the process audit, however the direction would come from the Council. She suggested that they could formulate something acceptable to the Council and the citizens. She noted suggestions of across the board cuts, and indicated that was not appropriate without a parity study to compare the job descriptions with other comparable organizations and make educated, logical decisions; as it was not fair to the employees or the public. She indicated that the City had an excellent staff and she wanted to preserve the relationship with them; so she would want a straight forward process audit and parity study. She looked forward to meeting the consultant and discussing the project. MOVED BY BUCKLEY, SECONDED BY HICKMAN TO TABLE THIS ITEM PENDING A STUDY SESSION /SPECIAL MEETING WILL ALL PAGE TWENTY -ONE - CITY COUNCIL MINUTES - JULY 309 2002 SUBMITTING FIRMS INVITED TO GIVE A PRESENTATION TO THE COUNCIL. Mayor Kelley indicated that she would support such a proposal, except there was only one firm that would do both studies. MOTION FAILED TO CARRY BY A VOTE OF 2 TO 3 WITH BRINLEY, KELLEY AND SCHIFFNER CASTING THE DISSENTING VOTES. MOVED BY BRINLEY, SECONDED BY KELLEY TO SET A STUDY SESSION WITH L.B. HAYHURST TO GO OVER THEIR WORK AND TAKE INPUT FROM THE PUBLIC. Mayor Pro Tern Schiffner inquired if this action would engage them in a contract. Councilwoman Brinley clarified that the study session would precede signing a contract, give them input and have them come back for approval. Councilman Hickman requested clarification that this action would invite the firm down, with no vote at this time, and a chance to discuss it with them first. Councilwoman Brinley clarified that there would be a study session with the firm, the Council would give input on what they wanted to see, it would be opened up to the public for input; and the Council would give a directive on where they want to go with this process. Councilman Hickman suggested inviting all four firms to participate. Councilman Buckley questioned having the presentation and going back to figure out the details. City Attorney Leibold clarified that the proposed contract provides for a Professional Services Agreement, and under the proposal Task No. 2 is a study session to set parameters. Councilwoman Brinley indicated that she wanted to discuss the proposal, to be sure they can do the work. City Attorney Leibold clarified that the direction was for staff to set a study session and invite the firm for further discussion and inquiry before PAGE TWENTY -TWO - CITY COUNCIL MINUTES - JULY 30, 2002 approval of the agreement. City Manager Watenpaugh requested clarification as to whether the meeting would be a study session or a special meeting; and inquired if there was a suggestion of a date and time for the meeting. Councilwoman Brinley suggested that it be scheduled as soon as possible. Mayor Pro Tern Schiffner indicated that he would like it to be a special meeting to allow for action. Councilwoman Brinley concurred that it should be expedited at a Special City Council meeting to discuss the proposal with Hayhurst, go over the contract, and take Council and public input. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE. ITEMS PULLED FROM THE CONSENT CALENDAR 6. Notice of Completion for McVicker Skate Park - Pyramid Building & Construction. (F: 114.14) Chris Hyland, 15919 Wavecrest, noted that she attended the study session earlier today and the skatepark was discussed. She indicated that she was disappointed that there was a park, with only a few kids using it. She questioned how it could make money. She indicated that she wished the money had been spent to build a community swimming pool, as it would be better than a skatepark. MOVED BY BUCKLEY, SECONDED BY HICKMAN AND CARRIED BY UNANIMOUS VOTE TO ACCEPT THE NOTICE OF COMPLETION FOR PYRAMID BUILDING AND CONSTRUCTION AND AUTHORIZE RECORDATION OF THE NOTICE. THE REGULAR CITY COUNCIL MEETING WAS RECESSED AT 8:20 P.M. PAGE TWENTY -THREE - CITY COUNCIL MINUTES - JULY 30, 2002 THE CITY COUNCIL MEETING RECONVENED AT 8:29 P.M. PUBLIC COMMENTS - NON - AGENDIZED ITEMS Chris Hyland, 15191 Wavecrest Drive, questioned City Manager Watenpaugh on his comments regarding the LLMD, noting that she went around the neighborhood checking with neighbors, and no one ever received a check. She indicated that she would like a copy of the cancelled check because she didn't get one. She indicated that she would be requesting the copy in writing. City Manager Watenpaugh indicated that he would be happy to provide the information. George Alongi, 649 Mill Street, indicated that he had intended to make other comments, but decided to address the parity study. He suggested that the study was going down the wrong path. He indicated that Council sets the salaries and if staff is doing their job, they are worth their salary. He stressed that the Council was elected to represent the residents, and if staff was worth their pay, they should be paid, but it would be a big mistake to do the study. He suggested that the money from this study could be put to better use for things such as Skateboard signs in areas outside the downtown area. He also suggested making an arrangement with the School District to bus the children to the Skateboard Park. He commented that the Chamber of Commerce was important, but the $50,000 could go to better use, such as the Kids on Track Program. Kim Quon, Lakecrest Drive, addressed recent people in the news including Michael Newdow (publicized Atheist) and Alejandro Avila (arrested resident in the Samantha Runnion case); and commented that these events were proof that society needs God. He expressed concern with the implications of Atheism on the society and the history of our Country. He noted that the founding fathers were mostly Christian, and founded on the principles of Christian men. He encouraged the Community to embrace God, national history and Christianity, and noted that the Churches were praying for the City and Council every weekend. PAGE TWENTY -FOUR - CITY COUNCIL MINUTES - JULY 30, 2002 CITY MANAGER COMMENTS City Manager Watenpaugh commented on the following: 1) Noted recent concerns regarding the potential closure of the motorcycle park; and advised that the matter would be coming to the Planning Commission, and they have complied with almost everything. 2) Thanked the Outlet Center for their presentation and the provision of additional stores; but noted that a restaurant is still needed. He indicated that he was pleased with the renewed interest in the area. CITY ATTORNEY COMMENTS No Comments. COMMITTEE REPORTS No Reports. CITY COUNCIL COMMENTS Councilman Hickman commented on the following: 1) Noted that he had been working on writing statements on property assessments for residents over age 62 with income of less than $32,111. He encouraged area seniors to make appointments for this service. 2) Indicated that he went to the Monterey League of Cities Conference, and provided a report on the event. He highlighted sessions on keeping cities alive, connecting with youth and schools, energizing PAGE TWENTY -FIVE - CITY COUNCIL MINUTES - JULY 30, 2002 downtowns, transportation, generational differences and improving the marriage between Council and City Manager. He indicated that the most important sessions of all were the RDA sessions; and expressed hopes that Lake Elsinore's RDA could start doing positive things such as housing and set asides. Councilman Buckley commented on the following: 1) Addressed the motorcyle track and indicated that he supports it; and encouraged people concerned with its future to attend the Planning Commission Meeting. 2) Thanked Mr. Quon for his comments. 3) Praised the people who participated in the fundraiser car wash for the Runnion family. He noted the horrible event had sadly brought Lake Elsinore national notariety; but commended those people who tipped the police, volunteered their time and wept for the family, showed the true heart of the City regarding this situation. 4) Noted that he had received two gifts at City Hall with nice notes including a shirt and the tie he was wearing. He indicated that he would be keeping the tie, but donating the shirt to HOPE, as it was the wrong size. He expressed appreciation for the gifts, but noted the gift limits for Councilmembers and requested no additional gifts be sent. He encouraged sending ideas or comments, or stopping by City Hall or sending e -mail; or giving gifts to local charities. Mayor Pro Tem. Schiffner commented on the following: 1) Questioned the "no skating" signs and clarified that there were prohibitions by ordinance. City Manager Watenpaugh confirmed. Mayor Pro Tem Schiffner noted that they could not be prevented in PAGE TWENTY -SIX - CITY COUNCIL MINUTES - JULY 309 2002 residential areas. City Manager Watenpaugh commented that staff was currently addressing an ordinance to assist businesses, but enforcement could not be done on private property. Mayor Pro Tern Schiffner stressed that signs were posted in areas that could be enforced. City Manager Watenpaugh clarified that it was currently only in the downtown overlay area. 2) Addressed the parity study, noting it would cost some money, however there was a movement in the City suggesting that staff was grossly overpaid and that was the reason for financial difficulties; sc to solve the problem a legitimate study was warranted. He noted suggestions of cutting salaries and taking away benefits, but the majority of the Council did not see those actions as appropriate. 3) Concurred with Mr. Quon's comments. Councilwoman Brinley commented on the following: 1) Thanked the volunteers for their efforts on behalf of the Runnion family, and extended condolences the family. She stressed the necessity of being protective of children and teaching them to be aware. 2) Thanked Mr. Quon for his comments and concurred that the United States was a country founded "under God ". 3) Addressed the RDA seminar last week and indicated that it was very well presented. She noted her appreciation of the Mayor from Huntington Beach, who discussed how they used the RDA to redo piers, Mainstreet and two large hotels. She further noted the variety of options for the RDA and grants for planning. She commented that the Cal -Poly Study was antiquated and it was time to start looking at new revisions to revitalize the area. She indicated that it would be PAGE TWENTY -SEVEN - CITY COUNCIL MINUTES - JULY 309 2002 fund to work with the RDA, when it had some money. She noted that the seminar offered the chance to hear other cities discuss issues on different scales and how they were resolving those issues. Mayor Kelley commented on the following: 1) Announced that the City received recognition for meeting the 50% diversion of refuse goals; and City Manager Watenpaugh displayed the award made of 100% recycled materials. 2) Announced that City Manager Watenpaugh had been honored as a "Distinguished Business Leader" and congratulated him on this recognition. 3) Noted that this meeting was not to have been televised, but since it was, she explained a recent event. She noted that after the 4' of July, there were fireworks late at night over the Lake and most callers were quite nice after they found out, what it was about. She explained that they were filming an advertisement for AT & T Broadband at the Lake and the Diamond Stadium. She further explained that they bought all vacant seats at the Diamond, paid and fed extras, rented the entire local hotel; for a grand total benefit to the City of over $1 million. She stressed that the benefits far outweighed the inconvenience. 4) Reminded the Community of the Music with a View Concert Series, and detailed the concerts starting at 7:30 p.m. on August 17'h. 5) Addressed the Riverside Philharmonic and indicated that they had reorganized and they would be present for their concert. 6) Advised that the Skatepark was not yet on the RTA route, but efforts were continuing to arrange it. PAGE TWENTY -EIGHT - CITY COUNCIL MINUTES - JULY 30, 2002 7) Expressed appreciation to Mr. Quon for his comments and noted the Proclamation of Support from local churches, which hangs in the Cultural Center; and noted the National Day of Prayer events in the City. 8) Indicated that the Monterey League event was the best one she had ever attended and very informative; and looked forward to the upcoming Statewide event. 9) Congratulated the Police Department on finding the killer of Samatha Runnion. She commented that although it was a disastrous event, the best of the community came out in the worst situation. She thanked the volunteers for their efforts, and noted the goodness of the Community. She commented that the perpetrator could have lived anywhere, but tragically he lived in Lake Elsinore. ADJOURNMENT MOVED BY BRINLEY, SECONDED BY BUCKLEY AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR CITY COUNCIL MEETING AT 9:04 P.M. GE KELLEY, OR CI OF LAKE ELSINORE AT EST: LICKASAD, C C, CITY CLERK/ HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE