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HomeMy WebLinkAbout12-11-2001 Joint City Council/RDA Study SessionMINUTES JOINT CITY COUNCIL/REDEVELOPMENT AGENCY STUDY SESSION CITY OF LAKE ELSINORE 130 SOUTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, DECEMBER 11, 2001 ~~~~~*~~**~~******~~~*~****~~~~*******~*~~~~*~***~*~***~~*~** CALL TO ORDER Mayor Kelley called the Joint Study Session to order at 4:04 p.m. ROLL CALL PRESENT: COUNCI~M~MB~RS: 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, Information/Communications Manager Dennis and Deputy City Clerk Paredes. DISCUSSION AQenda Review (F:44.1~ Mayor Pro Tem Schiffner addressed Item No. lb, regarding the Minutes of November 17, 2001 and indicated that there were two typos; one on Page 8 and one on Page 11. Mayor Kelley addressed Item No. 3, regarding the presentation of Fiscal Year 2000-01 Annual Audit and Financial Report and asked for PAGE TWO - JOINT STUDY SESSION - DECEMBER 11, 2001 questions or comments. Councilman Hickman stated that he had numerous questions for clarification, however he would address his questions to Administrative Services Director Boone. Councilman Buckley asked if there were a findings letter. Administrative Services Director Boon stated that it was on the way. Councilman Hickman questioned Section 29) Segment Information for Enterprise Funds, regarding the Operating Income Loss of $565,527. He asked if the amount was for the Lake alone or if it included the Stadium. Administrative Services Director Boone stated that the loss addressed the Lake only. Councilman Hickman asked where the findings on the Stadium were located. Administrative Services Director Boone indicated that the amount addressing the Stadium could be found on Page 73 of 139. Councilman Buckley addressed Section 26) Litigation found on Page 65 of 139. Councilman Hickman asked how much money could be involved. Administrative Services Director Boone indicated that he did not know. Councilman Hickman asked how many lawsuits the City had. City Attorney Leibold stated that the City was a defendant in a lawsuit brought by California Bank and Trust; a lawsuit brought by the Tran family, which is covered by insurance; a lawsuit with the Lake Elsinore Christian Center, which is covered by insurance; a lawsuit with Liberty Founders, which was set for discussion tonight; and a variety of smaller lawsuits that involve subs to a General Contractor. Mayor Pro Tem Schiffner stated that the City Attorney's Office had distributed a list of all of the litigations. City Attorney Leibold indicated that she would update the list and distribute to Council as an Attorney/Client privileged communication, since the list would summarize the nature of the lawsuits and perhaps some merits. Councilman Buckley stated that it was not the amount of lawsuits, but rather the potential amount that could be claimed against the City. He asked the City Attorney to make a rough estimate of the amount that the City was being sued for. City Attorney Leibold stated that the California Bank and Trust was the most substantial lawsuit and it was far an amount of $3,000,000; Liberty had an unspecified amount of damages in their suit; the plea PAGE THREE - JOINT STUDY SESSION - DECEMBER 11, 2001 for damages on the Tran suit were in the millions, however it was a Joint Powers Insurance covered payment if liability were found; and the Elsinore Christian Center contained no dollar figure. Councilwoman Brinley asked if the City had heard from the Elsinore Christian Center lately. City Attorney Leibold stated that the judge had requested additional briefing, solely on the issue raised by the United States Constitutionality of the act itself, however the court had not rendered an opinion. Councilman Buckley questioned the statement found in Section 26, and indicated that if the suits were found against the City he felt that it would significantly impact the budget. Administrative Services Director Boone indicated that it would be sometime in the future, however the information presented was a"snapshot in time" for fiscal year 2000-01. City Attomey Leibold stated that the amounts discussed should be considered in a future analysis of the City's fiscal standing. Mayor Kelley addressed Item No. 4, regarding the Resolution of Support for Proposition 40 and asked if there was any questions. Councilwoman Brinley asked the staff to give an overview of the item. City Manager Watenpaugh stated that there was a new bond issue that would be coming forward ne~ year and there had been a request for letters of support. He indicated that staff was asking Council's authorization to show support and move forward with the bond issue. Mayor Kelley addressed Item No. 5, regarding the Franlclin Street Notice of Completion. Councilman Hickman asked if when the City went to bid for different projects, did the City try to select a local supplier. City Attorney Leibold stated that the City does keep a list of interest bidders, however the law prohibits the City from giving preference. She explained that if the City had an item that was subject to the competitive bidding requirements, then those requirements dictate that the City accept the lowest responsible bid. Mayor Kelley addressed Item No. 6, regarding 28`~' Year CDBG Senior Center Applications. Community Services Director Sapp PAGE FOUR - JOINT STUDY SESSION - DECEMBER 11, 2001 explained that for the last six years the City had submitted applications to the County of Riverside, requesting a portion of their money to offset the cost of operations at the Senior Center, since an increased number of seniors from the County use the Senior Center. He noted that the deadline was December 14, 2001, and with approval staff would be able to submit the application to the County for consideration. City Manager Watenpaugh explained that Community Services Director Sapp asked for additional funds based on the percentage of County residents using the facility. He noted that the purpose was to recover funds used. Mayor Kelley clarified that 38% of the seniars using the facility were County residents. Community Services Director Sapp agreed. Councilman Hickman asked if staff had looked into privatizing the facility. City Manager Watenpaugh noted that when the Senior Center was originally opened it was funded by a private nonprofit group of ministers and businesses in town. He explained that they ran into financial hard times and came to the City. He further explained that when the City took over the Senior Center the County and the City funded 50% each at that time. Councilman Hickman asked if the City could privatize the operation again. He stated that he agreed with the grant, however he felt that the City should look at privatizing. City Manager Watenpaugh stated that if the Council wished to give staff direction to look at privatization again, it would not be a problem. Mayor Kelley addressed Item No. 31, Lake Elsinore Recreation Area - Campground Concession Agreement. City Manager Watenpaugh noted that Community Services Director Sapp had been working closely with the City Attorney's Office to development the Agreement. He indicated that the concessionaire was present and would be available for questions. Councilman Hickman stated that he liked the three-year agreement with a five-year option. He asked if the 7% was for everything in the park. City Manager Watenpaugh stated that it was 7% of gross revenues. He explained that the Lake use passes would come to the City, however the boat launching fees would be kept by the concessionaire and used to offset their costs. ~ PAGE FIVE - JOINT STUDY SESSION - DECEMBER 11, 2001 Mayor Kelley asked the concessionaire what their goals were. Chet Roberts, President of Pyramid Enterprises presented an overview of their goals and explained that they would need to do an in-depth analysis to best evaluate what was most needed, however their immediate goal was to upgrade the electrical and adjust the spaces for RVs to accommodate the new sizes. Councilwoman Brinley asked how many employees they would staff. Mr. Roberts stated that they would determine staff after they had made their evaluation. City Manager Watenpaugh stated that they would staff seasonal employees with a core of permanent employees, just as the City had done. Councilwoman Brinley asked if they would consider the needs of the Boy Scouts and Girl Scouts that wished to camp. Mr. Roberts stated that they would accommodate groups and that they intend to be active in the community. Councilwoman Brinley asked if they were going to market to snowbirds. Mr. Roberts stated that they would be considering all aspects of marketing. Mayor Kelley asked if they were going to do boat rentals and rehabilitate the house on site. Mr. Roberts stated that there was a great deal of evaluation that was necessary to ascertain if it would be feasible to rehabilitate the house since it must meet the ADA standards. Councilman Hickman asked if they would consider a program that provided special rates to City residents since they haee supported the campground through their tax dollars. Mr. Roberts stated that his company had to be careful not to discriminate between residents and non-residents. He stated that there would be "in season" and "off-season" rates. Mr. Roberts stated that they intended to provide a facility the locals could be proud of. There was general discussion regarding an annual pass. Councilman Hickman confirmed that they would be promoting snowbirds to support the campground during the winter. Mr. Roberts agreed. Mayar Pro Tem Schiffner asked if the construction of sewer connections for the campsites ha~e a high priority. Mr. Roberts explained that he was aware that there were problems with the sewer and they would be assisting the City in obtaining grants to provide money to rectify the problem. PAGE SIX - JOINT STUDY SESSION - DECEMBER 11, 2001 Mayor Pro Tem Schiffner stated that the City would provide help as it could. Councilman Buckley asked what would happen to the City employees. City Manager Watenpaugh stated that there was one permanent employee and he was being considered for a position in Lake Operations. He explained that the majority of the employees at the Campground were seasonal part-time employees. He indicated that they use some of the seasonal part-time employees for special events. Councilman Buckley asked for clarification on the improvements that the concessionaire intended to do at the Campground. Mr. Roberts stated that they would be doing the cosmetic items first to improve the appearance of the Campground, improve the picnic area, and upgrade the electrical and irrigation hook-ups. Councilman Buckley asked if the concessionaire would be doing any major rehabilitation. Mr. Roberts stated that major rehabilitation would be hard to amortize in the first three years. He indicated that they would be assisting the City in trying to acquire grant money from Boating and Waterways. Councilwoman Brinley asked if they were opening a food concession. Mr. Roberts indicated that if there was a demand for a food concession they would provide one. Mayor Schiffner clarified that the Concession Agreement did not include major improvements and was basically a take-over and operate. City Manager Watenpaugh agreed and explained that it was hoped that the agreement would grow into a long-term relationship. Councilman Buckley asked about the insurance. City Attorney Leibold explained that the Hold Harmless and Indemnification Insurance had all been discussed with the Joint Powers Insurance Authority. She noted that the insurance carrier had reviewed and accepted all of the provisions as appropriate. She further explained that in 8.01 it calls out that if one party was solely at fault, the other party was not required to indemnify them. She indicated that the licensee had met the City more than half way. City Manager Watenpaugh stated that the concessionaire was aware of the history of the Lake and the aware of the boat launch hazard. City Attorney Leibold explained that there was a provision in the agreement that required the concessionaire to conduct a water safety report within a PAGE SEVEN - JOINT STUDY SESSION - DECEMBER 11, 2001 short time period after the commencement of the agreement. Councilman Buckley clarified who would address the liability if someone drowns. City Attorney Leibold stated that the licensee would. City Manager Watenpaugh noted the difference in the areas of liabilities. Councilman Buckley asked for a definition of the area of the boat launch. City Manager Watenpaugh noted the area of the boat launch. Councilman Hickman clarified that the concessionaire could not use the Campground for a loan. City Manager Watenpaugh agreed. Mayor Kelley addressed Item No. 32, Grant Consulting Agreement - Molendyk and Associates. Councilman Hickman stated that since the election people have demanded some changes and asked if there was another lobbyist that the City could use as a consultant. City Manager Watenpaugh stated that are others, however staff evaluated the Dangermond Group, who had started the report. He indicated that after talking to several other cities, and meeting with Mr. Molendyk, that other considerations were made. He noted that Mr. Molendyk had formed an association with Jack Harrison and Associates and staff felt that the City could ha~e competent dealings with the firm and unless Council gives other direction he stated he was in favor of continuing the contract to its expiration date of January 31, 2002. Mayor Kelley asked what part of the job still remained. City Manager Watenpaugh noted that he would be meeting with Mr. Molendyk and Mr. Harrison next week to take a look at the proposed final strategy and process for filing grants. He explained that the grants would be evaluated and a consideration of the grants that the City would pursue. Councilman Hickman stated that the contract would expire and then the City could use new people. City Manager Watenpaugh explained that the intent was to evaluate grants and provide a strategy that would allow the City to compete for grants that would be move effective for the dollars. He further explained that the problem was that the City did not have the money to match dollars on a number of the grants and it was the intent to evaluate the best grants available. Mayor Kelley PAGE EIGHT - JOINT STUDY SESSION - DECEMBER 11, 2001 explained that it was the goal of the City to acquire and develop beachfront property for public use. Councilwoman Brinley stated that the intent was to include improvement of existing parks as well. Councilman Hickman asked if the City intended to buy new parks. City Manager Watenpaugh stated that at this time that was not the intent, however the Master Plan called for more parks. He noted that it was the intent of Council to acquire more beachfront propert~for habitat, wetlands and rights-of-way along Lakeshore Dive. ' Councilwoman Brinley asked the City Manager to present the background of I-Iarris and Associates. City Manager Watenpaugh gave an overview of the background of Harris and Associates and his association with Mr. Molendyk. Mayor Pro Tem Schiffner stated that he has heard no reason why there was any question regarding the contract with Molendyk and Associates; therefore he would have no problem hiring the same people again for another contract. He indicated that he had heard nothing to indicate why the contract was not acceptable. Councilman Hickman agreed and asked if the matter was being considered to allow completion of the contract, terminate the contract or to prevent accepting any more contracts from Molendyk and Associates. He invited Councilman Buckley to state his concerns. Councilman Buckley stated that he had a couple of concerns. He clarified that the choice of Molendyk and Associates was City Manager Watenpaugh's and not the Council. City Manager Watenpaugh noted that he made the recommendation and approved the contract per Council's authorization. Councilman Buckley stated that there are other Proposition 12 grant people and asked what type of investigation he made to hire the position. City Manager Watenpaugh stated that he did not solicit bids; Mr. Molendyk had made him aware that he and Mr. Harris were in business; and when the contract with the Dangermond group went as long as it did before the City got results, then he searched for someone to get the job done since Dangermond did not submit the grant information until three weeks prior to application deadline. He stated that he needed someone that could get the job done, He explained that he asked for PAGE 1vINE - JOINT STUDY SESSION - DECEMBER 11, 2001 Council authorization prior to firming up the agreement. Councilman Hickman asked how many dollars Molendyk and Associates had generated to date. City Manager Watenpaugh indicated that the City had submitted one grant and the second grant would be submitted in February to Department of Wildlife Conservation Agency for acquisition of wetlands property. He explained that Grant Applications are submitted and reviewed. He noted that there would be a series of grants that would follow. Councilman Hickman asked if the people "in house" were capable of doing the job. City Manager Watenpaugh stated that there was not enough staff to meet the timing and background. Mayor Kelley stated that it was a matter of getting it to the right person at the right time. She stressed the need for the right contacts. She asked Councilman Buckley if the concern was over the contract or the person the contract was with. Councilman Buckley stated that Mr. Harrison was the person that the City wanted, then why was the City going through the extra step. City Manager Watenpaugh explained that Mr. Molendyk associated with Mr. Harrison and had asked if it would be better to list the contract with Harrison and Associates. City Manager Watenpaugh noted that he asked Mr. Molendyk why he should do that, since Mr. Harrison was not out marketing and promoting. He noted that Mr. Molendyk and not Mr. Harrison was promoting to get grant work. Councilman Buckley clarified if Mr. Harrison contracted with Mr. Molendyk since he had his own firm. City Manager Watenpaugh stated that Mr. Harrison did ha~e his own firm, however he was also an Associate with Mr. Molendyk. He noted that the City bought a package through Molendyk and Associates, which included Mr. Harrison as a contact person. Councilman Hickman stated that the public couldn't perceive working with Mr. Molendyk. He stated that he ran the City before and the pubic thinks it's the "old boys show" and they want out of it. He stated that was why he and Mr. Buckley were elected was to change the City. Mayor Pro Tem Schiffner stated that he did not PAGE TEN - JOINT STUDY SESSION - DECEMBER 11, 2001 A believe that was true. He noted that there were people that believed that, however that was not the public. Councilman Hickman stated that Mr. Molendyk was perceived as one of the people that put the City in debt, along with the lawsuits. Mayor Kelley stated that if that was the crux of the dissatisfaction, that it was Molendyk the person and not the contract, then she thought it would behoove Council to remember that when Mr. Molendyk was with the City he operated under the direction of Council and they should be held responsible. She clarified that the whole subject was based on perception. Councilman Hickman agreed. Councilman Buckley commented that perception would be a very large part of it. City Attorney Leibold stated that there were two questions posed and not completely answered. She stated there was an implication that Mr. Harrison had all of the qualifications and Mr. Molendyk ~simply had an "in", and she felt that there might be some:benefit to examining whether Mr. Molendyk has independent qualifications, credentials and eaperience in the grant area. She stated that Council should put in perspective that the contract was for a limited term and a limited amount of money and did not allow any discretionary decision-making or directive roles. Councilman Hickman stated that the City could not do anything right now, however he was looking at the next contract. City Attorney Leibold noted that Councilman Hickman had posed the question in the beginning of the discussion regarding whether the Council was here to evaluate performance, terminate the agreement or make sure that the City did not enter into a contract with Mr. Molendyk again. She advised against the latter action. She suggested that blackballing would be illegal. Councilman Hickman stated that he would not want to do that, however he would like to see a list of ~ consultants other than Dangermond or Molendyk. City Attorney Leibold agreed and noted that Council had a lot of discretion regarding service providers. Mayor Kelley noted that Council was not blackballing anyone, however the decision was made by a different Council and was based on the criteria that City Manager Watenpaugh PAGE ELEVEN - JOINT STUDY SESSION - DECEMBER 11, 2001 felt would best serve the City. Councilwoman Brinley noted that Mr. Molendyk has a vast background in recreation. She further noted that when he started with the City he had been introduced through Park and Recreation. City Manager Watenpaugh noted that he selected the best team for what they were being asked to do. He recommended that staff move forward and finalize the contract to obtain the results that Council was looking for and evaluate the situation at the conclusion of the existing contract to ascertain if the City needed a consultant. Mayor Kelley stated that she felt it was important to consider that when a decision cames before Council, they must look at what was going to benefit the City and move forward. She noted that the contract under discussion was short term, City Manager Watenpaugh was directed by Council to look at grants and he followed Council direction. Councilman Hickman clarified that the main concern of the Council was to acquire beachfront land. Mayor Kelley agreed. Councilman Hickman noted that Ms. Oma Slavick was the owner of the old Country Club on Lakeshore Drive that burned. He noted that there was an abatement problem and a current danger existing in the City because it had not been abated. He explained that he had been told that Ms. Slavick did not have the money to perform the abatement. He suggested that it be proposed to Ms. Slavick to exchange the abatement of the property of the old Country Club in exchange for the Lake Front property she owns near four corners. City Manager Watenpaugh stated that staff would look into the possibility. Councilwoman Brinley commented that it would be quite costly to abate the property, so Ms. Slavick might be willing to proceed. Councilman Hickman stated that he was most concerned with the liability. REDEVELOPMEN'~' AGENCY No comments. PA"GE TWELVE - JOINT STUDY SESSION - DECEMBER 11, 2001 ~ ADJOURNMENT THE JOINT STUDY SESSION WAS ADJOURNED AT 5:05 P.M. : ELLEY, MA LAKE EJ~ / ~ AMELA B~INLEY/, CHAIR Respectfully submitted, ~2~~ ~ A ia L. Paredes, Deputy City Clerk AT EST: ~ VICKI KASAD, MC, CITY CLERK/ HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE