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HomeMy WebLinkAbout08-24-1999 City Council Minutes MINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, AUGUST 24, 1999 ****************************************************************** CALL TO ORDER The Regular City Council Meeting was called to order by Mayor Kelley at 7 :06 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by City Attorney Leibold. INVOCATION The Invocation was provided by Pastor Phil Salvato, representing First Christian Church. ROLL CALL - PRESENT: COUNCILMEMBERS: BRINLEY, METZE, P APE, SCHIFFNER, KELLEY ABSENT: COUNCILMEMBERS: NONE Also present were: City Manager Watenpaugh, City Attorney Leibold, Assistant City Manager Best, Administrative Services Director Boone, Community Development Director Brady, Community Services Director Sapp, Fire Chief Seabert, Police Chief Walsh, City Engineer O'Donnell and City Clerk Kasad. PRESENTATIONS None. PUBLIC COMMENTS - AGENDIZED ITEMS Requests were received to address the following items and deferred to those discussions: Item Nos. 4, 5, 21, and 31. CONSENT CALENDAR ITEMS The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 4 and 5. PAGE TWO - CITY COUNCIL MINUTES - AUGUST 24, 1999 MOVED BY BRINLEY, SECONDED BY METZE AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: - a. Regular City Council Meeting - August 10, 1999. (F:44A) The following Minutes were received and ordered filed: b. Planning Commission Meeting - August 4, 1999. (F:60.3) c. Design Review Committee Meeting - August 4, 1999. (F:60A) 2. The following Warrant Lists were ratified: a. July 29,1999. (F:12.3) b. August 16, 1999. 3. Rejected and referred to Claims Administrator the Claims Against the City submitted by Nick Bonkoski (CL #99-14) and Lisa Marie Hines (CL #99- 15). (F:52.2) 6. Approved Public Hearing Date of September 14, 1999, for the following: a. Local Law Enforcement Grant Funding. (F:84.8) b. Tentative Parcel Map No. 29325 & Design Review of Industrial Project 99-4 - Dekkon Development. (F: 110.2) A request for approval of a proposal to subdivide 10 acres into 11 commercial lots. The General Plan designation for the project side is Business Park, and the zoning is M-l Limited Manufacturing District; also a request to approve a 10 acre Industrial Park that will include 10 industrial buildings ranging in size from 9,500 square feet to 33,800 square feet. PUBLIC HEARINGS 21. Proposed Refunding of Multifamily Housing Revenue Bonds in an amount not to exceed $5.0 Million by the Lake Elsinore Redevelopment Agency for the Lakeside Apartments - Resolution No. 99-48. (F: 126.5) City Manager Watenpaugh introduced this item; and explained that it was authorization for the Redevelopment Agency to consider reissuing bonds on the Lakeside Apartments. City Attorney Leibold explained the TEFRA hearing requirements and the process for refunding ofRDA bonds in connection with Lakeside Apartments. She clarified that this consideration is not for approval of the PAGE THREE - CITY COUNCIL MINUTES - AUGUST 24, 1999 refunding, but the City Council Action allowing the RDA to consider the bond refunding. She further clarified that neither action obligates the RDA or RDA funds, and the sole source of security for the action is the project itself. Mayor Kelley opened the public hearing at 7 :04 p.m. asking those persons interested in the item to speak. The following person spoke: Dick Knapp, City Treasurer, noted that he did his homework on this subject and detailed the history of the bonding; and made assumptions with regard to the current amount. He further noted that in real estate terms this was a refinancing and questioned why it was being called a refunding. He expressed concern that on July 12th of this year there was a trust deed recorded against this and other properties and questioned why this transaction was being considered. He indicated that the property was purchased a year ago and was already in arrears on their taxes. He commented that he was totally against this action because of the shenanigans. George Alongi, 649 Mill Street, indicated that he does not understand what the refunding is all about and suggested that it was unfair for the people to not understand what is being discussed. He requested an explanation of the proposed action. Max Nardoni, Kline Financial Corporation, representing the applicant, indicated that his client purchased the property last year. He noted that at that time the property was about 70% occupied and only 30% of the residents were paying their rent. He further noted that the property had been "cannibalized" by the previous owner and a substantial number of units could not have been rented. He clarified that refunding of bonds is very similar to home refinancing. He commented that typically they would have refinanced the bonds at the time the property was purchased, however since it was in poor condition they had to go to a more entrepreneurial lender and they were given enough funds to start the renovation. He advised that they now have 92% of the units renovated and 9 more to complete. He further advised that they have done a great deal of exterior renovation, with about $250,000 in additional work to be done. He noted that the landscaping still has to be upgraded, the signage needs upgrading, the pool needs repairs and the last nine units need to be rehabilitated. He explained that the property was now in a position to go back to the traditional bond lenders. He stressed that his client has done an excellent job of upgrading the property. He noted that the original loan was $3.6 million and a substantial amount of equity has been invested in the meantime, with the new value being between $5.5 and $6.0 million. He clarified that the $61 million deed of trust was recorded in June of this year and was part of a major "take out" loan on this and other properties. He explained that when the bonds are refunded, this property will no longer be cross-collateralized so it will leave the original $5 million.. PAGE FOUR - CITY COUNCIL MINUTES - AUGUST 24, 1999 Mayor Pro Tern Metze inquired if this was in fact low and moderate income housing. Mr. Nardoni confirmed. Councilman Pape questioned the total bonds and the final cost of the property. Mr. Nardoni indicated that the final costs would be about $6.6 million. - Councilwoman Brinley noted as the Chairwoman of the Redevelopment Agency that the RDA is not buying or selling bonds, but serving as a conduit or pass-thru for the bonds. Mr. Nardoni confirmed. Councilwoman Brinley stressed her understanding that the Redevelopment Agency is not issuing or selling bonds, but serving as a conduit. City Attorney Leibold noted that the consideration of the bond funding will occur some time in the next 30 days at an RDA public hearing. Councilwoman Brinley clarified that they did intend to inform the community and put their minds at ease with regard to the bonds. Mayor Pro Tern Metze further clarified that this consideration was an advertised public hearing. Hearing no additional requests to speak the public hearing was closed at 7:21 p.m. Councilwoman Brinley questioned the remaining work to be done. Mr. Nardoni reiterated that they have things such as signage, landscaping, pool repairs and nine vacant units to be renovated. Councilwoman Brinley noted other projects on which work was never completed, and requested the addition of a condition to address the signage, landscaping, pool and renovation. Mr. Nardoni noted that the lender requires that funds be deposited and drawn upon as the repairs are made. Councilwoman Brinley noted the Crime Free Multi-Family Housing Task Force and requested the participation of this project in the program. Mr. Nardoni indicated that his client would be happy to participate. - Councilman Pape noted that he drove by this property today and the outside is cleaned up and looking much nicer. He looked forward to seeing the project completed. Mayor Pro Tern Metze concurred with Councilwoman Brinley that when this item returns to the RDA the remaining concerns will be addressed. He Noted staffs efforts to work with the owner and address any outstanding tax issues. He stressed that everyone would need to be comfortable with the final agreement. - Councilman Schiffner noted that when this project is complete the City will get credit for approximately 44 units of low income housing, which is a requirement for the RDA. Mayor Kelley added that they have done about $450,000 of rehabilitation work and it has progressed nicely. She clarified that this is just the TEFRA PAGE FIVE - CITY COUNCIL MINUTES - AUGUST 24, 1999 Hearing and a precursor to the RDA discussion of the bonds. She reiterated that this was no consideration of bonds this evening. MOVED BY BRINLEY, SECONDED BY METZE AND CARRIED BY UNANIMOUS VOTE TO APPROVE RESOLUTION NO. 99-48. RESOLUTION NO. 99-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE APPROVING THE REFUNDING OF NOT TO EXCEED $5,000,000 AGGREGATE PRINCIPAL AMOUNT OF MUL TIFAMIL Y HOUSING REVENUE BONDS. BUSINESS ITEMS 31. Second Reading of Ordinance No. 1052 - Adopting the Liberty Specific Plan. (F:150.2) '7 - Chris Hyland, 15191 Wavecrest, noted that when she returned from vacation she read the papers and noted comments by Mayor Kelley. She specifically noted the discussion that the Council could not stop the project if it wanted to; and compared it to the TeePee ranch project and others which have been approved and cancelled. She noted that there are faults under the project area, noted the recent earthquake in Turkey and questioned the Council's willingness to risk lives. She inquired as to who the principles of the Town Group are and suggested that the citizens should be advised of who they are. George Alongi, 649 Mill Street, indicated that his problem with this item is that none of the Council was in the community in 1980 to know what could occur in the flood plain. He noted that the lake rose 23 feet in 14 days and detailed the damage caused by the water. He stressed the devastation in 1980 and indicated that it was irresponsible to suggest that there would be no such problems. He indicated that the outflow channel is a seven to one ratio and suggested that this plan was ludicrous, irresponsible and dangerous. He further noted the earthquake faults which could impact the valley. He commented that this project had an approval which has been changed over and over, and suggested that it move forward. Councilwoman Brinley clarified that she has been in Lake Elsinore since 1977. She explained that this project will be done in five phases, and the developer has worked with all the required governmental agencies and met their requirements. She noted that developers don't spend that kind of money without knowing their work was safe and approved. Mayor Pro Tern Metze noted that the TeePee Ranch project was never approved, although they sought approval several times. He noted that there was no outflow channel in 1980 and noted the record rainfalls of the last few years during which the improvements worked just fine. He further PAGE SIX - CITY COUNCIL MINUTES - AUGUST 24, 1999 noted that even when Canyon Lake Dam was over the top, the system worked exactly as anticipated; and stressed the improvements now in place. He noted with regard to earthquake faults, all of California is on a fault line. He noted that the only speakers at this meeting are Council Candidates, and questioned why they were suggesting that the Council not seek to improve the proj ect. Councilman Schiffner noted that the developer and Council listened to a great deal of advice from the Corps of Engineers and County Flood Control; and has also heard from a bunch of amateurs. He stated that his preference would be to listen to the experts rather than the amateurs. MOVED BY P APE, SECONDED BY BRINLEY TO ADOPT ORDINANCE NO. 1052 UPON SECOND READING BY TITLE ONLY. Mayor Kelley added that there were study sessions on this item and a lengthy public hearing, so everything was covered and rehashed. She stressed that this is an opportunity to better the proj ect and suggested that the Council would be remiss in not doing so. She further stressed that this project is much better than what was originally approved. ORDINANCE NO. 1052 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFONRIA, ADOPTING THE LIBERTY SPECIFIC PLAN AMENDMENT NO.2 (LIBERTY FOUNDERS). UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS: BRINLEY, METZE, PAPE, SCHIFFNER, KELLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ITEMS PULLED FROM CONSENT CALENDAR 4. Notice of Completion - Spring Street Pavement Rehabilitation Project. (F:156.2) Dick Knapp, City Treasurer, detailed the project and its location and noted the first change order in the amount of$156,132. He indicated that it was approved on July 27th for completion of Summerhill Drive in Tuscany Hills. He detailed the second change order, and questioned if the project was for Spring Street, why the money wouldn't be spent on Spring Street. He reiterated that this notice of completion was for Spring Street, but some of the funding actually pertained to Summerhill. - PAGE SEVEN - CITY COUNCIL MINUTES - AUGUST 24, 1999 City Manager Watenpaugh noted that the Summerhill Change Order was authorized by Council as a change to an existing project, and was used to complete work not done by the master developer. He clarified that the funds came from the set-aside issued from the previous owner's settlement account. Mayor Pro Tern Metze noted the cost savings of proceeding in this manner. City Manager Watenpaugh confirmed, noting that there was no separate bid process as it was piggybacked on the existing project. Councilman Schiffner noted that this matter was previously explained. MOVED BY BRINLEY, SECONDED BY P APE AND CARRIED BY UNANIMOUS VOTE TO APPROVE CHANGE ORDER NUMBER 2 AND AUTHORIZE SIGNATURES; AUTHORIZE THE TRANSFER OF $14,000 FROM THE MEASURE "A" ACCOUNT TO THE SPRING STREET PAVEMENT REHABILITATION PROJECT AND AUTHORIZE THE MAYOR TO SIGN THE NOTICE OF COMPLETION FOR RECORDATION. 5. Request for Approval of Agreement for Professional Services for Architectural Services by Salts. Troutman. Keneshiro. Inc. for Lake Elsinore West End Fire Station. (F:68.1)(X:127.3) - Dick Knapp, City Treasurer inquired why someone was being paid to redesign the urinals on the fire station, when they are using prints from the Bermuda Dunes Fire Station. He questioned why the project was anticipated to run over $1 million, when this project was to be done at a cost savings. He indicated that he sees money being wasted and suggested that $1 million is outrageous. He questioned what was happening with the money previously spent on design and acquisition of the property; and why this contract was not bid out. George Alongi, 649 Mill Street, addressed Councilmembers Pape and Metze, and indicated that he has lived in Lake Elsinore since 1964 and his comments are for the good of the community, not to promote himself as a candidate. He addressed Councilwoman Brinley with regard to the bridges during the flooding in 1980. He addressed the fire station and expressed concern with obtaining services from a source outside the community. He questioned why the fire station would cost $180 per square foot. He noted that he was aware of the cost of the technical equipment, but indicated that the cost discussed is outrageous. He expressed concern that the community has waited four years for this station and suggested that it was being brought forward at this time because of the upcoming election. Chris Hyland, 15191 Wavecrest Drive, indicated that as usual Mayor Pro Tern Metze has a vicious and vindictive tongue. She questioned spending $68,000 for the plans, when the fire chief says they have all kinds of plans. She indicated that this item was a campaign ploy, right before the election; noting that she will campaign any way she wants to. PAGE EIGHT - CITY COUNCIL MINUTES - AUGUST 24, 1999 City Manager Watenpaugh responded to Mr. Knapp and clarified that bidding out is not required on this type of contract; and staff took the recommendation of the Fire Department. He further clarified that the City would be buying the plans from the other fire station, but would need to pay for the plans and necessary alterations. He noted that the facility these plans were drawn for is currently under construction and the bid was $964,000. He explained that the plans are being modified per recommendations from the Fire Department, and detailed the square footage and cost per square foot. He advised that staff has the estimates and the bid and explained that with regard to the money previously spent, there were a number of public meetings, where the public felt the facility was over designed and the Council agreed to a more standardized station. He noted comments regarding a construction date of2010, and stressed that the project was adopted prior to June of this year as part of the capital improvement projects and noted the time frame. - Mayor Pro Tern Metze indicated that the City Manager had addressed the comments to his satisfaction. Councilman Pape indicated that this is a contract for services with a firm and there is a breakdown on costs in the packet. He detailed the breakdown and indicated that it is well and clearly spelled out how the money is being used. He stressed that this company has done fire stations throughout the County and will do a good project for the City. He noted that the Fire Department and City staff have already given input on changes which might be appropriate to the proj ect. He indicated that could see no reason why the project should not proceed, and this is just another step in the process. Councilwoman Brinley clarified that the Council has always looked to placing a fire station on the West End; and noted the past consideration of a site on Lincoln Street, which was not supported by the residents. She also noted that funds have been freed up by the RDA, allowing projects such as this to proceed. She stressed that this project was approved in June and will become a reality in the year 2000. Councilman Schiffner noted that he was not thrilled about having to pay the engineering fees either, but the original plans belong to the designer. He explained that if someone wants to build the same design next year, they will have to buy the plans again; noting that this was a standard process in the engineering and architectural business. Mayor Kelley noted that she and Councilman Schiffner recently toured a - number of fire stations. Councilman Schiffner indicated that this was exactly like the one they toured. Mayor Kelley commented that the Council was previously criticized for not building, but now the criticism is going the other way. She indicated that she was very happy with being able to stick with the financial plan and work it into this year's budget. MOVED BY METZE, SECONDED BY BRINLEY AND CARRIED BY PAGE NINE - CITY COUNCIL MINUTES - AUGUST 24, 1999 UNANIMOUS VOTE TO APPROVE THE AGREEMENT FOR PROFESSIONAL SERVICES AND AUTHORIZE THE CITY MANAGER - TO EXECUTE THE AGREEMENT. THE CITY COUNCIL MEETING WAS RECESSED AT 7:59 P.M. THE CITY COUNCIL MEETING RECONVENED AT 8:02 P.M. PUBLIC COMMENTS - NON-AGENDIZED ITEMS Chris Hyland, 15191 Wavecrest Drive, indicated that she was not against the fire station, but she was against the expenditure of $68,000. She noted that the campaigning has begun and the sign destruction has started; and signs have already been tom down. She warned that there will be people with cars and cameras to catch people damaging signs; and they will go to the District Attorney if it is necessary to have the situation addressed. She also suggested that if anyone is seen tearing down signs, they should take down the license number or name and go to the police department. - George Alongi, 649 Mill Street, addressed Councilwoman Brinley and indicated that she was incorrect on the previous town hall meeting; noting that there were only seven people present at the meeting and the City Manager ultimately made the decision to not proceed. He indicated that with regard to the Sheriffs Station, the auto shop should have been moved so it could face on Graham Avenue. He addressed the name change on Collier Avenue, and suggested that the City should reserve the right to change street names and name them after police and fire officials who serve the community. He suggested that the businesses already have enough publicity. David Kasad, 679 Highlands Road, extended an invitation to an upcoming Citizens Band Jamboree and detailed the dates, location and the purpose of the event. He explained that the event would benefit victims of the Hemet Fire who lost everything. He noted that this was the first such event in about five years and noted the other groups who will participate in the event. He detailed the ticket process, schedule of events and prizes. He indicated that anyone wishing to donate could contact him directly. Dick Knapp, City Treasurer, questioned the Elsinore Princess and indicated that it doesn't seem that anyone is working on it. He questioned the agreement with _ regard to when they leave the City property; and suggested that it doesn't look like they will make the Labor Day deadline. He questioned what happens if they don't complete the project. He noted that he has requested that Machado Street be addressed and questioned what was going on. He stressed that it should be a priority to address it now. He commented on the outflow channel and detailed its capacity; suggesting that people do their homework on the volume coming in and the volume going out. Barbara Cady, 32524 Wildomar Road, responded by Mr. Knapp and indicated that three retired people work on the Princess all of the time. She indicated that it will PAGE TEN - CITY COUNCIL MINUTES - AUGUST 24, 1999 be done, but it is just taking a lot more time than anticipated. She announced the upcoming Philharmonic performance and noted that advertisements for the program should be submitted by Thursday. She also noted that the Arts Network will be selling poetry books at the next street fair; and will also have applications for the arts network, and Philharmonic information. CITY MANAGER COMMENTS City Manager Watenpaugh noted that it was interesting that the Princess was being watched so closely. He indicated that he has extended the time allowance for it to remain on the campground until the end of January; and clarified that they will be charged a monthly rental fee. He reiterated that the project was proceeding, but not as smoothly as anticipated. CITY ATTORNEY COMMENTS City Attorney Leibold announced the three Closed Session items as listed on the agenda. COMMITTEE REPORTS None. - CITY COUNCIL COMMENTS Councilman Schiffner commented on the following: 1) Expressed hope that some of the questions asked this evening had been satisfactorily answered. Councilwoman Brinley commented on the following: 1) Informed the community of the Crime Free Multi-housing seminar to be held in October; and encouraged property management agencies to participate in the program and call City Hall for more information. 2) Encouraged local businesses to participate in the upcoming Philharmonic concert and noted the cost of advertising. She indicated that there will be over 1,000 printed programs distributed at the event on September 18th. She suggested that those interested in advertising contact Barbara Cady at 245-4478. She indicated that a wonderful evening is planned and encouraged participation. - 3) Announced that RTA will have "Try Transit Day" on September 14th, and noted that they will be judging the children's posters for the event. She noted that over 100 poster entries were received, and indicated that the winning posters will adorn the monthly bus passes. She noted another program in the City of Hemet in which a bus will be decorated with children's handprints. She encouraged public PAGE ELEVEN - CITY COUNCIL MINUTES - AUGUST 24, 1999 participation. 4) Concurred with the City Manager and the Council on support of the Elsinore Princess, concurring that the work was proceeding and assured that the finished proj ect would be well worth the wait. Mayor Pro Tern Metze commented on the following: 1) Indicated that it was amazing that people who have criticized the Council on the low and moderate housing issue, were now criticizing the Council's attempts to assist. He noted that it was a similar situation with the Fire station. 2) Noted the $60 million previously spent on the levee, the inflow channel and the outflow channel. He indicated that the proof was in the pudding and the improvements have worked like a charm during the recent record rainfalls. Mayor Kelley commented on the following: 1) Detailed the campground and launch statistics for August 16th through August 22nd. 2) Noted that the advertisements for the concert program have been selling for about two weeks and are now coming to an end. She indicated that Friday will be the deadline, and interested parties should contact Mrs. Cady quickly. THE CITY COUNCIL MEETING WAS RECESSED AT 8:23 P.M. THE CITY COUNCIL MEETING RECONVENED AT 8:25 P.M. CLOSED SESSION a. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9) Lake Elsinore Recreation Area vs. City of Lake Elsinore, et. al. - Case No. 302435. b. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9 - I case. c. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Property: APN #374-261-023 - Negotiating Parties: City of Lake Elsinore & County of Riverside - Under Negotiation: Price & Terms THE CITY COUNCIL MEETING WAS ADJOURNED TO CLOSED SESSION AT 8:25 P.M. PAGE TWELVE - CITY COUNCIL MINUTES - AUGUST 24, 1999 THE CITY COUNCIL MEETING RECONVENED AT 10:30 P.M. WITH NO REPORTABLE ACTION. ADJOURNMENT - MOVED BY BRINLEY, SECONDED BY P APE AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR CITY COUNCIL MEETING AT 10:31 P.M. -~ ENIE KELLEY, MAYOR CITY OF LAKE ELSINORE ATTEST: V3LU VICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE -