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HomeMy WebLinkAbout09-02-1999 Joint CC/PC/EVMWD Study Session JOINT CITY COUNCIL/PLANNING COMMISSION AND ELSINORE VALLEY MUNICIPAL WATER DISTRICT BOARD STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, SEPTEMBER 2, 1999 10:00 A.M. ......................................................................... CALL TO ORDER Planning Commission Vice Chairman Barnes called the Joint Study Session to order at 10: 11 a.m. and introduced the Commissioners present. E.V.M.W.D. Board President Attridge called the Joint Study Session to order at 10: 11 a.m. and introduced the Boardmembers present. Mayor Kelley called the Joint Study Session to order at 10:11 a.m. and introduced the Councilmembers present. PLEDGE OF ALLEGIANCE Vice Chairman Barnes led the Pledge of Allegiance. ROLL CALL PLANNING COMMISSION: PRESENT: COMMISSIONERS: BARNES, MATTHIES, POLK, SANDS ABSENT: COMMISSIONERS: WILSEY ELSINORE VALLEY MUNICIPAL WATER DISTRICT: PRESENT: BOARDMEMBERS: ANDERSON, KELLEY, WICK, ATTRIDGE ABSENT: BOARDMEMBERS: MILLER CITY COUNCIL: PRESENT: COUNCILMEMBERS: BRINLEY, METZE, P APE, SCHIFFNER, KELLEY ABSENT: COUNCILMEMBERS: NONE PAGE TWO - JOINT STUDY SESSION - SEPTEMBER 2, 1999 Also Present were: Elsinore Valley Municipal Water District Staff: General Manager Laughlin, Assistant General Manager Rossi, Director of Engineering Miller, Operations Secretary Hansen, Public Affairs Manager Dennis, Financial Consultant Modrich, and Secretary of the Board Quintanar. - City of Lake Elsinore Staff: City Manager Watenpaugh, Assistant City Manager Best, City Attomey/Representative/Water Van Blarcom, Community Development Director Brady, Administrative Services Director Boone, Community Services Director Sapp, City Engineer O'Donnell, Public Works Manager Payne and Deputy City Clerk Bryning. PUBLIC COMMENTS George Alongi, 649 Mill Street, addressed connection fees for residential construction. He noted that this applies to all connection fees for all utilities and read an article regarding the rising price of homes, of which a portion is due to connection fees. He explained that Commercial Development would have years to recoup their money, however a homeowner does not. He - asked that EVMWD not reduce the fees to restaurants by raising the fees for the homeowner. DISCUSSION ITEM 1. Water & Sewer Connection Fees. City Manager Watenpaugh presented an overview of the City and noted that the City was incorporated in 1888 and consists of38 square miles with a population of29,300 as of last January. He further noted that the City has been experiencing a growth rate of 5.53%. He stated that the City has issued 862 Building Permits in the last budget period and the City employs 85 full-time and contract employees operating on a total budget of $22,500,000, which includes Lighting and Landscaping Assessment Fees as well as Capital Improvement funds. He noted that the City's General Fund to support the City is $10,100,000. - Assistant General Manager Rossi explained that the District currently serves 96 square miles with 84,000 customers. He gave an overview of the area served and noted that EVMWD currently has 121 PAGE THREE - JOINT STUDY SESSION - SEPTEMBER 2, 1999 - employees with 70 employees dedicated to the field. He further noted that EVMWD has 550 miles of pipe to be maintained as well as 45 water reservoirs, 44 water pump stations, 3 waste treatment plants, and 31 lift stations. He gave a budget overview and explained the need to fund future projects, as well as plan for improvement of existing facilities. Assistant City Manager Best stated that the economy is recovering and noted the residential and commercial growth in the region. She indicated that the City of Lake Elsinore is the 4th fastest growing City in Riverside County and the 20th in the State of California. She noted that the fastest growing cities in the County and the State are Murrieta, Temecula and then Corona. She stressed that the City of Lake Elsinore is in the fast growth corridor and anticipates that this trend will evolve to Lake Elsinore. She noted the residential and commercial growth that has occurred in the City. She gave an overview of the commercial projects that have been completed and the future projects that are in process at this time. - Assistant General Manager Rossi gave an overview of EVMWD's service planning and presented a current Supply and Demand Chart. He noted that water supply is of primary importance and presented an overview of the projects planned to increase the supply to various projects within the City of Lake Elsinore and surrounding areas. He stressed the amount of planning involved to provide services. Assistant City Manager Best noted that City of Lake Elsinore and EVMWD are in the process of forming a Joint Utilities Committee that will include Edison, Southern California Gas, General Telephone Company and other utility providers in the Region as well as the School Districts. She explained that this Committee is being developed to provide information to all the utilities so they can prepare the infrastructure for future projects in advance instead of trying to do the infrastructure upgrades at the last moment. She noted that they would meet on a quarterly basis to facilitate the utilities and School Districts working together. - Assistant General Manager Rossi addressed EVMWD as a sister agency, in providing emergency response. He noted the facilities that are affected by emergencies such as flood and fire and explained the training program for their staff. He noted that they have 6 trained employees that are on 24-hour call to meet these needs; and gave an overview of the jobs the emergency employees do. Assistant General Manager Rossi gave an overview of the Connection Fees and presented a comparison based on the following: Cost including the facilities that must be built; Perceptions; Restaurant Fees; and Residential Fees. He noted that EVMWD's customer base PAGE FOUR - JOINT STUDY SESSION - SEPTEMBER 2, 1999 consists of95% residential, 1 % restaurant; and 4% commercial. He explained that the fees are based on the cost of facilities and provision of needs as well as future needs and noted the comparison of single family residences. He stressed that fees must be spent in a five-year period or returned if the money is not utilized to build facilities. He presented an analysis of the growth, and a chart of the connection fees for residential, commercial and restaurants for water and sewer. He noted that EVMWD is highest in their comparisons; however he noted that their resident fees are lower which meets the nexus. He noted that the replacement of lines has created the primary cost experienced by the Water District and explained that calculations for connection fees for Restaurants are based on the amount of waste placed in the system; calculated by the amount of seats in the restaurant. Assistant General Manager Rossi explained that it is the District's goal to work with the City to provide information to the restaurants with information to help them better address their needs in the most economical way possible. He explained a fee deferral program that the District offers for commercial establishments which includes restaurants. He further explained that the program has been available since 1994 for new businesses and must be two Equivalent Dwelling Units or more; must be a commercial establishment; and have a 25% down payment. He noted the District will then discuss interest rates and then be willing to finance the fees over a 6-year period. He indicated that there have been very few people that have taken advantage of this program and he felt it was because the District looks to secure the loan through a lien on the property with the first and second subordinate to the District. He further indicated that they are proposing a change that would lighten the requirements. He explained that the program was designed to prevent risk to the District. He noted that they are looking at establishing an agreement that would be binding on the subsequent property or business owner. Assistant General Manager Rossi explained that there are some policy questions for the City Council, Planning Commission and EVMWD Board as to where the risk should be in terms of attracting businesses and where should the District fees be, relative to other communities. He explained that the District will be looking at that issue in the coming months. He summarized his presentation by stating that the fees are tied to the cost that the District incurs to provide the service; the District has some of the lowest residential fees in the area; restaurant fees are some of the highest; and a deferral program without the lien requirement would be more attractive to those who need financing options. - - - Commissioner Polk asked why the fees were different for different size lines. Assistant General Manager Rossi stated that the fees are based on the size of the meters. Commissioner Polk questioned the amount of money that is charged for installation and stated that it should be the same cost as any other meter. Mr. Rossi stated that the installation PAGE FIVE - JOINT STUDY SESSION - SEPTEMBER 2, 1999 fee is based on the size and cost of the meter. He indicated that they have a table they use that the American Water Works Association and their engineers have developed over the last several decades, which addresses the amount of water demand that can be placed on a system by the size of the meter and its capacity under different pressure ranges. He gave examples of the capacity of water through a meter. He further explained that the installation of the meter is generated by the size of the meter and the distance from the main to the meter location. - Councilman Pape questioned the variable in fees for restaurants. He questioned the numbers on the chart presented to Council and asked if there was a standard used by all the water companies. Assistant General Manager Rossi stated that they use the same standard as the American Water Works Association as do most other water companies. Councilman Pape noted the pizza restaurant that burned down and asked if they could move their connection fees to another site and not pay again. He noted that this is a large burden for the business to absorb after the fire. Assistant General Manager Rossi stated that it depends on the situation and if they are leasing the building or not. He stated that the property owner could view the water and sewer connections as his versus the renter. He stated that he was not aware of any transfer programs within the District. Mayor Pro Tern Metze stated that if the water connection fees and installation fees stay with the property owner, then the property owner should pay them. Councilman Pape suggested that if a restaurant owner wishes to change location and add to his business, then he should be allowed to transfer the fees and credits to facilitate the move. He stated that then if someone moves into the old site, the new customer should be responsible for paying the fees. He indicated that then, there would be only one fee and one cost. Assistant General Manager Rossi restated that the restaurant is calculated on a per seat basis. Councilman Pape questioned the cost for a drive-thru and noted that they are not generating the same need as a sit down restaurant. Assistant General Manager Rossi stressed that they calculate on a "per seat" basis. He noted that they look at the impact on the system and amount of water use and address it in that manner. He noted that they do not have a large history of fast food restaurants in the area, however the uses are similar to a standard restaurant. Mayor Pro Tern Metze indicated that the water that enters a house and the amount of water that leaves a house are approximately the same. He noted that the District is collecting for the water that enters the house and again for the wastewater that leaves the house and then can generate income from the reclaimed water. Assistant General Manager Rossi noted that amount of funds necessary to remove impurities from the water. Mayor Pro Tern Metze questioned the PAGE SIX - JOINT STUDY SESSION - SEPTEMBER 2, 1999 differences between the District and Riverside for the cost of connections and installation for restaurants. Assistant General Manger Rossi explained that the difference is created because many of the cities subsidize their restaurants to lower costs. Councilman Pape indicated that Denny's was charged $115,000 for their connection and installation fees and Lakeside Chevrolet was charged $55,000. He noted the costs in Oceanside for connection and installation for similar facilities, were significantly less. Councilman Schiffner addressed the differences between the various agencies and noted that in other cities restaurants are encouraged. He indicated that the problem the City faces is that it must be competitive in order to draw the restaurants to the area. Boardmember Anderson noted that Ranshaw is higher than EVMWD. Councilwoman Brinley commented that the Agency needs to be more business friendly to encourage growth or interest from the small businesses. She stated that the District and the RDA must find an avenue to facilitate growth. Councilman Pape noted that some businesses couldn't grow because of the cost of the fees, and that forced the businesses to remain at the same site or relocate in a different area outside the City. Boardmember Kelley noted that the difference between Corona, Riverside and EVMWD is that at the time that Corona and Riverside built, the costs to build were much lower, however the new facilities come at a much greater cost. Commissioner Matthies noted that there are expensive up grades for older facilities and that probably balances the cost between the two. She stressed that there is a need to find a solution to allow lower fees. She noted that the deferral is a good solution, however if costs are not reduced, then it does not address the issue. Commissioner Polk questioned the meter fees. Board President Attridge stated that there was not enough time to chart the fees and explained that they were not given enough time to prepare a more comprehensive report for this meeting, however staff will do further investigations and come back with their findings at a future meeting. - Mayor Pro Tern Metze stated that cost has been an issue for years. He indicated that if they have a comparison and it shows that the District is higher in their fees, then the District should be able to explain why the fees are higher. PAGE SEVEN - JOINT STUDY SESSION - SEPTEMBER 2, 1999 Councilwoman Brinley indicated that Corona has had to expand their facilities, which would have been at considerable cost, to allow for their new population growth, and they have kept their fees reasonable. She stated that it is important for all members present to ask themselves how they can best serve the community and recognize the need to adjust. She noted that the majority of the fees come from the residential areas and because of the growth, this should allow the District to lower their fees to commercial. Assistant General Manager Rossi explained that the other cities, such as Riverside have a much higher residential rate and therefore can charge less for their commercial. Councilwoman Brinley questioned the fees that are required from the School Districts for hook-ups and stated her concerns regarding the cost to the schools. General Manager Laughlin stressed that EVMWD cannot be compared one from the other with the listed agencies, because they subsidize their departments since they are in other utility businesses. He indicated that this allows places like Corona and Riverside to lower their costs. Councilwoman Brinley noted that the School District has asked the City to review their General Plan because the District is considering building more schools. She asked if the Water District could make provisions for the School District connection fees and asked how the District sets the connection fees for the School District. Assistant General Manager Rossi stated that the fee is based on the average daily attendance. Commissioner Matthies expressed concern with the redevelopment of existing school sites, as well as new schools that will be built and the related costs. Councilman Pape stated that he felt that the loan program was commendable and would lend some assistance to small businesses. He commented that there is a need for education of the small businessman to inform them of this option. Councilman Schiffner stressed that there is not enough time to work out a policy to meet the needs of small businesses in the area, however he stressed that there is a need in the City for more restaurants and noted the number of businesses, especially restaurants that locate in other areas because the City cannot compete. He indicated that the fees must be addressed and a policy set that will solve this problem. PAGE EIGHT - JOINT STUDY SESSION - SEPTEMBER 2, 1999 Councilwoman Brinley asked if the single-family residences were allowed to use the loan process. Assistant General Manager Rossi stated that the loans provided by the District were for commercial only. General Manager Laughlin noted that the District is considering a deferral loan process that could be billed on a monthly basis with the monthly water bill. There was general discussion regarding commercial hook-ups. Boardmember Anderson stated that there is no way to explain the difference between the City of Lake Elsinore and the City of Riverside because of the age and initial cost of their facilities versus the City of Lake Elsinore and also the difference in area served. Mayor Pro Tern Metze commented that the fees are set and the District is aware of what they can charge per their nexus. He indicated that he felt that there was an imbalance. Boardmember Anderson stated that to change the fees and lower one, another would have to be raised and in this instance it would have to be the residential fees. Board President Attridge noted that to change the fees and charge more to the residential, the District board would have to vote on the change, however EVMWD serves more than just the City of Lake Elsinore and the cost cannot be calculated for just the City since the fee has been set for the entire District and not just one area. He note that any change would affect the entire District and not just the City. City Manager Watenpaugh noted that Oceanside has experienced problems with subsidizing connection fees for new development and this has created a burden on the City. He noted that they are now trying to address this issue to better balance the charges. He indicated that another Study Session would have to be set to give the District the opportunity to research, review and report on why there is a difference in the charges between the cities. Councilwoman Brinley asked about building fees and their costs within the City. City Manager Watenpaugh explained that the building fees for a single-family residence are lower than most places, however the commercial building fees are greater and the City picks up the difference. - Commissioner Matthies stated that she would like to see a comparison between other separate water companies and EVMWD. She stated that she does not feel that it is a good comparison between EVMWD PAGE NINE - JOINT STUDY SESSION - SEPTEMBER 2, 1999 and the different cities, since they have a different operating procedure. She stressed that she still wants to see the connection fees reduced, however she would like to have the opportunity to compare and know why there is a difference. Mayor Pro Tern Metze stated that ifEVMWD's business is well over 90% residential, then they should be able to see that there is a major need for commercial. He further stated that the City needs the revenue base to continue to provide services to the public and commercial is one of the major contributors. Mary Lynn Coffee, Attorney for the Town Group, expressed her concern regarding connection fees and how this will affect development. She stated that the information would allow her to approach the builders for her project to show that there is some sensitivity by the City and the Water District for the future development of the area and the related costs. Councilwoman Brinley stated that she felt that there was information that was not available at this meeting to better address the concerns of the Council and Planning Commission and asked that another Study Session be scheduled to allow for further information regarding a comparison and breakdown of fees. Assistant General Manager Rossi stated that he would be glad to work with City staff and develop reports to better address the concerns and issues. He noted that this could be brought back at a future meeting. Councilwoman Brinley stated that schools and commercial uses are two of the major issues that need to be addressed. Commissioner Polk stated that residential fees could be used to off-set the costs. Councilman Schiffner stated that he would like to see a breakdown of the percentage of sewer usage and capacity of residential versus a restaurant. Board President Attridge gave an overview of the cost to treat waste from a restaurant and noted the difference between residential and commercial. Councilman Schiffner stated that there are not a large number of restaurants in the area and what is being discussed for the future is not a great number of restaurants. He noted that the City would be lucky to get 3 or 4 in the next several years. PAGE TEN - JOINT STUDY SESSION - SEPTEMBER 2, 1999 Councilman Pape stated that restaurants are a small percentage of the users, however there is a major demand for more restaurants in the area. There was general discussion regarding future water availability. General Manager Laughlin explained the availability of future water and gave an overview of the Temescal Valley Pipeline plan. He indicated that this would be in place in the next 20 to 30 years to facilitate the area. He noted the Bunker Hill Reservoir and noted that the District has an agreement and this facility will provide more drinking water. Mayor Kelley stated that she does not want residential to subsidize commercial and she would like to see it stay the same, however she would like to see how commercial fees could be reduced. She asked why there was such a disparity and indicated she would like to see this situation corrected. She stated her approval of a deferral plan that would benefit everyone and stated she would like to see the District work on this. She noted the opinion of the public regarding restaurants and indicated that there is a need for further studies. She commended EVMWD on their loan program. Board President Attridge stated that it was his understanding that it was not the connection fees that caused restaurants to go elsewhere, but rather the fact that the City does not have enough traffic to justify a major restaurant from building in the area. Mayor Kelley stated that with Lake Elsinore being the 4th fastest growing city in the County, there would be a major need for restaurants. 2. Lake Fill & Operations Agreement. City Manager Watenpaugh gave an overview of the Lake Fill and Operations Agreement. He explained that the purpose of placing this on the Agenda was to present the documents to any new members that have not had the opportunity to review it. He explained that the document is between the City and the Water District and addresses responsibilities in terms of ownership of the Lake; water rights; maintenance of elevation of the Lake to 1247'; and the use of recycled water meeting Title 22 requirements. City Manager Watenpaugh stated that he would be available for any questions. - Commissioner Polk questioned the current level of the Lake. City Manager Watenpaugh stated that it is currently at 1247.6. Commissioner Polk questioned the amount of evaporation. City PAGE ELEVEN - JOINT STUDY SESSION - SEPTEMBER 2, 1999 Manager Watenpaugh explained that 9000 gallons a minute of evaporation is an average that is used to estimate the amount of evaporation that Lake Elsinore experiences. He indicated that it equates to approximately 4 to 4 1/2 feet per year. General Manager Laughlin stated that it is 4 feet 8 inches per year is the average annual evaporation rate. Councilwoman Brinley questioned the status of the hydroelectric plant. General Manager Laughlin stated that the project is dead in the water since the firm that was awarded the contract is currently involved in litigation. Councilman Pape asked if there was something specific that should be addressed in the document. City Manager Watenpaugh stated that there was not, however he wanted to be sure that all members present were familiar with the Agreement. He indicated that the sections he wished to note were the water wells and the conditions that affects the wells. Councilman Pape questioned Page 5, Item No.9, which addresses water quality. City Manager Watenpaugh noted that neither the City nor the District could contribute to the degradation of the water quality of the Lake or do anything to jeopardize the water in the Lake. - Councilwoman Brinley questioned the degree that water would have to be introduced into the Lake. She indicated that she keeps hearing about a level 5. Assistant General Manager Rossi stated that the degrees indicate the level of the quality of the water. City Manager Watenpaugh stated that there is another Study Session planned to address Water Quality. Board President Attridge indicated that at the future Study Session EVMWD will present what can be done with recycled water. Councilwoman Brinley stressed the need for education for the general public in regard to recycled water. - Assistant General Manager Rossi stated that the City and District share in the cost of filling the lake and this is a concern of both agencies. He stated that the Study Session regarding Water Quality will be information to educate the Board, the Commission and the Council and will then be presented to the public. Mayor Kelley thanked everyone present for attending the Joint Study Session. PAGE TWELVE - JOINT STUDY SESSION - SEPTEMBER 2, 1999 ADJOURNMENT The Joint Study Session was adjourned at 12:08 p.m. Respectfully Submitted, ATTEST: 9Is{Y~ VICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE -