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HomeMy WebLinkAbout02-12-1998 City Council Study SessionMINUTES CITY COUNCIL STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, FEBRUARY 12, 1998 ***~~*~*~~a*~~*~*~**~~~~~*~**~~***~~*********~**~~**~****~*~**a** CALL TO ORDER The Study Session was called to order by Mayor Pape at 2:40 p.m. PLEDGE OF ALLE IAN The Pledge of Allegiance was led by City Gierk Kasad. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: KELLEY, METZE, PAPE ALONGI, BRINLEY Also present were: City Manager Watenpaugh, Administrative Services Director Boone, Community Services Director Sapp, Assistant to the City Manager Best and City Clerk Kasad. DI ION IT M 1. ~conomic Develo~ment (F:70.1) City Manager Watenpaugh noted the recent Goals and Objectives Meeting and the request that staff come forward with an Economic Development Plan. He noted that Assistant to the City Manager Best has put together a group of professionals in Economic Development to explain what Economic Development is in the 90's and how it has changed. He stressed that the consultant services for this meeting were being provided free of charge. Assistant to the City Manager Best noted that the panel is gathered from the Southern California region and noted their expertise. She introduced Mr. Michael Beck, Director of the . Office of New Initiatives and Economic Development for the University of California, Riverside. Michael Beck provided a background and history of economic development including changing regional economy, contrasted Economic Development with Redevelopment and provided a future vision for Lake Elsinore. He noted that tt-e historical industrial base for the Inland Empire was Aerospace, and the region also benefited from Agriculture and Transportation. He further noted that the approach in the past has been a rather generic "come one, come all" attitude. He explained that the main selling point for the Inland Empire was PAGE TWO - CITY COUNCIL STUDY SESSION MINUTE5 low cost labor and land. He projected that the future characteristics of the economy would be in specified technological clusters including envirotechnology, transportation/logistics, infotechnology, biotechnic and tourism. He stressed the importance of stimulating the economy by leveraging private sector capital. He indicated that an appropriate Economic Development program should include a mazketing program, zoning/specific plans, business friendly community and investment stimulation. Mr. Beck clarified that "Redevelopment" includes leaderslup development, image relations, land assembly, investment stimulation, and infrastructure development. He explained that the key difference between Economic Development and Redevelopment is the reactive component focuses on retail activity where development should elimu~ate activity. He indicated that the top ten location considerations for corporations aze: labor supply/quality, transportation system, permitting process, competitive operating costs, quality of life, education, good government/business interaction, image, sites available, and inducement packages. He stressed that the inducement package is not the number one consideration. He indicated that the best development strategy is to develop civic entrepreneurs, industrial inventory and strategic community advantages including the good location and quality of life. He encouraged continued efforts on the industrial inventory and stressed that the I-15 corridor is critical for the region. He stressed that a good program manages the future and improves social and economic conditions of the Community. Assistant to the City Manager Best requested that Mr. Beck clarify the term "Civic Entrepreneur". Mr. Beck indicated that is someone in the community who creates opportunities within the community, or helps to shape the community. Ms. Best introduced Cluis Del Ross Risher, Associate Director of Business Attraction and Retention for the Inland Empire Economic Partnership. Ms. Del Ross Risher discussed I.E.E.P. and the regional efforts underway. She advised that there is a regional vision for Economic Development and identified the Inland Empire participants in I.E.E.P. She indicated that I.E.E.P. is a unifying force for regional business, government and community leaders, which is advancing a pro-active marketing plan. She noted a handout distributed at tlus meeting, detailing the regional strengths; and stressed that it is used on a daily basis for business retention. She further noted that land availability and cost is still a very important issue and there is still a lazge supply of land, at competitive prices. She indicated that the biggest issue is the work force in the region, and employers aze finding the necessary work force locally; and that is the area's greatest asset. She fiuther indicated that wage rates are competitive and people are educated. She noted the college and school systems in the area and indicated that the housing market is the most active in the region, being rated fifth in the nation in terms of market intensity. She stressed the affordable nature of housing in contrast to Orange and San Diego Counties. She indicated that the azea offers incentives wlrich are competitive with other areas of Southern California. She stressed that the quality of life is a major selling point for the area. She detailed the I.E.E.P. divisions including the small business _ PAGE THREE- CITY COUNCIL STUDY SESSION MINUTES development division, the Inland Empire Film Commissioq and the international trade division She indicated that the I.E.E.P. has a pro-active public policy approach with the four main objectives of her job being to attract, retain, e~and and incubate new and existing businesses. She noted the dollars being spent in other states to attract small businesses from California. Ms. Best introduced Lee Hanson, Associate Professor of Management at California State University, San Bernardino. ~ ~ \ Mr. Hanson noted that lus last job before academia was as a Senior Administrative Assistant in a City Manager's office. He detailed the federal IE21 program which is a lugh tech strategy for the 21st Century; seeking to convert the region to a technologically sophisticated business base. He noted the ability to command high wage labor in tlris area. He e~lained that the thrust of IE21 is nurturing lrigh tech entrepreneurslup with technology transfer from the Universities, and the promotion of industry clustering. He explained that this regional sirategy is linked to "Economic Gardening" and explained the ability of tlris program to complement local economy efforts. He further explained that Economic Gardening is shifting toward hying to assist local companies to grow or expand. He suggested that the City do an industry inventory, interview local companies to determine their growth needs, conduct a community assets/liability audit and design andlaunch a gardening program. He stressed that the overall thnist is to try and encowage the growkh of companies for higher income jobs, do economic intelligence of companies for competitor intelligence reports, market identification, identification of foreign trade possibilities, training progams using local community colleges to address specific needs, provide professional support, and address quality of life initiatives. Assistant to the City Manager Best commented that there has been a number of questions about "Economic Gardening", and noted that it was well explained by Mr. Hanson. She fwther noted a study of several communities and their efforts in tlus azea. She introduced Michael Stull, Executive Director of the Inland Empire Small Business Development Center. Michael Stull spoke on the value of small business, the needs of the small business community, explained the Small Business Development Center and detailed its resources. He noted that Economic Development for small businesses is mauy times overlooked, but they too are valuable to the economy as a whole. He advised that there are twenty two million small businesses in the Country today; and 50% of the private work force is employed by small businesses. He noted the high statistics on lugh business failures and stressed the number of small businesses in Lake Elsinore. He fiurther noted that he is a strong advocate of small business, but the failure rates point to a need for resources and nuduring. He compared the components of a growing garden and the needs of the business community. He commented that the SBDC is an organization that meets the needs of the small business community and maintains a unique parmership between the Small Business Administration, the State of PAGE FOUR - GITY COUNCIL STUDY SESSION MINUTES California, I.E.E.P. and a variety of cities, counties and private firms. COUNCILMAN ALONGI ARRIVED AT 3Z0 P.M. Mr. Stull detailed the locations of their offices and noted that the nearest location to Lake Elsinore is in Murrieta. He advised that the SBDC provides free business consulting, low cost training seminazs, special programs, and a resource network. He detailed the business assistance provided in 1997 and stressed the need to provide adequate support to small businesses. Councilman Metze noted a past opportunity to interact with the SBDC and indicated that free services provided were invaluable. Assistant to the City Manager Best introduced Mr. Jerry Henderson, representing the Los Angeles Region of the Califomia Trade and Commerce Agency. Jerry Henderson commended the Council for having the best possible staff, and detailed the Califomia Trade and Commerce Agency and its programs. He detailed the efforts to keep businesses in California and explained the various divisions of the Agency, including Rural Development, Welfaze to Work, California Film Commission, Office of Permit Assistance, Office of Strategic Technology, and Office of Intemational Trade. Ms. Best introduced Kevin Palmer representing the Economic Development Agency for the County of Riverside. Kevin Palmer commented on their efforts and economic activity in unincorporated areas of the County. He noted that even development in the County areas benefits the City in two ways, by allowing people to find employment in the vicinity and causing much of the remaining vacant land to be on the verge of development. He noted that several companies aze looking into the Southwest County area; and detailed efforts to develop a strategic plan. He fucther noted that they have been able to identify target industries to mazket for relocation to this azea. He explained the resources the County has available to assist cities with their ongoing projects, such as job training recruitment programs, grant funds to help prevent lay-offs, industrial development bond programs, etc. He also addressed federal EDA grants and noted the annual funds for infrastructure. Aurelio Aguierre, representing Riverside County Economic Development Agency addressed C.D.B.G. funds and explained that it is lus job to see that the money is handled correcfly. He noted that tlus money can address infrastructure improvements in eligible areas. He stressed the importance of quality of life and related issues. He advised that with regzrd to economic development, there is a loan progam in the County of Riverside, wiuch is competitive for the County on a whole. He stressed that cities only need to contact them and address the strategy and they will let us know what can be provided. He stressed their efforts to create jobs and a better quality of life for the area. PAGE FIVE - CITY COUNCIL STUDY SESSION MINUTES Ms. Best noted that the speakers have gone from a general descriprion of Economic Development, to how it has been used successfully in other areas. She then introduced Fred Francia, Local Region Manager in Public Affairs for the Edison Company. . Fred Francia shared personat information on economic development in the Lake ELsinore Valley; and indicated that he is very encowaged by the partnerslup and cooperation between the cities of Lake Elsinore and Canyon Lake. He thanked City Manager Watenpaugh and Assistant to the City Manager Best for their willingness to work with him on economic development issues. He stressed that the Edison Company is a stakeholder in the community. He presented a video ~ on the Goodyear Rubber Company and a successfui business retention program. ~ He stressed the importance of outreach and "gardening" to retain successful ~ businesses. ~ Assistant to the City Manager Best reviewed the documents presented including and Interim report published by UCR in 1996, regazding economic development policies. She noted the key issues and the ranking of those issues in economic development promotion. She requested that Council consider directing staff to come back with a program for actioq noting that City staff would like to include an emphasis on developing small business in the community. She noted past efforts with Temecula and Murrieta and the Southwest County Manufacturer's Council, and indicated that staff would like to develop a formal written policy for business retention programs, and possibly some streamlining of processes and improvement of the City's business friendly image. She indicated that staff would also like to include an economic plan in the general plan, and expressed hopes to find funding to assist with ttus effort. She also indicated that staff would like to continue to work with the EDC groups and stressed the importance of small businesses. She noted that she has recently learned that there aze 413 businesses with 5 employees or more between Lake Elsinore and Canyon Lake. Mayor Pape thanked staff for the group assembled to shed light on economic development. He noted numbers heard with regard to the recession being over, and questioned whether there had been a survey of elcisting businesses in the region about plans for expansion and the need for larger facilities in the future. Chris Del Ross Risher indicated that I.E.E.P. does conduct surveys of that type and are presently resurveying that particular information. She noted that they do quarterly reports regazding business expansion and retention. Michael Beck noted that a list is being compiled for the technology and business list, noting that some aze outdated. He noted that they believe they will find 400 to 500 high-tech companies in the region. He indicated that for that group the biggest problem seems to be in attracting qualified labor. Kevin Palmer noted that another tool which could assist in tlus azea would be a seed grant pilot program between the City and the EDC. Mayor Pape noted that tt-ere was an intention to bring some specific recommendations for action before the Council. Ms. Best confirmed and noted PAGE SIX - CITY COUNCIL STUDY SESSION MINUTES - that those recommendations will include visionary programwing and goal setting for the community to look at where we should be going. She reiterated hopes that it would be possible to use grant funds to assist these efforts. Mayor Pape suggested bringing the program forwazd as soon as it is ready. Councilman Metze indicated that he would like to see another study session with the Chamber of Commerce, and the City of Canyon Lake and their Chamber of Commerce. He further indicated that he would like to see a more specific proposal at that time; including information on what we have and what else we need. He noted positive efforts to gain information on the importance of the quality of life in business growth and retention. Mr. Metze stressed that he would want very specific information on exacUy what is needed from the City and from the Chamber to make the program work. Mayor Pro Tem Kelley concurred with having the policy come back for further discussion. She noted that a joint study session with the school district and Canyon Lake was planned and suggested that this issue be on that agenda. She thanlced the consultant panel and stressed the existence of many resources to tap into, and noted its alignment with the City's policies, goals and objectives. Mayor Pape expressed appreciation to the Consultant team for their time and the good information. THE CITY COUNCIL STUDY SESSION WAS RECESSED AT 4:40 P.M. THE CITY COUNCIL STUDY SESSION RECONVENED AT 4:50 P.M. 2. West End Fire Stafion.(F:127.3) City Manager Watenpaugh noted that consideration of this item was requested by Councilman Alongi, and was intended to allow for conshuction of the station to proceed. Councilman Alongi stressed the importance of fire service and indicated that 18 minute response times do not constitute protection. He noted a specific fire wluch occurred at the west end, took 10 minutes for the fire department to amve and resulted in over a$100,000 loss. He discussed the use of volunteer staffing and detailed the changes wluch have occurred. He detailed the response times form each of the area fire stations. COUNCILWOMAN BRINL~I' ?.'_'.RI~~D AT 4:55 P.M. He suggested that by the t~me t~.e sta~on is built in approximately 18 months, the Chief will have had time to train personnel on how to operate the velricle, etc. He indicated that the majority of fire departments aze all volunteer. He noted that the City has negotiated a contract with the ball team and are opening the parks, and there is $2 million in reserves. He suggested that it would build the confidence in the commwrity if the Council decides to go back and fiilly man PAGE SEVEN - CITY COUNCIL STUDY SESSION MINUTES the West End Station. He fiuther suggested that Goodhew would be interested in renting space at a new station. He also suggested that another way to save on operating costs would be for the City to handle the utilities on the station. He suggested opening the station and then going back to the people for more tax dollars. He indicated that his main concem as an elected official is to provide the most important public service, being public safety. He noted that there is no fire station planned in Easdake and nothing in Tuscany Hills. He suggested that the City was exposing the community to danger. He noted that volunteer fire Fighters are the same as volunteer Sheriff's in that they place their life on the line, but don't get paid for it. ~ Mayor Pape reiterated that the concern is not with having the money to build a ~ station, but with having the money to staff the station. He questioned the cost ~ of staffing a fire station with full time paid fire fighters yeaz round. City Manager Watenpaugh indicated that it is just under $500,000 a year for full time staffing; but stressed that there was no revenue to pay that fee in the foreseeable future. Mayor Pape noted that the next choice would be all volunteer, wlrich on the surface is a viable option, however it would still cost about $250,000 a year to staff with volunteers and provide training, gasoline, electricity, etc. He stressed that the Fire Cluef has repeatedly told us that it is not in the City's best interest to use all volunteers, as the calls are too numerous and there is a whole list of reasons it would not be in the City's best interest. He suggested that politicians going against the recommendations of professional staff would be a bit pompous. He noted a recent newspaper article about the five fire stations sittin em because there are no funds to staff them. He indicated that with g PtY regard to AMR ambulance service, they have a long term lease on the facility at four comers; and are probably not interested in breaking the lease. He further indicated that there has been some discussions with the County and Supervisor Buster, and they are looking at moving the station in Lalceland Village , and it could be relocated to benefit both City and County. He stressed the importance of working toward common goals, which are logical and feasible. Mayor Pro Tem Kelley concurred that the Council has repeatediy been told by the Fire Department that a paid fire staff is needed. She stressed the need to become solvent and suggested that the station needs to be more feasible with adequate funding. She further stressed tbat the City doesn't have the funds right now. She indicated that there are still 21 days before the Stadium Lease is a done deal. She noted that there is nothing she would like to do more than build a fire station and staff it, but it is not feasible and does not fit into the financial ~ ~ ~ ~ plan. ~ Councilwoman Brinley concurred with the other Councilmembers because it is important to do the right due diligence before the station is built, to assure that we aze able to staff and operate it. She indicated that there are no grants available to fund it, and proceeding at this time would be doing the residents a disservice. She reminded the Coimcil and Community that the Stadium issue was only resolved recenfly. She slressed the importance of making sure the City has the money to fund sta~ng before the starion is built. She indicated that she PAGE EIGHT -:CITY COUNCIL 5TUDY SESSION MINUTES appreciates the volunteers and knows they aze trained to deal with difficult situation; but siressed that she has heazd from the Cluef that it is not a good idea to use only volunteers. She further indicated that it malces sense to have the money first and do it right. Councilman Metze concurred with Mrs. Brinley and questioned City Manager Watenpaugh with regard to whether this station was a priority at this time. Mr. Watenpaugh indicated that if the fimding was available it would be great to have the statioq but it is not an emergency or priority at tlris time. Mr. Metze noted that half of the savings from the ball field have been allocated, but there are other payments due in eighteen months. He stressed that the reserves would be gone, if the fire station was funded for four yeazs. Mayor Pape indicated that there appeared to be a clear consensus to not proceed on this item. Councilman Alongi reiterated lus concem and indicated that the Council does not have a handle on the Community and missed the point about velucles. Mayor Pape suggested proceeding to Item No. 3. There was debate regazding the readiness to proceed. 3. Mayoral Election. (F:44.1) City Manager Watenpaugh indicated that tlus item was also requested by Councilman Alongi; and contemplated placement of the selection of Mayor on a ballot as opposed the to selection by the Council. He noted that the fiscal impact would be approximately $30,000. Councilman Alongi indicated that it is time the people choose theu Mayor and take that power away from the Council. He commented that if the City is trying to encourage other areas to join the City, ttris woutd be the first move indicating that the City is willing to go to the people for a decision and gives the Council a chance to exchange dollars in different districts. He stressed that the residents want to elect their Mayor, and the Council should put it on the ballot and let them make the decision. After substantial debate, Councilman Alongi was escorted from the meeting. Councilwoman Brinley indicated the reason Elsinore is not ready for an elected ~ Mayor is that the five represent the City as a whole, and when you start breaking ~- a city into districts, there is a tendency for each to pull for their own district. She indicated that the City is not ready for that, as it is still growing. She stressed the importance of having a Mayor and Council all working together and not setting one person apart from the others. Councilman Alongi reiterated that the Council should let the people decide. Councilwoman Brinley indicated, at tlus point, she would still like to see all members working together because they were elected by the same people. Councilman Alongi indicated that would not stop if the Mayor was elected separately. He stressed that the Council should ~ _ _ PAGE NINE - CITY COUNCIL STUDY SESSION MINUTES give the residents the opportunity to vote on it. Councilman Metze questioned the comment regarding Annexation and questioned who would want to annex the other azeas. He noted the newspaper article regarding the Fire Station and this issue and indicated that he has seen no large group of residents seriously concemed with either issue. He stressed that all of the Councilmembers were elected and indicated that he is comfortable that whoever is Mayor has at least been chosen by three Councilmembers. ~ Councilwoman Brinley indicated that with the cuirent situation the Council is all ~ working together and all in the same status, with the Mayor chosen by a ~y consensus of three. She suggested if the residents want to change the system ~ they can petition the change. Mayor Pro Tem Kelley commented that when a citizen votes for a Council candidate they are fully awaze that candidate could become Mayor and should not vote for someone they do not want to see as Mayor. She indicated that when you start running one posi6on above another, you inherently give the position more power. She noted what is happening in the City of Perris, as they are now having a power struggle. She further noted that costs tend to triple for the separate election and make it even more powerful. She suggested that tlus , , proposal is nonsense. Councilwoman Brinley concurred that it could create a power struggle. Mayor Pape noted that the bottom line is trying to divide the City into districts. He indicated that the reason districts aze formed is to create manageable areas to be represented and there is time to respond to constituent needs. He also indicated that Districts become somewhat competitive for available dollazs, and representation deteriorates at that point, as the focus becomes on small segments rather than the entire community. ADJOURNMENT The Study Session was adjourned at 5:30 p.m . I/~/f vt) VIN W. P E, MAYOR i CTTY OF LAKE ELSINORE ATTEST: VIC SAD, CITY CLERK CITY OF LAKE ELSINORE N t