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HomeMy WebLinkAbout04-28-1998 City Council MinutesMINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, APRIL 28, 1998 ,~*,~******~**,~*,~*,~**,~**~**~**~,~*~~****~*,~****,~**~******,~*~~*~******* CALL TO ORDER The Regular City Council Meeting was called to order by Mayor Pape at 7:07 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by City Attorney Leibold. INVOCATION None. ROLL CALL PRESENT: COUNCILMEMBERS: ALONGI, KELLEY, METZE, PAPE ABSENT: COUNCILMEMBERS: BRINLEY Also present were: City Manager Watenpaugh, City Attorney Leibold, Administrative Services Director Boone, Community Development Director Brady, Community Services Director Sapp, Fire Chief Seabert, Police Clrief Walsh, City Engineer O'Donnell, Recreation & Tourism Manager Edeibrock, Senior Planner Villa and City Clerk Kasad. PRESENTATIONS a. Proclamation - National Tourism Week. (F:122.1) Mayor Pape read and presented the National Tourism Week to Recreation & Tourism Manager Edelbrock. Ms. Edelbrock commented on the importance of tourism for the City, and noted that Americans in the United States spend over $1 billion per year on travel and tourism. She noted that the top three activities for tourists are shopping, outdoor activities and museums & historical sites; and compared those items to the attributes of Lake Elsinore. She thanked the Council for the recognition of this event and looked forward to future special events and activities. Mayor Pape concurred that Tourism is an important factor for the community. Linda Nanetti, resident of Cimarron Road, noted the Tourism Week proclamation, and indicated that she thinks it is great, but if there is going to be a tour bus it should also show people the negative aspects of the PAGE TWO - CITY COUNCIL MINUTES - APRIL 28, 1998 community. She concluded that Lake Elsinore is a great town of wluch she is an 18 year resident, but it has been mismanaged. b. Proclamation - Mental Health Month.(F:122.1) No one present for presentation. c. Presentafion - Cha_mber of Commerce Undate. (F:108.4) Tammy Fruin, representing the Chamber of Commerce, updated the Council on upcoming special events being: 1) the Mini-Grand Prix on June 6th, in connection with the Marketplace on Saturday and Sunday; 2) the pre-race bar-be-que on June 3rd at Roadrunner R.V. Park. 3) the Street fair on June 3 and 4 with over 100 vendors. 4) the May MiYer at Inland Valley Regional Medical Center, hosted with Primecare America, May 28th at 5:30 p.m.; 5) Golf Tournament in August. She fiirther updated the Council on the activities of the EDC Connections, advising that they received a grant of $35,000 to conduct a business survey. She noted that the Community Image program on Channel3 has been very well received. She indicated that the next show will start airing on Apri129th. She noted that the EDC Connections group continues to work on business retention and attraction and seminars. PUBLIC COMMENTS - AGENDIZED ITEMS Requests were received to address the following items and deferred to those discussions: Item Nos. 31 and 32. CONSENT CALENDAR ITEMS MOVED BY KELLEY, SECONDED BY METZE AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were received and ordered filed: a. Plam~ing Commission Meeting - April 1, 1998. (F:60.3) b. Design Review Committee Meeting - April l, 1998. (F:60.4) 2. Ratified Warrant List for April 15, 1998. (F:12.3) 3. Rejected and referred to Claims Adwiuistrator for handling, the Claim Against the City submitted by John Evans ( CL #98-14), (F:522) B INE IT M 31. Second Reading - Zone Change No. 98-2 - Kentucky Fried Clucken - Ordinance No. 1036. (F:172.2) ~, PAGE THREE - CITY COiJNCIL MINUTES - APRIL 28, 1998 City Manager Watenpaugh highlighted this item. Councilman Alongi indicated that he had checked on ttus matter and there was no problem with him voting on it, so he would not be abstaining. MOVED BY METZE, SECONDED BY KELLEY TO ADOPT ORDINANCE NO. 1036, UPON SECOND READING BY TITLE ONLY: ORDINANCE NO. 1036 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REZONING .62 (.61 NET~ ACRES LOCATED ON RIVERSIDE DRIVE BETWEEN SAINT CHARLES PLACE AND WALNUT DRIVE, FROM C-P (COMMERCIAL PARK DISTRICT) TO C-2 (GENERAL COMMERCIAL) ZONING DISTRICT (ZONE CHANGE NO. 98-2 - KENTUCKY FRIED CHICKEN). UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS: ALONGI, KELLEY, METZE, PAPE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BRINLEY ABSTAIN: COUNCILMEMBERS: NONE 32. Formation CFD 98-1 - Sumuierhill Public Improvements ~Overlay District FD 91- . (F22.3) City Manager Watenpaugh noted that there were representatives of the finance team present. He noted the previously approved financial strategy for the CFD's, and explained that this action is to set a public hearing by adoption of the Resolution of Intent. Chris Hyland, 15191 Wavecrest Drive, noted a news article regarding the City refinancing a baz~lcrupt tract. She commented that the public has heazd for the last year that the problems are not the fault of tlus Council, but the Council keeps adding more bond issues to the City. She indicated that the Council keeps taking money out of the General Fund to refinance the bonds. She fiuther indicated that this person has never come up with the money and never will; and she is sick and tired of paying for it. Don Hunt, Fulbright and Jaworski, bond disclosure counsel, clarified that this proposal is part of the restructuring plan approved in January of this year. He stressed that this overlay was requested by the developer as part of the PAGE FOUR - CITY COLTNCIL MINUTES - APRIL 28, 1998 settlement; and no financing will occur until the houses are built. He clarified that none of this is from the City General Fund; and none will be paid by the City of Lake Elsinore residents, aside from the property owners within this fract. Councilman Alongi inquired whether Mr. Kipp has deposited the appropriate funds. Mr. Hunt indicated that he has not to date. Councilman Alongi requested confirmation that no bonds will be issued until the complete project is built, and those who buy the homes will be the only ones responsible for the payments. Mr. Hunt indicated that there will be no bonds until there is a 3 to 1 value to lien ratio. He reiterated that all payments will be the obligations of the home buyers in the tract and the City has no obligation to pay for those bonds. Councilman Alongi expressed concern that the tract could be half developed at 3 to 1. Mr. Hunt indicated that it is a statewide standard, but the Council will ultimately decide if that ratio is sufficient. Councilman Alongi indicated that, with all due respect, if Mr. Gunn and Mr. Hunt had been here from the start, he would not be so skeptical. Mr. Hunt clarified that this action is necessary no matter who the developer or property owner is, and stressed that this was part of the overall restructuring plan. He reiterated that the final decision will still be up to the Council at the time of funding. Mayor Pape clarified that ttus action will only set the public hearing. Mr. Hunt concurred and indicated that it may be 3 to 5 years in the future, before this refinancing is possible. Mr. Pape reiterated that there would be no bonds until homes are built and people are living there; and only those who purchase homes within the tract are responsible for these bonds. Councilman Alongi again questioned if the homes to be built will only be assessed for their share of the bonds and not be required to absorb the costs for any unconstricted lots. Mr. Hunt confinned that they will only be responsible for their fair share. MOVED BY KELLEY, SECONDED BY ALONGI TO ADOPT THE RESOLUTION OF INTENTION NO. 98-7 TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 98-1 AND ADOPT THE RESOLUTION OF INTENTION NO 98-8 TO INCUR BONDED INDEBTEDNESS. Dick Knapp, elected City Treasurer, detailed the history of tlus properly and the payments which have been made to assist it. He suggested that former Mayor Washburn and former City Manager Molendyk worked for two years to put tlus package together, and questioned what they are getting out of this dea1. Mayor Pape reiterated that only those people who buy homes, will be responsible for the bonds, not the rest of the taxpayers. PAGE FIVE - CITY COiTNCIL MINUTES - APRIL 28, 1998 Councilman Metze stressed that tlus is not an additional$20 xnillion. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT. PUBLIC COMMENTS - NON-AGENDIZED ITEMS Dean Billings, noted his previous visits to the City Council and his plans for "Lake Us and More". He indicated that he would still like to implement the plan, but he does not have the financial resources. He addressed the need to filter the water coming down from Canyon Lake and indicated that he is tired of people putting the City down. He indicated that he would appreciate the Council obtaining complete laiowledge of Hemp farming and wheat juice for filtration. He stressed the potential uses of Hemp and suggested that people have been mislead by the Marijuana hype. He suggested that the residents come together as a community. Chris Hyland, 15191 Wavecrest, noted the upcoming election in June and expressed support for Judge Vic 5aradarian for the Superior Court, Tom Eicherd for District Attorney and Dr. Wiebe for County Superintendent of Schools. Dick Knapp, Elected City Treasurer, expanded on his discussion of CFD 98-1 and indicated that he did a lot of homework on this topic when he was elected in November of 1995. He suggested that the property should have been foreclosed on a long time ago. He stressed the amount of money paid out to assist this District. Mayor Pape indicated that this has already been discussed on the agenda and voted upon. Mr. Knapp stressed that there has been a lot of money spent on tlus property and a lot of money has been given to the ex-City Manager to work out a deal on this matter. He further indicated that the ex-Mayor is a consultant for this firm and people should know about it. C"ITY MANAGER COMMENTS No Comments. C'ITY OLTNCIL COMMENTS Mayor Pro Tem Kelley had no comments. Councilman Alongi commented on the following: 1. Expressed lus confusion regazding the responsibility for the bonds and asked why the matter was on the City Council Agenda and not the Public Finance Authority's Agenda. 2. Commented on calls he received regarding Weed Abatement and the dust problem. He stated that there is an ordinance regarding dust and the contractors are required to wet the lots prior to discing when it is windy. He noted that the public can call Code Enforcement to visit the sites and see if PAGE SIX - CITY COUNCIL MINUTES - APRIL 28, 1998 the people mowing or discing have City business licenses. He stated to lus knowledge there is only one contractor licensed to do Weed Abatement and that is Smith's Tractor Service. 3. Congratulated the County of Riverside for estending their RDA into Wildomaz and Lakeland Village areas. He explained that the County is going to a11ow the citizens of those areas to elect their own board. He noted that the County Supervisors ha~e the final say, however the citizens of the affected area are going to have input. 4. Reported on a fund raiser that he attended at Terra Cotta School, sponsored by severallocal churches for scholarslups for the youth. He cautioned the public that if they do not want a crimiual element in the community they should invest in the youth and the ability for them to gain an education. He encouraged the citizens in the community to contact one of the participating churches and send a check. 5. Noted a memo he received regarding slurry sealing. He stressed that the areas east of Main Street have never been touched; and noted that it is a low income area and is in desperate need. He stressed that the streets being slurry sealed are in areas with $100,000 homes; and expressed his disappointment that none of the older streets are being done. He indicated that it is the City's responsibility to do them as well. 6. Addressed the article in the newspaper regarding the 29 police officers in the City of Lake Elsinore and stated that he thought that included the Cluef, sergeants and investigators as well as patrol officers. He noted that Lake Elsinore still has the highest crime rate in the area. 7. Commented on the Study Session regarding the watershed that impacts the La1ce and noted that the storm-drains drain directly into the Lake. He stated that it is unfair to target the dairies, since so much of the water comes from local sources. He stated that we need to clean our own environment before we start pointing fingers at dairies since they have a hard enough time trying to make a living. 8. Addressed the CFD and stated that he voted to set the public hearing, however he is still trying to make up his mind. He noted that he understands what Mr. Gunn is doing, however he does not trust the developer. He stated that the developer has not put the money up and it is a waste of staff time. 9. Commented on the RDA and the losses that it is s611 experiencing. 10. Commented that the only reason that Main Street was done was because of the location of City Hall. He noted that if the City had built a new facility, it would have been behind the Community Center and it would ha~e been Graham Avenue if City Hall had been moved. He noted the Mayor's comments regazding the Bonding for the Stadium and stated that it is up to __ __ _ } \ PAGE SEVEN - CITY COiJNCIL MINUTES - APRIL 28, 1998 $30,000,000 and the two payments on those bonds is more than was stated in the paper. 11. He noted that Lake Elsinore is not in compliance with the law regarding affordable housing, since the funds in the RDA have been committed until the year 2005 to pay off the bonds. He stated that in the paper, the Finance Director stated that the City is keeping track and the amount will eventually be repaid to the affordable housing account. He noted that in the same article, the Mayor states that the reason affordable housing was not built was because there was enough low income housing in the City. He stated that actually what the City has is slums; like Nashland which contributes 30% of the crime in the City, as well as Joy Street and East of Main Street, Spring and Hea1d Streets. He noted USA Properties and the quality of the project. 12. Submitted documents and a letter from his attorney which addresses Mr. Molendyk's contract and instructed the City Clerk to have the infoimation available to the public and made part of the supporting records. He addressed several issues as follows: a. Vacation pay not acceptable according to the contract even through there is a supporting memo, it is still a breech of contract. b. Written documents do not support the position that Mr. Molendyk has the right to accumulate more than 24 days of vacation pay. He stated that Mr. Molendyk does not ha~e any written document giving him this right. c. Written documents do not support the position that Mr. Molendyk has the right to accumulate addirional vacation pay because he has demonstrated a good work attendance record pursuant to Section 3.8 of the Personnel Rule for employees of the City of Lake Elsinore. d. In conclusion in his opinion the written documentation supports the position that Mr. Molendyk was entitled to 24 days of vacation pay, no days of accrued sick leave and no days of accrued admiuistrative leave as of March 25, 1997; fiuther, Mr. Molendyk was under a duty to adequately inform each member of the City Council of all facts supporting any claim he made for vacation pay, accrued sick leave or accrued administrative leave in excess to those amounts stated above; He did not express an opinion as to whether or not the submission of the letter written by Mr. Molendyk and dated March 25, 1997, and the discussion that took place by reason of the submission and the subsequent City Council involvement violated provisions of the Brown Act; and gave a list of the documents he has submitted to the City Clerk. Councilman Alongi stated that Mr. Molendyk had a responsibility to the Council to keep them informed of the build up of his hours. He noted that PAGE EIGHT - CITY COiJNCIL MINUTES - APRIL 28, 1998 there have been competent Assistant City Managers on staff and the City would not have gone without supervision if Mr. Molendyk had taken vacation when he was supposed to. He further stated that this is a case of borderline, if not fraud, laiowing that lus contract did not allow him to accumulate hours. He stressed that there is no other document allowing Mr. Molendyk to accumulate more than any other employee of Lake Elsinore can, except for the Memo that was put together by Mayor Pape and Councilwoman Brinley and did not e~ose the other Councilmembers to the addirional agreement and there was no other resolution brought before Council to approve additional payment to Mr. Molendyk. He noted that not only did he accumulate more than he should have, he was also going to accumulate more as he went along and that is wages no matter how it is sliced. He further noted that any other contract that is done is brought before Council, as was Mr. Molendyk's contracts in the past and tlus memo was not. He stated that he will not stand for the City to be ripped-off by anyone. 13. Noted a comment made by the Mayor regarding the Theater and the fact that it is not doing as well as eapected. He stated that when the theater was proposed, the bank wrote the City and said it was not the proper place to locate the theater and stressed the need for a theater to sit in a shopping mall and act as an anchor in order to be a successful project. He further stated that is why the City had to subsidize the project. 14. Noted that Richazd Knapp is an elected official and should have the right to stand at the podium and state what he feels is wrong with the CFD's. He indicated that the Mayor abuses his authority and may some day be sued for removing someone from the podium, because he has no grounds to take that action. 15. He noted that if the Council agrees and pays Mr. Molendyk, then they can be held personally responsible for the funds that are expended. Councilman Metce commented on the following: 1. Commented on Councilman Alongi asking questions of tumself and getting the answers he wanted to get. 2. Complimented TMC and the Storm regarding the double header at the Stadium with the local lugh schools, and stated that it was a very nice community service. 3. Addressed the Municipal Advisory Committee for Cleveland Ridge and the statement that County services far surpass City services. He compared City services to County Services and suggested that in fact City services are superior. He asked the Advisory Committee to tell him what services are better. He addressed the comment regarding the people of Cleveland Ridge not being notified of the Sphere of Influence, however he noted that the Sphere of Influence has been in place in that area a lot longer than most of the _ _ __ _ ~ PAGE NINE - CITY COiJNCIL MINUTES - APRIL 28, 1998 people that live there. He noted that Lakeland Village is being set up as a RDA and they will have to sell bonds and Cleveland Ridge will be in debt. He asked the Advisory Committee "Who do they thivk they are", stressing that if the City were not cooperating, there would be no County children playing in City parks; the stop light on Central for the High School wluch is in the County. He asked why the MAC in Cleveland Ridge does not raise money to help support the Lake, since a large portion is in their area, however they complain and e~ect City cooperation without investing. Mayor Pape commented on the following: i. Stated that the comments regarding the articles in the newspaper were not quotes and therefore were not comments that he made, but were a part of the article from the Reporter's view. 2. Stated that Council took a vote and it was 4-0 to approve the agreement with Mr. Molendyk; and it was brought back to Council and a majority of Council continues to support the decision. He stated that in the future, prior to voting on an issue, maybe the Council should have the City Clerk check to be sure Councilman Alongi understands what he is voting on. CITY ATTORNEY COMMENTS 1. Announced that on May 11, 1998, 6:00 p.m. at the Cultural Center, 183 North South Main Street, there will be a scoping Session on the Alberhill Raceway Environmental Review Process to help prepare an Environmental Impact Report. She encouraged the public to attend. 2. Reminded Council that there is a Closed Session for the Public Finance Authority and they will have to adjourn to that Meeting. CLOSED SESSION None. ADJOURNMENT THE REGULAR CITY COUNCIL MEETING WAS ADJOURNED AT 8:20 P.M. A~EST: 2~~v(~~'/ ~ VICHI KASAD, CITY CLERK CITY OF LAKE ELSINORE GJ v W. PAT~E, MAYOR OF LAKE ELSINORE