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HomeMy WebLinkAbout06-23-1998 City Council MinutesMINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, JUNE 239 1998 k kxxxkkk *d:xx kaPxx kdex kxx kd: kxk kx kx kd: �':xkxk kx kx k *kkr', k *xk *k:F at it x' at atx k9: a'e aF x'x CALL TO ORDER The Regular City Council Meeting was called to order by Mayor Pape at 7:04 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by City Manager Watenpaugh. INVOCATION None. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS ALONGI, BRINLEY, KELLEY,PAPE METZE (Councilman Metze Arrived at 7:17 p.m.) 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 chief Walsh Senior Planner Villa, Assistant to the City Manager Best, City Engineer O'Donnell, and City Clerk Kasad. PRESENTATIONS a. Proclamation - Park & Recreation Month. (F:122.1) Mayor Pape read and presented the Proclamation to Assistant to the City Manager Best on behalf of Community Services Director Sapp. PUBLIC COMMENTS - AGENDIZED ITEMS Requests were received to address the following items: Item Nos. 3, 4, 5, 21, 22 and 23. PAGE TWO — CITY COUNCIL MINUTES — JUNE 239 1998 CONSENT CALENDAR ITEMS The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 3, 4, 5, 7, 8 and 9. MOVED BY BRINLEY, SECONDED BY KELLEY 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 - May 26, 1998. (17:44.4) b. Adjourned City Council Meeting - June 3, 1998. C. City Council Study Session - June 5, 1998. The following Minutes were received and ordered filed: d. Planning Commission Meeting - May 6, 1998. (17:60.3) e. Design Review Committee Meeting - May 6, 1998. (17:60.4) f. Public Scoping Meeting - June 8, 1998. (F:151.1) 2. Ratified Warrant List for June 15, 1998. (F: 12.3) 6. Accepted Notice of Completion for McVicker Canyon Debris Basin and Line `B -1" Channel (Stage 4) - Greg Harris Construction; and authorized staff to record the Notice. (17:22.3) 10. Approved Public Hearing date of July 28, 1998, for the following: a. Collection of delinquent refuse service fees of customers with unpaid balances to be collected on the annual property tax roll. (17:163.1) PUBLIC HEARING 21. Community Facilities District 98 -1 - Summerhill Improvements (Overlay District CFD 91 -2) - Resolution Nos. 98 -15 and 98 -16. (F:22.3) City Manager Watenpaugh noted the efforts to develop a financial work out plan and the relationship of those efforts to this item. Don Hunt, Bond Counsel, highlighted this item and noted that all of the land involved is held by Abaccy. He explained that the purpose of this District is to cover a portion of the delinquent taxes not previously collected, and that the primary beneficiary of the District will be the PAGE THREE — CITY COUNCIL MINUTES — JUNE 239 1998 bondholders. Mayor Pape opened the public hearing at 7:10 p.m., asking those persons interested in this item to speak. The following person spoke: Winifred Zieler, 31662 Willow View Place, resident of Summerhill, noted the paperwork she received from Friedman Homes, and indicated that she bought the house for cash and ended up with $60,000 in Mello -Roos fees. She further noted that the covenants for Summerhill run with the land until 2014, with the potential for a 10 year automatic extension. She also noted water related assessments and suggested that there is a lot of fraud and dishonesty. She indicated that she does not have the original paperwork or disclosures on the house, but does have copies of documents from Friedman Homes. She further indicated that she will end up paying $180,000 for the house, even though she paid cash. She expressed uncertainty as to whether her deed is even valid. Hearing no additional requests to speak, the public hearing was closed at 7:15 p.m. Mayor Pape stressed that this item would have no impact on the current homeowners. Mr. Hunt reiterated that this District does not include any of the existing single - family homes. He also noted that with regard to receiving documents, the lien for special taxes is recorded with the Recorder's Office when the tax is levied and recorded on every included lot as public record. He indicated that State law requires written disclosures and the title policy will always have a reference with regard to the tax lien. He further indicated that the City has done everything properly, but there may be a cause of action against the seller if they did not comply with the requirements. Mayor Pape noted that Mrs. Zieler has discussed this before, and the previous City Attorney volunteered time to assist her. He commented that his has been an ongoing problem for the Zieler Family, but this action has no impact on the private property owners. Councilman Alongi inquired whether Mr. Kipp has deposited the required funds. Mr. Hunt indicated that he had not yet deposited, but this action is to the benefit of the bondholders, not Mr. Kipp. He stressed that this is an advantageous action for the bondholders and the City to have the bonds paid off. Councilman Alongi inquired whether the Lake Elsinore Management Authority would be the underwriter for these bonds. Mr. Hunt indicated that the Public Finance Authority would underwrite the bonds, and noted that there is sufficient value to support the issue. He clarified that these bonds would be anticipated to be 2 or 3 years down the road; as they will not be issued on raw land, only on occupied homes. He indicated that this issuance is being put together differently from the others. Councilman Alongi addressed Mrs. Zieler and indicated that when people buy homes a lot of documents are overlooked due to lack of knowledge PAGE FOUR — CITY COUNCIL MINUTES — JUNE 239 1998 regarding CFD's, but most people who sell homes do not emphasize those points either. He suggested that while the State law requires disclosures, people need to stay aware and informed. He concurred that this was a very confusing and costly situation, which could cause people to loose their homes. He suggested that the developers need to have the funds up front to provide necessary improvements. Councilwoman Brinley noted past discussions of this concern and suggested that future buyers receive better explanations and disclosures. She suggested requiring that the disclosures be filed with the City to protect the residents and new homeowners. She thanked Mr. Hunt for his time and efforts to protect the City's trustees. Councilman Metze requested clarification of the time frame for this bond issuance. Mr. Hunt indicated that it would be approximately three years, or at the time the homes are built. Councilman Metze inquired whether the matter would be back to Council before there is further action. Mr. Hunt confirmed, noting that this action creates the District for later use, if bonds are needed. MOVED BY BRINLEY, SECONDED BY METZE AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BOND COUNSEL REPORT AND ADOPT RESOLUTION NOS. 98 -15 AND 98 -16. METZE ARRIVED AT 7:17 P.M. RESOLUTION NO. 98 -15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, DETERMINING THE VALIDITY OF PRIOR PROCEEDINGS, ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 98 -19 AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 98-1, AND ESTABLISHING AN APPROPRIATIONS LIMIT. RESOLUTION NO. 98 -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING ON BEHALF OF COMMUNITY FACILITIES DISTRICT NO. 98 -1, CALLING A SPECIAL ELECTION. 22. 1998 -99 City Wide Annual Budget — Resolution No. 98 -17 and RDA Resolution No. 98 -1. (F:30.1) City Manager Watenpaugh noted that this item was heard at a Study Session on June 5, 1998, and the changes presented are the items that have been modified since the Study Session, as well as services added. He explained that in the staff report he has listed, page by page, the changes that he suggests for the Council's Budget. He recommended that the City retain membership with the organizations the City is presently involved in due to their contributions to the City and it's economic development. He gave PAGE FIVE — CITY COUNCIL MINUTES — JUNE 239 1998 overview of the items. listed in the staff report as follows: Page 12 — City Council The following general memberships have been included within the City Council's budget. WRCOG WETIP League of California Cities CALED IEEP IETC Total Page 17 —City Manager City Economic Development Local EDC Regional Economic Development $4,000 1,530 4,500 400 7,000 250 $17,680 ($10,000 increase) $15,000 5,000 5,000 added per Council request Page 34 — Public Works Facilities Maintenance - Transferred from Senior Center $6,500 Page 35 — Vehicle & Equipment Repair Addition of three leased vehicles for Maintenance — full size 4X4 pickups. Auction three Celebrity vehicles and three 5 -10 pickups. Page 37 — Community Center Addition of operating expenses for reopening the Community Center $47,000 (Capital funds budgeted in Capital Budget from Park In -Lieu Fees). Park -in -Lieu Capital Funds — Community Center Renovation $121,930 approved by Council Page 39 — Senior Center Transferred to Public Works Facility Maintenance $6,500 reduction Added $20,000 from Park -in -Lieu Capital Funds for tree lighting in Downtown Core Blocks (Main Street). PAGE SIX — CITY COUNCIL MINUTES — JUNE 23, 1998 Authorized additional staff, per page 1 summary of Budgets, plus additional Maintenance Worker I for Campground. City Manager Watenpaugh gave an overview of the Capital Projects Budget and explained the proposed projects. City Manager Watenpaugh presented a Summary of the Budget as follows: General Fund $9,281,300 New: '/z time Code En£ ( =1 full time) h time graffiti 1 full time Streets Maint. 1 full time Associate Engineer Part-time — Community Center Economic Development Redevelopment Agency $6,990,000 Lake Operations $349,700 TMC 150,000 Campground 50,000 LLMD CIP $549,400 $1,157,000 $2,581,930 TOTAL CITY BUDGETS $20,559,930 $8,836,900 +443,400 $ 24,000 20,000 34,000 68,000 47,000 20,000 2311000 $7,745,500 (775,500) $516,200 200,000 (166,500) $716,200 $1,157,000 -0- $2,581,9301 -0- Expense $9,854,900 231,400 7,745,500 (755,500) 716,200 -0- 1 ,157,000 2,581,930 $22,055,530 (690,600) Revenue General Fund $9,281,300 RDA 6,990,000 Lake Operations & Campground 549,700 LLMD 1,1571000 CIP 2.581.930 $20,559,930 $8,836,900 +443,400 $ 24,000 20,000 34,000 68,000 47,000 20,000 2311000 $7,745,500 (775,500) $516,200 200,000 (166,500) $716,200 $1,157,000 -0- $2,581,9301 -0- Expense $9,854,900 231,400 7,745,500 (755,500) 716,200 -0- 1 ,157,000 2,581,930 $22,055,530 (690,600) PAGE SEVEN — CITY COUNCIL MINUTES — JUNE 23, 1998 Reserve Fund Projected Balance June 30 "' 1999 $1,416,400 Items reduced from Reserve Fund 1997/98 -Parks $211,000 - Spectrum Settlement 127,500 - Stadium 108,000 - Attorney's Fees 230,000 -Law Enforcement Contract 150,000 $826,500 Mayor Pape opened the public hearing at 7:37 p.m. and asked those persons interested in speaking to do so. Dale Hite, 155 N. Kellogg Street, commented on the improvement in the budget, but indicated that he felt the Council should spend the money on Public Safety and less on other things. He stated that Council has the appropriate funding for a Fire Station and he feels that the City should proceed. He asked that Council take the safety of the citizens into consideration first. Mayor Pape asked if anyone else wished to speak on the issue, hearing no one, the public hearing was closed at 7:40 p.m. Mayor Pro Tern Kelley asked what the revenue increase has been for this year. City Manager Watenpaugh stated that the increase was a little over $900,000. Mayor Pro Tern Kelley questioned the amount saved with the lease of the Stadium. City Manager Watenpaugh stated that the City has eliminated $500,000 in expenditures. Mayor Pro Tem Kelley noted that there was a Study Session regarding the budget and the Council has gone through the budget line by line. She further noted that the Capital Projects are not from the General Funds, but rather from other funding sources. She stated that she is delighted that because of strict budgeting, Council is able to add the Community Center to this year's budget. She explained that there are a lot of positive things in the budget and noted that the City is bringing back the Graffiti Program, restoring partial use of the Campground and bringing on another Code Enforcement Officer. She stated that there is a light at the end of the tunnel and next year she hopes it will be even better. Councilwoman Brinley concurred with Mayor Pro Tern Kelley and expressed her pleasure with the additions that were made in the budget. She noted that the Redevelopment Agency is getting back to the point where it is possible to bring the Agency back into the black. She made note of the Redevelopment Agency Main Street Project and the lights that were placed in the trees to add to the atmosphere of the Downtown Area. She asked that PAGE EIGHT — CITY COUNCIL MINUTES — JUNE 239 1998 Council consider allocation of $20,000 to replace the lights in the trees on Main Street. She gave an overview of the available funds in the budget and noted that she felt that this would enhance the area. She further noted that it is much nicer to approach the budget this year by adding items to the budget, instead of deleting items. She highlighted the funds that are in the budget for Public Safety and indicated that she felt that there was considerable consideration given to that area. Councilman Alongi stated that there were more important things for RDA money then putting lights back into the trees on Main Street. He stated that he felt that the League of California Cities and WRCOG were important to the City, however he felt that the money allocated for the other organizations could better be spent for sidewalks. He noted that $20,000 was allocated for EDC, and he felt that this could be cut in half. He further noted the request for three 4x4 pickups and explained that there is no need for that type of vehicle in Lake Elsinore. He stressed his opposition to the previously purchased 4x4 pickup and stated that the City did not need more than one of that type of vehicle. He indicated that the funds could be better spent elsewhere. He noted that it appears that the School District will start charging children to ride the school buses and it is the City's obligation to have better sidewalks leading to the schools, especially for the lower grades. He stated his pleasure in reopening the Community Center, but felt that the money from the Senior Center should be spent on sidewalks and the $20,000 that Councilwoman Brinley suggested for lighting would be better applied to sidewalks, as well as handicap ramps. He noted that there are a lot of areas in the City without sidewalks such as Lakeshore Drive, and Sumner Avenue to name a few. He explained that sidewalks should come first and then the Council can look at the "gingerbread" later. Councilman Alongi stated that he felt staff and City Manager Watenpaugh did a good job with the budget, considering the handicap that they had to work with caused from the Lake, _Stadium and other projects that drained City funds. He noted that the Council should save every dollar they can and put it where it can do the most good. He further noted problems with potholes, as well as streets that have not been paved in 25 years or snore. He commented on the funds that are spent on the Capital Improvement Projects and noted that the streets in the older part of the City are ignored every time, and indicated that therefore he would be voting against the page that lists Capital Improvement Projects. Councilman Metze thanked staff and the City Manager for listening to Council and addressing the suggestions. He stressed that what is being presented is not found money, rather it is due to an aggressive economic plan. He noted that the businesspersons on Main Street are pleased with the City and Chamber and the trend in the economy. He stated that he feels that the tree lights are important to Main Street to add to the effect that is trying to be maintained and would benefit the businesses, as well as protecting the PAGE NINE — CITY COUNCIL MINUTES — JUNE 239 1998 investment in the Downtown area. Mayor Pape noted the section of the budget that addresses Memberships to Organizations and explained that although this shows an increase, these are not new items. He explained that the City has always been a member of the listed organizations, however they were not itemized in the budget, but were paid by other sources within the budget. Mayor Pape felt that this should be addressed as a separate item and the City should continue to be members. He further explained the allocation for the local EDC, since they have been very aggressive and contributed to the local economy which is a direct benefit to the City. He stated that he would like to see the City support regional economic development because as the economy improves this will serve to attract more businesses to our City. He noted that the money taken from the Senior Center and placed in Public Works is a bookkeeping item and the money will still be spent on the same thing. Mayor Pape addressed Capital Improvement Projects and noted the roads which will be improved, as well as signalization in the City. Mayor Pape commented on the trucks and explained that the old trucks will be taken to auction and offset some of the cost with the revenue they generate at the sale. He noted that by adding an additional Code Enforcement Officer it will be possible to have coverage on weekends and that will help the City as well. He noted that the sales tax revenue is the largest source of revenue for the City, and explained the State's past action regarding property taxes and the fact that the majority of the money is now given to the Schools; therefore the sales tax revenue is vital to the City. Councilwoman Brinley explained the use of park fees and the restricted uses. MOVED BY BRINLEY, SECONDED BY METZE AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSNTING VOTE, TO APPROVE THE CITY COUNCIL /REDEVELOPMENT AGENCY BUDGET AS CORRECTED, INCLUDING THE CAPITAL PROJECTS BUDGET WITH AMENDMENTS TO PARK IN LIEU FEES OF $209000 TO BE SPENT ON LIGHTS IN THE TREES ON MAIN STREET AND $59000 TO BE ALLOCATED TO REGIONAL ECONOMIC DEVELOPMENT AND ADOPTION OF RESOLUTION NO. 98-17 AS FOLLOWS: RESOLUTION NO. 98-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSLINORE, CALIFORNIA, APPROVING AND ADOPTING THE BUDGET FOR FISCAL YEAR 1998/99 AND APPROPRIATING THE FUNDS NECESSARY TO MEET THE EXPENDIUTRES SET FORTH THEREIN. PAGE TEN — CITY COUNCIL MINUTES — JUNE 239 1998 RDA RESOLUTION NO. 98 -1 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APAPROVING TAND ADOPTING THE BUDGET FOR FISCAL YEAR 1998/99 AND APPROPRIATING THE FUNDS NECESSARY TO MEET THE EXPENDITURES SET FORTH THEREIN. 23. General Plan Amendment No. 98 -1 and Zone Change 98 -1 Assessor's Parcel Number 373 - 071 -018. (F:83.2)(X:172.2) _ City Manager Watenpaugh highlighted this item. Mayor Pape opened the Public Hearing at 8:05 p.m., asking those persons interested in this item to speak. Hearing no one, the Public Hearing was closed at 8:05 p.m. Councilman Alongi expressed concern that the City reduces the zoning in areas such as this, when there is a need for affordable housing. He indicated that the City is slowly, but surely phasing out any type of multiple family housing in the City. He concurred that property owners should be able to use their property as they choose, but stressed that the City has an obligation to provide housing for all income levels. He expressed disappointment with the loss of multi- family housing sites; and indicated that this Council and the previous Council have removed those opportunities. Mayor Pape indicated that this is a prime area for commercial development and it will provide jobs for area residents; resulting in a positive move for the City. Councilwoman Brinley noted the possibility of an auto dealership, which would be compatible with the other development in the area, and stressed that this would provide commercial business and jobs, and create sales tax dollars and property tax dollars. She stressed the need to go out and aggressively encourage this type of development to provide jobs. Mayor Pro Tern Kelley indicated that she has no problem with this request, as Commercial zoning is more compatible with the surrounding area. She responded positively to the fact that there is interest in the property by an auto dealership. MOVED BY METZE, SECONDED BY KELLEY TO APPROVE MITIGATED NEGATIVE DECLARATION NO. 98 -1, APPROVE GENERAL PLAN AMENDMENT NO. 98 -1, ADOPT RESOLUTION NO. 98 -18, APPROVE ZONE CHANGE NO. 98 -1 AND ADOPT ORDINANCE NO. 1038 UPON FIRST READING BY TITLE ONLY, BASED ON THE FOLLOWING FINDINGS: PAGE ELEVEN - CITY COUNCIL MINUTES — JUNE 239 1998 Findings — General Plan Amendment 98 -1 The proposed General Plan Amendment will not be: a) detrimental to the health, safety, comfort or general` welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City; or b) injurious to the property or improvements in the neighborhood or within the City. 2. The proposed General Plan Amendment will permit reasonable development of the area consistent with its constraints and will make the area more compatible with adjacent properties. 3. The proposed General Plan Amendment would establish a land use density and usage more in character with the subject property's location, access and constraints. 4. The proposed General Plan Amendment will not have a significant effect on the environment. Findings —Zone Change 98 -1 The proposed zone change will not be: a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City; or b) injurious to property or improvements in the neighborhood or within the City. 2. The proposed action will be consistent with the Goals, Objectives and Policies of the General Plan and the standards established in the Municipal Code. This project will not have a significant impact on the environment. RESOLUTION NO. 98-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, RECOMMENDING TO THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ADOPTION OF GENERAL PLAN AMENDMENT 98 -1 TO CHANGE THE LAND USE DESIGNATION OF APN 373 - 071 -018 FROM MEDIUM HIGH DENSITY RESIDENTIAL TO GENERAL COMMERCIAL. ORDINANCE NO. 1038 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, CHANGING THE ZONING OF PAGE TWELVE — CITY COUNCIL MINUTES — JUNE 239 1998 9.11 GROSS ACRES ALONG FRANKLIN STREET FROM R -3 (HIGH DENSITY RESIDENTIAL ZONING) TO C -2 (GENERAL. COMMERCIAL) - ZONE CHANGE NO. 98 -1. UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS: ALONGI, BRINLEY, KELLEY, METZE, PAPE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE BUSINESS ITEMS 31. Lake Elsinore Series A Bonds /Tolling_ Agreement. (F:126.5) City Manager Watenpaugh highlighted this item and explained the restructuring of the CFD's to get the current default back in order. He explained that this action helps to avoid litigation. Mr. Hunt confirmed Mr. Watenpaugh's explanation and indicated that this agreement is a very positive sign for the City, as initially the trustee was opposed to this action, but now supports the proposal and recommended that the bondholders go along with the agreement. He explained that the agreement protects the rights of the bondholders and the City, with no one filing litigation while the restructuring proceeds. He stressed that this is a very positive move with no down side. MOVED BY KELLEY, SECONDED_ BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO APPROVE AND ENTER INTO THE TOLLING AGREEMENT WITH BNY WESTERN TRUST COMPANY OF CALIFORNIA. 32. Community Facilities District —Goals and Policy Statement. (F:22.1) City Manager Watenpaugh explained that the City has not formed a new Community Facilities District since 1994, however the City has restructured some existing CFDs. He noted that State Legislation was enacted in January 1, 1994, which required adoption of local Goals and Policies when establishing new districts. He noted that as part of the agreement to restructure a new CFD for the old Summerhill Tract, the City is required to develop a Goals and Policy Statement for Council's review and consideration. He explained that the Council can modify or change it should something not work the way they anticipated it to work. PAGE THIRTEEN CITY COUNCIL MINUTES — JUNE 239 1998 Don Hunt, representing Fullbright and Jaworski, Bond Counsel, stressed that tonight or anytime in the future the Council is free at their discretion to amend or repeal these Goals and Policies and adopt new ones. He noted that if Council desires to change any item the changes could be made by his firm. City Manager Watenpaugh asked Council to disregard pages 11 and 12 of the report as presented. Councilman Metze stated that he would like some changes as follow: Page two — III - Eligible Public Facilities He explained that he would like to see a second category which discourages the use of bond money for Parks, Government facilities and Recreation facilities, including golf courses. Page 3 —V —Disclosure Requirements He would like to seethe seller give the buyer the option to add the cost of the Community Facilities District to the cost of the house or to pay it up front. This gives the buyer the ability to make a decision and it would be part of the disclosure. Councilwoman Brinley asked if this would be the proper time, after the disclosure is signed, that a copy be given to the City for file. Councilman Metze stated that rather than having all that paper on file, the City Manager would be able to acquire a disclosure statement on any given piece of property upon demand. This would relieve staff from being responsible for that documentation. He stated that the disclosure statement should define the purpose of the fee and would clarify that the money would go for the construction of the facility, not the staffing and maintenance. Councilman Metze further requested amendment of the policy as follows: He suggested having the Section that addresses the ability to enact an annual increase of 2% be changed to 1 % as a preference of the City. He noted that the State of California allows 2% and the City can set a tighter limitation on this amount. Mr. Hunt clarified this item. Councilman Metze explained that the problems the residents have experienced with Community Facilities Districts are because they were not handled properly through disclosure. Councilwoman Brinley stated that she felt the disclosure statements should be filed with the City so that any problem can be taken care of in a timely manner and the problem can be addressed immediately instead of making the homeowner wait. PAGE FOURTEEN — CITY COUNCIL MINUTES — JUNE 23, 1998 Councilman Metze stated that there was a period of time that Community Facilities Districts were unpopular, however with the economy picking up they are being formed at a greater rate. He noted that with his suggestions, it will take special consideration to have anything other than infrastructure placed into a CFD and that protects the residents. City Manager Watenpaugh requested clarification of the requirement for the City to have copies of the signed Disclosure Statements. Councilman Metze stated that he did not feel this was necessary, however it could change if the information is not made available in a timely manner. Mayor Pape stated that he felt it was inappropriate for the City to become involved in private transactions. He explained that if someone is buying a house, it is up to the buyer to understand the deal that they are involving themselves in and the paperwork that they are signing; and if they don't, they need to consult an attorney. He stated that he doesn't know if the City should act as big brother and stand looking over someone's shoulder to question whether the buyer understands what they are signing, serving as a backup for them. City Manager Watenpaugh stated that he understands the concern of Council, however in Section V., first paragraph at the end it states: "Such disclosure shall include home buyer notifications requiring signature prior to home purchases, as well as methods to notify subsequent home purchasers." He stated that he did not know how the City could accomplish this for subsequent homebuyers. Mayor Pro Tern Kelley complimented Mr. Hunt for putting together such a inclusive policy package and agreed with Councilman Metze regarding the Parks, Governmental facilities, Libraries, Police and fire protection facilities, and Recreation facilities, including golf courses and placing them in a separate category. She explained that she found the Disclosure Requirements on page three very complete and agreed with Mayor Pape that it is not the City's decision nor burden to collect signed documents for every household in the community. She stated that this can be handled on a case by case basis. Councilman Metze asked how we enforce the statement: "The applicant will be required to demonstrate, to the satisfaction of the City, that there will be full disclosure..." Councilman Alongi stated that it all depends on what is meant by "demonstrate ". He noted that people are more aware of the meaning of a Mello -Roos and Community Facilities Districts; and he feels that the Council is right, that the City has. no business interfering in business between the buyer and seller. He stated that he would like to see that it is PAGE FIFTEEN — CITY COUNCIL MINUTES — JUNE 239 1998 fully explained to the buyer what the Mello -Roos is and the assessments on those properties, however if the City Manager gets a complaint he can get documentation from the County Hall of Records. He noted that it is hard enough time keeping track of the City, let alone all the houses that will be sold in the community. He asked if 1,000 houses were planned and only 300 were built, would the 300 homes share in the total of the assessment of the Mello -Roos. He asked Mr. Hunt to clarify. Mr. Hunt explained that at the time the Mello -Roos is established, part of the proceeding is to establish the maximum special tax that can be levied with respect to the property. He noted that the 300 homeowners can only share in the overall cost of the extended maximum special tax. He further explained that normally it's structured so that public improvements will not be put in at once, but rather over a period of time as the construction of the District was taking place. He stated that this is done to protect 300 homes from having to pay the maximum. Councilman Alongi noted that is the problem that has been experienced in Tuscany Hills and is the reason why Council is taking this action. He noted that the reason for placing items listed on page three of the Policy on a Mello -Roos is because the bank does not recognize those as debts, as they only look at the selling price. They do not look at the Mello - Roos or the Community Facilities District, therefore when the City asks the Developer to withdraw the cost of Parks, Government Facilities, Libraries, Police and fire protection facilities, Recreation facilities, and golf courses from the CFD, they won't do it because the Developer must increase the price of the house to meet the cost and would not be able to sell it easily. He stated the reason for a CFD is to reduce the cost of the house to enable the Developer to sell it, however the owner does not realize that the cost will appear on their taxes. He stated that he feels that Council is getting into an area where they do not belong and it is buyer beware. He stated that it is none of his business what the assessments are as long as the facilities are there. That cost is between the buyer and seller and not the City. City Manager Watenpaugh clarified the existing CFDs and how they are structured. Councilman Metze stated that possibly the Tuscany Hills situation could have been avoided if the Developer had some of his own money tied up in the project. He noted that Friedman found it easy to just walk away since he had none of his own money tied up in the project. He stated that he would like some way to work with the property owner to help them. He asked Mr. Hunt if the City would be responsible to prove that the developer demonstrated to the City the disclosure if a buyer takes the City to court. Mr. Hall stated that this issue would be addressed at the time of financing by the developer and the developer would be required to indemnify the City. City Manager Watenpaugh stated that staff will do what they can, however PAGE SIXTEEN — CITY COUNCIL MINUTES — JUNE 239 1998 there are limits to what staff can accomplish. Councilman Metze stated that the requirement for a down payment insures that the buyer invests his own money in the home and the same rule applies if Council requires the developer to assist in providing facilities. He noted that the Developer will have invested some of his own money and will not find it easy to file bankruptcy and walls away as they have done with a bond that they have no money invested in. He stated that it is not that the items are eliminated, however they are discouraged. Mr. Hunt explained that the State has laws and enforcement procedures and he felt that it would be cost prohibitive for the City to try to enforce the disclosure. He stated that his recommendation would be to contractually acquire the agreement rather than enforce it. Mayor Pro Tern Kelley stated that this does not exclude the City from coming to the aid of someone who didn't understand the situation. She stated that she felt that the disclosure requirements were quite adequate and if someone needs some help this does not prevent the City from trying to help. Councilwoman Brinley asked how to get the Developer to go out and do what is needed if it is not part of a CFD. Councilman Metze stated that the buyer does not have to pay the fees that are discouraged, however the Developer must see that they are paid. Councilwoman Brinley noted such things as Police and Fire need to remain on the list because they really do need to be funded. Councilman Metze stated they would be there, however what he is saying is just not by a bond. There was general discussion in regard to how the developer provides facilities and through what source. Mayor Pro Tern Kelley explained that Council hears each development on a case by case basis and it can be decided at that time what will be allowed and what will not. Councilwoman Brinley suggested leaving the Goals and Policies as presented, however when a developer appears before the Planning Commission, they have the option of using the verbiage the Mayor used. Councilman Metze stated that if it is not part of the policy, then the City is singling out one developer over another. Councilman Alongi stated that if the City involves itself in peoples private business, it will get into trouble. He explained that the City is not there to bargain for individual rights. He further explained that the Developer does have money in a project since when they apply for a construction loan they PAGE SEVENTEEN — CITY COUNCIL MINUTES — JUNE 239 1998 have then made a major investment. He asked what would happen if only 80% of the facilities can be bonded, what happens if the Developer goes broke and the facilities are not completed. He explained that even though he disagrees with the use of bonds, at least the City would have the money up front to construct Government facilities. However if the developer, without the benefit of bonds, built 400 out of 1000 homes and went broke there would be no construction of Government facilities and in order to have Government facilities, the City would have to foot the bill. Councilman Alongi stated that cities should not get involved in the construction of any residential or commercial project. He noted that the City's job is to provide the permits and requirements to build the project. He stated that the City will receive no more than the property tax which does not cover the services required for the area. He stated that Mr. Hunt has done a good job of putting this Goals and Policies together and Council should listen to them since that is why the City pays them a great deal of money to guide the Council. Councilman Metze stated that he spoke with Mr. Hunt prior to the meeting and clarified that Mr. Hunt felt that the issues he addressed were good issues. Mr. Hunt stated that he had informed Councilman Metze that it was not inappropriate for City Council to state that it was their policy to require a developer to have their own equity in a project and get the support of financing, but it would be at the discretion of the Council to use all or any of the policy. He noted that it was prepared for Council consideration and it is Council's decision to change however they choose. There was general discussion in regard to the use of Community Facilities Districts and Mello -Roos. MOVED BY KELLEY, SECONDED BY BRINLEY TO APPROVE AND ADOPT THE STATEMENT OF COMMUNITY FACILITIES DISTRICT — GOALS AND POLICY WITH THE FOLLOWING AMENDMENTS: Page 2 — III — Eligible Public Facilities. The addition of a second category that discourages the use of bond money for Parks, Government facilities, Libraries, Police and Fire Protection facilities and Recreation facilities, including golf courses. Page 3 — V — Disclosure Requirements The seller gives the buyer the option to add the cost of the Community Facilities to the cost of the house or to pay it up front; giving the buyer the ability to make a decision. And add a section that addresses the ability to enact an annual raise of PAGE EIGHTEEN — CITY COUNCIL MINUTES — JUNE 23,1998 2% be changed to 1% as a preference of the City. He noted that the State of California allows 2% and the City can set a tighter limitation on this amount. Mayor Pro Tem Kelley stated that she felt Mr. Hunt's comments about developer equity are most appropriate and involves the Council as much as it should be. Councilwoman Brinley suggested that at some later date a Study Session should be set to review the Goals and Policy after Council has had the opportunity to work with them for this Community Facilities District. Councilman Alongi clarified equity. THE FOREGOING MOTION WAS APPROVED BY A VOTE OF 4 TO 1 WITH METZE CASTING THE DISSENTING VOTE. 33. Planning Commission Appointments. (F:60.2) Mayor Pape noted that there are two terms expiring on the Planning Commission, for which three applications were received. He indicated that the two current commissioners have submitted applications, in addition to Robert Magee. He further indicated that he met with Mr. Magee this morning and his is a very good applicant with good qualifications, however, the existing Commissioners have_ done a good job for the City. He recommended the reappointment of Commissioners Al Wilsey and Robert Schiffner to full terms continuing to June, 2002. MOVED BY PAPE, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO REAPPOINT COMMISSIONERS WILSEY AND SCHIFFNER TO FULL PLANNING COMMISSION TERMS CONTINUING TO JUNE, 2002. THE CITY COUNCIL MEETING WAS RECESSED AT 8:50 P.M. THE CITY COUNCIL MEETING RECONVENED AT 9:00 P.M. ITEMS PULLED FROM CONSENT CALENDAR 3 Award of Contract - Mission Trail Pavement Rehabilitation Project. - R.J. Noble Company - $349,645. (F:15.62) City Manager Watenpaugh explained this item and requested authorization to award the contract to the low bidder. Councilman Alongi indicated that he pulled this item to note that this is the PAGE NINETEEN — CITY COUNCIL MINUTES — JUNE 239 1998 third time Mission Trail has been done; and while he understands the location, there have been problems in the past. He noted a past project where negotiations resulted in the City and EVMWD splitting the cost in half. He indicated that he did not disagree that work is needed, but there are other streets which have had no asphalt in 4o years. He noted that with this project it will total nearly $1 million in expenditures since 1992. He opposed this expenditure. Linda Nanetti, Cimarron Road, addressed a newspaper article concerning the City's debt and the Redevelopment Agency. She questioned the use of R.J. Noble, and inquired if they would be utilizing local residents to work on the project. She suggested that a lot of the construction, pavement and redevelopment improvements could be handled by many of the residents who are currently out of work. City Attorney Leibold rioted that State law requires competitive bidding and acceptance of the lowest responsible bidder. She explained that the City cannot dictate how the bidders operate their business, but can encourage the use of local residents. City Manager Watenpaugh concurred with the City Attorney, and commented that although there has been past discussion to request local projects try to hire local people, there is no requirement that they comply. MOVED BY BRINLEY, SECONDED BY METZE AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO ACCEPT THE BID OF R.J. NOBLE COMPANY AND AWARD THE CONTRACT IN THE AMOUNT OF $349,645 FOR MISSION TRAIL PAVEMENT REHABILITATION. 4. Award of Contract - Fiscal Year 1997 -98 SB821 Sidewalk & Pedestrian Ramp Improvements - EGN Construction, Inc. - $47,950. (F: 146.2) City Manager Watenpaugh highlighted this item, and indicated that the project is located near Elsinore Elementary School and Yarborough Park. He advised that the Engineer's estimate was $42,000, three bids were received, and the low bid was from EGN Construction in the amount of $47,950. He recommended the transfer of Gas Tax funds to assist in funding the project. Councilman Alongi indicated that he pulled this item because he didn't have information as to where the sidewalks were, except in vicinity of the elementary school. He also indicated that the bids were higher than the estimate, and noted that this was the first time he had seen that. He stressed the importance of knowing what streets, sidewalks and ramps are included in the project; and noted that he would appreciate receiving that information in his packet next time. PAGE TWENTY — CITY COUNCIL MINUTES — JUNE 239 1998 MOVED BY ALONGI, SECONDED BY METZE AND CARRIED BY UNANIMOUS VOTE TO AUTHORIZE THE TRANSFER OF $69450.00 FROM THE GAS TAX ACCOUNT TO THE 1997 -98 SB 821 PROJECT ACCOUNT AND AWARD THE CONTRACT TO E.G.N. CONSTRUCTION IN THE AMOUNT OF $475950.00. 5. Award of Contract - Strickland Avenue Guard Rail Barricade - Chrisp Company - $14,020. (F:156.2) City Manager Watenpaugh highlighted this item, noting that it will protect three homes on the northerly side of the street. He advised that the Engineer's estimate for the 330 feet of guardrail was $14,000; and only one bid was received for $14,020. Councilman Alongi indicated that if he was correct there were already arrows in place for the curbs. He questioned the last time any car ran off the road into the three houses. He noted that this road has been therefor 35 years and there are other areas where the money could be spend on sidewalks, etc. He stressed that there are arrows indicating that there is a curve there, and the road was there when the houses were built. Councilwoman Brinley indicated that there is a public safety issue to address. Mayor Pro Tern Kelley noted that this was funded in last year's budget. MOVED BY BRINLEY, SECONDED BY KELLEY AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO AWARD THE STRICKLAND AVENUE GUARD RAIL PROJECT TO CHRISP COMPANY IN THE AMOUNT OF $149020. 7. Lot Line Adjustment between Tract 22912 and City's Future Fire Station Lot on Lincoln Street. (F: 160.2)(X: 127.3) City Manager Watenpaugh highlighted this item, and indicated that staff has recommended the adjustment to transfer the lot line from the bottom of the slope to the top of the slope, to ensure that the slope will ultimately be maintained. Councilman Alongi suggested that this was the City again transferrring the burden of responsibility from the private property owner to the City. He indicated that it did not just appear, it was there; and could be assess to the LLMD to guarantee maintenance of the slope. He stressed that this was private property agreed to in the tract snap. He expressed concern that the citizens will pay to maintain the slope when it should be addressed by the property owners. PAGE TWENTY -.ONE — CITY COUNCIL MINUTES — JUNE 239 1998 MOVED BY BRINLEY, SECONDED BY METZE AND CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE TO AUTHORIZE THE MAYOR TO EXECUTE THE LOT LINE ADJUSTMENT AND AUTHORIZE THE CITY CLERK TO RECORD THE DOCUMENT. 8. Memorandum of Understanding with United Public Employees of California - LIUNA Local 777 for Fiscal Years 1997 -98 and 1998 -99. (F:116.3) City Manager Watenpaugh highlighted this item and noted that the proposed Memorandum had been negotiated and ratified by the employees. He advised that the agreement was for a 2 year contract with a 1.8% cost of living increase and medical and dental insurance increases for a total package of 2.22% in the first year; and a 2.5% total package for 1998 -99. Councilman Alongi indicated that he needed to explain his vote on this item, as he believes that every area should be considered when the City has financial problems. He concurred that the City has good employees, but it is important to hit every area to save a dollar. He indicated that there comes a time when the Council should be unanimous, even when they disagree and this is one of those times. MOVED BY ALONGI, SECONDED BY KELLEY AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE MEMORANDUM OF UNDERSTANDING WITH UNITED PUBLIC EMPLOYEES OF CALIFORNIA — LIUNA LOCAL 777 FOR THE PERIOD, 1997 -99, AS PRESENTED. 9. Closure of Summerhill Drive. (F:156.1) City Manager Watenpaugh explained this item, and expressed appreciation to the Council for pulling it from the Consent Calendar, as it should have been a Business Item to gain direction from the City Council. Councilman Alongi indicated that Tuscany Hills is within the City of Lake Elsinore and those are all public streets, and everyone makes sacrifices. during the year for the benefit of the Community. He noted that some of the races require complete closure of some areas. He suggested that it was irresponsible for residents to think there is a need to close off public streets, as everyone pays taxes to maintain streets; and indicated it was not fair to close them just because a group has the ear of the Council and receives special treatment. He indicated that Summerhill Drive should remain open unless there is a race on it. He further indicated that last year it was arbitrarily closed, and suggested that it was completely irresponsible to deny residents a place to watch the fireworks. PAGE TWENTY -TWO — CITY COUNCIL MINUTES — JUNE 239 1998, Mayor Pape indicated that while he has not discussed the matter with Tuscany Hills residents; they are not really equipped to handle large amounts of traffic or crowds, noting the problems experienced in years when it was not closed. He specifically noted the lacy of restroom facilities and potential for hazards on the 4t' of July; and suggested that it seemed like a reasonable request for any such area. Councilwoman Brinley noted that this road is subject to closure for races and this is a time when they are heavily impacted and should be assisted. She indicated that this closure would be at no cost to the City, and the homeowners association will pay for the police officer. She concurred that everyone is impacted by special events in one way or another, but stressed the past problems which have been encountered in that area. She suggested that if the residents are willing to pay for expenses, then they should be allowed to do so. MOVED BY BRINLEY, SECONDED BY METZE TO APPROVE CLOSURE OF SUMMERHILL DRIVE FOR THE JULY 4 T HOLIDAY AS REQUESTED. Councilman Alongi addressed Councilwoman Brinley and indicated that he did not disagree, but a few inconsiderate people should not spoil the celebration for others. He indicated that most people park some distance from the residences. He suggested that the Council would be wrong to approve this closure and set themselves up for problems in other areas. Mayor Pro Tern Kelley requested an estimate as to how many cars try to go up there and inquired whether there has been problems in the past. Chief Walsh indicated that there have been problems in years past, including parking, no restrooms, and the generation of a good deal of traffic. He indicated that there is a park in the area which could be open to all, but the road closure prevents other problems. THE FOREGOING MOTION CARRIED BY A VOTE OF 4 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE. THE CITY COUNCIL MEETING WAS RECESSED AT 9:30 P.M. THE CITY COUNCIL MEETING RECONVENED AT 9:32 P.M. PUBLIC COMMENTS - NON - AGENDIZED ITEMS Candy Schmitt, 15227 Washington Avenue, stated that there has been some traffic enforcement made in her area, however it has been done in a very limited basis. She noted that after the traffic monitor was removed enforcement was aggressive for about three or four days, however since that time there has been no PAGE TWENTY- THREE — CITY COUNCIL MINUTES — JUNE 239 1998 enforcement at all. She further stated that it is the responsibility of the Council to see to the safety of the citizens and she felt that some stop signs might assist in slowing traffic. She further suggested that there are other cities that use speed bumps in problem neighborhoods and the City could research the possibility of that use. She invited Council to come and sit in her front yard and watch the traffic that speeds up and down the street. Chris Hyland, 15191 Wavecrest Drive, disagreed that the City is in good financial shape and noted a lawsuit against the City for $2.4 that was recently awarded to a local citizen. She further noted that there is another lawsuit pending against the City that may be greater than $2.4 million. She stated that if the City appeals the interest will continue on the amount. She cautioned the tax payer that this is not paid by the insurance company, but rather from the General Fund, since the RDA has no money. Desiree O'Neill, 15253 Washington Avenue, stated that all of the suggestions that she has made to resolve the traffic problems on her street have been dismissed as not possible and she stated her frustration with the entire situation. She noted that for buyers to move into their homes, the City had to approve the safety of the streets, therefore why is the,City not taking action to insure the safety of the children and the residents on Washington Street. She cited a recent incident that she experienced with racing cars and asked that Council address this issue. Pat Homes, 2657 Regent Road,, Carlsbad, stated that she is the owner of 96 Eleanor which was rented by a church and has been rezoned residential. She explained that the property has a building on it and she has a possible renter, however for him to rent the building he will have to pay a fee of $2,000. She stated that the cost has made it impossible for her to rent her building and she is paying taxes for commercial property, however she cannot rent it as such. She asked for Council assistance. Mayor Pape pointed out Community Development Director Brady and suggested that Ms. Homes discuss this issue with him. Harold Boutilier, 15245 Washington Avenue, and addressed the problem with traffic on his street and the danger that is present to their children caused by speeding cars. He stated that it the duty of Council to address safety issues and his neighborhood wants to prevent a serious accident. He suggested that the citizens be allow to assist the Police Department as other cities have done to do traffic enforcement for their area. Linda Nanetti, questioned where the City is going to get the money for the recent lawsuit. She suggested that the Redevelopment Agency and the Council become separate entities and not part of the City coffers. She suggested that this would allow the money from the taxpayer to be utilized for the needs of the City and the misuse of the RDA funds and lawsuits would not affect the General Fund. She noted that other cities do not have RDA draining their coffers. PAGE TWENTY -FOUR — CITY COUNCIL MINUTES — JUNE 23, 1998 CITY MANAGER COMMENTS City Manager Watenpaugh addressed the problems on Washington Avenue and stated that he will contact Mrs. O'Neill to set a neighborhood meeting. He also addressed Mrs. Zeiler's comments and stated that he will provide information for Mrs. Zeiler to pursue. He stated that the City is concerned with future water and water rates, however it is not something that the City cannot directly control. He congratulated the City Attorney on her 7t' Anniversary. CITY ATTORNEY COMMENTS No Comments. CITY COUNCIL COMMENTS Councilman Metze commented on the following: Addressed the problems on Washington Street and noted that if the City places a stop sign on Washington Avenue and it is not warranted, then the City is held liable should there be an accident. He stated that it is frustrating, however the problem must be addressed in the proper manner to protect everyone and he will be happy to meet with the residents to work on this issue. Councilman Alongi commented on the following: Stated that money solves a lot of problems and that is why he feels that it is important how the City spends the money. He stated that he would like to see the City take $100,000 and hire a police officer to sit on Washington Avenue to end the problem. He noted that when people start getting tickets and pay fines, they pay attention. He stated that he would rather see us spend the money in that manner rather than on 4X4 trucks. 2. Addressed LEAF and cautioned people to have their pets spayed and neutered. He noted that the amount of animals being turned into the pound is growing and people need to be responsible. 3. Addressed HOPE and stated that every Saturday at 12:00p.m., there will be free lunch bags, groceries and clothing at the Grand Avenue Association Building, 17400 Grand Avenue. 4. Commented on the Community Center and stated that he felt that too much money was set aside and there is a lot of work that can be done by PAGE TWENTY -FIVE — CITY COUNCIL MINUTES — JUNE 23,1998 volunteers. He stated that the City needs volunteers to paint, remove carpets off of the walls, someone who can lay and repair carpet. He stressed that the community needs to come to together and show that they have an interest in their own city by getting the Community Center open. He noted that the people that are doing the graffiti could contribute by applying their art to the walls of the Community Center. Commented on the purchase of computer equipment at City Hall and explained that the reason the bid was extended was because the closing date was set on a Friday, and because City Hall is closed it had to be extended. He further commented on the honesty of the people on Council and staff and stated that they make mistakes, however they are not trying to favor anyone. 6. Commented on a meeting with Senator Haynes and stated his surprise regarding the discussion on Low Income Housing. He noted that in other communities the Mayors help to build houses and in this community we tear them down. 7. Stated that he has a problem with changing Multiple Family Zoning because everytime the City does that we restrict that type of building. He noted that the General Plan calls for that zoning and the owner of the property had the opportunity to appear before Council to address the zoning and it should remain the same now that the General Plan has been adopted. He explained that the commercial businesses that are coming to the community provide minimum wage jobs, however the City does not provide minimum wage housing. He stated that those people are entitled to quality housing the same as everyone else. 8. Addressed the use of_the. RDA to purchase homes that have been boarded up, rehabilitate, and sell them to working families that cannot afford new homes and generate income for RDA. He explained to Ms. Nanetti that the RDA is a separate entity and asked that she educate herself in regard to RDA. Councilwoman Brinley commented on the following: Thanked Senator Haynes for spending some time on Saturday with Council. She noted that he touched upon vehicle tax and a breakdown of the structure. She stated that she felt that the meeting was very valuable. 2. Addressed Washington Avenue and stated that Council has been interested. She made note of the amount of tickets that have been given over the last two weeks and stated that it does have some impact. She stated that this is an important issue and the children of the community are our concern. She noted the traffic concern in her neighborhood and stressed her PAGE TWENTY -SIX — CITY COUNCIL MINUTES — JUNE 239 1998 understanding of their problem. Asked staff to provide some books to Ms. Nanetti to help her better understand RDA. She noted that this body of officials have been working hard to resolve the financial problems of the RDA and hope to completely resolve all the problems in not too many more years. 4. Congratulate staff and the City Manager on the budget and commented on what a good job they have done. Expressed her pleasure with the opening of the Community Center, the Campground and extra Code Enforcement. She stressed her concern regarding illegal businesses setting up areas on the weekends and taking business away from our local merchants. 6. Asked the City Attorney to explain Council's position in regard to lawsuits. City Attorney Leibold noted the lawsuits that the City is currently working on and the fact that the majority of them she is currently dealing with are from eight or more years ago. She explained that the City will be making a motion for an appeal and she will continue to resolve the problems. She stated that the paperwork for the lawsuit is public information, however it will not be discussed. Mayor Pro Tern Kelley commented on the following: Concurred with Councilwoman Brinley regarding the good job done on the budget and noted how easy it is to understand. She explained that Council was given the opportunity to work with staff and review the budget line by line and express their opinions and desires. She stated that all areas are open for discussion and the Council will be glad to meet with the public to receive their input. 2. Addressed the problem on Washington Avenue and stated that Council is and will be working on the problem. She stated that Council will be working with Captain Walsh to see what can be done. Mayor Pape commented on the following: Thanked the Board of Realtors, who were painting over graffiti today, for doing such a good job. He noted that the City has budgeted for a graffiti program and commented on what a good job everyone has done. 2. Wished everyone a happy 4"' of July. PAGE - TWENTY -SEVEN — CITY COUNCIL MINUTES — JUNE 23,1998 City Attorney Leibold addressed the comments regarding litigation and indicated that all cities are potential parties in litigation and are perceived as deep pockets, although many such cases are without merit. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision ( a) of Section 54956.9): Koliber vs. Elsinore Valley Municipal Water District, et al - Case #217976 Harvey & Page, et al. vs. Elsinore Valley Municipal Water District, et al. - Case #215768. Williams & Hasson vs. City of Lake Elsinore - Case #257165 /Williams vs. City of Lake Elsinore -Case #257162. B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Initiation of litigation pursuant to subdivision ( b ) of Section 54956.9 (1 Case). City Attorney Leibold announced the above listed closed session items. THE REGULAR CITY COUNCIL MEETING WAS ADJOURNED TO CLOSED SESSION AT 10:15 P.M. FOR DISCUSSION OF THE ABOVE LISTED ITEMS. THE CITY COUNCIL MEETING RECONVENED AT 10:40 P.M., WITH THE FOLLOWING ANNOUNCEMENTS: With regard to the following litigation, Koliber vs. Elsinore Valley Municipal Water District, et al - Case #217976 Harvey & Page, et al. vs. Elsinore Valley Municipal Water District, et al. - Case #215768. Legal Counsel Leibold provided a Status Report to the City Council and by a vote of 5 to 0 provided clarification of settlement authority. With regard to the following litigation, Williams & Hasson vs. City of Lake Elsinore - Case 4257165 /Williams vs. City of Lake Elsinore - Case #257162. Legal Counsel Leibold provided a Status Report to the City Council. PAGE TWENTY -EIGHT — CITY COUNCIL MINUTES — JUNE 23, 1998 With regard to anticipated litigation, Legal Counsel Leibold reported no action. ADJOURNMENT MOVED BY ALONGI, SECONDED BY METZE AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR CITY COUNCIL MEETING AT 10:41 P.M. S; W. PAPr, MAYOR OF LAKE ELSINORE ATjFI�;ST: �J1�� VtCKI KASAD, CITY CLERK CITY OF LAKE ELSINORE