HomeMy WebLinkAbout09-16-1997 City Council Study SessionMINUTES
CITY COUNCIL STUDY SESSION
CITY OF LAKE ELSINORE
130 SOUTH MAIN STREET
LAKE ELSINORE, CALIFORNIA
TUESDAY, SEPTEMBER 16, 1997
CALL TO ORDER
The City Council Study Session was called to order by Mayor Pape at 2:37 p.m.
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by City Manager Watenpaugh.
ROLL CALL
PRESENT: COUNCILMEMBERS: KELLEY, METZE, PAPE
ABSENT: COUNCILMEMBERS: ALONGI, BRINLEY
Also present were: City Manager Watenpaugh, City Attorney Leibold, Administrative
Services Director Boone, Community Services Director Sapp, Community
Development Director Leslie, Fire Chief Seabert, Assistant to the City Manager Best,
Community Services Manager Edelbrock, and City Clerk Kasad.
PUBLIC COMMENTS - A ENDIZED ITEM
None Requested.
1. Eastern Municipal Water District Discharge /Wetlands Project. (F:164.1)(X:92.3)
City Manager Watenpaugh noted that the Eastern Municipal Water District has
been working with EVMWD, the City and the Corps of Engineers for
cooperation on their discharge line. He further noted that the line through town
is nearly complete, and this matter could come forward for action- at the next
City Council Meeting.
Larry Lobue, representing Eastern Municipal Water District presented a history
of the planned line and reclaimed water system, and noted that the original plan
was proposed when the Riverside County economy was booming in the 1980's.
He explained that it has been funded by loans and grants from the Bureau of
Reclamation and local participation, and noted that the total cost is nearly $53
million. He detailed the treatment facilities in the County and noted that they
were not previously inter -tied. He advised that this project being built has tied
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PAGE TWO - STUDY SESSION MINUTES - SEPTEMBER 16, 1997
all of the plants together and given them the ability to move water throughout the
District. He commented that this water was previously called "waste water ",
because there was no use for it; however it is now used for groundwater,
agriculture and in some cases potable water. He advised that they are presently
treating about 28 to 30 million gallons a day, with the capacity for treating 45
million gallons a day. He noted the impact of the current economy on the
overall project; and highlighted questions regarding the size of the line,
particularly since it is more than what is currently needed. He explained that
based on the studies completed they believe it to be the best judgement to build
the complete project at this time. He reiterated that the project is nearly
complete and the pipeline from Sun City through the City is nearly complete. He
addressed the difficulties encountered, noted the original plan for the project and
explained the new alignment for the project, and detailed its route. He further
noted concerns on Collier Avenue for the area built since the project was begun,
and addressed the special design considerations in that area. He noted that the
lines will not be placed in Collier Avenue to prevent the potential loss of retail
time, and the impacts on an already improved road. He noted that the planning
process for this project began in November, 1995 and there is now an MOU in
place. He stressed the reviews which have already occurred on the project and
indicated that all of the legal counsels are happy with the indemnification
clauses.
Mr. LoBue further addressed the alternate route for the pipeline with discharge
at Wasson Canyon and the Outflow Channel Weir. He explained that the plan
is to build a 24" pipeline and noted the use of an inflatable dam to prevent flow
back into the Lake: He indicated that they will also be building an energy
dissipator and a Chlorinator/Dechlorinator Facility in this area. Mayor Pape
questioned how long it would take for the water to get to the Outflow Channel.
Mr. LoBue indicated that it would take about 18 hours to three days at present
from the Sun City plant; but ultimately it would be about 8 hours. He noted the
land they will need for the project and noted City excess property on Minthorn
Street. He requested that the City, as a part of the participation, provide some
sort of low cost, long term lease. He indicated that he has been working with the
City Manager and City Attorney to obtain a right of entry to begin soil testing
for the project. He advised that for this winter they are going to build a
sacrificial piece of pipe with a temporary outlet into Wasson Canyon, so if they
have to discharge water this winter, they will have the means to do so. He
stressed that they don't anticipate having to discharge, as they have been able to
manage the waste water well to this point. He further stressed that this year, all
of the impound ponds are basically empty, as the demand is exceeding the
supply. He advised that the Master Plan shows that it will be 12 to 15 years
before the supply will catch up with the demand. He indicated that the only
reason to discharge sooner would be regulatory changes in what the water can
be used for. He forecast that it would be at least another 10 years before there
would be an ongoing excess supply.
Mayor Pape questioned if this line is a situation of "just in case" it is needed.
Mr. LoBue indicated that it will ultimately be needed, and they chose to build
PAGE THREE - STUDY SESSION MINUTES- SEPTEMBER 16, 1997
the ultimate line at this time. Mayor Pape questioned the discharge point in
relationship to Gunnerson. Mr. LoBue clarified the location. Mayor Pape
questioned what would happen if the Lake was full and water was going out the
outflow channel, and the impact on the Gunnerson Pond area. Mr. LoBue
confirmed that there would be a minimal impact, and explained their intent to
purchase property to allow a place for the discharge to occur. He indicated that
they have done a study, and to keep Gunnerson from flooding, they would need
a channel past Lake Street back into the Outflow Channel and noted the expense
of such an improvement. He stressed the natural sump of the Gunnerson Pond
area and explained that it will retain water when flooding occurs. He indicated
that their idea is to purchase the land and allow it to serve as natural drainage.
Mayor Pape questioned the level of treatment of the water to be carried by this
line.. Mr. LoBue indicated that it would be tertiary treated, clear water.
Councilman Metze requested clarification that there were problems finding
enough of this water to purchase in the area. Mr. LoBue confirmed. Mayor Pro
Tem Kelley questioned the inflatable dam. Mr. LoBue clarified that it would
only be up when there is no flow from the lake, and will direct the flow of this
water out of the area. He explained that it is made of a heavy rubber material;
fits across the bottom of the channel and is less than a foot high.
Mayor Pape questioned whether they had held discussions with Congressman
Calvert regarding this plan. Mr. LoBue confirmed that they are working with the
Congressman Calvert. Councilman Metze questioned the pro arguments for the
City on this project. Mr. LoBue indicated that the project will keep Collier
Avenue safe from problems in the future, won't hinder the Outlet Center
operations, and the City will be able to abate litigation underway. Mayor Pape
questioned if this would aid Mr. Chen's project. City Manager Watenpaugh
indicated that it could help, and noted that meetings are occurring between Mr.
Chen and the District. He fiuther noted that it would be premature to say that
it would either help or hinder the project. Mr. LoBue confirmed that they have
met several times and Mr. Chen is aware of what will be required. He indicated
that the M.O.U. is finally completed and will be coming to Council.
City Manager Watenpaugh indicated that if the Council concurs, staff will bring
the M.O.U. forward to the Council for approval. He noted that the City has
entered into a final draft for the right to enter for soil testing. Councilman Metze
noted that it includes conditions to buy the problem properties. Mr. LoBue
confirmed their commitment of two and one half million dollars to this project.
He indicated that as a team it is possible to make the project work and have a
space which will provide other benefits. Councilman Metze stressed that is what
he wants to see. Mayor Pape noted that he met with Congressman Calvert and
he is working on plans to allow for a permanent wetland, which will look nicer.
Mr. LoBue indicated that one of the future moves for this is to look at a transfer
of ownership to and agency who can make the further improvement happen.
City Manager Watenpaugh questioned the Council feeling on this request. The
City Council concurred that the matter should come forward.
PAGE FOUR - STUDY SESSION MINUTES - SEPTEMBER 16, 1997. .
2. Western Riverside Council of Governments - Electric Restructuring
Presentation. (F: 108.13)(X: 170.1)
City Manager Watenpaugh noted the Executive Summary as presented in the
agenda packet, as it relates to deregulation and aggregation of electrical services.
John Jaquess, Manager of Special Projects for WRCOG, presented slides and
explained the report complied in cooperation with SANDBAG by a task force
of elected officials and City Managers. He explained the focus of the task force
and the questions they addressed; and detailed the options based on the
deregulation, which included doing nothing, lobbying, educating, aggregating
and creating its own utility base. He explained the aggregation options under the
new laws, and clarified that aggregation is a cost effective opportunity for lower
electric bills during the transition period. He stressed that it reduces the cost of
analysis for governmental agencies through cost sharing. He noted that there
is a four year transition period for full direct access and competition. He noted
the potential for a stronger position to establish rates, educate residents and
negotiate benefits and services. He father detailed the potential benefits of
aggregation. He noted that this provides flexible approaches to meeting agency
goals and determining the level of risk which is acceptable. Councilmembers
Metze and Pape requested clarification.
Mr. Jaquess clarified that power is going to be sold at a fluctuating price
following this deregulation. He noted that if the group works with an energy
provider and takes a variable price there are some risks associated. He stressed
that the risk is in paying more for the services and not a risk of loosing service.
Mayor Pape questioned the potential price difference between aggregation
levels. Mr. Jaquess indicated that the City presently pays about $529,000 a
year for electricity, however they have not yet translated that into kilowatts.
Mayor Pape questioned the percentage of cost breaks. Mr. Jaquess noted that
the Bay Area is further ahead in this process; as is Palm Springs; and both are
seeing 4 to 5% reductions. Councilman Metze noted that Council should have
more information before making a decision of this magnitude. Mayor Pro Tem
Kelley noted the discussions at WRCOG meetings and noted that the only
caution they see is another level of regulation with associated costs. Mr. Jaquess
noted the experiences of other agencies, and explained that the cost of the study
is about $ 150,000 spread over the 77 agencies who have expressed an interest
in participating. He indicated that the cost of the aggregation is dependent
upon decisions which are yet to be made; and noted the potential cost variables
in the proposal. Mayor Pro Tem. Kelley clarified the steps for the study. Mr.
Jaquess confirmed and explained the two part analysis. Mayor Pape questioned
the next step in figuring out the cost sharing for the various agencies. Mr.
Jaquess clarified the Task Force recommendations and explained that it would
be a tiered investment based on power bills, but noted that it would not be wise
to anticipate 100% participation. He further noted that the San Bernardino
Board of Supervisors approved participation this date. Mayor Pape noted the
potential for new opportunities and jobs, this program would generate.
Councilman Metze questioned the reasonableness of a whole new tier of
PAGE FIVE - STUDY SESSION MINUTES SEPTEMBER 16, 1997
government for a 5% savings. Councilman Metze questioned the benefit for the
average homeowners. Mr. Jaquess indicated that it would not be in the average
homeowners realm right now, as they are only looking at the Municipal
Government electric costs. Mayor Pape questioned what Palm Springs did to
benefit its residents. Mr. Jaquess noted the electric bills in the desert areas and
their interest in lowering those electric bills; and advised that they elected to
notify all of the residents in the community, contract with an energy provider and
with 25% of the residents responding were able to provide additional reductions.
He noted that the administrative costs for such a proposal add significantly to the
job, which is not recommended at this time. , City Manager Watenpaugh
questioned a letter from Edison regarding the reduction. Mr. Jaquess indicated
that they will probably send residents a letter to explain what will happen in the
transition. He noted that the proposed reduction is for four years and then the
legislative guarantee goes away. He stressed that further reductions are not
presently legislated.
Mr. Jaquess addressed the next steps in this process including determination of
organizational structure, hiring of legal counsel and technical consultants,,
determination of pricing structure, designation of other services desired,
selection of the best service components, metering and billing requirements,
determination of length of contract and level of risk, selection of power supply
provider, coordination of scheduling energy and ancillary services..
City Manager Watenpaugh questioned the timing for the City to make a decision
on participation. Mr. Jaquess indicated it should be in the next one to two
months. City Manager Watenpaugh requested confirmation that if the Council
chooses to participate at this time, they are not locked into the aggregate. Mr.
Jaquess confirmed, and explained that they would need to actually sign up for
the aggregated services. Mr. Watenpaugh inquired what would happen if the
City does not choose to participate until later. Mr. Jaquess indicated that they
would probably come back and collet the proportionate share at the time the
participation is requested. Mayor Pro Tem Kelley questioned whether they were
making this presentation to School Districts, Water Districts, etc. Mr. Jaquess
indicated that they were not yet making those presentations, as WRCOG
wanted it presented to the Cities for now. Mayor Pro Tem Kelley stressed that
others will be able to participate. Mr. Watenpaugh noted that the program is
being reviewed by Water Agencies. Mr. Jaquess confirmed, but noted that he
was not sure of the diversification they would see for the proposal. He also
noted that several School Districts have approached WRCOG wishing to
participate; and universities are doing their own aggregation. Councilman
Metze questioned why all of the groups mentioned don't get together for a
larger discount; and what would stop Edison from giving a better rate for staying
with them. Mr. Jaquess indicated that their rate is legislated; and clarified the
role of the Edison Company, clarifying that they will still be in the transmission
and distribution areas, as well as some generation. City Manager Watenpaugh
noted this will also spawn an entrepreneurial approach to power. Councilman
Metze questioned who governs the electrical service now. Mayor Pro Tem
PAGE SIX - STUDY SESSION MINUTES - SEPTEMBER 16, 1997
Kelley indicated that under this plan no one governs. Mr. Jaquess stressed that
generation will become a deregulated area; and noted the current focus on
hydroelectric power. He stressed that Edison will retain the infrastructure to
maintain power, and noted the focus of reliability.
Mayor Pape questioned the impact of deregulation on the proposed hydroelectric
project for the Lake. City Manager Watenpaugh indicated that they have
contracted that project out to a private enterprise and they still feel it is
marketable. He explained that Edison indicates that they are looking at three
times the current cost to aggregate for such a project. Mr. Jaquess noted that
there are a number of big power plant projects in the works for approval.
Councilman Metze questioned the need for City involvement in this process.
City Manager Watenpaugh indicated that some contact with WRCOG is needed
for approval of the project. Mayor Pro Tem Kelley noted that the members of
WRCOG are looking toward aggregation and stressed that they are weighing the
benefits. Mr. Jaquess stressed that if it is not financially worthwhile they will
not proceed. Mayor Pro Tem Kelley noted how things balloon in government
and the recent cutbacks at the WRCOG level. Mr. Watenpaugh noted that
efficiency and costs are the focus of this work.
3.. Agreement with Jackie Nanette's Water Skiing School. (F :151.1)(X:68.1)
City Manager Watenpaugh noted the ongoing agreement with Jackie Nanette;
and explained that she has now come forward and worked with Community
- Services to put together a formal agreement.
Ms. Nanette read a prepared statement regarding the contract extension, and
noted her efforts to provide a service to the Community. She detailed her
personal background water skiing efforts and competition levels. She noted that
this is her fifth summer teaching at Lake Elsinore and detailed the benefits of the
program. She read letters from three students commending her ski school and
the efforts of Jackie Nanette. She noted the plans and concepts presented and
expressed hopes for a five year agreement.
Mike Garner noted his discussions with Jackie regarding her one year agreement
with a 30 day cancellation clause; and indicated that their intent for this meeting
was to convince the Council that the longer agreement is in the City's best
interest. He noted the history of water skiing and indicated that the sport is
gaining popularity. He detailed the demographics of a water skier and stressed
the benefit of these demographics, noting that they fit perfectly with with making
California a Mecca for water skiing in the U.S., rather than Florida. He
stressed the weather, population, economic prosperity, proximity to housing
areas, etc. He noted other water skiing operations in the Delta Area and one in
Newberry Springs; and stressed the need for professional training to really learn.
He reiterated that Ms. Nanette is a world class skier, and noted the draw of
students from a large area. He advised that she is currently operating at her
PAGE SEVEN STUDY SESSION MINUTES SEPTEMBER 16, 1997
maximum capacity, form sun up to the start of the winds about 1:00 p.m. He
explained the need for some infrastructure to increase her capacity and indicated
that she needs an extended period of time over which to amortize her costs or
gain participation by governmental agencies. He detailed the potential costs for
the proposed improvements which would be from $210,000 to $477,000; and
explained the difficulty of budgeting this cost without a period of time over
which to amortize it. He suggested that Ms. Nanette is the key for unlocking the
area for growth, and stressed the potential draw of the expanded facility. He
indicated that this will allow California to challenge Florida, as the water ski
capital.
Mayor Pro Tern Kelley inquired where most of Ms. Nanette's clients come from.
Ms.; Nanette indicated that the majority are from Los Angeles and Orange
Counties with some from the immediate area. Mrs. Kelley noted the major
water ski events Ms. Nanette has brought to the community. She further noted
the exclusive use of the channel previously granted to Ms. Nanette. Mrs. Kelley
questioned the proposed improvements. Ms. Nanette indicated that there are
two slalom courses now, and she would like to put in one jump course; and
ultimately have three slalom courses. Mrs. Kelley inquired if the courses would
be open to local residents. Mr. Nanette indicated that they would be closed to
the public. Mrs. Kelley questioned the daily operation hours. Ms. Nanette
indicated that she tries to work five days a week from 6:30 a.m. to 2 p.m., and
the improvements would allow her to open until 5 p.m. for kids and after that for
adults. Mrs. Kelley inquired if the intent was to not license other programs.
Ms. Nanette indicated that was originally her thought, mostly due to concern for
other activities. Mr. Garner indicated that they don't want someone without
adequate skills to get hurt and have an impact on Ms. Nanette or her school.
Mrs. Kelley questioned if the City intended to offer lessons on the Lake and
whether this agreement would impact those plans. Community Services Director
Sapp noted that at some point staff would like to look at providing sailing an
windsurfing lessons, but not right now. Mr. Garner noted that they hope to put
together a program for kids after school, in hopes of providing the City an
avenue. Councilman Metze questioned whether there was a guarantee of that;
as he did not intend to see it as a competition issue. City Manager Watenpaugh
clarified the potential direction for sailing, sailboarding and canoeing on the
Lake. There was General Council Discussion of the existing efforts to provide
programs.
Mayor Pape expressed some concern, due to development community looking
at doing other things in the lake and around the channel. He expressed concern
with locking the development out for five years or longer. Mayor Pro Tem
Kelley questioned the income to the City, from the Water Ski School. Mr.
Watenpaugh indicated that it was $4,870.50 in the first year, and the year to date
for 1997 has been $859.00. Mr. Watenpaugh reminded Council of Lake
restrictions and the potential need to change the City ordinance to allow for
private use of the Lake. He further reminded the Council that night time
activities have always been prohibited on the Lake. Mayor Pro Tern Kelley
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PAGE EIGHT - STUDY SESSION MINUTES - SEPTEMBER 16, 1997
noted that she has previously requested a study session on recreational
opportunities, such as opening the levee for walking and biking. Mr.
Watenpaugh clarified that the levee is nearly open, as title is being transferred
to the City. Mayor Pro Tem Kelley further noted the need for discussion of
concessions and other Lake issues.
Mayor Pape suggested that with the recession over the City will see more
interest from the private sector to provide services and programs. Councilman
Metze questioned if this was a realistic approach for the next five years.
Mayor Pro Tem Kelley stressed that the Council is not aware of what is out there
and encouraged scheduling a study session of all of those issues. Councilman
Metze noted that this is taking Ms. Nanette's business to another level and
questioned the - potential, for national � events. Ms. Nanette noted the time
constraints of bidding for national events. Mr. Metze questioned what land is
being used. City Manager Watenpaugh noted that she is currently gaining
access from Lakepoint Park. Mr. Sapp explained that she is currently looking
at acquiring property off of Lucerne Street. Mayor Pro Tem Kelley inquired
when this agreement would come before the Council for action. Mr.
Watenpaugh indicated that he was looking to Council for direction and
questioned the Lake recreational issues. He stressed that water quality is an
issue for some of the other opportunities, and noted that guarantees are difficult
due to the unknowns of water quality., He noted -that the Water Ski School has
been here through the algae and dead fish. Councilman Metze concurred that
Ms. Nanette has stuck with the City through all of the negative factors. City
Manager Watenpaugh noted the difficulty of investing dollars in efforts which
do not look profitable or feasible. Ms. Kelley noted that there are other interests
in the channel and stressed that this is a prime piece of the Lake for recreation.
She indicated that she has a problem with the exclusive nature of the proposed
agreement and she is not aware of other opportunities. There was general
Council discussion of the proposal and other potential concessions on the Lake.
City Manager Watenpaugh asked that the Council give the City Attorney time
to go through the agreement for a comfort level, noting that she has some
comments and issues with the proposed agreements.
Mike Leslie, 17212 Grand Avenue, noted his property ownership in the
community. He expressed his belief that Ms. Nanette has a good ski school, and
addressed the costs of the ski school. He commented on the difficulty for local
residents to afford the lessons. He suggested that as a part of the Lake
community there needs to be some kind of non -profit ski club to get people
started. He noted the need to generate interest in families of Lake Elsinore. He
suggested options by use of the Lake by a non -profit club and getting the point
across that the Lake and Channel are the major benefits of the community. He
stressed that everyone needs to experience the biggest asset of the community.
PAGE NINE - STUDY SESSION MINUTES - SEPTEMBER 16, 1997
He indicated with regard to the agreement with the school and how long it
should run, his main concern is that a long term agreement, should not preclude
a ski club from operating. He expressed concern with giving one person or
group the sole use of the Lake.
Mark Piascik, resident of Grand Avenue, voiced his objection to exclusive rights
to the slalom course on the Lake. He indicated that he had no objection to her
school, but it is not fair that one person or entity can control the Lake. He
indicated that he is now skiing 4 or 5 days a week, but noted the limited
challenges without a slalom course to make it more interesting. He indicated
that the area is big enough for two or three slalom courses; and most of the time
there is not one in the channel when they are skiing. He noted that the City is
trying to attract other boaters to the area and stressed the need for a local course
to draw skiers. He further indicated that with Ms. Nanette 's standard rates, he
could not afford to ski with her, with the frequency he now skis on his own. He
emphasized that he would like the Council to consider also allowing other ski
clubs to be established in the Lake or the channel. He suggested that it would
be wrong to allow an exclusive use of the inflow channel. Mayor Pro Tem
Kelley questioned if there were other ski clubs on the Lake. He indicated that
there are no other ski club on the Lake, but noted that there would be an interest
if there was a slalom course they could utilize, and all of them are willing to pay.
Mayor Pape questioned the cost of providing such an arrangement.. Mr. Sapp
indicated that staff has met with two groups previously, who never proceeded.
Mayor Pape questioned what would be involved. Mr. Watenpaugh noted the
potential for liability. Mayor Pape questioned if a club collecting dues would
be feasible. Mr. Watenpaugh indicated that it is done in other areas.
There was general discussion with Mr. Piascik of the potential areas, starting
times, and other such facilities.
Mayor Pape suggested that if a slalom is desirable, it would be appropriate to
look at working with the skiers on the proposal. Mr. Watenpaugh indicated that
anything is possible, but stressed the difficulty of enforcement. Councilman
Metze indicated that he would be against opening the channel to the general
public, due to the potential for accidents. Councilman Metze questioned the
potential of allowing for the City to do four events a year and suggested the
inclusion of community service events in conjunction with City sanctioned ski
clubs.
Mayor Pro Tem Kelley noted that skiers from the local area tend to ski very
early. The audience concurred noting that they begin skiing at daylight.
Councilman Metze noted the potential to work out some options. Mayor Pape
noted that he was hearing that the exclusive agreement may not be the direction
to go, but the question still remains with the period of time and would require
some thought. He suggested that this item be brought back to a meeting in
November. Councilman Metze clarified that he would suggest an exclusive with
some built in requirements.
PAGE TEN - STUDY SESSION MINUTES - SEPTEMBER 16,.1997
Mayor Pro Tem Kelley indicated that she is not in favor of an exclusive.
Councilman Metze stressed that there would be no guarantee for the optional
additional years. Mr. Watenpaugh suggested that if there is no one in the
channel, staff would still recommend that it be closed off. He noted the potential
for facilities in the speed zone. Mayor Pape reiterated that this item should be
placed on a November or December agenda. Ms. Nanette expressed concern
with having others in the channel, and stressed the need for very precise driving
skills as the water shallows. She stressed that she certifies their skills for
driving the channel. Council consensus was away from an exclusive, but into a
cooperative effort. Mayor Pape noted that staff should explore how best to
address -it. There was general Council discussion of the potential problems.
City Manager- Watenpaugh indicated that staff could investigate the issues
further with other facilities to address the liablity as best as is possible.
Pete Dawson, presented photographs of the inlet channel taken in the last four
days; and noted that there are three areas available for slalom courses. He
indicated that he has nothing against Ms. Nanette's ski school, but is concerned
with the exclusivity. He suggested that there is room for everyone in the picture;
and stressed that there should be room for everyone willing to pay for it. He
noted the current use of the existing facilities, and reiterated the availability of
space. He stressed the amount of time the courses are not being used.
Councilman Metze stressed that there should be caution with the control of the
facility. Mr. Dawson stressed that he could not afford to use the facility. Mr.
Metze stressed that he could not support opening the facility up to the public.
Mr. Dawson noted that people are skiing on Canyon Lake and explained how
their facilities are operated. Mr. Dawson addressed the Mastercraft Ski Lake in
Corona and detailed the cost for use of that Lake. City Manager Watenpaugh
reiterated that staff could come back with some options for the council.
THE CITY COUNCIL STUDY SESSION WAS RECESSED AT 4:50 P.M.
THE CITY COUNCIL STUDY SESSION RECONVENED AT 5:00 P.M.
4. Proposed Open Air Market at the Diamond - Triple Crown Enterprises.
(F:151.1)
City Manager Watenpaugh noted the past efforts for an open air market; and
explained the Mr. Martin was present to make a proposal. He noted that the
City is in the process of negotiating the lease on the Stadium and noted the
potential need to make any agreement contingent upon those negotiations.
Community Services Director Sapp introduced Dick Martin and stressed that
they would like to rent the facility, instead of being partners with the City.
Mr. Martin advised that they are in no way affiliated with the prior Open Air
Market > promoter; and they don't want to be partners with the City. He
indicated that there is more money to be made that way, noted that they want to
call it the Marketplace at the Diamond and stressed the name recognition of the
PAGE ELEVEN- CITY COUNCIL MINUTES SEPTEMBER 16, 1997
location. He indicated that they have settled on the Diamond because it is a
clean operation for vendors and customers; and all of the vendors contacted are
impressed with the idea. He stressed that the marketplace will all be on a paved
parking lot with free parking for the handicapped. He indicated that they plan
to use Parking Lot B for the actual marketplace, and detailed the parking
arrangements. He noted that there will be about 60 or 70 spaces for preferred
parking with extra payment required and about 150 free parking spaces. He
explained the vendor area set up and the planned phasing. He noted larger
spots and narrow spaces. He stressed their effort to make the facility look full
at all times; and advised that they plan to run about 80 days a year from
September 1st to April 1st, every weekend. He noted that during Baseball it
would be according to the Storm schedule. He advised that payment will be by
the month from September through April, but August 'would be a smaller
payment due to less days. He advised that this erratic scheduling has proven not
to be a problem at other venues, and noted the Orange County arrangement. He
indicated that he sees this arrangement as working hand in hand with the Stone
baseball season. He indicated that they will rent the two parking lots and have
a supervisor on premises; and will contract with the City or its designee for
security. He further advised that they will have a food vendor on site, but no
beer until they can settle with the Sheriffs Department with regard to deputies
on premises. He noted that with regard to trash, each vendor will be required
to take theirs off the premises for disposal. Trash generated by the customers,
will be accommodated by the promoter, who will provide trash facilities. He
noted that they will not have anything permanent on the parking lot, or be using
any power for any of their operations; however perimeter spots will be allowed
to bring in generators. He advised that they will have a million dollar insurance
policy and each vendor will have a million dollar policy for coverage each day.
He further advised that they will charge a $1 admission charge for customers,
and $2 for preferred parking. He noted special promotional efforts to draw
shoppers from other communities. He further noted that every vendor will need
a resale permit with the address of the diamond to benefit the City. He stressed
the benefit of people coming to the City to shop and seeing other places to spend
money such as restaurants, gas stations, etc. He suggested that this should also
help draw people for baseball and football games.
Community Services Director Sapp noted that the promoter is looking at having
all new items, not a garage sale operation. Mayor Pro Tern Kelley noted the
potential for problems with antiques. Councilman Metze suggested that the
promoter offer local antiques stores a different arrangement. Mr. Martin noted
most people shop all of the shops in the area for antiques, but local businesses
are welcome to participate in the Open Air Market. He offered to put a sign at_
the entrance on the way out to direct people to the other antique, stores in the
downtown area. Mayor Pro Tern Kelley inquired if the promoter would be
approaching those businesses to invite them to participate: Mr. Martin
confirmed. Mayor Pro Tern Kelley noted the last marketplac.3 problem of the
vendors lack of foot traffic; and questioned how Mr. Martin will address that:
issue and ensure vendors will generate the traffic. Mr. Martin indicated that they
PAGE TWELVE - STUDY SESSION MINUTES - SEPTEMBER 16, 1997
could become a victim of the same situation as the last promoter, but the City
will not be tied up with it. He noted this was one reason for the phased in
approach; to address the low initial turnouts. He further noted that in July they
had about 100 vendors committed and some are still interested. Mayor Pro Tem
Kelley inquired when they plan to open. Mr. Martin indicated that the vendors
will need time to get permits, and need a minimum of six weeks to get it going
following the approval date. He suggested starting either November 1st or
March 1st. Councilman Metze noted that the last market was closing and
leaving early. Mr. Martin advised that they will have standards for the vendors
and maintain a 100% customer satisfaction requirement. He indicated that they
will not be allowed to start breaking down until 4 p.m. Mayor Pro Tem Kelley
questioned the mix of product. Mr. Martin indicated that there will be produce
in spring and summer, but not in the winter. He advised that they plan on a nice
mixture, and will offer quarterly rates to gain return vendors. He stressed the
experience of the vendors in replenishing their stock and stressed the variations
in stock to encourage impulse buying. Councilman Metze questioned the
alignment of dates with the Dolphins and the High School. Community Services
Director Sapp indicated that the football games would be compatible with this
marketplace, because there is time to clean up prior to those events. Councilman
Metze stressed the other potential uses at the Diamond; and noted the clause
allowing Triple Crown a 20 day withdrawal arrangement, suggesting that the
City should have the same opportunity. City Manager Watenpaugh indicated
that the provisions would be the same for the lessee and the lessor.
Mayor Pape noted that when this item comes to Council for consideration, they
will need more information on TMC and how their proposal would coordinate
with this agreement.
ADJOURNMENT
MOVED BY METZE, SECONDED BY KELLEY AND CARRIED BY
-UNANIMOUS VOTE OF THOSE PRESENT TO ADJOURN THE STUDY
SESSION AT 5:30 P.M.
u>
X W. PAPE, MAYOR
OF LAKE ELSINORE
ATTF,gT -.
IC7Si KA, CITY CLERK
4 -11TY OF LtrKE ELSINORE