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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 U 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 U 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