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HomeMy WebLinkAbout03-28-1995 City Council Minutes M:rNUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, KARCH 28, 1995 -- ****************************************************************** CALL TO ORDER The Regular city council Meeting was called to order by Mayor. Washburn at 7:04 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Councilwoman Brinley. ROLL CALL PRESENT: COUNCILKF~EP.S: AIJONGI. nENDER, BRINLEY, PAPE, WASHBURN ABSENT: COUNCILMEKBERS: NONE Also present were: City Manager Molendyk, City Attorney Harper, city Planner Leslie, Building & Safety Manager Russell, Community Services Director Sapp, Public Services Director Tecca, Manager of Special Projects Watenpaugh, Special Projects Coordinator Wood and City Clerk Kasad. - PRESENTATIONS/CEREMONIALS Mayor Washburn commented on Helen & Ralph Byrum's 75th Wedding Anniversary and read a Proclamation commemorating this event, which will be forwarded to them. A. Proclamation - Chief Terrv Schmutz. (F:127.3) Mayor Washburn commented on the contributions of Terry Schmutz during the course of 30 years of service and pre&ented him with the Proclamati~n. Chief Schmutz thanked the Council for this recognition and noted that his service in Lake Elsinore has been an important part of his career. B. Presentation - Storm Update. (F:81.1) City Manager Molendyk explained that a local emergency was declared on March 17th and detailed the assistance received from other agencies. He thanked local contractors for their assistance in preventing damage. He further explained that the Council ratified this declaration and gave priority to the opening of Highway 74 and the development of a long term solution for the Gunnerson/Highway 74 area. PUBLIC COMMENTS - AGENDIZED ITEMS - PAGE TWO - CITY COUNCIL MINUTES - KARCH 28, 1995 MOVED BY BRINLEY, SECONDED BY BENDER AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: (F:44.4) a. City Council study Session - March 9, 1995. b. Regular City Council Meeting - March 14, 1995. The following Minutes were received and ordered filed: - c. Planning Commission Meeting - March 1, 1995. (F:60.3) d. Design Review Committee Meeting - March 1, 1995. (F:60.4) 3. Ratified Warrant List for March 15, 1995. (F:12.3) 4. Approved Nuisance Abatement Funding for mitigation of the public nuisance, public health and safety hazard cases that are currently active for the remainder of the Fiscal Year, in the amount of $21,000. (F:32.4) 6. Approved the following Cost Recoveries for Abatement and authorized the placing of special lien against the annual tax bill through the Riverside County Tax Collectors Office: (F:32.4) a. 328 Avenue 1 - Coral & Denise Cook. b. 3601 Nashland - Ronald & Marty Ellis. ITEMS PULLED FROM CONSENT CALENDAR 2. L.E.A.F. Animal Control Activity Report - February. 1995. (F:18.2) Councilman Alongi announced that Petsmart in Murrieta has donated $2,000 to L.E.A.F. for a spay and neuter clinic for those who cannot afford this service. He also announced that L.E.A.F. currently has two job openings. ..... MOVED BY ALONGI, SECONDED BY PAPE AND CARRIED BY UNANIMOUS VOTE TO RECEIVE AND ORDER FILED THE L. E. A. F. ANIMAL CONTROL ACTIVITY REPORT FOR FEBRUARY, 1995. 5. Temporarv Boat Launch Reopeninq. (F:92.1) Councilman Alongi indicated that his original understanding was that this boat launch ramp could be adjusted to accommodate changing water levels, but now he is reading that it cannot be moved back. Mayor Washburn indicated that this ramp is a semi-permanent facility and only the grade of the area allows for adjustment. Councilman Alongi further questioned why it could not be opened up sooner. City Manager Molendyk clarified that the recommendation in the staff report would be for opening the ____ .1::__ ..1-_ ___.! _-3 .1::___ .,___'- ___ _..I- ......._ ..._______....... __.......,_ PAGE THREE - CITY COUNCIL MINUTES - MARCH 28, 1995 - Councilman Alongi further questioned the ability to adjust the ramp. Mayor Washburn indicated that further adjustment might require a 404 Permit. Manager of special Projects Watenpaugh clarified that the intent of this request was to provide launch facilities because the ramps at the West End are not functional at the present water level. He clarified that the ramp is moveable to an extent, but that would not be necessary until the level drops substantially. Mr. Alongi indicated that the report was not written as it is being explained. Mr. Watenpaugh clarified further. Councilman Alongi inquired what is required to open the facility. Mr. Watenpaugh indicated that it will require rental of a ticket booth, power, telephone, signage and mowing and striping of the parking lot area. Councilman Alongi further questioned the time for opening and the period the launch will be functional. Mr. Watenpaugh clarified that the intent is to open the facility on or about March 31st and continue operation through August 20th. Mr. Alongi stressed that he would want the launch open as soon as possible. MOVED BY WASHBURN, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO AUTHORIZE STAFF TO PROCEED AS SOON AS POSSIBLE WITH THE RE- OPENING OF THE TEMPORARY BOAT LAUNCH FACILITY BASED ON THE INFORMATION PROVIDED IN THE STAFF REPORT AND THE NEED FOR A PUBLIC BOAT LAUNCHING FACILITY. 7. Housinq Rehabilitation Proqram ProDosal. (F:87.1) Councilman Pape requested that staff highlight this program and its benefits. - - City Manager Molendyk explained that this is a new program by the Department of Housing and Urban Development, referred to as 203K, which specifically deals with HUD housing that has been taken over through foreclosure. He further explained that they generally come on the market for a private individual with a 15% down plus the payment price on the house. He noted that because of the amount of foreclosures that have occurred in the last few years, the City can take over a house with a 30% discount and only 3% down. City Manager Molendyk explained that it is the city's intent to meet some of the low income housing needs in the community and assist in rehabilitation of som3 of the neighborhoods. He further explained that this would allow families, with a small down payment, to get into an owner-occupied home instead of renting. He stated that staff is asking for approval for a pilot program involving one or two homes to see how the program might be applicable to the community. Councilman Pape asked if the city could require that the amount of the down payment be equal to the amount of money the City has into the house to recover the cost of the rehabilitation. Special Projects Coordinator Wood explained that it is possible to place a family in a home from nothing ,... .. ___ _ _ _"'I _ __ ~ _ _ _ '1_" _ .... _ __ _...L. _..,jl ..L. L _ ..L.. PAGE FOUR - CITY COUNCIL MINUTES - MARCH 28, 1995 that he felt that this project would be a good way to improve the older areas of the community that have some HUD repossessed homes and will create affordable housing. Mayor Pro Tem Bender stated that he felt that this was a good program and could help to remove some of the problems the City faces. He suggested that the City try one or two of these homes, and asked if there was a limit to the amount of homes the city would have to commit to. He further questioned the loan the City would assume and whether the new buyer would have any recourse to come back to the City should the buyer default. Special Projects Coordinator Wood stated that it is a FHA guaranteed loan and once the house is in someone else's name the City is out of the loop. Mayor Pro Tem Bender stated that he concurs with Councilman Pape that this project encourages pride of home ownership. He asked if the two houses listed in the Agenda are just examples and if the city should choose to pursue this proj ect that it would not necessarily be the same two houses. Special Projects Coordinator Wood confirmed that these are just examples. He stated that one does happen to be available, but HUD provides monthly lists of the available houses. He stated that the City is not required to go with the HUD houses, and the City could pick any house that they choose, but it would not have the same margin of profit. Councilman Pape requested clarification that the City would get a better discount with HUD houses. Special Projects Coordinator Wood confirmed. Mayor Pro Tem Bender asked if the sales price on the example is reasonable and whether it would be a good home for a low income person. Special projects Coordinator Wood stated that he felt that these prices would be reasonable, since they were provided by people who are experts in the field. He stated that the city could control the price of sale up or down and that would determine the amount of profit the City would make. Councilwoman Brinley asked if the HUD program had graduating payments. Special Projects Coordinator Wood stated that they do not; and the sale would come with a fixed payment and are fixed rate loans. Councilman Alongi stated that he does not feel that Council fully understands this program. He explained that the program is designed to offer low income or first time home buyers an opportunity to buy with no money down. He explained that the reason the homes are in the condition they are is because the people couldn't afford them. He stressed that Council needs to understand the program, before they approve it. He stated that the person coming up with a down payment does not guarantee that they will take care of it and pointed out houses on Eisenhower Street, Monroe Street, and in Tuscany Hills and Centex developments; and the amount of foreclosures that exist. He noted that those persons paid a lot more than two or three thousand dollars. Councilman Alongi asked that Council set this item aside.and schedule a study sessi~n. He - - PAGE FIVE - CITY COUNCIL MINUTES - MARCH 28, 1995 Mariana Mohylyn, 305 W. Sumner, stated that she felt that this program would be a conflict of interest. She explained that she felt that the City should not be in the business of competing with private enterprise. MOVED BY ALONGI TO SET THIS ITEM ASIDE TO SET A STUDY SESSION TO MORE THOROUGHLY EXAMINE THE HOUSING REHABILITATION PROGRAM. - Councilman Alongi stated that if the City wished to enter into this type of program, then the city should offer an equal opportunity to the private sector. He noted that if the City can acquire the houses for 30% less than the private sector, then it is not equal and is putting public funds in competition with private funds. He stressed that everything should be on an even keel. THE MOTION WAS DECLARED DEAD FOR LACK OF A SECOND. Councilman Alongi stated that he would like to proceed with his comments. Mayor Washburn pointed out that if a motion is made and it fails to gain a second and the Chair feels that there is no need for further dialogue, then the floor is passed on to the next speaker. MOVED BY BRINLEY, SECONDED BY BENDER TO APPROVE THE HOUSING REHABILITATION PROGRAM AND AUTHORIZE STAFF TO PROCEED. - Councilman Alongi stated that Government should not go into business and compete with private business. He noted an article from the L.A. Times, July 11, 1993, which stated "the household earnings in the City of Lake Elsinore were noted and that 42.8% of the population of Lake Elsinore are under $30,000". Mayor Washburn clarified that if the program is adopted, it does not mean that the City would jump into anyone or two products. He noted that it would mean that the City would be looking into projects and still give Councilman Alongi or any other member of Council the time to critique or ask for a study session during Council Comments to assure that any proposed project was done properly. He further clarified that this would just allow the program to be established. city Manager Molendyk confirmed that this was the intent. Councilman Alongi stated that this would mean that Council is approving this program without the information necessary to approve it. - Mayor Washburn asked that Councilman Alongi make his points on the program; and suggested that if the city can rehabilitate and bring up to a proper standards, houses that were in a dilapidated state, under market and assist those persons who have a fixed income or are low or moderate income, that would be what Councilman Alongi has been asking for all along. Mayor Washburn reiterated his suggestion by asking Councilman Alongi "Would not the City be accomplishing what you have been ~~k~ng -'-~~~~ all these years". Councilman Alongi confirmed that PAGE SIX - CITY COUNCIL MINUTES - MARCH 28, 1995 buyers. He explained that with first time home buyers they must be sold with no money down and he questioned if the City would be willing to do that. Councilman Alongi stated that if the City did not want to sell with no money down, then it would defeat the program. He stated that if the City was going to participate in this program, then it would have to start off on an even scale. He stated that if the City was starting off at 30% less than the public sector, then it would not be fair. He explained that when he bids on these homes, he would be bidding 30% over the City and that this is not fair trade. Councilman Alongi reiterated that if the City does join this program and the City spends Tax dollars for __ this, then the jobs should go to local contractors to keep the income within the City and provide jobs within the community. He explained that his concern is that this program leaves too many openings for too many people. He stated that this program should be about getting houses for low to moderate income people and first time home buyers. Mayor Pro Tem Bender stressed that the program is based on buying HUD houses that the Federal Government already owns at a lower rate that might be obtained by someone else and are sitting vacant, some in a blighted condition. He stated that he felt that this was an opportunity for low income people to purchase a house if the City does step in, acquire them and rehabilitate them. He explained that he felt that this would be a good program because it will help clean up the City and provide home ownership for a lot of low income people. He asked Councilman Alongi, since he bids on the houses, if this might not be considered a conflict of interest and questioned whether he should be discussing this issue. Councilman Alongi stated that Mayor Pro Tem Bender could take his conflict of interest and place it in his right ear. Mayor Pro Tem Bender asked for a ruling by the City Attorney __ regarding a conflict of interest since Councilman Alongi participates in this program. Mayor Washburn stated that what he is looking at is on paper and the city would not get heavily in this project, but rather select homes that are in areas that are salvageable, need assistance; and he would be relying on staff to advise what would be the best possible thing to do. He explained that this might not be a good program for Nashland, but it would be good for other areas, such as a home in the older part of town that needed some TLC, then it would benefit the City to work with it and be a positive step. He noted that he does not see this as being in competition with private contractors who are trying to earn a living. Mayor Washburn reiterated that he sees this as something positive, but he does not see the City getting heavily involved in the housing business because there are other projects that need more attention than this project. Councilwoman Brinley stated that she understood that this was to provide the City with the opportunity to do a couple of test cases, and not a full block of 10 or 20 houses. She _"._'_~__..:I .'I-_.&... _'-_ PAGE SEVEN - CITY COUNCIL MINUTES - MARCH 28, 1995 - the conflict and the decision. Even if as the city Attorney he should say, yes or no, there is or is not a conflict, the individual is not required to follow his finding. He explained that simply voting on this program, in and of itself does not constitute a conflict of interest, however if it was in regard to a specific piece of property that Councilman Alongi wished to bid on, and voted on whether to purchase a piece of property or not, it would be a conflict of interest and would have to abstain from participation. city Attorney Harper stated that voting to have or not have the program would not constitute a conflict of interest. - Councilman Pape stressed that the program is designed to go in to some of the older areas of the community and homes that are generally going to be vacant or run down. It will give the City the opportunity to go in, fix them up and put in "move- in" condition, so someone can move in on a low or moderate income. He stated that his position has been that the City has enough low to moderate income housing, but the problem the City experiences is what the city already has, needs to be improved and this program addresses that issue. He explained that this would allow the city to go in and fix up what is already there instead of adding new. He stated that he did not feel that the City would be competing with the private sector since it would be focusing on older neighborhoods and he does not feel that it would be in competition. However, if the City should find out that someone else has interest in the house then the City can let the private sector have the first opportunity to bid. Councilman Pape stated that it is the intent of the City to see the houses fixed up, not necessarily do the work. He explained that the contractor will be picked by the mortgage company and the City is not involved in that end, so it will not take up staff's time; which is one of the nice features of this program. Councilman Pape called for the question. Mayor Washburn explained to the boy scout troop in attendance what "Call for the Question" meant. Councilman Alongi stated that the Council has a policy that allows every person on Council to voice their opinion and get all the input before the vote is taken, but in his opinion this Council does not abide by that policy. He explained that the buyer is not assuming HUD's old loan, it is a new loan and is for low to moderate income as well as first time home buyers and he does feel that this is a good program. He stated that he does not feel that the City should get into this business, but that he does feel that the City should assist those persons trying to find a home and spearhead that end, but not to get involved in the purchase of the houses. THE FOREGOING MOTION WAS CARRIED BY A UNANIMOUS VOTE. BUSINESS ITEMS 31. Annexation to the Northwest Mosauito & Vector Control District - Resolution No. 95-20. (F:161.1) PAGE EIGHT - CITY COUNCIL MINUTES - KARCH 28, 1995 ELSINORE INTO THE NORTHWEST MOSQUITO ABATEMENT DISTRICT IN ORDER TO PROVIDE VECTOR CONTROL SERVICES; AUTHORIZE STAFF TO CONTRACT WITH NWMAD TO ENTER INTO A CONTRACT FOR VECTOR CONTROL SERVICES FOR SIX MONTHS IN THE AMOUNT OF $13,860.00; AND APPROVE THE TRANSFER OF $13,860.00 FROM THE GENERAL FUND RESERVES TO AN EXPENDITURE ACCOUNT TO IMMEDIATELY INAUGURATE VECTOR ABATEMENT SERVICES IN THE INTERIM TO OBTAINING ANNEXATION TO THE DISTRICT. RESOLUTION NO. 95-20 A RESOLUTION OF THE CITY COUNCIL OF APPLICATION BY THE CITY OF LAKE ELSINORE REQUESTING THAT THE LOCAL AGENCY FORMATION COMMISSION (LAFCO) TAKE PROCEEDINGS FOR THE NORTHWEST MOSQUITO ABATEMENT DISTRICT TO EXPAND SERVICES TO PROVIDE THE ENTIRE CITY OF LAKE ELSINORE WITH VECTOR CONTROL SERVICES. - 32. Establishment of Solid Waste Collection Fees on the Property Tax Roll. (F:163.1) City Manager Molendyk explained that the city presently has a franchise agreement with CR & R Inc., for waste collection and recycling services in the City. He further explained that in July of 1994, CR & R received approval from the City Council to deal with some of the delinquent refuse accounts by placing them on property tax rolls. He noted that as of August 5, 1994, the City had a total of 451 residential properties for which billings were placed on the tax rolls and Mr. Fahrion of CR & R has requested the opportunity to again discuss this matter with the city Council. city Manager Molendyk explained that as of February 1995, there are a total of 564 additional delinquent accounts, and it is not only a problem for CR & R, but it impacts other people in the community as well. He noted that CR & R is asking for further consideration to place the refuse collection on the property tax bill so that everyone in the city will pay their fair share and keep the cost of refuse collection down. - David Fahrion, Vice President for CR & R, gave a history of the project for the last 12 months. He asked that Council consider adopting the program of placing all residential refuse accounts on the tax roll for collection beginning July 1, 1995, and approve the placing of a lien on all property having refuse accounts that are delinquent at least 90 days as of July 1, with a public hearing date of April 11, 1995, to begin the process for the following reasons: 1) if this is the way the fees are collected there will be no trash uncollected at any time within the city; 2) if CR & R is paid in full then the City would receive their franchise fees in full; 3) residents would pay the same fee for this program as they currently pay; 4) most residents have their property related fees impounded and would be paid on a monthly basis rather than a quarterly basis; 5) avoid CR & R requesting a special rate increase to off-set for the people who don't pay to the people who do pay; and 6) the City Council would not have to deal with this situation annually. Mr. Fahrion stated that yesterday his company did the quarterly billing for April, May and June and at that time there were 398 _"'I _ .. ~ __ ___ _ _ __ __ ~ _ __ _ _ _ ft _ _ ___,_ __ _ _ __.. _ ___,_ _ ___ _ _ _ __ ___.. _ _ ... ~ .. .. _ _"'I PAGE NINE - CITY COUNCIL MINUTES - MARCH 28, 1995 - Councilwoman Brinley asked how this would benefit the City to place the billings on the tax rolls. She asked if residential and commercial accounts would receive a discount. Mr. Fahrion stated that the Commercial would not be included in this program and the City would benefit from a reduction in illegal dumping. Councilwoman Brinley stated that she was looking for benefits to the residents since CR & R would cut costs for their accounting and asked if that would be passed along to the users. Mr. Fahrion explained that under this program they are paid six months after the service is rendered; so by placing the billings on the tax rolls it would secure the funds and there would not be a request for a future rate increase imposed for the people that are not paying. Mr. Fahrion stated that it does cost CR & R additional money to place the billings on the tax rolls because of the required notification, public hearing and a County Fee levied for placing the billings on the tax rolls. He explained that this would amount to approximately $1.43 per parcel. Councilwoman Brinley stated that she understood those fees, but stressed that his company would be collecting 100% of the fees and the persons who do make their annual tax paYment would bear the burden if their fees are not impounded. Mr. Fahrion explained that the cost of billing is approximately $.25 per unit per month and quarterly it is $.75. He further explained that to borrow the money from his bank until the County pays is $.28 per resident. Councilwoman Brinley stated that her biggest problem is taking a private enterprise and placing the burden on the taxpayer, since they have so many other things that are added, that it is another burden to add a trash bill. She stated that if she were going to add something to her tax bill she would like to pick it herself and be given a choice. - Councilman Pape questioned turning the collections over to a collection agency and asked why it was necessary if the delinquencies are going on to the property taxes. Mr. Fahrion explained that his company would like to recover their funds and some of the delinquencies go back to July 1994, which cannot be placed on the tax rolls until July 1995, and the collection from the tax rolls will only be 1/2 of the amount due and would not be received by CR & R for 18 months and the remainder 24 months after the account became delinquent. Councilman Pape stated that if it is on the tax rolls it guarantees that the money will be paid and it is not an issue of whether you are not going to get paid, but rather an issue of cash flow. Mr. Fahrion stated that one of the reasons that he requested that this issue come back to City Council is because last year they agreed to place the delinquent accounts on the tax rolls and unless all of the accounts are placed on tax rolls this issue will have to be addressed each year and the list will continue to grow. Councilman Pape stated that he does not have a problem making it easier for CR & R to place their delinquent accounts on the tax rolls, and commended CR & R for their good work in the City and the special programs that they support. Councilman Alongi stated that he would be more in favor if CR .. -. _ _,__ _"'I ~___ ___ ___"'IJ1__ PAGE TEN - CITY COUNCIL MINUTES - MARCH 28, 1995 of that responsibility. He explained that he is a property owner with renters and it was added to his tax roll and pointed out that had he known that his renter was not paying his trash bill, he would have seen to it that it was paid. He stated that not only was the delinquency placed on his taxes, but the next year as well; which as he understands is part of the agreement with the city. Councilman Alongi stated he would be more in favor of an administrative fee to cover delinquencies and not passing the burden on to the general user that pays their bills. He noted that if the trash bill is added to the tax roll it will create a hardship for some of the residents and he would like to avoid that. He explained hat he does not feel that any resident within the city should go without trash collection whether it is paid or not since they will receive the money for the service one way or the other. Councilman Alongi stated that there is a major problem with illegal dumping and if the trash were collected whether paid or not, the homeowner knows that they are responsible and they will be charged either through their billing or on the tax rolls plus an administrative fee, for their delinquency and he suggested that this would help to eliminate illegal dumping. Mayor Pro Tem Bender asked about the $66,597 which CR & R had to write off as uncollectible. Mr. Fahrion explained that this is the amount that his company had written off from 1992 through 1994 since the first year that his company handled the contract. He noted that they did not come to Council to asked for the delinquencies to be applied to the tax rolls during that period; therefore the amount is inclusive of the first two years that CR & R did trash collection for the city and the accounts were unavailable for collection. Mayor Pro Tem Bender asked if this was accounts receivable that CR & R assumed from Rodriguez Disposal. Mr. Fahrion stated that he had not bought any of the accounts from Rodriguez Disposal and that they were all new accounts. Mayor Pro Tem Bender asked what CR & R is doing now, are they writing them off or placing them on the tax rolls. Mr. Fahrion stated that last year's delinquent accounts were placed on the tax rolls and as they were collected the city was paid their franchise fees as provided in the contract. Mayor Pro Tem Bender requested an accurate picture of the potential of uncollected accounts. Mr. Fahrion explained that in the staff report the amount of $49,926 is current unpaid fees accumulating since July 1, 1994, because everything was cleaned up from last year and would ultimately be added to the tax rolls to recover the outstanding debt. Mayor Pro Tem Bender stated that at the current rate the loss to be expected would be approximately $75,000 and asked if this would be placed on the tax rolls for collection. Mr. Fahrion confirmed. Mayor Pro Tem Bender stated that in the report it states that if the billings are not allowed to go on the tax rolls that there will be a request for a rate increase of not less than $.94 per resident. He asked if this would be per month, quarterly or yearly. Mr. Fahrion stated that it would be per month. ......_'--__~ __ ..L.'--__ _~...3______....:I .....1-._ _....:I_.!_.!_.....__......:___ .1::__ __..3 _....._....._.:1 - - PAGE ELEVEN - CITY COUNCIL MINUTES - KARCH 28, 1995 - for the bills. He stated that now that he is aware of the responsibility of the trash bill, he can assure Mr. Fahrion that the trash bills will get paid. Councilman Alongi asked what CR & R's gross dollars were from July to February. Mr. Fahrion stated that the gross billings represent approximately $70,000 a month. Councilman Alongi stated that if the penalty were to be increased from 10% to 15% or even 20% this would cover the inconvenience and expense of billing the people that are not paying. He explained that in his opinion, now that the people understand the program, he does not feel that the delinquencies are going to be as high as they have been. He again pointed out that he would like to see the trash picked up from each and every house, whether the bill is paid or not to prevent illegal dumping. Mayor Washburn pointed out the chart in the Agenda Report and pointed out that delinquencies have decreased since the beginning of the January 1994. lIe asked if would be possible to place those delinquencies on the tax rolls and continue to educate the public and see if possibly then the delinquencies would drop to 5% or less. He stated that similar to the other Councilmembers, he has heard from quite a few people that don't want their trash billing on the tax rolls. Mr. Fahrion stated that if Council would take the action to allow CR & R to use the tax rolls for collection of delinquencies then it would help to solve the problem. He noted that as each new residential service signs up it is done with the property owner only and this is helping to avoid some of the past problems. He noted that the 10% is more than enough to cover the cost if CR & R is allowed to add it to the current delinquencies and place them on the tax rolls. Mayor Washburn stated that he would not have a problem with adding the delinquencies each year to control the problem. He explained that he has a fear of an increase to the tax roll which are becoming an increasing hardship on individuals. - Councilman Alongi reconfirmed his opinion that if we want to stop illegal dumping, then all the residents trash must be picked up and the City must be able to assure CR & R that they will get their money. Mayor Washburn asked if there is enough time to get this on the agenda to do as Council did last year and place just the delinquencies on the tax roll. Mr. Fahrion stated that there is enough time. Councilman Alongi indicated that when this program was done last year it was approved to be done each time wi thout bringing it back to Council. Mayor Pro Tem Bender stated that it was his understanding that the penalty fee was to be waived one time only and the delinquencies were to be placed on the tax roll, but it was also approved that the delinquencies would be placed on consequent tax rolls with the penalty and to his understanding was an ongoing program. Councilman Alongi concurred. PAGE TWELVE - CITY COUNCIL MINUTES - MARCH 28, 1995 not stop service anywhere in the City. He explained that they had assumed that they would not get the opportunity again to place delinquencies on the tax rolls this year. Mr. Fahrion stated that they would reinstated full service to the City immediately for those people who have not paid, as well returning to Council in July for the delinquencies. Mayor Washburn stated that it is not necessary to take action on this matter. 33. Special Event Permit - Antiaue. Craft & Collectible Street .- Faires. (F:151.1) city Manager Molendyk explained that this is a request for a Special Event Permit, by the Downtown Business Association for street Faires. He noted that just prior to the meeting he had received a note from Rick Zwiefel requesting a change in the dates of the Faires to May 27, July 22, September 23, and November 25, 1995. City Manager Molendyk explained that this is a non-profit organization and have met all the requirements of the Community Services Department and the Police Department. Sam Jiron, President of the Downtown Business Association, spoke in support of the Special Event Permit and asked that Council approve their application. Rick Zwiefel, Chairman of Special Events for the Downtown Business Association, stated that he would be available to answer any questions. Mayor Washburn stated that he went over the project with Mr. Zwiefel and he will have comments later. Councilman Pape asked for clarification regarding the __ collection of sales tax. Mr. Zwiefel stated that when vendors come into the City to sell, his organization will check to be sure that they are licensed and at that time they will be given an envelope on which they will have to show their gross sales both taxable and nontaxable (the nontaxable is when another dealer buys an antique or part), and amount of sales tax. He stated that the sales tax will be collected by himself or another volunteer before the vendor leaves the event and that sales tax will be paid to the State Board of Equalization through the Downtown Business Association to assure that the City gets their proper share. Councilman Pape inquired whether the paperwork presented is all current. Mr. Zwiefel stated that he has verified with the State that the Downtown Business Association's paperwork is current and in place. City Attorney Harper stated that he has been in contact with Scott Bennett, Attorney for D.B.A., and he is also assured that they are in good standing. Mayor Pro Tem Bender asked Mr. Zwiefel if most of the businesses in the area do support and concur with the street 'Ii':::::Il..;,...'O~ v,.... '7T..7";,o-F.o.1 ~~~~.o.r1: +-......"'::3l+- ~'lI"'\.............,..",,~........~....._,,7' .........7_ ...,.____ ___ PAGE THIRTEEN - CITY COUNCIL MINUTES - KARCH 28, 1995 "- in May is during the Frontier Days Rodeo, but there is no conflict since there is no parade. Mayor Pro Tem Bender stated that in the staff report it says that each event is on a trial basis and an evaluation will be made following each Faire and asked if they were aware of the additional police conditions. Mr. Zwiefel stated that they were made aware of the conditions and will comply. Councilwoman Brinley asked the Executive Director of the Chamber of Commerce if there was a conflict with the Frontier Days events. Ms. Shelton stated that there was not. Councilman Pape asked if they were going to check that the vendors coming into the City were bringing in quality items and not garage sale items and used clothes. Mr. Zwiefel stated that where they advertise is in Antique and Collectible magazines, which are quality monthly magazines, and antique shops in Temecula, Pasadena and San Diego. He explained that they have the right to refuse anyone if they have used clothing or junk. Councilman Pape noted that Main Street will be closed and asked if it will create a problem if Lakeshore is also closed. Mr. Zwiefel stated that traffic would be detoured to spring Street, down three blocks and then back to Main Street. Public Services Director Tecca stated that most of the traffic would be directed up spring Street if Lakeshore Drive is closed, therefore it does not create a problem. He cautioned Council and the public that if the boat launch is open, then there is the possibility of some congestion but he does not see it as a major problem. - Councilwoman Brinley asked if there is a Rodeo going on that weekend and Lakeshore Drive is closed, will Franklin Street cause a problem as it comes up to Main Street. Public Services Director Tecca stated that Franklin Street is not a part of the detour since it will not handle a large volume of traffic. He explained that all of the signs will direct people to the freeway. Mayor Washburn stated that there is a discussion with the Chamber and the contract with the Chamber spells out that there is going to be cooperation with the Chamber and the merchants. He asked why there was no communication with the Chamber. Jeep Shelton, General Manager of the Chamber of Commerce, stated that they were approached several months ago by two representatives of the Downtown Business Association and the matter was placed on the Agenda for the Chamber Board to discuss; the day before the meeting, there was a request to pull the item and as a consequence it was pulled. She explained that she later found out that the D.B.A. decided to do this on their own. Mr. Jiron stated that at the time it was decided by the members of the D.B.A. to sponsor the event alone, however the Association has discussed this issue and would be willing to h~VQ ~hQ rh~mhQr ~n-~nnn~nr ~hQ QVQn~ u~~h ~hom PAGE FOURTEEN - CITY COUNCIL MINUTES - KARCH 28, 1995 that he did not have a problem with looking at one event and then looking at the merchants working with the Chamber through the City contract to do other special events on Main street. He explained that he does have a problem with what has been done in the past through the contract with the Chamber for four events when the City has given them yoke of responsibili ty and supported them with money. He further explained that to expand it to four would not be something he could support. Mayor Washburn stated that he sees what the merchants are trying to accomplish, which is to generate activity in the downtown area and the last Antique Faire did __ just that, but he would like to see the Chamber and the D.B.A. work together instead of independent of each other since the City has an agreement with the Chamber to accomplish just that obj ecti ve. Mr. Zwiefel rei terated that the Downtown is starving and they did speak to the Chamber and at the time it was not feasible for them to do the Faire, so the D.B.A. decided to do the Faires on their own. He further explained that if these street Faires were approved, they would love to work with the Chamber on any other events. He stated that they have been in communication with the President of the Chamber ,and they already have ideas that the D.B.A. will pursue with them. Councilwoman Brinley asked if the D.B.A. would have a problem with Council approving the May street Faire and require that the remainder of the Faires be coordinated with the Chamber as a co-sponsor. Mayor Washburn requested confirmation that all of the fees were paid by the promoter and the insurance requirement needs were met, along with security which will be done by volunteers and asked if there will be a staff person from the City on hand. Community Services Director Sapp explained that there will be a staff person on hand and the D.B.A. will pay for _ their services. He clarified the fact that the Faire on May 27 will have to be revaluated with regard to security, since there will be a major event in the City and there will be a lot more people and traffic. Mayor Pro Tem Bender stated that he does not see a problem with the Rodeo date since it might create some synergy and indicated that he feels both functions will benefit from having their events on the same day. He suggested that this will aid in promoting business and local participation. He noted that he is more in favor of setting the four dates because Council has the right to evaluate it, date by date and the main reason is, if the events are to be successful, there must be time lines to place to get their ducks in order. Mayor Pro Tem Bender stressed that Council retains the right to evaluate the events. Councilwoman Brinley stated that she was not suggesting that the D.B.A. change the dates, but rather keep the same dates and work together with the Chamber. Mr _ .T; rnn .::IlC!1rorl .; T ....'h~,J' TaY''; l' .....~'Wr" ....""_ ____ ~_...__ ________-':1 PAGE FIFTEEN - CITY COUNCIL MINUTES - KARCH 28, 1995 - event as well. been open. Councilman Alongi stated that the D.B.A. is a recognized non- profit organization licensed by the state of California and he takes offense that Council dictates to a recognized organization by telling them that in order to have an activity they must work with the Chamber of Commerce. He noted that a Chamber of Commerce is not part of a Downtown Business Association. He stressed that the D.B.A. is an independent organization and has placed a billboard promoting the Downtown which the Chamber does not contribute to. Councilman Alongi questioned the need to come back to the City Council to ask for approval for any activity and be told that they have to deal with the Chamber of Commerce. He stated that if the D.B.A. chooses to voluntarily to deal with the Chamber of Commerce, that's fine, but he feels that the Council is out of order instructing a recognized organization to deal wi th another recognized organization, or they are given the impression that their activities will not be approved. She explained that their doors have always Mayor Washburn state that the reason he feels that way is because if you examine the request there are three businesses which say they represent the three blocks that will be included in the Street Faire. He explained that he does not feel that they represent the majority of those who would or would not support it. He noted the Chamber's responsibility to represent different areas in the community. He noted the problem with polarization and this might be a way to get the organizations to come together. - Councilman Alongi stated that it is not up to this Council to dictate what the D.B.A. should and should not do. He explained again, that they are a recognized organization in the community and in the state of California and he does agree with the Mayor that it is necessary to not only promote the downtown area, but also the Brookstone area and the rest of the community. He further explained that he believed that if the two organizations wish to work together it should be in their ball park. Councilwoman Brinley stated that Council was not dictating, but asking. Councilman Alongi disagreed. - Mayor Washburn stated that what he was concerned with was if the D.B.A. was fully represen~ing the area being discussed and he felt with the Chamber's cooperation or support it would be a more positive approach. Councilman Alongi stated that the same thing could be said about the Chamber of Commerce since all of their members do not necessarily approve of what they do. He noted that it can be said of any organization. He explained that the members present were elected by the members of the D.B.A. Mayor Washburn stated that after finishing the dispute of the funding, when the funding was pulled, it has displayed problems. Mayor Pro Tem Bender stated that this is two groups trying to promote business and he feels that Council is trying to make +-'h.o""" .p"; ..-.rh+- U.o re+-......~~~~rI +-h<!!!k+- .....""'.; '" .; '" ....,h"""'+- Y.'I''' """'..._ +-...."...: __ "'-_ PAGE SIXTEEN - CITY COUNCIL MINUTES - KARCH 28, 1995 Councilman Alongi suggested that all four dates should be approved. MOVED BY BENDER, SECONDED BY ALONGI AND PASSED BY A 3-2 VOTE WITH BRINLEY AND WASHBURN CASTING THE DISSENTING VOTES TO APPROVE THE SPECIAL EVENT PERMIT FOR ANTIQUE, CRAFT AND COLLECTIBLE STREET FAIRES TO BE HELD ON KAY 27, JULY 22, SEPTEMBER 23, AND NOVEMBER 25, 1995. Mayor Washburn stated that with the majority of Council approving this item he would strongly suggest and ask that the ___ D.B.A. work with the Chamber to make these successful events. THE CITY COUNCIL MEETING WAS RECESSED AT 8:54 P.M. THE CITY COUNCIL MEETING WAS RECONVENED AT 8:56 P.M. PUBLIC COMMENTS - NON-AGENDIZED ITEMS Jack McColley, representing Boy Scout Troop 430, explained the requirements for merit badges and Eagle Scout rank within the organization. He noted the recent participation of Mayor Washburn and Councilman Pape at a Troop meeting to explain the city function and answer questions. He thanked the Councilmembers for their assistance and presented them Certificates of Appreciation. Mariana Mohylyn, 305 W. Sumner, questioned the Nuisance Abatement program and whether equal treatment was being afforded to all property owners. She expressed concern that conflict of interest might occur with the housing program discussed as item no. 7 of this agenda. Vanek Star, indicated that he was previously with the Corps of Engineers and offered his assistance in solving current flooding problems. He noted that he would be willing to serve on a _ committee to work on solutions. Mayor Washburn indicated that he would provide an update on this matter. Lorraine Sostre, 29363 Schooner Lane, addressed the issue of conflict of interest and provided the definition of Conflict of Interest from the State Code. She explained that it is really unclear what property Councilman Alongi does or does not own on Main Street. She noted that on February 14, 1995, he stated that he had control over 114 South Main Street, on the 28th he denied that he owned 313 or 317 North Main Street and yet she believes that he does have some interest in that property since the County Clerk does not have any record of that property being taken out of his name. Ms. Sostre stated that she feels that there is a possible conflict of interest and suggested that Councilman Alongi write to the FPPC for technical assistance. She stated that in May, 1994, Councilman Alongi participated in making decisions concerning the Disposition and Development Agreement for the Red Lion Inn and Councilman Alongi does own property close to the site and did write for technical assistance from the FPPC and she alleged that he was in violation of the laws on conflict of interest. She noted that Councilman Alongi does own property at 1c::;,n 1;' T_~"~~}""",,,,1"'Ilo T'\.....;~r...... ~..,A __~ ..::~ "'.7__ __.... ~.:__,___..:I ______,_.. __ '-_ PAGE SEVENTEEN - CITY COUNCIL MINUTES - KARCH 28, 1995 explained that on February 28th, Councilman Alongi made a comment that he does not have control of 313 or 317 N. Main street and then commented that he owned quite a few pieces of property in this community, that more than 95% of the property is in this community. Ms. Sostre pointed out that in Councilman Alongi's Schedule B of his statement of Economic Interest, if 313 and 317 N. Main are removed then he has no property and 95% of nothing is nothing. She stated that he had told her that he owns 31 properties in this town and asked if Councilman Alongi could respond to these items. - CITY MANAGER COKKENTS None. CITY COUNCIL COKKENTS Mayor Pro Tem Bender commented on the following: - 1) Expressed appreciation to the local contractors participated in recent flood prevention efforts. further thanked city staff and the other agencies have assisted with these problems. who He who 2) Noted that he has been on the Council for approximately 9 months and requested that courtesy prevail at the Council table. He indicated that while he asked a question of the City Attorney, he was not making an accusation of conflict. He requested the respect that a public office deserves, and suggested that it also carry between members of the Council. He noted that he continues to hear that he doesn't know anything and suggested that his years have given him much experience and knowledge which he would like the ability to use freely. He stressed that he does read, think and have the ability to ask questions for clarification to make a better decision. He requested acknowledgement of that ability and that the Council refrain from personal jabs. Councilwoman Brinley commented on the following: 1) Concurred wi th Mayor Pro Tem Bender's comments and suggested that Councilman Alongi needs to give respect to be respected. She stressed that she would like the acknowledgement that she understands and addresses concerns, even if it is done differently. She stressed a need for respect of each other's opinions, and a joint effort to provide solutions. She indicated she was tired of hearing that she doesn't know anything. 2) Thanked staff, the other agencies, volunteers, and others for their efforts during the latest storms. Councilman Alongi commented on the following: 1) Thanked staff for work during the floods with sandbagging and building levees. PAGE EIGHTEEN - CITY COUNCIL MINUTES - MARCH 28, 1995 4) Advised that the Amber Ridge Tract sewers have still only had a 10% connection to the system for a cost of approximately $60,000 per house. Addressed respect and conflict of interest and stated that if Mr. Bender had a concern with his conflict he should have called; he did talk to the City Attorney and there was no need to discuss conflict at the Council table. He explained that he has consulted with the city Attorney to be sure that he was not in conflict. He stated that when Red Lion came to the Ci ty , he had discussed the ability to vote on the issue with the City Attorney since he did have interests in property on Lakeshore. He explained that the City Attorney advised him and he did vote on the issue, then finding he still had questions he made contract with the FPPC and in their return letter they did not say that he could not vote, but rather recommended that he not vote. He stated that in this instance he had to make a decision who to listen to the city Attorney or the FPPC; and choose the city Attorney. He further explained that in 1991 when he decided to run for Council, he broke his partnership up and took the financial end of the business. He stated that as far as collecting income from the Lakeshore property, he confirmed that he does receive income, but he does not own it. He stated that it is his personal business why, no one else's business. Councilman Alongi addressed the property at 313 & 317 N. Main street and stated that in a letter to the City Attorney, City Manager and Council indicating that it is not his fault that the County is not up to date in recording items and rei terated that he has no interest in that property, however it is still in his name. Councilman Alongi stated that he has done what he is supposed to do and he has not done business for over 3 1/2 years in this Communi ty. He explained that it has cost him over $300,000 to sit in the Council chair and take the insults that have been dealt him by the lady tonight and he stated that he would not do it anYmore. He noted that people had better have their ducks in order and the information correct when they bring it before Council. He stated that he had owned 31 pieces of property, but those were all changed back to the different owners that were involved, he got out of it and took a financial loss, so what is en the 721 form is correct. Councilman Alongi stated that he would no longer answer the financial questions because 99% of the people in the communi ty do not know what it is about anyway. He questioned if having someone come to the podium and state that she is not a druggie or a felon, whether she was saying that he was one. 6) Addressed Councilwoman Brinley and commented that she votes on something that she knows nothing about, and that was exactly what he meant. He suggested that she voted on several things that have been brought before Council ~h::l~~ !::hA n; n nnt h::lV~ full knowl ~da~ of _ H~ stat~d that 5) - - PAGE NINETEEN - CITY COUNCIL MINUTES - KARCH 28, 1995 - though the representative was correct, they would do what they want to do and they are going to take the time that they want to take before they approve anything. Mayor Washburn asked if this letter could be discussed at Council. City Attorney Harper stated that although the letter was addressed to him it does not make it privileged information and he had copied it to everyone in the city. He did caution the Council that the matter will come up on an appeal in the future, and it is best not to comment at this time. - Councilman Alongi stated that in the letter it states that one of the Council stated to a private citizen that the councilperson knew that the City was not ready for an up-scale restaurant, but the pad was the best location for it and if it takes five years for the City to grow to the point where such a restaurant is interested in the City, we can wait and this pad will be ready for them. He pointed out that this person was telling a private citizen that there would never be a Jack In The Box on that site or any other food restaurant on that site unless it was a quality restaurant. He noted that the Council does not have a right to do. Another statement was made by another councilperson to a real estate agent that he should call Jack In The Box and let them know that this city will not approve that Jack In The Box and by saying words to the effect that "I know that we'll have it our way". He questioned the position of that Councilperson. He stated that this points out the fact that everyone makes mistakes, and he would call that a conflict, but not in the legal sense. 7) He stated that to defend himself as a Councilperson, he has agreed to put on a program with Channel 3, once a month for one hour, every 2nd Thursday; during which he will address the issues occurring in the city and inform the public regarding what is going on. He stateod that he will be airing 4 times in October, since the~e w~:l be an election going on and he will provide anSNers. Councilman Pape commented on the following: 1) Noted city direction to address the prcblems c: Highway 74, and advised that there will be a meetil1~ with Caltrans to address this issue. He no~ed that ideally the road should be raised 4 to 5 feet. 2) Thanked the Scout troop for the certificate of Appreciation and noted that it was a pleasure to respond to their questions which were very good. 3) Thanked Councilwoman Brinley for her efforts to bring the area Pastors together for a joint Easter Sunrise Service. He noted that after she brought them together they proceeded on their own. He further noted that it appears it will be a quality event. - PAGE TWENTY - CITY COUNCIL MINUTES - KARCH 28, 1995 Executive Director Shelton confirmed that the event would still be held, but the date would be announced later. 3) Commended staff, Mary Moreland, police, fire and others for their efforts during the recent rains. He noted that the solution for Highway 74 will be found through collective efforts by all agencies. 4) Announced the Senior Center Baking Contest on Thursday, April 6th, and encouraged participation. - 5) Reminded the Community that Baseball Season is here, beginning with the Exhibition Game on April 4th. He noted the new Mayor's perpetual Trophy to be awarded to Rancho Cucamonga on that date at the Diamond and on April 5th at the Quakes Stadium. CLOSED SESSION a. Lake Elsinore Associates vs. City of Lake Elsinore - Case #200767. THE CITY COUNCIL MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE REDEVELOPMENT AGENCY TO DISCUSSED THE ABOVE LISTED MATTER AT 9:35 P.M. THE CITY COUNCIL MEETING WAS RECONVENED AT 10:21 P.M. NO ACTION TAKEN. ADJOURNMENT MOVED BY WASHBURN, SECONDED BY BRINLEY AND CARRIED BY UNANIMOUS VOTE TO ADJOURN THE REGULAR CI COUNCIL MEETING AT 10:22 P.M. P; /J)bJl-- WASHBURN, MAYOR OF LAKE ELSINORE - 2flw VICKI XASAD, CI~Y CLERK CITY OF LAKE EJ!8INORE