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HomeMy WebLinkAbout05-23-1995 City Council Minutes r. r I MINUTES REGULAR CITY COUNCIL MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MAY 23, 1995 ~ ****************************************************************** CALL TO ORDER The Regular City Council Meeting was called order by Mayor Pro Tem Bender at 7:00 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Sheriff captain Boyd. ROLL CALL PRESENT: COUNCILHEMBERS: ALONGI, BENDER, BRINLEY, PAPE ABSENT: COUNCILHEHBERS: WASHBURN Also present were: City Manager Molendyk, city Attorney Harper, Administrative Services Director Boone, city Planner Leslie, Building & Safety Manager Russell, Community services Manager Sapp, Public Services Director Tecca, Manager of Special Projects Watenpaugh and city Clerk Kasad. PRESENTATIONS/CEREMONIALS ~ Mayor Pro Tem Bender noted that there would be several additional presentations. A. Proclamation - National Public Works Week. (F:128.2) Mayor Pro Tem Bender called Public Works Manager Payne forward for presentation and noted the display set up at the Cultural Center. He read and presented the Proclamation, thanked staff for their ongoing efforts. Public Works Manager Payne highlighted the display and thanked the City Council for this recognition. B. Report on Lake Elsinore Outlet Center. (F:150.2) City Manager Molendyk suggested that this matter be heard at this time rather than during the Redevelopment Agency Meeting. He noted that the Center is presently at 85 stores and soon expanding to 100 stores. He further noted that the decision has been made to expand across the freeway as well. ..--. Kenny Smith, representing McArthur Glen, thanked the Council for the opportunity to provide this update and presented an elevation of the fourth phase which is currently under ~nn~~nl~~inn_ u~ nn~~ri ~h~~ ~h~ r~n~~r ~~ ~h~ ~vi~~inN ~i~~ PAGE TWO - CITY COUNCIL MINUTES - MAY 23, 1995 seven minutes. He explained that the shuttles, which are like the Disneyland trams, have been ordered and will be delivered in the next 60 days. He stressed the growth of the Center over the last five years and the increasing popularity of Outlet Centers in general. He advised that the proposed facili ty on the other side of the freeway, will add an additional 400,000 square feet of stores. He stressed that the Center serves as a tourist destination and the average shopper travels between 60 and 90 miles to shop there. - C. Sports Complex & Entertainment Facility. (F:131.1) City Manager Molendyk noted that on May 18th a Sports Complex to include a raceway, golf course, etc. was announced. He indicated that several comments have been received which need clarification. He stressed that the facility will be constructed using private dollars and the golf course will be a Municipal Golf Course open to the public. He indicated that Mr. Bowlby was present at this meeting to respond to any questions and provided his phone number, (909) 940-9677, for the public to call and receive clarification or explanations of specific issues. D. Water Ski Race. (F:151.1) City Manager Molendyk noted that Mr. Peter Dawson was present with a videotape of the April 22nd Boat and Water Ski Race on the Lake. Mr. Dawson played the video and commented on the activity, noting that there were approximately 50 boats for the two days of racing. He also noted that skiers were present from all of the western states and the winners from this race will be competing in Europe as part of the American team. He further noted that the next race on Lake Elsinore will be September 14th and 15th. He thanked Public Works Manager Payne for filming the race. -- PUBLIC COMMENTS - AGENDIZED ITEMS A request was received to address Item No. 6 of this agenda and deferred to that discussion. CONSENT CALENDAR The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 2, 5, 6 and 7. MOVED BY PAPE, SECONDED BY BRINLEY AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 1. The following Minutes were approved: (F:44.4) a. Regular city Council Meeting - May 9, 1995. PAGE THREE - CITY COUNCIL MINUTES - HAY 23, 1995 3. Received and ordered filed the Investment Report for April 30, 1995. (F;12.5) 4. Ratified Warrant List for May 15, 1995. (F:12.3) - 8. Approved the following Cost Recoveries for Abatement and authorized the placement of special liens against the annual tax bills through the Riverside County Tax Collector's Office: (F:32.4) a. 108 West Heald - Gordon Feron. b. 106 South Chestnut - Rodolfo & Maria Camacho. c. 1160 Park Way - Manuel Leal. ITEMS PULLED FROM CONSENT CALENDAR 2. L.E.A.F. Animal Control Activitv Report - April. 1995. (F;18.2) Councilman Alongi noted that L.E.A.F. is offering a program to low income families which would provide free cat and dog, spay and neuter services funded by business contributions. He also noted that the city's 1995-96 proposed Budget contains a proposed reduction in the funding to L.E.A.F., and stressed the need for community assistance, including old newspapers to be shredded for the puppy cages. He further noted that to date this year they have adopted out 948 dogs and 550 cats. MOVED BY ALONGI, SECONDED BY BRINLEY AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO RECEIVE AND ORDER FILED THE L.E.A.F. ANIMAL CONTROL ACTIVITY REPORT FOR APRIL, 1995. - 5. Award of Contract - Senior Center Annex Buildinq Renovation - Cambridqe General Contractor and Builder. (F:144.3) Councilman Alongi commented that this project is being awarded to a contract for outside the Community and questioned whether notification had been provided to local contractors. He indicated that not all of the smaller local contractors can afford to receive the Green Sheet. Public Services Director Tecca indicated that the advertisements go out in the construction news sources as well as the local newspapers. He indicated that it is not the current practice to notify individual contractors of a project, but possibly notices could be sent out. City Manager Molendyk commented that this might be considered preferential treatment under the law. Councilman Alongi stressed that other cities make more of an attempt to hire local contractors. He further stressed that he does not like to see local dollars leave the Community. He indicated that no local contractor has received this type of contract, and he does not believe that there are not some qualified to receive one. He stressed the need for a program to offer opportunities to local contractors. .- PAGE FOUR - CITY COUNCIL MINUTES - HAY 23, 1995 Councilwoman Brinley requested confirmation that these advertisements are included in the local newspapers. City Clerk Kasad confirmed. Councilwoman Brinley inquired whether it would be possible to post the advertisements for bid in the case with City Council hearing notices and agendas. City Clerk Kasad confirmed that this posting could be done. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT. 6. city Wide Liahtina and Landscape Maintenance District - Fiscal Year 1995-96 - Resolution Nos. 95-33. 95-34. and 95-35. (F:22.2) -.t City Attorney Harper explained that the three resolutions presented initiate the process, request the Engineer's Report and establish hearing dates for this year's assessment. He stressed that this action is not to set the assessment. Chris Hyland, 15191 Wavecrest Drive, noted that this matter is discussed every year and indicated that her area receives the highest assessments in the City. She suggested that a new consulting firm might be needed and commented that the assessment seems to increase every year. Councilman Alongi indicated that he has a problem with including the Stadium perimeter in the Lighting and Landscaping Maintenance District, as it does not benefit the total community. He stressed that everyone does not enjoy the ballfield, the streets or the landscaping around it. He suggested that the streets and landscaping should remain a cost of the Stadium and not be included in this assessment. Councilman Pape stressed that the assessment does not include the Stadium itself, rather the streets and landscaping around it. He further stressed that not everyone uses all of the streets in the City. He detailed the additions to this year's _ assessment such as streetscapes and repairs of sidewalks and replacement of trees damaging sidewalks. He stressed that the District provides many positive ways to keep the City looking nice. He further stressed that this is the normal mechanism used by other cities for maintenance of the communities. Councilwoman Brinley requested an overview of the District from representatives of BSI. Mayor Pro Tem Bender noted that there will be two public meetings on this matter in July, and stressed that these are only the resolutions initiating the process. Jeff Cooper, representing BSI indicated that a complete presentation will be made at the public meeting, as was done last year. He indicated that there are a few additions, but most of the District and the method of assessment remains the same. City Attorney Harper reiterated the process and pUblic meeting and hearing schedule. MOVED BY BRINLEY, SECONDED BY PAPE TO ADOPT RESOLUTION NOS. 95-33, 95-34 AND 95-35; SET THE PUBLIC MEETING FOR JULY 11, 1995 AT 7:00 P.M. AND SET THE PUBLIC RF.~'RTNa ....n'R .TTTT.V .,1;;_ 1QQI;; PAGE FIVE - CITY COUNCIL MINUTES - MAY 23, 1995 THE FOREGOING MOTION CARRIED BY A VOTE OF 3 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE AND WASHBURN ABSENT. RESOLUTION NO. 95-33 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ORDERING THE PREPARATION OF PLANS, SPECIFICATIONS, COST ESTIMATES, DIAGRAM, ASSESSMENT AND REPORT PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, FOR PROCEEDINGS FOR THE ANNEXATION OF ADDITIONAL TERRITORY AND FOR THE ANNUAL ASSESSMENT LEVY AFTER FORMATION OF A DISTRICT. RESOLUTION NO. 95-34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE ENGINEER'S "REPORT" FOR THE ANNEXATION OF ADDITIONAL TERRITORY AND FOR THE ANNUAL LEVY OF ASSESSMENTS FOR FISCAL YEAR 1995-1996 IN A DISTRICT WITHIN SAID CITY. RESOLUTION NO. 95-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DECLARING ITS INTENTION TO PROVIDE FOR THE ANNEXATION OF ADDITIONAL TERRITORY AND FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS FOR CERTAIN MAINTENANCE IN AN EXISTING DISTRICT, PURSUANT TO THE PROVISIONS OF DECISION 15, PART 2 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, AND SETTING A TIME AND PLACE FOR THE PUBLIC MEETING AND PUBLIC HEARING THEREON. 7. Colrich Homes Community Facilities District 90-2 Resolution No. 95-36. (F:22.3) - Councilman Alongi requested an explanation as to why the city is participating in the foreclosures in this District. City Attorney Harper explained that the city is obligated to do so under the Indenture for the Community Facilities District, if the taxes are not paid. Councilman Alongi questioned how the City is involved. City Attorney Harper indicated that as with any Community Facilities District or Assessment District the City is required to ini tiate this process when the developer is bankrupt or the taxes are delinquent. He stressed that the City will receive full reimbursement for this process. He noted that there is a developer interested in this project and has initiated efforts to bring in a check to make the taxes current. Councilman Alongi inquired who makes the payments during the foreclosure. City Attorney Harper explained that each district is required to have a reserve fund and the bondholders are paid from that fundi and the check coming in from the developer will reimburse that account. Councilman Alonai auestioned what hannens when the reserve PAGE SIX - CITY COUNCIL MINUTES - KAY 23, 1995 while property values have dropped, they are high enough that another developer is walking in to the development and bringing the taxes current. Councilman Alongi inquired how much the reserve account for Tuscany Hills contains. City Attorney Harper indicated that it was approximately $1.4 million. Mayor Pro Tem Bender inquired whether the penal ties and interest amounts, if not waived, are placed in the reserve account. City Attorney Harper indicated that typically a City will waive some of the penalties and interest in the early stages of the foreclosure. He stressed that a new developer is coming in and it is the same as a single family homeowner who brings taxes current, however this relates directly to the Community Facilities District. - MOVED BY BRINLEY, SECONDED BY PAPE AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPROVE THE TRANSACTION AS SUBMITTED AND ADOPT RESOLUTION NO. 95-36. RESOLUTION NO. 95-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ORDERING JUDICIAL FORECLOSURE OF DELINQUENT TAXES PURSUANT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, WITH THOSE TAXES AND RETAINING SPECIAL COUNSEL. APPEAL 21. Appeal of Commercial Project 95-1 (Jack in the Box). (F:58.2) (X:21.1) City Manager Molendyk noted the past consideration of this item and recommended continuance. MOVED BY BRINLEY, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE _ OF THOSE PRESENT TO CONTINUE THIS ITEM FOR THIRTY DAYS TO JUNE 27, 1995. BUSINESS ITEMS 31. Second Reading - Ordinance No. 999 - Establishinq Guidelines for Processing those Claims for Monev or Damages not now Governed bv State or Local Laws. (F:52.1) City Attorney Harper reminded the Council of the intent of this Ordinance. MOVED BY PAPE, SECONDED BY BRINLEY TO ADOPT ORDINANCE NO. 999 UPON SECOND READING BY TITLE ONLY. ORDINANCE NO. 999 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ESTABLISHING GUIDELINES FOR PROCESSING THOSE CLAIMS FOR MONEY OR DAMAGES NOT NOW GOVERNED BY STATE OR LOCAL LAWS. PAGE SEVEN - CITY COUNCIL MINUTES - MAY 23, 1995 THE CITY COUNCIL MEETING WAS RECESSED AT 7:44 P.M. THE CITY COUNCIL MEETING WAS RECONVENED AT 7:48 P.M. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - Rick Zwiefel, 101 S. Main street, thanked Council for approving the Downtown Business Association proposal for street Faires and reported that everything is on schedule and 90% of the spaces are rented. He reminded the audience that the Faire will be on Saturday, May 27, from 8: 00 a.m. to 3 p.m. He noted that they have approximately 15 spaces available and if anyone is interested in renting one they can call (909) 245-3977. Mr. Zwiefel invited council to attend. Richard Farnsworth, 32981 Cedar Street, commented that he has been a resident of the Valley for the last 30 years and explained that the traffic circulation has grown worse over the years. He suggested that Lakeshore Drive be opened for traffic to relieve the downtown area and promote shopping. He cited other cities that there is no traffic in the downtown area and people are encouraged to walk through the downtown area. He stated his objection to the Limited street Bridge and explained that he felt that it should be on Lakeshore instead and suggested that two way traffic should be reinstated. Mr. Farnsworth stated that he has been in contact with Cal Trans regarding restriction of truck traffic over the Ortega Highway and he encouraged the city to help address this issue. He noted that the way to help the Lake is to bring more boats in. He pointed out that they churn up the water and do better than an aeration system would. - Wayne Kunze, 16519 Kiwi Way, stated his concerns regarding the proposed raceway. He felt that noise from the raceway could affect the lifestyle of the surrounding residents and the increased traffic could become a real problem. He stated that he has spoken to Mr. Bowlby and has had a lot of his questions answered, but he still has some concerns regarding the traffic and noise. Lela Cardoza, 300 Ellis Street, addressed Councilwoman Brinley and stated that government property is secular because it is purchased, supported and maintained by the taxpayers and as such one must abide by the First Amendment of the Constitution requiring the separation of State and Church. She explained that City Hall, its equipment and supplies are government property and employees are on government payroll. She stated her obj ection to Councilwoman Brinley having 24 letter written on city letterhead and logo to invite a religious group to participate in a religious program on government property, paid for and maintained by the taxpayers of this city. She noted that after the event Ms. Brinley had 24 letters sent to the same group, again misusing City Hall staff and equipment for her personal use, and indicated whether it was done through ignorance, arrogance, or political gain it was wrong. She suggested that Ms. Brinley be held accountable and made to reimburse the cost back to the city or resign. Pastor Fred ROdriguez, Chairman of Easter at the Diamond "95", 19740 Grand Ave., on behalf of 40 local churches representing 10.000 members. thanked citv Manaaer Molendvk. Assistant citv PAGE EIGHT - CITY COUNCIL MINUTES - MAY 23, 1995 the Committee, to help them deal with and reconcile potential problems areas and were available to assist the Committee if they had any questions. He noted that they exemplified atronq and confident leadership and he commended all the persons involved for their ability to administer on behalf of the citizens of Lake Elsinore. Pastor Rodriguez stated that the City of Lake Elsinore has been handed a very precious gift through the richness of the Council' s lives, knowledge, influence and expertise. He noted that although it rained on Easter Sunday, the churches and the local congregation considered the event a tremendous success. He commented that the local newspapers reported that there were between 2,200 and 2,500 persons in attendance, however the Spectrum Group Manager, reported that there were between 3,000 and 3,500 people in attendance despite the adverse weather conditions. Pastor Rodriguez again thanked everyone involved and stated that they are praying for the City of Lake Elsinore and its leaders for continued wisdom, vision and resources to meet the challenges of tomorrow. Chris Hyland, 15191 Wavecrest Drive, stated that they are not going to pursue the recall on Councilwoman Brinley since her term will be up at the end of this year. She addressed the charges on the recall petition as follows: indicated that she had violated the Brown Act by meeting with the city Manager and other Councilmembers to discuss the Budget behind closed doors; indicated that Ms. Brinley was Chairwoman of the Planning Commission when the Bond Debt was incurred; and indicated that she had not been officially appointed to meet with legislators regarding Lake clean-up. Ms. Hyland cautioned Councilwoman Brinley about comments such as "we're being a team..., how the vote should go...". She stated that in certain ways when Councilwoman Brinley makes statements such as this, they can be used and are in direct violation of the Brown Act. Lorraine Sostre, 29363 Schooner Lane, stated that the inconsistencies of Councilman Alongi's comments are cause for public concern. She explained that Councilman Alongi has publicly stated that he doesn't own certain properties, but in fact when interviewed by the press and a FPPC investigator he has recanted what he has publicly stated just two months ago. She asked if Councilman Alongi has been forthright and responsible in his actions concerning the disclosure of his financial interests. Ms. Sostre commented that it is a shame that an investigation must take place to get to the nature of this question. She stated that the "Alongi Show" was a selfish political tactic laden with misleading information to further confuse the issue. She further stated that the facts are public record. She noted that Mr. Alongi has stated that the City has a $68,000,000 bond debt, however the city Budget does not reflect any principle or interest paYments. She explained that the RDA does have a bond debt and can by law only be as high as what the RDA can support with its cash flow. She also noted a statement by Councilman Alongi that the $700,000 received by the City for Vehicle Fees is being used on the Stadium, however, the fees have been pledged to the Stadium Bonds should they go into default. Ms. Sostre stated that she felt that the derogatory comments and the political rhetoric contained in Councilman Alongi's show does not benefit, in any way, the Community. She ;lll::::.lr""rl ;-F ("nllnt"";lm;lln 2I.lnnrd hnn""l::::.~lv h""l;""v""l::::. ~h;ll~ ~hA ~vnA n-F ("!;llr - - ,.... I I - - PAGE NINE - CITY COUNCIL MINUTES - MAY 23, 1995 Ms. sostre stated that on April 7, 1995, Councilman Alongi acquired a single residence at 420 Granite Avenue which is in a Redevelopment proj ect Area and presented exhibi ts showing his ownership, and detailed the provisions of the law. She asked that one of the councilmembers question Councilman Alongi regarding this matter. Mariana Mohylyn, 305 W. Sumner, objected to being removed by the police for speaking more than three minutes and stated her intent to address Council for five minutes. She addressed the homeless, pedestrian rights, and objected to the confiscation of her non operational vehicle. She asked if the city Attorney had given the authorization to have her removed from the Senior Center so that she could not acquire meals since she refused to provide the information that they illegally required her to provide. ci ty Attorney Harper clarified in response to Ms. Mohylyn that there is an obligation on the part of the program to provide certain documentation and fees in advance of receiving the benefits of those programs; and to the extent that anyone does not comply with those requirements they are not entitled to participate. Ms. Mohylyn stated that it is not so in other cities. Mayor Pro Tem Bender asked that Ms. Mohylyn summarize her comments. Ms. Mohylyn stated that she feels that this promotes people to go hungry or to steal and stated that even if there is a surplus, the persons involved in the program must pay a dollar for extra. She addressed Women's Rights and stated that just because a woman is walking on the street she is looked upon as immoral and is treated as though they have other reasons to be there other than to get from one point to another. She asked that this issue be addressed. CITY MANAGER COMMENTS None. CITY COUNCIL COHMENTS Mayor Pro Tem Bender commented on the following: 1) Stated that it is good to hear that the City can avoid the utility Tax. He pointed out that there will still be budget cuts and they will cause anguish as well. 2) Indicated he has received several comments that the Raceway will be a good project for the city. He explained that the project will bring in numerous jobs and the better the employment base, the better the economy. He pointed out that the area was tentatively slated for a housing development which was not economically feasible and the proposed Sports complex and Entertainment Center is a much better use of the area and will supply jobs and increase tax revenues. He further commented that possibly by building less houses in the area it might increase the property values of the ones already built. 3) Expressed his pleasure regarding the upcoming weekend events. He noted that baseball will be back in town, and nn~~n ~h~ ~nn~n ~h~ ~~T~~~ F~iT~ ~nn ~h~ ~h~k~~n~~T~~n PAGE TEN - CITY COUNCIL MINUTES - MAY 23, 1995 Councilwoman Brinley commented on the following: 1) Expressed her pleasure that there will be no utility Tax. 2) stated that there are a lot of exciting things going on in the City and she felt that the Sports Complex will be one of the most exciting outside of the Stadium. She felt that this project will be a real asset to the City and pointed out the different activities that will be provided for all ages. She stated that she felt that any conflict with the Stadium Activities can be resolved through communication and scheduling. 3) Noted her pleasure with the Press Enterprise regarding the Wal-Mart article. She stated what a joy it was to pick up the newspaper and read a positive article. She pointed out another positive article in the Californian regarding the Outlet Center. 4) Invi ted everyone to attend the Rodeo and the Street Faire. 5) Congratulated her son Dusty Brinley who is graduating from the University of Redlands and wished everyone a pleasant and safe Memorial Day weekend. Councilman Pape asked that City Attorney Harper clarify the issues that were brought up during Public Comments regarding the Brown Act and the First Amendment. city Attorney Harper stated that Ms. Hyland's comments regarding the Brown Act pertain to City Manager Molendyk soliciting input from Councilmembers, providing background information regarding the budget. He stated that it would not be the first time that Mr. Franke a First Amendment Coalition lawyer and City Attorneys have disagreed about what the Brown Act provides. He explained that from the City's point of view there is no Brown Act violation. He noted that there was comment regarding discussions of one or more Councilmembers and the raceway promoters, and clearly the Brown Act does not apply to any discussions that involve less than a majority of the Council and is not in violation of the Brown Act. City Attorney Harper then addressed the First Amendment issue regarding the use of the Diamond Stadium on Easter Sunday and as was indicated by the pastor who spoke, the church groups paid for the use of the Stadium and followed the rules set by the City. He noted that the rule is that the city offers the Stadium to any group or groups who are willing to pay for the cost of the facility and they were treated no differently than anyone else and there is clearly no First Amendment violation. Councilman Pape commented on the following: 1) Thanked Pastor Rodriguez for his compliments which Council does not get very often. He stated that he was at the service and it was very nice and even as a die hard Storm Fan he does not think that even the Storm co~l~ draw a crowd of. 3,000 people as hard as it was ~2'"'"~ ~" ~~~~O~ ~~~n'n~ - - PAGE ELEVEN - CITY COUNCIL MINUTES - MAY 23, 1995 3) - - the citizens. He stated that part of Council's job is to be problem solvers and he stated that he feels that they have accomplished a great deal. Commented on the sports Complex and Entertainment Center and explained that he felt that this was a positive addition to the City and continues on in the direction of being more tourist and recreation oriented. He stated that this will bring outside dollars into the City and pointed out the boat races and what it has done to generate sales tax for the city. He assured Mr. Kunze that the City will be addressing all his concerns, that this project will not be rushed through and that it will be done properly through the EIR and all of the public hearings. He explained that this will give the Council and public ample opportunity to investigate and refine the project so that the City ends up with a product that everyone will be pleased with and proud of. He reminded the public that this is a private enterprise project and the city is not directly involved and is not spending any money on this proj ect. He stated that rumors have already started and he wants the public to know exactly what is going on. 5) Responded to the comment regarding City Bond Financing and indicated it was a correct statement that the City does not have any bond debt. He noted that the debt that is in this area is in Redevelopment Agency and there can never be more debt in the RDA than the tax increment or the cash flow can support. It is not possible to sell more bonds than the RDA has the ability to pay for and there is not a broker/dealer who will sell bonds knowing that a city did not have the income to support them. He explained that Mello-Roos bonds are paid for by the property owners and are placed by the developers and are not the responsibility of the City. 6) Announced the Shakespearean play "As You Like It" by will be performed at the Cultural Center on May 25, 1995, at 7:00 p.m. and encouraged everyone to attend. He noted that there will be a street Faire this weekend as well as the Rodeo and Baseball. Councilman Alongi commented on the following: - 1) Addressed Administrati ve Services Director Boone and asked how much the city's Bond Debt is. Administrative services Director Boone stated that it is approximately $70,000,000 through RDA. Councilman Alongi asked if there was enough money coming into the RDA to handle the debt and stated that Ms. Sostre is suffering from frustration from ignorance and he wanted to clarify the issue. He noted that he had made an invitation to anyone to come on his program who thinks that he is wrong and they can just sit in the chair and they will go at it. He stated that he will be on T.V. for an hour in June. Administrative Services Director Boone stated that this fiqure will depend on the next bond issue and the amount PAGE TWELVE - CITY COUNCIL MINUTES - MAY 23, 1995 3) Lake Elsinore General Fund was rece1v1ng $1.400,000 from the ~A to help subsidize the staff time that was spent on those projects. Administrative Services Director Boone explained that over the last several years administrative money around a million dollars, has been used to fund the staff time. Councilman Alongi asked if the RDA has it now to give the city. Administrati ve Services Director Boone stated that as of today, the RDA does not have it. Councilman Alongi thanked Mr. Boone and stated that this takes care of the untrue statements, and the City still has financial problems and the City still has a problem with the general budget, even though there will be discussion about refinancing bonds again. He noted that when you refinance your house there's costs involved to do that and the debt raises, it doesn't go down. He explained that if Councilman Pape pulled a rabbit out of a hat or whoever he is talking with or worked it out, they are going to start refinancing bonds again and the debt doesn't go down, it goes up. He indicated if they save 1% or 2%, there is a lot of money in front of that, that goes on that you don't know about. Councilman Alongi stated that again we are fooling around with'a bond debt that we can't even meet today. 2) Commented on the "Wal-Mart Developer Improvements at No Cost to City". He stated that if the City had the cash and gave it to Wal-Mart or the City borrowed the money from Wal-Mart and is paying it back at the rate of 8% interest, he asked if that was no cost to the city. He asked if there was a difference where you get the money from. He noted that the City is indebted to the Wal-Mart people for $7.500,000 in conjunction with Oak Grove Equities. He explained that this is why the City has a deficit, because we are giving away our tax dollars. He pointed out that this is the whole point. Councilman Alongi explained that the whole point of his program is to say "no, I'm not right, I'm just giving you something to think about" and you can't keep giving away your tax dollars no matter who it is. He noted that you can't keep giving it to the Red Lion, the movie theaters, the rat hole for the ball field because if its the ball field it is going to continue to increase. He further explained that it is because of the ball field that we have the problem that we have today and now the City is going to do more financing and pretty soon we are going to do some land deals and that money will be thrown down the rat hole and the residents will still be holding the bag. Commented to Ms. Sostre that the $700,000 is pledged from the RDA, and if the bonds go into default the money is collected; so we can't get out of it, and the City is stuck with it and the City is responsible for that debt. He stated that just because of the fact that we pledged our DMV fees against it doesn't mean they won't be used and if Mrs. Sostre does not understand that, she might be able to talk to Mr. Pape, and he might be able to make her understand. - - PAGE THIRTEEN - CITY COUNCIL MINUTES - KAY 23, 1995 "...., - - them react to what I've done. He explained that the purpose of the statute is to stop fraud; to stop elected officials from taking advantage of their positions in an area in which they have control. He stated that it has nothing to do, that is speaking in theory, with a person who has worked in a community for 30 ye~rs, that's his business, that's what he's done all this time. Councilman Alongi stated that he purchased a house that this City was going to tear down. He invited each and every person in the audience and looking at T.V. to go by the property and look at what it looks like today, and it was sold for $75,000. He noted that a low income family had an opportuni ty to buy a house that this City was going to tear down. He cautioned Ms. Sostre to stop worrying about what he has and what he doesn't have and start worrying about where the city is going. He stated that he bought it in his name; he could have bought it under a hundred names, he didn't have to buy it under his name; he could have bought it under anyone's name and she would have known nothing. He illdlcated that he doesn't have anything to hide in this community and he will stand by whatever he does in this community. councilman Alongi stated that if she thinks that he has broken the law, she can go to the D. A. or whoever you have to go, but indicated that he was sick of her in his hair. 5) Commented that as far as his other properties are concerned, he met with the FPPC, talked with them for about two hours; he has no idea what those people are going to do and he could care less what they are going to do. He stated that if a mistake was make it was made and each and everyone sitting on the Council will make mistakes. He explained that if people think that the Council has broken the law, or misused our positions, recall them. He noted that his new program will be going on June 8, and he will be talking at length about this new "Rabbit in the Hat" deal with the financing. 6) Commented that he does agree with Mr. Kunze, that the race track might be a good thing for this community, but he hasn't seen anything on it except for the drawings and brief explanations. Councilman Alongi stated that it makes people think "what the hell is going on". He noted that on Wednesday it came out in the paper about the ground breaking; Thursday, we have a meeting with the Council, with a two page MOU for about a $45,000,000 project, counting the $15,000,000 they might want in public financing and on that MOU there is the date of May 18, 1995. He noted that there has never been a MOU with a date before us; that is generally left blank so the Council can change it, come back and pu.t a date on it. But, May 18, was on the MOU and at the same time we are talking about the project, City employees are out there putting up tents and putting the food out. He stated that it makes you feel that this thing has already been approved. So, it makes a good project like that smell, for a lack of a better word, it makes a person like me vote aqainst it because its wronq. Councilman Alonqi r- PAGE FOURTEEN - CITY COUNCIL MINUTES - MAY 23, 1995 that it did not follow the proper procedure; it was not the eleventh hour; if the man needed an approval, the Council could have made motion to approve it and the City Attorney and City Manager could have written a letter of approval and sent it on with hint and it would have been just fine. He stated that he 'felt that this is what spoils good projects in this town; the way this Council does business. Councilman Alongi stated that it is just not fair to this community to leave it out. He asked if they are telling me that when it comes to Council they might turn it down after they approved it; I don't think so folks, they have never done that before. He explained that every project that has gone on in this town that was approved, before that ground breaking, the MOU was in position, the DDA was in position and everything was done fine; then we had the ground breaking, we had the approval and everything had something to say about it good, bad or otherwise, but not like this. Councilman Alongi pointed out that people like this gentleman, writing in the paper, again with Council approval of misleading you as to what the city has invested up there. He stated that you are in trouble today because of the way we are doing business. 7) Told Mrs. Sostre, because of the way he does business, he paid cash for the house, its his, and he's also buying a Mercedes, so she can write that down in her book because it might be in front of his house next Tuesday, but he's buying a Mercedes because he's smarter than she is, and smarter than the Council, because of the debt they put the City in. Addressed Amber Ridge and stated that he felt that it was another good example of tax dollars down the drain. He stated that he has talked to several people in the Amber Ridge Tract and they are laughing at us, because they are never going to hook up to that sewer out there and its costing you $55,000 a year, doing nothing. He noted that it is a dry sewer line in a street. He stated that for people to come in from allover this valley, your paying $94,000 a year for them to go to a movie theater; your subsidizing them. He further stated that if you like it, keep voting for them; you like to keep having money taken out of your pockets, keep voting for them; you like to pay more taxes for less service, keep voting for them. He explained that Ms. Sostre met him in his office a couple of months ago and she was quite sure that we were going to put four police officers on the street this year. He cautioned Mrs. Sostre that she said that and he has a recording of it, so she shouldn't play games with him. 8) Mrs. Sostre denied Councilman Alongi's statement and Councilman Alongi challenged her. Mayor Pro Tem Bender called the meeting to order and asked that Councilman Alongi not debate with the audience and cautioned Mrs. Sostre to hold comment. - - PAGE FIFTEEN - CITY COUNCIL MINUTES - HAY 23, 1995 .-... exactly what's taking place with that. He explained that he has been frank and he wished that somebody would go and talk to him and give him a lesson on how we do business in Lake Elsinore and indicated the writer is way out of line with his editorial, whatever it might be. He congratulated Councilwoman Brinley on her son and stated that it was really nice to see somebody in our community do well. Councilman Alongi stated that he would see everyone on June 8th, at 7:00 p.m. and have some more for them. He suggested that anybody that wants to challenge him, come on. CLOSED SESSION a. Joint Closed Session with the Redevelopment Aqency - Lake Elsinore Associates - Case #200767. THE CITY COUNCIL MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE REDEVELOPMENT AGENCY AT 8:45 P.M. TO DISCUSS THE ABOVE MENTIONED HATTER. THE CITY COUNCIL MEETING RECONVENED AT 9:30 P.M. NO ACTION TAKEN. ADJOURNMENT - MOVED BY PAPE, SECONDED BY BRINLEY AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO ADJOURN THE REGULAR CITY COUNCIL MEETING AT 9:31 P.M. /\ ~~~~~ TEll CITY OF LAKE ELSINORE ( . ~T~ST:).' . VAWCLERK CITY OF LA~E ErSINORE -