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HomeMy WebLinkAbout09-26-1995 City Council Minutes PAGE TWO - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 Councilman Alongi questioned what time in the morning work would begin on this project, stressing the impact on children going to school and people leaving for work. Mr. Dennis indicated that the district is working to accommodate the school traffic and disrupt as few people as possible. He indicated that advance notification will be provided to all impacted residents. .... Councilman Alongi questioned replacement paving and noted that many of the streets discussed have already been paved curb to curb. Mr. Dennis indicated that they are working to accommodate improvements and coordinate with the City where possible. Mr. Alongi inquired whether this would be limited to 1/2 street paving. Mr. Dennis reiterated that they are working with City staff to minimize impacts. Councilwoman Brinley questioned how long any given street might be shut down. Mr. Dennis indicated that they will attempt to limit closures to a few days, but emphasized that it will vary depending on what they find and the improvement level. Councilwoman Brinley inquired whether they will be watering down to limit the amount of dust caused by the project. Mr. Dennis indicated that they will be meeting all City standards and Requirements. Mr. Dennis thanked the Council for the opportunity to make this presentation. Mayor Pro Tem Bender thanked Mr. Dennis for this report and expressed hope for a spirit of cooperation on this project. PUBLIC COMMENTS-AGENDIZED ITEMS .... Requests were received to address Item Nos. 6, 9 and 34 and deferred to those discussions. CONSENT CALENDAR The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 1.b., 4, 5, 6, 7, 8 and 9. MOVED BY BRINLEY, SECONDED BY ALONGI 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 - September 12, 1995. The following Minutes were received and ordered filed: (F:60.4) c. Design Review Committee Meeting - September 6, 1995. PAGE THREE - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 ITEMS PULLED FROM CONSENT CALENDAR 1. Minutes b. Planninq commission Meetinq - September 6. 1995. (F:60.3) Mayor Pro Tem Bender indicated that he pulled this item to welcome the newest Planning Commissioner; and thanked Mr. Allenbach for his willingness to serve the Community. MOVED BY BENDER, SECONDED BY BRINLEY AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO RECEIVE AND ORDER FILED THE PLANNING COMMISSION MINUTES OF SEPTEMBER 6, 1995. 4. Request for Redistribution of Sales Tax - Resolution No. 95-63. (F:96.1) (X:108.8) City Manager Molendyk explained this item, which would provide for return of two cents per dollar of' sales tax, rather than the current one cent. He indicated that he felt it was a good approach to solving the revneue problems cities are currently experiencing; and stressed the amount of money taken by the State in the last few years. Mayor Pro Tem Bender concurred that this appeared to be an approach in the right direction. MOVED BY BRINLEY, SECONDED BY PAPE AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO ADOPT RESOLUTION NO. 95-63. -- RESOLUTION NO. 95-63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, SUPPORTING THE LEAGUE OF CALIFORNIA CITIES' RESOLUTION ON SALES TAX REDISTRIBUTION TO INCREASE THE AMOUNT RECEIVED BY CITIES TO 2%. 5. Bond Refinancinq - Series A Subordinate Tax Allocation Revenue Notes - Resolution No. 95-64. (F:126.5) Mayor Pro Tem Bender stated that a request was received to address this item and called upon Chris Hyland to approach Council. Chris Hyland, 15191 Wavecrest Drive, stated that she has no problem with low to moderate income housing as long as people have decent homes to live in and asked if there has been a change in the bond rating. City Attorney Harper stated that there is no set rating, except on an issue by issue basis and there has been no submission to Moody's or Standard & Poors seeking a rating on this issue. He explained that this is not a low to moderate income housing issue, but rather is related to the _____ _...~_ _~~_... _...L..'---___ _____.-!__...l....._ __'--..!_'-- ____ _,__ '--_.!__ ~___...:J_...:I TT_ '1! PAGE FOUR - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 City Attorney Harper explained that the City has been awaiting tax numbers from the County; the City has received those numbers; and based upon those numbers the City can begin processing. He further explained that the action tonight is step number one and it is anticipated that the closing will be in mid-November. Mrs. Hyland stated that she recalled Councilman Pape stating in August, that the loan was going to be refinanced and that there would be no utility users tax. She suggested that the City is still not sure that they will get the loan. City Attorney Harper concurred that just as in the private sector, until the check arrives the City cannot be 100% sure that the loan will close; he indicated however, that in his opinion, this loan is as close to 99% as you can get. - Mrs. Hyland asked that it be noted in the Minutes that the City Attorney is not 100% sure that the city will get the loan. Councilman Alongi stated that this issue is confusing and noted that in the body of the Resolution No. 95-64, it does say, "...the Agency pursuant to the Housing Fund Loan Agreement to finance low and moderate income housing redevelopment activities..."; he indicated that is where they steal when they say activities. He pointed out that not one house has been built with Redevelopment Agency money. City Attorney Harper stated although it is complicated it is necessary that the City go through the formalities of the __ two funded process. Councilman Alongi stated that he understands the process, since he has gone through this over and over again, but it does not alter the fact that without the low and moderate income inserted in the Resolution there would be no refinancing of the bonds. He explained that this is his problem since the 20% has never been set aside and used in this community. He commented that the City is just playing games with words. Councilman Alongi asked how long the term of the bonds is going to be. Special projects Manager Wood stated that they will be for 25 years. Councilman Alongi asked Mr. Wood to explain what "Series A Bonds" are used for. Mr. Wood stated that there are two series "A" and "B" and they will be used for the same purpose, to provide $2,000,000 for new Redevelopment Area projects and refund the three existing bonds for lower interest rates which will create a savings. Councilman Alongi asked how much it will cost the City to refinance $32,000,000. Mr. Wood explained that the $32,000,000 is an issue cap, and the cost of issuance is 3 and 1/2%. Councilman Alongi asked how much the city is ~pp~~~n~_~o::_ Mr. Wood stated that at this poin~.the_~mount PAGE FIVE - CITY COUNCIL KINOTES - SEPTEKBER 26, 1995 developing it for additional projects. Councilman Alongi asked if it would be reducing the debt or increasing it. Mr. Wood stated that it would do neither since the savings on the reduction of the interest will be greater than the $2,000,000. Councilman Alongi asked if the payment would go up or down when the interest is renegotiated. Mr. Wood indicated that the payments would go down slightly or remain the same depending on the interest. Councilman Alongi asked if the Redevelopment Agency has enough money to meet its obligations now. Mr. Wood stated that to meet the $8,300,000 due in January, it does not. Councilman Alongi stated that the reason he is aSking all of these questions is that he feels that the public has the right to know that this Resolution is authorizing a loan of up to $32,000,000. He further asked how much of the debt is caused by the stadium. Mr. Wood stated that the $10,000,000 is totally the stadium and the $11,000,000 is for other projects and a part for the Stadium, $8,300,000 is split between project and some refinancing. Councilman Alongi asked how the Stadium has benefited the three Redevelopment Areas. Mr. Wood stated that the Council has made previous findings of mutual benefits to all the Redevelopment Areas. He indicated that the specifics of those findings would take a detailed study and are not available at this meeting. Councilman Alongi asked where funds from the Redevelopment Agency in any of the areas are paying for themselves, other than the Outlet Center. Mr. Wood explained that tax increment is paying for the bonds and each area has its tax increment; and the developments themselves were never intended to pay for the bonds that support them and all three area's tax increments are paying for the debt. Councilman Alongi asked why then, the debt is not being paid. He asked if the RDA is contributing $1,500,000 to the general fund. Mr. Wood stated that it was not. Councilman Alongi asked why. Mr. Wood stated that it was not available because the tax increment is being used to pay for the debt service that is there. Councilman Alongi stated if the RDA cannot pay the City of Lake Elsinore for services rendered, then it is not producing enough money. Councilman Pape stated that he went over the item with staff and he felt that it was not that confusing. He explained that there are some bonds coming due that were a one year note, designed to be defused, and the intent is for long- term financing and with reduced interest rates the payments will drop and pay for the refinancing as well. Councilwoman Brinley asked about the findings of mutual benefit. City Attorney Harper stated that the findings show where a project will benefit areas other than the relative small area of the initial boundaries of the project. He further stated that for an example the Stadium benefits the economy of the city as a whole. He explained that there is no requirement nor intent to recover the funds expended by .t ,,~ "I PAGE SIX - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 Councilwoman Brinley asked for an explanation of the cap process. She pointed out that we are looking to finance $18,000,000, but the city is signing on for a cap of $32,000,000. City Attorney Harper clarified that Council must approve all the bond documents, and this is only an initiating Resolution. He further explained that what Mr. Wood has indicated is based upon current calculations of tax increment, $18,000,000 is the maximum which could be utilized and there is no potential for anything above that. City Attorney Harper noted that the $32,000,000 was the issue size if there were the ability to refund a number of other issues. He explained that the bottom line is that the actual issue size and interest rate come back to Council in the form of an indenture for an approval. Councilwoman Brinley stated that the bottom line is that the city would not have a staff member running amuck writing a check for $32,000,000. City Attorney Harper confirmed. Councilman Pape explained that the amount of the bond refinance is directly related to the ability of the area's increment to pay it back, the interest as well as the principle. He compared this to the purchase of a home and all its requirements. He stated that it is almost impossible to float a bond in the industry without all the parties being sure that the city has the ability to make the paYments. ..... City Attorney Harper stated that the bond buyer or rating agency requires coverage. He explained that this requires that the City show that it has a $1.25 value for every dollar of debt service. He explained that this is the hedge that the bond buyer builds in to make sure that the City is __ not over-anticipating its income. He further explained that the City cannot expect an increase in tax increment of more than 2 to 2 1/2%. He noted the growth rate of the community and the positive effect this would have on the tax increment. Mayor Pro Tem Bender asked if the City Attorney could assure the public that the City is technically and legally correct in the action proposed. city Attorney Harper confirmed that the action would be correct. Mayor Pro Tem Bender stated that there is a difference of philosophy among Councilmembers, but the issue Council is dealing with was done in the past and is a course that was chosen before this Council took control~ Councilman Alongi stated that what was just said was good salesmanship for a used car, but the fact is that there is still a $3,700,000 deficit; and questioned where it came from. He stated that people listen to college educated people telling them how to finance and then end up going bankrupt and he feels that this is happening in Lake Elsinore if the City continues on this trend of borrowing PAGE SEVEN - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 should be getting additional taxes from the RDA to place more police on the street, street improvements, etc. He noted that other cities are using RDA funds to pay for police in blighted areas and are within the legal limits of RDA to do so as long as that officer works the designated area only. Councilman Alongi stated that fact is that there is a $3,700,000 deficit and has not been paid yet, and now the City wants to go further in debt to pay that amount and go further in debt. He stated that everything is not paying for itself. MOVED BY BRINLEY, SECONDED BY PAPE AND CARRIED BY A VOTE OF 3 TO 1, WITH ALONGI CASTING THE DISSENTING VOTE AND WASHBURN ABSENT TO ADOPT RESOLUTION NO. 95-64 AS FOLLOWS: RESOLUTION NO. 95-64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE APPROVING THE BORROWING OF FUNDS BY THE REDEVELOPMENT AGENCY FROM THE PUBLIC FINANCING AUTHORITY, CONFIRMING CERTAIN FINDINGS OF BENEFIT WITH RESPECT TO THE USE OF SUCH FUNDS AND AUTHORIZING AND APPROVING OTHER MATTERS PROPERLY RELATING THERETO. Mayor Pro Tem Bender clarified that the vote was 3 to 1 with Councilman Alongi casting the dissenting vote. City Attorney Harper commented that this is similar to the house paYment analogy, that if you don't refund you will be paying exactly the same amount of money as if you do. He explained that you would just be getting more for your money. He pointed out that not refunding the $18,000,000 will only result in it costing more. Councilman Alongi questioned why we don't start trying to pay a debt instead of creating more debt. 6. Award of Bid for Weed Abatement Proqram - Bentley's Maintenance. (F:166.1) Councilman Alongi stated that he pulled this item because of the way it was bid. He noted that there is quite a bit of difference in the bid and the charges listed. He explained that he would like to see this go back for rebid. He pointed out that there is quite a bit of difference between one company and the other. Councilman Alongi stated that he just wanted to be sure that the new fellow, Mr. Bentley is doing it the way it was being done before. He explained that he has a problem with SUb-contracting, since it seems to him that the bid was awarded to an agency that sub- contracts everything out, and the last contractor the City had did everything himself. He further explained that he would like to see this item go back and look at every item real close since the differences in the hourly rate, the mowing, labor, tree t:~~~~g and per foot pr~ce show quite a 'J ,~jf~ AA ,;\ ,~ ,II, PAGE EIGHT - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 of mowing or discing and asked if this would be the majority of the contract. Building and Safety Manager Russell stated that it is the majority and pointed out that the city does not do mowing. He pointed out that in the last weed abatement season, 100% was discing. Councilman Pape pointed out that the cost of discing on Mr. smith's bid is much lower than the cost of Mr. Bentleys, even though the total at the bottom is different. Building and Safety Manager Russell pointed out that if both costs for discing are averaged they are fairly close, but the hand work shows a very large difference. Councilman Pape questioned the cost of living amount and pointed out that the Cost of Living is going up only 3 and 1/2% and this shows a 15% increase. Building and Safety Manager Russell indicated that this is the way it was bid. Councilman Pape stated that he would prefer to see the City Council reject all bids and go back out to bid and see if the City can't get a better deal for the people who end up using these service. He pointed out that the costs are ultimately passed on to the property owners, but it is out of pocket money for the city and could take several years for the City to recover the funds as well as no reason for the land owner to pay more than is necessary. - Councilwoman Brinley concurred with Council and felt that this should go back for rebid. Mayor Pro Tem Bender stated that his concern is that this is a three year contract and he expects to see several bids from people that wish to perform this work and the bids become more competitive the more that there are. He questioned the amount of the automatic cost of living __ increase and stated that he felt it was excessive. He suggested that the bid be revised and bid in two different sections. Mayor Pro Tem Bender stated that he felt that the Council was in agreement and asked if this should be continued or denied. Councilwoman Brinley asked the City Attorney if a motion should be made to continue or deny and take the item back for bid. City Attorney Harper stated that Council should reject all bids and go back out for bid. Building and Safety Manager Russell explained that all the legal requirements were met and the item was advertised and firms were contacted and these are the only two bids the City received. Mayor Pro Tem Bender asked how much the City spends on this program a year. Building and Safety Manager Russell stated it varies each year with the amount of parcels done, but an approximate total cost is $200,000. He stated that due to the fact that this is on T.V. now, it should generate some interest. Councilwoman Brinley asked how long this type of PAGE NINE - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 MOVED BY BRINLEY, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE OP THOSE PRESENT TO REJECT ALL BIDS AND REVISE AND REBID THE CONTRACT POR THE WEED ABATEMENT PROGRAM. 7. Senior Center Annex Buildinq Chanqe Order. (F:144.3) Mayor Pro Tem Bender called upon the person who requested to speak on this item, and commented to all speakers that approach Council that the purpose of addressing Council is to make commentary on the item and not to engage in a debate with a councilperson or the City Attorney. Mariana Mohylyn, 305 West Sumner, stated that on the former item the residents are paying for the Weed Abatement Program and not the City. She addressed the Senior Center and asked where the money for the annex is coming from. She criticized the way that the Senior citizen's center is being administered and the type of food that is being served to the Seniors. She suggested that the new building be wider since she feels that it more resembles a barracks than a building and is a waste of money. -- Councilman Alongi stated that again it is the Senior Center and there has already been a great deal of money spent there and now staff is back asking for more money. He commented that even the Seniors are starting to feel that too much money has been spent on this building. He explained that he would like to see the City abandon the project, tear it down completely and work on the community Center, which needs repairs. He also suggested continuing the development of up-stairs or the down-stairs in the Cultural Center. He asked that Council really think about what should be built at the Senior Center. He pointed out that staff is rushing through plans on this project and he would like to see this project abandoned and the funds put in the Community Center and the Cultural Center so that weddings could be held and the downstairs used for receptions. community Services Director Sapp stated that he agreed with Councilman Alongi that there is a real need to do improvements at the Community Center, but CDBG funds cannot be used for improvements at the Community Center or the Cultural Center. The Senior Center is a direct benefit project and automatically meets the 50% low to medium income requirements and money can be spent at the Senior Center, but not at the other facilities. Mr. Sapp stated that he had tried to apply for funds at the other facilities and they do not qualify. Councilman Alongi asked what project the CDBG money could be put in to besides the Senior Center project. Community Services Director Sapp explained that CDBG funds can be used for development of parks, and retrofit for parks to meet Federal requirements. He pointed out that the City has ....-._ ___ -'-_ ___-'---___.I!".!...a..... -'---'-_ ____-'---______ _.L... -'---'-_ ....___~__.!..L..__ "'__..L..__ 'I!' .~ PAGE TEN - CITY COUNCIL MINUTES - SEPTEMBER 28, 1995 don't even know what is happening with. He stated that he did not mind doing improvements, but that he felt that the money could be put into more productive use and more planning could go into what is going to be done at the Senior Center, because every time he turns around it is $100,000 here and $50,000 there. He explained that the Seniors are shaking their heads and asking why so much money was spent on a horseshoe pits since they did not ask for it. Councilman Alongi stated that it seems to him that the City is taking CDBG funds and throwing them in one pile and saying that's it when there are other projects that the money can be used for that can save the City some money. He pointed out that the money could be used for streets. Mayor Pro Tem Bender stated that Council should stay with the item listed and it is the Senior Center. He stated that Council may agree and look at different things down line and make an application of funds elsewhere, but where we are is in the midst of a project that is halfway through, that has been planned and has been voted on and should be addressed. Councilman Alongi stated that it was voted on, but now it has been torn down and 90% of the building is down. Community Services Director Sapp clarified that the work included removal of all the siding, all drywall, interior of walls, down to studs and then go back through and re-stucco, re-drywall and make some interior changes. Councilman Alongi stated that the fact remains that Council still has a large change order in front of them because of it. He noted that anyone in their right mind knows how long that building has been leaking and how much water damage is inside the building. He commented that he did not know why it was not probed before it went out to bid in the first place. City Manager Molendyk reminded Council that staff is following a Master Plan that a previous city Council adopted and were instructed to renovate the building; and if future Council's wish is to tear it down, then staff will tear it down. He explained that all staff is doing is operating on a Master Plan of Parks and Recreation that was adopted by Council and the items were approved at budget time and if Council wishes to go in a different direction staff is willing to do so. He noted that the appropriate time to bring this up is at budget time and it is not anyone individual that has made this decision. City Manager Molendyk stated that the appropriate time to change is at budget time. MOVED BY BRINLEY, SECONDED BY PAPE AND CARRIED BY A VOTE OF 3 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE AND WASHBURN ABSENT TO APPROVE CHANGE ORDER NO.1, IN THE AMOUNT OF $21,693 AND - .. - PAGE ELEVEN - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 signing off water rights. He further indicated that he would not take part in any transaction involving Unocal 76. MOVED BY BRINLEY, SECONDED BY PAPE AND CARRIED BY A VOTE OF 3 TO 1 WITH ALONGI CASTING THE DISSENTING VOTE AND WASHBURN ABSENT, TO ACCEPT THE FOLLOWING DEDICATIONS AND AUTHORIZE THE CITY CLERK TO PROCEED WITH RECORDATION: Grape street (Unocal) - Street Dedication Grape Street (Unocal) - Utility Easement 29093 Gunder Avenue - 10' Slope Easement 29093 Gunder Avenue - Water Riqhts. 9. Amendment to Law Enforcement Service Contract. (F:68.1) (X:127.2) Mayor Pro Tem Bender recognized Mariana Mohylyn to speak on this item. Ms. Mohylyn indicated that she did not request to speak on this item. Mayor Pro Tem Bender brought this item back to the Council table. -- Councilman Alongi indicated that it was good to see increases in law enforcement. He noted a reduction from the Sheriff's Department in the budget process. He inquired whether this $48,000 would come from. City Manager Molendyk indicated that the Council has expressed interest in additional officers and this was an opportunity to obtain one. He indicated that it would need to come from the reserves or at the mid-year budget review. MOVED BY ALONGI, SECONDED BY BRINLEY TO APPROVE THE AMENDED AGREEMENT FOR LAW ENFORCEMENT SERVICES AND AUTHORIZED STAFF TO MAKE THE NECESSARY BUDGET ADJUSTMENT TO FUND THIS AGREEMENT. Councilman Pape indicated that it was nice to be able to take this action, as part of the Federal Cops Program. He clarified the paYment schedule and indiated that it would be a good idea to add an officer at the west end to address pocket problem areas. He noted that there have also been additions of a Lieutenant and the officer to administer the Safe Streets Program. He noted the success of the Safe Streets Program. THE FOREGOING MOTION CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT. PUBLIC HEARING 21. Public Hearinq for an Ordinance to Establish Stormwaterl Urban Runoff Manaqement and Discharqe Controls - Ordinance No. 1004. (F:155.1) Mayor Pro Tem Bender opened the public hearing at 8:23 p.m. Public Services Director Tecca detailed the proposed __...:1..:_____ __,-,:_,- ..._...'...:1 __...:1..__ ..1-._ .._....:_ __....:I _..1-__ _....__.&:.&:_ 'H:C! Jf<lt PAGE TWELVE - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 MOVED BY BRINLEY, SECONDED BY PAPE TO ADOPT ORDINANCE NO. 1004 UPON FIRST READING BY TITLE ONLY: ORDINANCE NO. 1004 AN ORDINANCE OF THE CITY OF LAKE ELSINORE ESTABLISHING STORMWATER/URBAN RUNOFF MANAGEMENT AND DISCHARGE CONTROLS. - UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILKEMBERS: ALONGI, BRINLEY, PAPE, BENDER NOES: COUNCILKEMBERS: NONE ABSENT: COUNCILKEMBERS: WASHBURN ABSTAIN: COUNCILKEMBERS: NONE BUSINESS ITEMS 31. Consideration of a Request to Initiate a General Plan Amendment Chanqinq the Land Use Desiqnation of ProDerty located at the Intersection of Graham Avenue and Lakeshore Drive from Medium Hiqh Densitv Residential to Neiqhborhood Commercial - Resolution No. 95-65. (F:83.2) Community Development Director Leslie provided an overview of this request for a City initiated General Plan Amendment. Councilman Pape questioned why this change would be necessary. Mr. Leslie indicated that the property is a closed market and because of the current General Plan designation they are unable to reopen as such. Mr. Pape questioned whether the owner was aware of the change at the time. Mr. Leslie indicated that he was not certain in that the last action on the property was in 1993. He clarified that on a matter such as the overall revision done in 1993, mailing to owners is not required, only publication. - Councilman Pape commented taht the best use would appear to be commercial and indicated that he was not certain why it was changed. Councilwoman Brinley questioned whether this item had reverted back to the prior zoning. Mr. Leslie indicated taht it would appear so, based on the apartments adjacent to this site, noting that consideration is given to the surrounding uses. City Attorney Harper clarified that the current owner may not have been notified, because the buidling may have been in the foreclosure process at that time. Councilman Pape indicated that it probably make sense for the City to intitiate this amendment; noting that it might ___ __ ~ - ___ - ---'1- _ _________..&_. ______ ___..&_.__ ____ ____ PAGE THIRTEEN - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 supported leaving it commercial. He noted that with the setback requirements there is not much room to build anything else. He concurred that the City should initiate the proceedings. He questioned how many General Plan Amendments can occur per year and how many have been done. Mr. Leslie indicated that there can be four and one has been used for the General Plan Clean-up. Mayor Pro Tem Bender noted that the density was changed in 1982, with the other buildings grandfathered in as non- conforming uses. He noted that the building has been vacant for quite some time and questioned the intent of the prior Council and Planning Commission for this site. He expressed concern that the intent might have been for less commercial at that location, and questioned future desires for the area. Mr. Leslie concurred with Mr. Bender's summary of the situation and inticeted that there appreared to be some intent to make this residential. He indicated that staff has not evaluated which would be better to date and clarified that the intent for this item is to determine whether the Council would like to initiate proceedings. Mayor Pro Tem Bender indicated that the issue was whether the city would proced or the owner would proceed, and noted that he would prefer the latter. ----- Councilman Alongi indicated that he has no problem if the owner wants to proceed, but reiterated the inability to put additional buildings on that site. He commented that he was not certain as to why the Council made the change previously. He indicated that he felt the only reasonable use would be commercial. He suggested that the City let the owner proceed with the change, if he choose to do so. Councilwoman Brinley concurred and noted prior concerns expressed by the Middle School. MOVED BY BRINLEY, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO DENY THE REQUEST FOR A CITY-INITIATED GENERAL PLAN AMENDMENT AND ALLOW THE OWNER TO PROCEED IF HE SO CHOOSES. 32. Designation of votinq Deleqate/Alternate for Leaque of California cities Annual Meetinq. (F:108.8) City Manager Molendyk pointed out that this item relates to the Annual Meeting at the Annual League Conference. He indicated that a Delegate and Alternate are required to expedite the business at the annual meeting. After discussion it was decided to nominate Mayor Washburn as the Delegate; and Councilman/RDA Chairman Pape as the Alternate. MOVED BY BENDER, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO APPOINT MAYOR WASHBURN AS THE DELEGATE. ., i 1#. PAGE FOURTEEN - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 allow Council to provide direction to the City Attorney for recovery of legal expenses. He noted other ongoing litigation and the expenses being incurred. He indicated that he did not want to see legal expenses for the Claim of Paul smith to come out of the General Fund, due to the basis for the Claim. Mayor Pro Tem Bender requested input from City Attorney Harper. City Attorney Harper commented that not lawsuit has been filed on this matter to date, and until such time as one is filed no action would be taken. He noted that general direction could be provided at this time for a future cross-complaint. - Councilman Pape indicated that his intent was to pro-active on this matter. Mayor Pro Tem Bender indicated that from the standpoint of an individusal citizen, he would concur that Mr. Alongi should bear the cost of this action. He noted that without the deep pockets of the City, this action might head-off the suit. He indicated he would concur with a cross-complaint if appropriate. Councilman Alongi commented that Paul Smith should be thrown out of City Hall and go after Mr. Alongi and not the City and its residents. He indicated he believes that Mr. Smith is an ambulance chaser, but this Council allows him to be a public servant. He stressed that he was acting as a private citizen and not as the city. MOVED BY BRINLEY, SECONDED BY PAPE AND CARRIED BY A VOTE OF 3 TO __ o WITH WASHBURN ABSENT AND ALONGI ABSTAINING TO DIRECT THE CITY ATTORNEY TO FILE A CROSS-COMPLAINT AGAINST HR. ALONGI, IF APPROPRIATE TO DO SO. 34. Review of Main Street Fair. (F:151.1) City Manager Molendyk gave a brief overview of this item and stated that the main issue was moving the Street Fair up one block. Mayor Pro Tem Bender called upon the persons who requested to speak. Chris Hyland, 15191 Wavecrest Drive, explained that she participates in the Street Fair and it does bring in money for the local businesses. She further explained that she is a sales representative and travels allover the State of California and Arizona; and noted that in many of the small communities she visits they have Street Fairs which bring in revenue to the small businesses. She pointed out the current economic times and the inadvisability of moving the location since it would defeat the purpose of promoting the _L_ _~_~_~ ~L_~ _L_ _____~ ___....:1___.&...__...:1 _..1-...._ PAGE FIFTEEN - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 ~ promotes tourism and brings people to the Downtown area to give the local merchants the much needed business. She stated that her customers express a positive attitude toward the Street Fairs and she asked that they be allowed to remain where they are. Rick Zwiefel, representing Antique Emporium, 101 South Main Street, spoke in favor of the Street Fair and asked that the location remain the same. He stated that there are only three businesses not in favor of the Street Fair remaining in the same location, and that constitutes 11% of the businesses in the Historic Downtown Area. He explained that he is only asking what is best for the community and asked for Council to consider the local merchants. Lynn Lane, representing Antique Emporium, 101 South Main Street, spoke in favor of the Street Fair and stated that it promotes the City and the people in the community are in favor of the Fairs. She asked that Council consider what the Fair does for the Downtown area and allow it to remain in its present location. ----- Valerie sleigle, representing Nana's Collections, 120 North Main Street, explained that moving the Street Fair down the street will take the customers away from the stores and hurt their opportunity to promote their businesses. She explained that the local merchants are hurting for business and the Street Fair allows the local merchants to count on business one day every two months; and noted that it is really only a few business persons who are in opposition to the Street Fair. She stressed that this is a democracy and the majority should be considered. Jackie Berge, representing Consignments Etc., 102 South Main, explained that her business is fairly new and stated that the Street Fair has really generated business for the other merchants and herself. She pointed out that most of their Saturdays are not that busy, but the day of the Street Fair it was very busy and the closure of the street for an 8 hour period is not that much to ask, since there is still public parking. She asked that the Street Fair be allowed to continue as it has been done in the past. Jeanie Nichols, representing Main Street Trading Post, 141 North Main Street, pointed out that they had more business on the day of the Street Fair than they had in the previous two weeks. She suggested that a sign be posted on Main Street to point out the public parking lot behind her establishment. She pointed out that her store provides a lay-away system as do most of the other stores and this brings back customers to the area to pay for their merchandise and at the same time visit other stores which generates more repeat business. n~~~ ~~7~~~~' ~~~~~~~~~~~~~7~ ~~ ~ho nQ~ ~n~n~o~ ^',~ ~h~~ PAGE SIXTEEN - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 asked for any fees to be waived and explained that the 60 days is for the Fire and Police to evaluate the location and safety of that location. He pointed out that a new location has been suggested and he has not seen a map nor does he know what safety measures are to be taken and asked that the City extend the same respect in timing that the City asks from individuals. He pointed out that the City took a survey and at that time there were 3 businesses in opposition and 27 who were in support of the street Fair. Mr. Zwiefel stated that November 25th, is the last street Fair of the year and they have not planned any future fairs. He pointed out that he was informed that the construction on Main street by the Water Company is due to start on November 15th; and he asked that this project not affect their Fair. - Councilwoman Brinley stated that she felt that Councilman Alongi should address this since he moved to bring it back on the Agenda. Councilman Alongi stated that they knew the reason for that. He explained this is the only Council that gives a hassel to their Downtown Business Association; and he does not know why the City supported this organization in the first place if they did not want it. He noted that the DBA has been in place for the last 13 or 14 years and has done a lot of good things in the community. Councilman Alongi read from the Bylaws of the DBA and stated "The purpose of the Lake Elsinore Downtown Business Association is to improve business activities through sales, promotions and events. Physical improvements, improved security and communications among local businesses. To assimilate new businesses and promote new growth within the area through an enhanced __ business environment." He explained that this is what a DBA is all about. He stated that he did not understand why they are talking about it at this meeting. He noted that this is the only DBA that goes before the City Council for their activities. Councilman Alongi stated that the only thing they are trying to do is to bring business to the downtown area. He pointed out that the City spent $6,000,000 to improve Main street and the City did that to attract people to Main street. Councilman Alongi read from a letter from John Williams, owner of 120 and 169 North Main street and noted that he has spent a lot of time and money to bring his buildings up to standard and should be allowed to promote the businesses in his buildings. He pointed out that there are a large quantity of antique stores on Main street and the City needs to encourage the promotion of those stores or they will die. He stated that there is no approval necessary from this Council for this item. He stated that the local merchant does not get the consideration and the up-coming construction by the EVMWD is a classic point, since the local merchants were not appraised of the situation and the City does not seem to keep the pulse of the community as a priority. He pointed out that Wal-Mart ..._..'...:1 __. ........_ _....__....::__ 1-.......... __. ",,-_ ,___, ____,__ __....:I '-_ PAGE SEVENTEEN - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 Councilwoman Brinley stated that since Councilman Alongi brought this item back, she wanted to state that she has no problem with the street Fair and noted that they have been very successful. She noted that at the last Street Fair decision, her opposition was for the purpose of having the DBA work with the Chamber to obtain more advertisement and gain more promotion for the DBA. She pointed out that she arrived at the Street Fair at 2:20 p.m. on Saturday and a lot of the vendors were closing and told her that they did not have that great of a turnout. She explained what she was looking for and asked how many vendors were present at this last Street Fair. Mr. Zwiefel stated that they had 45 vendors. Mrs. Brinley noted that the City does have a nice park and it would be nice to incorporate that area from Graham and Main to the Park. She again stated that she has no problem with the Street Fair, but rather how it is advertised, brought out and promoted. Mr. Zwiefel stated that if the location were to be moved, then the Fair would be discontinued due to the Water Board construction. He asked that the City allow them to proceed with the November 25th Street Fair, and then they will wait for the streets to be completed, and go from there. Councilman Pape asked if most of the shoppers came from inside the city or from out-of-town. Mr. Zwiefel stated that most of the shoppers were from out-of-town. Councilman Pape noted that there were 45 vendors at the last Street Fair and asked how many vendors participated in the first two. Mr. Zwiefel stated that at the first Street Fair there were 45 vendors and the second there were only 30 due to the heat. Councilman Pape stated that he noted that some of the vendors were moving their chairs into the landscaping because they were not prepared with shades or umbrellas. He pointed out that some of the vendors were hanging items from the lights on the trees and he is concerned about damage to the landscaping. Councilman Pape stated that originally there were four Street Fairs approved for the purpose of having collectibles. He noted that from the items he saw on the streets it is more of a swap meet; and pointed out that he made a purchase of a halloween mask and that is not considered a collectable or antique. He explained that he thought that there would be more of the antique items and furniture to encourage people to enter the stores to see more. He further explained that he felt by moving it closer to the park, it would add ambiance to the event as well as provide shade. Mayor Pro Tem Bender stated that he attended the Street Fair in July as well as the last one and the Fair in July was not very good. He stated that he was impressed by the last one and did observe a lot of street traffic and people in the different stores. He explained that he feels that the event did bring people downtown and on Sunday there were not many people.on Main Street. Ma~?r Pro Tem Bender indicated that PAGE EIGHTEEN - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 schedule. He noted that after the election in November, there is the potential for a whole new ball game and this subject will be open for discussion again. He pointed out that having the Fair on Thanksgiving Weekend is probably one of the best days that could be scheduled, as it will give the merchants the opportunity to take advantage of visitors and give a few extra people the opportunity to enjoy the area. Mayor Pro Tem Bender stated that he does not see any reason to change the Fair at this time and indicated he would like to see this item come back in the new year. Councilman Alongi commended Mr. Romano for opening his business on Main street. He pointed out the items in his store and how they started out in raw form and were reconditioned for sale. He explained that the grass in the park would be damaged by trucks going into the park to unload and this would constitute greater landscape damage. He stated that the DBA is the sponsor and responsible and do the Fair as a promotion and is a win/win for the Council. He noted that if they are successful then the City is as well, and if they are not, then it is their problem. He noted that November is not hot, but rather can be cold. Councilwoman Brinley stated that she felt that no one had made any comment about the stores or how they maintain them, but the main concern is that the upcoming street Fair be like the first one held and not as was presented at the last one. She stated that the last one was more on the level of a yard sale. Mr. Zwiefel stated that three years ago there were approximately 100 vendors selling and he personally did the events. He indicated the reason they are not done the same way. is because it was placed on the Agenda that it had to be a non-profit organization that did the events. He pointed out the problems that he experienced due to past Councilman Dominguez's interference, which caused his shows to be canceled. He stated that not only did he and his partner loose money, but it caused the vendors to go elsewhere. He explained that it is difficult to get vendors back after two shows have been canceled due to problems with one person. Mr. Zwiefel stated that he would like to see the feud end and stated that he respects the fact that some merchants have been downtown for years; but now they need to work with everyone else and that he does not have any intention of moving and would like to see the downtown area grow. He further indicated he would like to be able to present some fun events. He asked that the Council allow them to have this last event and then they will deal with the new Council. Councilman Pape stated that there were four of the Fairs approved by Council and he does not want to see them changed, but he did think it was fair to express concerns - - PAGE NINETEEN - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 motion to discontinue the Fair based upon the review, the prior motion remains in effect. Mayor Pro Tem Bender stated that there is a choice between no motion, then the event would be the same as preapprovedi a motion to approve the November date, which would reconfirm the November date; or there could be a motion to not approve the item and discontinue the Fair based on review. Mayor Pro Tem Bender called for a motion. Hearing no motion, he indicated that the event would continue as previously approved and the street Fair would go forward. THE CITY COUNCIL MEETING WAS RECESSED AT 9:25 P.M. THE CITY COUNCIL MEETING RECONVENED AT 9:40 P.M. PUBLIC COMMENTS - NON-AGENDIZED ITEMS Mariana Mohylyn, 305 W. Sumner, announced her candidacy as a write-in candidate for the November Election. She expressed concerns for the impact of the Council members who win election of the residents of the city. She detailed her platform for candidacy. Chris Hyland, 15191 Wavecrest Drive, expressed concern that with her campaign signs being stolen, the city Council has not protected the rights of its residents. She expressed concern that the signs of other Candidates are not being removed. She suggested taht other Candidates were buying votes through developer contributions. She requested that the Council direct the Police to investigate any removal or destruction of signs. She suggested that residents report any incidents of signs being removed or destroyed. Michelle Noel, indicated that she was watching this meeting from home and decided to come down to express her concern with comments regarding the Street Fair and the behavior of the City Council. She suggested that city Park would not be suitable for the future Street Fair because of the people who hang-out there. She noted concern expressed by the LEAF veterinarian at a shot clinic in the park. CITY MANAGER COMMENTS city Manager Molendyk reminded Council of the upcoming Open House event at the Diamond on October 7th. He noted that a variety of Public Safety equipment will be present from 9 a.m. to 3 p.m. CITY COUNCIL COMMENTS Councilman Alongi commented on the following: 1) Announced that during the month of October, every Thursday, at 7:00 p.m. "More Than Three Minutes" will PAGE TWENTY - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 his signs were removed and taken away by cutting the wires that were holding his signs in place and he warned the person that removing them that he is going to put up his signs as fast as they come down and the law of averages says that they will get caught. He indicated if he catches the person that is taking down his signs, that person will not be taking signs down for a very long time; and stressed that the money he pays for those signs is money he takes away from his family. 3) Stated that Councilwoman Brinley flip~ed her vote regarding the DBA because she is runn1ng for reelection and wants to have the popular vote. - 4. Responded to Mayor Pro Tem Bender's letter and provided his definition of a crook. He explained that thieves, crooks and scoundrels come in all different sizes, colors and violations. He stated that Mayor Pro Tem Bender voted in violation of his rights and voted to censure him without due process. Councilman Alongi stated that Mayor Pro Tem Bender stole from him the right to defend himself before a committee and if that committee had voted that he had misused his elected official's position and brought it back to Council and Council voted on it, then he would not have a problem with it. He stressed that Mayor Pro Tem Bender stole his right to due process and as far as he was concerned, that is a crook. He stated that Mayor Pro Tem Bender could take it where ever he wants to go with it. He stated that he would not apologize to Mr. Bender because Mr. Bender did not apologize for embarrassing him and his family. He explained that if Mr. Bender wants an apology then he will have to reverse his decision on the censure, because he was denied the right to defend himself. - Councilman Pape commented on the following: 1) Gave a reminder to the public that they will need to use alternate routes while Highway 74 is under construction to raise the roadway. He noted that the project will be starting the first week of December and stated that he hoped that this would solve the flooded roadway problem. 2) Addressed small businesses in the community and their support and indicated he would like to see more small businesses in the City. He discussed the area's progress in business. 3. Noted that the public asks why more restaurants are not in Lake Elsinore and pointed out that recently a well known restaurant, Grazianos, was looking into the Y\,""~~';""';'';..,,. _.&: .........:,..3.:__ _ ,. ^"^^ _________ ,.. PAGE TWENTY-ONE - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 Councilman Pape pointed out that Grazianos is building a 7,000 square foot restaurant at Phillips Ranch and the hook-up fees there are only $57,000. He asked why a larger restaurant is one fourth of the cost. He stated that it doesn't make sense and this causes businesses to by-pass our community due to costs. He asked that the community coordinate with the City to help E.V.M.W.D. to understand that we need to work as a team to bring new businesses into the City. Councilwoman Brinley commented on the following: 1) Stated that Larry Regis hosted a car show at the Casino Saturday and Sunday, as well as the Street Fair and the Boat and Ski Races which were all very positive experiences for the community. - Noted that it is hard to sit and listen someone to cast aspersions upon your creditability and integrity. She stated that she feels Councilman Alongi is one of the most unreasonable people to deal with. She stated that she does not find him communicative, nor does she feel that he has the community's best interests at heart. She stated that she finds him constantly putting down other people's ideas, giving the appearance that only his ideas are the best and only he is entitled to an opinion. She stated that she is finding it harder and harder to sit and listen to him cast aspersions on the Council and other people in the community. Mayor Pro Tem Bender commented on the following: 2) 1) Stated in response to Councilman Alongi that voting on subject matter during Council Meetings is his responsibility and he does not take it lightly no matter the subject, conflicts or potential irritations from any other person. He explained that it does not bother him since his job is to try to make reason from the information and do the best he can with his opinion. He stated that responding to defaming comments. made on a T.V. show by another councilmember is done in a different manner and that is how he handled it. 2) Thanked the Council and public for the fairly smooth meeting that occurred this evening. 3) Announced a "1940's Dance" to be held at the Community Center on October 7, hosted by Friends of the Library. 4) Announced that the Lake Elsinore Management Authority generally meets on first Thursday of every other month, but noted that October 5th meeting, has been rescheduled to October 19, at 10:00 a.m., in PAGE TWENTY-TWO - CITY COUNCIL MINUTES - SEPTEMBER 26, 1995 to "Little Government" to fix things that "Big Government" doesn't. He explained it is natural to want our needs and desires met, but at the same time go in the opposite direction by saying "don't do it with my money". He stated that there is only so much money in the pot and it is difficult to prioritize where the money should be spent. He suggested that the public can accomplish more than the City can; in that if there is trash on your property or near you, try to pick it up or apply some paint instead of looking to government to do everything. It is necessary that everyone take a hand in improving the image of the community. He encouraged the local merchants to improve their image to assist their business and create pride in the community. - CLOSED SESSION a. Lake Elsinore Associates vs. City/Redevelopment Agency - Case #200767. b. Ervin S. & Carol E Palmer vs. City/Redevelopment Agency, etc. - Case #267394. c. Roy & Patricia Terrebonne vs. City - Case #250103. THE REGULAR CITY COUNCIL MEETING WAS ADJOURNED TO A JOINT CLOSED SESSION WITH THE REDEVELOPMENT AGENCY AT 10:10 P.M. TO DISCUSS THE ABOVE MENTIONED HATTERS. THE REGULAR CITY COUNCIL MEETING RECONVENED AT 11:05 P.M. NO ACTION TAKEN. - ADJOURNMENT MOVED BY PAPE, SECONDED BY BENDER AND CARRIED BY UNANIMOUS VOTE OF THOSE PRESENT TO ADJOURN THE REGULAR CITY COUNCIL MEETING AT 11:06 P.M. ...., -., )r~fL - ,/'.." "--nAN BENDER, HAYOR PRO CITY OF LAKE ELSINORE TEM A, tEST:, t n r.~. ~ I ~ II' "~ ' O-c ~Kr ItA AD, CrT CLERK CITY OF LAKE ELSINORE