Loading...
HomeMy WebLinkAbout03-10-1994 City Council/RDA Study SessionMINIITES CITY COIINCIL/REDEVELOPMENT AGENCY STUDY SESSION CITY OF LARE ELSINORE 130 SOIITH MAIN STREET LARE ELSINORE~ CALIFORNIA THURSDAY~ M71RCH 10~ 1994 •*t**a***r*******a**r,t****ra**ss~*a*s~st-ws***r,r***~*r,t~a*s+tr**r*• CALL TO ORDER The City Council/Redevelopment Agency Study Session was called to order by Mayor Washburn at 3:05 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Peter Dawson. ROLL CALL PRESENT: COUNCILMEMBERS/BOARDMEMBERS: ALONGI, DOMINGUEZ, WASHBURN ABSENT: COUNCILMEMBERS/BOARDMEMBERS: CHERVENY, WINKLER Also present were: City Manager Molendyk, Administrative Services Director Boone, Manager of Special Projects Watenpaugh, Community Services Manager Best, Community Services Director Sapp, City Planner Leslie, City Treasurer Pape and Deputy City Clerk Bryning. IT WAS THE CONSENSUS OF THOSE PRESENT TO HEAR LOW INTEREST HOME IMPROVEMENT LOAN PROGRAM- FIRST TRUST BANK AS THE FIRST ITEM FOR DISCUSSION. COiJNCILMAN/CHAIRMAN WINKLER ARRIVED AT 3:06 P.M. COUNCILWOMAN/BOARDMEMBER CHERVENY ARRIVED AT 3:07 P.M. DISCIISSZON ITEMS 1. Low Interest Home ImArovement Loan Proaram - First Trust Bank. City Manaqer Molendyk explained that this program is designed to encourage the people in the community to fix-up or landscape their property. He explained that the Administrative Services Director has had several meetings with First Trust Bank and they have agreed to start the program with the City and the Agency by setting $300,000 aside for a pilot program. The loans would range from $2,500 to $15,000, with a 60 to 120 month pay off, at an interest rate of 7~. He explained that the collateral would be the Trust Deed against the borrower's owner/occupied single family residence. Maximum loan to value 95~. Fire, casualty insurance coverage, would be required. He stated that the applicants would have to meet the credit criteria required by First Trust and this program is designed for the entire City. Mr. Molendyk explained the permissible uses for the money acquired from the loan, and explained the impermissible uses. Councilman Alongi explained that in review of the information he found that in permissible uses it lists "Remodeling of kitchens, baths, basements and other existing living area" and in impermissible uses it lists appliances. He explained that if a house is remodeled it usually has new appliances. He asked if the appliances are already built in, what would be the difference in replacing an oven that doesn't work with a free standing stove and oven. Administrative Services Director Boone explained that if it were originally built-in it should be replaced with a built-in Mr. Alongi stated that the list should indicate that. PAGE TWO CITY COLiNCIL/REDEVELOPMENT AGENCY STIIDY BESSION MINIITES MARCH 10~ 1994 Councilman Alongi asked why burglar alarms were impermissible. He stated that it should be considered a safety factor, especially smoke alarms, etc. Administrative Services Director Boone explained that if they qualify for the $15,000 loan it might be considered, but it would not be one of the high priority items to be considered. Councilman Alongi stated that demolitions were listed as impermissible and he stated that he would like to see them pay for their own demolition instead of the RDA. Administrative Services Director Boone explained that this program is designed for home improvement and not for demolition. Councilman Alongi noted that the payment schedule is for a 10 year period. He asked if it would be possible for them to be set for 15 years. Administrative Services Director Boone stated that this is the Bank's recommendation of what they thought was appropriate. He explained that it can be reconsidered. Mayor Washburn asked if the collateral is a first and a second or is it just a first. Administrative Services Director Boone stated that it would be a second and if there is room possibly a third. Councilwoman Cherveny asked what a typicalpayment would be on these loans. Administrative Services Director Boone explained the examples presented. City Treasurer Pape clarified that the loan would be placed on the value of the lot and not the house and that would constitute the 95$ loan value. Councilman Alongi stated that a lot of homes have been torn down that do not have mortgages and it would be easier to obtain the property in a foreclosure of this manner, then to abate as is done now, with RDA funds. Mayor Washburn asked if a portion of the house needs to be rebuilt and a portion needs to be ripped out, would that be covered under this loan. Administrative Services Director Boone stated that it would be acceptable since there would be a finished product. Councilman Alongi requested that the bank be asked to consider demolition loans at 7~. Councilwoman Cherveny asked about the rental of homes after the improvements are complete. Administrative Services Director Boone stated that he was not sure if this could be included with a title report or not. The loan would not be awarded to anyone that the home is not owner-occupied. Mayor Washburn asked if this program qualifies for the 20$ set aside. Administrative Services Director Boone stated that it would and that the City is also dealing with Bank of America and they might be interested in forming a pilot program as well. City Treasurer Pape stated that the City needs to find some means to get the word out to the public that these loans are available. PAG& THREE CITY COIINCIL/REDEVELOPMENT AGENCY STODY SESSION MIN[TTES MARCH 10~ 1994 Administrative Services Director Boone explained the process of the loan application. Councilman Dominguez stated that the City could be the first to recommend the program. Councilwoman Cherveny asked if this was being done with First Trust Bank; and whether there are any problems with this process. Mr. Boone stated that there are no problems with this program. City Manager Molendyk explained that Administrative Services Director Boone will work with the bank and then bring the final proposal for the program back to the Council and the RDA Board. Mayor Washburn stated that he liked the landscaping section, because there are a lot of homes which would be much improved with landscaping and repair of landscaping. Councilwoman Cherveny again stated she would like to see the payments placed on a 15 year schedule to acoommodate Seniors Citizens. Councilman Alongi asked about renting, and if this could be part of a xUD program; and if there is a triplex or duplex and qualifies for low income housing, would the bank look at that. City Manager Molendyk explained that one of the things that the City and the County looked at for low income is if one of the duplex's is owner-occupied they would be considered, but not if they are rentals. Councilwoman Cherveny inquired if the owner dies and the family decides to keep the house and rent it, then the loan continues on. City Manager Molendyk explained that if the owner dies then the note is called and must be paid. Mayor Washburn stressed that the intent is for owner-occupied. 2. Lake Water Ouality. City Manager Molendyk explained that originally staff was hoping this would be a Joint Study Session to define water quality, discuss who has responsibility, odor and the algae problem. He explained that he had received a fax from Mr. Hoagland stating that the Board of EVMWD would be available for a study session next Tuesday at 5:00 p.m. Mr. Molendyk explained that this would be the time to confirm. He explained that when the Lake was transferred by the State it was understood that the Water District had the responsibility for water quality. He stated that what has complicated the situation is the fact that there is an odor on the lake and an algae problem that was not there three weeks ago. Mr. Molendyk explained that as of July 1, the City is obligated to take care of the grass and trash down by Swick and Matich Field and in a former report given to Council there were three alternatives suggested by staff. 1) Treatment and staff; 2) just hire staff for maintenance; and 3) was to do nothing and let Mother Nature take its course. He stated that a decision will have to be made soon, before the summer months. City Manaqer Molendyk explained that staff is not prepared to give Council an answer today, on what is causing the problems in the San Jacinto River channel or on the lakeshore with the blue-green algae. Manager of Special Projects Watenpaugh felt PAGE FOIIR CITY COIINCIL/REDEVELOPMENT AGENCY STIIDY SESSION MIN[JTES MARCH 10~ 1994 that this is caused from the high phosphoruscount. The algae causes quite an order which has caused complaints from the shopping centers around the Lake. He stated that the purpose of this Study Session is to decide what kind of maintenance level the Council would like to implement. He further explained that no one has seen the blue-green algae this early in the season before. Councilman Dominguez asked if anyone has ascertained what is causing the smell near Vons. Manager of Special Projects Watenpaugh explained that with the studies that Black and Veatch have done and the information that they have put together it shows that Lake Elsinore has a very high phosphorous count and this is feeding the algae. He explained that the odor that the City is experiencing is cause from the dead and dying algae which bloomed all winter. He stated that what staff is concerned with is that no matter what measures are taken for the long term solution to treat the lake, there will still be some immediate problems which must be addressed as soon as possible. Mr. Watenpaugh explained that there have been offers from local businessmen to volunteer assistance in working on the Lake to help solve the problem; both for the short term and long term solutions. He explained that the recent improvements done on the inflow channel have cause shallow water which has caused an accumulation of algae bloom and die-off in the warm water and created the odor which is now experienced near Vons. Manager of Special Projects Watenpaugh explained that even with treatment, of Q-Train it is temporary. He explained that from last years experience the treatment only lasts for a day to three days and then must be addressed again. He stated that it is expensive and does not last. City Manager Molendyk explained that the City has received proposals which range from $600,000 to $6,000,000 and Council had expressed concern that before any more money is spent there should be some type of guarantee; and at this point there is none. Mr. Molendyk stated that it is hoped that between the City and Water District some solution can be reached for both short term and long term. He explained that one of the things that must be done is to identify the source of the problem before the problem can be treated. He stated that at this time it is not known what is creating the problems. Councilman Dominguez asked about blue-stoning the Lake. City Manaqer Molendyk explained that it was copper sulfate and MWD stated that it would do the trick but it would upset the ecological balance of the Lake and make it worse in the long run. Mayor Washburn stated that he feels that there is no one time fix and he stated that its going to be a constant maintenance issue. He cited the study from Black and Veach and the study that LEMA has done that point out the phosphorous which comes into the Lake and is a key issue, plus the phasing out of all septic systems. He explained that the Lake will have to be dredged out and the source of the blue-green algae must be found. He explained that this will require cooperation, not only between the Water District and the City, but the Public at large as well. Mayor Washburn explained that no one type of treatment will completely solve the problem. PAGB FIVS CITY COIINCIL/RBDEVELOPMENT AGENCY STODY BESSION MINOTES M}-RCH 10~ 1994 Councilman Winkler asked if there was any way to address the algae on the shoreline with some physical equipment such as a vacuum process. Manager of Special Project Watenpaugh explained the process and stated that it could be done, but it is labor intensive. Councilman winkler stated that 5:0o p.m., Tuesday is a good time for him and asked Mr. Laughlin of the Water District if areation is a possible part of the solution and asked if the Water District is working on that. Jim Laughlin, General Manager of Elsinore Valley Municipal Water District explained that this is part of the long term solution and they are looking at it, but it is approximately a seven year project to get it in place, in addition to the removal of some of the mud off the bottom of the Lake. He stated that the process used in Long Beach where they used the mud to create an island is effective. Director Attridge of Elsinore Valley Municipal Water District stated that there hasn't been an afternoon wind in the last three years and this did aid in the areation of the Lake. Councilwoman Cherveny asked where the City is with LEMA and they will be able to assist with the algae problem in the Lake. Mayor Washburn explained that the next LEMA meeting will be held on April 2. Councilwoman Cherveny stated that even if they put it on their agenda, it would be too late to do anything for this year. City Manager Molendyk stated that there is the suggestion regarding sprinkler heads to break up the shore line algae in addition to the use of Q-Train. Mayor Washburn explained that he had met with Ken Jones from the Department of Water Resources and they discussed areation and the potential of resources from that department. City Manager Molendyk reminded Council that the public will still be asking for the boat launch facility and that must be considered as well. Mayor Washburn clarified the report that was presented to Council previously. Manager of Special Projects Watenpaugh explained the three options presented to Council. City Manager Molendyk noted that Mr. Dawson has offered to assist the City in the treatment of the Lake. Manager of Special Projects Watenpaugh explained that the boat is available in December from the State Park and he will see if we can use it before then for the application. Councilman Alongi stated that he lived on the Lake for 10 years and he stated that he has never seen the type of problems that are being experienced now. FIe stated that he felt that areation is a strong answer. He questioned the micro-organisms and what they are causing. Manager of Special Projects Watenpaugh explained the changes that have occurred up stream because of larqe development and that has had a direct impact on the type of run-off. PAG$ 8I% CITY COIINCIL/REDEVELOPMENT AGENCY STUDY SE88ION MINOTES MARCS 10~ 1994 Councilman Alongi stated that the accumulation of algae is less behind the dike than in the Lake and stated that we need to find out what is entering the Lake. Mayor Washburn commented that since the Federal Law has provided for up stream pollution, and if the problems are found to come from that source, and question if it is possible to get money to assist in the clean-up. Jim Laughlin stated that EVMWD will be doing a study of the up stream run-off and trying to ascertain if that is the problem. He stated that they are seeing a higher nutrient level in Canyon Lake as well. He stated that in the back basin there has not been the years of build-up of phosphate that there has been in the mud of the Lake and that is why there is a greater build up of the algae in the Lake area. Councilman Alongi stated that one of his concerns is that no one talks about treating a body of water this large. He stated that it is a lot of money to put into the Lake and not have guaranteed results. City Manager Molendyk stated that after the City took the Lake over from the State, in order to qualify for grant money the City must provide a Master Plan, which the State was not required to do and this has caused a challenge. Councilwoman Cherveny asked if it was easier for the Water District to ask for grants to clean up the lake. She asked how the District feels about the quality of the water. Jim Laughlin stated that this should be discussed at the Joint Meeting between the Boards. He stated that he did feel that the quality should be attractive for recreational use. Mr. Laughlin brought up the fact that in the 60's there was a bond issue called out for improvements for Lake Elsinore and there was a balance of $5-1/2 million left after pumping of the Lake. At the time.of transfer it still left a balance of $3-1/2 million which the State placed in their general fund and he felt that this money should be returned to the Lake. There was general discussion in regard to the recovery of the funds that the State has used. Director Attridge stated that reclaimed water is of better quality than the water that is in the lake at this time. Councilman Dominguez asked that Mr. Dawson address Council. Peter Dawson, 18010 Grand Avenue, explained that he felt that the bio-remediation was an effective short term solution and to aid in lowering costs he would be willing to volunteer to spread the micro-organisms in the water. The only assistance he would require is the person to provide the material and tell him where to place the solution and how much to place. There was general discussion in regard to the application and its effectiveness and cost. PAGE SEVEN CITY COUNCIT,/REDE~IELOPMENT AGENCY STUDY SESSION MINUTES MARCH 10, 1994 Mr. Jones of Grubbs and Sdmar, explained that areation will not solve the problems with the phosphate. He stated that this must be harvested in some manner, either through a circulation settling bed or dredging of some nature. He explained that the bottom sediment and how phosphate works. He explained micro-organisms will aid in the solution of this problem and will certainly control the odor and aid the oxygen in the Lake. He gave an overview of the problems of the Lake and there was general discussion in regard to solutions and guarantees. Mayor Washburn stated that as he explained before there is no one single solution to this problem and it must be addressed at several different levels. Councilwoman Cherveny asked if Canyon Lake is experiencing an increase in the phosphates in their lake. Mr. Laughlin explained that the water that came down the back basin from Canyon Lake was very high quality water and did not contain a surplus of phosphates and he feels that it is the mud in the Lake which is creating the problems. Director Attridge asked about an alum treatment in the Lake. Mayor Washburn explained that a study was done and the treatment would cost one million dollars to clean the water and coat the bottom to keep the phosphates contained and the treatment would have to be repeated on an annual basis. Councilman Alongi stated his doubt with Lake circulation since there is no out-flow until the Lake reaches a level of 1255. Mr. Grubbs stated that a program would have to be worked out to address this. Mayor Washburn stated that this would have to be addressed as a combined effort year round to address the Lake water quality. Councilman Dominguez questioned the alum treatment and clarified the cost and treatment. Councilwoman Cherveny asked if the Water District had done any investigation with the Department of Fish and Game regarding the use of the fish, Tilapia Zillii. Mr. Grubbs explained the use of the tilapia and stated that it is the young that eat the algae and as they grow they eat other fish. Mayor Washburn stated that the odor and the edqe of the Lake need to be addressed at the Joint Meeting. It was the consensus of Council to hold the Joint Meeting between the City Council and the Water District on Tuesday, March 15, 1994, at 5:00 p.m. in the Conference Rooms in City Hall. Mayor Washburn recognized Councilman Ron Parks from Temecula and he asked if the mixture of treatments, such as copper sulfate, or alum would kill the micro-orqanisms. Mayor Washburn stated that if the treatments are done in the right quantity they will not affect each other. PAGS SIGHT CITY CODNCIL/REDEVELOPMENT AGENCY STIIDY SE88ION MINIITES MARCH 10, 1994 Mayor Washburn asked that the staff from the City and the District get together and set the topics for the agenda for the Joint Study Session next Tuesday. THE MEETING WAS ADJOURNED AT Respectfu submitted, ~.~~~~, ;~,~ Adria L. Bryning, Depu£y Cit A ST: ~ VICKI KA AD, CI Y CLERK