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HomeMy WebLinkAbout07-28-1994 City Council/RDA Joint Budget Workshop MINUTES CITY COUNCIL/REDEVELOPMENT AGENCY JOINT BUDGET WORKSHOP 130 SOUTH MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, JULY 28, 1994 - ***************************************************************** CALL TO ORDER The Budget Workshop was called to order by Mayor Washburn at 8:20 a.m. ROLL CALL PRESENT: COUNCILMEMBERS/BOARDMEMBERS: ALONGI, BENDER, PAPE, WASHBURN ABSENT: COUNCILMEMBERS/BOARDMEMBERS: CHERVENY Also present were city Manager/Executive Director Molendyk, Administrative Services Director Boone, City Planner Leslie, Acting Chief Building Official Russell, Community services Director Sapp, Community Services Manager Best, Public Services Director Tecca, Public Works Manager Payne, Manager of Special proj ects Watenpaugh, Sheriff Captain Yankee, City Treasurer Kelley and City Clerk/Clerk of the Board Kasad. DISCUSSION ITEM - 1. 1994-95 Fiscal Year Budget. (F:30.1) City Manager/Executive Director Molendyk opened the budget discussion noting that this year's budget is being formulated later than usual because of pending final dollar amounts on the Stadium. He detailed the 1993-94 budget revenue and. expenditures and explained the 1994-95 projections. He noted the recent impacts of state budget balancing on particularly the Redevelopment Agency. He further noted that previously administration costs were charged back to the Redevelopment Agency, however, this is not longer possible. He indicated that the proposed budget would utilize $1,465,000 of the existing reserves. He further indicated that two new part time positions are proposed in this budget, being a part time maintenance person to address the Senior Center and Cultural Center, and a part time clerical person for Engineering to assist with the recently implemented parking ticket program. He also indicated that a capital Improvement Budget of $685,000 is proposed. Administrative Services Director Boone detailed the capital Improvement Project Funds available. - councilman/Boardmember Alongi requested clarification of the Street related funds proposed out of the $685,000 and whether it was only the $200,000. City Manager/Executive Director Molendyk clarified the programs proposed. Public Services Director Tecca presented a five year plan to serve as a wish list and explained the proposed distribution by priori'ty for this fiscal year, including Main street/Sulpher Street Decontamination ($150,000), spring Street/Sumner Avenue Decontamination Study ($50,000) , Nashland ...... PAGE TWO - BUDGET WORKSHOP MINUTES - JULY 28, 1994 Avenue Access Improvement ($200,000), Main street/Lakeshore Drive Intersection ($30, OOO), Miscellaneous street Paving ($200,000) and Curb, Gutter, Sidewalk/Landscaping ($55,500). Councilman/Boardmember Pape questioned the ability to track down the past property owners to pay for the soil decontamination projects. Mr. Tecca indicated that this was possible, but efforts have been underway for nearly a year with no success. Mr. Molendyk clarified that the problems to be decontaminated relate to old gas station tanks. Mr. Tecca further clarified that massive amounts of fuel have been found underground and the proposed $50,000 is only for the study to determine the extent of the problem. Councilman/Boardmember Alongi inquired whether there was a time limit to address these items. Mr. Tecca indicated that some progress needs to be shown. Councilman Alongi inquired whether the $150,000 was for complete clean up of the problem. Mr. Tecca confirmed. Mr. Alongi further questioned the need to clean it up this year. Mr. Tecca indicated that it might be possible to delay it a year. Councilman/Boardmember Pape questioned the possibility of allocating half the funds this year and half next year. Mr. Tecca indicated that this would most likely impact the repairs to the sidewalk, gutter, and curb after the decontamination has been completed. Mr. Pape suggested spreading this cost over two years. Mr. Tecca indicated in this case, he would prefer to fund the decontamination this year and the repairs next year. Councilman/Boardmember Alongi questioned the impact of soil testing on the street. Mr. Tecca indicated this impact would be minor, and he would not have a problem with splitting the project into two years. city Manager/Executive Director Molendyk indicated that he had received questions regarding Limited street and questioned its status. Mr. Tecca indicated that it is currently under design for a two lane interim roadway. He further indicated that there have been many requests for this road, but the money is not available this year. Mr. Molendyk indicated that the Council needs to know the costs for items such as this. Mr. Tecca stressed that this is the first year of a five year plan. Mr. Molendyk noted the Street Improvement Project and indicated that it is felt that the Limited Street improvement should occur with the completion of the Channel. He noted that Council might want to consider this in lieu of the Miscellaneous Street Improvements. Councilman/Boardmember Alongi questioned why this would not be listed as a priority. Public services Director Tecca continued to detail item nos. 3 to 6 on the Capital Projects List. The Main Street/Lakeshore Project ($30,000) is in connection with a state project for $158,000. Miscellaneous Street Paving ($200,000) is part of an annual maintenance effort to include ei ther temporary improvements or repaving proj ects. He stressed the need to slurry seal the chip sealed streets. He detailed the breakdown and proposed streets from these dollars. He noted that the overlay on Chaney Street was a minimal patch job and needs to be overlayed again this year. The curb, gutter, sidewalk work is proposed around schools and provides the 20% matChing funds for SBA 121 funds; the landscaping in this item is for finishing of Graham Avenue project. Councilman/Boardmember Alongi questioned the proposed - - ...." PAGE THREE - BUDGET WORKSHOP KlNUTES - JULY 28, 1994 - improvements for Illinois street, and asked whether they were proposed as temporary with no curb, gutter or sidewalk improvements. Mr. Tecca confirmed this was the proposal. Mr . Alongi inquired whether this was the area where Elsinore Ready Mix is willing to donate the concrete. Mr. Tecca indicated that it was, however there is approximately $20,000 worth of design work that would need to be done first. Mr. Alongi stressed the impact of water run-off in this area and commented that this was an opportunity to correct the problem. - city Manager Molendyk explained the "other items" proposed for funding including carpet, painting, repair work on City Hall, Community Center refurbishing and painting, replacement of high mileage vehicles, four-wheel drive vehicle for heavy rains and other emergency situations, and a minimal economic program to remain visible and competitive. He noted that the city newsletter and Autumnfest are proposed to be eliminated. He noted that the Stadium and its operation have only the consideration of concession revenue for maintenance, besides the $600,000 to supplement the fist year of operations. He stressed efforts to work toward self-sufficiency on the part of the Stadium. with regard to studies he further explained that the General Plan update is pursuant to a state requirement, the Lake Elsinore Specific Plan was required by the State as part of the Lake transfer, the Annexation 66 filing fee to LAFCO is to maintain the City's sphere of influence, and the Cultural Center funds related to performances to which the city has already committed. Councilman/Boardmember Pape questioned what performances are proposed. Community services .Director Sapp indicated that there is a Shakespearean event to include two performances and a workshop; and also another performance group for a series of performances. - City Manager/Executive Director Molendyk indicated that the budget as proposed would take approximately $2.5 million from reserves to balance and leave approximately $780,000 in reserves. councilman/Boardmember Alongi questioned any other items which might come up this fiscal year. Mr. Molendyk indicated that some questions remain regarding the After School Program and the July 4th program. He further indicated that the reserves are generally for unanticipated items such as heavy rains, litigation, etc. He noted that while he is not totally comfortable with the proposed level of reserves, the organization has been downsized three times in the last four years and capital items have not been replaced during that period. Councilman/Boardmember Alongi expressed concern with the small amount of reserves and questioned what happens if major problems occur. Mayor/Boardmember Washburn indicated that this situation would require that something else be cut. He noted the budget as presented does not take in to account other funding such as the $1/2 million for the Lake. He suggested that the four-wheel drive vehicle, the Lake Edge Specific Plan and other professional items could be funded from that fund. Mr. Molendyk indicated that this was true however, it is important to replace that revenue. Mayor Pro Tem/Vice Chairman Bender expressed an overall concern with dipping into the reserves excessively, and approving a budget for more than the prior year's. He expressed further concern with the potential for very minimal reserves in next year's budget and noted the potential for PAGE FOUR - BUDGET WORKSHOP MINUTES - JULY 28, 1994 serious revenue generation problems. He indicated that he would like to look at deletion of some items to reduce the impact on the reserves for this year, while working to secure additional revenue sources for next year. He suggested not doing as many items and reviewing the budgeted amounts. He indicated that he may have suggestions for reductions. City Manager/Executive Director Molendyk stressed the importance of not spending more than is available. He - indicated that he could go back and delete some refurbishing; and while it is not imperative to do economic development, it is the only thing to allow forward movement on drawing new revenue to the community. He further indicated that it might be possible to reevaluate the Stadium maintenance and operations, and go back and look at what special studies are priorities, as well as looking at what could be delayed. He noted that the Lighting and Landscape Maintenance program as proposed is balanced for providing street lights, median landscaping, park maintenance, etc. Mayor/Boardmember Washburn questioned the Graham Avenue Landscaping and whether it is on individual meters. He questioned whether consideration was being given to placing it on the same system as Main Street. Mr. Molendyk clarified that it was originally planned to be on the master system, however, after Council discussion was placed on individual meters; he indicated that it could be reevaluated for conversion to the master system. Mr. Tecca indicated that this conversion would cost approximately $200,000. Mayor Washburn inquired what problems exist with the turf in place. Public Works Manager Payne indicated that the problems are due to individual property owners watering levels. - City Manager/Executive Director Molendyk detailed the current fund balances and recommended expenditures for the Lake. Manager of Special Projects Watenpaugh noted the obligation on January 1, 1995 to take over 1/2 of the Lake Patrol function for the Lake. He explained that the budget addresses a full time maintenance and operations person and part time staff to assist that person, as approved mid-year last year. He also explained that the budget includes minimal odor control and treatment for general maintenance of the Lake, and does not include water quality control for the entire lake. He stressed this budget includes minimal requirements for operations. Mayor /Boardmember Washburn inquired whether the Lake Edge Specific Plan was the most important item for this year. Mr. Watenpaugh indicated that it was important in connection with the Master Plan. Mayor Pro Tem/Vice Chairman Bender noted that the largest expense was for contractual services and questioned what this would include. Mr. Watenpaugh indicated that this was for Sheriff or State Patrol services. City Manager/Executive Director Molendyk noted that one proposal was received from the Sheriff for full staff, but they are currently looking at getting a boat from the Colorado Ri ver and using Overtime off icers. Captain Yankee further explained the review underway on the proposal, noting that the original proposal seemed too high. He explained that the next proposal will include use of reserve and overtime officers. Mr. Watenpaugh further ..... PAGE FIVE - BUDGET WORKSHOP MINUTES - JULY 28, 1994 explained that the figure includes ongoing health department testing and completion of the Boating and Waterways Grant Application. - Administrative Services Director Boone detailed the Redevelopment Agency Budget, estimating a carryover of $172,000, from Fiscal Year 1993/94. Councilman/Boardmember Alongi inquired whether there would be any additional costs for the ball field. Mr. Molendyk indicated that staff is optimistic that the dollars already allocated will be sufficient. Mr. Boone clarified that the estimated final cost for the Stadium is $22.1 million and some decisions are still pending. Mayor Pro Tem/vice Chairman Bender commented on the $600,000 to come from the Water District and suggested that an alternative timing for the expenditure be worked out with the District. Mr. Boone indicated that he could approach them. - Councilman/Chairman Pape noted that more Redevelopment Agency reserves are anticipated at the end of the year than at the beginning. Mr. Boone indicated that this was only if all items remain as stated. Mayor/Boardmember Washburn noted that it would be nice to get the tax increment built up to assist. ci ty Manager Molendyk noted other impacts on this year's budget are that some Assessed Valuations are anticipated to be going down; and the lobbyist has informed the city that the State has balanced its budget without impacting the cities further, at least until after the November Election. Mayor/Boardmember Washburn inquired in that the Council sets policy and provides direction, what is the most direct line for the Lake to generate the most money. He inquired whether enforcement on users, special events, or proper zoning would be the best approach to make it a greater revenue source. City Manager/Executive Director Molendyk indicated that it was important to look at the Lake in the next year. He noted that launching helped, but water elevation became a problem; special events bring business, but this is not a direct revenue source for the City. He noted that under the State Park agreement it is paying out more than it is bringing in, so the agreement needs to be reevaluated. He further noted that enforcement could generate revenue, but does not help to promote the Lake and was not a big source of dollars for the State. Mr. Watenpaugh clarified that the State did not receive funds from enforcement, as all of those dollars went to the Courts. He indicated that launching is the best resource, but local enforcement of fishing regulations and possible implementation of a day use fishing fee, possibly $2, could also assist with revenue. He noted that improved water quali ty will also assist, in making the Lake an improved source of revenue. Mayor Pro Tem/Vice Chairman Bender inquired whether hotel/motel type occupancy tax can be assessed on the marinas and campgrounds. Mr. Molendyk indicated that this could only be placed on facilities within City limits, but a new law does allow for assessment on R.V.'s; this could be looked at as a new revenue source. Mayor Washburn concurred that this source PAGE SIX - BUDGET WORKSHOP MINUTES - JULY 28, 1994 should be considered. Councilman/Boardmember Alongi inquired why the City could not charge anyone who fishes on the Lake, whether on public or pri vate property, to pay a fee. He indicated that he has a problem with anyone using the Lake without paying a fee. He suggested an annual fishing permit fee, similar to the annual boating pass fee. Mr. Watenpaugh indicated that he could obtain verification from the City Attorney, but the $5 day use fee is for use of a boat on the Lake; he was not certain whether this could address use of __ private property. He noted that the difficulty with this might be in verifying property lines. Mr. Alongi questioned the state's position on property lines and water levels. Mr. Watenpaugh indicated that this related to the state's enforcement rights. Councilman Alongi inquired whether the City would have the same rights, since the City is paying for fish. Mr. Watenpaugh indicated that he would research this matter and provide a report to Council. City Manager/Executive Director Molendyk stressed that this budget is based on the prior year's level of service. He noted that last year more money was given to non-profit organizations and stressed the need for Council policy in this area. He noted the "user pays" requirement and indicated that the staff needs direction on how to deal with non-profit groups and their use of City facilities. He stressed the need for that policy direction to come from this budget process, noting that the small amounts do add up. Mayor Pro Tem/Vice Chairman Bender inquired how much this amounted to last year. Community services Director Sapp indicated that it was over $25,000 last year. Councilman Pape questioned the timing for budget requests. Mr. Molendyk clarified the type of assistance requested and indicated that the budget proposes the same amounts for the same groups. He indicated that addressing this as part of the budget process will solve problems later. Mayor Washburn noted the difficulty in providing blanket policy direction. Mr. Molendyk concurred but stressed that these items do come up every year, after the budget has been approved. Councilman/Boardmember Alongi suggested that the best approach was to assist organizations with 501 status only, noting that possibly a bulk amount could be budgeted and requests could only be approved as long as funds were still available. Mayor Pro Tem/Vice Chairman Bender questioned the advisability of this, suggesting that the events be cut out or the fees be cut. He suggested that an equitable fee be established and all groups be required to pay it. Councilman/Boardmember Alongi stressed that this should only be for Lake Elsinore non-profit groups. He noted that the City has previously helped organizations in Temecula, and it should really only be organizations that help a majority of Lake Elsinore residents that recei ve funding. Mayor Pro Tem/Vice Chairman Bender suggested that picking and choosing between organizations should be avoided. He reiterated that a reasonable fee structure should be established and all groups charged equally. Councilman Alongi indicated that the Community Center usage was not hard dollars, because a staff person is always present anyway; he noted that a parade is a different situation. Mayor Pro Tem Bender stressed the importance of recouping the revenue. Mr. Alongi indicated that this was an entirely different situation, of revenue versus services the -- - PAGE SEVEN - BUDGET WORKSHOP KZNUTES - JULY 28, 199. - taxpayers have paid for already. He stressed that 501 status groups like H.O.P.E., School Bell and the Friends of the Library provide a service and all residents have equal opportunity to participate. Mr. Bender indicated that he was looking at the general philosophy. Mayor Washburn noted that this was a question of special needs versus hard dollars. City Manager/Executive Director Molendyk commented that in the past the council/Redevelopment Agency have not had a set group of goals to agree on. He stressed the importance of an economic plan and financial plan, and five or six major goals, with the entire council buying in to a set program. He indicated that staff could develop a list of major goals for discussion at the next meeting. - Councilman/Chairman Pape inquired whether the $80,000 in C.D.B.G. funds was the allocation for the Yarborough Park improvements to be started this date. Staff confirmed. He questioned the ADA retrofit requirements. Mr. Sapp indicated that these are required by January of 1995, with new playground equipment and handicap accessibility. Councilman/Chairman Pape indicated that he was looking for any funds which could be used to address the Lake, particularly park or sand areas along the Lake. Mr. Sapp that there are some dollars allocated for Lakeshore Drive areas. Mr. Watenpaugh commented that the city is now maintaining and watering, where possible, fertilizing and mowing; and the grass is starting to grow. He noted that part time staff is also being recruited to address this are. Mr. Pape indicated that he has been down to that area and much of it does not have grass and sprinklers are needed; he questioned the possibility of allocating money to provide additional improvements. Mr. Watenpaugh suggested looking at available C.D.B.G. funds for next year. city Manager/Executive Director Molendyk indicated that there are some park in-lieu fees available for new projects. Mr. Boone confirmed that there is $86,000 available. Mr. Pape indicated this would be a start for the items discussed. councilman/Boardmember Alongi stressed that there is no nice park along the Lake. Mr . Molendyk noted Lakepoint Park. Mr. Alongi indicated that he meant a park with access to the Lake. Mr. Molendyk indicated that staff will bring back a proposal. Mr. Bender suggested deweeding a section and placing sand. Mr. Alongi suggested a children's area with swings, etc. Mr. Watenpaugh indicated that this could be done, but if it is deweeded and sand is placed it is an improvement and handicapped access improvements will also be required. Mayor/Boardmember Washburn noted that there are indi vidual lots in the area which could be acquired for expansion. Mayor /Boardmember Washburn commented that there are other projects which receive City dollars, such as Kids on Track, which is provided to assist the School District, but is not cost effective. He noted that this might be an area to save dollars to allocate more cost effectively and better benefit the overall community. Councilman Pape indicated that he has spoken with the School District President regarding the possibility of joint funding of this program. He inquired of Captain Yankee whether he believes the Nashland Street Improvement Project will help to eliminate the problems, noting that his area has cul-de-sacs PAGE EIGHT - BUDGET WORKSHOP MINUTES - JULY 28, 1994 and he always thought that was preferable. Captain Yankee indicated that he was asked about possible options and the best option. He indicated that the project could possibly be delayed, however the property is available now. He stressed that he believed that this was the "best" answer, but not the "only" answer. Councilman Alongi indicated that he doesn't believe the street improvement will eliminate the problem, noting that many _ streets are cul-de-sacs. He stressed that this is a problem area with an element to be eliminated. He indicated that he would prefer to work with and assist the owners to compensate for the density and design problems which are inherent. Mayor /Boardmember Washburn indicated that this discussion gives perspective to the situation, while much of the problem relates to absentee landowners and a multitude of other items on Nashland, the same problems are not prevalent in single- family owned residential areas. He stressed the need to go after the business licenses for multi-family users. He noted that the street improvement is a quick fix to break open the area. Councilman/Chairman Pape indicated that he would rather see increased enforcement in the area. Mayor/ Boardmember Washburn disagreed indicating that it is important to change the character of the traffic flow through the area. Captain Yankee stressed the complexity of this situation and offered to provide more details at the next discussion. Mayor Pro Tem/Vice Chairman Bender commented overall he would like to see the deletion of some items, but stressed the importance of maintaining existing facilities. He noted that trades between proj ects could occur, with some being postponed until warranted. - Councilman/Boardmember Alongi expressed disappointment that additional police and fire services are not being addressed. City Manager/Executive Director Molendyk noted that attempts are being made through special enforcement and funds are being reviewed to address the fire station. THE BUDGET WORKSHOP WAS ADJOURNED A AT EST: ~ V ~, CITY CLERKI CLERK OF THE BOARD f:lw)fJIf~ O)/L'AKE E~NORE i~ U) /J~d......i jl /' /' v r---- EVIN W. PAP~, CHAIRMAN REDEVELOPMENT AGENCY ...",