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HomeMy WebLinkAbout08-09-1994 City Council Minutes M:INUTES REGULAR C:ITY COUNC:IL MEET:ING C:ITY OF LAKE ELS:INORE 183 NORTH MA:IN STREET LAKE ELS:INORE, CAL:IFORN:IA TUESDAY, AUGUST 9, 1994 - ************************************************************** CALL TO ORDER The Regular city Council Meeting was called to order by Mayor Washburn at 7:04 p.m. PLEDGE OF ALLEG:IANCE The Pledge of Allegiance was led by Councilwoman Cherveny. ROLL CALL PRESENT: COUNC:ILKEKBERS: ALONG:I, BENDER, CHERVENY, PAPE, WASHBURN ABSENT: COUNC:ILKEKBERS: NONE Also present were: City Manager Molendyk, Assistant City Manager Rogers, ci ty Attorney Harper, Administrati ve Services Director Boone, Acting Chief Building Official Russell, Manager of Special Projects Watenpaugh, Special Projects Coordinator Wood, City Treasurer Kelley and City Clerk Kasad. PRESENTAT:IONS/CEREMON:IALS A. Oath of Office - citv Treasurer Garv Kellev.(F:49.1) City Clerk Kasad issued the Oath of Office to City Treasurer Kelley. City Treasurer Kelley thanked the City Council for this appointment and welcomed comments and suggestions from the public. PUBLIC COMMENTS - AGEND:IZED ITEMS Requests were received to address Item Nos. 10 and 21 and deferred to those discussions. CONSENT CALENDAR The following items were pulled from the Consent Calendar for further discussion and consideration: Item Nos. 1, 5, 6, 7, 9, 10. - KOVED BY WASHBURN, SECONDED BY ALONGI AND CARRIED BY UNANIMOUS VOTE TO APPROVE THE BALANCE OF THE CONSENT CALENDAR AS PRESENTED. 2. Received and ordered filed the Building Activity Report for July, 1994. (F:32.2) 3. Received and ordered filed the Code Enforcement Activity Report for July, 1994. (F:54.1) 4. Ratified Warrant List for July 29, 1994. (F:12.3) PAGE TWO - CITY COUNCIL MINUTES - AUGUST 9, 1994 8. Adopted Resolution No. 94-47 relating to Bank of America Bank Card Services. (F:12.1) RESOLUTION NO. 94-47 A RESOLUTION OP THE CITY OP LAKE ELSINORE, AUTHORIZING BANK CARD SERVICES (BANK OP AMERICA). - ITEMS PULLED PROM CONSENT CALENDAR 1. Minutes (F:44.4) a. Reaular citv Council Meetina - Julv 26. 1994. b. Joint Budaet Workshop - Julv 28. 1994. c. Special citv Council Meetina - Auaust 2. 1994. Councilwoman Cherveny indicated that she was not in attendance at the above listed meetings and would not be voting on the Minutes. MOVED BY ALONGI, SECONDED BY BENDER AND CARRIED BY A VOTE OP 4 TO o WITH CHERVENY ABSTAINING TO APPROVE THE ABOVE LISTED MINUTES AS PRESENTED. 5. Water Ski School/Concession Aareement. (F:68.1) (X:92.1) City Manager Molendyk noted the receipt of the Lake from the State of California and the initiation of a Water Ski School shortly thereafter. He noted that this request is for a five year agreement to allow them to borrow the money for the improvements to allow for additional classes. Councilwoman Cherveny inquired whether these would be - improvements to public property and questioned the liability for those improvements. Manager of Special projects Watenpaugh indicated that the operator of the Ski School currently holds a $1 million insurance policy for the acti vi ties. Councilwoman Cherveny questioned whether the improvements would revert to the ci ty . Mr. Watenpaugh confirmed that these would be City improvements. Mrs. Cherveny indicated that this should be stressed in the final agreement. Mayor Pro Tem Bender indicated for a five year exclusive agreement, he would need to see more information and more of the language for the agreement before obligating the City. Mayor Washburn suggested that the approval could include a required review of the final agreement by the Council. He further suggested that the Council might want to look at a three year contract with a two year option. He questioned whether the contract content had been discussed yet. Mr . Watenpaugh indicated that he has received several sample contracts from other facilities and noted that the City Attorney will also be reviewing the final contract. Mayor Washburn indicated that he felt that the right direction was underway. ......" Councilman Pape questioned what the operator's bank would require. Mr. Watenpaugh indicated that they had requested a 5 year agreement per the bank. Mr. Pape indicated that it was a plausible use for the Lake and he would like to see it go forward. PAGE THREE - CITY COUNCIL MINUTES - AUGUST 9, 1994. Councilman Alongi concurred with Councilman Bender and suggested a three year agreement with an option for the City to cancel. Mr. Watenpaugh indicated that staff would move forward with the agreement and return to Council for review. MOVED BY WASHBURN, SECONDED BY PAPE AND CARRIED BY A VOTE OF 4 TO 1 WITH BENDER CASTING THE DISSENTING VOTE TO AUTHORIZE STAPF TO PROCEED ON CONTRACT DEVELOPMENT, WITH ATTENTION GIVEN TO TIME FRAME FOR AGREEMENT AND COST ESTIMATES FOR THE IMPROVEMENTS. 6. Resolution No. 94-45 - Confirming Placement of Weed Abatement Costs on ProDerty Tax Rolls. (F:166.1) city Manager Molendyk explained that this resolution is part of the annual process. He noted that the process started with approximately 5,000 properties. Mayor Pro Tem Bender indicated that he had pulled this item to let the public know that the abatement notices went to 5,000 property owners and the City ended up abating approximately 1,800. He stressed that this resolution is only to allow the costs to be recouped. He noted that the hope is that the owners would all handle their own abatement. MOVED BY BENDER, SECONDED BY PAPE AND CARRIED BY UNANIMOUS VOTE TO ADOPT RESOLUTION NO. 94-45 AND DIRECT STAPF TO PLACE SPECIAL ASSESSMENTS AGAINST PROPERTIES LISTED IN THE ITEMIZED REPORT. RESOLUTION NO. 94-45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, CONFIRMING AN ITEMIZED WRITTEN REPORT SHOWING COST OF WEED AND RUBBISH ABATEMENT, CONFIRMING THE ITEMIZED WRITTEN REPORT FOR EACH SEPARATE PARCEL OF LAND REQUIRED BY SECTION 39574 OF THE GOVERHKENT CODE OF THE STATE OF CALIFORNIA, AND PROVIDING THAT THE COSTS THEREOF ON EACH PARCEL OF LAND SHALL CONSTITUTE A SPECIAL ASSESSMENT AGAINST SAID PARCELS OF LAND PURSUANT TO SECTION 39574 OF THE GOVERHKENT CODE OF THE STATE OF CALIFORNIA, AND PROVIDING FOR THE FILING OF SAID ASSESSMENTS AS PROVIDED IN SAID GOVERHKENT CODE. 7. Lake Elsinore Diamond Bond Refinancina - Resolution No. 94-46. (F:134.10) Councilwoman Cherveny asked for a report from the Councilor other delegates who went to New York regarding the status of the bonds before Council takes action. Mayor Washburn stated that he and Councilman Pape, as Chairman of the Redevelopment Agency, made a presentation to Moody'S Investment Rating Service and the City is waiting to hear a decision on the rating. He explained that they also talked to a major lending International Bank on acquisition of bonds and they talked to insurance carriers for insurance on the bonds. Councilman Pape stated that the purpose was to either get the bonds rated or get enhancements on the bonds. He exp1ained that they are hopeful that the City gets enhancements, and if the City is able to do that then the rating will automatically be better, which means a lower interest rate. He further explained that this will constitute a substantial savings of money and interest to the citizens of Lake Elsinore. PAGE ~OUR - CITY COUNCIL MINUTES - AUGUST 9, 1994 Councilman Pape stated that in summary, what initially occurred was short term construction financing on the Stadium, for a one year period and now the City is going into the marketplace to acquire long term financing on the Stadium for 25 or 30 years. He explained that this is similar to the construction of a home, the builder puts a short term loan on the home for construction and then when the home is purchased a long term loan is acquired. -- City Attorney Harper stated that Mike Richardson, who represents the underwriter was very positive and has received very positive feedback both from Moody's and the banks. Councilman Alongi questioned the aggregate principal amount not to exceed $17,000,000 and asked why this amount is stated. Special Projects Coordinator Wood explained that the $17,000,000 is an outside amount with the objective and hope to not only refinance, but to generate some additional cash in this issue. The "Series B Bonds" was the taxable issue of the two series that the City issued last year. He further explained that the tax-exempt issue still has two more years to run before the city must refinance. He stated that the $17,000,000 is just an outside authorization, but does not mean that it will be issued in that amount. He stated that it is the limit that the City can issue, there is nothing that says that the City must issue that amount of bonds. The amount will depend upon the rating. Mr. Wood stated that the final statement will reflect the actual amount of bonds that the City will issue. Councilman Alongi asked why the ceiling is $17,000,000. He stated that the city is looking to refinance the $9,250,000 and asked what the remainder of the money would be used for. - Special Projects Coordinator Wood stated that the excess would be used to repay the financing that was necessary from the Redevelopment Agency. Councilman Alongi asked what additional cost it would create on the ball field if the bonds were for $17,000,000 beyond the original financing. City Attorney Harper stated that the amount of tax increment which is generated from the project areas and which is available for financing is fixed. He explained that the only question is how much money that fixed amount can raise. Mr. Harper stated that this City does not have the ability to use anything over the generated tax increment. The amount stated is just testing the waters to see if there is available cash between that portion of the stadium that was financed and what the tax increment will allow in order to recoup funds that were used from the Redevelopment Agency. Special Projects Coordinator Wood stated that it would also be affected by the rating the City receives, which would set the interest rate and determine how much the City can issue based on the tax increment. - Councilman Alongi stated that when the ball field was begun it was only the monies from the Redevelopment Agency that would PAGE FIVE - CITY COUNCIL MINUTES - AUGUST 9, 1994 be used, but since then money has been taken from the General Fund to continue to finance the Stadium. - Councilman Alongi asked if the tax increment is not enough to meet the debt, who pays the difference. Special Projects Coordinator Wood stated that if the Agency does not have the money, then it would fall back on the General Fund. city Attorney Harper clarified the purpose of the coverage requirement for the tax increment. He stated that the tax increment has not gone down in the City of Lake Elsinore's history, but in addition to that there is a requirement by the underwriters and insurance company that there be sufficient coverage so that sort of thing will not happen. He explained that the coverage test is 1.2 which means that for every dollar of tax increment used to repay the bonds there has to be $1.20 in a bank. Mr. Harper explained the process of insurance and the Bond Laws. Councilman Alongi questioned the stated maximum annual interest rate section of the Resolution. City Attorney Harper explained that this is firm language stating the total maximum. - Councilman Alongi asked if anyone who may finance the bonds knows about this action that the City is taking to alter the interest. City Attorney Harper stated that they would not have knowledge of this resolution. He explained the way that bonds are sold. Councilman Alongi asked that the Public Financing Authority be explained. Special Projects Coordinator Wood explained that in 1990 the City Council and Redevelopment Agency established a Joint Powers Authority known as the Public Finance Authority, which allows the City to do its own underwriting of local obligations. He stated that all of the CFD's are financed through this Authority. He further explained that the Authority was established for that purpose, and stated that the City council sits as the Board of Directors for this Authority. Councilwoman Cherveny asked what the current "Motor Vehicle In Lieu Fees" are ear-marked for. Special Projects Coordinator Wood stated that the fees are not ear-marked at this time and the money goes into the General Fund. Councilwoman Cherveny asked what the delinquency rate of the CFD's are at this time. Special Projects Coordinator Wood stated that the Summerhill Area is the largest delinquent area and was owned by Friedman Homes. He explained that the Mortgage Holder has informed the ci ty that they will be bringing the taxes current, therefore it has tentatively been resolved. Councilwoman Cherveny asked what the cost will be to refinance. Special Projects Coordinator Wood explained that the cost of issuance will be approximately two and one half to three percent. PAGE SIX - CITY COUNCIL MINUTES - AUGUST 9, 1994 Councilwoman Cherveny stated that it would a be a much cleaner resolution if the Council knew the bonds were insured and the interest rates. Special Projects Coordinator Wood explained that the City must get the bonds closed and sold in order to payoff the former bonds by the first of October. City Attorney Harper stated that this is a chicken and egg situation and that this structure and these findings need to -- be made in order for the insurer and rating bank agency to rate. He explained that all those things need to be in place before they will make a commitment and the City will not know what the interest rate is until the day that they are sold. He explained that there is no way of anticipating the rate and that is why the City has stated a maximum. Special Projects Coordinator Wood clarified that the bonds must be rated before they are sold. City Attorney Harper stated that if the interest rates were so high that it was not wise to sell the bonds, then the city is not obligated to proceed. Councilman Pape stated that the existing bonds are maturing on October 1, 1994, and the people who have invested in those bonds are expecting to get their principle back and what this action involves is issuing new bonds in order to accomplish that act. He stated that if this issue is voted down, then it will appear that the City is willfully defaulting on the existing bonds. Councilman Alongi stated that this was an unfair statement. - Mayor Washburn commented that the best explanation is that there was short term construction phase and the City is now looking to take a long term issuance to pay the Stadium off. MOVED BY WASHBURN, SECONDED BY PAPE AND CARRIED BY A VOTE or 4 TO 1 WITH CHERVENY CASTING THE DISSENTING VOTE TO APPROVE RESOLUTION NO. 94-46, LAKE ELSINORE DIAMOND BOND REFINANCING AS FOLLOWS: RESOLUTION NO. 94-46 A RESOLUTION or THE CITY COUNCIL OF THE CITY or LAKE ELSINORE PROVIDING FOR APPROVAL or A LEASE AGREEMENT IN CONNECTION WITH THE ISSUANCE or CERTAIN BONDS BY THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY, APPROVING ISSUANCE or SUCH BONDS, APPROVING THREE REIMBURSEMENT AGREEMENTS, A BOND PURCHASE CONTRACT, AND AN OFFICIAL STATEMENT, ELECTING TO GUARANTEE LEASE PAYMENTS WITH AMOUNTS IN THE CITY'S MOTOR VEHICLE LICENSE FEE ACCOUNT, AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO. 9. Report on Outflow Channel Fencinq. (F:92.2) Councilwoman Cherveny requested clarification that the fencing will be placed along the Channel, with the ability for the City to remove it at a later date. Staff confirmed. - MOVED BY CHERVENY, SECONDED BY BENDER AND CARRIED BY UNANIMOUS VOTE TO RECEIVE AND ORDER FILED THE REPORT OF AUGUST 9, 19094 RELATING TO OUTFLOW CHANNEL FENCING. PAGE SEVEN - CITY COUNCIL MINUTES - AUGUST 9, 1994 10. Letter of Resiqnation - Councilwoman Tere Chervenv. (F:44.1) Councilman Alongi indicated that he would like to see this item be the last on the agenda, with similar action on the Redevelopment Agency item. Mayor Washburn indicated that the action would really be to receive and file the resignation to be effective August 31, 1994. He noted that this could be done at any time during the meeting. MOVED BY WASHBURN, SECONDED BY BENDER AND CARRIED BY UNANIMOUS VOTE TO ACCEPT THE LETTER OP RESIGNATION FROM COUNCILWOMAN CHERVENY AND DELAY RELATED PRESENTATIONS UNTIL LATER IN THE MEETING. PUBLIC HEARING 21. Conductinq Authoritv (Protest) Hearinq for Annexation No. 65. located north and west of the intersection of Grand Avenue and Machado street. South of Alvarado Street and east of Plumas Street (The Western Desert CorD.) (F:20.2) - City Attorney Harper stated that the purpose of this item is to hold a public hearing pursuant to the direction of L.A.F.C.O. on the Annexation. He explained that this is a protest hearing and in the event there are between 0 and 25% protests by the registered voters residing within the area to be annexed, the City Council may do what they wish. In the event there are between 25% and 50% then an election is called of the affected annexation residents and in the event the protests are in excess of 50% then the annexation dies. Mr. Harper stated that the City has received 141 signature protests, and after the public hearing the signatures will be compared with the Registrar of Voter's list and if it is determined that it exceeds 50%, then the issue is dead. He explained that 111 notices were sent and the City will not be able to ascertain the status of the annexation until the information has been verified. The function of the public hearing is to give the residents the opportunity to add their signatures to the protest of the annexation or withdraw their signatures and the results will be transmitted to the Registrar of Voter's Office for verification of address and signature. He further explained that the results of the verification will be disclosed at the next meeting. Mayor Washburn opened the public hearing at 7:40 p.m. and asked those persons interested in this item to speak: Steve Parry, Western Desert Corp, spoke in favor of the project and stated that his firm has attempted to process a Proposed Tentative Map prior to the Annexation to the City. He explained that it was the intent of his company to work with the City of Lake Elsinore to develop a project which met the needs of density within the project demands and also met the needs of the density of the surrounding area. Mr. Parry feels that there may not have been proper communication to the residents of the annexation regarding the fact that the City is a good place to be a part of. He explained his presentation to the homeowners and stated that there is a very negative view of the City. He stated his disappointment in the failure of the project and indicated he feels that the PAGE EIGHT - CITY COUNCIL MINUTES - AUGUST 9, 1994 perception of the residents in opposition is very negative and is an unfair perception. Donna Bejarano, 32831 Magdalena Court, representing the homeowners in the Annexation spoke in opposi tion to the proj ect. She stated that Mr. Parry was misinformed in thinking that he had presented a positive view to the homeowners; and stated that the residents impacted by this project did not feel that it was a good land plan nor did it meet the needs of the area. She gave a background of the project, both from the time that it was brought before the County and now at the City level and the problems that the homeowners feel will affect their lifestyle , health and safety. - Richard Bejarano, 32831 Magdalena Court, spoke in opposition to the project and stated that he felt that Mr. Perry did not represent the facts properly. He explained that he is not opposed to annexation to the City, but rather opposed to the land plan that Western Desert Corp. has presented. He stated that he felt the annexation was an attempt to bypass the plan that was worked out by the homeowners and the County for development the area. Mr. Bejarano stated that the existing plan is not a good use for the area and he is opposed to the increase in density from the original plan that was proposed to the County. Sabrina MacEntire, 32931 Magdalena Court, pointed out that there were 141 written protests submitted to the City by registered voters and land owners of the proposed annexation area and stated that the homeowners are opposed to the annexation presented to the City because of the land plan. - Alfredo Adriano, 15028 Marcalesco, spoke in opposition to the project and expressed his opposition to the land plan. Mayor Washburn closed the public hearing at 7:55 p.m. Councilman Bender stated that if there is that amount of protests, then he would guess that more than 50% are valid, and asked what the expense will be to verify the signatures with the Registrar of Voters; and suggested that if there are so many protest letters than perhaps the Council should terminate the project now. City Attorney Harper stated that the City has an obligation, since the City is the Conducting Authority, to complete the process. There is an obligation to the homeowners to have sufficient protests to have the annexation dropped and on the flip side there is an obligation to the proponent of the annexation and the developer to make sure that the signatures are valid. Therefore the city is obligated to both parties and has no choice but to proceed. MOVED BY PAPE, SECONDED BY BENDER AND CARRIED BY 4 TO 1 VOTE WITH CHERVENY CASTING THE DISSENTING VOTE TO CONTINUE THE PROTEST HEARING FOR ANNEXATION NO. 65 TO THE REGULAR CITY COUNCIL MEETING OF AUGUST 23, 1994, PENDING THE FINDINGS REGARDING THE VALIDITY OF THE SIGNATURES ON THE WRITTEN PROTEST BY THE REGISTRAR OF VOTERS, AS PRESENTED BY THE OFFICE OF THE CITY CLERK. .. PAGE NINE - CITY COUNCIL MINUTES - AUGUST 9, 1994 BUSINESS ITEMS - Reauest for CosDonsorshiD/H.O.P.E. (F:10S.1S) City Manager Molendyk explained that H.O.P.E. has requested the cosponsorship of two events. He stated that they are a benefit dinner and a children's Christmas party. City Manager Molendyk commented that, should the City Council wish to cosponsor the events a refundable deposit of $500 for each event should be required, with a non-refundable $50 cleaning deposit. He stated that staff would recommend cosponsorship of the events with the $500 deposit. MOVED BY CHERVENY TO WAIVE THE FEES. MOTION DIED FOR LACK OF A SECOND. 31. Mayor Washburn stated that the City is in the process of setting the budget and stated that each year there is a problem with how the City will handle funding and assisting different projects which are of benefit to the community. Mayor Washburn stated that he would like to see this item tabled until the budget is finalized to give Council the opportunity to review the amount of funds available and how they will be used, since there are several requests. - Mayor Pro Tem Bender stated that the city is in a situation with the budget where some projects may not be able to be funded fully; and over the past years there have been several organizations which have approached the Council to assist in funding their projects. He indicated that he personally does not believe that all of them belong at the City council level. Councilman Bender explained that the staff should have some reasonable fee basis and process these matters at a staff level. He stated that he feels that politics are used when the requests are made; and he feels that considering the finances of the City, these projects should be looked at in a business like fashion. He stressed that City staff should handle these issues and not allow them to become political. Councilman Pape stated that it is a logical approach to continue this item while the city is still dealing with the budget. He explained that several worthy groups do come before the Council asking for assistance, and he would like to see some money set aside in the budget for that purpose, to be allocated through the course of the year to the groups who come before the city for assistance. Councilman Pape stated that in this way the expenditure can be anticipated and there will be no need to dip into the General Fund to cover these items. - Councilman Alongi asked the representative of H.O.P.E. what their deadline for notification from the city on these activities is. Don Butensheon, representing H.O.P.E., stated that they will need to know in the very near future in order to proceed with their planning for the benefit dinner and children's Christmas party. Councilman Alongi stated that H.O.P.E. is a totally non-profit organization and all the monies raised by H.O.P.E. go back into the community. He stated that perhaps the $50,000 that has been set aside for a for wheel drive vehicle for the City PAGE TEN - CITY COUNCIL MINUTES - AUGUST 9, 1994 could be better used to assist the organizations which help keep crime down in the community. He explained that when the people's needs are not met then things happen. Councilman Alongi stated that the requested $3,000 will not hurt the city and will greatly benefit the community. He stated that the Christmas party last year served 400 children and that it is a wonderful thing to see the community's tax dollars used in this way. __ Councilman Alongi asked when the next budget session will be held. Mayor Washburn stated that it will be next Thursday. MOVED BY WASHBURN, SECONDED BY PAPE AND CARRIED BY UNANIMOUS VOTE TO TABLE THIS REQUEST BY H.O.P.E. FOR COSPONSORSHIP UNTIL AFTER THE BUDGET HAS BEEN SET. 32. Lake Elsinore Tourist Special (LETS) - Reauest for License. (F:34.1) City Manager Molendyk explained that over the last several months staff has met with Mr. Aguado regarding his request for an exclusive license to operate a tour service. Mr. Aguado proposes to use a car or nine passenger van to begin his proposed tour service. He indicated that staff's recommendation would be for a non-exclusive business license to operate within the City of Lake Elsinore. If Council chooses to approve an exclusive license (franchise), staff would negotiate the franchise fee. It was further recommended that the license be evaluated in six months to determine whether the service is meeting the desired service objectives. Mayor Washburn stated that this business may be a little ahead of its time, but can be tested. He explained that at this __ time he felt that it would be advisable to approve a non- exclusive license with the business to be reviewed in six months with the City to enter into a possible franchise agreement. MOVED BY WASHBURN, SECONDED BY ALONGI TO APPROVE A NON-EXCLUSIVE AGREEMENT WITH A REVIEW IN SIX MONTHS TO CONSIDER A POSSIBLE FRANCHISE AGREEMENT WITH LAKE ELSINORE TOURIST SPECIAL. Mr. Aguado stated that he has been working for an exclusive license, and asked that Council consider that a provision be made that in 12 months a franchise would be awarded to him. Mayor Washburn stated that the City cannot take that action. He explained that the applicant would have to come back for a formal franchise agreement. Mr. Aguado explained that the reason for this request was to insure the time and money invested would be safeguarded by a provision. Mayor Washburn stated that the Business Plan is not in depth enough for Council to make a franchise decision at this time. City Manager Molendyk explained that his office has not received a financial pro forma at this time and there is no track record of this company conducting services of this nature in any other location; therefore, the six months would gi ve the applicant the opportuni ty to provide the proper information to Council to justify a franchise. - PAGE ELEVEN - CXTY COUNCXL KXNOTES - AUGUST 9, 1994 - Mr. Aguado stated that he was aware that at a future date he would have to provide all the information to acquire a franchise, but he felt that at this time, the package was complete. He explained that without the protection of a franchise, that it would be a great risk for Lake Elsinore Tourist Special to operate. Mayor Pro Tem Bender indicated that while he admires an entrepreneur, it does not sound like there is a business plan. Mr. Aguado stated that he does have a business plan, but the waters need to be tested. He feels that he must test the business and meet the demands as they grow. Mayor Pro Tem Bender inquired whether Mr. Aguado had contacted the Public utilities Commission, for a license to carry people in vehicles; and stated the requirements of the State for carrying passengers. He explained that he does not favor exclusive agreements without proof of an adequate business plan and potential revenue generated for the city. councilwoman Cherveny asked why the correspondence and proposals were not made part of the Agenda packet. councilman Alongi questioned the year and make of the Van proposed to be used for this service. Mr. Aguado stated that it is a 1995 Safari Van and gave an overview of the type of services that he hopes to develop in the future. THE FOREGOXNG KOTXON WAS APPROVED BY A 4 TO 1 VOTE WXTH BENDER CASTXNG THE DXSSENTXNG VOTE. THE CXTY COUNCXL KEETXNG WAS RECESSED AT 8:20 P.K. THE CXTY COUNCXL KEETXNG WAS RECONVENED AT 8:26 P.K. PRESENTATXON (F:44.1) city Manager Molendyk commented on the resignation by Councilwoman Tere Cherveny from the Council and called Mrs. Cherveny to the podium. city Manager Molendyk presented Councilwoman Cherveny with a scrapbook depicting her contributions during her term on council, a City Tile Plaque and a Key to the city which was specifically requested by Mrs. Cherveny. PUBLXC COMMENTS - NON-AGENDXZED XTEKS Joe Garcia, 16440 Monterey street, read a letter of support for Councilwoman Cherveny and thanked her for her efforts on the city Council and presented her with a gift. _ Lorraine Watts, representing the N.A.A.C.P. presented Mrs. Cherveny with a plaque in thanks for her contributions to the schOlarship fund and other programs in which the N.A.A.C.P. is involved. Lela Cardoza, 300 Ellis Street, thanked Councilwoman Cherveny on behalf of Briarwood Mobilehome Park for her work in the Community. She indicated that she believed Mrs. Collins would be an appropriate replacement on the Council. She further suggested that the position of Mayor be rotated throughout the Council on a more frequent basis. PAGE TWELVE - CITY COUNCIL MINUTES - AUGUST 9, 1994 Mariana Mohylynn, 305 W. Sumner, commented on her belief that the abatement process is discriminatory and suggested the process be thoroughly reviewed. She further commented angrily that she had attempted to address the roof and paint the house, but received a stop notice. Mayor Washburn requested that Mrs. Mohylyn return to order and control her comments. Mrs. Mohylyn indicated that greater sensitivity is needed to address situations such as this. Mayor Washburn indicated that the three minutes had elapsed and __ requested that Mrs. Mohylyn sit down. After heated discussion, Mayor Washburn declared a recess to regain order. THE MEETING WAS RECESSED AT 8:45 P.M. THE MEETING WAS RECONVENED AT 8: 50 P. M. WITH COUNCILWOMAN CHERVENY ABSENT. CITY MANAGER COHHENTS None. CITY COUNCIL COHHENTS Mayor Pro Tem Bender commented on the following: 1) Thanked the residents of the Valley for their contributions to the United Way fund raiser at the Stadium. He also thanked the Storm for their willingness to provide 1/2 of the ticket proceeds to the United Way. 2) Thanked Councilwoman Cherveny for her work on the Council. He noted their differences as private citizens, but commended her for her willingness to serve on the Council. -- Councilman Alongi commented on the following: 1) Commented that it was an honor to serve with Councilwoman Cherveny. He indicated that she would have been an asset had she continued to serve. He indicated that she was never given a chance to excel. 2) Thanked the team for their participation in the united Way fund raiser. Commented that he is sad to see the auction not occur. 3) Commented that he has been watching the Senate Hearings and noted that they do not use names in their criticisms. 4) Thanked Mrs. Middough, Julie Helms, Nancy Bright, Scott Walker for their letters. 5) Disappointed with the restaurant at the Stadium not being open more frequently. He hoped that the Council would revisit this issue. 6) Commented on the Amber Ridge Project article and noted the statistics of residents willing to sign up. He stressed the importance of a minimal number of sign-ups before the system is started. He stressed that the only benefit is to the Water District. --' PAGB THIRTBBN - CITY COUNCIL MINUTBS - AUGUST 9, 1994 councilman Pape commented on the following: 1) Disagreed with Councilman Alongi regarding Amber Ridge, indicating that he believed the participation would increase. - 2) Commented on his participation in the abatement hearing process. City Manager Molendyk reminded the Council that Walmart would be opening on September 27th. Mayor Washburn commented on the following: 1) Commented on calls received from the Bird Tract and Nashland Area. Advised that staff is working on resources to address the problems. 2) commented on the success of the New York Bond trip, noting that the results will be known in about 10 days. He thanked staff for their efforts in preparing for this trip. CLOSBD SBSSION None. ADJOtJRNMBNT - THE CITY COUNCIL MEETING WAS ADJOURNED AT 9:05 P.M. ;r:T: , \ w~2YLERK CITY OF LAK~ ELSINORE ~n WtJJL- GAR:[il. WASHBURN, MAYOR CIT~F LAKE ELSINORE -