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HomeMy WebLinkAbout08-27-1992 City Council Study SessionMINUTES CITY COUNCIL STUDY SESSION CITY OF LAKE ELSINORE 130 S. MAIN STREET LAKE ELSINORE, CALIFORNIA ` TUESDAY, AUGUST 27, 1992 ******************************************************************************~ CALL TO ORDER Mayor Washburn called the Study Session to order at 3:05 p.m. ROLL CALL PRESENT: COUNCILMEMBERS: ALONGI, CHERVENY, WINKLER, WASHBURN ABSENT: COUNCILMEMBERS: DOMINGUEZ Also present were: City Manager Molendyk, Community Services Director Watenpaugh, Public Services Director Tecca, Community Development Manager Shear and City Clerk Kasad. BUSINESS ITEMS 1. Oak Grove Eauities _ Soecific Plan & E.I.R. (F:150.2) City Manager Molendyk highlighted this project. Milt Freeman, Applicant, advised that this project has been reviewed by and received approval from the Planning Commission. Frank Greco, Project Manager, gave an overview of the project which involves a 46 acre site. He detailed the location and commented on the existing topography factors of the site. He also commented on prior discussions regarding the need for a freeway off-ramp at this location and advised that this need is being reviewed. He also detailed the proposed traffic circulation. He commented on the Planning Commission discussions of the project and expressed concern with the cost increase to provide 24" box trees. He also explained a future use area which might serve as an office building site. Councilman Alongi inquired what letters of commitment the applicant held from major tenants. Mr. Freeman advised that he has had a letter from Walmart for over a year, however, alternate sites were considered late in 1991. He explained the current possible locations and the problems to date. He stressed that Walmart is still interested and could very well utilize this location. City Manager Molendyk commented on earlier meetings with Walmart in which they requested 100% of the sales tax for a period of time. He further commented that at present a"gentlemen's" agreement exists for the Murrieta location, however concurred that a Lake Elsinore store is still a possibility. He also commented that Redevelopment Agency assistance is being requested on this site which would include 100% of tax increment and 50% of sales tax until the debt is repaid. Mr. Freeman advised that he would request site and plan approval, as well as a letter of commitment from the Agency Board. City Manager Molendyk questioned the financing needed and whether it would be the same for tenants other than Walmart. Mr. Freeman advised that the site specific costs dictate the assistance needed; for businesses other than Walmart less extensive and less costly improvements would be needed. Councilwoman Cherveny inquired whether a committment is absolutely necessary from the Agency, as she would want be assured of the tenant before tieing in a financing agreement. PAGE TWO - CITY COUNCIL MINUTES - AUGUST 27, 1992 City Manager Molendyk requested clarification as to whether less bond issuance cost would allow the debt to be retired with less sales tax commitment. Mr. Freeman advised that less sales tax could extend the pay back period. Mr. Freeman stressed that the figures presented are based on Walmart. Mayor Washburn commented that the financing assistance would remain tied to the site. Councilman Winkler commented that the larger the tenant, the quicker the pay-off. Mr. Greco further clarified the tax situation and potential site trade-offs. Councilman Alongi advised that he has a problem with the location and the amount of dirt to be moved. Mr. Freeman commented that there is one million yards of dirt to be moved. Gouncilman Alongi stressed the amount of site improvement costs associated with grading. Mr. Freeman suggested that if the City can find a buyer for the dirt, the costs could be reduced. City Manager Molendyk commented on the alternatives for the site and addressed the potential for a stadium. He suggested that the dirt might be helpful to the East Lake Development Area. He commented that if other projects proceed, there are opportunities for trade-offs. Councilman Alongi commented on the Walmart Center in Perris, for which a similar financial agreement was discussed. He expressed concern with the 50% sales tax committment with only one major tenant as Perris has three majors. He explained the existing agreement with the City of Perris and expressed concern that this site can not accommodate more than one major tenant. Councilman Winkler questioned the twelve year estimate for this project. Mr. Freeman explained hte basis for the sales tax estimate. He advised that the time line for opening would be within one year with six months of grading and six months of construction. Mr. Greco commented that they are working toward the ability to bring a power center to the site. He clarified the financial commitment and its tie to a particular user and clarified that contingencies could be implemented. Mayor Washburn commented that the Agency would set policy as a tool for this type of arrangement. Mr. Freeman added that the City would become like a partner in the project. Councilman Winkler questioned the timing of the specific plan. Mr. Freeman advised that he would like the financial and specific plan as a package. He stressed that all approval is in concept. City Manager Molendyk clarified that what is requested is that the City show a working relationship for the applicant to proceed. Councilman Alongi advised that he doesn't mid being part of the project, but he would like flexibility in the event a'lesser tenant is secured. City Manager Molendyk suggested that possibly the agreement could be tied to a minimum square footage. Councilman Alongi further stressed the need for flexibility. Mr. Molendyk suggested that approval is based on securing at least one major tenant. Mr. Freeman advised that they are anticipating the use of Certificates of Participation for the on-site improvements and a Community Facilities District for the off-site. He further clarified that their request is the ability to provide a viable tenant an approved plan and commitment. Councilwoman Cherveny commented that she is fiearing a request for a specific commitment. She further commented that she would have no problem PAGE THREE - CITY COUNCIL MINUTES - AUGUST 27, 1992 with a general committment, such as up to 50% of sales tax and a Community Facilities District or appropriate financing. City Manager Molendyk commented that the smallest tenant considered thus far was 105,000 square feet and suggested that smaller tenants would need Council reconsideration. 2. Landfill/Eagle Mountain Presentation (F:163.1) Michael McCartney, Vice President, Eagle Mountain, outlined the economic benefits of this project and explained the future plan for processing of waste. He also explained the benefits of this type of facility over the existing County Landfills. He further explained that a large percentage of the trash deposited in this facility would come in by rail in shipping containers. He detailed the processing of recyclables, inspection of materials deposited on site, and the daily anticipated tonage of waste to be deposited. He also detailed the layer system to be utilized to seal and maintain this facility. City Manager Molendyk inquired whether through the City's agreement with CR & R the City would already be participating in this project. Mr. McCartney that this would not necessarily be the case. City Manager Molendyk questioned the cost variable to the users. Mr. Magee, CM Engineering, advised that it will cost the same no matter where the materials is dumped, because Eagle Mountain and E1 Sobrante charge the same rate. He explained that out of County dumping would also be accommodated at Eagle Mountain and that would be at a higher rate. Mr. McCartney further clarified that the regular tipping fee is $36.50 per ton and the cost for out of County dumping would be $7.00 more per ton. He detailed the daily capacity dumping ability of this facility and advised that it will generate approximately 1,140 new jobs. Mayor Washburn questioned ownership of the facility. Mr. McCartney advised that Eagle Mountain has a 100 year lease with Kaiser. Councilwoman Cherveny commented that approximatley $24-25 million would come back to the cities in Riverside County based on a formula which has not yet been determined. Public Services Director Tecca advised that this project is generally supported by all agencies in the County, although some negative impacts have been noted with regard to the area and a concern was raised by Temecula with regard to distribution of revenues. Mayor Washburn questioned the proposal involving water and hydraulics. Mr. McCartney advised that a permit was filed for approximately two years ago, which would utilize water to generate electricity at this site. He further advised that no source of water had yet been identified and no type of liner system has been determined and to date work is not really proceeding. Mayor Washburn inquired who is currently in control of the lease. Mr. McCartney advised that Kaiser has no other leases at this time and would need to break this lease to proceed in a difference direction. Mayor Washburn questioned the environmental concerns. Mr. McCartney advised that the impact of an earthquake had been investigated and the nearest fault is approximately 30 miles away and would take an quake 50% larger than the recent Landers Quake to impact this operation. Mayor Washburn inquired what materials will not be accepted. Mr. McCartney advised that sewage s'udge, toxic waste, medical waste, household hazardous waste would not be accepted. He detailed the inspection process for materials received. He also advised that they must requalify for this operation every five years. Councilwoman Cherveny commented on the material identification process and explained that the containers are identified and the specific origin of the PAGE FOUR - CITY COUNCIL MINUTES - AUGUST 27, 1992 waste is catalogued on videotape. Mayor Washburn inquired whether a methane system is proposed. Mr. McCartney advised that pumps will pull out the gases into tanks and if possible used elsewhere. City Manager Molendyk questioned the foTlow-up action requested of the Council. Mr. McCartney advised that they would like a letter of support or a resolution supporting the project. He detailed the upcoming hearing schedule. City Manager Molendyk suggested support at either the City Council Meeting on September 8, 1992, or in connection with the Study Session scheduled for September 3rd. Mayor Washburn questioned the County Planning Commission vote on this project. Mr. McCartney advised that it was 4 to 1 against the project, however the staff recommended approval. Public Services Director Tecca questioned the certification of environmental documents. Mr. McCartney advised that their current request is for certification of the E.I.R. Mayor Washburn suggested consideration of this matter on September 8th, with a response on the morning of September 9th. 3. Update on Communitv Facitities District 88-3 (F:22.3) Jim Bolton, representing The Keith Company, introduced John Mandrell of the Keith Company, Peter Savello of Paul Moote & Associates and developers representing Citation, Premier, 888, Centex and La Laguna Estates. He presented an aeriel phatograph of the Community facilities District area taken earlier this year. He detailed the improvements completed and underway, as well as the specific locations of each. He also detailed the funds expended thus far with approximately $13 million for the improvements and $8 million for incidental expenses such as right-of-way acquisitions, consultants, adminstration fees, etc. Councilwoman Cherveny inquired when the fire station would go on line. City Manager Molendyk advised that they would be ready to begin construction at the end of the year, but based on money availability to staff the building at $1 million per year it could be delayed. He further explained that the station is planned for three man staffing with supplemental staffing by volunteers. He indicated that the station is needed today, but it is a matter of staffing. Peter Savello, Paul Moote & Associates, Construction Managers for the District, stressed the regional impact of the improvements provided. He offered a tour of the facilities to any interested City Council members. City Manager Molendyk commented on the water tanks and the E.V.M.W.D. standards for them. He indicated that it has been requested that those tanks be sunken in the ground or landscaped for screening. MAYOR WASHBURN LEfT THE MEETING AT 4:45 P.M. Councilwoman Cherveny questioned the Robb/Lakeshore/Grand Traffic Signal and when it would be operational. Public Services Director Tecca explained that it will be energized when the project is complete, however G.T.E. is working in the area currently. He indicated that the project should be complete with the signal energized in approximately one month. Mr. Savello stressed the areas where unknown factors influenced the course of the projects. He also stressed the change orders which were awarded based on the low cost offered by the contractors to increase the scope of wark. PAGE FIVE - CITY COUNCIL MdNUTES - AUGUST 27, 1992 Councilwoman Cherveny questioned the total dollar cost of the Change Orders to date. Mr. 5avello indicated that there have been 51 change orders to date with three more anticipated for the September 22nd City Council Meeting. He further indicated that this district has included 20 individual projects with 14 contractors. He commended Ron Molendyk's Office, Bob Boone's Office, Frank Tecca's Office, E.V.M.W.D., Elsinore Water District, County Flood Control and the Utility Companies for assisting in facilitating these projects. Councilwoman Cherveny suggested that Mr. Savello recognize these parties publicly at a Council Meeting. City Manager Molendyk commented on the prior year's rain and the problems these projects will have eliminated. Councilwoman Cherveny further commented on the impact of the improvements in this area. Mr. Savello indicated that Le Gaye Street was moved up the schedule and should be completed by December 1, 1992. Councilman Winkler inquired when McVicker Park Construction would begin. Jack Lucey, representing Centex Homes, indicated that the mining operation will cease in March or April of 1993 and from there it will be approximately one year for completion. Mr. Bolton indicated that the planning of this project is already underway and will be ready to start when the mining operation is finished. Councilman Alongi questioned the work with Elsinore Water District. Mr. Savello indicated that this work in Country Club Heights is to replace a line which is too small. Councilman Alongi questioned the sewer reservoir mentioned by Mr. Bolton. Mr. Bolton indicated t~at it would hold one hour of sewage in the case of pump station failure. Mr. Savello further indicated that this reservoir has been used once in the approximately 60 days of operation. Mr. Mandrell advised that the reservoir is intended to hold one hour at full capacity. Mr. Bolton further advised that capacity is 12,000 dwelling units and the station is currently serving 5,000 dwelling units. City Manager Molendyk commented that when the fire station is considered it is important to remember that it will take nine months to order the fire trucks. THE STUDY SESSION WAS ADJOURNED AT 5:07 P.M. TTEST: ~~ ICKT KASAD, ITY CLERK CITY OF LAKE E~SINORE t ~ ~ ~f GARY WASHBURN, MAYOR CITY LAKE ELSINORE