HomeMy WebLinkAbout12-01-1992 City Council/RDA Work SessionMINIITES
CITY COUNCIL/REDEVELOPMENT AGENCY
WORR SESSION
CITY OF LARE ELSINORE
130 S. MAIN STREET
LARE ELSINORE~ CALIFORNIA
TOESDAY, DECEMBER 1, 1992
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CALL TO ORDER
The Work Session was called to order by Mayor Pro Tem Dominguez at
3:01 p.m.
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Councilman Winkler.
ROLL CALL
PRESENT: COUNCILMEMBERS: ALONGI, CHERVENY, DOMINGUEZ, WINKLER
ABSENT: COUNCILMEMBERS: WASHBURN
Also present were: City Manager Molendyk, Assistant City Manager
Rogers, City Attorney Harper, Administrative Services Director
Boone, Community Development Manager Shear, City Planner Christen,
Public Services Director Tecca, Special Projects Coordinator Bill
Basham, Special Projects Coordinator Wood, City Treasurer Pape and
City Clerk Kasad.
BUBSNESS ITEM
1.: Public Safety
a. Reportinci District H
Lt. Garthwaite advised that for the past six weekends the
extra patrol officers have been utilized in District H.
He indicated that very soon they would have fresh data
from this effort and be able to analyze the results. He
commented that there has been a lot of activity in this
area, as well as a lot of police presence. He further
commented that there has been a slight drop in the
statistics for this area between September and October.
He clarified that extra patrols can cause an increase in
these statistics due to the increased presence. He
indicated that he has received a number of positive
comments from business people in that area. He also
indicated that the officers feel the response time has
been greatly reduced, because they are already in the
area.
Mayor Pro Tem Dominguez inquired whether the Special
Enforcement Team is being used in this District. Lt.
Garthwaite indicated that they were not being used in
District H yet, as they are currently working search
warrants and drugs with great success. He further
indicated that they are currently pulling this team back
in for specialized problems of the holiday season.
Councilwoman ~Cherveny inquired whether this was the
"target team". City Manaqer Molendyk clarified that this
PAGE TWO - CITY COUNCIL WORR BESSION - DECEMBER 1~ 1992
team is the most recent two new officers added by the
Council. He also clarified that the target team is
working drugs and gang activity. Mayor Pro Tem
Dominguez requested clarification of the target team~s
activities. Lt. Garthwaite indicated that they are
currently working narcotics and related crimes.
b. Nashland Avenue
City Manaqer Molendyk commented on public contact
regarding Nashland Street and the possibility of
improvements in the area. He further commented that
staff has investigated programs used in other cities and
alternatives such as funding through the Redevelopment
Agency.
Councilman Winkler indicated that he feels Nashland
should be torn down and replaced by a greenbelt over a
period of time. He commented on the difficulty caused by
duplexes, lesser quality apartments and traffic in the
area. He also commented that there are apartments on Joy
Street that he would like to see rehabilitated into
condominiums. He further commented that he would like to
see the low income housi~g retained in that area. He
also suggested that it might be appropriate to put a qate
at Quail and a gate at Lincoln Street.
Councilman Alongi indicated that he feels Joy Street
would be a prime area to convert to low income housing on
an ownership basis. He suggested that it will be
necessary to maintain strict standards for property
maintenance to prevent the problems from reoccurring. He
detailed a project of this type underway in the State of
Michigan and commented on its success. He also suggested
that this project be maintained as a priority.
Councilwoman Cherveny commented that there are major
problems in this area and there is no place for children
to play. She further commented that she would not mind
tearing down a couple of units to build a park for the
kids in the area. She indicated that she was not sure
condominium conversions would work, but suggested it was
possible. She further indicated that she feels this
would be a proactive approach to the problems and would
agree that it should be a priority for the next budget
year.
City Attorney Harper commented that depending on the
Redevelopment Project Area this project is located, there
could be acquisition problems. Councilwoman Cherveny
indicated that one property owner has contacted the City
because he has an empty unit and would prefer not to
solicit another renter if the City is interested in
acquiring it.
Councilman Alongi commented on the area further and
stressed that most people would not want to live there.
Mayor Pro Tem Dominguez inquired whether there was a
Neighborhood Watch program in the area. Staff confirmed.
Councilman Winkler indicated that the property owner who
PAGE THREE - CITY COUNCIL WORR SESSION - DECEMBER l~ 1992
approached the City has indicated that it is a very bad
situation, because the residents are literally afraid to
get involved.
Councilwoman Cherveny indicated that the Neighborhood
Watch program in the adjacent Bird Tract was very strong
about a year ago, but it fluctuates.
Public Services Director Tecca indicated that eleven
property owners have been contacted about increasing
their trash service schedule to help clean up the area
and two have already agreed to the increase.
Councilman Winkler commented that the Nashland
development really does not fit the area and there is
really not an easy solution. He stressed that this is an
area where the City can help save the neighborhood.
Mayor Pro Tem Dominguez questioned the progress in
contacting the property owners. Councilman Winkler
indicated that staff is working to contact them and he
feel many would like to sell.
Councilman Alongi commented that he really doesn't like
to tear things down, but space is needed between these
units. He stressed that the property is deteriorating
rapidly and will continue to do so.
Mayor Pro Tem Dominquez requested clarification of "low-
income" housing. Councilman Alongi clarified that low
income housing means it is sold to people for 25 % of
their income. Mayor Pro Tem Dominguez questioned low-
income housing and its contribution to the problems in
this'area. Councilman Alongi indicated that in this case
the problems are from property owners~ neglect. He
stressed the need to attract good people to the
community.
Mayor Pro Tem Dominguez questioned the project being
proposed. City Manager Molendyk indicated that a
solution or recommendation is being sought for the final
project.
Mayor Pro Tem Dominguez requested further clarification
of low-income housing. Councilman Alongi clarified
further indicating it is based on the value of the land
the project is on. He further indicated that this is the
perfect area because the investments there were lower
than today's costs. City Attorney Harper further
clarified low and moderate income housing and affordable
housing for low/moderate income families and the
mechanisms to deal with them.
Councilman Alongi gave the example of the property at
Franklin and Ellis Streets and explained that the
Redevelopment Agency bought down the expense of the
project.
City Manager Molendyk suggested that reestablishment of
the budget priorities is the other topic for this meetinq
and based on that discussion other alternatives may be
available.
PAGE FOUR - CITY COUNCIL WORR SESSZON - DECEMBER l~ 1992
City Manager Molendyk indicated that staff would be
meeting with Mr. McElroy for Economic/Community
Development to review alternatives and the next meeting
on this topic there would be more hard facts.
City/RDA Budqet Review
City Manager Molendyk explained that the main reason for this
review is to consider some budget projections. He detailed
the currently budget items and the additional projects which
have been requested. He explained the increased draw on the
escrow account available in February, 1993. He also detailed
the new projects and the potential working capital available
for the next three years. He clarified that the intent of
this meeting was to reaffirm the City Council priorities for
this budget year. He also clarified that even the site
specific factors must be accounted for in the budget
documents.
Councilwoman Cherveny inquired when the Camelot Properties
Project would start needing money. Special Projects
Coordinator Wood indicated that they could possibly start in
May or June with a need of approximately $200,000, however,
the final agreement has not been worked out yet. Councilman
Winkler commented that he understood the commitment was for
the grant in fiscal year 1994/95. City Attorney Harper
indicated that Mr. O'Byrne is currently working out the time
schedule and it could be back for final review at the December
22nd meeting.
City Manager Molendyk commented on the future need for
capitalization on the Lake as soon as it is transferred.
Councilman Winkler further questioned the commitment to
Camelot Properties. City Manager Molendyk indicated that
actual dollars are being determined. Councilman Alongi
indicated that he remembered approving $200,000 for the off-
sites on Malaga Road with the City to pick up the difference.
He further indicated that there was some uncertainty as to the
need for alignment of Malaga Road. He stressed that there is
still no firm information on what is needed.
Administrative Services Director Boone detailed the
anticipated increases in tax increment and projections for the
next five years. He further detailed the debt service
amounts, interested owed and existinq obligations for the
same period.
Councilwoman Cherveny questioned the time frame for payment of
the grant to Camelot. City Attorney Harper clarified that the
present concern is with paying the debt service, however, the
grant is probably construction money. Councilwoman Cherveny
inquired whether this would mean that construction would not
beqin until 1995. Administrative Services Director Boone
indicated that this is only a reimbursement situation.
Councilwoman Cherveny expressed concern with what year this
payment would be necessary. City Attorney Harper further
indicated that this agreement had not been reached and
suggested possible alternatives. Councilwoman Cherveny
commented on the importance of the budgeting process and her
concern that the figures discussed are real dollars.
PAGE FIVE - CITY COUNCIL MINIITES - DECEMBER 1~ 1992
City Manager Molendyk commented on the upcoming budget year
and explained that the purpose of this meeting is to determine
the priorities of the Council to allow for adjustments and
investigation of other opportunities for funding of projects.
Councilman Winkler questioned the $8.5 million for the
Baseball Stadium, and whether it would include the $750,000
for design work. Dan Young indicated that the $8.5 million
financing could address that obligation.
City Treasurer Pape questioned the $1.6 million reserve for
the next five years. City Manager Molendyk clarified that
this was just the Redevelopment Agency funds based on the
timing for the next bond issuance. Mr. Molendyk further
clarified the projections for the State budget over the next
few years.
Councilwoman Cherveny inquired whether the City would be
giving up another $1 million next year to the State and
suggested that this could only leave $600,000 in reserves.
Councilman Winkler questioned the projects which are already
funded or conditioned to be funded, and whether the State
would consider those when they take funds away. City Attorney
Harper indicated that it would most likely have no impact on
their reductions. Special Projects Coordinator Wood indicated
that it would just become a debt if not paid and they could
deduct it from property taxes before they pay out to the City.
City Manager Molendyk indicated that the r,umors at this point
are that the City could loose 15% of property taxes next year
and all of it in 3 to 5 years.
Councilwoman Cherveny commented on the need to review the
budget in light of the $750,000 commitment requested to
proceed with the Baseball Stadium.
Councilman Alongi commented on Amber Ridge and the need to
determine what can be worked out with the Water District. He
further commented that he is not sure the $325,000 will
address Amber Ridge.
Councilwoman Cherveny questioned which funds have not been
spent.
City Manager Molendyk inquired over what period the $750,000
would be spent for the Stadium. Mr. Young indicated that work
would be completed by August, 1993.
Councilman Winkler suggested that cutting $350,000 from the
housing program, $200,000 from the Methodist Church Project
and $200,000 from the Hotel Project, would address this item,
while leaving funds to deal with Amber Ridge.
Councilman Alongi stressed the need for a working program with
the Water District to address Amber Ridge.
Councilman Winkler commented on the need for a workshop with
the Water District. Councilman Alongi indicated that he had
discussed a workshop for December 15th with the District to
discuss Amber Ridge.
PAGE SIX - CITY COUNCIL MINUTES - DECEMBER 1~ 1992
Councilman Alongi disagreed with Mr. Winkler~s suggestion on
the Methodist Church and the Hotel. He further indicated
that he still has problems with the Camelot item, and would
shift those funds to the Stadium. He also indicated that a
movie theater should be the last priority for the Community.
He commented that this type of business provides more low
income jobs.
Councilman Winkler commented that cutting Camelot does not
find $750,000 for this year.
Mayor Pro Tem Dominguez commented on the Methodist Church
project and indicated that the successful projects have all
been non-political. He suggested that the Church project
could be done as a community project and indicated that he has
people who are willing to donate services and materials to see
it completed. He indicated that he would like to see the
funds remain in the budget. Mr. Dominguez requested that Will
Mr. Buck comment on this item. Buck reminded Council of the
the sales Commission donated back to City for this building
and indicated that he has volunteered hi services for design
of this project, as many in the community are looking forward
to using it. He suggested that the project might be able to
be done for about $50,000, but he would like to see the funds
anyway. allocatE
Councilman Alongi indicated that he would not mind this
project proceeding, but he doesn't feel it should be dependant
on volunteer services. He agreed that the $200,000 should
remain allocated.
Councilwoman Cherveny commented that presuming the $750,000
could be:'-found in the budget, there is still the need to come
up with the $8.5 million to complete the Stadium by 1994. She
stressed that this project is still $7 million short.
City Attorney Harper concurred, but noted tact the annual
commitment would be for the debt service. Councilwoman
Cherveny inquired whether it is known that the project can be
financed. City Attorney Harper indicated that the real number
is not $7.5 million, but only the debt service on that amount.
City Treasurer Pape questioned the debt service amount. City
Attorney Harper indicated that it would be approximately
$800~000.
City Manager Molendyk commented on the draw/"halo" effect of
a Stadium, and explained that there are other avenues to
pursue for funding. Mr. Young indicated that the critical
concern is the debt service for the next few years until the
Eastlake Project is well underway.
City Treasurer Pape inquired how the facility in Rancho
Cucamonga had been funded. Mr. Young indicated that it was
built by park fees and tax increment.
City Manager Molendyk indicated that he needs Council to
decide if it is time to move forward with the design of this
project. He stressed that it is impossible to do everything
and the Council needs to set the priorities.
Special Projects Coordinator Wood indicated that if bonds are
PAGE SEVEN - CITY COUNCIL MINUTES - DECEMBER l~ 1992
the route chosen for the Stadium they will need to be
subordinated to the existing bonds, similar to a second
mortgage on a home. He explained the need to find an
alternate source for debt services if this is the case.
Councilwoman Cherveny commented on the possibility of putting
a vote to the people for consideration of Municipal Bonds.
Discussion of subordinated bonds ensued with Special Projects
Coordinator Wood clarifying the limitations.
Councilman Alongi questioned Council's priorities.
Councilwoman Cherveny indicated that if the Lake is to be
transferred in the next two years, then that is more important
than the Stadium. She stressed that the Lake is the most
important to the Community at present. Council discussed the
Lake related projects, as well as the timing and the costs
involved.
City Manager Molendyk reminded Council that staff will attempt
to make all of the projects work, but they need priorities to
work with.
Councilman Alongi expressed concern with the need to make a
decision on the Stadium so quickly. Councilman Winkler
clarified that this is an opportunity because of the new 1994
requirements, which might not be available to the City at a
later date. Councilwoman Cherveny concurred that this is a
right now situation. City Manager Molendyk clarified that
this step will nearly guarantee a team and it is really a
matter of,timing.
Mayor Pro Tem Dominguez inquired how long a team would stay in
one facilYty. City Manager Molendyk advised that this quality
of Stadium is different than what they have been offered in
the past and it is not known how long a team would commit for.
City Attorney Harper advised that he would anticipate 10 to 12
years. City Manager Molendyk further explained that this is
a more professional Stadium and it would be a business
arrangement.
Councilwoman Cherveny commented on the current movement of
teams and the new League requirements for Stadiums.
Councilman Winkler stressed the need to start on this project
right away to meet the April, 1994 requirement.
THE WORKSHOP WAS ADJOURNED AT 5:00 P.M.
~'2~/ ~'w~~ ~~~~
FRED DOMI UEZ; MAYOF2 PR0 TEM
CITY OF LAKE ELSINORE
AT EST:
CKI 'f , CI Y CLERK
CITY OF LAKE ELSINORE