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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 ***~~~~s***~******~************r**,r*,r*+r~*r****t*,r**,r+r+r******~**** 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