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HomeMy WebLinkAbout05-25-2000 City Council Study SessionMINUTES CITY COUNCIL STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CA 92530 THURSDAY, MAY 25, 2000 *~~~*~:~*+~*~~~~***~~~~~****~~~~*****~*~~****~*~~~~*****~~~~*~~**+ CALL TO ORDER The City Council Study Session was called to order by Mayor Brinley at 10:12 a.m. ROLL CALL PRESENT: COUNCILMEMBERS: BRINLEY, KELLEY, SCHIFFNER ABSENT: COUNCILMEMBERS: METZE, PAPE (Councilmembers Metze & Pape arrived at 10:25 p.m. Also present were: City Manager Watenpaugh, Assistant City Manager Best, Administrative Services Director Boone, Community Development Director Brady, Community Services Director Sapp, Fire Chief Seabert, Police Chief Walsh, Building & Safety Manager Russell, City Engineer O'Donnell, Information/Communications Manager Dennis, Planning Manager Villa, Public Works Manager Payne, Recreation & Tourism Manager Edelbrock, City Treasurer Ferro, and City C1erWHuman Resources Director Kasad. DISCUSSION ITEM Proposed 2000/O1 Budeet. (F:30.1) Mayor Brinley welcomed the public to this discussion. Tim Fleming, 17970 Lakeshore Drive expressed concern with paeing on Wilson Way, Adams Street and the surrounding neighborhood. He indicated that the streets have been dirt and dust for years and he has personally cleaned it up. He presented a list of signatures from concerned residents and photographs of the area. He noted that the Street Sweeper actually creates more dust than it cleans up; and this is aggra~ated by the traffic kicking up additional dust. He commented that he has discussed this problem with Public Works staff for years, and requested consideration of improvements in this year's budget. Becky Nelson, 17960 Lakeshore concurred with Mr. Fleming's comments and noted that she lives at the intersection of Lakeshore Drive and Wilson Way. She advised that a rut is created every time it rains, which is over a foot deep and the mud runs out into Lakeshore Drive. She noted the annual need for the City to place flooded signs on Lakeshore Drive in this area. She also commented that she can not access her driveway from Wilson Way during the PAGE TWO - STUDY SESSION MINUTES - MAY 25, 2000 rains; and during the summer a lot of dust is kicked up and filters into her house, which is a health problem. She also noted that this situation causes public safety personnel difficulty in accessing the area. Mike Smith, 30275 Palm Drive, indicated that he has lived in the area, on and off for a number of years. He echoed the comments of the previous speakers and noted that Palm Drive has had potholes for several years. He indicated that Palm Drive has problems with gravel road, overhanging trees and a pile of palm fronds which have not been removed. He further indicated that he has personally reported the palm fronds tlu~ee times, because they create a fire hazard. He noted that their area is beautiful, but expressed further concern with the palm fronds left in the area. City Manager Watenpaugh noted that this was a study session and not a day for Council action. He stressed that the budget as proposed was subject Council adjustment. He indicated that the budget as proposed was a deficit budget, but noted that the Council has complied with its financial strategy for the past two or three years. He noted that there is still one Community Facilities District to be restructured at this point and that the RDA was still projected to be in the black, in spite of the increased debt service requirement. He stressed that the revenue projections as presented, are in fact projections because the actual numbers will not be received until August; and explained that was the"'reason for the mid-year review, to address any changes. He noted the recent mid-fiscal year budget review and the modifications made at that time. City Manager Watenpaugh addressed page 2 of the budget packet and noted the number of projects and services provided or completed this fiscal year and the dollars returned to the Community. He detailed the projects and their statuses. COUNCILMEMBERS METZE AND PAPE ARRIVED AT 10:25 A.M. Mayor Pro Tem Pape questioned the start date for the Swick/Matich Field improvements. Mr. Watenpaugh indicated that staff would have to check on that date. Councilwoman Kelley questioned the timing and status of the Outflow Channel Improvements. Mr. Watenpaugh clarified. Councilman Schiffner inquired whether the $60,000 cost figure included relocation of palm trees. Mr. Watenpaugh clarified the outflow channel trees vs. the Police Department trees. Councilman Metze inquired why the Police department trees were on hold. Mr. Watenpaugh indicated that they were on hold pending the court sign-off of the Temporary Restraining Order. Councilwoman Kelley questioned the LSA Study. Mr. Watenpaugh clarified that it was a City-wide uniform traffic mitigation fee; and noted that Lake Elsinore is the only city is southwest Riverside County, with no such fee. He noted that it would address the potential of dollars as one-time fees for ~ 3-`~-:i 0 "" . PAGE TFIREE - STUDY SESSION MINUTES - MAY 25, 2000 street maintenance, lights, curbs, gutters and sidewalks. He commented that both Murrieta and Temecula have such a fee. Councilman Metze questioned the planned Railroad Canyon Pa~ement Improvements. Mr. Watenpaugh detailed the improvements which in some areas include planning and engineering to address complete road replacement and some are merely patching, repair and overlay. Councilman Pape questioned the target date for this project. Mr. Watenpaugh indicated that it was not known at this time. Councilman Schiffner inquired whether the LSA study would include a street inventory. Mr. Watenpaugh confirmed that it would include an inventory of streets, signs, widths, etc. to determine appropriate costs for establishment of a fee. He clarified that most communities only implement a portion of that actual cost. Councilwoman Kelley questioned the need for a full inventory of the streets. City Manager Watenpaugh explained that the inventory discussed by Mrs. Kelley was a separate effort , which he would address later in this session, and cost about $100,000. He noted that some of the information from the LSA study might assist in offsetting the cost of the other study required by the GASBY act legislation. Councilwoman Kelley questioned the penalty for non-compliance with the legislation. Mr. Watenpaugh noted that it could potentially impact other funding sources. Councilman Schiffner suggested that it might help in prioritizing the need for repair and timing of said reports. He indicated that all of the projects on this list were from dedicated funds. He indicated that an additional $92,000 was allocated from the General Fudn to address specific needs for the boat, fish stocking, boat ramp repairs, renovation of ball fields, watering and overseeding of parks and Economic Development materials. City Manager Watenpaugh detailed the end of the year reserve estimate and noted that dollars have been set aside for the increased bond debt service, but not the pending litigation. He highlighted the revenue projections and pointed out that with no new revenue sources the City will continue to go in the deficit, as the revenue is not increasing at the same rate as the : expenditures required to maintain current service levels. He indicated that it will take about $1.6 million to meet the debt service requirements. He noted that staff was discussing the potential for increased fees to address services that are now provided from the General Fund; and stressed that there are separate assessments for a variety of services in other cities. He stressed the need to go to the public to address the services which are being provided with no revenues to support them. He noted that the City is constantly compared to other cities with regard to facilities and stressed that most of the other cities' facilities are not provided by the general fund, but rather a special assessment. He indicated that the Council has gone a long way in working with the community and gaining their trust and it is now important to address some of the quality of life issues. Councilman Metze questioned how substandard the City's parks were. Mr. Watenpaugh commented that the PAGE FOUR - STUDY SESSION MINUTES - MAY 25, 2000 parks are back in condition, but have been made that way at the expense of the general fund, while other cities provide the same thing via a separate fund. Councilman Metze further questioned the comments received on this issue and noted that the City was pursuing a skatepark. Councilwoman Kelley indicated that the concern at this point was with mortgaging future parks at this point. Mr. Watenpaugh reminded the Council that another new park was approved on Tuesday night and the explained the costs that would be required to maintain it. Councilman Metze expressed understanding, but noted that the City has already tried on several occasions to set up a funding source. He questioned the need to send out questionnaires to find out what the public wants. Mr. Watenpaugh concurred. Councilman Metze also suggested holding a Town Hall Meeting. Mayor Brinley confirmed that that a Town Hall Meeting was being planned, but stressed the need to address the City's future needs and how to maintain necessary services. Councilman Metze noted the impact of past State take-aways. Mayor Brinley commented that some of those dollars will be returned to the cities, but the amount has not yet been determined. There was general Council discussion of the State take- aways and potential for reimbursement. Councilman Schiffner stressed that the City is at the mercy of people outside the Community, but indicated that he believed that if the City had tried to pass an assessment for the parks by themselves it would have passed. Mayor Pro Tem Pape detailed the past requests for assessments, noting that at that time the City was in dire straits and suggested that the City would be hard pressed to get a 2/3rds vote at this point. He suggested that when people see things going o.k. in the community, they are not interested in giving more money away. Mr. Schiffner suggested that without such a request the City would be required to generate more sales taa~ if there is a particular need in the community. Councilwoman Kelley inquired what staff would be suggesting. Mr. Watenpaugh concurred that unsuccessful attempts had been made in the past to gain approval of ballot propositions, but noted the Council's iricreased effort to work with the public and increase the public trust. There was general discussion of past ballot measures. Mr. Watenpaugh clarified that staff would be suggesting a mail out ballot and stressed that only 51 % approval would be required in that process. Mayor Brinley stressed the need for Council to keep its options open and noted the pending specific plans which were currently on hold that would ultimately increase the number of parks to maintain. Community Development Directar Brady concurred that there were a number of specific plans with parks in various planning phases, and any of those parks would have to be maintained by the City after they are constructed. Mayor Brinley noted the importance of informing the public with regard to the additional parks that will be provided and the increased costs to maintain them. She noted that this was an issue that should be discussed at the next town hall meeting, so Council can find out what the public would like to see. Councilman Schiffner noted that one developer had already been relieved of the park requirement, due to the cost of maintaining it. 1Vlayor Pro Tem Pape inquired if a Gommunity Facilities District would be .G,tit .ri . f y~v t .. .. . PAGE FIVE - STUDY SESSION 1VIINUTES - MAY 25, 2000 formed for the Pardee project. City Manager Watenpaugh advised that would be the intent. Mayor Brinley suggested that Mr. Watenpaugh explain the type of CFD being proposed. Mr. Watenpaugh explained that in the larger development areas, staff is pursuing a payment for services such as police and fire, as long as a nexus can be shown for the fees. He further explained that this annual fee would be voted on by the property owner to address the required service levels. Mayor Pro Tem Pape inquired when the vote would need to occur for such a district. Mr. Watenpaugh advised that this type of district could be voted on and implemented before the houses are built. Mr. Pape indicated that he would much prefer to increase revenue that way vs. a city-wide t~. Mayor Brinley noted that there might be problems getting the developers to buy in to the program. Councilman Metze questioned if there was a resistance to taxes or a concern for placing a second Mello-Roos or CFD on the properties. Mayor Brinley concurred that the second assessment might be the issue. Councilman Metze noted the limited disclosures which are actually occurring with the sales of homes. Mayor Brinley concurred and stressed that people don't understand the terminology of CFD's, eta She noted that police, fire and streets are the major issues and while no one wants to see a tax, if the development community will buy in with the older specific plans it would be helpful. She stressed that the conditions on those specific plans have already been set, so at this time it would not be possible unless amendments are requested. Council Pape requested clarification that if Pardee needs to change their specific plan the negotiations would be open again. Mr. Watenpaugh confirmed. Mr. Pape questioned the status of North Peak and Ramsgate discussions. Mr. Watenpaugh indicated that they are sitting still at this time, but have been informed of the necessary Community Facilities Districts. He further noted that part of the developers' consideration is that they don't want to exceed 2% in taxes and assessments. Councilman Metze stressed that the disclosures being provided are horrible and he understands why residents are so confused. Councilwoman Kelley noted that staff was looking at a traffic mitigation fee, and a park assessment; and stressed the need to take the responsibility of planning for the future. She suggested that this matter be taken to the town hall meeting for feedback before further consideration. She further suggested that this might be a matter that would be appropriate for referral to a Mayor's committee. Mayor Brinley concurred and suggested working on a presentation to eaplain the needs to developers. She requested that staff add discussion of park issues, park assessment and a Mayor's committee for review to the Town Hall Meeting. She reiterated the need to plan for the future and stressed the need for increased funding. City Manager Watenpaugh suggested providing comparison with other communities in a discussion of this proposal. Councilman Schiffner stressed that it was important to say that the City could not afford to have homes developed if we are not able to afford to provide services; and stressed that the developers need to come up with altematives for funding services to their developments. Mayor Brinley noted that discussions with developers do not include discussion of funding sources. Mr. Watenpaugh indicated that he would be happy to bring back some of those options for Council to consider. PAGE SIX - STUDY SESSION MINUTES - MAY 25, 2000 City Manager Watenpaugh indicated that it was his intent to have each department give a brief summary of their department responsibilities and budget; however due to the limited audience he left Council with that as an option. Council requested a report on the department responsibilities. Mr. Watenpaugh noted the format and responsibilities of the City Council, including establishment of policy, provision of guidance and direction to staff and sitting as the Redevelopment Agency Board. He further noted that the Council hires the City Manager and City Attorney; and appoints the City Clerk. Community Development Director Brady provided an overview of his department and its divisions. He noted that the department consists of 17 staff inembers and indicated that one function of the department was to provide staff support to the Planning Commission on matters of development. He introduced Planning Manager Armando Villa who highlighted the functions of the planning division including implementation of the general plan, implementation of the City historic district, and processing of development applications. He indicated that in the next year they anticipate implementation of the Cottonwood Hills Specific plan, Ramsgate subdivision tract maps and Tuscany Hills tract maps. He noted that they provide information to the public and support to the Planning Commission. Councilman Metze noted that most items have been heard by the Planning Commission before coming to the Council for consideration; so most of the development issues have been thoroughly considered. Mayor Brinley concurred and noted that the Planning Commission is the nuts and bolts of the community and do the detail work for the City Council. Mr. Brady introduced Engineering Manager Ray O'Donnell who provided an overview of the Engineering Division. Mr. O'Donnell noted that his division consists of 3 full time and two contract staff inembers who administer the major capital improvements in the City, such as the Main Street project currently underway. He advised that they also work on obtaining federal funding for City projects such as Railroad Canyon Road, etc. He further advised that they check grading and storm drain plans, help developers with maps for presentation, inspect grading, issue encroachment permits and provide support to the Planning Commission. Mr. Brady noted that his department operates on a cost-recovery system to cover the costs of their staff. He noted that the Parking Coardinator/Waste Management function had been transferred from Engineering to Community Services. He also noted that the GIS program budget had been moved to Information Systems this year. Mr. Brady introduced Building and Safety Manager Russell who detailed the fixnctions of his division including Code Enforcement, Weed Abatement, Building permits and inspections, plan checks for all projects, disabled access requirements and public counter information. He detailed their wark on enforcement of the Housing Code for the Abatement of Dangerous Buildings, noting that there are currently about 21 buildings in the abatement process ,:ii ~1 ~::~. irc:~~,... PAGE SEVEN - STUDY SESSION MINUTES -MAY 25, 2000 and four were completed in the last year. He provided building permit and inspection statistics and highlighted those efforts. Councilman Metze inquired if the e~ra funding provided in recent years was adequate to facilitate the program. Mr. Russell indicated that it was helpful. Mayor Pape inquired how much was budgeted for structure abatement. Mr. Russell indicated $55,000, which would be coming from the CDBG funding. Mr. Metze inquired if the liens on property for abatement were coming back to the City. Mr. Russell confirmed that they are coming back when the properties change hands. Councilwoman Kelley addressed the 21 buildings in the abatement process and inquired if the Riverside Drive four-plex was in that group. Mr. Russell indicated that property was under rehabilitation permits at this time; and noted that the property owner has purchased property to provide access other than from Riverside Drive; and are moving forward. Mayor Pro Tem Pape questioned the property near ARCO at four corners. Mr. Russell indicated that staff is ready to proceed on that property and notifications are underway. Mr. Pape inquired how many properties could be addressed with $55,000. Mr. Russell noted that a small house is about $5,000 and overall very few abatements could be completed. Mr. Metze noted that the Planning Commissioners also serve on the Nuisance Abatement Committee and stressed the amount of time required to address a problem property. Mr. Russell confirmed and noted the extensive notification periods and court timing for abatement warrants. Councilman Schiffner questioned the property on Lakeshore/Lake Street. Mr. Russell indicated that with regard to the TeePee ranch property, staff was in contact with the owners and they have abated one house, and been notified for the second one, for which the owners asked that the City go back to its contractors for a bid on the entire property. Councilman Metze inquired why the City would be getting a bid for the property owners. Mr. Russell indicated that it was merely a courtesy since the City already had bids on the other house; and it was felt that they could get a better price on the abatement and proceed more quickly. He indicated that they ha~e been cooperative for the last month or so. Tim Fleming questioned the Weed Abatement program and clean-up; and suggested a lot more could be done in that area, including improving the quality of the clean-up and the manner in which the discing is done. Mr. Russell clarified the City contract and noted that is only part of what is abated; as there are a number of private contractors doing work before the City contract starts. Mayor Brinley noted a problem property in her neighborhood. Mr. Russell clarified further. Councilman Schiffner questioned the percentage of the abatement done by private contactors. Mr. Russell clarified the process. Mayor Brinley questioned the notification process. Mr. Russell advised that the notices are sent out in early April of each year, based on Council action. Mike Smith questioned who would be cited in the instance of the palm fronds on Palm Drive. Mr. Watenpaugh indicated that they would be address through the weed abatement process, but if they were City trees, the contractor should be removing them from the property. He further indicated that staff would investigate that situation. PAGE EIGHT - STUDY SESSION MINiJTES - MAY 25, 2000 City Clerk Human Resources Director Kasad detailed the department responsibilities as carried out by two full time and one 1/2 time employee; including City Council support, City Council meeting agendas and minutes, public records and benefit coordination for City employees. Mayor Brinley inquired if the members of the audience had any specific questions for City staff. Hearing no requests, Council deferred the comments by the rest of the City departments. Councilwoman Kelley inquired if the Police Department had final figures on the reduction of the crime rate. Chief Walsh indicated that the 1999 FBI report was pending but by local figures, since 1994 the crime rate is down 64% overall. He noted that included decreases far each of the last five years. Councilman Metze indicated that he was impressed by the reports of zero tolerance on' alcohol and a number of other items. He further indicated that he enjoys the weekly reports to Council; and he was happy with the new facility. City Manager Watenpaugh acknowledged the elected City Treasurer and noted that he will be providing reports to Council in the future. City Manager Watenpaugh noted the organizational chart on page 10 of the budget packet. He noted that there had been a number of promotions of e~sting sta~f in the past year with a few reorganizations. Councilman Metze commended staff and expressed wishes that people knew how many of the employees live in the community. He noted Mr. Dennis's position and indicated that Ms. Best's position was never refilled and stressed that it was not a completely new position. He noted that changes in salaries would include the 2.4% cost of living adjustrment per the contract on July 1 St; the 2% sick leave accrual and 5% merit increases for changes in salary costs. He detailed the current City staffing and detailed the contract police and fire positions. Councilman Metze questioned reserve number presented a year ago vs. the current projections. City Manager Watenpaugh indicated that last year ended with about $4.6 million in reserves. Councilman Schiffner questioned the positions listed as vacant on the organizational chart. Mr. Watenpaugh clarified. City Manager Watenpaugh addressed page 11 of the budget packet and noted the projected year end for last year and the projections for the current year; and indicated that there would be about $55,900 added to the reserves at the end of this year. He noted the revenues vs. expenditures and stressed the need to cover the balance from the reserves. Councilman Metze furhter questioned the off-set and deficit and suggested the City would be better off next year at this time. Mr. Watenpaugh clarified that there would be a larger deficit ne~ year and indicated that he could not say exactly what the revenues would be. He stressed that the projections were based on past history and the expenditures are also based on past history. Councilman Metze further questioned the projected year-end balances. Mr. Watenpaugh noted that the ,., PAGE NINE - STUDY SESSION MINUTES - MAY 25, 2000 City had been deficit spending for years. Administrative Services Director Boone clarified the historical perspective, which used one-time revenues. Councilman Metze indicated that the increased sales taYes were not one-time money and noted that there is rarely a decrease in sales tax revenue. Mr. Boone indicated it had not decreased since 1992/93. Mr. Watenpaugh stressed that there is no guarantee what the amount of funds will be; and noted that staff was projecting and increase in sales taYes every year; however one-time monies are items such as refunds ar sales of property. Mr. Watenpaugh stressed that if the monies were drawn out of the reserves they would be called "one-time money". There was extensive Council discussion of the semantics of "one-time money". City Manager Watenpaugh further clarified the ongoing revenues as compared to expenditures and noted supplements of one-time money. He also noted a settlement payment paid out of the reserves last fiscal year and the Lake account subsidy. Councilwoman Kelley noted that the estimates are always very conservative. City Manager Watenpaugh confirmed, but noted that they were not as conservative as Mr. Boone would prefer. He stressed that if the economy goes down, revenues also go down and the budget would need to be cut. He also noted that money had been set aside for a pending lawsuit payment, however if the City is required to pay the whole amount now, the first quarter budget will be cut drastically to guarantee the reserves for the next year. He indicated that a payment plan will require that staff will be monitoring revenue and expenditures very closely. He commented that if the market goes bad, the City will still need to assure that it can meets its debts and obligations. He noted that if staff presented a balanced budget right now, it would need to include over $2 million in cuts in services; and the only place to cut would be from services the community wants. He stressed that they would involve quality of life issues and noted the importance of establishing a confidence level with the public. He noted that there are a number of projects about to break ground right now and it is not a good time to suggest cutting services. Councilman Schiffner noted last year's deficit, and commented on the increase in the reserve fund. City Manager Watenpaugh clarified the projections vs. the year end totals; and reiterated that some of the revenues are one-time money. He stressed the appropriate uses of non-reoccuring monies. Council further discussed revenues and expenditures, which contribute to deficit budgets. Councilwoman Kelley questioned the estimated revenue for next year and whether the Ford Dealership projections had been included. Administrative Services Director Boone confirmed. Councilman Schiffner noted that their sales trend is higher than anticipated. Mayor Brinley reiterated that the proposed budget was a conservative proposal at this point, with any extra being icing on the cake. City Manager Watenpaugh noted that the Council has done well to cope with the fluctuations to this point. Mayor Brinley commented that understanding budgets is very difficult because it deals with projections of revenues and what is needed at the time; and stressed the large scale of the City's budget, noting that everyone would ha~e questions on PAGE TEN - STUDY SESSION MINUTES - MAY 25, 2000 budgets of this size. Mayor Pro Tem Pape noted that the most important numbers were the reserves at the end of the year being 40% of the reveneus and ne~ year it will still be at 32% of the revenue. Mr. Watenpaugh confirmed, but noted that numbers which remain to be presented. THE CITY COUNCIL STUDY SESSION WAS RECESSED FOR LUNCH AT 12:12 P.M. THE CITY COUNCIL STUDY SESSION RECONVENED AT 1:35 P.M. WITH ALL MEMBERS PRESENT. City Manager Watenpaugh addressed page 11 of the budget for fiscal years 2000-01, 2001-02, etc. including lrnown financial obligations and noted that the fund balance does not start to turn around until fiscal year 2004-05, when it will again be possible to start putting money back into the reserves. He stressed that these numbers contemplate no addition of staff or services for five years. He commented that the City was still in a tougher situation than anticipated and he was projecting a deficit this year because it is critical to continue growth and provide services. Mr. Watenpaugh addressed page 13 listing revenues by major account and reviewed page 121isting expenditures by department. Councilwoman Kelley noted that the Council budget was increased by memberships and requested clarification. Mr. Watenpaugh clarified that the memberships include SCAG; WRCOG, IEEP, EDCSWRC, EDCLE, League of California Cities and the Riverside County Division of the League. He noted that these membership costs are for participation and part of the regional efforts for economic development and planning. Mayor Pro Tem Pape addressed page 13 regarding the sales tax increase and noted it was anticipated at about 8.3%, and questioned whether the Ford Dealership was included in that projection. Mr. Watenpaugh confirmed. Mr. Boone clarified that it had be projected, based on the Chevrolet Dealership. Mr. Pape noted members from the League of California Cities regarding the Govemor's budget and money which might be available to cities. Mr. Watenpaugh indicated that there had been no formal action on this issue to date, so there was no projection included. Mr. Pape further noted discussions of funds for streets in cities and counties, and AB 112. Mr. Watenpaugh indicated that nothing would be included in the budget until the Governar takes action. Mayor Brinley indicated that the Governor wants to give the cities something, but the amount has not yet been decided; she advised that it was currently in discussion in the Appropriations Committee. Mr. Pape suggested that these would make the shortfall much less than projected. Mr. Watenpaugh indicated that this was a point well taken and advised that he would bring the information when it is finalized. Mr. Pape inquired whether the bond refinancing impacts had been included. Mr. Watenpaugh indicated that they had not been included, but he was hoping to discuss that issue very soon. Councilman Schiffner noted that the budget is generally presented to represent the worst possible scenario. Mr. Watenpaugh confirmed and noted that while the expenses are somewhat controllable, the revenue is projected ,~r> ~ l °~ .,.. . PAGE ELEVEN - STUDY SESSION MINUTES - MAY 25, 2000 conservatively. Councilwoman Kelley questioned what property was far sale. Mr. Watenpaugh indicated the old fire station site and several small parcels of land at Flint and the Outflow Channel for which appraisals are underway. Mr. Pape suggested that with the potential bond savings and the State monies, the shortfall could be cut in half. Mr. Watenpaugh concurred that was a possibility. Mayor Brinley stressed that it was important to act cautiously. Mr. Pape suggested monitoring new information in the ne~ month or so. City Manager Watenpaugh noted that the budget also considers the June 15`~' interviews of potential concessionaires for the campground. He also noted that the Lake JPA would be having a presentation regarding the proposed projects on June ls` at 2:30. He also noted that the current budget includes the new fire station, which will be open for only about three months; and advised that it was being budgeted as a three person station. He indicated that in turning the campground over to a concessionaire, jobs would be rolled over into other areas to retain the employees. Mr. Pape addressed the campground and inquired whether the potential lease payment had been factored in to the budget. Mr. Watenpaugh indicated that the potential concessionaires are looking at putting in improvements and the potential exists of negotiating a base lease plus a percentage; however if they bring the facility up to a Class A facility, the City might farego lease payments for a set number of years to acconnt for the improvements. Councilman Schiffner suggested that this would reduce the current operation costs. Mr. Watenpaugh confirmed that there would be some savings. City Manager Watenpaugh addressed the Redevelopment Agency budget on page 49 and indicated that it was basically an in and out budget. He highlighted the 20% set-aside, which is set-aside and loaned back for indebtedness; and further detailed the Redevelopment Agency budget. Mayar Brinley questioned reductions in revenues. Mr. Watenpaugh indicated that some properties have been devalued in Project Area 3. Mayor Pro Tem Pape questioned page 19 and noted the increase of sales tax in just three years. He also questioned the City Attorney budget balances. Mr. Watenpaugh clarified that the billings are somewhat behind and these figures reflect December balance. Mayor Brinley questioned the lower assessments in area 3, noting that she heard that the Assessor's Office was processing reassessments. Mr. Watenpaugh noted that a large portion of Area 3 is in the back basin, downtown and country club heights; and expressed hopes that they would begin to increase in value this year. Mrs. Brinley indicated that she was pleased that the RDA budget was balanced. City Manager Watenpaugh reviewed page 50 regarding revenues for the Lake Operations account and noted the changes due to the anticipated shift to the concessionaire. PAGE TWELVE - STUDY SESSION MINUTES - MAY 25, 2000 MAYOR BRINLEY LEFT THE MEETING AT 2:05 P.M. TO ATTEND A MEETING OF THE RTA BOARD. Mr. Watenpaugh detailed the anticipated subsidy for next fiscal year and noted the past year's subsidy. Mr. Pape inquired if the campground staff was being placed in the Lake budget. Mr. Watenpaugh indicated that he was in the process of clarifying whether they would all go to the lake budget or if one will go into parks. He indicated that the intent was to not let any employees go. Mr. Pape indicated that he could see a need for help in the parks, but questioned the need for people on the Lake. Mr. Watenpaugh indicated that with the water bond proj ects, Mr. Kilroy will need support to assist with buoys and daily operations. Councilman Schiffner inquired whether a portion of Mr. Kilroy's time would be funded under the administration for the projects. Mayor Pro Tem Pape questioned page 51 regarding expenditures for staffing and the increases. Mr. Watenpaugh clarified the transfers of positions City Manager Watenpaugh detailed the Lighting and Landscape Maintenance District budget, noting that it is basically revenue in/revenue out at $1,175,000 to cover street lighting, landscape maintenance, tree trimming, traffic signal maintenance, eta Mr. Watenpaugh provided an overview of page 61 regarding the revenues for the Capital Improvement proj ects. He noted that staff had received verbal notification that the City will receive an advance of Measure A funds to address street improvements, with a portion being retained by the County as payback in future years. He also noted that staff has not redirected funds back to the Library fund at this time, but it sufficient funds would be rebated to cover operating funds and projects. He highlighted the synopsis of projects which have been completed to date. Councilwoman Kelley questioned the Library account and the ability to allocate those funds for the library. Mr. Watenpaugh clarified. Mrs. Kelley suggested an allocation in the same amount as last year, if not more. She noted that last year $10,000 was allocated for new books to update the collection. She suggested that she would like allocate $15,000 or $20,000 this year. Mr. Pape indicated that at this point he would support $10,000. Councilman Schiffner inquired if those funds could be used for anything else. Mr. Watenpaugh indicated that they could be borrowed. Mrs. Kelley noted that the City already owes the fund $300,000. Mr. Watenpaugh clarified that the Library fund is owed $300,000. City Treasurer Ferro e~ressed concern for making sure that this is clearly understood, because the Friends of the Library think it is their money. He stressed the need to clarify whose money it was. Councilwoman Kelley indicated that she could do so; and reiterated that she would like to see an allocation to at least match last years. Mayor Pro Tem Pape inquired whether the books are identified as being purchased with City funds. Mrs. Kelley indicated that the City is provided with an invoice. Mr. Watenpaugh clarified that there is an inventory of books purchased to insure they stay at this Library. Mrs. Kelley suggested allocation of $15,000 to $20,000 for new books. Mayor Pro Tem Pape questioned LSSPs financial commitment. PAGE THIRTEEN - STUDY SESSION MINUTES - MAY 25, 2000 Councilwoman Kelley and City Treasurer Ferro indicated that the LSSI budget has not been resolved yet. Councilman Schiffner indicated that if the money is there and can't be used for anything else, he would like to see it used there. Mayor Pro Tem Pape indicated $10,000 was fine. Mrs. Kelley again suggested allocation of $15,000 to $20,000. Councilman Metze indicated that he had seen nothing in writing requesting such funds. City Manager Watenpaugh suggested that he could bring back the budget with $10,000 for consideration and the Council could amend it at that time. City Manager Watenpaugh reviewed page 63 regarding new Capital Projects for fiscal year 2000-01; noting that it did not include the carryover projects. Mayor Pro Tem Pape inquired which streets were to be slurried or paved. Community Services Director Sapp indicated that this would address the Avenues behind City Hall. Mr. Watenpaugh pointed out the areas being proposed for slurry seal. Mr. Pape inquired whether the Lake Street work would be complete before winter starts. Mr. Watenpaugh asked staff if it would be possible to eapedite those plans. City Engineer O'Donnell indicated that would be a tight time frame, but it probably could be completed. Mr. Pape indicated he would hate to see it weather another winter in its present condition. Councilman Metze indicated that he would see Lake Street as a higher priarity than some projects. Mr. Watenpaugh deferred to Council with regard to which projects are the highest priorities. Mr. Pape noted that it appears that the slurry seal addresses about one tract a year. Mr. Watenpaugh confirmed that based on the a~ailable funding that tends to be how it works out. Community Services Director Sapp noted that in the Avenues, staff is looking at crack sealing and berxning too; and noted the clean up required in that area after any kind of rain. Mr. Watenpaugh detailed the project needs list on page 67 and added Pottery Street, Wilson Way, Gentz Street, the Avenues, Lucerne Street slurry seal, Marion Street slurry seal, Elm Street repaving, the Skatepark and other projects discussed this date. Mr. Pape questioned the eligibility of East Graham Street behind City Hall for CDBG funding. Mr. Watenpaugh indicated that staff was discussing the possibility of reallocating balances into that area. He suggested if that was a priority they could move funds to that area. Mr. Sapp clarified that most of that area would be new construction, not overlay. Mr. Pape questioned the City Hall reroofing and the potential for using CDBG funds. Mrs. Kelley questioned the update of bicycle lanes with State funds. Mr. Watenpaugh indicated that it has not yet been funded, but is part of the Master Plan revision. Councilwoman Kelley noted that the ball is in the City's court far the skatepark; and staff is looking for an architect to obtain a rough idea of the costs. She noted that the County is very interested in the project. Councilman Metze inquired as to the level of priority. Mrs. Kelley indicated that she sees it as a very high priority; noting the responsibility of the Council to provide recreation for the youth in the area. She noted that the proposal has received an overwhelming response; and indicated that the dollars for design will be needed as soon as the architecture rendering is provided. PAGE FOURTEEN - STUDY SESSION MINUTES - MAY 25,~2000 City Manager Watenpaugh suggested allocating $40,000 for design and engineering, not to include construction. He noted that the committee was looking at a fee for use of the facility and it would be fully supervised. He stressed that this was a potential revenue generator for the City. Mrs. Kelley stressed the benefits of a supervised facility and noted the potential for obtaining a concessionaire to run the facility in the future. Mrs. Kelley clarified that the City would be providing the land for this project. Mr. Watenpaugh noted that a supervised skatepark would assist in alleviating vandalism in the park. Mrs. Kelley explained that she needed to know if the Council had the dollars to put forward far the ne~ step. Mr. Watenpaugh suggested there were two ways to look at it, either move forward with City money, allowing for a local user rate and another outside rate; or allow far the participants to participate in the funding and allow all members to participate at the same rate. Mr. Pape noted that if there are three or four agencies the costs would only be about $10,000 to $13,000 each. Mr. Watenpaugh noted the willingness of the County to participate and suggesting moving the project forward on the priority list. Mayor Pro Tem Pape inquired if items 25 and 29 of this list were a duplication of projects; and suggested that if additional dollars are received from the State budget, maybe some other projects could be moved up to the current budget. Councilwoman Kelley inquired if Council would continue moving items up the list, rather than starting over again next year. Mr. Watenpaugh clarified that this was part of a five year budget process, which was changeable. Councilman Schiffner questioned the Railroad Canyon Road Improvements and whether it would be a high priority. Mr. Watenpaugh advised that it really is a high priority because of some of the cracks and seepage of water into those cracks. He eaplained that staff was concerned that if the work was not done now, there would still need to be extensive patching and some portions are in need of total replacement. Mr. Pape inquired why some areas failed more than others. Mr. O'Donnell indicated that they had the work analyzed and are still not sure why some areas failed mare than others. Mr. Pape inquired if it was impacted by being cut into. Mr. O'Donnell indicated most of it has not been cut, but it may have been underdesigned far the 1990 improvements. Councilman Schiffner noted the Grand Avenue project and indicated that the road is very bad in a two block area. He indicated that he would like to see that project moved forward, as well as having the State do improvements to their portion of the street. He further commented on the poor condition of several streets and noted the problems on Machado Street. Mr. Watenpaugh concurred that the comments on Grand Avenue were well taken; noting that efforts are being made to lease a site for an entry sign and if that is done, the road work should be done too. Mrs. Kelley noted that there is constant drainage through the area which impacts the roads. Mr. Watenpaugh indicated that he would obtain costs and allow the Council to prioritize the projects. Councilman Schiffner inquired what work would be done in this fiscal year on Strickland Avenue. Public Works Manager Payne indicated it would be an overlay of a portion of the street from Chaney to Highway 74. Mr. .:. F ..- p .,:. PAGE FIFTEEN - STUDY SESSION MINLTTES - MAY 25, 2000 Schiffner suggested that there was very little left to overlay. Mr. Payne indicated that it would be similar to the recent work in Country Club Heights. Councilman Metze questioned the main reason for use of Strickland Avenue. Mr. Watenpaugh indicated that after LEAF moves it will be primarily residential, and serve as a detour when there are accidents on Highway 74. Councilman Schiffner stressed that Strickland is a total embarrassment. He noted that when Sunnyslope was improved, he made a point of saying he hoped it could be done with a loan from the City to the RDA to ensure the costs are recouped. He suggested if he felt this wark would eventually be paid by the RDA, it would somewhat address his concerns. There was general discussion regarding the philosophy of funding road improvements. Mr. Watenpaugh clarified that Strickland was originally paved, but had not been maintained through the years; and expressed concern that emergency vehicles could not use it very quickly. Mayor Pro Tem Pape questioned items 28 and 29 for small stretches of road vs. the cost of Strickland; and why there was such a variable in costs. Mr. Watenpaugh noted the type of improvements to Sunnyslope with gravel and overlay, while Machado street would have to include rewarking the base and meeting full street standards. There was general discussion of variations in road standards and the related cost variables. Councilwoman Kelley questioned the placement of palm trees at Lake/Grand. City Manager Watenpaugh indicated that they are included in the current fiscal year, but more funds are needed from the Park funds. Mayor Pro Tem Pape questioned page 63, item 2 and where that work would be done. Public Works Manager Payne indicated that $85,000 would be used for striping, with the remainder being used to make street repairs in problem areas, where constant patching is required. He clarified that the locations had not yet been designated, as he relies on his maintenance staff to advise him of problem areas. Community Services Director Sapp noted that they like to save some funds to deal with emergency situations. Mr. Watenpaugh suggested that staff would try to identify key areas. _. Councilwoman Kelley addressed page 67 regarding a tiny tot and t~en~ center and questioned how much they would cost. Mr. Watenpaugh indicate2i that he would bring that information forward. Councilman Metze i~quired if the program suggested would be in conflict with other programs like the after school program. Mr. Watenpaugh indicated that a similar program is being pursued. Recreation and Tourism Manager Edelbrock noted that there is a program at some elementary schools run by former Ortega Trails employees; and there is some difficulty with the City being able to get programs back into the schools. She explained that they are not able to gtzarantee a facility to ensure an inside area for the program. Councilwoman Kelley suggested that there might be grant funds available for such a program. Mr. Watenpaugh noted the transition from Ortega Trails to a School District program. Councilwoman Kelley noted that efforts are underway to wark on a joint library effort with the school district and clarified that the aquatics program was lost due to the formation of an aquatics program that trains students for the school swim team. Councilman Metze expressed concern that they were PAGE SIXTEEN - STUDY SESSION MINUTES - MAY 25, 2000 working with Ortega Trails staff before the City. There was general discussion of the swim program and other School District programs. Mayor Pro Tem Pape requested a list showing when construction would start on the pending projects. City Manager Watenpaugh indicated that he would have staff do their best to prepare an accurate list. Councilwoman Kelley inquired when the budget would return to Council. Mr. Watenpaugh questioned possible dates for another study session. There was general discussion of the Council's future considerations. City Manager Watenpaugh suggested bringing it back to a meeting in June with the revisions requested. There was further discussion of the library funding and the skatepark; and it was suggested that the money be added for design of the skatepark. Council concurred that staff should bring the budget forward with revisions. Councilman Schiffner questioned if a skatepark was an acceptable use of flood property. Mr. Watenpaugh confirmed. There was general discussion of the proposed skatepark project. ADJOiIRNMENT THE CITY COUNCIL STUDY SESSION WAS ADJOURNED AT 3:12 P.M. ATTEST. ~ ~ l ~~~;~ , `~~l~HI I{ASA.~ ~ , , CITY CLERK CI'1~iz ~F'i1~iKE ELSINORE