Loading...
HomeMy WebLinkAbout06-15-2000 City Study SessionMINUTES CITY COUNCIL STUDY SESSION 130 SOUTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, JUNE 15, 2000 ~~~~~~~~~:~:~*~~:~*:~~~~~~*~:~~~:~~~~~~:~~:~*~~~~*~~:~~~x:~~~~:~~:~~:~~*~~ CALL TO ORDER Mayor Brinley called the City Council Study Session to order at 239 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Brinley. ROLL CALL PRESENT ABSENT: COUNCILMEMBERS: KELLEY, PAPE SCHIFFNER, BRINLEY COUNCILMEMBERS: METZE (Councilman Metze arrived at 2:41 p.m.) Also present were: City Manager Watenpaugh, Assistant City Manager Best, City Attorney Leibold, Administrative Services Director Boone, Community Development Director Brady, Community Services Director Sapp, Information/Communications Director Dennis, Recreation & Tourism Manager Edelbrock, City Treasurer Ferro and City Clerk Kasad. DISCUSSION ITEM a. Cam~ground Concessionaire Proposals (F:92.1) City Manager Watenpaugh presented an overview of the background of the City's Campground and explained that the City has been operating the Lake Elsinore Recreation Area and Campground as a result of the removal of the former concessionaire. He advised that in 1999 the City mailed out Requests for Proposals and of the three submitted two later contacted the City and withdrew their proposals due to the investment that would have to be made, the remaining applicant is Sunland RV Resorts. COUNCILMAN METZE ARRIVED AT THE MEETING AT 2:41 P.M. City Manager Watenpaugh indicated that the City had developed an aggressive capitalization list of the items that needed to be done to the Campground to bring it up to the standard that the Council and community would like to see as follows: PAGE TWO - STUDY SESSION - J UNE 15, 2000 CAMPGROUND IMPROVEMENT PRIORITIES AND GOALS High Priority (0-1 year) • Upgrade electrical system • Upgrade sewer system • Redesign site layout to accommodate larger units with two vehicles • Full hook-ups at all sites • Upgrade landscaping to increase privacy • Overlay streets • Construct new restroom and shower facilities • Repair residential unit to current City code • Installation of playground equipment • Repair/replace e~sting irrigation system Mid-term Priority (2 to 3 years) • Construction of on-site general store • Construction of on-site laundry facility • Replacement of existing fencing • Recreation equipment rental facility • EstaBlish swimming beach ' Long-term Development Goals (2 years to 7 years) • Construction of clubhouse facility • Marina development with fuel docks, slips, dry storage, launching facility, parking lot • Hotel facility and related retail and entertainment facilities City Manager stated that Reza Paydar and Jim Waring of Sunland RV Resort would present an overview and brief summary of what they would proposes for the Campground for Council consideration. 1VIr. Paydar, Sunland RV Resorts, stated that they are operators of "five star" RV Parks and currently operate five recreational parks in Southern California. He stated that most of their campgrounds have Meeting Hall facilities and considerable improvements have been made to each of their facilities to meet the industry needs and to meet the patrons' expectations. He gave an overview of the improvements ha~e been made on a RV Park they took over in Hemet. He noted that they have been very successful in turning around projects that have failed; and have made it their expertise to renovate old campgrounds and noted their excitement regarding the City's Campground. He explained that immediately upon the completion of negotiations with PAGE THREE - STUDY SESSION - JiJNE 15, 2000 the City, they would bring their team of consultants on-site for detailed studies. He stated that the team consists of a professional civil engineer, utility consultant, architects, landscape architects and one or more site planners for formulation of an optimum plan and development sequence for the Lake Elsinore property. He noted that one of the key phases would be the development of the boating docks and Marina. He compared his proposed facility with the other nearby facilities and noted that they provide basic service, whereas they intend to provide a"five star" facility that will attract the right type of traveler to the park. He noted the amount of time that would be necessary to do a complete feasibility for the site and prior to starting improvements. Mayor Brinley asked how long the process would take should the City award the contract. She asked if they were able to afford the study. Mr. Paydar assured Council that they were well able to fund the study. Mayor Brinley asked how long they felt it would take to bring the park on line. Mr. Paydar stated that subject to the issues regarding the Lake and potential flooding mitigation for maximum advantage to the Lake for patrons. Mayor Brinley stated that she understood their constraints, however she asked for an estimate. Mr. Paydar indicated that it would take approximately 60 days. Mr. Waring, Sunland RV Resorts, stated that a letter was distributed to Council that provides a rough outline of the time schedule they feel might be appropriate to the project. He stated that once there was a Memorandum of Understanding signed by his firm and the City, then the team could be brought on-site and the real work would begin. He noted that they have been using the 1994 study that called out $6 1/2 million for the existing RV sites, as a frame of reference. He inquired if for example they raised the site in front of what would be the Marina to 1254', would the City have the permits with FEMA and the Corp of Engineers to take this action or would they have to apply for the permits, which takes approximately 18 months. City Attorney Leibold stated that the City does have a good working relationship with the Army Corp of Engineers and the other resource agencies, which would assist in the common goal. Councilman Metze noted the amount of use the Campground has experienced in the past and noted that with improvements he felt that this would be possible again. He asked Nick Nash (resident & business owner), about the Outflow Channel; how much water it carries out during high storm times; and how it affects the different businesses in the area. Nick Nash stated that the Outflow Channel handles the majority of the water, however he emphasized that if the proposed RV Park did not have a launch facility, then they would be wasting their time. Mayor Brinley stated that she has lived in Lake Elsinore since 1977 and noted the amount of "Snowbirds" that visit and stay in Lake Elsinore. She noted that until the Floods of 1980, the Local businesses thrived on "Snowbird" business throughout the PAGE FOUR - STUDY SE5SION - JUNE 15, 2000 winter. She stated that she felt that they would be able to draw that business back again with the proposed facilities. Mr. Paydar stated that they have all the latest technology at their other facilities, which includes internet access to the RV sites. Mayor Pro Tem Pape asked if Mr. Paydar intended to incorporate the group camping area into RV spaces as well. Mr. Paydar noted that they had to review the entire site and it could include reconfiguring the entire property. He stated that it was his understanding that underground utilities do not exist in that area and this will have to be done. Mayor Pro Tem Pape asked how many sites were proposed. Mr. Paydar stated that they will be sensitive to the existing landscape, therefore it will take a complete study to ascertain how many spaces they will be able to develop. Mayor Pro Tem Pape asked if Mr. Paydar had a way to market to the "Snowbirds". Mr. Paydar stated that they spend approximately $1/2 million a year in advertising and Lake Elsinore will include an extra $200,000 to $300,000 a year for further advertising to ensure the necessary traffic for the Park. He stated that repeat business is vital. Mayor Pro Tem Pape clarified the cost for the Campground. Mr. Waring stated that the 1994 study was only used as a frame of reference. Mayor Pro Tem Pape questioned the high priority in the first year. City Manager Watenpaugh stated that when the Contract is awarded, the whole park will be closed down and improvements will be made at that time. Mayor Pro Tem I'ape asked how long the improvements would take. Mr. Paydar stated that without people to work around, it would take approximately 9 months. He stated that if they had the entire property open to work on, it would go much faster. Mr. Waring stated that it would also depend on the raising of the property to the elevation of 1254' and the permit process. Councilwoman Kelley stated that she was told that the Campground would go to all RV's and she stated that at this time the local Scouts use the group campgrounds frequently. She expressed concern regarding the shift in the type of park and services offered to an all RV park. Mr. Paydar stated that it depends on what the City wants on the property. He stated that the two types of facilities could not be mixed. Mayor Brinley asked if they could place the two different types of camping in two different areas. Mr. Paydar stated that it depended of what the Council wished; but explained that if the Council wished to cater to and increase tourism it was necessary to attract a specific crowd to Lake Elsinore. Councilwoman Kelley stated that at this time the youth groups are an integral part of the Campground and do use the facilities quite a bit. She noted that the Campground currently offers both tent and RV camping and while she understood what Mr. Paydar was saying, a lot of the youth groups use the facility and this is a concern to them. She noted that the groups are currently allowed to use the facilities at no cost and as a result they PAGE FIVE - STUDY SESSION - JUNE 15, 2000 do improvement projects to return the favor to the City. Councilman Schiffner stated that he understands what was being said about shifting, however he saw it as shifting from a non-profitable operation to an operation that may be profitable. He asked if this contract would include the property to the west that has not been developed to date. City Manager Watenpaugh stated that it was all negotiable. Mr. Paydar stated that when this type of a project is done it is attractive to have the ability to expand. Councilman Schiffner indicated that Mr. Paydar's team will be doing the study and developing plans during the summer season; and when the point is reached to shut Campground down, the season will be over; and before the next summer the Campground will reopen. Mr. Waring stated that it does depend on the permit process, but that would be their hope. City Manager Watenpaugh stated that he understood Councilwoman Kelley's concerns; however the reason that the City is looking far a concessionaire was because the City was not making money on the Campground; and if the City continues to give it away for free, then the City has to subsidize it through the General Fund. He noted that there are other facilities the Scouts can use within the City. He stated that he couldn't speak for all concessionaires, however he couldn't imagine many who would give up 1/3 of their facility for free camping. He stated that it was his understanding that the Council wanted a 1 S` class facility to bring "Snowbirds" in and provide family RV camping and have Lake Elsinore recognized as a tourist destination. City Manager Watenpaugh stated that there are a lot of Oceanside residents who drive their RV's to the beach and pay to be on the beach, including families. He noted that tent camping is rural camping and very rarely do you find tent camping in an urban setting. Councilwoman Kelley reminded Council that they are accountable to the public and should be prepared to provide answers. She noted that Council should be prepared with an answer of another facility for scouts and other organizations. Mayor Brinley suggested that perhaps when the park in not in season they could allow the Scouts to use it for a 4 or 5 day period. Councilwoman Kelley stated that she doesn't expect the RV Park to provide for Scouts, however Council should find an alternate area for them to camp. Councilman Metze stated that there are other cities that have no lake or campgrounds and they do just fine. Councilman Metze stated that he is looking for a shift in focus and having something that makes money. He stated that what Council was looking at is an operation that didn't attract the RV's, because PAGE SIX - STUDY SESSION - JLTNE 15, 2000 there were no sewer hook-ups. He stated that if there were 10 sewer hook-ups there would be 10 RV's in them all the time, however there are not, and the facility is loosing money. He stated that what was before Council to consider is a facility that may pay, but will also be a major attraction. Mayor Brinley concurred with Councilwoman Kelley and stated that the City does want to facilitate the different users groups, however Council needs to assure them that the City would find other alternatives for them so it doesn't spoil their activities. Councilman Metze asked if the City owned any other property on the lake that the Scouts could use. He asked if this was not the type of facility that catered to the boater from Orange County for the day. Mr. Paydar stated that a lot of the people that camp in RV's bring their boats with them. Mayar Pro Tem Pape noted the opportunity for the campers to come to Lake Elsinore in their RV's, launch their boats, tie up to the docks and not have to take their boat in and out of the water each day. Mayor Brinley concurred and noted her family's skiing activities. Councilman Schiffner stated that the people that only want to come for the day would use the Boat Launch and go home at the end of the day, and he saw no conflict since it was two different types of uses. City Manager Watenpaugh suggested that their study might want to look at ha~ing a day use area that would increase their revenue. He stated that there was a need for other boat launch facilities and this would generate mare income for a much-needed service. Councilman Metze asked if the Campground would retain the name. Mr. Paydar stated that the only time that they change the name is if there has been a great deal of negative associated with it. Councilman Metze noted that the citizens of the community were going to expect some access to the facility since it will be perceived that the City does own it and a great many taa~ dollars have recently been invested in the Campground. Mr. Paydar explained that the clubhouses on facilities are booked a year or more in advance for the different camper clubs and they haee found it necessary to stager the campers to accommodate the use of the clubhouse. Mayor Brinley stated that in the contract it could stipulate that the concessionaire allow use of the clubhouse a set amount of times a year. Mr. Waring stated that it would have to be set by availability and handled on a case by case basis. PAGE SEVEN - STUDY SESSION - JUNE 15, 2000 Councilwoman Kelley noted that when the Campground was closed, there was an outcry in the community that Council closed their Campground and the perception of the public was that it was theirs; which made it more of a public relations issue. Mayor Brinley stated that what she hears from the community is that they want to see the Campground open, properly run, full of campers, and utilized. She stressed that the public wants to see the Campground paying for itself. Councilman Metze noted the amount of tax dollars that a properly run Campground will generate. He further noted the Outlet Center and the amount of money from outside of the community that is brought to the community. He stated that the objective was to draw the public outside brings money into the community and does not put a drain on public services. City Manager Watenpaugh stated that Councilwoman Kelley presented some valid points and the City would have to address alternative solutions. He noted the free 4th of July entertainment and the time came that the City had to place a charge on the entertainment; but the citizens did not attend because they wanted it free. He stated that the City has entered the 21 St Century and it is not possible to provide free services anymore. He stated that there is no way to mix everything that has been done in the past with what the City wants to see done and have it work. He agreed that there would have to be areas found to assist the Scouts; however just like the Baseball Stadium, there is a fee for its use and the citizens still feel that it is their stadium. He stated that the City cannot continue to give away everything, or the City will never be out of debt. He stated that the City must be business oriented. Councilwoman Kelley concurred, however she stressed that Council needs to be Community aware since those are the people that Council must answer to. She stated that there are going to be issues, and it is necessary to have answers ready. Mr. Paydar stated that their clubhouse at the campground in Hemet is made available to the public to rent far weddings, receptions and things of that nature. Mayor Brinley noted that would be all the public would want, would be having the ability to possibly use the facilities. Nick Nash stated that as he sees it, there is an opportunity to bring a first class RV facility to the Lake and noted that there is plenty of land around the Lake to develop for different venues. Councilman Metze asked Mr. Nash as a local business owner, if he was in favor of the proposed project. Mr. Nash stated that he was supportive and stated that there is a need to start taking some steps up. He stated that this PAGE EIGHT - STUDY SESSION -.TUNE 15, 2000 proposed project would provide an economic anchor for that end of the Lake. Mayor Brinley concurred with Mr. Nash and stated that an RV facility would provide business to the local establishments year round. She noted that when the Campground was in good operating order she had to put her name on a waiting list to eat at the Park Plaza restaurant and she feels that this could occur again. Councilman Schiffner stated that he attended this Study Session to hear a proposal of converting the run-down Campground to a 15` Class RV Park that would be something that will bring some money and people into Lake Elsinore. He stated that he was upset about the possibility of holding on to what is there. He further stated that he realizes the needs of the Scouts and something will have to be found for them. He stressed the condition of the Campground and the need to bring it up to modern standards. Councilwoman Kelley stated that there are issues that will have to be addressed and she felt that it was better to be in front of them instead of behind them. Mr. Nash stated that with a lst class facility, they will have their clubhouse booked and if it is not, then he was sure that they would make it available to boost revenue. There was general discussion regarding the impact of the Campground on local economics. Mr. Waring stated that after they develop their RV facility it would create an environment that will encourage the surrounding property to upgrade: He further stated that eventually the whole north side of the Lake would improve. Council concurred. Mayor Pro Tem Pape questioned the a~ailability of reservations for the Campground; or if they would it be a first come, first served basis. Mr. Paydar explained that they have a very elaborate system in place, which includes reservations on the Internet for the parks; and ne~ year they will be establishing a central reservation system, which would include reservations on-site as well as off-site. Mayor Pro Tem Pape stated that the minimum at each site would be water, sewer, phone lines, TV cable, etc. Mr. Paydar noted that not only would there be amenities on-site, but there would be amenities at the clubhouse as well. He stated that the main infrastructure would be improved all at the same time and the phasing plan would be for pad development. Mayor Pro Tem Pape questioned the type of recreation that would be provided such as horseshoe courts, swimming pool, PAGE NINE - STUDY SESSION - JUNE 15, 2000 tennis courts, eta Mr. Paydar stated that it is necessary to provide all of the amenities including an exercise room, pool, etc.; very similar to a hotel. Councilman Schiffner stated that he understood that all of this could be worked out with a Memorandum of Understanding rather than a full scale lease until Sunland RV Resorts has had the opportunity to perform their evaluation and present Council with a firm plan. He stated that he would not want to be involved in a 75-year lease until he knew exactly what was going to happen. Mayor Brinley stated that she would like to see Mr. Paydar arrange some type of tour at their facility in Hemet to give Council the opportunity to see the facility and provide a comfort level to be better able to provide the community with first hand information. Councilman Metze stated that he felt that Mr. Paydar was headed in the right direction and he was in support of the project, provided the attorneys can work out the agreement. City Attorney Leibold questioned the improvements at the RV Park in Hemet and asked if there were permanent residents on site while they were trying to perform improvements. Mr. Paydar stated that there were; and indicated that part of the reason that his company was interested in the City Campground was because it did not contain permanent residents. Council concurred that they do not want permanent residents at the City Campground. Mayor Pro Tem Pape stated that the only direction he would make of the City Attorney for 25 to 40 years down the road, if this is a long term agreement; that the City include some performance issue so the City does not have to deal with this problem again. City Attorney Leibold stated that clearly there was a feasibility study period for Sunland RV Resorts; and assuming the interest is strong, there is a negotiation period to get to the point where the City and Sunland enter into a mutually agreeable long term lease. She questioned if it was the preference that Sunland's intention to step immediately into an Operating Agreement and the Exclusive Negotiating Agreement or Memorandum of Understanding outlining the basic terms of what both parties hope to attain in terms of a long term lease, or if it was their preference that Sunland RV Resorts was not physically on site for operations purposes until the Long Term Agreement is reached. Mr. Waring stated that one of the sensitive issues would be the term of the lease. Mayor Brinley stated that she does not want to see any permanent residents on site. Mr. Waring assured Council that they do not want permanent residents and have a nine-month limit. Mr. Paydar PAGE TEN - STUDY SESSION - JUNE 15, 2000 e~lained that the distinction between Sunland and a single operator was that they were expanding rapidly and intend to have a major operation in recreational parks, not only in Southern California but also in all the sun-belt states. He noted that they are putting huge investments in infrastructure to give them their edge. He noted that one of the reasons that they are insisting on a Long Term Agreement is because this will be their first, because usually they purchase the parks to develop. Councilman Metze questioned the meaning of Long Term. Mr. Paydar stated that the minimum would be 75 years is to facilitate recovery of investment and allow further investment and improvement. Councilman Schiffner stated that he would like to see everyone jump through hoops to get this project moving. Council concurred. ADJOURNMENT THE CITY COUNCIL STUDY SESSION WAS ADJOURNED AT ~~ CITY OF LAKE ATTEST: ~ ~dCKI KASAD, C C, CITY CLERK CI'I'Y OF LAKE ELSINORE