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HomeMy WebLinkAbout012803 CC MinutesMINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL JANUARY 28, 2003 After the Closed Session that convened et 5:30 P.M., the City Council convened in Open Session at 7:01 P.M., on Tuesday, January 28, 2003, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: Absent: PRELUDE MUSIC Councilmembers: Comerchero, Naggar, Pratt, Stone, Roberts Councilmember: None The prelude music was provided by Cathy Choi. INVOCATION The invocation was given by City Manager Shawn Nelson. ALLEGIANCE The flag ceremony was presented by Mayor Pro Tem Naggar. PRESENTATION/PROCLAMATIONS Certificate of Achievement to Michael Jenkins for achievinq Ea.qle Scout Rank Mayor Stone presented the Certificate to Michael Jenkins, who proceeded with a brief overview of his project. PUBLIC COMMENTS A. Ms. Denise Orm, 45241 Callesita Ordenes, representing the Church of Jesus Christ of Latter Day Saints, presented the City Council with copies of a book entitled They Passed This Way - Legacy of the Mormon Battalion of Temecula Valleywritten by Rebecca Ford. B. Mr. Tom Stiflings, 35595 Glenoaks Road, requested that the City enhance landscaping along Butterfield Stage Road, and suggested planting rows of trees to provide an adequate buffer, both for visual and sound concerns. C. Expressing concerns of erosion control along Butterfield Stage Road, Mrs. Susan Stillings, 35595 Glenoaks Road requested additional landscaping to address this issue. D. Mr. Brian McClung, 31147 Brussels Street, Winchester, addressed the City Council regarding traffic law enforcement issues. E. Addressing the need for assistance to Old Town businesses, Mr. Otto Baron, 28681 Pujol Street, requested that the City Counci! explore additional methods to enhance the visibility of businesses that do not have frontage on Main or Front Streets. F. Ms. Karen Kreider, 28337 Hearthside, Menifee, requested that the City post adequate signs in Old Town to direct visitors to businesses in the area. R:\Minutes\012803 1 CITY COUNCIL REPORTS A. Mayor Pro Tem Naggar invited the public to attend the Second Inaugural Meeting of the Temecula Citizens Corps, on Thursday, January 30, 2003, 7:00 p.m., in the City Council Chambers. He noted that any questions regarding this program should be directed to the Temecula Police Department, Sergeant Waite or Officer Rachel Frost at 696-3000. B. Councilman Pratt announced that Agenda Item No. 21 would address signage issues in Old Town and requested that those interested in this item remain in attendance. C. Reporting on AB1010 (legislation enabling the purchase of State Route 91 Toll Road), Councilman Roberts informed the public that the County is the current owner of this toll road and that the Board will be exploring revisions such as free ride for HOV lane (3+) and the addition of an ancillary lane each way. D. Mayor Stone reported on his attendance at the National Conference of Mayors in Washington D.C., advising that topics of discussion included Homeland Security and the President's Economic Stimulus Plan, proposed in the 2003 Budget. Among the group discussions, topics dealing with gangs and graffiti were at the forefront. Mayor Stone shared the City of Temecula's Graffiti Ordinance and the "Get a Grip Program," with the City of Los Angeles' Mayor and Police Chief showing interest and requesting a copy. Other topics at the National Conference of Mayors included the impact of developments outside of City limits causing traffic problems within cities. Programs such as TUMF and the Riverside County Integrated Plan were discussed. Mayor Stone commented on the advantages of organizations such as the National Conference of Mayors and suggested that the City join efforts on the following two programs: Breast Cancer Awareness and Prostate Cancer Awareness, noting that he would be requesting to agendize these issues in the near future for full City Council review. CONSENT CALENDAR 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: f.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Minutes RECOMMENDATION: 2.1 Approve the minutes of November 26, 2002; 2.2 Approve the minutes of December 10, 2003; 2.3 Approve the minutes of December 17, 2003. R:\Minutes\012803 2 3 Resolution Approvinq List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 03-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 Approve Sponsorship Request for the Temecula Valle,/Balloon & Wine Festival Association RECOMMENDATION: 4.1 Approve the event sponsorship agreement with the Temecula Valley Balloon & Wine Festival Association in the amount of $35,000 and authorize the Mayor to execute the agreement. In addition, the Festival requests that the City will provide temporary logistical support of traffic control signs and devices to assist with public safety during the Festival. 5 2003 Workers' Compensation Coveraqe Annual Renewal RECOMMENDATION: 5.1 Select State Compensation Insurance Fund as the City's Employee Workers' Compensation Insurance for Plan Year 2003 which begins on February 1,2003. 6 Old Town Temecula Storefront Lease A.qreement RECOMMENDATION: 6.1 Approve the lease agreement for the Temecula Police Department storefront facility in Old Town Temecula beginning February 1,2003, and terminating January 31, 2006. 7 Approve Grant of Easement whereby the City grants to Eastern Municipal Water District (EMWD) an easement for the riqht of access to the Puiol Street Lift Station RECOMMENDATION: 7.1 Adopt a resolution entitled: RESOLUTION NO, 03-06 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A GRANT OF EASEMENT WHEREBY CITY GRANTS TO EASTERN MUNICIPAL WATER DISTRICT AN EASEMENT FOR THE RIGHT OF ACCESS TO THE PUJOL STREET LIFT STATION R:\Minutes\012803 3 8 Approve Grant Deed whereby City grants to Eastern Municipal Water District (EMWD} in fee the land used for the Puiol Street Lift Station RECOMMENDATION: 8.1 Adopt a resolution entitled: RESOLUTION NO, 03-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A GRANT DEED WHEREBY THE CITY GRANTS IN FEE TO EASTERN MUNICIPAL WATER DISTRICT THE LAND USED FOR THE PUJOL STREET LIFT STATION 9 Future Funding of Murrieta Creek Flood Control, Environmental Restoration and Recreation Project RECOMMENDATION: 9.1 Authorize the Mayor to sign the letter and authorize staff to transmit said letter to the General Manager of the Riverside County Flood Control and Water Conservation District. 10 Completion and Acceptance for Pavement Rehabilitation Program - Rancho California Road - Project No. PW02-03 RECOMMENDATION: 10.1 Accept the Pavement Rehabilitation Program - Rancho California Road - Project No. PW02-03 - as complete; 10.2 File a Notice of Completion, release the Performance Bond, and accept a one-year Maintenance Bond in the amount of 10% of the contract; 10.3 Release the Materials and Labor Bond seven months after filing of the Notice of Completion, if no liens have been filed. 11 Award of Construction Contract for the Asphalt Crackfill Proiect - various streets - FY2002- 2003 - Project No. PW02-24 RECOMMENDATION: 11.1 Award a construction contract for the Asphalt Crackfill Project for FY2002-2003 to Global Road Sealing, Inc. in the amount of $77,600 and authorize the Mayor to execute the contract; 11.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $7,760.00 which is equal to 10% of the contract amount. R:\Minutes\012803 4 12 Second Reading of Ordinance No. 03-01 (Transportation Uniform Mitiqation Fee) RECOMMENDATION: 12.1 Adopt an ordinance entitled: ORDINANCE NO. 03-01 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING PARTICIPATION IN THE WESTERN RIVERSIDE COUNTY TRANSPORTATION UNIFORM MITIGATION FEE PROGRAM AND ADDING CHAPTER 15.08 TO THE TEMECULA MUNICIPAL CODE 13 Second Readinq of Ordinance No. 03-02 (Eli Lilly) RECOMMENDATION: 13.1 Adopt an ordinance entitled: ORDINANCE NO. 03-02 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING THE REGIONAL CENTER SPECIFIC PLAN (SP-7) TO REMOVE ONE PARCEL (LOT I OF PARCEL MAP NO. 30107) FROM THE REGIONAL CENTER SPECIFIC PLAN (SP-7), GENERALLY LOCATED AT THE SOUTHEAST CORNER OF OVERLAND DRIVE AND YNEZ ROAD (PLANNING APPLICATION NO. 02-0510) 14 Second Readinq of Ordinance No. 03-03 (Eli Lilly) RECOMMENDATION: 14.1 Adopt an ordinance entitled: ORDINANCE NO. 03-03 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING THE OFFICIAL ZONING MAP TO CHANGE LOT I OF PARCEL MAP NO. 30107 FROM SP-7 TO COMMUNITY COMMERCIAL, AND LOTS 2 AND 3 OF PARCEL MAP NO. 30107 FROM BUSINESS PARK TO COMMUNITY COMMERCIAL, GENERALLY LOCATED AT THE SOUTHEAST CORNER OF OVERLAND DRIVE AND YNEZ ROAD (PLANNING APPLICATION NO. 02-0509) MOTION: Councilman Comerchero moved to approve Consent Calendar Item Nos. 1 - 14. The motion was seconded by Mayor Pro Tem Naggar and voice vote reflected unanimous approval. R:\Minutes\012803 5 Although not removing the item from the Consent Calendar, Mayor Stone commented on Item No. 5 (Workers' Compensation coverage), stating his concerns over the rising costs of Workers' Compensation Coverage, especially as it relates to small business owners. He requested that a letter be sent to the State Legislators, on behalf of the City Council, urging legislation be enacted that will cap workers' compensation premiums and ensuring that there are companies available to offer this type of insurance at a competitive rate. At 7:53 p.m., the City Council convened as the Temecula Community Services District, the Temecula Redevelopment Agency, and the Temecula Public Financing Authority. After a short recess, the City Council Meeting resumed with the agenda at 8:10 p.m. PUBLIC HEARING 15 An Appeal of the P annin.q Commission's approval of PA00-0507 (Development Plan) - a proposal to develop a 42,000 square foot 70-room four-story hote buildin.q on a 1.35 acre Io...Jt RECOMMENDATION: 15.1 Adopt a Notice of Exemption for Planning Application No. 00-0507 (Development Plan) per the California Environmental Quality Act Section 15332 Class 32; 15.2 Adopt a resolution entitled: RESOLUTION NO. 03- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DENYING THE APPEAL OF PLANNING APPLICATION NO. PA00-0507 (DEVELOPMENT PLAN - APPEAL), UPHOLDING THE PLANNING COMMISSION'S DECISION TO APPROVE PLANNING APPLICATION NO. PA00- 0507 (DEVELOPMENT PLAN) FOR THE DEVELOPMENT OF A FOUR-STORY, 70-ROOM, 42,000 SQUARE FOOT HOTEL BUILDING ON A 1.35 ACRE VACANT PARCEL LOCATED APPROXIMATELY 200 FEET EAST OF JEFFERSON AVENUE AND 200 FEET NORTH OF WINCHESTER ROAD, AND KNOWN AS ASSESSOR'S PARCEL NO. 910-282-007 Deputy City Manager Thornhill presented the staff report (of record), clarifying the proposed recommendation. By way of elevation drawings, Principal Planner Hazen reviewed the application (as per the staff report), noting the following: · That the application was presented at a .71 Floor Area Ratio (FAR); · That the target FAR for the Highway/Tourist Commercial zoning district is .30 FAR; · That is common for motels to exceed the .30 FAR in order to make the projects economically feasible; · That the Commission had approved the application because of its landscaping, architectural enhancements, and its Transient Occupancy Tax (TOT) benefits; · That there is a common driveway serving the entire center; · That lot coverage controls the amount of lot covered; and that FAR controls the bulk and mass of the building; · That a three-story structure would put the FAR in line with other hotels (.40 FAR); R:\Minutes\012803 6 · That as a result of the Planning Commission meetings, upgrades were made to the building by increasing the use of stone, window/balcony wrought iron railings, water fountain, site upgrades, and upgraded and denser landscaping; · That the proposed use is a permitted use in the zoning district; that another motel happens to be located next to the proposed use; · That 71 parking spaces are being proposed for this site which meets the minimum requirements based on the number of rooms; that if the square footage were decreased, the required parking spaces would be decreased as well. Having read the Planning Commission minutes with regard to this matter, Councilman Roberts stated that he would not view the proposed landscaping/architectural enhancements at an exceptional level warranting an increase in the FAR. Mr. Roberts expressed concern with regard to access points, land locked, traffic impacts, and height of the structure. Councilman Comerchero relayed his desire for additional landscaping along the building which faces the freeway with Principal Planner Hazen advising that 24" and 36" box trees will be planted along the freeway perimeter. In response to Councilmembers Comerchero and Roberts, Planning Chairman Chiniaeff commented on the Commission's effort to address the FAR issue; noted that a majority of the building would not be visible from Jefferson Avenue and the freeway; that the access to the building would be the same as to the existing hotel - by way of one driveway; that the applicant had addressed the Commission's concerns; that the building was architecturally improved; and that, as per the Public Works Department, no occupancy permits would be approved until the completion of the median improvements. Mr. Chiniaeff also advised that a three-story building would not be economically feasible and that roof articulations were requested by the Commission and provided by the applicant. Mayor Pro Tem Naggar relayed his opposition to hourly room rentals and questioned whether this area could sustain another motel. In response to Mayor Pro Tem Naggar, City Attorney Thorson commented on methods available to address his concern with regard to hourly rates and the maintenance of the motel. Mayor Stone cautioned against microeconomics as long as the applicant is in compliance with the City's General Plan. For Mayor Stone, Planning Chairman Chiniaeff advised that the Commission requested that each air conditioning/heating unit be screened. Principal Planner Hazen, for Councilman Roberts, advised that the proposed parking spaces do not provide parking for trailers, motor homes, trucks, etc. At this time, Mayor Stone opened the public hearing. By way of a map, Mr. Larry Markham, 41635 Enterprise Circle, representing the applicant, reviewed the three access point to the site and the reciprocal ingress/egress easements available to all parcels; that the parcel of discussion is owned in fee title with the reciprocal easements; that all parking spaces are the private property of the parcel; that there are CC&Rs for architectural control purposes and maintenance of the reciprocal pavement sections; that there will be no shared parking; that each parcel will have its own parking; and that the existing parking agreement will be extinguished once this project proceeds. Mr. Markham referenced the varying FAR of other local hotels/motels and the methods used to determine the appropriate R:\Minutes\012803 7 FAR for those sites; advised that a decorative grill will placed in front of each air conditioning unit; offered a condition to not take occupancy until the median improvements have been completed; if necessary, stated that the applicant would be willing to take the lead of such completion in order to take occupancy; noted that a sloped roof would add to the current building height of 50'; that the proposed use would be a hotel; that the parcel of discussion has been subdivided for approximately 15 years; clarified the proposed landscaping of and location of the dumpster area; and that there would be no objection to the imposition of a condition requiring reasonable maintenance standards. Relaying no objection to the competition the proposed use may present, Mr. Ken Westmeyer, representing Comfort Inn, 27338 Jefferson Avenue, voiced concern with the size of the building, suggesting that the FAR be reduced; recommended that 6 to 8 rooms be eliminated on each side of the building; and stated that the hotel should not be financially responsible for the median improvements, noting those improvements should be the City's responsibility. There being no additional public input, the public hearing was closed. Considering the size of the subject lot, Mayor Pro Tem Naggar noted that a reduction in rooms would not affect lot coverage; suggested the installation of central air conditioning versus individual units per room; requested to prohibit hourly rental rates; and suggested parking controls to ensure parking for the subject site would be solely utilized by the subject site. Concurring with Mayor Pro Tem Naggar's comments, Councilman Comerchero stated that the site may not be most suitable for a hotel, the zoning district permits the construction of one and that the owner has a right to develop it. Mr. Comerchero requested the imposition of a condition ensuring a high quality of maintenance. Commenting on the current traffic impacts, Councilman Pratt stated that the proposed structure would not be appropriate for this particular site. Appreciating the City Council's review of this appeal, Councilman Roberts noted the following: · That the subject site (1.35 acres) is too small for the proposed project, expressing concern with the proposed FAR of .71; · That the proposed exceptional items are not sufficient to warrant an increase in the FAR. In closing, Mr. Roberts expressed concern with the location of the subject site and it being land locked; commented on the existing traffic concern; and relayed his opposition to the project. Noting that the City has standards for a reason and that they must be upheld until they are amended, Mayor Stone stated that, in his opinion, the proposed architectural items are not exceptional enough to warrant the impacts the proposed project would create in the area; voiced concern with the ingress/egress to the subject site; commented on the current traffic situation in the area; recommended the installation of centralized air conditioning versus exterior units per room; stated that the building is too big for the lot; and encouraged the applicant and staff to work together in an effort to further address this matter. MOTION: Mayor Pro Tern Naggar requested that the matter be readdressed by the Planning Commission with special emphasis on the exceptional architectural features/FAR, air conditioning units, parking availability as it relates to motor homes, trucks, trailers, etc. The motion was seconded by Councilman Comerchero. (This motion was ultimately amended; see page 9.) R:~Minutes\012803 8 In response to Mayor Stone, Planning Chairman Chiniaeff noted that, as per the General Plan, the proposed use would be a permitted use and that the circulation concerns would be the same for this use or any other use permitted in this zoning district. Mr. Chiniaeff stated that in order for the Commission to readdress this matter, the City Council would have to provide further direction, specifically as it relates to the criteria used to approve increased density. For Mayor Pro Tem Naggar, Deputy City Manager Thornhill stated that the developer has a right to develop the property within accordance of City rules; noted that the subject site is properly zoned; commented on the Council's ability to provide direction as to a maximum FAR; and advised that hotels are the lowest traffic generators. Although the zoning district would permit a motel, Mayor Stone stated his preference for a hotel and recommended that a subcommittee, comprised of a City Councilmember, Planning Commissioner, and applicant, be formed to address the matter and relayed his opposition to the previously made motion. Being of the opinion that the City Council should clarify its direction to the Commission as it relates to FAR, Councilman Comerchero relayed his desire to decrease the FAR to .50. MOTION: Mayor Pro Tern Naggar moved that the matter be readdressed by the Planning Commission with special emphasis on the exceptional architectural amenities/FAR, limiting the FAR to .50; air conditioning units, considering the installation of central air; parking availability as it relates to motor homes, trucks, trailers, etc., and the imposition of a condition ensuring a high quality of maintenance. The motion was seconded by Councilman Comerchero and voice vote reflected approval with the exception of Mayor Stone who vote no. 16 Appeal of the Planning Commission's decision to deny PA02-0223- a request for a findinq of Public convenience or Necessity and a Minor Conditional Use Perm t to upqrade the existing Type-20 (Off Sale Beer and wine) ABC license to a Type-21 (Off Sale General) cerise authorizing the sale of beer, wine, and distilled spirits for consumption off the premises where sold RECOMMENDATION: 16.1 Adopt a Notice of Exemption for Planning Application No. 02-0223 (Public convenience or Necessity and Minor Conditional Use Permit) per the California Environmental Quality Act, Section 15270 (Projects where are disapproved); 16.2 Adopt a resolution entitled: R:\Minutes~012803 9 RESOLUTION NO. 03-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DENYING AN APPEAL OF THE PLANNING COMMISSION'S DECISION TO DENY PLANNING APPLICATION NO. 02-0223, A REQUEST FOR A FINDING OF PUBLIC CONVENIENCE OR NECESSITY TO UPGRADE THE CURRENT ALCOHOL BEVERAGE CONTROL (ABC) LICENSE FROM A TYPE 20 (OFF SALE BEER AND WINE LICENSE) TO A TYPE 21 (OFF-SALE GENERAL LICENSE) LOCATED IN THE MORAGA PLAZA AT 29762 RANCHO CALIFORNIA ROAD ON THE NORTH SIDE OF RANCHO CALIFORNIA ROAD, BETWEEN LYNDIE LANE AND MORAGA ROAD KNOWN AS ASSESSOR'S PARCEL NO. APN 921-310-022. 16.3 Adopt a resolution entitled: RESOLUTION NO. 03-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DENYING AN APPEAL OF THE PLANNING COMMISSION'S DECISION TO DENY PA02-0223, A MINOR CONDITIONAL USE PERMIT TO UPGRADE THE CURRENT ALCOHOL BEVERAGE CONTROL (ABC) LICENSE FROM A TYPE 20 (OFF SALE BEER AND WINE LICENSE) TO A TYPE 21 (OFF-SALE GENERAL LICENSE) LOCATED IN THE MORAGA PLAZA AT 29762 RANCHO CALIFORNIA ROAD ON THE NORTH SIDE OF RANCHO CALIFORNIA ROAD, BETWEEN LYNDIE LANE AND MORAGA ROAD KNOWN AS ASSESSOR'S PARCEL NO. APN 921-310-022. Deputy City Manager Thornhill presented the staff report (of record), explaining that this is an appeal by the applicant as a result of the Planning Commission's denial of his request. Mayor Stone opened the pubic hearing at 9:43 P.M. Dr. Sami Jihad, 1673 Avenida Cherylita, El Cajon, spoke in favor of the appeal presenting the fotlowing documents for the City Council's review: · Petition signed by surrounding residents, supporting the upgrade of the ABC License · Census Tract Information · Form per Section 2398.4 for Off Sale, On Sale Beer and Public Premises Licenses (signed by Police Department) · Letter from Temecula Valley Unified School District thanking the Stop Quick Mini Mart for support of the Temecula Elementary School PTA · Proof of Service by Mail to all surrounding residents regarding application for upgrade of ABC License Dr. Jihad request that small businesses be given the same consideration as large supermarkets with regard to alcohol sales; stressed the convenience issue by stating that surrounding residents may walk across the street to purchase alcohol instead of driving to the supermarket; and asked that the City Council grant the appeal. R:\Minutes\012803 10 Mayor Stone closed the public hearing at 9:53 P.M. Mayor Pro Tem Naggar spoke against the appeal, stating that, in his opinion, this does not represent a finding of convenience and necessity. Councilman Pratt disagreed, stating that, in his opinion, this does make a finding for convenience and necessity, since surrounding residents can walk to this store, instead of driving to the supermarket. Mr. Pratt voiced his support of small businesses and argued in favor of the appeal. Councilman Roberts spoke against the appeal, stating that with his background in law enforcement, he cannot support any further upgraded alcohol licenses. For the following reasons, Mayor Stone spoke in defense of Mr. Jihad's appeal: · That this application was approved by the Temecula Police Department; · That Dr. Jihad's store has never been cited under the ERACIT Program, whereby minor's are found purchasing alcohol; · That this store is convenient to surrounding residents, which will keep them out of their cars while consuming alcohol; · That small businesses should have the same consideration of large supermarkets, where these alcohol licenses are not questioned. MOTION: Councilman Pratt moved to approve the appeal. The motion was seconded by Mayor Stone and voice vote reflected denial of the motion with Mayor Pro Tem Naggar, Councilmembers Comerchero and Roberts voting in opposition of the motion and Mayor Stone and Councilman Pratt voting in support of the motion. (This motion ultimately failed.) MOTION: Councilman Naggar moved to approve staff recommendations 16.1, 16.2, and 16.3. The motion was seconded by Councilman Comerchero and roll call vote reflected approval with the exception of Mayor Stone and Councilman Pratt who opposed. 17 Issuance of Bonds by the California Statewide Communities Development Authority for the Corporation for Better Housinq Senior Housin,q Project RECOMMENDATION: 17.1 Adopt a resolution entitled: RESOLUTION NO. 03-11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY R:\Minutes\012803 11 17.2 Adopt a resolution entitled: RESOLUTION NO. 03-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING, AUTHORIZING, AND DIRECTING EXECUTION OF AN AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY Redevelopment Director John Meyer presented the staff report (of record). Mayor Stone opened the public hearing at 9:55 P.M. Hearing no requests to speak, Mayor Stone closed the public hearing at 9:55 P.M. MOTION: Mayor Pro Tem Naggar moved to approve staff recommendations 17.1 and 17.2. The motion was seconded by Councilman Roberts and voice vote reflected unanimous approval. COUNCIL BUSINESS 18 Consideration of adoption of Resolution of Necessity for the Acquisition in Eminent Domain of property for street improvements and for temporary construction easements in connection with the Diaz Road Realiqnment Proiect - Proiect No. PW95-27 (APN 921- 040-028) - Morter Property (Continued from the January 14, 2003, City Council meeting.) RECOMMENDATION: 18.1 Open and conduct a hearing on the adoption of the proposed Resolution of Necessity, receive from staff the evidence stated and referred to in this Report, take testimony from any person wishing to be heard on issues A, B, C and D below, and consider all the evidence to determine whether to adopt the proposed Resolution, which requires a unanimous or 4/5ths vote; 18.2 If the City Council finds, based upon the evidence contained in and referred to in this Report, the testimony and comments received in this hearing, that the evidence warrants the necessary findings with respect to the proposed Resolution of Necessity, then the staff recommends that the City Council, in the exercise of its discretion, adopt proposed Resolution No. 03- (which requires a 4/5ths vote of the entire Council) and authorize that an eminent domain proceeding be filed to acquire Certain Property Interests ("Subject Property Interest") in the real property consisting of a fee simple as well as a temporary construction easement interest in a portion of the real property commonly known as Assessor's Parcel No. 921-040-028 and more fully described in the attached Exhibits. Specifically, the legal description of the acquisition of the fee simple interest sought to be acquired on portions of the real property identified as Assessor's Parcel Number 921-040-028 is attached as Exhibit "A" and depicted on the map attached as Exhibit "B". The legal description of the acquisition of the temporary construction easement interest is attached as Exhibit "A-I" and depicted on map. attached as Exhibits "B-I" and "C"; 18.3 Adopt a resolution entitled: R:\Minutes\012803 12 RESOLUTION NO. 03- A RESOLUTION' OF NECESSITY OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE AGQUISlTION THEREOF, IN CONNECTION WITH THE PROPOSED DIAZ ROAD REALIGNMENT PROJECT 18.4 As a resolution, if approved, approve a warrant payable to the Clerk of the Court, Riverside County in the amount of $129,190.00 for deposit in court to obtain an order of possession of the Jerry R. Morter and Linda C. Morter property interests; 18.5 Authorize the City Manager to execute all necessary documents. MOTION: Mayor Pro Tern Naggar moved to continue Item No. 18 to the meeting of February 25, 2003. The motion was seconded by Councilman Pratt and voice vote reflected unanimous approval. 19 Consideration of adoption of Resolution of Necessity for the Acquisition in Eminent Domain of property for street improvements and for temporary construction easements in connection with the Diaz Road Realiqnment Project - Project No. PW95-27 (APN 921- 020-039) - Massie Property (Continued from the January 14, 2003, City Council Meeting) RECOMMENDATION: 19.1 Open and conduct a hearing on the adoption of the proposed Resolution of Necessity, receive from staff the evidence stated and referred to in this Report, take testimony from any person wishing to be heard on issues A, B, C and D below, and consider all the evidence to determine whether to adopt the proposed Resolution, which requires a unanimous or 4/5ths vote; 19.2 If the City Council finds, based upon the evidence contained in and referred to in this Report, the testimony and comments received in this hearing, that the evidence warrants the necessary findings with respect to the proposed Resolution of 'Necessity, then the staff recommends that the City Council, in the exercise of its discretion, adopt proposed Resolution No. 03- (which requires a 4/5ths vote of the entire Council) and authorize that an eminent domain proceeding be filed to acquire Certain Property Interests ("Subject Property Interest") in the real property consisting of a fee simple as well as a temporary construction easement interest in a portion of the real property commonly known as Assessor's Parcel No. 921-020-039 and more fully described in the attached Exhibits. Specifically, the legal description of the acquisition of the fee simple interest sought to be acquired on portions of the real property identified as Assessor's Parcel Number 921-020-039 is attached as Exhibit "A" and depicted on the map attached as Exhibit "B". The legal description of the acquisition of the temporary construction easement interest is attached as Exhibit "A-I" and depicted on maps attached as Exhibits "B-1 ", "C-1" and "C-2"; 19.3 Adopt a resolution entitled: R:\Minutes\012803 13 RESOLUTION NO. 03- A RESOLUTION OF NECESSITY OF THE CITY OF TEMECULA DECLARING CERTAIN REAL PROPERTY NECESSARY FOR PUBLIC PURPOSES AND AUTHORIZING THE ACQUISITION THEREOF, IN CONNECTION WITH THE PROPOSED DIAZ ROAD REALIGNMENT PROJECT 19.4 As a resolution, if approved, approve a warrant payable to the Clerk of the Court, Riverside County in the amount of $5,397.00 for deposit in court to obtain an order of possession of the Wilma M. Massie property interests; 19.5 Authorize the City Manager to execute all necessary documents. MOTION: Councilman Comerchero moved to continue Item No. 18 to the meeting of ~ February 25, 2003. The motion was seconded by Councilman Roberts and voice vote reflected unanimous approval. MOTION: Councilman Roberts moved to extend the City Council Meeting until 10:30 P.M. The motion was seconded by Mayor Pro Tem Naggar and voice vote reflected unanimous approval. 20 Resolution Establishinq a Municipal Utility (At the request of Mayor Pro Tem Naggar and Councilman Comerchero) RECOMMENDATION: 20.1 Adopt a resolution entitled: RESOLUTION NO. 03-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, AUTHORIZING THE CREATION AND OPERATION OF A MUNICIPALLY OWNED UTILITY FOR THE PURPOSE OF PROVIDING VARIOUS UTILITY SERVICES AND AUTHORIZING THE TAKING OF CERTAIN OTHER ACTION IN CONNECTION THEREWITH Reviewing the staff report (of record), Assistant City Manager Jim O'Grady presented the staff report, outlining the recommendations of the Municipal Utility Sub-Committee. Bob de Korne, 5290 Victoria Avenue, Riverside, representing Enco Utility Services, spoke in favor of establishing a municipal utility. Mayor Stone asked Mr. De Korne the following questions: 1) How many cities have you represented in establishing a municipal utility; 2) How does your company earn money; and 3) What insurance is provided that the City will be guaranteed lower rates than currently provided? Answering Mayor Stone's questions, Mr. DeKorne responded his company has two contracts for quasi-municipal districts and are actively negotiating with a number of cities. He explained that their company participates in a revenue sharing process, with the respect to the distribution element of the rate, and that is how revenues are made. When responding to the question of R:\Minutes\012803 14 guaranteed lower rates, Mr. Korne answered that today's open market wholesale rate for energy is approximately one-half of Edison's current rates. In clarifying differences between cities and their structure, Mayor Stone asked if the City of Riverside has a utility tax. Mr. De Korne answered that the City of Riverside does have a utility tax. Councilman Pratt voiced his concern over untried services, and putting vital services at risk. Mayor Pro Tern Naggar made the following points: He is only advocating servicing new infrastructure in the City. There are two different sources of revenue: the distribution fee, and the differentiation of buying power on the open market. Adoption of this resolution obligates the City in no way to form a Municipal Utility, but rather secures the option to do so at a future date. Robert Lopez, 26100 Menifee, Romoland, representing Southern California Edison, requested that as the City explores the feasibility of establishing a municipal utility, that Southern California Edison be allowed to participate in the process to ensure that the process is fair, open, and protects the public interest. Mayor Pro Tern Naggar asked if Edison would still be willing to be involved in the process, even if it means a loss of revenue for Edison. Mr. Lopez responded that he would like to be involved in the review process, because he believes he can show that it not in the City's best interest to establish its own Municipal Utility. Mayor Stone asked Mr. Lopez if the possibility exists that costs could exceed those charged by Edison if the City were to purchase power on the open market. Mr. Lopez responded that the possibility does exists that costs would be higher and also that the City would not be able to procure enough power. Mayor Stone asked what the current franchise fee is from Southern California Edison to the City of Temecula. City Manager Nelson answered it 1% of the gross. Mayor Pro Tem Naggar asked if the creation of a Municipal Utility for new services would jeopardize the 1% franchise fee. Mr. Lopez responded that it would only effect future franchise fees, not current. Mayor Stone expressed his concern regarding reliability of electrical service, and the ability to restore power after high winds, or storm conditions. He stated Edison has the equipment, and an organization with sufficient resources to handle these types of emergencies. Roger Ziemer, 527 N. San Jacinto Street, Hemet, representing Southern California Gas Company, asked the City Council what their intent is in including natural gas in the municipal utility. He expressed he would not be in favor of this action. Clarifying his intent, Councilman Comerchero stated his only purpose as a subcommittee member, is to create the shell for forming a Municipal Utility, thus insuring this opportunity is not lost, due to future legislation. Councilman Roberts voiced his support for forming the shell of the Municipal Utility, but did not support further Council discussions or a workshop at this point. R:\Minutes\012803 15 Councilman Naggar stated the City may be forced to look at this issue on a more serious note, and advocated having a workshop at some future point. Mayor Stone asked City Attorney Thorson if the City takes the action to form the shell of a Municipal Utility, would it be protected from the State Legislature taking action to prevent such an action. City Attorney Thorson answered he could not guarantee the City would be grand- fathered into such an agreement, but stated that the more action that is taken, the better position the City would be in to ensure future rights. Mayor Stone suggested allowing the Sub-committee to monitor the progress of Moreno Valley and the City of Industry, and providb quarterly reports to the City Council addressing the following points: Have they been able to meet the energy needs of their citizens? 2) Have they been able to lower rates? 3) Have they increased the revenue to their City? Mayor Stone emphasized his current support for Southern California Edison for the following reasons: 1) Public safety concerns and Edison's ability to restore power after high winds or other weather related problems, 2) The guarantee that electricity needs will be met. Mayor Pro Tem Naggar emphasized the importance of forming this shell and stated in the future he believes it will be vitat for the City's economic development. MOTION: Councilman Roberts moved to approve staff recommendation 20.1. The motion was seconded by Mayor Pro Tem Naggar and voice vote reflected unanimous approval. MOTION: Councilman Naggar moved to extend the meeting until 11:00 P.M. The motion was seconded by Councilman Comerchero and voice vote reflected unanimous approval. 21 Discussion of Si.qna.qe in Old Town (at the request of Councilman Pratt) RECOMMENDATION: 21.1 Receive and file. Via overheads, Councilman Pratt presented the staff report, outlining his suggestions for assisting businesses located on the side streets of Old Town, where visibility is an issue. MOTION: Councilman Pratt moved to direct staff to prepare signs in accordance with specifications presented, at a cost of $50 per business, placed at each corner where side street businesses are located. Councilman Comerchero seconded the motion for discussion purposes. Although not opposed to the design proposed for additional signage, Councilman Comerchero expressed concerns over legal issues regarding signage and the possibility of leaving the City vulnerable in regards to billboards and other off-site signs. Councilman Roberts voiced his support for the program and exploring how this could be implemented. Mayor Stone expressed concern that if exceptions were made for businesses in Old Town, that businesses Citywide would request the same consideration. R:\Minutes\012803 16 Councilman Naggar asked if there is special zoning in Old Town that would apply to signage issues. Responding to Councilman Naggar's question, Deputy City Manager Thornhill stated that the Old Town Specific Plan. He explained that regulations could be tailored to Old Town that do not apply Citywide. He suggested that issue be investigated to list merits, as well as long-term consequences. MOTION: Councilman Pratt moved to extend the meeting until 11:30 P.M. Councilman Roberts seconded the motion and voice vote reflected unanimous approval. MOTION: Councilman Pratt amended his motion to direct staff to provide a list of pros and cons regarding special signage for Old Town and bring back at a subsequent meeting for Council consideration. Councilman Comemhero amended his second and voice vote reflected unanimous approval. 22 Impact of the Governor's Proposed State Budqet Reductions on the City of Temecula RECOMMENDATION: 22.1 Receive and file. City Manager Nelson provided an overview of the staff report. (of record) He reported the greatest impacts to the City would potentially be in the following areas: Vehicle License Fee Backfill; Booking Fee Reimbursements; Mandated Cost Deferral, Redevelopment Tax Shift; RDA Low/Mod Housing Fund; and the Traffic Congestion Relief Fund. He reported that financially the City of Temecula is sound, with ten million in reserves, and two million in undesignated fund balance. He emphasized the City of Temecula will continue to monitor the State budget process, but feels confident that the same level of services will be able to be provided to the citizens of Temecula, without impacting reserve funds. Mayor Stone assured the public that the Council is not in support of raising taxes, and with the ten million dollars in reserve, the City is prepared to "weather the storm." DEPARTMENTAL REPORTS No additional comments. CITY MANAGER'S REPORT No additional input. CITY A'I-rORNEY'S REPORT With regard to Closed Session, City Attorney Thorson noted that there were no reportable actions to report under the provision of the Brown Act. R:\Minutes\012803 17 ADJOURNMENT At 11:32 P.M., the City Council meeting was formally adjourned to Tuesday~ February 11, 2003, at 7:00 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. ATT.EST: Su§an V~. Jon~e~, CMC City"Cie [SEALi"--. ~- ~ ~'~ ~ (_.~Jeffrey-'~'-~. Stone, Mayor R:\Minutes\012803 18