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05/12/2005 J CITY OF GRAND TERRACE CITY COUNCIL MINUTES REGULAR MEETING-MAY 12. 2005 A regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers,Grand Terrace Civic Center,22795 Barton Road,Grand Terrace,California,on May 12, 2005, at 4:00 p.m. PRESENT: Maryetta Ferr6, Mayor Herman Hilkey, Councilmember Lee Ann Garcia, Councilmember Jim Miller, Councilmember Tom Schwab, City Manager Brenda Stanfill, City Clerk Steve Berry, Assistant City Manager Larry Ronnow, Finance Director Jerry Glander,Building & Safety Director Gary Koontz, Community Development Director John Harper, City Attorney Lt. Hector Guerra, Sheriff's Department ABSENT: Bea Cortes, Mayor Pro Tern CONVENE COMMUNITY REDEVELOPMENT AGENCY AND CITY COUNCIL MEETING AT 4:00 P.M. REVIEW THE PROPOSED FY 2005-2006 CRA/CITY COUNCIL BUDGET Finance Director Larry Ronnow. gave a presentation on the proposed FY 2005-2006 CRA/City Council Budget. The Agency/Council reviewed the FY 2005-2006 CRA/City Council Budget. Anita McGauQhev, 46 N. Portola, Laguna Beach, indicated that she does the leasing in the Stater Bros. shopping center in Grand Terrace and has for 20 years. She asked the following questions: How much the bond indebtedness is under the 20 years in term,over 30 years,over 40 years. In light of the Town Center development moving forward with just a covenant to open, whereas,the tenants could be open for one day how can you be sure that that is going to pay the bonds when they only have to open for one day. Stated that most of the cities that she has worked in require the developer to provide all of Council Minutes May 12,2005 Page 2 the street improvements curbs, gutters, all of the construction loans have off site line items that the bank gives them and feels that there is no reason the City should take on a risk. She expressed her concern with paving Barton Road then ripping it up for the waterline project. She questioned if the City Budget included the 5.8 million from the sale of the land to the developer and was there an appraisal done for that land. She questioned if there are any real estate taxes on the CRA parcels during construction or redevelopment. How do you get$600,000.00 a year sales tax revenue from the Town Center if you are just moving stores from one location in town to another. Is the CRA in compliance with Housing Code Section 33302, 33445, 33333.6, 33431 and 33433. Citv Manager Schwab, indicated that the City has just recently refinanced the debt in September of last year and all of the debt in under 20 years. He stated that the covenants that are done these days with shopping centers are that they basically agree to open and operate a grocery store . Stater Bros. won't sign an operating covenant that says that they will stay open 10 or 20 years they just guarantee to build and open that store. The Redevelopment Agency has no risk, they have nothing invested in this project. Jacobson Development will build the entire project. The Agency has no contribution to this project and all of the off- sites will be done by the developer when the project is developed. He indicated that there are no plans on re-paving Barton Road except for patching as necessary. He stated that the waterline proj ect doesn't go down below Mt.Vernon. He stated that the City owns 4 parcels that the City is currently in agreement to sell to Jacobson Development. An appraisal was done for those parcels at$7.50 per square foot,which is in line for what the other parcels are going for. The only land that has been sold is 1 parcel to the school district which was approximately 3.4 million dollars for the high school and the 4 parcels for 1.7 million dollars to Jacobson for the Town Square Project. He stated that the Developer will be paying real estate taxes when the property is reassessed. He stated that he doesn't have the Housing Code Sections available at the moment,however,he would be happy to research it and meet with Ms. McGaughey regarding the codes. Mayor Ferr6 temporarily adjourned the CRA/City Council Meeting at 5:40 p.m. Mayor Ferr6 Re-convened the City Council Meeting at 6:00 P.M. The City Council meeting was opened with Invocation by Pastor Rick Doucette,Calvary The Brook Council Minutes May 12,2005 Page 3 Church followed by the Pledge of Allegiance led by Councilmember Jim Miller. ITEMS TO DELETE City Manager Schwab indicated that they would be deleting item 8C. Street Cut Policy and that it will be brought back to Council once staff has had the opportunity to meet with The Gas Co. and Southern California Edison. SPECIAL PRESENTATIONS A. Proclamation-Water Awareness Month-May 2005 Councilmember Hilkey read a Proclamation proclaiming May 2005 as Water Awareness Month in the City of Grand Terrace and urge all citizens to be responsible.water users and protectors. Mayor Ferre presented Don Hough, Riverside Highland Water Company, with the Proclamation. Don Hough, Riverside Highland Water Company, thanked the Council on behalf of Riverside Highland Water Company for the proclamation and for the opportunity to remind everyone of water conservation. B. Water Awareness Poster Contest Winners - Terrace View Elementary Brian Butler,Principal Terrace View Elementary School,thanked the Council for allowing them to be at the meeting and appreciates the partnership that Terrace View has with Riverside Highland Water Company. He introduced the winners of the contest to the Council and had them show the Council their posters. CONSENT CALENDAR CC-2005-44 MOTION BY COUNCILMEMBER GARCIA,SECOND BY COUNCILMEMBER MILLER, CARRIED 5-0, to approve the following consent calendar items: 3A. Approve Check Register Dated May 12, 2005 3B. Ratify 05-12-2005 CRA Action 3C. Waive Full Reading of Ordinances on Agenda 3D. Approval of 04-28-2005 Minutes 3E. Award of Construction Bid for Grand Terrace Corporate Yard PUBLIC COMMENT Council Minutes May 12,2005 Page 4 Barnev Barnett, 474 Prospect, Highgrove, invited everyone to participate in Highgrove Day on May 21, 2005. He stated that there are a lot of activities that are planned for that day and encouraged everyone to attend. Anita McGau6ev.46 N.Portola,questioned which parcel of land is going to be used for the monument signage along the freeway and what is the cost of this signage for the development. Jeffrev McConnell,21758 Walnut Avenue,reminded everyone that the Chamberwill be holding their luncheon on Tuesday,May 17. The speaker will do a presentation on National Security. Laura Austin, 12356 Michigan, indicated that she has lived on Michigan for twenty years and stated that there is a severe traffic problem on Michigan and is disappointed that the City has not done anything to solve the problem. She stated that the City has given a Conditional Usage Permit to the Water Company to purchase a residential 2.4 acres on Michigan between two residential homes one being hers. She stated that the residents were not notified and expressed her frustration. Barnev Karcer, 11668 Bernardo Way, stated that he spoke to City Manager Schwab regarding an article that was in the Grand Terrace City News on the sale of the property to the school district and congratulated the City Manager on doing a good j ob in that transaction. He stated that the Agency is looking at purchasing two homes on DeBerry Street and questioned if they were open for public bid. He questioned what ratifying 05-12-2005 CRA Action means. Bill Hays, 22114 DeBerry Street, stated that the Redevelopment Agency issued 13 million dollars in tax allocation bonds in November of last year, then in April the City or the Agency purchased 3 million in government securities. He questioned what interest rate is being paid on the 13 million and what interest rate is being received on the 3 million. He stated that on the vouchers you can't tell where Redevelopment money ends and the General Funds begin. He stated that 8 million dollars will be given to the developers for the Senior Center and 3 million are in government securities and we just received 13 million,however, there is no way to tell where this money is coming from. Citv Manager Schwab, stated that the developer is looking at potential sites on the freeway,however, a site has not been chosen at this time. The Agency will not pay for any of the costs for that sign. Riverside Highland Water has no Conditional Use Permit at this time and will go before the Planning Commission if an application is received. He thanked Mr. Karger for the land sale comments. He stated that there is only one house on DeBerry, the other property is a vacant parcel of which both Council Minutes May 12,2005 Page 5 have been available for sale to anyone. They have been listed with the Multiple Listing Service for some time. The City Council is going to consider helping Mr. Dodson because of the zoning of the property. He stated that the 13 million dollar in bonds that was refinanced last year have multiple interest rates, depending on the length of each bond and that the Council does get a quarterly report. He also stated that the City is purchasing government bonds and the going rate is hovering around 4%. The amount of money that we are proposing to contribute 9 million toward the Senior Housing Project. ORAL REPORTS 5A. Committee Reports 1. Historical and Cultural Activities Committee a. Minutes of 04-04-2005 CC-2005-45 MOTION BY COUNCILMEMBER GARCIA,SECOND BY COUNCILMEMBER HILKEY, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT),to accept the April 4, 2005 Minutes of the Historical and Cultural Activities Committee. b. Appoint Member to Historical & Cultural Activities Committee - Ybarra CC-2005-46 MOTION BY COUNCILMEMBER HILKEY,SECOND BY COUNCILMEMBER MILLER, CARRIED 4-0-1-0 (MAYOR PO TEM CORTES WAS ABSENT), to appoint Gloria Ybarra to fill a vacancy on the Historical and Cultural Activities Committee with a term continuing to June 30, 2006. 2. Emergency Operations Committee a. Minutes of 04-05-2005 CC-2005-47 MOTION BY COUNCILMEMBER MILLER,SECOND BY COUNCILMEMBER GARCIA, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT)to accept the April 5, 2005 Minutes of the Emergency Operations Committee. COUNCIL REPORTS Councilmember Hilkev,stated that there is aproposal before the Colton Planning Committee to add 247 units to the property that butts up against the North East side of Grand Terrace. He suggested that those residents that live along that portion of town that would like the zoning to remain the same to get involved with this group of citizens. Council Minutes May 12,2005 Page 6 Councilmember Garcia, would like to see a write up on the Poster Contest Winner in the Blue Mountain Outlook. She stated that there are so many things that go on,on a daily basis and questioned what is the best way to get information on what is going on. Citv Manager Schwab, stated that most development requires review by the Planning Commission or the City Council. There are few things that can be done over the counter. Councilmember Garcia, questioned her request for doing a study on large traffic on Michigan. Citv Manager Schwab, stated that staff will be doing that study sometime before the end of the year. We need to figure out a way to discourage traffic down Michigan. Councilmember Garcia, encouraged residents to attend the Highgrove Day on May 21. She questioned if there is a joint meeting with the school district planned. Citv Manager Schwab, stated that there is no date scheduled yet. Councilmember Miller, commended staff for removing the trash off of the hill. He stated that he attended the Foundation event along with the Mayor and Mayor Pro Tem. There was a great turnout. The main topic of discussion was a dog park. Mavor Ferr6, she reported that the City will be giving out free compost on May 13 and 14 to residents at the Grand Terrace Senior Center. She attended the ground breaking ceremony for the SAVON along with Mayor Pro Tem Cortes and Councilman Miller. She stated that there is always a safety tip of the month in the Blue Mountain Outlook that is given by the Sheriff's SSSO. PUBLIC HEARING 6A. Ordinance - Specific Plan SP-04-01-Al and E-05-10 to Amend the Outdoor Adventures Center Specific Plan to Remove Approximately 7.8 Acres Located at the Northwest Corner of Pico Street and Taylor Street Communitv and Economic Development Director Gary Koontz, stated that the AES Corportation (dba Riverside Canal Power Company) has submitted an application for an amendment to SP-04-01 (the Outdoor Adventures Center Specific Plan) to remove approximately 7.8 acres of the Specific Plan's Planning Area 6 and return it to its original M-2 Industrial zoning. The request had been made as part of AES's effort to evaluate the potential to permit a 300 megawatt natural gas powered peaker plant. AES currently owns the old Highgrove Generating Station formerly owned by Southern California Edison. They wish to consider this 7.8 acre parcel as an alternative to siting the new power plant at their Council Minutes May 12,2005 Page 7 existing site. Removal of the site from the PAC Specific Plan will allow this site and the existing power plant site to be analyzed under identical zoning conditions which will allow for more equitable evaluation. In the event that the CEC issues a permit for a power plant on this site,the property will be swapped for all-or a portion of the existing power plant site once demolition of the old facility is complete and it has been certified as environmentally clean and free of any hazardous materials. It is staff recommendation that the City Council approve proposed Specific Plan Amendment SP-04-01-Al and its accompanying environmental assessment E-05-10. He stated that the subject property is currently owned by the Community Redevelopment Agency. Councilmember Miller,questioned what staff s plan is for the property of the proposed land swap. Communitv and Economic Development Director Koontz,responded that they are thinking a commercial or mixed industrial type use that is compatible with the Outdoors Adventure Center and the high school. Councilmember Miller, questioned if there would be any electrical problems during peak times that would create any problems with the new high school. Julie Wav,AES,responded that she in unaware of any problems that could arise because of the location of the plant. Councilmember Miller, questioned if Taylor was going to be redone when the high school is built. Communitv and Economic Development Director Koontz, responded that the street improvements will be part of the Outdoor Adventures Center. That is one of the primary access points that ties into commerce way. Julie Way. stated that there will not be any type of negative traffic impact due to the facility and the fuel for the facility will be natural gas that will be transported to the site by pipeline. Councilmember Miller, questioned how they were planning to bring the gas line in. Julie Wav, stated that they have spoken to Southern California Gas Co. and that they are looking at different ways of bringing in those lines. Councilmember Garcia, questioned if the City will maintain local control through the process. Julie Wav, stated that the CEC is good about receiving public comment and addressing any Council Minutes, May 12,2005 Page 8 issues that the City or residents may have. Councilmember Garcia, requested information on AES. Julie Wav, stated that they are a power company, there have generation plants and distribution plants in 14 countries in the world. They have between 30 and 40 thousand employees and they also own and operate about 25% of generation in Southern California. They have been here since 1998. Councilmember Garcia, questioned how involved AES is in the communities that they are in. Julie Wav, stated that AES's plants are in Huntington Beach, Redondo Beach and Long Beach. They seek to be very involved in community affairs. Councilmember Hilkev, questioned how many generators they are proposing Julie Wav, responded that they are proposing 3 gas turbon generators. Councilmember Hilkev. stated that this is right in the middle of two very important projects for Grand Terrace one being the High School and the other the retail center. He has only seen two generating stations like this. He feels that these types of plants are an eye sore. He stated that he is not for a project that would be such an eye sore. He would like to see horizontal pictures of what this project will look like and he feels that we should table this until we can get a visual of the project Communitv and Economic Development Director, stated that the only item that are considering is taking 7.8 acres out of the OAC and putting it back into the M-2 zone. That is the first step to allowing AES to even consider going for the CEC process. Once the process is started we will be given the opportunity to review the studies. This is just the first step in allowing the process to start. Citv Manager Schwab, stated that staffs recommendation is a better site and further away from the high school. If we don't allow for this they can put it at the current site,which is closer to the high school. Mavor Ferre. questioned if the peaker plant will happen one way or the other. Community and Economic Development Director Koontz, stated that they will still have to go through the CEC process and if they give them a permit it will happen. Citv Attomev Hamer. stated that this is a permitted use and that we could condition the Council Minutes May 12,2005 Page 9 project, we can't deny it. Communitv and Economic Development Director Koontz,stated that he will make sure that this project completely blends with the OAC. Councilmember Hilkev. stated that he doesn't have faith in the CEC process and expressed his concerns with the project. Julie Wav, stated that the CEC process is very stringent and thorough. Councilmember Miller, questioned the time line on a project like this. Julie Wav, responded that it takes 3 to 4 months to prepare an application packet, once an application is filed there is a 45 minimum day review period and if they deem the project data adequate and the 1 year statutory review process begins. The typical amount of time for the CEC is twelve months, the average time is 15 months. Councilmember Miller, stated that the only reason why they are looking at the alternative piece of property is because staff recommended it or do they need locations in California. Julie Way. stated that the answer is yes to both of those questions. She supports staff s recommendation to swap the properties, however, part of the CEC process is to evaluate alternative sites and as part of their application they will be presenting other locations that they are considering. Councilmember Miller, questioned where they are in the process of the drawings of the location and proposed project. Julie Wav, stated that it would take her a couple days to provide the drawings. Mayor Ferre opened the public hearing. Jeffrev McConnell, 21758 Walnut, questioned if there were alternate sites in another town. Julie Way.the advantages of building on the tank site is that it is already a disturbed site and has been used for power plant activity in the past and it is preferable for everybody not to not disturb a pristine site for this use when one is available. Another advantage is that it is close to the substation. They are focusing on alternate sites that would allow them to meet two criteria one being allow them to use the substation positions and the other is focusing on sites that have already been disturbed. Mayor Ferre closed the public hearing and returned discussion to the Council. Council Minutes May 12,2005 Page 10 Community and Economic Develop_ment Director,stated that the current site can be used and the City doesn't want that. Councilmember Miller, requested that staff show Council examples of other power plants similar to the one that would be proposed. Mavor Ferr6, stated that she does not want a peaker plant built on the property across from the high school. CC-2005-48 MOTIONBY COUNCILMEMBERHILKEY,SECOND BY COUNCILMEMBER MILLER, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT), to continue the Public Hearing -Ordinance- Specific Plan SP-04-01-Al and E-05-10 to Amend the Outdoor Adventures Center Specific Plan to Remove Approximately 7.8 Acres Located at the Northwest Corner of Pico Street and Taylor Street to May 26, 2005. UNFINISHED BUSINESS -None NEW BUSINESS 8A. HVAC Maintenance Agreement-Honeywell CC-2005-49 MOTIONBY COUNCILMEMBERMILLER,SECOND BY COUNCILMEMBER HILKEY,CARRIED 3-1-1-0(MAYOR FERRE VOTED NO AND MAYOR PRO TEM CORTES WAS ABSENT), to continue this item for a month and request that staff provide a competitive bid to compare to Honeywell's bid. 8B. Rules of Procedures for Council Meetings Bill Hays, 22114 DeBerry, stated that he feels that having an Ad Hoc committee is a good idea, however, he would like to see members of the community also be included on the committee. He would like to hear a synopsis on the Ordinances that are being passed. CC-2005-50 MOTION BY COUNCILMEMBER MILLER, SECOND BY MAYOR FERRE, CARRIED 4-0-1-0 (MAYOR PRO TEM CORTES WAS ABSENT), to create an Ad Hoc Committee to review the Rules of Procedures for Council Meetings and to appoint Councilmember Lee Ann Garcia and Councilmember Herman Hilkey to the committee and whichever staff members the City Manager would like to appoint. CLOSED SESSION -None Mayor Ferr6 adjourned the meeting at 8:55 p.m.until the next CRA/City Council Meeting which is scheduled to be held on Thursday, May 26, 2005 at 6:00 p.m. Council Minutes May 12,2005 Page 11 CITY CLERK of the City o6brand Terrace MAYOr the City of Grand Terrace