HomeMy WebLinkAbout1995-04-10MINUTES
CITY COUNCIUREDEVELOPMENT AGENCY
Room B-8, Civic Center
Huntington Beach, California
Monday, April 10, 1995
Mayor Leipzig called the adjourned regular meeting of the City Council/Redevelopment Agency to
order at 5:00 p.m. in Room B-8, Civic Center.
CITY COUNCIL/REDEVELOPMENT AGENCY ROLL CALL
PRESENT: Harman, Bauer, Sullivan, Leipzig, Dettloff, Garofalo
ABSENT: Green
RECESS
The Mayor called a recess of the City Council and Redevelopment Agency at 5:05 p.m
CLOSED SESSION
The Mayor called a recess of the City Council and Redevelopment Agency for the purpose of
considering the following Closed Session items:
Closed Session - City Council pursuant to Government Code Section 54957.6 to meet with its
designated representatives William Osness, Personnel Director, and Daniel Cassidy, Esquire,
Liebert, Cassidy and Frierson regarding Labor Relations Matters - Meet and Confer regarding the
following employee organizations: Marine Safety Officers Association (MSOA), Police Officers
Association (POA), Police Management Association (PMA), Municipal Employees Association
(MEA), Municipal Employees Organization (MEO), Huntington Beach Firemens' Association
(HBFA), Surf City Lifeguard Employees Association (SCLEA). (120.80)
Closed Session - City Council pursuant to Government Code Section 54956.9(a) to confer with its
attorney regarding pending litigation which has been initiated formally and to which the city is a
party. The title of the litigation is regarding Orange County; U. S. Bankruptcy Court Case No. SA-
94-22272 JR administratively consolidated with Case No. SA-94-22273 JR. (120.80)
RECONVENE
The Mayor reconvened the meetings of the City Council and Redevelopment Agency in the
Council Chamber at 6:30 p.m.
A videotape recording of this meeting
is on file in the Office of the City Clerk
176
Page 2 - Council/Agency Minutes - 04/10195
CITY COUNCUREDEVELOPMENT AGENCY ROLL CALL
PRESENT: Harman, Bauer, Sullivan, Leipzig, Dettloff, Green, Garofalo
ABSENT: None
ORANGE COUNTY BANKRUPTCY SETTLEMENT AGREEMENT PRESENTATION
_PRICE WATERHOUSE - SAYBROOK CAPITAL, PILLSBU_ RY, MADISON, SUTRO
(3 to. l p)
The City Administrator informed Council that representatives from Pillsbury, Madison, Sutro
(Patrick Shea); Saybrook Capital (Jon Schotz and Rebecca Casey); and Price Waterhouse
(Freddie Reiss) were in attendance to make a presentation to the City Council.
Patrick Shea, Pillsbury, Madison, Sutro, reported on his capacity as an independent counsel on
behalf of the trustee. He reviewed his firm's role in the bankruptcy. He spoke regarding his
opinion of the City of Huntington Beach position and the manner in which the proposed
Settlement Agreement was crafted; its concept and intent. He described the three options
available - Option A - Option B and the Option of No Plan.
Freddie Reiss, Price Waterhouse, presented a slide report and reviewed matters pertaining to the
three options. He spoke regarding the Settlement Terms.
Jon Schatz, Saybrook Capital, reviewed different issues regarding the options.
Mr. Reiss, Price Waterhouse, reviewed provisions of the proposed Settlement Agreement.
Councilmember Garofalo questioned the compelling need for giving up rights under Option A and
Mr. Reiss responded.
Councilmember Garofalo stated his concerns.
Councilmember Harman requested that Mr. Shea analyze Page 29.
Mr. Shea clarified the "Trust Theory."
Councilmember Harman requested clarification regarding the two lawsuits against Merrill Lynch;
the one by the county and the one by the city relative to separate litigation, or consolidated
litigation.
Councilmember Bauer stated his concerns relative to Mr. Bennett's role.
Mr. Shea commented on provisions of a Chapter 9 bankruptcy.
Mr. Reiss addressed Council regarding the reasons why Option A and Option B were crafted.
Discussion was held regarding the county's position if the sales tax is not passed by the
electorate.
177 Councilmember Sullivan presented questions regarding accounting.
Page 3 - Council/Agency Minutes - 04/10/95
Mr. Reiss responded.
Councilmember Dettloff questioned the time schedule and discussion was held.
Mayor Leipzig questioned if there were anything that could delay and Mr. Shea responded that it
was the Huntington Beach case asking the court to delay. Mayor Leipzig asked what will happen
to funds if Option C is chosen and Mr. Shea responded. He presented reasons against delay.
Mr. Reiss explained why he agreed with Mr. Shea's position.
Mr. Schotz, stated that the emergency funding that people can get their money through ends at
the end of the month.
Mr. Shea stated that it must be considered - at what point would Council have enough
information? He stated that perhaps it could be one or two ears according to cases he has
experienced and that not all information would be helpful.
The City administrator requested clarification of time frames for Option A and B and the
questioned what Mr_ Shea anticipated in terms of litigation fees and recovery time.
Mr. Shea answered stating his opinion regarding the procedures by which the claims would be
litigated.
John Poppin, representing the firm of Poppin and Shier, outside legal counsel, referred to Section
7B and questioned Mr. Shea relative to certain provisions. Discussion was held regarding
administrative claim provisions. Mr. Poppin presented questions to Mr. Shea and the other
attendees.
ANNOUNCEMENT_ BY CITY CLERK OF LATE COMMUNICATIONS
The City Clerk announced that a Memorandum from the City Administrator to the City
Councilmembers titled Orange County Bankruptcy dated April 7, 1995 was available to the public
pursuant to the Brown Act. Also available, a copy of the Settlement Agreement Slide
Presentation by Mr.... Reiss, representing Price Waterhouse and the Settlement Agreement
RECESS - RECONVENE CITY COUNCIUREDEVELOPMENT AGENCY
Mayor Leipzig called a recess of the City Council Redevelopment Agency meeting at 9:00 p.m.
The Mayor reconvened the regular meeting of the City Council - Redevelopment Agency at 9:40
p.m. in the Council Chamber.
178
Page 4 - Council/Agency Minutes - 04/10/95
SETTLEMENT AGREEMENT OPTION B EXERCISED - ORANGE COUNTY BANKRUPTCY
SETTLEMENT AGREEMENT (31o. ICE)
A motion was made by Harman, second Sullivan, that the City of Huntington Beach exercise its
options under Alternative B with regard to the Orange County Proposed Settlement Agreement
and authorize the Mayor and City Clerk to execute same. Motion carried unanimous.
PLEA TO JUDGE RYAN REGARDING NEEDS OF POOL PARTICIPANTS - ORANGE COUNTY
BANKRUPTCY SETTLEMENT AGREEMENT (310.10)
A motion was made by Garofalo, second Sullivan, that the City Council with the City Attorney's
permission, plead to Judge Ryan that the city is very sensitive to the needs of all the pool
participants for a rapid settlement and would plead not to delay the proposed settlement timetable
but to strongly impose the requirement on the debtor for full disclosure as soon as possible.
Motion carried unanimously.
The City Administrator did not attend the Closed Session regarding Merrill Lynch
Entered On The Record - City Administrator Not In Attendance In Closed Session No. 2
The City Administrator informed the City Clerk and requested it be put in the record that he did
not attend Closed Session No. 2 as he had requested an opinion of the City Attorney regarding
any potential conflict of interest due to his son's employment with the firm of Merrill Lynch.
ADJOURNMENT - CITY COUNCIUREDEVELOPMENT AGENCY
The Mayor adjourned the regular meetings of the City Council and the Redevelopment Agency of
the City of Huntington Beach.
ATTEST:
s
City ClerklClerk
179
Clerk of the Redevelopment Agency and City
Clerk and ex-officio Clerk of the City Council
of the City of Huntington Beach, California
r�J
A�`
Mayor/Chairman