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Home My WebLink About1995-04-10MINUTES 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