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Home My WebLink About1995-08-30MINUTES CITY COUNCIUREDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH Adjourned Regular Meeting 5.30 P.M. - Room B-7 and B-8 Civic Center, Huntington Beach Wednesday, August 30, 1995 Call To Order Mayor Leipzig called the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 5:30 p.m. in Room B-7 and B-8. City Council/Redevelopment Agency „Roll Call: PRESENT: Harman, Bauer, Leipzig, Dettloff, Green, (Garofalo 5:32 p.m.), (Sullivan 5:35 p.m.) ABSENT: None Recess - Closed Session The Mayor called a recess of the City Council and Redevelopment Agency to consider the following closed session issues: Closed Session - Redevelopment Agency pursuant to Government Code Section 54956.8 to give instructions to the Agency's Negotiator, Ray Silver, regarding negotiations with Waterfront Construction No. 1 concerning the purchase/sale/exchange/lease of the property located at the Waterfront Hilton Hotel. Instructions will concern: price and terms of payment. (400.50) 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. 1 SA 94-22272 JR Administratively Consolidated with Case No. SA-94-22273 JR. (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 City of Huntington Beach v. Merrill Lynch Pierce Fenner and Smith, Inc. et al. United States District Court Case No. SACV95-189 LHM(EEX). (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 Joint agreement of the County of Orange official investment pool participants' committee and each Option A pool participant for resolution of all claims against the County of Orange. (120.80) 454 Page 2 - City Council/Redevelopment Agency Minutes - 08/30/95 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, Police Officers Association, Police Management Association, Municipal Employees Association, Management Employees Organization, Huntington Beach Firefighters Association, and Surf City Lifeguard Employees Association. (120,80) Reconvene The Mayor reconvened the adjourned regular meetings of the City Council and Redevelopment Agency meeting. A audio tape recording of this meeting is on file in the Office of the City Clerk Items Continued From The Council/Agency Meeting Held August 28, 1995 (City Council/Redevelopment Agency) Acceptance of Pacific View Avenue Street Dedication Waterfront Hilton Hotel Pursuant to Waterfront Disposition and Development Agreement/ Development Agreement - Robert Mayer- License Agreement - Reciprocal Fire Lane Easement - Estoppel Certificate Agreement - Approved (310.10) The Council considered a communication from the City Attorney transmitting a request to accept the Pacific View Avenue street dedication (quitclaim deed only) pursuant to the relevant Disposition and Development Agreement and Development Agreement and regarding a Reciprocal Easement Agreement for fire lane access in connection with the Waterfront Hilton Hotel. A communication was distributed to the City Council from Arthur De La Loza, Deputy City Attorney, dated August 30, 1995 titled Waterfront Construction No. 1 Loan Closing Documents. The City Administrator informed Council that Deputy City Attorney De La Loza would present a report on the documents presented for approval. Deputy City Attorney De La Loza informed Council that action was proposed on the Maintenance Agreement, Estoppel Certificate/Agreement on Waterfront Construction No. 1 lease (Hilton Hotel) and the Estoppel Certificate/Agreement on Mayer Trust Master Lease (adjacent to hotel) following the posting of the agenda. He informed Council of the need for a determination by Council that the need to take action on the aforementioned items arose following the posting of the agenda. 455 Page 3 - Council/Agency Minutes - 08/30/95 A motion was made by Green, second Sullivan, that the need to take action on the Maintenance Agreement, Estoppel Certificate/Agreement on Waterfront Construction Lease (Hilton Hotel) and the Estoppel Certificate/Agreement on Mayer Trust Master lease (adjacent to hotel) arose following the posting of the agenda. The motion carried by unanimous vote. Deputy City Attorney De La Loza reviewed the proposed transaction and Recommended Actions Nos. 1 through 9 of the Request for Council Action dated August 30, 1995 including Final Recommendation and stated that the documents in the possession of the City Clerk were in order. He stated as a matter of record that the City has emerged fully paid from the bankruptcy, much to the credit of the debtor. A motion was made by Garofalo, second Dettloff, to approve the following recommended actions: Recommended Actions No. 1 and No. 2 Quitclaim Deed From Robert L. Mayer - Pacific View Avenue Street Dedication Accepted the Pacific View Avenue street dedication from Robert L. Mayer, as Trustee of the Robert L. Mayer Trust of 1982 dated June 22, 1982, as amended, to the Redevelopment Agency of the City of Huntington Beach (Quitclaim deed only, Exhibit A-1 to A-5) pursuant to the relevant Disposition and Development Agreement and the Development Agreement sections attached as Exhibit C and directed the Agency Clerk to execute acknowledgment for delivery to loan closing forthwith. Agency Deed To City Approved and authorized Chairman and Clerk to execute for delivery forthwith to closing. License Agreement Between City And Waterfront Construction No. 1 For Landscape And Other Improvements - (600.10) Approved and authorized execution of the License Agreement by and Between the City of Huntington Beach and Waterfront Construction No. 1 To provide landscaping and other improvements in the public right of way. Estoppel Certificate/Agreement on Waterfront Construction No. 1 Lease - Hilton Hotel Approved and authorized the Agency Chairman and/or Chief Executive Officer, as appropriate, to execute for delivery forthwith to loan closing. 456 Page 4 - City Council/Redevelopment Agency Minutes - 08130195 Estoppel Certificate/Agreement On Mayer Trust Master Lease - Adiacent To Hotel Approved and authorized Agency Chairman or Chief Executive Officer to execute for delivery forthwith to loan closing the Reciprocal Fire Lane Access Easement Agreement by and among the Redevelopment Agency of the City of Huntington Beach and Robert L. Mayer as Trustee of the Robert L. Mayer Trust of 1982, dated June 22, 1982, as amended (Mayer Trust) and Waterfront Construction No. 1 a California limited partnership. Actions Taken On Items Nos. 7 8 and 9 7. Opinion letters from Stradling, Yocca, Carlson and Rauth relating to: a) Potential Health and Safety Code Section 33433 risk, b) Acquisition and Relocation Agreement Risk Assessment, c) Other issues reflected therein 8. Defense and Indemnity Agreement by the R. L. Mayer Trust and Waterfront Construction No. 1 relating to Section 33433 risks identified above 9. Instruction letters relating to payment to the city in the sum of $63,000 The City Council received, authorized and accepted level of risk based on defense and indemnity (Item 8) and opinion letters from Stradling, Yocca, Carlson and Rauth (Item 7), and Authorized the Chairman/Mayor and/or the Chief Executive Officer to execute any and all related documents consistent herewith so long as approved as to form by the City Attorney to facilitate the loan closing August 31, 1995 and further on condition that there are no material changes that are inconsistent with the documents provided to Council; further that it be made a matter of record that this is a meeting of the Redevelopment Agency and the City Council as originally noticed on August 21, 1995 continued to August 28, 1995 and again continued to August 30, 1995. The motion carried by unanimous vote. Also the Council/Agency included in the record of the meeting, at the request of the City Clerk/Clerk, the fact that the Council/Agency members had received the Request for Council Action with revisions by Deputy City Attorney De La Loza that was handed out today together with the additional memorandum titled Waterfront Construction Loan Closing Documents dated August 30, 1995. (City Council Status Report Regarding Orange County Bankruptcy Recovery Plan (120.90) The City Council considered a communication from the Deputy City Administrator Barnard dated August 28, 1995, regarding efforts to develop a recovery plan which builds consensus with the participants in the Orange County Bankruptcy. Elements of the recovery plan will soon require legislative action in Sacramento. The County of Orange and the Orange County Investment Pool are requesting cities to be supportive of their recently released Consensus Recovery Plan. 457 Page 5 - CouncillAgency Minutes - 08/30/95 The Council on August 28, 1995, adopted the following action: The City Council reaffirms its desire to work cooperatively with all participants to reach a Consensus Recovery Plan which is consistent with the following common goals: End the Bankruptcy No new taxes Salve the Bankruptcy within the county Utilize County resources to solve the county bankruptcy Pay all bond and vendor debt Recognize schools as a priority Maintain the integrity of the comprehensive settlement agreement Restore investor confidence in the bond market No interception of city revenue by county or state Plan as finally adopted might subordinate but not totally forgive County Reports were made by Councilmari_'auer and City Administrator Uberuaga regarding the proposed plans and the meetings they had attended on the bankruptcy issue. Mike Uberuaga, City Administrator, reported on the communication he had just distributed to the City Council from the Orange County Division of the League of California Cities dated August 29, 1995, titled Orange County Division, League of California Cities Offers Conceptual Approval of County Consensus: Recovery Plan. The City Administrator reported on proposed language that keeps arising that is detrimental to the city and must be watched. He informed Council that he had requested that the wording in paragraph E be included as follows:, "Any litigation proceeds received by the County of.Orange will be applied to non -county third party claims until those claims are paid." Mr. Uberuaga reported that this wording should be accepted; that he has met with the schools in an effort to gain support for inclusion of said language. The City Administrator stressed the importance of elected officials speaking to other elected officials to gain acceptance of favorable conditions for the city. At 6:10 p.m. Councilman Bauer stated that he would have to leave the meeting. Status Report Regarding Option Agreement Requested (120.90) Councilman Garofalo stated he would like to receive a status report from the City Attorney's Office regarding their interpretation of the Option Agreement with the county. At Councilman Sullivan's request, the City Administrator reported on the proposed language in the plan relative to pro rata sharing of the $18,000,000 General Revenue Costs among all OCIP participants from future proceeds due participants. Page 6 - City Council/Redevelopment Agency Minutes - 08/30/95 (City Council) Appointment To Fourth Of July Executive Board Announced - Maureen Rivers (110.20) Pursuant to discussion at the previous Council meeting, Councilman Sullivan announced that Maureen Rivers is his appointee to the Fourth of July Executive Board. Adjournment - City Council/Redevelopment Agency The Mayor adjourned the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to Monday, September 5, 1995, at 5:00 p.m. in Room B- 8, Civic Center, 2000 Main Street, Huntington Beach, California. ATTEST: City Clerk!Clerk 459 City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, and Clerk of the Redevelopment Agency of the City of Huntington Beach California Mayor/Chairman