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HomeMy WebLinkAbout1996-01-22MINUTES CITY COUNCIUREDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH 5:00 P.M. - Room B-8 6:30 P.M. - Council Chamber Huntington Beach, California Monday, January 22, 1996 Call To Order Mayor Sullivan called the regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 5:00 p.m. in Room B-8. City _Council/Redevelopment Agency Roll Call - Present: Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo, (Harman arrived at 5:10 p.m.) Absent: None Recess - Closed Session The Mayor called a recess of the City Council and the Redevelopment Agency at 5:05 p.m. to consider the following closed session items: Closed Session - Continued from January 16, 1996 - 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 Lovin, et al. v. Miller, et al. Orange County Superior Court Case No. 712468. (120.80) Closed Session - Continued from January 16, 1996 - 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 County of Orange v. Merrill Lynch. City Council pursuant to Government Code Section 54956.9(b)(3)(B) to confer with its City Attorney regarding pending litigation - Facts and circumstances, including, but not limited to, an accident, disaster, incident, or transactional occurrence that might result in litigation against the agency and that are known to a potential plaintiff or plaintiffs, which facts or circumstances shall be publicly stated on the agenda or announced - Pomerantz/Tobacco Fee Dispute. City Council pursuant to Government Code Section 54956.9(c) to confer with its City Attorney regarding pending litigation - based on existing facts and circumstances, the legislative body of the local agency has decided to initiate or is deciding whether to initiate litigation. Number of potential cases - 1 - Tobacco/Pomerantz Fee Dispute. (120.80) 29 Page 2 - Council/Agency Minutes - 01/22/96 Reconvene The Mayor reconvened the regular meetings of the City Council and Redevelopment Agency at 6:30 p.m. in the Council Chambers. Pledge Of Allegiance The Pledge of Allegiance was given by those present in the Council Chamber. City Council/Redevelopment Agency Roll Call Present: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo Absent: None Late Communications Announced By The City Clerk Pursuant to the Brown Act the following late communications were announced by the City Clerk: Slide Report from the Economic Development Department dated January 22, 1996 A document titled Recommended Amendments distributed by the Economic Development Department Communication dated January 18, 1996 from the Rosenow Spevacek Group, Incorporated. To David Biggs, Director of Economic Development - Subject: Feasibility Analysis of Redevelopment Plan Amendments for the Huntington Beach Redevelopment Projects Draft Request for Redevelopment Agency Action dated February 5, 1996 from the Director of Economic Development, Subject: Contract for Consultant Services - Plan Amendments for the City's Redevelopment Project Areas Presentation Of Final Report On The Analysis Of Privatization Opportunities Related To The Department Of Public Works Prepared By David M. Griffith & Associates, Limited The City Council considered a communication from the City Administrator dated January 17, 1996 t The City Council considered a communication from the City Administrator dated January 17, 1996 transmitting the report prepared by David M. Griffith and Associates, Ltd., dated December 1, 1995 entitled Final Report on the Analysis of Privatization Opportunities Related to the Department of Public Works. 90 01122196 - City Council/Redevelopment Agency Minutes - Page 3 The City Administrator stated the recommendation was to form a City Council committee to meet with the consultant and prepare a presentation to Council and staff by late March. He stated that the study appeared not to be as concise as the City Council would like. Councilman Garofalo stated that he believe more "eyes" than just Council may be needed such as the Finance Board and Chamber of Commerce. He volunteered to serve on a committee. Councilman Harman questioned why it took so long to get the final report and the City Administrator stated that there had been many drafts. The Public Works Director stated that as he had not come to the city until recently and he had wished to study it; also that the consultant had been away. The Public Works Director stated that there were other issues such as water issues that had to be considered. Councilwoman Dettloff stated that she too was in favor of a Council committee and citizens' committee. Mayor Sullivan stated that he would inform the City Clerk of the Council appointments in the next few days and that these appointments would be reported at the next Council meeting. The Mayor presented reasons why he did not believe there had been the amount of privatization stated and gave examples of areas of which the report referred to as privatization but of which he did not believe met that definition. Councilman Leipzig spoke regarding one of the values of the study being that it shows where the city does go outside when it has the choice to use inside resources. Councilman Bauer stated that the city should look at the City of Indianapolis, Indiana, and that he would be happy, at his own expense, to visit Indianapolis to learn more of their privatization measures. Councilman Garofalo stated that the Mayor of Indianapolis has been able to reduce expenses by $26,000,000 with no decrease in services. Redevelopment Issues The Mayor stated that the Redevelopment Agency would now discuss the role of Economic Development and Redevelopment in Huntington Beach and options for proposed redevelopment project area merger - plan amendments. David Biggs, Economic Development Director, introduced Frank Spevacek, Principal, Rosenow Spevacek Group, Incorporated. He also introduced Mr. Jim Simon, Mr. Spevacek's associate and Murray Kane, attomey with the firm of Kane, Ballmer and Berkman. 3 - 'x Page 4 - Council/Agency Minutes - 01/22196 Steve Kohler, Economic Development Project Manager, was also introduced. David Biggs, Economic Development Director, made a slide report covering each slide which included background information, the Agency's Mission, merger - amendment options, Long - Term Versus Short -Term Perspective, Downtown Area, Financial Constraints, Huntington Center, and the Business Development Program. Frank Spevacek, using slides, reviewed the following exhibits contained in the communication from his firm which had been announced earlier in the meeting by the City Clerk: Exhibit A - Plan Amendment/Merger which addressed the following issues: Benefit bond, Extend Eminent Domain Limit, increase Tax Increment Limit, increase Bond Limit, Extend Timeframe to Incur Debt, and Add New Projects such as housing. Exhibit B -Reasons for Amendment -Merger which addressed the following issues: Due to Current Cash Position, No Future Projects Can Be Initiated Unit 2000, New Debt Cannot be Incurred after 2002, Tax Increment Revenue Limits Insufficient for Huntington Center, Talbert - Beach, and Yorktown -Lake, Eminent Domain Authority Expired in Main -Pier, Talbert -Beach, and Yorktown -Lake, Huntington Center Expires in 1 996; Oakview in 2001. Exhibit C - Benefits of Amendment - Merger which addressed the following issues: New Projects Can Be Initiated After 2002, Time Frame to Incur New Debt Can Be Extended from 2002 to 2014, Eminent Domain Powers Extended to 2008s, $21.7 Million of Additional Bond Capacity, and $106.3 Million of Additional Tax Increment Revenue ($32.5 Million of Housing Revenue $73.8 Million of Non -housing Revenue). The Economic Development Director addressed Council further on the issues and requested Mr. Kohler to distribute the Draft Request for Council Action referred to earlier in the meeting by the City Clerk. Discussion was held between Council and the City Administrator regarding repayment issues relative to the repayment of Agency debt and expense issues such as the agreement entered into for the mobilehome reallocations. The Economic Development Director and Mr. Kane reported on triggering of "pass through" issues with other taxing entities. Councilman Leipzig stated that he would like to have a policy development for Council to follow and use as a tool, for good redevelopment to implement the city's good land use planning decisions. He spoke regarding the need in the future to avoid open-ended city commitments. Discussion was held and the Economic Development Director reported on the benefits to the city of his recommendation to enter into a contract with Rosenow Spevacek Group to provide technical assistance in the preparation and presentation to the Agency of proposed redevelopment project area plan amendments. 2 01/22/96 - City CounciliRedevelopment Agency Minutes - Page 5 Mr. Spevacek reported on various aspects including issuance of bonds, debt coverage ratio and projected revenue stream. Councilwoman Dettloff spoke regarding the December 12, 1995 meeting wherein Mr. Kane reported on the possible down side of the proposed merger. Mr. Kane reported on issues including Agency bond rating and the merger issue as it affects low and moderate income housing. The City Attorney introduced Scott Fields, Deputy City Attorney, and Council welcomed him to the city. Mr. Scott formerly was employed at the City of Mission Viejo and the City of Temecula and has been a resident of the City of Huntington Beach for a number of years. Discussion was held between Council and Mr. Kane regarding "pass through agreements". The Economic Development Director reported further on issues including eminent domain. The City Administrator reported on the importance of putting redevelopment in perspective and not as a panacea to fiscal problems. The City Administrator stated that he liked the idea that Councilman Leipzig presented regarding the establishment of a Redevelopment Policy. (City Council) Privatization The City Council considered a communication from the City Administrator transmitting the Final Report on the Analysis of Prvatization Opportunities Related to the Department of Public Works prepared by David M. Griffith and Associates, Limited, dated December 1, 1995, and a communication dated November 14, 1994 from the Assistant City Administrator regarding Existing Privatized Services within the City of Huntington Beach. A City Council Committee to be named by Mayor and announced at next regular meeting ADJOURNMENT - CITY COUNCIUREDEVELOPMENT AGENCY The Mayor adjourned the regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to Monday, February 5, 1996, at 5:00 p.m. Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California.. 0� I U Z E&IF - City Clerk/Clerk 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�Huntington Beach California Mayor/Chairman 33