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HomeMy WebLinkAbout1996-06-10MINUTES CITY COUNCIUREDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH 5:00 P.M. - Room B-8 6:00 P.M. - Council Chamber Huntington Beach, California Monday, June 10, 1996 A partial videotape recording of this meeting is on file in the Office of the City Clerk Call To Order Mayor Sullivan called the adjourned regular meetings of the City Council and Redevelopment Agency of the City of Huntington Beach to order at 5:00 p.m. City Council/Redevelopment Agency Roll Call Present: Harman, Bauer, Sullivan, Leipzig, Dettloff, Green, Garofalo 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 item: 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 v. Marow Orange County Superior Court Case No. 72 94 15. (120.80) Reconvene The Mayor reconvened the adjourned regular meetings of the City Council and Redevelopment Agency at 6:35 p.m. in the Council Chamber. City Council/Redevelopment Agency Roll Call Present: Harman, Bauer, Sullivan, Leipzig, Dettloff, Green, Garofalo Absent: None 355 Page 2 - Council/Agency Minutes - 06/10/96 Late Communications Announced By The City Clerk Pursuant to the Brown Act, the City Clerk announced the following late communications which had been received after the distribution of the City Council Agenda packets: Communication to the Mayor and City Council from Councilman Garofalo received by the City Clerk on June 10, 1996 regarding acquisition of 20 encyclopedia lots for Central Park Slide presentation pertaining to the Budget Reduction Plan from the Community Development Department Slide Presentation from the Library Department received by the City Clerk on June 10, 1996, regarding the Community Enrichment Library Fee Slide Presentation regarding the Huntington Beach Fire Department Budget received by the City Clerk from Fire Chief Dolder on June 10, 1996 Slide Presentation on City Budget received by the City Clerk on June 10, 1996, from the Administrative Services Department Public Comments Milton Marow addressed Council and stated that they have been property owners for 60 years and were not out -of -own developers as stated. He stated that the agreement had been signed, sealed and delivered and is in escrow. The City Clerk responded to the Council regarding the vote of approval at the June 3, 1996 Council meeting. Councilman Garofalo stated that the vote was 6-0. The City Clerk responded that signatures of the Mayor and City Clerk had not yet been affixed on the agreement. Mr. Marow requested to proceed with the agreement and presented reasons why the agreement should proceed. He stated they want to settle this action in total harmony and then discuss future issues. The City Administrator stated this matter had been discussed at the staff level and in the City Council Legal Affairs Committee. He stated that the Council has a process for reconsideration and is now performing this process. Councilman Garofalo stated he was confused as to why Mr. Marow would want these undevelopable lots. Mr. Marow responded regarding the history of the matter and that he did not believe buying five lots in 60 years was unreasonable. 35G 06/10/96 - City Council/Redevelopment Agency Minutes - Page 3 Discussion was held between Councilman Garofalo and Mr. Marow. Mr. Marow referred to the Specific Plan. Councilman Bauer stated that Council did not understand the value of the property to Mr. Marow as the property cannot be developed. Mr. Marow responded that adjacent homeowners will acquire the property. Councilwoman Dettloff stated the concerns of Council, citing their desire for the property to remain open space. Councilman Harman asked Mr. Marow if he would be willing to offer the adjoining homeowners the right of refusal to purchase those lots that adjoin an existing homeowner's property before selling to a third party and at that price. Mr. Marow responded that he wished to close the deal as it is. Lindsay Hawkins distributed carnations to the Council in appreciation for Council's past support of the DARE Program and spoke regarding the need for the Drug Abuse Resistant Education (DARE) Program to continue and not be a part of the budget reductions. She cited statistics of students who have come into contact with drugs and alcohol who have not been educated through DARE as compared to these students who have received DARE education. Ian Collins, Dwyer Elementary School Principal, addressed Council and presented reasons why he believed the DARE Program should not be discontinued. B. J. Griffin spoke regarding reasons why the kids need the DARE Program. Tim Ryan addressed Council regarding the Settlement Agreement between the city and Marow/Toledo. He referred to a map displayed on the Council Chamber walls and presented background information on the matter together with the results of his research on comparable sales in the Fairview Tract. Councilman Garofalo clarified with Mr. Ryan the intent of his proposal. Michael Doyle, representative of Mr. Ryan, spoke regarding the history of the matter and the fact that they had not been informed that this issue had been on the May 20, 1996, Council Agenda. He spoke regarding his offer made to the City Attorney. Ron Russell, Pride Foundation representative, spoke against the elimination of the DARE Program from the city budget. He stated that the proposed reduction was aimed at the kids and that DARE participants grow up to respect the Police. The City Administrator reported on the budget process. The Police Chief reported on aspects of the matter including the training class that the Police Officer had missed due to uncertainty of funding. He spoke regarding the need to contact some of the schools regarding the potential of possible reduction in the DARE Program. 357 Page 4 - Council/Agency Minutes- 06/10/96 The City Administrator stated that Police Chief Lowenberg and he would return to Council. The Mayor stressed that the City Council has not taken one action to cut the DARE Program. Amanda Pegors, Christine Stellrecht, and Jennifer McCarthy addressed Council in support of the DARE Program and spoke regarding the techniques that they had learned through the DARE Program to stay away from drugs. (City Council) Study Session - Continued From June 3, 1996 - Settlement Agreement - Release And Agreement For The Exchange Of Property - Between City And Marow/Toledo - Acquisition Of 20 Encyclopedia Lots For Central Park - Approved Counter Proposal To Be Presented To Marow/Toledo (600.10) The City Council considered a communication dated June 10, 1996, from Deputy City Administrator Franz regarding a proposed Settlement and Exchange Agreement between the city and Marow/Toledo which would result in the city acquiring seventeen encyclopedia (17) lots north of Ellis Avenue in exchange (trade) for nineteen (19) city owned encyclopedia lots south of Ellis Avenue. The lots being acquired are for Central Park and the city lots being traded are not in a designated park area. The city would also acquire three additional encyclopedia lots (total = 20 lots being acquired) north of Ellis Avenue needed for the widening of Ellis Avenue. Administrative Services Director Franz presented a staff report. Councilman Green questioned if other cities have a first right of refusal in such situations. He questioned if the city were to put this up for sale to Mr. Ryan would the property have to be declared surplus first and would it have to be put to bid. The Administrative Services Director responded to Councilman Green. Councilwoman Dettloff questioned the ramifications of the Specific Plan on this property. The Community Development Director reported on the property's relation to the Specific Plan. Paul D'Alessandro, Deputy City Attomey, reported on the provisions of the Specific Plan. Councilman Garofalo requested and was granted the permission of Council for Mr. Marow to be allowed to approach the podium. Mr. Marow responded to a proposal set forth by Councilman Garofalo, who also asked if Mr. Marow could accept an alternate plan, and outlined the plan. Mr. Marow replied that he did not want to make such decision under pressure. Further discussion was held between Council and Mr. Marow. 358 06/10/96 City Council/Redevelopment Agency Minutes - Page 5 The City Attorney stated that she wished to respond to Councilman Green regarding selling property to contiguous property owners when it is surplus. She stated that the city does have such an ordinance regarding Surplus Property. She read the city's surplus property ordinance which provides that the property shall first be offered to the adjacent or contiguous property owners. She advised Council that they were following proper procedure in their reconsideration of this matter. She confirmed Councilman Green's statement that the city should have declared the property surplus. The City Clerk announced that she did not have Exhibits A, B, C and D which the document reflects to be attachments. She informed Council her statement was made for the record. Further discussion was held between Council and Mr. Marow. Mr. Marow stated his agreement had been approved and was in escrow. He referred to his attorney's opinion. With the permission of the Mayor, Mr. Ryan responded that he could "live with two lots instead of four". A motion was begun by Garofalo that the City Council approve the transaction as presented. Councilman Garofalo did not complete the motion nor did it receive a second. Mr. Marow stated that he had already been paid part of the funds on deposit with the court. The City Attorney explained the eminent domain process. Deputy City Attorney D'Alessandro reported on a proposed motion. A motion was made by Garofalo that the proposal is that Mr. Marow's seventeen (17) lots would go to the city; that $45,000 in cash would go to Mr. Marow; that seventeen (17) of the Fairview lots, minus what he has already, to go to Mr. Marow; and the proceeds from the sale of two (2) lots specifically 59 and 60 from Mr. Ryan's proposed escrow for a total of $30,000 go to Mr. Marow. Deputy City Attorney D'Alessandro clarified the motion that Marow gives seventeen (17) lots north of Ellis Avenue in the park to the city for trade and three (3) lots along Ellis Avenue to the city for the $45,000 in cash. The city gives seventeen (17) lots south of Ellis Avenue excluding 59 and 60 to Marow and two (2) lots, 59 and 60, to Ryan and Ryan gives $30,000 cash to Marow. A motion was made by Garofalo, seconded by Green, to adopt the proposed Settlement Agreement with the modifications that Marow gives 17 lots north of Ellis Avenue in the park to the city for trade and 3 lots along Ellis Avenue to the city for the $45,000 in cash. The city gives 17 lots south of Ellis Avenue excluding 59 and 60 to Marow and 2 lots, 59 and 60, to Ryan and Ryan gives $30,000 cash to Marow. In response to the City Clerk's clarification of the motion, Deputy City Attorney D'Alessandro, stated that the resolution was not included because the motion is an offer not a disposition. 359 Page 6 - Council/Agency Minutes- 06/10/96 The motion made by Garofalo, seconded by Green, carried by the following roll call vote: AYES: Bauer, Dettloff, Green, Garofalo NOES: Harman, Leipzig, Sullivan ABSENT: None Recess - Reconvene The Mayor called a recess of the City Council and Redevelopment Agency at 8:25 p.m. The meeting was reconvened at 8:35 p.m. in the Council Chambers. (City Council/Redevelopment Agency) 1996-97 City Budget Shortfall Solutions - Discussion Held Regarding Increase To Community Enrichment Library Fee - Public Hearing Scheduled For June 17, 1996 (320.20) The City Council considered a communication from the City Administrator submitting, pursuant to the April 20, 1996 Study Session on the $4,000,000 General Fund Shortfall, a package of departmental expenditure reductions totaling approximately $2,000,000 together with recommended new revenues totaling $2,000,000 for Council review. Late Communications on Budget items had been announced by the City Clerk earlier in the meeting. The subjects submitted for this meeting included: Review of revised expense reduction list; Review of potential new General Fund revenues of $2,000,000; Review of listing of surplus property which is potentially available for sale or lease and Departmental presentations from the Fire Department, Community Development Department, and Public Works Department regarding the impact of budget reductions. The City Administrator presented a staff report and slide presentation reviewing items including the Budget Timetable, Potential Expense Reductions, Summary of Reduction in General Fund Positions, Potential New Revenues, Future Budget Needs, Projected General Fund Shortfalls, Major Revenues - General Fund, Per Capita Sales Tax, City Revenue taken by the State, General Fund Reserve and Past Budget Reductions. Fire Chief Dolder reported on proposed cuts in the Fire Department Budget. Discussion was held regarding the Budget and the Fire Chief recommended that the Fire Engine Position not be eliminated. Discussion was held regarding the savings realized from the telecommunications audit. The Fire Chief reported on the need to fund the land for the fire station for the Holly-Seacliff Development. 360 06/10/96 - City Council/Redevelopment Agency Minutes - Page 7 Budget Report - Community Development Department The Community Development Director reviewed her department's budget and presented a slide report that included an Overview of Department Functions, an Historical Perspective on Staffing, Impacts of Prior Budget Reductions and Impacts of Proposed Reductions, Development Activity including Upcoming Major Projects, and Potential 1996-97 Service Level Activity Change. Brief discussion was held between the Council and the Community Development Director including discussion on the number of current contract employees and reduction in consultant costs. Budget Report - Public Works Department The Public Works Director reviewed a slide report that consisted of subjects including Budget Reduction Strategy, Public Works Service Impacts, Painting Maintenance, Facility Maintenance and Service Impacts. Councilman Garofalo gave reasons why he believed deferring maintenance on buildings and cars was a mistake. Discussion was held between Council and the Public Works Director. Councilman Leipzig spoke regarding what he believed to be the need to clarify what is a reduction and what is a transfer. Councilwoman Dettloff requested the Public Works Director to inform Council of the reason for his proposed cuts. The Public Works Director stated that almost everything his department does relates to infrastructure, maintenance of infrastructure and safety to the community; that streets, storm drains and sewers have the greatest impact and also the city must qualify for Measure M Funds and must spend a certain amount of money to do so. Councilman Garofalo stated that he would like to see deferral of a portion of a Capital Improvement Project which would mitigate the impact of maintenance deferral. The Public Works Director stated that other departments have Capital Projects but his department does not. The City Administrator stated that he would return with a report on Capital Projects. Councilman Leipzig stated that he did not believe there could be money found within the General Fund. 361 Page 8 - Council/Agency Minutes.- 06/10/96 Late Communications From Public Works Department Announced By The City Clerk The City Clerk announced two late communications from the Public Works Department as follows: Slide Presentation from the Public Works Department on Proposed Budget and Service Reductions received by the City Clerk on June 10, 1996. Slide report from the Public Works Department regarding Sewer Service Fee received by the City Clerk on June 10, 1996 Budget Report - Community Enrichment Library Fee Ron Hayden, Library Services Director, presented a slide report on the Community Enrichment Library Fee established by Huntington Beach Municipal Code Chapter 3.40. The slide report included Justifications for Increase, the Library Budget, Library Per Capita Costs Comparison, Books Per Capita City Comparison, Children's Books Per Capita and Total Per Capita Library Support, Per Capita Comparison after the Fee Increase, City's Book Buying Trend, Alternate Revenue and Major Development Projects. Discussion was held regarding the different ways the increase could be allocated such as to builders and residential. Mr. Hayden stated that he had been meeting with the Community Development Director on the issue. Councilman Garofalo stated that he had a concern that a plan be made on how to spend the money and the need to massage numbers and find some compromises. He suggested a different tier of charges depending on square footage of homes. Councilman Green spoke regarding the amount of development remaining in the Holly-Seacliff area, the Waterfront area, and the NESI site. Staff reported. Library Services Director Hayden stated that the money would come in over an extended period of time and the City Council would have to approve the expenditures. Councilman Bauer requested clarification of the name of the fund and the application of the code to cultural endeavors. The Library Services Director read the code. Councilman Bauer confirmed that it could be used for other cultural endeavors than the Library. In response to Mayor Sullivan, the City Administrator stated that Ed Mountford, representative of the Koll Company, had indicated willingness to go along with the increase. Library Director Hayden stated that they had already received a signed copy from the Koll Company and Mr. Mountford. 362! 06/10/96 - City Council/Redevelopment Agency Minutes - Page 9 Discussion was held between Councilman Leipzig and Administrative Services Director Franz regarding use of the fee. Councilman Garofalo asked the Community Development Director to report on the exact costs to build a house in the city. Budget Report - Parking Meters And Beach Parking Preferred Parking Plan The issue of parking meters at Beach Boulevard and Magnolia Street were discussed between the City Council and Community Services Director Hagan including whether residential neighborhoods would be impacted. The Beach Parking Preferred Parking Plan was reviewed by Community Services Director Hagan. Buffet Report - Management Services Institute (MSI) Report Discussion was held regarding updating charges for current services. Councilman Bauer suggested that the MSI Report return for a review of what has been done and to have MSI staff interact with Department Heads. The City Administrator stated that he would like to have the MSI representative attend the August 12, 1996 Study Session. Budqet Report - Sewer Maintenance Fee The Sewer Maintenance Fee was reported on by the Public Works Director who referred to material in the City Council Agenda packet on sewer fees. His report included a slide presentation on a proposed sewer service fee including current sewer maintenance costs, residential sewer rates, and the proposed sewer service fees. Considerable discussion was held regarding the Public Works Director's report and the sewer infrastructure including the effects of nature on the sewer infrastructure such as the effect of soil conditions, earthquakes, etc. Budget Report - Business License Fees Business License Fees were discussed between the City Council and Administrative Services Director Franz reported on the issue including meetings with the Chamber of Commerce. Discussion was held regarding the fees charged by other cities. Administrative Services Director Franz referred to the revised page iN the Agenda packet. 363 Page 10 - Council/Agency Minutes - 06/10/96 Mayor Sullivan and Councilman Harman stated that most business people would prefer a fee of $81, not the proposed $75 with a $6 renewal. Report Requested Regarding A List Of City -Owned Properties And Report On Long -Term Leases Councilman Harman asked for a list of city -owned property. He also asked that long-term leases be reviewed. General Discussion Regarding Budget Considerations Discussion was held regarding taking one-time revenues for on -going expenditures. The City Administrator spoke regarding Council policy that this not be done and presented reasons. Councilman Garofalo stated that perhaps the Economic Development Director could look at a joint use project with a developer. Councilman Bauer stated that he believed many of the cuts will adversely affect the quality of life, particularly the cuts in the Police Program. He stated that additional revenues should be sought instead, rather than taking out of another department's hide. Councilman Bauer stated that he believes there should be a report on 51,000,000 in cuts and $3,000,000 in revenues. He spoke regarding the Community Development Block Grant re -programming of funds and urged that some of the funds be rescued for city programs. He requested another review by Department Heads. Councilwoman Dettloff spoke in support of Councilman Bauer's position. She stated that the infrastructure must not decay. Councilman Green agreed that more revenue is needed and less reductions from staff. Councilman Garofalo stated that he believed the Community Development Block Grant process must be reviewed. Councilman Garofalo stated that he believed organizational remedies must be found and referred to the recent luncheon address by the Mayor of Indianapolis, Indiana, that Council had attended. Discussion was held between the Police Chief and Council regarding Councilman Harman's question as to whether the school district could fund the DARE program. The Police Chief reported on the last time this had been discussed stating it had almost been achieved. Councilman Harman reported on Page No. 2.57 - Suggestions to Review Specific Programs and Services contained in the City Administrator's Study Session Budget Shortfall Solutions staff report dated June 6, 1996. He stated that he would like to see consolidation of the aero bureau with other cities and have only one sworn officer aboard and the pilot be a non -,sworn employee. He stated that separate maintenance facilities for police and fire could be reviewed in an effort to consolidate. 364 06/10/96 - City Council/Redevelopment Agency Minutes - Page 11 Councilman Harman stated that he would like a one-year period of time to study innovative ideas and that the city use -one time sale of property funds to give the city time. He spoke regarding the address to Council made by the Mayor of Indianapolis, Indiana and the Mayor's presentation regarding the Water Treatment Plant that was privatized. Councilman Leipzig stated that receiving city services was the best bargain as Police, Fire and streets are provided to the community and he compared these services to the cost that his family pays for phone and electricity per year which is more. Mayor Sullivan stated that he believed the sale of excess property should be accomplished; that he does not believe the Police Department cuts should be made; however he agrees that the aero bureau issue should be reviewed. Mayor Sullivan opposed cuts at the Nature Center and Newland House. He stated his opposition to any Senior Outreach Program cuts. The City Administrator stated that he would be meeting with the neighboring city managers on the aero bureau and the city's possible withdrawal from the (ABLE) aero bureau program. Straw Votes - DARE Program - Senior Outreach - Neighborhood Watch - Approved Continued Funding A motion was made by Green, second Garofalo, that the City Council indicate by straw vote that they wish to continue the current funding level of the DARE Program into the 1996-97 year. Councilman Leipzig gave reasons why he believed making this motion at this time would undermine the budget process and that he believed the Police Chief should be given direction regarding the steps to take this summer in relation to these programs. Councilwoman Dettloff stated that she does not believe a motion is necessary; that Council has indicated their feelings regarding the DARE program. Councilman Green withdrew his motion. Mayor Sullivan stated that he did not believe there were four votes to cut the Neighborhood Watch, DARE or Senior Outreach Programs and did not want people to be agonizing over the issues. A motion was made by Green, second Garofalo, that the City Council indicate by straw vote that they wish to continue the current funding level of DARE Program into the 1996-97 year. Councilman Leipzig again stated his belief as to what this motion implied in the budget making process. Councilwoman Dettloff stated that she was opposed to any reduction in DARE, Neighborhood Watch or Senior Outreach; however, the Council had informed the arts groups they must wait for a decision, thus other groups must also wait if the process is to be kept intact. 365 Page 12 - Council/Agency Minutes - 06/10/96 Councilman Leipzig requested that the Police Chief return with alternatives to cutting the DARE Program. Councilman Bauer gave reasons why he supports the motion. The motion carried by the following roll call vote: AYES: Harman, Bauer, Sullivan, Green, Garofalo NOES: Leipzig, Dettloff ABSENT: None A motion was made by Sullivan, second Garofalo, that Council make the intent known that Council will not support cuts in Neighborhood Watch or the Senior Outreach Programs. Councilwoman Dettloff stated that for the record she supports the programs but for reasons she had stated before, she would vote no. The motion carried by the following roll call vote: AYES: Harman, Bauer, Sullivan, Green, Garofalo NOES: Leipzig, Dettloff ABSENT: None Report Requested Regarding Feasibility Of Entertainment Tax Councilman Harman stated that he would like further details on an entertainment tax that could perhaps be put toward the Art Center. Budget Direction To City Administrator The City Administrator stated that he would like Council to make a motion to prepare a Budget that addresses the $4,000,000 shortfall with $3,000,000 in revenue and $1,000,000 in reductions. Councilman Bauer stated that he would give his issues in writing to the City Administrator and that perhaps so would the other Councilmembers. On motion by Garofalo, second Green, the Council directed the City Administrator to return to Council with his plan and budget recommendations for the Council meeting of August 12, 1996. The motion carried unanimously. • 06/10/96 - City Council/Redevelopment Agency Minutes - Page 13 Adjournment - City Council/Redevelopment Agency The Mayor adjourned the regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach at 10:00 p.m. ATTEST: 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 of Huntington Beach California Mayor/Chairman' 367