HomeMy WebLinkAbout2000-09-18Minutes
City Council/Redevelopment Agency
City Of Huntington Beach
5:00 P.M. - Room B-8
7:00 P.M. - Council Chamber
Civic Center, 2000 Main Street
Huntington Beach, California 92648
Monday, September 18, 2000
An audiotape of the 5:00 p.m. portion of this meeting
and a videotape of the 7:00 p.m. portion of this meeting
are on file in the Office of the City Clerk.
Call To Order
Mayor Garofalo called the regular meetings of the City Council and the Redevelopment Agency
of the City of Huntington Beach to order at 5:08 p.m. in Room B-8.
City Council — Redevelopment Agency Roll Call
Present: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
Absent: None
Late Communication
The City Clerk announced the following Late Communication that had been received at the City
Clerk's Office after distribution of the agenda packet: PowerPoint slide report presentation from
the Administrative Services Department and the City Attorney's Office titled City of Huntington
Beach Traffic Impact Fees. Said report is presented in two parts. The first section is titled
Proposed Fair Share Mitigation Fee Program and the second section is titled Calculation
Methodology.
(City Council) Study Session — Presentation of a Fair Share Traffic Mitigation Impact Fee
Program — Public Hearing Scheduled for October 2, 2000 — Staff Directed to Include a
Comparison Study of Traffic Impact Fees of Orange County Cities (3400)
ao
The City Council considered a staff report that provided background information on the
proposed Traffic Impact Fee to be levied on new developments to replace the current fee that
will expire on October 5, 2000. The staff report covered the Interim Traffic Impact Fee proposed
to be in effect from October 6, 2000 through November 4, 2000.
City Administrator Ray Silver introduced Assistant City Attorney Scott Field from the City
Attorney's Office, and Interim Transportation Manager Tom Brohard from the Public Works
Department. Also introduced was Mr. Paul Silver, a financial consultant from the company of H.
R. & A., Inc. (Hamilton, Rabinovitz & Alschuler, Inc.)
Interim Transportation Manager Brohard delivered the PowerPoint presentation titled City of
Huntington Beach Traffic Impact Fees that had been announced earlier as a Late
(2) September 18, 2000 - Council/Agency Minutes - Page 2
Communication by the City Clerk. Mr. Brohard presented the first half of the slide report entitled
Proposed Fair Share Mitigation Fee Program.
Mr. Paul Silver from H. R. & A., Inc. spoke relative to the second section of the PowerPoint
presentation titled Calculation Methodology. He informed Council of his role to provide financial
guidance for local government in the area of nexus fees..
Mr. Paul Silver spoke regarding the need to ensure that several criteria are met relative to the
imposition of fees on new developments. He stressed this point, using the slide on page 8 of
the Late Communication titled Considerations in Setting a New Traffic Impact Fee which refers
to the need to 1) show the connection to improvement costs and types of future development;
and 2) distinguish new development impacts from existing deficiencies.
Council discussion followed regarding the calculation of average daily trip fees. Mr. Paul Silver
of H. R. & A., Inc. provided the rationale.
Councilmember Bauer expressed his concern that the city has an atypical situation with regard
to the number of trips generated, using the Santa Ana River area traffic volume.
Discussion was held as to whether the proposed $120 per trip rate to be paid by the developer
will be adopted, which is an increase from the present $75 per trip rate (with the $75 city match).
Assistant City Attorney Field stated that the public hearing on the traffic impact fee is scheduled
for October 2, 2000, at which time the first reading of the ordinance will take place. He informed
Council that the ordinance would be scheduled for the second reading on October 16, 2000.
Assistant City Attorney Field informed Council that the effective date of the imposition of the fee
would be December 1, 2000 with the caveat that a developer making an application for the last
entitlement will be subject to the previous processing fee of $75 per trip.
Comparison of Traffic Impact Fees of Other Municipalities Requested (640.10)
Mayor Garofalo requested that the consideration of the ordinance take into account a
comparison of the traffic impact fees of other municipalities.
Report Requested Re: Signalization Systems — Traffic and Opticom Emergency (580.10)
Councilmember Bauer requested staff to return with a report on the status of two signalization
systems: one for traffic and the other for the Fire Department's emergency system, Opticom.
Council thanked staff for the reports.
Motion to Recess to Closed Session — Approved
A motion was made by Harman, second Sullivan to recess to Closed Session on the following
items. The motion carried by the following roll call vote:
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: None
(City Council) Closed Session — City Council pursuant to Government Code Section 54957.6
to meet with its designated representatives William Osness, Personnel Director; Daniel Cassidy,
Esquire of Liebert, Cassidy and Frierson and Richard Whitmore, Esquire of Whitmore, Johnson
(3) September 18, 2000 - Council/Agency Minutes - Page 3
& Bolanos regarding labor relations matters — meet and confer with the following employee
organizations: MSOA, POA, PMA, and HBFA (120.80)
(City Council) Closed Session — 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 Ardolina v. City.of Huntington Beach, et al. - Orange
County Superior Court Case No. 796920. Subject: Ardolina v. City of Huntington Beach,
et al. (120.80)
(Redevelopment Agency) Closed Session — 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 Mulligan v.
Redevelopment Agency — Orange County Superior Court Case No. 740099. Subject:
Mulligan v. Redevelopment Agency. (400.50)
(City Council) Closed Session — 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 In the Matter of the Application of Southern California
Edison Company (U-338-E) for Authority to Sell Its Fuel Oil Pipelines Facilities before the Public
Utilities Commission, Application 00-01-037. Subject: Southern California Edison Company
(120.80)
(City Council) Closed Session — City Council pursuant to Government Code Sectiorr 54956.8
to give instructions to the city's negotiators, Matt Lamb, John Reekstin and Ray Silver, regarding
negotiations with Poseidon Resources and Southern California Edison Company
concerning the purchase/sale/exchange/lease of the property located at Pacific Coast Highway
and Newland Street immediately to the north of the AES Power Plant (APN 114-150-16).
Instruction will concern both price and terms of payment. (120.80)
Reconvene City Council/Redevelopment Agency Meeting
(City Council) Announcement by Mayor Dave Garofalo of Mayor Pro Tern Tom Harman's
Party Nomination as State Assemblyman for the 67th District (620.10)
Mayor Garofalo congratulated Mayor Pro Tern Harman for his successful nomination to the 67th
District State Assembly.
(City Council) City Attorney's Report of Action Taken by the City Council in Closed
Session (Pursuant to Government Code 554957.1(a) (3) (B)) —Approved Settlement in Re:
Ardolina et al. v. Del Mar Mobile Home Estates v. City, OCSCC No. 796920 (630.40)
City Attorney Gail Hutton announced that Council voted on a closed session item that on
Monday, September 18, 2000, the City Council convened in closed session to discuss the
matter of Ardolina et al. vs Del Mar Mobile Home Estates Inc., City of Huntington Beach, et al.,
Orange County Superior Court Case No. 796920. The City Council voted to approve payment
of $185,000 in settlement of the referenced case. Previously in the day, Judge John C. Woolley
had approved the good faith settlement subject to City Council's final approval. The motion
carried by the following roll call vote:
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: None
(4) September 18, 2000 - Council/Agency Minutes - Page 4
City Council — Redevelopment Agency Roll Call
Present: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
Absent: None
Flag Ceremony and Pledge of Allegiance — Boy Scout.Troop 274 of Huntington Beach,
Scoutmaster Jim Wallace.
Invocation — Bruce Templeton, First Christian Church, Huntington Beach.
City Clerk Announces Late Communications Which Pertain to Items on the Agenda
Pursuant to the Brown (Open Meetings) Act, the City Clerk announced the following Late
Communications regarding agenda items that had been received following distribution of the
agenda:
Page 11 of the Agenda — Revised Page (Art Center Budget).
Slide show report from the Department of Public Works titled City of Huntington Beach Traffic
Impact Fees.
Communication submitted by the Department of Public Works to the City Clerk's Office on
September 18, 2000 transmitting a review of current Major Capital Projects and slide show
presentation. Slide show presentation titled Review of Current Major Capital Projects — Public
Works.
Slide show presentation dated September 18, 2000 from Shari Freidenrich, City Treasurer titled
Treasurer's Report.
Communication dated September 15, 2000 from Mayor Pro Tem Harman transmitting his
request that the City Council approve the revised scope of work and method of funding
regarding the Urban Forest Project explained by staff at the September 5, 2000 meeting.
Communication titled FY Budget 200012001 Urban Forest Project.
Communication dated September 18, 2000 from the Director of Administrative Services
transmitting a list of adjustments to the 2000/2001 Preliminary Budget. Communication titled
Adjustment to 200012001 Preliminary Budget.
Communication dated September 18, 2000 from the Director of Administrative Services
transmitting a response to Mayor Pro Tern Harman's inquiry at the September 5, 2000 City
Council meeting regarding the increase in the General Fund since FY 1996/97. Communication
titled General Fund Increases Since FY 1996/97.
Communication dated September 18, 2000 from the City Attorney titled Agenda Item G-1A (Sex
Oriented Business Ordinance).
Presentation — By Mayor Dave Garofalo, Chief Lowenberg, Lieutenant Lloyd Edwards, and
Bob Marlowe, Law Enforcement Liaison for Mother's Against Drunk Driving (MADD), a
presentation of the "Deuce Awards." The award goes to the following Huntington Beach Police
Officers for having made 25 or more Driving Under the Influence (DUI) arrests between
July 1, 1999 and June 30, 2000: Mr. Marlowe stated that the Police Officers are responsible for
making Huntington Beach the safest city.
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September 18, 2000 - Council/Agency Minutes - Page 5
Greg Shaner, Traffic Officer
Richard Spencer, Motor Officer
Richard Wright, Motor Officer
David Wiederin, Traffic Officer
Tai Huyhn, Motor Officer
Joe Guarnera, Motor Officer
Chris Tatar, Motor Officer
DUI Arrests
DUI Arrests
75
Steven Spruil, Patrol Officer
27
60
Edward Colon, Patrol Officer
26
51
Jack Takemoto, Traffic Officer
26
41
Brian Knorr, Patrol Officer
25
38
Michael Kelly, Motor Officer
25
34
Kurt Svahn, Motor Officer
25
28
Presentation — Presentation by Mayor Dave Garofalo of Certificates of Commendation to
members of the Ocean View "All Stars" Little League Team who won their District and Southern
Regional Championships and were runners up in the National Tournament for a chance to go to
Williamsport to play in the World Series. The members of the team are: Manager:
Yun Conger; Coaches: Brian Carr, Randy Melchert; Players: Hank Conger, Greg Gonzalez,
David Jacobs, Eric Jaso, James Kang, Scott Melchert, Jeffrey Mollica, Chris Palmer,
Trey Valbuena, Jeffrey Van Doornum, Dallas Walters, Thomas Yoo; Alternate: Jarrett Carr.
Presentation — By Mayor Dave Garofalo and Ron Shenkman, Sr. Vice President, Rainbow
Disposal to Mary DeSloover, President, Literacy Volunteers of America -Huntington Valley and
Library Services Director Ron Hayden, the presentation of a donation of $2,000 to the LVA.
Presentation — By Mary DeSloover, LVA President, to Mayor Dave Garofalo and Library
Director Ron Hayden a check representing the contribution of Literacy Volunteers of America -
Huntington Valley to the Huntington Beach Library Adult Literacy Services. This fiscal year
LVA-HV raised and donated $10,000 in salary contributions, and $18,500 in operating
expenses. The group also donated 12,000 hours instructing adult literacy students at
Huntington Beach Library and Oak View Library, a contribution equal to the work of six full-time
employees.
Mayor's Award — To Susan Pierce, Associate Planner for her 28 years of service to the city.
On behalf of Planning Director Howard Zelefsky, Principal Planner Scott Hess announced
Mrs. Pierce's outstanding projects, which include the rewrite of Planning and Zoning Code and
the Flood Management Plan, the latter resulting in savings to homeowners. Mrs. Pierce was
also commended for her accomplishments as a trainer of Planners of the city's zoning code.
Public Comments
Phil de Barros, President Emeritus of the Huntington Beach Playhouse provided a brief history
of the playhouse. He spoke of its volunteer staff which includes the actors who are unpaid. He
named several of the plays that have been performed there. Mr. de Barros spoke in support of
the lease renewal payment not being increased.
Don MacAllister, past Huntington Beach Mayor and Councilmember, spoke on behalf of the
Board of Directors as a Board Member of the Huntington Beach Playhouse. He stated how the
Council of six years ago during which time he was a Councilmember, did not vote to approve
the five $5 million Library bond issue until after the Playhouse was included in the expansion.
Mr. MacAllister expressed his concern over the proposed payment increase of the lease
renewal and urged staff to update the lease for five years under the existing terms and
conditions.
Bettie Mueillenberg, current President of the Huntington Beach Playhouse, spoke in favor of
the recommended action on the city budget that Council forgive'the debts of the Art Center and
the Library. She stated that if such relief is granted it should no longer be necessary to press
(6) September 18, 2000 - Council/Agency Minutes - Page 6
the Playhouse for a lease payment increase. Ms. Mueillenberg requested Council support for
the continued recognition of quality live theater at reasonable ticket prices. She urged renewal
of a five-year status quo lease agreement. Ms. Mueillenberg also expressed her approval of the
proposed city credit card programs.
Vi Cowden, U.S. veteran, thanked the Huntington Beach Police Officers Association,
Councilmember Julien, the Department of Public Works, and Planning Commissioner Connie
Mandic for their support of the Flag Committee project. This project is to place American flags
on the Municipal Pier three times yearly - during the holidays of Veteran's Day, Memorial Day
and Independence Day - in remembrance of veterans. Ms. Cowden stated that forms are
available to purchase a flag to be put on the pier for $20.00.
Councilmember Julien spoke as a member of the Flag Committee, announcing that she will
distribute a City Council Communication during the public hearing on the city budget. The
communication relays her request for a $5,000 budget amendment in support of the project.
Norm Westwell, City Council candidate, expressed his appreciation to Councilmember Sullivan
and Deputy City Administrator/Director of Communications and Special Projects Rich Barnard
for their efforts on making PowerPoint presentation facilities accessible to public speakers at the
Council Chambers. Mr. Westwell spoke in opposition to what he stated is a truck wash being
constructed next to the drinking water reservoir; and against what he stated is an improper
procedure used relative to testing Water Well No. 10 at Producer Lane and Graham Street.
Al Caressa, resident of Los Amigos Mobile Home Park, spoke in support of rent stabilization.
He stated that his purpose for speaking was to crunch numbers, comparing and contrasting the
consumer price index with the rent payment history of several parks.
Steve Gullage, President, Huntington Beach Mobile Home Owners Association (HBMOA)
informed Council of his involvement with mobile home issues for the last 25 years. He spoke in
opposition to the Charter Amendment that would prohibit the city's ability to impose rent control.
Mr. Gullage stated that in an effort to preserve mobile home owners' rights he had recently met
with park owners with regard to Ed Laird's Charter Amendment proposal.
Gerald Chapman stated that he is a City Council candidate but at this time is speaking as
Co -Chair of the Art Center Foundation in support of the agenda item on the Art Center. He
stated that he favors the Strategic Plan but is questioning the procedure of having deficits held
over. Dr. Chapman requested support for the Library Services Department.
J. Devin Dwyer declared that he is running for City Council and presented his platform, which
includes working on behalf of the needs of the Fire and Police Departments. Mr. Dwyer stated
his opposition to the building of what he considers to be an expensively appointed fire station at
Edwards Street while other fire stations are in disrepair.
Marianna Handle, representative of the Naturist Action Committee, requested that the
proposed sex oriented business ordinance not pertain to naturists.
Don McGee stated his opposition to what he perceives as systems put in place which make for
corruption in government.
Cheryl Hoglund spoke in protest of nude juice bars. Ms. Hoglund stated her opposition to sex
oriented businesses as the beginnings of the moral decay, as well as disintegration such as she
has witnessed of other cities.
(7) September 18, 2000 - Council/Agency Minutes - Page 7
Leonard Crane spoke in support of keeping the baseball field facility at Rancho View School.
He expressed his concern that its proposed relocation to Park View School, next to Murdy Park
is an unnecessary move. Mr. Crane requested that the land be purchased with state funds for
youth playing fields.
Phil Good requested pedestrian access from Main Street and Yorktown Avenue to the Seacliff
Shopping Center.
Joey Racano requested new sewage plants for new developments, or the alternative for the
city to hold a moratorium on building on the Bolsa Chica coastal community. He explained how
it is imperative to implement a different, even if more costly, level of water treatment. Mr.
Racano stated that he plans to address the issues of sewage and toxic dumpsites as a City
Council member.
City Administrator's Report Re: Little League Field Relocation from Rancho View School
Site to Park View School Site (Near Murdy Park) (920.10)
In order to clarify the public speaker, Mr. Crane's statement, the City Administrator presented a report on
the Little League Field relocation from Rancho View school site to Park View school site.
(City Council) Announcement by Councilmember Julien of the Orange County Register Reader's
Choice Awarding Huntington Beach as the "No. 1 Best City to Live in" (160.10)
Councilmember Julien announced that the city has been awarded as the No. 1 "Best City to Live In" in
the Orange County Register Newspaper survey.
(City Council) Approved Appointment of Linda B. Kelly and Reappointment of
Flint Morrison to the Personnel Commission as Recommended by Council Liaisons
Pam Julien and Dave Sullivan (110.20)
The City Council considered a communication from Councilmembers Pam Julien and Dave
Sullivan recommending the Personnel Commission appointment of Linda B. Kelly for a term to
expire June 30, 2004; and the reappointment of Flint Morrison for a term to expire
June 30, 2004.
A motion was made by Julien, seconded by Sullivan to 1. Approve the appointment of
Linda B. Kelly to the Personnel Commission for a term to expire 6/30/04; and 2. Approve the
reappointment of Flint Morrison to the Personnel Commission for a term to expire 6/30/04. The
motion carried by the following roll call vote:
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: None
(City Council) Announcement by Councilmember Ralph Bauer Re: League of California
Cities Resolution Relating to Non -Point Source Pollution Authored by Councilmember
Peter Green — Document Approved by the League of California Cities and Referred to the
Environmental Quality Policy Committee (150.40)
The City Council considered a communication and resolution from Councilmember Bauer
expressing his appreciation to Councilmember Peter Green for his foresight in authoring a
League of California Cities resolution relating to non -point source pollution. Councilmember
Bauer supported the resolution through the Orange County League of Cities and the State
(8) September 18, 2000 - Council/Agency Minutes - Page 8
League to the Environmental Quality Policy Committee. Councilmember Bauer is pleased to
announce that a modified form of the document was approved on September 9, 2000 by the
General Assembly of the League of Cities at its Annual Conference in Anaheim.
Councilmember Green informed everyone of the following information relative to the city's water
quality, that:
1. The implication sewage is responsible for the beach postings of last summer is inaccurate;
2. The discharge into the ocean is not a problem with regard to being a point source of
contamination; and
3. The issue of clean water is within the purview of the Coastal Committee.
Councilmember Green commended the efforts of Senior Department Analyst Patricia Dapkus
and Director of Organizational Effectiveness Clay Martin with regard to this issue.
(City Council) Announcement by Councilmember Ralph Bauer Re: Resolution Relating
to Legal Action by the League of California Cities to Oppose Binding Arbitration with
Local Police and Fire Employees — State Assembly Bill 402 (150,40)
The City Council considered a communication from Councilmember Ralph Bauer transmitting
the announcement that on September 9, 2000 the General Assembly of the League of California
Cities unanimously passed a resolution which empowers the League to take a legal action when
binding arbitration is signed into law.
Councilmember Bauer informed everyone that it is an unusual move for the League to take.
City Administrator's Update on Public Works Department Capital Projects Underway
(160.10)
The City Council considered a communication on the ongoing report titled Public Works
Department Capital Improvements Program — Capital Projects Update by Public Works Director
Robert Beardsley. This month's Capital Projects Update is titled Review of Major Capital
Projects Currently Under Construction, a short PowerPoint photo tour of several of the major
capital projects that are currently under construction, or just recently completed. The foregoing
communication and PowerPoint slide presentation had been announced earlier as Late
Communications by the City Clerk.
Public Works Director Robert Beardsley introduced two members of his staff: Civil Engineering
Assistant Eric Charlonne, and Principal Civil Engineer Doug Stack.
Civil Engineering Assistant Charlonne, Contract Manager for capital projects delivered the
PowerPoint presentation that had been announced earlier as a Late Communication by the City
Clerk. Principal Civil Engineer Doug Stack responded to questions.
Council thanked staff for their reports and for the PowerPoint "photo -tour."
(City Council) Reviewed and Accepted City Treasurer's July 2000 Investment Summary
Report (310.20)
The City Council considered communication from the City Treasurer transmitting the Monthly
Investment Report for July 2000.
(9) September 18, 2000 - Council/Agency Minutes - Page 9
City Treasurer Shari Freidenrich delivered the PowerPoint slide presentation that had been
announced earlier as a Late Communication by the City Clerk.
Mayor Pro Tern Harman inquired about the status of the implementation of the J. D. Edwards
software to be installed for the cash flow update program.
City Treasurer Freidenrich replied that newly hired Deputy City Treasurer Jim Slobojan will be
working with the Infrastructure Advisory Board in conjunction with this matter.
Council thanked City Treasurer Freidenrich for her report.
A motion was made by Sullivan, second Green to review and accept the monthly report.
Following review of the report, by motion of Council, accept the Monthly Investment Report
Summary of Investment Portfolio for July 2000, pursuant to Section 17.0 of the Investment
Policy of the City of Huntington Beach. The motion carried by the following roll call vote:
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: None
(City Council) Public Hearing — Adopted the City Budget for Fiscal Years 2000-2001 —
Adopted Resolution No. 2000-90 As Amended to Include (1) Water Provision for Ellis
Avenue Improvements, (2) Unfunded Projects on Priority List, and (3) Appropriation of
Funds for Installation/Removal of American Flags on Municipal Pier — Directed Staff to
Schedule a Study Session on the Financing Needs of the H. B. Surfing Museum (320.20)
Mayor Garofalo announced that this was the time scheduled for a public hearing to consider the
following:
Public hearing for the purpose of considering the city budget for Fiscal Years 2000-2001.
The proposed budget for FY 2000/01 totals $276,694,901 including General Fund Expenditures
of $127,579,073 (as presented on September 5, 2000). The complete Preliminary, Two -Year
Budget Proposal can be reviewed by the public from 8:00 a.m. to 5:00 p.m., Monday through
Friday in the City Clerk's Office at City Hall, 2000 Main Street, Huntington Beach. Copies of
the proposed budget are also available for public review at the City's Central Library located at
7111 Talbert Avenue (Goldenwest Street and Talbert Avenue), and all branch libraries. Copies
of the Preliminary Budget Message and Summaries may be obtained by the public, free of
charge, at the aforementioned locations.
All interested persons, especially senior citizens and handicapped individuals, are invited to
attend the budget hearing to express their opinions for or against the proposed budget with
written or oral comments. Written communications to the City Council also may be mailed to the
City Clerk. Further information may be obtained from the Office of the City Clerk.
Legal notice as provided to the City Clerk's Office by staff had been mailed, published and posted.
Earlier in the meeting, the City Clerk had announced that the following Late Communications on
this item had been provided to the City Council:
Communication dated September 15, 2000 from Mayor Pro Tem Harman transmitting his
request that the City Council approve the revised scope of work and method of funding
regarding the Urban Forest Project explained by staff at the September 5, 2000 meeting.
Communication titled FY Budget 200012001 Urban Forest Project.
(10) September 18, 2000 - Council/Agency Minutes - Page 10
Communication dated September 18, 2000 from the Director of Administrative Services
transmitting a list of adjustments to the 2000/2001 Preliminary Budget. Communication titled
Adjustment to 200012001 Preliminary Budget.
Communication dated September 18, 2000 from the Director of Administrative Services
transmitting a response to Mayor Pro Tern Harman's inquiry at the September 5, 2000 City
Council meeting regarding the increase in the General Fund since FY 1996/97. Communication
titled General Fund Increases Since FY 1996197.
Mayor Garofalo declared the public hearing open.
Natalie Kotsch representing the Huntington Beach International Surf Museum, spoke relative to
the museum's success in collecting art and artifacts. She listed several critical needs, including
funding for computer software to catalog the collection and for museum facility improvements.
There being no persons present to speak further on the matter and there being no protests filed,
either written or oral, the hearing was closed by the Mayor.
Considerable discussion ensued relative to the Late Communication items proposing
amendments to the budget.
A motion was made by Bauer, second Harman to: 1. Provide the water connection on Ellis
Avenue for the water meter, and the pipe and backflow device during the construction of Ellis
Avenue improvements. These improvements will be paid by traffic impact fees, thereby
reducing costs to the General Fund budget; and 2. Approve the remaining cost of forty
thousand dollars ($40,000) to come from the unappropriated funds remaining from the $3.6
million that was set aside for the unfunded and underfunded project list. The motion carried by
the following roll call vote:
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: None
In addition, Councilmember Julien presented the City Council Late Communication she had
announced earlier in the meeting, dated September 18, 2000 and titled American Flags on the
Pier.
Discussion followed relative to the proposal. Public Works Director Beardsley answered
Council questions on the logistics of the installation and removal of the flags on the 54 light
poles on the pier.
A motion was made by Dettloff, second Green to: 1. Appropriate the $2,160 donation from the
Huntington Beach Police Officers Association to the General Fund Special Events budget,
Account 83700, for the purpose of obtaining brackets and miscellaneous material for flags to be
installed on the pier during the Veteran's Day, Memorial Day, and Independence Day holidays;
and 2. Appropriate $1,800 to Special Events Account 69365, professional services, for the
installation cost of the flag brackets and to install and remove flags three times per year. The
motion carried by the following roll call vote:
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: None
(11) September 18, 2000 - Council/Agency Minutes - Page 11
A motion was made by Garofalo, second Green to: Adopt Resolution No. 2000-90 as
amended — "A Resolution of the City Council of the City of Huntington Beach Adopting a Budget
for the City for Fiscal Year 2000/01,"approving the Fiscal Year 2000/01 City Budget and
incorporating the "Addendum" (Exhibit C) to the proposed budget.
Staff Directed to schedule Study Session Re: Plans/Finances of Surf Museum (270.10)
A motion was made by Julien, second Dettloff to request staff to schedule a study session at a
later date to discuss long-term plans and the financing needs of the Huntington Beach Surfing
Museum. The motion carried by the following roll call vote:
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: None
Consent Calendar — Items Approved
Mayor Garofalo announced that he is going to be abstaining from voting on the approval of the
August 21, 2000 minutes due to his absence at the Council meeting. He stated that he is also
going to be recusing himself from consideration of the sale of property from Shea Vickers
Development to Pacific Gulf Properties due to a possible conflict of interest.
Mayor Pro Tern Harman informed Council that he is also going to be abstaining from the motion
to approve the Shea Vickers pending sale for the same reason of conflict of interest. Mayor Pro
Tern Harman stated that his law office in Seacliff Office Park is situated 600 feet from the
subject property that is under the auspices of the Holly Seacliff Development. Agreement.
On motion by Green, second Dettloff, Council approved the following Consent Calendar items,
as recommended. The motion carried by the following roll call vote:
AYES: Julien, Harman, Sullivan, Garofalo, Green, Dettloff, Bauer (Garofalo — Abstain from
the August 21, 2000 minutes; and Garofalo and Harman — Abstain from the Shea
Vickers Development Pending Sale)
NOES: None
ABSENT: None
(City Council/Redevelopment Agency) Minutes - Approved and adopted the minutes of the
City Council/Redevelopment Agency adjourned regular meetings of August 14, 2000, and the
regular meetings of August 21, 2000 as written and on file in the Office of the City Clerk.
Submitted by the City Clerk.
(City Council) Received and Filed City Clerk's Clarification of Record Re: Consent for
Pending Sale of Property — (s/o Yorktown Avenue, e/o Goldenwest Street) Assessor's
Parcel No. 023-020-07 from MS Vickers II to the H. B. Union High School District (600.10)
Directed that the City Council record reflect the City Clerk's Office Notification that the action
taken by Council on June 19, 2000 on the Certificate of Consent to Sale of Property from MS
Vickers II to Huntington Beach Union High School District is void and that the Certificate of
Consent does not require execution. Submitted by the City Clerk. Funding Source: Not
applicable.
(City Council) Accepted Bid and Awarded Contract to Baxter -Griffin Company, Inc. for
Traffic Signals at Florida Street/Yorktown Avenue and Graham Street/McFadden Avenue;
CC-1135 (600.55) -1. Accepted the bid submitted by Baxter -Griffin Co., Inc.; and 2. Approved
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and authorized the Mayor and City Clerk to execute the contract for the Traffic Signals at
Florida/Yorktown and Graham/McFadden for a total contract amount of $98,846; and
3. Authorized the Director of Public Works to expend $248,000 to cover the contract cost of
$98,846, anticipated construction change orders of $9,900, supplemental expenses of $4,254,
and anticipated traffic signal equipment and materials costs of $135,000. Submitted by the
Public Works Director. Funding Source: Air Quality Fund, Traffic Signal Systems.
(City Council) Accepted Construction Project with CJ Construction, Inc. for 46
Wheelchair Ramps; CC-1122 for Various Neighborhood Enhancement Areas — Authorized
the City Clerk to File a Notice of Completion — Approved Expenditure of Community
Development Block Grant (CDBG) Funds (600.70) - 1. Accepted the CDBG Wheelchair
Ramp Construction Project in the Enhancement Areas, Cash Contract 1122; for a final cost of
$40,602.20; and 2. Authorized the City Clerk to file a Notice of Completion with the County
Recorder's Office. Submitted by the Economic Development Director and the Director of Public
Works. Funding Source: Community Development Block Grant Funds.
(City Council/Redevelopment Agency) Accepted Bid and Awarded Contract to GMC
Engineering, Inc. for the Construction of the 51h Street Parking Plan (Third Block West);
CC-1116 - Approved Reappropriation and Expenditure of Funds (600.30) —
Redevelopment Agency Actions: 1. Approved the lowest responsive/responsible bid
submitted by GMC Engineering, Inc. for the 5th Street Parking Plan, CC-1116; and 2.
Authorized the Chairman and Agency Clerk to execute the construction contract in the amount
of $352,150; and 3. Reappropriated $162,000 from the unreserved, undesignated
Redevelopment Agency Capital Projects Fund to the Economic Development Redevelopment
Fund — Third Block West. City Council Action: Authorized the Director of Public Works to
expend a total of $405,000 to cover the contract amount of $352,150, estimated construction
contingency of $35,215, and supplemental expenditures of $17,635. Submitted by the
Economic Development Director and the Director of Public Works. Funding Source: Economic
Development Redevelopment Fund, Third Block West - $243,000. Reappropriation of
unreserved, undesignated Redevelopment Agency Capital Projects Fund - $162,000.
(City Council) Approved Consent for Pending Sale from Shea Vickers Development, LLC
to Pacific Gulf Properties, Inc. of a 9.3 Acre Property (Currently Owned by Victoria
Woods -Festival, LLC) Known as APNs 023-010-10, 27 - Holly Seacliff Development Area
Agreement No. 90-1 — s/w Corner of Main Street and Clay Avenue — Authorized Execution
of Consent to Sale of Property and Assumption of Rights, Duties and Obligations
(600.10) —1. Pursuant to Section 4.2 of the Holly Seacliff Development Agreement, approved
the request by Shea Vickers Development, LLC for the City Council to provide consent for the
pending sale of 9.3 acre property known as APNs (Assessor Parcel Numbers) 023-010-10, 27
to Pacific Gulf Properties, Inc.; and 2. Approved and authorized the Mayor and City Clerk to
execute the Certificate of Consent to the Sale of Property and the Assumption of Rights, Duties
and Obligations, and authorize the City Clerk to record said document with the County
Recorder. Submitted by the Planning Director. Funding Source: Not applicable.
(Redevelopment Agency) Adopted Resolution No. 312 of the Redevelopment Agency
Amending the Agency Debt (to Receive Tax Increment Revenue) Pursuant to the Operative
Agreement Between the City and the Agency for the H B Redevelopment Fund per
California Community Redevelopment Law Requirements to File Annual Statement
(600.30) — Adopted Resolution No. 312 - "A Resolution of the Redevelopment Agency of the City
of Huntington Beach Amending the Agency Debt Pursuant to the Operative Agreement Between
the City of Huntington Beach and the Redevelopment Agency of the City of Huntington Beach for
the Huntington Beach Redevelopment Project." Submitted by the Administrative Services
Director and the Economic Development Director. Funding Source: Not applicable. The
(13) September 18, 2000 - Council/Agency Minutes - Page 13
Redevelopment Agency of the City of Huntington Beach incurs debt to receive tax increment
revenue in accordance with California Community Redevelopment law. The Agency is required to
file an annual statement to document this debt with the County of Orange Auditor/Controller by
October 1, 2000. This statement is also needed for audit purposes and to keep the City Council
informed of the changes in the debt owed the city by the Redevelopment Agency.
(City Council) Approved Agreement between the City and Emergency One, Inc. for Repair
and Rebuild of Four Saulsbury Fire Engines — Authorized Expenditure of Funds (600.10) —
1. Approved and authorized the Mayor and City Clerk to execute the Agreement between the City
and Emergency One, Inc. for Repair and Rebuild of Four Saulsbury Fire Engines pending
approval of the appropriate Certificates of Insurance and Bond by the City Attorney; and
2. Authorized the appropriation of $304,530 from the Unappropriated Fund Balance of the
Equipment Replacement Fund and the transfer to and expenditure from the Fire Department's
Fiscal Year 2000/2001 Equipment Replacement Account (55340104.64570). Submitted by the
Fire Chief/Information Systems Director. Funding Source: Per Recommended Action above.
(City Council) Approved Appointment of Administrative Services Director as Trustee of
City Employees' IRC457 Deferred Compensation Plan — Approved Foreclosure Procedure
on Defaulted Trust Deeds - Assessor Parcel Nos. (APNs) 949-130-019 (Riverside County)
and 7275-002-102 (Los Angeles County) —Approved Expenditure of Funds (700.55)
1. Appointed the Director of Administrative Services as Trustee of the City of Huntington Beach
Employees IRC457 Deferred Compensation Plan; and 2. Authorized expenditure in the amount of
$10,500 to cover the costs of the foreclosure procedure to cure the defaults on specified plan
assets owned by the City of Huntington Beach as Trustee of the City Employees' IRC457
Deferred Compensation Plan; and 3. Authorized the Director of Administrative Services to
proceed with the foreclosure procedure against the following parcels: APN 949-130-019,
Riverside County; APN 7275-002-102, Los Angeles County. Submitted by the Administrative
Services Director. Funding Source: Non -departmental, miscellaneous account - $10,500.
(City Council) Adopted Resolution No. 2000-89 Calling for a Public Hearing on .
October 16, 2000 to Determine Whether Public Necessity, Health, Safety or Welfare Require
the Formation of Underground Utility District No. 00-01 (Beach Boulevard between
Yorktown Avenue and Pacific Coast Highway) (350.20) — Adopted Resolution No. 2000-89 -
"A Resolution of the City Council of the City of Huntington Beach Calling a Public Hearing to
Determine Whether Public Necessity, Health, Safety or Welfare Require the Formation of an
Underground Utility District on Beach Boulevard between Yorktown Avenue and Pacific Coast
Highway." Submitted by the Public Works Director. Funding Source: No city funds required.
(Redevelopment Agency) Approved Amendment No. 1 to Professional Services Contract
Agreement between the H. B. Redevelopment Agency and Sanli Pastore and Hill, Inc. for
Business and Goodwill Loss Valuation in Re: Mulligan Versus Redevelopment Agency,
OCCSC Case No. 74 00 99 (600.30) Approved Amendment No.1 to Agreement between the
Redevelopment Agency of the City of Huntington Beach and Sanli Pastore & Hill, Inc. for
Business Valuation and Goodwill Loss Valuation,"and authorized execution by the Chairman and
Agency Clerk. Submitted by the City Attorney. Funding Source: Redevelopment Agency Capital
Project Area #1. (Original agreement between the H. B. Redevelopment Agency and Sanli
Pastore & Hill per H. B. Municipal Code for Under $20,000 Contracts.)
(City Council) Part 1 of 3 - Approved Art Center Reorganization/Strategic Action Plan/
Assessment — Approved FY 2000-2001 Art Center Budget — (320.20)
The City Council considered a communication from the Community Services Director advising
that pursuant to Council direction on May 17, 1999 staff has prepared the Art Center
(14) September 18, 2000 - Council/Agency Minutes - Page 14
Assessment and the Strategic Plan for Council approval. Funding Source: General Fund and
Park Acquisition and Development Unappropriated Fund Balances.
Community Services Director Ron Hagan gave a PowerPoint slide presentation dated
September 18, 2000 and titled Agenda Item F-1: A. - Proposed Art Center Strategic Plan;
B. - Proposed Community Cultural Arts Grants Program; _and C. - Proposed Financial Corporate
Partnership "Sun` City Credit Card" Program" (a hard copy of which had been included in the
agenda packet).
Considerable discussion was held, during which Administrative Services Director John Reekstin
clarified the two deficits amounting to over $1 million. He addressed the need to pay the
operating costs over five years of $522,000 of the accounts receivable in the General Fund; and
the shortfall of $521,000 of the accounts receivable (repayment loan) in the Park Acquisition
and Development Fund.
Councilmember Sullivan suggested installation of parking lot meters at the Art Center as a
potential source of revenue for the city. Councilmember Sullivan stated that this is because of
the heavy use by traffic from Taco Surf and other restaurants and business establishments in
the immediate vicinity.
Cultural/History Events Manager Mike Mudd responded to questions relative to Art Center event
costs.
Councilmember Green spoke regarding the merits of the Huntington Beach Playhouse,
including the fact that the Library Board works on the production sets. He announced The Last
Night of Ballyhoo, which is a play put on by the Huntington Beach Playhouse from
September 15 through October 8, 2000.
Councilmember Green alluded to the requests made during public comments that the lease
payment not be increased.
A motion was made by Councilmember Green to update the Huntington Beach Playhouse lease
for five years with the existing terms and conditions.
Councilmember Bauer responded that he will vote against the motion, as the Library Board will
be meeting the next day to address the issue.
Councilmembers Dettloff and Julien concurred that any alternatives proposed in a staff report
would need to be open for input and debate by the Library Board.
Councilmember Green withdrew his motion.
Mayor Garofalo commended Cultural/History Events Manager Mike Mudd for his "hands on"
leadership approach with the Art Center.
Mayor Garofalo requested staff to copy Council on the results of the Library Board review of the
Huntington Beach Playhouse lease contract.
(15) September 18, 2000 - Council/Agency Minutes -Page 15
A motion was made by Sullivan, second Bauer to: 1. Approve the Strategic Plan for Art Center
programs, staffing and operations; and 2. Approve the Art Center budget for FY 2000-2001,
which provides for the city to support the Art Center at the $100,000 level, the Art Center
Foundation to support the Art Center at the $75,000 level, and a program income level of
$105,000; and 3. Confirm that the city, not the Art Center Foundation, shall be responsible for
the past capital and operating deficit in the Art Center Fund; and 4. Direct staff to close out the
Cultural Fund's accumulated five year operating deficit of $522,000 which will reduce the
unappropriated General Fund reserve by the same amount, and direct staff to transfer $486,000
from the General Fund reserve to the Park Acquisition and Development Fund to repay prior
loans of $194,000 to the Cultural Fund and $292,000 to the Library Services Fund. The motion
carried by the following roll call vote:
AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: None
Mayor Pro Tern Harman left at 10:45 p.m. due to a 4:00 a.m. flight.
City Administrator Silver requested to switch the order of the remaining two parts of the three-
part item on the Art Center. Council concurred and the administrative item was continued as
follows:
City Council) Part 2 of 3 - Approved in Concept to Pursue a Corporate Partnership
Agreement in the Financial Category for Staff to Develop Contract Negotiations with a
Public Enterprise Group Re: the Establishment of a Community Art Fund Grant Program
(265.10)
The City Council considered a communication from the Community Services Director
transmitting for Council consideration, a proposal to approve in concept, the city's corporate
partnership program with a financial institution for banking ATMs (Automatic Teller Machines)
and a Surf City credit card.
In 1997, City Council approved the concept of pursuing corporate partnerships in various
categories in order to generate nontraditional sources of revenue for city programs and
activities. Staff is now recommending Council approval of a second category entitled "financial
partnership," under which the city would be looking to enter an exclusive partnership agreement
for banking services, the ATM locations on public property, and a co -branded Surf city credit
card program. Funding Source: The program will provide a revenue source for the Park Fund,
Library Fund, Cultural Fund and General Fund.
Community Services Director Hagan furnished a PowerPoint slide presentation dated
September 18, 2000 and titled Item F-1 C - City of Huntington Beach Corporate Partnership
Programs (a copy of which had been included in the agenda packet).
Community Services Director Hagan informed Council that the financial institution, and not the
city is going to be receiving the interest fees derived from the credit card charges.
Discussion followed regarding options to consider for interest rate percentages.
Community Services Director Hagan stated that staff has sent requests for proposals and
received responses from three credit card companies.
(16) September 18, 2000 - Council/Agency Minutes - Page 16
A motion was made by Dettloff, second Green to approve in concept a corporate partnership
agreement in the financial category; direct staff to proceed with negotiations, and return to
Council with a contract with Public Enterprise Group to act as the city's agent. The motion
carried by the following roll call vote:
AYES: Julien, Sullivan, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: Harman
(City Council) Part 3of 3 - Approved Establishment of a Community Art Fund Grant
Program for the Year 2001 (265.10)
The City Council considered a communication from the Community Services Director
transmitting for Council consideration the professional development of arts organizations to
serve the residents of Huntington Beach by providing annual grants.
Community Services Director Hagan presented a slide report.
A motion was made by Green, second Dettloff to: 1. Approve the draft Community Art Fund
Grant Program; and 2. Direct staff to establish a new fund entitled "Community Art Fund;" and
3. _Direct staff to begin implementation of the Community Art Fund Grant Program, by (a)
soliciting grants; and (b) beginning the grant application process for the year 2001. The motion
carried by the following roll call vote:
AYES: Julien, Sullivan, Garofalo, Green, Dettloff, Bauer
NOES: None
ABSENT: Harman
(City Council) Continued to October 2, 2000 for Revision Per City Attorney - Ordinance
No. 3470 to Amend H. B. Municipal Code Chapter 5.70 Re: Limiting Enforcement of Sex
Oriented Business Regulations — Modifications and Findings (640.10)
The City Council considered a communication from the City Attorney that had been announced
earlier as a Late Communication by the City Clerk. The Late Communication is dated
September 18, 2000 and titled Agenda Item G-1A (Sex Oriented Business Ordinance).
City Attorney Gail Hutton read from the legislative findings.
Discussion followed, resulting in a direction to remove from the ordinance any findings that do
not correlate with sex oriented businesses.
A motion was made by Green, second Dettloff to continue to October 2, 2000 Ordinance
No. 3470 for revision per the City Attorney memorandum. The motion carried by the following
roll call vote:
AYES: Garofalo, Green, Dettloff, Bauer
NOES: Julien, Sullivan
ABSENT: Harman
Councilmember Sullivan announced a Mayor's Breakfast on September 28, 2000 at Huntington
Beach Hospital where all candidates have been invited to briefly speak.
(17) September 18, 2000 - Council/Agency Minutes - Page 17
Adjournment — City Council/Redevelopment Agency
Mayor Garofalo adjourned the regular meetings of the City Council and the Redevelopment
Agency of the City of Huntington Beach to Monday, October 2, 2000, at 5:00 p.m., in Room B-8,
Civic Center, 2000 Main Street, Huntington Beach, California.
ATTEST:
City Clerk and ex-officio Cler of the City
Council of the City of Huntington Beach
and Clerk of the Redevelopment Agency
of the City of Huntington Beach, California
ity Clerk -Clerk Mayor -Chairman