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HomeMy WebLinkAbout2000-10-02 (12)Minutes 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, October 2, 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 5:00 p.m. City Council -Redevelopment Agency Meeting Roll Call Present: Sullivan, Harman, Garofalo, Green, Dettloff, Bauer (Julien arrived 5:10 p.m.) Absent: None Motion To Recess To Closed Session - Approved Councilmember Sullivan stated for the record that Council will deliberate whether or not to discuss Amwest Environmental during Closed Session. A motion was made by Harman, second Green to recess to Closed Session on the following items. The motion carried by the following roll tail vote. AYES: Sullivan, Garofalo, Harman, Green, Dettloff, Bauer (Julien — Absent at vote; arrived 5:10 p.m.) NOES: None ABSENT: None (City Council) Closed Session — 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 & 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 Amwest Environmental Group, et al. v. City of Huntington Beach, et al., O. C. Superior Court Case No. 00 CC 08364. (120.80) (2) October 2, 2000 -- Council Agency Minutes - Page 2 (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 Huss, et al. v. City of Huntington Beach, U. S. District Court Case No. SACV-98-249 AHS (ANX). (120.80) (City Council) Closed Session — Pursuant to Government Code Section 54956.9(b)(2)(B) to confer with its attorney regarding pending litigation. The title of the litigation is PLC Land Company (Parcel 7A). (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.) (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 Ulmer, as Guardian Ad Litem for Minor Blackman, et al. v. City of Huntington Beach, et al; O. C. Superior Court Case No. 00CC01815. (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 Edward Resek v. City of Huntington Beach, et al. U. S. District Court No. CV 99-09909. (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 Robert Campbell v. City of Huntington Beach, Workers' Compensation Case No. ANA 224122, City Claim No. COHB 1016; and Workers' Compensation Case No. (Unassigned); City Claim No. COHB-99-0085. (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 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 — Pursuant to Government Code Section 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) (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 Redevelopment Agency v. Frank Mola, O. C. Superior Court Case No. 77 25 15. (400.50) (3) October 2, 2000 — Council -Agency Minutes - Page 3 7:00 P.M. - Council Chamber Reconvene City Council -Redevelopment Agency/Public Financing Authority Meeting (City Council) City Attorney's Report of Action Taken by the City Council in Closed Session (Pursuant to Government Code §54957.1(a) (3) (B)) — Authorized Continued Cross -Complaint for Indemnity v. Davey Tree Expert Company and Davey Resources Group ("Davey Tree") in Re: Gouin v. City, OCSCC No. 80 08 05. — Extended Settlement Authority by City and Liberty Mutual Insurance Company (120.80) Assistant City Attorney Scott Field announced a report of action taken on Tuesday, January 18, 2000 when the City Council convened pursuant to Government Code Section 54956.9(a) in Closed Session to discuss the matter of Gouin v. City of Huntington Beach, Orange County Superior Court Case No. 80 08 05. City Council voted to (1) Extend settlement authority up to and including $43,000, and (2) authorize continued Cross -Complaint v. Davey Tree Expert Company and Davey Resource Group ("Davey Tree"). The case settled for $86,000. Said amount funded equally on a 50150 basis by the City ($43,000) and Liberty Mutual Insurance Company ($43,000). The motion carried by the following roll call vote: AYES: Julien, Sullivan, Garofalo, Green, Dettloff NOES: Harman, Bauer ABSENT: None (City Council) City Attorney's Report of Action Taken by the City Council in Closed Session (Pursuant to Government Code §54957.1(a) (3) (B)) — Direct City Attorney and Planning Director to Renotice the SRO (Single Room Occupancy) Project — Amwest Environmental Corp. (120.80) Assistant City Attorney Scott Field announced a report of action taken on Monday, October 2, 2000 when the City Council convened in Closed Session pursuant to Government Code Section 54956.9(a) to discuss the matter of Amwest Environmental Group, et al. v. City of Huntington Beach, et al., Orange County Superior Court Case No. 00 CC 08364. The City Council voted unanimously to direct the City Attorney and Planning Director to schedule the Single Room Occupancy (SRO) agenda item for a public hearing on November 6, 2000. Roll Call (includes City Council -Redevelopment Agency Members Sitting as Public Financing Authority Members on Agenda Item Relating to the Acceptance of Phase I Improvements for the City Wide Energy Retrofit Program with Sempra Energy Solutions) PRESENT: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer ABSENT: None Flag Ceremony and Pledge of Allegiance and Invocation — Cub Scouts, Den 1, Pack 1450 from Golden View School, Huntington Beach, Scoutmaster Rick Johnston. 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: (4) October 2, 2000 — Council -Agency Minutes - Page 4 Correction to Page 16 — Revised Agenda Page. (Re: Councilmember Sullivan's items on 1) Megan's Law and 2) Measure "H".) Correction to Page 17 — Revised Agenda Page. (Re: Councilmember Julien's added item on the Gift Ban Ordinance.) PowerPoint slide report from the Department of Public Works dated October 2, 2000 titled Urban Runoff/Coastal Remediation Action Plan. Communication dated September 29, 2000 from the Department of Economic Development transmitting additional information regarding the agenda item on the public hearing on the Huntington Center Owner Participation Agreement, including slide show presentation titled Huntington Center Owner Participation Agreement. Communication titled Late Communication/Agenda Item D-1— Joint Public Hearing on Proposed OPA with Huntington Center Associates. Communication dated September 29, 2000 from Jonathan C. Curtis of Sheppard, Mullin, Richter & Hampton,-LLP (representing Montgomery Ward, LLC) transmitting their objection to the unavailability of the staff report for the agenda item on the public hearing on the Huntington Center Owner Participation Agreement as of 9:30 a.m., September 29, 2000. Communication titled City Council and Redevelopment Hearing on Monday, October 2, 2000 Regarding Owner Participation Agreement for Huntington Center. Communication dated October 2, 2000 from Sheppard, Mullin, Richter & Hampton, LLP (representing Montgomery Ward, LLC) for the agenda item on the public hearing on the Huntington Center Owner Participation Agreement. Communication titled City Council and the Redevelopment Agency Board of City of Huntington Beach Joint Public Hearing on Monday, October 2, 2000, Agenda Item No. D-1, to Consider Approval of an Owner Participation Agreement (with Environmental Findings) and a Cooperation Agreement between the Redevelopment Agency and the City of Huntington Beach with Huntington Center Associates, LLC. Communications submitted by various Huntington Beach residents to the City Clerk's Office on September 29, 2000 transmitting their support of retaining Wards in the redevelopment of the Huntington Center. (From: Darcey Lainson, Kim Maurer, Tracy Vaughan, Dana Bowden, and Sunday Christy.) Communication dated September 28, 2000 from Spencer H. Heine, President of Montgomery Ward Properties requesting a continuance of the October 2, 2000 Public Hearing on the Owner Participation Agreement. Communication titled Joint Public Hearing of the City Council and Redevelopment Agency on October 2, 2000, the Proposed Owner Participation Agreement between the Redevelopment Agency of the City of Huntington Beach and Huntington Center Associates, LLC, to Develop Huntington Center. Communication submitted by Huntington Beach resident Jinx Verona to the City Clerk's Office on October 2, 2000 transmitting his support of retaining Wards in the redevelopment of the Huntington Center. Communication titled The Huntington Beach Mall. Communication relative to the agenda item on the public hearing on the Huntington Center Owner Participation Agreement dated September 28, 2000 from Joyce Riddell, President of the (5) October 2, 2000 — Council -Agency Minutes - Page 5 Huntington Beach Chamber of Commerce. Communication transmits the Board of Directors' support of a plan for the "Crossings at Huntington" that provides for the highest quality development that is economically feasible. Communication dated October 2, 2000 from Aviv Tuchman of Tuchman & Associates (representing Burlington Coat Factory) transmitting Burlington Coat Factory's objections to the City Council approving the proposed Owner Participation Agreement. Communication titled City Council Meeting on Tuesday, October 2, 2000 Re: Adoption of the Owner Participation Agreement. (Attachments A— l_ are an File for Public Review in the Office of the City Clerk.) Communication dated October 2, 2000 from Huntington Beach resident Debbie Cook transmitting her opinions regarding the redevelopment of Huntington Center. Communication relative to the agenda item on the public hearing on the Huntington Center Owner Participation Agreement dated September 30, 2000 from Patricia Enyeart opposed to the removal of Montgomery Ward. Communication dated October 2, 2000 from Loren Cohen from the Law Firm of Tuchman & Associates titled Burlington Coat Factory Proposals. Communication dated October 2, 2000 from the City Attorney's Office transmitting modifications to the proposed Ordinance & Resolution establishing a Fair Share Traffic Mitigation Impact Fee. Communication titled Agenda Item D-3 of the October 2, 2000 City Council Meeting, Fair Share Traffic Mitigation Impact Fee. Slide show presentation dated October 2, 2000 from the Department of Public Works titled Fair Share Traffic Mitigation Impact Fee — Public Works Department — City of Huntington Beach — Traffic Impact Fees. Copy of Ordinance No. 3470 submitted by the City Attorney's Office to the City Clerk's Office on October 2, 2000. Attached version replaces ordinance version submitted in the agenda packet for the agenda item on the Sex Oriented Business Ordinance for the October 2, 2000 City Council Meeting. Communication dated October 2, 2000 from Bob Biddle, President of Huntington Beach Tomorrow, Inc. transmitting the company's opinion regarding the proposed reception to be hosted by Councilmember Bauer. Communication titled Councilman Bauer's H-Item regarding Hosting Party for the Huntington Beach Olympians. Communication submitted by Chauncey A. Alexander to the Office of the City Clerk on October 2, 2000 regarding the Health Care Policy of Orange County Board of Supervisors. Communication titled Health Care Policy of Orange County Board of Supervisors. Presentation — To Mayor Dave Garofalo and Economic Development Director David Biggs of an Affordable Housing Award by Executive Director Allen Baldwin, Orange County Community Housing Corporation (OCCHC). Presentation — To Mayor Dave Garofalo and City Administrator Ray Silver by Mike Hayes, Regional Manager, Coastal Region, Orange County Register. Two plaques in the "Best of" category in Orange County: One for the "Best City to Live In" and the other for the "Best Parade." (6) October 2, 2000 — Council -Agency Minutes - Page 6 Presentation — By Mayor Dave Garofalo and Mr. Sam Thomas of the Leukemia Society of a commendation to Nouha Hreish for chairing the fundraising at the Celebrity WaiterlWaitress dinner and for raising over $20,000. Presentation — By Mayor Dave Garofalo to Valerie Rader, Southern California Rideshare Field Representative with Southern California Association of Governments of a proclamation for Rideshare Week of October 2 — 6, 2000. Public Comments Ted Crisell, candidate for U. S. Congress, spoke regarding heath care, beaches, and his concern over the beach closures of last summer. He expressed support for the Police Officers' Association negotiation efforts. He stated that he concurred with Councilmember Sullivan's agenda item on the County Ballot Measure uH", as he believes 100% of the proceeds from the tobacco litigation master settlement agreement ought to be spent on health care. Ron Velez, Huntington Beach Police Officer, spoke in opposition to his association's contract stating that it is substandard; that the city's police officers are among the lowest paid in the nation. Mr. Velez informed Council that he is leaving for a better -paying job out of state. He referred to Councilmember Sullivan's item relative to police recruitment from the Midwestern states, stating his belief that job applicants would not be interested in coming to California. Russell Reinhart, President, Huntington Beach Police Officers' Association (POA), thanked supporters of the Police Department from the other employee associations. He spoke in opposition to the agenda item relative to the city's contract renewal with the law firm of Liebert Cassidy. Mr. Reinhart displayed a tee shirt that expresses the POA's labor concerns. He also spoke regarding recruiting and hiring police officers from the Midwest and how it will not solve the city's problem. Mr. Reinhart spoke in favor of continuing negotiations to overcome the impasse. In response to the last speaker, Mr. Reinhart's mention of the impasse, the City Clerk announced that she had been given copies of a report from the Administrative Services Department. The presentation to be made under the City Administration's Report section is a PowerPoint presentation dated October 2, 2000 and titled Police Officers' Association !Negotiations Status Report. The City Clerk stated that copies of the PowerPoint presentation are available for review. Karen Chepeka, representative of Save Our Strays, spoke in favor of the agenda item on animal care services. She stated that there is a strong case for Huntington Beach to have its own pro -humane shelter. Ms. Chepeka distributed her organization's newsletter titled Stray News, and announced its web site: www.soshb.org, which can be used to link lost pets with their owners. Councilmember Sullivan reiterated the internet address provided by Ms. Chepeka and stated that he is in support of the agenda item. During this time, Public Comments were tabled and were resumed after the following presentation: (7) October 2, 2000 — Council -Agency Minutes - Page 7 (City Council) Presentation by the City Administrator of a Report Titled City of Huntington Beach Police Officers'Association Negotiations Status Report and Discussion on the Impasse Effective September 19, 2000 between the City and POA Relative to Contract Negotiations (720.20) Pursuant to Mayor Pro Tern Harman's request to learn more regarding the item received by the City Clerk, City Administrator Ray Silver presented the PowerPoint report dated October 2, 2000 and titled City of Huntington Beach Police Officers' Association Negotiations Status Report. The slide presentation set forth that the status of the city and the POA is at deadlock with mutual agreement to an impasse on Tuesday, September 19, 2000. Discussion followed relative to the police officers' pay scale and how the proposed increase would place the HBPOA at the 75 percentile, and among the top quarter of all police agencies in the country. Administrative Services Director John Reekstin responded to questions relative to the impasse. City Administrator Silver defined the meaning of impasse within the context of the contract negotiations; and the steps involved. He spoke regarding mediation, fact-finding if mediation proves unsuccessful, and binding arbitration. Councilmember Dettloff requested verification of the rate of attrition, to which Police Chief Ronald Lowenberg responded with figures of the city's history, taking into account both lateral transfers and entry-level recruitment and placement. Councilmember Sullivan requested staff to check the proposed contract to verify if the 10% increase for 3 years is going to be proportioned out as 2, 2, and 6. Councilmember Sullivan stated his recollection was that prior to the Orange County bankruptcy it was a greater amount. Councilmember SuNvan would like the public to know the offer on the table —the entire benefit package, including medical insurance —was turned down. Public Comments Resumed Joey Racano expressed his concern with the traffic problem at Pegasus School at Lexington Lane and Cutty Sark Drive. He spoke of the loss of services by Five Points Senior Center residents due to the discontinuation of three bus transportation service lines and the closing of Ralph's Grocery Store at Beach Boulevard and Garfield Avenue. Mr. Racano also illustrated ocean pollution by displaying a sample of bottled sewage water. Councilmember Green responded to the aforementioned public commentator by distributing to Council copies of an October 1, 2000 Los Angeles Times article. He informed everyone that it is an "opinion piece" by Councllmember Dettloff titled A Step Toward Clean Beaches. He stated that Councilmember Dettloff is also a Coastal Commissioner. Councilmember Green mentioned that Blake Anderson, District Manager for the Orange County Sanitation District (OCSD), will be presenting a PowerPoint slide report during the portion of the meeting on the City Administrator's Reports. Councilmember Green stated that Mr. Anderson is going to be speaking relative to the agenda item on the OCSD Cooperative Project Program. The report is titled OCSC Board Approves New Dry Weather Urban Runoff Policy. (A hard copy of the slide report has been obtained by the City Clerk after the meeting and is available in her office for public review.) (8) October 2, 2000 — Council -Agency Minutes - Page 8 Mayor Pro Tem Harman commented on Mr. Racano's statement regarding sewage disposal, stating that the city is not responsible for the dumping, and that progress has been made by the city. Mayor Pro Tern Harman stated that the issue is the responsibility of the O. C. Sanitation District. Robert Mayfield requested Council to adopt a "barking dog problem" ordinance. He congratulated Councilmembers on their foresightedness and well -deserved receipt of the `Best City" awards. Mr. Mayfield referred to a "grueling ordeal" that he has undergone since April 2000 with regard to a dog nuisance. Mayor Garofalo requested that Mr. Mayfield contact Police Chief Ronald Lowenberg regarding the matter. Chauncey A. Alexander spoke in support of Councilmember Sullivan's agenda item relative to County Measure "H" on the November 7, 2000 ballot. Mr. Alexander stated that he was reading from a historical summary that reports Orange County is below all other counties in per capita allocation of health care funds. He spoke regarding the need for the proceeds to be used for health purposes from the tobacco windfall. Sally Alexander extended an invitation to the community to attend a candidate forum at the Democratic Headquarters of West Orange County at Gothard Street and Edinger Avenue in Westminster. Ms. Alexander urged citizens to register to vote and announced the deadline for voter registration. Michele Revelle, Campaign Manager urged Council endorsement of County Measure "H" by approving Councilmember Sullivan's agenda item. She informed Council that the debt to be paid back is to society, and not to Orange County for the bankruptcy. Ms. Revelle contrasted County Measure "G" with County Measure "H," stating that the former is for government, and that it was votes{ in for the ballot by the O. C. Tax Collector and by three members of the Board of Supervisors. She enumerated several supporters of County Measure "H," including the O. C. Coalition of Community Clinics and the O. C. Business Council. Ms. Revelle spoke regarding uninsured individuals and the county's responsibility as health care givers, stressing that the tobacco litigation settlement proceeds are health care dollars. Ms. Revelle responded to Mayor Garofalo's inquiry stating that thus far the cities of Mission Viejo, Garden Grove and Villa Park have gone on record in favor of County Measure "H." Cheryl Hoglund spoke in opposition to compromising the proposed anti -nudity ordinance because of the issues brought forward by recreational nudists. She expressed concern that the city should have acted more quickly so as to prevent the nude juice bar from moving in. Chuck Scheid spoke in opposition to police officers' retirement benefits. He alluded to the article that he stated was placed in the Orange County Register section of The Wave. Mr. Scheid made the assumption that the police officer writing the article will wait for the 10% increase prior to retirement in order to hike his benefit amount. He expressed concern that the Public Employees Retirement System (PERS) will not be able to meet the pay demand, and that citizens will need to supplant it as the cost will involve millions of dollars. Mayor Garofalo requested staff to prepare figures to show that statistics bear out that police officers die five years after they retire. (9) October 2, 2000 — Council -Agency Minutes - Page 9 Norm Westwell presented a PowerPoint presentation on the agenda Public Comment procedure. Mr. Westwell invited the community to log on to his website to become involved with the City Council voting process. Mark Bush applauded the city for receipt of the "Best City" awards. He expressed the hopes that the city builds the Huntington Center Mall and that the analyst can determine the financial benefits of the project. He spoke in opposition to the Burlington Coat Factory remaining due to its return policy and poor customer service. Mr. Bush spoke in favor of a pay increase for police officers and of their value to the City of Huntington Beach. Don McGee spoke in opposition to dense housing planning and building on sacred Indian burial grounds in Huntington Beach. Mr. McGee also stated his belief that the sewage problem is caused by toxic chemicals being illegally dumped into the rivers and lakes. Leonard Crane brought articles for Council from the Orange County Register. He spoke regarding the November 7, 2000 election, cautioning voters to make the right choice. Mr. Crane questioned why the high schools are not being cleaned up. Thom Doney spoke regarding ocean water and in support of Council on the issue. He congratulated the Council, relaying the information that according to the Orange County Sanitation District the ocean water is as clean today as it always has been, largely due to Council's efforts. Mr. Doney informed Council that it is his understanding that Sacramento politicians changed the water quality standards around July 1999 when Assembly Bill 411 went into effect. He stated his opinion that both the city and the Bolsa Chica State beaches are among the greatest of tourist attractions. Mr. Doney urged the Councilmembers to write Governor Gray Davis to have AB 411 repealed. (City Council) Announcement by Councilmember Peter Green of His Election as Vice Chair on the Orange County Sanitation District (OCSD) Board (1020.10) Councilmember Green announced his recent election as Vice Chair on the Orange County Sanitation District (OCSD) Board. He expressed his pleasure working with the group, and of the spirit of cooperation fostered between the city and the county. Councilmember Green spoke regarding Councilmember Julien's agenda item requesting staff to convene a summit meeting of all cities relative to urban runoff issues in the wake of Governor Davis' Veto of Assemblyman Baugh's legislation. (City Council) Presentation by O. C. Sanitation District Manager Titled OCSD Board Approves New Dry Weather Urban Runoff Policy (See Heading Below Re: City Administrator's Report on Agenda Item on the OCSD Cooperative Projects Program) (520.30) Councilmember Green introduced Blake Anderson, District Manager for OCSD who presented the PowerPoint slide report mentioned earlier in the meeting. The City Council considered the PowerPoint presentation dated October 2, 2000 titled OCSD Board Approves New Dry Weather Urban Runoff Policy. He indicated the city and county jurisdictional boundaries and spoke regarding diversions and the nine pump stations that are discharging. Mr. Anderson spoke regarding the source control program. (10) October 2, 2000 -- Council -Agency Minutes - Page 10 OCSD District Manager Anderson answered Councilmember Bauer's questions regarding bacterial measurements. Mr. Anderson also responded to Councilmember Dettloff's inquiries on the level of waste water treatment and testing requirements, stating that OCSD reports extensively to both the Environmental Protection Agency (EPA) and the Water Quality Control Board. Council thanked Mr. Anderson for his presentation. (City Administrator's Report) Tabled — Date Unknown - Public Works Director's Urban Runoff/Coastal Remediation Action Plan — Update for September 2000 (520.30) Due to time constraints, the City Council concurred to defer a slide presentation from the Director of Public Works transmitting the update for September 2000 to the Public Works Director's Urban Runoff/Coastal Remediation Action Plan. This plan, ratified by Council, provides the direction taken to determine and abate the problems that contributed to the ocean advisory and postings of last summer. (City Administrator's Report) Tabled -Announcement Re: Agenda Item on the Approval of Orange County Sanitation District Cooperative Projects Program (See Heading Above on the Presentation by O. C. Sanitation District Manager Titled OCSD Board Approves New Dry Weather Urban Runoff Policy) (600.25) Earlier in the meeting, O. C. Sanitation District General Manager, Blake Anderson presented a PowerPoint slide report dated October 2, 2000 titled OCSD Board Approves New Dry Weather Urban Runoff Policy regarding the above -captioned Consent Calendar agenda item. Due to time constraints, the City Council concurred to table the City Administrator's announcement that the Orange County Sanitation District (OCSD) has notified the city that it will be receiving a total of $1,900,400 in grants from the OCSD and the Environmental Protection Agency (EPA) as part of its Cooperative Projects Program. The funds will be used to line portions of the sewer infrastructure in Huntington Harbour. OCSD is also providing a $200,000 grant to update the Sewer Master Plan and conduct an Inflow and Infiltration Study. This grant will be matched by city funds. (City Administrator's Report) Tabled — Date Unknown - Announcement Re: Advertisement for Bids for the Huntington Harbour Sewer Lining Project (600.60) The City Council concurred to defer an announcement by City Administrator Ray Silver that following City Council action on October 2, 2000 on the above -captioned Consent Calendar agenda item, the city will call for bids for the liming of approximately 50,000 lineal feet of sewer mains and 2,500 vertical feet of manholes in the Huntington Harbour. This project will extend the life of the aging sewer lines by 40 to 50 years. The total estimated project cost is $1,900,400 that is funded through the OCSD Cooperative Projects Program grant. (City Administrator's Report) Deferred Announcement Re: Agenda Item on the Acceptance of Phase I Improvements for the City Wide Energy Retrofit Program wIth Sempra Energy Solutions (600.90) Due to time constraints, the City Council concurred to defer the announcement by City Administrator Ray Silver regarding the above -captioned Consent Calendar agenda item. The City Council on April 5,1999 approved a two-phase energy -efficient equipment retrofit program (11) October 2, 2000 — Council -Agency Minutes - Page 11 for city facilities with Sempra Energy Solutions. The improvements for Phase I of the project have been completed. Funding for Phase II is now available which will provide new retrofit components for 36 structures at 28 locations. The total energy cost savings from both phases of the project has been conservatively estimated at approximately $345,000 annually. Based on this rate of savings, the estimated initial project cost of $2,970,525 will be paid back within nine years, with continued cost savings for the city accruing for many years into the future. (City Administrator's Report) Report Deferred on Agenda Item Removed from the Consent Calendar for Further Work on the Reconstruction of Two Sewer Lift Stations (600.60) City Administrator Ray Silver announced that the report on the above -captioned Consent Calendar agenda item is being deferred for further work. (City Administrator's Report) Approved Employment Agreement between the City and William Workman for the Position of the Assistant City Administrator (600.10) An announcement was made by City Administrator Ray Silver naming William Workman as his recommendation to fill the position of Assistant City Administrator. City Administrator Silver reported that Mr. Workman is the current City Manager of Corona, California and provided some of Mr. Workman's other credentials. City Administrator Silver requested approval of the contract agreement, to which Mayor Garofalo replied that it would be a unanimous decision to approve. A motion was made by Harman, second Dettloff to approve and authorize the Mayor and City Clerk to execute the Employment Agreement between the City of Huntington Beach and William Workman to serve as the Assistant City Administrator. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Garofalo, Green, Dettloff, Bauer NOES: None ABSENT: None (City Council/Redevelopment Agency) Public Hearing - Approved an Owner Participation Agreement (with Environmental Findings) and Approved a Cooperation Agreement between the Redevelopment Agency and the City of Huntington Beach with Huntington Center, LLC -- Authorized Conducting Negotiations for Acquisition of Real Properties (Burlington Coat Factory and Montgomery Wards) - Adopted Agency Resolution No. 313 and No. 314 — Adopted Council Resolution No. 2000-94 and No. 2000-95 (600.30) Mayor Garofalo abstained, recusing himself due to a possible conflict of interest. Mayor Pro Tern Harman presided over the public hearing. Mayor Pro Tern Harman declared that this was the time scheduled for a public hearing to consider the following: Public hearing for the purpose of considering the potential proposed sale, if any, of certain property in the Huntington Beach Redevelopment Project area to Huntington Center Associates, LLC (Participant). (12) October 2, 2000 — Council -Agency Minutes - Page 12 The potential proposed sale, if any, of property to the Participant would be made subject to and in accordance with the California Redevelopment Law and the terms and conditions precedent of the Owner Participation Agreement between the Agency and Participant subject to the covenants, conditions and restrictions necessary to carry out the Redevelopment Plan for the Huntington Beach Redevelopment Project. The property which is the subject of this joint public hearing (Property) is located in the Huntington Beach Redevelopment Project Area and consists of portions of the shopping center commonly known as the Huntington Center, which is illustrated and designated as the Site on the Site Map in the proposed Owner Participation Agreement. The joint public hearing will be held to consider: 1. The environmental documents referred to below in this Notice with respect to the proposed redevelopment under the Owner Participation Agreement; 2. The potential proposed sale, if any, of the Property in the Huntington Beach Redevelopment Project area by the Agency to Participant for redevelopment by Participant of a commercial development; and 3. The proposed Owner Participation Agreement submitted to the Agency, which provides for the proposed sale, if any, of the Property to the Participant. The following documents are available for public inspection and copying during regular office hours at the offices of the City Clerk and the Economic Development Department at 2000 Main Street, Huntington Beach, California 92648: 1. A copy of the proposed Owner Participation Agreement; 2. A summary report which describes and specifies: 1. The costs to be incurred by the Agency under the Owner Participation Agreement; 2. The estimated value of the interests to be sold, if any, pursuant to the Owner Participation Agreement, determined at the highest and best uses permitted under the Redevelopment Plan for the Huntington Beach Redevelopment Project; 3. The estimated value of the interests to be sold, if any, pursuant to the Owner Participation Agreement, determined at the use and with the conditions, covenants, and development costs required by the sale; 4. The sale price which the Participant will be required to pay pursuant to the Owner Participation Agreement; 6. Other pertinent economic analyses and an explanation of the sale price; and 6. An explanation of why the potential sale, if any, of the Property will assist in the elimination of blight within the Huntington Beach Redevelopment Project area. 3. A summary economic report which examines alternative redevelopment plans for the Huntington Center shopping mall, in which the Property is located. (13) October 2, 2000 — Council -Agency Minutes - Page 13 Environmental Status: As the public entity responsible for carrying out the Redevelopment Plan for the Huntington Beach Redevelopment Project, the Agency has previously prepared and certified the following environmental document. The Environmental Impact Report for the Huntington Beach Redevelopment Project, certified by the Agency on November 18, 1996 by Resolution No. 279, and the findings and resolutions relating to the adoption of the Redevelopment Plan (EIR 96-2). Among the implementation activities on which environmental impacts are assessed in the above referenced EIR 96-2 is the redevelopment proposed to be accomplished under the Owner Participation Agreement. In connection with its consideration of the proposed Owner Participation Agreement, the Agency has prepared an Initial Study which indicates that the EIR 96-2 prepared for the Huntington Beach Redevelopment Project encompasses the proposed redevelopment under the Owner Participation Agreement, and that no supplemental or subsequent environmental impact report is required therefor. EIR 96-2 and the Initial Study will be considered by the City Council and Agency at the time of the joint public hearing on the Owner Participation Agreement. Copies of the Initial Study and EIR 96-2 are available for public inspection and copying during regular office hours at the offices of the City Clerk and Planning Department in the places and at the times specified above. At any time before the date and time set forth above for the joint public hearing by the City Council and Agency, any written comments on or objections to the potential proposed sale, if any, of the Property or to the proposed Owner Participation Agreement may be fled with the City Clerk/Agency Clerk. Comments may also be submitted during such period on the Summary Report, Initial Study, and other documents referred to in this Notice. All persons wishing to question, comment, object to, or be heard on such matters at the joint public hearing will be given an opportunity to appear and be so heard. Legal notice, as provided to the City Clerk's Office by staff, had been published and posted. The City Clerk had transmitted in the City Council packet the following communications: Petition submitted on September 28, 2000 by Tuchman & Associates, attorneys on behalf of Burlington Coat Factory, listing their count of approximately 15,501 signatures requesting that the Agency/Council not take action affecting the interests of Burlington Coat Factory until Burlington Coat Factory and the Ezralow Company/Huntington Center Associates have resolved their dispute. Communication submitted on September 28, 2000 by Loren H. Hohman, Real Estate Director, representing Wards requesting an increased time limit to address Council at public hearing. 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 29, 2000 from the Department of Economic Development transmitting additional information regarding the agenda item on the public hearing on the Huntington Center Owner Participation Agreement, including slide show presentation titled Huntington Center Owner Participation Agreement. Communication titled Late Communication/Agenda Item D-9 -- Joint Public Hearing on Proposed OPA with Huntington Center Associates. (14) October 2, 2000 — Council -Agency Minutes - Page 14 Communication dated September 29, 2000 from Jonathan C. Curtis of Sheppard, Mullin, Richter & Hampton, LLP (representing Montgomery Ward, LLC) transmitting their objection to the unavailability of the staff report for the agenda item on the public hearing on the Huntington Center Owner Participation Agreement as of 9:30 a.m., September 29, 2000. Communication titled City Council and Redevelopment Hearing on Monday, October 2, 2000 Regarding Owner Participation Agreement for Huntington Center. Communication dated October 2, 2000 from Sheppard, Mullin, Richter & Hampton, LLP (representing Montgomery Ward, LLC) for the agenda item on the public hearing on the Huntington Center Owner Participation Agreement. Communication titled City Council and the Redevelopment Agency board of City of Huntington Beach Joint Public Hearing on Monday, October 2, 2000, Agenda Item No. D-1, to Consider Approval of an Owner Participation Agreement (with Environmental Findings) and a Cooperation Agreement between the Redevelopment Agency and the City of Huntington Beach with Huntington Center Associates, LLC. Communications submitted by various Huntington Beach residents to the City Clerk's Office on September 29, 2000 transmitting their support of retaining Wards in the redevelopment of the Huntington Center. (From: Darcey Lainson, Kim Maurer, Tracy Vaughan, Dana Bowden, and Sunday Christy.) Communication dated September 28, 2000 from Spencer H. Heine, President of Montgomery Ward Properties requesting a continuance of the October 2, 2000 Public Hearing on the Owner Participation Agreement. Communication titled Joint Public Hearing of the City Council and Redevelopment Agency on October 2, 2000, the Proposed Owner Participation Agreement between the Redevelopment Agency of the City of Huntington Beach and Huntington Center Associates, LLC, to develop Huntington Center. Communication submitted by Huntington Beach resident Jinx Verona to the City Clerk's Office on October 2, 2000 transmitting his support of retaining Wards in the redevelopment of the Huntington Center. Communication titled The Huntington Beach Mall. Communication relative to the agenda item on the public hearing on the Huntington Center Owner Participation Agreement dated September 28, 2000 from Joyce Riddell, President of the Huntington Beach Chamber of Commerce. Communication transmits the Board of Directors' support of a plan for the "Crossings at Huntington" that provides for the highest quality development that is economically feasible. Communication dated October 2, 2000 from Aviv Tuchman of Tuchman & Associates (representing Burlington Coat Factory) transmitting Burlington Coat Factory's objections to the City Council approving the proposed Owner Participation Agreement. Communication titled City Council Meeting on Tuesday, October 2, 2000 Re: Adoption of the Owner Participation Agreement. (Attachments A — L are on File for Public Review in the Office of the City Clerk.) Communication dated October 2, 2000 from Huntington Beach resident Debbie Cook transmitting her opinions regarding the redevelopment of Huntington Center. Communication relative to the agenda item on the public hearing on the Huntington Center Owner Participation Agreement dated September 30, 2000 from Patricia Enyeart opposed to the removal of Montgomery Ward. (15) October 2, 2000 — Council -Agency Minutes - Page 15 Communication dated October 2, 2000 from Loren Cohen from the Law Firm of Tuchman & Associates titled Burlington Coat Factory Proposals. City Administrator Silver provided background and history of revitalization efforts of the Huntington Beach Center Mall over the last nine years. Economic Development Director David Biggs presented a PowerPoint slide report. The report is titled Huntington Center Owner Participation which was announced earlier as a Late Communication by the City Clerk. Economic Development Director Biggs introduced Carol Fredholm from Sedway and Association , consultants to the city. Ms. Fredholm presented the slide report on the portion relative to the Owner Participation Agreement (OPA) process. Economic Development Director Biggs completed the PowerPoint presentation with the report on Incremental Sales Tax Revenue. Mayor Pro Tern Harman declared the public hearing open. Brian Ezralow promoted his company's qualifications and its project as an alternative to the beach as a major destination center for the city. He described the proposed center as a plaza and pointed to wall diagrams of the proposed "The Crossings at Huntington." Debbie Nelson, Associate for Burlington Coat Factory spoke regarding her company's assets. Alex Osman, Burlington Coat Factory employee expressed enjoyment of her job as a result of customer satisfaction. Ms. Osman stated her need to continue working at Burlington Coat Factory. Tony Dennis, Department Manager for Burlington Coat Factory spoke regarding his experience with opening and remodeling new store locations. He informed Council of customer preference for his store's merchandise due to what he considers as its high quality and low prices. Pat Rogers, Huntington Beach Mall Manager informed Council that the number one priority of the mall is as a community center. She spoke regarding the history of the mall and its former plans for renovation, informing of the earlier Macerich Company proposals, and finally the sale of the mall to Huntington, L.L.C. Ms. Rogers stated how impressed she was by the renderings of The Crossings at Huntington. Bruce Hackel, West Coast Regional Manager for Burlington Coat Factory stated his purpose for addressing Council is to dispel the claims of Ezralow Company. He promoted the compatibility of his store as fitting the scenario and conforming with future building plans. Mr. Hackel informed Council that the brand names carried in his store rank with all upscale labels, such as Tommy Hilfiger. He invited everyone to see the remodeled store. Rocky LaCross, Burlington Coat Factory inquired if the article in the O. C. Register alleging that Council or staff wants the Burlington Coat Factory to move on is correct. Mr. LaCross spoke regarding a petition distributed to Council listing 16,000 signatures of persons opposed to a private developer being given public money to develop personal property, when the money could be used to fund police services. (16) October 2, 2000 — Council -Agency Minutes - Page 16 John Sonnenberg, Manager, Burlington Coat Factory spoke on behalf of employees and associates who have asked him why after a relocation of nine years standing, the city is discarding their company. He inquired why these tax dollars are not being used to fund schools and pay for police services. Mr. Sonnenberg questioned the reason for what he considers to be a push for redevelopment of the mall during election time. Aviv Tuchman, Attorney at Law of Tuchman & Associates representing Burlington Coat Factory (BCF) submitted a letter which he stated incorporates the facts and background of the project. He informed Council only recently was his company able to obtain the Sedway Associates and Keyser Marston Associates (KMA) reports. He furnished statistics relative to square footage. He rebutted allegations that BCF is under performing, stating that said reports are faulty. Mr. Tuchman also spoke of the eviction of mall tenants and the current tenant mix. He protested the use of city funds for a private developer's property. Mr. Tuchman urged that the agenda item be tabled to allow BCF two weeks notice for due process. Greg Vournas expressed his displeasure that he and his family must go outside the city for upscale shopping. Mr. Vournas spoke in support of the proposed project as attractive and a good regional draw to the city. Bonnie Erdich spoke regarding the petition gathering process, and relayed several citizens' reactions she determined to be passionately in support of Burlington Coat Factory (BCF). She spoke regarding the regional draw of the BCFs in South Orange County and the City of Torrance. Ms. Erdich described BCF merchandise as upscale and low in price. Robert Shepherd informed Council that he is a Management Information Systems' (MIS) representative who helped build the store nine years ago, and assisted with its relocation to its current site from across the street five years ago. Mr. Shepherd displayed a sign in support of saving Burlington Coat Factory. Lynn Gutierrez, a Store Manager for Burlington Coat Factory inquired as to why a store with such a positive impact is being removed, and why residents have not been polled for their input. Kevin L. Schmidt, a Store Manager for Burlington Coat Factory (BCF) expressed his support of the 126 associates who work in the store, ranging in age from 17 to 70 years. He referred to an article in the Orange County Register that claims the city stated that it wishes BCF would move on. Mr. Schmidt spoke regarding a petition with 16,000 signatures gathered in support of saving BCF, versus two signatures against retaining BCF. John Gilbert, Chairman, Huntington Beach Conference and Visitors Bureau and General Manager, Waterfront Hilton Beach Resort spoke in support of the Ezralow Company's proposed project. He expressed excitement over the Redevelopment Agency being given the opportunity of gaining the highest revenue for the city. Mr. Gilbert spoke further regarding sales tax use. Brad White expressed his support of Councilmember Julien's agenda item requesting staff to address urban runoff issues in the wake of Governor Davis' veto of Assemblyman Baugh's legislation. He stated his belief that the Ezralow project is a positive move, but urged Council to resolve the issue and save the two other parties, Montgomery Wards and Burlington Coat Factory. Joyce Riddell, President of the Huntington Beach Chamber of Commerce referred to her letter dated September 28, 2000 which had been announced earlier as a Late Communication by the (17) October 2, 2000 — Council -Agency Minutes - Page 17 City Clerk. She reiterated that the Chamber Commerce Board reviewed the plans of The Crossings at Huntington and unanimously supports it in concept. Ms. Riddell spoke relative to tax revenue leakage, stating that the rationale for supporting Ezralow's repositioning of the mail is to capture the sales tax leakage by reaching customers within a five -mile radius of the center. Phillip R. Schwartze, a Planner for Montgomery Ward, furnished background information on the store. He provided easel diagrams of the proposed New Wards. Mr. Schwartze expressed the opinion that Wards did not abandon the mall as have other anchor stores in the mall. Mr. Schwartze introduced other members of the Ward's Board of Directors and individuals involved with the company. He spoke regarding the compatibility of the store, and his qualifications to conform Wards into the Mediterranean -type of architecture proposed in Ezralow's Italian Village Concept. Mr. Schwartze spoke about design guidelines from a handout that he distributed to Council. Jim Francois, Project Manager for Wards, presented a PowerPoint slide presentation titled The New Wards, a hard copy of which is available in the Office of the City Clerk for public review. He related the success of Wards new prototype store at different centers throughout the nation, including those in Torrance, California and Las Vegas, Nevada, with a variety of configurations. Mr. Francois -reported on the interiors and various departments within the store with the major focus being on their assets relative to sales. He spoke regarding the studies done on the local store and how the interior can be integrated. He requested further developmental assistance from Council and staff. James P. Regan, Advisor representing Wald Realty for Montgomery Ward, stated his purpose for speaking was to recap the three scenarios for the Huntington Center mall presented by Sedway and Associates and Keyser Marston Associates (KMA). He informed Council that after review of their reports, he noted that Scenario B to keep Montgomery Ward and remove Burlington Coat Factory was not being considered. Mr. Regan provided figures which he believes conflict with the analyses on both reports. He stated the reports do not use market area analysis, and in his opinion are therefor flawed. Phillip R. Schawrze returned to the podium to give closing comments, urging Council to consider Scenario B mentioned by the last speaker, Mr. Regan as valid. He referred to several Late Communications announced earlier by the City Clerk and invited everyone to visit the remodeled Wards store in Torrance. Mr. Regan requested Council to amend the Owner Participation Agreement and not subject his store to condemnation. Mayor Garofalo left the meeting at 10:55 P.M. David Fraitag spoke in support of the redevelopment of Huntington Beach and the need to reposition the mall, stating that it cannot compete with other big centers without this renovation. Mr. Fraitag expressed his confidence that it is a perfectly workable mall project and urged Council to vote in favor of the proposal. Norm Westwell, Council candidate spoke in opposition to The Crossings at Huntington, expressing concern that it is an unaffordable project. He stated his support of Wards and Burlington Coat Factory, and for negotiations to continue. Mr. Westwell expressed his belief that the use of public funds is inappropriate. He requested that the item be tabled. James Upp, Executive Director of the Huntington Beach Auto Dealers Association, expressed his support of a new and revitalized mall, stating that it is at a "gateway to the city" and is (18) October 2, 2000 -- Council -Agency Minutes - Page 18 presently an eyesore. He stated his belief that The Crossings will bring consumers to the city and help other merchants sell their products. Mr. Upp urged Council to quickly approve the necessary action to proceed with building the project. David Israelsky expressed his disappointment at having to leave the city to eat out and shop. Mr. Israelsky stated that the proposed project will provide him with an opportunity to show people from outside the city a place they can visit. Van Rowland stated he worked at J. C. Penney's, providing background information on the closing of the Broadway and the subsequent departure of J. C. Penney's. Mr. Rowland spoke in support of Montgomery Ward and Burlington Coat Factory as helping to redevelop the mall. Kenneth Yglesias, President, Golden West College spoke in support of The Crossings at Huntington. Dr. Yglesias related that he had spoken to students and employees of his school regarding their interest in having a high -end mall with an outdoor environment. Douglas Gray, Partner/Owner, Huntington, L. L. C. and Ezralow Retail Company, stated his belief that the Huntington Center is no longer a mall site but is an entertainment complex. He informed Council that several "cutting edge" retailers wish to join. He expressed his excitement at an opportunity to build something of which the city can be proud. There being no persons present to speak further on the matter and there being no further protests filed, either written or oral, the hearing was closed by Mayor Pro Tern Harman. The City Clerk stated for the record that the petition listing approximately 16,000 signatures that appears on the agenda is available for public review. Economic Development Director Biggs announced that Ms. Carol Fredholm representing Sedway & Associates and Special Counsel for the Redevelopment Agency, Mr. Murray Kane will respond to questions. Economic Development Director Biggs rebutted the statements of several speakers from Burlington Coat Factory regarding staff interfering with the negotiation process between BCF and Wards and Ezralow Retail Company. He also stated that both the Sedway and KMA reports were available for more than 19 days for review by the participants. Economic Development Director Biggs negated the allegation of curtailment of funding other city services, stating that the Redevelopment Agency monies are exclusively for redevelopment projects, and is not available to pay for capital projects and police services. Ms. Fredholm, Sedway & Associates, addressed comments by the advocates of BCF and Wards remaining as mall participants, responding that her data on sales tax leakage shows findings in support of repositioning for competitiveness in the market. She stated that reports she compiled rely on historical sales performances, industry standards, and interviews with store personnel, rebutting the points made by the proponents of BCF and Wards. Special Counsel Murray Kane spoke regarding what he considered as the Redevelopment Agency's compliance with satisfying all the requirements of "due process" afforded the parties involved. He further informed Council that the Agency acted reasonably, and in good faith with regard to keeping open meeting sessions with the developer during the Owner Participation Agreement process. (19) October 2, 2000 — Council -Agency Minutes - Page 19 Councilmember Dettloff stated that she was glad to learn that BCF still owns the property across the street, which they occupied five years ago. Mr. Douglas Gray, Ezralow Retail Company Partner/Owner replied to Councilmember Green's inquiry as to why Mervyns Department Store is planned to remain, clarifying that it is because of Mervyn's geographical layout at the center. Ms. Fredholm of Sedway & Associates provided the rationale of Meryvn's integration into the reconfigured mall, quoting Mervyn's higher sales volume and greater cross -over appeal than those of the other two department stores, Burlington Coat Factory and Wards. Special Counsel Murray Kane concurred with Economic Development Director Biggs that the Redevelopment Agency is going to be funding the relocation costs of BCF and providing employment services for its 126 displaced workers. Mayor Pro Tern Harman expressed his concern for the BCF Associates, but pointed out that a large pool of jobs will be created by the revitalization of the mall as proposed. He stated his support of the project as the right, but tough decision for Council to make. A motion was made by Dettloff, second Green to approve the following Redevelopment Agency recommended actions: 1. Adopt Agency Resolution N. 313 —"A Resolution of the Redevelopment Agency of the City of Huntington Beach Approving Environmental Findings in Connection with the Consideration of the Proposed Huntington Center Owner Participation Agreement." (ATTACHMENT NO. 1); and 2. Adopt Agency Resolution No. 314 — "A Resolution of the Redevelopment Agency of the City of Huntington Beach Approving an Owner Participation Agreement between the Redevelopment Agency of the City of Huntington Beach and Huntington Center Associates, LLC, for the Redevelopment of Huntington Center." (ATTACHMENT NO. 2) and authorize the Agency Chairman and the Agency Clerk to execute same. (A copy of the Owner Participation Agreement with all attachments is on file in the City Clerk's Office for public review); and 3. Approve the Cooperation Agreement between the Redevelopment Agency and the City of Huntington Beach (ATTACHMENT NO.5 — On file in the City Clerk's Office for public review), and authorize the Agency Chairman and Agency Clerk to execute same. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: Garofalo (20) October 2, 2000 -- Council -Agency Minutes - Page 20 A motion was made by Dettloff, second Green to approve the following City Council recommended actions: 1. Adopt Resolution No. 2000-94 —"A Resolution of the City Council of the City of Huntington Beach Approving Environmental Findings in Connection with the Consideration of the Proposed Huntington Center Owner Participation Agreement." (ATTACHMENT NO. 3); and 2. Adopt Resolution No. 2000-95 - uA Resolution of the City Council of the City of Huntington Beach Approving an Owner Participation Agreement between the Redevelopment Agency of the City of Huntington Beach and Huntington Center Associates, LLC, for the Redevelopment of Huntington Center." (ATTACHMENT NO. 4); and 3. Approve the Cooperation Agreement between the City and the Redevelopment Agency (ATTACHMENT NO. 5 — On file in the City Clerk's Office for public review), and authorize the Mayor and City Clerk to execute same. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: Garofalo A motion was made by Dettloff, second Green to approve the following additional Redevelopment Agency recommended action to authorize the Executive Director or his designee, the Director of Economic Development, to initiate and conduct negotiations with a) Huntington Center Associates, LLC, a Delaware limited liability company and Burlington Coat Factory Warehouse of Huntington Beach, Inc., a California corporation, for the acquisition of the real property currently occupied by a Burlington Coat store and located within the Huntington Beach Redevelopment Project Area, and b) Montgomery Ward Development, LLC a Delaware limited liability company, for the acquisition of Montgomery Ward real property located within the Huntington Beach Redevelopment Project Area. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: Garofalo (City Council) Public Hearing — Approved Modifications to Local Coastal Program Amendment (LCPA) No. 1-00 and Specific Plan 12 (Palm Avenue/ Goldenwest Street) Suggested by the California Coastal Commission (Seacliff Promenade Conceptual Master Plan -150 Acres No Palm Avenue, slo Pacific Coast Highway, wlo Seapoint Street, elo Goldenwest Street)— Adopted Resolution Nos. 2000-91, 2000-92 and 2000-93 (440.50) Mayor Pro Tern Harman declared that this was the time scheduled for a public hearing to consider the following: Applicant: City of Huntington Beach, Department of Planning. Request: 1. To accept modifications to the Huntington Beach Local Coastal Program Coastal Element and SP 12 (Palm Avenue/Goldenwest Street Specific Plan) by the California Coastal (21) October 2, 2000 — Council -Agency Minutes - Page 21 commission on August 9, 2000 for LCPA No. 1-00. Request: 2. To amend the City's Local Coastal Program Coastal Element and SP-12 (Palm Avenue/ Goldenwest Street Specific Plan) to reflect the California Coastal Commission's modifications. Location: 150-acre site bounded by Palm Avenue to the north, Pacific Coast Highway to the south, Seapoint Street to the west, with approximately four acres west of Seapoint Street and Goldenwest Street to the east. Environmental Status: An initial environmental assessment was processed and completed in accordance with the California Environmental Quality Act. Mitigated Negative Declaration No. 98-8 was approved by the City Council on February 7, 2000. This environmental assessment is on file at the City of Huntington Beach Planning Department, 2000 Main Street, and available for public inspection and comment by contacting the Planning Department, or by telephoning (714) 536-5271. Legal notice as provided to the City Clerk's Office by staff had been mailed, published and posted. Mayor Pro Tem Harman asked of Councilmember Dettloff in her capacity as a Coastal Commissioner, if the recommended action is in line, to which Councilmember Dettloff replied in the affirmative. Mayor Pro Tern Harman declared the public hearing open. Bill Holman, PLC Land Company informed Council that his purpose in coming was to acknowledge for the record his appreciation to both Councilmember Dettloff and Planning Director Howard Zelefsky for their timeliness in bringing the item forward to the Coastal Commission. 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 Mayor Pro Tern Harman. A motion was made by Sullivan, second Green to: 1. Adopt Resolution No. 2000-91 —"A Resolution of the City Council of the City of Huntington Beach, California, which Acknowledges Receipt of the Coastal Commission Action and Accepts and Agrees to Local Coastal Program Amendment No. 1-100 as Modified," accepting and agreeing to the modifications suggested by the California Coastal Commission of Local Coastal Program Amendment No. 1-00 and forward to the California Coastal Commission (ATTACHMENT NO. 1); and 2. Adopt Resolution No. 2000-92 — "A Resolution of the City Council of the City of Huntington Beach Amending the Local Coastal Program by Amending the Coastal Element," (ATTACHMENT NO. 2), approving revisions to the Local Coastal Program Coastal Element incorporating the modifications suggested by the California Coastal Commission with Findings for Approval (ATTACHMENT NO. 4); and 3, Adopt Resolution No. 2000-93 —"A Resolution of the City Council of the City of Huntington Beach Amending the Huntington Beach Zoning and Subdivision Code by Amending Specific Plan 12 (Palm/Goldenwest Specific Plan) thereof to Conform LCP Amendment No. 00-1 to Modifications made by the Califomia Coastal Commission," approving revisions to Specific Plan 12 incorporating the modifications suggested by the California Coastal Commission (ATTACHMENT NO. 3). The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: Garofalo (22) October 2, 2000 — Council -Agency Minutes - Page 22 Council concurred to table the public hearing to consider adoption of a Fair Share Traffic Mitigation Impact Fee and move to the Consent Calendar agenda items first. Mayor Pro Tern Harman announced that as Mayor Garofalo had declared a conflict of interest on two public hearing items that he would depart the meeting at 10:55 p.m. (City Council) Removed Agenda Item from Consent Calendar for Further Work: Contract to AES Construction Group for Reconstruction of Two Sewer Lift Stations: (1) "A" at 17tn Street (elo Admiralty Drive, No Pacific Coast Highway); CC-1060 and (2) Brookhurst Street and Effingham Drive; CC-1061 (600.60) A request was made by City Administrator Silver earlier in the meeting to remove the above - captioned item from the agenda for further work. Consent Calendar — Items Removed for Separate Discussion The following items were removed from the Consent Calendar for separate discussion: (City Council) Labor Relations Consultant Services Contract between the City and Liebert Cassidy to Negotiate Labor Agreements with the Police Officers' Association (POA) and Marine Safety Officers Association (MSOA) - Expenditure of Funds. (600.10) (City Council) Amendment No. 1 to Reimbursement Agreement between the City and Shea Homes, L.P. In Connection with Professional Planning Services/ Entitlement Processing for Parkside Estates Project (w/o of Graham Street, slo of Kenilworth Drive) — Appropriation of Funds. (600.10) (City Council) Utility Agreement with CALTrans to Reimburse CALTrans for Costs Related to Paving Project on Pacific Coast Highway — Expenditure of Funds. (600.20) (City Council) Agreement between the City and the County of Orange for Animal Care Services — Fiscal Year 2000/2001 - Appropriation of Funds. (600.25) Consent Calendar — Items Approved 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, Sullivan, Green, Dettloff, Bauer (Harman —Abstained from approval of adjourned regular meetings of August 28, 2000 due to his absence; Sullivan —Abstained from approval of OCSD Cooperative Projects and the Huntington Harbour Sewer Lining Project.) NOES: None ABSENT: Garofalo (City Council/Redevelopment Agency) Minutes - Approved and adopted the minutes of the City Council/Redevelopment Agency adjourned regular meetings of August 28, 2000 and the regular meetings of September 5, 2000 as written and on file in the Office of the City Clerk. Submitted by the City Clerk. (23) October 2, 2000 — Council -Agency Minutes - Page 23 (City Council) Approved the Intergovernmental Agreement to Provide Contract Services (Booking and Jail Facilities) for the Detention at the Approved H.B. Police Department Jail of Detainees of the City of Cypress Police Department (600.10) -- Approved the Intergovernmental Service Agreement between the City of Huntington Beach and the City of Cypress for the Detention at the Huntington Beach Police Department of Detainees Held in Custody by the Cypress Police Department and authorized the Mayor and City Clerk to execute said agreement. Submitted by the Chief of Police. Funding Source: The City of Cypress will reimburse the city $125.00 lodging and booking fee for the first day, $41.15 each additional day. (City Council) Adopted Resolution No. 2000-96 Approving the City Clerk's Association of California Records Retention Guidelines as the City's Records Retention Schedule (170.10) — Adopted Resolution No. 2000-96 — `A Resolution of the City Council of the City of Huntington Beach Adopting a Retention Schedule for Records Maintained by the City of Huntington Beach Exempting the Office of the City Clerk" which adopts the City Clerk's Association of California Records Retention Guidelines as the City's Records Retention Schedule. Submitted by the Director of Organizational Effectiveness. Funding Source: Not applicable. (Retention schedule for records maintained in the City Clerk's Office was adopted by City Council Resolution No. 6322 on September 16, 1991.) (City Council) Awarded Two Contracts between the City and the Orange County Sanitation District for the Cooperative Projects Program: (1) Contract CP-0005 for the Sewer Master Plan Update/Inflow and Infiltration Study; CC-1144 and (2) Contract CP-0006, for the Huntington Harbour Sewer Slip Lining Project; CC-1161 (600.25) Approved and authorized the Mayor and City Clerk to execute two contracts: (1) for the Sewer Master Plan update and an Inflow and Infiltration Study; CC-1144, No. CP-0005 titled Orange County Sanitation District Cooperative Projects Program Contract and (2) for the Huntington Harbour Sewer Lining Project; CC-1161, No. CP-0006, titled Orange County Sanitation District Cooperative Projects Program Contract. Submitted by the Public Works Director. Funding Source: Not required. Matching funds up to $200,000 appropriated in the Sewer Fund Contract Services Account for Project CC-1144. Matching funds from a $950,200 grant from the Environmental Protection Agency (EPA) for $1,900,400 for Project CC-1161. The Following Consent Calendar Agenda Item Encompasses Action Taken by the City Council and by the Council Members Sitting as Public Financing Authority Members: (City Council/Public Financing Authority) Accepted Phase I Improvements (MSC 352) for City Wide Energy Retrofit Project with Sempra Energy Solutions (to Provide New Retrofit Components for 36 Structures at 28 Locations) and Authorized Appropriation and Transfer of Funds for Phase II Improvements (Second and Final Phase of Construction) (600.90) - City Council Action: Accepted the Phase I improvements and authorize the City Clerk to file the Notice of Completion with the County Recorder's Office. Public Financing Authority Action: Approved the appropriation of $2,174,425 in 2000A PFA (Public Financing Authority) bond proceeds for the completion of Phase i1 of the City Wide Energy Retrofit Project, and authorize the transfer of said funds into an expenditure account. Submitted by the Public Works Director. Funding Source: Per Public Financing Authority action above. (City Council) Approved Plans and Specifications and Authorized Advertisement of Bids for the Huntington Harbour Sewer Lining Project; CC-1161 — Approved Sample Contract (600.60) —1. Approved the project plans and specifications and authorized the Director of Public Works to request bids for the Huntington Harbour Sewer Lining Project, CC-1161; and 2. Approved the attached sample contract subject to award of the contract to the lowest (24) October 2, 2000 -- Council -Agency Minutes - Page 24 responsive/responsible bidder. Submitted by the Public Works Director. Funding Source: Huntington Harbour Slipline project will be co -funded through an Environmental Protection Agency (EPA) grant and an Orange County Sanitation District (OCSD) grant. Matching grants of $950,200 will be received for a total budget of $1,900,400. (City Council) Approved Legal Services Contract between the City and Jeffer, Mangels, Butler & Marmargo to Represent the City before the PUC (Public Utility Commission) Re: So. CA Edison Co. Sale of Fuel Oil Pipeline Facilities/Property Purchase at Pacific Coast Highway and Newland Streetw- Approved Modifications to the Insurance Liability Requirements (600.10) --1. Approved Agreement between the City of Huntington Beach and Jeffer, Mangels, Butler & Marmargo for Legal Services, a Limited Liability Partnership for Legal Services; and 2. Approved the deductible to the firm's professional liability policy in the amount of $250,000. Submitted by the City Attorney. Funding Source: General Fund, Contract Legal Services Account. (City Council) Approved and Labor Relations Consultant Services Contract between the City and Liebert Cassidy to Negotiate Labor Agreements with the Police Officers' Association (POA) and Marine Safety Officers Association (MSOA) Authorized Expenditure of Funds — Directed Staff to Return to Council after Consultant Completes Company Merger to Review New Contract as Liebert Cassidy and Whitmore (600.10) The City Council considered a communication from Administrative Services Director John Reekstin requesting approval to retain the firm of Liebert Cassidy to provide labor relations consultant services to obtain labor agreements with the Police Officers' Association (POA) and Marine Safety Officers Association (MSOA). The city's current agreement with POA and MSOA expired on September 30, 2000. The city has used a private sector labor relations consultant to serve as the city's representative in meetings with representatives of employee organizations. This consultant, in conjunction with the City Administrator, obtains policy direction from the City Council and works with city staff to endeavor to reach agreement with employee organizations. Numerous outside consulting firms have been utilized by the city as labor consultants in the past. The firm of Liebert Cassidy has served in this capacity in negotiations with POA and MSOA since January 1993. Liebert Cassidy has recently merged with Whitmore, Johnson and Bolanos to create the firm of Liebert Cassidy and Whitmore. Councilmember Julien requested removal of the item for separate discussion to direct staff to return with the contract for Council review, after a merger takes place between the law firms of Liebert Cassidy and Whitmore. Administrative Services Director Reekstin informed Council of his intent to modify the language. The merger was effective October 1, 2000 after the contract was done, but before the merger was announced. Assistant Deputy City Attorney Scott Field responded that a timeframe to return to Council of two months would be sufficient. (25) October 2, 2000 — Council -Agency Minutes - Page 25 A motion was made by Julien, second Dettloff to 1. Approve and authorize the Mayor and City Clerk to execute the new and separate Agreement between the City of Huntington Beach and Liebert Cassidy for Legal Services, and 2. Approve the expenditure of funds; and 3. Direct staff to return to Council after consultant completes a company merger. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: Garofalo (City Council) Approved Amendment No. 1 to Reimbursement Agreement between the City and Shea Homes, L.P. In Connection with Professional Planning Services/ Entitlement Processing for Parkside Estates Project (w/o of Graham Street, s/o of Kenilworth Drive) -- Authorized Appropriation of Funds (600.10) The City Council considered a communication from the Planning Director Howard Zelefsky transmitting a request for approval of Amendment No. 1 to the Reimbursement Agreement between the City and Shea Homes, L. P. which had been prepared by the City Attorney's Office for the Planning Department. Adoption of Amendment No. 1, for a reimbursement amount not to exceed $75,000, allows the city to continue to be reimbursed for professional planning services expended for expedited processing of developer's entitlements in connection with its Parkside Estates project. Additionally, adoption of this agreement will allow the term of the original agreement to be extended until April 6, 2001, and shall be retroactive to the expiration of the original agreement. The amendment to the Reimbursement Agreement with Shea Homes, L. P. will commence upon approval by the City Council. Councilmember Sullivan who had requested removal of this item from the Consent Calendar, stated that he would not deliberate further on the item. A motion was made by Sullivan, second Harman to 1. Approve Amendment No. 9 to Reimbursement Agreement between the City of Huntington Beach and Shea Homes Limited Partnership for Costs Incurred for Professional Planning Services in Connection with the Parkside Estates Project, and authorize the Mayor and City Clerk to sign; and 2. Approve the appropriation of funds of $75,000 to the Planning Department's Contractual Services Account for processing of Developer's entitlements for the Parkside Estates project. Submitted by the Planning Director. Funding Source: Unappropriated General Fund balance to be reimbursed by Shea Homes, L.P. not to exceed $75,000. The motion carried by the following roil call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: Garofalo (City Council) Approved Utility Agreement with the Department of Transportation to Reimburse CALTrans for Costs Related to Paving Project on Pacific Coast Highway (between Beach Boulevard and Goldenwest Street) — Authorized Expenditure of Funds (600.20) The City Council considered a communication from the Public Works Department requesting Council to authorize Public Works Director Robert Beardsley to enter into an agreement with the State of California, Department of Transportation (CalTrans) obligating the city to reimburse (26) October 2, 2000 — Council -Agency Minutes - Page 26 CalTrans for restoring the city's water utilities after its paving project on Pacific Coast Highway is completed. CalTrans is constructing a pavement rehabilitation project on Pacific Coast Highway, between Beach Boulevard and Goldenwest Street in January 2001. Consequently, it will be necessary to make adjustments to existing city facilities, requiring the attached Utility Agreement that obligates the city to reimburse CalTrans for actual costs of the work. Public Works Director Beardsley responded to Council that the city funds for the work as standard operating procedure under the provisions of 673 of the Streets and Highways Code. A motion was made by Sullivan, second Green to 1. Approve Utility Agreement No. 12-UT-675 between CalTrans and the City of Huntington Beach, and authorize the City Administrator to execute same; and 2. Authorize the expenditure of up to $27,000 (estimated cost of $24,400, plus 10% contingencies) for the actual cost of this work. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES. None ABSENT: Garofalo (City Council) Approved Agreement between the City and the County of Orange for Animal Care Services — Fiscal Year 2000/2001 - Authorized Appropriation of Funds (600,25) The City Council considered a communication from the Director of Organizational Effectiveness Clay Martin requesting approval of an agreement with the County of Orange for animal care services. The County of Orange Health Care Agency has provided animal control and shelter services to the city since 1975. The 2000-01 contract with the county contains a substantial cost increase from the prior year. As a result of negotiations with the client cities, the county has agreed to absorb $600,000 of the increase. The remaining $1.05 million has been allocated to client cities based on their demand for services. Huntington Beach's 2000-01 contract amount increased $84,543, or 24.74 percent, to $426,315. In preparing the FY 2000-01 budget, staff anticipated an increase in the cost of the county contract, however not one of this magnitude. As a result, this report requests a supplemental appropriation to fully fund the contract. The FY 2000-01 contract is being presented late to the City Council due to delays in the preparation of the county budget and the time required to negotiate the client cities' obligation for increases in the county's budget. On September 20, 2000 the County Health Care Agency informed the city that, in FY 1999-2000, the county had under -billed the city by nearly $10,000. In order to fund the billing adjustment, staff is requesting a $10,000 increase to the appropriation to fund the contract. Councilmembers Julien and Sullivan requested that this agenda item be removed from the Consent Calendar to discuss separately. (27) October 2, 2000 — Council -Agency Minutes - Page 27 Councilmember Sullivan expressed concern over the magnitude of the 24% increase in the budget. He further stated that a lack of confidence is exacerbated due to the delays on the county's part, as well as the request for an additional $10,000 in last year's billing. Councilmember Julien suggested that further study be conducted. She commented on the cost per animal for the service and communicated a figure calculated by Councilmember Green to be about $2,500 per head. Director of Organizational Effectiveness Clay Martin informed Council of a feasibility report due in January 2001 for Council review. A motion was made by Julien, second Harman to 1. Approve the Agreement for Provision of Animal Care Services between the County of Orange and the City of Huntington Beach — Fiscal Year2000-2001 and authorize the Mayor and City Clerk to execute same; and 2. Appropriate $86,315 from the General Fund undesignated, unreserved balance to fully fund the agreement. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: None (City Council) Public Hearing - Adopted a Fair Share Traffic Mitigation Impact Fee for All New Developments -Approved Transportation Needs Analysis 2000-2010 by J. R. Consulting Engineers and Fair Share Traffic Mitigation Impact Fee Calculation Method and Justification Report —Approved Introduction of Ordinance No. 3477 -Adopted Resolution No. 2000-97 (340.20) Mayor Pro Tem Harman declared that this was the time scheduled to consider the following: Public hearing for the purpose of considering adoption of a Traffic Impact Fee. A similar flee is currently imposed on building permits for all new residential, commercial and industrial development, but will expire on October 4, 2000. The proposed fee would be used exclusively for capital improvements to city streets. A complete report detailing the reasons for the Traffic Impact Fee is available for public review at City Hall, 2000 Main Street in the City Clerk's Office between the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. Legal notice as provided to the City Clerk's Office by staff had been mailed, published and posted. Public Works Director Beardsley presented a brief slide report that had been announced earlier by the City Clerk as a Late Communication. The Late Communication is a PowerPoint presentation dated October 2, 2000 and titled Fair Share Traffic Mitigation Impact Fee — Public Works Department — City of Huntington Beach — Traffic Impact Fees. Public Works Director Beardsley introduced Interim Transportation Manager Tom Brohard and Paul Silver, financial consultant, H. R. & A., Inc. (Hamilton, Rabinovitz & Alschuler, Inc.). Mayor Pro Tern Harman declared the public hearing open. (28) October 2, 2000 — Council -Agency Minutes - Page 28 Joyce Riddell, President, Chamber of Commerce stated that the Chamber Board held a meeting at which Parks, Trees and Landscape Superintendent Daryl Smith and Interim Transportation Manager Tom Brohard gave a briefing. Ms. Riddell requested a continuance in order to review the issue in depth. She expressed a concern based on industrial/commercial use (not so much residential) since there is a 60% increase in the fee. Due to the time element problem, Ms. Riddell recommended approval of the item and scheduling another public hearing to set the fee. There being no persons present to speak further on the matter and there being no further protests filed, either written or oral, the hearing was closed by Mayor Pro Tern Harman. The City Clerk announced that for the record she is entering another Late Communication item announced earlier that pertains to the public hearing. The Late Communication is dated October 2, 2000 of the City Attorney's Office transmitting modifications to the proposed Ordinance and Resolution establishing a Fair Share Traffic Mitigation Impact Fee. The Inter - Department Communication from Assistant City Attorney Scott Field is titled Agenda Item D-3 of the October 2, 2000 City Council Meeting, Fair Share Traffic Mitigation Impact Fee. Public Works Director Beardsley stated how problematic an extension would be to put in place on an ordinance after the sunset period has expired. He informed Council if there is a two -week time gap some projects are going to be exempt from the ordinance. City Administrator Silver suggested an interim measure be considered. Councilmember Bauer informed Council it is his intent to make a motion to approve. Councilmember Sullivan cautioned that the ordinance should not be deferred for the benefit of one organization. Councilmember Sullivan informed Council that he is going to be making a motion to adopt the ordinance with minor changes per the memo from Assistant City Attorney Field. A motion was made by Sullivan, second Bauer to: 1. Receive, adopt and approve the City of Huntington Beach Transportation Needs Analysis 2000-2010, dated September 12, 2000, prepared by J. R. Consulting Engineers (ATTACHMENT NO. 4) and the City of Huntington Beach Fair Share Traffic Mitigation Impact Fee Calculation Method and Justification Report, dated September 19, 2000, prepared by Hamilton, Rabinovitz & Alschuler, Inc. (ATTACHMENT NO. 3); and 2. Conduct a public hearing for considering the adoption of a Fair Share Traffic Mitigation Impact Fee for all new residential, commercial and industrial development, to be used exclusively for capital improvements of city streets; 3. After City Clerk reads by title, approve introduction of Ordinance No. 3477 as amended, per memo from Assistant City Attorney Scott Field dated October 2, 2000 and titled Agenda Item D-3 of the October 2, 2000 City Council Meeting, Fair Share Traffic Mitigation Impact Fee entitled `An Ordinance of the City of Huntington Beach Amending Chapter 17.65 of the Huntington Beach Municipal Code Regarding Adopting a Fair Share Traffic Mitigation Impact Fee Pursuant to California Government Code Sections 66000, et seq. and Making Findings in Support Thereof." (ATTACHMENT NO. 1); and (29) October 2, 2000 — Council -Agency Minutes - Page 29 4. Adopt Resolution No. 2000-97 as amended, per memo from Assistant City Attorney Scott Field dated October 2, 2000 and titled Agenda Item D-3 of the October 2, 2000 City Council Meeting; Fair Share Traffic Mitigation Impact Fee entitled "A Resolution of the City Council of the City of Huntington Beach Establishing the Fair Share Traffic Impact Mitigation Fee," which would establish a Traffic Mitigation Impact Fee in the amount of $120 per average daily vehicle trip. (ATTACHMENT NO. 2) The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: Garofalo (City Council) Continued from September 18, 2000 - Approved Re -Introduction of Ordinance No. 3470 to Amend H. B. Municipal Code Chapter 5.70 Relating to Regulation and Operation of Sex Oriented Businesses and Findings in Support of Chapter 5.70 (640.10) Assistant City Attorney Field responded to questions regarding the constitutionality of the proposed ordinance. The City Clerk stated for the record the Late Communication she announced earlier that pertains to this item. The Late Communication is a copy of Ordinance No. 3470 submitted by the City Attorney's Office to the City Clerk's Office on October 2, 2000. The attached version replaces the ordinance version submitted in the agenda packet for the agenda item on the Sex Oriented Business Ordinance for the October 2, 2000 City Council Meeting. A motion was made by Julien, second Green after City Clerk reads by title, to approve introduction of Ordinance No. 3470 as amended, "An Ordinance of the City of Huntington Beach Amending Chapter 5.70 of the Huntington Beach Municipal Code Relating to Regulation and Operation of Sex Oriented Businesses and Findings in Support of Chapter 5.70. " The motion carried by the following roll call vote: AYES: Julien, Harman, Green, Bauer NOES: Sullivan, Dettloff ABSENT: Garofalo (City Council) Request by Counciimember Ralph Bauer Approved for Staff and City Council to Organize a Reception Hosted by Councilmember Bauer Inviting and Honoring Former and Current Huntington Beach Olympians and Their Coaches (160.10) The City Council considered a communication from Councilmember Ralph Bauer transmitting a Statement of Issue requesting that the city organize a reception honoring current and past Huntington Beach Olympians. Councilmember Bauer informed Council that he will fund the reception and run the event. In answer to Mayor Pro Tern Harman's inquiry, he expects there to be between 10 and 15 Olympians. Councilmember Sullivan commended Councilmember Bauer and commented upon the invitees to include members of the community. (30) October 2, 2000 — Council -Agency Minutes - Page 30 Discussion foflowed relative to having the event televised per Councilmember Dettloff s suggestion. The City Clerk stated for the record that a Late Communication was announced earlier in the meeting that pertains to this agenda item. The Late Communication dated October 2, 2000 is from Bob Biddle, President of Huntington Beach Tomorrow, Inc. transmitting the company's opinion regarding the proposed reception to be hosted by Councilmember Bauer. The communication is titled Councilman Bauer's H-Item regarding Hosting Party for the Huntington Beach Olympians. A motion was made by Julien, second Sullivan to direct staff to work with Councilmember Bauer and the City Council to identify and invite present and past Olympians and coaches from Huntington Beach to a city reception in October 2000 to be held at Councilmember Bauer's home. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: Garofalo (City Council) Deferred to October 16, 2000 - Presentation by Councilmember Ralph Bauer of a Slide Report Titled The Huntington Beach Work Program and its Financial Foundation (160.10) The City Council concurred unanimously (Garofalo absent) with City Administrator. Silver's request to defer Councilmember Bauer's item to October 16, 2000 and return it as a City Administrator's Report. (City Council) Deferred to October 16, 2000 - Request by Councilmember Dave Sullivan to Direct Staff to Hire Consultant Services for Recruitment of Police Officers (700.10) The City Council concurred unanimously (Garofalo absent) with City Administrator Silver's request to defer Councilmember Sullivan's item to October 16, 2000 and return it as a City Administrator's Report. (City Council) Approved Councilmember Dave Sullivan's Request to Direct Police Chief Ronald Lowenberg to Report at the October 16, 2000 Council Meeting on the Implementation of Megan's Law and Report the Number of Registered Sex Offenders and High Risk Sex Offenders Residing in Huntington Beach (530.10) The City Council considered a communication from Councilmember Dave Sullivan regarding implementation of Megan's Law. A motion was made by Sullivan, second Harman to direct the Police Chief to report to the City Council at the next Council meeting on the implementation of Megan's Law in Huntington Beach. In addition, report the number of both registered sex offenders and high risk sex offenders that currently live in Huntington Beach. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: Garofalo (31) October 2, 2000 — Council -Agency Minutes - Page 31 (City Council) Approved Councilmember Dave Sullivan's Request for Council Support of County of Orange Measure "H" on the November 7, 2000 General Election Ballot for All Revenues Received from the Tobacco Litigation Master Settlement Agreement to Fund Health Care, Tobacco Use Prevention, and Public Safety Services (120.70) The City Council considered a communication from Councilmember Dave Sullivan regarding County Measures "G" and "H," and recommending the City Council's endorsement of County Measure."H." County Measure "H" and the opposing County Measure "G" are described below. Measure "G". Yes Should 60% of the revenues received from the tobacco litigation Master Settlement Agreement be used to fund health care services, tobacco use prevention, and public safety programs and services, with the other 40% No used to reduce the county's bankruptcy -related debt? Measure "H": Yes Should all revenues received from the tobacco litigation Master Settlement Agreement be used to fund health care services, tobacco use prevention, and public safety programs and services? No Councilmember Sullivan reiterated that the competing County Measure "G" diverts 40% of the money to the Orange County bankruptcy as outlined by many speakers. Earlier in the meeting, the City Clerk announced a Late Communication submitted by Chauncey A. Alexander to her office on October 2, 2000 titled Health Care Policy of Orange County Board of Supervisors. Mayor Pro Tern Harman spoke in favor of County Measure "H" for health purposes. A motion was made by Sullivan, second Bauer that the City Council of the City of Huntington Beach endorse County Measure "H" on the November 7, 2000 general election ballot. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Dettloff, Bauer NOES: Green ABSENT: Garofalo (City Council) Approved Councilmember Pam Julien's Request for Staff to Convene a Summit Meeting of All Municipalities to Address Strategies for Financing Solutions - Urban Runoff Issues Relative to Governor Davis' Veto of Assemblyman Baugh's Legislation (520.30) The City Council considered a communication from Councilmember Pam Julien transmitting the following Statement of Issue: For the past 14 months, the City Council and staff have been (32) October 2, 2000 — Council -Agency Minutes - Page 32 working diligently to manage the scientific, financial and public relations impacts of AB 411's higher water quality standards. The city has expended over $2 million to find the sources and mitigate the impacts of these higher standards. In November 2000, the findings of the UCI, URS Greiner Woodward Clyde, and Komex HZO Studies will be released to the City Council and the public. Based on the release of this upcoming report, I believe that now is the appropriate time to involve a greater number of local agencies in a countywide and regional approach to funding the recommended alternative methods to handling urban runoff, and, to explore alternatives to discharge of primary/secondary treated sewage into the ocean off Huntington Beach. This is particularly critical, in the wake of Governor Davis' recent unconscionable veto of the $6.9 million in the Baugh legislation earmarked for such projects. This item has been discussed with Supervisor Silva and he agrees that the proposed summit meeting would be appropriate. Councilmember Julien stated she would like to see a regional approach taken on this issue. Councilmember Julien informed Council that she spoke with Orange County Supervisor Jim Silva who concurred that this issue is critical in wake of Governor Davis' veto. Councilmember Dettloff expressed her support, suggesting that after formation, a regional water quality control representative be appointed to address this as a statewide issue; the only way to make any gains, especially with regard to funding. Councilmember Dettloff outlined priorities that could considered relative to meeting with assembly members and State senators, who can then take it up with the Governor. Mayor Pro Tern Harman directed an inquiry to City Administrator Silver as to whether staff has resources to undertake this effort. Mayor Pro Tern Harman requested staff to return with a keynote speaker, an agenda and a representative, as mentioned earlier. A motion was made by Julien, second Sullivan to: direct the City Administrator to convene a summit meeting of all local governmental agencies with urban runoff into the Santa Ana River watershed. The purpose of the meeting will be to decide how to permanently divert, clean, and treat Huntington Beach and other North Coast ocean waters and identify a method for each agency to pay its fair share to achieve this end. This may include: A) New, bipartisan legislation to secure state funding; B) Identification of existing funding sources (i.e. — new Proposition 13); C) Countywide funding mechanisms; and as amended, add that D) City Administrator return with an agenda, plan, keynote speaker and representative (i.e., an Assemblyman) to address as a statewide issue. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: Garofalo (City Council) Approved Request for Review of City's Gift Ban Ordinance (640.10) The City Council considered a communication from Councilmember Pam Julien transmitting the following Statement of Issue: Recent events have brought to the attention of the City Council that the city's gift ban ordinance is out -dated and confusing because it provides different standards than State law regarding acceptance of gifts by public officials, and is ambiguous as (33) October 2, 2000 — Council -Agency Minutes - Page 33 to what is meant by "soliciting gifts," in that the solicitation of charitable gifts may be prohibited. The City Attorney is willing to supply a liaison to work with citizens or a City Council Committee to review and perhaps rewrite the ordinance. Discussion was held whether to make the ordinance a zero tolerance gift ban ordinance, keep it at status -quo level, or to adjust it to a more modest level. Following discussion, a motion was made by Julien, second Green to convene current Council Committee members (Garofalo, Harman & Dettloff) to review the current ordinance in comparison to other cities' ordinances and state law, and suggest to the Council and the City Attorney language changes which would make the gift ban ordinance more understandable and more workable on a day-to-day basis. The motion carried by the following roll call vote: AYES: Julien, Sullivan, Harman, Green, Dettloff, Bauer NOES: None ABSENT: Garofalo Adjournment — City Council/Redevelopment Agency Mayor Pro Tern Harman adjourned the regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach at 1:05 a.m. to Monday, October 16, 2000, at 5:00 p.m., in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California. _0 • City Clerk and ex-officio Cler f the City Council of the City of Huntin on Beach and Clerk of the Redevelopment Agency of the City of Huntington Beach, California ATTEST: Z&-.Mr• 02-4 City Clerk -Clerk Mayor -Chairman