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HomeMy WebLinkAbout2001-04-02 (7)Minutes City Council/Redevelopment Agency City Of Huntington Beach 3:30 - 5:00 P.M. — Room B-8 Civic Center, 2000 Main Street Huntington Beach, California 92648 April 2, 2001 Call to Order Mayor Pro Tern Cook called the regular adjourned meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 3:30 p.m. in Room B-8. City Council/Redevelopment Agency Meeting Roll Call Present: - Boardman, Cook, Dettloff, Bauer (Julien Houchen, Garofalo arrived at 3:40 p.m.) Absent: Green Public Comments — On Closed Session Items Only Dave Sullivan informed Council he had received over 2000 calls relative to the property tax refund issue. He spoke regarding what he believes will be the consequences of an appeal. He informed Council that he believes the League of Cities position on this matter should not influence Council. Chuck Scheid presented reasons why he believes the city should not appeal the property tax refund issue. He protested the form prepared by the City Attorney's Office and requested that the form available on the website be made available at the City Clerk's Office. Motion to Recess to Closed Session — Approved A motion was made by Garofalo, second Dettloff to recess to Closed Session on the following items. The motion carried by the following roll call vote: AYES: Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: Green (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 Howard Jarvis Taxpayers Assn. et al., v City of Huntington Beach, et al., Orange County Superior Court Case No. 81 87 80. (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. This title of the litigation is In the Matter of AES Huntington Beach Generating Station Retool Project Application for Certification; Before the California Energy Commission, Docket No. 00-AFC-13. (120.80) (2) April 2, 2001 Council/Agency Minutes - Page 2 (City Council) Closed Session — Pursuant to Government Code Section 54956.9(b)(2)(B) to confer with its city attorney regarding pending litigation. The 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. Subject: PLC Land Company (Parcel 7A). (120.80) Reconvene - The City Council reconvened in Room B-8, Civic Center at 5:00 p.m. Adjournment — City Council/Redevelopment Agency Mayor Julien Houchen adjourned the regular adjourned meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach. The regular meetings of the City Council and the Redevelopment Agency convened at 5:00 p.m., in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California. City Clerk and ex-officio Cler of the City Council of the City of Huntington Beach and Clerk of the Redevelopment Agency of the City of Huntington Beach, California ATTEST: ew� � — N4M Gamtnz 46,,�, City Clerk -Clerk ayor-Chairman Minutes City Council/Redevelopment Agency City of Huntington Beach 5:00 P.M. - Room B-8 7:00 P.M. — Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 Monday, April 2, 2001 A videotape of the 7:00 p.m. portion of this meeting is on file in the Office of the City Clerk. Call to Order Mayor Julien Houchen called the regular meetings of the City Council and the Redevelopment Agency of -the City of Huntington Beach to order at 5:10 p.m. in Room B-8. City Council/Redevelopment Agency Meeting Roll Call Present: Green, Julien Houchen, Garofalo Dettloff, Bauer (Boardman, Cook arrived 5:11 p.m.) Absent: None (City Council) Study Session — Accepted Reports on the Huntington Beach International Surf Museum Located at 411 Olive Street (270.10) Ms. Natalie Kotsch, founder of the Huntington Beach Surf Museum provided an oral presentation. She gave background information on the history of the museum, which was founded while Ms. Kotsch was President of the Downtown Merchants Association. Ms. Kotsch distributed a Late Communication at the meeting; a folder titled International Surfing Museum, Huntington Beach — Legends, Collection, Membership, Exhibit. It contains several pieces of collateral material, including a comprehensive outline that sets forth and describes the intent and purpose of the museum, including its Mission and Vision Statements and web site address. Said folder also includes a Compact Disk titled "Huntington Beach International Surfing Museum - Rendezvous Ballroom Reunion 2000 with Pulp Fiction Rock Guitar Legend Dick Dale, King of the Surf Guitar." As Ms. Kotsch made an oral presentation, a videotape on the Huntington Beach International Surfing Museum played in the background. She stated that it was a Public Service Station broadcast from Germany showing footage of the museum archives. Ms. Kotsch pointed out archiving as one of the foremost, revenue -generating aspects of the museum industry. Ms. Kotsch introduced several members of the Huntington Beach International Surfing Museum Board of Directors who were present in the audience: Robert Frederickson, Chairman; Michael Lajtay, Board Member; and Keith Jackson, Treasurer. Chair Frederickson presented an oral report, reiterating several key points outlined in the Late Communication regarding the museum's: (2) April 2, 2001 Council/Agency Minutes- Page 2 1. "First-class, premier," community outreach program via a walk-through trailer, the "Mobile Museum;" 2. Fine working relationship with many city departments and the Conference and Visitors' Bureau; 3. Rededication to increased visibility for community awareness; 4. Programs and events; 5. All -volunteer working group; 6. Goal to work towards independence, but in collaboration with other agencies to fund programs and events; and 7. Major projects in need of funding: a.) the "Ultimate Museum" b.) archiving of surfing history records Ms. Kotsch informed Council of another of the museum's struggles: sponsorship permitting events to be held at the Pier Plaza. She stated the museum is working in close conjunction towards this endeavor with Special Events Coordinator, Naida Osline of the Community Services Department. Ms. Kotsch acknowledged the presence of former Huntington Beach Mayor John Erskine. She informed Council that Mr. Erskine is a friend of the museum and a land use attorney working on the Downtown 31 Acres project. Ms. Kotsch mentioned Mr. Erskine's museum and cultural experience. Ms. Kotsch spoke of the museum's relocation plans to occupy a corner of Second Street that fronts onto Pacific Coast Highway, which she considers a good spot for. exposure. She stated that although there is extensive and costly building restoration necessary, the plan will result in economic gain with a revitalized Downtown. Councilmember Green stated the Council's position on non-profit organizations. He delineated reasons relative to providing equal treatment in granting funds that prompted him to initiate the formation of a Council committee to look into the city's rights and obligations in regard to the status of non -profits. Councilmember Green informed Ms. Kotsch that the Council is going to be meeting in the near future on an issue involving the Huntington Beach Playhouse. Councilmember Garofalo encouraged Ms. Kotsch to move forward with the Surfing Museum's relocation process, delineating some of the steps, including developing the pro -forma and looking at the current site for other uses. As the museum representative who was to present a PowerPoint slide report had not yet arrived and due to time constraints, Council concurred to postpone that portion of the study session and requested Community Services Director Ron Hagan to reschedule to a future date. Council thanked the Museum Board representatives for their reports. Motion to Recess to Closed Session — Approved A motion was made by Garofalo, second Boardman to recess to Closed Session on the following items. The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None (3) April 2, 2001 Council/Agency Minutes- Page 3 ABSENT: None (City Council) Closed Session — Pursuant to Government Code Section 54957.6 to meet with its designated representatives, Agency Negotiators: William Workman, Assistant City Administrator; William Osness, Personnel Director; and Daniel Cassidy, Esquire of Liebert, Cassidy, and Frierson regarding labor relations matters — meet and confer with the following employee organization: HBPOA. (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.; USDC Case No. CV 99-09909. (120.80) (City Council) Closed Session — Pursuant to Government Code Section 54956.8 to give instructions to the city's negotiators, Matt Lamb and Ron Hagan, regarding negotiations with Jack Clapp concerning the purchase/lease of Dwight's Beach Concession located on the east side of the Huntington Beach Pier, on the south side of the Pacific Coast Highway, and north of the sand line from the Pacific Ocean. Instructions will concern Price and Terms of Payment. (120.80) Reconvened City Council/Redevelopment Agency Meeting - 7:00 P.M. City Council -Redevelopment Agency Roll Call Present: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer Absent None Flag Ceremony and Pledge of Allegiance — Daisy Troop No. 96, Saints Simon and Jude Church, Huntington Beach. Leader Janet Froning. Invocation — Father Christian, Saints Simon and Jude Church, Huntington Beach. City Clerk Announced 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: Communication on the Howard Jarvis closed session agenda item from Frank G. Terry dated March 23, 2001 and titled Allocation of Funds to City Attorney's Legal Services, protesting using city funds to appeal the Superior Court re: taxes collected to pay for employees' retirement benefits. PowerPoint slide presentation from Administration on the Howard Jarvis lawsuit relating to the closed session and Mayor Pro Tern Debbie Cook's Council items titled Howard Jarvis Taxpayers Association v. City of Huntington Beach — A Public Presentation for the City Council Meeting —April 2, 2001. (4) April 2, 2001 Council/Agency Minutes- Page 4 Added Agenda Item - Approve Recommendations Presented by Mayor Pro Tern Debbie Cook Re: City's Process for Accepting Property Tax Refund Claim Forms Relative to the Howard Jarvis Taxpayers Litigation Case (Proposition 13). Various collateral material submitted by Natalie Kotsch for the Study Session on the Huntington Beach International Surfing Museum. PowerPoint slide presentation from the City Treasurer on the January 2001 Investment Report. PowerPoint slide presentation from the Planning Director titled Zoning Text Amendment No. 01-01 - Single Room Occupancy Ordinance. Request for Council Action (RCA) from Fire Chief/Information Systems Director Dolder dated April 2, 2001 — Revised Recommended Action to include approval of limited liability and indemnification obligations and approve a waiver of professional liability insurance for the AMX International, Inc. Budget Plus Software License Agreement. Communication to the City Administrator from the City Attorney's Office dated April 2, 2001 and titled Approval of Modified Indemnification and Insurance Requirements for Agreement between the City and AMX International, Inc.; Council Meeting of April 2, 2001, Agenda Item E-15. PowerPoint slide presentation from the Public Works Director titled Master Plan of Sewers Update- Including Inflow and Infiltration Study. PowerPoint slide presentation from the Public Works Director titled Water Master Plan Update December 2000. Communication from the City Attorney to Chuck Scheid dated April 2, 2001 in response to Mr. Scheid's letter dated March 5, 2001 regarding reconsideration of the Springdale Reservoir. PowerPoint slide presentation from the Public Works Director dated April 2, 2001 and titled Asbestos Removal Project. (City Council) Received Reports Re: the Completion of the Downtown Sewer Repair (1020.70) Mayor Julien Houchen, City Attorney Hutton, and City Administrator Silver clarified that the city received a misdemeanor on the Grand Jury investigation of the sewer leaks, and not a felony as previously reported. The City Administrator announced that sewers have been tested and are fixed. City Administrator Silver stated that the results confirm that the downtown sewer problem was not part of ocean water pollution. He stated that the city had already purchased cameras for the purpose of investigating the 100 year old pipes. Mayor Julien Houchen announced that Mayor Pro Tern Cook's Council item regarding the property tax issue is being moved up and will be addressed after the Public Comments portion of the meeting. Public Comments Chuck Scheid spoke in opposition to the salary and benefit provisions in the agenda item on the City Administrator's contract. He also objected to the funding mechanisms used in the (5) April 2, 2001 Council/Agency Minutes- Page 5 Water Master Plan. Mr. -Scheid stated that the plan is project -specific, and that the approval of major changes in the 2000 Water Master Plan is not consistent with the plan as established in 1995. Mortimer Shea requested Council not to appeal the judge's decision to rule against the city in the Howard. Jarvis litigation, stating that it would be a waste of the taxpayer's money. He expressed his fear that the funds for the purchase of playground equipment for the South East Huntington Beach community will be taken away with the filing of this appeal. Mr. Shea spoke of refunding the money to Huntington Beach property owners in a timely manner. Dave Sullivan, representative of the Huntington Beach Taxpayers' Association, displayed his organization's phone number 840-4015, stating that he has received upwards of 3,000 phone calls from the public requesting a rebate of the property tax. Dr. Sullivan expressed his disapproval of the tax refund claim form issued by city, and stated that he is in favor of Mayor Pro Tern Cook's item requesting the discontinuance of its use. Denyse Scarberry alleged unhealthy conditions to be found in Marine View Middle School portable classrooms and requested Council to ask the Ocean View School District what they are doing to remedy the problem. Lou Baker stated that information he has obtained indicates that the state and the Orange County Sanitation District (OCSD) had split the cost of the downtown sewer repairs, and that the money did not come from city. He inquired why if not contaminated, were two water wells closed. He suggested independent appraisals of the downtown sewers. In response to Mr. Baker's comments Public.Works Department Director Robert F. Beardsley reported on the two wells, offering that the Water Operations Manager can provide further information at a future Council meeting. Councilmember Green clarified for the speaker the sources of the funds for the sewer repair, stating that money was derived from matching funds between the city and OCSD and from an Environmental Protection Agency (EPA) grant. Don McGee thanked the Mayor for her public service on behalf of the city. He spoke regarding the different agencies working in conjunction with the city on the sewer problem, stating his opposition to what he perceives as the inaccurate news coverage of the issue. Mr. McGee spoke against the proposed Ocean View School District gymnasium project. Norm Westwell presented a PowerPoint slide report. He expressed his disapproval of the construction of the Springdale Reservoir. Mr. Westwell stated his opposition to the agenda item relative to the City Administrator's contract. Barbara Boskovich commended Public Works Department Transportation Division employee, James Maclean for his prompt service in getting a new crossing sign and a new fluorescent school children crossing sign on Heil Avenue. Stu Robertson spoke in opposition to receiving a ticket for parking in an alley on street sweeping day. Mr. Robertson spoke against the quality of ocean water and E-coli as causing him to become ill. Mr. Robertson suggested that the city post signs that warn against ocean pollution. Councilmember Garofalo ascertained from staff that there is no street sweeping in alleys. (6) April 2, 2001 Council/Agency Minutes- Page 6 Joey Racano stated that his purpose in speaking is to clarify that pollution is not coming from sewers and spoke regarding dumping sewage as the problem. He also rebutted the assertion made by the Public Works Department that the sewers are not harmful. Mr. Racano stated that the problem is exacerbated with the Ground Water Reclamation Project, which was voted on and approved. He spoke in opposition to said project's process of reverse osmosis. Councilmember Green responded to the last speaker's statements with a report on the Orange County Sanitation District's funding for the study of ocean contamination, which he stated will be conducted during the summer due to the conditions of the thermocline. Councilmember Bauer corrected the speaker's comments regarding the chemistry of ocean pollution. Lou Robertson informed Council that his initial purpose for coming to the meeting was to air a complaint against receiving a parking citation. Mr. Robertson stated that the public comments regarding the sewer issue prompted him to instead speak regarding the sewer problem; that it is still of importance even if the plea was to a misdemeanor. Pam Walker, Ocean View School District (OVSD) Board member, presented an update on school gymnasium project. Ms. Walker stated that representatives of all four middle schools have met and sent their recommendations. She offered to provide Council with the balance of the information when it becomes available. Gary Chough urged Council not to appeal the judge's decision on the property tax issue, and spoke in regard to Proposition 13 adopted in 1978. Mr. Chough stated that as a tax consultant and CPA, he would like to caution against costly attorney fees. Eileen Murphy spoke in opposition to the tax refund claim form and stated the process as a very confusing procedure. (City Council) Report Made by Councilmember Green Re: the County of Orange and Beach Closures Relative to Assembly Bill 411 (520.30) For the benefit of the public speakers, Councilmember Green clarified that it is the County of Orange that is responsible for posting the beach closures and not the city, as the county, including the Orange County Sanitation District, has the required licensed laboratories. Councilmember Green stated that prior to the passage of Assembly Bill 411 in July of 1999, beach closures had been very infrequent. (City Council) Approved As Amended Recommendations Presented by Mayor Pro Tem Debbie Cook to Establish City's Process for the Orderly Filing of Property Tax Refund Claim Forms Relative to the Howard Jarvis Taxpayers Litigation Case (Proposition 13) - Directed the City Attorney to Hold in Abeyance Section 5907 of the Revenue and Taxation Code to Evaluate the City's Financial Exposure and Consult with Appropriate Outside Entities — Motion Denied to Discontinue Distribution of the Form Prepared by the City Attorney's Office (630.40) The City Council considered a communication received from Mayor Pro Tern Debbie Cook transmitting the following Statement of Issue: Following the preliminary ruling by the Superior Court in the Howard Jarvis lawsuit, the City Attorney's Office, on its own initiative, prepared a form that has been made available through the City Clerk's Office for the purpose of filing for property tax refunds. The Huntington Beach Taxpayers Association (HBTPA) has requested that an alternative form be provided which has been prepared by the Plaintiff in this case. (7) April 2, 2001 Council/Agency Minutes- Page 7 HBTPA's concern is that the city form discourages individuals from filing for refunds and creates, in essence, make -shift work for residents. A number of additional issues have been raised by other residents with regard to the process for filing claims: 1. As of this writing, a Final Judgment has not been entered by the court. It is unclear how far back residents may be permitted to seek refunds. 2. There will be a cost associated with processing claim forms. It would be imprudent to create such a confused process that residents are forced to file multiple forms, overburdening any system that is established. 3. Who will actually be processing forms and do we need to consult with possible outside agencies to see what requirements they may have. 4. What are the tax implications for property owners and should that information be ascertained so as to better educate the public regarding their responsibilities. There are certainly more issues that will come from a discussion of this very complex matter. If this is not handled appropriately it will be yet another public relations fiasco. Mayor Pro Tern Cook stated reasons for placing this item on the Council agenda, as an attempt to clear up what she perceives as confusion generated by multiple forms for the tax refund being distributed by the city, and the misunderstanding that the city is discouraging filing. She stated that the purpose of the agenda item is not to recommend which form to use but to inform of the consequences. Mayor Pro Tern Cook spoke regarding the contents of her Council memorandum, providing the input that citizens may wish to donate the taxes paid to the city; as some individuals may not mind having given more than their share of the taxes. She stated that it would behoove anyone filing to find out the claim process as typically a claim filed is automatically denied. Mayor Pro Tern Cook explained what may be the ramifications and requested discussion of the process that the city intends to implement. Councilmember Boardman expressed her concern that the city is prematurely taking steps in giving out forms and accepting claims since the issue is tentative. She mentioned that the City Attorney's Office cannot give out advice since it is defending the city. Councilmember Boardman stated her support of Mayor Pro Tem Cook's agenda item. City Attorney Gail Hutton spoke further regarding the judge's tentative ruling on the Howard Jarvis lawsuit. She related the genesis of the claim form being distributed. City Attorney Hutton informed Council that the form was crafted by her office in response to a request made by the City Clerk. Ms. Hutton stated that her office had in the past accommodated the City Clerk's Office with a Tort claim application that was "approved as to form" by the City Attorney. City Attorney Hutton informed that her office is unable to provide legal advice on this matter to private individuals on ethical and other grounds, besides the fact that it is defending the city in this case. Ms. Hutton requested Council to consider as an option the review of the refund form adopted by the City of Fresno. (8) April 2, 2001 Council/Agency Minutes- Page 8 Assistant City Attorney Scott Field provided a comprehensive history using the PowerPoint Slide presentation announced earlier by the City Clerk as a Late Communication. The communication is dated April 2, 2001 and titled Howard Jarvis Taxpayer Association v. City of Huntington Beach. He reported on slide numbers 15 and 16, "Information Requested on the Claim for Refund of Property Tax Form." He explained that any form turned in is going to be accepted by the city, but not necessarily as a valid claim. In response to Council inquiries, Assistant City Attorney Field stated that he could not comment on the adequacy of forms being circulated and completed. Assistant City Attorney Field reported on Section 5907 of the Revenue and Taxation Code and the city's process. Councilmember Bauer clarified what the average taxpayer may face in submitting the wrong form, emphasizing his concern that filing now may become problemmatic. A motion was made by Bauer to discontinue the distribution of the form prepared by the City Attorney's -Office. Councilmember Bauer spoke regarding local property taxes as opposed to state and federal taxes. Mayor Pro Tern Cook reiterated that her biggest concern deals with people having the false impression that the city is discouraging the filing of tax refund claim forms. She restated that at this point, all claims are going to be denied, in which case the only recourse may be to file individual lawsuits. Mayor Pro Tern Cook amended her recommended action to add direction to the City Attorney to investigate special legislation that will hold in abeyance the enactment of Section 5097 Revenue and Taxation Code. Councilmember Garofalo commended Mayor Pro Tern Cook for bringing the issue forward. He stated what he believes to be the advantages and disadvantages of filing, describing the process as confused and convoluted. He expressed his belief that it would be inappropriate to approve the motion to discontinue distribution of the form prepared by the City Attorney's Office. Councilmember Garofalo requested that the City Attorney's Office provide a mechanism whereby the city can move forward and appeal, while at the same time protecting the claimant so that there is no statute of limitation that would affect the life of the application to tick forward and run out. Discussion ensued relative to the legal time frames in which to apply for the rebate. Councilmember Boardman suggested that perhaps the City Council may be able to adopt an ordinance or a resolution to grant amnesty so that the taxpayer can be allowed to re -file and get paid if the clock starts ticking forward six months and time runs out. City Attorney Hutton reiterated that Revenue and Taxation Code is State law, and that the city is not empowered to modify it. Councilmember Boardman asked other than going through the State, what can be done locally, to which City Attorney Hutton responded that it is cumbersome but the city may be able to execute a tolling agreement. (9) April 2, 2001 Council/Agency Minutes- Page 9 Councilmember Dettloff requested clarification of the intent of the motion from Mayor Pro Tern Cook, and suggested consideration that the city accept all forms. A motion was made by Cook, second Dettloff to direct staff to evaluate the city's financial exposure, consult with appropriate outside entities, and establish a process for the orderly filing of claim forms and as amended, direct the City Attorney to investigate special legislation to hold in abeyance Section 5907 of the Revenue and Taxation Code. The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None (City Council) Announcement of Award Received by Police Chief Ronald Lowenberg from the Orange County Human Relations Commission for Work on the Special Committee on Hate Crimes (530.10) Councilmember Bauer reported that Police Chief Ronald Lowenberg had received an award from the Orange County Human Relations Commission, in recognition of his work on the Special Committee on Hate Crimes and for writing protocol on domestic strife. The Council extended their congratulations to Chief Lowenberg. (City Council) Reviewed and Accepted the City Treasurer's January 2001 Investment Summary Report (310.20) The City Council considered a communication from the City Treasurer transmitting the Monthly Investment Report for January 2001. City Treasurer Shari Freidenrich presented the PowerPoint slide report that had been announced earlier by the City Clerk as a Late Communication. City Treasurer Freidenrich announced that there are no significant changes but that there has been a drop in the interest rate. She informed Council that the city has a "buys and holds" investments to maturity and is not affected by short-term fluctuations in the market. A motion was made by Dettloff, second Green to review and accept the monthly report. Following review of the report, by motion of Council, accept the Monthly Investment Report Summary of Investment Portfolio for January 2001, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None (City Council) Public Hearing — Approved as Amended to Increase Minimum Room Size - Zoning Text Amendment No. 01-01 — Single Room Occupancy (SRO) — Approved as Amended Introduction of Ordinance No. 3494 Amending Chapters 230 and 231 of the Zoning and Subdivision Ordinance Relating to SRO and Off Street Parking (450.20) Mayor Julien Houchen announced that this was the time scheduled for a public hearing to consider the following: (10) April 2, 2001 Council/Agency Minutes- Pagel 0 Applicant: City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648. Request: To review and adopt an amendment to Section 230.46 Single Room Occupancy Ordinance of the Huntington Beach Zoning And Subdivision Ordinance (ZSO), and Section 231.04 Off -Street Parking of the ZSO. Location: Commercial General, Commercial Visitor and Industrial Zones. Environmental Status: Notice is hereby given that this item is categorically exempt pursuant to Class 20, City Council Resolution No. 4501, which supplements the California Environmental Quality Act. Legal notice as provided to the City Clerk's Office by staff had been mailed, published and posted. Planning Director Howard Zelefsky presented the PowerPoint slide report titled Zoning Text Amendment No. 01-01— Single Room Occupancy Ordinance, that had been announced earlier by the City Clerk as a Late Communication. Director Zelefsky highlighted what he described as the basic changes to the ordinance consistent with previous City Council direction relative to room size requirements and parking standards. Councilmember Bauer sought clarification from staff on commercial and residential zoning issues, stating that he is opposed to the single room occupancy project. Councilmember Bauer spoke favorably of the SRO located in an industrial area of the City of Irvine. Councilmember Boardman expressed her pleasure at seeing the changes in the SRO ordinance; calling attention to the increase in parking to one space per individual. Councilmember Boardman commended the minimum room size increase as a move in the right direction, but is looking for an increase in the maximum room size. Mayor Julien Houchen declared the public hearing open. Prior to calling the names of the public hearing speakers, the City Clerk restated for the record the foregoing Late Communication pertaining to this item presented by Director Zelefsky and announced earlier in the meeting. Dave Sullivan stated that as President of Huntington Beach Tomorrow, his purpose for speaking is two -fold, and from a humanitarian standpoint. The first is to state his agreement with Councilmember Boardman that the minimum room size should be greater than 200 square feet. The second is regarding the single occupancy requirement, stating that provisions ought to be made for a woman who has a young child or to accommodate an elderly couple. Joey Racano concurred with Councilmember Boardman, that 200 square feet is too small, recommending a minimum 250 square foot unit. Mr. Racano stated that he perceives the single room occupancy requirement discriminates against women who are expecting. Jim Martin cautioned against problems caused by building an SRO near a residence or a business. Mr. Martin stated reasons relative to zoning, and recommended the elimination of multiple zoning districts. (11) April 2, 2001 Council/Agency Minutes- Pagel 1 There were no persons present to speak further on the matter and there were no further protests filed, either written or oral. The hearing was closed by the Mayor. Discussion was held regarding the foregoing concerns voiced during the public testimonial. Planning Director Howard Zelefsky mentioned that members of both the Planning Commission and the City Council had visited what is considered to be a successful SRO in the City of. Fullerton that has units of a maximum 149 square feet. In response to Councilmember Dettloff inquiry as to the viability of increasing the room size, Director Zelefsky responded that the smaller room size keeps the rental cost of the unit down. Councilmember Dettloff informed Council that she is going to make a motion to approve, stating among her reasons that it will give the ability to have the developer come and see the city's potential as a site for affordable housing. Councilmember Green stated that he will second the motion. Councilmember Bauer stressed that the purpose of the SRO is affordability; the larger the unit the more costly. He suggested visiting the City of Irvine, where he had met with the Vice President of its SRO and visited the facility. Councilmember Bauer spoke regarding federal subsidies, while expressing concern that it may cause public outcry over the financing of a "HUD -type of housing project." Planning Director Zelefsky stated that the answer would be continued public education regarding affordable housing. Further discussion ensued regarding setting minimum room sizes, including what will be allowed for two persons per unit and to what percentage of the total units. A motion was made by Dettloff, second Green to approve as amended, with a minimum unit size of 250 square feet and to allow 25% of the units for 2 persons with a minimum unit size of 400 square feet: Zoning Text Amendment No. 01-01 with findings for approval (ATTACHMENT NO. 3*) and after City Clerk reads by title, approve introduction of Ordinance No. 3494 — "An Ordinance of the City Council of the City of Huntington Beach Amending Chapters 230 and 231 of the Zoning and Subdivision Ordinance Relating to Single Room Occupancy and Off Street Parking." (ATTACHMENT NO. 1) The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None *Attachment No. 3 Suggested Findings of Approval Suggested Findings for Approval — Zoning Text Amendment No. 01-01: 1. Zoning Text Amendment No. 01-01 amending Chapter 230.46 and Chapter 231.04 of the Huntington Beach Zoning and Subdivision Ordinance addressing Single Room Occupancy (SRO) development standards for commercial and industrial zones is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plans. The revised ordinance will improve the development standards of SRO's in the City of Huntington Beach. (12) April 2, 2001 Council/Agency Minutes- Page 12 2. The amended ordinance is compatible with the uses authorized in, and the standards prescribed for, the zoning district for which it is proposed. The revised ordinance applies to residential development in commercial and industrial zones as categorized the by zoning code. It amends the existing standard for SRO's to achieve development that is more compatible with development in the City. 3. The amendment to the ordinance will better accommodate the development of housing types, such as multifamily development and Single Room Occupancies (SRO), meeting special needs groups; senior citizens, physically and mentally challenged, and very low and low income categories in areas in accordance with the Housing Element of the General Plan. 4. The adoption of the ordinance will be in conformity with public convenience, general welfare and good zoning practice. The revised ordinance will result in the City's ability to provide a variety of housing opportunities for various income groups. 5. The amended ordinance will ensure a project's neighborhood compatibility by increasing the minimum room size for single and double occupancy units. (City Council) Administrative Hearing — Adopted Resolution No. 2001-11 Approving Certification of Special Assessments for Delinquent Civil Fines for Municipal Code Violations. Direct Staff to Include Information In Future Reports Re: Types of Households (570.60) The City Council considered communication from the City Treasurer and the City Attorney. Administrative public hearing as required by the California Government Code Section 38377.5 for the purpose of certifying special assessments against properties where pubic nuisances have occurred. Request for Council certification of recording Notices of Special Assessments against private property for the value of unpaid civil fines, plus interest and penalties, pursuant to Ordinance No. 3397 adopted by City Council on June 15, 1998. An administrative hearing is required by Huntington Beach Municipal Code 1.18. Only property owners are entitled to speak at an administrative hearing. All other interested parties may speak during regular Public Comment section of agenda at the beginning of the meeting. Written communications to the City Council may also be mailed to the City Clerk. Legal notice as provided to the City Clerk's Office by staff had been mailed, published and posted. City Attorney Gail Hutton presented an oral report, furnishing the rationale and background for the administrative public hearing. It was ascertained during discussion that the citations do not indicate the reasons behind the fines. This raised concern among Councilmembers Boardman and Cook who cited residents could be elderly and/or disabled persons, and that individuals are deemed guilty before they can defend themselves. (13) April 2, 2001 Council/Agency Minutes- Page 13 City Attorney Hutton responded that legislation has provided decriminalization, which is a time- saver for the city. In answer to the question on the type of penalties imposed, City Attorney Hutton stated that they vary on a case -by -case basis. Councilmember Bauer spoke regarding how nuisance housing is handled. Police Chief Ronald Lowenberg informed Council that the Nuisance Housing Task Force handles these cases routinely. Councilmember Boardman requested that future administrative hearings identify the make-up of the households, expressing concern that elderly and frail people may be affected who can neither financially nor physically adhere to code. Planning Director Zelefsky stated that every effort is being made to work with property owners; for example in mitigating circumstances, referrals are given to the city's housing rehabilitation program for funding. Mayor Julien Houchen stated that Councilmember Boardman's point is well taken, and requested that future hearings include information as to the type of structures; e.g., fourplexes, etc. A motion was made by Garofalo, second Green to 1. Adopt Resolution No. 2001-11 —A Resolution of the City Council of the City of Huntington Beach Certifying Special Assessments for Collecting Delinquent Civil Fines for Municipal Code Violations;"and 2. Approve, as amended, direction to staff to identify types of households in relation to health & safety issues. The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None Consent Calendar — Items Removed for Separate Discussion The following items were removed from the Consent Calendar for separate discussion: (City Council) Affordable Rental Housing Agreement Containing Covenants Between the City and Bridges America Sher, L.P. for 33 Apartment Units at 16122 Sher Lane/16161 Parkside Lane (600.10) (City Council) Amendment No..3 to the Professional Services Contract with Psomas and Associates for Interim Water Operations Manager Services (Dennis MacLain, P.E.) (600.10) (City Council) New Agreement between the City and the Sunset Beach Sanitary District (SBSD) for the City's Continuing Services in the Conveyance of SBSD Wastewater (Sewage Discharge) (600.10) (City Council) City Administrator Employment Agreement for Ray Silver (600.10) (City Council) Professional Services Contract with Purkiss Rose, RSI for Landscape Architectural Services for South Beach Phase II Project — Approve Use of Revenue Bonds/Pier Funds (600.10) (14) April 2, 2001 Council/Agency Minutes- Page 14 Note: the following item was not removed from the Consent Calendar by Council and was removed to amend the recommended action per a Late Communication from the City Attorney announced earlier by the City Clerk: City Council) Two Budget Plus Software Agreements between the City and the AMX International, Inc. for (1) Licensing and (2) Maintenance - JD Edwards Enterprise Resource Planning System (600.10) 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: Green, Boardman, Cook, Julien Houchen, Dettloff, Bauer NOES: None ABSENT: None (Garofalo out of room) (City Council/Redevelopment Agency) Minutes - Approved and adopted the minutes of the City Council/Redevelopment Agency special meetings of March 5, 2001, the City Council/ Redevelopment Agency regular meetings of March 5, 2001, and the City Council/ Redevelopment Agency regular adjourned meetings of March 16, 2001 as written and on file in the Office of the City Clerk. Submitted by the City Clerk. (City Council) Approved Memorandum of Understanding (MOU) between the City and the Orange County Workforce Investment Board to Support and Manage the City's Community Job Center at 18131 Gothard Street (600.25) — Approved and authorized the Mayor and City Clerk to execute the attached Memorandum of Understanding between the County of Orange, Working Through the Orange County Workforce Investment Board and the City of Huntington Beach for the Development and Operation of a Workforce Service Delivery System for the support and management of the City's Community Job Center. Submitted by the Chief of Police and the Economic Development Director. Funding Source: No Additional City Funds Required. (City Council) Adopted Resolution No. 2001-10 to Terminate Local Emergency Relating to Energy Crisis (510.20) — Adopted Resolution No. 2001-10 — 'A Resolution of the City Council of the Huntington Beach Declaring the Termination of the Local Emergency Previously Declared on January 22, 2001, in the City of Huntington Beach." Submitted by the City Attorney. Funding Source: Not Applicable. (City Council) Approved Professional Services Contract between the City and Diane Gladwell, Records Consultant, to Assist Staff in Developing a Citywide Records Management and Records Retention Program — Approved Settlement Committee's Recommendations for a Waiver of Insurance Requirements (600.10) — 1. Approved the Professional Services Contract between the City of Huntington Beach and Diane Gladwell for Development of a Citywide Records Management and Records Retention Program and authorize the Mayor and City Clerk to execute same; and 2. Approved a waiver of all insurance requirements as recommended by the Settlement Committee. Submitted by the Assistant City Administrator. Funding Source: Non -Departmental Account - $46,850. (Redevelopment Agency) Adopted Updated Redevelopment Agency Resolution No. 318 to Reflect Changes in the Current Organizational Structure of Appointed Officers (125.30) — Adopted Agency Resolution No. 318 — "A Resolution of the Redevelopment Agency, (15) April 2, 2001 Council/Agency Minutes- Page 15 of the City of Huntington Beach Fixing the Time and Place of Regular Meetings, Appointing Officers, Providing for Use of Services and Facilities of City Departments, and Providing for the Execution of Contracts, Deeds, and other Documents." Submitted by the Economic Development Director. Funding Source: Not Applicable. (1. Reflects the Mayor Pro Tern as the Vice Chair of the Agency; 2. Designates the Assistant City Administrator as the Assistant Executive Director; 3. Eliminates the Planning Director as the Redevelopment Director; 4. Designates the Director of Economic Development as the Deputy Executive Director; and 5. Reflects the Administrative Services Department in lieu of the Finance Department. The section re: execution of documents is modified to incorporate specific signature authority. The language re: the Agency Treasurer has been updated to reflect current investment practice.) (City Council) Pursuant to State Government Code — Approved Announcement of Public Hearing to be Held May 7, 2001 on Community Services Department Fee Schedule Amendments for 2002 (340.20) — Approved the following announcement of the plan to amend the city fee resolution by amending the 2002 fees for the Community Services Department. Submitted by the Community Services Director. Funding Source: Not Applicable. (Notice is hereby given that a public hearing will be held by the City Council of the City of Huntington Beach, in the Council Chambers of the Civic Center, Huntington Beach, at the hour of 7:00 PM, or as soon thereafter as possible on Monday, the 71h of May, 2001, for the purpose of amending the city fee resolution by amending the 2002 fees for the Community Services Department, specifically, instituting new fees for use of the new portions of the City Gym & Pool; removing fees for use of tables/chairs at the Art Center; instituting new fees for art center membership; increasing the fee for aquatics classes, special activities, day camps, senior softball; youth sports, field practice lights, junior lifeguard program; senior parking Plaza lot; and adding a new fee for combination beach and Main Promenade Parking Structure parking pass. In addition, the fees for beach and Main Promenade Parking Structure parking passes are being reduced.) (Redevelopment Agency) Approved Change of Ownership of Redondo -Kovacs Industrial Property to Kojo Seacliff, LLC — Approved Agreement and Transfer of Grant Deed between the Redevelopment Agency and Kojo Seacliff, LLC (Approves Transfer of 18100 Kovacs Lane from Cabot Industrial Properties to Kojo-Seacliff, LLC Pursuant to the Disposition and Development Agreement) (600.30) — Approved and authorized the Chairman and Agency Clerk to execute the attached agreement between the Redevelopment Agency and Kojo Seacliff, LLC, a Nevada Limited Liability Company (buyer) approving its purchase of the property at 18100 Kovacs, and transferring the requirements of the Grant Deed to the new owner — An Agreement between the Redevelopment Agency of the City of Huntington Beach Approving the Transfer of that Property Known as 18100 Kovacs Lane, Huntington Beach from Cabot Industrial Properties, L.P., a Delaware Limited Partnership to Kojo Seacliff LLC, a Nevada Limited Liability Company— and authorize the City Clerk to record same. Submitted by the Deputy Executive Director. Funding Source: None Required. (City Council) Approved Agreement with Accountants, Inc. for Temporary Payroll Backfill Personnel During Testing and Implementation of the JDEdwards System and Kronos Payroll Software (600.10) — Approved and authorized execution by the Mayor and City Clerk of the Agreement to Provide Backup Payroll and Accounting Services between the City of Huntington Beach and Accountants, Inc. Submitted by the Administrative Services Director. Funding Source: Human Resources Professional Services Account, Finance Division Professional Services Account, Business Software System Professional Services Account in an amount not to exceed $50,000. (16) April 2, 2001 Council/Agency Minutes- Page 16 (City Council) Authorized the Award of Contract to Valley Crest Landscape, Inc. for the Construction of South Beach Phase I; CC-1106 and Rejected Low Bid Submitted by Ecology Construction, Inc./Reject Southwest Engineering, Inc. Bid Protest — Approved Professional Services Contract with Firefly Studios, LLC for Commission of Artwork (600.10) —1. Upheld the bid protest of both Valley Crest and Southwest Engineering as to Ecology Construction's bid for the construction of the South Beach Phase I project; and 2. Rejected the low bid submitted by Ecology Construction, Inc. and determine that the bid is. non -responsive; and 3. Rejected Southwest Engineering's bid protest as to Valley Crest's bid; and 4. Accepted the second lowest bid submitted by Valley Crest, and waive, as minor irregularities, Valley Crest's failure to sign pages C-6 and C-8 of the Bidder's Proposal; and 5. Approved and authorized the Mayor and the City Clerk to execute the construction contract between the city and Valley Crest in the amount of $5,099,580 for the construction of South Beach Phase I; and 6. Approved and authorized the Mayor and City Clerk to execute the Professional Services Contract between the city and Firefly Studios, LLC, for Commission of Artwork — Professional Services Contract between the City of Huntington Beach and Firefly Studios, LLC for Commission of Artwork; and 7. Authorized the Director of Public Works to expend a total of $6,800,000 from Acct. #30187003.82200, which includes the contract cost of $5,099,580, estimated contingency of $765,000 (15%), construction management fees of $447,623, art element construction cost of $254,500, construction administrative services of $64,000, and $168,397 in undesignated supplemental expenditures. Submitted by the Public Works Director. Funding Source: American Trader Oil Spill Recovery Funds $3,800,000, City of Huntington Beach COPs $2,500,000, Federal TEA Grant $500,000, Total Project Funding $6,800,000. (City Council) Approved Affordable Rental Housing Agreement Containing Covenants Between the City and Bridges America Sher, L.P. for 33 Apartment Units at 16122 Sher Lane/16161 Parkside Lane (600.10) The City Council considered a communication from the Planning Department requesting approval of an Affordable Housing Agreement that applies to 33 apartment units at 16122 Sher Lane/ 16161 Parkside Lane, owned and managed by Bridges America Sher, L.P., a non-profit housing organization. Councilmember Boardman requested that this agenda item be removed from the Consent Calendar for separate discussion. Councilmember Boardman inquired about the city's requirements that all new residential projects consisting of three or more units provide ten percent of the units as affordable housing and maintain an affordable housing "bank." Planning Director Zelefsky referred to the portion of the staff report headed, B. Staff Analysis and Recommendation, reiterating the options available to the developer. He spoke relative to the existing project by Bridges America and its covenants. A motion was made by Boardman, second Dettloff to approve the Agreement Containing Covenants Affecting Real Property by and between the City of Huntington Beach and the Bridges America Sher, L.P. and authorized the Mayor and City Clerk to sign and execute (Attachment No. 1). The motion carried by the following roll call vote: AYES: Boardman, Cook, Julien Houchen, Dettloff, Bauer NOES: None ABSENT: None (Green, Garofalo out of room) (17) April 2, 2001 Council/Agency Minutes- Page 17 (City Council) Approved Amendment No. 3 to the Professional Services Contract between the City and Psomas & Associates for Interim Water Operations Manager Services (Dennis MacLain, P.E.) (600.10) The City Council considered a communication from the Public Works Department requesting Council approval of Amendment No. 3 to the. agreement with Psomas & Associates for the services provided by Dennis McLain, the Interim Water Operations Manager since May 1999. Councilmember Boardman requested that this agenda item be removed from the Consent Calendar to inquire about a certain issue relative to the recruitment process. City Administrator Silver responded that that aspect of the matter is a personnel issue not open for discussion. A motion was made by Boardman, second Dettloff to approve and authorize the Mayor and City Clerk to execute Amendment No. 3 to Agreement between the City of Huntington Beach and Psomas & Associates, Inc., to Provide Interim Water Operations Manager Services. The motion carried by the following roll call vote: AYES: Boardman, Cook, Julien Houchen, Dettloff, Bauer NOES: None ABSENT: None (Green, Garofalo out of room) (City Council) Approved New Agreement between the City and the Sunset Beach Sanitary District (SBSD) for the City's Continuing Services in the Conveyance of SBSD Wastewater (Sewage Discharge) (600.10) The City Council considered a communication from the Public Works Department requesting approval for a new agreement with the Sunset Beach Sanitary District detailing the terms and cost recovery for pumping wastewater through city owned pumping stations and sewer mains. Mayor Pro Tern Cook requested that this item be removed from the Consent Calendar for separate discussion. Mayor Pro Tern Cook referred to page E-7.10 of the staff report, inquiring about the city's process in the assessment of the SBSD's performance. Deputy City Engineer David Webb reported that the responsibility belongs to the Orange County Sanitation District. A motion was made by Cook, second Dettloff to approve and authorize the Mayor and City Clerk to execute the Agreement for the Conveyance of Wastewater between the City of Huntington Beach and Sunset Beach Sanitary District. (Attachment No. 1). The motion carried by the following roll call vote: AYES: Boardman, Cook, Julien Houchen, Dettloff, Bauer NOES: None ABSENT: None (Green, Garofalo out of room) (City Council) Approved City Administrator Employment Agreement for Ramon R. Silver (600.10) The City Council considered a communication from the Administrative Services Department requesting approval of the annual compensation adjustment as set forth in the Employment Agreement between the city and Ramon R. Silver, in his capacity as City Administrator. (18) April 2, 2001 Council/Agency Minutes- Page 18 Mayor Pro Tern Cook requested that this agenda item be removed from the Consent Calendar for separate discussion. Mayor Pro Tern Cook informed Council that for the benefit of a Public Comments speaker, she wished to receive clarification of the terms and conditions of the employment agreement relative to deferred compensation. City Administrator Silver referred to the analysis portion of the staff report in response, stating that this new proposal is not subject to past provisions, as the employment contract is renewed yearly. A motion was made by Cook, second Dettloff to approve the Agreement for Personal Services — City Administrator Ramon R. Silver and authorize the Mayor and City Clerk to execute. The motion carried by the following roll call vote: AYES: Boardman, Cook, Julien Houchen, Dettloff, Bauer NOES: None ABSENT: None (Green, Garofalo out of room) (City Council) Approved Professional Services Contract with Purkiss Rose, RSI for Landscape Architectural Services for South Beach Phase II Renovation Project — Approved Use of Revenue Bonds/Pier Funds (600.10) The City Council considered a communication from the Community Services Department requesting approval of the professional services contract between the city and Purkiss Rose, RSI for the preparation of plans and specifications for the South Beach Phase II Renovation Project. Mayor Pro Tern Cook requested that this agenda item be removed from the Consent Calendar for separate discussion to inquire about the Pier Fund Account being used as a financial source for purposes other than Pier improvements. Community Services Director Ron Hagan explained that income from the beach and pier concessions is placed into an enterprise fund to pay for debt services. Director Hagan clarified that the "beach improvement' fund is really a misnomer. In response to Council inquiries, Community Services Director Hagan stated reasons of continuity and satisfaction with the company as the rationale for continuing with the same contractor for ten years as opposed to going out to bid. A motion was made by Cook, second Dettloff to 1. Approve the Professional Services Contract between the City of Huntington Beach and Purkiss Rose, RSI for Landscape Architectural Services for the South Beach Phase II Project, and authorize the Mayor and City Clerk to execute same; and 2. Approve the utilization of $800,000, as identified in the June 19, 2000 issuance of Revenue Bonds, and $177,200 from the Pier Fund to pay for the base contract of the consultant, Purkiss Rose, RSI of $849,200, plus ten percent for contingencies of $85,000, and five percent for $43,000 for supplementals, for a total allocation not to exceed $977,200 in Account No. 30187004. The motion carried by the following roll call vote: AYES: Boardman, Cook, Julien Houchen, Dettloff, Bauer NOES: None ABSENT: None (Green, Garofalo out of room) (19) April 2, 2001 Council/Agency Minutes- Page 19 (City Council) Approved Two Budget Plus Software Agreements between the City and the AMX International, Inc. for (1) Licensing and (2) Maintenance - JD Edwards Enterprise Resource Planning System — Approved As Amended to Include Settlement Committee's Recommendation of Waiver of Insurance Liability Requirements (600.10) The City Council considered a communication from the Information Services Division of the Fire Department requesting approval of the purchase of budgeting software from AMX International, Inc. as a component of the JD Edwards Enterprise Resource Planning System implementation project. City Administrator Silver announced that this agenda item be removed from the Consent Calendar for Council to consider the Late Communication which the City Clerk had announced earlier: The communication from the City Attorney's Office is dated April 2, 2001 and titled Approval of Modified Indemnification and Insurance Requirements for Agreement between the City and AMX International, Inc, Council Meeting of April 2, 2001, Agenda Item E-15, which amends the recommended action as follows. City Attorney Hutton informed Council that the amendment adds a portion that affects an appropriate insurance liability waiver, which the Settlement Committee had not had a chance to review. On motion by Garofalo, second Dettloff. 1. Council approved and authorized the Mayor and City Clerk to execute the AMX International Budget Plus Software License Agreement for an amount not to exceed $21,500.and further approved, as amended, limited liability and indemnification obligations and waiver of professional liability insurance (per the Late Communication received from the City Attorney's Office); and 2. Approved and authorized the Mayor and City Clerk to execute the AMX International Budget Plus Software Maintenance Agreement for an amount not to exceed $3,870. Submitted by the Fire Chief/Information Systems Director. Funding Source: Capital Software Account to purchase budgeting software, maintenance, installation, and training at a cost not to exceed $35,000. No additional funding is required. On October 18, 1999, the City Council appropriated $4,555,101 for Phase I of the JD Edwards Business System implementation, including supporting contracts and agreements. Additionally, the Fiscal Year 2000/2001 budget includes $1,211,323 in carryover funds from Phase I for funding additional software products such as AMX International, Inc. Budget Plus. Phase II funding of $1,459,630 is also included in the Fiscal Year 2000/2001 budget. AYES: Green, Boardman, Julien Houchen„ Garofalo, Dettloff, Bauer NOES: None ABSENT: None (Cook out of room) (City Council) Approved Amendment No. 2 to the Agreement between the City and Kennedy/Jenks Consultants, Inc. to Update the Master Plan of Sewers and Prepare and Inflow/Infiltration Study (600.10) The City Council considered a communication from the Public Works Director requesting Council approval of Amendment No. 2 to the Contract with Kennedy/Jenks Consultants, Inc. to update the Master Plan of Sewers and prepare an Inflow/Infiltration Study. Public Works Director Robert F. Beardsley presented the PowerPoint slide report that had been announced earlier by the City Clerk as a Late Communication. The Communication is dated April 2, 2001 and titled Master Plan of Sewers Update. (20) April 2, 2001 Council/Agency Minutes- Page 20 Director Beardsley referred to the recent media coverage relative to this issue. He spoke in reference to slide No. 6 of the PowerPoint report on the timetable for the proposed imposition of the sewer service charge. A motion was made by Garofalo, second Green to 1. Approve and authorize the Mayor and the City Clerk to execute Amendment No. 2 to Agreement between the City of Huntington Beach and Kennedy%Jenks Consultants, Inc. for a Master Plan of Sewers for updating the Sewer Master Plan and preparation of an Inflow/Infiltration Study in the amount of $285,000; and 2. Authorize the Director of Public Works to expend a total of $327,000, which includes the Amendment No. 2 fee of $285,000, estimated contingency of $28,000 and $14,000 in supplemental expenditures. The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None (City Council) Adopted Resolution No. 2001-12 Approving and Adopting Certain Report — Water Master Plan City of Huntington Beach, December 2000 — Approved Introduction of Ordinance No. 3496 — Water Rates & Fees — Adopted Resolution No. 2001-13 — Identifying Specific Water Projects — Including Use of Water Surcharge Funding for the Springdale Reservoir Project (1000.20) The City Council considered a communication.from the Public Works Department requesting approval of: (1.) a resolution to adopt the December 2000 Water Master Plan; (2.) an ordinance to amend the Huntington Beach Municipal Code Section 14.12 to provide that Capital Facilities Charge monies and Capital Surcharge monies shall be used for water projects which are consistent with goals and objectives of the December 2000 Water Master Plan but which projects are specifically identified in a resolution, and any amendment to same, adopted by the City Council; and (3.) a resolution for adoption, which identifies the specific water projects from the December 2000 Water Master Plan upon which Capital Facilities Charge monies and Capital Surcharge monies can be spent. A proposal to authorize the use of water surcharge funding for the Springdale Reservoir project as it is within the goals and objectives of the Master Plan is also transmitted. Principal Civil Engineer Tom Rulla reported on the PowerPoint slide presentation announced earlier by the City Clerk as a Late Communication. The communication is dated April 2, 2001 and titled Water Master Plan Update — December 2000. Councilmember Garofalo noted in slide No. 8 of the PowerPoint report that there was a 40% reduction in the projected growth in water gallon usage. Staff responded that what played a factor in the decrease of water usage during peak hours are the conservation measures implemented, such as low -flush toilets. Councilmember Garofalo inquired regarding other issues related to budget deficits and projected costs. The City Clerk had earlier announced a second Late Communication that pertains to this agenda item, which was submitted by the City Attorney's Office. The communication is a copy of a legal opinion dated April 2, 2001 and titled Reconsideration of Springdale Reservoir - Your (21) April 2, 2001 Council/Agency Minutes- Page 21 Letter Dated March 5, 2001, written to Mr. Chuck Scheid in response to his inquiries regarding the city's two funding sources for water infrastructure improvements. In relation to budgetary matters City Administrator Silver announced that the recommendations of the Infrastructure Planning Committee (IPC) will be returning to Council on April 16, 2001 for approval. Interim Water Operations Manager Dennis E. MacLain reported on the Orange County Sanitation District (OCSD) water well program. He informed Council that the city is a participant involved in three water well projects, stating the city's position to support the Cypress basin on a fair -share of the cost basis. Interim Water Operations Manager MacLain spoke relative to saltwater intrusion issues. Councilmember Bauer expressed his concerns regarding the foregoing, referring to the condition of the depleted aquifer. Mr. Maclain that there is a potential ability for the city to extract ground water for the city. Councilmember Bauer spoke regarding other associated issues, some of which, according to Interim Water Operations Manager MacLain, involve the Los Alisos Water District and not the Orange County Sanitation District. Councilmember Bauer requested an update of the MTBE contamination, mentioning that this gasoline additive has contaminated 50 to 60 sites in Huntington Beach. City Administrator Silver informed Council that staff will schedule a study session to address the issues mentioned. In response to Councilmember Dettloff's inquiry, Mr. MacLain reported on the benefits of building the Southeast Huntington Beach Reservoir, stating that district storage would be desirable and beneficial to the Southeast neighborhood. Interim Water Operations Manger MacLain spoke regarding the advantages of constructing the Springdale Reservoir; how there would be no need to build a costly booster pump. Councilmember Dettloff initiated discussion of "pay-as-you-go" financing. Councilmember Boardman questioned if there is a need to set a policy regarding overfunded enterprise accounts. Councilmember Boardman requested consideration of a mechanism whereby fees could be lowered earlier than 2006 based on the assumption that the money can only be used for water charges. Councilmember Garofalo suggested that Councilmember Boardman come forward with a resolution stating that if the goals for the Water Master Plan•are achieved before 2006 and if the reserve exceeds the dollars needed, the balance of the funds can be returned to the customers. City Administrator Silver reiterated that this matter can be addressed at the Council meeting of April 16, 2001 when the recommendations of the Infrastructure Planning Committee are scheduled to be discussed for approval. A motion was made by Garofalo, second Green to 1. Adopt Resolution No. 2001-12, adopting the December 2000 Water Master Plan — "A Resolution of the City Council of the City of (22) April 2, 2001 Council/Agency Minutes- Page 22 Huntington Beach Approving and Adopting that Certain Report Entitled `Water Master Plan' City of Huntington Beach, December 2000, ° and 2. Approve following a reading by title, introduction of Ordinance No. 3496, which would amend HBMC Sections 14.12.010(d) and 14.12.040, in order to provide that Capital Facilities Charge monies and Capital Surcharge monies shall be used for water projects which are consistent with goals and objectives of the December 2000 Water Master Plan but which projects are specifically identified in a resolution, and any amendment to same, adopted by the City Council — "An Ordinance of the City of Huntington Beach Amending Chapter 14.12 of the Huntington Beach Municipal Code by Amending Sections 14.12.010 and 14.12.040 Pertaining to Water Fees and Rates;" and 3. Adopt Resolution No. 2001-13 — "A Resolution of the City Council of the City of Huntington Beach Identifying the Specific Water Projects from the Approved December 2000 Water Master Plan on which Capital Facilities Charge Monies and Capital Surcharge Monies can be Expended," and 4. Authorize the use of water surcharge funding for the Springdale Reservoir project as it is within the goals and objectives of the Master Plan. The motion carried by the following roll call vote: AYES: -Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None (City Council) Approved Additional Funding for Expanding the Scope of Work for Renovation of City Hall First Floor to Include Asbestos Removal (320.45) The City Council considered a communication received from the Fire Chief and the Public Works Director requesting Council approval of additional funds for expanding the scope of work for the renovation of the first floor of City Hall to include the removal of asbestos. City Administrator Silver presented an oral report, announcing that the PowerPoint slide report is waived due to the lateness of the hour. He stated the need for the abatement of asbestos to summarize the purpose of the RCA (Request for Council Action). City Administrator Silver referred to the chart on page F-3.3 for a breakdown of costs. Councilmember Bauer informed Council that he is in support of the request, asking assurance that protocol is in place that there is a check off list on work performed. City Administrator Silver answered in the affirmative. A motion was made by Garofalo, second Cook to approve an appropriation of $990,000 from the City's Unappropriated General Fund balance to the City Hall Rehabilitation Account No. 30187511.82200 to cover the cost of removing asbestos from the first floor of City Hall. The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None (City Council) Adopted Ordinance No. 3493 Modifying Chapter 5.50 Pertaining to Regulation of Mobile Vendors and Repealing Chapter 8.08 Relating to Food Vending Vehicles (640.10) The City Council considered adoption of Ordinance No. 3493 relative to mobile vendors and food vending vehicles. (23) April 2, 2001 Council/Agency Minutes- Page 23 After the City Clerk read by title, a motion was made by Garofalo, second Green to adopt Ordinance No. 3493 — "An Ordinance of the City of Huntington Beach Amending Chapter 5.50 of the Huntington Beach Municipal Code Relating to Mobile Vending and Deleting Chapter 8.08 Relating to Food Vending Vehicles in its Entirety." The motion carried by the following roll call vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None (City Council) Approved Introduction of Ordinance No. 3495 Amending Chapter 10.12 of the Huntington Beach Municipal Code Relating to Speed Limits on Various City Streets (640.10) The City Council considered approval of the introduction of Ordinance No. 3495 relating to speed limits. As listed on the staff report; the recommended changes include decreased speed limits on 2 city streets; increased speed limits on 7 city streets; and reaffirmed/established speed limits on 10 city streets. After the City Clerk read by title, a motion was made by Garofalo, second Green to approve introduction of Ordinance No. 3495 — "An Ordinance of the City of Huntington Beach Amending Chapter 10.12 of the Huntington Beach Municipal Code Relating to Speed Limits." The motion carried by the following roll call vote'"' AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None (City Council) Request Made by Councilmember Dave Garofalo to Meet with Landowners of Shopping Center at Brookhurst Street and Adams Avenue Re: Condition of Property (420.20) Councilmember Garofalo requested a meeting with the landowners of the shopping center at Brookhurst Street and Adams Avenue regarding the condition of the property. Councilmember Dettloff announced that the Department of Public Works staff had been complimented by a member of an engineering firm at a meeting in San Francisco. (24) April 2, 2001 Council/Agency Minutes- Page 24 Adjournment — City Council/Redevelopment Agency Mayor Julien Houchen adjourned the regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach at 10:35 p.m. to Monday, April 16, 2001, at 5:00 p.m., in Room B-8, Civic Center, 2000 Main Street, Huntington Beach_ California. City Clerk and ex-officio ClerkAf the City Council of the City of Huntington Beach and Clerk of the Redevelopment Agency of the City of Huntington Beach, California ATTEST: C� Ow.,4/av- 1 NAQ4m�,4w,,4,. City Clerk -Clerk ayor-Chairman