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HomeMy WebLinkAbout2001-08-13Minutes City Council/Redevelopment Agency City of Huntington Beach 4:00 P.M. - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 Monday, August 13, 2001 A videotape of the 4:00 p.m. meeting is on file in the Office of the City Clerk. Call to Order Mayor' Pro Tern Cook called the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 4:00 p.m. in the Council Chambers. . City Council/Redevelopment Agency Roll Call Present: Boardman, Cook, Garofalo, Dettloff, Bauer Absent: Green, Julien Houchen Pledge of Allegiance — Led by Mayor Pro Tern Cook (City Council) Approved Request for Permission by Mayor Pam Julien Houchen to be Absent (120.40) The City Council considered a communication from Mayor Pam Julien Houchen requesting permission to be absent from the City Council adjourned regular meeting of August 13, 2001. A motion was made by Boardman, second Dettloff to approve said request. The motion carried by the following roll call vote: AYES: Boardman, Cook, Garofalo, Dettloff, Bauer NOES: None ABSENT: Green, Julien Houchen (City Council) Approved Determination of Need to Take Immediate Action on Pending Litigation Item to be Added to the August 13, 2001 Closed Session Pursuant to Government Code § 54954.2(b)(2) In Re: AES Huntington Beach Generating Station Retool Project, AQMD Title V Permit Revision of May 30, 2001; before the California Energy Commission, Docket No.00-AFC-13 (120.80) City Attorney Gail Hutton reported from a Late Communication submitted by her office, dated August 13, 2001 and titled Motion to Agendize after the Posting of the Agenda City Council Meeting Pending Litigation August 13, 2001, Pursuant to Govemment Code § 54954.2(b)(2). (2) August 13, 2001 - Council/Agency Minutes - Page 2 A motion was made by Boardman, second Dettloff to determine that there is an immediate need to take action and that the need for action came to the attention of the City Council subsequent to the agenda being posted, in that the city has received information from Attorney Malcom Weiss of Jeffer, Mangels, Butler & Marmaro, such information must be timely acted upon relating to a potential settlement in the Matter of AES Huntington Beach Generating Station Retool Project; AQMD Title V Permit Revision of May 30, 2001; Before the California Energy Commission, Docket No. 00-AFC-13. The motion carried by the following roll call vote: AYES: Boardman, Cook, Garofalo, Dettloff, Bauer NOES: None ABSENT: Green, Julien Houchen (City Council) Approved Motion to Add to the Closed Session Pursuant to Government Code § 54956.9(a) Pending Litigation In Re: AES Huntington Beach Generating Station Retool Project, AQMD Title V Permit Revision of May 30, 2001 (120,80) A motion was, made by Garofalo, second Dettloff to add to the August 13, 2001 Closed Session, pending litigation pursuant to Government Code § 54956.9(a). The title of the litigation is In the Matter of AES Huntington Beach Generating Station Retool Project; AQMD Title V Permit Revision of May 30, 2001; Before the California Energy Commission, Docket No. 00-AFC-13. The motion carried by the following roll call vote: AYES: Boardman, Cook, Garofalo, Dettloff, Bauer NOES: None ABSENT: Green, Julien Houchen Public Comments Regarding Closed Session Item Eileen Murphy inquired about the amount of hot water that the AES Huntington Beach LLC power plant is discharging into the ocean. Ms. Murphy stated that the Orange County Sanitation District is running a million dollar survey, and is requesting this information. 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, Garofalo, Dettloff, Bauer NOES: None ABSENT: Green, Julien Houchen 1. (Redevelopment Agency) Closed Session —Pursuant to Government Code Section 54956.8 to give instructions to the Agency's negotiators, Ray Silver, David Biggs and Gus Duran; regarding negotiations with John Givens and/or Shaul Kuba, CIM Group, LLC; concerning the sale and/or lease of the property located at Blocks 104 & 105; bounded by PCH, Main Street, Walnut and 6"' Street, to be set forth in a Disposition & Development Agreement (DDA) Implementation Agreement or Amendment. Instruction will concern: Both Price and Terms of Payment. Subject: Real Property Negotiation Blocks 104 & 105, An Area Bounded by PCH, Walnut, Main & 6t' Street in the City of Huntington Beach. (400.50) (3) August 13, 2001 - Council/Agency Minutes - Page 3 2. (Redevelopment Agency) Closed Session — Pursuant to Government Code Section 54956.8 to give instruction to the Agency's negotiators, David C. Biggs and Gus Duran, regarding negotiations with Ron Taylor, Legal Counsel for the Lu Corporation, and Doug Fisher, concerning the intent to sell the property located on the northeast corner of Cypress Avenue and Elm Street, Parcel No. 165-364-24. Per Government Code Section 54954.5(b). Instruction will concern: Price. Subject: Intent to Sell Property on the Northeast Corner of Cypress Avenue and Elm Street; Parcel No. 165-364-24. (400.50) 3. (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 Ionic Construction Company v. City of Huntington Beach, et all., Orange County Superior Court Case No. OOCCO3470. Subject: Ionic Construction Company v City of Huntington Beach. (120.80) 4. (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 PLC v. City of Huntington Beach, et al.; Orange County Superior Court Case No. 01 CC05117. Subject: PLC v. City of Huntington Beach, et al. (120.80) 5. (City Council) Closed Session — Pursuant to Government Code Section 54956.9(a) pending litigation. The title of the litigation is In the Matter of AES Huntington Beach Generating Station Retool Project; AQMD Title V Permit Revision of May 30, 2001; Before the California Energy Commission, Docket No. 00-AFC-13. (120.80) Reconvened City Council/Redevelopment Agency Meeting — 6:00 P.M. City Clerk Announced Late Communications Pursuant to the Brown Act (Open Meetings Act) the City Clerk announced Late Communications received by her office which pertain to items on the agenda: Communication dated June 26, 2001 from the Police Department transmitting D.A.R.E Unit Costs and Statistics. Communication titled D.A.R.E. Unit Costs and Statistics. Communication from Joyce Riddell, President, Chamber of Commerce dated August 13, 2001 regarding a request to meet and discuss the proposed Comprehensive Fee Schedule. Communication dated August 8, 2001 from Doris E. Reid requesting that the Episcopal Service Alliance remain in the Community Development Block Grant Allocation (CDBG). Communication dated August 9, 2001 from Kirk Hayward requesting that the Episcopal Service Alliance remain in the Community Development Block Grant Allocation (CDBG). Communication dated August 13, 2001 from the Economic Development Department transmitting a matrix showing the Community Development Block Grant (CDBG) recommendations made by the Citizens Participation Advisory Board (CPAB) and Staff for the 2001/02 funding year. Communication titled Late Communication — Item D-2. Communication from Sandy McNally in support of the Citizen Participation Advisory Board recommendations. (4) August 13, 2001 - Council/Agency Minutes - Page 4 Documents submitted by Administration to the City Clerk's Office on August 13, 2001 regarding the Water Service Agreement and Land Purchase Option Agreement between the City and AES Huntington Beach, LI_C. Documents titled Water Service Agreement between the City of Huntington Beach and AES Huntington Beach, LLC and Option Agreement and Escrow Instructions. Communication dated August 10, 2001 from Administration transmitting the "draft' results from the Public Opinion Survey re: the City's Infrastructure Needs. Communication titled Results from the Public Opinion Survey Regarding the City's Infrastructure Needs. Slide show presentation submitted by Administration to the City Clerk's Office on August 13, 2001 prepared by Lawrence Research. Slide show presentation titled A Survey of Huntington Beach High Probability Voters. Public Comments Jim Martin stated the opinion that city does not have revenue because there is lack of sales tax revenue and not because of potential property tax loss. He suggested that the city investigate land use for commercial purposes. Mr. Martin spoke in opposition to the 32-gallon maximum capacity trash receptacles requirement imposed by the Rainbow Disposal Company. Gerald Chapman inquired regarding the budget, stating that he was under the impression that the Huntington Central Park (HCP) Sports Complex was self -funding. Dr. Chapman questioned what budget cuts will be made in order to fund the HCP. (City Council) Study Session - Presentation by the City Administrator of the Proposed 2001/02 -- 2002103 City Budget and Reports on General Fund Re: (1) Five Year Revenue and Expenditure Projections Summary; (2) Alternative Revenue Enhancements; and (3) Alternative Expenditure Reductions (320.30) The City Council considered a communication from the Administrative Services Department of a report titled The Huntington Beach Preliminary Budget — Messages and Summaries — Fiscal Years 2001-2002/2002-2003 which is included in the agenda packet. Also available for public review in the City Clerk's Office, Central Library and Annexes is a 750-page Budget Accounting Detail. City Administrator Ray Silver presented a PowerPoint report titled Proposed Budget 2001103 Fiscal Years - Overview. City Administrator Silver referred to a wall diagram and a PowerPoint Slide of a table titled 5 Year Revenue -and Expenditure Projections. He differentiated between these two versions and an earlier version titled General Fund Five Year Revenue and Expenditure Projections Summary, which is included in the agenda packet as part of a communication from the Director of Administrative Services dated August 7, 2001 and titled 5-Year Revenue and Expenditure Projections. City Administrator Silver informed Council that the purpose of presenting this information in a new format is to provide an update, which includes separating out the reserves in terms of the projects. City Administrator Silver spoke regarding Slide No. 5 titled 5 Year General Fund Revenue and Expenditure Projections Assumptions and the city's intent to ensure fiscal responsibility. (5) August 13, 2001 - Council/Agency Minutes - rage 5 Councilmember Boardman asked questions about the $8 million dollar reduction on which the Fiscal Year 2001 beginning fund balance is based. Councilmember Dettloff ascertained that all available projects coming into the city within the next five years are factored into the projections. City Administrator Silver reported on dollar amount assumptions in the event that the city loses the Howard .Jarvis property tax lawsuit. He referred to the aforementioned Slide Nos. 4 and 5 of the PowerPoint presentation. Councilmember Boardman inquired about Slide No. 7 and the drop in total city revenue. In response, City Administrator Silver made reference to Slide Nos. 58 and 59 titled What's Changed in the Total City Budget from FY 2000101 to 2001102. City Administrator Silver informed Council that 15 cents of every dollar of property tax goes to Huntington Beach, referring to Slide No. 11 titled Sales Taxes -- Huntington Beach's Portion of $1.00. He stated that the city is "sales tax -poor," as well as being low in bed tax. City Administrator Silver responded to Councilmember Bauer's inquiry regarding sales tax revenue, by mentioning several of the city's projects, including Seacliff Village, the Peninsula Project, and the Home Depot relocation. A discussion of Transient Occupancy Taxes (TOT) followed. In response to Councilmember Bauer's inquiry, City Administrator Silver requested Administrative Services Director Clay Martin to report on Slide Nos. 16 and 17 reflecting the pie chart on State and Federal income taxes. Administrative Services Martin stated that the information is derived from the League of California Cities. City Administrator Silver announced that staff will return to Council at the August 27, 2001 meeting with dollar figures after they are developed. City Administrator Silver reported that the city has a very aggressive grants program and reported on the dollar amounts pursued. City Administrator Silver informed Council that the greatest amount of revenue collected comes from permit fees and recreational classes, along with FireMed. City Administrator Silver referred to Slide Nos. 22 and 23 titled Taxpayer Value, stating that each taxpayer receives $119.46 per month in city services. He clarified for Councilmember Boardman that this figure represents the amount of $35.99. per month that each citizen, and not each household, pays in taxes in order to receive a value of $83.47 per month in city services. Using PowerPoint Slide No. 27, City Administrator outlined Administrative Services Director Clay Martin's memorandum dated August 7, 2001 and titled Alternative Revenue Enhancements to the General Fund, which is included in the agenda packet. He referred to the imposition of the utility user's tax on power generating stations as a potential ballot measure. City Administrator Silver returned to the wall diagrams for his presentation on the reductions proposed in the departments' budgets. He set forth alternative budget reductions in various city departments, reporting from the Administrative Services Director's memorandum titled Alternative Expenditure Reductions in the General Fund and dated August 8, 2001, which is included in the agenda packet. (6) August 13, 2001 - Council/Agency Minutes - Page 6 Included with the aforementioned memorandum are communications from the Police Department regarding the DARE Program and the Community Liaison Team Lieutenant position; and a report from the Chief/information Systems Director regarding the proposed personnel changes in the Fiscal Year 2001-2003 budgets. Police Chief Ronald Lowenberg referred to the Late Communication announced earlier by the City Cleric. The communication is dated June 26, 2001 and titled D.A.R.E. Unit Costs and Statistics. Upon City Administrator Silver's request, Police Chief Ronald Lowenberg explained the importance of the functions of the Crime and Analysis Unit. It was also mentioned that plans are being implemented to transfer Police Department personnel in order to reduce overtime costs. In reference to the Community Services Department budget cuts, City Administrator Silver announced that reductions will be in part-time, and not full-time Marine Safety personnel. City Administrator Silver stated that Building and Safety counter assistance turnaround times will be affected and that reductions in the Advanced Planning Division and contract employees will occur. City Administrator Silver announced that the city received $4 million in Proposition 13 and grant funds, and is applying for other grants. Public Works Director Robert F. Beardsley explained plans in his department regarding temporary personnel. He spoke about the side -by -side street sweeping and managed competition programs. Mayor Pro Tem Cook asked staff to quantify the number of permanent and part-time positions being eliminated. In response, City Administrator Silver directed Administrative Services Director Martin to return with a report, which will include information on the net full-time equivalency, per Councilmember Garofalo's request. City Administrator Silver returned to a wall chart version of Slide No. 49 titled Expenditure Budget by Department. He pointed out each department and the amount by which they are funded by General Fund monies. City Administrator Silver stated that the Public Works Department has the largest overall money expenditures, while the Police Department has the largest percentage of General Fund expenditures. He informed Council that the Planning Department is entirely funded with General Funds. From the aforementioned charts, City Administrator Silver defined restricted money received by the departments, such as the water fund and Community Development Block Grant (CDBG) funds. He announced that he will return at the August 27, 2001 Council budget review with information as to which are General Funds and which are restricted funds. City Administrator Silver reviewed Slide Nos. 58 and 59 titled What's Changed in the Total City Budget from FY 2000101 to 2001102? He emphasized which categories are heavily funded by grants, in response to Councilmember Boardman's inquiry. At this point City Administrator Silver explained the importance of customer service training in view of limited revenue sources. (7) August 13, 2001 - Council/Agency Minutes - Page 7 Councilmember Boardman inquired as to the reason for the increase in Economic Development expenditures, referring to Slide No. 60 titled What's Changed in the Total City Budget from FY 2000101 to 2001102? City Administrator Silver responded that a transfer of Redevelopment Agency funds took place to pay back debt to the General Funds. City Administrator Silver stated that the city, in comparison to others, has made the best transition into the JD Edwards Enterprise software program. City Administrator Silver announced that all downtown sewers have been rehabilitated and slip - lined; that no sewage is going into the ocean. He referred to Slide No. 62 titled Strategic Priorities and Slide No. 67 titled Infrastructure and Transportation. City Administrator Silver informed Council that 22 cities have urban run off, but that Huntington Beach is not among them. He announced that there have been fewer postings and no ocean water closures during the year. Discussion was held regarding the tremendous improvement on the Beach Boulevard landscape medians, as outlined in Slide No. 67 mentioned above. City Administrator Silver announced that no General Fund monies were used to operate the Art Center, which he stated is a major accomplishment. Councilmember Boardman stated that the first year of the side -by -side street sweeping comparison has been completed, inquiring as to when program results will be available. Assistant City Administrator William Workman responded that it will return to the committee within 60 days. Ambulance service response times, fiscal integrity and the Community Services Department's proposed Mastercard programs were discussed next as a part of the presentation on Slide No. 61 titled What are the City's Strategic Priorities? City Administrator Silver spoke regarding the micro turbine project, stating that Huntington Beach is one of four cities that UCI is partnering with to get technology in place. Councilmember Boardman asked for a definition of the second bulleted item on Slide No. 71. City Administrator Silver responded that staff will return at the August 27, 2001 Council meeting to clarify the meaning of a "streamlined process for community support." Councilmember Boardman expressed her concern that the goals set forth here are laudable, but not measurable. She inquired, for instance, if the goal relative to code enforcement activities is to decrease the amount of time the city would spend in solving neighborhood problems. Assistant City Administrator Workman responded, speaking relative to high level goals and priorities. He stated that determining priorities is the tactical and measurable objective towards which the city is headed next. City Administrator Silver invited Council input on the proceedings. He stated that this study session serves as a foundation, but that September 24 is available for another study session should Council wish to continue the budget review. (8) August 13, 2001 - Council/Agency Minutes - Page 8 Councilmember Bauer made a suggestion that the Sands publication be utilized to explain the annual budget report, elaborating that not everyone watches the Council meetings on Channel H BTV-3. Councilmember Garofalo thanked City Administrator Silver for what he considers to be an extremely comprehensive effort. Councilmember Garofalo expressed his concerns in reference to Slide No. 22 titled Taxpayer Value. He stated the opinion that businesses pay a disproportionate share for city services. Councilmember Garofalo suggested that the city look towards further reductions, prioritizing them in several phases. Discussion ensued as to the various methods of budget preparation and increasing revenue, with Councilmember Dettloff recommending that if one of the proposed projects drops out or has a major delay, that staff return to Council with a budget report. City Administrator Silver responded that Administrative Services Director Martin has gone back to preparing monthly budget reports, City Administrator Silver announced that the June 30, 2001 budget report is completed, and stated his intention to provide Council with a semi-annual report as well. City Administrator Silver spoke regarding including Economic Development Director Biggs in budget meetings to discuss and look at projects such as the 31 Acres (Pacific City) project more closely. Mayor Pro Tem Cook inquired how often meetings are held with department heads, to which City Administrator Silver responded that he receives monthly reports. Mayor Pro Tern Cook suggested looking into the possibility of providing incentives for departments to cut their respective budgets. City Administrator Silver concurred, stating that towards this end, he is including looking into Assistant City Administrator Workman's programs in the City of Corona for examples of base budgets. Councilmember Boardman expressed a concern with the staff report section, B-3 relative to the proposed revenue enhancement on Community Development Block Grant (CDBG) funding. City Administrator Silver made reference to the chart on page D-2.95 of the staff report on the CDBG Public Hearing, to be held later on that evening. He further requested Economic Development Director Biggs to report on the matter. Community Services Director Hagan responded to Councilmember Boardman's inquiry regarding the proposed parking meter fee increases. Councilmember Boardman stated that one of the ways to address the budget shortfall is to have the new sports concession at the Central Park Sports Complex become self -funding. City Administrator Silver responded that this will be presented at the August 27, 2001 Council meeting. Councilmember Boardman stated that she will be against supporting any option to convert Dwight's concession at the beach into a restaurant. Mayor Pro Tern Cook stated that to do so would raise a Measure C implication since it will take away beach parking. Councilmember Boardman expressed opposition to increased advertising such as billboards on the pier with banner towing aircraft already a problem on -the beach. (9) August 13, 2001 - Council/Agency Minutes - Page 9 Councilmember Boardman stated that she is in favor of imposing the city's utility tax on the AES power plant, to which City Administrator Silver responded that it will be a ballot measure in March 2002. Other items for which Councilmember Boardman stated approval included levying the charge for water at the Equestrian Center, and the proposed sewer fee. Councilmember Garofalo concurred with Councilmember Boardman that the item regarding the Huntington Center Park (HCP) Sports Complex as excellent for review. Discussion followed regarding items addressed in the memorandum from the Administrative Services Director titled Alternative Expenditure Reductions in the General Fund. Community Services Director Hagan responded to Council questions regarding items listed in the above -mentioned report, including the possibility of maintaining the Newland House with volunteer workers. Councilmember Boardman informed Council that she was not in favor of closing the clubhouses, reiterating from the report that they generate revenue that exceeds the program costs. Councilmember Boardman remarked on reductions in contract services, questioning whether Lambert Park needs to be mowed weekly. Public Works Director Robert F. Beardsley responded that it would be disadvantageous to reduce mowing schedule services, informing Council that he will provide a communication to detail other ways to address the issue. Councilmember Bauer inquired as to whether the franchise fee charged to Time Warner is renewable. Administrative Services Director Martin reported, stating that it is set up in perpetuity. City Administrator Silver stated that staff will return with a report on the city's flexibility regarding franchise fees. Councilmember Bauer recommended a concept regarding how some cities have solicited income from other entities. He requested staff to provide a list of cities with 503(c) foundations, stating that he will conduct further investigation into the matter. Library Services Director Ron Hayden reported from Page B-4.92 of the staff report in answer to inquiries regarding the closure of the library branches and elimination of Sunday operating hours, both of which were proposed as alternative expenditure reductions. Library Services Director Hayden informed Council that he will revisit, conduct a full analysis, and provide a written response. Administrative Services Director Martin spoke regarding non -departmental expenditure reductions and "Superfund" provisions, reporting from Page B-4.2 of his memorandum. Community Services Director Hagan responded to Council inquiries regarding Percy Park and the rental of motor homes. He spoke regarding RVs (recreational vehicles), stating that he can study the concept of creating a program based on the growing revenue for hospitality -type services. Mayor Pro Tern Cook recommended looking into making the Huntington Beach Conference and Visitors Bureau self-supporting. (10) August 13, 2001 - Council/Agency Minutes - Page 10 (City Council) Public Hearing -Approved Adoption of Revisions to the City's Comprehensive Fee Schedule — Adopted Resolution No. 2001-51 (340.20) Mayor Pro Tern Cook announced that this was the time scheduled to consider the following public hearing on revisions to the city's comprehensive fee schedule for the Building, Fire, Planning and Public Works Departments: Fees include Building and Planning Department Fees related to plan checking, inspections, permits, and various administrative reviews. Fire Department fees include false alarms, Hazmat- related, inspection, cleanup fees, and oil -related fees. Public Works Department fees involve plan checks and inspections, map checks, and various permits, reviews, and repair services. All proposed revisions are cost recovery in nature. Legal notice as provided to the City Clerk's Office by staff had been published and posted. The City Clerk restated for the record the following Late Communication that pertains to this public hearing: - Communication from Joyce Riddell, President, Chamber of Commerce dated August 13, 2001 regarding a request to meet and discuss the proposed Comprehensive Fee Schedule. City Administrator Silver reported on the foregoing Late Communication. He commended staff, giving special recognition to the Administrative Services Department for the successful installation of the JD Edwards Program. Administrative Services Director Martin introduced Director of Finance Dan Villella who presented an oral report informing Council that the user fees are charged to individuals and entities that require services by the city. Finance Director Villella reiterated from the Analysis portion of the staff report titled Request for Council Action (RCA) relative cost recovery. He informed Council that the costs of providing services have increased while the fees have not, incrementally resulting in increased tax subsidies for fee -based services. Director Villella announced that it has been in excess of three years since the last revision and stated that a fee adjustment study of all departments will be completed within the next fiscal year. Towards this end, he requested that all department heads review the fees that are charged by their departments. City Administrator Silver reiterated from page D-1.2 of the staff report that this comprehensive fee schedule relates to cost recovery fee adjustments that are not in conjunction with the Management Services Institute (MSI) comprehensive user fee program. . Councilmember Garofalo addressed Finance Director Villella's comments, stating his preference for a continuance of the public hearing until all departments are represented. Councilmember Garofalo stated that it is not apparent to him that there is equity in the document, since it does not appear to be formula -based. Councilmember Boardman received clarification that the estimated $435,000 in revenue approximated on Page D-1.2 of the RCA does not include revenue from enterprise funds. (11) August 13, 2001 - Council/Agency Minutes - Page 11 Councilmember Boardman referred to RCA attachment Pages D-1.11 and D-1.12, requesting the reason for the decrease in certain fees listed. Building & Safety Director Ross Cranmer responded that the calculation is based on the fewer number of hours required for allocation to electrical permit inspection services. Planning Director Howard Zelefsky spoke regarding cost recovery of revised fees for Plan Checkers, per Page D-1.17 of the staff report. He stated that the increase in cost is due to a higher level of employees performing the job of plan checks. Fire Chief/information Systems Director Michael Dolder reported on the fees cost analysis of methane inspections, as listed on Page D-1.19 of the staff report. Public Works Director Robert F. Beardsley addressed Council regarding Page D-1.23 of the staff report on the recommended fees that require ordinance changes. Public Works Director Beardsley explained the water connection fees. Mayor Pro Tem Cook declared the public hearing open. There being no persons present to speak on the matter and there being no protests filed, either written or oral, the hearing was closed by Mayor Pro Tern Cook. Councilmember Dettloff stated the opinion that a nexus exists between the fees; that the methodology is fair. A motion was made by Dettloff, second Bauer to adopt Resolution No. 2001-51 — "A Resolution of the City Council of the City of Huntington Beach Amending Resolution No. 5159, As Amended, Relating to the City's Comprehensive Fee Schedule (Supplemental Fee Resolution No. 81)." The motion carried by the following roll call vote: AYES: Boardman, Cook, Dettloff, Bauer NOES: Garofalo ABSENT: Green, Julien Houchen (City Council) Public Hearing - Approved the Citizen Participation Advisory Board (CPAB) Recommendations for the 2001/2002 Action Plan for the Community Development Block Grant (CDBG)/Home Programs (340.70) Mayor Pro Tern Cook announced that this was the time scheduled to consider the following public hearing: To All Interested Agencies, Groups and Persons: Public comments are encouraged and welcome on Monday, August 13, 2001, at this City Council Public Hearing on the 2001-2002 Action Plan in accordance with the City's Consolidated Plan (CP) as required by the U.S. Department of Housing and Urban Development (HUD) for receipt of $1,748,000 in Community Development Block Grant (CDBG) funds, and $756,000 in HOME Investment Partnership (HOME) funds. The 2001-2002 Action Plan proposes the CDBG and HOME budgets from October 1, 2001 to September 30, 2002, a twelve-month period. The City followed its Citizen Participation Plan. The Citizen Participation Advisory Board (CPAB) held two public hearings on community needs and held subsequent monthly public meetings. The (12) August 13, 2001 - Council/Agency Minutes - Page 12 public may review and comment on the draft 2001-2002 Action Plan in the Department of Economic Development or at the Central Library. The public comment period began July 2 and ended August 2, 2001. Public comments received during this time will be attached to the Action Plan and sent to HUD. CDBG REVENUE: AMOUNT CDBG 2001/2002 Entitlement Grant $1,748,000 CDBG PROPOSED ACTIVITIES: City Gym & Pool Sec. 108 Loan Payment (est.) $260,461 Administration 308,620 Fair Housing Council 40,980 Code Enforcement Program 143,297 Community Job Center 36,692 Coastal One Stop 20,000 Park Improvements 50,000 Sewer Improvements 347,000 Storm Drain Improvements 71,148 Oak View Skateboard Park 75,000 Housing Rehabilitation Loan Program— Administration 132,602 Adult Day Services 5,000 Boys & Girls Club 5,000 Community Service Programs 31,000 HB Community Clinic 15,000 Oak View Community Center 30,000 Oak View Branch Library Literacy Program 29,000 Project Self -Sufficiency 70,000 Seniors Outreach Program 77,000 TOTAL: $1, 748, 000 HOME Investment Partnership In an effort to expand and preserve its existing affordable housing stock, Huntington Beach has worked with Community Housing Development Organizations (CHDOs) to acquire multifamily rental properties. These buildings are rehabilitated and then are made available to persons below 60% of Orange County median income for a minimum of 30 years. The CHDO must enter into an agreement with the City that outlines all of the affordability requirements, property maintenance standards, and long-term monitoring requirements that are required by HOME regulations. The following activities are proposed for the 2001-2002 HOME program: HOME REVENUE: AMOUNT HOME 2001/2002 Entitlement Grant $ 756,000 HOME PROPOSED ACTIVITIES: Administration $76,500 Acquisition $680,400 The Consolidated Plan sets local policies and priorities for the development of a viable urban community by providing decent housing and a suitable living environment and expanding economic opportunities principally for low- and moderate -income persons. The city intends to extend and (13) August 13, 2001 - Council/Agency Minutes - Page 13 strengthen partnerships among all levels of government and the private sector, including for -profit and non-profit organizations in order to provide for: the production and operation of affordable housing; a suitable living environment improving the safety and livability of neighborhoods; assistance to homeless persons and persons at risk of becoming homeless to obtain appropriate housing, without discrimination on the basis of race, color, religion, sex, national origin, familial status, or disability; and expand economic opportunities including job creation and retention. A draft copy of the action plan titled Community Development Block Grant (CDBG) Action Plan 2001-2002 and a PowerPoint presentation titled Approval of 2001/2002 Action Plan for CDBG and HOME Programs is included in the agenda packet. Communication from Jeanne Hayward dated August 9, 2001 in support of Community Development Block Grant (CDBG) funding for the Episcopal Service Alliance (ESA). Legal notice as provided to the City Clerk's Office by staff had been published and posted. Mayor Pro Tern Cook opened the public hearing Prior to announcing the public speakers, the City Clerk restated for the record the following Late Communications announced earlier that pertain to this public hearing: Communication dated August 8, 2001 from Doris E. Reid requesting that the Episcopal Service Alliance remain in the Community Development Block Grant Allocation (CDBG). Communication dated August 9, 2001 from Kirk Hayward requesting that the Episcopal Service Alliance remain in the Community Development Block Grant Allocation (CDBG). Communication dated August 13, 2001 from the Economic Development Department transmitting a matrix showing the Community Development Block Grant (CDBG) recommendations made by the Citizen Participation Advisory Board (CPAB) and Staff for the 2001102 funding year. Communication titled Late Communication — Item D-2. Communication from Sandy McNally in support of the Citizen Participation Advisory Board (CPAB) recommendations. Economic Development Director David Biggs introduced Senior Administrative Analyst Luann Brunson, as the staff person assigned to the Community Development Block Grant (CDBG) program, and liaison to the Citizen Participation Advisory Board (CPAB). Senior Administrative Analyst Brunson presented the PowerPoint slide report titled Approval of 200112002 Action Plan for CDBG and Home Programs, which was distributed with the agenda. She reiterated the timeline for submittal of the approved Action Plan to HUD (U. S. Department of Housing and Urban Development). Ms. Brunson stated that the difference between the staff and Citizen Participation Advisory Board (CPAB) recommendation relate to $40,791 in six public service areas. Jeff Lebow, outgoing Chair of the Citizen Participation Advisory Board (CPAB), urged approval of the Board is recommendations. He explained the review process and issues of concern in the CPAB members' review of the applications. Mr. Lebow stated that the city run programs are commendable; however, the exclusion of other, unduplicated programs needed by low and moderate income residents does not provide what he terms as °a portfolio of services." (14) August 13, 2001 - Council/Agency Minutes - Page 14 Cordula Dick-Muehlke, Executive Director of Adult Day Services of Orange County (ADSOC), spoke regarding the day time care her agency provides in the Alzheimer's Disease Facility built in conjunction with Hoag Hospital. Dr. Dick-Muehlke urged approval of the Citizen Participation Advisory Board (CPAB) recommendation in the amount of $10,000, which she informed Council, is already a 50% decrease from the Community Development Block Grant (CDBG) funding received last fiscal year. Linda Vasina related that her father suffers from a debilitating disease known as Vascular Dementia. She stated that the Senior Center does not cover all of her family's needs. She listed the benefits they have derived from Adult Day Services. Ms. Vasina spoke in support of full Community Development Block Grant (CDBG) funding for the Adult Day Service Center. Damon D. Nowlin stated his support of the Citizen Participation Advisory Board (CPAB) recommendation of Community Development Block Grant (CDBG) funding of Adult Day Services. Mr. Nowlin commended the affordable and competent care -giving services the public agency has provided for his father who suffers from Alzheimer's Disease. Kathy Stern stated her intent of speaking accompanied by her mother Katie Bell, who suffers from early dementia. Ms. Stern indicated what the Adult Day Services agency means to them both, and encouraged Council to meet the Citizen Participation Advisory Board (CPAB) budget recommendation. Barbara Gallegos introduced her mother, Doreen Dupree, stating how the Adult Day Services has been a godsend to them. Ms. Gallegos related her mother's experiences, and spoke that while she understands the budget restraints, she is in support of the Citizen Participation Advisory Board (CPAB) recommendation. Ms. Dupree informed Council that she was not coerced to be there. Conrad James Moreno, Citizen Participation Advisory Board (CPAB) stated that he had worked with Council liaisons on the CPAB recommendations. Mr. Moreno spoke regarding Councilmember Boardman's awareness of the process involved. Philip Inglee, Chair of the Huntington Beach Community Clinic, furnished the credentials of the medical facility. He spoke in support of the Citizen Participation Advisory Board (CPAB) recommendation, stating that the staff recommendation is a decrease of over 50 percent. Mr. Inglee informed Council of his interface with businesses and schools on student health issues, and of his work with job centers. Reverend Dr. Carl P. Ullrich, Executive Director of Episcopal Service Alliance (ESA), spoke in support of Community Development Block Grant (CDBG) funding of the services his agency has provided to the city since 1988. Reverend Dr. Ullrich stated that the ESA Center, which serves seniors citizens, has over 1500 clients. Judy Loschin, Vice Chair of the Project Self Sufficiency (PSS) Foundation, spoke in support of the private/public partnership program sponsored by the city. Ms. Loschin stated how the program is worthwhile, among other things, in assisting adults in need of gaining financial independence, and in providing scholarships to children. Jerry A. Sacks, Ombudsman for the Council on Aging, spoke regarding providing nursing home care for the frail and elderly. Mr. Sacks requested approval of the Citizen Participation Advisory Board (CPAB) recommendation for funding. (15) August 13, 2001 - Council/Agency Minutes - Page 15 Colleen Gelfer and Company, Oak View Center, thanked the Citizen Participation Advisory Board (CPAB) and staff and spoke in support of a skateboard park as good for children and the rest of the community. Jackie Canigiani, Citizen Participation Advisory Board (CPAB), commended the city for what she considers as going above and beyond the minimum requirements. Ms. Canigiani stated her purpose for speaking is to share with Council the efforts of Citizen Participation Advisory Board (CPAB) and the methods used to provide for needs, including revisions to the funding application that benefit the applicant. Ms. Canigiani requested that the CPAB recommendation be followed. Jim Breslauer, Vice Chair, Project Self Sufficiency (PSS), stated his support of what he considers to be a model program. He spoke of the foundation as a 501(c)3 private/public partnership, speaking of the program's enhancements to help individuals from having to depend on welfare assistance. Theresa Ospina and Frank Guerrero, Community Services Program (CSP) representatives, spoke regarding the CSP Gang Prevention Program and its work to provide programs including youth counseling in conjunction with Ocean View High School. Cy Baumann, Christmas in April representative, informed Council of his volunteer -based program that provides housing rehabilitation for low-income homeowners. Mr. Baumann stated that Christmas in April is currently assisting the elderly and the disabled. David Levy, Fair Housing Council of Orange County, informed Council that he was available to answer questions as the agency representative. He responded to Mayor Pro Tern Debbie Cook's inquiry that the Fair Housing Council received $38,000 in Community Development Block Grant (CDBG) funds last year. Mr. Levy encouraged support of the Citizen Participation Advisory Board (CPAB) recommendation. Brian Colligan, President of Annie's House, informed Council of housing provided by his organization for patients diagnosed with HIV/AIDS. He stated that his organization is uniquely comprised of an entirely volunteer board. Mr. Colligan stated that any amount of funding through the Community Development Block Grant (CDBG) would be welcome. Donna Klein, Huntington Youth Shelter, stated that her organization has applied for the past four years for funds under the Community Development Block Grant (CDBG) program. She informed Council of the Shelter's plans to build an outreach office to work with kids on the street in the Downtown area and expressed her hope for future CDBG funding. Amy Crepeau, Oak View Branch, Literacy Program representative, spoke regarding the library's services in providing one-to-one assistance to people with reading difficulties. Ms. Crepeau expressed her appreciation for the support that the library has received. She requested Council to accept the Citizen Participation Advisory Board (CPAB) recommendation. 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 Cook. (16) August 13, 2001 - Council/Agency Minutes - Page 16 (City Council) Council and Staff Responses to Public Comments re: Proposed Community Development Block Grant (CDBG) Recommendation for Funding of Skateboard Park in the Oak View Neighborhood Enhancement Area (340.70) Councilmember Garofalo expressed his pleasure at having served as Council liaison to the Citizen Participation Advisory Board. He presented his recommendations for a revision to the funding proposed for the Oak View Skateboard Park. Public Works Director Beardsley reported on the matter. Community Services Director Ron Hagan stated that Bill Fowler, Superintendent of Recreation and Human Services, is the staff person working on the project. Councilmember Boardman concurred that the Oak View community is in support of the construction of a skateboard park. Councilmember Boardman expressed concern that non -profits need to be informed there may not be any monies available for out -of -city services prior to their application for Community Development Block Grant (CDBG) funding. (City Council) Motion Failed on Recommendation for Community Development Block Grant (CDBG) Funding Proposed for Senior Outreach and Project Self Sufficiency to be Reduced to Fund the Council on Aging and Episcopal Service Alliance (ESA) Respectively, and to Make Up the Shortfall from the General Fund (340.70) Councilmember Boardman ascertained from Community Services Director Hagan that Project Self Sufficiency serves Huntington Beach residents by a majority. Councilmember Dettloff stated her intent to inquire into the possibility of grant funding for the Council on Aging and Episcopal Service Alliance (ESA), the two public service agencies which did not receive staffs recommendation. Councilmember Dettloff asked what would happen if Community Services Program (CSP) Gang Prevention Program funds were to be cut back. Police Chief Lowenberg recommended that Council not reduce the funding amount suggested by the Citizen Participation Advisory Board (CPAB), which he stated is less than program operating costs. Library Services Director Ron Hayden responded to Councilmember Dettloff s inquiry that if the Oak View Library Literacy Program were to be cut back by $5,000, he would look for alternative revenue sources to pay salaries. Mayor Pro Tern Cook stated that Community Development Block Grant (CDBG) funds should not be proposed for sewer improvements. Public Works Director Beardsley reported on the proposed sewer improvements relative to the CDBG enhancement areas. Economic Development staff responded to Mayor Pro Tern Cook's concerns regarding the 20% allocation to administrative costs. (17) August 13, 2001 - Council/Agency Minutes - Page 17 A motion was made by Bauer, second Dettloff to 1. Reduce Senior Outreach funding by $6,000, and re -allocate to the Council on Aging; and 2. Reduce the Project Self Sufficiency funding by $5,000; and re -allocate to Episcopal Service Alliance; and 3. Make lip the $11,000 shortfall from the General Fund at -later date. The motion failed by the following roll call vote: AYES: Dettloff, Bauer NOES: Boardman, Cook, Garofalo ABSENT: Green, Julien Houchen A motion was made by Boardman, second Cook to approve the Citizen Participation Advisory Board (CPAB) Recommendation: 1. Approve the 2001/2002 Citizen Participation Advisory Board Recommended Action Plan (Attachment 2), for the CDBG Program in the amount of $1,748,000 and the HOME Program in the amount of $756,000; and 2. Authorize the City Administrator to execute the required certifications; and 3. Authorize submission of the Action Plan to the U.S. Department of Housing and Urban Development (HUD). The motion carried by the following roll call vote: AYES: Boardman, Cook, Garofalo NOES: Dettloff, Bauer ABSENT: Green, Julien Houchen (City Council) Approved Water Service Agreement and Land Purchase Option Agreement Between the City and AES Huntington Beach, LLC Electrical Energy Power Plant for the Southeast Reservoir (600.10) The City Council considered a communication received from Bill Workman, Assistant City Administrator requesting Council approval to: {1) execute the Water Service Agreement with AES Huntington Beach, LLC (AES) to provide water service for Units 3 and 4; and (2) execute an Option Agreement with AES Huntington Beach, LLC andfor its affiliates granting the city a one year irrevocable right to purchase 4.5 acres of land on Assessor's Parcel Number (APN) 114-150-84 for the Southeast Reservoir at the set price of $350,000. Councilmember Bauer announced that the Southern California Air Quality Management District (SCAQMD) public hearing relative to Huntington Beach AES, which was scheduled for the following day, August 14, 2001 has been postponed to August 21, 2001. Per Councilmember Garofalo's request, City Administrator Silver directed staff to air the postponement on HBTV3. Councilmember Bauer expressed the opinion that negotiations regarding AES have been proceeding favorably. A motion was made by Bauer, second Dettloff to: (City Council) Approved Water Services Agreement — AES Huntington Beach LLC Power Generating Facility (600.10) I. Approve and authorize the Mayor and the City Clerk to execute the Water Service Agreement Between the City of Huntington Beach and AES Huntington Beach, LLC to provide water service to Units 3 and 4; (18) August 13, 2001 - Council/Agency Minutes - Page 18 and (City Council) Approved Option Agreement and Escrow Instructions— AES Huntington Beach LLC Power Generating Facility (600.10) 2. Approve and authorize the Mayor and City Clerk to execute the Option Agreement and Escrow Instructions with AES Huntington Beach, LLC and/or its affiliates granting the city a one year irrevocable right to purchase 4.5 acres of land for the Southeast Reservoir at the set price of $350,000. and (City Council) Approved City Indemnification Obligation — AES Huntington Beach LLC Power Generating Facility (600.10) 3. Approve the City's indemnification obligation to AES Huntington Beach, LLC, as fully set forth in Section 1-0 of said Option Agreement; and (City Council) Direction Provided Re: Land Purchase from Southern California Edison Company Near the AES Huntington Beach LLC Power Generating Facility for the Southeast Reservoir (600.10) 4. Authorize the Director of Administrative Services or the Real Estate Services Manager and the City Clerk to attest and accept all documents, deeds, or other such Agreements required to complete the purchase of the selected parcel, with any parcel size adjustments at the same unit price basis as established in the Option Agreement to meet the city's final requirements, from AES Huntington Beach, LLC and/or its affiliates under the terms of the Option Agreement, upon City Attorney approval as to form of said documents, deeds and agreements; and (City Council) Direction Provided Re: Property to be Purchased from Southern California Edison Company/AES Huntington Beach LLC Power Generating Facility for the Southeast Reservoir (600.10) 5. Authorize the Real Estate Services Manager to pursue and the City Clerk to attest and accept all documents and deeds related or required to extinguish or otherwise remove all covenants, easements and other encumbrances reserved by Southern California Edison or any other party recorded against the land subject to this Option Agreement in favor of the city, upon City Attorney approval as to form of said documents and deeds. The motion carried by the following roll call vote: AYES: Boardman, Cools, Garofalo, Dettloff, Bauer NOES: None ABSENT: Green, Julien Houchen (19) August 13, 2001 - Council/Agency Minutes - Page 19 (City Council) Received Presentation of Integrated Infrastructure Management Program (IIMP) Citizen Survey Results Conducted by Lawrence Research (840.20) City Administrator Silver and Rich Barnard, Director of Communications and Special Projects reported on the Citizen Survey results of the Integrated Infrastructure Management Program. The city's consultant, Dr. Gary Lawrence of Lawrence Research, presented the PowerPoint presentation announced earlier as a Late Communication by the City Clerk. The communication is dated August 10, 2001 from Administration transmitting the "draft" results from the Public Opinion Survey titled Results from the Public Opinion Survey regarding the City's Infrastructure Needs. An announcement was made that the Infrastructure Planning Committee (]PC) is scheduled to meet Wednesday, August 15, 2001 to review the survey. (City Council) Adopted Ordinance No. 3500 to Amend Huntington Beach Municipal Code Chapter 9.88 Relating to Solicitation for Employment and Contributions (640.10) The City Council considered a communication from the City Attorney requesting the approval of repealing sections of Huntington Beach Municipal Code Chapter 9.88 relating to solicitation for employment and contributions, which was found to be unconstitutional in a case involving a very similar ordinance in Los Angeles. The City Attorney requested the adoption of new regulations patterned after an ordinance in a case where the appellate court ruled the ordinance constitutionally sound. A motion was made by Garofalo, second Dettloff after the City Clerk read by title, to adopt Ordinance No. 3500 —An Ordinance of the City of Huntington Beach Amending Chapter 9.88 of the Huntington Beach Municipal Code Relating to Employment Solicitation." The motion carried by the following roll call vote: AYES: Boardman, Cook, Garofalo, Dettloff, Bauer NOES: None ABSENT: Green, .Julien Houchen Adjournment — City CouncillRedevelopment Agency Mayor Pro Tem Cook adjourned the regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to Monday, August 20, 2001, at 5:00 p.m., in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California. City Clerk and ex-officio Clerk f the City Council of the City of Huntington Beach and Clerk of the Redevelopment Agency of the City of Huntington Beach, California ATTEST: L.GA- A /fn A .eo City Clerk -Clerk Mayor -Chairman