HomeMy WebLinkAbout2001-11-19Special Meeting Minutes
City Council/Redevelopment Agency
City of Huntington Beach
4:00 P.M. - Council Chambers
Civic Center, 2000 Main Street
Huntington Beach, California 92648
Monday, November 19, 2001
A videotape of this meeting
is on file in the Office of the City Clerk
4:00 P. M. — 5:00 P.M. Council Chambers
Call to Order
Mayor Pro Tern Cook called the Special Meetings of the City Council and the Redevelopment
Agency of the City of Huntington Beach to order at 4:05 p.m. in the Council Chambers.
City Council -Redevelopment Agency Special Meeting Roll Call
Present: Green, Boardman, Cook, Garofalo, Dettloff, Bauer (Julien Houchen arrived at
4:11 p.m.)
Absent: . None
City/Agency Clerk Read Call for Special Meeting for the Purpose of Discussion and
Possible Report by City Attorney of Action Taken on the Closed Session Items Listed on
the Agenda
CALL FOR SPECIAL MEETING
CITY COUNCIL/REDEVELOPMENT AGENCY
CITY OF HUNTINGTON BEACH
MONDAY, NOVEMBER 19, 2001
Pam Julien Houchen, Mayor/Chairman
Debbie Cook, Council/Agency Member
Connie Boardman, Council/Agency Member
Ralph Bauer, Council/Agency Member
Peter Green, Council/Agency Member
Dave Garofalo, Council/Agency Member
Shirley Dettloff, Council/Agency Member
You are hereby notified that a Special Meeting of the Huntington Beach City Council and
Redevelopment Agency of the City of Huntington Beach, California, is called for and will be held
Monday, November 19, 2001 at the hour of 4:00 p.m., at City Hall, 2000 Main Street, Huntington
Beach in the Council Chambers in the Lower Level. The meeting will be held for the purpose of
meeting in closed session to consider and possibly take action on the below listed closed
session items.
(2) November 19, 2001 - Council/Agency Special Meeting Minutes - Page 2
This Call for Special Meeting is necessary to allow the City Council/Redevelopment Agency to
meet at 4:00 p.m., rather than at the 5:00 p.m. time which at the November 5, 2001 meeting
was the announced time made to the public that the Council would again meet.
Motion to Recess to Closed Session — Approved
A motion was made by Garofalo, second Boardman to recess to Closed Session (restricted to
the items listed in the Call for Special Meeting notice). The motion carried by the following roll
call vote:
AYES: Green, Boardman, Cook, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: Julien Houchen
1. (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; Clay Martin, Director
of Administrative Services; Richard Whitmore, Esq. of Whitmore, Johnson & Bolanos;
and Steven M. Berliner, Esq. of Liebert, Cassidy and Frierson regarding labor relations
matters — meet and confer with the following employee organizations: HBMEA,
HBMEO, HBFMA, and Non -Associated. Subject: Labor Relations — Meet & Confer.
(120.80)
2. (City Council) Closed Session — Pursuant to Government Code Section 54956.9(a) to
confer with its attorney regarding pending litigation which has been initiated formally and
to which the city is a party. The title of the litigation is Scottsdale Insurance Co. v. City
of Huntington Beach, Orange County Superior Court Case No. 761735. Subject:
Scottsdale Insurance Co. v. City of Huntington Beach. (120.80)
3. (City Council) Closed Session — Pursuant to Government Code Section
54956.9(b)(3)(B) to confer with its city attorney regarding pending litigation. 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: BF Construction 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 Talbert & Beach, Inc. v. City of
Huntington Beach; U.S. District Court Case No. SACV-001096-AHS(EEx). Subject:
Talbert & Beach, Inc. v. City of Huntington Beach. (120.80)
(3) November 19, 2001 - Council/Agency Special Meeting Minutes - Page 3
5. (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 Tierrasanta v. City of
Huntington Beach, Orange County Superior Court Case No. 775993. Subject:
Tierrasanta v. City of Huntington Beach. (120.80)
6. (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 Marcia Dunbar v. City of
Huntington Beach; Orange County Superior Court Case No. OOCC06677. Subject:
Marcia Dunbar v. City of Huntington Beach. (120.80)
7. (City Council) Closed Session — Pursuant to Government Code Section 54956.9(c) to
confer with its city attorney regarding pending litigation based on existing facts and
circumstances, the legislative body of the local agency has decided to initiate or is
deciding whether to initiate litigation. Number of potential cases: One. Subject: Gun
Range Cleanup Costs. (120.80)
8. (Redevelopment Agency) Closed Session — Pursuant to Government Code Section
54956.9(a) to confer with its attorney regarding pending litigation which has been
initiated formally and to which the agency is a party. The title of the litigation is Mulligan
v. Redevelopment Agency; Orange County Superior Court Case No. 740099. Subject:
Mulligan v. Redevelopment Agency. (400.50)
Dated: November 16, 2001
ATTEST: City Clerk/CI
I hereby certify that I received the above notice, "Call of Special Meeting of the Huntington
Beach City Council/Redevelopment Agency," prior to 4:00 p.m. Sunday, November 18, 2001.
,�,
(4) November 19, 2001 - Council/Agency Special Meeting Minutes - Page 4
Reconvened
City Council -Redevelopment Agency Special Meeting Adjournment — As of 5:00 P.M. the
Special Meeting adjourned and the regular City Council -Redevelopment Agency Meetings
commenced.
Note: The City Attorney Reported Action Taken by the City Council in Closed Session during
the 7:00 P.M. portion of the meeting.
City Clerk and ex-officio ClerXof the City
Council of the City of Huntington Beach
and Clerk of the Redevelopment Agency
of the City of Huntington Beach, California
ATTEST:
SAM
City Clerk -Clerk Mayor -Chairman
CITY OF HUNTINGTON BEACH
2000 MAIN STREET
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
CALL FOR SPECIAL MEETING
CITY COUNCIL/REDEVELOPMENT AGENCY
CITY OF HUNTINGTON BEACH
MONDAY, NOVEMBER 19, 2001
Pam Julien Houchen, Mayor/Chairman
Debbie Cook, Council/Agency Member
Connie Boardman, Council/Agency Member
Ralph Bauer, Council/Agency Member
Peter Green, Council/Agency Member
Dave Garofalo, Council/Agency Member
Shirley Dettloff, Council/Agency Member
CALIFORNIA 92648
You are hereby notified that a Special Meeting of the Huntington Beach City Council and
Redevelopment Agency of the City of Huntington Beach, California, is called for and will be held
Monday, November 19, 2001 at the hour of 4:00 p.m., at City Hall, 2000 Main Street, Huntington
Beach, California 92648 in the Council Chambers in the Lower Level. The meeting will be held
for the purpose of meeting in closed session to consider and possibly take action on the below
listed closed session items:
1. (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; Clay Martin, Director of Administrative
Services; Richard Whitmore, Esq. of Whitmore, Johnson & Bolanos; and Steven M. Berliner,
Esq. of Liebert, Cassidy and Frierson regarding labor relations matters — meet and confer
with the following employee organizations: HBMEA, HBMEO, HBFMA, and Non
Associated. Subject: Labor Relations — Meet & Confer. (120.80)
2. (City Council) Closed Session — Pursuant to Government Code Section 54956.9(a) to
confer with its attorney regarding pending litigation which has been initiated formally and to
which the city is a party. The title of the litigation is Scottsdale Insurance Co. v. City of
Huntington Beach, Orange County Superior Court Case No. 761735. Subject: Scottsdale
Insurance Co. v. City of Huntington Beach. (120.80)
3. (City Council) Closed Session — Pursuant to Government Code Section 54956.9(b)(3)(B)
to confer with its city attorney regarding pending litigation. 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: BF Construction v. City of Huntington Beach. (120.80)
g:/procedur/notices/special.doc
(Telephone: 714536-5227 )
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 Talbert & Beach, Inc. v. City of
Huntington Beach; U.S. District Court Case No. SACV-001096-AHS(EEx). Subject:
Talbert & Beach, Inc. v. City of Huntington Beach. (120.80)
5. (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 Tierrasanta v. City of Huntington
Beach, Orange County Superior Court Case No. 775993. Subject: Tierrasanta v. City of
Huntington Beach. (120.80)
6. (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 Marcia Dunbar v. City of Huntington
Beach; Orange County Superior Court Case No. OOCC06677. Subject: Marcia Dunbar v.
City of Huntington Beach. (120.80)
7. (City Council) Closed Session — Pursuant to Government Code Section 54956.9(c) to
confer with its city attorney regarding pending litigation based on existing facts*and
circumstances, the legislative body of the local agency has decided to initiate or is deciding
whether to initiate litigation. Number of potential cases: One. Subject: Gun Range
Cleanup Costs. (120.80)
8. (Redevelopment Agency) Closed Session — Pursuant to Government Code Section
54956.9(a) to confer with its attorney regarding pending litigation which has been initiated
formally and to which the agency is a party. The title of the litigation is Mulligan v.
Redevelopment Agency; Orange County Superior Court Case No. 740099. Subject:
Mulligan v. Redevelopment Agency. (400.50)
Dated: November 16, 2001
ATTEST: City Clerk/ erk
Ni" zc)to_� 4 ut)An,
Mayor/Chairman
I hereby certify that I received the above notice, "Call for Special Meeting of the Huntington
Beach City Council/Redevelopment Agency," prior to 4:00 p.m. Sunday, November 18, 2001.
Noo rm 14atkrt,
ayor/Chairman
In accordance with the Ralph M. Brown Act this Special Meeting Notice was duly posted and faxed to
the Editors of the Huntington Beach Independent, the Los Angeles Times -Orange County Edition, the
Orange County Register and the Huntington Beach Wave at least 24 hours prior to the meeting.
g 1proced ur/noti ces/special.doc
Minutes
City Council/Redevelopment Agency
City of Huntington Beach
4:00 P.M. - Council Chambers
7:00 P.M. — Room B-8
7:25 P.M. — Council Chambers
Civic Center, 2000 Main Street
Huntington Beach, California 92648
Monday, November 19, 2001
A videotape of this meeting
is on file in the Office of the City Clerk
4:00 P. M. — 5:00 P.M. Council Chambers
Call to Order
Mayor Pro Tern Cook called the Special Meetings of the City Council and the Redevelopment
Agency of the City of Huntington Beach to order at 4:05 p.m. in the Council Chambers.
City Council -Redevelopment Agency Special Meeting Roll Call
Present: Green, Boardman, Cook, Garofalo, Dettloff, Bauer (Julien Houchen arrived at
4:11p.m.)
Absent: None
City/Agency Clerk Read Call for 4:00 P.M.-5:00 P.M. Special Meeting for the Purpose
of Discussion on the Closed Session Items Listed on the Agenda (Special Meeting
Minutes Prepared Separately)
This Call for Special Meeting is necessary to allow the City Council/Redevelopment Agency to
meet at 4:00 p.m., rather than at the 5:00 p.m. time which at the November 5, 2001 meeting
was the announced time made to the public that the Council would again meet.
Note: (See Special Meeting Minutes of November 19, 2001 for the Special Meeting
Notice.)
Motion to Recess to Closed Session — Approved
A motion was made by Garofalo, second Boardman to recess to Closed Session (restricted to
the items listed in the Call for Special Meeting notice). The motion carried by the following roll
call vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: None
(2) November 19, 2001 - Council/Agency Minutes - Page 2
1. (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; Clay Martin, Director
of Administrative Services; Richard Whitmore, Esq. of Whitmore, Johnson & Bolanos;
and Steven M. Berliner, Esq. of Liebert, Cassidy and Frierson regarding labor relations
matters — meet and confer with the following employee organizations: HBMEA,
HBMEO, HBFMA, and Non -Associated. Subject: Labor Relations — Meet & Confer.
(120.80)
2. (City Council) Closed Session — Pursuant to Government Code Section 54956.9(a) to
confer with its attorney regarding pending litigation which has been initiated formally and
to which the city is a party. The title of the litigation is Scottsdale Insurance Co. v. City
of Huntington Beach, Orange County Superior Court Case No. 761735. Subject:
Scottsdale Insurance Co. v. City of Huntington Beach. (120.80)
3. (City Council) Closed Session — Pursuant to Government Code Section
54956.9(b)(3)(B) to confer with its city attorney regarding pending litigation. 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: BF Construction 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 Talbert & Beach, Inc. v. City of
Huntington Beach; U.S. District Court Case No. SACV-001096-AHS(EEx). Subject:
Talbert & Beach, Inc. v. City of Huntington Beach. (120.80)
5. (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 Tierrasanta v. City of
Huntington Beach, Orange County Superior Court Case No. 775993. Subject:
Tierrasanta v. City of Huntington Beach. (120.80)
6. (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 Marcia Dunbar v. City of
Huntington Beach; Orange County Superior Court Case No. OOCC06677. Subject:
Marcia Dunbar v. City of Huntington Beach. (120.80)
7. (City Council) Closed Session — Pursuant to Government Code Section 54956.9(c) to
confer with its city attorney regarding pending litigation based on existing facts and
circumstances, the legislative body of the local agency has decided to initiate or is
deciding whether to initiate litigation. Number of potential cases: One. Subject: Gun
Range Cleanup Costs. (120.80)
(3) November 19, 2001 - Council/Agency Minutes - Page 3
8. (Redevelopment Agency) Closed Session — Pursuant to Government Code Section
54956.9(a) to confer with its attorney regarding pending litigation which has been
initiated formally and to which the agency is a party. The title of the litigation is Mulligan
v. Redevelopment Agency; Orange County Superior Court Case No. 740099. Subject:
Mulligan v. Redevelopment Agency. (400.50)
Adjournment of Special Meeting
Approximately 7:00 P.M. — Reconvened City Council/Redevelopment Agency Meeting
with all Councilmembers Present (Green arrived 7: 90 p.m.) in Room B-8 for the
Annual Joint Study Session between the City Council and the Investment Advisory
Board
(City Council) Annual Joint Study Session between the City Council and the Investment
Advisory Board - Annual Report on Investments to the City Council (October 1, 2000 to
September 30, 2001) (310.20)
Investment Advisory Board Roll Call
Present: Richard Ganulin (Chair), Paul Arms, Joe Foye, Bob Glass, Warren Hall,
Bob Turicchi
Absent: Robert Winchell
The Investment Advisory Board (IAB) provided its annual update to the City Council regarding
activities for Fiscal Year 200012001.
The IAB transmitted the Annual Report titled City of Huntington Beach Investment Advisory
Board (IAB) Annual Report to the City Council for the period October 1, 2000 to September
30, 2001. The communication is included in the agenda packet.
City Treasurer Shari Freidenrich delivered an oral report and introduced Deputy City
Treasurer Jim Slobojan. City Treasurer Freidenrich requested the members of the
Investment Advisory Board to introduce themselves and furnish their credentials.
IAB Chair Ganulin reported on investment strategies, with regard to a declining rate
environment, which he stated was the status of the market as recently as the previous week.
Mr. Ganulin distributed a Late Communication at the meeting. The communication is a
PowerPoint presentation titled Joint Study Session — IAB/City Council, from which he
presented an overview of the IAB Annual Report.
Chair Ganulin reported on crafting the city's investment policy, for which he stated certain
guidelines were set to be in compliance with the investment portfolio. He spoke regarding
the City Treasurer's reliance upon feedback and review from those classified as first-rate
investment brokers in the industry, listing among them Solomon Smith Barney, First Union
Bank, and Morgan Stanley -Dean Witter. Mr. Ganulin demonstrated how City Treasurer
Freidenrich has developed good relationships with these parties.
(4) November 19, 2001 - Council/Agency Minutes - Page 4
Mr. Ganulin informed Council of the impact of an Assembly Bill, AB 9433, the legislation
enacted which mandates the requirement for cities to submit their investment policies to the
State of California.
Referring to PowerPoint Slide No. 4 titled Accomplishments, Chair Ganulin reported on the
city's cash flow system and procedures. He commended City Treasurer Freidenrich, Deputy
City Treasurer Slobojan, and departmental staff for their expertise in handling cash flow
matters.
Chair Ganulin informed Council that First Union Bank is the city's bank dealing with
government deposits. He reported on the city's ability to utilize personal computerized
banking. Mr. Ganulin stated that the capability of accessing the website designated on the
Internet will allow the city to make for better and more consistent returns on its investments.
Council was informed that bids are being prepared for other banks for the next fiscal year
and the Requests for Proposals (RFPs) will be mailed.
Chair Ganulin stated that the Monthly/Quarterly City Treasurer's Investment Report is the
"City Treasurer's Bible." He referred to the management letter relative to the last annual
audit conducted by Diehl, Evans & Company, LLC. Mr. Ganulin stated that auditing is the
"lifeblood" of the directors of banks. He spoke regarding the accounting and budget audits
of various other city departments.
IAB Chair Ganulin acknowledged the awards received by the Investment Advisory Board
and the City Treasurer respectively, from the Municipal Treasurer's Association of the United
States and Canada for the Certified Investment Policy, and the California Municipal
Treasurer's Association for the Certified Municipal Treasurer designation.
That the city does not have utility company bond investments and maintains good quality
investments, was reiterated by Chair Ganulin from Slide No. 4 titled Accomplishments.
Directing Council's attention to the bar graph on PowerPoint Slide No. 5 titled FY 00/01
Budgeted Income versus Actual, Mr. Ganulin pointed out that the city has exceeded the
budget when it comes to earnings. He furnished the color legend for the columns; purple
representing the projected and green the actual income.
Councilmember Boardman inquired as to what factors account for the lower projected
amounts in comparison to the higher actual income. City Treasurer Freidenrich responded
that the differences result from a combination of factors, including the fact that the budget
was set up two years ago under a different rate environment, and also due to the building -in
of additional reserves.
City Administrator Ray Silver contributed that the statistics are also affected by the inclusion
of $30 million dollars in grant monies.
Chair Ganulin stated that forecasting trends has improved over the last two years.
Mr. Ganulin requested IAB Member Joe Foye to address Council regarding investment
trading, which Chair Ganulin stated on behalf of the Board, is the biggest challenge facing
the city relative to the investment portfolio.
(5) November 19, 2001 - Council/Agency Minutes - Page 5
IAB Member Foye reported on how the selling of U.S. Treasury Bonds will affect the city
during the lowered rate environment. He assured Council that City Treasurer Freidenrich
has employed the work of good brokers with regard to bonds.
IAB Member Foye demonstrated the interest rate yield curve by using Slide No. 7 to
illustrate.
Mr. Foye spoke in reference to Slide No. 8 titled Investment Strategies relative to
maximizing short bonds. Mr. Foye recommended that the city continue to buy top -rated
government bonds, as is the customary practice of City Treasurer Freidenrich. Continuing
on the topic of Investment Strategies with Slide No. 9, Mr. Foye spoke regarding the wise
approach of handpicking top rated corporate bond securities, mentioning that Motorola is a
good example.
Councilmember Garofalo inquired regarding the purchase of Triple A -rated bonds. Mr. Foye
responded that if the economy is in a slump and the bond becomes downgraded, it is not a
concern in the market. City Treasurer Freidenrich added that corporate bonds can be
downgraded to junk bond status, as the reason why the city buys only Double A and Triple A
- rated bonds.
City Treasurer Freidenrich reported on the process involved in determining the cash needs
for departments.
The Investment Advisory Board Meeting was adjourned to Monday, January 28, 2002 at
6:00 P.M.
Mayor Julien Houchen thanked the members of the Investment Advisory Board and staff for
the comprehensive report.
Reconvened City Council/Redevelopment Agency Regular Meeting — Approximately
7:25 P.M. - Council Chambers
Announcement Made by Agency General Counsel of Action Taken by Redevelopment
Agency in Closed Session Pursuant to Government Code Section 54957.1 at the
November 19, 2001 Redevelopment Agency Closed Session In Re: Mulligan_v.
Redevelopment Agency of the City of Huntington Beach, OCSCC No. 740099 (120.80)
Agency General Counsel Gail Hutton announced that the City Council/Redevelopment
Agency convened in closed session on November 19, 2001 to discuss whether or not to
defend, or seek or refrain from seeking appellate review of relief, or to enter as an amicus
curiae in any form of litigation as the result of a consultation under Section 54956.9 in the
matter of Mulligan v. Redevelopment Agency of the City of Huntington Beach, Orange
County Superior Court Case No. 740099. The Redevelopment Agency voted unanimously
with all members present, to authorize the Agency General Counsel to file an appeal of the
award of attorney's fees and costs to Plaintiffs, Mulligan, et al.; and to Cross -Defendant
Abdelmuti.
(6) November 19, 2001 - Council/Agency Minutes - Page 6
Announcement Made by City Attorney of Action Taken in Closed Session Pursuant to
Government Code Section 54957.1 at the November 19, 2001 City Council Closed
Session to Discuss Whether to Initiate Litigation (Undisclosed Potential Defendants)
(120.80)
City Attorney Gail Hutton announced that the City Council convened in closed session on
November 19, 2001 to discuss whether to initiate litigation. The City Council voted
unanimously, with no members absent to initiate litigation. The action, the defendants, and
other particulars shall, once formally commenced, be disclosed to any person upon inquiry,
unless to do so would jeopardize the city's ability to effectuate service of process on one or
more unserved parties, or that to do so would jeopardize the city's ability to conclude
existing settlement negotiations to its advantage.
Announcement Made by City Attorney of Action Taken by City Council in Closed
Session Pursuant to Government Code Section 54957.1 at the November 5, 2001 City
Council Closed Session In Re: Citizens Against Redevelopment Excess, et al. v. City
of Huntington Beach, et al. (CARE 1), OCSCC No. 81159 - Authorized the City Attorney
not to Seek a Rehearing before the Court of Appeals or Supreme Court Review
(120.80)
City Attorney Gail Hutton announced that the City Council convened in closed session on
November 5, 2001 to discuss the matter of Citizens Against Redevelopment Excess, et
al. v. City of Huntington Beach, et al. (CARE 1), Orange County Superior Court Case
No: 81159. The City Council voted unanimously with no members absent to not authorize
the City Attorney to seek a rehearing before the Court of Appeal or Supreme Court review.
Announcement Made by City Attorney of Action Taken by City Council in Closed
Session Pursuant to Government Code Section 54957.1 at the November 5, 2001 City
Council Closed Session In Re: Russell Reinhart v. City of Huntington Beach, USDCC
No. SACV 00-1598 RJL (MANx) (120.80)
City Attorney Gail Hutton announced that the City Council convened in closed.session on
November 5, 2001 to discuss the matter of Russell Reinhart v. City of Huntington Beach,
USDCC No. SACV 00-1598 RJL (MANx) (Prep Time). The City Council voted unanimously
voted with no members absent, to authorize the City Attorney to settle this litigation by way
of Plaintiff dismissing the suit without prejudice.
Call City Council/Redevelopment Agency Roll Call
Present: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer
Absent: None
Flag Ceremony and Pledge of Allegiance — Brownie Troop 1568, Sts. Simon and Jude,
Huntington Beach. Co -Leaders Cathy Morrill and Paula Tiedt.
Invocation — Pastor Kurt Morem, Grace Lutheran Church, Huntington Beach.
(7) November 19, 2001 - Council/Agency Minutes - Page 7
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.
Slide show presentation from the City Treasurer's Office titled Joint Study Session — IAB/City
Council.
Slide show presentation from the Public Works Department titled Water Wells "3A" and "57:
Slide show presentation from the Planning Department titled Zoning Text Amendment 01-04 -
Entitlement Streamlining.
Slide show presentation from the Economic Development Department titled Community
Facilities District No. 2001-1 (Grand Coast Resort) — City Council Meeting, November 19, 2001,
F-2.
Communication from the City Administrator's Office transmitting a request to table Agenda Item
F-3. Communication titled November 19, 2001— Agenda Item F-3 — City Clerk's Request for
Receiving and Filing Professional Service Agreements.
Presentation — By Cheryl Brothers, Board of Directors, Discovery Museum, to Mayor
Pam Julien Houchen; Robert F. Beardsley, Public Works Director; and Ron Shenkman,
Rainbow Disposal, of Environmental Awards for the best Public/Private Partnership.
(160.40)
Presentation — By Mayor Pam Julien Houchen, Huntington Beach Police Officers'
Association Officer Corwin Bales and Huntington Beach Firefighters' Association Paramedic
Don Cone to Tanya Hoxsie, Director, Huntington Valley Girls and Boys Club, a check for
$20,000, in proceeds raised by the Guns and Hoses Annual Charitable Golf Tournament.
(160.40)
Presentation — By Mayor Pam Julien Houchen, Sr. Police Officer Jeff Huss, Police Officer
Robert Frahm, of "End of Watch" T-Shirt sales proceeds totaling $90,000 to be presented to
the New York Police Department and New York Fire Department Relief Funds. Officer
Frahm announced the phone number (714) 842-8851 to call to buy T-Shirts and support the
FDNY and NYPD. Representatives of the Huntington Beach Police Officers Association will
be flying to New York to present the check. (160.40)
Presentation — To Mayor Pam Julien Houchen; Police Chief Ronald Lowenberg;
Sharon Wie, Interval House Representative; and Jana Harden, Victim Advocate, Community
Services Program (CSP); a check for $500 by Ken Inouye, Chair, and Commissioner Pat
Krone of the Orange County Human Relations Commission. This check was presented at
the Annual Community Oriented Policing (COP) Awards Breakfast on November 10, 2001.
(160.40)
Mayor's Award to Luann Brunson, Senior Administrative Analyst, Economic Development
Department. (120.70)
(8) November 19, 2001 - Council/Agency Minutes - Page 8
Public Comments
Ann Beasley, accompanied by Natalie Kotsch, Huntington Beach Surfing Museum
President, announced upcoming festivities to be held in August of 2002 in recognition of a
postage stamp to honor "the Duke" and surfing.
Kathy McGough, representative of the Children's Needs Task Force (CNTF), reported to
Council on the progress made for a Children's Information and Research Center. She
spoke relative to the grant received, which is sponsored by State Proposition 10 on the
proceeds from the Tobacco Initiative. Ms. McGough informed Council that Requests for
Proposals will be mailed by the end of the month to recruit a Project Manager who will be in
charge of the Business and Action Plans for the organization. Ms. McGough expressed her
gratitude to the Mayor and the City Council for their support of the needs of the CNTF.
Britney Johnson, representing Ballet Etudes, invited Council and everyone to the
"Nutcracker Suite" to be performed at the Huntington Beach High School Auditorium on
November 8 and 9, 2001.
Chuck Scheid informed Council of the problem he perceives with multiple street sweeping
signs in the area of Newland and Indianapolis Streets.
Steve Gullage, State President of the Golden State Mobilehome Owners Association
(GSMOL) and President of the Huntington Beach Mobilehome Owners Association
(HBMOA), questioned the validity of the Property Rights petition, which is them measure to
be placed on the March 5, 2002 Special Municipal Election ballot.
(City Council) Responses to Public Comments Re: Property Rights Measure on the
March 5, 2002 Special Municipal Election Ballot (620.30)
In response to the comments made by the last public speaker, discussion was held between
the City Councilmembers, the City Attorney and the City Clerk regarding the Property Rights
Measure. City Attorney Hutton reported on a Legal Opinion that her office provided today
on a Supreme Court decision. The City Clerk commented on the problem in the State
Election Code in regard to contradictory information found on the petition form.
(City Council) Presentation Made by the Animal Care Services Ad -Hoc Committee -
Accepted Findings and Recommendations in Report Requesting Council Support of
the City's Continued Participation in the County's Animal Care Services and Concept
of Maintaining a Low or No Cost Animal Adoption Satellite Center (500.10)
The City Council considered a communication from Animal Care Services Ad -Hoc
Committee Chair, Mayor Pam Julien Houchen and Council Committee Members Mayor Pro
Tern Debbie Cook and Councilmember Connie Boardman transmitting that in February
2001, the City Council created an Ad -Hoc Committee on animal care services charged with
recommending an animal care services strategy to the City Council. The Committee was
also asked to report its recommendations to the City Council by June 30, 2001. Since
February, the Committee has met to review the feasibility study prepared by Meyer & Allen
Associates, receive input from the community, tour the county's existing facilities, and
discuss the future of animal care services in Huntington Beach.
(9) November 19, 2001 - Council/Agency Minutes - Page 9
This memorandum serves to report the Committee's findings and recommendations to
date.
A motion was made by Julien Houchen, second Garofalo to accept the following:
Findings: The Committee finds that: (1) The city is capable of providing pro -humane animal
care services; (2) It believes the feasibility study overestimates the cost to provide pro -
humane care services; however, (3) The cost of providing pro -humane animal care services
would represent a significant increase from the existing county contract;
and
Recommendations: (1) That the city remain a member of the county animal care services
system; (2) The committee monitor the county's plans for relocation, long-term contracts,
and the potential that other client cities (north county in particular) may leave the county
system; and (3) The City Council support the concept of a satellite county facility or private
adoption center in Huntington Beach if these options are available at little or no cost to the
city.
The motion carried by the following roll call vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: None
(City Council) Presentation by the Public Works Department of an Overview of the
California Integrated Waste Management Board Including Survey Results Ranking the
City as the Second Most Effective Trash Diversion Program in the County (810.60)
The City Council considered an overview of the California Integrated Waste Management
Board Waste Diversion Program will be given. The report will include the results of a recent
survey ranking Huntington Beach as having the second most effective trash diversion
program in Orange County.
Public Works Director Robert F. Beardsley presented the PowerPoint slide report titled
California Integrated Waste Management Board — Waste Diversion Program — November
19, 2001, which was included in the agenda packet.
Councilmember Bauer commended the Public Works Director for an excellent report. He
stated his intent to make people aware of the three landfills in the County, in the cities of
Brea, San Juan Capistrano, and Irvine. Councilmember Bauer reported that contracts will
need to be renegotiated. He inquired regarding demolition permit credits, to which Director
Beardsley responded a demolition ordinance in not currently in place.
(10) November 19, 2001 - Council/Agency Minutes - Page 10
(City Council) Presentation Made of Summary Findings on Study Conducted by the
Santa Monica "Heal the Bay" Water Quality Group of the City's Ocean and Beaches
within Huntington Harbour (520.30)
The City Council received a brief presentation summarizing. the findings of a recent water
quality study of city and state beaches by "Heal the Bay," a Santa Monica based water
quality group.
A PowerPoint presentation titled Heal the Bay's Report Card on Huntington Beach's 8%
Miles of Ocean Frontage and Huntington Harbour Beaches Summer 2001 is included in the
agenda packet.
Public Works Director Beardsley delivered the aforementioned slide report.
Councilmember Boardman inquired relative to the methodology used by Heal the Bay, and
to clarify the difference between report card grades of A, B, C, and so forth. Director
Beardsley reported on the process, furnishing the number of data points collected and the
purposes for the various monitoring locations.
In response to Councilmember Bauer's concerns, Council and staff held a discussion on the
dates scheduled for a series of Water Quality Control Board hearings and sewer -related
matters; including ways in which to deal with urban runoff causes such as restaurant grease
traps.
(City Council) Announcement Made of the Opening of Newly Operational Water Wells
Nos. 3A and 5 (1000.10)
Public Works Director Beardsley presented a brief overview of the opening of two newly
operational Water Wells, Nos. 3A and 5.
City Council) Public Hearing Continued Open to December 3, 2001 to Consider Zoning
Text Amendment No. 01-07 (Coastal Development Permit Appeal Language) —
Introduction of Ordinance No. 3517 Amending Huntington Beach Zoning Code
Section 245.32 (450.20)
Mayor Julien Houchen announced that this was the time scheduled for a public hearing to
consider the following:
Public hearing continued from November 5; 2001 to consider the following: Applicant: City
of Huntington Beach. Request: To amend Section 245.32 of the Huntington Beach Zoning
and Subdivision Ordinance relating to direct appeal to the California Coastal Commission for
any Zoning Administrator, Planning Commission, or City Council action within the
appealable areas of the coastal zone. Location: Appealable areas of the coastal zone.
Environmental Status: Notice is hereby given that Zoning Text Amendment No. 01-07 is
categorically exempt from the provisions of the California Environmental Quality Act.
Legal notice as provided to the City Clerk's Office by staff had been mailed, published and
posted.
(11) November 19, 2001 - Council/Agency Minutes - Page 11
The City Council considered a memorandum included in the agenda packet submitted by
the City Clerk regarding this public hearing item, which was opened on November 5, 2001.
There being no persons to speak on the matter and there being no protests filed, either
written or oral, the hearing was continued by the Mayor.
A motion was made by Dettloff, second Green to continue the public hearing open to
December 3, 2001. The motion carried by the following roll call vote:
AYES: Green, Boardman, Cook, Julien Houchen, Dettloff, Bauer
NOES: None
ABSENT: None (Garofalo out of the room)
(City Council) Public Hearing Held to Consider Zoning Text Amendment No. 01-04
(City Wide Entitlement Permit Review Process Streamlining) - Directed Staff to
(1) Prepare Ordinances for ZTA No. 01-04 as Amended for 13 Chapters of the
Huntington Beach Zoning and Subdivision Code and Sections of the Downtown
Specific Plan and (2) Inform Council of Planning Commission Study Session
Schedule (450.20)
Mayor Julien Houchen announced that this was the time scheduled for a public hearing to
consider the following:
Applicant: City of Huntington Beach
Request: To amend 13 chapters within the Huntington Beach Zoning and Subdivision
Ordinance and three sections of the SP5 Downtown Specific Plan, codify certain Planning
Department policies and clarify sections of existing codes for streamlining purposes.
The proposed amendments are intended to reduce the overall number of discretionary
entitlement applications by allowing the use by right or having a lower level discretionary
body review the entitlement.
Location: City-wide
Environmental Status: Notice is hereby given that Zoning Subdivision Ordinance No. 01-
04 is categorically exempt from the provisions of 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 report titled Zoning Text
Amendment No. 01-04 — Entitlement Streamlining, which had been announced earlier by the
City Clerk as a Late Communication.
Planning Director Zelefsky reported that the citizens' criticisms regarding the Conditional
Use Permit procedure as being both too costly and time-consuming, prompted the proposed
streamlining process.
(12) November 19, 2001 - Council/Agency Minutes - Page 12
Director Zelefsky highlighted the five additional changes set forth on the list provided on
Page No. D-2.4 of the staff report.
Planning Director Zelefsky presented an example of the bulleted item Personal Enrichment,
from this list. He stated that the permitting requirements for a yoga studio are guided by
square footage. Director Zelefsky also commented on the proposed code as it pertains to
religious assemblies and car sales and rentals.
Director Zelefsky reported on the Planning Commission recommendations, as well as those
of the Beautification, Landscape and Trees (BLT) Committee with regard to sites having
greater than 50 parking spaces.
Director Zelefsky informed Council of minor changes relative to lot line adjustments
Consideration was made on the options presented by Planning Director Zelefsky for staff to
either return to Council with a legislative draft, or return to the Planning Commission for
review and re -notice the public hearing.
Councilmember Boardman concurred with the latter alternative, stating reasons based on
the five additional uses that the Planning Commission is recommending, as presented on
Page No. D-2.4 of the staff report.
Councilmember Green expressed the belief that the differences between the Planning
Commission and the Staff Recommendations are picayune distinctions. He praised the
streamlining concept, but cautioned that the public may not be informed of Conditional Use
Permits granted, if permitted use is transferred from the Planning Commission to the
Planning Director level of approval.
Director Zelefsky reiterated from Page No. D-2.5 from the staff report that these changes are
proposed because they are non -controversial uses; that the current zoning code criteria will
regulate establishment of these items which a lower hearing body, at the Zoning
Administration level, can adequately review.
Councilmember Dettloff commented that in the five areas outlined, the only difference is in
the 10-day noticing requirement to adjoining property owners.
Planning Director Zelefsky responded that after Planning Commission review, the five items
mentioned by Councilmember Boardman have been found to be benign. He stated that it is
unnecessary, for instance, to hold a public hearing in order to approve a bank to add drive -
through windows. Director Zelefsky informed Council of the timeline for Planning
Commission study sessions. -
After discussion between Council and staff, it was concluded that the adoption of the
proposed entitlements in piece -meal fashion would not be feasible; that it would not be
helpful to segregate out items for return to the Planning Commission.
Mayor Julien Houchen declared the public hearing open.
(13) November 19, 2001 - Council/Agency Minutes - Page 13
Prior to calling the public speakers, the City Clerk restated for the record the PowerPoint
slide report announced earlier as a Late Communication, which pertains to this public
hearing.
Bill Holman stated his intent to give credit to staff in makingw hat the average business
person needs. Mr. Holman expressed his belief that the proposed streamlining process is a
step in the right direction.
Richard Harlow, Chamber of Commerce representative, referred to Page No. D-2.159 of
the staff report, which sets forth a communication from Joyce Riddell, President of the
Chamber of Commerce, in support of staffs recommendation of the proposed entitlement
streamlining provisions. He reiterated from the communication relative to the fee reduction.
Mr. Harlow encouraged approval of the Staff Recommendation, stating it will enable the .
Planning Department to devote needed time to larger projects, as well as allowing the
Planning Commission more time to spend on major issues.
There being no persons to speak further on the matter and there being no protests filed,
either written or oral, the hearing was closed by the Mayor.
Councilmember Boardman informed Council that she will be making a motion to approve
sending the proposal back to the Planning Commission for review and renoticing.
Councilmember Green seconded the motion, expressing the hope that the Planning
Commission and staff will come together with a balance. He stated that he would assurance
that the citizens are closely informed of entitlement changes.
Further discussion ensued prior to voting on the motion on the table.
Councilmember Bauer stated his interest in the public comments. He expressed his
pleasure that the Planning Department is addressing the concerns of the Chamber of
Commerce. Councilmember Bauer requested staff to inform Council of the study sessions
held by the Planning Commission regarding the streamlining process.
Councilmember Garofalo ascertained from Planning Director Zelefsky that the Planning
Commission voted six to one. He informed Council that if the motion on the table fails, he
will move the Staff Recommendation.
Mayor Pro Tern Cook stated that she is in support of streamlining, but expressed concern
with the asterisked items on the Permit Streamlining -Conditional Use Permit list, when. it is
applicable to conditional uses which back up to residential. She stated that if these uses are
not noticed, the public will not be aware of the zoning text amendments.
Planning Director Zelefsky answered Mayor Julien Houchen in the affirmative, that all the
uses are appealable.
It was determined to add the 10-day noticing requirement to the motion on the table.
(14) November 19, 2001 - Council/Agency Minutes - Page 14
(City Council) Motion Failed to Return to the Planning Commission for Review and
Re -Noticing of Zoning Text Amendment No. 01-04 (City Wide Entitlement Permit
Review Process Streamlining) (450.20)
A motion was made by Boardman, second Green to return to Planning Commission in order
for Planning Commission to review and then re -notice for public hearing to Council,
consideration of Zoning Text Amendment No. 01-04 (City Wide Entitlement Permit Review
Process Streamlining). The motion failed by the following roll call vote:
AYES: Green, Boardman, Cook
NOES: Julien Houchen, Garofalo, Dettloff, Bauer
ABSENT: None
A motion was made by Garofalo, second Bauer to approve Zoning Text Amendment
No. 01-04 in concept with findings for approval (Attachment No. 3 on the following page*)
and direct staff to prepare revised ordinances and return to City Council for the first reading
to include as amended, from Page No. D-2.4 of the staff report as follows:
1.) The Planning Commission is recommending that five of the uses changing from
conditional use permit approval to Director approval (permitted use) require a minimum
10 day noticing to adjoining property owners, similar to the City's infill ordinance
notification requirements. The five items are:
• Eating and Drinking Establishments (greater than 300' from residential)
• Live Entertainment (non -amplified only)
• Outdoor Dining (less than 400 sq. ft. in area)
• Personal Enrichment
• Sign Code Exceptions (less than 10% deviation)
and
2.) Directed staff to inform City Council of the schedule of Planning Commission study
sessions.
The motion carried by the following roll call vote:
AYES: Green, Cook, Julien Houchen, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: Boardman
(15) November 19, 2001 - Council/Agency Minutes - Page 15
*Attachment No. 3
Staff Recommendation
Suggested Findings - Zoning Text Amendment No. 01-04
Suggested Findings for Approval —Zoning Text Amendment No. 01-04:
1.) Zoning Text Amendment No. 01-04 to amend certain sections of the Zoning and Subdivision
Ordinance is consistent with the objectives, policies, general land uses and programs
specified in the General Plan and any applicable specific plan because the amendments
streamline entitlement processing for certain uses thereby furthering the city's development
goals.
2.) In the case of a general land use provision, the zoning text amendment is compatible with
the uses authorized in, and the standards prescribed for, the zoning district for which it is
proposed. The amendment revises processing of entitlements and clarifies permitted uses
within the zoning classifications.
3.) A business community need is demonstrated for the change. The need for reduced
processing time is desired by the business community and supported by the Chamber of
Commerce.
4.) Its adoption will be in conformity with public convenience, general welfare and good zoning
practice by codifying existing policies and creating a zoning and subdivision ordinance more
reflective of city priorities.
5.) The inclusion of more discretionary permits is of great benefit to the business community by
expanding on the number of projects that could be reviewed at a reduced processing time.
(City Council) Administrative Hearing Held — Adopted Resolution No. 2001-89
Approving Certification of Special Assessments for Delinquent Civil Fines for
Municipal Code Violations (520.80)
Mayor Julien Houchen announced that this was the time scheduled for an Administrative
Hearing to consider communication from the City Attorney and the City Treasurer as
required by the California Government Code Section 38377.5 for the purpose of certifying
special assessments against properties where public nuisances have occurred.
Legal notice as provided to the City Clerk's Office by staff had been mailed, published and
posted.
Mayor Julien Houchen opened the public hearing.
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 the Mayor.
City Attorney Gail Hutton presented an oral report, stating that the 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, was
adopted by the City Council on June 15, 1998.
(16) November 19, 2001 - Council/Agency Minutes - Page 16
A motion was made by Garofalo, second Green to adopt Resolution No. 2001-89 titled `A
Resolution of the City Council of the City of Huntington Beach Certifying Special Assessments
for Collecting Delinquent Civil Fines for Municipal Code Violations." The motion carried by the
following roll call vote:
AYES: Green, Boardman, Julien Houchen, Garofalo Dettloff, Bauer
NOES: None
ABSENT: None (Cook out of the room)
Consent Calendar — Items Removed for Separate Discussion
The following items were removed from the Consent Calendar for separate discussion:
(City Council) Agreement between the City, Mesa Consolidated Water District (Mesa) and
Orange County Water District (OCWD) for Interruptible Potable Water Service to Talbert
Seawater Intrusion Barrier Facilities (600.25)
(City Council) Resolution No. 2001-93 Providing for Temporary Partially Paid Military Leave
of Absence and Continuation of Benefits for City Employees Serving as Military Reservists
Called to Active Duty with the Armed Forces (700.50)
Consent Calendar — Items Approved
On motion by Garofalo second Cook, Council approved the following Consent Calendar items,
as recommended. The motion carried by the following roll call vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: None
(City Council/Redevelopment Agency) Minutes - Approved and adopted the minutes of
the City Council/Redevelopment Agency Regular Meetings of October 15, 2001 as written
and on file in the Office of the City Clerk. Submitted by the City Clerk.
(City Council) Approved Agreement Between the City and the County of Orange for
Fiscal Year 2001-02 Animal Care Services Contract (600.25) — Approved the Agreement
for Provision of Animal Care Services between County of Orange and City of Huntington
Beach Fiscal Year 2001-2002. Submitted by the City Administrator. Funding Source:
$427,860 — General Fund, Non -Departmental Account.
(City Council) Accepted Bid and Awarded Contract to Nobest, Inc. for Pedestrian
Improvements; MSC-409 — Along Cindy Lane/Clark Drive/Clubhouse Lane/Heil
Avenue/Marie Lane/Mediterranean Drive/Shorewood CirclelTigerfish Circle (600.70)
1. Accepted the lowest responsible/responsive bid submitted by Nobest, Inc. for the repair/
replacement of pedestrian improvements, MSC-409; and 2. Approved and authorized the
Mayor and the City Clerk to execute Maintenance Service Contract 409 between the City of
Huntington Beach and Nobest, Inc. in the amount of $1,028,534.80 for the repair/
replacement of pedestrian improvements; and 3. Authorized the Director of Public Works to
expend up to $1,176,387.80, which includes the contract cost of $1,028,534.80, estimated
(17) November 19, 2001 - Council/Agency Minutes - Page 17
contingency of $102,853, and $45,000 in undesignated supplemental expenditures.
Submitted by the Public Works Director. Funding Source: $1,176,387.80 -Measure M Fund,
Pedestrian Improvements Account.
(City Council) Accepted Bid and Awarded Contract to Inspection Engineering
Construction; CC-1171 for Traffic Signals at Delaware Street/Garfield Avenue/
Springdale Street/Slater Avenue, and Lake Street/Adams Avenue (600.55) —
1. Accepted the lowest responsive/responsible bid submitted by Inspection Engineering
Construction and authorize the Mayor and City Clerk to execute the approved construction
contract for the Construction of Traffic Signals at Delaware Street/Garfield Avenue,
Springdale Street/Slater Avenue, Lake Street/Adams Avenue; CC-1171; and 2. Authorized
the Director of Public Works to expend up to $207,005.55 for the project, including
$180,005.55 for the contract; estimated contingency of $18,000 (approximately 10% of
construction); and $9,000 for supplemental expenditures. Submitted by the Public Works
Director. Funding Source: $207,005.55 Air Quality Fund, Traffic Signals Account $197,400
and Measure M, Traffic Signals Account $9,605.55.
(City Council) Approved the Release of the Guarantee and Warranty Bonds
(Maintenance Bonds) for Tracts No. 15037, 15081 and 15085 — Turnberry Huntington
Beach, LLC — s/s Summit Drive, e/o Seapoint Avenue — (Holly-Seacliff Specific Plan)
(420.60) —1. Released Maintenance Bonds No. 3 SM 984 206 00, 3 SM 984 208 00 and
3 SM 984 207 00 the security furnished for guarantee and warranty of improvements
(American Motorists Insurance Co.); and 2. Instructed the City Clerk to notify the developer,
Turnberry Huntington Beach, LLC, of this action, and the City Treasurer to notify the Surety,
American Motorists Insurance Company, of this action. Submitted by the Public Works
Director. Funding Source: Not Applicable.
(City Council) Approved the Release of Securities for Tract No. 15343 and Accepted
the Public Improvements — HB Hamptons Partners/New Urban West, Inc. — Accepted
Guarantee and Warranty Bond (American Motorists Insurance Co.) — NE Corner of
Edwards Street and Garfield Avenue — (Ellis-Goldenwest Specific Plan) (420.60) —
1. Accepted the improvements constructed and dedicated for public use with Tract
No. 15343; and 2. Released HB Hamptons Partners, L.P. and New Urban West, Inc.,
Faithful Performance/Labor and Material Bond No. 3SM 956 965 00 and Monument Bond
No. 3SM 956 966 00 pursuant to California Government Code Section No. 66499.7; and
3. Accepted HB Hamptons Partners, L.P. and New Urban West, Inc., Guarantee and
Warranty Bond No. 3SM 956 965 500-M, the security furnished for guarantee and warranty
of improvements, and instruct the City Clerk to file the bond with the City Treasurer; and
4. Instructed the City Clerk to notify the developers, HB Hamptons Partners, L.P. and New
Urban West, Inc.; of this action, and the City Treasurer to notify the Surety, American
Motorists Insurance Company, of this action; and 5. Instructed the City Clerk to record the
"Notice of Acceptance of Public Improvements" (attached) with the Orange County
Recorder. Submitted by the Public Works Director. Funding Source: Not Applicable.
(City Council) Approved the Release of Securities for Tract No. 15675 and Accepted
the Public Improvements — PLC Land Co. — NW Corner of Goldenwest Street and
Summit Drive — (Holly-Seacliff Specific Plan) — Accepted Guarantee and Warranty
Bond (American Motorists Insurance Co.) (420.60) —1. Accepted the improvements
constructed and dedicated for public use with Tract No. 15675; and 2. Released PLC Land
Company, Faithful Performance/Labor and Material Bond No. 3SM95819800 and
(18) November 19, 2001 - Council/Agency Minutes - Page 18
Monument Bond No. 3SM95819900 pursuant to California Government Code Section
No. 66499.7; and 3. Accepted PLC Land Company, Guarantee and Warranty Bond No.
3SM95819800-A, the security furnished for guarantee and warranty of improvements, and
instruct the City Clerk to file the bond with the City Treasurer; and 4. Instructed the City
Clerk to notify the developer, PLC Land Company, of this action, and the City Treasurer to
notify the Surety, American Motorists Insurance Company, of this action; and
5. Instructed the City Clerk to record the "Notice of Acceptance of Public Improvements"
(attached) with the Orange County Recorder. Submitted by the Public Works Director.
Funding Source: Not Applicable.
(City Council) Approved Reappointment of Catherine Stip to the Allied Arts Board —
Term of July 1, 2001 through June 30, 2005 (110.20) — Approved reappointment of
Catherine Stip to a member -at -large, second four-year term of July 1, 2001 through
June 30, 2005 on the Allied Arts Board as recommended by City Council liaisons Mayor
Pam Julien Houchen and Councilmember Shirley Dettloff. Submitted by the Community
Services Director. Funding Source: Not Applicable.
(City Council) Approved the Release of Securities for the Edwards Hill Reservoir and
Booster Pump Station, Accept the Public Improvements, and Authorized
Reimbursement to PLC Land Company — (Holly-Seacliff Development Agreement)
(600.10) —1. Accepted the Edwards Hill Reservoir and Booster Pump Station Improvements
and authorized the reimbursement to PLC Land Company payment in the amount of
$1,190,368; and 2. Released the Faithful Performance/Labor and Material Bond
No. 3SM 915 944 00, furnished pursuant to California Government Code Section
No. 66499.7(b); and 3. Accepted the Maintenance Bond No. 3SM 915 944 00-A (American
Motorists Insurance Co.), the security furnished for the guarantee and warranty of
improvements, and instruct the City Clerk to file the bond with the City Treasurer; and
4. Instructed the City Clerk to notify the developer, PLC Land Company, of this action, and
the City Treasurer to notify the Surety, American Motorists Insurance Company, of this
action; and 5. Instructed the City Clerk to record the "Notice of Acceptance of Public
Improvements" (attached) with the Orange County Recorder. Submitted by the Public
Works Director. Funding Source: $1,192,822 — Water Master Plan Fund Account —
PLC Reimbursement.
(City Council) Approved Professional Services Contract between the City and
Berryman and Henigar, Inc. for As -Needed Sewer Design Services for Implementation
of Sewer Lift Station and Sewer Line Rehabilitation Projects — Approved Expenditure
of Funds (600.10) —1. Approved and authorized the Mayor and City Clerk to execute the
Professional Services Contract between the City of Huntington Beach and Berryman &
Henigar, Inc. to Provide as Need Sewer Design Services, and 2. Authorized the Director of
Public Works to expend monies not to exceed $750,000 per contract year. Submitted by the
Public Works Director. Funding Source: $250,000 (FY 2001-02) and $500,000 (FY 2002-
2003) — Sewer Services Fund. Increasing the contract amount to $750,000 will allow for
additional design services should alternative resources be made available through grant
awards. The allocation of additional funds must be approved by the City Council.
(19) November 19, 2001 - Council/Agency Minutes - Page 19
(City Council) Approved Agreement between the City, Mesa Consolidated Water
District (Mesa) and Orange County Water District (OCWD) for Interruptible Potable
Water Service to Talbert Seawater Intrusion Barrier Facilities (600.25)
Councilmember Boardman requested that this agenda item be removed from the Consent
Calendar for separate discussion. She requested staff to clarify if the proposal will provide
additional water and if the locations can be identified.
Public Works Director Beardsley responded in the negative, stating that the proposed action
is for the purposes of the Orange County Water District (OCWD), working in conjunction with
the Orange County Sanitation District (OCSD) to develop the Groundwater Replenishment
System.
A motion was made by Boardman, second Green to approve and authorize the Mayor and City
Clerk to execute an Agreement between Mesa Consolidated Water District, the City of
Huntington Beach and Orange County Water District for Interruptible Potable Water Service to
Talbert Barrier Facilities. Submitted by the Public Works Director. Funding Source: Any and all
costs to the City will be reimbursed by Orange County Water District. (This agreement will allow
OCWD to obtain a service connection from OC-44, an imported water connection located in the
city at Adams Avenue and the Santa Ana River, for the purpose of providing water service to the
Talbert Seawater Intrusion Barrier.) 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. 2001-93 Providing for Temporary, Partially Paid
Military Leave of Absence and Continuation of Benefits for City Employees Serving as
Military Reservists Called to Active Duty with the Armed Forces (700.50)
Mayor Julien Houchen requested that this agenda item be removed from the Consent
Calendar in order to briefly on its purpose. She commended staff for bringing the matter
forward, stating the financial hardship on the families of reservists who have been called to
active duty. The Mayor spoke regarding how this temporary compensation will provide the
difference in salary to enable these city employees to continue the military service to their
country.
A motion was made by Julien Houchen, second Green to adopt Resolution No. 2001-93 —A
Resolution of the City Council of the City of Huntington Beach Providing for Additional
Temporary Partially Paid Military Leave of Absence and Continuation of Benefits for City
Employees Called to Active Duty with the Armed Forces." Submitted by the City Administrator.
Funding Source: Pay and benefits are currently funded in the existing budget.. The motion
carried by the following roll call vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: None
(20) November 19, 2001 - Council/Agency Minutes - Page 20
(City Council) Reviewed List and Approved and Authorized the City Administrator to
Execute the Professional Services Contracts in Fiscal Year 2001-02 Budget of Five
City Departments of (1) Administrative Services; (2) Building and Safety;
(3) Administration; (4) City Attorney; and (5) City Treasurer (600.05)
The City Council considered a communication from the City Administrator requesting to .
enter into the professional service contracts included in the FY 2001-02 budget and detailed
in Attachment No. 1 of the staff report.
City Administrator Silver provided an oral presentation. Principal Analyst Peter Grant
reported on Page Nos. F-1.4 through F-1.6 of the Request for Council Action (RCA).
A motion was made by Garofalo, second Dettloff to authorize the City Administrator to enter into
the professional service contracts detailed in Attachment No. 1, titled Professional Service
Contracts Included in FY 2001-02 Budget.. The motion carried by the following roll call vote:
AYES: Green, Boardman, Cook, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: None (Julien Houchen out of the room)
(City Council/Redevelopment Agency) Approved the Issuance of $16 Million in Bonds
by the City of Huntington Beach Community Facilities District No. 2000-1 (Grand
Coast Resort — Hyatt Regency Huntington Beach Resort and Spa — PCH Beach
Resort, LLC/RL Mayer Management, Inc. — Approved Introduction of Ordinance
No. 3519 — Adopted Council Resolution Nos. 2001-90/2001-91/2001-92 and Agency
Resolution No. 327 (330.30)
The City Council/Redevelopment Agency considered a communication from the Economic
Development Director/Deputy Executive Director of the Redevelopment Agency regarding
the following:
Statement of Issue: On September 14, 1998 the Redevelopment Agency of the City of
Huntington Beach entered into an Amended and Restated Disposition and Development
Agreement (DDA) with PCH Beach Resorts, LLC for the development of the Hyatt Regency
Huntington Beach Resort and Spa. A component of the financing for the project stipulates
that the Redevelopment Agency cooperate in the issuance of Community Facilities District
(CFD) bonds for the costs associated with installing public improvements surrounding the
project. The bonds are supported by a special property tax levy imposed on the leasehold
owner of the property (PCH Beach Resorts, LLC) on which the resort is located. On April
17, 2000, the City established a Community Facilities District for that purpose. The actions
recommended below are necessary to issue $16 million in CFD bonds.
Funding Source: Funding for this CFD will come from bonds to be issued within the next
couple of months. The payment of the bonds will be made by PCH Beach Resorts, LLC, the
long-term leaseholder of the property, which is the owner and developer of the Hyatt
Regency Huntington Beach Resort and Spa. Neither the City or the Redevelopment Agency
have any responsibilities for the repayment of the bonds, which are to be repaid solely from
a special tax levied on the leasehold interest for the project.
(21) November 19, 2001 - Council/Agency Minutes - Page 21
Economic Development Director/Deputy Executive Director David Biggs presented the
PowerPoint presentation that had been announced earlier by the City Clerk as a Late
Communication. The slide report is titled Community Facilities District No. 2001-1 (Grand
Coast Resort) — City Council Meeting, November 19, 2001, F-2.
Economic Development Director/Deputy Executive Director Biggs announced that
Kim Byrons, Agency Bond Counsel is available for questions.
The issuance of Community Facilities District bonds requires various sequential steps to be
taken by the City Council and Redevelopment Agency:
A motion was made by Dettloff, second Green to approve the following recommended
actions:
City Council Actions:
1. Approve introduction of Ordinance No. 3519 —An Ordinance of the City of
Huntington Beach Levying Special Taxes within the City of Huntington Beach
Community Facilities District No. 2000-01 (Grand Coast Resort)."
and
2. Adopt Resolution No. 2001-90 — "A Resolution of the City Council of the City of
Huntington Beach Authorizing the Issuance of Special Tax Bonds for the City of
Huntington Beach Community Facilities District No. 2001-1 (Grand Coast Resort) in an
Aggregate Principal Amount not to Exceed $16,000,000 and Approving Certain
Documents and Taking Certain other Actions in Connection therewith."
and
3. Adopt Resolution No. 2001-91 — "A Resolution of the City Council of the City of
Huntington Beach Approving and Authorizing Execution of a Developer Funding and
Construction Agreement and Joint Community Facilities Agreement Relating to
Community Facilities District No. 2000-1 (Grand Coast Resort)."
and
4. Adopt Resolution No. 2001-92 — "A Resolution of the City Council Approving the
Execution and Delivery of an Agreement with the Redevelopment Agency of City of
Huntington Beach Regarding the Forbearance of Remedies Under Lease Agreement "
Redevelopment Agency Actions:
1. Adopt Resolution No. 327 — "A Resolution of the Redevelopment Agency of the City
of Huntington Beach Approving the Execution and Delivery of an Agreement with the
City of Huntington Beach Regarding the Forbearance of Remedies Under Lease
Agreement."
(22) November 19, 2001 - Council/Agency Minutes - Page 22
The motion carried by the following roll call vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: None
(City Council) Established City Council Policy for City Clerk to Follow in Receiving
and Filing Professional Services Agreements Entered Into (Pursuant To Huntington
Beach Municipal Code Chapter 3.03) (600.05)
The City Council considered a communication from the Office of the City Clerk requesting
that a City Council approved policy be established for the City Clerk's Office to follow in the
review, filing and retrieval of Professional Services Agreements entered into between city
staff and consultant firms pursuant to Chapter 3.03 of the Huntington Beach Municipal
Code.
The City Clerk presented an oral report. She read from Chapter 613 of the City Charter,
wherein the City Council has authority to delegate execution of contracts to city officers
other than the Mayor and the City Clerk; however, those officers are not allowed to delegate
execution to others. The City Clerk emphasized the need for a City Council resolution listing
and approving all officers designated to execute agreements. The City Clerk stressed the
importance of having an established procedure in place for these agreements, which will not
be going through the current City Council agenda process.
Mayor Pro Tern Cook stated that during closed session, obtaining an insurance certificate,
versus an insurance policy was discussed. She inquired if there is any reason why a policy
cannot be secured. City Administrator Silver responded that this matter will be handled via
the Administrative Regulations.
Mayor Pro Tern Cook expressed the concern that said documents should be kept in a fire-
proof place, such as the City Clerk's vault, to which City Administrator Silver stated that he
will review and discuss the issue with Administration.
Principal Analyst Grant reported on the reasons why the original insurance documents are
planned to be kept with the Risk Management Division. He stated that obtaining the policy
has not been considered; that getting the certificate is onerous in itself.
Discussion followed relative to amending the recommended action to reflect that a copy of
the certificate, and not the insurance policy will be attached to the original agreement. The
recommended action also amended a direction to the City Attorney to reflect that copies of
subsequent renewals of the insurance certificate need not to be forwarded to the City
Clerk's Office.
The City Clerk spoke regarding the requirement in the proposed City Council policy, which
would direct the City Clerk to submit a List of Agreements to the City Council on a quarterly
basis, pursuant to Huntington Beach Municipal Code Chapter 3.03. Discussion ensued
which resulted in an amendment to the recommended action to reflect that failure by Council
to receive and file the List of Agreements Quarterly Report will not invalidate the agreements
on said list.
(23) November 19, 2001 - Council/Agency Minutes - Page 23
The City Clerk informed Council that if the City Clerk is to be involved in participating in a
procedure relative to insurance on these agreements, that it must be set forth in an
ordinance, and not in the Administrative Regulations, as staff Administrative Regulations are
not Council adopted regulations.
Councilmember Garofalo stated he is comfortable with adopting the proposed actions, as
amended.
A motion was made by Garofalo, second Cook to adopt, as amended, the City Council
Policy for the City Clerk's Office to follow in the administration of all agreements entered into
between city staff and consultant firms pursuant to Huntington Beach Municipal Code
Chapter 3.03 (Professional Services). The policy is set forth as follows:
(1) Agreements executed by the City Administrator as set forth in the Request for Council
Action shall be submitted to the City Clerk to file for retrieval and destruction according
to the currently approved City Council retention and destruction policy and any future
records retention and destruction policy as may be adopted by the City Council.
(2) Agreements entered into by Directors (Department Heads) pursuant to Huntington
Beach Municipal Code Section 3.03.020 Definitions and S. 3.03.100 Authorization by
Department Directors shall follow the same procedure as (1) above.
(3) Agreements entered into by designees of Directors (Department Heads) Huntington
Beach Municipal Code S. 3.03.020(b) (Definitions) shall be submitted to the City
Clerk's Office for filing if the designee executing the agreement is named in a City
Council resolution that lists the employees who each Director (Department Head)
wishes to designate to execute agreements on their behalf.
(4) The City Clerk shall maintain the agreements on the City Clerk's Office computerized
Records Management Program in the same manner as agreements which are
approved by Council through the City Council Agenda process, except that a copy of
the insurance certificate rather that the original, will be attached to the original
agreement provided to the City Clerk's Office, with the original insurance certificate
and all renewals to be maintained by Administrative Services/Risk Management
Division.
(5) The City Clerk shall submit, on a quarterly basis, a List of Agreements entered into
pursuant to Huntington Beach Municipal Code Chapter S. 3.03. This list shall appear
for the purpose of a Receive and File motion of the City Council. Failure by Council to
Receive and File the List of Agreements Quarterly Report presented to Council does
not affect the validity of the agreements on said list.
And further, Council requested the City Attorney to:
(a) Prepare an ordinance amending Huntington Beach Municipal Code Chapter
3.03.100 Authorization by Department Directors to provide that the original of all
approved insurance certificates and subsequent renewals shall be filed with the
Risk Manager.
(24) November 19, 2001 - Council/Agency Minutes - Page 24
(b) Prepare an ordinance amending S. 3.03.020 (b) Definitions to add Designee or
designees shall be vested with said authority by resolution of the City Council.
(As designees are added/removed, the City Council resolution shall be revised
accordingly.)
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. 3518 — Adding Huntington Beach Municipal
Code Chapter 13.50 Relating to the Regulation of Trees Under the Community Forest
Management Plan (640.10)
After the City Clerk read by title, a motion was made by Green, second Garofalo to adopt by roll
call vote, Ordinance No. 3518 — "An Ordinance of the City of Huntington Beach Adding Chapter
13.50 to the Huntington Beach Municipal Code Relating to the Regulation of Trees." Submitted
by the Public Works Director. The motion carried by the following roll call vote:
AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: None
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 10:00 p.m. to Monday, December 3,
2001, at 6:00 p.m., instead of 5:00 p.m., in Room B-8, Civic Center, 2000 Main Street,
Huntington Beach, California.
d*w'�
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:
4ft'7� 0W'04'V4t_
City Clerk -Clerk yor-Chairman