HomeMy WebLinkAboutOrange County District Attorney $30 Million Settlement with A
Council/Agency Meeting Meld /9 ,
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Deferred/Continued to
M Approved ❑ Conditionally Approved ❑ Denied City Clerks Signature
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Council Meeting Date JULY 7 1997 Department ID Number 97-13
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CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO HONORABLE MAYOR AND CITY COU CIL MEMBERS
1,ti 1/1
SUBMITTED BY AI?HUTTON City Attorney
PREPARED BY �&LHUTTON City Attorney
SUBJECT ORANGE COUNTY DISTRICT ATTORNEY $30 MILLION
SETTLEMENT WITH MERRILL LYNCH
Statement of Issue Funding Source Recommended Action Alternative Action(s) An lysis Environmental Status Attachment(s)
k
Statement of Issue F Item report on $30 million Merrill Lynch settlement with the Orange
County District Attorney
Funding Source N/A
s
Recommended Action Motion to receive and file a report on settlement proceeds dated
July 1 1997 from the City Attorney
Alternative Action(s) N/A
Analysis In the aftermath of the Orange County bankruptcy the city elected to assign all
its claims to the County of Orange in exchange for a share in litigation proceeds from
actions by Orange County against Merrill Lynch and various other third parties Such
litigation is set for trial in September of 1998 and discovery is in process
Meanwhile the Orange County District Attorney has recently settled certain civil causes of
action claims and administrative relief with Merrill Lynch in exchange for a $30 million
payment
If these funds are deemed to be litigation proceeds on account of any pool-related
claims then such funds should be distributed according to the formula agreed to by the
various pool participants and the county
i
i
t
On July 20 1997 Patrick Shea transmitted a letter to the co inty s legal counsel in the third
party litigation and requested distribution according to the formula
We will report on the county s response as soon as we are advised thereof
Environmental Status N/A
Attachment(s1
City Clerk's
Page Number No. Descript[ion
1 June 20 1997 letter from Patrick Shea and the July 1 1997 Gail
Hutton report
RCA Author
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• 0
JO CITY OF HUNTINGTON BEACH
V4JINTER DEPARTMENT COMMUNICATION
HUNTINGTON BEACH
To HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
From GAIL HUTTON City Attorney
Date July 1 1997
Subject ORANGE COUNTY DISTRICT ATTORNEY SETTLEMENT WITH
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
This is in response to recent questions relative to the $310 million settlement
between the Orange County District Attorney and Merril' Lynch Attached is a
letter dated June 20 1997 sent by Patrick C Shea to Bruce Bennett which
demands distribution of proceeds on behalf of pool participants pursuant to the
comprehensive settlement agreement Huntington Beach executed along with all
other pool participants
Under such agreement and the plan of adjustment city like Huntington Beach
will not participate in this recovery unless and until the proceeds recovered
exceed considerably more than $30 million
The threshold figure' will however be reached sooner i all cities join in a
position which characterizes these proceeds as litigatioi proceeds within the
meaning of the comprehensive settlement agreement and the plan of
adjustment
4-4 LZZ��
GAIL HUTTON
City Attorney
Attachment June 20 1997 letter from Patrick Shea to Bruce Bennett
cc Michael Uberuaga City Administrator
Ray Silver Assistant City Administrator
1 The first threshold wherein cities begin to share litigation proceed is $55 million
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June 20 1997
VIA FACSR&JI& MALL
Bruce BenuM Esq
He=&S n, Mercer & Bennett
601 S Figueroa Strect, Suite 3300
Los Angeles, CA 90017
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Re Settlement of Potential Civil Action by the
Orange County District Attorney Against
MgMll er & mit
Dear Bruce
In the June 17 Agreement of Settlement and Release tween the People of the State
of Caltfonua and Merrill Lynch, Pierce Fcnncr & Smith Inca porated the Orange County
District Attorney "expressly agrees that he shall not institu c maintain or assert against
(Merrill Lynch], and discharges (Merrill Lynch] from, any arx I all civil cause= of action,
claims, legal and administrative relief, of any kind and nature, that have been, or could be
alleged or asserted now or in the future by the District Anorn4 y against (Merrill Lynch] ,
related to in connection with or ansing out of any acts orris iions, facts matters, transactions
Or occurrences, in connection with or related to [Merrill Lync 's] relationship,
communications, and transactions with Orange County the sal.- of securities to or by Orange
County, repurchase agreements or reverse repurchase agreements entered into by Ocaw
County In return, Merrill Lynch agrees to pay $27,000 00 into the County s Celneral
Fund and $3 000,000 as reimbursement of attorney s costs
Under the County s confirmed Flan of Adjustment all et Litigation Proceeds must be
distributed in accordance with the distribution scheme of Sect: n VI D of the Plant regardless
of whether those proceeds are initially received by you or the Zounty Net Litigation
Proceeds are defined to be all Litigation Proceeds after the de action of Litigation Costs and
Litigation Proceeds are defined to include any cash received r recovered from anyone
including, but not limited to penalties on account of anv Pool Related Claims of the
SAN OIWO L OS ANGFLES NEW YORK ORANG1 COUNTY SACRAMENTO SAN FA/MCISCO SILICON V LLEY WAMaNG70M D C NONC KOHL TOKYO
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JUN 20 97 16 31 FR PJLLSBURY MAD1SON 10 18 P 04
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Bruce Bennett, Esq
June 20, 1997
Page 2
County or [any Pool Participant which assigned its claims to a County) whether by way of
settlement Iitigation or otherwise
Under the Comprehensive Settlement Agreement ( CS ") between the Cotmry aW the
Pool Participants, Litigation Proceeds are similarly defined to uiclude any cash m mved
or recovered fiom anyone on account of Pool Rebated C of the County or (any pool
Participant which atssigned its clam to the County), whether by way of settlement; Udgdian
or odwwiav " The CSA tben requires the County to &w butt nwact Ltapb n Ptoaxx ,
after dvdmtf m of Udge dw C sbt to the Sdwois $ad ott w I ool Padolpmts. Tlta 6n*i rr,
could be retuned by the County That distribution scheim w is stTerseded by the Plm of
Adjustment winch requires that, irutWly, all Net Litigation Pr x=& be distributed by &t
Representative to the Schools and other Pool Participants
The $27 nulhon Much will soon be pasd to the CoUn by Merrill Lynch falls squarely
within the definition of Litigation Proceeds in both the Coup 's Plan of Adjustment and the
CSA As such those finds most be turned over to the Representative for distribution under
the Plan if there is anything I or the Pool Committee can do to assist you to your effort to
obtain such funds from the County please do not hesitate to call upon us to do so
Very truly yours.
Patnok'Clahea
cc Thomas W Hayes
"'I M242
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JUNE 23 1997
TO ORANGE COUNTY CITY MANAGERS
FROM PAUL BRADY JR IRVINE CITY MANAGE
SUBJECT SETTLEMENT OF POTENTIAL ACTION BY THE ORANGE
COUNTY DISTRICT ATTORNEY AGAINST MERRILL LYNCI-L
PIERCE FENNER& SMITH INC
As a follow-up to the recently announced $30 million settlement between the Orange
County District Attorney and Merrill Lynch I wanted you to know that OCIP Attorney
Patrick C Shea has sent Bruce Bennett County s Bankruptcy Counsel a letter indicatirg
the following
I Under the County s confirmed Plan of Adjustment all Net litigation Proceeds must
be distributed in accordance with the agreed upon distribution outlined in Section
VI D of the Plan regardless of whether those proceeds are initially received by the
County Net Litigation Proceeds are defined to be all Litigation Proceeds after the
deduction of Litigation Costs, and Litigation Proceeds are defined to include any cash
received or recovered from anyone including but not 1 nuted to penalties
on account of any Pool-Related Claims of the County or whether by way of
settleme^t litigation or othenx„sP
2 Under terms of the Comprehensive Settlement Agreement (` CSA") between the
County and the Pool Participants Litigation Proceeds are si larly defined to include
"any cash received or recovered from anyone on account of Pool Related Claims
of the County or any Pool Participant which assigned its claims to the County
whether by way of settlement litigation or otherwise
3 The CSA then requires the County to distribute most Litigation Proceeds after
deduction of Litigation Costs to the Schools and other Poo Participants Any
balance of funds could then be retained by the County
CITY nF IRVINF nNF river`CFNTFR PL07A P n RAY IGA75 IRVINF PAI IFnRIJIA o97v4 l756i 79A-Annn
Page 2
It will be my position that the $27 million which will soon be paid to the County by
Merrill Lynch, falls squarely within the definition of Litigation Proceeds in both the
County's Plan of Adjustment and the Comprehensive Settlement Agreement The OCIP
Comnuttee's Legal Counsel together with me representing the cities interests, will fight
to see that the $27 million in funds be turned over to the Representative (Thomas W
Hayes)for distribution under the Plan of Adjustment
I will keep you all posted as I learn more If anyone has questio is, please give me a call
1
PAUL B JR
City Manager
cc Mr Paul Glassman
MINUTES
CITY COUNCIUREDEVELOPMENT AGENCY
Council Chamber, Civic Center
Huntington Beach, California.
Friday, May 12," 1995
A videotape recording of this m eting
is on file in the Office of the City Clerk
Mayor Leipzig called the adjourned regular meetings of the Ci ty Council and.Redevelopment
i
Agency"of the City of Huntington Beach to order at 2:00 p.m. Room B-8, Civic.Center. .
CITY COUNCIUREDEVELOPMENT AGENCY ROLL CALL
PRESENT: Harman, Bauer, Sullivan, Leipzig, Dettloff,.Green 'Garofalo
ABSENT: None,
Communication From City Administrator Regarding City Administrator's Abstention From .
Participation In All Closed Sessions Relative to the Citv of untin ton Beach v. Merrill L nch
Pierce Fenner and Smith .
The City Administrator distributed a memorandum to Council a had written dated May 12, 1995 "
regarding his past'abstention and continued'abstention from attendance at all closed sessions of
the City Council regarding City of Huntington Beach v. Merrill Lynch Pierce.Fenner and Smith,
due to the fact that his son was employed by that firm.
CLOSED SESSION
The following closed sessions were called to consider:
' Closed Session - City Council pursuant to Government Code ection 54956.9(A).to confer with its
attorney regarding pending litigation which has been initiated lormally and to which the city is a
party. The title of the litigation is City Of Huntington.Beach v. Merrill Lynch Pierce Fenner and ;
Smith; Incorporated et al. United States.District Court Case No. Sacv 95-189 Lhm(Eex).
(120.80)
-Closed Session- City Council pursuant to Government Code ection 54956.9(A) to confer with.its
attorney regarding pending litigation which has been.initiated formally and to which the city is a
party. The title of the litigation is in regarding to Orange County; U.S. Bankruptcy-Court Case
No. Sa 94-22272 Jr administratively consolidated with Case No. Sa-94-22273 Jr. (120.80)
2 '
Page 2 - Council/Agency Minutes - 05/12/95
RECONVENE
The Mayor reconvened the meetings of the City Council and Redevelopment Agency in the
Council Chamber at 4:00 p.m.
PUBLIC COMMENTS
There was no one present to-address Council.
Motion For Need To Take Action On Modifications To The Orange County.Bankruptcy
Comprehensive Settlement Agreement Pursuant To Government Code Section 54954.2(b)(2)
-Approved
Deputy City Attomey De La Loza informed°Council that following Monday's'meeting regarding the
Comprehensive Settlement Agreement in the Orange County.Bankruptcy Case, the City
Attorney's Office had been given a letter dated May 5, '1995 from Patrick Shea, Pillsbury, Madison
and Sutro, Attorneys at Law, which indicatedthat there were several pages in the Comprehensive
Settlement Agreement that contained=modificatioris Deputy City Attorney De La Loza stated that
together with that letter was an announcement of;the deadline.today of 5:00 p.m. He stated that
this was the first opportunity to present the�modifcations to the City Council and he was
requesting that Council take a vote to find,that th'e`need to take action arose after the posting of
the Agenda.
On motion by Sullivan, second Green, Council made a determination that the need_to take action
on the issue of the Orange County Bankruptcy Comprehensive Settlement'Agreement arose
subsequent to the agenda being-posted as specified in'Govemment Code Section 54954.2(b)(2).
The motion carried unanimously.
(City Council) MODIFICATIONS TO THE ORANGE COUNTY BANKRUPTCY
COMPREHENSIVE SETTLEMENT AGREEMENT-APPROVED - LETTER FROM PILLSBURY,
MADISON AND SUTRO
9
A communication had been provided to Council from the City Attorney regarding.,whether to
approve the modifications to the Orange'.'County_Ban Comprehensive Settlement.
Agreement.
Deputy City De La Loza reviewed the proposed-changes to the Settlement Agreement which had
been provided to Council. He stated for the record:tk;t Page No. 8 is in the City Attorney's Office
view.the most�significant change. He reviewed the significance of the,substitution at the top of
the page (the third full line) which refers to Section-11G"rather"than Section 11F and stated its
relevance because it explains what constitutes litigation proceeds relative to Option A takers. He
.reported further on'the-significance of the change'.'
250
"Page 3 C uncil/Agency Minutes- 05/12/95
A motion was made by Leipzig, second Green, that Council ap rove=difications to the text'of
the County Settlement Agreement as recommended by Patrick Shea, Pool Participants
Committee Attorney, and authorize the Mayor and City.Clerk tc execute Page No, 3 of the
May 5, 19951etter from Patrick Shea consenting to the modifications so'that it can be transmitted
immediately. The motion carried by the following roll call vote:
AYES: Harman, Bauer, Sullivan, Leipzig, Dettloff, Green, C arofalo
NOES: None
ABSENT: None
Deputy City Attorney De La Loza stated that he wished the record to reflect that he is handing the
Mayor the Consent to Modifications for his immediate signature and then the City can send its
courier to the Costa Mesa Offices forthwith.
(City Council) ORANGE COUNTY BANKRUPTCY- SELECTION BY THE CITY OF
SETTLEMENT OPTION A OR OPTION B - CONTINUED TO MAY 15 1995
Mayor Leipzig announced that Council in closed session had determined that Council
consideration of the selection by the city of Settlement OptionA or B relative to the Orange
County Bankruptcy Agreement would be continued to the May 15, 1995,Council meeting and that
no action would be by Council at this meeting.
The City Administrator stated that this matter would be carded forward to the May 15; 1995
Agenda for consideration in open session,for a vote of'Counci .
Mayor Leipzig requested to be excused from the remainder of the City Council meeting.
CITY COUNCIL INITIAL CONTRACT FIRE SERVICES PRO OSAL TO THE CITY OF
WESTMINSTER AUTHORIZED BY CITY COUNCIL
The City.Clerk presented a communication from the Fire Chief regarding the request for proposals
issued by the-City of Westminster for provision of contract fire services to their city.
Tom Huntley, Fire Department Division Chief/Operations Offic r, presented a slide report.and
made an extensive presentation to Council regarding the City bf Huntington Beach Initial Contract
Fire Services Proposal to the City of Westminster. He stated that the, Fire Department was
recommending Alternative No. 1.
Discussion was held.betweeW.11 sion Chief.Huntley and Co "cil regarding aspects of the
proposed alternatives and how'fh City of Huntington Beach wouldbenefit, the effects such as if
the Orange County Fire Authority received the bid award, the current Joint-Powers Agreements'
between cities and absorption of their employees.
Councilmember Bauer presented questions regarding political problems in Westminster relative to-
the Westminster Fire Department and the Westminster City C uncil.
. : 251
Page 4 - Council/Agency Minutes - 05/12/95
Tom Shaw, Fire Captain Gothard Station, reviewed-our city's history between the Fireman's
Association and Management which had developed to professional status. He stated the
Huntington Beach Fire Department has been involved from the beginning'and wanted the
Westminster Fire Department-to assume th' culture of the Huntington Beach Fire Department.
Councilmember Garofalo presented several questions regarding personnel, paramedics,
coverage and what he perceived-to be the Qrange:County Fire Authority not being a good choice.
Richard Kaump, FireMed Coordinator, reported on revenue procedures, including membership in
Fire-Med and billing mechanism.
The City Administrator stated that following the�selection he believed the actual contract would be
refined and negotiated.
The Deputy City Attorney Sangster answered Councilmember Harman's question regarding how
binding the proposal is.
The City Administrator reported on the two tiering of employees in response to Councilmember
Sullivan. He.stated that he would meet with the City Attorney and return with`-a response to
Council on Monday.
ADJOURNMENT - CITY COUNCIUREDEVELOPMENT AGENCY
The Mayor adjourned the regular meetings of the'City Council and the Redevelopment Agency of
the City of Huntington Beach to Monday,, May 15:1995.at 5:00 p.m. in the Council Chamber, Civic
Center, Huntington Beach, California..
Clerk of the Redevelopment Agency and City
Clerk and ex-officio Clerk of the City Council
of the City of Huntington Beach, California
ATTEST:.
-City Clerk/Clerk • 'Mayor/Chairman
2'5'2
Page 22 - Council/Agency-Minutes :,05/15/96
ADJOURNMENT - CITY COUNCIUREDEVELOPMENT AGONCY
The Mayor adjourned the regular meetings of the City Coun lil`and the Redevelopment Agency of
the City of Huntington Beach,to Monday, May 22, 1995, at 5: 0 p.m. in Room B-8, Huntington
Beach, California. (Regular meeting)
Clerk oft a Redevelopment Agency and City
Clerk and ex=officio Clerk,of the City Council
of the Cit of Huntington Beach, California
ATTEST: -
City Clerk/Clerk Mai or/Chairman
279
Page 21 - Council/Agency Minutes - 05/15/95
City Council) ORDINANCE NO. 3284 ESTABLISHES INVESTMENT ADVISORY BOARD -
ADOPTED (110.10) - "AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING
THE HUNTINGTON BEACH MUNICIPAL CODE BY ADDING NEW CHAPTER 2.110 ENTITLED
'INVESTMENT ADVISORY.BOARD'.'" Introduction approved on'5/1/95.
(City Council) ORDINANCE NO. 3283 - CONTROL OF VEHICULAR CRUISING - ADOPTED
(6407.10) -"AN.ORDINANCE. OF THE CITY OF HUNTINGTON BEACH ADDING CHAPTER 10.22
TO THE HUNTINGTON BEACH MUNICIPAL CODE PERTAINING TO CRUISING." Introduction
approved on 5/1/94. _
(City Council) ORDINANCE NO. 3282 - CURFEW FOR MINORS -ADOPTED (640.10) - "AN
ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 9.68 OF THE
HUNTINGTON EACH MUNICIPAL CODE PERTAINING TO CURFEW FOR MINORS."
Introduction approved on 5/1/95.
RECESS
-_ The Mayor called a recess.of the City Council and Redevelopment Agency.
CLOSED SESSION
The Mayor called a recess of the City Council and Redevelopment Agency for the purpose of
considering the Closed Session items.
RECONVENE
The Mayor reconvened the meetings of the City Council and Redevelopment Agency in the
Council Chamber
2'78
Page 20 --Council/Agency Minutes.- 05/15/95
The City Clerk announced aAlate..communication from the Pub is Works Director dated
May,1}5,'1:995 transmitting"a Revised.License Agreement for 1 stallation of a 36"1ll/aterline. .This
communication had also been announced earlier in the meetir g prior to the Public Comment'-,_
portion of the agenda.
The Public`Works Director presented a staff.report.
Discussion was held by Council and staff regarding the license agreement;"well sites; concerns of.
neighbors regarding construction of the pipe line, construction conditions contained,in the license
agreement, increased costs of Municipal Water District water, ne time payment of$10,000, and
street re-construction to.meet requirements of Huntington Beach standards.
The City Attorney'reported regarding the insurance requireme is for the City of Newport Beach
and.a change in the agreement to reflect that Newport Beach i self-insured-for the.first
,$1,000,000.
Don Webb, Newport Beach Public Works Director, reported regarding the insurance requirements
and proposed projects.
The City:Attorney read a,substitute clause for the insurance re uirement including a'self-
insurance clause for the first $1,000,000:
In response to Counciimember'Gre'en's question, the Newport each Public Works Director
reported regarding the sequence of events of the proposed corI'struction.
A.motion was made by Dettloff, seconded by Green, to approv the amended "Terms and
Conditions" regarding the insurance requirement as stated by the City Attorney, contained in the
.;License Agreement between the City of Newport Beach and.th City.of Huntington Beach and
enter into.said License Agreement.with the City of Newport Be ch for the installation and
maintenance of a 36" water`trans mission pipeline with the City f.Huntington Beach public right-
of-way as shown on Exhibit A of said agreement and authorize execution by the'Mayor and City
Clerk. The motion carried by unanimous vote. .
ORDINANCES ADOPTED`
The.City Clerk presented Ordinances No. 3248, 3284, 3283, a d.3282 for Council introduction.
A motion_ was made by Green, seconded by Sullivan, to adopt t e following ordinances after,
reading by title. The motion carried by unanimous vote.
(City Council ORDINANCE NO. 3248 - CODE AMENDMENT O. 93-5/B - CARTS AND
KIOSKS -.ADOPTED (640; .10) - "AN ORDINANCE OF THE CI OF HUNITINGTON BEACH
.. ,AMEN DING THE HUNTINGTON BEACH MUNICIPAL CODE A D THE DOWNTOWN.SPECIFIC
PLAN TO.PERMIT CARTS AND KIOSKS." Public Hearing was eld'on,11/21/94 and introduction
approved on 5/1/95.
V
Page 19'-`Council/Agency Minutes - 05/16/95
(City Council) COUNTY-WIDE COORDINATED RADIO COMMUNICATION SYSTEM AND JOINT
POWERS AGREEMENT.- BETWEEN'COUNTY-OF ORANGE AND JOINT CITIES -'COUNTY
800 MHz COMMUNICATIONS SYSTEM.'-APPOINTMENTS TO EXECUTIVE-BOARD - "
APPROVED (600.40)
The City Clerk presented a communication from Fire Chief informing Council the Orange County
Board of Supervisors has given authorizationto proceed with the 800 MHz communications .
system,and to enter into a contract with Motorola. This contract will-be assigned to an 800 MHz
Joint Powers Agreement upon its formation. 'Appro'val of the Joint Powers Agreement will provide
a purchase and financing vehicle for the joint'Cities/County 800 MHz radio system. The proposed
800 MHz system is an 81-channel radio communications system enabling mutual cross-
comfnunications among' 100 city and county law;;public works and fire operations.
The Police Chief presented a staff report. He presented a video entitled 800 Mhz Radio System
prepared in cooperation with the Orange County Chief's and Sherrif's Association that explains.
:-the history of the project.and some,ofthe technical aspects.
Captain Gildea reported regarding the financing plan for the radio system and stated that for the
past four years the city has been budgeting ($460,000);a year'towards the 800 Mhz Radio
System with a total of$2,200,000 set aside which is currently in the County Pool.'-
The Police Chief reported regarding the.ability of the'Joint Powers Agreement to borrow money at
a lower rate of interest:.
A motion was made by Green, seconded by Dettloff, to:
1. Approve the 800 MHz communications Law/Public Works/Fire,'Joint Powers Agreement
,and authorize the Mayor andCity'Cle`rk to execute the Joint Powers Agreement for the
...,Orange,County.80O Megahertz'Communicati6ns System, and
2. Authorize appointment of Fire Chief Dolderas the-800 MHz Executive Committee member
and Police Chief Lowenberg.as alternate Executive Committee member, and
3. Agree to purchase police and public works radios per the Joint Powers Agreement for the
Orange County 800 Megahertz Communications System.
The motion carried by unanimous vote.
(City Council) LICENSE AGREEMENT - CITY OF NEWPORT BEACH - INSTALLATION OF 36"
WATERLINE IN HUNTINGTON BEACH APPROVED AS AMENDED (600.10)
The City Clerk presented a communication from the Public Works Director inform_ing Council that
the City..of Newport Beach desires,to construct a`36"water transmission pipeline within the City of
Huntington Beach public right-of-way (8'rookhurstlBanning) to access their future domestic '
ground water wells in Fountain Valley.
2.'7 5
4 Y `
Page,18 - Council/Agency Minutes 6 ill5/95
Discussion was held by and staff regarding legal juri diction'of the California Coastal
Commission, meetings'.with the landowner and county,.`resol tion of sanitation, water and
policing, land use planning, and the proposed agreement wit the Fire Department and Library
Services Department-and the reasons regarding the.need fo a consultant.
A motion was made by Dettloff, seconded by Green, to dieec staff to formulate with the City
Council those areas of concerns the City of Huntington Beac has regarding Bolsa Chica, to meet,
with the Coastal Commission staff to verify which of these co cerns are within the Coastal
Commission's jurisdiction; to meet with the landowner and-th county to go over specific concerns
` to see if any of those can be resolvedand to come back ith a specific amount and a
recommended consultant's name by June 19, 1995. The mo ion carried by unanimous:vote.
(City Council)FINAL PROPOSAL TO PROVIDE FIRE, EMI IGENCY.MEDICAL AND
AMBULANCE SERVICES TO CITY OF WESTMINSTER -APOROVED AS AMENDED (510.50)
The City.Clerk presented a communication from the fire Chie regarding a final proposal to
provide fire , emergency medical,and ambulance services to t e City of,Westminster. A final
proposal must be submitted by May 18, 1995 to be considere for the contract award.
The City Administrator reported regarding a proposed amendr ient to the proposal thafwould
make the city's proposal comparable on quality of service and number of people with other
agencies submitting proposals.
Tom Huntley, fire Department Division Chief/Operations'.Offic rand Acting Fire Chief, reported.
Battalion Chief Chuck Reynolds presented.a staff report using slides,regarding the proposed
amendment to the proposal, increased response times, loss o immediate back-up, reduction of
Central Net Revenue and Services, increase future costs, se ice and cost comparison.
Discussion was held by Council and staff regarding status of entral Net, the ambulance
program, reduction in administrative fees, assimilation'of Wes minster Fire Personnel, and
retirement benefits for-Westminster Fire Personnel.
A motion was made by Garofalo, seconded by Green, to auth rize the Fire Chief to submit a final
proposal for contracting.fireservices to the City of�Westminstelr and further direct staff,to reduce-
the alternative bid price ,by an amount equal to $86,700 to be taken`from the administrative fee
and to further request staff to deal with the retirement supplement issue to the s"atisfaction'of-the
.:..Council which means tiering it and eliminating it,from,the-new hire pool for this-proposal: The
motion carried by unanimous vote.
Motion For Meeting To Proceed Past 11:00 P.M. -Approved
On motion by Sullivan, second Leipzig, Council approved proc eding past the 11:00 p.m.
deadline In order to finish the agenda. The motion carried by nanimous vote.
(77)
Page•.17 - Council/Agency Minutes - 05/15/95
(City Council) APPOINTMENT - MOBILE HOME REVIEW COMMITTEE -KENNETH POLLOCK
-ACCEPTANCE OF RESIGNATION - JACK BOWLAND -APPROVED` (110.20)
The City Clerk presented a communication from the=Assistant City Administrator, regarding the
Mobile Home Review Committee Appointment.
Councilmember Bauer stated that he wanted to publicly acknowledge the'services of Jack
Bowland as an.outstanding contributor:and that Mr' Bowland had served on three boards
simultaneously.
A motion was made by Bauer, seconded by Dettloff, to appoint Kenneth A. Pollock,'a resident of
the.city, as,an at large member to the Mobile Home=Review Committee, to fill the vacancy created
by the resignation of Jack Bowland. The motion carried by unanimous vote.
(City CouncilYTRASH SCAVENGING = CODE ENFORCEMENT APPROVED (630.10)
The City Clerk presented a communication-from Director of Public Works regarding trash
scavenging which,has become a serious problem in,Huntington Beach because the value of
recyclable materials has increased making it profitable for"professional" scavengers employing
large numbers of people to scavenge neighborhoods.
The Public Works Director presented a staff report:
The Police Chief reported at the request of Councilmember Green regarding enforcement of trash
,scavenging and that the members,of:the.Volunteer Police Program are trained to observe and
report.
A motion was made by Garofalo, seconded by.Green, to direct staff.to.vigorously enforce*existing
codes and regulations. The motion carried by unanimous vote.
(City Council) REQUEST FOR APPROVAL TO HIRE CONSULTANT TO ASSIST IN LOBBYING
COASTAL COMMISSION - LAND USE PLAN FOR BOLSA CHICA -APPROVED AS AMENDED
(320.45)
The..City Clerk presented a communication,from the-Director of Community Development
requesting approval for authorization to hire a,consultant to assist the City.in lobbying the
California Coastal.Commission to address the City's concerns.on the Land Use Plan for the'Bolsa
Chica.
The City Clerk announced a late communication from the City Administrator dated May 15, 1995
entitled Modified Proposal for Fire, Emergency Medical; and Ambulance Services to the.City-of
Westminster. This communication had`also been'announced earlier in the meeting prior to the
Public Comments portion of the agenda. .•
The Community Development Director presented a staff report. She stated that the last
opportunity for the city to state its position will be at the California Coastal Commission hearing.
Page 16 Council/Agency Minutes - 05/15/95
.(City Council PROPOSED TRAFFIC SIGNAL INSTAL LATI N/ MODIFICATION PRIORITY LIST--
APPROVED - REPORT REQUESTED R€: CRITERIA ANb FORMULA (580A0)
The City Clerk-presented a communication from the Public orks Director regarding.the
proposed Traffic Signal Installation and Modification Priority "ist.. `
Councilmember Bauer requested that a study session with tt e Transportation Commission and
City,Council be held in the future prior to preparation of the I raffic Signal Installation and
Modification Priority List and to study issues such as why sig ials are not placed at busy
intersections just because no accidents have occurred.
Di,scussion.was held by Council and staff. The Mayor stated that the'Traffic Commission has,
spent two years on this issue and that there is no easy answer.
Councilmember Harman'stated that he would like to'meet wit� Councilmember Bauer and staff._
He stated that he does see how,Slater and Graham should ba on the list . Councilmember
Sullivan stated`that'he believed the full Council could benefit from a brief presentation from-the,
Traffic Engineer.
Jim Otterson, Traffic Engineer, presented a staff report.: He poke regarding warrants,which-.take
into account school-age pedestrians going through intersecti ns, trafficvolume, etc., He stated
that there is no state law:on priorities
Councilmember Dettloff spoke as'Liaison to the Transportation Co_mmissionthat'this commission
spends an enormous amount of time on just this issue.
Ray Silver, Assistant City Administrator, reported that the pub is was involved in,the priority review
process on-the Transportation Commission level before the b dget was approved.
A-motion was made by Garofalo, seconded by Leipzig, to approve the Proposed Traffic Signal.
' Installation/Modification Priority List (1) Garfield/Florida, (2) G gthard/Heil.(Mod`), (3)
'Gartield/Delaware,.(4) Beach/Taylor, (5) Newland/Adams (Mo&), (6) Goldenwest/Heif(Mod*), (7) `
Yorktown/Florida, (6) Slater/Graham, (9) Palm/17th, (10) McFAdden/Graham *(Modified). With
a caveat that the next go-around with signalization installation be made a study session for the
next process with the Council and"the Transportation Commis ion:
An amendment.to"the motion was made by Sullivan, accepted by Garofalo and Leipzig, to , .
request a staff report on the criteria and explanation of the formula used to'compile the Priority
+ List.
The motion carried as amended, by the following roll call vote:
AYES: Sullivan, Leipzig, Dettloff, Green, Garofalo
NOES: Bauer, Harman
ABSENT: None
'2'7 3
Page 15-.Council/Agency Minutes 05/15/95
A,motion.was made by Bauer, seconded by Sullivan, to (1) accept the street improvements
completed by Excel Paving Compa,ny•at a final construction cost of$197,001-.24; and (2).
authorize the City Clerk to file a Notice of Completion and instruct the City Clerk's office to release
the ten percent (10%) retention money after the normal thirty-five (35) day retention period,
receipt of the Declaration of Satisfaction of Claims, Certificate of Compliance, and the required
guarantee bond in the amount of 100% of the final cost,.guaranteeing the improvements for a
period of one year.,. The motion carried by unanimous.vote. ,f
(City Council) NOTICE OF COMPLETIONr= HEIL AVENUE TRAFFIC SIGNAL AND STORM
DRAIN IMPROVEMENT PROJECT - KEN THOMPSON INCORPORATED - CC-905 -
APPROVED (606.55)
The City Clerk presented a communication from the,Public.Works-Director regarding the Notice of
Completion for r the Heil Avenue Traffic'Signal and,-Storm Drain-improvements
In response to Councilmember Bauer's question, the.Public Works Director stated that the cross
street was Heil Avenue and Newland Street.
A'motion was,made by Bauer„ seconded by Sullivan; to (1) accept the improvements of Cash
Contract 905, Heil Avenue Traffic Signal and Storm Drain-Improvements, and authorize the City
Clerk to file the Notice of Completion; and (2) approve the total project cost of$320,443.68. The
motion carried.by the following roll call vote
AYES: Harman, Bauer, Sullivan, Leipzig, Dettloff, Green, Garofalo
NOES: None
`ABSENT: None
(City Council) LEASE AGREEMENT -OCEAN VIEW SCHOOL DISTRICT - OAK VIEW
LIBRARY BRANCH -APPROVED (600.10) .
The,City,.Clerk presented a communication;from Library Services Director regarding.approval:of a
lease agreement between the city and•Ocean View School District for.the Oak View Library
Branch. The lease agreement needs to be approved before the Library begins operating the
newly completed Oak View Library Branch.
Councilmember Sullivan spoke regarding the staffin.g-.of thelibrary branch, to be provided through
grants and volunteers and the Library Director stated this was correct.
Councilmember Bauer volunteered his services to the,community-members who have expressed
interest in making planter boxes and that.perhaps donations to this project could be obtained.
A motion was made by Bauer, seconded'by Sullivan, to approve and authorizerthe Mayor and
City Clerk to execute the Lease Agreement between the city and Ocean View-School,District.
The motion carried by unanimous vote.
2'7:2
Page 14 - Council/Agency Minutes 0511.5/95
Cit Council BID AWARD - SOUTH BEACH RESTROOM REA NUMBER ONE =CHAARANI
'AND ASSOCIATES - CC-908 PARKING AUTHORITY FUN S APPROVED (600.80) - (1)
Approved the low bid of$252,000 submitted by Chaarani an Associates for the construction of,
the South Beach'Restroom Number One; and (2) authorized he Public Works-Director to expend
$279,200 to cover contract costs of $252,000, estimated con truction Change Orders of'$25,200,
and anticipated,supplemental expenditures of$2,000; and.(3 approved an amendment to the
current year budget by appropriating $279,200 into account number E-CX-PC-908-6-31 for the '
South Beach Restroom Area Number One.from the Parking Authority fund.
(CitV Council' `SUMMARY VACATIOW-.WATERLINE EASEIV ENT - RESOLUTION NO 6692
538Z BOLSA AVENUE -APPROVED (800.50) -Adopted Re 5olution No. 669"2 "A
RESOLUTION-OF THE CITY COUNCIL OF THE CITY OF H NTINGTON BEACH ORDERING,
TH'E SUMMARY'VACATION OF A WATER LINE EASEMENT ON THE SOUTH SIDE OF BOLSA
AVENUE,.WEST OF SPRINGDALE STREET." Requested by AEW/LBA Acquisition Company,
LLC.'
(City.Council) AGREEMENT EMPLOYMENT SYSTEMS, INCORPORATED -
TEMPORARY PERSONNEL FOR BUDGETED INSPECTION MANAGER POSITION
pP
COMMUNITY DEVELOP.MENI- DEPARTMENT-APPROVED 600.10 `-A roved and
( )
authorized the Mayor and City Clerk to execute an Agreement to Provide Staffing Services
between the city and Employment'Systems, Incorporated,in a i amount not to exceed $50,000, to
'lease temporary', personnel, Inspection Manager position.
(Citv Council ADJUST'WATER RATES -SUBPOTABLE WATER IRRIGATION RESOLUTION
NO. 6693 -ADOPTED (1000.20) -Adopted Resolution No. 6 593 - "A RESOLUTION OF THE
CITY COUNCIL'OF THE CITY OF HU'NTINGTON BEACH AD LISTING WATER RATES
RELATING TO SECTION 14.12.040 OF THE HUNTINGTON BEACH MUNICIPAL•CODE." The.
resolution waives'the monthly minimum charge on second met rs installed for the purpose of
irrigation with subpotable water until such time as subpotable ater is available
.(City Council) NOTICE OF COMPLETION GOLDENWEST TREET WIDENING PHASE III -
WALNUT AVENUE TO YORKTOWN.AVENUE - EXCEL PAVING COMPANY - CC'911 -
APPROVED (600.50)
The City Clerk presented a communication from the.Public Wo ks'Director regarding.,Phase III, of
the Goldenwest Street widening from Walnut Avenue to Yorktc wn Avenue:" '
Restriping Of Goldenwest Street
The Public Works Director stated he would research Councilor tuber Bauer's..question regarding
the restriping of Goldenwest Street.
2'71
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Page 13--Council/A'gend)j Minutes - 05/15/95
CONSENT CALENDAR - ITEM APPROVED-
On otion by Green, second Sullivan,the following Consent Calendar items=were approved as
recommended, by the.following roll-call vote: > '
AYES: Harman, Bauer, Sullivan, Leipzig, Dettloff, Green, Garofalo '
NOES: None
ABSENT: None
(City Council/Redevelopment Agency) MINUTES - APPROVED AND ADOPTED- Approved
and adopted minutes,of the Council/Agency regularmeetings.of,March,6, 1995 and
March 27, 1995 as written and on file in the Office of the City-Clerk
(City Council) RESIGNATION OF.LIBRARY BOARD OF TRUSTEES MEMBERS TWO
POSITIONS VACANT/TO BE POSTED -APPROVED (110.20) - Directed the City Clerk to post
public notice that the terms of Library Board of Trustees members Clare Hanson and Hal
MacDonald has expired. $`
Councilmember-Bauer stated that he wanted to thank two Library..Members Clare Hanson.and Hal
MacDonald publicly and acknowledge their support to the Library. .
(City Council) CITY GYM AND POOL RENOVATION PHASE ONE - PLANS AND
SPECIFICATIONS - CALL FOR BIDS- CC-902 (600.80) - (1) Authorized the Public Works
Director.to solicit bids for the City Gym and Pool Renovation, Phase One,.CC-902, contingent on
'city staff approval of plans and specifications; and (2).approved the sample construction contract
subject to award.of the contract to the Council approved.lowest responsible bidder'. .
(City Council) NOTICE OF COMPLETION -.:MODIFICATION OF TRAFFIC SIGNAL - DE LA
CRUZ CONSTRUCTION INCORPORATED`-MAGNOLIA STREET AND INDIANAPOLIS
AVENUE - CC-915 -APPROVED (60055) (1) Accepted the improvements of Cash Contract
No. 91.5, modification.of a traffic"signal at Magnolia;Street and Indianapolis Avenue,:and
"authorized the.City Clerk to file the Notice of Completion and (2)..approved the total project_cost of
$106,844.
(City Council) NOTICE OF COMPLETION-TRACT NOi 13569 -PACIFIC COAST`HOMES
WEST OF LAKE STREET AND SOUTH OF PARK STREET (420.60) - (1) Accepted the
improvements constructed and dedicated-forpublicuse with Tract No. 13569; and, (2) released
"Set Aside Letter" No. 09071-222-01217,; the security furnished for Faithful Performance, Labor
..and Material, and Monuments;.and.(3) accepted;Guarantee:and Warranty-Bond No. U80 51 20-
1203; the security furnished for guarantee and warranty of improvements,.*and instructed the City
Clerk to file the bond with the City Treasurer; and (4) instructed the City Clerk to notify the
developer, Pacific Coast Homes, of this,action, and the City Treasurer to notify the bank, Bank of
America, of this action. � .�
Page.12 - Council/Agency Minutes 0t5/15/95
(City Council) PUBLIC HEARING -ZONING CODE AMENDMENT NO. 95-3 - INTRODUCTION
OF ORDINANCE NO. 3285 - FLOODPLAIN OVERLAY DISTRICT TO CONFORM TO FEDERAL
NATIONAL FLOOD INSURANCE PROGRAM REQUIREMENtIS
The Mayor announced that this was the day and hour set for Public Hearing to consider the .
following:
APPLICATION NUMBER: Zoning Code'Amendment No. 95-
APPLICANT: City of Huntington Beach
REQUEST: To amend Chapter 222, Floodplain Overlay Distract, t o conform to the Federal
National Flood Insurance Program requirements
LOCATION: Applicable to all properties with a designated FP , FP2, or FP3 Overlay
The City Clerk presented Ordinance No. 3285 - "AN ORDINA CE OF THE CITY OF
HUNTINGTON BEACH AMENDING THE HUNTINGTON BEA H ZONING AND SUBDIVISION
ORDINANCE BY AMENDING CHAPTER 222 THEREOF RE TING TO FLOODPLAIN
OVERLAY DISTRICT (CODE AMENDMENT NO. 95-3).
Legal notice as provided to the City Clerk's Office by,staff had been published, posted.and
mailed.
The Mayor declared the public hearing open.
There—being no'one present to speak on the matter and there eing no protests filed.either oral or
written, the hearing was closed by the Mayor.
A motion was made Green, seconded by Dettloff, to approve t e Planning Commission and staff
recommendation to approve Zoning Code Amendment No. 9. -3, amending the floodplain
provisions; with findings as outlined'in Attachment No. 1'to the RCA dated May 15, 1995 and
approve introduction, after reading by title, of Ordinance No. 3285. The motion carried by
unanimous vote.
CONSENT CALENDAR - ITEMS REMOVED
The following items were requested by Councilmembers to be r moved from the Consent
Calendar for separate consideration: (Sullivan the Lease Agre ment with Ocean View-School
District, (Bauer Notice of Completion, Goldenwest Street wide ing, Walnut Avenue to Yorktown
Avenue, Notice of Completion, Heil Avenue traffic signal and st?rm.drain improvement project,
proposed traffic signal installation and modification priority list, E ppointment of Mobile Horne
Review Committee.
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Page_11 - Council/Agency Minutes - 05/15/95
Legal notice as provided to the City Clerk's Office by staff had been published and posted.
The Mayor declared the public hearing open.
There being no one present to speak on the matter and there being no.protests filed either oral or
written, the hearing was closed by the Mayor.
A motion was made by Garofalo, seconded by Harman, to open the public hearing and continue.
The City Clerk clarified the recommended action.
The motion was withdrawn.
A motion was made by Green, seconded by Garofalo, to authorize the Street Superintendent to
proceed with the abatement of said nuisance. The motion carried by the following roll call vote:
AYES: Harman, Bauer, Sullivan, Leipzig, Dettloff, Green, Garofalo
NOES: "None
ABSENT: None' :.
(City Council)PUBLIC HEARING - MASSAGE ESTABLISHMENT AND MASSAGE TECHNICIAN
FEE INCREASE - CONTINUED OPEN TO JUNE 19, 1995 (340.20)
The Mayor announced that this was the day and hour`set for the continuance of a Public Hearing
from May 1, 1995 to consider revisions to the Massage Establishment and Massage Technician
Fee Schedule. The City is proposing ' revision as,follows
1. Massage Technician Application (HBMC 5.24.090),, . $125
2. Massage Technician, Change of Location $ 50
3. Permit for Massage Establishment Operation $500.
4. - Annual Renew (Technician).' $ .75
5. Annual Renewal (Establishment) $250.;
Legal notice as provided to the City Clerk's Office by staff had been published and posted.
The Mayor declared the public hearing open.
There-being°no one present,to speak on, the matter and there being no protests filed either oral or
written, the hearing was continued--open by the Mayor.
A motion was made-by Green, seconded by Garofalo, to open the public hearing'and continue
open to June 19, 1995'. The motion carried by unanimous vote.
268
MINUTES,
CITY COUNCIUREDEVELOPMEN AGENCY
5:00 P.M:: Room B-8
6:30 P.M.`- Council,Chamber.
Beach, California-
Huntington .
Monday, May 15, 1995
An audio tape recording of.this meeting
As on file in the Office of the-City Clerk,..
Mayor Leipzig called the,regular meetings of the City Council. nd th'e Redevelopment Agency,of
the City of Huntington Beach to order at 5:00 p.m, in Room B 8.
CITY:COUNCIL/REDEVELOPMENT AGENCY ROLL CALL
PRESENT: Harman,,Bauer, Sullivan, Dettloff, Green, Garo alo, Leipzig (5:15 p.m.)
ABSENT: 'None'
.
(City Council) STAFF REPORT ON MARINE SAFETY-."MARINE SAFETY DIVISION.
EXCELLENCE IN LIFESAVING"
A.motion was made.by,Harman,.seconded by Bauer,.that the need to take action regarding
Marine Safety arose.after the posting.of the agenda and to put Marine Safety on the agenda.
The motion carried by the following roll call vote: '.
AYES: Harman, Bauer, Sullivan, 'Dettloff, Green, Garofe to
NOES: None
ABSENT:i Leipzig
Jim Engle, .Deputy Director, Beaches,:Recreation, and Devel pment..Division, presented a staff
report regarding a team building consultant and Managemeril Team to improve communication,
more efficient and make better decisions. He stated that the,City of Huntington. Beach is rated
the number one lifesaving°organization in the world:
Captain Steve Seim invited Council to the Marine Safety,Hea quarters fora tour of the operation'
any day'they-Want. He reported during a.slide presentation ntitled Marine Safety Division -
Excellence in Lifesaving.regarding'Marine Safety personnel, obs, goals and objectives. He
stated that the Marine Safety Division had received,many aw rds for lifesaving. .
Request For List Of Awards And Marine Safet' - Council ember Garofalo
Co.uncilmembe'r Garofalo requested a list of all the awards that,Marine Safety.has received:
Page 2 - Council/Agency Minutes - 05/15/95
Lieutenant Steve Davidson spoke regarding staffing levels during the summer and winter, rescue
statistics, and service level reductions.
Lieutenant Mike Beuerlein spoke regarding the creation of the Policies and Procedures Manual.
Lieutenant Greg Crow spoke regarding training of lifeguards, emergency communication signals
used at the beach by the lifeguard personnel and the different types of rescues.
The City Attomey reported that's-be-participated in producing some legislation in conjunction with
the City of Newport Beach which provides a certain measure of immunity for the dangerous
conditions of public property where it is alleged as such as involving beaches and parks.
Discussion was held by Council andsta'ff regarding conferences and budget cuts.
RECESS
The Mayor called-a recess of the'City Council and Redevelopment Agency.
CLOSED SESSION
The Mayor called a recess of the City Council and Redevelopment.Agency for the purpose-of
considering the following Closed Session items:
A communication was received'and distributed to Council from the City Attorney dated
May 15, 1995 regarding Public Statement for the Closed Session relative to a purported'
grievance of the HBMEA and HBMEO.
Closed Session - City Council pursuant to Government Code Section 54957.6 to'meet with its
designated representatives William Osness, Personnel Director, and Daniel Cassidy,,Esquire,
Liebert, Cassidy and Frierson, regarding Labor"Relations Matters - Meet and Confer with the
following employee organizations: `Marine Safety Officers Association (MSOA), Police Officers
Association (POA), Police Management Association (PMA), Municipal Employees Association
(MEA), Municipal Employees Organization (MEO), Huntington Beach-Firemens' Association
(HBFA), Surf City Lifeguard Employees Association'(SCL.EA). (120.80)
Closed Session - City Council 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 City of Huntington*Beach v. Merrill lynch,'Pierce, Fenner and
Smith, Incorporated, et al. 'United States District Court'Case No.-86cv95=189 lhm(eex).
(120.80)
Closed Session - City Council pursuant to Government Code Section 54956.9(a) to confer with its
attorney regarding pending litigation which*has been initiated formally and'to which the city is a
party. The title of the litigation is in regards to Orange County; U.S. Bankruptcy Court Case
No. SA 94-22272 JR administratively consolidated with Case No. SA 94-22273 JR. (120.80)
259
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Page 3 -.Cou 'cil/Agency;Minutes - 05/15/95
Closed Session City Council pursuant to Government,Code S action 54956.9(b)(3)(a) 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. "Anthony and Langford.Art Center Contract.: (120:. 0)
Closed Session - City Council pursuant to Government Code S ction 54956.9)b)(3)(b) to confer
with its city attomey regarding pending litigation. Facts and circumstances, including, but not
limited to; an accident, disaster, incident,`or transactional occurrence that might result 0,1itigation
against the agency and that'are known to a potential plaintiff of plaintiffs, which facts or
circumstances shall'be publicly stated on the agenda,or announced. Potential litigation city v.
PERS. (120.80)
•RECONVENE
The Mayor reconvened the meetings of the City.Council and R development Agency:in the
Council Chamber".at 6:50 p.m,
A videotape recording of this meeting
is on file in the Office of the City. Clerk.
CITY COUNCIUREDEVELOPMENT AGENCY ROLL CALL
PRESENT: Harman, Bauer, Sullivan, Leipzig, Dettloff, Gree , Garofalo
ABSENT: None
PLEDGE OF ALLEGIANCE
The;Pledge'of Allegiance was led by the Mayor.
CITY COUNCIL MEETING DEDICATED TO THE MEMORY O FORMER MAYOR AND
COUNCIL'MEMBER ERNIE:GISLER
Mayor Leipzig announced the dedication of the City Council meeting to the memory of former
Mayor and City.Counicilmember, Ernie Gisler,'.who.recently pa sed.away. Ernie was one of the
earlier Mayors, a long time resident and a.farmer when farming was a major activity`in the city. _
The Mayor spoke regarding former Mayor Gisler's great contributions to our city.
PRESENTATIONS - COMMENDATIONS - RECOGNITION'S
Presentation:; To Mayor Victor Leipzig, the City Council and st ff members,by Jim Davis, `
Executive Director; Orange County Community Housing Coripc ration the 1995 AHA - Affordabl [�(�
Housing Award..
Page 4 Council/Agency Minutes - 05/15/95
Presentation' To Jim Davis; 1994 AHA Affordable Housing Plaza Funding Award, for his
uncommon generosity and Leadership in not only helping in creation of a residence for single
parent students, but also for donating $18,000 to the Scholarship Fund which was established to
enable self-sufficiency. In honor of this.donation, the Scholarship Fund shall now be known as
the Davis Scholarship Fund.
Presentation: By Mayor Victor Leipzig;to Mr."Bob Hollenbeck, Director Health Safety and
Environmental Services.and Jose Valinsky,.Senior Manager for Environmental Service of
McDonnell Douglas Aerospace and to Mr. Terry Ashton, General Manager and Karen Anthony,
Sales Manager, of the Waterfront Hilton+Beach Resort. Winners of the first annual environmental
awards program co-sponsored by the City of Huntington Beach Environmental Board and the
Chamber of Commerce. Both are being recognized for their efforts in Waste Management.
Presentation: To Mayor Leipzig and Bob Goodrich, Chairman of the Huntington Beach Art Center
Foundation, the following presentations for the first Annual City Wide Art festival: $5,000 check
fro m'OTE Directories presented by Don Jankowiak; $3,600'check from Alliance President Sandra
Clouse and Vice President Barbara King. Mike Mudd, announced the upcoming project "Off the
Beach Arts Fest' on Main Street to Acacia Street.
Presentation: By Mayor Victor Leipzig to Public Works Director Les Jones - a Proclamation
proclaiming the week of May 21 through May 27, 1995 as National Public Works Week. There
will be an Open House at the City Yard during Public Works Week.
Announcement of Circus Vargus
Mayor Leipzig introduced the representative for Circus Vargus, Star the Clown.
Star the Clown announced that Circus Vargus is back at Huntington Center this year with shows
daily from Monday, May 15 through Sunday, May 21, 1995. He stated that Councilmember,Dave
Garofalo will be the Guest Ringmaster on Wednesday,.May, 17. .
Late Communications Announced By City Clerk
Pursuant to the Brown Act the City Clerk announced the communications that arrived following
the distribution of the Council Agenda:
'City Clerk's Office - Revised Agenda page No. 11 regarding the Orange County'Bankruptcy,
Selection by the`City'of Option A; or Option'B of Comprehensive Settlement Agreement
City Administrator- Communication dated May 15, 1995 entitled Modified Proposal for Fire,
Emergency Medical, and Ambulance Services to the City of Westminster
City Attorney - Communication dated May;15, 1995 regarding Public Statement for the Closed
Session relative to a purported grievance-of`the HBMEA'and:HBMEO
Page 5 =Council/Agency Minutes - 05/15/95
Public`Works Director- Communication dated May 1.5,' 1995 trCtinsmitting a Revised Licenses
-Agreement for Installation of.a 36" Waterline
Patrick Shea, Law Offices of,Pillsbury, Madison and Sutro Communication'dated May 15, 1995•
regarding the effect upon pool participants of the county's sett)3ment,With Merrill Lynch and
Company under the comprehensive settlement agreement regarding.the,Orange County ..
Investment Pools:
G. Larry Engle, Law,Offices of Brobeck,.Phlegerand HarrisonT Communication dated
• May•15, 1995'to the Law Offices-of Pillsbury, Madison and Sut o, regarding the risk of
disadvantageous settlements by Orange County with Merrill Lynch and other potential defendants ':..
PUBLIC COMMENTS
Mike.McMahon, Manager, Karen,Klaess, and Robert Dennis, Fitness Center
representatives, spoke in opposition to Conditional Use Permil�amily
No. 94-46 for a billiard parlor in the
shopping center located at Warner Avenue and Springdale Str Bet regarding the need for
additional-security guards,.protection for mothers with children who utilize the Family Fitness
Center. problems with drug dealers in the area,and advised Council of the major financial
investment made by the Family Fitness Center in the facility.: F a stated concerns regarding.
security and safety of other tenants and customers in the shop ing center.
Ron Shenkman, Rainbow Disposal Company representative,`s oke in support of the proposed
trash scavenging ordinance and stated that the problem has increased dramatically in the last few
months. He,spoke regarding increased citizen complaints relative to trash scavenging:and stated
that it is a,security issue for residents and an economic issue f r the city as Rainbow Disposal:
recycles.all city trash°and the sale of recyclable materials helps, ,pay for the trash service.
Discussion was held by Council and-Mr. Shenkman regarding he Hazardous Waste Disposal"site.
reduction in operating hours, resident recycling fee, cost to cit of trash scavenging in loss of
revenue., method for reporting trash savaging, and the publicsafety and health issue. Mr.
Shenkman.stated that.in June it is anticipated that the hours w II be reinstated'for six days a week
from 9 a.m. to 2 p.m.
Mr. 'Shenkman gave telephone numbers to report trash scaver ging;for the city Code Enforcement
staff and Rainbow Disposal.
Craig V. Towers stated that,he'was representing three homeowners,associations, Central Park
Estates, Heritage and Central Park Nine. He spoke in'support of the proposed water rate
adjustment that waives the monthly minimum charge on second water meters-installed for the
purpose of irrigation with subpotable water until subpotable water is available:
Cam
'Melvin spoke in support of the proposed trash scavenging ordinance regarding noise
caused.in the early morning, nuisance, loss of revenue to city or recyclables, hazard to children
whose parents send there into dumpsters to dig through,the tr sh. He spoke in support of
stickers on the dumpsters to. increase community'awareness and enforcing the laws regarding
trash scavenging. 262
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Page 6 - Council/Agency Minutes - 05/15/95
Richard Harlow spoke regarding the proposed request for authorization to spend $50,000,to hire
a consultant to assist the city in lobbying the California Coastal Commission to address the city's
concerns with regard to the Land Use Plan for the Bolsa Chica. He stated that he thought the
city's fiscal issues regarding the proposed development had been resolved. He stated that the
Bolsa Chica Council Committee had not addressed the seventeen planning principals for the
Bolsa'Chica and the most recently adopted City Council plan.. He requested that Council not
allocate the funds and direct staff and members of the C�uncil Committee to meet with.Koll'
Company representatives to attempt a resolution.
Wayne King, Committees of Correspondence representative, spoke in opposition to Measure R -
a proposed half cent sales tax on the forthcoming•special election ballot and stated thatthe
county has many other.options such as Plan.B, sell county-owned buildings, lay off non-essential
personnel, reduce salaries, freeze capital spending, and stop paying Board and Commissions
stipends.
Bill Mello, Citizens Bureau of Investigation President and Committees of Correspondence
Member, stated that Huntington Beach is not the safest city,and read from an article he.stated
was from the Orange.County Register Newspaper dated August'18, 1994 concerning crime
statistics in the eight largest cities in.Orange County.
Jim Bridges, Committees of Correspondence representative, spoke regarding Police Department
salaries and presented a slide entitled Current Huntington Beach Police Salaries. Mr. Bridges
read dates of newspaper, articles regarding police'actions. .
Bob Kakuk, Vietnam Vets Reunited Founder, Vietnam Vetsof Orange County Founder,<life.
member of the VFW.
and Am.Vets, stated he had distributed a list of'twenty-one names of
Huntington Beach armed forces members who died.in the Vietnam war. Mr. Kakuk informed
Council he had received the list from the State of California. He informed`Council that with the
twenty-year anniversary of the war last-week, he believed it was time to put these-.names on the
memorial wall at City Hall. He requested:permission to proceed with a plan to add these twenty-
one names to the wall in honor of all the:people,who fought in wars.
Anna Friesen, Allied Arts Board.Chairperson, congratulated Council on the opening of the
Huntington Beach Art Center and spoke in support of the Center's positive effect on teenagers to
engage their minds and creative energy.,'
John Ahatt, William West, Scott,Holbrook and Andrew Marx spoke in support of the Central Park
Disc Golf Course . Comments in opposition to the closure of the course for the purpose of the
GTE Equestrian Classic, included damage to the course and equipment, displacement of the disc
golfers, and alleged illegal transfer of city land to-the Equestrian Center. Mr. Ahart read from
letters which he stated the High Fliers Disc Golf Club had,received from the Community Services
Director.
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Eric Taylor spoke in opposition to the closure of the Central P rk area used'.by disc golfers. He
stated that he believed there was an illegality in the transfer-of public-property Jo the Equestrian
Center pursuant to the City Charter,,Section 612 C. Mr. Taylor spoke in support of the money
from the Equestrian Center going back into Central Park,,not the Art Center. He spoke,in
opposition to the city wanting.to generate income from park la d. He stated that if the Equestrian
Event was to be held in Central Park the money should go towards nature center expansion,
stocking of the lake with fish, a raise for park rangers and mai tenance people, more drinking
fountains, better lighting,-more flora, trees, installation of a re troom, warning signs (regarding
disc golf course), and support of-City Disc Golf Championship in its fifteenth year. He spoke in
support of the people having a say in park improvements.
: In response to Councilrnember Sullivan's question, the Comm nity Development Director reported
regarding the disc golf course.
Eileen Murphy spoke.in-support of the hiring of a consultant to.assist in lobbying the Coastal
Commission regarding the Land Use Plan for Bolsa Chica reg rding the demolition of the bunkers
. and the lack of an agreement with the city to provide services to the,project..
George Arnold thanked,everyone for cleaning up downtown last Saturday. He stated complaints
regarding trash from businesses in the area without sufficient trash cans.-
Barbara D'Amore,$Habitat for Humanity representative, stated that she was on vacation the week
of May 1st when the last City Council meeting was held and unable.to attend. She thanked the
Council for their approval of the Community Development Block Grant and Home Investment .
Partnership Program:
Mark Porter, Huntington,Beach.Tomorrow President, spoke r garding,what he perceived to be the
irony of Mr. Popejoy,and Mr. Gates coming to the last`rmeetin to,request support for:Measure R
and.that the city's requests to the county regarding development of the Bolsa,Chica fell on deaf
ears: He spoke in support of hiring a consultant to assist in lobbying the Coastal Commission .
regarding the Bolsa Chica.
Kerwin Lima, Kiki's Sushi representative, spoke in opposition o.Conditional Use.Permit No: 94-46
for,a billiard parlor regarding problems with traffic and parking.inthe Old West Center, towing of ,
cars, loitering in the parking'lot, need for an outside security guard, and monitoring.of the project
if,approved.
In'response'to' Councilmember Garofalo,-Mr. Lima spoke rege rding parking.in the rear of.the
building.
Pat Davis thanked Council for their-support of the Council on Aging Golf Tournament on Friday.
She spoke regarding the Annual Duck-a-Thou for the benefit of the Huntington.Beach Community
Clinic and invited Council to the.duck launching at 12:30 p.m. on Saturday. She stated that fliers..
were distributed to Council.
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Steve Gullage,..Huntington Beach Mobilehome Owners Association representative,.stated that he
was proud of the city, the City Hall employees, and the City Council for listening to-the people and
empowering the people through the Mobile`.Home Review Committee.- He requested that•the
Committee be made:a,permanent board-in.the city:
Randy Riseling spoke in opposition to the financial management of.the city, lawsuit settlements,
parking tickets on,autos-without notice, and the city using weird strategies to make money such
as parking meters:
(City Council) Follow-Up Requested Regarding Disc Golf Course Displacement Issue
Mayor Leipzig requested follow-up on the disc golf comments from the Community Services
Director and the Council Committee.
(City Council) Staff- Report Requested Regarding Adding Names Of Huntington Beach ,
Armed Forces Members Who Died In Vietnam War To Memorial
Mayor Leipzig requested a=staff report regarding Mr. Kakuk's, request that the Vietnam War
Veterans' names be added to the memorial.
(City-Council) Report Regarding FBf Investigation Of The Police Department
The Mayor requested a report from the City Administrator regarding the FBI Investigation of the
Police Department referred'to earlier in the meeting by Mr. Bridges., The City Administrator
reported-regarding the FBI Investigation'done approximately a year and 'a half ago and stated that
.they found no fault or specific issues that required further action:
(City Council) ORANGE COUNTY BANKRUPTCY- SELECTION BY THE CITY OF OPTION A
OR OPTION:B OF COMPREHENSIVE SETTLEMENT AGREEMENT OPTION A APPROVED
(310.10) -
A motion was made by Sullivan, seconded by Garofalo, to move the decision regarding the
Orange County Bankruptcy Option A or B forward on the agenda. The motion carried by the
following roll call vote: ,!
AYES: Harman, Bauer, Sullivan, Dettloff, Garofalo`
NOES: Leipzig, Green
_ABSENT: None ;.
The City Clerk announced the following late.communications on this subject. These
communications had been announced earlier1n the meeting, prior to public comments.
City Clerk's Office - Revised Agenda page No. 11 regarding the Orange County Bankruptcy,
2 6 Selection by the city of option A or Option B of Comprehensive Settlement Agreement
Page 9 - Council/Agency Minutes - 05/15/05
Patrick Shea, Law Offices of Pillsbury, Madison and Sutro -.0 mmunication dated May 15, 1995
regarding the effect upon pool participants of the county's settlement with Merrill Lynch and
Company under the comprehensive settlement agreement regarding the Orange County
Investment Pools
G. Larry,Engle, Law Offices of Brobeck, Phleger and Harrison - Communication dated
May 15, 1995 to the Law Offices of Pillsbury, Madison and Su ro, regarding the risk of
disadvantageous,settlements by Orange County with Merrill Lynch and other potential defendants ,
The City Attorney presented a report regarding the pros and cons of Options A and B and stated
at'length the reasons for her strong recommendation that the ity"Council select Option B based
on the opportunity to recoup one hundred percent (100%) though litigation.
The City Administrator reported regarding the ten million six hundred thousand dollars
($1.0,600,000) amount remaining to litigate, settlement of claims, legal fees, and the different
restructuring for schools. He stated that he recommended a ove back to Option A which would
be a more secure position.
Extensive discussion was,held by Council regarding the proposed Measure R sales tax increase,
lawsuit,against Merrill Lynch, Fenner and Smith, the class acti n lawsuit, and difficulty in making
this decision.
A motion was made'by Green, seconded by Dettloff, to move from Option B to Option A of the .
Comprehensive Settlement Agreement of the Orange County Bankruptcy. The motion carried'
'by .
the following roll call vote:
AYES: . Harman, Leipzig, Dettloff, Green
NOES: Bauer, Sullivan, Garofalo
ABSENT: 'None
RECESS - RECONVENE CITY COUNCIUREDEVEL:OPMEN AGENCY
`Mayor Leipzig called a recess of the City Council and Redeve opment Agency meeting at
9:50 p:m. The Mayor reconvened the regular meeting of the City Council'and Redevelopment
Agency at 10:05 p.m. in the Council Chamber.
(City Council) CLOSED PUBLIC HEARING DECISION CONTINUED FROM MAY 1, 1995 -
APPEAL OF PLANNING COMMISSION'S CONDITIONAL APPROVAL OF CONDITIONAL'USE
PERMIT NO.-9446 - BILLIARD PARLOR -APPEAL FILED bY FAMILY FITNESS CENTERS -
SOUTHWEST CORNER WARNER AVENUE AND SPRINGD LE STREET DENIED APPEAL
WITH FINDINGS, (420.40) `• See earlier public comments pertaining to this issue.
The Mayor announced that this was the day and hour set fora decision on the Public Hearing
closed on May 1, 1995 on the following appeal:
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APPLICATION NO: Conditional Use Permit No..94-46
APPLICANT: Ty Wai Yep -
APPELLANT: Robert D. Dennis, Family Fitness Centers
REQUEST: To establish a 3,484 square foot billiard parlor within an existing commercial building.
LOCATION: 5914 Warner Avenue (south side of Warner and west of Springdale Street.)
ENVIRONMENTAL STATUS: Categorically exempt from the provisions of-the California
Environmental Quality Act.
The Community Development Director presented a staff report. She stated that Council had
requested the applicant to be present, Mr.Yep was contacted and said he would attend the
meeting but does not appear to-be present.
Discussion was held by Council and staff regarding re-pavement of the rear parking lot, repair of
lights in rear parking lot, security guard requirement and code'enforcement violations.
A motion was made by Harman, seconded by Garofalo, to approve Alternate Action No. 3 to deny
Conditional Use Permit No. 94-46 with findings as follows:
Findings For Denial Conditional Use Permit No. 94-46
1. The establishment, maintenance and operation of the proposed 3,484 square foot billiard
parlor without the sale of alcoholic beverages within an existing commercial center will be
detrimental to the general welfare of persons residing-or working in the vicinity; and property
and improvements in the vicinity of such use of building. The use will not be compatible with
other uses in the center and vicinity. The site contains insufficient exterior lighting and creates
a safety hazard for patrons and persons working with the existing commercial center.
The motion carried by the following roll call vote:
AYES: Harman; Sullivan,Green;tGarofalo
NOES: Bauer, Leipzig, Dettloff
ABSENT: None
(City Council) PUBLIC HEARING - TO HEAR OBJECTIONS -WEED ABATEMENT
APPROVED - STREET SUPERINTENDENT TO PROCEED.WITH ABATEMENT (520.'80)
The Mayor announced that this was the day and hour set for a public hearing to hear.objections
and protests to the proposed removal of weeds, rubbish and refuse upon certain streets,
sidewalks, parkways and private property in the city. Said hearing held pursuant to Resolution
No. 6668 adopted March 6, 1995.
The. Public Works Director presented a staff report.
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