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Home My WebLink AboutCC Min 2018-06-11Seal Beach, California June 11, 2018 ' The City Council met in regular session at 7:02 p.m. in the City Council Chambers. Mayor Pro Tem Deaton led the Pledge of Allegiance. ROLL CALL Present: Mayor Varipapa Council Members: Deaton, Massa-Lavitt, Moore, Sustarsic Absent: Council Member: None City Staff: Craig A. Steele, City Attorney Jill R. Ingram, City Manager Patrick Gallegos, Assistant City Manager Chief Joe Miller, Seal Beach Police Department Chief Joe Bailey, Marine Safety/Lifeguard Department Victoda L. Beatley, Director of Finance/City Treasurer Steve Myrter, Director of Public Works/City Engineer Crystal Landavazo, Interim Director of Community Development Robin L. Roberts, City Clerk APPROVAL OF AGENDA & WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES All items pertaining to and submitted after the posting of the agenda were made available to the public and received and filed with the City Clerk. ' Council Member Sustarsic requested that Item E be pulled from the consent calendar for separate consideration. ORAL COMMUNICATIONS Mayor Varipapa opened oral communications. Speakers: Tim Prangley, Seth Eaker, Barbara Wright, Art Fry, Seal Beach Police Sergeant Mike Ezroj, Greg Kirste, Bruce Bennett, Scott Levitt, Jonathan Waller, Ellen Stuart, Joyce Ross-Parque, and Jeannie Dennison. There being no further requests to speak, Mayor Varipapa closed oral communications. CITY ATTORNEY REPORT Craig A. Steele, City Attorney stated there was nothing to report. CITY MANAGER REPORT Jill R. Ingram, City Manager welcomed and introduced Orange County Fire Authority Division One Battalion Chief Steve Hurdle. COUNCIL COMMENTS Council Member Massa-Lavitt encouraged resident participation at the Local Hazard Mitigation Plan Outreach meeting on June 27th at Fire Station 48. ' Council Member Sustarsic stated her attendance at the following meetings: Local Hazard Mitigation Plan, Parking Town Hall, and OCTA Public meeting regarding the 1-405 Project. She stated that there will be a meeting this Thursday regarding OC 35 Construction Site tunneling under the 1-405 to move a waterline. Mayor Pro Tem Deaton announced that the DWP site closed escrow, welcomed Shea Homes to the community, and stated that a new park will be developed on this site prior to housing. She then thanked community organizations that have pulled together to help purchase Pedego bikes for the Seal Beach Police Department. Council Member Moore stated his attendance at the California Joint Powers Insurance Authority's Newly Elected Officials training last week. ' Mayor Varipapa stated his attendance at the Health Fair last weekend. CONSENT CALENDAR Items on the consent calendar are considered to be routine and are enacted by a single motion with the exception of items removed by Council Members. A Approval of May 22, 2018 Special City Council Budget Workshop Minutes - That the City Council approve the minutes of the Special City Council Budget Workshop held on May 22, 2018. B. Approval of May 24, 2018 Special City Council Budget Workshop — Capital Improvement Program Minutes - That the City Council approve the minutes of the Special City Council Budget Workshop — Capital Improvement Program held on May 24, 2018. G Approval of May 29, 2018 City Council Minutes - That the City Council approve the minutes of the Regular City Council meeting held on May 29, 2018. Q Demands on City Treasury (Fiscal Year 2018) - June 11, 2018 - Ratification (This item was pulled for separate consideration) ' E llil RP1.0P R. P ReGO eFy PFGf 66 n aSeFy Gas Agmement That the /"i Memorandum of Understanding (MOUS) between the City of Seal Beach and the Seal Beach Police Management Association and the Seal Beach Police Officers Association - That the City Council adopt Resolution 6830 approving the Memorandum of Understanding between the City of Seal Beach and the Seal Beach Police Management Association and the Seal Beach Police Officers Association, and enumerating classification and compensation as of July 1, 2017. G Plans and Specifications for FY 2017 & FY 2018 Annual Slurry Seal Project CIP No. ST1701 & ST1801 - That the City Council approve the plans and specifications for the FY 2017 & FY 2018 Annual Slurry Seal Project CIP No. ST1701 & ST1801 and authorize the solicitation for bids. Deaton moved, second by Moore, to approve the recommended actions on the Consent Calendar with the exception of Item E pulled for separate consideration by Council Member Sustarsic. ' AYES: Deaton, Sustarsic, Moore, Massa-Lavitt, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion Carried ITEMS REMOVED FROM THE CONSENT CALENDAR E. Oil Revenue Recovery Professional Services Agreement - That the City Council ' approve Resolution 6827 authorizing the City Manager to execute the professional services agreement with Greg Kirste dba Municipal Petroleum Analysts for potential oil and gas revenue recovery services and reject all other proposals. Council Member Moore recused himself due to a financial conflict of interest and left the Council Chambers. Finance DirectorfTreasurer Vikki Beatley summarized information provided in the staff report. At the inquiry of Council Members, Greg Kirste provided clarification regarding his credentials, objectives and price structure of the proposed agreement. Mayor Pro Tem Deaton and Council Member Massa-Lavitt spoke in favor of the agreement noting the favorable prospective of additional revenue for the City. Council Member Sustarsic stated her concerns regarding language in the contract, Mr. Kirste's qualifications and the lack of transparency in bringing this item forward. The City Attorney provided clarification that the statute of limitation in seeking past oil revenues is four years. Mayor Varipapa stated a variety of concerns with this item including the terms of the agreement, 15% fee to be paid to Mr. Kirste on potential oil revenue, and lack of ' qualifications. He stated that he would prefer to pay Clark and Green their flat fee of $45,000 to seek oil revenue rather than the potentially much higher amount proposed by Mr. Kriste. Deaton moved, second by Massa-Lavitt, to approve Resolution 6827 authorizing the City Manager to execute the professional services agreement with Greg Kirste dba Municipal Petroleum Analysts for potential oil and gas revenue recovery services and reject all other proposals. Substitute motion by Varipapa, second by Sustarsic, directing staff to present an agreement with Clark and Green for Oil Revenue Recovery in the amount of $45,000 for a period of 6 to 12 months; and if Clark and Green does not succeed in said oil revenue finding, bring back for consideration an agreement with Greg Kirste dba Municipal Petroleum Analysts for a one year term. AYES: Sustarsic, Varipapa NOES: Deaton, Massa-Lavitt ABSENT: None ABSTAIN: Thomas Moore Motion Failed Substitute motion by Deaton, second by Massa-Lavitt, to direct staff to negotiate a non- exclusive professional services agreement with Greg Kirste dba Municipal Petroleum Analysts for potential oil and gas revenue recovery services for a one year term. AYES: Deaton, Massa-Lavitt NOES: Sustarsic, Varipapa ABSENT: None ABSTAIN: Thomas Moore Motion Failed Council Member Moore returned to Council Chambers PUBLIC HEARINGS H Seal Beach Street Lighting Assessment District No. 1 - That the City Council approve Resolution 6831 confirming the diagram and assessment, either as originally proposed or as revised. Adoption of the ' resolution shall constitute the levy of the assessment for Fiscal Year 2018-2019. Director Beatley summarized information provided in the staff report. Mayor Varipapa opened the public hearing. There being no requests to speak, he then closed the public hearing. Massa-Lavitt moved, second by Sustarsic to approve Resolution 6831 confirming the diagram and assessment, either as originally proposed or as revised. Adoption of the resolution shall constitute the levy of the assessment for Fiscal Year 2018-2019. AYES: Deaton, Sustarsic, Moore, Massa-Lavitt, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion Carried L Adopt the Amended and Restated FY 2018 - 2019 Cost Recovery Schedule - That the City Council hold a public hearing and adopt Resolution 6832 establishing new fees and charges for goods, services, and facilities provided by the City and amending and restatingthe FY 2018- 2019 Cost Recovery Schedule. ' Director Beatley summarized information provided in the staff report. At the inquiry of Council staff provided clarification on various items on the Cost Recovery Schedule. Mayor Varipapa opened the public hearing. Speaker: Seth Eaker. There being no further requests to speak, he then closed the public hearing. Deaton moved, second by Massa-Lavitt to approve Resolution 6832 establishing new fees and charges for goods, services, and facilities provided by the City and amending and restating the FY 2018-2019 Cost Recovery Schedule AYES: Deaton, Sustarsic, Moore, Massa-Lavitt, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion Carried Adopt the Operating Budget and 5 -Year Capital Improvement Program (CIP); Approve the CIP Budget for FY 2018-2019; Set the Appropriations Limit for Fiscal Year 2018-2019; and Authorize ' Appropriations by Fund - That the City Council hold a public hearing and adopt: Resolution No. 6833 adopting the Fiscal Year 2018-2019 Operating Budget and 5 -Year Capital Improvement Program; approving the Capital Improvement Program budget for Fiscal Year 2018/2019; setting the Appropriations Limit for Fiscal Year 2018-2019; and authorizing appropriations by fund. Director Beatley provided a PowerPoint presentation which provided budget summary details and updates from the past Workshop discussion. She then provided a slide ' regarding Senior Transportation that indicated annual costs and funding sources. At the inquiry of Council, Deputy Director of Public Works Michael Ho clarified information regarding the Dial -A -Ride, Nutrition Shuttle and Shopper Shuttle programs. At the inquiry of Council staff provided clarification on various items on the Cost Recovery Schedule. Mayor Varipapa opened the public hearing. Speakers: Jonathan Waller, Robert Goldberg and Seth Eaker. There being no further requests to speak, he then closed the public hearing. There was general discussion regarding one-time money, surplus, and estimated revenue and expenses and public hearing comments. Deaton moved, second by Massa-Lavitt to reduce the operating days and hours of the Dial -A -Ride program to three days a week from 9 a.m. to 3 p.m. only and direct staff to work with the OCTA in providing outreach and senior transportation two days a week with the goal the OCTA's program eventually eliminating Dial -A -Ride services, maintaining the Nutrition Shuttle, and eliminate the Shopper Shuttle after December 31. 2018. AYES: Deaton, Sustarsic, Moore, Massa-Lavitt, Varipapa Massa-Lavitt moved, second by Sustarsic to approve the Resolution No. 6833 adopting the Fiscal Year 2018-2019 Operating Budget and 5 -Year Capital Improvement Program; approving the Capital Improvement Program budget for Fiscal Year 201812019; setting the Appropriations Limit for Fiscal Year 2018-2019; and authorizing appropriations by fund. AYES: NOES: None ABSENT: None NOES: ABSTAIN: None ABSENT: Motion Carried Massa-Lavitt moved, second by Sustarsic to approve the Resolution No. 6833 adopting the Fiscal Year 2018-2019 Operating Budget and 5 -Year Capital Improvement Program; approving the Capital Improvement Program budget for Fiscal Year 201812019; setting the Appropriations Limit for Fiscal Year 2018-2019; and authorizing appropriations by fund. AYES: Deaton, Sustarsic, Moore, Massa-Lavitt, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion Carried NEW BUSINESS K Citizen -Council Fire Services Advisory Ad Hoc Committee Recommendations - That the City Council discuss the Citizen -Council Fire Services Advisory Ad Hoc Committee recommendation to remain with the OCFA as the fire and emergency medical services provider for the City of Seal Beach and the Committee's recommendation to provide ' direction to staff regarding funding options for fire and emergency medical services, and public safety costs in general, including formal notification to OCFA that cost reductions are necessary and the need to increase revenues in order to pay forthose services. The Committee also found that it is critical for OCFA to minimize program and service enhancements that result in service charge increases in order for the City to continue to sustain ongoing annual JPA contract payments through 2030 in addition to implementing other revenue generation programs, including a potential ballot measure. Director Beatley summarized the process completed by the Citizen -Council Fire Services Advisory Ad Hoc Committee. She stated that the outcome and committee recommendation after presentations and analysis was for City to remain in contract , with the Orange County Fire Authority (OCFA), which was the least expensive option. Mayor Pro Tem Deaton spoke regarding the presentations provided by City of Long Beach, City of Huntington Beach, OCFA and analysis of creating a Seal Beach Fire Department. OCFA Assistant Chief of Business Services Lori Zeller provided clarification regarding contractual obligations, maximum increases for service costs, pension obligations, cost related to helicopter services, and requirements of facility maintenance. OCFA Division Chief then responded to a question regarding ambulance services. Moore moved, second by Deaton, to approve Citizen -Council Fire Services Advisory Ad Hoc Committee's recommendations and remain in contract with the Orange County Fire Authority, and direct staff to re -commission the Committee in 2025 to review the Fire Services Agreement. AYES: Deaton, Sustarsic, Moore, Massa-Lavitt, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion Carried L Path to Fiscal Sustainability, - That the City Council provide direction to ' staff as to what new revenue options to pursue. Director Beatley summarized information provided in the staff report highlighting the fiscal challenges facing the City including that key revenue sources have declined such as Sales and Utility User Tax. She indicated that the best scenario would be a 1% Sales Tax that would provide an approximant $3.6 million in additional revenue. She then asked Council for direction. There was general discussion about other revenue mechanisms such as Proposition 218, additional cost recovery analysis, parcel tax, Transit Occupancy Tax, Utility User Tax, and economic development. Massa-Lavitt moved, second by Moore, to direct staff to undertake steps necessary to place a 1 % Sales Tax Measure on the November 6, 2018 Municipal Ballot. AYES: Deaton, Sustarsic, Moore, Massa-Lavitt, Varipapa NOES: None ABSENT: None ABSTAIN: None Motion Carried F ADJOURNMENT Mayor Varipapa adjourned the City Council at 10:43 p.m. to Monday, June 25, 2018 at 5:30 p.m. to meet in closed session, if dgeme es ry. Robin L. Roberts, City Clerk I I