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HomeMy WebLinkAboutCC Min 2003-02-10 2-10-03 Seal Beach, California February 10, 2003 I The regular adjourned meeting scheduled for 6:30 p.m. this date was canceled due to the lack of Closed Session items in need of consideration. clerk Seal Beach, California February 10, 2003 The City Council of the City of Seal Beach met in regular session at 7:02 p.m. with Mayor Larson calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Larson Councilmembers Antos, Campbell I Absent: Councilmembers Doane, Yost It was noted that Councilmember Yost would be arriving shortly. Antos moved, second by Campbell, to excuse the absence of Councilman Doane from this meeting. AYES: NOES: ABSENT: Antos, Campbell, Larson None Doane, Yost Motion carried Also present: Mr. Bahorski, City Manager Mr. Barrow, City Attorney Mr. Dancs, Director of Public Works/City Engineer Chief Sellers, Police Department Ms. Arends-King, Director of Administrative Services Mr. Vukojevic, Deputy City Engineer Ms. Yeo, City Clerk I APPROVAL OF AGENDA Councilmember Campbell requested that Items "M" and "N" be removed from the Consent Calendar for separate consideration, and Councilmember Antos requested that Item "K" be removed. Antos moved, second by Campbell, to approve the order of the agenda as revised. AYES: NOES: ABSENT: Ant'os, Campbell, Larson None Doane, Yost Motion carried 2-10-03 ANNOUNCEMENTS Battalion Captain Mitch Kahn was introduced, located at Station 48, and his crew Engineer Jim Johnson, a twenty-nine year member of the fire service, and Frank Janicke, a Seal Beach resident and a former volunteer at Station 44. It was noted that the Captain is a former Olympic athlete, and it is anticipated that he will serve this beach community well. Councilman Yost arrived at 7:05 p.m. I PRESENTATION PROCLAMATION - CAREER and TECHNICAL EDUCATION WEEK Mayor Larson read in full the proclamation designating February 9th through the 15th, 2003 as "Career and Technical Education Week." Ms. Meg Cutuli accept with appreciation the proclamation on behalf of the Orange County Regional Occupational Program. She explained that the ROP is a career/technical part of education, is open to all junior and senior students and adults, in the past year there were one hundred eighty-four Seal Beach residents that participants in the ROP programs, it is career oriented and job market driven, it has been shown that participated graduate from high school or college at a higher percentage than those who do not, college attendees change their majors less frequently and graduate more frequently, all of the ROP teachers are credentialed in their particular field and work in the field in which they teach. ANNOUNCEMENTS Councilman Antos noted a recent fire in Leisure World in which unfortunately a person perished, there was also a news article relating to the rescue of a neighbor by Police Officer Ryan Corbin which was a positive effort. Councilman Antos noted also that according to Adelphia the TV Guide channel was preempted and is now relocated to Channel 76. I PUBLIC COMMENTS Mayor Larson declared the Public Comment period to be open. Ms. Lynn Hermstad, Seal Beach, Cancer Support Foundation, presented the Council and staff with Foundation visors that is hoped will be worn for the February 22nd 10K Walk or Run Race event with the City of Los Alamitos, this a positive way to support cancer patients and their families in the community, which the Foundation has done for over twenty-five years. Mr. Glen Clark, Trailer Park, said he has not addressed the Council for about a year in that he felt that the problems in the Park had been more or less resolved, the Park issue took up considerable time of the Council and staff, there were attorneys, bond counsel, California Security and Exchange Commission, and others that were involved in the Park purchase, all of those people advised that the best thing that could be done was to take the purchase through a nonprofit process, that is what was presented, it was taken to the people in the Park who signed statements that they supported that process, and offered that had the people said they did not want to do that it would not have been done, and neither would the City. Mr. Clark thanked the Council and the City for everything that was done for the residents of the Park. Mr. Clark noted that there have been people addressing the Council in recent weeks that are claiming everything possible that could be wrong with what is going on in the Park, however there are others present that agree ~hat what was done was the best thing possible for the Park. Mr. Clark stated that some of the I 2-10-03 I people who have addressed the Council are not residents of the Park, some only have rental units and do not live there, the reason they complain is that they found that their rents would increase and no longer subsidized by the City, the City should not spend money for someone who is getting money for their unit. He said what seems to have been forgotten is that this is a mobile home park, a mobile home park business that was sold, purchased by Linc, it was not little individual lots that were sold because there are no individual lots, it is one large piece of property and a business called a mobile home park, every person that lives in the Park lives in a mobile home, some residents however that they built a stick house, yet under the stick house, according to the permit that they requested and received, is part of mobile home or trailer. Mr. Clark expressed appreciation again. Mr. Bob Latta, Trailer Park resident for twenty-seven years, stated that he continues to get brochures from the somewhat self-appointed membership council in the Park, they claim they represent forty percent of the people, it is a curious situation, the brochures claim that the people were promised that the lots would be surveyed, yet he attended all of the meetings where the nonprofit purchase was discussed and the people were never promised a surveyed area for their use, the property was to be purchased as a whole, the corporation was to be a five member appointed council, there are plots of ground but no one was ever promised their own individual lot. Mr. Latta noted news articles relating to the Park residents lawsuit, to that he said he would never personally be involved in a lawsuit against anyone. He too thanked the Council for their help in what was a desperate time, a number of the people who have spoken negatives did not attend all of the meetings, and offered his apology for those who have been critical of the Council and City. Mr. Richard Fischbacha, Trailer park, thanked the Council as a whole and Councilmembers Campbell and Yost for the help and support with the purchase of the Park. Mr. Fischbacha stated that when Mr. Hall purchased the Park there were many frightened people, with the help of the City the nonprofit was able to buy the Park, Hall wanted to raise the rents very high, if that did not work he would have bulldozed the Park, many people worked hard for the residents, the City loaned money, he and others in the Park are appreciative of all of the effort, dismayed that there are some in the Park that are not, and said he would hope that the people can get back to living their lives. Mr. Ray Mulinly, Trailer Park, said when he moved into the Park some twelve years ago the rents were only about $200 per month to live a block from the beach, he paid considerable for his trailer but that is the price for the location. Mr. Mulinly noted that after Mr. Hall bought the Park the residents could no longer sell their homes, make improvements, additions, no one could buy in the Park, that rendered their homes virtually worthless, people who wanted to move could not sell their home to go elsewhere. He said thanks to the Council and City a type of rent control was put in place given the extensive increases intended by Mr. Hall, at that point some elderly residents of the Park stepped up to do something, they first tried to do something with the existing Covenant, it was then determined that the Covenant was not very good, the next idea was for the residents to try to purchase the Park yet as a low and moderate income Park and there was no money, the next step was to come to the City and go to a nonprofit organization to seek the best solution possible, and when the bonds are paid the residents will have controlling seats on the Board who will determine what will occur within the Park, the only thing that was realized by I I 2-10-03 the Park residents was higher rents yet the rents are still reasonable, in addition the City has helped those with low income with rent subsidies. Mr. Mulinly mentioned that. another group then came along, an election was held, three people won office, they immediately did not like the newsletter that was prepared and distributed by a Park resident and Board secretary, the newsletter reported what I was happening, the new group objected and took control of the newsletter, the new Board members then managed to oust three of the original Board members, they were informed by an attorney that what they were doing was illegal and basically immoral yet they continued to represent themselves as the Park Board even though the City and Linc did not recognize them as the Park Board. The new Board members speak of voting rights, yet they are involved in three different lawsuits, the residents were not allowed to vote on that, they also used $1,000 of donated money to produce videos against the former Board members and City representatives. Mr. Mulinly expressed his gratitude to live in the Trailer Park and stated that the people that have been complaining to the Council do not represent all of the Park residents. Ms. Renee Lusian, Park resident since 1969, said she has seen many changes and difficult times, what people have gone through in recent years has just been summarized, it has been difficult and worrisome, and she is low to moderate income. Ms. Lusian expressed appreciation to the Council, City and citizens who have supported the residents of the Trailer Park, helped them to maintain their homes, she does not want to lose her home however is fearful now with some of the things that are taking place that she will not be able to remain in the Park, and said she does not know of any other I city that would stand behind people in their community that are less fortunate yet an important part of the city. Ms. Lusian again expressed appreciation, asked that the City not lose patience, that there are many Park residents who also appreciate what has been done, said she too attended all of the meetings, she never thought that she would own her lot, has never put even a dollar towards owning the lot, yet can remain in the Park even with very limited income, it was felt that everything had been resolved by the past actions of the City and Linc, it was not felt that the people had to continue to address the City. Ms. patricia Clark, Trailer Park, stated she had been the recording secretary for the Seal Beach Trailer Park Resident Owners Board from 1999 until September of 2001, and was so during both Park purchases. Ms. Clark offered that she has been angered and saddened by the attacks on the Council, the Agency, and in letters to the editor about the Trailer Park, the City does not deserve the abuse that it has received, she does not understand how those people can berate the City Council, the Council had nothing' to do with the purchase by Richard Hall in December of 1998 or the purchase by Linc Housing in December of 2000, she was there, they were not, where is the second and third hand information coming from. She questioned why they want to I overturn the Redevelopment Agency, of greatest concern is that the low income Park residents could lose their rent subsidies that have been guaranteed for at least twelve years, that was one of the highlights of the purchase so that the low income residents could keep their homes, concern too that Park residents could lose the $500,000 Agency monies that have been set aside to repair or replace homes do those people not care about the low income people on social security and disability, why do they want to overturn the purchase, this Park is the only low to moderate income housing in Seal Beach, if they were to succeed the City would 2-10-03 I be forced to put the Park up for sale on the open market in order to payoff the bonds, the people would be back to where they started with a for-profit owner like Richard Hall, if the Park purchase is overturned all of the low income Park residents could lose their rent subsidies and all residents could lose the $500,000 to fix or replace their homes. Ms. Clark stated that the purchase of the Park was wonderful for the low to moderate income residents of the Park, no money needed to be put down and for low/moderate income people that was significant, it was financed by tax exempt, low interest bonds, and there are no real property taxes thanks to an Orange County program whereby only a 50lC3 nonprofit owner can receive a tax break for the low income residents of the Park which means zero real property taxes on the space beneath all low income homes, that does not come with any other type of loan in Orange County, the low interest bonds and low property taxes will help keep the rents down as long as the 50lC3 nonprofit owns the Park. Ms. Clark noted that some must have short memories, have they forgotten that the residents could not build, repair, upgrade or replace their homes under Richard Hall, the homes were worth zero, since Linc bought the park eleven homes have been sold and one new cabana has been built, that is eleven and one more than when Hall owned the Park, Hall did not buy the Park to sell it, he is a land developer who has a reputation for buying mobile home properties along the coast and turning them into resorts, Hall did not care about the residents of the Park, he is a businessman and bought the Park as a business investment and expected to make a big profit, he did his homework before he bought at a fire sale price, he knew the Covenant could be legally overturned, that there was no City ordinance in place whereby he would have to compensate residents for their homes or relocate them if he closed the Park, it is known that many homes in the Park are not properly registered or licensed, under the mobile home residency law a mobile home park owner can give a three day notice to the tenants to leave the park if their home is not properly registered or licensed, he could have displaced a lot of residents that way. Ms. Clark mentioned that as has been said there was only this one window of opportunity to get out from under Mr. Hall, three things happened, the Agency had a surplus of money and if not used had to go back to the State, it could not have been placed in the General Fund, the Agency made a decision to help the Park residents purchase the Park through a nonprofit entity, Richard Hall was willing to sell the Park for only a limited time, and the Governor signed a bill into law in year 2000 whereby a 50lC3 nonprofit organization could buy a mobile home park on behalf of the mobile home park residents with an HCD MPROP loan of up to $1 million, that law took effect in January, 2001, thereafter a presentation was made to the MPROP Board in Sacramento and they granted the loan for $1 million. Ms. Clark expressed appreciation to all who helped to save their homes. Mr. Ken Williams, Trailer Park, said he was one of the three people elected to the Homeowners Board that was referred to, stated there is a lot of difference between being told that you are going to own the Park as a group or coop or whatever format and then find out that someone else owns your home and you will not own it. In reference to previous speakers he said they distributed over forty newsletters that said the residents would own the property through the sale of the Park, the people were mislead, the people who have spoken in the past did not do so to complain, rather to work with the City, his feeling is that members of the Council tried to do what was right, his preference would I I 2-10-03 be to talk about finding a solution, he does not want to talk about what is wrong with the Park because that sounds unappreciative, it is appreciated, if it is not admitted that there is something wrong the need may not be seen to talk a solution, this is a concern. Mr. Williams noted that Hunter Johnson was present when the City voted to give him $8 million to purchase the Park, it was stated that the residents would own the Park, that was thought to be true, it appeared that he agreed with the statements of resident ownership and he stated that Linc was the borrower in conjunction with the residents. Mr. Williams mentioned that in December, 2000 a former Board member called him to report that the residents owned the Park, to the question as to whether they owned the land, the response was yes, several days later the residents received rent notices, he in turn called Linc to see how the process worked, to that the Vice President of Linc stated that at the end of thirty years there would be a sale, sell the Park to a developer for a profit, there would be a vote as to whether or not to do it, and to a question to keep it as a residential area, how many people would need to vote to keep it residential, the response to that was no, the people do not have a vote, it would be the Board, two persons from Linc, two from the residents and the City, five individuals, the vice President stated it could be a windfall, did not know why anyone would want to keep it as a residential area. Mr. Williams said thereafter he read the agreements, had attorneys read the agreements, to that he was told that the residents were not slated for any resident or ownership control, at a celebration party there was an inscription on the cake stating "joint Linc/resident ownership", thereafter the comments about joint Linc and resident ownership disappeared. He said he also noticed that there is a five year gap between the agreements, either five years of no rent control or Linc still owns the property, that was brought to the attention of former Interim City Manager McIntyre, he agreed that there was a five year gap and suggested that be brought up with the next City Manager, to him that means that the rents could be raised to thousands of dollars a month. He mentioned too that Mr. McIntyre now sits on the Board of Directors of two companies with Hunter Johnson. As to a solution, Mr. Williams stated that since the City and the residents were mislead, he agrees that a mutually agreed upon bond counsel opinion should be sought, he does not believe that Linc wants such opinion as it might ,state five or six ways that this could be remedied, one can not say that this can not be discussed because there is a lawsuit, the lawsuit is because people did not talk, his understanding is that Government Code Section 66030 allows for mediation of a redevelopment project gone askew. Ms. Capinetto, stated she has only been a Park resident for a short time because even with her good credit one can not get a loan, people can not sell their homes in the Park and one could not buy a house in the Park easily, complained that she is also paying the highest rent, had been told she would pay $200, the mortgage is much more than it was supposed to be because of the problems realized to secure a loan, and now she pays $537 per month. She thanked those that helped to buy the Park, without that she could not be a homeowner, yet as it turns out she is not a homeowner, and everything that the first speakers said is wrong, her understanding when she bought was that the residents would own the land, there is a lease on the land, and the leaseholder, when the tenant is done paying, is going to own the land. MS. Capinetto complained that she was threatened, cajoled, violated emotionally after speaking up I I I 2-10-03 I that the Park purchase was not going the way she had been told, at the end of thirty years she will have nothing to pass on, she intends to be a landowner in the Park, all of the low income people need to remain there, nothing for them needs to change, but they too should be landowners, that is what she was told and promised, but that is not happening, she is being taken advantage of by the Park and Linc. She suggested that the Council look into the situation further, take an active interest, it is City money, it needs to be researched thoroughly. Ms. Capinetto offered to talk with members of the Council and share her paperwork, her experiences were real. Mr. Paul Jeffers, Trailer Park, made reference to the first speakers who indicated that the other residents are not thankful, he felt hopeful after the last meeting as it seemed as if the Council would take interest to resolve the situation, as stated in the lawsuit it is because of fraud and deceit, misrepresentation of facts, the suit does not involve the City, it just seeks to resolve matters and obtain what the residents were promised, in court the judge ruled that the attorneys had not provided sufficient answers to articles 28, 30 and 31. He remembers people stating that the residents would own the Park, there is only the cooperative agreement that states when the bonds are paid Linc will withdraw their two representatives on the Board, that leaves four, there are seven on the Board, that is a loggerhead on the Seal Beach Affordable Housing Corporation Board, that Corporation too is being investigated by the IRS at this time. He said the Park sale was finalized in December, 2000, the 50lC3 was not applied for until August of 2002, the lawsuit was filed because they had tried to talk to Linc, the City, everyone about what went on so that this could be fixed, never a response, it is also known that the IRS is being frauded because of the tax free bond issue, that too needs to be cleared up, the MPROP is also fraudulent, that money is for mobile home park resident owner programs, that means that the residents would own the Park, you own nothing in real estate until it is in writing, in this case there is nothing in writing, it was said that if the MPROP was signed the residents would become the owners of the Park, a letter from the then Interim Manager to the State said that two-thirds of the residents agreed to the application for MPROP funds, Hunter Johnson said the same, yet someone did not tell the truth because the package submitted to the State said the people supported the Park conversion for Linc to own it, it said nothing about the residents owning the Park. Mr. Jeffers noted that the former Interim Manager now sits on the Board of Linc Housing, which is not a legal corporation, along with two people from the City, it just seems that all parties should get together and resolve this issue. He stated he does not like fraud being brought upon him and he will stand up against it. Ms. Joyce Parque, 6th Street, mentioned mobile home parks, parking meters, the budget, money being spent on labor and retirements, the Police Department, the billing records for legal counsel do not match, a city engineer whose office is on the top floor of the Washington Mutual building, his charges are high, the League of Cities who is anti-taxpayers yet the City pays for attendance at their meetings, the League supports redevelopment schemes which makes government bigger, fought initiatives such as Prop 13, they are urging the legislature to push the attempt to reverse the Vehicle License Fees, want to weaken the Brown Act, they hold regular education seminars around the State at which the League of California Cities philosophy is drilled into city administrators and councilmembers, it is the taxpayer though that pays for I I 2-10-03 everything in this City, just like the budget where nearly $900,000 that was not in the budget when adopted has been spent, and there was to have been another budget review in December. Ms. parque said the May, 1990 General Plan says to continue to provide affordable housing opportunities at the Seal Beach Trailer Park, that Park had one hundred twenty mobile homes, it had a Covenant for sixty-six years, that would be until 2044, when the Trailer Park was moved the Agency paid $2 million to move the residents, the Covenant was prepared, that was to stay in effect for one hundred twenty-five pads, now there is only one hundred twenty, is there not concern with the remainder, that was required to be for low and moderate income because of the Redevelopment Agency. Ms. Sue Corbin, Seal Beach, said as much as she has tried over thirty years she does not know the facts of the Trailer Park and they are hard to come by. She hears talk about a lease, question, did Hall keep the land and there is a lease, $8 million for a lease for a short period of time, stated there are several people who pay no rent in the Park, one person in the Park had a contract for doing computer work, there are benefits for doing what the City wants you to do, the same as the bed and breakfast, it is ask that the contract be voided, yet a State or municipality is not allowed to void a contract, it is being said that the people are not a party to the contract yet in press it is being said that they should pay back the $1 million, there is not and may not be a 50lC3, no tax free bonds, Linc is said to have six of the Trailer Park spaces along the River, the former Interim Manager serves on the Linc Board, a conflict of interest, there is no nonprofit, the City has appealed with a Slap motion, it was denied, it gives Hunter Johnson time to mend what he can not mend, everything would be fine if it had been done in the open but it was not, it is said Councilmembers are serving in their individual capacity, documents are not being turned over to the newly elected people of the Park Board, Mr. Johnson says that he will not recognize the new people on the Board even though they were elected by eighty percent. Ms. Corbin said the City, only needs one engineer but now there are four, she too noted that the office of the contract engineer is on the top of the Washington Mutual building, he is now prospering, all that is needed is one city engineer that can handle the load, $100,000 is not needed for a parking study unless you go to the base of the problem and explore the in-lieu parking, which is illegal, the Coastal Commission will not approve any parking scheme until the City goes to the base of the problem, start at the base and construct a legal scheme. She concluded if one person is allowed to speak more than the five.minutes all must be allowed to do so. Ms. Rita Brenner, Trailer Park, 1st Street, thanked Mr. Williams, said with the new people on the Board she feels safer and more protected, and to the comments of another speaker she finds their experiences of interest, that speaker bought her house from a person who was not elected yet put on the committee, the speaker that charged that three people were taken off the committee by a coup was not so, also, Mr. Mulinly said he lives in the Park but he does not and has apparently rented his unit from time to time, some people feel that those who receive subsidies should be known, there are two couples that own homes in the Park that are getting assistance, another person is possibly on disability, getting subsidy, yet works two jobs, to that she stated that any information relating to subsidies and getting low cost loans or help of any kind should have gone through a specific person at the City rather than the general manager of the Park, no one should have to I I I 2-10-03 I take their personal information to the Park manager, initially it was set up that anyone wishing to qualify to live in the Park was to come through the City. She mentioned that an article came out that some were paying $200 per month, now paying $400 or so, that is not true, maybe some on the greenbelt, what the people were told was $525, then another $80 and more and more, there should be an audit. Ms. Reva Olson, Seal Beach, charged that the Trailer Park transaction was corrupt, the Council will go down unless it admits to be conned, she understands how people feel who are getting a home for nothing, and understands how the taxpayers feel who subsidize the Redevelopment Agency that pays for someone to live in a home for nothing. Ms. Olson expressed her opinion that this transaction should be rescinded, she would like to have the Council come around, it is not felt this was done intentionally, the Council should join the lawsuit. Ms. Karen Tarascio, Trailer Park, announced an event that is taking place this coming weekend in Long Beach, a worldwide day of action against the war on Iraq on February 15th. There being no further comments, Mayor Larson declared the Public Comment period to be closed. APPOINTMENT - ENVIRONMENTAL OUALITY CONTROL BOARD Mayor Larson requested that the District Two appointment to the Environmental Quality Control Board be held over. CONSENT CALENDAR - ITEMS "c" thru "N" Antos moved, second by Campbell, to approve the recommended action for items on the Consent Calendar as presented, except for Items "K, M, and N" removed for separate consideration. I C. Approved the waiver of reading in full of all ordinances and resolutions and that consent to the waiver of reading shall be deemed to be given by all Councilmembers after the reading of the title unless specific request is made at that time for the reading of such ordinance or resolution. D. Approved the minutes of the January 27, 2003 regular adjourned and regular meetings. E. Approved regular demands numbered 40705 through 40853 in the amount of $607,950.07, ADP payroll demands numbered 1861952 through 1862081 in the amount of $163,062.65, and authorized warrants to be drawn on the Treasury for same. F. Approved the plans and specifications for Seal Beach Boulevard and Westminster Avenue Widening, Project Number 49665, and authorized staff to initiate the bidding process. I G. Approved the plans and specifications for the Annual Street Seal Program, Project Number 49674, and authorized staff to initiate the bidding process. H. Approved the plans and specifications for the Boeing Sewer Pump Station Reconstruction, Project Number 49725, and authorized staff to initiate the bidding process. 2-10-03 J. I. Approved the plans and specifications for the Storm Drain Catch Basin Screen Project Number 50103, and authorized staff to initiate the bidding process. Approved the plans and specifications for the Traffic Signal Battery Backup Grant Program, Project Number 50017, authorized staff to initiate the bidding process, and I Adopted Resolution Number 5101 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING A BUDGET AMENDMENT, NO. 03-19, FOR THE TRAFFIC SIGNAL BATTERY BACKUP GRANT PROGRAM PROJECT NO. 50017. By unanimous consent, full reading of Resolution Number 5101 was waived. L. Approved the Second Amendment to Agreement Number 27232 by and between the City of Seal Beach and the City of Long Beach for parking meter services for the period February 1, 2001 through January 31, 2004. AYES: NOES: ABSENT: Antos, Campbell, Larson, Yost None Doane Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR ITEM "K" - RESOLUTION NUMBER 5102 - RETIREMENT SERVICE CREDIT Councilman Antos requested a brief staff report and mentioned based upon discussion at the previous meeting possibly Councilman Yost may have comments. The City Manager noted that this item relates to a two year retirement service credit, the proposed Resolution provides a one hundred eighty day time frame, the maximum allowable, however it is possible to reinstate an extended time period in the future, emphasized that this is a voluntary program, employees can not be forced into the program, the staff report explains how the program works, sets forth examples, as well as some advantages and disadvantages. Historical research shows that in 1995 the City participated in a four year service program, the water superintendent was the participant, in 1994 the City participated in another program where early retirement was granted the associate engineer and the secretary to the Police Chief, the staff report from a former Manager indicated as well that the City would realize cost savings and the positions will be eliminated. The Manager noted again that at this point it is not known how many of the approximate thirteen eligible employees will opt to participate. To a question if there has been any response from staff, the Manager responded that it appears there is at least one person interested, the formula will be reviewed with any interested employee, again, it is up to the employee, they would need to weigh their financial situation or they may just not want to retire. Councilman Yost inquired if there is any attempt to influence the employees with statements relating to the potential for budget cuts. The response of the Manager was that there is not, and pointed out that at last meeting it was reported that the City will make it through this fiscal year. He did not however there was a news article that reported the City to have a $13 million deficit, that was incorrect information. He noted that progress is being made from natural attrition I I - 2-10-03 I and vacancies, if the process is allowed to run the City will get to where it needs to be. Councilman Yost said he wants to make sure that some of the senior employees or those that have the most institutional history are encouraged to stay because in a budget crisis they may be able to get things done more efficiently, he foresees that as the budget gets tighter the City will be going to basic and emergency levels of service. The Manager again pointed out that this is basically an individual decision, the number of employees choosing to take advantage will not be known until the program is in place. Antos moved to adopt Resolution Number 5102 entitled "CITY COUNCIL OF THE CITY OF SEAL BEACH RESOLUTION TO GRANT ANOTHER DESIGNATED PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT." Councilman Yost seconded the motion. AYES: NOES: ABSENT: Antos, Campbell, Larson Yost Doane Motion carried I ITEM "M" and "N" - RESOLUTION NUMBERED 5103 - BOLSA CHICA MESA UPLANDS - RESOLUTION NUMBERED 5104 HELLMAN RANCH WETLANDS Councilmember Campbell noted that when the effort commenced to save the Bolsa Chica the city of Seal Beach was an initial participant being the area's location in close proximity. She mentioned that this City does not incur legal expenses because of suing people they are incurred through defending the City, her recollection is that Bolsa Chic a is the only time when there were legal expenses incurred as a result of joining a lawsuit, that was prompted by insufficient traffic mitigation in the EIR, that believed to be the last time the City joined a lawsuit. The City Attorney concurred that to be a correct statement, the lawsuit involved a number of petitioners, including Seal Beach, the law firm that handled the case was believed to be from the Ventura area. Councilmember Campbell noted that Seal Beach has supported the Bolsa Chic a since the beginning, and should continue to support keeping it out of the hands of developers and into the hands of someone who will protect it, support of protecting the wetlands is important. Campbell moved, second by Yost, to adopt Resolution Number 5103 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, COUNTY OF ORANGE, CALIFORNIA, SUPPORTING RESTORATION AND ECOLOGICAL CONSERVATION OF THE BOLSA CHICA LANDS AND THE USE OF PROPOSITION 50 FUNDS FOR THE ACQUISITION OF BOLSA CHICA MESA UPLANDS." By unanimous consent, full reading of Resolution Number 5103 was waived. AYES: NOES: ABSENT: Antos, Campbell, Yost Larson Doane Motion carried I The City Manager recommended that the last 'Whereas' paragraph of Resolution Number 5104 be deleted and that the language of the 'Resolve' clause be amended to read "...to allocate funds from Proposition 50 or any other grant monies..." to broaden the possible funding sources. Yost moved, second by Campbell, to adopt Resolution Number 5104 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, COUNTY OF ORANGE, CALIFORNIA, SUPPORTING ACQUISITION AND RESTORATION OF HELLMAN RANCH WETLANDS BY THE STATE OF CALIFORNIA." By unanimous consent, full reading of 2-10-03 Resolution Number 5104 was waived. AYES: NOES: ABSENT: Antos, Campbell, Larson, Yost None Doane Motion carried Councilman Yost stated he would like to see the Hellman wetlands get into public hands. I RESOLUTION NUMBER 5105 - BUDGET AMENDMENT - PIER STRUCTURAL REPAIR - PROJECT NUMBER 49715 The Deputy City Engineer presented the staff report, noted that at the last meeting the Council was provided a pier structural report, that report concluded that the pier was in fair condition however there are components of the pier that are in need of repair and/or replacement, the cost associated with the repairs, including inspection, design, and extensive permitting, is about $500,000. He explained that after the design phase is complete staff proposes to bring the plans and specifications to the Council for approval, construction would be anticipated after the peak summer period and the Labor Day weekend. 'Mayor Larson noted that the net result of adoption of this item would be a budget'adjustment and authorization and commencement of the design phase. The Director of Public Works stated that to be correct, this will allow the project to be included in the Capital Improvement Program, and to begin negotiations with the designer, this would be a task order for an on-call contract,' to that the Manager clarified that the contractor that performed the study is already on an on-call contract, this would be done by them as they have done much of the preliminary work. Councilman Antos inquired as to the cost of the design. The Deputy Engineer responded that typically the design is about fifteen percent of the construction cost, however given that this is a specialized area involving extensive permitting through the Coastal Commission, State Lands, etc., he would anticipate that it could be twenty to twenty-five percent, yet most likely less than $100,000. I Yost moved, second by Antos, to authorize staff to initiate the design process for the Pier Structural Repair, project Number 49715, and to adopt Resolution Number 5105 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNAI, AUTHORIZING A BUDGET AMENDMENT, NO. 03-21, FOR THE PIER STRUCTURAL REPAIR PROJECT NO. 49715." By unanimous consent, full reading of Resolution Number 5105 was waived. Councilmember Campbell recalled that when the presentation was made at the last meeting she had asked a question relating to the Huntington Beach pier in that in 1983 their pier suffered the same fate as the Seal Beach pier except that Huntington had insurance on their pier and rebuilt it with concrete, to that she asked the cost of a concrete pier only so that people would understand the difference in the cost of concrete versus what Seal Beach will be doing, to that there were some people who construed her question as wanting a concrete pier, which she does not. I AYES: NOES: ABSENT: Antos, Campbell, Larson, Yost None Doane Motion carried AGREEMENT / RESOLUTION NUMBER 5106 - BEACH EROSION CONTROL (SAND RETENTION GROIN REHABILITATION\ The Deputy City Engineer explained that approximately forty years ago a concrete wall, known as a groin, was constructed 2-10-03 I along the side of the Seal Beach pier to reduce beach erosion, reduce wave action, and to protect homes in the area from coastal damage. About twenty years ago it was noticed that the groin had some damage, in 1985 the Council was presented with a report and cost estimates to repair the groin however no funding was available, since that time staff has continued to make application to different funding sources for State and federal grants, in September of 2000 the Council adopted a resolution approving submittal of a grant application to the State Department of Boating and Waterways, the grant required a twenty-five percent match, to that effort last month the City was notified that it is the recipient of an $800,000 grant with a $267,000 match from local funds, this project is proposed to extensively rehab the groin by means of repair and patch of holes and broken concrete, it is not a replacement project, the life expectancy of the repair will be thirty years as compared to a new groin that would cost in the vicinity of three to four times as much and be difficult to achieve permitting for which it would. Yost moved, second by Campbell, to authorize the City Manager to sign the Beach Erosion Control Construction Agreement with the California Department of Boating and Waterways, and to adopt Resolution Number 5106 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING A BUDGET AMENDMENT, NO. 03-20, FOR THE BEACH EROSION CONTROL CONSTRUCTION AGREEMENT (SAND RETENTION GROIN REPAIR), PROJECT NO. 50015." By unanimous consent, full reading of Resolution Number 5106 was waived. I AYES: NOES: ABSENT: Antos, Campbell, Larson, Yost None Doane Motion carried CITY ATTORNEY REPORT No report was presented. CITY MANAGER REPORT No report was presented. I COUNCIL COMMENTS Councilman Antos reported having received a copy of a letter from an attorney as well as information of a reply that came from an attorney in the law firm of the City Attorney indicating that in the future the attorney in their firm ought to be going through the office of the City Manager with their requests or information, that understood to be based upon some desire of the City Council. Councilman Antos stated however that no one had asked him, pointed out that the Council gets letters from people all the time regarding everything imaginable, he does not personally have a problem receiving letters from anyone, if appropriate he will in turn pass them along to the City Manager or the City Council, yet he has a problem in that if a letter is outgoing from the City Attorney firm he believes it should be signed by the City Attorney rather than another attorney in that firm, in this case it seems there is somewhat of a graying of the borders, the authoring attorney is not the City Attorney and in fact is representing the former member of the Council, he does not see how that attorney can speak for the City of Seal Beach. With the information that has come forward at this meeting relating to the Trailer Park, two different groups providing information, Councilman Antos noted that before being elected he had attended a meeting in these Chambers as 2-10-03 an observer, the meeting was with Hunter Johnson of Linc Housing, the specific question he posed dealt with the low and moderate income requirement and the sixty-six year time limit as provided by the California Coastal permit and City approval, the response was that they had never heard of it. He said however the MPROP loan documents that were submitted to the State had that paperwork as an exhibit, in other words the covenants holding the one hundred twenty units as low and moderate income for the sixty-six years, to him it seems strange that if that paperwork found its way into the MPROP loan application that no one knew where those documents were or anything about them. With regard to the questions that have come up from the residents of the Park, and Mayor Larson having stated that he would like to have the entire issue looked into and resolved, to that he agrees, he would like to have a complete, accurate, up to date report so that he knows what has gone on, who the players are, the game and the rules because he is hearing bits and pieces, the elected officials are to provide some leadership, deal with such issues, but can not because they do not have the information or part of the information, then later it i~,found that the information is not right. Councilman Antos reiterated his request for an overall report that contains everything about the Trailer Park and answers the myriad of questions that have come up to the Council at every meeting, as an example some of the information says that Linc Housing owns some trailers, they may not be buying them however how did they get in their name, were they inherited when the Park was bought, possibly the seller of the Park had them, however you do not have four or five units that are shown as owned by someone if they do not own them, it is not believed that the assessor makes those types of mistakes. I I Councilman Antos moved to direct the City Manager, his staff, or whomever appropriate, to prepare an overall report on the Trailer Park and respond to the questions that have been coming forth to the Council over the past two or three months relative to the Trailer Park, Linc Housing, tenant rights, who owns what, and submit same to the City Council. Councilman Yost seconded the motion. AYES: NOES: ABSTAIN: ABSENT: Antos, Yost Larson Campbell Doane Motion carried The City Attorney confirmed that the ~otion did pass, gives the City Manager direction to prepare a report and it would probably be best for the two in support of the motion to speak with the City Manager and provide specific questions to be addressed. Councilman Yost spoke in support of having information in black and white, the more information the better, there is a lot of information, different sides, and the truth is most often the most difficult to ascertain. Councilmember Campbell mentioned that unfortunately there many rumors. Councilmember Campbell said her abstention was because she felt Councilman Antos could resolve his concerns by speaking with the City Attorney, she is also not in favor of spending more staff time and money that the City does not have. Mayor Larson announced that the City has received a distinguished award from the Government Finance Officers Association and in turn presented the award to Ms. Arends- King, the Administrative Services Director. I 2-10-03 / 2-24-03 CLOSED SESSION No Closed Session was held. I ADJOURNMENT It was the consensus of the Council to adjourn the meeting until Monday, February 24th at 6:15 p.m. By unanimous consent, the meeting was adjourned at 8:41 p.m. Approved: J~)~ ~"'~( fZ City Clerk I Attest: Seal Beach, California February 24, 2003 I The City Council of the City of Seal Beach met in regular adjourned session at 6:15 p.m. with Mayor Larson calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Larson Councilmembers Antos, Campbell, Doane, Yost Absent: None Also present: Mr. Bahorski, City Manager Mr., Barrow, City Attorney Ms. Yeo, City Clerk o CLOSED SESSION The City Attorney announced that the City Council would meet in Closed Session to discuss the items identified on the agenda, a public employee performance evaluation pursuant to Government Code Section 54957, to confer with legal counsel with regard to initiation of litigation pursuant to 54956.9(c), and pending litigation pursuant to Government Code Section 54956.9(a). The Council adjourned to Closed Session at 6:17 p.m. and reconvened at 7:04 p.m. The City Attorney reported the Council had given direction to staff, no other reportable action was taken. ADJOURNMENT It was the order of the Chair, with consent of the Council, to adjourn the meeting at 7:07 p.m.