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HomeMy WebLinkAboutCC Min 2000-05-08 4-24-00 / 5-8-00 %) Attest: It: Approved: I Seal Beach, California May 8, 2000 The City Council of the City of Seal Beach met jointly with the Seal Beach Redevelopment Agency in regular and regular adjourned session at 7:00 p.m. with Mayor ProTem Doane calling the meeting to order. ROLL CALL - Present: COUNCIL Mayor ProTem Doane Councilmembers Boyd, Campbell, Snow Absent: Mayor Yost Doane moved, second by Boyd, to excuse the absence of Mayor Yost from this meeting. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried I ROLL CALL Present: - AGENCY Chairman Campbell Agencymembers Boyd, Doane, Snow Absent: Agencymember Yost Also present: Mr. Till, City Manager/Executive Director Mr. Barrow, City Attorney Mr. Whittenberg, Director of Development Services Mr. Badum, Director of Public Works/City Engineer Chief Sellers, Police Department Captain Maiten, Police Department Ms. Beard, Director of Recreation and Parks Ms. Arends-King, Director of Administrative Services Ms. Yeo, City Clerk At the request of the Mayor ProTem, the City Attorney explained that typically the Redevelopment Agency meets at 6:45 and the City Council meets at 7:00 p.m., this evening those bodies are meeting jointly and to be joined later in the meeting by a third body, the Seal Beach Public Financing Authority as there are actions that will be required of the Agency and the newly formed Authority. I APPROVAL OF AGENDA Councilmember Campbell requested that Items "F, G, H, and J" 5-8-00 I be removed from the Consent Calendar for separate consideration. The City Attorney advised that staff would request that the two closed session items listed on the agenda, Items "R" and "S", be continued to another time. Councilman Boyd inquired as to the reason, to that the City Attorney reported the intent is to have the City's labor negotiator meet with the Council on the item relating to employee negotiations, and that staff would like to provide a full report on all of the workers compensation cases which as yet is not completed as yet, and concurred that it is the intent to place that item on the next meeting agenda. Boyd moved, second by Doane, to approve the order of the agenda as revised. AYES: NOES: Boyd, Campbell, Doane, Snow Yost Motion carried ANNOUNCEMENTS No announcements were made. I PUBLIC COMMENTS Mayor ProTem Doane declared Public Comments to be open. He took a show of hands of those persons present interested in the Trailer Park issue. with regard to the recent news items relating to rabbits in Leisure World, Mayor ProTem Doane advised that that issue was not an agenda item, in fact it is not within the jurisdiction of the Council rather the Golden Rain Board and the mutuals, and requested a status report from the Police Chief. Chief Sellers reported receiving a permit request this past Thursday from an organization representing an extermination company, the request was for an exemption from the Code section that does not allow the discharge of weapons within the City limits, firearms, compressed air, pellet guns, etc. can not be discharged without an exemption signed by the Chief of Police. The Chief stated he reviewed the request and visited the Leisure World community and upon doing both determined it would not be safe to issue a permit to discharge a weapon in a residential area, that being any residential area in the community, it was not felt that there was a way to discharge a weapon safely in Leisure World, therefore the permit was denied. I Ms. Fran JOhnston, Coastline Drive, mentioned the wildlife that frequents the area in which she lives, and expressed appreciation to the Police Chief for not permitting the use of fire arms, that would be very dangerous. Mr. Bill Dyer said he was with 'In Defense of Animals,' a national animal protection group, expressed pleasure that there will be no shooting, there is enough violence in this world. Their recommendation is a program of trapping, sterilization and release as the best solution of the rabbit overpopulation, the ears.of sterilized animals would be notched, and most if not all rabbits would be gone naturally by attrition within five years, in the meantime the residents of Leisure World could plant vegetation that rabbits avoid, and the money proposed to be used for the shooting of rabbits could be dedicated to this program. Mr. Dyer said it is humans that have upset the balance of nature in Leisure World with the extermination of the coyotes and red foxes and it is again the animals that pay the ultimate price, as was recently illustrated in Catalina where they stopped the shooting of island goats, there are alternatives to death. Mr. Dyer concluded that the goodwill this act of compassion would generate would bring great credit to Leisure World, and 5-8-00 pleaded that this be made to happen. Ms. Diane Grubb, Leisure World, complained that she has fifteen rabbits on her porch, they have destroyed everything, described an incident observed the prior week which she claimed to be less humane that a pellet gun, and stated she wants the rabbits gone no matter how. Ms. Louise Charles, Leisure World, asked what kind of message is being sent to children, if one does not like something you kill it, she personally did not see the problem, and offered that there must be a more humane way to deal with this issue. Mr. Deitrick NiCholson, Garden Grove, asked what has happened to the statement of thou shalt not kill, stated he carried a sign in front of Leisure World for two nights in support of sterilizing not euthanizing, he was called names by residents, it is troublesome to hear senior citizens talking about death and killing animals. Mr. Nicholson said he has shot rabbits but that was for food, the statement that a rabbit can be killed with a pellet gun is incorrect, the animal would need to be shot at least twice, a pellet gun is not humane, said he was certain that a way could be found to trap and sterilize these animals. Mr. Nicholson said he did not believe in killing animals unless it is for food, this is bothersome. Mr. Lou Eversmeyer, Leisure World Mutual 9 president, said almost a year has been spent researching and trying to decide what to do and how, they have been told the rabbits can not be trapped and transported because they are diseased, that the EPA has changed the rules where rolled barley can no longer be used to incorporate poison now it is oats, but rabbits do not like rolled oats. Mr. Eversmeyer stated there are several cities in Orange County that have used the service they are proposing to use, safely, with zero incidents, and it has worked, it needs to be understood that they will not eradicate rabbits, they are merely trying to control the population, it is said the maximum reduction would be seventy-five percent so there will still be bunnies, the rabbits are also depositing their feces on the sidewalks where the seniors walk and then walk into their homes, and, the prior speaker was correct that the natural predators are gone. Mr. Eversmeyer reported having spoken with the Police Chief this date, appreciates his time and forthrightness, he has agreed to meet with the mutuals that are participating in this program, and possibly the City Manager, to hopefully reach a reasonable solution, trapping has been tried, the residents let them out of the cages or destroy the cages, and the population is growing. He again made reference to feces which he said is a health hazard, rabbit urine has burned the grass, they are destroying the greens on the golf course, it is costly to keep things up, he would be happy to have someone come in and remove the rabbits, do it quickly and get it done. Ms. Lisa Mundy stated she favors the spaying and neutering of rabbits, that is the best way to control the population, she has used this birth control for over nineteen years and it works, she is familiar with their habits. Ms. Mundy offered that there are people who will come into Leisure World and offer a humane solution if they are allowed, she would be willing to help raise money or use her own money if it is felt this is too expensive. Animals are very important, when someone is inhumane to an animal it is no different than being inhumane to a person, asked how one can teach children to not use guns to solve problems yet allow pellet guns to kill animals, as a member of the NRA she feels guns have their place but not to shoot animals in a residential community. Ms. Mundy offered her services and the services of others to Leisure World to resolve this issue in a humane and just way. Mr. Cardwell, Seal Beach Trailer I I I 5-8-00 I Park, stated that there are people in the Park on welfare and they have to continually qualify to receive their subsidized income, his understanding of the Park and the Covenant was to establish a community for low and moderate income people to live. He offered that if an annual evaluation is required as proposed by the new owner what happens if the earnings of one person is not sufficient and it is necessary for a second family member to go to work, or one receives an inheritance, or wins the lottery, that would make an annual requalification difficult, also, should he choose to sell his residence and explains to the buyer that they need to be low to moderate income yet if their income goes up they would need to move, then what value would his unit have. Ms. Carol Campbell, Welcome Lane, stated that she and other Park residents were present in response to a letter of May 1st from the Park owner requiring a yearly income qualification, a new requirement being imposed on the residents, the information is requested by July 31st and if it is not provided then the resident(s) will be evicted, evicted also if a resident makes too much money. Ms. Campbell recalled that the last time the Park residents were before the Council was in January when the owner was trying to impose a thirty- six percent rent increase, at that meeting the attorney, Mr. Stanton, represented the residents, it is now felt that this latest effort by the owner is just another in a series of attempts to place further restrictions on the residents, in fact last year the owner distributed a new set of rules and regulations, page eighteen thereof is this income qualification requirement, the recent letter is a follow-up to that, and mentioned that the advice of their attorney had been to not sign the rules and the residents did not. Mr. Talley, the consultant to the Park owner, has continually promoted this yearly income test, and the attorney for the residents has repeatedly said this rule is not enforceable because it is unreasonable and can not be enforced retroactively, has also said this would be a violation of the California Civil Code because if a rule upon which an eviction is based is not reasonable there can be no such eviction, the City has never required a yearly income qualification therefore it would be seen as unreasonable. She pointed out that the residents never agreed to a yearly income requirement or verification, it was their understanding that it was only upon Park entry that qualification was necessary, buying a home is a major purchase and life event, people would not have bought in the Park with a condition that they would have to move if somehow their income exceeded the requirements after making such major investment. Ms. Campbell said again that it is felt this most recent event is just another in a series of repressive actions on the part of the owner, it is felt that should he succeed in imposing the restrictions that is a first step towards dismantling the Covenant. She recalled that during the rent increase discussions it was reported that the Park owner had said that was exactly what he intended to do, to torpedo the Covenant full of holes, so it is felt that if the owner is allowed to impose the kinds of requirements he is proposing that would merely pave the way to abolish the Covenant, and it is hoped that the Agency will consider the concerns of the Park residents in making any decision. Mr. Gordon Shanks, Surf Place, inquired if the Trailer Park residents would be permitted to speak at the time of considering item B-1 or just during Public Comments. Councilmember Campbell advised that the intent is to request the City Attorney to write a letter to the Park owner, Mr. Hall, in that this issue has already been researched and the I I 5-8-00 opinion is that the residents only need to qualify when moving into the Park. The response of Mr. Shanks was that the Park residents would be in favor of that, also, his understanding is that Mr. Hall paid $2.6 million for the Park and is now asking $5.2 million if the residents choose to purchase the Park, also, it has always been the opinion that the residents need only to qualify once, that when moving into the Park, and if those present wish to present other points they should do so under now under Public Comments. Mr. Reg Clewley, Catalina Avenue, stated that within the last month two of the members of the Council have voted to approve the introduction of dogs into the environmentally sensitive area of Gum Grove Park, this will result in disruption of wildlife habitat in the Park, and made other non-agenda statements. Mr. Mike Berry, Trailer Park, spoke with regard to the original intent of the Covenant for persons qualifying to move into the Park, the author of the Covenant, Mr. Parrington, never meant for there to be yearly qualifications, nor was that the intent of the original Park owner, Mr. Dawson, he would have enforced that or would have brought that to the Council each year, neither the Agency or Council ever brought up that issue, so he would ask why now challenge the Covenant, to intimidate the Park population, definitely a possibility when one gets a document in the mail that says you have to do something that is unenforceable or will.be required to move, these are people who have loans on their coaches and mobile homes, there are one hundred twenty families there, they use their entire income, entire savings to be there, this is not a good thing to happen to any of them, the letter basically said I am going to evict you if you do not do what I ask. Mr. Berry noted that the Covenant .and Agreement are between the City and the ownership with an ultimate design to protect the people who live there, this has worked very well for a number of years, he urged that the Council address this issue quickly and clearly on behalf of the one hundred twenty households known as the Seal Beach Trailer Park. Mr. Paul Jeffers, Cottonwood Lane, also pointed out that the Covenant is between the Redevelopment Agency and the Park owner, when things like this come up someone should just respond to the Park owner, these are the parties to the Covenant not the residents, the owner is supposed to comply with respect to rents as well, the issue of qualification has been the subject of discussion and opinion many times. Given the uncertainty of the goal of the owner, Mr. Jeffers expressed his opinion that the owner is harassing the residents, many of the issues relating to the Covenant could be dealt with directly through the Agency, possibly there should be contact with the Covenant author, Mr. parrington, then get a line of communication with the new Park owner. He acknowledged the support of the City in the effort of the residents to purchase the Park, it is very important that the facts and figures be known as well as how strong the Covenants are and whether the support of the City is going to be realized, pointing out that he has been a resident since before the Covenants were written, the new owner needs to have discussions with the City. Mr. Jeffers read portions of the letter from Mr. Hall and stated it appears he went through the Covenants and is compiling his own regulations, in particular the end of the letter that states '...for these foregoing reasons each resident of the Park is required to provide specific financial information upon forms that were made available shortly together with any required documentation and to submit said forms to management under penalty of perjury, due to the importance of the required information, management is hiring the service of a I I I 5-8-00 I certified public accountant firm to review the submitted information for the completeness and to perform such other procedures or investigation as may be reasonably necessary to confirm the accuracy of the information...' Mr. Jeffers offered a copy of the letter to the Council, and predicted there will be a lot of vehicles moving in and out of the Park if this owner gets what he wants, and expressed appreciation to the Council for their support. Mr. A. J. McCarthy, Leisure world, stated he senses a discrimination of six thousand senior citizens in Leisure World that want to get rid of the rabbits, senses the Council looking the other way when the Police Chief makes a decision, that is not the way it should be done. Mr. Ray Monex, Trailer Park, said when he moved into the Park he was told one did not have to qualify every year, he is not so worried about himself but about others, if he were to make more money one year than another he would be evicted, the income of people changes, one year can be good, another will be bad. Mayor Yost declared Public Comments to be closed. PRESENTATION Chief Sellers thanked the Council for recognizing the police officers as "National Peace Officers Memorial Week" approaches, this Week was established to honor fallen officers throughout the United States, May 15th of each year designated as "National Peace Officers Week," the local Department recognizes this week with the promotion of "Blue Ribbon Week," and noted that over the years more than fourteen thousand police officers have given their lives to protect lives. I AGENCY/COUNCIL ITEMS RESOLUTION NUMBER 4802 - ASSEMBLY CONCURRENT RESOLUTION 98 - U. S. SUBMARINE VETERANS WWII MEMORIAL HIGHWAY Councilman Boyd noted that ACR 98 is to honor the World War II united States Submarine Veterans by memorializing Pacific Coast Highway from Golden West Street in Huntington Beach to westminster Avenue in Long Beach as the 'U. S. Submarine Veterans of WWII Memorial Highway. He. noted this legislation is being carried by Assemblyman Scott Baugh and Senator Ross Johnson and support at the local level is requested. I Councilman Boyd read Resolution Number 4802 in full entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH SUPPORTING ACR 98 RELATIVE TO U. S. SUBMARINE VETERANS WWII MEMORIAL HIGHWAY." Councilmember Campbell mentioned that during events held at the U. S. Submarine Veterans WWII National Memorial West located at the Seal Beach Naval Weapons Station, reference has been made that the sailors and equipment honored are 'on eternal patrol.' She also reminded that a service will be held at the Naval weapons Station Memorial on Memorial Day. Councilman Doane stated that the City is honored to have the Memorial in this community and it is worthwhile to look at the memorial plaques displayed. Boyd moved, second by Campbell, to adopt Resolution Number 4802 as presented. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried SEAL BEACH TRAILER PARK - RESIDENCY OUALIFICATION Councilmember Campbell stated her request is that the City 5-8-00 Attorney be authorized to prepare a letter in response Mr. Richard Hall, the Trailer Park owner, relating to the notice sent to the Park residents with regard to annual residency qualification. The City Attorney reported he had received a copy of the subject letter at the end of last week, he called Mr. Parrington who was Agency counsel and the person who authored the Covenants, and he agreed that one only has to qualify at such time as entering the Park, it is not an annual requirement, that has been the position of the Agency since the Covenant was enacted and adopted by the Agency. He noted having done some additional research and this is consistent with other affordable housing programs, again, the request is for authorization to draft a letter to Mr. Hall reaffirming that the Agency has consistently taken this position and will continue to maintain the same position that once one qualifies under the Covenant no further qualification is necessary. I Campbell moved, second by Doane, to authorize the preparation of such letter. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried Councilman Boyd requested that the Council be provided copies of the Covenant with any amendments, the most current scale of low and moderate income amounts, and all correspondence between the City and the Park owner. He suggested that the Park be provided this information as well for new residents, should a legal action be forthcoming it is the City that will have to defend the Covenant, the City does not want to go to court, it is preferred that the Covenant stand on its own merit, however given the threat that if one does not meet the income requirements they will be evicted, the residents should at least know what the guidelines are. I CONSENT CALENDAR - ITEMS "C" thru "M" Snow moved, second by Boyd, to approve the recommended action for items on the Consent Calendar as presented, except Items "F, G, H, and J", removed for separate consideration. C. Approved the waiver of reading in full of all ordinances and resolutions and that consent to the waiver of reading be deemed to be given by all Councilmembers after reading of the title unless specific request is made at that time for the reading of such ordinance or resolution. D. Approved regular demands numbered 27480 through 27608 in the amount of $423,433.00, payroll demands numbered 7490 through 7636 in the amount of $146,414.96, payroll liability account 9000260 through 9000272 in the amount of $76,858.20, and authorized warrants to be drawn on the Treasury for same. I E. Received and filed the Monthly Investment Report for March, 2000. I. Received and filed the Building Department Activity Summaries for January and February, 2000. 5-8-00 K. Approved the minutes of the regular City Council meeting of March 27th, 2000. L. Approved the minutes of the regular City Council meeting of April 10, 2000. I M. Denied the Actual and Constructive Notice of claim of Charles-Edward: Carter and Rosemary-Lee: Carter, and referred same to the City's claims adjuster and liability counsel. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR I ITEM "F" - AWARD OF BID - SEWER MAINLINE CONSTRUCTION - PROJECT NUMBER 814 Councilmember Campbell made reference to the statement on page two of the staff report that if the city's sewer rate restructuring is not adopted this project cannot be awarded due to insufficient funding. Councilman Boyd said to approve this award of bid tonight is an indication that the Council is going to automatically approve the sewer increase, which is not necessarily so, if the desire is to move forward with the sewer issues this is a project that is time sensitive because of trying to match the project with available grant funds, therefore he would propose to either continue this item until after consideration of the sewer/funding related items, deny now and wait until the sewer rate issue is resolved which in turn may cost the City the federal matching funds, or, authorize a temporary transfer from the General Fund into the Enterprise Fund to proceed with this project and then move forward with the sewer rate adjustment at the next meeting if so desired. He noted that the rate increase and the bond funding for sewer projects is what the focus of discussion is on this evening. Councilman Doane said he felt this should have been done when rearranging the agenda, however would have no objection to considering this item after items "P" and "Q", Councilmember Campbell suggested that Items "G" and "H" be held over as well, and Councilman Snow inquired as to the reason for the $1 million difference between the low and high bids. The Public Works Director responded that it was surprising to receive this number of bids in that the construction business is so competitive at this time, the bid amount is often due to the size of a company, there are competent contractors on the list, the low bid is actually quite good in that it is believed the engineering estimate was about $1.4 million. The City Manager stated that Item "G" is not related to the sewer project. I Boyd moved, second by Campbell, to hold over Item "F" until after consideration of Items "P" and "Q". AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried It was suggested that since Items "G" and "H" are not tied to Item "F" that they be considered. 5-8-00 ITEM "G" - AWARD OF BID - SEAL BEACH BOULEVARD MEDIAN IMPROVEMENTS - PROJECT NUMBER 706 Bids were received until April 25th, 2000 at 10:00 a.m. for Project Number 706, the Seal Beach Boulevard Median Improvements, at which time they were publicly opened by the City Clerk as follows: Excel Paving Co. EC Construction Co. All American Asphalt Nobest, Inc. Damon Construction S. Parker Engineering, Inc. $104,180.00 $123,887.80 $164,700.00 $176,010.00 $184,000.40 $199,449.70 I Boyd moved, second by Doane, to award the bid for the Seal Beach Boulevard Median Improvements, Project Number 706, to the lowest responsible bidder, Excel Paving Company, in the amount of $104,180.00, and authorized the City Manager to execute same on behalf of the City. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried ITEM "H" - PROFESSIONAL ENGINEERING SERVICES - SEAL BEACH BOULEVARD/WESTMINSTER AVENUE INTERSECTION IMPROVEMENTS - PROJECT NUMBER 665 Boyd moved, second by Campbell, to terminate the existing professional services agreement with Tetra Tech, Inc. and authorize the City Manager to execute a professional services agreement with Metro pointe Engineers to provide planning, environmental, and engineering services in conjunction with the Seal Beach Boulevard/Westminster Avenue Intersection Improvements, project Number 665, said contract cost not to exceed $69,000. I AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried ITEM. "J" - RESOLUTION NUMBER 4799 - TAX AND REVENUE ANTICIPATION NOTES - FISCAL YEAR 2000/2001 Councilmember Campbell questioned why the issue is for fifteen months, what is the time shortfall, and has this been done before, when, and why this time frame. The Director of Administrative Services reported the TRAN is offered for twelve, thirteen, or up to fifteen months, the time frame is dependent upon the interest rate that can be obtained on the investment, if a good interest rate the notes can be held longer for greater earnings. Councilmember Campbell stated if the TRAN is for fifteen months, and there is need to borrow some twelve months later, she has a problem with having two loans, her preference would be that one be paid prior to a second issuance. The Director noted that for the past three years the City has had a TRAN which has always been for twelve months, her feeling is that this TRAN will be twelve months however the intent was that the Council be aware that there are options. To a question of Councilman Boyd, the Director stated that the expiration date of the current TRAN is June 30th. Councilmember Campbell again expressed concern with fifteen months, her preference would be twelve months with no overlapping notes. Councilman Boyd explained that borrowing in the form of a TRAN issue is where the money is arbitraged with a low interest rate and more money is earned, if the time period is shortened that could I .... y-" 5-8-00 I be a loss of interest, the Director responded that for the past three years the TRAN has been for twelve months with an interest earning of $25,000 on average, that is what is expected for the upcoming year as well, for 1999/2000 the THAN was $1.5 million, the cash flow study was completed and forwarded by April 15th and the expectation is about $1.6 million for this issue however it may end up to be $1.5 with about $25,000 interest, if the interest rate is extremely good the interest could be more. Question was raised as to why not thirteen months, the preference for twelve months was again stated. The Director mentioned that the City has never had to use the TRAN monies however when doing spread sheets there is evidence of some cash flow problems, the benefit of the TRAN is the additional interest, there has not been a real problem with cash flow. Councilman Boyd said he is not opposed to a fifteen month issue, but the Council needs to be advised if there is ever a cash flow problem. The Director responded that if there were a cash flow problem the City could not pay its bills, and that is not a problem, the monthly investment report shows there is no cash flow problem, the TRAN was established for cities that might have a problem with cash flow. The City Manager interjected that it is not an opinion that the TRAN is of benefit to the City, it is a fact, virtually every city in California that is eligible does a TRAN, this has nothing to do with failure to report a cash flow problem, it is how cash flow is defined under the law that allows cities to take advantage of this type of opportunity, and to not do so would be throwing away $25,000 a year. The Director mentioned as an example that the current TRAN of $1.5 million was placed in a guaranteed investment contract, it was not used, on June 30th the money is returned to the borrower and the City receives the earned interest. To the question of Councilmember Campbell as to the difference in interest rates, the Director stated at this point that is not known, and historically she was not involved therefore did not know. I Councilman Snow moved to adopt Resolution Number 4799 entitled "A RESOLUTION AUTHORIZING AND APPROVING THE BORROWING OF FUNDS FOR FISCAL YEAR 2000/2001, THE ISSUANCE AND SALE OF A 2000/2001 TAX AND REVENUE ANTICIPATION NOTE THEREFOR AND PARTICIPATION IN THE CALIFORNIA COMMUNITIES CASH FLOW FINANCING PROGRAM." By unanimous consent, full reading of Resolution Number 4799 was waived. The time frame for the TRAN was left unspecified to allow flexibility with regard to interest rates. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried I A brief recess was called at 8:16 p.m. The Council reconvened at 8:22 p.m. with Mayor ProTem Doane calling the meeting to order. PUBLIC HEARING / ORDINANCE NUMBER 1461 - ZONE TEXT AMENDMENT 99-3 - TEMPORARY BANNERS - INFORMATION ITEMS THEREON Mayor ProTem Doane declared the public hearing open to consider Zone Text Amendment 99-3 to limit the number of items of information that can be placed on a temporary banner. The City Clerk certified that the notice of public hearing was advertised as required by law, and reported no communications received relating to this item. The Director of Development services presented the staff report, explained that ZTA 99-3 would establish a limit on the number of items 5-8-00 of information that the City would allow on temporary banners that a commercial business would like to display at their business location for promotional purposes, pointed out that the Zoning Code currently has a limitation on the number of items of information that can be placed on a permanent sign on a particular piece of property, that based upon the speed limit of the street that the business faces, some years ago the City adopted provisions for temporary banners that limits the size and time frame for display however there was no limitation placed on the number of information items that could be placed on a temporary banner. The Director stated it is felt the same type of regulations should apply to temporary banners as are applied to a permanent sign. He noted that the Planning Commission staff report and minutes were included in the Council report, and within that are photographs that show some of the problems that have been observed with the temporary banners. There being no comments from the audience, Mayor ProTem Doane closed the public hearing. I Councilmember Campbell expressed support for the ZTA, mentioned that the less items on a sign the easier it is to read, on a bulletin board erected on Candleberry in College Park East the information has been limited to three lines, that also avoids traffic safety issues. Campbell moved, second by Boyd, to approve the introduction and first reading of Ordinance Number 1461 entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING CHAPTER 28 (ZONING ORDINANCE) OF THE CODE OF THE CITY OF SEAL BEACH AMENDING SECTION 28-1801, LIMITING THE NUMBER OF ITEMS OF INFORMATION WHICH CAN BE PLACED ON A TEMPORARY BANNER." By unanimous consent, full reading of Ordinance Number 1461 was waived. I AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried PUBLIC HEARING - ZONE TEXT AMENDMENT 99-4 - DECKS - SURFSIDE COLONY Mayor ProTem Doane declared the public hearing open to consider Zone Text Amendment 99-4 relating to the placement of decks within Surfs ide Colony. The City Clerk certified that the notice of public hearing was advertised as required by law, and reported there were no communications received relating to this item. The Director of Development Services presented the staff report, explaining that ZTA 99-4 would modify existing provisions for homes located on the ocean front in Surfside Colony to allow the option of a ten foot wide deck on either the first or second floor of the home however not on both floors. He noted that current Code allows ten foot decks on the first floor only. The Director reported that the berm built on the Colony beach for wave protection has risen to such a height that the ocean can no longer be seen from the first floor of the homes, the ZTA provides an option to the homeowner to have a wider deck on the second floor to capture a view of the ocean. He noted the Colony has amended their internal regulations and have now submitted them to the City for approval. Staff clarified that the recommended action would be introduction of the proposed ordinance. There being no comments from the audience, Mayor ProTem Doane declared the public hearing closed. I . 5-8-00 I Boyd moved, second by Campbell, to approve the introduction and first reading of Ordinance Number 1462 entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING CHAPTER 28 (ZONING ORDINANCE) OF THE CODE OF THE CITY OF SEAL BEACH AMENDING SECTION 28-506 TO ALLOW 2nd FLOOR DECKS ON THE "A" ROW OF SURFS IDE COLONY TO BE 10 FEET DEEP." By unanimous consent, full reading of Ordinance Number 1462 was waived. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried CONTINUED PUBLIC HEARING / ORDINANCE NUMBER 1460 - SEWER CAPITAL RATE / CERTIFICATES OF PARTICIPATION - SEWER SYSTEM IMPROVEMENT PROJECT Mayor ProTem Doane declared the continued public hearing open to consider the sewer capital rate and Certificates of Participation for the Sewer System Improvement Project. The City Clerk reported that the notice of public hearings for April 24th and May 8th were mailed to each residence in the City, the notice and notice of continued public hearing had been posted, and reported no additional communications received. There was no additional staff report presented. I Mayor ProTem Doane invited members of the audience wishing to speak to this item to come to the microphone and state their name and address for the record. Mr. Gordon Shanks, Surf Place, stated his belief that any concerns relating to this item may relate to the process, it is understood that creating a Public Financing Authority for bonding is a means of getting away from the two-thirds required vote for general obligation bonds, this matter must have been in preparation for longer than just the last month or so, one of the problems is that things such as this hit people all of a sudden, why have people not heard of this proposal before, this is why people question the Council and the City Manager. Mr. Shanks suggested this could be done as an assessment district and be part of the property tax bill, this will be part of the water bill and not be deductible, like the utility users tax. He questioned also why this is being done now when there will be a new Councilmember and most likely a new Mayor in another week, therefore it would be thought this would be held for the input of the new member of the Council. Mr. Shanks noted that the only project that has been talked about is the sewer replacement in Seal Beach Boulevard, that cost is about $1 million, that leaves bond monies of about $9 million, so what is that proposed to be used for. He inquired as to the time frame for the bond issue, the response was thirty years, he said then by the time the bonds are paid there will be need for either another assessment district or bonds to redo what is now proposed, the $10 million in bonds will actually cost three to four times that amount with the interest, again offering his opinion that possibly an assessment district would have been better. Mr. Shanks said it also bothers him that there are people on the Council that vote for monetary increases yet they will not be paying the increase, his preference would be that they abstain. Mr. Zay Brand, Marvista, made mention that this issue started out with $1.3 million, also recalled at the last meeting a staff person declared that he would show the State that he could spend the $650,000 grant before the end of the year, that is a bad attitude for staff, the staff should be zealous in protecting the tax payers money whether it be from the State or local level, it is understood there are matching funds as well, this is for paving maybe forty I 5-8-00 percent of the Boulevard, the remaining sixty percent is from Westminster to the freeway and a section into Old Town, it was also said that if the sewer is replaced now then it will not be necessary to dig up the street and do the repairs later, in his opinion only about twenty percent of the forty percent would be the cost to dig up the street to put in a new sewer line. Mr. Brand stated his belief that this is being rushed into for a relatively small amount of money, why not take the $600,000 and put it towards the sewer rather than enhancement of the Boulevard, use the matching funds for the sewer if that is what is needed. The Council and City staff are the conservator of the tax payers money, he agreed also with the previous speaker that very little information has been forthcoming relating to this matter, why all of a sudden is Seal Beach Boulevard such an urgency, his feeling is that there is not sufficient data, there is money going to be spent to improve the looks of Seal Beach Boulevard and he is not in favor of this kind of attitude. Mr. Kirk Donald, College Park East, said if the sewer is needed it is needed yet objected to the way the rate is proposed, it seems as if this is a sudden thing, at the last meeting it was acknowledged that the current sewer charge is connected to water usage, yet in the notice the proposed charge has nothing to do with water usage rather an arbitrary assignment of money value by the size of the meter, the meter is put in when ones house is built and the owner usually has no say as to the size, it is said there are only about thirty houses that have a two inch water meter, they will be paying nearly $300 extra per year, again at the last meeting a lady claimed that the rate should not be tied to water usage because in her case the majority of her water use is her garden, but that is her choice. Mr. Donald said he did not believe it would be that difficult to tie the sewer rate into the water usage, there are records of that. With regard to closing the public hearing, Councilman Boyd suggested that it not be closed, that it be continued to May 22nd or until there is further discussion at this meeting. I I Councilmember Campbell stated that the homes in College Park East have three-quarter inch lines, that is determined at the meter not where it enters the house, there are only four CPE homes that have one inch lines, those were put in at the time they were extensively remodeled or a second story was added, it was most likely felt they would improve the water pressure however a plumber could convert them back to a three-quarter line. She confirmed that the City can only meter what goes into a house not what flows out, the City needs to have some way of rating this, a steady rate by some means, if they go on usage and there is a drought everyone's usage goes down thus the revenue flow goes down and the payments can not be made, that is why there needs to be a steady rate. Mr. Donald said he understands the scenario of a drought but there are records of usage over time. Councilman Boyd clarified that what is under consideration to be added to the bill is a capital facilities charge for replacement of the sewer system and a capital fund for the future, the water capital charge currently exists, at present there is a sewer charge of twenty-two percent of the water bill that pays for the transfer of the untreated wastewater from the home. Councilman Boyd explained that the system was looked at, the Sewer Master Plan was prepared, a cost was established for replacement of the system over a period of years, then there was .a financial advisor that guided the City to restructure the rates to cover the costs, that is how the rates were developed. Mr. Donald said his thought was that it would be I '". <c..",..._.... 5-8-00 I more equitable if the same rate applied to every residence, the only thing he received relating to this matter was the notices of the hearings to consider the sewer rate, again, he does not feel it is equitable, and he may be sensitive in that he is living alone in a house and paying the same rate as a family of five or six yet not putting the same pressure on the system, if this were tied to the water usage, as the usage goes up the sewer would go up as well. .Mr. Donald was reminded that water usage does not equate to the discharge into the sewer system, the capital facilities charge is based on the cost to replace the system. Mr. Zay Brand recalled that the Mayor had mentioned he would be holding a meeting sometime after this date, Councilmember Campbell as well. Councilmember Campbell responded that she has held the meeting. Mr. Brand stated that his preference would be to put this item off until there is more information, also, he was not certain that replacing the Boulevard line enhances development of the housing behind the Hill, there is question as to how this would tie in. Mayor ProTem Doane declared the public hearing closed. I The City Manager suggested that any questions of bond counsel be posed at this time as he is due to leave the meeting. Councilman Boyd said he had no direct questions at this time however there are questions with regard to the mechanism for the issuance of bonds, Certificates of participation to accomplish the financing of the system. Councilmember Campbell indicated she had a number of questions in general. The bond counsel, Mr. Quint, stated he would remain. The City Manager said it may be helpful, to put this issue in perspective, to go through when this process started, what was done to arrive at the projects and their prioritization, September is believed to have been the time when the Master Plan was presented to Council, the cost was estimated, and Council was advised that the only way the improvements could be paid for would be through a rate increase, the most logical way of funding would be through Certificates of Participation, at that time the Council directed staff to go forward and put together a proposal, that took approximately five months. The Director of Public Works stated that the Master Plan was not developed quickly, in fact it has been a project for over a year, the Rate Study as well, the Plan identifies a number of projects over a ten year period, the Plan actually began before the City became aware of the forcemain problems in Seal Beach Boulevard, it is not true that the Plan is the result of that, in fact this is just one part of the Strategic and Master plans for the City. In response to a question of timing, the Director mentioned the importance of awarding the bid for the Sewer Force Main Replacement Project, there is an approximate seventy day period for construction, the intent is to complete the project before commencing the overlay project that is to be done with federal money. He mentioned that the public comment with regard to a statement made at the last meeting was taken out of context, if one has been following the newspapers it would be seen that the State and federal government have been criticizing cities for not expending monies that have been granted them, the State has in fact placed a deadline on particular funds, the statement made by staff was to reflect the City's goal of not wasting public funds, therefore it is important that this project be accomplished in a timely manner so that the money does not have to be returned to the federal government for use on some other project, the goal is to keep it in Seal Beach. The Director emphasized that the Sewer Project needs to be I 5-8-00 awarded before June 30th, within fifteen to twenty days there then needs to be an executed contract, that would allow about sixty days if the project is awarded at this meeting, it can be seen that the schedule is very tight, any delay in completion of the sewer project will cause additional costs to the overlay project requiring additional time of the contractor, given the current price of petroleum products, the contractor would be forced to inflate his bid price so that he is covered if the City were to delay the project considerably, this could be up to an additional month and costly. A map was shown of the sewer system with projects proposed. I Councilmember Campbell noted that the agenda items listed as "P" and "Q" are intertwined therefore difficult to separate in terms of questions. The City Attorney suggested that the Council focus on Ordinance Number 1460, presented for second reading, relating to the sewer charges. Councilman Snow moved to continue the public hearing, receive testimony, and hold second reading of Ordinance Numb~r 1460. It was clarified that the public hearing has been closed, the motion would be to hold second reading and adopt Ordinance Number 1460. Councilman Doane seconded the motion. Councilman Snow mentioned that considering the age of the sewer system the City should start with this project, and asked the approximate age of the oldest pipe. The response was about 1920. The City Manager noted that Ordinance 1460 would establish the charge that has been determined necessary to pay the debt service. Recognizing that this is the second reading of the Ordinance, Councilman Boyd said he was not prepared to vote to increase the sewer rates, yet he is supportive of seeing a complete rehabilitation of the system as necessary, before this is done he would like the opportunity to discuss this further, there is a new member of the Council coming in, a number of decisions have been deferred pending the arrival of the Council member, this is being pushed through, it is understood that staff is in a hurry to do the forcemain project and get the federal money, yet there are other opportunities to fund this one project, monies could be transferred from the General Fund to the Sewer Enterprise Fund to do the Seal Beach Boulevard Project. He pointed out that speakers at this meeting have requested more information, at the last meeting he suggested an advertisement relating to this issue, while he was out of town he received seventeen phone calls from persons who did not want to call the staff yet were inquiring about this proposal, this is a $10 million obligation, use the money the City has, it was just heard that the City could use $2 million through the TRAN, there is a $1.5 million TRAN that has not been used, or seek other sources of funding, this does not have to be pushed through just to do a Seal Beach Boulevard forcemain. I Vote on the motion to adopt Ordinance Number 1460: I AYES: NOES: ABSENT: Doane, Snow Boyd, Campbell Yost Motion failed The City Attorney advised that the floor is now open for further consideration or discussion. 5-8-00 I Councilmember Campbell inquired as to the life of the Certificates of participation, where in the documents is that shown. The response of the Manager was thirty years. Bond Counsel, Mr. Quint, said he believed the City Council resolution approving financing, Section 2(a), sets forth a maximum par amount and maximum term, the reason for that being in the resolution is that at the time of sale and given the market it may be desirable to go to a shorter term or change the amortization, the resolution provides the parameters. Councilman Boyd inquired as to who would make that decision, Mr. Quint responded that it would be those people authorized to sign the documents, to that response Councilman Boyd expressed his concern with that being the Mayor, City Manager, Director of Administrative Services or any designee thereof, so after the resolution is approved it is up to one of those people to decide what happens, his feeling is that that decision should come back before the Council. Mr. Quint explained that the resolution sets forth the parameters, agreed however that there is a degree of discretion, if that is Council direction then it will be specific rather than not to exceed, however questioned whether the Council would want to put itself in the position of locking that in now. Councilmember Boyd suggested that the change merely be of the authorizing persons, the entire body, that change to be reflected in Sections 2, 4, 5, 6, and 8 of City Council Resolution Number 4801. Councilmember Campbell clarified that the Mayor, City Manager, or Director of Administrative Services can sign but only after the approval of the entire Council. Mr. Quint inquired of the City Attorney, if the rate increase has been denied then how can the financing be approved, the financing is dependent upon the rate increase. The City Attorney advised that it has not been denied, the motion failed on a two/two vote, can be considered at the next meeting, if Ordinance Number 1460 is not adopted then there will be no financing. I Councilman Boyd moved to continue the second reading of Ordinance Number 1460 until the May 22nd meeting. Councilmember Campbell seconded the motion. AYES: NOES: ABSTAIN: ABSENT: Boyd, Campbell Doane Snow Yost Motion carried I Councilman Snow indicated his desire to change his vote, upon inquiry the City Clerk advised that she had recorded the vote as reflected, the City Attorney then offered that should the vote change to a two/two the Ordinance will automatically be continued to May 22nd. Councilman Boyd said his understand then is that the Ordinance is continued to May 22nd, that a vote will be taken at that time to either increase the sewer rates or leave them as they exist, and the item will hopefully not be continued. The City Attorney recommended that some action be taken to establish the Public Financing Authority, that would not require the issuance of bonds, Certificates of Participation, or anything else. Councilman Boyd recalled that Item "F" the award of bid for the sewer project had been continued pending this discussion, and inquired if it will be acted upon after the Agency and Council actions on the Public Financing Authority, or consider Item "F" at this time. The City Manager stated his belief that Item "F" will need to be held over as there are not sufficient funds to pay for that project until the other 5-8-00 matters are dealt with. Councilman Boyd said his suggestion was to authorize a General Fund transfer to the Sewer Enterprise Fund as a loan. The response of the City Manager was that that is such a significant policy issue that it should be agendized, to transfer General Fund dollars to the Sewer Enterprise Fund for a major project like this warrants considerable consideration. To the inquiry if such a transfer could be done at this meeting, the City Attorney advised it could not, it would need to be placed on the agenda. I Councilmember Campbell made reference to the proposed Resolutions of the Agency and the Council relating to the creation of the Public Financing Authority, bonds are defined as being issued by the Authority pursuant. to the Act, her understanding was such issue would be Certificates of Participation, general obligation bonds require a two-thirds vote of the electorate. The City Attorney explained these are general rules, this has nothing to do with the issuance of Certificates of participation, this is merely the tool to create the Authority, the Authority can be used now or years from now. Mr. Quint stated this simply provides for the powers of the Authority, in fact if this financing structure is approved sometime in the future, other powers of the Authority would be used, powers that allow the buying and selling of property which is the Certificates of participation, the use of the phrase 'bonds' in the definition puts no limitation of what is desired to be done. REDEVELOPMENT AGENCY RESOLUTION NUMBER 00-2 - JOINT POWERS AGREEMENT - CREATING SEAL BEACH PUBLIC FINANCING AUTHORITY Agencymember Boyd moved to approve Resolution Number 00-2 entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH AUTHORIZING THE EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT CREATING THE SEAL BEACH PUBLIC FINANCING AUTHORITY." By unanimous consent, full reading of Resolution Number 00-2 was waived. Chairman Campbell seconded the motion for discussion. I Chairman Campbell made reference to Article I, again noted the definition of 'bonds', these are not general obligation bonds, her feeling is that the terminology needs to be corrected. Mr. Quint responded that those are not general obligation bonds, they are bonds of the Authority should the Authority determine to issue bonds sometime in the future, again, the financing structure that is proposed does not include bonds, again, this would allow the issuance of bonds in some point in the future. Agencymember Boyd suggested clarification for the record, a number of people have asked how bonds can be issued without the holding of an election, his explanation has been that Certificates of Participation are different than bonds, no bonds are being sold to finance improvements to the sewer system, Certificates are sold on installment, there is no obligation via the bond process therefore there is no requirement for a two-thirds vote of the electorate, to his knowledge this has been in full compliance with the Proposition 218 process to date. The response to that comment was that it was correct. The City Attorney also confirmed that to be true, the Proposition 218 provisions apply to the raising of the rates, in this case the City has exceeded what is required with the holding of two public hearings, Certificates of Participation are not bonds. It was noted that general obligation bonds would be reflected on the property tax bill, there are a number of forms of financing, some requiring an election, some not, the I ......w.. 5-8-00 I Certificates do not create a debt that is subject to the property tax of anyone, and they are payable solely from the sewer revenues. Question was raised if an election would be required to form an assessment district, the response was that it would require a majority protest to deny, that is a totally different type of financing, an assessment on parcels of property, in the case of Certificates the sewer revenues are the security for the bonds. Chairman Campbell stated the intent is to answer as many questions as possible relating to this item. Chairman Campbell referred to Article IV, Powers to Issue Revenue Bonds, noted again that these are not general obligation bonds therefore do not require a two- thirds vote. Mr. Quint explained this provides powers to the entity that are not planned to be used now. with regard to Article VIII, Councilmember Campbell corrected the City address to be 211 - 8th Street, requested confirmation that anyone acting on behalf of the Agency does so only with the consent of the full body, and inquired when the sewer charge will be concluded, is it thirty years. The City Attorney suggested that the actions of the Authority be concluded and then further questions with regard to the Certificates can be addressed. Mr. Quint explained that the creation of the Authority does not authorize any further actions by that body. Vote on the motion to adopt Resolution Number 00-2: AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried I RESOLUTION NUMBER 4800 - AUTHORIZING JOINT EXERCISE OF POWERS AGREEMENT - CREATING SEAL BEACH PUBLIC FINANCING AUTHORITY The Council was advised that a like action is required by the City Council. Boyd moved, second by Doane, to adopt "RESOLUTION NUMBER 4800 OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING THE EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT CREATING THE SEAL BEACH PUBLIC FINANCING AUTHORITY." By unanimous consent, full reading of Resolution Number 4800 was waived. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried RESOLUTION NUMBER 4801 - AUTHORIZING INSTALLMENT SALE FINANCING DOCUMENTS The City Attorney explained that given the continuance of Ordinance Number 1460, Resolution Number 4801 should likewise be continued. Boyd moved, second by Doane, to continue Resolution Number 4801 until the regular meeting of May 22nd. I AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried The City Attorney recommended that the Redevelopment Agency meeting be adjourned, that the City Council meeting be recessed, and the Public Financing Authority be convened. ADJOURNMENT - REDEVELOPMENT AGENCY It was the order of the Chair, with consent of the Agency, to adjourn the Redevelopment Agency meeting at 9:35 p.m. 5-8-00 Mayor ProTem Doane recessed the City Council meeting at 9:35 p.m. to the Public Financing Authority. PUBLIC FINANCING AUTHORITY Mayor ProTem Doane called the meeting to order. ROLL CALL - PUBLIC FINANCING AUTHORITY Present: Absent: Boyd, Campbell, Doane, Snow Yost I Also present: Mr. Till, Executive Director Mr. Barrow, City Attorney Ms. Yeo, Secretary RESOLUTION NUMBER PFA-OOl - ADOPTING BYLAWS/ESTABLISHING SEAL/NOTICE OF FORMATION - and RESOLUTION NUMBER PFA-002 - CONFLICT OF INTEREST CODE Doane moved, second by Boyd, to adopt "RESOLUTION NUMBER 00-1 OF THE SEAL BEACH PUBLIC FINANCING AUTHORITY ADOPTING BYLAWS, ESTABLISHING A SEAL FOR THE AUTHORITY AND DIRECTING THE FILING OF A NOTICE OF FORMATION WITH THE SECRETARY OF STATE" and to adopt Resolution Number PFA-002 entitled "A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SEAL BEACH PUBLIC FINANCING AUTHORITY ADOPTING A CONFLICT OF INTEREST CODE WHICH INCORPORATES BY REFERENCE THE STANDARD CONFLICT OF INTEREST CODE PREPARED BY THE FAIR POLITICAL PRACTICES COMMISSION." By unanimous consent, full reading of Resolutions Numbered PFA-OOl and PFA-002 was waived. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost I Motion carried RESOLUTION NUMBER PFA-003 - AUTHORIZING INSTALLMENT SALE FINANCING DOCUMENTS Boyd moved, second by Doane, to continue consideration of Resolution Number PFA-003 until the May 22nd meeting. AYES: NOES: ABSENT: Boyd, Campbell, Doane, Snow None Yost Motion carried Councilmember Campbell made reference to continued Council Resolution Number 4801 and inquired if these funds will be limited to use for the sewer system or if they can be used for other things. The response of Mr. Quint was yes, they would be limited to sewer improvements. Councilman Boyd pointed out that the item that was continued is the consideration of adding a capital facilities charge, he would propose the scheduling of a workshop to review this entire matter, it is a $10 million consideration, staff has done a very good job, let the people see just what has been done, advertise the workshop and explain to the people the projects under consideration to be funded through this process. Mr. Quint explained that the amount to be borrowed is about $4.18 million which represents about $3.75 million as net proceeds to the project, the difference is representative of costs and the funding of a reserve to the City's benefit, the remainder of the project costs will be funded from grants of about $1.2 to $1.3 million, then a potential second issue in about four years, this issue then is not $10 million. Councilman Boyd pointed out however that this is an obligation of the taxpayers for a lifetime sewer capital charge, once the bonds I '>........ 5-8-00 I are paid the charge remains on the bill, that is in anticipation that financing will not be necessary again when the need arises, this is because over the years this City has not set aside monies to replace systems such as the sewers, this is a charge similar to that for the water system, this is a reserve method to pay for the system, the financing is for a fixed period however, again, the charge will not go away once the Certificates are paid. Councilmember Campbell noted that Resolution 4801 sets forth an installment termination date of June 1, 2026, to that Mr. Quint advised that should be blank at this point. Councilmember Campbell made reference to the trustee, BNY Western Trust Company, page twenty four addresses resignation and appointment of a successor trustee, asking if the trustee would be assigned by the City, the response of Mr. Quint was yes, if the City chooses to. With regard to the Preliminary Official Statement, page five, she read the pledge of net revenues section, and asked if the net revenues are not sufficient then what, to that Mr. Quint said there is also a rate covenant, an obligation to increase rates if necessary to pay debt service, that is standard in this type of transaction. Her reference was then to page sixteen, direct and overlapping bonded debt, the listing of various agencies, inquired if Los Alamitos was shown for Measure K which appears on the property tax bill, in this case the charge would be reflected on the water bill. Mr. Quint said he believed that table was merely for information purposes, that is not intended to indicate what will secure this issue. I ADJOURNMENT - PUBLIC FINANCING AUTHORITY Mayor ProTem Doane adjourned the Public Financing Authority at 9:50 p.m. and reconvened the City Council meeting. I Councilman Boyd said given the questions from the citizens and the City Council his feeling is that the community has not been sufficiently advised on this matter, to that he would again suggest that a half page ad be placed in the local newspapers, print the Master Plan Executive Summary, pose four or five questions similar to what has been heard, explain what the new charge is for, for what length of time it will be charged, the average amount of rate increase, then possibly there can be a second reading on May 22nd on the rate Ordinance, that would constitute a sufficient due diligence, staff and the consultant have done a good job, some people do not know the particulars, some do not care, but as the District One representative he does. Councilmember Campbell offered that the people will take notice when this new charge shows on the water bills. The date for a sewer rate workshop was suggested for Thursday, May 18th. The City Attorney again clarified that the City sent notices to every residence in the community, the notice set forth the rates, notices were sent twice, therefore there has been proper notice and compliance with all applicable laws including Proposition 218, however if it is felt that further public input is desired, that can certainly be done. Councilman Boyd stated again his intent is to merely explain to the public why this is being proposed and a description of the project that the residents are going to be obligated to pay henceforth, also show the efforts of staff and the consultant. Mayor ProTem Doane and Councilman Snow indicated they did not support the proposal. Councilmembers Boyd and Campbell stated they would hold an informational workshop nonetheless. 5-8-00 CITY ATTORNEY REPORT No report was presented. CITY MANAGER REPORT No report was presented. COUNCIL COMMENTS To comments relating to water meter sizes, Councilmember Campbell said her understanding is that there are four one inch meters in College Park East, those could be changed back to three quarter inch by a plumber, reminding however that a City permit is required. The Director of Development Services noted that would be dependent on whether they need the flow for fire protection services as required by the Fire Department, that is generally the reason for the larger meters, required also for larger homes with a sprinkler system. Councilman Boyd reported he had been in Washington, D. C. this past week on Fire Authority business, also spent some time lobbying the City's representatives, Congressman Rohrabacher authored a letter to Congressman Ron Packard requesting $8.1 million funding for the Stage 11 sandfill for Surfside through Newport Beach, provided that makes it through committee it should be in the President's budget, the letter further requested an appropriation to the Army Corps of Engineers of $7.2 million for an artificial reef that would be used to improve the sand erosion problem, this a demonstration project the cost of which is about $4 million and if it does not work it would be their responsibility to pay for its removal, it is hoped the reef will be successful and a model project for shoreline erosion, a potential for the main beach at some point as well. He mentioned speaking with a number of House representatives with regard to communication issues for public safety agencies, the success of the COPS grants in this community, and infrastructure issues relating to the Rebuild America Program. It was confirmed to Councilman Snow that the Council would reorganize on Tuesday, May 16th. Councilman Snow reported on a trip he made this past week to the northern portion of the State, sponsored by the Orange County Water District, to tour the new Bullards Bar Dam, twenty-three hundred feet long and six hundred fifty feet high, the water used for agriculture and the generation of power, the second day a tour of the agricultural areas. Councilman Snow recommended that an inquiry be made of the OCWD as to their next trip which anyone having interest should make. I I ADJOURNMENT It was the order of the Chair, with consent of the Council, to adjourn the meeting until Tuesday, May 16th at 7:00 p.m. The meeting was adjourned by unan' ous consent at 10:05 p.m. Approved: Attest: clerk I