Loading...
HomeMy WebLinkAboutCC Min 2000-10-23 10-9-00 / 10-23-00 Attest: Seal Beach, California October 23, 2000 I The City Council of the City of Seal Beach met in regular adjourned session at 6:03 p.m. with Mayor Campbell calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Campbell Councilmembers Boyd, Doane, Larson, Yost Absent: None Also present: Mr. Barrow, City Attorney Ms. Yeo, City Clerk The Interim City Manager, Mr. MCIntyre, joined the Council in Closed Session. CLOSED SESSION The City Attorney announced that the Council would meet in Closed Session to discuss the items identified on the agenda pursuant to Government Code Section 54956.8, 54956.9(a), (b), and (c), and 54957.6, noted that there should be four items rather than one relating to anticipated litigation, and that the agenda may be amended to make a finding to include same. I Boyd moved, inasmuch as agenda. second by Larson, to add three additional items they came to attention after the posting of the AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried By unanimous consent, the Council adjourned to Closed Session at 6:05 p.m. and reconvened at 7:14 p.m. with Mayor Campbell calling the meeting to order. The City Attorney reported that the Council had discussed the items identified on the agenda as well as the three items added to the agenda, the City Council gave directions, there was no other reportable action. ADJOURNMENT It was the order of the Chair, to adjourn the meeting at 7:15 I consent of the Council, Approved: --/JaJJ,JwA.?~ Ma or I I I 10-23-00 Attest: ~OJJI City Clerk ~ Seal Beach, California October 23, 2000 The City Council of the City of Seal Beach met in regular session at 7:17 p.m. with Mayor Campbell calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Campbell Councilmembers Boyd, Doane, Larson, Yost Absent: None Also present: Mr. McIntyre, Interim City Manager Mr. Barrow, City Attorney Mr. Whittenberg, Director of Development Services Mr. Badum, Director of Public Works/City Engineer Chief Sellers, Police Department Chief Cushman, Lifeguard Department Ms. Beard, Director of Recreation, Parks, Community Services Ms. Arends-King, Director of Administrative Services Mr. Dorsey, Assistant to the City Manager Ms. Yeo, City Clerk APPROVAL OF AGENDA Councilman Boyd requested that items "K" and "N" be removed from the Consent Calendar for an update by staff. Boyd moved, second by Larson, to approve the order of the agenda as revised. AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried ANNOUNCEMENTS Councilman Boyd noted that the Seal Beach Chamber and Business Association will be sponsoring a beach cleanup on the north side of the pier this coming Saturday. Kim and Steve Masoner added that the beach cleanup will be from 11:00 a.m. until 3:00 p.m., the Governor's wife will be attending along with than five hundred participants, this will help the City'S cause to raise money for beach cleanup, also, next week there will a San Gabriel River cleanup from 9:00 a.m. until 4:00 p.m., suggested that those having an interest call the Chamber office for further information. Mayor Campbell announced that the College Park East Neighborhood Association will be hosting Halloween at Heather Park on Sunday, October 29th at 1:00 p.m. with games, contests, and fun for all. Councilman Yost mentioned the Bayers to Barkers fund raiser for the Animal Care Center and the California Paralyzed Veterans Run and Walk at the Naval weapons Station, both taking place on November 11th. 10-23-00 PUBLIC COMMENTS Mayor Campbell declared Public Comments to be open. Mayor Campbell noted that the public will have the opportunity to comment on the merchants parking, Trailer Park, and tennis club issues at the time they are considered, and that the five minute speaking time will be adhered to in all instances. Grant Newton, president of the Leo's Club, spoke on behalf of the Club in support of Red Ribbon Week. I PRESENTATION Mayor Campbell read in full the Proclamation declaring the week of October 23rd through October 29th, 2000 as "Red Ribbon Week." Boyd moved, second by Larson, to adopt the Proclamation. AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried Members of the Leo's were introduced and in turn presented red ribbons to the members of the Council. Chief Sellers expressed appreciation for the efforts of the young people in the community and noted that a successful Red Ribbon Week assembly was held at McGaugh School this date, the Chief was joined by Officer Paap and Sergeant Zanone. PUBLIC COMMENTS - continued Ms. Laura Brecht, 6th Street, stated she recently came upon information of which she felt the City should be put on notice as it relates to Government Code Section 87100. Ms. Brecht reported her inquiry as to the status of the business license of Councilman Boyd, found it to have expired June 30th and not renewed for either Shawn Boyd, Boyd and Associates, or BP Company and Associates, her research showed that Councilman Boyd sold his Dockside Yacht Service business then founded Boyd and Associates where it appeared he was the principal and sole employee, that company later became BP Company, the business address fluctuated between 7th Street and a post box, and said an employee of the City stated Mr. Boyd would be notified of the expired license. Ms. Brecht stated that during the past election campaign there was no license for the Dockside Yacht Service and to that asked who enforces the licensing requirement, what is the penalty for not having a license; as a member of the Council and having been charged with not having a license what is the recourse the City must follow. Ms. Brecht made reference to Fair Political Practices Commission Form 700, Schedule C requiring all sources of income and business positions to be listed with blocks identifying a range of monetary interest, the report of 1998 claimed income of over $10,000, no other income source reported, other positions included the Redevelopment Agency, Orange County Sanitation District and Orange County Fire Authority, if a stipend is received should it not be listed as a source of income under the minimum of $250. She mentioned too a like form filed for the City of La Puente in August, 2000 showing the only source of income as a La Puente business liaison at $10,000, a contract position renewed this year at $25,000, neither Boyd and Associates or other income source was listed. She then made reference to the 700 Form of January, 2000 showing the only source of income over $10,000 was the principal of Boyd and Associates, business activity as real estate/consultant, there is no listing of the sale of Dockside Services nor monies received regarding it, to which she questioned why the profit from the sale was not shown, she questioned also if it is mandatory to report spousal income, does this relate to how income tax is I I 10-23-00 I filed. Ms. Brecht said as of June, 2000, Boyd and Associates became BP Company gaining a partner to expand services, the associate specializing in federal assistance programs and legislative work spending up to three quarters of his time in Washington, D. C., this business does not have a Seal Beach business license yet the monthly invoices to La Puente uses a Seal Beach address and payments are mailed to that address. Ms. Brecht claimed that La Puente hired Mr. Boyd to assist in highlighting their business community as a public affairs firm specializing in economic development and land use planning, he writes a column in a local business paper, a recent article reports that he has provided assistance to the City of Orange, the Census Bureau, and the California Department of Fish and Game among others, therefore by not listing those incomes on the 700 Form Mr. Boyd is misleading the FPPC by generalizing them as Boyd and Associates income. To her the key word is accountability. Ms. Brecht said Mr. Boyd files a monthly report with La Puente as required by his contract, a report in recent months requests that a meeting be held with Allied who represent Togo's, Baskin Robbins, Starbucks, and Dunkin' Donuts. Given the expiration of the five minute speaking time, Ms. Dorothy Whyte continued to read the statement of Ms. Brecht which cited those companies as always looking for expansion opportunities with the belief there may be such opportunities in La Puente, the comments of Ms. Brecht were that that is a interesting point in that Mr. Boyd has been looking to bring Starbucks to Seal Beach, and according to a recent local news article the Council approved a new CUP for Starbucks which provides limits of their operational rights as to the drive through and childrens play area, Mr. Boyd has been working with a representative of Starbucks in a consulting capacity in La Puente, is their a tie to the proposed Starbucks in Seal Beach, if so is that not a conflict of interest, could he be collecting a finders fee, and since he has been dealing with Starbucks in an official capacity as part of his personal business might there be a conflict of interest where he should have abstained from voting given the possibility of receiving a commission, question is if his vote in favor is proper as a result of information that he has disclosed. Ms. Whyte read the statement of Ms. Brecht further relating to the new Boyds Books and Fine Gifts on Main Street, the store currently being remodeled, there has been no mention of a CUP at that location, a news article reports that the Council is looking to charge $200 per annual merchant parking permit, how does that affect the Boyd Books, as to the CUP if the store were to be a one hundred percent book store that would be no problem, the question is what percent of the store is devoted to books and what percent to fine gifts, the addition of gifts changes the CUP and that should be looked into by the Council, since the intent of the store is changing the CUP should be reevaluated, in future considerations relating to Main Street businesses Mr. Boyd should abstain since his family has a vested interest, upcoming consideration of Boeing as well given a conflict of interest, what about decisions relating to the coastline to receive benefits from the California Fish and Game, these need to be addressed. The statement of Ms. Brecht was that her information was meant to be given thought, requested that each point be looked into and addressed at the next Council meeting, this is putting the Council on notice, she wants this reported on in a timely manner, Mr. Boyd promised to bring more business to town and should he receive beneficial gains, questionable is his ability to serve on the Council. Ms. Dorothy Whyte, College Park East, questioned what background is necessary to I I 10-23-00 be an economic consultant. In reference to the recently distributed flier by her Council representative, asked why the residents were not informed of the presentation on the tennis facility, at the Recreation and Parks Commission meeting the District Four representative was asked to let her know when this presentation would be made however said she did not, stated that College Park residents have not had an opportunity to review the proposal, she did not see a notice of any meeting, the proposed park is not for College Park East, it is a City park, any member of commissions, the Council, and citizens have a right to discuss it. Ms. Whyte asked that the tennis facility proposed concept plan be held over, her feeling is that it is being rushed through, two of the Recreation and Parks commissioners were new and they voted on the item at their first meeting, she did not feel that was proper, and she did not believe that people are aware that part of Bluebell Park is proposed to be a parking lot. With regard to the comments made relating to his FPPC forms, Councilman Boyd asked that legal counsel review his statements to determine if he had made an error. Mr. Dave Bartlett addressed the Council on behalf of Hellman Properties and read a letter from Mr. Jerry Tone to the Council relating to the Coastal Commission hearing on the Hellman Ranch proposal. Mr. Tone expressed his hope that the City would agree with him that the Commission's unanimous approval of the project on October 11th is an exciting victory for the environment, the community, the neighborhood, and the coast as a whole, it has taken many years to reach this point and during that time there have been many concessions made by all parties, in truth, the project, as approved, is a great one, one that all can be proud of. Hellman properties looks forward to initiating the restoration of the Los Cerritos wetlands complex and are enthusiastic about being the first project in that endeavor, although there are some who fear that nothing will be done to restore the wetlands, he wished to take this opportunity to state that the wetlands will be restored, as an example, the most important first step towards restoration is to make the property available for sale, that has been done, there have been productive discussions with the California Coastal Conservancy, the wildlife Conservation Board, the California Department of Parks and Recreation, the Port of Long Beach, and other potential buyers of the lowlands, there is no question in his mind that an agreement will be reached with one of those buyers in the near future. Mr. Tone stated he looks forward to returning to Seal Beach soon to share good news with regard to a letter of intent to purchase the lowlands, in the meantime, the enthusiastic support of the many people in the community is appreciated, and he looks forward to working with all to make this project a reality. Mr. Bartlett expressed his personal thanks for the support afforded at the Coastal meeting a week ago and for the past couple of years, and he too looks forward to implementing the project. Councilman Yost noted that changes to the development agreement, etc. still need to come before the Council for reapproval, asked if that has been scheduled as yet, and offered that he would have further comments relating to the Hellman project under Council comments. The Director of Development Services responded that staff is reviewing the documents to determine what revisions will be necessary. Mr. Doug Brown, Seal Beach, once again brought into Chambers a large container of trash and debris he claimed to have collected from the beach and jetty, stated there needs to be help to collect the big pieces, and reported that a Catalina boat was recently stopped for dumping, something needs to be I I I 10-23-00 I done to stop the trash before it reaches the beach. Mr. Brown was encouraged to join the beach and River cleanup efforts on October 28th and November 4th. Mr. Gordon Shanks, Surf Place, said he did not want to be critical but somewhat practical, the people of Seal Beach have been made aware of the debris problem that affects the beach and waters, what could be more helpful would be for Mr. Brown to take his collections to the cities up-river to show them what is coming down-river, go to the areas where the problem begins. Ms. Kim Shearer, Seal Beach, said she did not necessarily agree with the prior speaker, she appreciates that Mr. Brown comes to each meeting and tries to bring an awareness to the beach problem, stated that fifteen years ago the beach was clean, today it is dirty, an attempt could be made to make the people up-stream aware but that is the duty of the Council, not the residents. Mayor Campbell mentioned once again that everything legally possible is being done to resolve this issue. There being no further comments, Mayor Campbell declared Public Comments to be closed. PRESENTATIONS - continued PROCLAMATION - INTERVAL HOUSE / DOMESTIC VIOLENCE AWARENESS MONTH Mayor Campbell read in full the proclamation declaring the month of October in the year 2000 as "Domestic Violence Awareness Month" and recognizing the leadership role of Interval Crisis Shelters. Larson moved, second by Yost, to so proclaim. I AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried Mayor Campbell presented the Proclamation to representatives from Interval House, thereafter it was noted that the first House was rented some twenty-two years ago, working from the garage with a card table as a desk and a single telephone as the 'hot line', Interval House has grown and Seal Beach continues to be its home base. The representative noted that Interval House will be the recipient of the Governor's Award this year for the second time, the only battered womens home to receive this honor, and accepted the proclamation with appreciation for the many women and children whose lives have been changed because of the support and pioneering leadership of Interval House, also, in honor of Adell Fontner Quinn, a roll model for Interval House, who passed away the previous day. PROCLAMATION - INFLUENZA PREVENTION MONTH Boyd moved, second by Yost, to proclaim November, 2000 as "Influenza Prevention Month." I AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried COUNCIL ITEMS WATER OUALITY MANAGEMENT PLAN - AD HOC CITIZEN COMMITTEE The Director of Public Works noted that this item is basically the next step in formulating a Water Quality Management Plan, the City was the recipient of a $450,000 State grant last year to move forward with this program, the first phase, the purchase of beach cleaning equipment, has been accomplished, this next phase is the preparation of a comprehensive plan. He mentioned that Council recently 10-23-00 approved the contract with John Tettemer Associates to perform the basic engineering work for the Plan, and as part of this process an ad-hoc citizen committee was envisioned that would work with City staff and consultants to develop something fitting to Seal Beach that is workable and realistic. The Director requested Council consideration of appointment of a five member committee, however the membership is at the option of the Council. Councilman Yost mentioned Mr. Mike Balchin, local Surfrider Chapter President and stated he would give thought to other appointees. Mayor Campbell suggested that appointments to such committee be agendized for the next meeting, and read an excerpt from the staff report relating to the grant. One appointee per member of the Council was also suggested. Councilman Yost noted that the Orange County sanitation District discovered the source of the last sewage spill, Seal Beach may receive some reimbursement monies for the clean up and economic detriment to the community. Councilman Boyd recalled the attendance of the Sanitation District Manager at a meeting of the Council shortly after that spill accepting the responsibility of the District, at which time there was an offer to run public service announcements on behalf of this City in the cities in the San Gabriel Valley area that are watershed contributories to the San Gabriel River, informing people of the problems that have been created, it is believed those announcements are continuing. I The understanding was that the appointments to the ad-hoc committee will be agendized for the next meeting. CONSENT CALENDAR - ITEMS "E" thru "0" Boyd moved, second by Doane, to approve the recommended action for items on the Consent Calendar as presented, except Items "K" and "N", removed for separate consideration. I E. 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 reading of the title unless specific request is made at that time for the reading of such ordinance or resolution. F. Approved the minutes of the October 9, 2000 regular adjourned and regular meetings. G. Adopted Resolution Number 4848 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING AMENDMENTS FOR THE 2000/01 FISCAL YEAR." By unanimous consent, full reading of Resolution Number 4848 was waived. H. Adopted Resolution Number 4849 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING FINAL BUDGET AMENDMENTS FOR THE 1999/00 FISCAL YEAR." By unanimous consent, full reading of Resolution Number 4849 was waived. I I. Adopted Resolution Number 4850 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH APPROVING THE CLOSURE OF THE NORTH AND SOUTHBOUND TURN POCKETS LOCATED AT THE MAIN STREET/PACIFIC COAST HIGHWAY 10-23-00 INTERSECTION." By unanimous consent, full reading of Resolution Number 4850 was waived. J. Received and filed the Building Department Activity Summary for June, 2000. I L. Approved the award of a Professional Services Agreement to AKM Consulting Engineers to perform the Water System Hydraulic Modeling Study for an amount not to exceed $40,000. M. Adopted Resolution Number 4851 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH DECLARING WORK TO BE COMPLETED AS TO PLANS AND SPECIFICATIONS FOR PROJECT #623, CONSTRUCTION OF THE LOCAL DRAINAGE PROGRAM, 10th STREET, CONTRACT ENTERED INTO BETWEEN E. C. CONSTRUCTION COMPANY AND THE CITY OF SEAL BEACH." By unanimous consent, full reading of Resolution Number 4851 was waived. O. Authorized the use of existing grant funds to purchase a five transceiver spread spectrum radio data network, display equipment for WestComm, and purchase hardware/software required for implementation of an Internet based, alarm triggered video network. P. Authorized the purchase of two, year 2000, Ford Expedition model, patrol and unmarked police vehicles utilizing grant funds previously approved in the 1996/97 Supplemental Law Enforcement Block Grant and City budgets for fiscal years 1999/ 2000 and 2000/2001. I Q. Approved regular demands numbered 29424 through 29638 in the amount of $566,349.98, payroll demands numbered 9464 through 9784, and 9000395 through 9000416 in the amount of $466,675.27, and authorized warrants to be drawn on the Treasury for same. AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR I ITEM "K" - PROFESSIONAL SERVICES AGREEMENT - ON-CALL UTILITY/ENGINEERING/OPERATIONS/PROJECT MANAGEMENT & SUPPORT Councilman Boyd spoke favorably of this proposal, said there are a number of projects on-going, Seal Beach Boulevard, alley improvements with water and sewer lines in Old Town and other areas of the community, City staff is minimum, as an example the large projects have consumed the Engineering Department that is staffed with a City Engineer and Assistant, the Planning Department as well is staffed with two people, and the majority of public complaints is that things are not being done quickly enough, also, contracting for work is cost effective and brings quality work. Boyd moved, second by Larson, to approve the on-call Professional Services Agreement to retain Ergun Bakall, P. E., Consulting Civil Engineer at a rate of $100 per hour, not to exceed the various budget line items as shown within the City's adopted 10-23-00 2000/2001 fiscal year budget under the Water and Sewer operational cost centers and various water and sewer capital improvement projects. AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried ITEM "N" - STATUS REPORT - BEACH SAND MANAGEMENT PROGRAM / WINTER BERM CONSTRUCTION The Director of Public Works reported that the beach sand berm is essentially in place, about one more day of sand moving equipment. He mentioned that there has been backpassing of a substantial amount of sand this year, as there was last year, this will continue to be done on an annual basis, surveys were done before the backpass and it was found that a considerable amount of sand had moved around the groin, settling on the west beach, a large amount of that was moved back, and some of the finer sand was moved from the front of the west beach homes, also, a means of trading the fine sand for a better quality sand is being looked into. Councilman Boyd expressed appreciation for the efforts along Seal Way, working with the residents of that area, sand management is a major issue and saves considerable City monies. Boyd moved, second by Larson, to receive and file the status report. I AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried Mayor Campbell took a hand survey of those interested in the remaining agenda items. A majority of the Council dismissed a suggestion to hold some items over to another meeting. I PUBLIC HEARING - MERCHANT PARKING PERMIT FEE Mayor Campbell declared the public hearing open to consider an adjustment of the fee for merchant parking permits. The City Clerk certified that the notice of public hearing had been advertised as well as hand delivered to the local merchants, and that written communications signed by twenty- seven persons in opposition to the fee adjustment were received, copies of which were provided the Council. The Interim City Manager mentioned that staff made a presentation on this subject two meetings ago, set a public hearing for the last meeting however that was continued in response to a request from the business community, the issue is rather simple, what is an appropriate amount to charge for the annual permit, how often should they be issued, what is the fair return to the taxpayers for this expensive parcel of property that is being used for parking purposes. The Manager offered that staff has no recommendation as to what the fee should be however it appears that the current rate is low. Councilman Boyd noted an issue brought up earlier as a result of his interest in the book store on Main Street, and inquired if this would pose a conflict of interest. The City Attorney responded that the issue would be if this consideration would have an impact on the value of the property or rent. Councilman Boyd stated they do not own the property, they are a tenant. Based on that, the Attorney said it would seem unlikely that this would have a financial impact on the rent, however it would be a decision of the Councilman as to whether there is a lease provision where the rent would fluctuate as a result of the merchant parking permit fee, the response was that there is not, therefore the opinion was that Councilman Boyd could act on this item. I 10-23-00 I Mayor Campbell 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. Brian Kyle, Seal Beach, said he wished to speak to the proposal to raise the parking fee from $40 to $200, mentioned that this fee is voluntary, it is not a mandatory City fee, in 1983 the fee. was $25, raised to $40 in 1994, at that time there were two hundred fifty parking spaces sold, there are one hundred sixty sold at this time according to the staff report, the dollars off by only $300. Mr. Kyle stated he offers to split the permit cost with his forty-seven employees, most are college students, he would guarantee that if the price is raised none will buy a permit, the lot will be empty, an example is the lot in the 100 block of Main since meters were installed, no one uses it. Mr. Kyle recalled that in 1994 $50,000 was spent for the Zucker Systems report, which stated that based on the parking analysis the demand and supply was considered to be a relatively good balance yet there was need to provide additional conveniently located parking spaces, the idea of the Main Street Specific Plan Committee was to move the employees and merchants from parking on Main Street to the 8th Street lot, that made sense, it was good parking management, and the only program that is working. Mr. Kyle suggested that if there is a system that works it should be left alone, again, there are now only one hundred sixty permits being sold, if the fee is increased none will be sold, that results in a bankrupt system with people parking on Main Street or the residential streets, the City will be creating its own problem. Mr. Woody Woodruff, Main Street business and property owner, said he wished to address the proposal to meter.the 8th Street lot or raise the merchant parking permit fee by five hundred percent, both will fail, it is known that the metered lots off-Main, while continuing free, unenforced parking on Main Street, has caused the metered lots to be greatly under used which creates traffic congestion on Main by people cruising for free parking, this mistake has already been made, what would be the motivation to do it again. The alternative plan for a five hundred percent increase of the price for merchant parking permits to $200 is also ill-conceived, many of the employees on Main Street are high school and college students that work part time or summer employees, they can not afford this cost, the businesses that purchase or split the cost of parking stickers with their employees will not be able to continue to do so with the increased price, thus more employees will park on Main or clog the residential streets, the merchant lot will no longer be viable, the only component of the parking policy that has worked, his feeling is that instead of killing the only successful component of the parking management program, it should be revitalized, restore and increase the availability of merchant parking by cutting the fee in half, that is double the price of a resident sticker which is valid twenty-four hours, and again allow the merchants to park in the under-used metered lots and incorporate the use of the south side of the beach lot. Mr. Woodruff said he understands the City's concern with revenue yet traffic and parking problems can destroy the business district and the neighboring residential areas, the consequences is 'lost sales tax revenue, lower rents for residential and commercial properties, lost taxes from lower property values, and lost taxes due an increased need for policing, all revenues should be looked at and'how they are affected by decisions. Mr. Woodruff said he was asked why the City should be subsidizing Main Street, first, the businesses have paid between $250,000 to $300,000 in in-lieu I I 10-23-00 parking fees yet not one new space has been created, all know of the grandfathered and bootlegged apartments and garages rented out and not used for parking and triplexes with only one space, the business community is no more subsidized than are the residential areas, when talking subsidizing that is an attempt to divide people, this is a one-and-the-same community no matter the area of the City, no one should be allowed to divide the community. Mr. Woodruff submitted a petition having three hundred twenty-five signatures, aid there were more however some pages were lost, the signatures are mostly residents as Main Street is primarily owned and run by residents. Mr. Gary Edens, recent owner of Woodstock, thirty year resident, suggested that this proposal be looked at from a business point of view, the hardest part of retail is selling things for a profit, determining what a fair price is, that is what needs to be done if one wants to stay in business, his feeling is that the City should be more responsible in looking at not just the value to the City but supply and demand, what people will buy, employees that are students can not afford to purchase a parking permit. Mr. Edens asked where the $200 cost proposal, a five hundred percent increase, came from, in his opinion no one will buy a permit at that, this should be done fairly, there will be no profit made from this, hopefully a more fair agreement can be reached, and to a prior comment, the merchants are not asking to be subsidized. Mr. Steve Zenga, a web business owner located above Woodstock, said he has eight full time employees, he pays for their parking, the City is now asking him to pay $1,600 per year rather than $320. Ms. Lisa Woodruff, Main Street business and property owner, mentioned talking to a member of the audience who, as a college student, said that if this fee is raised she will need to quit her part time job and work elsewhere. Ms. Woodruff said she is against a price increase of any amount, as a former resident she is aware of how it will affect them, working on Main Street she is aware too of how it will affect employees, as a business owner she is aware of how it will affect merchants, at present there are a number of Main Street employees that have a difficult time paying $40 for a parking permit, most are part time, most are high school or college students, some merchants have the ability to assume the financial responsibility to purchase the permit or share its cost but not all merchants can afford to do that, some have a few employees, some have twenty or more, with the increase the employers will not be able to assist their employees with the permit cost, with the price increase and use.of Main Street and residential areas for parking residents will have a much more difficult time finding a parking space near where they live, consumers will not want to shop Seal Beach when parking can not be found, this has been found true by talking to her customers, all of these problems the result of an unnecessary price increase. Ms. Woodruff stated that not only should the price of a merchant parking permit not be raised, other areas need to be opened up for employee parking so that merchant customers can park and spend money in this town, the price increase proposal is short sighted, and will be staggering and financially devastating to many who work and live in Seal Beach. Mr. Stan Anderson, Seal Beach resident and business owner, asked what problem is being solved by this proposal, there is a parking management problem, obviously nothing has been solved, there has been an in-lieu program for over ten years, it is not known where that money is, his understanding is that some of those monies were spent for the Main Street Specific Plan to help resolve some of the parking management problems, he has seen nothing I I I 10-23-00 I done. The need is to increase parking not reduce parking, he would not like to see parking shift to the Seal Beach Center but his feeling is that that is what will occur, there needs to be a place for these people to park, it. is not necessary to raise the fee from $40 to $200, the merchant stickers being sold is reduced to one hundred sixty, now there will be none, someone needs to do a parking management program, raising the fee does not solve the problem, it needs to be known where the merchants can park, there should be no price increase unless there is some means shown that this will help the merchants and the residents with their parking situation. Mr. Tom Powers said his daughter works on Main Street, has a parking sticker yet has received three citations, if this fee is raised to $200 she will not be able to afford a sticker. Dr. Walt Babcock, Walts Wharf, agreed with the comments of the business people, it seems as if the Council is trying to alienate the people who do good business for the City, it would be nice if the City could sell the spaces for $200 but the spaces can not be guaranteed so this does not seem reasonable. Dr. Babcock noted there are strict parking rules at Walts, if an employee parks in the Main/Central lot or the dental office spaces one can lose their job, if the Council comes to a decision to approve this increase the only choice will be to tell the employees to park wherever they can, that will create additional problems for Main Street. There being no further comments, Mayor Campbell declared the public hearing closed. I Councilman Boyd noted that this issue has come up a number of times, discussed with staff, the conclusion being that something is being provided the merchants that is of significant value, the ability to park in the lot at a relatively fair price, the current fee can simply not be reduced, maybe it is timely to relook the parking management issue, possibly an ad hoc committee consisting of business, Council, and others, personally he does not advocate meters on Main Street yet others are for it, at this point the issue is what is a fair price for a merchant permit. Councilman Boyd made reference to the breakdown provided by staff commencing at $.02/hour based upon an annual two thousand hour employment schedule at the current $40 annual fee up to a $.10 hourly equivalent for a $200 annual fee, this was looked at for the purpose of discussion, he did not feel that $200 was ever seriously considered, optimistically the City would like to realize $200 from each of those spaces, however a point was made during this discussion that something being sold must be reasonable. He said he would advocate an increase of the fee yet in addition an amendment of the parking program, currently a merchant buys a permit once a year and places it on the vehicle, his feeling is that this should be a transferrable pass that can hang from the vehicle mirror, this would allow a merchant to purchase permits that can then be circulated among the employees, possibly tie a CPI index to the permit fee so that it is not continually being revisited, maybe provide for a five year review, at this time increase the fee to $48, which in his opinion is still an inadequate fee. He offered that with further planning it is felt additional parking could be made available behind the businesses, yet it is understood that it is challenging to find parking at times, the store that his family is opening will have parking behind, this is an environment that was built many years ago, there is an attempt to bring people into conformance with the Code, one way that is done is to encourage merchants to park in the 8th/Central lot, it is correct that the parking was taken I 10-23-00 away in the lots that are currently metered, in part that was due to citizen complaints that there was no parking on Main Street, now there is and at a minimal fee, if cruising is a problem it may be necessary to relook the issue. Councilman Boyd moved to make the merchant parking permit transferrable and as a hang tag, establish an annual review period for adjustment by the CPI, and that the permit fee for 2000/2001 be established at $48. Councilman Larson seconded the motion. I Mayor Campbell noted the mention of a comprehensive parking policy and a parking management problem, to that she agreed for the reason that as long as there is free parking anywhere people will use it. With regard to the new parking system at the beach, the feedback she is getting is that it is confusing, she has personally never favored a flat fee for the beach parking, in her opinion that encourages people to not use those lots because they do not want to pay $6 for parking time they are not going to use, her preference would be to pay for the time used, as an example would anyone pay $6 for parking to have lunch at Ruby's, the 1st Street lot is confusing as well and Rivers End may very well be losing business, she agreed that $200 per permit for the 8th/Central lot is excessive, maybe it is time for meters but no one wants them, even if there were meters people will continue to parking anywhere that parking is free, and agreed that a comprehensive parking program is needed, one that takes in all lots, Main Street, the beach lots, etc. In response to the Mayor, the Manager again confirmed that the opinion of staff is that the merchant permit is very much under valued, especially if compared to the cost of a meter. In response to a member of the audience, Councilman Boyd pointed out that an annual beach parking permit can be obtained for about $60, if one is willing to walk from the beach lot to their employment which may be three blocks away, that is an option, the current merchant permit fee is $40, that could be raised significantly and see if that plan fails, or, raise the fee a small amount now and make it transferrable, also, Councilman Boyd said he does not like in-lieu parking, it should not exist, if there is inadequate parking on-site one should not be allowed to build, in his opinion there should be a condition that requires a back door to a business to access any parking that may be made available behind the Main Street businesses. I By unanimous consent of the Council, the public hearing was reopened to allow the comments of a member of the audience. Mr. Stan Anderson addressed the Council once again, stated that one good point was to open the beach lots to the merchants, that would solve considerable problems, that should be included in the merchant parking program and at the same price as the annual permit. Councilman Boyd stated he would include the suggestion as part of his motion. I Councilman Larson said possibly parking should be looked at overall, maybe form a committee consisting of the business community, no merchant wants to use street parking if it takes away from his business, maybe these issues should be discussed in that format. Councilman Yost agreed, possibly that should have been done prior to this consideration, use of the beach parking would be good, Dr. Babcock should be included in such discussions, some of the other merchants need to follow the practices he applies to his business, his preference would be a committee of business people and I 10-23-00 residents in that there are a number of resident serving businesses on Main Street, if the costs are raised significantly those types of businesses will be phased out, they are part of the quaint, small town atmosphere of this community that it is desirous to preserve. I Councilman Yost moved a substitute motion to form a committee to look into the parking management issue. Councilman Doane seconded the motion. Councilman Yost again said he would like Dr. Babcock to be part of that Committee, and Mayor Campbell stated she would like to have Councilmembers Boyd and Doane and Mrs. Masoner, the Chamber and Business Association President, and Mr. Anderson also be members. Councilman Boyd spoke in support of the formation of such committee, this should have been done previously, however questioned what is expected to come out of such ad hoc committee, if it is expected they will come back with a recommendation for a parking permit fee for this one lot it will be parking for nothing, if there is a committee then all parking issues should be addressed. Councilman Doane suggested that this committee be designated as a parking Management Committee, said there is no shortage of parking otherwise there would not be vacant spaces, he has personally been looking at the parking management problem for some nine years, concurred that Councilman Boyd should be a member of the committee, he too would like to serve, Mr. Corbin should represent staff as he has done a study of the issue, he would also like to have Mr. Anderson, Mr. Woodruff, and Mr. Kyle be members, if Mr. Kyle is not available then Dr. Babcock would be his choice, there needs to be input for and against any solution that there may be, the existing parking needs to be available to those who are going to shop Seal Beach, the people visiting the beach should use the beach lots only. Councilman Doane expressed support for the transferable permit, he would not support an $8 increase of the fee, and the committee considerations must be comprehensive to include the beach, Main Street, residential streets, and all of the lots. Councilman Boyd suggested that the ad hoc committee membership be agendized for the next meeting, and withdrew his prior motion, noting however his desire for a transferable permit. I Councilman Yost restated his motion to retain the current practice and cost for the merchant parking permits, that it be allowed to be transferable, and that the membership of the ad hoc committee be agendized for the next meeting. Councilman Boyd seconded the motion with the understanding that the ad hoc committee will consider all parking issues in the business district south of Pacific Coast Highway. AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried I By unanimous consent, the Council declared a recess at 8:55 p.m. Mayor Campbell reconvened the meeting at 9:11 p.m. PUBLIC HEARING - APPEAL - CUP 00-10 - 1198 PACIFIC COAST HIGHWAY - BLACKBOARD BISTRO Mayor Campbell declared the public hearing open to consider the appeal of Conditional Use Permit 00-10 permitting the on- premise sale of beer and wine at an existing restaurant, Blackboard Bistro. The City Clerk certified that the notice of public hearing had been advertised as required by law, and reported receipt of two communications in support of the appeal, copies of which had been provided the Council. The 10-23-00 Director of Development Services presented the staff report,' reviewed the options available for Council consideration, explained that the property has been utilized as a restaurant from about 1989 or early 1990, the building was previously an elementary school, the Redevelopment Agency acquired and rehabilitated the property for the commercial uses that presently exist. He noted the restaurant is approximately 2,400 square feet with a 400 square foot outdoor patio dining area to the north of the building. The Director reported the Planning Commission held a public hearing on this application on September 20th, the Commission approved the project subject to certain conditions, an appeal was subsequently timely filed and is now before the Council for final determination. The Director reviewed the provisions for findings that are required to be made for a CUP by the Planning Commission or on an appeal that the City Council must make, the Commission made affirmative findings on all three findings and are set forth in the Commission resolution. He described the property as being at the corner of PCH and 12th Street, the property is in a C-1 commercial zone, to the rear of the property there are play areas for the day care facilities, Zoeter field, and a skateboard park that were acquired by the City, there is a mix of residential and commercial uses on the easterly side of 12th Street, and immediately north is the Seal Beach Center, and showed a photograph of the property used for restaurant purposes. As part of the Planning Commission process in looking at Conditional Use Permits there is an evaluation of over- concentration of liquor licenses within a particular census tract, that is an issue the City may consider in its deliberations as to whether or not to grant an additional CUP, this particular census tract, based on population under ABC criteria, would allow seven licenses without being considered under their rules to be over-concentrated, this census tract includes all of Main Street and everything on the ocean side of Pacific Coast Highway, within that area there are twenty-six currently licensed locations which, given the land uses that exist on Main Street and the south side of PCH, it is not unusual to have that type of concentration in an area, the Commission evaluated that,. did not feel it was of concern, and recommended approval of the project based upon the criteria that is set forth in their approving resolution. The Director explained that the issue of over-concentration does not necessitate denial of a license yet is an issue that the Commission can consider and determine based upon their judgment and testimony received, as set forth in the staff report this use is at PCH and 12th Street, a commercial use of a property, a restaurant for a number of years, the only change proposed is the on-site sale of beer and wine. He noted that upon looking at the interior layout of the restaurant and outdoor dining area it was not seen as being detrimental to the adjoining land uses, particularly the daycare centers, the issue of noise was also evaluated, particularly from the outdoor dining area, the resultant traffic noise from PCH would drown out any noise coming from that area. A picture of the interior of the restaurant was shown as entering from the main entrance off the parking area showing an approximate ten counter seats and cashier area, the total interior restaurant seating is fifty- eight, the outside patio is forty-eight, access to the patio is from the interior of the restaurant and one entry to the rear of the patio. The Director noted that the Planning Commission recommended approval of this matter as conditioned by unanimous vote,.the item now on appeal. Councilman Yost inquired as to the law relating to alcohol in businesses and I I I 10-23-00 I proximity to schools. The Director responded that the City has no regulations specific to alcohol permits, the Conditional Use Permit is the process used by the City to evaluate compatibility of uses, the Alcoholic Beverage Control has regulations for their agency, the understanding of those regulations is that this is an issue they consider in granting an ABC license and if there are objections filed at the time of their posting of the-property of the intent to sell alcohol the ABC will consider that as part of their evaluation as to whether or not to approve the ABC license, the ABC process is a different level of review to that of the City process. I Mayor Campbell invited members of the audience wishing to speak to this item to come to the microphone and state their name for the record. Ms. Carla Watson, Catalina Avenue, stated her concerns lie with the parking situation, persons backing out of a parking space where there are children at the skateboard park and children being picked up late from the nursery schools. Mr. Joseph Barbara, proprietor, said he would let the reputation of himself and his partners at Finbars speak for the type of establishment they run, and requested Council consideration of granting the beer and wine license for the Blackboard Bistro. To the issue of being too close to the pre-schools, Mr. Barbara said he has spoken with the schools on more than one occasion, they have no problem with the Bistro being a neighbor, with regard to the parking he said he could not address that concern, people simply need to be careful. Mr. Kevin Gafney, 12th Street, residing across the street from this establishment, spoke favorably of the on-premise sale of beer and wine, the previous restaurant, Russells, is gone, it is good to have a restaurant reestablished at that location, alcohol sales increase revenue, revenue increases tax dollars, that is something he has heard from everyone is what Seal Beach needs, with regard to noise, he hears more noise from baseball bats and crowd cheers at a Zoeter field softball- game than from the patio area of the restaurant which he believes to closes at 9:00 p.m., they are believed to be a respectful business as has been proven at Finbars, and he would expect them to operate similarly at the Bistro. There being no other comments, Mayor Campbell declared the public hearing closed. I Councilman Yost made reference to the 'Commissioner Questions' section of the minutes of the Commission meeting of September 20th where the Assistant Planner stated that the ABC representative had reported that 'ABC can refuse to issue an alcohol license to a business that is located within 600 feet of an existing school, but it is not an automatic refusal', and questioned if that is the rule. The Development Services Director explained that is a regulation of ABC that gives that agency the discretion to deny an application if it is felt the use would be detrimental to surrounding uses, it does not automatically require them to deny the license. Councilman Yost then said to have three to three and a half times the number of designated alcohol establishments does not mean an automatic refusal but does give ABC a reason whereby they could refuse it. He expressed his concern with an establishment selling alcohol and sharing a parking lot with a day care facility, toddlers do not always mind their parents, the concern is with the safety of children, this facility is also in close proximity to the skate park, his feeling is that it is not good to have alcohol serving establishments in the same general location, 10-23-00 it is in close proximity to a physicians office and family practice medical that shares the same building, recalling that the location of the Blackboard Bistro used to be the school nurses office, which seems strange. Councilman Yost, expressed concern also that a CUP runs with the land, and even though this may be operated as a fine establishment his concern is with what the patrons may do and having children' outside, Hennesseys an example whereby they first got their alco~ol license as a wine and cheese shop, then it became Papillions Restaurant, then the fourth Irish bar on Main Street under the same CUP, another example is the drive-through for the bank, converted to a fast food and now possibly a Starbucks. I Councilman Yost moved to deny the CUP for the Blackboard Bistro for public safety reasons because of the close proximity to the toddlers that use the parking area, the proximity to the skate park, the medical offices, and because a CUP runs with the land. He noted that by population density there should be seven alcohol serving establishments however there are twenty-six. Councilman Doane stated that if this were a full liquor license he could support the appeal however the request is for beer and wine which is something one has with a meal, BJ's is an example, people may have a beer with their pizza, they do not frequent the facility just to have a beer. Councilman Boyd noted that this. business is within his district, as a courtesy it would be appreciated if the members of the Council talk to each other before filing an appeal, stated this is a good operator, this is a difficult location to do business however it is felt this operation will do well, the business also brings a number of charitable opportunities for the schools, and he does not share the concerns of the appellant. I Councilman Boyd moved to deny the appeal and sustain the decision of the Planning Commission subject to appropriate terms and conditions, by adoption of Resolution Number 4852 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH APPROVING CUP NO. 00-10, PERMITTING THE ON-PREMISE SALE OF BEER AND WINE AT AN EXISTING RESTAURANT AT 1198 PACIFIC COAST HIGHWAY, SEAL BEACH (BLACKBOARD BISTRO)." Councilman Doane seconded the motion. By unanimous consent, full reading of Resolution Number 4852 was waived. Members of the Council again expressed their feelings. The City Attorney noted that the first motion, to sustain the appeal, failed for lack of a second. AYES: NOES: Boyd, Campbell, Doane, Larson Yost Motion carried JOINT CITY COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARING / RESOLUTION NUMBER 4853 - SEAL BEACH TRAILER PARK ACOUISITION FINANCING / BOND ISSUANCE Mayor Campbell declared the joint public hearing of the City Council and Redevelopment Agency to be open to consider the issuance of bonds by the City Council/Redevelopment Agency for the purpose of the Seal Beach Trailer Park acquisition financing. The City Clerk certified that notice of the public hearing had been advertised as required by law and reported receipt of three communications, one in support, one requesting that the acquisition be set aside pending further review, and one questioning the process. The Interim City Manager mentioned that several consultants have worked with City staff on this issue for a number of months and will be making a presentation on behalf of staff. I 10-23-00 I Mr. Kyle Snow, Best, Best & Kreiger, bond counsel, explained that under the Health and Safety Code redevelopment agencies are allowed to issue bonds for the purpose of making loans to certain types of corporations who can use the proceeds of the loan to acquire mobile home parks and other types of housing projects, if the bonds were to be approved they would be issued under an indenture then loaned in this case to Linc Housing under a loan agreement, also a regulatory agreement would be placed on the property that would require that at least twenty percent of the units in the Park be set aside for very low income tenants. Mr. Snow stated that this hearing is being held as a requirement of federal tax law, the bonds will be tax exempt and the federal tax code requires that there be a hearing to allow the public to speak, at this meeting the Council is being asked to approve the bond issue yet that does not result in the issuance of bonds because at a later date certain agreements will come before the Council for consideration with an official statement, which is the marketing document, at that time the Redevelopment Agency would authorize issuance of the bonds, thereafter the bonds would be sold, the action at this meeting is a preliminary step to allow the bonds to be tax exempt. Ms. Pam Newcomb, Kinsell, Newcomb & DeDios, underwriters, confirmed that this is the pUblic hearing and this matter will again be before the Council on November 13th for approval of bond documents, at that time the proposal will be three tiered financing, tax exempt bonds in an approximate amount of $6.5 million, a State MPROP loan of approximately $1 million, and an Agency loan of $1 million, that funding combined will be able to provide for the purchase of the park, payment for all costs associated with the issuance of the bonds, set aside bond reserves and capital improvement funds for the Park acquisition, the intent is to market the bonds thereafter and to close the financing by mid-December. Mayor Campbell noted that there are some that do not understand the process, the fact that the residents of the Trailer Park have the opportunity to purchase the Park from Mr. Hall is wonderful in that a similar attempt made by the residents of a trailer park to the south was not successful, the conditions imposed by Mr. Hall on the Seal Beach Park were basically unlivable and intended to drive the residents out, this effort would allow the residents to preserve their homes and bring some stability into the rental increase process, it is unfortunate that past rents did not keep pace with market values, and noted there are only two hundred resident-owned mobile home parks in California, Seal Beach could be two hundred one. Councilman Yost asked for clarification of the proposed sale price of the Park. I I Mayor Campbell invited members of the audience wishing to speak to this item to come to the microphone and state their name for the record. Mr. Bill Orton, Riversea Road, was duly sworn by the City Clerk as requested. Mr. Orton stated he is generally in support of a buyout, that he stood before the Residents Association and said exactly that, to the one hundred plus people whose doors he knocked on, campaigned at, and talked about the proposed buyout, and said he was pleased to hear details from the attorney and financing authority as details have not been forthcoming in this process. Mr. Orton reported that as of this date he sent a letter to the MPROP program in Sacramento requesting that his name be struck from the application which was submitted by the Resident Association and/or Linc, .the reason for that is that when he signed the application for MPROP funding he was told by an 10-23-00 officer of the association that it was just an application for State funding, to that explained that he works for the State, his job is to look out for the way taxpayer dollars are spent, therefore he is not comfortable putting his name on a blank check by saying that an application is also an election. Mr. Orton said he was told by Hunter Johnson at the last Association meeting that by signing the application form he was also declaring himself in support of all of the terms that are presently being negotiated, to that he said he made no such election, he has voted every time in the past twenty years that he could, he knows what an election is, he has not had the opportunity to express his free will and to have the informed consent of the govern in this matter. Mr. Orton said he generally supports a buyout, hopes that one works, yet he sees no detail, only vague outlines of the proposal, if it works that is great, but City and State taxpayer dollars are involved here, no fear mongering and no closed process runs unless adequate information to the govern is adequate if there is to be millions of dollars involved. Mr. Orton offered that he would call upon the City to not recognize the MPROP application as being an instrument of election, it is an application but it is not a declaration or an election instrument, if there is to be an election in the Park as to whether the residents endorse the actual terms of an agreement, he would ask that the City Clerk, who conducts local elections, be empowered to conduct an impartial process where people have the opportunity to read the documents that they are going to be affected by, that they have the opportunity to debate, and that a free and fair vote be taken as he does not feel that that process has been followed. Mr. Paul Jeffers, Trailer park, noted the statement by the Mayor that this is a wonderful opportunity for the Park, yet said he was told twenty years ago that he had a wonderful opportunity to take part in the covenants and disposition agreement established the Redevelopment Agency, there was a recent rent increase of 3.8 percent pursuant to that agreement, to the statement that the residents were lucky that the rents did not increase with the land value, he stated the covenants were not written on the value of the land, it was the City who bought condemned land and turned it over to the original owner of the property, to that he asked what has happened to the covenants since this sale was started, the Redevelopment Agency had an obligation to protect the covenants for the residents, there had been considerable involvement and money on the part of the City to set up the Trailer Park. Mr. Jeffers said he too would like to buy the Park but with covenants similar to those originally promised, the history of the Park needs to be looked into, he has been involved since the Park was established, fought rent increases, etc. He noted that there is now the lawsuit by the current land owner and the attorneys are saying the residents do not have a chance under the covenant, how could this happen, also, having just looked at the loan documents said he had been told the rents would be $500 and that would not change, however the documents show the rent changing every year. The Mayor advised that legal experts have analyzed the covenants, this is an opportunity for the residents to purchase the Park, and if not, Mr. Hall will then do as he has done in the past. In response to Mayor Campbell, the City Attorney advised that the-covenants are not the issue of discussion and are the subject of litigation. Mr. Gordon Shanks said he too has been in favor of the Park purchase, however he also understands the question of Mr. Jeffers, suggesting that possibly there is something wrong with the financial statement because for the I I I 10-23-00 I first twenty years the space rent is shown as going up one hundred percent where the operating income only goes up thirty-eight percent, that may be the source of concern, possibly someone should review the space rent figures, as yet he could not see where the difference between the space rent and operations goes. Mr. Shanks said if there is anything that can be done within reason to get the Park out of the hands of the current owner it must be done. Ms. Newcomb said in discussions with Linc it was represented that in the first year, starting with the sale of the bonds, there would be average rents in the Park of $364, the second year they would go' to $446, the third year would be $527, during "that period of time the Agency would pledge approximately $340,000 as a rent subsidy to help people transition from the initial rent up to what will eventually be the $527. A reason that all of the documentation is not being approved tonight is that one of the documents is an Agency agreement which sets forth in more detail those items, if at the time the $527 is reached there are still people in need of subsidy there are a couple of ways that can be achieved, one is surplus cash flow after payment of the debt and expenses, the surplus can flow into the subsidy funds, or Linc could also ask the Agency if they would be willing to pledge additional subsidy. Ms. Newcomb offered that the reason the proforma looks odd is because the $340,000 is shown, that is cash that is realized at the time of closing, it is factored into the equation, the proforma also shows that after reaching the $527 the rent is generally increased by two percent per year after that, to her knowledge that has not been discussed with the residents nor has it been determined at this time. I Ms. Renee LeShon, Trailer Park resident since 1969, mentioned there have been many changes, when she first bought her trailer the rents were $40 per month, when Mr. Dawson bought the Park the rents tripled, people were concerned, but as this takes place the people will .be able to accept, she personally qualifies in the Park for low income, she has concern as to how she will have the money, but she feels strongly about the hundreds of hours that the committee and the City has put into this effort, and she supports what the City, committee and Linc Housing have done, and she is uncertain that the covenants are going to continue to protect her in the future. Ms. LeShonsuggested that the residents be sensible, there will be rent increases but they can be managed, this is a wonderful way for the residents to be in control of their homes and destiny, and the fear of change should not overcome what will be good for all. Mr. Mark Cunningham, Cottonwood Lane, offered that the applause alone shows the support for this effort, the group is very united, although he has not been involved in the purchase effort the committee has done an outstanding job of dispersing information and seeking opinions, when there is something of this magnitude there will always be four or five opposed, the majority wants this to go through. Ms. Linda Stobbe, Cottonwood Lane, noted the figure of $527 being the average, asked if there is a high end dollar figure, also, at a recent meeting a comment was made that Linc Housing is an organization set up for helping residential trailer park communities such as Seal Beach, to that she asked how a lending organization can be non-profit. Mr. Hunter Johnson, Linc Housing, explained that they are not the lenders rather the borrowers in conjunction with the residents, it is the underwriting team that brings the money in to buy the bonds and the Redevelopment Agency is actually the lenders, Linc brings the ability to borrow at tax exempt rates which is a I 10-23-00 significant savings. Mr. Johnson stated that they are in the process of developing the range of rents, that was another reason to delay the other documents until the next meeting, there are also some ideas that they want to present to the Resident Committee for consideration, in all discussions there has been an estimated average range, they are going through and looking at the size of the space, location, and other characteristics that are felt may have an ability to influence what the rent ought to be. with regard to the question relating to the total purchase price, Mr. Johnson reported it to be $7,450,000, there is a draft appraisal that has a range of values in the low to mid $6 million up to over $11 million depending upon a variety of circumstances and it sets a value for the Park, based upon the set of circumstances under which this purchase is being made, at $7.4 million, the purchase price and the appraisal are within two to three percent of each other. Mr. Glen Clark, Trailer Park, also expressed appreciation to the Council and Agency and consultants. He noted that about eighteen months ago the Park residents woke up to a crisis, their homes and lives in jeopardy, the Park had been purchased by a profit oriented person, a committee commenced to look for a permanent solution to the problem, first was the existing covenant, a good document however developed several years ago and may not reflect the terms and conditions necessary for present day, legal opinions were sought, every opinion was that the document had holes and not an iron clad document that could be defended in court, and if anyone of the provisions were tested and found inadequate the covenant could be deemed to be invalid, there were two choices, rely on the covenant or defend the covenant as best one could and look for a more permanent solution, thereafter expert advice was sought, people who are knowledgeable about trailer parks, the advice of all was to buy the Park. Mr. Clark noted this long process has been on-going for some fourteen months, no quick decisions, numerous committee and general meetings, community affairs, innumerable face to face communications with residents of the Park, letters sent out, several surveys, primary question was if they wanted to participate in a non- profit purchase of the Park if they could afford it, average rent about $500 per month based upon size and location, a question too as to the need for financial aid, there were nine-four responses, of that nine-two said yes, two no. He provided a copy of that survey to the City Clerk. Mr. Clark noted the presence of Mr. Johnson of Linc Housing, and expressed the desire of the Park Association that the Council and Agency approve this first step for the purchase of the Trailer Park. Mr. Jeffrey McMorrow, Welcome Lane, stated he is a practicing attorney in Long Beach, former resident of San Marino. Mr. McMorrow said when the original committee formed there were suggestions from neighbors that he take an active role, he saw that as prudent given the legal complexities and his ability to explain certain things to the residents, the current theme however has been that there are more questions and concerns about details, and repercussions, it was hoped there would be an explanation by the committee or its members, by one C-3 corporation, a non-profit, he is curious why the Trailer Park did not consider that route as a possibility, there are also questions relating to long term ramifications of property tax that persons such as himself might pay, concerns with rent increases in the future, people are trying to make sense of this. Mr. McMorrow noted there have been allegations at this meeting that the committee has' taken actions without being forthcoming about how information would be used or presented to this agency, he has seen little I I I 10-23-00 I discussion of alternatives to purchasing the Park, in fact his position is that dissent has not been welcome at the meetings, he for one has not been privy to the meetings, not invited, because he has indicated that if his property values were damaged by any action of the committee he would take legal action as appropriate, he has been excluded, he was not present at the election of the present board. Mr. McMorrow expressed his opinion that the purchase plan needs more study, at least with regard to the concerns of the average resident, again his belief is that there are alternatives to the sale, it is thought that the covenants are probably enforceable which was the position of the City when Mr. Hall proposed rent increases in October of last year, he has read the complaint, the answer to the complaint, both felt to be well drafted, it is known that the Park attorney, Mr. Stanton, has suggested that the owners of the Park take an active role in the lawsuit, his feeling is that this will be a divisive issue in the Park, there is fear, he knows nothing about Linc Housing or its qualifications, no knowledge as to how the bond issue will come about or how financing perfected, the appraisal will indicate more as to the worth of the Park. Mr. McMorrow said he has a concern as a dwelling owner in that Mr. Hall has indicated that he could not sell his home in place, his personal feeling is that he has a cause of action against him, nor does he feel that buying the park at any price is a sound solution to the problem, a fair price is warranted, and residents are entitled to more information. Mr. Paul Jeffers, Cottonwood Lane, mentioned that a petition was being circulated in the Park recently with questions to which people wanted answers, it became controversial, he too wants to buy the Park, it is known that that is the best thing to do, yet he wants to see the facts and figures first. To Mr. Jeffers question as to the sale price of the Park, $7.4 million was confirmed to be correct. To the question of total debt, Ms. Newcomb responded that there is a $6.5 million tax exempt debt, a $1 million State loan, and a $1 million Redevelopment Agency loan, the payments on the State and Agency loans are deferred for approximately five years at a reduced rate of interest, the State is generally three percent and the Agency has been proposed at three percent, the tax exempt financing ranges between serial and term bonds, four and a quarter to six percent. With regard to the question of the purpose for the $1 million difference between the $7.4 million debt and the approximate $8.4 million, Ms. Newcomb stated approximately $500,000 is a debt service reserve fund, if that is never needed for a shortfall it would be the final debt service payment in the thirty-fifth year, it is an asset, it is invested at approximately the cost of the money, until all reports are completed the final numbers are not known, however about $120,000 is held as a capital improvement fund if it is needed, a physical needs assessment will be done in terms of what is needed to be done to the Park today and over the next ten years, that is capitalized into the bond issue, there is also the cost of issuing the bonds, bond printing fees, underwriter, advisory, other fees, there is a non- profit fee, there are also some small operating reserve funds as various options are being looked at as to how to prepare the bond financing, it can be insured, it can be rated, or even non-rated, part of the up-front money is to pay the insurance costs, that is done to secure a lower, long term interest rate, however it needs to be determined if that is economically feasible, this requires looking at all of the different options as to how the bond sale will be finalized and sold and the least costly in terms of debt. Mr. Jeffers I I 10-23-00 stated it was good to get some of the questions answered, he mentioned however that meetings have been held with those that have long term leases, it was heard earlier that those leases would present a problem, offered that when the residents tried to buy the Park in the 1980's it was found that there was a new State law whereby if thirty percent of the Park had long term leases it would become a subdivision and if that. were to occur it would no longer fall under any form of rent control, the people were requested to not sign the long term leases as that could impact the covenants, at that time the Park owner was told that the covenants ran with the land. Mr. Jeffers said he requested that all of the people with long term leases be talked to individually, is there an answer as to what will be done with these people, how are they going to fit into the rent schedule, and can the residents in general be invited to any of the meetings where these leases are discussed. with regard to the appraisal, Mr. Jeffers mentioned that it is known that at one time there was a toxic chemical plant along the backside of the Park and possibly Oakwood, when digging was being done for Riversea he watched, there were pipes dug up with some kind of green substance inside, he wants assurance that toxics will be looked at. Mr. Johnson reported that the standard in the industry is a phase one environmental study anytime a property is bought, that was done when Mr. Hall obtained the property, no reference was found to there being a former Dow Chemical site, the search includes walking around the site, a small amount of asbestos and lead base paint was found, they are in the process of ordering a new phase one report, neither the lenders or Linc Housing would go forward without it, so everything that can be determined with regard to harzardous materials will be. With regard to the situation of leases, there have been meetings with the lessees, there are fifteen of them, an analysis of the leases has been done, they are valid, there are some issues that are still being sorted out, this was discussed at the last general meeting, in reality there is no ability to terminate those leases, the leases provide for pass throughs among other things, there may be a way to offset some of the inequality that was mentioned, it is a fact that the residents without the leases are agreeing to a higher rent increase, at this point some of the leaseholders have indicated willingness to essentially void their lease and join the other residents, however there may be a few that may not do that, in essence the lease will be treated as a legal document and if there is an ability to pass through any cost increases that the other residents are already sharing, that will likely be done, that may be offset for those of low income or by the rent system program, yet they expect to honor the leases for the good and bad of them. Mr. Johnson noted that there have been inquiries about obtaining answers, there is a process, they are going through and answering those questions, by the next week or two they will sit with the committee to obtain their feedback, work with the financial consultants, then meet with the residents for further explanation, that is hoped to be completed by the next meeting. with regard to the toxic issue, Mr. Jeffers said he believed it was eight to ten feet deep. Mr. Johnson assured that will be done before this transaction is complete. There being no further comments, Mayor Campbell declared the public hearing closed. I I I Yost moved, second by Doane, to adopt Resolution Number 4853 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH OF ONE OR MORE SERIES OF MOBILE 10-23-00 I HOME PARK REVENUE BONDS TO FINANCE THE ACQUISITION OF THE SEAL BEACH TRAILER PARK." By unanimous consent, full reading of Resolution Number 4853 was waived. Councilman Boyd noted that he is essentially an institutional real estate investor, does similar bond transactions, commended the consultants for putting together this issue, however he does not want to chance someone claiming that he has a conflict, which he does not, therefore will abstain from voting on this item. AYES: NOES: ABSTAIN: Campbell, Doane, Larson, Yost None Boyd Motion carried ZOETER PARK RESTROOM REFURBISHMENT - VERIZON ENDOWMENT This request was that upon acceptance of the new fees, the City Council approve a budget amendment creating a Capital Improvement item in the amount of $20,000 for Zoeter Park restroom refurbishment. The Interim City Manager noted that the $20,000 check from Verizon has been received. Councilman Boyd expressed his opinion that the project proposed is needed, this would be a good use of these funds, however two more bids should be sought. Boyd moved, second by Larson, to approve the proposed expenditure to refurbish the Zoeter Park restrooms. AYES: NOES: Boyd, Campbell, Doane, Larson, Yost None Motion carried I OLD RANCH TENNIS CLUB FACILITY - PARKS and RECREATION COMMISSION RECOMMENDATION The Director of Recreation and Parks presented the staff report, explained that the intent is to present a conceptual plan for the facility, currently operating as the Old Ranch Tennis Club, that culminates one year of study and planning. The Director introduced those assisting in the presentation, Ms. Shelly Sustarsic, the Parks and Recreation Commission chair who also chaired the Council appointed committee chosen to study the facility, and Mr. Jim pickal of Purkiss-Rose- rsi, a respected architectural firm, who assisted the process by placing the committee ideas on paper and a price tag on the various activities. The Director noted the Council appointment of an ad hoc committee in March, 1999 to address the Old Ranch Tennis Club site if it were to become public property, eighteen volunteers met over nine months to investigate the recreational opportunities which might serve the community if the site were open to the public and available for modifications using the $l million from the Bixby Company dedicated to this location. The committee became very familiar with the site as each meeting was held at the clubhouse, the seven acre private site currently operates sixteen tennis courts, twelve of which are lighted, a 2,100 square foot clubhouse including a kitchen, lounge area, pro shop, and office area, a 3,200 square foot locker/shower and restroom facility, and a 1,000 square foot workout room, the club is nicely landscaped both within and outside its walls, during the first meetings the committee discussed the numerous possibilities for the seven acre site, the intent was to develop three potential plans, leaving the club as it is, leasing the operation to a vendor with the exception that should the club become City property it would no longer be exclusively private, or to modify the site opening the possibility for a number of recreational activities. The committee, wondering if the tennis facility was a viable business opportunity, sent out requests for qualifications to potential operators, they reviewed the I 10-23-00 responses and applied that to their research, this revealed that the site was of interest to at least five local court operators who would respond to bids if opened up, each of the respondents were asked their opinion as to the number of courts desired to operate the facility as a business, specifically a twelve, eight, or sixteen court facility, of course all preferred sixteen yet each was equally eager to operate a facility of approximately twelve courts. Having this information the committee began reviewing the most desired recreational opportunities if the site were to be a mixed use site, that would be about one half tennis and one half community recreational opportunities, the committee members interviewed neighbors, relied on their family recreational use patterns, and developed a wish list of needs for the community, through their research it was discovered that there are over eight hundred school age children in the immediate College Park East neighborhood, meeting the needs of these and all children in Seal Beach was the first and foremost goal in planning for the future. The Director reported the committee developed a mixed plan, essentially splitting the site leaving eleven tennis courts, the shower/dressing room in tact, and the option of hiring a professional operator who would utilize approximately one thousand square feet from which they would operate the tennis facilities, the site plan includes a pool, skate park, expanded community center, tot lot, picnic area, basketball court, and walking path, both the pool and the skate park would be pay-for-play subsidized areas. The Director noted that parking was an additional concern of the committee, currently there are seventy-seven parking spaces that will continue to exist for use of the entire facility yet it seemed logical to try to add parking on the Aster Street side of the club, a suggestion, given the addition of seven recreation acres, that consideration might be given to adding twenty to twenty-two spaces by developing the Aster Street side of Bluebell Park, there, the community has been struggling as to how to rehabilitate a picnic shelter, former tot lot, and basketball court, all of which are in a state of deterioration and would be relocated to the new facility. The Director mentioned that this plan was reviewed at the town hall meeting held by the Mayor in May of this year, the Mayor also distributed a survey to all residences in College Park East requesting their input as to the site uses, last month the Recreation and Parks Commission reviewed the plan and voted in favor of forwarding the committee suggestions for a mixed plan to the City Council. I I Mr. Jim Pickal, Purkiss-Rose-rsi, landscape architects and park planners, expressed appreciation to Mayor Campbell, members of the ad-hoc committee, the commissioners, the staff, and public, this was a helpful group of people. He stated most of their park planning is done through public input meetings, that seems to be the only way to design a park system whether it be large or small, neighborhood or regional, that creates stewardship and ownership. Mr. Pickal showed conceptual drawings of the proposed mixed plan, the proposed improvements are at the south end of the site, the remaining eleven tennis courts will continue to exist at the north end as will the parking area, the community center and pro shop would remain in its existing location as will the locker room/shower facility, noted their attempt to locate all of the more static type activities, the pool, basketball half courts, the skateboard area, along with the tot lot, in the southwestern corner of the site, that primarily due to the street and freeway locations and the proposed new parking I 10-23-00 I area, the street edges were given a more passive, parklike setting, not pulling any of the more static uses out into that area, rather it would be primarily turf, picnic area, and trees. Making reference to the southerly elevation showing the existing structure, he noted that it would be expanded to the south, a small stage area created with an adjacent large turf panel, encased by trees, that primarily for outdoor gatherings or activities from the community center. Mr. Pickal displayed two renderings looking from the tot lot towards the skate park, a restroom facility divides the skate park from the swimming pool area, the shade structure would assist the City to create an attendant to collect monies for the use of certain facilities, both the childrens pool and skate park are fenced as is the entire southerly location, the purpose of that is to deter people from mid-block crossings for access to the new parking area. Again, the area is mostly turf, a tot lot area with a shade structure for parent seating to watch their children play, the skate park is concrete, about three thousand square feet, it has been found that utilizing half court basketball is much better than full courts where the tendency is to be used by one group only as opposed to half courts where games tend to be shorter, the turnover is greater, thus can be used by more people. Mr. Pickal explained again in addition to turf there are open walkways, it was a request of the committee that the walkways be a looped design. He confirmed that the childs pool is forty by sixty feet, ranges from zero to five feet in depth, and can be used by any age group. I The Recreation Director noted there have been recurring questions throughout this process, one has been why this plan could not be located elsewhere, the answer is because of the City's development agreement with the Bixby Company, the City will become the owner of the property within five years of the development plan, Bixby will also give the City $l million for improvements that will benefit the College Park East neighborhood, however this plan benefits the entire community with a high quality recreation center. Another question has been costs, estimates at this point is about $1.35 million, then the question is how does the City make up the difference, her understanding of the agreement is that the City has about four years before it takes title to the property, in the meantime the City will receive a one time per capita allotment from Proposition 12 of approximately $350,000, while the Recreation Commission and City Council will ultimately direct where these funds are used, it is assumed that a project such as this and the Marina Center rehabilitation project will be given high priorities. The Director mentioned also that it was pointed out at the Mayor's town hall meeting that due to the retail development the City's budget will gain a greater sales tax revenue base to assist in meeting the City's overall needs, additionally, a capital improvement budget item over the next three years could offset the deficit, that should be considered given this one time opportunity to develop a unique, high quality recreation facility. The Director noted also that on-going recreation programs will be fee-based as are those currently operating in the City facilities, the suggestion is' to operate the tennis facility on a lease basis with the City sharing in realized profit or an established lease payment, in addition, the on-going arrangement with the Los Alamitos tennis team is in no way in jeopardy as this is a community facility and high school tennis players are an important element in the community, too, the current membership of the private tennis facility is estimated at one hundred fifty I 10-23-00 members, a Recreation Commissioner questioned how many of that number live in Seal Beach, the response was approximately one-third of the membership. Mayor Campbell noted that the Director had outlined the history of the committee, also stated that she had sent out a request for volunteers through her newsletters, the committee members were not hand picked rather volunteers from the community, the group consisted of members of the tennis club, tennis players, parents of the high school tennis club, and College Park parents having an interest in obtaining recreation facilities for the children, this group worked hard, had a wide divergence of wants and needs when they started, then they all came together, and the results felt to be outstanding. Mayor Campbell mentioned that this past summer a survey was sent to every home in College Park East, over seventeen hundred were sent out, five hundred eighteen were returned, thirty percent, questions posed related to whether the tennis club should be kept as it exists or use part of it for other recreational facilities, seventy-four percent wanted additional facilities, the second question related to park configuration, sixty-one percent preferred the one with the pool, skateboard park, and half basketball courts versus the plan without the pool. Mayor Campbell made reference to a letter received from District Three residents, the comment, none of the tennis courts should be removed, response was that it is a shame to remove anything useful but a hundred percent tennis facility serves only a small segment of Seal Beach residents, if the City had acquired vacant land and the money to build a community facility, a tennis only facility would never have been a consideration, another comment, residents of Seal Beach other than College Park East should have had the opportunity for input to this plan, the response, simple geography dictates that the greatest use of this facility will be from residents of College Park East, they best know their needs and should have the most input, any resident with an interest in City affairs has known for years about eminent changes to the tennis club and over time has had the opportunity to communicate with City Council and/or the committee, residents also have that opportunity at upcoming Council meetings. Another comment, the new facility is too far from the Hill and Old Town for those residents to take their children there to use it, response, that may be true but that is no different from College Park East and West residents now having to travel to the beach, McGaugh pool, tennis courts, Marina Park, and other City facilities. Mayor Campbell mentioned the tennis club membership also, seventy percent of which do not live in the community, this will become a City facility, the committee felt it was prudent to keep as many courts as possible and still provide recreational facilities for the area. The Mayor said she felt most people know the feelings of College Park East with regard to the Bixby development, the tennis facility has been quite a bone of contention, many feel that club is the doorstep of College Park East, Bixby continued to threaten to develop it commercially, the City did not go along with what they wanted, therefore, the site and the money were offered as a tradeoff for the development of Seal Beach Boulevard. She noted that some suggested that the $l million be spent elsewhere in the City, she found that to be offensive, this is a chance for the City to come together, with regard to additional monies that have been asked for, she did not feel it right to spend all of the money on this one site, at the end of last year a letter was sent to Sacramento requesting several hundred thousand dollars to complete this project, I I I 10-23-00 I another letter requesting money for a soundwall by the existing parking lot that the tennis club members use, both requests were denied, with regard to funds to remove the basketball court and picnic area cover in Bluebell, the picnic cover must come down no matter, the court needs to be rehabed, she too does not like putting in asphalt or concrete but if the clubhouse is going to be used for a community center additional parking will be needed. Mayor Campbell agreed that this will be a City owned park as is Heather, Almond, Marina, Gum Grove parks, yet they are also neighborhood parks, her feeling is that it is best to let the people in the neighborhood design what is going to meet their needs, this area is immediately adjacent to the homes in College Park East therefore it does effect values, that is a reason for the interest of the residents. Question was raised as to continuing the meeting past the 11:00 p.m. deadline. Upon a dispute with a speaker from the audience, Mayor Campbell declared a recess at 11:05 p.m. The Council reconvened at approximately ll:l7 p.m. with Mayor Campbell calling the meeting to order. I The City Attorney read excepts from the Council meeting procedural resolution, that no new items can be considered after 11:00 p.m. unless they have been opened before 11:00 p.m., if there are a number of items not opened by then a motion would be required by 10:45 p.m., in this case this is the last item on the agenda, opened prior to ll:OO p.m., if the item is not concluded by 11:59 p.m. it would be necessary for the Council to make a motion to extend the meeting past midnight. I Although not a public hearing item, Mayor Campbell invited members of the audience wishing to speak to this item to come to the microphone and state their name for the record. Mr. Bob Bolling, Hazelnut Avenue, said he wished to speak on behalf of his wife and himself, thirty year resident of College Park East, twenty-two year member of the tennis club, and members of the site committee which was a diverse, well rounded group of people who spent a great deal of time on the project, there was agreement on many issues but because of the diversity there was also disagreement. Mr. Bolling commended Ms. Sustarsic for keeping the committee moving and Ms. Beard for her time, knowledge, and contacts. Mr. Bolling noted that Bixby traded the tennis facility and $l million for the zoning to construct their Towne Center, since the Center will negatively impact College Park East more than. other areas of Seal Beach that the reason for this dedication. Mr. Bolling said early in the' committee discussions there was concern with regard to the ability to maintain the facility once it was transferred to the City, it was generally agreed by the committee that part of the money be put aside as a contingency fund for future maintenance or capital improvements, the committee also came up with two choices, leave the facility as it exists or develop a wish list of different amenities, that wish list then reduced to two options, both having architect estimates of $1.3 million, not only will there no longer be a contingency fund the City will need to find the additional $300,000, and as it is known, estimates this early in the planning stage will go up by the time the actual process is started, where will that money come from, he has been told that there will be some State money as well as increased sales tax revenue from the Towne Center. With regard to the wish list, Mr. Bolling said both options will call for the removal of five high quality 10-23-00 tennis courts to make room for other facilities, that will include two to four half basketball courts, to provide parking for this new facility an existing full basketball court will be torn out, both options have a skateboard park, that is popular with young boys however he has not seen many girls or adults skateboarding, yet all people of any age can play tennis, said he is a pool owner and knows the cost of upkeep, it is known there are a great number of private pools in College Park East, will the utilization of the splash pool be reasonable, it is not thought so, it should also be kept in mind that there are the McGaugh and ARFC pools open to the public. In conclusion, Mr. Bolling said it seems there will be a lot of tearing down of good facilities to put in things that the City may not be able to afford, the survey previously referenced said there was twenty-six percent in favor of keeping the existing facility as is, seventy-four percent for the conversion however the survey lacked mention of money, if the $1.3 million had been mentioned the results might have been different. Mr. Bolling urged the Council to think carefully of the ramifications of this project, and urged that the site be kept as is for now, it can be leased to the best of several operators to operate as a public tennis facility, the $1 million can be invested in whatever means that allows a good, safe return, if the potential lessee makes a success of the tennis site then those monies could be used for amenities to existing parks in College Park East, if the lessee fails the money would still be there for the conversion that the committee developed. Ms. Carla Watson, Catalina Avenue, agreed with the prior speaker, commended Ms. Sustarsic and Ms. Beard for their efforts, however said she had difficulty with bulldozing these tennis courts without a little more time, even though the residents of College Park East deserve as much as they can get, to replace the center court would be well over $100,000, this is a lifetime sport, the children of the community have never had the opportunity to have a tennis center open to them, she too would like to see the facility stay open for six months or more to see what the participation is, have it open to all, the facility she would least prefer would be the childrens pool. Ms. Watson said she still has some bitterness as a result of the vote to join the Los Alamitos School District, the first thing that was done was to sell the Zoeter School, that School was paid for and given to the City, when the property was sold one of the first things done was to tear out the tennis courts, when Bridgeport was built they were going to put in four tennis courts but put in only two, many people in Old Town do not have back yards so they rely on the greenbelt or the beach for their children, a number of people moved to College Park East so that they could have back yards, a larger area, and there would be parks. Ms. Watson said it is not that she is opposed to the plan, it is a wonderful plan, it is just that other things will replace the existing tennis courts, with regard to the Recreation and Parks meeting there was only one press release, had she not made phone calls no one would have been there in support of tennis, stated that motions should not be made at 11:00 p.m., there could be mistakes, maybe just do the skateboard park, if the $1 million were put away for a year or two the interest from that could then be used elsewhere in College Park East, she always believed that the $l million should be used for College Park, the $350,000 from elsewhere she would question. Mr. James Koulakowski, Regatta Way, current president of the Riverbeach Homeowners Association, a member of the Old Ranch Tennis Club as well. He offered that $l million is a lot of money, the point of I I I 10-23-00 I the previous speaker should likely be considered, possibly that money could go to many places besides the proposed park. He said when he moved to this community he first looked for a good school for his daughter, then a good tennis club, in Colorado he belonged to a club that had a ,history similar to that of Old Ranch, in that case the club was bankrupt during the recession, the County purchased the facility and leased it back to the metropolitan district for $l, the club then went from bankruptcy to one of the top public tennis facilities in the country. Mr. Koulakowski mentioned that the Old Ranch club and its staff has existed for thirty years, there are many youth in Seal Beach that learned to play tennis at that facility, it seems very little consideration was given to the membership of the club even though only thirty percent are Seal Beach residents the other members shop and eat and participate locally, and maybe, as beautiful as the landscape plan is, to give up these wonderful tennis courts, the best in the area, then spend $1.3 on top of that seems to be surreal, as a public facility it could grow, make Seal Beach recognized as a real tennis center, the people who would be using the facility are the same that use it as private, and he too urged that it open as a public facility for one to two years, give the current members and management a chance to grow the facility, then use the $l million for something else. Councilman Boyd noted the terminology being used is that this will be a public facility where in fact it would be a publicly owned facility, his understanding is that it would be the operator selected who elects to have it a public facility or private, his challenge to the Recreation Director would be to make this a stellar facility yet have it pay for itself, noting that the City puts about $800,000 per year into recreation programs to offset the deficit in user fees, public recreation is subsidized, that is not necessarily bad however in the future as the City moves in that direction the City should be looking for opportunities like this to have the facilities pay for themselves. Again, his impression was that upon receivership of this facility then leased to an operator, it could operate as a wholly private or partially private/public facility. Mr. Campbell, a member of the audience, said then why not take out ten courts so that any number of things could be put on the site, this is a tennis center, if one goes up and down the coast from Santa Barbara to San Diego there are beautiful tennis centers but they do not turn them into a playground, this has now become a playground with considerable money proposed to be put into it to make it a playground for kids, there may be times when the clubhouse could be used as a community center, this plan ruins a great tennis club and takes away the mystique of a tennis club, there are certain things realized through joining a tennis club, a golf club, or whatever, there are tournaments, meetings, things that one pays the price to do, one will not find people who will want to play tennis next to children playing basketball or skateboarding, this proposal will change something that is now quite nice, it is too bad the City can not find another location to put the beautifully designed recreation facility. Mr. Campbell mentioned his background as a tennis coach for twenty-nine years at Long Beach State, a recreation director in five cities in Santa Barbara County as well, therefore a great appreciation for anything recreation, but the two should be separated, leave the tennis courts and put the City name on it and take pride in bringing tournaments to the facility, as a college coach he has used those courts to bring in college teams, this plan would change all of that. Councilman Boyd asked if Mr. I I 10-23-00 Campbell is a member of the club, the response was he is not due to the amount of time he has spent on the courts at school, however his wife plays every day at McGaugh even though the courts are in very bad condition. To the question of Councilman Boyd as to the number of courts in the community now, the Recreation Director responded there are two at Marina, two at Heather, and three at McGaugh, and Mr. Campbell advised there are standards for the number of courts per population in the recreation books. As to the cost of putting in a tennis court, Mr. Campbell estimated about $100,000 if it is started at the base and they are done correctly, the courts here must be sandblasted and acid treated otherwise if they are just surfaced that does not last, dual purpose courts will be the greatest problem because you think of a court as being like sandpaper, which you do put grit into an epoxy base, those are broken down by roller skates very quickly, even basketball, courts have to be resurfaced which is expensive. The Recreation Director said she has been advised that it is about $60,000 to build a new court, lights another $30,000. Mr. Bill Lower, 6th Street, said there is at least one person who bicycles to Old Ranch from downtown, Seal Beach is thought of as unique, that largely due to Main Street, unique also because of the separations of the various areas of the community, only two contiguous, some even. inaccessible to the public, this can be divisive. With reference to the site committee, Mr. Lower noted that all fourteen members were from College Park East, it is likely they should have had the majority representation however his feeling is that there should have also been representatives from the remainder of the community in that this is meant to be a City facility. Mr. Lower agreed with the comments of Mr. Bolling that the facility be left as it exists, set the $lmillion aside and let it appreciate, there are two tennis courts at Heather Park, instead of putting basketball courts at Old Ranch the courts at Heather could be converted to basketball, that would save at least one more court, the report said the concessionaire needed between twelve to sixteen courts yet at this point there would only be eleven, however should the decision be made to take down some of the courts it is hoped that the windbreaks will be salvaged and placed at McGaugh. Mr. John Unrath, Dogwood Avenue, said he .would talk on behalf of the some eight hundred children in College Park East, there is no real good park in that area, everything is flat, old, needs to be redone, an argument has been made that there are not enough tennis courts, counter to that he referred to the ten or twelve courts at Los Alamitos High School that are not used, he never had trouble finding an open court when he took his children to play tennis, he still sees open courts, the facility at Old Ranch has not changed or grown over the fifteen years of his residency, a claim has been made that there are not enough good courts, these are $100,000 courts. Mr. Unrath said one plan was to bulldoze the entire site, there are sixteen courts now, it is likely the tennis people are being done a favor by keeping eleven courts, if the sixteen courts were to be kept the conversion of the clubhouse to a community center would be lost, more community centers are needed, a nice center that can be used for weddings, receptions, parties, etc., such things can usually not be done at Marina Center and the North Seal Beach Center is always booked, and offered that the operator has said that the facility can operate with eleven good courts. Mr. Unrath noted comments relating to the pool, from his experience very few and short periods of free swim are available at McGaugh therefore he took his children to Los Alamitos where there is I I I '. _4 10-23-00 I free swim most all of the time, the pool at the new facility will be open swim to all children of Seal Beach all the time, in response to a comment that girls do not seem to ride skateboards, said he has observed just as many girls riding as boys, noting too that a skateboard park has now opened at El Dorado Park. Mr. Unrath said the new facility will offer a skateboard park to the youth which was prompted by residents of College park, the pool and skateboard park will be financially self-sufficient, it was the intent of the committee to bring in enough money to cover the park expenses. Mr. Unrath concluded that the site plan proposed is a compromise, the result of many meetings, they were open to all, meeting notices were distributed, the effort was to refine the project to the point that it would be something the community could live with, and between the needs of the tennis people and the needs of the College Park East children, this project seems to do that. Councilman Boyd moved to extend the meeting for an additional thirty minutes. Councilman Larson seconded the motion. There appeared to be a consensus of the Council to do so. I Ms. Emily Frazier, 13th Street, said she voted in favor of this project for the reason that it is for the children. She has been a teacher for thirty-eight years, children are becoming more and more stressed as a result of new standards, hard work, working parents, etc., many spend up to twelve hours at day care and school each day, children need relaxation, fun, to keep moving to get rid of their energy, this park will be beautiful, it is a compromise and should meet the needs of all. Councilman Boyd stated again his motion to extend the meeting for an additional thirty minutes until 12:15 a.m. Councilman Larson seconded. Ms. Dorothy Whyte, College Park East, approached the podium to address the Council once again, and asked if she could be prevented from speaking as she spoke to another matter previously. AYES: NOES: Boyd, Campbell, Doane, Larson Yost Motion carried I Mr. George Springosky, Ironwood Avenue, said he agreed with a number of the comments, the existing facility is beautiful, to tear out tennis courts to put in basketball courts where there are courts across the street and put in a pool with the assumption that it is going to pay for itself yet will not be large enough for much swimming but large enough to drown in, a lifeguard will be needed, it can not be imagined that it could be self-sufficient, the City will be tearing out fine tennis courts, if the skate park and pool do not pay for themselves the courts will be gone, they will either not come back or it will cost considerable to bring them back, the City will be stuck with a lot of operating costs, and asked that careful thought be given before decisions are made to approve these modifications, possibly look at some revenue analyses and predictions. Ms. Dorothy Whyte asked that she be allowed to speak again to this issue, was informed that she had spoken previously. To a question of the City Attorney, he advised that it is at the discretion of the Mayor, that persons have had the opportunity to speak to this matter, however the Council 10-23-00 could overrule the decision of the Mayor. A gentleman from the audience stated that the Bixby Company never pushed the tennis club, it has always been a stodgy organization, at one point potential members had to be interviewed to join, when this facility is taken over the membership will increase dramatically, described his experience of participating in a tournament the previous week in Rancho San Clemente where they used all of their eighteen courts, if this facility put on tournaments it is certain all sixteen courts would be used, his children are tennis players, he would like to see them complete their training here. He described this facility as great, it could make Seal Beach famous, nothing should be changed, the City courts are in disrepair, dirty, that is not the case with Old Ranch, yet that facility too is in disrepair, whomever takes it over will need to spend considerable money to put it in good condition, the courts are deteriorating, the clubhouse needs repair, the City will not have enough money, as a contract specialist he has worked overseas, stated it costs a lot of money to maintain these facilities, and he has not heard the specific cost estimates. The gentleman concluded that he supports keeping the facility as it exists, whomever takes over the facility needs the clubhouse for food and beverage services to make it successful, under this plan it is doomed to failure, it should be turned over to a private operator. Mr. Bill Hayes, Seal 'Beach, said he has been an Old Ranch member for nearly five years, it is a wonderful facility, the key word heard at this meeting is compromise, it is either going to be a good park or a good tennis center, the tennis center is going to be lost and get a small park for some eight hundred children in the immediate area, a facility the size of a few tennis courts is not a park, there is not enough pool or anything to service a community, the existing parks should be improved and leave the tennis facility as it is. He noted that ever since he joined there has been a cloud over the facility because it was always going to change, it is believed that membership has dropped because of that, if the ownership were to change and there was some future for the facility the membership would certainly increase and cover its costs, as a tennis club it would be viable, likewise, Old Ranch Golf Club is being remodeled, they would not do that unless it were felt necessary, and it is quite likely that the golf facility would not turn away a membership because one did not live in Seal Beach. I I Councilman Boyd said he still did not understand who would operate this facility, have there been discussions with prospective operators, if so was there any indication if this could be a successful facility if remodeled, and the comments seemed to indicate that the center court was a big issue. The Recreation Director responded that there have been discussions relating to the tennis portion of the facility, indication was that it could be successful, of the five respondents all would rather run a sixteen court tennis facility but also said they would run a lesser sized facility. Councilman Boyd stated he believed the best idea would be to vacate the street and make the park contiguous with the existing Bluebell Park across the street, his personal preference is to play golf at a private, pristine course where one can play by invitation only, compare that to a public course where there are divots, the greens are poor, that is probably the same scenario with a private and public tennis club. He agreed with a speaker that revenue is the issue, particularly in Seal Beach, the question is what makes I , . 10-23-00 I the best financial sense and offers the most opportunity, especially to those eight hundred plus children in College Park East, how can that opportunity be offered and still have the revenue offset, is this the compromise that does that. The Recreation Director responded she could not say with a hundred percent assurance that the entire recreation portion will be entirely self-supporting, the existing skateboard park is self-supporting, the pool is not, the existing pool is much larger, the new pool is anticipated to be a four month operation so it is believed it can be self-supporting, the community center with classes, rentals, etc. should be as well, the subsidy issue is one that the Council always wrestles with, in the minds of some recreation is just as important as infrastructure needs, that recreation should be available to all of the public, that is a decision of the Council. She concurred that this is an ambitious plan but a good plan, at this point she does not have a business plan, that would require coordination with a contractor to develop such plan. Councilman Boyd said the proposal tonight would be to move forward with the development of this concept, he could support that with conditions in that this issue will be back before the Council, what he has heard is that there are people who think this could be a viable opportunity, but it is very differential for the Mayor as this is her district, he is pleased to see a pool that will be dedicated to play activity not just lap work, if the intent is to go forward with this concept then he wants to see a business plan, he would not support the concept without one and it needs to make sense, his preference remains to reroute or close the street and combine the parks for a large park facility, the committee did a good job but the business facts need to be shown as well, if it does not work he would want to readdress the issue. Councilman Larson indicated confusion as to how this facility is intended to be operated, it is not going to be a private club, an example are the Long Beach golf courses where civil service employees collect the fees or the operation is contracted, but it is still a public course, there are not members that have a priority. The Director stated that to be a correct concept for the tennis portion. Councilman Boyd agreed in that he did not know of golf courses that are both public and private that are successful. The Director said there are a number of different ways that the tennis facility can be operated, that has yet to be decided, it was the vision of the committee that it would be a completely public facility, perhaps there could be memberships, not private memberships, possibly a monthly membership that would alleviate the need to pay each time for a court, or have the opportunity to use prime courts at prime times. Councilman Boyd said the highest and best use for this facility is to retain an operator that will operate it as it exists as a private tennis club, that is where the most money can be made. Mayor Campbell noted that is not what the residents of College Park East want. I I Councilman Boyd moved to move forward with development of the proposed concept, with the understanding that if this does not work there will be a willingness to find some other way to make it work even if it is a wholly private facility, and that a business proposal for this concept be developed that says if this plan will work. Mayor Campbell seconded the motion. Councilman Doane sought clarification that with this plan the center court is being removed, the response of the Director was yes, he then asked if that would not eliminate the 10-23-00 opportunity to host tournaments, the response was it would depend on the concept of a tournament, he clarified that there are clubs that have large events each year and interested persons do attend. The Director said she believed that with eleven courts one could hold a good tennis tournament, would a sixteen court facility be better, the answer is yes. Councilman Doane explained that should such an event be held it would be necessary to provide seating, the Director agreed that seating would be necessary however questioned how often such an event would be held. Councilman Yost made reference to the statement that the pool would only be operable for four months and inquired about the remaining eight months. The Director advised it would be covered and not utilized, however that is just one concept, its use could be extended to year round however it is difficult to have a pool be self-supporting year round with limited activity and use, the four months was what the committee discussed however it is open to operating many different ways. Councilman Yost stated he is committed to the $1 million staying in College Park East and going towards the facility and its improvements, also in favor of College Park having the greatest share of the decision making over what happens to this site, he is however not in favor of College Park having complete control because it is a City park and there should be input from all of the community, he also has some problems with the process, with little input having been allowed from the residents, not only College Park East but the remainder of the City and the membership of the facility, they were not welcome on the committee, the Recreation Commission had minimum announcement, only a few knew of the consideration, the meeting took place with one member absent relating to what is going to be the largest recreation facility in the City, it has been rushed through as it is at this meeting, he has a problem with that. Councilman Yost said he has questions about the survey, whether it was professionally done and what it actually means, as surveys tell one what they want them to depending on how they are worded, he wants to make sure all of the College Park East residents are informed. with regard to the pool, the majority of cost would be for personnel to run that facility, is there an estimate of that cost, the response was no, will swimming and water safety classes be offered, the response was yes, question was if staff has ever run a pool next to a freeway without a soundwall, the response was no, question was if part of guarding that pool safely is going to be dependent upon being able to hear things, the response was that after spending numerous hours at the location and being familiar with the surrounding sounds it is not felt that would playa part in lifeguarding safety, Councilman Yost stated he has concerns with regard to the financial viability, input from the community, notification to the community, his recommendation would be to not take action at this time and allow more people to speak to this issue at a more rational time of evening. I I Councilman Boyd restated his motion to direct staff in concept to come back with a business plan for the operation of this proposed plan, the entire plan, including finances. Mayor Campbell explained that the committee looked at combining the two park areas,. the. problem, how do you tell a resident that instead of living on a side street that they now live on a main street, that can not be done to someones property values, also, a business plan can be done but it is when you go to bid that you find out what. the. c;:osts will be, and offered that if this concept is not feasible it will not I I I I 10-23-00 go forward. Councilman Boyd agreed that the directive is to move forward in concept and bring back further information. Mayor Campbell said she understands that the tennis players want to keep this facility, however the surveys were distributed, there was a thirty percent response, of that seventy-four percent want some type of additional recreation facilities, that is what needs to be listened to. In response to Council, the City Attorney noted that there was a motion to waive the adjournment hour of 11:59 p.m. and extend the meeting until 12:15 a.m., at this point a vote can be taken or the meeting can be extended further. Councilman Boyd moved to extend the meeting by five minutes until 12:20 a.m. Councilman Larson seconded the motion. AYES: NOES: Boyd, Campbell, Larson Doane, Yost Motion carried Councilman Boyd noted that a concept has been developed, there is nothing as yet that indicates that the concept will work, and once again restated his motion that staff be directed to bring back additional complete information that proves the concept works, including bid information, that would be necessary to determine what will be done with this site. Mayor Campbell seconded the motion. AYES: NOES: Boyd, Campbell, Larson Doane, Yost Motion carried CITY ATTORNEY REPORT No report was presented. CITY MANAGER REPORT No report was presented. COUNCIL COMMENTS Councilman Yost expressed his concern with the tennis facility site process, in his opinion i~ is not the co~rect way to do things in a public forum, he ~s not necessar~ly opposed to a particular project~ i~ is just not ~he way to do things it is not healing or br~ng~ng the commun~ty together. Councilman Larson called for conclusion of the meeting. Councilman Boyd suggested that the meetings begin at 6:00 p.m. ADJOURNMENT . . It was the order of the Chair, with no obJect~ons from Council to adjourn this meeting until Monday, November 13th at 6:00'p.m. for both the City Council and the Redevelopment Agency. The meeting was adjourned at 12:23 a.m. clerk . y Clerk and f the City of Approved: YJ~/~ Mayot Attest: