HomeMy WebLinkAboutCC Min 1995-03-13
2-27-95 / 3-13-95
boards and committees, especially when problems exist within a
committee, citinq the fact that the members serve in qood faith,
volunteer their time and knowledqe, and said she would hope it
does not occur aqain.
ADJOURNMENT
It was the order of the Chair, with consent of the Council, to I
adjourn the meetinq until Monday, March 13th, 1995 at 6:30 p.m.
The meetinq was adjourned bY~imOUS consent at 8:06 p.m.
( // ?fIY7 ( /'
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City', lerk and(ex-offic~Qierk of the
City/of Seal Beach .
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Attest:
Seal Beach, California
March 13, 1995
I
The City Council of the City of Seal Beach met in reqular
adjourned session at ~:30 p.m. with Mayor Brown callinq the
meetinq to order.
ROLL CALL
Present:
Mayor Brown
Councilmembers Doane, Forsythe, Hastinqs,
Laszlo
Absent:
None
.
Also present: Mrs. Yeo, City Clerk
APPROVAL OF THE AGENDA
It was the consensus of the Council to approve the aqenda as
presented.
CLOSED SESSION
It was the order of the Chair, with consent of the Council, to
adjourn to Closed Session to discuss the item listed on the
aqenda pursuant to Government Code section 54956.9(a), existinq I
litiqation of the city of Seal Beach/Sierra Club versus County
of Oranqe. The Council adjourned at 6:31 p.m. The Council
reconvened at 7:02 p.m. with Mayor Brown callinq the meetinq to
order. The city Attorney reported the Council had discussed the
item on the aqenda, q~ve direction with reqard to a settlement
conference scheduled for March 14th, and no other action was
taken.
ADJOURNMENT
It was the order of the Chair, with consent of the Council, to
adjourn the meetinq at 7:03 p.m.
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,~
clerk of the
Appr~'" J:r.<4~-d
Mayor
Attest, C},~ /n~
~
~
Seal Beach, California
March 13, 1995
The city Council of the City of Seal Beach met in regular
session at 7:05 p.m. with Mayor Brown calling the meeting to
order with the Salute to the Flag.
ROLL CALL
Present:
Mayor Brown
Councilmembers Doane, Forsythe, Hastings,
Laszlo
Absent: None
Also present: Mr. Bankston, City Manager
Mr. Barrow, city Attorney .
Mr. Whittenberg, Director of Development
Services
Mrs. Stoddard, Director of Administrative
Services
Mr. Seymour, Director of Community Services
Mrs. Yeo, City Clerk
APPROVAL OF AGENDA
Councilman Laszlo asked that Item "I" be removed from the
Consent Calendar and that Item "M" be moved to the beginning of
the agenda. The City Manager requested that Item "I", the
resolution setting policies and procedures governing the
reservation of City parks and athletic fields, be-removed from
consideration at this meeting. To Item "N", the public hearing
relating to a development agreement for 322 Main Street, the
City Attorney advised that staff has been unable to contact the
applicant therefore it would be recommended that Item "Nn be
continued until the n~xt meeting. Forsythe moved, second by
Laszlo, to approve th~ agenda as revised.~
...
AYES: Brown, Doane, Forsythe, Hastings, Laszlo
NOES: None Motion carried
.'
ITEM "M" - RESOLUTION NUMBER 4370 - HONORING STEVEN JOSEPH -
OLIVER - EAGLE SCOUT AWARD "'
Mayor Brown read Resolution Number 4370 in full entitled "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH,
CALIFORNIA, HONORING AND COMMENDING STEVEN JOSEPH OLIVER FOR
ACHIEVING THE BOY SCOUTS OF AMERICA EAGLE AWARD." Laszlo moved,
second by Hastings, to adopt Resolution Number 4370 as
presented.
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AYES:
NOES:
Brown, Doane, Forsythe, Hastings, Laszlo
None Motion carried
The Mayor and Councilmembers commended Steven Oliver for his
accomplishments, the Resolution to be formally presented at his
March 25th Court of Honor.
PRESENTATION - LONG BEACH NAVAL BASE CLOSURE COMMISSION
Mr. Bill Gurzi, Chairman of the Southern California Committee to
Save Our Shipyard, spoke to the recent placement of the Long
Beach Naval Shipyard on the base closure list, and requested
assistance from the City of Seal Beach to further pursue saving
the Long Beach facility now that it is known the Seal Beach
Naval Weapons Station was not placed on the closure list. He
recalled that in 1991 and 1993 the Shipyard was not on the
Navy'S recommended closure list, and in defending against the
Yard's closure to the Base Closure commission, who had placed
the Yard on the list, there had been support from the Navy since
the documentation on all of its facilities was portrayed
accurately and honestly, especially in regard to Long Beach. In
1995 the Shipyard is on the list, none of the criteria, the
facilities, or infrastructure has changed, yet the numbers no
longer add up, news reports ranked Long Beach as once being
third in military value among the eight Navy shipyards in the
country, is now ranked barely fourth among five, and inasmuch as
the statistical data is now public and when data is added that
the Navy did not include, the Yard is still third by a wide
margin over Pearl Harbor, therefore the Navy is going to have a
difficult time justifying its actions before the Commission. He
added that the money earmarked as a savings by the closing of
the Long Beach Naval Station, the Naval Hospital, and the
Alameda Naval Station in Northern California is planned for
expenditure in San Diego and Washington State to create two Navy
mega-ports, that was not the.intent of the Base Closure
Committee and should not be the intent behind closing the Long
Beach Naval Shipyard. He cautioned that there is nothing to say
that the Navy will nO'L produce justification in 1997 or
thereabouts to close the Naval Weapons Station, Seal Beach. Mr.
Gurzi requested that Seal Beach join the Save Our Shipyard
group, contribute in-kind in an effort to continue lobbying
efforts, and pointed out that by using the figures that are now
pUblic, the Shipyard has moved up by six points by the Navy's
rating system, a Washington, D. C. firm has been retained to
review those numbers and prepare a justification from an inside
the Navy point of view as to what the Navy did wrong in
recommending closure of the Long Beach facility. He noted that
Base Closure law is extremely specific as to how the military
must justify its closures, and once the argument is prepared and
submitted into the process there is legally no means for the
closure of Long Beach, the intent being to preserve the three
thousand one hundred ~rimary jObS, seven thousand secondary
jobs, and the income and contracts of this region. Councilman
Laszlo reported that he and two members of the local Base
Preservation Committee met recently with Mr. Gurzi to discuss
what could be done to assist Long Beach such as providing
information to the local citizenry, making contacts in
Washington, D. C., efforts are being made to seek support from
the Orange County Division of the League of Cities, etc. To a
question of Councilman Doane, Mr. Gurzi indicated a willingness
to address the League of Cities.
ORAL COMMUNICATIONS
Mayor Brown declared Oral Communications open. Mr. Jim Caviola,
Ocean Avenue, requested that the subject of a police substation
in the vicinity of pier be revisited. He cited incidents of
graffiti, violent acts, and hesitation on the part of residents
to walk the pier or downtown streets during evening hours as
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justification for such a station. He mentioned how rapidly the
lifequard tower was rebuilt after being damaged by fire, also
objected to the encroachment of lifequard facilities into the
beach parking lot. Mr. Caviola called for more police presence
near the pier, especially during the summer season, with a
substation incorporated into that area, and suggested that staff
look at a similar facility in Redondo Beach. Mr. Marty Mahrer,
Pansy Circle, said they, PROBE, wished to make an appeal to the
Council with regard to the DEIR for the proposed Bixby project.
He noted that petitions are being signed by people of College
Park East, downtown, Rossmoor, and Los Alamitos, the objectives
are that the EIR should be as accurate as possible, the document
should be available to the public at least three weeks prior to
the Environmental Quality Control Board meeting, and that it be
user friendly pursuant to CEQA 15150 and 15151. In reference to
the December meeting 3t which the DEIR was discussed, Mr. Mahrer
said it was attended by few Seal Beach residents, the meeting
was during the holiday season with very little notification of
it. Mr. Mahrer said PROBE was organized in an effort to provide
a source of information for residents having concerns with the
Bixby proposal, that it is difficult to obtain information and
there is no assistance from city staff, which he said he wanted
to change. He stated.in reviewing the DEIR, the Aries report,
FAA letters, etc., many discrepancies of data as well as
omissions have been found, PROBE is concerned with the lack of
information pertaining to the crash zones or more correctly the
lack of crash zones, mitigation with regard to traffic
congestion on the Seal Beach Boulevard and Lampson Avenue areas
caused by the project, a problem with persons living under the
runway path, aircraft noise, etc. He cite.d the DEIR as
pathetic, PROBE wants an accounting, and it is their goal to
have the most complete and accurate data before the Council when
the Bixby proposal/EIR is considered. Mr. Bruce Stark, Seal
Beach, questioned the lack of reference to a prior agreement
with Bixby that the golf course was to provide for the -
absorption of water in order to prevent flooding of the freeways
as a result of the College Park East deve~opment, and called for
the agreement and the. affect on the freeways to be addressed and
reviewed by CalTrans. He questioned the lack of response to a
question posed at the last meeting as to the City's bond rating
given the Orange County financial situation, questioned also the
need for an eleven percent utility users tax if in fact monies
will be available to meet an upcoming debt payment on a $2
million note. Mr. Robert Campbell, Elder Avenue, was critical
of the presentation and lack of information forthcoming from the
most recent meeting relating to the Bixby proposal DEIR. Mr.
Campbell cited his neutral position on this matter, and stated
his willingness to attend future meetings to gather information
on both sides of this issue. As a point of clarification,
Councilmember Forsythe cited the referenced meeting as being
somewhat controversial, the City Manager had been cautioned that
anything he spoke of would come back to h~unt, he was barred
from addressing the pros and cons of the project because as City
Manager he must remain objective as to the EIR, the presentation
was only to review th?, procedure and format as to how the city
will go through all documents. Councilman Laszlo noted it was
the Homeowners Association that requested. the presence of the
City Manager, the environmental document was still in the
preparation stage, therefore the Manager could only speak to the
process. Mayor Brown cautioned against comments of the Council
during Oral Communications and declared a brief recess at 7:35
p.m. after which the ~eeting was reconvened. Councilmember
Hastings explained to the previous speaker that the meeting
referred to was meant to be in(ormational.only, and cited an EIR
as rather dry reading material. Ms. Dorothy Whyte, College Park
East, stated the College Park East Neighborhood Association has
tried to present informational meetings for the public, and it
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is likely other groups of people could do so as well. She noted
that the meeting had been scheduled prior to the Environmental
Quality Control Board concluding their review of the DEIR, the
city Manager was restricted from speaking to many issues, which
he explained at the commencement of the meeting. Ms. Whyte
stated she has encountered no problems obtaining information
from City staff. She expressed respect for the PROBE group, in 1-
that everyone has a right to their opinion, and she would
request the same consideration and respect; she reported
witnessing the gathering of petition signatures and said she
would challenge the validity of some, the flier being shown did
not address the EIR; said the literature of PROBE is not
factual; the Advisory Committee has only been gathering facts
and has not distributed fliers; invited PROBE to work together
as a community to gather facts relating to the proposed
development; and objected to changing the venue of the Planning
Commission meeting as City business should be conducted at City
Hall. Dr. David Rosenman, Seal Beach, expressed dismay at the
undercurrent of disco~rtesy at this meeting, the conduct
inappropriate as to the manner in which people deal with one
another. He noted that the presentation of the City Manager at
the referenced meeting had been adequate, although not
stimulating, and as Councilmember Forsythe indicated, stated
there is chapter and verse of ample detail when one tries to
polarize the city before the facts are known and where a court
could force acceptance of a project if each step of the process
is not precisely followed, another lawsuit is not needed, and
thus far City representatives are doing whatever is correct to
follow the proper process. There being no further comments,
Mayor Brown declared Oral Communications closed.
COUNCIL ITEMS
NEWS ARTICLES
Councilman Laszlo made reference to a recent news article that
stated a citizens group may support the Bixby plan, his picture
included with the article, to which he stated he is neither for
or against any of the plans and is still studying them.
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CONSENT CALENDAR - ITEMS "c" thru "M"
Hastings moved, second by Doane, to approve the recommended
action for items on the Consent Calendar as presented, except
Item "I", which was removed from the agenda, and Item "M",
considered under presentations.
C. Approved the waiver of reading in full
of all ordinances and resolutions and
that consent to the waiver of reading
shall be deemed to be given by all
Councilmembers unless specific request
is made at that time for the reading of
such ordina~ce or resolution.
D. Approved the minutes of the February 27th,
1995 regular meeting.
E.
Approved regular demands numbered 8227
through 8255 in the amount of $174,440.86,
payroll demands numbered 10648 through
10816 in the amount of $277,499.20, and
authorized warrants to be drawn'on the
Treasury for same.
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F. Denied the claim for indemnification on
behalf of the County of Los Angeles as
it relates to a claim for damages of
Kathryn Letson, and referred same to the
City'S liability attorney and adjuster.
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G. Denied the claim for damages o~Ms. Eden Y.
Johnson and referred same to the city's
liability attorney and adjuster.
H. Received and filed the Monthly Investment
Report as of January 31, 1995.
I.
Tabled Resolution Number 4313 entitled "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEAL BEACH SETTING POLICIES AND
PROCEDURES GOVERNING THE RESERVATION OF
CITY PARKS AND ATHLETIC FIELDS AND THE
RULES GOVERNING THEIR USE."
J. Adopted Resolution Number 4368 entitled "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEAL BEACH APPROVING THE RECEIPT OF A
$55,000 GRANT FROM THE CALIFORNIA DEPARTMENT
OF BOATING AND WATERWAYS FOR THE PURCHASE AND
INSTALLATION OF TWO NEW DIESEL MARINE ENGINES
ABOARD THE CITY'S LIFEGUARD OCEAN RESCUE
BOAT." By unanimous consent, full reading of
Resolution Number 4368 was waived.
K.
Adopted Resolution Number 4369 entitled "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEAL BEACH, DECLARING BY AUTHORITY OF
SECTION 1.010 OF THE CITY OF SEAL BEACH
CHARTER THAT INVITATIONS FOR BIDS FOR
REPAIR OF THE FIRE DAMAGE TO SEAL BEACH
MUNICIPAL PIER SHALL BE BY NOTICE TO ALL
BIDDERS AND CONTRACTORS FROM THE PRIOR
FIRE REPAIR BID." By unanimous consent,
full reading of Resolution Number 4369 was
waived.
L.
Approved the West Orange County Water Board
Service Connection Billing Agreement and
authorized the execution of same.
M.
(Approved under the heading of Presentations).
AYES:
NOES:
Brown, Doane, Forsythe, Hastings, Laszlo
None Motion carried
PUBLIC HEARING - DEVELOPMENT AGREEMENT - 322 MAIN STREET
Upon the arrival of the applicant, Mr. Bennett, Mayor Brown
declared the public hearing open to consider a Development
Agreement for 322 Main street, an Off-premise liquor to
restaurant use. The City Clerk certified that notice of the
pUblic hearing had been advertised and mailed as required, and
reported no communications received either for or against this
item. The Director of Development Services presented the staff
report and actions of the Planning Commission approving same,
and noted that at the time of approval the Commission had
indicated concern as to the clarity of the language as it
relates to the calculation of credit provisions and
determination of further costs of future parking spaces. He
stated that upon further review of the document it was found an
error had been made as to one provision of the agreement, a
revised Section 1.2.2 provided to the Council at this meeting
which reflects, in anticipation of a future AB 1600 parking
implementation progra:l, credit for the actual cash dollars paid
by the developer as part of the mitigatio~ fund and not
including credits normally granted for increased property tax
and sales tax revenue based upon the change of ownership of the
property and increased sales over the previous use. He
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expressed belief that the revision of section 12.2 addresses the
concerns of the Planning Commission, and reported that the
developer has accepted the change.
Mayor Brown invited persons wishing to speak to this item to
come to the microphone and state their name and address for the
record. Ms. Sue Corbin, Seal Beach, stated her opinion that I
persons should not be required to give their address. Ms.
Corbin said the reason for resorting to a development agreement ~
is because the project does not fit within the zoning, that for
the reason there is inadequate parking, seven to eight parking
spaces is insufficient, and the in-lieu fees must be used within
five years or returned to the person who paid those monies,
without the parking the project is inappropriate. There being
no further comments, Mayor Brown declared the public hearing
closed.
ORDINANCE NUMBER 1391 - DEVELOPMENT AGREEMENT - 322 MAIN STREET
Ordinance Number 1391 was presented to Council, as amended,
entitled "A RESOLUTIOil OF THE CITY OF SEAL BEACH APPROVING A
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SEAL BEACH AND RON
BENNETT FOR THE 322 MAIN STREET PROJECT (VARIANCE 94-7)." By
unanimous consent, full reading of Ordinance Number 1391 was
waived. Hastings moved, second by Forsythe, to approve the
introduction of Ordinance Number 1391 with amended section 12.2
and that it be passed to second reading. The City Attorney
recommended that Section 2 of the Ordinance be corrected to
reflect the date of March 13, 1995 rather than February 27th.
AYES:
NOES:
Brown, Doane, Forsythe, Hastings, Laszlo
None Motion carried
REOUEST - PLANNING COMMISSION HEARING - BIXBY RANCH
DEVELOPMENT - NORTH SEAL BEACH COMMUNITY CENTER
The Director of Development Services presented the staff report
relating to a request of Commissioner Campbell to conduct at
least one public hearing on the Bixby project, including the
Environmental Impact &eport and development approvals, at the
North Seal Beach Community Center, the thought being to hold the
initial hearing in the Council Chamber and with the anticipation
that the Commission will not conclude receiving testimony in one
meeting, that the second meeting be held closer to the project
site at the North Seal Beach Community Center. A communication
from the City Attorney's office explained that the regular
Commission meetings a=e required to be initiated in the
Chambers, alternatives could be to commence the meeting in
Chambers then adjourn to another location on the same evening,
or hold the regular meeting in Chambers and adjourn to a date
and time certain at a different location. Some concern of the
Commission had been'expressed that by moving the meeting to the
North Seal Beach Center the capability of a live cablecast would
be lost, to which he reported that the meetings can be taped by
the cable provider however they can not provide a live broadcast
from an outside location, Comcast has offered that for a one
time only meeting they would waive their normal charge of $1,000
per meeting to televise and tape that meeting, if there were to
be more than one meeting the unbudgeted cost needs to be kept in
mind, another issue could be whether the Council felt it
appropriate to hold another meeting elsewhere. He mentioned as
well that Commissioner Sharp indicated that if there were such a
degree of community concern to hold a meeting at the North Seal
Beach Center to acco~nodate College Park East, Rossmoor and Los
Alamitos residents, there is likely a number of Leisure World
residents that would also warrant a meeting within that area of
the community. The Director reported that the Commission had
determined to forward this issue to the Council for
determination and direction to staff. Councilmember Laszlo
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inquired if the Planning Commission approved the concept. The
Director responded that the Commission did not take a formal
vote on the concept however it is believed that a majority of
the Commission felt it would be appropriate to hold a meeting
elsewhere from City Hall, the motion made was to seek Council
direction. Councilman Laszlo recalled full Council Chambers at
previous hearings, expressed his belief that the upcoming
consideration will draw many people, the North Seal Beach Center
is closer for the citizens, the capacity of the Center is
greater than that of the Council Chambers, it is closer to the
project site, there are also options to the television costs, no
coverage, as there is no legal requirement to do so, a video
camera, Comcast does provide a single camera coverage at no
charge, or the $1,000 cost.
Councilman Laszlo moved to allow the Planning Commission to hold
a public hearing on the Bixby proposal at the North Seal Beach
Community Center. Mayor Brown seconded the motion.
Councilmember Forsythe noted that at times when there is a
hearing on a controve~sial issue the pub~ic often has important
information to offer at either the Planning Commission or
Council level, a concern is that this would be a meeting in
addition to the reqularly scheduled meetings, the Commission
legally required to hold their reqular meetings in the Chambers,
it is felt that to adjourn to another night will not allow the
pUblic access to information that they are accustomed to
receiving from Council Chambers, 'members of the Council would
not be privy to all information if the meeting were not
televised, therefore it is imperative that all of the public
hearings on this matter be televised in the reqular format. She
noted that College Park East is a part of this community, the
distance to travel from College Park to City Hall should not be
a consideration, a precedent will be set for meetings to be held
outside of the Chambers and on other than regular meeting
nights, as an example pUblic access is not available to hold
meetings in Leisure World, cost is a concern, rental of a public
address system being one example. Councilmember Forsythe said
she wished to have th9 Bixby proceedings go smoothly, if it
takes more than one evening to hear public comments at the
Planning Commission level the hearing will be continued, it
should be cont~nued in this building, it should be televised,
properly amplified, and all persons of this community should
have access to comments of the Planning Commission, city
Council, and members of the community. She emphasized her
concern that vital information could come. forward during the
proceedings that would not be allowed as part of the public
record because some representatives may not have heard it, all
information needs to be considered, documented, and available to
every voting member regarding the project. Mayor Brown spoke
for holding as many meetings as is deemed necessary to obtain
public input on this issue, the meeting can be videotaped and
run on Comcast to allow everyone the opportunity to view it, and
should a meeting be desired in Leisure World access could be
provided without a problem. Councilman D~ane countered with his
belief that holding a public meeting in Leisure World, which
must be available to all persons, would pose a problem,
particularly with regard to security, obj~cted to the idea of
setting a precedent, Council Chambers being the designated
meeting place, equipped to handle all kinds of meetings.
Councilmember Hastings asked if McGaugh School could be an
alternative location if the number of attendees required
relocation, to which Councilman Laszlo again cited the North
Seal Beach Center as closer to the project and the affected
residents, stating that the request is for only one meeting at
the Center. To a question of Councilmember Hastings, the city
Attorney confirmed that if the commission'were to hold such
adjourned meeting it would be the same as.if it were held in the
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Chambers. Councilmember Forsythe explained that her comments
were meant to be in the best interest of College Park East
residents, her concern being that if the meeting is held outside
of Council Chambers it will not have the formality if held in
the Community center, the acoustics will likely not be good,
citing past experience with microphones and amplification in
that facility, a video will not be shown on the regularly 1
scheduled time therefore people will not have the opportunity of -
the input, and if not taped it would be a waste of the pUblic's
time because their concerns will not be heard.
AYES:
NOES:
Brown, Hastings, Laszlo
Doane, Forsythe
Motion carried
The Mayor suggested arrangements be made to show the consecutive
meeting tapes on the Sunday of the regular rebroadcast.
Councilman Laszlo clarified that the meeting to be held at the
North Seal Beach Center will be a second public hearing session
on the Bixby proposal. Staff offered to coordinate the meeting
with Comcast, with thg various options presented for Council
consideration.
REPORT - PIGEON FLOCKS - MUNICIPAL PIER
The city Manager presented the staff report relating to concerns
expressed relative to the increasing flock of pigeons in the
area of the municipal pier, that primarily due to the feeding of
the pigeons by the public, and noted that the feeding of wild
birds is prohibited by City ordinance. He reported that staff
has found the city is incurring fairly significant maintenance
costs in the pier area relative to the cleaning of fountains,
benches, etc., the area has been posted prohibiting the feeding
of pigeons, enforcement of the ordinance will now commence,
which does provide for citation of violations. He noted that
staff contacted various organizations and schools to explore
various ways to discourage the increase of pigeons, food that
affects sterilization is one method however results of that are
not realized for about three to four years, relocation is a
possibility yet quite expensive, and individuals contacted
indicated that prohibiting the feeding of the pigeons does not
starve them as they seek new feeding a~eas as a qatural
instinct. He pointed out that the impact of pigeons versus
seagulls is quite different, the problems associated with
maintenance of facilities is definitely the result of the
pigeons, and there are health concerns as well. The Manager
requested Council acceptance of the posting of the area,
concurrence with the enforcement of the City ordinance with fine
and citation authority, and commencement of a public education
program. There was an indicated consensus of the Council to
implement the steps as recommended by staff.
BOND RATING I ORANGE COUNTY BANKRUPTCY
In response to an inquiry at the last meeting, the City Manager
explained that the City has two bond issues, one being the TRAN,
an annual issue and payback on a fiscal year basis, the last
issue received a MIG-1 rating, that the highest that can be
achieved on a TRAN, as compared to no rating four years ago and
a MIG-2 rating the past two years, Standard and Poors and
Moody'S have been provided with the City'S cash flow information
and all indications are that that rating will not change. The
Agency has two bonds, a 1986 $2 million issue carrying a AAA
rating, a 1991 issue having a BBB plus rating, both bonds were
placed on credit watch the day following the County bankruptcy,
Seal Beach was the first city in orange County to achieve the
removal of the credit watch, and there is no change in the bond
rating of either issue. There is also a 1968 revenue bond for
water improvements that has a BAA rating and continues at that
rating. Again, information has been provided to the bond rating
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agencies, discussions have been held with them and given the
importance of a rating as it relates to future' issues and
interest, no concern has been expressed by either firm cash
flow is better than it has been in a number of years, ~nd the
rating on all bond issues remains the same.
As to the bankruptcy, the Manager said it is hoped a resolution
is soon forthcoming, the Pool Participants Committee has been
active through the bankruptcy court, the County approved a
settlement plan as proposed by the Business Committee outside of
the bankruptcy process, the Pool Participants Committee is
within a few days of presenting its proposal to the courts,
there has been discussions with the Debtors Committee, there
appears to be support for the proposal, and previous indication
had been that if the Pool Participants and Debtors Committees
could come to agreement on the settlement that would be looked
upon favorably by the court. The Manager explained that the
proposal would provide for a one "hundred percent"return of the
funds through a series of processes, the pool has been
restructured, most of the holdings liquidated and reformed in
securities and/or cas~ in short term investments, brought to a
point where there is real value on the present holdings to an
equivalent of seventy-seven cents on the dollar. He noted there
are settlements in discussion and court actions where the
settlements fail that will produce an additional three to five
cents, there has also been a recognition on the part of the
County that there was some misreporting of interest yields which
is owed back to the pool participants, within thirty to forty-
five days of court acceptance of the settlement agreement the
City should receive approximately eighty-five cents on the
dollar along with a two-tiered system of secured notes that is
to generate the remaining fifteen cents over the medium and long
term, the specifics of which are not yet fully evaluated. In
that the County is involved in two bankruptcies~ the pool and
the County, there needs to be recognition~that certain assets
would be divided out of the proceeds to pool participants and
the County bankruptcy, there is also an ability through this
process to assist the County in a significant due date of more
than a billion dollars to the bond holder,-, noting that more
than twenty thousand Orange County citizens hold County bonds
and the ripple of a default would affect a~y and all. It is
anticipated that the settlement proposal of the Pool Committee
will soon be finalized for presentation to the City Council, all
pool participants will be required to take a formal action of
acceptance, one option provides for a lesser return however
holds open a litigation potential against the County which some
districts may favor, however at this point there appears to be
general agreement that there is finally a reasonable settlement
proposal which brings' back one hundred percent of the principle.
The Mayor mentioned that any money held by" the County will
accrue interest in the range of five to five and a quarter
percent. He noted his position as chairman of the Finance
Committee for the Sanitation Districts, the Districts having
$241 million in the County pool, it appears that the same
agreement as described by the Manager seems to be prevailing
throughout the County, and mention has been made of the
possibility that the County will not meet~heir bond payment
however discussions will be occurring with the bond holders.
ORAL COMMUNICATIONS
Mayor Brown declared Oral Communications open. Mr. Bruce Stark,
Seal Beach, asked if Seal Beach is still first in line to
recover their monies. He asked that city staff and the Planning
Department be directed to convey correct information as to what
Bixby is proposing to develop, the impacts and details thereof,
conveyed his negative impression of prior ~eetings at the North
Seal Beach Center relating to the Bixby proposal, also alleged
3-13-95
that misinformation was given on the Mola project. Ms. Sue
Corbin, Seal Beach, said people should not be required to
provide their address as someone could then have the opportunity
to burglarize their residence. She said holding a meeting
outside of council Chambers is not precedent setting as there
have been meetings in the past at MCGaugh School and the Naval
Weapons station, and mentioned that since there have been I
technical difficulties cablecasting the last few meetings, -
Comcast owes the City a taping. Ms. Corbin also asked if people
would be harassed if they feed the pigeons. Dr. Rosenman, Seal
Beach, reported the home video of this meeting is impaired.
There being no further comments, Mayor Brown declared Oral
Communications closed.
COUNCIL REPORTS
Mayor Brown extended an apology to the other members of the
Council, explaining that while any member of the audience is
free to speak their opinion during oral communications, it is
also his intent to avoid a debate, however it is likewise hoped
that those persons speaking will be respectful and keep to the
issue. Councilman Doane complimented captain Maiten and city
staff for their efforts in preparing for the recently
anticipated storm which did not materialize as reported by the
news media, and that the more accurate information as to
intensity was provided by Flood Control. The Mayor also
recognized the efforts of staff and Flood Control personnel,
also assured the citizens that consideration of improvements to
the flood control system are continuing. Councilmember Forsythe
announced the untimely passing of Dr. Ollie Haggans, local
veterinarian for many years, and commended his absolute gift
with animals. Councilmember Laszlo offered a reminder of
Tuesday's election for a representative to the State Senate from I"
this district. Councilmember Hastings announced a meeting to
the held on Wednesday this week at the Naval weapons Station
which she and the city Manager would be attending along with
Assemblyperson Doris Allen, representatives of the Army Corps,
Moffat & Nichol, and Surfside, to commence discussions once
again as to the sand replenishment issue.
~JOmrnM~T
It was the order of the Chair, with consent of the Council to
adjourn the meeting until Monday, March 27th, 1995 at 6:30'p.m.
to meet in Closed Session if deemed necessary. By unanimous
consent of the Council, the meJl~ng was adjourned at 8:45 p.m.
( 1 ~
C~ty Clerk an
Citi,AOf Seal
of the
Approved:
I
Attest: