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HomeMy WebLinkAboutCC AG PKT 2006-06-26 #G AGENDA REPORT DATE: June 26, 2006 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: Linda Devine, City Clerk . SUBJECT: APPROVAL OF CITY COUNCIL MINUTES SUMMARY OF REQUEST: Approve minutes for City Council and Redevelopment Agency joint meeting held on May 22, 2006 and the City Council Budget Workshops held on June 5th and 6th, 2006. BACKGROUND: None FINANCIAL IMPACT: None RECOMMENDATION: Approve minutes for May 22, 2006; June 5, 2006; and June 6, 2006 • e /L /. Li' a Devine, City Clerk • NO = • A 6 APPROVED: ( '' - ' A , 1: 1 ' Jo / B.: ahorski, ity Manager • Attachments: Minutes Agenda Item rji° • Seal Beach, California May 22, 2006 The City Council of the City of Seal Beach met at 6:00 p.m. with Mayor Antos calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Member Antos Council Members Larson, Levitt, Ybaben, Yost Also present: Mr. Bahorski, City Manager Mr. Barrow, City Attorney Mr. Whittenberg, Director of Development Services Mr. Vukojevic, Director of Public Works /Engineering Chief Kirkpatrick, Police Department Mr. Evanoff, Director of Administrative Services Mr. Crumby, Deputy City Engineer Ms. Yostuya, Assistant City Manager Battalion Chief, Rick Reeder, OCFA Mr. Mangkalakiri, Engineer Intern Ms. Chapanond, Administrative Assistant Mrs. Devine, City Clerk/Secretary ORAL COMMUNICATION Mayor Antos declared Oral Communications open. Ms. Elizabeth Kane, 5K /10K Run committee, reported on a successful event, the committee will review the applications for grant funds after the June 9th deadline, and grants will be awarded to applicants with recreation related needs. There being no other speakers, Mayor Antos declared Oral Communications closed. SWEARING -IN CEREMONY The City Clerk administered the Oath of Office to the following City Council representatives elected on March 28, 2006: Mr. Charles Antos, District One for the second full term of office; Mr. Gordon Shanks, District Three for a full term; and Mr. Michael Levitt, District Five for a full term. Councilman Shanks joined the Council at the dais, replacing out -going Councilman Yost. Councilman Yost received a commemorative plaque, his official council photograph, and a glass seal plaque recognizing his service on the City Council from 1998 to 2006 - Mrs. Yost was presented a bouquet of flowers. Each Councilmember expressed their thanks to Councilman Yost for all the good work that he had accomplished in his tenure. Dr. Yost thanked his family for supporting him during the last eight years, expressed his appreciation to all the City staff members for their work, and invited everyone to a reception at the River's End restaurant. COUNCIL REORGANIZATION SELECTION OF MAYOR Mayor Antos declared nominations open for the position of Mayor for 2006/2007. Mayor Antos nominated Councilman Larson as Mayor. By unanimous consent, nominations were closed. AYES: Antos, Larson, Levitt, Shanks, Ybaben NOES: None Motion carried Councilman Larson was declared Mayor for 2006/2007 and resumed the conduct of the meeting. Page - 2 City Council — 05 -22 -06 SELECTION OF MAYOR PROTEM Mayor Larson declared nominations open for the position of Mayor ProTem for 2006/2007. Councilman Antos nominated Councilman Ybaben as Mayor ProTem. By unanimous consent, nominations were closed. AYES: Antos, Larson, Levitt, Shanks, Ybaben NOES: None Motion carried Councilman Ybaben was declared Mayor ProTem for 2006/2007. Mayor Larson presented past Mayor Antos with the commemorative gavel plaque for his service as Mayor for 2005 -2006. Councilman Antos stated that he hoped everyone thought he did a good job as mayor and wished Mayor Larson good luck for the coming year. Comments from fellow Councilmembers were made. With no objections, Mayor Larson declared a recess at 6:30 p.m. - refreshments were served - the meeting was reconvened at 7:00 p.m. with Mayor Larson calling the meeting to order. APPROVAL OF AGENDA Councilman Ybaben removed item "M" for separate consideration. Antos moved, second by Ybaben, to approve the order of the agenda as revised. AYES: Antos, Larson, Levitt, Shanks, Ybaben NOES: None Motion carried PRESENTATIONS /PROCLAMATIONS Mayor Larson introduced the representatives receiving the proclamations and the City Manager presented the following proclamations: "Motorcycle Awareness Month" — May, 2006 - Mr. Jorge Moreno; "Emergency Medical Services Week" — May 14 -20, 2006 and "Drowning Prevention and Awareness Summer" — May 29, 2006 to September 4, 2006 - Battalion Chief Rick Reeder - OCFA; Senior University CSULB "Celebrating a Decade of Learning" - 10th Anniversary Gala on June 10, 2006 - Mr. Harold Drab, president; "National Public Works Week" — May 21 -27, 2006 and "Watershed Awareness Month" — May, 2006 - Director Mark Vukojevic. Public Works department gave a presentation on all the projects the department has either completed or in progress. CITY ATTORNEY REPORT No report was given. CITY MANAGER REPORT No report was given. COUNCIL COMMENTS Councilman Antos suggested that the councilmembers and planning commissioners read the article in the Parade section of the Sunday newspaper. It talks about mansionization, he will provide the Director of Development Services with copies. COUNCIL ITEM At the request of Councilman Antos and the consent of the Council, a report on the feasibility of retaining a board or committee for the purpose of job specifications review was provided by the Personnel Manager. With no objection the report was received and filed with no action taken. CONSENT CALENDAR - ITEMS "C" thru "P" With no objection the Council approved the recommended action for items on the Consent Calendar as presented, except for item "M" pulled for separate consideration. Page - 3 City Council — 05 -22 -06 C. Approved the waiver of reading in full of all resolutions and ordinances and that consent to the waiver of reading shall be deemed to be given by all Councilmembers after the reading of the title unless a specific request is made at that time for the reading of such resolutions and ordinances. D. Approved the minutes of the adjourned and the regular City Council meeting held on April 24, 2006. Councilman Shanks abstained from the vote. E. Approved regular demands numbered 57630 through 58074 in the amount of $2,278,533.46; payroll demands numbered 57694 through 57741, in the amount of $180,492.55, 57928 through 57980 in the amount of $184,350.63; and authorized warrants to be drawn on the Treasury for same. F. Received and filed the Monthly Investment Report for April, 2006. G. Approved the adoption and second reading of Ordinance Number 1545 entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING CHAPTER 3.15 OF TITLE 3 RELATING TO PERSONNEL." By unanimous consent, full reading of Ordinance Number 1545 was waived. H. Approved the cancellation of the June 12, 2006 City Council meeting. I. Approved the adoption and second reading of Ordinance Number 1546 entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH ADOPTING ZONE CHANGE 06 -1, CHANGING THE ZONING DESIGNATION FROM GENERAL COMMERCIAL (C -2) TO RESIDENTIAL HIGH DENSITY (RHD), DISTRICT 1, AT 400 MARINA DRIVE." By unanimous consent, full reading of Ordinance Number 1546 was waived. J. Adopted Resolution Number 5448 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 #50210 SECURITY FENCING FOR THE POLICE STATION ENTERED INTO BETWEEN CITY OF SEAL BEACH AND LAKELAND FENCE CORPORATION." By unanimous consent, full reading of Resolution Number 5448 was waived. K. Adopted Resolution Number 5449 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH APPROVING THE PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF SEAL BEACH AND DMS CONSULTANTS INC. FOR ON -CALL ENGINEERING SERVICES." By unanimous consent, full reading of Resolution Number 5449 was waived. L. Approved the Plans and Specifications for Phase 2 — Sewer Pump Station 35 Upgrade, Project No. 49886 and authorized staff to initiate bidding process. M. * *Removed for separate consideration - Ybaben ** N. Adopted Resolution Number 5463 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING THE MAYOR TO EXECUTE A JOINT USE AGREEMENT WITH SOUTHERN CALIFORNIA EDISON COMPANY REGARDING THE PACIFIC GATEWAY BUSINESS Page - 4 City Council — 05 -22 -06 CENTER PROJECT." By unanimous consent, full reading of Resolution Number 5463 was waived. O. Adopted Resolution Number 5464 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AWARDING THE BID FOR THE ANNUAL LANDSCAPE MAINTENANCE CONTRACT." By unanimous consent, full reading of Resolution Number 5464 was waived. Awarding to the lowest responsible bidder, Merchant Landscaping in the amount of $279,360.00 and authorized the City Manager to execute the contract on behalf of the City. Bids were received until May 9, 2006 at 10:00 a.m. for the landscape maintenance services contract for the parks, medians, and facility grounds citywide, at which time they were publicly opened by the City Clerk as follows: Company: Bid Amount Mariposa Horticultural Ent., Inc. $374,611.56 Artistic Maintenance, Inc. $408,708.00 Marina Landscape, Inc. $419,904.00 Spectrum Care Landscape $330,696.00 TruGreen LandCare $290,136.00 Merchants Landscape Services, Inc. $279,120.00 Bennett Landscape $403,800.00 Midori Gardens $561,431.40 P. Adopted Resolution Number 5465 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH APPROVING FINAL PARCEL MAP NO. 2003 -251 (BURNHAM DEVELOPMENT)." By unanimous consent, full reading of Resolution Number 5465 was waived. P.1. Approved the appointment of John Larson as the City representative and Michael Levitt as alternate representative to the Los Cerritos Wetlands Authority. AYES: Antos, Larson, Levitt, Shanks, Ybaben NOES: None Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR ITEM "M" / ANNUAL STREET LIGHTING ASSESSMENT / RESOLUTIONS NUMBER 5460, 5461, AND 5462 Councilman Ybaben wanted clarification to the varying amounts charged in the different City areas. The Director of Administrative Services explained that the engineers assess the area and a formula is used to establish the charges - public hearing is scheduled for the June 26th council meeting. Antos moved, second by Ybaben, to adopt the following: Resolution Number 5460 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, INITIATING PROCEEDINGS FOR THE ANNUAL LEVY AND COLLECTION OF ASSESSMENTS WITHIN, AND ORDERING THE PREPARATION OF AN ENGINEER'S REPORT FOR STREET LIGHTING DISTRICT NO. 1 "; Resolution Number 5461 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AND APPROVING THE ENGINEER'S REPORT IN CONNECTION WITH THE ANNUAL LEVY AND COLLECTION OF ASSESSMENTS WITHIN STREET LIGHTING DISTRICT NO. 1 "; and Resolution Number 5462 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, DECLARING ITS INTENTION TO PROVIDE FOR THE ANNUAL LEVY AND COLLECTION OF ASSESSMENTS WITHIN STREET LIGHTING Page - 5 City Council — 05 -22 -06 DISTRICT NO. 1, AND SETTING A TIME AND PLACE FOR PUBLIC HEARING THEREON." By unanimous consent, full reading of Resolutions Number 5460, 5461, and 5462 was waived. The City Attorney announced that the public hearing for this item will be schedule for the June 26th Council meeting. AYES: Antos, Larson, Levitt, Shanks, Ybaben NOES: None Motion carried PUBLIC HEARING / RESOLUTION NUMBER 5466 / TENTATIVE PARCEL MAP (TPM) 2005 -331 / 901 -1101 PACIFIC COAST HIGHWAY The City Attorney noted that Councilman Shanks acted on this matter as a member of the Planning Commission and recused himself and left the Council Chambers due to the fact that this may be considered a conflict of interest. Mayor Larson declared the public hearing open to approve Tentative Parcel Map 2005 -311; 901 -1101 Pacific Coast Highway - Seal Beach Center, with conditions. The Director of Development Services reported that the public hearing is to consider the approval of the tentative parcel map to re- subdivide the existing Pavilion /Sav -on shopping center at Main Street and PCH. As part of the renovation of the center the owners are asking that the center be divided in order for the major tenants of the larger businesses may own the land, there will be parking agreements and a CC and R's recorded for the common areas. Planning Commission did have their public hearing and recommends approval with conditions. The final map will come back to the council to authorize recording of the map after all conditions have been met. The City Clerk stated that the notice was published in the Sun newspaper on April 13th, 2006 as required by law and no correspondence for or against this item was received by the City Clerk's office. Mayor Larson asked those who wish to speak to this item to approach the podium and state their name for the record. There being no speakers Mayor Larson declared the public hearing closed. Councilman Levitt received clarification that this was the same situation as in the Seal Beach Shopping Center for the fast food establishment. Antos moved, second by Ybaben, to adopt Resolution Number 5466 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH APPROVING TENTATIVE PARCEL MAP 2005 -311 AT 901 -1101 PACIFIC COAST HIGHWAY, SEAL BEACH." By unanimous consent, full reading of Resolution Number 5466 was waived. AYES: Antos, Larson, Levitt, Ybaben NOES: None ABSTAIN: Shanks Motion carried Councilman Shanks returned to his seat at the dais in the Council Chambers. MEASURE "M" / RESOLUTION NUMBER 5467 / TRANSPORTATION INVESTMENT PLAN . The Director of Public Works stated that the half cent sales tax was approved by the Orange County voters in November of 1990 and at this time it is up for re- authorization to continue the sales tax for the next 30 years, this will expire in 2011. The funds are administered by the Orange County Transportation Agency (OCTA) for improvements to the regional freeway, improvements to local streets and roads, and fare reductions for seniors and persons with disabilities. The Director also stated that a majority of the Orange County cities and the OCTA Board of Directors needs to approve the Measure M Investment Plan in order to be able to request the Measure be placed on the November 2006 ballot. Mr. Peter Herzog, Measure M Super Committee chairman, highlighted some facts in the informational pamphlet "Renewed Measure M Transportation Investment Plan ". Council commented that Sacramento and Caltrans should give a lot more money back to the cities. Measure M program needs to put more funds into the local street or the voters will not vote for the re- authorization. Need to support Measure M - City has benefited from the funds. The City should support the efforts to place this Measure before the Orange County voters; it is collected Page - 6 City Council — 05 -22 -06 locally and spent locally. The Council is supporting the efforts to place this issue on the ballot and let the voters decide. Levitt moved, second by Ybaben, to adopt Resolution Number 5467 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH APPROVING THE RENEWED MEASURE M TRANSPORTATION INVESTMENT PLAN." By unanimous consent, full reading of Resolution Number 5467 was waived. AYES: Antos, Larson, Levitt, Shanks, Ybaben NOES: None Motion carried Mayor Larson recessed the City Council at 7:55 p.m. to the Redevelopment Agency meeting and reconvened the City Council meeting at 9:06 p.m. ADJOURNMENT It was the order of the Chair, with consent of the Council, to adjourn the Council meeting at 9:06 p.m. to Monday, June 5th, 2006 at 5:00 p.m. to meet for the Budget Workshop in the Council Chambers. City Clerk and ex- officio clerk of the City of Seal Beach Approved: Mayor Attest: City Clerk THESE ARE TENTATIVE MINUTES ONLY, SUBJECT TO THE APPROVAL OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH. Council Minutes Approved: Seal Beach, California May 22, 2006 The Redevelopment Agency of the City of Seal Beach met in regular session at 7:55 p.m. with Chairman Ybaben calling the meeting to order. ROLL CALL Present: Chairman Ybaben Agency Members Antos, Larson, Levitt, Shanks Also present: Mr. Bahorski, Executive Director Mr. Barrow, Legal Counsel Mr. Vukojevic, Director of Public Works /City Engineer Chief Kirkpatrick, Police Department Mr. Whittenberg, Director of Development Services Ms. Chapanond, Administrative Assistant Mrs. Devine, Secretary APPROVAL OF AGENDA Shanks moved, second by Antos, to approve the order of the agenda as presented. AYES: Antos, Larson, Levitt, Shanks, Ybaben NOES: None Motion carried ORAL COMMUNICATIONS Chairman Ybaben declared the Oral Communications period open and allowed the audience to speak on non - redevelopment agency issues. Mr. Charles Gilliard, Director of Mutual 2 in Leisure World and Shirley Duckworth expressed their concerns, on behalf of 14 residents present, over the Boeing construction - the noise, time of work, the dirt, and that they should have new windows (lives 2 streets south of El Dorado who got the windows) - Agencymembers Larson and Levitt directed them to contact the City staff regarding the issues. Mr. Clark, trailer park, stated his thoughts regarding the RDA and the trailer park. There being no further comments, Chairman Ybaben declared Oral Communications to be closed. AGENCY RE- ORGANIZATION SELECTION OF CHAIRMAN Chairman Ybaben declared nominations open for the position of Chairman for 2006/2007. Shanks nominated Vice - chairman Levitt as Chairman. Vice - chairman Levitt declined the nomination. Chairman Ybaben nominated Member Antos as Chairman with no objection Member Antos was declared Chairman of the Redevelopment Agency. SELECTION OF VICE - CHAIRMAN Chairman Ybaben declared nominations open for the position of Vice - chairman for 2006/2007. Shanks nominated Vice - chairman Levitt to continue as Vice - chairman. No further nominations were made. AYES: Antos, Larson, Levitt, Shanks, Ybaben NOES: None Motion carried Vice - chairman Levitt was declared the Vice - chairman for the Redevelopment Agency for 2006 -2007. Chairman Antos resumed the meeting. Out -going Chairman Ybaben was presented with the commemorative gavel plaque for his tenure as Chairman. Page 2 - RDA - 01 -23 -06 AGENCY MINUTES Larson moved, second by Ybaben, to approve the RDA minutes of the joint regular meeting held on April 24, 2006. AYES: Antos, Larson, Levitt, Ybaben NOES: None ABSTAIN: Shanks Motion carried PRESENTATION - THE LOFTIN FIRM / SEAL BEACH TRAILER PARK The Director of Development Services requested that the Loftin Firm give a brief presentation regarding the proposed change in ownership of the Seal Beach trailer park to a resident owned non - profit public benefit corporation. The Seal Beach Affordable Housing Corporation (SBAHC) submitted an application to the City for an MPROP loan to effectuate this change. The Agency would need to give staff direction on several issues, as outlined in the staff report, concerning the proposed transfer of ownership. Ms. Sue Loftin, attorney with the Loftin Firm representing the resident association (non - profit benefit corporation 501 C3 designation), gave an overview of the process for the transfer and the benefits for the residents and the benefits for the City with the transfer of ownership. The ownership structure would allow the residents to obtain conventional loans to get financing and re- financing for homes. The Agency is asked to retain the existing loan terms for the million dollars otherwise they would have to apply for more money from the bank and that would raise the rent and affordability for the residents. Those residents not wanting to be able to participate in ownership of the trailer park would remain in the park with no changes of their rights, they just don't have any voting rights. Ms. Loftin recapped what they are requesting of the Agency: 1) agree to leave the existing loan in place; 2) agree to the new financing and subordinate the loan in the same order it currently is and subordinate the regulatory agreement to the HUD agreement; 3) would like the City representative to SBAHC to support this transfer - Mr. Hunter Johnson and his attorney, Mr. Powers are on board with this plan; and 4) reimbursement agreement where City expenses would be reimbursed out of the closing. In answer to the question by Agencymember Ybaben regarding the current status: Ms. Loftin replied that they are at a stand still until they hear about the MPROP funding and whether the City /RDA agrees to leave the million dollars in place. Question regarding reimbursement agreement: Ms. Loftin explained that staff had made it clear that any cost to the City /RDA relating to this refinancing would need to be reimbursed out of the closing cost and (SBAHC) have agreed to this type of agreement. Ms. Loftin clarified that it is not uncommon for a City /RDA to step in to help residents to preserve affordable housing and allow time for the residents to put a program together so they can own the property to remove a level of management to get things done at the park - this is the next step to make a permanent long term affordable housing project. Agencymember Ybaben stated that the RDA needs to take a step back to rethink this proposed change. Agencymember Levitt indicated that there is some concern about some residents are going to make a profit off the City under the current structure - Ms. Loftin explained that currently two families own two homes and a husband and wife each qualified and received money from the City - currently there is no restriction as to how many homes a resident can own - under the new proposal there is a limit of one home per family and you must live there. Agencymember Larson expressed that the City /Agency does not own the trailer park - stepped in to loan the trailer park some money that we will be getting back - the City /Agency was then sued and had to pay for the attorney fees for both sides - not voting to spend anymore money or time on the trailer park - Ms. Loftin responded that the City /Agency is a lender on the property and a member on the SBAHC board and not additional funds are being requested - just need to subordinate the current loan to the new financing. It was clarified that there would be a full program devised for rent subsidies from the park instead of the City - would take nine months for the transfer. The Executive Director answered the question regarding the million dollar loan stating that with the transfer agreement the loan will be forgiven 1 /30th a year until it's no more - the City will not be getting the loan money back - the City /Agency will need to decide if this loan should be paid Page 3 - RDA - 01 -23 -06 / 02 -27 -06 back. Chairman Antos requested that a report be prepared on the long term and short term effects of establishing a rent subsidy loan program with the new financing. The Executive Director stated that with the history of the trailer park means there will be a lot of time spent on this - staff is requesting: 1) get a reimbursement agreement; 2) direction on the residual receipts - repaid when occurs or keep as is per current agreement; and 3) policy question to the Agency is the $180,000 a year in wrap up costs for a one year period and then the trailer park will take over. Council /Agency needs to get assistances from the Legal Counsel outlining the options that the Agency might have and the effects for any consensus and to review all the documents to make sure the Agency has an understanding of the terms of the agreement - this will be a privately owned non- profit, public benefit corporation so as a public policy issue the Agency needs to decide if the residual receipts loan remain in place or should it be paid back - there may be many other issues that need to be considered. The Director requested consensus from the Agency regarding the reimbursement agreement and the repayment of the residual receipt. One question was brought up regarding the reimbursement of costs if the deal falls through - the Director replied that there could be some language in the agreement that the proposed corporation put some funds up front to protect the Agency - this concern and other issues need to be addressed. Chairman Antos announced that consensus was to have staff discuss with the resident group the reimbursement agreement and bring back a draft to the Agency at the June 26th meeting and also agreed not to spend a lot of money on attorney fees. RESOLUTION NUMBER 06 -07 / AUTHORIZE PAYMENT UNDER PREVIOUS LOAN AND GRANT PROGRAM GUIDELINES The Director of Development Services reported that the Agency suspended the processing of 11 applications for rehabilitation loans and some of the applicants proceeded with their projects on their own using their own money. There are now funds available and staff is requesting that one of the applicants be reimbursed for work they had been approved to do before there were funds available. Ybaben moved, second by Shanks, to adopt Resolution Number 06- 07 entitled "A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY AUTHORIZING THE PAYMENT OF UP TO $10,000 TO PROVIDE ASSISTANCE ALLOWABLE UNDER PREVIOUSLY ADOPTED PROGRAM GUIDELINES UNDERTAKEN DURING TIME OF PROGRAM SUSPENSION." By unanimous consent, full reading of Resolution Number 06 -07 was waived. AYES: Antos, Larson, Levitt, Shanks, Ybaben NOES: None Motion carried ADJOURNMENT It was the order of the Chair, with consent of the Agency, to adjourn the meeting at 9:06 p.m. Mayor Larson reconvened the City Council meeting. Chairman City Clerk / Secretary THESE ARE TENTATIVE MINUTES ONLY, SUBJECT TO THE APPROVAL OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH. Agency Minutes Approved: Seal Beach, California June 5, 2006 The City Council of the City of Seal Beach met in regular adjourned session at 5:00 p.m. with Mayor Larson calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Larson Councilmembers Antos, Levitt, Shanks, Ybaben Also present: Mr. Bahorski, City Manager Ms. Yostuya, Assistant City Manager Mr. Whittenberg, Director of Development Services Mr. Vukojevic, Director of Public Works /City Engineer Mr. Crumby, Deputy City Engineer Mr. Evanoff, Director of Administrative Services Ms. Gonzalez, Administrative Services Manager Mr. Duenas, IT /Quecore Chief Kirkpatrick, Police Department Lieutenant Olson, Police Department Captain Bailey, Lifeguard Department Ms. Chapanond, Administrative Assistant Mrs. Devine, City Clerk BUDGET WORKSHOP Presentation — Proposed Budget Fiscal Years 2006/2007 The City Manager pointed out the different documents prepared for the budget workshop; copies were available at the libraries and in the City Clerk's office. • This would be a one year budget, the assumptions: reserves are fully funded, no change in personnel, and capital improvement funding continues as a high priority — all shopping centers are impacted by some kind of construction — no revenues from Pacific Gateway center — no collection from the new TOT (bed tax) has been collected. • General Fund Revenues project to increase by 23% - top three revenues continue to be Utility User Tax, Property Tax, and Sales Tax. • General Fund Expenditures project to increase by 14% - Police and fire services consume 51% of budget — city subsidizes Tidelands Beach Fund (lifeguards, beach cleaning, etc.) • Balanced budget — reserves fully funded — undesignated fund exceeds fiscal goal — putting money into the City's infrastructure improvements. • Capital Improvement Projects (CIP) balances the funding for water and sewer. The Director of Administrative Services reviewed the undesignated fund document and the five year revenues vs. expenditures graph. • The revenues and expenditures have remained stable. • Top revenues: property tax 45% - utility user tax 31% - sales tax 24% • Top expenditures: police and fire 51 % - general administration • Utility fund — sewer expenditures will decrease with the rate increase that was put into place. The City Manager concluded: • CIP focuses on balanced approach to improvements. • CIP expenditures are approximately $17million — $2.4 million from General Fund — $1.5 million from Redevelopment Agency (RDA) to pave Ocean Avenue and $800,000 to repair Zoeter site. Capital Improvement Program - Director of Public Works /City Engineer The Director went over the highlights in the CIP documents. • $2 million — 5 year CIP Page 2 - Budget Workshop 06 -05 -06 • Past year highlights for beach, pier, buildings, parks, sewer projects, storm drains, street, and water projects • Master Plans and updates for sewers, drainage, water quality, fleet management, water rate study, pier condition, pavement management study, and facility and building condition assessment. • Outside funding sources: Caltrans, OCTA, State grants, Rivers and Mountain conservancy. • Two big changes in funding source are the General Fund and RDA. • Four large project areas are water 27% - streets 24% - storm drains 15% - sewer 18% to line up with funding. • The CIP is citywide. • Reviewed the proposed CIP for beach /pier — buildings — non - departmental — parks — sewers — storm drains — streets — water — as well as the unfunded needs (about $40 million). • Proposed projects for storm drains will be designed and ready for future funding. Pavement Management System Report - Deputy City Engineer • Presented an overview of the Pavement Management report that has been presented several times to Council - formalizing the process in selecting maintenance and rehabilitation projects for funding in the upcoming budget. • Pavement areas by Councilmanic District: District 1 - 15 %; District 2 - 17%; District 3 - 36 %; District 4 - 29 %; District 5 - 3 %. • Different types of distresses to the pavement: alligator cracking, rutting, weathering and raveling, and longitudinal transverse cracking. This is taken into account when rating the condition and what type of surface material that is used. • Overall the majority of the streets are in very good condition with about 30% of the streets in fair condition and about 10% in poor or very poor condition. • Have made significant improvements throughout the city. • Must retain good roads while repairing poor roads. • Proposed $1.85 million in this year's budget. Fleet Management Report - Director of Public Works /City Engineer • Significant progress in last four years - reduced staffing to one mechanic. • Cash purchases not leasing. • Proposed vehicle purchases for 06 -07: 3 police vehicles; 1 engineering vehicle; 1 tractor for beach; 1 dump truck - patch truck. Pier Decking Report - Deputy City Engineer • Brief history of the pier. • Present condition of the piles, cross bracing, and stringers is in satisfactory condition. • Decking is in poor condition - functional but rough. • Long term solutions: functionality, aesthetics, pedestrian comfort, safety, fire resistant, and life cycle and maintenance. • Before 1983 the decking was asphalt - evaluating four wood type replacements - will be looking at the best cost for value. • Will be trying to obtain grants to help with costs. Next Steps - City Manager • Explained that unforeseen cost to projects is why the City needs to maintain a healthy cash reserve. • City Council Miscellaneous Projects - $100,000 - can be one project or divided into districts. • Recommendations: review all budget documents, select the City Council miscellaneous projects, and approve the proposed FY 2006/07 Budget, CIP, Fleet Management Plan, Pavement Management Report, and Pier Report. Page 3 - Budget Workshop 06 -05 -06 • Formal adoption of documents at the June 26th Council meeting. With no objections Mayor Larson recessed the workshop at 6:00 p.m. and reconvened at 6:15 p.m. Public Comments • Dr. Robert Goldberg, Seal Beach, said he sent the Council a 6 page document covering his thoughts regarding the proposed budget - went over each point in his document stressing the need to fund as many of the unfunded projects as possible using the undesignated reserve funds - would hope that the Council would take into consideration his recommendations. • Mr. John Kittlaus, Seal Beach, said that he was glad to see the pier report and would like to see the City pave the decking with asphalt. • Ms. Anne Seifert, Seal Beach, requested that the Council give more attention to the sidewalks citywide - feels there are too many areas where people trip over the uneven sidewalks. • Ms. Seretta Fielding, Seal Beach, wanted the Council to consider the property on 12th Street and changing the use of that location - look at the unused area of the baseball field - sell off as residential use - hold off spending money on removing Under the Rainbow building - look at other City properties for relocating the preschool. • Mr. Pat Kearns, Seal Beach, expressed his concern that more time is needed to review the budget and need to look at the map of elevations of the streets around 14th Street and Ocean Avenue. • Mr. Vic Grgas, 15th Street, said he was a former councilmember and complimented the staff on a well prepared budget - agreed with speaker that the Council should spend some the reserves to fund more projects. There being no other speakers, Mayor Larson closed Public Comments. COUNCIL COMMENTS • Zoeter property was purchased for the purpose of green space - leave the baseball field as is - Girl Scout House was given to City and can only be used for girl scouts or will be reverted back to the family. • Shelf ready plans for future unfunded projects - can make better plans when they become available. • Requested staff to provide Council with documents to clarify Net Margin Analysis - list of core expenses remove CIP monies - review the list of Capital Improvement Projects to prioritize. • Need to allocate more money for sidewalk repair and maintenance. • Utility User Tax was highest source of revenue now it is sales tax - response: the former budgets were too conservative now it is more realistic. • There is a need for co -op day care citywide - unfunded PERS requirements need to be clarified - review the $100,000 list of miscellaneous recommendations. • City Manager explained that unfunded liabilities are complicated - PERS will be providing some assistance to City to help them try and make some sense of the issue. • Unfunded liabilities are a political hot topic - not all employees will be retiring at once - the City is not going broke. • Do not spend all the money just because we have money - there are unexpected expenses that come up - set list of priorities. • Need to spend conservatively because State is not reliable for funding. ADJOURNMENT It was the order of the Chair, with consent of the Council, to adjourn the meeting to Tuesday, June 6th, 2006 at 5:00 p.m. to continue the budget workshop. By unanimous consent the meeting was adjourned at 7:15 p.m. Page 4 - Budget Workshop 06 -05 -06 Mayor City Clerk THESE ARE TENTATIVE MINUTES ONLY, SUBJECT TO THE APPROVAL OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH. Council Minutes Approved: Seal Beach, California June 6, 2006 The City Council of the City of Seal Beach met in regular adjourned session at 5:05 p.m. with Mayor Larson calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Larson Councilmembers Levitt, Shanks, Ybaben Councilman Antos arrived at 5:11 p.m. Also present: Mr. Bahorski, City Manager Ms. Yostuya, Assistant City Manager Mr. Whittenberg, Director of Development Services Mr. Vukojevic, Director of Public Works /City Engineer Mr. Crumby, Deputy City Engineer Mr. Evanoff, Director of Administrative Services Ms. Gonzalez, Administrative Services Manager Mr. Duenas, IT /Quecore Chief Kirkpatrick, Police Department Lieutenant Olson, Police Department Captain Bailey, Lifeguard Department Ms. Chapanond, Administrative Assistant Mrs. Devine, City Clerk BUDGET WORKSHOP PUBLIC COMMENTS There were no speakers. STAFF COMMENTS The City Manager responded to some of the issues brought up at the Budget Workshop session on June 5th: • Council received an updated hand -out showing the Adjusted Undesignated Fund Balance, a chart of Revenues vs. Net Operating Expenditures, Net Margin Analysis, list of High Priority Capital Improvement Projects (CIP), and list of Unfunded Priority Capital Projects. • One of the increases was an additional $50,000 - Project No. 50181 FY 06/07 Annual Concrete Rehab for additional sidewalk repair. • Staff would need direction from Council as to how they wanted to designate the funds ($100,000) for Miscellaneous Projects - for one citywide project or divide it per District. COUNCIL COMMENTS /DELIBERATION • City Manager clarified what the next steps for the Zoeter school site would be - Park and Recreation Commission will be looking at the short term and long term use of the site - the money will be placed in the budget and public works will prepare the process for plans and specification for bids, etc. then it will go back to the Park and Recreation Commission for consideration and then a recommendation will go to Council - this will probably take place in the Spring - Sun `N Fun preschool will be closed for the summer and demolition can take place then. • Concern was stated that funds for sidewalk/tree repair were only being used in the high traffic area in Old Town /Main Street area - other areas of the City are in need of attention. Response: additional $50,000 was added to the budget (this will be an additional 250 locations) - there is a 50/50 program with residents. • Council should review the High Priority CIP list and give staff feedback and should be able to move projects from the unfunded list to the funded Page 2 - Budget Workshop 06 -06 -06 priority list - it was noted that if all the projects were funded the City would not have enough staff to do the work. • Clarification was given on the four unfunded storm drain projects - College Park East - 300 block of Main Street - Marina Drive and PCH - 14th Street to Seal Beach Boulevard - 2nd Street and San Gabriel Riverbed. These projects will be moved to funded projects in the next budget cycle. • Attention is needed between the two shopping centers — Rossmoor and Target — large dips in the road where the bottom of the cars scrape. Response: would be a major project to dig up asphalt. • Where in the budget would any Seal Beach Beautification projects be funded. Response: depends on the type of beautification projects — medians are funded in streets most other is non - departmental — there are areas that the developers pay for the improvements. Edison underground utilities are about two years from starting and will be a large beautification project to the city. • Need to look at the Seal Beach sign at the entrance of the City is an ugly black scroll — need to look at all the signs — they are dated but might be considered historical. • City parks are marginal — beach, pier, city facilities will always need attention — target funds to storm drains and beautification projects. City Manager stated that if Council approved the priority project listed in the budget and then at mid -year look at the design work and see what storm drain projects may be ready to advance — beautification projects will also come back to see what can be done. City Council Miscellaneous Projects List: • District Five: Pre - emption of signal lights — if Measure M passes there would be some funds to do certain intersections; plan check for a back gate by Beverly Manor and waste of money to slurry the road; definitely would like to see the Seal Beach Boulevard sidewalk at Beverly Manor and Golden Rain. • District Four: No additional funds are needed for Bluebell Park or the tennis center wall stucco; not certain that funds should be used for Heather park tennis courts. Would like to see the landscaping at the entrances at Lampson Avenue. • District Three: Median landscaping at Seal Beach Boulevard and Westminster Avenue — triangle asphalt area; cost would include irrigation; Sanitation District has been contacted concerning the exposed pump station; Bolsa parkway not sure what that will do and can hold off with that project, would like to see it continue down to Seal Beach Boulevard; Gum Grove park needs a lot of money but would like to see a new sign and the parking lot overlay. *Question regarding Local Coastal Plan — City Manager stated that it was a matter of priorities — Council can direct the City Manager and the Director of Development Services to get the Zoning Code and Local Coastal Plan done — there have been other projects that were placed ahead of this. With consensus of the Council this will be placed on the next Council Agenda. • District Two: Would like to have the Edison Park sign and asphalt of the Beverly Manor trail extension. • District One: Seal Way street stub overlay is not necessary; catch basin is part of the storm drain project and would prefer that project over the Eisenhower Park landscaping project. Final Council Comments: • Comment regarding the Net Margin Analysis was over staffing and should be managed — general practice policy should be that there is a set amount that it can increase — need to hold the current staff level — should rent the manpower instead of hiring permanent employee — everyone should Page 3 - Budget Workshop 06 -06 -06 understand that the Council will only commit a designated amount during negotiations. Should consider giving back some of the tax money in the utility tax if we collect too much money in the undesignated fund. No consensus — future items for discussion. • Can Council set guidelines or recommendations for negotiations — City Manager responded by stating that Council does give parameters for compensation and the key is to control the number of staff. • Requested that staff give a breakdown how negotiated monies would affect the overall budget — core operation expense. • Different philosophies and evaluate all the needs — need to balance the staffing and the service to the community — more than one issue to consider and the level of service. ADJOURNMENT It was the order of the Chair, with consent of the Council, to adjourn the meeting until June 26th, 2006 at 6:30 p.m. to meet in Closed Session if deemed necessary. By unanimous consent the meeting was adjourned at 6:13 p.m. Mayor City Clerk Seal Beach, California June 12, 2006 The regularly scheduled meeting of the City Council for this date was canceled by action of City Council on May 22, 2006. City Clerk and ex- officio clerk Of the City of Seal Beach THESE ARE TENTATIVE MINUTES ONLY, SUBJECT TO THE APPROVAL OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH. Council Minutes Approved: