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HomeMy WebLinkAboutCC Min 1987-05-18 5-18-B7 Seal Beach, California May 18. 1987 The City Council of the City of Seal Beach met in regular adjourned session at 7:04 p.m. with Mayor Clift calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Clift Councilmembers Grgas, Hunt, Risner, Wilson I Absent: None Also present: Mr. Nelson, City Manager Mr. Stepanicich, City-Attorney Mr. Rennett, Assistant City Attorney Mr. Joseph,.Assistant.City Manager Chief Picascia, Police Department Mrs. Yeo, City Clerk Mayor Clift requested a moment of silence in dedication to the .crew of the USS Stark who were killed or-wounded in an unprovoked attack on that ship in the Persian Gulf this date. WAIVER OF .FULL .READING Wilson moved, second by-Grgas, to waive the 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. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried I DISCUSSION - PIER RESTAURANT LEASE The City Manager noted .that discussion.of the pier restaurant lease was continued -from the May 11th meeting. He reported Council had been-provided a copy.of a letter received from Mr. Hal Griffith -in response to the Council discussion and .proposed revisions of the draft lease, also two letters from the State Coastal Conservancy, one requesting a copy of the proposed lease, the other . responding that it does not-appear that the lease-as proposed would be consistent with terms and conditions of the agreement between-the City and the Conservancy, and urging that the City take no.action or make any legal commitment for -lease of the pier restaurant-pending their review of the restaurant proposal and a meeting with City staff. He also reported receipt of a communication from Mr. Glen Dulac, Seal Beach Insurance, recommending that -a.liquor liability coverage be required, a letter .from -Tom-Lorch and Brian Rice of San Clemente indicating their concerns with the lease proposal, a communication from the State Wildlife Conservation Board requesting an opportunity to.discuss the lease provisions with City staff, and he noted that a. representative of that agency was present at this meeting. Mr. Nelson reviewed his memorandum dated May 15th proposing alternatives for Council consideration: 1) the basic concept for the restaurant operation at the end of the pier~ 2) if there is majority dissatisfaction with the current concept, that .the Council reject the HEG pr.oposal~ -3) if there is - . - . majority -satisfaction .with the current basic concept however there remains dissatisfaction-with the terms of the draft lease, Council consider and act upon HEG's position as I 5-18-87 I represented in the letter from Mr. Griffith, the staff not recommending further negotiations be conducted, nor that Council attempt to draft the terms of the lease, and any action to approve be subject to review and approval by the Department of Fish and Game and the Coastal Conservancy~ and 4) should the HEG proposal be rejected, staff be authorized to retain the assistance of a qualified leasing agent to prepare a new lease for presentation to Council and the interested State agencies, and that staff would then initiate Council's current direction to negotiate with Ruby's Diner unless otherwise directed. The City Manager explained that over the past months the staff had felt they were negotiating pursuant to the concept and direction of the Council, noting that the staff has no preference as to the tenant or operator of the restaurant, only that the Council provide clear.direction under which the staff can carry out those directions. At the request of Mayor Clift and consent of the Council, Councilmember-Risner read her May 7th communication addressed to the City Council requesting a discussion to re- evaluate the viability of the pier restaurant concept and its compatibility with existing pier use, a discussion which she stated is supported by many members of the community, as well as having been a suggestion of the City Attorney at the April 27th meeting. Mrs. Risner stated that the City has more than formalized.a long standing, historical policy for use of and business operations on the pier, that policy backed by the Land Use .and Recreation Elements of the General Plan as .well .as the Local Coastal .P~og~am. . She again-referred to the 1983 consultant ~eport ~ecommending that the placement of a fish restaurant on the pier be no further than mid-pier, the Downtown Task Force recommending against such restaurant mid-pier, and referred to provisions of the .Coastal Conservancy and Fish and Game ag~eements calling for a low to mode~ate cost restaurant to serve those using the pier, also for the retention of the pier for fishing purposes, noting that all responses to the RFQ for the pier restaurant, with the exception of Mr. Griffith's proposal, were directed to the facility as it p~esently exists. Mrs. -Risner noted for the record the communications she had received from San Clemente residents Mr. Lo~ch and Mr. Rice, and f~om Mrs. Gayle Knapp of Seal Beach requesting the Council commence negotiations with Ruby's for operation of the pier restaurant at the earliest possible date. Mayor Clift presented his statement with regard to the pier restaurant lease issue, pointing out that it is his customary practice to seek the views of constituents.as well as other interested citizens on issues befo~e the Council, and based upon such input he had supported negotiations with HEG Enterprises for a full service restaurant with flexible dining capabilities on .the pier whiCh, he stated, he also felt was the adopted concept. -Mayor Clift noted the degree of.public input and concerns expressed during recent .weeks with regard .to the HEG proposal and terms of the lease, which have resulted in renegotiation with the potential operator to affect numerous changes and .modifications that are to the benefit of the City and its .residents. ,He stated that upon hearing the objections .directed to the Council to the full service restaurant proposed, he had conducted a quick survey of College Park residents and based upon.the results of same, he felt he would be justified in continuing to support the full service restaurant concept. Mayor Clift explained however, that he felt it equally important to take into consideration the concerns of .the citizens in the area most affected, -the~efore he would ~equest-that -the Council abandon the concept of the full service restaurant, pursue I I 5-IB-B7 negotiations under the concept of a more modest sit-down restaurant serving breakfast, lunch and dinner with take-out service, and authorize the retention of a qualified leasing agent to prepare a new lease, incorporating the terms and conditions that have been brought forward du~ing the recent discussions, the new lease to be presented to the Council, the Department of Fish and Game and the Coastal Conservancy for review, subsequently Requests for Proposals may be sought at the earliest possible date. Councilman Hunt expressed-his disagreement with starting the process over since-the City and the Council has to date systematically, logically, and legally gone through the procedure to select and negotiate for the pier restaurant tenant/operator,.noting also that although there may.be some concerns on .the part of the Department of Fish and Game, those concerns have not yet been clearly -defined. He pointed out that .although -both candidates were well qualified to ope~ate the restau~ant, a prime concern in -the selection process had been economics, and that at one point the concept had been discussed. Mr. Hunt also noted that the reasonable conce~ns expressed by the public have been taken into consideration, many of which.have.been responded to by Mr. Griffith. He exp~essed.his support.for proceeding with this matter in an orderly manner, approve or disapprove the proposal of Mr. Griffith, and should.such action be to disapprove, his position would be -to move-fo~ward, in a businesslike manner, with the second- selection for the restaurant operator. Mrs. Wilson advised that she, as a member of the Council, has p~imarily looked.toward,fiscal responsibility -for the entire City, that she had .supported the selection,of HEG Enterprises to .operate.the. restaurant as she felt that their. potential for success -and..financial return to the City -was the g~eater.of the -two. operators-. .. selected. She noted that. .the. -lease . ~equires. .that the tenant obtain.the.necessary-approvals and .pe~mits f~om other governmental .agencles.to.make -improvements.to the premises, otherwise the lease may be-terminated.by..the.City, also that the dinnerhouse.would not change.the.accessibility,or use.of the pier .by fishermen or the. casual.pie~.visitor,.and that the proposed operation is .compatible with comparable,- restaurants throughout the..beach -areas. Councilmember -. Wilson again stated her preference.for,a-quality-restaurant at the end.of the pier, a .preference supported..by a large number of her constituents,.a .facility that would enhance. and provide.a.service to the entire community and the--best revenue return .to the -City.--. Councilmember .Wilson -concluded however .that should the. proposed.~estaurant not conform to conditions of -agreements with other agencies she would concede her position. I I Councilman .Grgas--acknowledged.the-comments .made .by -members of the-Council, specifically noting-negative .remarks. directed.to -the.staff regarding negotiation of. the lease, and-explained that .the staff,had.~eceived-their direction from-,the Counci-l -as to .who they were to .negotiate with and the-general terms of .the-Iease. M~. Grgas stated that should-the- Council..determine to disapprove.Mr. Griffith's proposal for -the. .restaurant, he would not - be -greatly I concerned whether.. -Council d-irected .negotiations -with the alternate ope~ato~ .or.if anothe~ Request- for.Proposal .were the -choice, however ~eiterated his. -concern that Ruby's Diner, as- .he .has .observed that .operation on the -Balboa Pier, may-be a ,gathering place, .which would-be.undesirable.. With ~egard . to- any lease .of .the pier restaurant -that--may be. . negotiated and conside~ed for.approval, Councilman Grgas advised- he-would- strongly-urge that the. conditions and- concerns that have been raised be included in that lease 5-18-87 I agreement: 1) term should be five years~ 2) no transfer of interest without City Council approval~ 3) sublease profits to the City rather than the sublessee~ 4) minimum rent of $38,000 per year~ 5) six percent of food sales, seven percent of beer and wine sales~ 6) a late charge provision for rental payments~ 7) total building and.fixture maintenance by the tenant~ 8) no exclusivity in terms of area~ 9) annual Consumer Price Index adjustment~ 10) no hard liquor~ 11) an expanded menu to be approved by the City Council~ 12) limited hours, 10:00 p.m. closing in the summer, 8:00 or 9:00 p.m. closing in the winte~~ 13) tenant maintenance of the public restrooms~ 14) no entertainment or television allowed~ 15) public nuisance/noise abatement protection; 16) observation of se~vices by City with provision.for terminating of the operation~ 17) consideration of a public or common area charge for pier maintenance~ and 18) no parking revenue loss .as a result of the activities. After brief.discussion, .Risner moved, second by Grgas, to reject the concept of an up-scale dinnerhouse restaurant at the end of the municipal pier, and approve the concept of a more casual, full service restaurant facility serving breakfast, lunch and dinner, and no hard liquor sales. The City Attorney recommended that an appropriate motion would be to reject the restaurant proposal as submitted to the City Council. The motion was withdrawn by Councilmember Risner with consent of the second. I Risner .moved, second by G~gas, .to reject the proposal of .HEG Enterprises .as submitted .to the City Council. Councilmember Wilson advised that-her support of the motion-would be based solely upon the proposal's non-conformance with-existing agreements. Councilman Hunt. stated -he would vote in opposition to the motion, explaining that he was not - completely satisfied with the contract as written, however he felt that the issues remaining were resolvable. AYES: NOES: Clift, Grgas, Risner, Wilson Hunt Motion carried Mayo~ Clift-moved,to authorize -the.retention of a leasing agent .to prepare a new.lease .document, finite in detail, addressing a modest, full service.~estaurant with a restriction for the service of beer and wine, -for presentation to -the.City.Council, Department of Fish and Game, and-the .Coastal Conservancy, afterwhich the staff would initiate Requests for Proposals .from anyone interested. Councilmember Wilson seconded the motion. I Councilmember Risner stated she would oppose the motion, citing possible conflicts with -State leases, and the obligation -of the Council .to negotiate with Ruby's as the alternative choice for the operator of the pier restaurant. Councilman Hunt agreed-and supported negotiation -with Ruby's, suggesting that the Council adhere to their objectives and now take positive steps, -he .also voiced .his objection..to retaining a consultant,. citing the experience and expertise of the City staff. Councilman Grgas cautioned that .unless the Council were to support the-terms he had proposed -as firm conditions, Ruby's would have a .distinct advantage in negotiating a lease, also unless those conditions are made -part of the lease he would.vote in -its opposition. Mr. Grgas suggested that .an alte~native would be to authorize the-staff to negotiate with -Ruby\s,-that the negotiations be completed within thirty days,.othe~wise the City would seek Requests for Proposals. Councilmember 5-18-B7 Risner objected to a m~n~mum rent of $38,000, suggesting that $30,ooO.would be reasonable, with an increase considered in future years. Discussion followed. Vote on the motion to retain a leasing agent, prepare a new lease document, and seek RFP's: AYES: NOES: None Clift, Grgas, Hunt, Risner, Wilson Motion failed I Councilman G~gas moved to direct the .staff to retain the services of a leasing agent for a-period not to exceed thirty days, enter into negotiations with Ruby's, that the lease.be brought to the Council within thirty days, and that conditions previously stated be adopted as acceptable terms of the lease. Mayor Clift seconded the motion. Councilmember -Risner stated she could not support all of the terms of the motion, that she did not feel negotiations could be completed within thirty days, nor was .it necessary to hire a leasing agent. Councilman Hunt again voiced his objection to -retaining a consultant, .speaking in support of staff's expertise and the cost saving to -the community. In response to Council, the City Manager advised that-it may not be possible to complete negotiations and submit.a new lease document within thi~ty.days.. Councilman Grgas suggested that if that situation occurred, .a status report from staff would be in order within the time frame stated. After further -discussion,.the specific pOints of the original motion were restated as follows: Grgas moved, second by Clift, to authorize the staff to retain the .services of a-leasing agent for-a period.not to exceed thirty days, and to enter into negotiations with Ruby's. I AYES: NOES: Clift, Grgas, Risner, Wilson Hunt Motion carried Councilman Grgas .moved that the lease be presented with all of the terms previously set forth .as -a.matter-of record, that the lease be presented to.the Council.within thirty days, .and if not completed within-that time period, that it be-presented-to.Council -with a status report of negotiations for consideration. Mayor Clift seconded the motion. At the.request of-Council,-Mr. G~gas restated-the conditions previously p~esented. Discussion followed regarding the stated conditions,. specifically the.minimum rent, and percentage.of -sales, .as well as.no .p~ovision for.storage, the Coastal Conservancy loan ~epayment and the -source .of funds for that-payment, and the potential.use-of excess revenues for beach and pier related improvements. Mr. Al Rutsch, representative of the State Department of Fish.and Game,-addressed the Council on -behalf of their agency having.an interest in the .Seal.Beach pier. - With. I regard to expenditure of revenues generated from the pier, Mr. .Rutsch advised their interest would .be in revenues generated from concessions that.are .operated by agreement with a third.party, those revenues requi~ed to be placed in a special -fund, identified as .pier revenues,. and spent for- pier pu~poses. - .Mr. .Rutsch .described the project aI.'ea -as set forth in the agI.'eement as the land area.from-the-neaI.'est City street, then-southwesteI.'ly outlining .the.configuration of the pier, including the beach area under the pier, 5-18-87 I excluding the parking lot areas, the agreement also containing certain language that protects the pier fishing areas. In response to a question regarding sand replenishment, Mr. Rutsch responded that if the sand replenishment were determined to be necessary for the pier's protection that would most likely be considered an expenditure for pier purposes, however explained that although beach regeneration is not a part of the Wildlife Conservation Board program, it may be foreseeable that a liberal interpretation could be expected if it were determined to be of any benefit to the pier. Mr. Rutsch commended the Council's action to readjust their position regarding the lease that had been under consideration. Vote on the motion, including the lease conditions as restated: AYES: NOES: Clift, Grgas, Risner, Wilson Hunt Motion carried Wilson moved, second by Hunt, -to afford Mr. Hal Griffith the opportunity to address the Council. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried I Mr. Griffith expressed his disappointment with the resulting actions ~egarding his proposal. He stated he felt there was a great mis~epresentation of this ~estaurant from the - standpoint of casual versus an upgrade facility, advising that his restaurant is casual-and would-be very compatible with the pier. Mr. -Griffith advised that if the City is to negotiate -with-another party, that the Council take into conseration the type of -restaurant being negotiated, and understand -that that restaurant may-very well be in a more capable position to -pay-rent and the benefits that the City is asking. He stated he would have liked to recommend to the Council that the RFP process be pursued, as he felt there would be more interest in-the menu being proposed versus his menu, the potential tenant utilizing a -building that is already-built, and whe~e the~e is no request for investment o~ imp~ovements by -the operator-the five year term would-be-appropriate, advising also that the-~ent then becomes a -totally -new consideration, in fact -the percentage level -suggested would -be considered-to be too low. He again recommended the-RFP process -that -would permit competative proposals, a potential -fo~ much greater return to the City, and possibly a-bette~ operation. Mr. Griffith-refe~red to his proposal which went far beyond most proposals submitted, stating that -in his -opinion, that-is what the City should be seeking, an-ope~ator -who will do the best job and make the greatest-investment -on the pier and in the community. Mayor Clift -conveyed appreciation to Mr. Griffith for his efforts and conside~ations during the negotiation process for the pier restaurant. I By unanimous consent, the Council recessed at 8:43 p.m. The Council reconvened at 9:04 p.m. with Mayor Clift calling the meeting to order. CITY COUNCIL MEETLNG~AYS Councilman G~gas reported he had submitted a request to the Council to conside~ a change of City Council ,meeting days due a conflict of-meeting times that has resulted from his recent appointment as Assistant City-Administrator for the City of-Montebello. --He noted-that it-has -been-determined that the first and thi~d Monday-of -each month would not - conflict with City Board and Commission meetings, however 5-l8-B7 the Los Alamitos School District meets on those days, therefore he would request consideration of the first and third Tuesday of each month. Hunt moved, second by Wilson, to change the ~egular City Council meetings to the first and third Tuesday of each month. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried DEPARTMENT OF- WATER-and-POWER ADVISORY COMMITTEE - VACANCY I Councilman Grgas moved to declare a -vacancy on the, Department of Water -and Power Advisory Committee due -to-the absence of the District -One appointee from recent -meetings of that Committee. Mayor Clift seconded the motion. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson-- None Motion carried CITY COUNCIL ITEMS Councilman-G~gas refe~red to recent oil spills resulting from offshore oil ope~ations, and although cleanup was accomplished in a timely manner, expressed his -conce~n with the potential for future incidents. He recalled previous requests for the Council to take a position -regarding offshore-drilling, and -requested that the Council keep the recent occurrences in mind until -there are adequate assu~ances that protective environmental procedures are in place. ORAL COMMUNICATIONS - - - -- Mayor Clift declared O~al Communications -open. Mr. John SChafer, Dolphin-Avenue, commended the Council's action to di~ect negotiation-of-a new restaurant lease, requested no further development be considered on the -pie~ for -at least I ten to fifteen -years, -however -if the operator -p~oves to -do a good job, in the future he should be allowed the opportunity for increased economic gain, which could also increase the return to the City. Ch~istophe~ Marra, -1009-1/2 Seal Way, spoke ~egarding the recent oil spill, stating he had been informed there-has been oil in the water for a -period of time, alleged-that the-environment is worsening and that the waters-flowing downstrceam in the Channel from indust~ial- areas -are-not being monitored. -Beverly Casaras, Ma~vista Avenue, expressed apprecation to the -Council .for the actions taken with regard to the-pier ~estaurant lease. Barbara Antocci, 1502 Ocean-Avenue, asked if -Exxon-would-be ~eplacing the-sand that had been removed-due to the oil spill, and inquired about payment for the Supe~visorial breakfast that had been held at the pier restau~ant, catered by Mr. -Griffith. Mayor -Clift explained that the City had requested the billing for the services provided-by Mr. Griffith-for that occasion, and although HEG-Enterprises advised that ,a bill had been -sent, the City had never received same, he ,also advised he was recently informed that other providers for those services had not been contacted as he had first understood. Mrs. Nancy Kredell, 1615 Seal Way, submitted petitions in support of a-family style eating facility at the end of -the pier signed by approximately nine I hundred sixty-five persons, then conveyed appreciation for the actions taken by the Council at this meeting relating to the pier restaurant. Mr. James Goodwin, 1405 C~estview, expressed his app~eciation-for the-Council~s actions, -and further, -asked that the Council, at a future date, again- give consideration to supporting the oceanic park concept. There being no fu~ther -communications, Mayor Clift declared Oral Communications closed. 5-IB-87 / 5-19-87 CLOSED SESSION The City Manager advised that th~ Closed Session would be held the following day, after the departmental workshop, to discussion employee negotiation matters. I ADJOURNMENT By unanimous consent, the Council adjourned the meeting until Tuesday, May 19th at 10:00 a.m. for a departmental workshop. The meeting was adjourned at 9:24 p.m. by unanimous consent of the Council. Approved: Attest: I Seal Beach, California May 19, 1987 The City Council of the City of Seal Beach met in regular adjourned session at 10:08 a.m. with Mayor Clift calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Clift Councilmembers Hunt, Wilson Absent: Councilmembers Grgas, Risner Also present: Mr. Nelson, City Manager Mr. Rudell, Assistant City Attorney Mr. Joseph, Assistant City Manager Mr. Hemphill, Director of Public Works/ City Engineer M~. Knight, Director of Development Services Mrs. Yeo, City Clerk DEPARTMENTAL WORKSHOP I Public Works/Enqineerinq Depa~tment Mr. Hemphill commenced his review of the functions -and responsibilities of the Public Works/Engineering Departments with the public beach area. He pointed out that the westerly beach maintains adequate sand, however -the east beach, which is subject to erosion and storm damage, lacks of sand, and annually approximately $30,000 is spent to transport sand from the west to the east beach area, noting that a million dollars worth of sand, extension of the groin at an estimated cost of $600,000, and approximately -$175,000 fo~ -repai~-of -the existing groin, would serve to resolve the ongoing erosion problems of the east beach. He advised that to his knowledge, contact has been made with all agencies