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HomeMy WebLinkAboutCC Min 1983-08-08 8-8-83 Seal Beach, California August 8, 1983 The City Council of the City of Seal Beach met in regular session at 7:04 p.m. with Mayor Grgas calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Grgas Councilmembers Brownell, Risner, Vanderstaay I Absent: Councilmember Laszlo Also present: Mr. Parker, City Manager Mr. Stepanicich, City Attorney Mr. Joseph, Assistant City Manager Mr. Johnson, Director of Public Works/ City Engineer Mr. Antos, Principal Planner Mrs. Yeo, City Clerk WAIVER OF FULL READING Vanderstaay moved, second by Brownell, 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: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried I PRESENTATIONS Mayor Grgas presented City plaques to Howard Roberts of the Public Works Department and Wayne McManigal of the Police Department for twenty years of dedicated service to the City. The Mayor and members of the Council conveyed appreciation and congratulations to Messrs. Roberts and McManigal. PROCLAMATION Mayor Grgas proclaimed the week of August 7 through August 13, 1983 as "Municipal Treasurer's Week". AGENDA AMENDED Brownell moved, second by Vanderstaay, to amend the agenda to consider Item "J" out of order at this time. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried ITEM "J" - RESOLUTION NUMBER 3300 - COMMENDING MEMBERS OF LIFEGUARD DEPARTMENT I Resolution Number 3300 was presented to Council and read in full by Mayor Grgas entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, HONORING AND COMMENDING MEMBERS OF THE SEAL BEACH LIFEGUARD DEPARTMENT FOR THEIR EFFORTS IN CONSTRUCTING THE THREE-STORY OBSERVATION TOWER." Risner moved, second by Vanderstaay, to adopt Resolution Number 3300 as presented. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried 8-8-83 I Mayor Grgas presented individual copies of the Resolution to Carver Curtis, Daniel Dorsey, Timothy Dorsey, Steve Cushman, Daniel Mills and Timothy Seymour. The Mayor and Council expressed appreciation to the lifeguards for their contribution to this project and to the community. Councilmember Risner requested that a resolution be prepared recognizing other citizens of the community who volunteered their services to this project. PUBLIC HEARING - OIL BARREL TAX/BASE FEE/PERMIT FEE Mayor Grgas declared the public hearing open to consider increasing the oil barrel tax and establishing a base tax and an annual oil permit well fee. The City Clerk certified that notice of public hearing had been published as required by law and that no communications had been received either for or against this matter. The Assistant City Manager presented the staff report, explaining that the City's present per barrel tax of twelve cents has been in effect since 1979 with no provision for automatic adjustment, and no established annual well permit fee or base fee. Mr. Joseph stated that the proposed ordinance is patterned after an ordinance presently being considered by the City of Signal Hill and explained the proposed oil barrel tax computation as set forth in the ordinance through and subsequent to year 1992, noting the proposed base price of twelve and one-half cents per barrel. Mr. Joseph stated further that the staff recommendation had been revised to reflect barrel tax increases/decreases based upon the producer's price index rather than the posted price of oil. I Mayor Grgas invited members of the audience wishing to speak to this matter to come to the microphone and state their name and address for the record and be sworn by the Clerk if desired. Mr. Jim McCutcheon, Manager, Tax and Statistics, Western Oil and Gas Association, 727 West 7th Street, Los Angeles, was duly sworn by the Clerk, and in response to Council, explained that the posted price of oil is the price that a buyer is willing to pay for certain types or grades of crude, and that the producer's price is the amount that is actually paid for the oil based upon certain factors such as gravity and water content. Mr. McCutcheon stated he was speaking on behalf of member companies with production in Seal Beach except for the Hellman producers, and wished to present opposition to the proposed oil barrel tax increase. He stated that the oil industry was not seeking special tax advantages, merely tax equity, and noted that Seal Beach would have one of the highest oil industry fee requirements in the State should the proposed ordinance be approved. Mr. McCutcheon stated he felt the increase could have a negative impact on the City by: I) reducing income of Seal Beach royalty owners; and 2) causing a shut down of marginal oil wells, pools and fields therefore reducing long range revenues to the City. Mr. McCutcheon suggested that budgeting and taxation should be reviewed annually with taxes levied equitably to all taxpayers to meet the needs of the community. Mr. McCutcheon continued, stating that the oil industry is the most heavily taxed industry in the United States and that the belief by many that the industry is reaping large profits and is undertaxed is incorrect. Mr. McCutcheon stated that profitability is falling drastically, citing significant increases in federal, state and local taxes, the windfall profits tax, and utility costs, and noted that oil industry investment in exploration depends heavily on after-tax earnings which could be jeopardized by further I 8-8-83 increased taxation. Mr. McCutcheon noted that the proposed ordinance is based upon the assumption that the windfall profits tax will be phased out, which mayor may not occur or may be imposed by new legislation. Mr. McCutcheon again expressed opposition to an increase of the oil barrel tax as proposed, and provided written copies of their position to the City Clerk. Ms. Margo Bart, Chevron U.S.A., P. O. Box 606, La Habra, was sworn by the City Clerk as 1 requested. Ms. Bart stated that Chevron does not currently have active production in the City of Seal Beach, therefore the proposed increase would not immediately impact their company and until such time as Chevron management determines whether or not to reactivate their production on Island Esther. Ms. Bart stated, however, that she wished to use the operation that Chevron had in Seal Beach in an attempt to discourage the barrel tax increase as proposed. Using Island Esther as the example, Ms. Bart provided graphs to illustrate production, taxes and operational costs at the time the Island's operation ceased in January 1983. Ms. Bart explained in detail the reduction of profits from the original per barrel value of crude by each of the taxes and operational costs to the oil producer. More specifically, Ms. Bart stated that the value per barrel of crude was $26.22 in January 1983 and that the end profit figure at that time was $2.25 per barrel. She also cited high operating costs in Seal Beach due to corrosion problems and repairs related thereto. Ms. Bart reported that for the year ended November 31, 1982, Chevron had produced 700,000 barrels of crude and at twelve cents per barrel, Chevron paid more than $83,000 to the City of Seal Beach in oil barrel tax, as well as the Utility Users Tax and property taxes, and continued by comparing the taxes paid by the oil producers in Seal Beach to other business I activities. Ms. Bart expressed objection to imposing a barrel tax based on the posted price, producer's price, sales or crude value, and recommended that the flat per barrel fee be continued, noting that the City will incur greatly increased administrative/bookkeeping costs should a method other than the flat per barrel fee be approved. Ms. Bart referred to provisions of the State Natural Resources Code that requires prOduction activities to be timely and accurately filed, and the availability of that information to the City from the State Department of Oil and Gas. She also suggested that consideration be given to an exemption provision for a specified number of barrels. Ms. Bart proposed that if the City would maintain the current twelve cents per barrel rate, Chevron would not oppose the $150 base fee nor the $30 permit fee for producing wells. Councilmember Brownell inquired if corrosion problems would be less if the oil were produced from a land site rather than from the ocean floor. Mr. Ray Lister, Chevron Area Engineer, 20031 Golden West Street, Huntington Beach, was sworn by the City Clerk, and explained that with regard to the corrosion problem, a certain amount occurs in all fields and is common when prOducing with water, noting however that some reservoirs contain more bacteria than others. Mr. Lister did confirm that offshore production I is between thirty to fifty percent higher, partly due to insurance requirements of the State Division of Oil and . Gas. Mr. Lister explained that Island Esther's production was from the Belmont Field which is the southerly extension of the Wilmington Field. In response to Council, the City Manager stated that approximately forty percent of Seal Beach oil production is from offshore facilities. Councilmember Risner asked if each well is equipped with a measuring device and if oil production is measured at 8-8-83 I the point of production. Ms. Bart responded that Chevron has a permanent device on each well for periodic production measurements, and that the results of the test production is then reported to the Division of Oil and Gas. She also responded that each well is not continuously measured. With regard to exemptions, Mr. McCutcheon reported that at one time almost all cities had a provision for exemption, and about twelve years ago exemptions were abolished in an attempt to eliminate wells. He stated however, that today every well with any potential production value should be retained, noting that should a well be abandoned, increased drilling costs do not always make redrills economically feasible. For clarification, the City Manager stated that Seal Beach's share of the $300,000 property taxes reportedly paid by Chevron and referred to by Ms. Bart, would be approximately $20,000. 1 Mr. Bruce Kerr, Shell California Development Corportion, 3230 East Hill Street, Long Beach, was sworn by the City Clerk as requested, and expressed concern as the central unit operator in the City of Signal Hill, that the City of Seal Beach is considering an ordinance patterned after the proposed Signal Hill ordinance prior to such time as Signal Hill takes final action on an ordinance that may be open to question. Mr. Kerr stated that Shell does not post their prices nor does Texaco, and further stated that the only one of the three major producers referred to by the proposed ordinance that posts prices is Arco. Mr. Kerr explained Shell's procedures for establishing prices, transferring crude to the refinery, clarifying that Shell utilizes three different tiers of prices that may change three to four times daily or possibly fifteen to twenty- five different prices within a month. Mr. Kerr also noted that crude purchases are for different grades of crude based upon gravity and temperature, varying from day to day, each at a different price. Mr. Kerr expressed concern with auditing and accounting methods if the per barrel price is based upon the posted or producer's price index. Mr. Kerr also objected to the annual adjustment as proposed in the ordinance, and recommended retention of the flat fee tax. Mr. Elmer Dougherty, twelve year member of the USC Department of Petroleum, expressed his ongoing concern with the economics and general trend to tax the oil industry in the United States and cautioned that the consequences of heavy taxation may result in producers letting wells run down more rapidly without reworking, reducing production therefore revenue to the City, and reluctance to invest in the drilling of new wells. Mr. Dougherty stated that based on the number of uncertainties he wished to express his objection to establishing a formula now to increase the oil barrel tax over the next fifteen years. Mr. Ed Malmgreen, Assistant Vice President, California Independent Producers Association, 12062 Valley View Street, Garden Grove, stated that the Association represents approximately five hundred independent producers, suppliers and service companies state-wide, and expressed the Association's opposition to the proposed tax increase on the oil industry. Mr. Malmgreen also referred to federal, state and local government taxation of the industry, specifically the Seal Beach twelve cent per barrel tax, which he stated was the highest in the local area. Mr. Malmgreen pointed out that the production costs for the independent producer is no different than the large companies, that the independent does not set the price, the buyer does, and that when additional taxes are imposed, they come out of the margin that the independent has to work with. Mr. Malmgreen I 8-8-83 expressed concern with the barrel tax esculation provlslons of the proposed ordinance which may be enacted in the future without public input, and further, the affect any increase will have upon royalty payments. With regard to exemption provisions, Mr. Malmgreen reported that Signal Hill will be considering that matter at a later time, also expressed concern regarding complex record keeping with the price tied to the producer's price index, and recommended a flat I per barrel tax. Mayor Grgas referred to statements regarding fair taxation and based upon Ms. Barts reported eighteen million dollar gross sales, noted that the per barrel tax is less than the retail sales tax in the city. Mayor Grgas suggested that the oil industry's claim of over taxation should be directed to the federal government rather than local government. Councilman Brownell stated that based upon his figures the oil producers are now paying a much lower percentage per barrel than in 1978. Councilmember Risner inquired as to the number of barrels of oil produced in the City annually. Ms. Bart stated that the City's Finance Director had reported to her 191,112 barrels in 1981-82, and in 1982-83 181,073 barrels, the decrease due to down time of Island Esther. Discussion continued regarding the ratio of expenses to profit, percentages of taxation, and the fluctuation of labor and insurance costs in relation to the price of crude. There being no further public comments, Mayor Grgas declared the public hearing closed. The City Council recessed at 8:45 p.m. and reconvened at 8:55 p.m. with the Mayor calling the meeting to order. Discussion continued with each member of the Council expressing their views regarding the method of establishing the per barrel tax, by indexing or by flat fee. Risner moved to establish a flat fee of fourteen (14) cents, implement the base fee of $150 per well and the $30 per well permit fee, and delete all reference in the ordinance to barrel tax increases beyond 1989. There was no second to the motion. Brownell moved, second by Vanderstaay, to establish a base fee of $150 per well and a permit fee of $30 per well. 1 AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried The City Manager suggested that the Council consider establishing the per barrel tax at twelve and one-half cents, to be adjusted annually based upon the producer's price index, and further that the Council set the base per barrel fee at twelve and one-half cents. Brownell moved, second by Vanderstaay, to approve the oil barrel tax as recommended by the City Manager AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried I The City Manager stated that the City Attorney would revise the proposed ordinance to reflect the Council's actions at this time, to be presented for first reading later in the meeting. ORDINANCE NUMBER 1147 - PLANNING COMMISSION MEETING EXPENSE Ordinance Number 1147 was presented to Council for second reading entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE 8-8-83 CITY OF SEAL BEACH, CALIFORNIA, AMENDING CHAPTER 17 OF THE CODE OF THE CITY OF SEAL BEACH REGARDING PLANNING COMMISSION MEETING EXPENSES." By unanimous consent, full reading of Ordinance Number 1147 was waived. Brownell moved, second by Risner, to approve second reading and adopt Ordinance Number 1147 as presented. 1 AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried ORDINANCE NUMBER 1148 - ANIMAL LICENSE FEES Ordinance Number 1148 was presented to Council for second reading entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AMENDING CHAPTER 3, SECTIONS 3-10.7 (a), (b), AND (c) OF THE CODE OF THE CITY OF SEAL BEACH RELATING TO ANIMAL LICENSE FEES." By unanimous consent, full reading of Ordinance Number 1148 was waived. Risner moved, second by Vanderstaay, to approve second reading and adopt Ordinance Number 1148 as presented. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried I ORDINANCE NUMBER llSI - ESTABLISHING LANDSCAPING AND LIGHTING DISTRICT NO. I IMPROVEMENT FUND Ordinance Number IISI was presented to Council for second reading entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH, CALIFORNIA, ESTABLISHING A LANDSCAPING AND LIGHTING DISTRICT NO. I IMPROVEMENT FUND AND ADDING ARTICLE XVIII, SECTION 2-98 TO CHAPTER 2 OF THE CODE OF THE CITY OF SEAL BEACH." By unanimous consent, full reading of Ordinance Number 1lSl was waived. Brownell moved, second by Vanderstaay, to approve second reading and adopt Ordinance Number IISI as presented. Councilmember Risner stated she was voting for adoption of Ordinance Number 1lSl since it is an enabling ordinance only. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried I PROPOSED RESOLUTION - ESTABLISHING ANIMAL CONTROL SERVICE FEES The City Manager stated that the City Attorney had advised that the proposed fees should be established by ordinance, therefore recommended this item be postponed. Councilmember Risner requested that the charge for use of skunk traps apply only to domestic animals and that no fee be charged for traps for wild animals. Chief Picascia explained that the charge was intended to cover the cost of replacing the traps. The Chief also reported that pursuant to a discussion with Councilman Brownell, it may be possible to have traps constructed by certain Leisure World groups at a reduced rate. Council discussed the charge for pick- up and disposal of dead animals with the Police Chief clarifying that the County charges a $IS fee for this service. Risner moved, second by Brownell, to approve the staff recommended fees for animal control services with an amendment to provide skunk traps free of charge for wild animals. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried 8-8-83 ANIMAL CONTROL CONTRACT - LOS ALAMITOS The Police Chief reported that pursuant to Council direction, staff has continued to investigate the feasibility of providing animal control services to the City of Los Alamitos on a contract basis. Chief Picascia explained that Los Alamitos currently contracts with the County of Orange for these services, the County collecting the animal license fees and in turn providing an equal amount of service. I The Chief recommended that any contract for services with Los Alamitos include a contingency clause that would allow Seal Beach to pass on any County fee increases to Los Alamitos. Risner moved, second by Vanderstaay, to authorize the City Manager to contract with Los Alamitos to provide animal control services to that City. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried In response to Council, the Chief explained that Seal Beach will provide animal license services by mailed notice, or from the Police Station or at rabies clinics, and stated further that a campaign will be implemented to inform Los Alamitos residents of the change in service. RESOLUTION NUMBER 3298 - COMPLETION - ZOETER FIELD IRRIGATION SYSTEM - PROJECT NUMBER 524 Resolution Number 3298 was presented to Council 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 #534, ZOETER FIELD IRRIGATION SYSTEM, IN ACCORDANCE WITH A CONTRACT ENTERED INTO BETWEEN ALLIED SPRINKLER COMPANY AND THE CITY OF SEAL BEACH." By unanimous I consent, full reading of Resolution Number 3298 was waived. Brownell moved, second by Vanderstaay, to adopt Resolution Number 3298 as presented. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried PROPOSED RESOLUTION NUMBER 3299 - FUND TRANSFERS The City Manager requested that proposed Resolution Number 3299 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING TEMPORARY CASH TRANSFERS AMONG CITY FUNDS", be held over to next meeting for revision. Risner moved, second by Grgas, to hold this item over as recommended by the City Manager. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried CONSENT CALENDAR - ITEMS "K" THROUGH "P" Councilmember Brownell requested Item "K" removed from the Consent Calendar; Councilmember Risner requested Items "N" and "0" removed; and Mayor Grgas requested Item "p" removed. Risner moved, second by Brownell, to approve the recommended action for items on the Consent Calendar, except Items "K, N, 0 and P," as presented. I L. Approved regular demands numbered 48944 through 49050 in the amount of $2IS,17S.19 and payroll demands numbered S813 through 5989 in the amount of $137,181.3S as approved by the Finance Committee and that warrants be drawn on the Treasury for the same. 8-8-83 M. Approved the request for modification of the Sunset Beach Water Tower conditions, increasing the height by an additional two feet two inches to comply with safety requirements for the elevator. I AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR Item "K" - Minutes Councilman Brownell requested that page 7, 4th line of the July II, 1983 minutes be amended to read "...none of these services to Leisure World". Brownell moved, second by Risner, to approve the minutes of the July II, 1983 regular meeting as amended. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried Brownell moved, second by Vanderstaay, to approve the minutes of the July 25, 1983 regular meeting and the August 1, 1983 special meeting as presented. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried I ITEM "Nil - LOCAL COASTAL PLAN - STATUS REPORT The Principal Planner reported that the Coastal Commission had conducted a public hearing on July 28 to consider the City's Local Coastal Plan and at the conclusion of the hearing the Commission took action to I) deny the City's L.C.P. due to not resolving certain "substantial issues"; and 2) to certify the L.C.P. when suggested modifications are made to it. Mr. Antos explained that the suggested modifications relate to the wetlands on the Hellman property and coastal access to Surfs ide, both of which were opposed .by the City. Mr. Antos also reported that the Hellman Estate have expressed their concern with location of a wetlands in the area of oil production, and with regard to Surfside, the Commission is requiring pedestrian access through Phillips Street. The City Manager stated he expects the Hellman wetlands issue to be resolved within six months, that he could not foresee the outcome of Surfs ide access at this time. Mr. Parker stated that the City Attorney had provided Council with a letter relating to the Coastal Permit for the Surfs ide revetment, reporting that after the public hearing the Commission granted the coastal permit to the City subject to conditions requiring the dedication of both lateral access along both sides of the revetment and vertical access through the Phillips Street entrance to Surfs ide Colony. Discussion continued regarding parking at Surfside, pedestrian access, procedures for development permits should the L.C.P. not be approved, and the possible acquisition of the six acre Navy site adjacent to Surfside. The City Manager reported that Surfside revetment decision is being appealed. Risner moved, second by Brownell, to receive and file the Local Coastal Plan Status Report. I AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried 8-8-83 The City Manager reported that he had just been informed that due to high tides some flooding was occurring at the west end of Surfs ide, along Seal Way and that Pacific Coast Highway from Anderson Street to Warner was closed. ITEM "0" - AGREEMENT - COUNTY OF ORANGE - REVENUE SHARING AGREEMENT - PIER RECONSTRUCTION Councilmember Risner inquired as to the first costs eligible I for County funding. The Director of Public Works stated that the $6141.00 Revenue Sharing Funds, as well as the Harbors, Beaches and Parks funds, are for actual contruction, that the agreement specifies reimbursement for construction and design as a City responsibility, therefore local funds will have to be spent prior to receiving County Funds. Mr. Johnson stated the first eligible costs will more than likely be in Phase 2 of the reconstruction, the pile driving project. Risner moved, second by Brownell, to approve the Revenue Sharing Agreement and authorize the Mayor to execute the agreement on behalf of the City. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried ITEM "P" - PLANS AND SPECIFICATIONS - STORM DAMAGE REPAIR PROJECT - PROJECT NUMBER 535 Mayor Grgas requested that consideration be given to providing electrical outlets on the beach area. The Director of Public works suggested electrical outlets be included in a later portion of the project. Grgas moved, second by Risner, to approve the plans and specifications for construction of the Storm Damage Repair, Project Number 535, and authorize the City Manager to advertise for bids. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried I REPORT - UNDERGROUND UTILITY ADVISORY COMMITTEE The City Manager reported that the City Attorney had advised that the City cannot legally use public funds to pay for underground electrical hook-up charges on private property. Mr. Bill Compton, Edison Company, explained that undergrounding from the main line to the property hook-up is an allowable expense of undergrounding funds under PUC rules and estimated the cost to the individual property owner for the hook- up to be approximately $200. The Council requested that a survey be made of all affected property owners to determine their willingness to assume this cost. The Director of Public Works clarified that the Committee had proposed undergrounding of Pacific Coast Highway from Twelfth Street to Seal Beach Boulevard and on Seal Beach Boulevard between Bolsa Avenue and Electric as the first project, Ocean Avenue from First to Eighth Street as the second project and Pacific Coast Highway from Seal Beach Boulevard to Anderson Street as the third project. Mr. Johnson noted that the underground funds to Seal Beach have been accumulating for several years and if not used will revert to another community. Discussion continued. Risner moved, second by Grgas, to accept the Underground Utility Advisory Committee Report as presented and that the Committee study further the sequence of the underground projects proposed. I AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried 8-8-83 I REPORT - MODIFICATION OF PIER RECONSTRUCTION SCHEDULE The Director of Public Works presented the staff report and recommendation of the City's consulting engineer that the pier reconstruction contract be divided into two phases, the first being the basic structural (pile driving, framing, decking, etc.) and the second being the remainder of , repairs (electrical, water, sewer, lighting, boat landings, railings, etc.). The Director explained that by dividing the project into two phases a reduction in costs is likely and that construction can commence at an earlier date. Mr. Johnson stated that the pier design will be basically the same as the old pier with the exception of the elevated deck, larger diameter timber piles and bracing. Councilmember Risner asked if an additional seating area on the pier is planned and what the estimated cost would be. The Director stated that a widened deck area for seating could be incorporated into the design at the direction of the Council, noting that such an addition would require City funding. Mayor Grgas requested that preliminary design sketches be provided to the Council. Councilmember Risner requested that the staff provide an estimate of the cost to include the additional seating area. Risner moved, second by Grgas, to authorize the City Manager to advertise for bids for Phase One of the pier construction project and for the purchase of necessary pilings and timbers. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried I VOTING DELEGATES - LEAGUE OF CALIFORNIA CITIES CONFERENCE Risner moved, second by Vanderstaay, to approve Mayor Grgas as the City's voting delegate and Councilman Brownell as the alternate voting delegate at the annual League of California Cities Conference in October. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried I ORDINANCE NUMBER llS2 - OIL BARREL TAX/BASE TAX/ANNUAL OIL PERMIT WELL FEE Revised Ordinance Number 1lS2 was presented to Council and read in full by the City Attorney entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH, CALIFORNIA, AMENDING CHAPTER lSA, OIL, GAS, PETROLEUM OR OTHER HYDROCARBON SUBSTANCE PRODUCTION, ARTICLE I OF THE SEAL BEACH MUNICIPAL CODE." After discussion, the City Attorney clarified that payment of the base fee shall be required by September 30 of each year, that the per barrel tax shall be adjusted on July I of each year, and requested that the City's Finance Director determine the base price of oil as of July I, 1983. The City Attorney further clarified that the producer's price will be determined annually for oil produced in the City during the fiscal year, not from production outside of Seal Beach. After discussion, Council also determined that the base fee charge remain constant and not be prorated for new wells during the production year. It was also clarified that the base tax and permit fee applies only to those wells that are producing at the beginning of the production year or until such time as production commences. Grgas moved, second by Vanderstaay, to approve the introduction of Ordinance Number IlS2 and that it be passed to second reading. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried 8-8-83 / 8-22-83 ORAL COMMUNICATIONS There were no oral communications. ADJOURNMENT Risner moved, second by Brownell, to adjourn the meeting at 11:03 p.m. AYES: NOES: ABSENT: Brownell, Grgas, Risner, Vanderstaay None Laszlo Motion carried I City of t APProvoo,t~ t ~ ayor erk and ex-of i Seal Beach City Attest: ~...l>>J( ~d Ci ty ClerJ Seal Beach, California August 22, 1983 I The City Council of the City of Seal Beach met in regular session at 7:02 p.m. with Mayor Grgas calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Grgas Councilmembers Brownell, Laszlo, Risner, , Vanderstaay Absent: None Also present: Mr. Parker, City Manager Mr. Stepanicich, City Attorney Mr. Joseph, Assistant City Manager Mr. Johnson, Director of Public Works/ City Engineer Mr. Stickney, Assistant City Engineer Mr. Antos, Principal Planner Mrs. Yeo, City Clerk WAIVER OF FULL READING I Vanderstaay moved, second by Risner, 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.