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HomeMy WebLinkAboutCC Min 1985-04-08 4-8-85 Seal Beach, California April 8, 1985 The City Council of the City of Seal Beach met in regular session at 7:00 o'clock p.m. with Mayor Brownell calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Brownell Councilmembers Clift, Grgas, Risner I Absent: Counci1member Wilson Councilmember Wilson arrived at the meeting at 7:35 p.m. Also present: Mr. parker, City Manager Mr. Stepanicich, City Attorney Mr. Joseph, Assistant City Manager Mr. Baucke, Director of Development Services Mr. Hemphill, Director of Public Works/ City Engineer Mrs. Yeo, City Clerk WAIVER OF FULL READING Clift 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 Counci1members 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, Clift, Grgas, Risner None Wilson Motion carried I PROCLAMATIONS Mayor Brownell proclaimed April 16, 1985 as "Day of the Teacher." Mayor Brownell proclaimed April 8th through 14th, 1985 as "Week of the Disabled." April 14th through April 20th was proclaimed "Orangewood Week" by Mayor Brownell. April 14th through April 21st was proclaimed the "Days of Remembrance of the Victims of the Holocaust" by the Mayor. Mayor Brownell proclaimed April 15th through the 20th, 1985 as "Earthquake preparedness Week." April 21st through April 27th, 1985 was proclaimed the "Week of the Young Child" by the Mayor. Mayor Brownell proclaimed the month of April, 1985 as "Cancer Control Month." AGENDA AMENDED Risner moved, second by Clift, to amend the agenda to include an additional proclamation. I AYES: NOES: . ABSENT: Brownell, Clift, Grgas, Risner None Wilson Motion carried 4-8-85 Mayor Brownell proclaimed April 14th through April 20th, 1985 as "National Library Week." I SCHEDULED PUBLIC HEARING - APPEAL 1-85 - TINY NAYLOR'S INC. Rlsner moved, second by Clift, to reschedule this public hearing for the May 13th meeting, as requested by the appellant. AYES: NOES: ABSENT: Brownell, Clift, Grgas, Risner None Wilson Motion carried SCHEDULED PUBLIC HEARING - APPEAL 2-85 - LOHRKE It was the order of the Chair, with consent of the Council, to withdraw Appeal 2-85, as requested by the appellants, Robert and Lois Lohrke. ORDINANCE NUMBER 1177 - MASSAGE PARLORS and MASSAGISTS _ REPEALING CERTAIN LICENSE FEES Ordinance Number 1177 was presented to Council for second reading entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, REPEALING SECTION 11-70 OF CHAPTER 11, ARTICLE II OF THE CODE OF THE CITY OF SEAL BEACH, PERTAINING TO CERTAIN LICENSE FEES FOR MASSAGE PARLORS AND MASSAGISTS." By unanimous consent, full reading of Ordinance Number 1177 was waived. Clift moved, second by Risner, to adopt Ordinance Number 1177 as presented. AYES: NOES: ABSENT: Brownell, Clift, Grgas, Risner None Wilson Motion carried I ORDINANCE NUMBER 1179 - REGULATING MASSAGE ESTABLISHMENTS and MASSAGE TECHNICIANS Ordinance Number 1179 was presented to Council for second reading entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH REGULATING MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS AND AMENDING THE SEAL BEACH CITY CODE." By unanimous consent, full reading of Ordinance Number 1179 was waived. Clift moved, second by Risner, to adopt Ordinance Number 1179 as presented. AYES: NOES: ABSENT: Brownell, Clift, Grgas, Risner None Wilson Motion carried I ORDINANCE NUMBER 1180 - PLACEMENT OF THIRD STORIES - SEAL WAY Ordinance Number 1180 was presented to Council for first reading entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AMENDING CHAPTER 28, ARTICLE 8 OF THE SEAL BEACH MUNICIPAL CODE RELATING TO PLACEMENT OF THIRD STORIES ON LOTS WITH WIDTHS OF 37.5 FEET OR MORE ALONG SEAL WAY." By unanimous consent, full reading of Ordinance Number 1180 was waived. The Director of Development Services reported that the proposed Ordinance was prepared pursuant to Council action on March 25th, noting that the amendment of Municipal Code Section 28-801 allows lots on Seal way to locate a third story equal to the total square foot area allowed in the rear one-half of the lot with no limitations on placement, but shall be subject to required yards. Risner moved, second by Clift, to approve the introduction of Ordinance Number 1180 and that it be passed to second reading. AYES: NOES: ABSENT: Brownell, Clift, Grgas, Risner None Wilson Motion carried 4-8-85 ORDINANCE NUMBER 1181 - MORATORIUM - SATELLITE DISH ANTENNAE URGENCY Ordinance Number 1181 was presented to Council for first reading entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH ESTABLISHING A MORATORIUM ON THE ERECTION OF NEW OR THE MODIFICATION OF EXISTING SATELLITE DISH ANTENNAE IN THE CITY AND DECLARING THE URGENCY THEREOF." By unanimous consent, full reading of Ordinance Number 1181 was waived. The Director of Development Services reported that pursuant to City Council direction, the staff is in the process of preparing regulations governing satellite dish antennae in the City, anticipated to be before the planning Commission at their first meeting in May, and that the moratorium is proposed on the erection of new or modification of existing satellite dish antennae pending adoption of those regulations by the Commission and City Council. Mr. Baucke noted that the period of the moratorium is forty-five days. Mr. Baucke stated that staff is reviewing twelve sample ordinances provided by the League of Cities, that the primary intent is that antennae be screened from view, while affording a resident the right to install such antennae. He explained that in R-1 areas, antennae would be required to be placed within the open space areas of a backyard, however in Old Town they could be placed on the roof subject to a requirement that they be screened from view. Councilman Grgas asked that the regulations be put in place at the earliest possible time, and moved to adopt urgency Ordinance Number 1181 as presented. Councilman Clift seconded the motion. AYES: NOES: ABSENT: Brownell, Clift, Grgas, Risner None Wilson Motion carried ORDINANCE NUMBER 1182 - TRANSIENT OCCUPANCY TAX Ordinance Number 1182 was presented to Council for first reading entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH, CALIFORNIA, AMENDING CHAPTER 22, ARTICLE IV, OF THE SEAL BEACH MUNICIPAL CODE, REGARDING UNIFORM TRANSIENT OCCUPANCY TAX." By unanimous consent, full reading of Ordinance Number 1182 was waived. The Assistant City Manager reported that the proposed Ordinance increases the Transient Occupancy Tax from the current five percent to eight percent, redefines a transient as one who resides in a hotel/motel for periods of less than thirty days rather than the current fifteen days, and further, eliminates the existing provision which states the first $3,000 is to be used for advertising and public relations. Mr. Joseph reported there are currently two businesses that fall under the requirements of Chapter 22, however cited the fact that a new hotel development is commencing on the Growin' My Way site, with the potential of future hotel developments on the DWP property and the State Lands site. Mr. Joseph reported the results of a survey of tax rates of other California cities, also noted that with the anticipated reduction/loss of Revenue Sharing funds, there is a need to pursue alternative revenue sources. Marjorie Bettenhausen, eight year proprietor of the Seal Beach Inn, requested that the Council not raise the Bed Tax to eight percent at this time. She spoke favorably of the potential for additional hotel development in the City, stated that it takes a great deal of time to develop tourism exposure, requested that the Bed Tax be increased no higher than six percent and that future increases be delayed, possibly for up to seven years. Mrs. Bettenhausen stated that through the promotion of tourism to the City and the development of additional hotels, the entire I I I 4-8-85 I community will reap the benefits of increased business. She also stated that traditionally Bed Tax is used to promote tourism in a community, and expressed surprise that that provision of the Municipal Code is proposed to be deleted. Mr. Glen Dulac, 814 Electric Avenue, stated he, and the Seal Beach Committee for Free Enterprise, were concerned about the Bed Tax and its intended use to promote the City, and requested an audit of the expenditure of those funds prior to such time the current provision is deleted from the City Code. The City Manager explained that the Transient Occupancy Tax is comingled with the General Fund, and that annually, more than the $3,000 is allocated to community promotion, suggesting that Mr. Dulac may wish to contact the City's Finance Director to discuss the matter further. Councilmember Wilson arrived at the meeting at 7:35 p.m. Discussion continued. The Assistant City Manager noted that a sentence had been inadvertently omitted from the proposed Ordinance, and requested that the words "as sub- tenant, guest, licensee or permitee, the person..." be added to Section 3, line 5 after the words "by another person." Risner moved, second by Wilson, to approve the introduction of Ordinance Number 1182 as amended, and to reflect an increase of the Transient Occupancy Tax to seven percent, with further review after one year, and that Ordinance 1182 be passed to second reading. AYES: NOES: ABSTAIN: Brownell, Clift, Risner, Wilson None Grgas Motion carried I AGENDA AMENDED Clift moved, second by Risner, to consider agenda Item "Y", a report regarding the Cable Television Franchise, out of order at this time. AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried I REPORT - CABLE TELEVISION FRANCHISE The City Manager stated that the staff is recommending that this matter be held over, to be the subject of a future workshop session. The Assistant City Manager presented the staff report, stating that the City is in receipt of a letter from Group W Cable proposing several changes in the manner in which the franchise agreement is administered, noting that the proposal does not constitute renegotiation of the franchise agreement, but is an attempt to redefine the methods of implementation. Mr. Joseph reported the proposal is the result of meetings between the City staff and Group W management, during which Group W expressed their concerns regarding the success of the franchise, citing a low penetration rate that has created financial hardships on the local office, also that they would be proposing a rate increase in the near future. Mr. Joseph reported that pursuant to State law, Group W meets all of the criteria to deregulate its rates, however since Group W waived its rights under that law in the Franchise Agreement, a legal question is then posed as to whether or not they were able to do that. The Assistant City Manager pointed out that the main point of the Group W proposal is that they retain and administer the $75,000 annual grant intended to be used for local programming, which Group W maintains would be a more cost effective means of enhancing local programming while defraying their expense in those 4-8-85 endeavors. Mr. Joseph explained that Group W had previously requested $80,000 from the Foundation for local origination and public access funding, and reported the Foundation had funded $15,000 of that request. Further, that Group W proposes to consolidate the six public access and local origination channels into one, and to substitute a revenue audit report for the full detailed audit as provided in the past. Mr. Joseph noted that $225,000 has been granted I for local programming to date and administered by the Cable Foundation, that those funds may be extended should Group W retain and administer the $75,000 annual grant, also if the Foundation pursues alternate sources of funding through grants and endowments. The Assistant City Manager reported that it is staff's opinion that the proposals would make for a more efficient and cost-effective relationship between the City and Group W. He noted that if the franchise is successful, the consumer will not bear the burden of substantial rate increases and poor programming, and would also serve to protect the $750,000 prepaid franchise fees which, under new Federal legislation, would require the City to refund any prepayment of franchise fees should the franchise not generate adequate revenues during its term. Councilmember Risner referred to letters dated March 21 and 25 from Group W Cable proposing deviation from several provisions of the franchise agreement and deregulation of their rates, copies of which had been provided to the Council at the last Council meeting, and read a prepared statement relating to Group W's proposal. Mrs. Risner stated her objection to this matter being placed on the agenda prior to receipt of a report from the City Attorney, also to the negotiations that have taken place between the staff and Group W. She expressed her feeling that the proposal is a request for the return of money I and rights to which the franchisee agreed to by written contract, as well as the intention to raise consumer rates, which she felt to be in violation of the contract. Mrs. Risner stated that the cable contract clearly states, in her opinion, that the rates shall not be increased for a period of three years following completion of construction of the system, and after the three years only if proven to be justified and limited to the CPl. She inquired if and when the system was completed and certified, if all other requirements had been met, and if the "as built plans" had been filed with the City. Further, she stated she understood Group W waived its rights, as provided by the contract, to deregulate under the provisions of Government Code Section 53066.1, and noted a similar dispute taking place between the City of Fullerton and Group W for which an April 23rd Superior Court hearing has been set. Councilmember Risner referred to Group W's claim that the capital investment of the system is seventy percent over the original projected estimate, stated those expenditures were totally under the control of Group W, not the City, as well as the subscriber penetration, claimed to be thirty percent and below the initial estimate, and pointed out their knowledge and prior cable experience in the Leisure World community. Mrs. Risner voiced strong objection to considering I any portion of the Group W proposal until further information is available and numerous questions answered, specifically questions which she posed in a memorandum dated March 10th to the attention of the City Attorney. The City Manager suggested that Group W provide the Council with information showing the amount of revenues received and revenues projected with thirty percent penetration, also, the effect on a rate increase if the annual grant to the City is retained by Group Wand the public access channels reduced. Mr. 4-8-85 I parker added that if Group W is held strictly to their contract it is presumed the cost would ultimately be passed on to the consumer. Mr. Parker reported that the City Attorney has advised that the issue of deregulation is unclear, and further, since Group W will be deregulated in one year, the staff felt it was in the City's best interest to negotiate this issue rather than incur substantial legal costs to oppose the proposal. He added that staff's intent is to protect the $750,000 prepaid franchise fees and any interest accruing thereto, and to retain the best programming and lowest rates possible to the consumer. Mr. Parker referred to the federal legislation that took away a city's power to regulate, explaining again that cable companies will automatically be deregulated next year, referred to the Santa Ana and Fullerton cable conflicts, and suggested that it should be determined if negotiations could produce something compatible to all parties rather than create an adversary relationship. Mr. Dick Waterman, Director of Corporate Affairs for Group W, confirmed that there are severe financial problems with the Seal Beach system, however agreed to meet in a workshop session and to provide answers to the questions and legal issues raised, suggesting that the City Attorney may wish to review the opinion of Group W's legal counsel. Mr. Waterman referred to the Fullerton case set to be heard April 23rd, and stated his feeling that the waiver issue should be resolved at that time, explaining that subsequent to the time the Seal Beach agreement was entered into, a request was made of the legislative counsel as to whether or not a cab1~ company could waive its rights under State law on this matter, with the legislative counsel ruling that they could not. He added that the legislative counsel's opinion was subsequently codified by Section 53066.1 in approximately 1983. As to whether or not that Section can be retroactively applied, Mr. Waterman stated it is presently unclear, but that that issue is soon to be addressed. Mr. Waterman requested that any questions the Council, staff or City Attorney may have be provided to Group W prior to the workshop. Mr. Waterman confirmed that there would be no increase of rates as proposed for May 1st, also stated that the previous annual local programming grants should not be a question since those funds will remain with the City. The City Manager reported that the $15,000 previously granted to Group W by the Foundation had been negotiated to be returned to the City to restore the $225,000 balance. The City Attorney confirmed that work has commenced to respond to the questions posed by Counci1member Risner with regard to the impact of the federal statute and the interpretation of the City's contractual agreement, and that the response would be forthcoming for the April 29th workshop. councilman Grgas asked, if Group W ceased to exist, would the City stand liable for refunding any part of the prepaid franchise fees, also, in combining the public access channels, five open channels would then exist and inquired who would then benefit from the monies received for those channels, also expressed his concern with provisions of the franchise agreement and representations that were made during the cable selection process, as it relates to the City's liability exposure. . Mr. Grgas also requested that the Foundation members be invited to participate in the workshop. Mayor Brownell stated he had observed the cable franchise discussions prior to being a member of the City council, referred to the Leisure World system, under a separate contract and fixed rate until approximately 1993, noting that the Council had been assured that the cable contract would not abrogate the Leisure World contract. I I 4-8-85 Mr. Brownell expressed his feeling that when a contract is entered into that grants certain rights or privileges there is an obligation to be bound by that contract unless there is evidence of subterfuge or misinformation given. Mr. Waterman responded that it is Group W's intent to fully uphold the Leisure World contract until its termination, and to provide a service far in excess of the twelve channel system that had previously been in place, and at the fixed rate. with regard to penetration, Mr. Monson, Group W General Manager, responded that there is approximately nineteen percent penetration in 'Leisure World and fifty percent in the remainder of the community. Wilson moved, second by Clift, to set a workshop for Monday, April 29th at 7:00 p.m. I AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried RESOLUTION NUMBER 3468 - OPPOSITION TO ASSEMBLY BILL 1543 - FINES AND FORFEITURES Resolution Number 3468 was presented to Council entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, INDICATING ITS OPPOSITION TO ASSEMBLY BILL 1543." By unanimous consent, full reading of Resolution Number 3468 was waived. The Assistant City Manager reported that the proposed legislation would increase the County share of fines and forfeitures from fifteen to twenty percent in Orange County, effecting a five percent reduction of the citi~s' share of those funds, and is an attempt to generate funds for the construction of a new juvenile courthouse and new wing on the Superior Court in Santa Ana. Mr. Joseph estimated the loss to Seal Beach of I approximately $21,000. Councilman Clift moved to adopt Resolution Number 3468. Counci1member Risner requested that the motion be amended to direct a copy of the Resolution be forwarded to Superviser wieder, noting that the County is proposing an amendment to this bill in an attempt to get forty percent of these funds. The City Manager reported he is a member of the negotiating team meeting with the County regarding this matter. Councilmember Wilson seconded the motion. AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried RESOLUTION NUMBER 3469 - AUTHORIZING DESTRUCTION - POLICE RECORDS Resolution Number 3469 was presented to Council entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING THE DESTRUCTION OF CERTAIN POLICE RECORDS." By unanimous consent, full reading of Resolution Number 3469 was waived. Wilson moved, second by Risner, to adopt Resolution Number 3469 as presented. AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried CONSENT CALENDAR - ITEMS "Q" THROUGH "x" I Councilmember Risner requested Item "w" removed from the Consent Calendar. Wilson moved, second by Clift, to approve the recommended action for items on the Consent Calendar as presented, except Item "W". Q. Approved the minutes of the regular City Council meeting of March 25, 1985. 4-8-85 R. Approved regular demands numbered 55864 through 56027 in the amount of $249,191.58, and payroll demands numbered 12732 through 12884 in the amount of $139,956.18 as approved by the Finance Committee and authorized that warrants be drawn on the Treasury for the same. I S. Denied the claim of Gregory W. Lowery and referred same to the City's insurance adjuster. T. Denied the claim of Margaret, Anne and Carol Johanson and referred same to the City's insurance adjuster. ' U. Denied the claim of Dominick Vienna and referred same to the City's insurance adjuster. V. Received and filed the memorandum dated April 4, 1985 from the Engineering Department regarding proposed bus changes. x. Ratified the proposed 1985-86 West Orange County Water Board Budget. AYES: Brownell, Clift, Grgas, Risner, Wilson NOES: None Motion carried ITEMS REMOVED FROM THE CONSENT CALENDAR I ITEM "w" - PLANS and SPECIFICATIONS - PIER RESTAURANT - PROJECT NUMBER 552 At the request of Councilmember Risner, the City Engineer presented the staff report, described the design/builder contractor concept and the basic design of the pier restaurant. The City Manager reported the estimated cost to reconstruct the restaurant is $180,000, and an additional $40,000 to $60,000 for interior furnishings. Mr. Parker reported that the City has been informed by the Coastal Conservancy staff that money has been set aside that should cover the cost of the restaurant reconstruction as well as the interior fixtures, and that once the bids have been received and opened, the City's funding request will be forwarded to the Conservancy. He also stated it is anticipated that the restaurant will be completed by summer. Clift moved, second by Risner, to approve the plans and specifications for the pier Restaurant, project Number 552, and authorize the City Manager to advertise for bids. AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried CLOSED SESSION The City Manager reported the Closed Session was not necessary. ,I ORAL COMMUNICATIONS Counci1member Risner noted that the City was not billed by the West Orange County Water Board for the last one- half of the current year, and reported that any monies approved in the 1985/86 budget that are not used, will be returned to the City. Mrs. Risner reported she had prepared a memorandum to the City Manager relating to the Hellman property. The City Manager reported that the issue of the Hellman property was brought to the Planning Commission at their last meeting, at his request. He explained that the Hellman property has been offered for sale through an arrangement with Coldwell Banker, that Hellman has deleted 4-8-85 forty acres from their original proposal, which includes the proposed fifteen acre park site, has increased the selling price by approximately thirty-five percent, therefore, based upon those factors, an increase in density is foreseen in order to produce a viable project. He stated he asked that the Planning Commission schedule a public hearing to consider rezoning the property to its original Oil production zone, which would also notice the fact that I the City would not support increased density to accommodate a development of lesser acreage at a higher price. Counci1member Risner suggested this to be an opportunity to put into place a comprehensive Specific Plan for the Hellman site, however questioned,whether or not the property should be rezoned pending preparation of a revised plan. Mr. Parker noted that based upon the present selling price and decreased acreage of the site, it is not felt development plans could be submitted by the December deadline, therefore the current Specific plan would not be a factor. In response to Council, he reported that the density of the development under the current Specific plan is eighteen units per acre. Mr. Charles Antos, 316 - 10th Street, asked why the agenda did not provide for Oral Communications. The City Manager responded that it was an error. Mr. Antos asked when the City plans to publicly notice the thirty additional parking spaces being provided in the beach parking lot as required by Coastal law. The City Manager responded that the legal requirement for public notice would be looked into, noting that the spaces were a condition of Hennessey's approval by the Commission, and that Hennessey's is required to pay the cost of the restriping. Mr. Antos referred to a request to the Council of Mr. Gilkerson for a report regarding expenditures for consulting services and asked when that report would be available. The City Manager I stated that the report is nearing completion and is proposed to be presented to the Council during budget considerations. Mr. Brent Matthews, 218 - 8th Street, referred to the Group W discussion and spoke in support of Council comments and involvement with City administration policies. There were no other oral communications; Mayor Brownell declared oral communications closed. ADJOURNMENT Grgas moved, 8:42 p.m. second by Risner, to adjourn the meeting at AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried Approved: I Attest: