HomeMy WebLinkAbout05/03/90AGENDA
SPECIAL MEETING HERMOSA BE
Thursday, May 3, 1990 - Council
6:00 p.m.
MAYOR
Roger Creighton
MAYOR PRO TEM
Chuck Sheldon
COUNCILMEMBERS
Robert Essertier
Kathleen Midstokke
Albert Wiemans
CH. CITY COUNCIL
Chambers, City Hall
CITY CLERK
Elaine Doerfling
CITY TREASURER
Gary L. Brutsch
CITY MANAGER
Kevin B. Northcraft
CITY ATTORNEY
Charles S. Vose
All Council meetings are open to the public. PLEASE ATTEND.
PLEDGE OF ALLEGIANCE
ROLL CALL:
1.
SEWER FINANCING ANALYSIS PRESENTATION - Mr. Dick Howell
of James M. Montgomery Engineers
Memorandum from Public Works Director Anthony Antich
dated April 26, 1990.
(Action on this item is scheduled for the regular Coun-
cil meeting of May 22, 1990.)
2. PROSECUTION OF CONTROLLED SUBSTANCES VIOLATIONS:
Memorandum from Public Safety Director Steve Wisniewski
dated April 26, 1990.
A. HISTORY OF PROSECUTIONS AND STAFF ACTIONS
B. CONSIDERATION OF COUNCIL POLICY STATEMENT
3. REPORT ON INCIDENCES OF GANG ACTIVITY IN HERMOSA BEACH
Memorandum from Public Safety Director Steve Wisniewski
dated April 26, 1990.
CITIZEN COMMENTS
Citizens wishing to address the Council on items within
the Council's jurisdiction may do so at this time.
ADJOURNMENT
Honorable Mayor and Members of
the Hermosa Beach City Council
April 26, 1990
Special Meeting
May 3, 1990
SEWER FINANCING ANALYSIS
Recommendation:
It is recommended that City Council
1990.
Background:
set this matter for May 22,
The City contracted with James M. Montgomery Engineers for
provision of preparing a report on sanitary sewer repairs.
James Montgomery's work evaluated five alternatives;
immediate construction of the entire project,
2. division of the
constructed now
ten years,
3. division of the
dollars to take
4. division of the
a pay-as-you-go
the
project into two phases, one to be
and one to be constructed in approximately
project in packages of up to 5 million
advantage of potential arbitrage earnings,
project into increments that can be funded on
basis using the utility users tax, and
5. postponement of construction until a cost effective sinking
fund can be accumulated from the utility users tax.
The report has been completed by Mr. Dick Howell (the author) who
will make an oral presentation and will be available to answer
questions. A copy of the final report will be delivered to each
Councilmember by the Public Works Department.
Res•ectfully submitted,
Concur:
Ant ony Antich
Director of Public Works City Manager
evin Northcroft
sba/pworks
Viki Copelan
Finance Director
CITY OF HERMOSA BEACH MEMORANDUM
TO: Mayor and City Council
FROM: City Treasurer
SUBJECT: Sewer Financing
DATE: May 1, 1990
I apologize for not being present tonight. However, I purchased
travel tickets for a five state business trip some time ago and
could not change my travel window.
Infrastructure; repair and maintenance has been a funding
priority for the last 8 years. We must continue to move forward
prudently servicing our decaying sewer system.
Financial forcasters are reporting economic slowing, (i.e.
residential home sales have slowed). Area unemployment is up;
retail sales are down. This information is important coupled
with the fact that the City has not appreciably increased
commercial sales tax base. Our fixed costs are continuing to
increase, (employee salaries and benefit packages, deferred
maintenance on our buildings and highways, etc.).
To meet rising financial demands, the City has imposed a 10% UUT
tax in addition to increased user fees. The City will be hard..
pressed to find additional revenues to maintain pace with
predicted 5+% levels of inflation and other necessary increasing
municipal government expenses.
Keeping in mind the foregoing financial scenario I reviewed the
sewer rehabilitation financing options and suggest the following
alternative to option #4 "Pay as you go":
I. I suggest the City sell available land assets.
II. The proceeds from the sale could be used to defease the
Railroad right-of-way bond issue whereby releasing the
incumberence on the 4% UUT tax. If the revenue is in
excess•of 5 million dollars it could be used to establish a
sewer replacement sinking fund.
III. With voter approval combine the approximately 2 million a
year 4% and 6% UUT revenue.
IV. Earmark this money for sewer replacement.
V. The City would gain economy of management advantage in
requesting bids for sewer construction every year as
opposed to several larger projects.
1
SUPPLEMENTAL
INFORMATION
VI. Smaller construction areas would be less intrusive to
Hermosa Beach citizens.
Conclusion:
With the predicted slowing of the local economy I do not
feel comfortable entering into a second $500 thousand
yearly debt service obligation as is recommended by this
sewer analysis report.
Attached to this report as addenda 1-5, are graphs
depicting various financial scenarios:
For example graph #5 concludes that a two million dollar
yearly financial commitment to a $20 million sewer
replacement project commencing in 1990 could be concluded
around the year 2000.
Gary Br y sch
City Treasurer
hull/memogb
Assume $900,000 applied to a total of $20,000,000
Year
Cap requirement (5%)
UUT (5%)
Bal requirement
Bal (today $ C 5%)
Completed this year
Total remaining
Cap requirement (4%)
UUT (6%)
Bal requirement
Bal (today $ 5%)
Completed this year
Total remaining
Cap requirement (5%)
UUT (20%)
Bal requirement
Bal (today $ t 5%)
Completed this year
Total remaining
sewerstuff
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
$20,000 $20,055 $20,066 $20,027 $19,934 $19,782 $19,565 $19,277 $18,911 $18,461 $17,918 $17,274
$900 $945 $992 $1,042 $1,094 $1,149 $1,206 $1,266 $1,330 $1,396 $1,466 $1,539
$19,100 $19,110 $19,073 $18,985 $18,840 $18,634 $18,359. $18,011 $17,582 $17,065 $16,452 $15,735
$18,190 $17,333 $16,476 $15,619 $14,762 $13,905 $13,048 $12,190 $11,333 $10,476 $9,619 $9,200
5% 5% 5% 5% 5% 6% 6% 7% 7% 8% 8% 9%
96% 91% 87% 82% 78% 73% 69% 64% 60% 55% 51% 46%
$20,000 $19,864 $19,666 $19,401 $19,063 $18,643 $18,137 $17,534 $16,828 $16,010 $15,069 $13,995
$900 $954 $1,011 $1,072 $1,136 $1,204 $1,277 $1,353 $1,434 $1,521 $1,612 $1,708
$19,100 $18,910 $18,655 $18,329 $17,926 $17,439 $16,860 $16,181 $15,394 $14,489 $13,457 $12,287
$18,190 $17,152 $16,115 $15,080 $14,046 $13,013 $11,982 $10,952 $9,923 $8,895 $7,868 $7,184
5% 5% 5% 6% 6% 6% 7% 8% 9% 9% 11% 12%
96% 91% 86% 81% 77% 72% 67% 61% 56% 51% 45% 40%
$20,000 $20,055 $19,924 $19,559 $18,904 $17,890 $16,433 $14,433 $11,768
$900 $1,080 $1,296 $1,555 $1,866 $2,239 $2,687 $3,225 $3,870
$19,100 $18,975 $18,628 $18,004 $17,038 $15,650 $13,745 $11,208. $7,898
$18,190 $17,211 $16,091 $14,812 $13,350 $11,678 $9,769 $7,586 $5;091
5% 5% 7% 8% 10% 13% 16% 22% 33%
96% 90% 84% 78% 70% 61% 51% 40% 27%
Page 1
$8,293 $3,832 ($1,828)
$4,644 $5,573 $6,687
$3,650 ($1,741) ($8,515)
$2,240 ($1 ,018) ($4,978)
56% 145% -366%
12% -5% -25%
Assume $1,230,000 applied to a total of $20,000,000
Year
Cap requirement (5%)
UUT (5%)
Bal requirement
Bat (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (4%)
UUT (6%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (5%)
UUT (20%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
sewerstuff
1990 1991 1992 1993. 1994 1995 1996 1997 1998 1999 2000 2001
$20,000 $19,709 $19,338 $18,881 $18,330 $17,676 $16,912 $16,027 $15,011 $13,853 $12,542 $11,066
$1,230 $1,292 $1,356 $1,424 $1,495 $1,570 $1,648 $1,731 $1,817 $1,908 $2,004 $2,104
$18,770 $18,417 $17,982 $17,457 $16,835 $16,107 $15,264 $14,296 $13,194 $11,945 $10,539 $8,962
$17,876 $16,705 $15,533 $14,362 $13,190 $12,019 $10,848 $9,676 $8,505 $7,333 $6,162 $5,240
693 7% 7% 8% 8% 9% 10% 11% 12% 14% 16% 19%
94% 88% 82% 75% 69% 6393 57% 51% 45% 39% 32% 26%
$20,000 $19,521 $18,946 $18,266 $17,473 $16,557 $15,508 $14,313 $12,963 $11,442
$1 ,230 $1 ,304 $1,382 $1 ,465 $1 ,553 $1,646 $1,745 $1,849 $1 ,960 $2,078
$18,770 $18,217 $17,564 $16,801 $15,920 $14,911 $13,763 $12,464 $11,002 $9,364
$17,876 $16,523 $15,172 $13,822 $12,474 $11,127 $9,781 $8,436 $7,092 $5,749
6% 7% 7% 8% 9%. 10% 11% 13% 15% 18%
94% 88% 81% 75% 68% 61% 5493 47% 40% 33%
$20,000 819,709 $19,144 $18,242 $16,922 $15,090 $12,631 $9,406
$1,230 $1,47.6 $1,771 $2,125 $2,551 $3,061 $3,673 $4,407
$18,770 $18,233 $17,373 $16,116 $14,371 $12,029 $8,958 $4,999
$17,876 $16,537 $15,007 $13,259 $11 ,260 $8,976 $6,366 $3,383
6% 7% 9% 1.2% 15% 20% 29% 47%
94% 87% 79% 70% 59% 47% 33% .18%
Page 1
$9,739 $7,837
$2.,203 $2,335
$7,536 $5,502
$4,406 $3,217
23% 30%
25% 18%
$5,249 ($42) ($6,708)
$5,289 $6,347 $7,616
($40) ($6,389) ******
($26) ($3,922) ($8,375)
101% ****** -114%
093 -21% -4495
Assume $1,230,000 applied to a total of $16,000,000
Year
Cap requirement (5%)
UUT (5%)
Bal requirement
Bal (today $ @ 593)
Completed this year
Total remaining
Cap requirement (4%)
UUT (6%)
Bal requirement
Bal (today $ .@ 5%)
Completed this year
Total remaining
Cap requirement (5%)
UUT (20%)
Bal requirement
Bal (today $ C 5%)
Completed this year
Total remaining
sewerstuff
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
$16,000 $15,509 $14,928 $14,250 $13,468 $12,571 $11,552 $10,398 $9,101 $7,648 $6,027 $4,225
01 ,230 $1 ,292 01 ,356 $1,424 $1 ,495 $1,570 $1,648 $1,731 $1 ,817 01 ,908 $2,004 $2,104
$14,770 $14,217 $13,572 $12,826 $11,973 $11,002 $9,903 $8,668 $7,284 $5,740 $4,023 $2,121
$14,067 $12,895 $11 ,724 $10,552 $9,381 $8,210 $7,038 $5,867 $4,695 $3,524 $2,352 $1 ,240
8% 8% 9% 10% 11% 12% 1498 17% 20% 25% 33% 50%
92% 85% 77% 69% 62% 54% 46% 39% 31% 23% 15% 8%
$16,000 $15,361, $14,619 $13,767 $12,794 $11,691 $10,446
$1,230 $1 ,304 , $1 ,382 $1,465 01 ,553 01 ,646 $1,745
$14,770 $14,057 $13,237 $12,302 $11 ,241 $10,045 $8,702
$14,067 $12,750 $11 ,435 010,121 $8,808 $7,495 $6,184
8% 8% 9% 11% 12% 14% 17%
92% 84% 76% 68% 60% 52% 4396
$16,000 $15,509 $14,734 $13,611 $12,060 $9,985 $7,270
$1,230 01 ,476 $1 ,771 $2,125 $2,551 $3,061 $3,673
$14,770 $14,033 $12,963 $11,486 $9,509 $6,924 $3,598
$14,067 $12,728 $11 ,198 $9,449 $7,451 $5,167 $2,557
8% 10% 1293 16% 21% 31% 51%
92% 84% 73% 6296 49% 34% 17%
Page 1
$9,050 $7,488 $5,749
$1,849 $1 ,960 $2,078
$7,200 $5,528 $3,671
$4,873 $3,563 $2,254
20% 26% 36%
34% 25% 16%
03,778 ($661) ($6,248)
$4,407 $5,289 $6,347
($630) ($5,950) ******
($426) ($3,835) ($7,732)
117% -800% -102%
-3% -25% -51%
$3,818 $1 ,680
$2,203 $2,335
$1 ,615 ($655)
$944 ($383)
58% 139%
7% -3%
****** ******
$7,616 $9,139
****** ******
****** ******
-5895 -4295
-8093 -11396
Assume $2,000,000 applied to a total of $,000,000
Year
Cap requirement (5%)
UUT (5%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (4%)
UUT (6%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (5%)
UUT (20%)
Bat requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
sewerstuff
1990 1991 1992 1993 1994 1995
$16,000 $15,509 $14,079 $12,468 $10,660 $8,640
$1 ,230 $2,100 $2,205 $2,315 $2,431 $2,553
$14,770 $13,409 $11,874 $10,152 $8,229 $6,088
$14,067. $12,162 $10,257 $8,352 $6,448 $4,543
8% 14% 16% 19% 23% 30%
92% 80% 67% 55% 42% 30%
$16,000 $15,361 $13,770 $11 ,984
$1 ,230 $2,120 $2,247 $2,382
$14,770 $13,241 $11,523 $9,602
$14,067 $12,010 $9,954 $7,900
8% 14% 16% 20%
92% 80% 67% 53%
$16,000 $15,509 $13,764 $11 ,428
$1 ,230 $2,400 $2,880 ,$3,456
$14,770 $13,109 $10,884 $7,972
$14,067 $11 ,890 $9,402 $6,559
8% 15% 21% 30%
92% 78% 62% 43%
$9,986
$2,525
$7,461
$5,846
25%
40%
$8,371
$4,147
$4 ,224
$3,309
50%
22%
Page 1
1996 1997 1998 1999 2000
$6,392 $3,898 $1 ,138 ($1,908) ($5,261)
$2,680 $2,814 $2,955 $3,103 $3,258
$3,712 $1,083 ($1 ,817) ($5,01 1) ($8,519)
$2,638 $733 ($1,171) ($3,076) ($4,981)
42% 72% 260% -163% -62%
17% 5% -8% -20% -33%
$7,760 $5,287 $2,548 ($478) ($3,812) ($7,479)
$2,676 $2,837 $3,007 $3,188 $3,379 $3,582
$5,083 $2,450 ($460) ($3,666) ($7,191) ******
$3,793 $1,741 ($31 1) ($2,363) ($4,415) ($6,467)
34% 54% 118% -667% -89% -48%
26% 12% -2% -17% -32% -47%
2001
($8,945)
$3,421
*is so***
($7,230)
-38%
-45%
******
$3,797
******
($8,945)
-33%
-62%
$4,435 ($569) ($6,868) ****** ****** ****** ******
$4,977 $5,972 $7,166 $8,600 $10,320 $12,383 $14,860
($542) ($6,541) ****** ****** ****** ****** ******
($404) ($4,649) ($9,499) ****** ****** ****** ******
112% -1049% -104% -58% -42% -34% -29%
-3% -31% -62% -99% -140% -188% -242%
Assume $2,000,000 applied to a total of $20,000,000
Year
Cap requirement (5%)
UUT (5%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (4%)
UUT (6%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (5%)
UUT (20%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
sewerstuff
1990 1991 1992 1993 1994 1995 1996 1997 1998
$20,000 $19,709 $18,489 $17,098 $15,522 $13,746 $13. $9,526 $7,047
$1,230 $2,100 $2,205 $2,315 $2,431 $2,553 $2,680 $2,814 $2,955
$18,770 $17,609 $16,284 $14,783 $13,091 $11 ,193 $9,072 $6,712 $4,093
$17,876 $15,971 $14,067 $12,162 $10,257 $8,352 $6,448 $4,543 $2,638
6% 11% 12% 1493 16% 19% 23% 30% 42%
94% 84% 74% 64% 54% 44% 34% 24% 1493
$20,000 $19,521 $18,097 $16,484 $.14,666 $12,626 $10,348 $7,811
$1,230 $2,120 $2,247 $2,382 $2,525 $2,676 $2,837 $3,007
$18,770 $17,401 $15,850 $14,102 $12,141 $9,950 $7,511 $4,804
$17,876 $15,783 $13,692 $11,601 $9,513 $7,425 $5,338 $3,252
6% : 11% 12% 1498 17% 2198 27% 38%
94% 8498 73% 63% 52% 41% 30% 18%
$20,000 $19,709 $18,174 $16,059 $13,233
$1 ,230 $2,400 $2,880 $3;456 $4,147
$18,770 $17,309 $15,294 $12,603 $9,086
$17,876 $15,699 $13,211 $10,368 $7,119
698 12% 16% 22% 3193
94% 82% 69% 54% 3798
Page 1
1999 2000 2001
$4 2'97 $1,254 ($2,104)
$3,103 $3,258 $3,421
$1 ,195 ($2,004) ($5,524)
$733 ($1 ,171) ($3,230)
72% 260% -163%
4% -6% -1693
$4,996 $1 ,881 ($1 ,558) ($5,345)
$3,188 $3,379 $3,582 $3,797
$1 ,808 ($1 ,498) ($5,140) ($9,142)
$1 ,166 ($920) ($3,005) ($5,345)
64% 180% -230% -71%
7% -591i -17% -30%
$9,540 $4,791 ($1 ,240) ($8,826) **uu*u
$4,977 $5,972 $7,166 $8,600 $10,320 $12,383 $14,860
34,563 ($1,181)($8,406) ****u* *u**** ****** ******
$3,405 (3839) (35,690) ***#** ****** ****u* ******
52% 125% -578% -97% -56% -41% -33%
18% -495 -30% -59% -92% -130% -174%
***u** ******
CITY OF HERMOSA BEACH MEMORANDUM
April 26, 1990
TO: Kevin B. Northcraft, City Manager
FROM: Steve S. Wisniewski, Director of Public Safety
SUBJECT: Update on prosecutions of alcohol and CUP citations
*************************************qk r***************************************
There have been 23 defendants cited for selling alcohol to a minor during the
past two decoy programs we have conducted.
17 of those cases were reduced to disorderly conduct and paid a fine of $235.
3 cases were totally dismissed.
1 case was reduced to disorderly conduct and paid a fine of $112.
{
1 case was reduced to disorderly conduct and the person was sentenced to do 47
hours of community service.
1 case is still outstanding and there is a warrant for the person.
There were 2 employees charged with serving alcohol to intoxicated customers.
1 case was dismissed at"court(the ABC filed an administrative action and fined
the business $1,500) , the other case was not filed by the Prosecutor.
ABC administrative actions filed against all of the businesses as a result of
our operations have resulted in penalties ranging from $1,500 to $300 and one
business received a suspension of 10 days.
We have held meetings with the City Prosecutor to discuss our displeasure with
the reduction of the charges and have made it clear that we desire every case to
be prosecuted to the fullest and the charges are not to be reduced to disorderly
conduct. Since there have been no recent charges filed, we cannot comment on
any noted improvement. We are monitoring all cases filed more closely.
The CUP violations are being handled by the new prosecutor service and are all
pending court hearings.
MEMO FROM THE HERMOSA BEACH PERSONNEL DEPARTMENT
TO: Kevin Northcraft, City Manager
FROM: Peggy Dunn, Municipal Intern W
DATE: May 2, 1990
SUBJECT: Conditional Use Permits and Illegal Activity
*****************************************************************
Per my discussion at the City of Torrance with the Assistant City
Attorney, William Quale I found out the cities relationship to
establishments granted CUP that are later discovered to be
involoved in illegal activities on the premises. The course of
action is as "follows:
1. Order To Show Cause Issued
2. Date and Time Set To. Come Before Planning Commission
3. Must Show Satisfactory Evidence as to Why CUP Should Not Be
Revoked
William Quale stated that he can remember only two or three cases
in Torrance where the subject of revoking a CUP has come up.
However, a CUP has never been revoked in the City of Torrance.
He pointed out that CUP does not stipulate anything about illegal
activity. If establishments are conducting illegal activity the
crime is handled as a seperate issue from the CUP unless a
specific activity prohibited in the CUP is violated.
If found guilty of violating a CUP the defendent can do three
things.
1. Continue to Ignore CUP
2. Stop Doing Business
3. Can Bring Mandate Against City
1
SUPPLEMENTAL
INFORMATION
2
* THURSDAY, MAY 3, 1990
Restaurant Told
It Must Give Up
Liquor Permit
• Malibu: Splash was once alleged by
Chief Gates to be a conduit for
laundering drug money.
By RONALD L. SOBLE
TIMES STAFF • WRITER
Splash, a fashionable Malibu restaurant which Los
Angeles Police Chief Daryl F. Gates once alleged
was a conduit for laundering drug money, has been
ordered by the state Alcoholic Beverage Control
Department to surrender its liquor license by May 24.
ABC Director Jay Stroh said he made the decision to
revoke the license "based on our independent investi-
gation's that almost half of Splash's stock was
transferred to two individuals with criminal records
without his agency's knowledge. -
Stroh's April 13 decision, which was made public
Tuesday, was decidedly tougher than a proposed
ruling handed down in Los Angeles last October by air
administrative law judge.
At that time, W.F. Byrnes ruled that Splash's liquor -
license should be revoked -but he gave the owners six
months to find 'a buyer • for the license, which
oftentinies is critical to the success of a restaurant.
Stroh prohibited the restaurant . from selling the
license, demanding instead that theowners turn it in
to the ABC.
Ronnie Lorenzo, 44, a Malibu 'resident who has
maintained that he is the restaurant's legal owner, said
Stroh's decision will be protested to. the ABC appeals
board. An -appeal, which must be filed by May 23,
could delay the revocationaction by several months.
In a separate action on April 16, three days after the
ABC director's decision,. the restaurant sought protec-
tion from creditors under; Chapter 11 of the federal
Bankruptcy Code, according to • papers ' filed in U.S.
Bankruptcy Court in Los Angeles . -
Scouse Corp., doing business as Splash. Restaurant,
listed assets at $42,500 and debts of $206,000, mostly
federal income taxes owed ' the government. The._
maneuver allows Splash's management 'to be at least
temporarily protected from creditors while it works
out a plan to eventually pay them. •
The filing, however, "has no legal bearing" on the
liquor license revocation proceeding, according to
ABC attorney David Wainstein.
Splash, located on Westward -'Beach Road :neat'
Malibu's popular Zuma Beach, was thrust into contro-
versy stemming from the LAPD's investigation of the
scandal -ridden ZZZZ Best carpet cleaning firm and its:
onetime chief executive, whiz kid Barry Minkow.
At a July 7, 1987; news conference, Gates charged
that organized crime investigators had uncovered' a
massive network of narcotics trafficking and money,
laundering involving Minkow and others,..
n ates branded Splash , as one: of. the "fronts for.
V laundering °, large organized crime .profits from
narcotic_ trafficking." He also. named Minkow and •1
Lorenzo as"persons involved in the conspiracy.", .. .
Minkow, who entertained business "associates at
Splash, was subsequently convicted in federal court on
57 fraud.co rote `for masterminding'alleya securities swine `y
involving his San FernandoV
ha •sed ZZZZ' Best
firm. t _ .
In the case of Splash, however, detectives combed
throughls records,but were never able to persuade
the Los Angeles County district attorney's office that
• the restaurant was being used for money laundering.
Lorenzo was never charged with any wrpngiioing
In' its- order revoking Splash's liquor 'license, the
ABC alleged that in December, 1986, tree restaurant=:
transferred 4,500 of, its 10,000 privately„held shares to
Richman Financial Services Inc = of Encino without
seeking ABC approval, as the ABG said was required; ,
,Binder state law. = =
-The: revocation orderstated that Richman .Finan
cial'.s'two officers, •-Richard Schulman, 56, of Encino,
and. Maurice Rind, 53„,of Tarzana, were convictefd
felons' Schulman co victett 1971 Of-'•
exto io
Rind was;twice
SUPPLEMENTAL'
INFORMATION
CITY OF HERMOSA BEACH MEMORANDUM
April 26, 1990
TO: Kevin B. Northcraft, City Manager
FROM: Steve S. Wisniewski, Director of Public Safety
SUBJECT: Gang Activity/Awareness in our City
*********************************************.**********************************
OVERVIEW OF GANGS
To date, 80,600 persons have been identified as being active members of street
gangs in Los Angeles County.
The ethnic breakdown of gang membership reflects that 56% are hispanic, 28% are
black, 6% are white, and the remaining 10% are a mix of various nationalities.
There are approximately 50 active gangs which call the South Bay area their
home. These gangs hail from Gardena, Hawthorne, Inglewood, Lennox, Torrance and
Redondo Beach.
Of the gangs in the South Bay area, there are 4 which call the beach cities area
their home. These are:
Gang Name
Drunks on Skates
South Bay Skins
Beryl Street Locos
North Side Redondo
Neighborhood Logo/Signature
Hermosa Beach/Redondo Beach
Redondo Beach/Torrance
Redondo Beach
Redondo Beach
DOS
SB S
BSL
NSL/R13
The Drunks on Skates gang is a gang which originated in Hermosa Beach and was
originally composed of Hermosa Pier Rats. Over the last 3 years the membership,
which averaged approximately 15, has been broken up by multiple arrests and con-
victions for strong arm robbery, assault with a deadly weapon and burglary.
The South Bay Skins, now sometimes known as the South Bay Family is a white
supremacist group whose actual headquarters is in Torrance. Contacts with this
group in our city, to date, have been confined to field interview contacts only.
They have approximately 100 members.
The Beryl Street Locos are basically comprised of local skin heads who call
Redondo Beach their home and they have approximately 30 members
The North Side Redondo gang is a newer splinter group of the old R13 gang and
has a mixed membership of white and latino members.
GANG ACTIVITY AND CONTACTS IN HERMOSA BEACH
Since January 1, 1990 our police officers have had over 150 contacts with indi-
vidual gang members. the bulk of these contacts have been with gang members
1
from the inner city gangs as opposed to local gangs. These contacts have been
with the Junior Mafia from South Gate, the 18th Street Eastside gang from
Huntington Park, the Ujima Village Piru's from Watts, the Hawthorne Piru
Gangsters from Hawthorne, the Nut Hood Watts from Watts, North Side Pomona from
Pomona, Denver Lane Gangsters from Lennox, Grape Street Crips from Watts, Motown
Crips from Detroit, and the Village Town Piru from Watts.
In general, gang activity includes but is not limited to robberies, burglaries,
auto thefts, stabbings, drug dealing, and drive by shootings. In Hermosa Beach,
we have had only two crimes that can be directly attributed to gang members
since January. The first involved a stabbing and robbery which occured downtown
in March involving latino gang members and an unarmed citizen. The second
involved a gang member assaulting an unarmed citizen in the downtown area. In.
both cases the suspects were apprehended immediately following the incident.
REASONS FOR INCREASED GANG ACTIVITY IN HERMOSA BEACH
Gang activity has been increasing steadily in the South Bay area over the past 5
years. This is partially attributable to.two factors. The first is that the
urban gangs have expanded and are being pushed out of their neighborhood areas
by increased police activity. The second is that gang involvement has now
become fashionable in middle class areas as well.
Gangs are cruising in the beach areas trying to find a locale where they can
rest and recuperate outside their normal areas as well as new neighborhoods to
control.
Hermosa Beach is more attractive to the gangs than El Segundo and Manhattan
Beach because our downtown area and businesses are located directly adjacent to
the beach and strand. Redondo Beach has a similar attraction with their pier
area.
We are concerned about the potential for major, violent confrontations when gang
members of opposing, rival, gangs meet in our City. Recent contacts with gangs
in our City indicate that not only is their movement in our neighborhoods repe-
titive, but we are seeing these rival gangs passing through our City within a
short time spans of each other.
PROJECTION FOR JUNE THROUGH -SEPTEMBER
The summer season will undoubtedly see an increase in gang contacts in our City.
This will be due to the increased gang population on the street because the
schools will be closed and the temperature will make the beach area more
attractive.
WHAT CAN BE DONE TO DETER GANG ACTIVITY
The first thing we are doing is to discourage the gangs from wanting to be in
our City. This can best be accomplished by frequent and firm contacts and field
interviews of gang members as they come into our City in order to maintain a
high profile and make our presence known to them. During these contacts all
members are identified and warrant checks are run. Many of these result in.
arrests and impounds of the vehiclesk.
We are also assuring tha our Police Officers are kept fully informed and trained
in regards to gang trends and activity which may impact our community. We have
scheduled several officers for a 3 day gang seminar in May. In addition,
designated officers from our department attend the monthly gang investigators
meetings for the Los Angeles County area.
We could develop a database for gathering and exchanging gang information with
other agencies that are encountering the same gangs and activity if we could
obtain a personal computer. There is a current operating system referred to as
the G.R.E.A.T. which many departments are involved in.
Thanks go to Sergeants Mitchell, Moore and Endom for the information presented
in this report.
April 26, 1990
Honorable Mayor and Members of Special Meeting
the Hermosa Beach City Council May 3, 1990
SEWER FINANCING ANALYSIS
Recommendation:
It is recommended that City Council set this matter for May 22,
1990.
Background:
The City contracted with James M. Montgomery Engineers for the
provision of preparing a report on sanitary sewer repairs.
James Montgomery's work evaluated five alternatives;
immediate construction of the entire project,
. division of the
constructed now
ten years,
3. division of the
dollars to take
4. division of the
a pay-as-you-go
project into two phases, one to be
and one to be constructed in approximately
project in packages of up to 5 million
advantage of potential arbitrage earnings,
project into increments that can be funded on
basis using the utility users tax, and
5. postponement of construction until a cost effective sinking
fund can be accumulated from the utility users tax.
The report has been completed by Mr. Dick Howell (the author) who
will make an oral presentation and will be available to answer
questions. A copy of the final report will be delivered to each
Councilmember by the Public Works Department.
Respectfully submitted,
Concur:
Anth'ony Antich / 1evin Northcraf t
Director of. Public Works City Manager
sba/pworks
Viki Copelan
Finance Director
CITY OF HERMOSA BEACH MEMORANDUM
TO: Mayor and City Council
FROM: City Treasurer
SUBJECT: Sewer Financing
DATE: May 1, 1990.
I apologize for not being present tonight. However, I purchased
travel tickets for a five state business trip some time ago and
could not change my travel window.
Infrastructure; repair and maintenance has been a funding
priority for the last 8 years. We must continue to move forward
prudently servicing our decaying sewer system.
Financial forcasters are reporting economic slowing, (i.e.
residential home sales have slowed). Area unemployment is up;
retail sales are down. This information is important coupled
with the fact that the City has not appreciably increased
commercial sales tax base. Our fixed costs are continuing to
increase, (employee salaries and benefit packages, deferred
maintenance on our buildings and highways, etc.).
To meet rising financial demands, the City has imposed a 10% UUT
tax in addition to increased user fees. The City will be hard
pressed to find additional revenues to maintain pace with
predicted 5+% levels of inflation and other necessary increasing
municipal government expenses.
Keeping in mind the foregoing financial scenario I reviewed the
sewer rehabilitation financing options and suggest the following
alternative to option #4 "Pay as you go":
I. I suggest the City sell available land assets.
II. The proceeds from the sale could be used to defease the
Railroad right-of-way bond issue whereby releasing the
incumberence on the 4% UUT tax. If the revenue is in
excess of 5 million dollars it could be used to establish a
sewer replacement sinking fund.
III. With voter approval combine the approximately 2 million a
year 4% and 6% UUT revenue.
IV. Earmark this money for sewer replacement.
V. The City would gain economy of management advantage in
requesting bids for sewer construction every year as
opposed to several larger projects.
SUPPLEMENTAL of
INFORMATION
VI. Smaller construction areas would be less intrusive to
Hermosa Beach citizens.
Conclusion:
With the predicted slowing of the local economy I do not
feel comfortable entering into a second $500 thousand
yearly debt service obligation as is recommended by this
sewer analysis report.
Attached to this report as addenda 1-5, are graphs
depicting various financial scenarios:
For example graph #5 concludes that a two million dollar
yearly financial commitment to a $20 million sewer
replacement project commencing in 1990 could be concluded
around the year 2000.
Gary Brisch
City Treasurer
hull/memogb
2
Assume $900,000 applied to a total of $20,000,000
Year
Cap requirement (5%)
UUT (5%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (4%)
UUT (6%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (5%)
UUT (20%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
sewerstuff
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
$20,000 $20,055 $20,066 $20,027 $19,934 $19,782 $19,565 $19,277 $18,911 $18,461 $17,918 $17,274
$900 $945 $992 $1,042 $1,094 $1,149 $1,206 $1,266 $1,330 $1,396 $1`,466 $1,539
$19,100 $19,110 $19,073 $18,985 $18,840 $18,634 $18,359 $18,011 $17,582 $17,065 $16,452 $15,735
$18,190 $17,333 $16,476 $15,619 $14,762 $13,905 $13,048 $12,190 $11,333 $10,476 $9,619 $9,200
5% 5% 5% 5% 5% 6% 6% 7% 7% 8% 8% 9%
96% 91% 87% 82% 78% 73% 69% 64% 60% 55% 51% 46%
$20,000 $19,864 $19,666 $19,401 $19,063 $18,643 $18,137 $17,534 $16,828 $16,010 $15,069 $13,995
$900 $954 $1,011 $1 ,072 $1 ,136 $1 ,204 $1 ,277 $1,353 $1 ,434 $1 ,521 $1 ,612 $1,708
$19,100 $18,910 $18,655 $18,329 $17,926 $17,439 $16,860 $16,181 $15,394 $14,489 $13,457 $12,287
$18,190 $17,152 $16,115 $15,080 $14,046 $13,013 $11,982 $10,952 $9,923 $8,895 $7,868 $7,184
5% 5% 5% 6% 6% 6% 7% 8% 9% 9% 11% 12%
96% 91% 86% 81% 77% 72% 67% 61% 56% 51% 45% 40%
$20,000 $20,055 $19,924 $19,559 $18,904 $17,890 $16,433 $14,433 $11,768
$900 $1,080 $1,296 $1,555 $1,866 $2,239 $2,687 $3,225 $3,870
$19,100 $18,975 $18,628 $18,004 $17,038 $15,650 $13,745 $11,208 $7,898
$18,190 $17,211 $16,091 $14,812 $13,350 $11,678 $9,769 $7,586 $5,091
5% 5% 7% 8% 10% 13% 16% 22% 33%
96% 90% 84% 78% 70% 61% 5198. 40% 27%
Page 1
$8,293 $3,832 ($1,828)
$4,644 $5,573 $6,687
$3,650 ($1,741) ($8,515)
$2,240 ($1,018) ($4,978)
56% 145% -366%
12% -5% -25%
Assume $1,230,000 applied to a total of $20,000,000
Year
Cap requirement (5%)
UUT (5%)
Bal requirement
Bal (today $ t 5%)
Completed this year
Total remaining
Cap requirement (4%)
UUT (6%)
Bat requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (5%)
UUT (20%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
sewerstuff
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
$20,000 $19,709 $19,338 $18,881 $18,330 $17,676 $16,912 $16,027 $15,011 $13,853 $12,542 $11,066
$1,230 $1,292 $1,356 $1,424 $1,495 $1,570 $1,648 $1,731 $1,817 $1,908 $2,004 $2,104
$18,770 $18,417 $17,982 $17,457 $16,835 $16,107 $15,264 $14,296 $13,194 $11,945 $10,539 $8,962
$17,876 $16,705 $15,533 $14,362 $13,190 $12,019 $10,848 $9,676 $8,505. $7,333 $6,162 $5,240
6% 7% 7% 8% 8% 9% 10% 11% 12% 14% 16% 19%
94% 88% 82% 75% 69% 63% 57% 51% 45% 39% 32% 26%
$20,000 $19,521 $18,946 $18,266 $17,473 $16,557 $15,508 $14,313 $12,963 $11,442
$1,230 $1,304 $1,382 $1,465 $1,553 $1,646 $1,745 $1,849 $1,960 $2,078
$18,770 $18,217 $17,564 $16,801 $15,920 $14,911 $13,763 $12,464 $11,002 $9,364
$17,876 $16,523 $15,172 $13,822 $12,474 $11,127 $9,781 $8,436 $7,092 $5,749
6% 7% .7% 8% 9% 10% 11% 13% 15% 18%
94% 88% 81% 75% 68% 61% 54% 47% 40% 33%
$20,000 $19,709 $19,144 $18,242 $16,922 $15,090 $12,631
$1 ,230 $1 ,476 $1 ,771 $2,125 $2,551 $3,061 $3,673
$18,770 $18,233 $17,373 $16,116 $14,371 $12,029 $8,958
$17,876 $16,537 $15,007 $13,259 $11,260 $8,976 $6,366
6% 7% 9% 12% 15% 20% . 29%
94% 87% 7993 70% 59% 47% 33%
Page 1
$9,739 $7,837
$2,203 $2,335
$7,536 $5,502
$4,406 $3,217
23% 30%
25% 189E
$9,406 $5,249 ($42) ($6,708)
$4,407 $5,289 $6,347 $7,616
$4,999 ($40) ($6,389) * * * * * *
$3,383 ($26) ($3,922) ($8,375)
4793 101% ****** -114%
18% 0% -21% -44%
Assume $1,230,000 applied to a total of $16,000,000
Year
Cap requirement (5%)
UUT (5%)
Gal requirement
Gal (today $ @ 5%)
Completed this y ear
Total remaining
Cap requirement (4%)
UUT (6%)
Bal requirement
Bal (today $ C 5%)
Completed this year
Total remaining
Cap requirement (5%)
UUT (20%)
Gal requirement
Gal (today $ C 5%)
Completed this year
Total remaining
sewerstuff
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
$16,000 $15,509 $14,928 $14,250 $13,468 $12,571 $11,552 $10,398 $9,101 $7,648 $6,027 $4,225
$1,230 $1 ,292 $1,356 $1,424 $1,495 $1,570 $1,648 $1,731 $1,817 $1 ,908 $2,004 $2,104
$14,770 $14,217 $13,572 $12,826 $11 ,973 $11,002 $9,903 $8,668 $7,284 $5,740 $4,023 $2,121
$14,067 $12,895 $11 ,724 $10,552 $9,381 $8,210 $7,038 $5,867 $4,695 $3,524 $2,352 $1 ,240
8% 8% 9% 10% 11% 12% 14% 17% 20% 25% 33% 50%
92% 85% 77% 69% 62% 54% 46% 39% 31% 23% 15% 8%
$16,000 $15,361 $14,619 $13,767 $12,794 $11,691 $10,446 $9,050
$1,230 $1,304 $1 ,382 $1,465 $1,553 $1,646 $1,745 $1,849
$14,770 $14,057 $13,237 $12,302 $11 ,241 $10,045 $8,702 $7,200
$14,067 $12,750 $11,435 $10,121 $8,808 $7,495 $6,184 $4,873
8% 8% 9% 11% 12% 14% 17% 20%
92% 84% 76% 68% 60% 52% 43% 34%
$7,488 $5,749 $3,818 $1 ,680
$1 ,960 $2,078 $2,203 $2,335
$5,528 $3,671 $1 ,615 ($655)
$3,563 $2,254 $944 ($383)
26% 36% 58% 139%
25% 16% 7% -3%
$16,000 $15,509 $14,734 $13,611 $12,060 $9,985 $7,270 $3,778 ($661) ($6,248) ******
$1,230 $1 ,476 $1 ,771 $2,125 $2,551 $3,061 $3,673 $4,407 $5,289 $6,347 $7,616
$14,770 $14,033 $12,963 $11,486 $9,509 $6,924 $3,598 ($630) ($5,950) ****** ******
$14,067 $12,728 $11 ,198 $9,449 $7,451 $5,167 $2,557 ($426) ($3,835) ($7,732) **##**
8% 10% 12% 16% 21% 31% 51% 117% -800% -102% -58% -42%
92% 84% 73% 62% 49% 34% 17% -3% -25% -51% -80% -113%
Page 1
Assume $2,000,000 applied to a total of $24,000,000
Year
Cap requirement (5%)
UUT (5%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
sewerstuff
1990 1991 1992 1993 1994 1995 1996
$16,000 $15,509 $14,079 $12,468 $10,660 $8,640 $6,392
$1 ,230 $2,100 $2,205 $2,315 $2,431 $2,553 $2,680
$14,770 $13,409 $11,874 $10,152 $8,229 $6,088 $3,712
$14,067 $12,162 $10,257 $8,352 $6,448 $4,543 $2,638
8% 14% 16% 19% 23% 3096 42%
92% 80% 67% 55% 42% 30% 17%
Cap requirement (4%) $16,000 $15,361 $13,770 $11 ,984
UUT (6%) $1,230 $2,120 $2,247 $2,382
Bal requirement * $14,770 $13,241 $1 1 ,523 $9,602
Bal (today $ @ 5%) $14,067 $12,010 $9,954 $7,900
Completed this year 8% 14% 16% 2093
Total remaining 92% 80% 67% 53%
Cap requirement (5%)
UUT (20%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
$16,000 $15,509 $13,764 $11 ,428
$1 ,230 $2,400 $2,880 ,$3,456
$14,770 81.3,109 $10,884 $7,972
814,067 $11,890 $9,402 $6,559
8% 15% 21% 30%
9295 78% 6295 43%
$9,986 $7,760
$2,525 $2,676
$7,461 $5,083
85,846 $3,793
25% 34%
40% 26%
$8,371
$4,147
$4,224
$3,309 ($404) ($4,649) ($9,499) ****** ****** ****** ******
50% 112% -1049% -10495 -58% -42% -34% -29%
22% -395 -3195 -62% -99% -140% -18895 -242%
1997 1998 1999 2000 2001
$3,898 $1 ,138 ($1 ,908) ($5,261) ($8,945)
$2,814 $2,955 $3,103 $3,258 $3,421
$1,083 ($1,817) ($5,011) ($8,519) ******
$733 ($1 ,171) ($3,076) ($4,981) ($7,230)
72% 260% -163% -62% -38%
5% -8% -20% -33% -45%
$5,287 $2,548 ($478) ($3,812) ($7,479) ******
$2,837 $3,007 $3,188 $3,379 $3,582 $3,797
$2,450 ($460) ($3,666) ($7,191) ****** ******
$1 ,741 ($311) ($2,363) ($4,415) ($6,467) ($8,945)
54% 118% -667% -89% -48% -33%
1295 -2% -17% -32% -47% -62%
84,435 (8569) ($6,868) ****** ****** ****** ******
$4,977 $5,972 $7,166 $8,600 $10,320 $12,383 $14,860
(8542) ($6,541) ****** ****** ****** ****** ******
Page 1
Assume $2,000,000 applied to a total of $20,000,000
Year
Cap requirement (5%)
UUT (5%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
Cap requirement (493)
UUT (6%)
Bal requirement
Bal (today $ ( 5%)
Completed this year
Total remaining
Cap requirement (5%)
UUT (20%)
Bal requirement
Bal (today $ @ 5%)
Completed this year
Total remaining
sewerstuff
1990 1.991 1992 1993 1994 1995 1996 1997 1998
$20,000 319,709 $18,489 $17,098 $15,522 $13,746 $13 $9,526 $7,047
$1 ,230 $2,100 $2,205 $2,315 $2,431 $2,553 $2,680 $2,814 $2,955
$18,770 317,609 $16,284 $14,783 $13,091 $11,193 39,072 $6,712 34,093
$17,876 $15,971 $14,067 $12,162 $10,257 38,352 $6,448 $4,543 $2,638
6% 11% 12% 14% 16% 19% 23% 30% 42%
94% 84% 74% 64% 54% 44% 34% 24% 14%
$20,000 $19,521 $18,097 $16,484 $14,666 $12,626 $10,348
$1,230 $2,120 $2,247 $2,382 $2,525 $2,676 $2,837
$18,770 $17,401 $15,850 $14,102 $12,141 39,950 $7,511
$17,876 $15,783 313,692 $11,601 $9,513 $7,425 35,338
6% 11% 12% 1493 17% 21% 2796
9493 84% 73% 63% 52% 41% 30%
$20,000 $19,709 $18,174 $16,059 $13,233
$1,230 $2,400 $2,880 $3,456 $4,147
$18,770 317,309 $15,294 $12,603 39,086
$17,876 315,699 $13,211 $10,368 37,119
6% 12% 16% 22% 31%
94% 82% 69% 54% 37%
Page 1
1999 2000 2001
$4,2 $1,254 ($2,104)
$3,103 $3,258 $3,421
$1 ,195 ($2,004) ($5,524)
3733 ($1,171) ($3,230)
72% 260% -163%
4% -6% -16%
37,811 $4,996 $1,881 ($1 ,558) ($5,345)
$3,007 $3,188 33,379 33,582 $3,797
$4,804 $1 „BOB (31,498) ($5,140) ($9,142)
$3,252 $1 ,166 4920) ($3,005) ($5,345)
38% 64% 180% -230% -71%
18% 7% -59. -17% -30%
$9,540 34,791 ($1,240) ($8,826) * * * * * * * * * * * *
$4,977 35,972 $7,166 38,600 $10,320 $12,383
34,563 ($1,181) (38,406) ****** ****** ******
$3,405 ($839) (35,690) ****** ****** ******
52% 125% -578% -97% -56% -41% -33%
18% -4% -30% -59% -9293 -130% -174%