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Home My WebLink About07/05/84,0 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Thursday, July 5, 1984 in the Council Chamber, City Hall at the hour of 6:30 P.M. PLEDGE OF ALLEGIANCE - City Manager Meyer ROLL CALL Present: Barks, Cioffi, DeBellis, Mayor Brutsch Absent: Wood 1. SOUTH BAY UNION HIGH SCHOOL DISTRICT REQUEST FOR PROGRAM FUNDING. Memorandum from Mayor ProTem George Barks dated June 28, 1984. City Manager Gregory T. Meyer presented the staff report noting thatshould the staff recommendation to award a grant of $22,000 to the District be approved, these monies would have to be appropriated from the Prospective Expenditures Fund as this is not a budgeted item. Mayor Pro Tem Barks was questioned by Council regarding the differential between the shortfall of $92,000 (83-84) and the School District's request for $193,000. Mr. Barks indicated that certain income (transportation and uniform costs borne partially by students) was not shown on this cost analysis. When questioned re the method of repayment if a grant was approved, Mr. Barks stated that this was to be determined by the City Managers of the three South Bay cities involved along with their finance departments. PROPOSED ACTION - To direct the City Attorney to prepare a contract with the South Bay Union High School District in which the City will award a grant of $22,000 to the District to partially fund all co -curricular activities for school year 84-85 only, to be repaid by June 30, 1986. Motion Barks, second DeBellis AYES - Barks, DeBellis NOES - Cioffi, Mayor Brutsch Motion fails. 2. RESOLUTION OF INTENTION TO CREATE A CITY-WIDE COMMUNITY FACILITIES DISTRICT PURSUANT TO THE MELLO-ROOS ACTOF1982. Letter from Pamela S. Swift to Douglas W. Ayres, MSI, dated June 27, 1984. Supplemental information Memorandum from City Manager Gregory T. Meyer dated July 5, 1984. City Manager Meyer presented the staff report. Councilman DeBellis questioned the $145 per dwelling unit for 30 years., this being a higher figure that originally discussed. Mr. Meyer stated that this figure assumes no additional income to affect the debt. Mr. Roy Stephenson of. Berryman & Stephenson, Inc, assessment engineer, answered questions of staff and Council regarding the tax per dwelling unit. He stated that the $145 was the maximum rate but that the actual rate would be approximately $139 per dwelling unit. This number would be firmed up prior to the public hearing. -1- Minutes 7-5-84 RESOLUTION OF INTENTION - COMMUNITY FACILITIES DISTRICT (continued) Mr. Meyer responded to questions of Council regarding expenses related to the issuance of the bonds. He stated that approximately $500,000 would be neededfor issuance expense $1.5 million which would have to be set aside as debt service reserve. Both of these are figured into the $13.5 million. Mr. Stephenson advised that discounts of 15-25% could be given to multiple units if that is the pleasure of the Council. If the bond issue was apportioned equally to all residential and commercial properties, a per parcel levy per year would be $213. After lengthy Council discussion, the following actions were taken. (1) ACTION To adopt the tax resolution stating the City's intention to establish a Community Facilities District #1, authorizing annual levy of a special tax, fixing a time and place of a public hearing and amending exhibit A to reflect a per unit residential cost of $126 plus or minus, and $.14 per square foot plus or minus for commercial as follows: Resolution No. 84-4727 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, STATING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 1, AUTHORIZING THE ANNUAL LEVY OF A SPECIAL TAX, FIXING THE TIME AND PLACE OF A PUBLIC HEARING." Motion DeBellis, second Mayor Brutsch AYES - DeBellis, Cioffi, Mayor Brutsch NOES - Barks ABSENT - Wood (2) FURTHER ACTION - To adopt Resolution No. 84-4728 entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DECLARING ITS INTENTION TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $13,500,000 (THIRTEEN MILLION FIVE HUNDRED THOUSAND) WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT #1 OF THE CITY OF HERMOSA BEACH, FIXING THE TIME AND PLACE OF A PUBLIC HEARING. Motion Mayor Brutsch, second Barks So ordered. (3) Landscaping Maintenance District ACTION - To table creation of the Landscaping Maintenance District. Motion DeBellis, second Mayor Brutsch So ordered. (4) South School Property/School District ACTION - To direct City staff to meet with School District personnel for the purpose of reporting back re what income producing endeavors might jointly proceed regarding the South School property - said report to be part of the July 24, 1984 agenda. Motion Barks, second Mayor Brutsch So ordered. -2- Minutes 7-5-84 RESOLUTION OF INTENTION - COMMUNITY FACILITIES DISTRICT (continued) (5) Railroad Right -of -Way ACTION - To direct the City's AT&SF negotiator to consummate an acquisition of the railroad right-of-way subject to passage of Mello -Roos as authorized in the previous action. Motion DeBellis, second Mayor Brutsch So ordered. 3. BALLOT MEASURES FOR THE NOVEMBER, 1984 ELECTION a. Amendment of Civil Service Ordinance re Political Activities City Attorney Post advised Council that this measure had already been written b. Landscaping Maintenance District This item had been tabled by previous action of the City Council. c. Hydrocarbon Recovery The staff report was presented by City Attorney Post who stated that what is to be considered by the City Council is the wording on two exceptions to the oil drilling ban - City Maintenance Yard and South School. The school site oil issue would only become operative if Mello -Roos and oil drilling at the Maintenance Yard failed. Councilman Barks stated that this was not his understanding. It was stated by a member of the audience (Karen Gale) that the oil issue is to be separate from Mello -Roos. The School District would have the mineral rights and the City would own the property. Wilma Burt stated that the law was unclear in that we have wells on the yard site and the City could modernize without a vote of the people - only extra drilling would require a vote of the people. It must be limited to site specific or the people will never approve the measure. City Clerk Reviczky reported that the final motion accepted by the School Board, pending legal opinion was as follows: "To adopt the Joint Powers purchase for $3.5 million. The City would give them a line of credit to begin their construction; the School Board would maintain the mineral rights; they would have reversion rights if the property was not used as open space, exclusing the .87 acre built-up area; that the rezoning of South School would begin immediately western .87 acre to R-3 and completed within 90 days, contingent on the failure of Mello -Roos and they amended the motion to include mineral rights on the entire site." -3- Minutes 7-5-84 HYDROCARBON RECOVERY BALLOT MEASURE (continued) Karen Gale of the Hermosa Beach School Board stated that the Board was under the impression that there would be two separate ballot measures concerning oil drilling - one for drilling at the City Maintenance Yard and one for drilling at South School. City Clerk Reviczky advised that a motion had been generated by the City Council to propose an exception to oil drilling at South School if Mello -Roos failed. Council had agreed and then the School Board had countered. City Attorney Post stated that rezoning would begin and become operative if Mello -Roos failed. He also advised that the issue of oil drilling on the South School site could be put on the ballot on behalf of the School District without Council taking a position on the issue. The School District, to put a measure on the ballot, would have to go through a petition process which could not be done in a timely fashion for the November election. Mr. Post stated that oil drilling at South School could be made contingent on the failure of Mello -Roos (drilling at the City Yard site) . After lengthy discussion, the following ordinance pertaining to amending the prohibition against oil wells was approved by Council with the addition as noted: ACTION - To adopt Ordinance No. 84-758 - AN ORDINANCE OF THE CITY OF HERMOSA BEACH SUBMITTED TO THE VOTERS BY THE CITY COUNCIL AMENDING THE PROHIBITION AGAINST OIL WELLS TO ALLOW FOR THE PROCURE- MENT OF OIL AND GAS FROM CERTAIN CITY OWNED LANDS with the addition of the following paragraph: SECTION 1 - line 14 - "A. The revenue derived by the City from this site shall be used first to reduce any bonded indebtedness resulting from the enactment of Community Facilities District Number 1, which district would acquire the South School site, the Seaview Parkette, and the railroad right- of-way; and, second the acquisition, maintenance and improvement of available excess school or other properties for open space and parkland purposes." Motion DeBellis, second Mayor Brutsch So ordered. FURTHER ACTION - To adopt Ordinance No. 84-759 - AN ORDINANCE OF THE CITY OF HERMOSA BEACH SUBMITTED TO THE VOTERS BY THE CITY COUNCIL AMENDING THE PROHIBITION AGAINST OIL WELLS TO ALLOW FOR THE PROCUREMENT OF OIL AND GAS FROM CERTAIN LANDS OWNED BY THE HERMOSA BEACH SCHOOL DISTRICT with the addition of the following: -4- Minutes 7-5-84 HYDROCARBON RECOVERY BALLOT MEASURE (continued) Line 13 - Add: "The revenue derived by the School District from this site shall be used only for educational purposes." Motion DeBellis, second Barks. So ordered. d. Mello -Roos (discussed as item 2) ACTION - To ask two members of the School Board and three members of the City Council to write the argument in favor of the Mello -Roos ballot measure. Motion Cioffi, second Mayor Brutsch. So ordered City Manager Meyer advised Council that the language for the impartial analysis of the Mello -Roos measure would be presented to Council on July 10. Wilma Burt made a point of order requesting that Councilman Barks. in his argument in favor of the Civil Service ballot measure, refer to this measure as changing People's Ordinance NS 211. e. People's Initiative re Open Space Lands Councilman DeBellis will write the argument against this People's Initiative. (Withdrawn by Councilman DeBellis.) Councilman DeBellis asked for a reconsideration of agenda item #1 - South Bay Union High School District Request for Funds. There being no opposition the following actions were taken. PROPOSED ACTION - To award a grant of $22,000 to South Bay Union High School District to be repaid in one year at an interest rate of 10%. Motion DeBellis SUBSTITUTE ACTION - To agree in concept to South Bay Union High School District's grant of $22,000, the City Manager to return with further details. Motion Barks, second DeBellis AYES - Barks, DeBellis NOES - Cioffi, Mayor Brutsch Motion fails Prior to the vote on the above proposed substitute action, lengthy discussion ensued. City Manager Meyer advised that repayment cannot be demanded. Other devices are available to School Districts such as fund raisers in the community by non-profit groups. City Manager Meyer was requested to contact the Superintendent of the South Bay Union High School District and share with him the concerns of various Councilmembers and also consider in his final recommendation to Council a possible interest rate. Wilma Burt questioned the School District asking for $100,000, not $190,000, the repayment question and felt that the City should not bail out the District. -5- Minutes 7-5-84 ADJOURNMENT On the order of the Chair, the Adjourned Regular Meeting of the City Council of the City of Hermosa Beach was adjourned on July 5, 1984 at the hour of 9:20 P.M. to a Regular Meeting to be held on Tuesday, July 10, 1984 at the hour of 7:30, preceded by a Closed Executive Session at 6:00 P.M. -6- Minutes 7-5-84