HomeMy WebLinkAbout11/01/83Honorable Mayor and Members
of the City Council
ACTIVITY REPORT
October 28, 1983
City Council Meeting
of November.1, 1983
1. I am pleased to report that the State of Calif-
ornia has completed its Gas Tax audit for the
last two fiscal years. We passed those audits
with flying colors, there being no exceptions
or challenged amounts!
2. The non-profit Hermosa Beach Community Center
Foundation has now received its tax exempt
status number. Donations to the Foundation
will now be tax deductible.
Carpentry work and framing of the Fire head-
quarters remodelling is progressing well.
4. Consistent with the attached'City Attorney
'opinion, the City's agreement with the Hermosa
Beach Community Center Foundation has been
modified, see attached.
GTM/ld
Attachment
� �h
Gre ory T. Meyer
Cit Manager
TO: Mayor, City Council DATE: October 27, 1983
and City Manager
FM: Charles J. Post
City Attorney
RE: APPROPRIATION TO COMMUNITY CENTER FOUNDATION AND
CHAMBER OF COMMERCE FOR CHRISTMAS DECORATIONS
At its meeting of October 25, 1983, the City Council ap-
proved a $25,000.00 expenditure for• the Community Center Founda-
tion and a $5,000.00 expenditure for Christmas decorations to be
paid for by the. City and Chamber of Commerce. This memorandum
memorializes my advice to. you at the meeting regarding the legal-
ity of these expenditures.
the
six
the
As to . the expenditure for the Community Center Foundation,
request was for a loan for the purpose of funding the first
monthsof operation of the Foundation and to partially fund
grand -opening of the auditorium on New Year's Eve. The City
Council authorized the expenditure as an appropriate expenditure
funds from the Parks and Recreation Facilities Tax Fund not 'as a
loan. If the Foundation repays the money, it would be in the
nature, of .a donation to' the. Parks and Recreation Facilities Tax
Fund. This is. because Article 16, Section°6 of the State Consti
tution- prohibits the City from loaning money to a private corpo-
ration to. pay its debts.
The City is :authorized to utilize money from the Park and
Recreation Facilities Tax Fund (iiBMC, Article 5, Section 3.0-35
et seq., "solely for the acquisition, improvement, and expansion
of,public park;'playground and/or recreation facilities." (HBMC,
Section 30-35). The City is further authorized by Government
Code Section 37110 to spend up to 5% of the money accruing to the.
General Fund in any fiscal year for music and promotion. Govern-
ment Code Section 37112 allows the City'to do things necessary
and proper to carry out any of its powers.
Since the Community Center is a'facility'providing recrea-
tional benefit'to a significant portion of Hermosa residents, and
since the Community Center Foundation has as its sole objective
the furtherance of the programs, property, plant and facility of
the Community 'Center, it is my opinion that the expenditure is
reasonably related to the accomplishment of a proper municipal
objective. Similar 'expenditures have been upheld in Jarvis vs.
Bloodgood, (1972) 29 Cal. App 3d 694, 102 CR 212 (expenditures to
Page 2
support an.opera performance); Chamber of Commerce vs. Stephens,
212 Cal. 607 (expenditure for advertising the advantages of a
City. through a contract with the Chamber of Commerce); Adams vs.
Zeigler, 22 Cal. App 2d 135 (expenditures for summer music and
drama program)! The determination of what constitutes an appro-
priate public purpose is primarily a matter for legislative dis-
cretion which'. is not disturbed by the Court so long as it his a
reasonable basis. County of Alameda vs. Jassen, (1940) 16 Cal.
2d 276, 106 P'2d 11; -Oakland vs. Williams, (1929) 206 Cal. 315,
274 1:,328.
The authority and analysis listed above support the expendi-
ture for the Christmas decorations as well. Advertising and pro-
moting the benefits of the City is appropriate. The City might
wish: to consider becoming the owner of the Christmas decorations
when they are paid fon in an amount equal to the City's contribu-
tion to the total price. I. do not believe this would be re-
quired, however, since the advertising benefit is sufficient
return -to -the City.
Respectfully submitted,
fiateo
CHARLES J. POST
MINUTES OF THE REGULAR ADJOURNED MEETING of the City Council of .the
City of Hermosa Beach, California, held on Tuesday, November 1, 1983
in the Council Chamber at City Hall at the hour of 7:30 P.M.
PLEDGE OF ALLEGIANCE - Led by City Attorney Charles J. Post
ROLL CALL
Present: Barks, Brutsch,:Webber, Wood, Mayor Schmeltzer
Absent: None
DISCUSS'ION . AND STUDY 'SESSION 'RE BILTMORE` SITE HOTEL PROPOSALS.
SUBMIXIAL OF PROPOSALS TO' THE CITY FOR A HOTEL ON THE BILTMORE
SITE.: Memorandum from Planning Director Pamela Sapetto�dated
-October 26, 1983._
The staff presentation was made by City Manager Gregory Meyer
and. Planning: Director.- Pamela Sapetto.
Noting that there were three developers in the audience to
present proposals, Mayor Schmeltzer ruled that each limit
his.' presentation to ten minutes.
Presentations were as follows
THOMAS" UNDERLY DESIGN AND MANAGEMENT, INC., Sacramento (HILTON)
Tom_ Underly of Thomas. Underly Design presented renderings of their
proposed building which would be composed of 205 rooms, a con-
vention centeron_ the second floor and a restaurant on . the "first
floor. Parking would'be off-site at either of two locations -
a three or four -level structure at 13th Street and Hermosa Avenue
oris_ structure. -on --the City -owned lot next to the Civic Center.
Questions from Council were directed to and answered as follows:.
Tom Underly -.Thomas Underly Design and Management, Inc.
Number _of:on-site parking spaces needed?
300 -spaces to service hotel - these would be guest parking
:.spaces and would be remote and serviced by valet parking.
Expansion intentions
No desire to expand now or in the near future.
— Dave Wilcox, Economic Research -
Economic feasibility with 40 rooms per floor?
Excellent - no resort/beach hotels per se in this
. _ ; part _of` the.:: County
Hilton-has.the best national reservations system in the
business.
Probability of success?
85% - Only one ocean; at and
c. . Daily occupancy?
70-75% - Summer - 100%
Fall thru Spring - 65%
Saturation point of hotel rooms of this quality
Hermosa Beach?
on
the beach.
Could support -`400 rooms:-att1east.=l
• Gross revenue to operator?
$11., 000, 000/year after. 5th year.
CALIFORNIA' INN `MANAGEMENT,. Kansas' City
in
Steve Craig:California
.. .,, ..z.,.. ,.
ofCalTifornia Inn Management. stated theyhave
developed, owned and operated 77 hotel facilities in 23 states
and. 59 cities over the past 30 years. Their approach to this
request for a proposal was handled in a different fashion than
the other proposers in that they took their Ventura Holiday
Inn project and adapted it to Hermosa Beach.
Questions from Council were directedto and answered as:follows:
Steve Crain California Inn Management
Economic viability : established?:
-40-50=manhours;were-expended '. to determine the viability
and feasibility which produced a very positive report.
Parking?
No on site parking...:Parking/parking`, structure was antopen
uestun etc}' be'tnegotiated .with.f the -City;„ 'a
250 rooms or 196 rooms?
250-270 rooms to be 'proposed. after reanalyzing the
facts. Also included would be meeting facilities with
a kitchen, two restaurants and a'small atrium.
• Lowercost per room than:other`proposals?
No parking costs included nor the amortization of the
rent for the land.
▪ Would California Inn Management provide the 300 parking
spaces'off-site at their. own' expense?
They would need to determine what the cost would be -
at $7,000 per space wouldalter :financial projections:
Minutes 11-1-83
. Are you interested in continuing with your proposal?
Very definitely interestedif they could lease parking.
spaces provided by the City - if they had to build a
parking structure it would have to be looked at
mathematically. Financially they would have no
problem completing the' project.
GREENWOOD/AND LANGLOIS, Santa. Monica. (DOUBLETREE INN)
Joe Langlois of Greenwood and Langlois addressed the Council,
'on behalf of his firm. and that of his co -development partners
(Doubletree Inn and Metropolitan.. Life Insurance Company). He
addressed specific problems ofdesign (not ultra -modern),
public meeting rooms -=(accommodations for 870 persons); 250
rooms, 2' restaurants. Mr. Langlois stressed the joint venture
nature of the, ;prof ec
Dave `:Scherf, '`Director of - Development for Doubletree
'Aarons'of'•HNTB.also addressed the Council.
`<�.�;;�� t (� i } jr:.', t � ��` i ( � rs �: " g i tfl, d}aa • e�7' ($
_ .�.:,7- w �. � S i '_fir a..� ..�s ti f5{'�`�• �' �
Questions from Council were answered as follows:
(a) °Economic viability studies
arketis there based on other local studies.
onstruction cost per.
}$65,000-$74,.000 per room plus $7,500/room for parking.
Planning;:Director _ Sapetto and Jim Williams of M. S I :''reiterated
the staff recommendations:
City Manager ''Meyer` summarized urging: that particular attention
be paid to the design criteria, to the financing and lease
arrangements, to development of specifics on the parking, and
full assurance that construction of the project would move
ahead in a timely manner.
ACTION Assuming enactment of Proposition E, to
1) Accept the three hotel proposals of Underly Design and
Management, Greenwood/Langlois-Doubletree, and California
Inn Management as viable and worthy of consideration.
_2) Direct the Biltmore Site Committee to further analyze
the three proposals for the purpose of determining the most
favored overall proposal, developing a matrix of
characteristics and developers placing them in rank order,
said review/preference to be submitted to your. Honorable
Body on or before January 10, 1984.
3) To assist the Biltmore Site Committee and Staff in
the evaluation process, retain the services of Mr. Jim
Williams, Vice President of MSI, not to exceed $5,000;
said costs to be borne by the Prospective Expenditures
Fund.
Motion Webber, second Brutsch
AYES - Barks, Brutsch, Webber, Mayor Schmeltzer
NOES Wood..:
ayor„Schmeltzer announced that there would be a vote count
at City Hall on Election Day, November 8, 1983 at 8:30 P.M.
.AWARD OF LIABILITY, AND PROPERTY. INSURANCE Memorandum from
-.City Manager:Gregory T., Meyer..., dated. October 27,.1983.
City Manager Meyer presented the staff report
°+j• r, „7�G+t �` �i`�n.� `�i t'�� !t x �, t' zt1�;4LP ! h k y � t � ,� �, j � y � e3,a � s `F �r`�.
ACTION To accept the. proposal of`Cal-Surance Associates.:
Inc.."'for Iiablity, 'property 'andearthquake insurance and .
authorize the City Manager to endorse said policies' not.to
exceed $75,819.00 in, premiums ,rtz
Motion: Wood, s'second Webber
AXES - Brutsch, Webber, Wood, Mayor Schmeltzer
NOES .- .Nonet ` t�s
SENT ---Barks!
AN ORDINANCE ESTABL•I•SHING A PARKING METER ZONE ON THE WEST SIDE
OF_.,HERMOSA AVENUE—BETWEEN " •1.4 th STREET AND l•5•th COURT. Memorandum
from Public Works Director Charles Clark dated October 27, 1983.
Withdrawn 4�f w l t 1 n 2 i 2r t
ORDINANCE -.,NO. '83-742 .. AN ORDINANCE OF THE -CITY COUNCIL ALLOWING
,THE : CITY TO' 'CONS•IDER ':DEVELOPMENT AGREEMENTS UNDER GOVERNMENT
-::CODE •SECTIONS' 65864 65869'.5. For waiver of further reading
and:: adoption. Memorandum from City Clerk Charlotte Malone
dated‘.November l .1983
... /
City -Attorney Post' noted ” an error ' on line 2 0 , page 1 -' Sect
number should read 65864.
J� a�>� t ; r t ,
�y .y S i fir}
4r kir. ..x �it 'e :.,r r....•,. _ .t.. .—? a 'v s.,
.ACTION. To -waive.:,further reading of Ordinance No..: 83-742. :
entitled "AN'ORDINANCE'OF THE CITY COUNCIL ALLOWING THE CITY
TO ;CONSIDER DEVELOPMENT AGREEMENTS UNDER GOVERNMENT CODE
-:SECTIONS-6586445869.5." = F
:Motion Mayor-'Schmeltzer,'; second Brutsch. So•ordered
FINAL. ACTION -:`To,adopt Ordinance. No. 83-742.
Motion Mayor Schmeltzer, second Brutsch
AYES Barks,:Srutsch, Webber, Mayor Schmeltzer
NOES Wood
5. CLAIM FOR DAMAGES: Richard L. Everett, 916 Beach Drive,
Hermosa Beach, represented by Jon Bryant Artz, Attorney at Law,
10850 Wilshire Boulevard, 4th Floor, Los Angeles, filed
October 24, 1983.
ACTION - To deny claim and refer to .this City's insurance
carrier.
Motion Wood, second Brutsch
AYES - Barks, Brutsch, Webber,° Wood, Mayor Schmeltzer
NOES: None
6. MISCELLANEOUS ITEMS -AND REPORTS CITY MANAGER
(a) Activity Report. Memorandum from City Manager Gregory T.
Meyer dated November 1, 1983.
ACTION -.To receive and file.
Motion Wood, second Brutsch. So
ordered.
Requestffor Closed Session. 11/15. Memorandum from
City Manager Gregory T. Meyer dated November 1, 1983.
ACTION To convene a closed session at 6:30 -P.M.
Tuesday,' November 15, 1983 for the purpose
confer:and matters of litigation.
Motion Wood, second Webber. So ordered.
MISCELLANEOUS -ITEMS AND REPORTS CITY COUNCIL
on
of meet and
(a) Council /School Sub -committee Report - Mayor Schmeltzer
"Mayor. Schmeltzer reported"that there was to be a meeting
of the Council/School Sub -committee Wednesday evening,'
November 2 and he.would have a.full report for Council
gat the next meeting, November 15.
Councilmember Webber was wished a Happy Birthday.
ADJOURNMENT
On the order of the Chair, this meeting was adjourned on November 1,
1983 at the hour of 9:10 P.M. to a Regular Meeting to be held on
November 15, 1983in the Council Chamber, City Hall at the hour of
7:30 P_M_ preceded by a Closed Session at 6:30 P.M.
Minutes 11-1-83