HomeMy WebLinkAbout01/17/2012 - City CouncilMINUTES OF THE REGULAR MEETING OF THE COSTA MESA CITY COUNCIL
JANUARY 17, 2012
CALL TO ORDER
The meeting was called to order by the Mayor at 5:00 p.m. in the Council Chambers at
Costa Mesa City Hall, 77 Fair Drive, Costa Mesa, California.
ROLL CALL
Present: Mayor Monahan, Mayor Pro Tem Righeimer, Council Member Bever,
Council Member Leece, and Council Member Mensinger
Absent: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS None
CLOSED SESSION
The City Council recessed into closed session at 5:02 p.m. to consider the following
items:
1. Conference with Thomas R. Hatch, Chief Executive Officer, and Labor
Negotiator, Agency Negotiator regarding Employee Organizations: Costa Mesa
City Employee Association (CMCEA), Costa Mesa Firefighters Association
(CMFA), Costa Mesa Police Officers Association (CMPOA) and Costa Mesa
Police Management Association (CMPMA), Costa Mesa Fire Fighters
Management Association, and Costa Mesa Division Managers Association
pursuant to Government Code Section 54957.6
2. Conference with legal counsel regarding existing litigation: Costa Mesa
Employees Association v. City of Costa Mesa, a municipal corporation, et al.,
Orange County Superior Court Case No. 30-2011 00475281, pursuant to
Government Code Section 54956.9(a).
3. Conference with legal counsel, regarding existing litigation: Trinity Herbal
Cooperative v. City of Costa Mesa (Case No. 30-2011 00479478); City of Costa
Mesa v. D'Alessio Investments LLC (Case No. 30-2011 00468876); Orange
County Directors Association v. City of Costa Mesa (Case No. 30-2010-
00364374); and Newport Mesa Patients' Association and Tri -County Patients'
Association v. City of Costa Mesa; Newport Mesa Patients' Association v.
Colleen O'Donoghue, Real Party in Interest City of Costa Mesa: Orange County
Superior Court Case No. 30-2010 00370142 [consolidated cases] pursuant to
subdivision (a) of Government Code Section 54956.9.
The City Council reconvened at 6:44 p.m.
City Council Meeting — January 17, 2012 - Page 1
PLEDGE OF ALLEGIANCE - Council Member Bever
MOMENT OF SOLEMN EXPRESSION - Pastor Phyil Eyksens, The Lighthouse Costa
Mesa
ROLL CALL
Present: Mayor Monahan, Mayor Pro Tem Righeimer, Council Member Bever,
Council Member Leece, and Council Member Mensinger.
Absent: None
Officials Present: Chief Executive Officer Thomas R. Hatch, City Attorney
Thomas Duarte, Interim Development Services Director Khanh Nguyen,
Economic Development Director/Deputy CEO Peter Naghavi, Public
Services Director Ernesto Munoz, Finance and IT Director Bobby Young,
Public Affairs Manager Dan Joyce, Director of Communications Bill
Lobdell, City Clerk Julie Folcik.
CLOSED SESSION REPORT None
ANNOUNCEMENTS (00:03:30)
"Costa Mesa Minute" was played featuring upcoming events and activities in the
community.
PUBLIC COMMENTS (00:05:16)
Jay Humphrey, Costa Mesa, thanked staff for the removal of a tree near California
School, and spoke about charter committees and the Council meeting videos.
(00:06:07)
Beth Refakes, Costa Mesa, spoke about the proposed charter, the 19th Street Bridge, a
potential 60th city anniversary celebration, and personal attacks on residents by Council
members; and congratulated Dane Bora and Brad Long on their Gordon Bowley
Leadership in City Government award recognition. (00:09:09)
Perry Valantine, Costa Mesa, commented on the proposed charter and a conflict of
interest provision. (00:11:34)
Sheila .Pfafflin, Costa Mesa, reiterated a previous speaker's comments regarding
personal attacks on public speakers. (00:13:00)
Deb Haynes, Costa Mesa, spoke in opposition to the proposed 19th Street Bridge and
the Banning Ranch development. (00:13:28)
City Council Meeting — January 17, 2012 - Page 2
Sandra Genis, Costa Mesa, expressed opposition to the 19th Street Bridge and spoke
about the charter. (00:15:03)
Peter Haynes, Costa Mesa, urged Council to adopt a resolution opposing the 19th
Street Bridge, and expressed opposition to the Banning Ranch development. (00:17:02)
Robin Leffler, Costa Mesa, provided an overview of Costa Mesans for Responsible
Government, and commented on the charter. (00:18:08)
Michelle Simpson, Costa Mesa, commented on the charter and expressed opposition to
the 19th Street Bridge. (00:21:20)
Ron Frankiewicz, Costa Mesa, inquired about the process to remove the 19th Street
Bridge from the Master Plan, and spoke about revitalization of the Westside and about
the charter. (00:23:16)
Tamar Goldmann, Costa Mesa, commented on the January 10 charter public hearing
and about committee elections and appointments. (00:26:51)
Peter Mills, Costa Mesa, spoke about taxes and the proposed city charter. (00:30:05)
Sandie Frankiewicz, Costa Mesa, expressed opposition to the proposed 19th Street
Bridge, and commented on etiquette at the council meetings. (00:32:00)
Greg Thunell, Costa Mesa, commented on the proposed charter and the outsourcing of
city services, and expressed concern in the cost of attorneys. (00:35:44)
Cindy Brenneman, Costa Mesa, stated opposition of the 19th Street Bridge and the
Gisler Street Bridge, commented on the personal attacks on residents, and urged the
formation of a charter committee. (00:40:23)
Sue Lester, Costa Mesa, shared her positive experience at the Mesa Verde Golf Classic
tournament fundraiser, inquired about the accessibility of city committee members, and
expressed concern regarding the lack of medical marijuana language in the charter.
(00:41:42)
Martin H. Millard, Costa Mesa, made recommendations for revitalizing the Westside,
suggested a Westside revitalization committee, and spoke in support of the proposed
city charter. (00:44:33)
Sandy Johnson, Costa Mesa, spoke in opposition of the 19th Street Bridge and Banning
Ranch development. (00:47:32)
Mayor Pro Tem Righeimer commented on the charter process, unfunded pension
liabilities, and the City's budget.
City Council Meeting — January 17, 2012 - Page 3
REPORT — CHIEF EXECUTIVE OFFICER (CEO) (01:00:18)
CEO Hatch responded to comments from public speakers and provided the following
updates:
Referred to a public speaker's comments regarding video feeds, noted that the written
minutes are the official records, and stated that gaps in video feeds rarely happen;
announced that a staff report to address the 19th Street Bridge is scheduled for the
February 7 Council meeting; responded to an inquiry from a public speaker regarding a
60th anniversary celebration of the city, and stated that it would be considered as part of
the budget process; referred to a public speaker's comments regarding contact
information for commissioners, and indicated e-mails are listed on the city's website;
announced that staff will bring forward the proposal for a "19th Street West" sign; stated
the Westside plans are accessible on the city's website; responded to an inquiry
regarding the availability of an ombudsman to assist residents and businesses with
development, and indicated that an Economic Development Director position had been
created to supplement current city staff in providing development assistance;
announced that suggestions for the charter would be included on the suggestions list on
an on-going basis and would be available to the community, and the City Attorney
briefly commented on obtaining code of ethics and elections provisions; announced
upcoming meetings in Newport Beach regarding the Banning Ranch Development;
announced upcoming dates for upcoming meetings regarding the budget, charter, and
the Homeless Task Force; shared the start date for Assistant Chief Executive Officer
Rick Francis and announced a meet -and -greet; and provided an update regarding the
outsourcing and Request for Proposal (RFP) process, and indicated the current
schedule and other information are on the website.
CONSENT CALENDAR (01:19:38)
LOTION: Approve recommended actions for Consent Calendar Item Nos. 1 through 7
except for Item Nos. 3, 4, 6, and 7.
MOVED/SECOND: Mayor Monahan/Mayor,Pro Tem Righeimer.
The motion carried unanimously.
1. READING FOLDER
(a) Claim received by the City Clerk: David Holbrook.
(b) Request for Alcohol Beverage Control licenses: EI Corazon, 1875 Newport
Boulevard, Suite 210.
ACTION: Received and processed.
2. MINUTES: REGULAR MEETING OF JANUARY 3, 2012
ACTION: Approved.
City Council Meeting — January 17, 2012 - Page 4
5. AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH SIEMENS
INDUSTRY, INC., 10775 BUSINESS CENTER DRIVE, CYPRESS, FOR
HEATING VENTILATION AND AIR CONDITIONING MAINTENANCE
SERVICES, AND TO EXTEND THE TERM THROUGH JULY 31, 2012.
ACTION: Approved; authorized the Chief Executive Officer and City Clerk to
sign.
ITEMS REMOVED FROM THE CONSENT CALENDAR (01:20:20)
3. WARRANT RESOLUTION 2402: A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF COSTA MESA, CALIFORNIA, ALLOWING CERTAIN CLAIMS
AND DEMANDS, INCLUDING PAYROLL REGISTER NO. 11-26 AND
SPECIFYING THE FUNDS OUT OF WHICH THE SAME ARE TO BE PAID,
funding Payroll No. 11-26 for $2,088,338.25, and City operating expenses
for $1,853,421.45, including payroll deductions. (01:20:20)
Tamar Goldmann, Costa Mesa, referred to the legal fees and supported a
restriction on legal fees.
Council Member Leece stated she did not support outsourcing, and that the legal
fees could have been prevented.
MOTION: Approve Warrant Resolution 2402.
MOVED/SECOND: Mayor Monahan/Mayor Pro Tem Righeimer.
The motion carried unanimously.
4. WARRANT RESOLUTION 2403: A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF COSTA MESA, CALIFORNIA, ALLOWING CERTAIN CLAIMS -
AND DEMANDS, INCLUDING PAYROLL REGISTER NO. 12-01 AND
PAYROLL REGISTER NO. 11-26A AND SPECIFYING THE FUNDS OUT OF
WHICH THE SAME ARE TO BE PAID, funding Payroll No. 12-01 for
$3,799.22 and Payroll No. 11-26A for $2,125,773.63, and City operating
expenses for $845,554.10, including payroll deductions. (01:24:30)
MOTION: Approve Warrant Resolution 2403.
MOVED/SECOND: Mayor Monahan/Council Member Leece.
The motion carried unanimously.
6. RENEWAL OF THE USE AGREEMENT WITH HARBOR SOARING SOCIETY,
POST OFFICE BOX 1673, COSTA MESA, FOR THE USE OF A PORTION OF
FAIRVIEW PARK FOR RADIO -CONTROLLED MODEL AIRCRAFT, FOR A
TERM OF ONE (1) -YEAR.
City Council Meeting — January 17, 2012 - Page 5
Jay Litvak, Costa Mesa, expressed concern regarding endangered species at
Fairview Park and opposed any laying of asphalt on the runway. (01:24:52)
In response to questions from Council Member Leece regarding the term of the
agreement renewal and the paving of the flight area, Interim Public Services
Director Ernesto Munoz clarified that there was no proposal to pave any of the
areas, and an annual renewal in lieu of a five-year renewal would allow more
flexibility for the city to review the agreement. (01:27:00)
MOTION: Approve; authorize the Mayor and City Clerk to sign
MOVED/SECOND: Mayor Monahan/Mayor Pro Tem Righeimer.
SUBSTITUTE MOTION: To extend the renewal of the use agreement for a term
of five (5) years; approve; and authorize the Mayor and City Clerk and sign.
MOVED/SECOND: Council Member Leece.
The motion died for a lack of a second.
The original motion carried unanimously.
7. RESULTS OF PAYROLL AUDIT CONDUCTED BY LANCE, SOLL,
LUNGHARD, LLP.
Council Member Bever expressed concern in the findings and the exclusion of
a paycheck audit in the report. (01:29:56)
Council Member Leece spoke in support of the motion. (01:31:25)
MOTION: Receive and file.
MOVED/SECOND: Mayor Monahan/Mayor Pro Tem Righeimer.
The motion carried unanimously.
Mayor Monahan recessed the Council meeting at 8:15 p.m. and convened the special
joint meeting of the City Council and Redevelopment Agency.
SPECIAL JOINT MEETING OF THE CITY COUNCIL AND REDEVELOPMENT
AGENCY
ROLL CALL
Present: Mayor/Agency Member Gary Monahan, Mayor Pro Tem/Agency Chair Jim
Righeimer, Council/Agency Member Eric Bever, Council/Agency Member
Wendy Leece, Council Member/Agency Vice Chair Stephen Mensinger
Absent: None
City Council Meeting — January 17, 2012 - Page 6
Officials Present: Executive Director/Chief Executive Officer Thomas R.
Hatch, City Attorney Thomas Duarte, Assistant Director Khanh Nguyen,
Interim Public Services Director Ernesto Munoz, Finance and IT Director
Bobby Young, Neighborhood Improvement Manager Muriel Ullman,
Management Analyst Alma Penalosa, Agency Special Counsel Celeste
Brady, City Clerk Julie Folcik.
CLERK'S STATEMENT
The Agenda and Notice and Call for the Special Joint Meeting of the City Council and
Redevelopment Agency were posted at the City Council Chambers, Adams Postal
Office, Headquarters Police Department, Neighborhood Community Center and the
Mesa Verde Public Library on Friday, January 13, 2012.
PUBLIC COMMENTS
Jay Humphries requested confirmation regarding the $10 million dollar loan. He wanted
to know if the loan was a protected obligation and the State could not take the money or
if it was still up in the air and the City should have taken the $1.5 million. Mr. Humphries
also asked when the public would have the opportunity to respond to the earlier
comments made by Mayor Pro Tem/Agency Chair Jim Righeimer.
Sandra Genis asked if this would be the last meeting of the Redevelopment Agency.
Ms. Brady reported the Agency could hold another Special meeting through January 31,
2012. Effective February 1, 2012, the City of Costa Mesa would be the Successor
Agency to the Costa Mesa Redevelopment and the Costa Mesa Redevelopment
Agency would be dissolved.
NEW BUSINESS
1. ADOPTION OF AMENDMENTS TO THE AGENCY'S ENFORCEABLE
OBLIGATION PAYMENT SCHEDULE ("EOPS") AND INITIAL RECOGNIZED
OBLIGATION PAYMENT SCHEDULE ("IROPS")
Agency Special Counsel Celeste Brady presented the staff report. She reported
there was one Agency resolution and a City Council motion if the Agency
resolution was approved.
Ms. Brady spoke of the August special meeting that was held to prepare and
approve an enforceable obligation payment schedule. She urged members to
include in their motion, if approved, allowing the Finance Director to add the
housing obligations and information (included in the Housing Authority Agenda
item - Attachment 7) to the EOPS and IROPS. The regulatory agreements
relating to affordable housing projects in Attachment 7 were enforceable
contracts that needed to be included in the schedules that were being reviewed
and considered for action.
City Council Meeting — January 17, 2012 - Page 7
The second part of the resolution pertained to the Initial Recognized Obligation
Payment Schedule (IROPS) the Agency approved on September 20, 2011.
There was an opportunity for the Agency to update both schedules before
dissolution of the Agency and the Finance Director had prepared the necessary
modifications that were appropriate at this time.
Ms. Brady advised that unless there was another special Agency meeting before
January 31, 2012, tonight would be the final action taken by the Redevelopment
Agency. The appropriate action would then be for the City Council to move to
accept the Initial Recognized Obligation Payment Schedule. Ms. Brady
mentioned staff would be returning in February with the IROPS because as the
Successor Agency to the Costa Mesa Redevelopment Agency, they would have
to approve the schedule and present it to the Oversight Board.
The importance of the EOPS was emphasized because the existing assets and
monies on deposit with the Agency would be assumed by the Successor Agency.
The funds would be used to pay the obligations during February 1 and May when
the Oversight Board was formed and approved the schedules.
Ms. Brady encouraged the Agency to amend and update the EOPS and IROPS
via the resolution and accept the IROPS as the City Council.
City/Agency Member Eric Bever noticed the $1.3 million dollar payment was not
in the EOPS and asked if they were foregoing the payment. Finance Director
Bobby Young said the current EOPS was for the period of January to June 2012.
The Agency's $1.3 million dollar payment had been made to the City in
November 2011 and was included in the previous EOPS. Council/Agency
Member Bever commented there should have been a column recognizing prior
payments and noted that other columns were not showing appropriate amounts.
Mr. Young referred Council/Agency Member Bever to the IROPS and stated the
$1.3 million dollar payment appeared in the column for the period from October 1
to December 31, 2011.
Council/Agency Member Bever inquired about the 1901 Newport Housing Project
and asked if the $892,000 was an annual cost or a cost to file the project out.
Ms. Brady reported that the 1901 Newport project had undergone changes and in
2011 staff took the project to the Agency for direction. Since the Agency opted
not to cancel the contract, the money had been carrying in the Redevelopment
Agency's budget for a couple of years. Depending on the Council's action
relating to the housing functions, and if as a Successor Agency they desired to
terminate and free up the money, those funds could possibly be available as
existing fund balances to the new Housing Authority if one was formed.
Ms. Brady clarified she could not provide answers relating to the City -Agency
loan as staff was still researching it. Mayor Pro Tem/Agency Chair Jim
City Council Meeting — January 17, 2012 - Page 8
Righeimer asked if the City had confirmed it had back-up documentation proving
they were owed $10 million dollars. Mr. Brady responded that as of today the
City had not yet confirmed.
Council/Agency Member Leece asked what the acronym "TAB" Refunding 2003
stood for. Ms. Brady explained it stood for outstanding "tax allocation bonds" the
Agency had that would be honored as enforceable obligations.
Council/Agency Wendy Leece referred to the EOPS and asked if the $19 million
dollars (line item #6) was the total amount of the outstanding debt. Mr. Young
explained it was the total debt with interest and principal factored in. Prior to the
State's action, the loan was to be amortized in 2023-24, which was supposed to
be the sunset of the Agency.
Council Member/Agency Vice -Chair Stephen Mensinger asked Agency Special
Counsel Brady if she could answer Jay Humphries' questions. Ms. Brady
believed Mr. Humphries' question pertained to the City -Agency loan and
reiterated that she did not have a definitive answer because she needed
supporting documentation.
Council Member/Agency Vice -Chair Mensinger asked how documentation was
lost. Ms. Brady, with all due respect, said she had not received the actual
promissory notes that supported listing of the notes. Council Member/Agency
Vice -Chair Mensinger asked how recorded documentation was lost. Ms. Brady
clarified that a promissory was not a recorded document — a promissory note was
usually kept in a vault and held as a negotiable instrument. Ms. Brady was still
waiting to receive and review the formalistic loan agreements.
Finance Director Young mentioned that the documentation that was being
researched dated back to 1970's. The loan was not a lump sum loan and had
been amended many times. Staff was compiling paperwork and bringing it
together to verify if it qualified under the statue of the law. Member Mensinger
asked if staff had found the amendments and not the loan. Mr. Young said staff
was pulling it together to make sure they had one complete package. Member
Mensinger asked if staff had found any of the documents — Mr. Young responded
in the affirmative. Member Mensinger asked how long it was going to take before
staff could provide one complete package. Mr. Young did not have an answer
and added staff wanted to ensure they had all the documentation so that when
they returned and made a declaration on it they could support it. Ms. Brady
mentioned the ultimate decision would be up to the County Auditor Controller, the
Department of Finance, the State Controller's Office and the Oversight Board.
Mr. Young added the City -Agency loan was on the EOPS and IROPS until a
determination could be made.
Mayor Pro Tem/Agency Chair Jim Righeimer requested an explanation regarding
the $1.5 million dollars Mr. Humphries had referenced earlier. Mr. Young and
City Council Meeting — January 17, 2012 - Page 9
Ms. Brady provided an explanation regarding AB X1 26 and possible applicability
to the claw back provision.
MOTION: Adopt RDA, Resolution No. 01-2012: A RESOLUTION OF THE
COSTA MESA REDEVELOPMENT AGENCY AMENDING THE ENFORCEABLE
OBLIGATION PAYMENT SCHEDULE AND THE INITIAL RECOGNIZED
OBLIGATION PAYMENT SCHEDULE AND TRANSMITTING SCHEDULE TO
THE CITY, ACTING AS SUCCESSOR AGENCY.
MOVED/SECOND: Agency Member Monahan/Vice Chair Mensinger.
The motion carried unanimously.
MOTION: Accept transmittal of the amended Initial Recognized Obligation
Payment Schedule from the Agency.
MOVED/SECOND: Mayor Monahan/Council Member Leece.
The motion carried unanimously.
Council/Agency Member Wendy Leece asked if the Oversight Board could look
at the $19.4 million loan differently and scale it back to $10 million if they were to
pay it. Mr. Young advised the Oversight Board was entrusted with authorizing
payments and ensuring that all debts were paid off. A payment schedule was set
forth as $1.3 million up to a certain time period. Adjusting the payment schedule
would require a coordinated effort between the Oversight Board and the City.
Ms. Brady mentioned the Oversight Board had veto and modification powers.
They would look at what they could recognize as a loan that was validly formed
within 2 years of the formation of the Agency and whether those provisions
connected to current principal due and make a determination.
REPORTS
City/Agency Attorney — None
Chief Executive Officer/Executive Director - None
Mayor Pro Tem/Agency Chair Righeimer adjourned the special joint City Council and
Redevelopment Agency meeting at 8:41 p.m.
The special joint meeting of the City Council and Housing Authority convened at 8:42
p.m.
SPECIAL JOINT MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY
ROLL CALL
Present: Mayor/Authority Member Gary Monahan, Mayor Pro Tem/Authority Chair
Jim Righeimer, Council Member/Authority Member Eric Bever, Council
City Council Meeting — January 17, 2012 - Page 10
Member/Authority Member Wendy Leece, Council Member/Vice Chair
Stephen Mensinger
Absent: None
Officials Present: Chief Executive Officer Tom Hatch, Interim
Development Services Director Khanh Nguyen, City Attorney Tom Duarte,
Interim Public Services Director Ernesto Munoz, Finance and I.T. Director
Bobby Young, Neighborhood Improvement Manager Muriel Ullman,
Management Analyst Alma Penalosa, Agency Special Counsel Celeste
Brady, City Clerk Julie Folcik
CLERK'S STATEMENT
The Agenda and Notice and Call for the Special Joint Meeting were posted at the City
Council Chambers, Adams Postal Office, Headquarters Police Department,
Neighborhood Community Center and the Mesa Verde Public Library on Friday,
January 13, 2012.
PUBLIC COMMENTS
Sandra Genis wanted to confirm that the Housing Authority would only be taking on the
housing activities previously conducted by the Redevelopment Agency, and the
certificates (housing vouchers, etc.) would remain with the Orange County Housing
Authority. She also wanted to make sure the City Charter did not in any way affect the
Housing Authority because it was a separate entity.
Sheila Pfafflin understood the need for having
advantage in the Council Members becoming
explanation as to why the Council Members
Housing Authority.
NEW BUSINESS
a Housing Authority but did not see the
Commissioners. She requested an
would become Commissioners of the
1. FORMATION OF A HOUSING AUTHORITY
Agency Special Counsel Celeste Brady presented the staff report. She stated
that at the Special Joint meeting of January 10, 2010, staff had been instructed to
return with documents for the formation of a Housing Authority in Costa Mesa to
assume the housing assets and functions of the former Redevelopment Agency.
Pursuant to California Housing Authority's Law and Health and Safety Code
Section 34200 and following, a Housing Authority (activated by the adoption of a
resolution) had to exist in every city and county in California. The current law
excluded the existing housing fund balances but included the transfer of housing
assets and functions. Staff was not recommending that the City assume the
housing assets and functions.
City Council Meeting — January 17, 2012 - Page 11
Ms. Brady reported that SB 654 (Steinberg) posed to modify Section 34176 so as
to allow the existing fund balance of the housing monies for the former
Redevelopment Agency to be retained by the Successor Housing Agency. The
City could elect to assume those assets and functions or they could select from
Housing Authorities within the County. Currently, Costa Mesa did not have a
Housing Authority. If the Council formed a Housing Authority, they could decide,
as the City, to decline assumption of those assets and functions and select either
the Costa Mesa Housing Authority or the Orange County Housing Authority to
assume those housing assets and functions.
Ms. Brady provided a response to Ms. Pfafflin's question and said that a Housing
Authority had additional powers, more so than a City, in relation to affordable
housing. Their functions would be primarily to relate to the existing housing
obligations of this community.
Ms. Brady provided an explanation on the status of SB 654.
Per Council's previous action, all contracts on Attachment 7 would be included as
enforceable obligations of the former Redevelopment Agency for the State to
recognize. Ms. Brady stated it would be in the City's interest to keep within the
community, the decision-making and oversight of the affordable programs that
would occur by forming a Housing Authority.
Ms. Brady said the first action before the City Council was a resolution to form a
Housing Authority; the second action would be the first action of the Housing
Authority to designate officers and adopt personnel rules, conflict of interest
code. Ms. Brady said she made judgment calls within the Bylaws (third action)
but the Housing Authority would be able to modify them if approved. The last two
actions, if the Council did form a Housing Authority, would be the Council
declining to assume the housing assets and functions and selecting the Costa
Mesa Housing Authority as that function (fourth action) and finally for the Costa
Mesa Housing Authority to accept the housing assets and functions (fifth action).
Council Member Wendy Leece inquired about the Housing Authority's Law
requiring the governing body to appoint two resident board members (persons
residing in the housing owned or controlled by the housing authority) within two
years of formation. Ms. Brady reported that Housing Authorities who owned
projects appointed Tenant Commissioners within 2 years of forming a Housing
Authority. Housing Authorities who did not own assets, had a 2 -year window to
appoint a Tenant Commissioner if they chose to. The Housing Authority Law
was written in a way that the Council could be designated as the Board of the
Housing Authority in the first instance and become the governing body of the
Costa Mesa Housing Authority if the resolution, as presented, was adopted.
With regards to Costa Mesa Family Village, Council Member Leece requested
clarification regarding the annual payment requirement of $108,000 and the $3.8
City Council Meeting — January 17, 2012 - Page 12
million in potential receivables. Ms. Brady explained the Costa Mesa Family
Village project was a three -party agreement between the City, the
Redevelopment Agency and the developer entity. The original principal amount
was $3.8 million and based on a residuals receipts note, payments were made
on an annual basis. All debt services and costs had been recovered and should
there be a below -the -line profit, 50% of the residual receipts would be paid
accordingly. If a Housing Authority were to be formed, it would perform and
assume, as the Successor Agency, the housing functions of the dissolved
Redevelopment Agency. The Successor Housing Agency would retain the
money for their affordable housing functions.
Council Member Leece inquired about administrative and staffing costs. Agency
Special Counsel Brady deferred to Ms. Ullman who reported staff had figured a
total estimate of $428,000 for salaries. If they received money from the
Successor Agency of $300,000 and depending on whether or not a Housing
Authority was formed, the worse case scenario would be an impact to the
General Fund. Staff was already developing scenarios that would reduce the
amount to $50,000 or below via staffing reductions, programmatic reductions and
shifting salaries.
MOTION: Adopt Resolution No. 12-3: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING THERE IS A
NEED FOR A HOUSING AUTHORITY TO FUNCTION IN THE CITY,
DECLARING THAT THE MEMBERS OF THE CITY COUNCIL SHALL BE THE
COMMISSIONERS OF THE HOUSING AUTHORITY AND DESIGNATING THE
FIRST INTERIM CHAIRMAN OF THE HOUSING AUTHORITY, and designate
Member Jim Righeimer to be Interim Chairperson and Member Stephen
Mensinger to be Interim Vice Chair of the Housing Authority.
MOVED/SECOND: Mayor Monahan/Council Member Stephen Mensinger.
The motion carried unanimously.
MOTION: Adopt Housing Authority Resolution No. 01-2012: A RESOLUTION OF
THE HOUSING AUTHORITY OF THE CITY OF COSTA MESA, CALIFORNIA,
DESIGNATING OFFICERS OF THE HOUSING AUTHORITY, ADOPTING
PERSONNEL RULES AND REGULATIONS AND A CONFLICT OF INTEREST
CODE AND PROVIDING FOR THE TIME AND PLACE OF HOLDING
REGULAR MEETING OF THE HOUSING AUTHORITY.
MOVED/SECOND: Chair Righeimer/Vice Chair Stephen Mensinger.
The motion carried unanimously.
MOTION: Adopt Housing Authority Resolution No. 02-2012: A RESOLUTION OF
THE COSTA MESA HOUSING AUTHORITY ADOPTING BYLAWS OF THE
AUTHORITY (Housing Authority Resolution 02-2012).
MOVED/SECOND: Chair Rig heimer/Commissioner Leece.
The motion carried unanimously.
City Council Meeting — January 17, 2012 - Page 13
MOTION: Adopt Resolution No. 12-4: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF COSTA MESA DECLINING TO ASSUME THE HOUSING
ASSETS AND FUNCTIONS OF THE COSTA MESA COMMUNITY
REDEVELOPMENT AGENCY AND CONFIRMING THAT THE COSTA MESA
HOUSING AUTHORITY WILL ASSUME THE HOUSING ASSETS AND
HOUSING FUNCTIONS PREVIOUSLY PERFORMED BY THE AGENCY
PURSUANT TO HEALTH & SAFETY CODE SECTION 34176.
MOVED/SECOND: Mayor Monahan/Council Member Leece.
The motion carried unanimously.
MOTION: Adopt Housing Authority Resolution No. 03-2012: A RESOLUTION OF
THE COSTA MESA HOUSING AUTHORITY ACCEPTING THE HOUSING
ASSETS AND FUNCTIONS OF THE COSTA MESA REDEVELOPMENT
AGENCY.
MOVED/SECOND: Chair Jim Righeimer/Commissioner Leece.
The motion carried unanimously.
Council Member Wendy Leece asked how often the Housing Authority would
meet. Ms. Brady reported the Housing Authority meetings in the Bylaws were set
to be concurrent with the City Council meetings but the dates could be modified
as needed by the Housing Authority Commissioners.
Council Member Stephen Mensinger asked if the net cost to the General Fund
would be $300,000. Ms. Ullman reported staff took the current budget and
deducted what would be available to the Successor Agency. Based on the
current legislation it could be as much $300,000 but staff was already looking at
reducing the amount. Council Member Stephen Mensinger asked how staff was
planning on reducing the amount. Ms. Ullman reported if SB 654 passed and
they received the obligated housing money there would be no issues this year.
However, if SB 654 did not pass, they,would have to look at a reduction in staff
and programs. Council Member Stephen Mensinger asked when staff would
know the status of SB 654; Ms. Ullman said within the next 2 weeks. Ms. Brady
added SB 654 had good traction.
Chair Righeimer adjourned the special joint City Council and Housing Authority meeting
at 9:02 p.m.
The Council reconvened the regular meeting at 9:03 p.m.
PUBLIC HEARINGS - 7 p.m.
1. PUBLIC HEARING: CONTINUED FROM THE MEETING OF DECEMBER 6,
2011, APPEAL OF PLANNING COMMISSION'S DETERMINATION
REGARDING DEVELOPMENT REVIEW DR -99-22 A2, FOR PACIFIC LAND
SERVICES, FOR THE AMENDMENT OF THE CONDITION OF APPROVAL
FOR TARGET COSTA MESA'S WINTER HOLIDAY HOURS AS FOLLOWS: 12
City Council Meeting — January 17, 2012 - Page 14
1
MIDNIGHT TO 11 P.M. THE DAY AFTER THANKSGIVING; AND 7 A.M. TO 12
A.M. THEREAFTER UNTIL NEW YEAR'S DAY. CURRENT APPROVED
HOLIDAY HOURS ARE 7 A.M. TO 11 P.M. MON. - FRI., AND 8 A.M. TO 11
P.M. SATURDAY AND SUNDAY FROM THE DAY AFTER THANKSGIVING TO
NEW YEAR'S DAY. ENVIRONMENTAL DETERMINATION:
EXEMPT. (02:17:29)
ACTION: Withdrawn.
2. PUBLIC HEARING: CONTINUED FROM THE MEETING OF NOVEMBER 1,
2011, REVIEW OF PLANNING COMMISSION'S DETERMINATION
REGARDING PLANNING APPLICATION PA -11-22, FOR PEAK WEST
DEVELOPMENT LLC, FOR A DESIGN REVIEW WITH A VARIANCE FROM
MAXIMUM NUMBER OF STORIES AND BUILDING HEIGHT (2 STORIES/27
FT. MAX. ALLOWED; 3 STORIES/44 FT. PROPOSED) AND DEVIATION
FROM THE CITY'S RESIDENTIAL DESIGN GUIDELINE FOR 2ND AND 1ST
FLOOR RATIO (80% MAXIMUM RECOMMENDED; 86% PROPOSED) FOR A
NEW 23,109 SQUARE -FOOT COMMUNITY BUILDING WITH BELOW -GRADE
PARKING FOR TENANTS OF BOTH VILLA VENETIA AND PINE BROOK
VILLAGE APARTMENTS IN AN R3 (MULTIPLE -FAMILY RESIDENTIAL
DISTRICT) ZONE. THIS IS A REVISED SUBMITTAL FROM THE
PREVIOUSLY PROPOSED BUILDING HEIGHT OF 61 FT. UNDER PLANNING
APPLICATION PA -11-15. ENVIRONMENTAL DETERMINATION: EXEMPT.
(02:18:28)
Associate Planner Wendy Shih presented the report. (02:19:48)
Discussion ensued regarding the need for Council approval and if the project
could be approved administratively.
Ellen Ducote, Costa Mesa, spoke in opposition of the project and suggested that
units be updated instead. (02:29:19)
Harold Ducote, Costa Mesa, expressed concern in Peak West's business
registration and ability to conduct business in California, and urged staff to send
the proposal back to the Planning Commission. (02:32:09)
Robin Leffler, Costa Mesa, on behalf of the Mesa Verde Community Inc. Board of
Directors, spoke in support of the revisions made to the Planning Application.
(02:33:56)
Diane Bjelland, Costa Mesa, expressed concern regarding the aesthetics and
traffic impacts from the delivery trucks. (02:37:05)
City Council Meeting — January 17, 2012 - Page 15
Diane Williamson, Costa Mesa, expressed concerns regarding traffic and noise
from the security gate, and suggested the operation of the gate be restricted to
certain hours. (02:38:33)
Saeed Ahdout, Costa Mesa, expressed concern in the noise and air pollution
generated from the construction. (02:41:52)
Gene Hutchins, Costa Mesa, commented on the process. (02:44:45)
Sandra Genis, Costa Mesa, spoke about the initial application, and urged Council
to address the formal withdrawal of the variance. (02:48:48)
In response to questions from Council regarding the compliance of the Planning
Application, the City Attorney advised that Council could provide direction for
staff to bring back the report, or receive and file. (02:51:12)
Gary Polodna of Peak West Development addressed concerns of the residents
and responded to questions from the Council regarding deliveries, parking,
landscaping, traffic, and the access gate. (02:51:45)
MOTION: Receive and file.
MOVED/SECOND: Mayor Monahan/Council Member Leece.
The motion carried unanimously.
Mayor Pro Tem Righeimer recessed the meeting at 9:49 p.m.
The Council reconvened at 9:57 p.m.
OLD BUSINESS None
NEW BUSINESS
1. REQUEST BY APPELLANT FOR WAIVER OF CITY COUNCIL APPEAL FEE
FOR DEVELOPMENT REVIEW DR -99-22 A2 FOR THE MODIFICATION OF
WINTER HOLIDAY HOURS FOR TARGET COSTA MESA. (03:11:27)
Tamar Goldmann, Costa Mesa, spoke in support of the refund request and
opined that the appeal fee is excessive. (03:12:18)
Council Member Mensinger agreed with the public speaker's comments.
(03:14:22)
Mayor Pro Tem Righeimer commented on the appeal process, costs, and fee;
and supported the refund. (03:15:48)
City Council Meeting — January 17, 2012 - Page 16
Council Member Leece shared her reasons for not filing the request for review,
and spoke in support of the motion. (03:17:14)
MOTION: Approve refund of the appeal fee.
MOVED/SECOND: Mayor Monahan/Mayor Pro Tem Righeimer
The motion carried unanimously.
2. MAYOR'S CHARITY DINNER. (03:18:39)
Interim Public Affairs Manager Dan Joyce presented the report, and addressed
concerns regarding the allocation of received donations and designation as a
charity event. (03:18:55)
Council Member Mensinger suggested that the non-profit groups host the event
in the same manner that the youth groups host the Costa Mesa United Mesa
Verde Golf Tournament, and the proceeds would go to the host groups.
Tamar Goldmann, Costa Mesa, spoke in opposition of the event and opined that
the timing is wrong.
Eleanor Egan, Costa Mesa, suggested that charities be explicitly designated and
that the word "charity" be removed if organizations have discretion regarding how
the funds would be used.
Dave Brooks, Costa Mesa, on behalf of CM 900, spoke in support of the event.
Diane Pritchett, on behalf of South Coast Metro Alliance, spoke in support of the
event.
Ed Fawcett, on behalf of the Chamber of Commerce, spoke -in support of the
event. -
Sandra Genis, Costa Mesa, supported the idea, but cautioned -the -event being
held during the election season.
Robin Leffler, Costa Mesa, suggested that the event be called a "fundraiser
dinner."
Mr. Joyce explained that the "Mayor's Charity Dinner" is just a working title, and
can be changed later.
Council Member Leece spoke in support of changing the name.
MOTION: Direct staff to proceed.
MOVED/SECOND: Mayor Pro Tem Righeimer/ Mayor Monahan.
City Council Meeting — January 17, 2012 - Page 17
Council Member Bever expressed concern in the possibility of a city -appointed
committee to plan the event.
SUBSTITUTE MOTION: Receive and file.
MOVED/SECOND: Council Member Bever/Council Member 'Leece.
The motion carried unanimously.
COUNCIL MEMBER' REPORTS, COMMENTS, AND SUGGESTIONS
Council Member Leece spoke about the 19th Street Bridge; urged residents to continue
providing feedback regarding the proposed charter; indicated that Save Our Youth had
recently lost a major donor; announced a new program from MIKA on Wilson Street for
access to an afterschool program; spoke about property management strategy on
Philade6phia Street; announced a pamphlet about markers along Newport Boulevard
was available through the Historical Preservation Committee; and asked the City
Attorney to review a policy for texting on the dais.
Council Member Mensinger spoke about the Mesa Verde Classic, thanked everyone
involved, announced that a gross amount of $140,000 was raised, and noted 384
members of the community in attendance at the dinner and golf tournament; requested
staff to look into revisions for a revitalization plan for the Westside; and commented on
the 19th Street Bridge.
The Mayor adjourrfhting at 10:54 p.m.
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INTERIM CITY CLERK
1
City Council Meeting — January 17, 2012 - Page 18