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HomeMy WebLinkAbout01 - CC-2 - Minutes - 8/7/2012UNOFFICIAL UNTIL APPROVED SPECIAL JOINT MEETING OF THE COSTA MESA HOUSING AUTHORITY, COSTA MESA CITY COUNCIL AND THE CITY COUNCIL ACTING AS SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY JUNE 12, 2012 These meeting minutes represent an "action minute" format. A copy of the meeting can be obtained at Costa Mesa Housing Authority Office located on the 20 floor of the Costa Mesa City Hall. The Costa Mesa Housing Authority, City Council and City Council Acting as Successor Agency to the Costa Mesa Redevelopment Agency met in a Special Joint Meeting held on Tuesday, June 12, 2012, in the Costa Mesa Council Chambers of City Hall, 77 Fair Drive, Costa Mesa. Chair Jim Righeimer called the meeting to order at 6:30 p.m. I. ROLL CALL Members Present: Chair/Mayor Pro Tem Jim Righeimer Vice-Chair/Council Member Stephen Mensinger Board Member/Mayor Eric Bever Board/Council Member Wendy Leece Board/Council Member Gary Monahan Officials Present: Tom Hatch, Executive Director/CEO Peter Naghavi, Director of Economic and Development 1 Deputy CEO Ernesto Munoz, Public Services Director Bobby Young, Finance and I.T. Director Colleen O'Donogue, Assistant Finance Director Hilda Veturis, Management Analyst Vanessa Locklin, Stradling Yocca Carlson & Rauth Kathe Head, Economic Consultant Martha Rosales, Recording Secretary 11. CLERK'S STATMENT The Agenda and Notice and Call for the Special Joint Meeting of the Costa Mesa Housing Authority, City Council and the City Council Acting as Successor Agency to the Costa Mesa Redevelopment Agency was posted at the City Council Chambers, Adams Postal Office, Headquarters Police Department, Neighborhood Community Center and the Mesa -Verde Public Library on Thursday, June 7, 2012. Ill. MINUTES Regular meeting of the Costa Mesa Housing Authority of April 3, 2012 0 V. VI. MOTION: Approve the Minutes from the April 3, 2012 Housing Authority meeting. Moved by Chair Jim Righeimer, second by Board Member Wendy Leece. The motion carried by the following vote: Ayes: Chair Jim Righeimer, Vice Chair Stephen Mensinger, Board Member Eric Bever, Board Member Wendy Leece, Board Member Gary Monahan Noes: None Absent: None PUBLIC COMMENTS Chair Jim Righeimer opened the session for public comments. There being none, the public comments session was closed. BOARD MEMBER'S COMMENTS AND SUGGESTIONS - None NEW BUSINESS Agreement for Professional Legal Services Ms. Ullman presented the staff report and gave a narrative of the various services Stradling, Yocca, Carlson & Rauth had provided to the City since 1986. Ms. Ullman added that Shareholder and Lead Partner, Celeste Brady, had provided several years of special counsel services in Redevelopment, affordable housing, public finance and other public law matters. Ms. Ullman recommended the City enter into a professional legal services agreement with Stradling, Yocca, Carlson & Rauth. MOTION: Voting as the Housing Authority, the City Council and the City Council Acting as Successor Agency to the Costa Mesa Redevelopment Agency, approve Agreement for Professional Legal Services with Stradling, Yocca, Carlson & Rauth. Moved by Board Member Gary Monahan, second by Vice -Chair Stephen Mensinger. The motion carried by the following vote: Ayes: Chair Jim Righeimer, Vice Chair Stephen Mensinger, Board Member Eric Bever, Board Member Wendy Leece, Board Member Gary Monahan Noes: None Absent: None 2. Agreement for Professional Financial Consulting Services Executive Director Tom Hatch presented the staff report and stated the agreement was to continue financial consulting services with Keyser -Marston Associates, Inc., a top-notch financial analysis firm who had provided a variety of services to the City for many years. Mr. Hatch stated the contract (up to $100,000 annually) was for 1 year with three (3) one year renewals. Mr. Hatch recommended the City approve the contract for financial consulting services with Keyser -Marston Associates, Inc. 2 MOTION: Voting as the Housing Authority, the City Council and the City Council Acting as Successor Agency to the Costa Mesa Redevelopment Agency, approve Agreement for f=inancial Consulting Services with Keyser - Marston Associates, Inc. Moved by Board Member Gary Monahan, second by Board Member Eric Bever. The motion carried by the following vote: Ayes: Chair Jim Righeimer, Vice Chair Stephen Mensinger, Board Member Eric Bever, Board Member Wendy Leece, Board Member Gary Monahan Noes: None Absent: None 3. Update on Correspondence with the State Department of Finance Finance and I.T. Director Bobby Young presented the staff report. He reported both ROPS (Recognized Obligation Payment Schedules) for the periods of January through June 2012 and July through December 2012 had been approved by the State Department of Finance and commended staff on a job well done completing the task. The State had also approved the City -Agency loan that was on the Second BOPS (July through December 2012) - staff was cautiously optimistic that the loan would remain on the RAPS and be paid. Macias Gini & O'Connell (auditors contracted by the State) had completed their audit that included the EOPS (Enforceable Obligation Payment Schedule) and ROPS. An exit conference was scheduled for later in the week and more information would be available at the June 21, 2012 Oversight Board meeting. Chair Jim Righeimer commended Mr. Young and staff on doing a phenomenal job compiling the color -coded flow chart for the original 1971 City -Agency loan. At a time when Board Members thought the money would be gone, staffs efforts saved the City $10 million dollars. Board Member Eric Bever echoed Chair Jim Righeimer's comments and thanked staff for a great job documenting the obligation payment schedules as well. Board Member Wendy Leece also commended staff on their phenomenal work. She asked if the BOPS would be submitted to the State Department of Finance twice a year for review. Mr. Young reported that work on the ROPS for the period of January through June 2013 would begin in September 2012. Staff would then update the ROPS every 6 months for each period and address items for reimbursement. Board Member Wendy Leece requested that copies of the Oversight Board's Agendas and Minutes be provided to the Council to keep them informed. Recording Secretary Martha Rosales assured Board Member Leece that her request would be handled accordingly. Board Member Wendy Leece asked if the Oversight Board had approved the EOPS and ROPS. Chair Jim Righeimer (Chair of the Oversight Board) gave a brief summary of what took place at the Oversight Board meetings and confirmed that the EOPS and ROPS had been approved by the Oversight Board. Mr. Young asked if the Board wanted the matter agendized for future meetings or if they preferred receiving correspondence after each Oversight Board meeting. Chair Jim Righeimer opted for receiving correspondence after each Oversight Board meeting. 3 MOTION: Voting as the Housing Authority, the City Council and the City Council Acting as Successor Agency to the Costa Mesa Redevelopment Agency, receive and file the Update on Correspondence with the State Department of Finance. Moved by Board Member Eric Bever, second by Vice - Chair Stephen Mensinger. The motion carried by the following vote: Ayes: Chair Jim Righeimer, Vice Chair Stephen Mensinger, Board Member Eric Bever, Board Member Wendy Leece, Board Member Gary Monahan Noes: None Absent: None ADJOURN THE CITY OF COSTA MESA ACTING AS SUCCESSOR AGENCY MEETING AND CONTINUE SPECIAL JOINT MEETING OF THE COSTA MESA CTY COUNCIL AND COSTA MESA HOUSING AUTHORITY 4 CC -2 UNOFFICIAL UNTIL APPROVED REGULAR MEETING OF THE CITY COUNCIL AND SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY CITY OF COSTA MESA July 03, 2012 The City Council of the City of Costa Mesa, California met in a regular session on July 03, 2012 at 5 p.m. in the Council Chambers of City Hall, 77 Fair Drive, Costa Mesa. The meeting was called to order by the Mayor. ROLL CALL PUBLIC COMMENTS No public comments. CLOSED SESSION Conference with legal counsel regarding existing litigation pursuant to Government Code Section 54956.90: Rieckhof vs. City of Costa Mesa, Orange County Superior Court Case No. 30-2011-00487826-CU-WM- CJCCASE. 2. Conference with legal counsel regarding anticipated litigation, significant exposure to litigation pursuant to Government Code Section 54956.9(b) for two cases. PLEDGE OF ALLEGIANCE - Mayor Pro Tem Jim Righeimer (00:00:11) lviIf] Ly, 14►1111111161;&*6144Ly, 1Z1*14:jN***.II*]ZI ROLL CALL Council Members Mayor Eric R. Bever Present: Mayor Pro Tem James Righeimer Council Member Wendy Leece Council Member Stephen Mensinger Council Member Gary Monahan Council Members None Absent: Officials Present: Chief Executive Officer Thomas R. Hatch City Attorney Thomas Duarte Economic and Development Services Director Peter Naghavi Public Services Director Ernesto Munoz Assistant Chief Executive Officer Rick Francis Finance and IT Director Bobby Young Regular Meeting - July 3, 2012 - Page 1 CC -2 UNOFFICIAL UNTIL APPROVED Police Chief Tom Gazsi Interim Fire Chief Tom Arnold Public Affairs Manager Dan Joyce Public Affairs Manager Bill Lobdell Interim City Clerk Brenda Green Acting Deputy City Clerk Christine Cordon CLOSED SESSION REPORT (00:01:00) No Closed Session report. ANNOUNCEMENTS (00:01:05) The Mayor played a video clip of the "Costa Mesa Minute" featuring upcoming events. PRESENTATIONS (00:03:13) There were no presentations scheduled. However, Mayor Bever recognized resident and youth surfer Meah Collins for her recent victory at the USA Surf Championships; and resident and athlete Sharon Day who will be competing in the summer Olympics in the heptathlon. PUBLIC COMMENTS (00:04:14) Irene Raney, Costa Mesa, spoke about a hookah bar near Bethel Towers. (00:04:33) Sheila Pfafflin, Costa Mesa, spoke in opposition of the proposed toll roads on the 1-405 Freeway, and urged Council to oppose the Banning Ranch development. (00:05:29) Jay Humphrey, Costa Mesa, expressed appreciation of Council and staff's efforts against the 1-405 Freeway project, and commented on the need for street improvements on Arlington Drive. (00:06:51) Joy Williams, Costa Mesa, commented on the condition of the street behind her property, curb appeal, and funds allocated for public safety. (00:09:19) Martin Millard, Costa Mesa, commented on trash generated by produce trucks and pushcarts, the lack of a sign on 19th Street, and an article regarding the Council's role in implementation of policies. (00:10:31) Rich Reiser, Costa Mesa, spoke about pedestrian and bicycle safety on West 19th Street, and asked that the pavement be painted. (00:12:24) Marshall Krupp, Costa Mesa, suggested that the sidewalk study be updated and commented on the cost for the city to purchase motels. (00:13:22) Regular Meeting - July 3, 2012 - Page 2 CC -2 UNOFFICIAL UNTIL APPROVED Candace Robbio, Costa Mesa, expressed concerns regarding speeding cars on 19th Street and the homeless population. (00:15:35) Sue Lester, Costa Mesa, thanked the Telecommunications Division in response to her 9-1-1 call, agreed with comments made by a previous speaker who stated that it is not Council's job to micromanage staff, and encouraged fireworks sales in the city. (00:17:43) John Feeney, Costa Mesa, spoke in opposition of the 1-405 Alternative 3, and commented on the toll roads, urged Council to disassociate from the Transportation Corridor Agencies. (00:19:15) Robin Leffler, Costa Mesa, shared legal proceedings taking place in other cities relating to bankruptcy and bonds. (00:22:45) Tamar Goldmann, Costa Mesa, commented on the suspension of in-house street rehabilitation program. (00:25:58) Eleanor Egan, Costa Mesa, suggested that a spending limit be placed for legal expenses. (00:29:04) Greg Thunell, Costa Mesa, spoke about fireworks and street potholes. (00:31:25) Tom Pollitt, Costa Mesa, thanked the Council for their efforts and commented on pension reform. (00:34:41) James Bridges, Costa Mesa, expressed his desire for everyone to work with each other. (00:37:17) Harold Weitzberg, Costa Mesa, spoke about the importance of attending Council meetings and encouraged residents to attend. (00:39:04) COUNCIL MEMBERS' REPORTS, COMMENTS AND SUGGESTIONS (00:40:27) Mayor Bever announced that he had written and submitted an editorial regarding the 1-405 Freeway project to various outlets; in reference to public comments made regarding 19th Street, directed staff to explore solutions for speeding and bicycle safety; addressed concerns regarding the homeless population and indicated it seems the population has increased; and requested staff to provide an update regarding sidewalk repairs and potholes. (00:40:36) Public Services Director Ernesto Munoz spoke about the sidewalk survey and indicated there is over $1 million allotted for parkway repairs --particularly on the Eastside --and a number of parkway improvements that will take place with other capital improvement funds. In response to concerns on whether potholes would be repaired albeit budget reductions, Mr. Munoz clarified that the paving ability has been eliminated, but the elimination will result in the accentuation of pothole repairs and large item pick-up. (00:42:36) Regular Meeting - July 3, 2012 - Page 3 CC -2 UNOFFICIAL UNTIL APPROVED Mayor Bever addressed a public comment made about Council's ability to open employee contracts, and clarified that Council does not have unilateral authority to reopen contracts and the employee associations have not agreed to open the contracts; directed staff to follow-up with Public Speaker Marshall Krupp regarding his $500,000 motel plan; addressed public comments made about bonds, pushcarts, and the hookah lounge near Bethel Towers. (00:45:09) Mayor Pro Tem Righeimer commented on the legal bills, indicated the bills will continue to increase until the case is settled, and reiterated that the Council has not done anything illegal; opined that it is not good to talk about neighboring cities from the dais; commented on the process of negotiations with the employee associations; announced that the Fire and Police Departments are fully funded; spoke about the Federal Transportation Bill and stated it has not been passed in three years; and commented on prevailing wage and street improvements. (00:50:29) Council Member Leece thanked those in attendance at the Council meetings; referred to public comments made about safety on 19th Street; spoke about the 1-405 Freeway improvement project, shared where OCTA Board member contact information can be found on the city's website, and announced upcoming meetings; directed staff to increase outreach regarding pothole repairs; and announced volunteer opportunities in the city. (00:58:32) Council Member Mensinger spoke about fireworks and asked staff to provide an update regarding the enforcement efforts; addressed comments about infrastructure and road improvements; recognized resident Jake Knapp for his recent accomplishments in amateur golfing; and commented on the Tower on 19th project and parking and traffic concerns at the Costa Mesa Senior Center. (01:04:51) Staff provided an update regarding fireworks enforcement. Fire Batallion Chief Kevin Diamond indicated that this year's enforcement action plan incorporates the Police and Public Services Departments. (01:05:42) Police Chief Tom Gazsi noted the increase in staffing and assignment of three officers dedicated to fireworks. (01:06:50) Public Services Director Ernesto Munoz added that additional signs have been added throughout the city, and indicated increased enforcement measures at Canyon Park and Fairview Park. (01:07:35) REPORT - CHIEF EXECUTIVE OFFICER (CEO) (01:20:12) CEO Hatch responded to comments from public speakers and provided the following updates: 1. Indicated that staff has been following up and addressing concerns raised about the 1-405 Freeway and deferred to Public Services Ernesto Munoz, who provided an update; 2. Announced that a presentation will be made at the July 10 Regular Adjourned Regular Meeting - July 3, 2012 - Page 4 CC -2 UNOFFICIAL UNTIL APPROVED Meeting/Study Session about the proposed business license tax increase; 3. Announced that consultant Tammy LeTourneau's full-time contract is now completed; 4. Noted the upcoming Chamber of Commerce breakfast on July 19 at 7 a.m. will feature Police Chief Tom Gazsi; and 5. Thanked Public Affairs Manager Bill Lobdell for his efforts in the new city website, and asked Mr. Lobdell to provide a brief overview of the the site. CONSENT CALENDAR (01:29:13) MOTION: Approve recommended actions for Consent Calendar Item Nos. 1 through 9, except for Consent Calendar Item Nos. 1(b), 4, 7, 8, and 9. Moved by Mayor Pro Tem James Righeimer, seconded by Council Member Wendy Leece. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. Readina Folder a. Claims received by the City Clerk: Stephanie Ponce on behalf of William Cortez; Cary Foster. C. Letter of Notification: Southern California Gas Company, Notice of Filing of the Gas Cost Incentive Mechanism (GCIM), Application No. A.12-06-005. ACTION: Received and processed. 2. Special Meetina of Aaril 10. 2012: Saecial Studv Session of Mav 29 2012; Regular Adjourned/Study Session of June 12, 2012. ACTION: Approved. 3. WARRANT RESOLUTION 2426: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ALLOWING CERTAIN CLAIMS AND DEMANDS, AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME ARE TO BE PAID, funding City operating expenses for $2,049,112.71. ACTION: Approved. Regular Meeting - July 3, 2012 - Page 5 CC -2 UNOFFICIAL UNTIL APPROVED 5. Professional Services Agreement with A.C.T. GIS, Inc., 19000 Grovewood Drive, Corona, California, for the renewal of support services for the Geographic Information System (GIS) for a one-year term in the amount of $110,475. ACTION: Approved; authorized the City Chief Executive Officer to sign. 6. Adoat Dlans and saecifications. and workina details for Hardscaae and Landscape Improvements on Broadway (Safe Route to School Program) from Fullerton Avenue to Irvine Avenue, Federal Project No. SRTSL-5312 (076), City Project No. 12-10, and award a construction contract to Nobest, Inc., 7600 Acacia Avenue, Garden Grove, California, in the amount of $1,171,000. a. Budget Adjustment No. 13-002 in the amount of $231,400. ACTION: Approved; authorized the Mayor and Interim City Clerk to sign; and approved Budget Adjustment No. 13-002 in the amount of $231,400. ITEMS REMOVED FROM CONSENT CALENDAR (01:29:43) Reading Folder (01:29:42) b. Request for Alcohol Beverage Control license: Mariner's Fund LLC dba Kings Tavern, 436 East 17th Street, Costa Mesa California. Council Member Leece referred to e-mails received from residents on the Eastside who opposed the ABC license request, noted that the City does not have jurisdiction, and requested staff to explain the details of the request. (01:29:45) Senior Planner Mel Lee indicated that the transfer is for an identical license and is in accordance with State guidelines, and reiterated that the City does not have the ability to stop the license transfer. (01:30:45) Mayor Bever indicated that there have been requests to stop the bar from opening, and clarified that the City does not have any jurisdiction regarding limiting the type of business. (01:33:34) Robin Leffler, Costa Mesa, stated she thought the City could regulate the number of ABC licenses and limit the number in a certain area. (01:34:07) MOTION: Receive and process. Moved by Council Member Wendy Leece, seconded by Council Member Stephen Mensinger. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Regular Meeting - July 3, 2012 - Page 6 CC -2 UNOFFICIAL UNTIL APPROVED Council Member Gary Monahan Noes: None. Absent: None. 4. WARRANT RESOLUTION 2427: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ALLOWING CERTAIN CLAIMS AND DEMANDS, INCLUDING PAYROLL REGISTER NO. 12-13 AND PAYROLL REGISTER NO. 12-12A AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME ARE TO BE PAID, funding Payroll No. 12-13 for $2,053,932.40 and Payroll No. 12-12A for $439.52, and City operating expenses for $424,530.35, including payroll deductions. (01:37:28) Tamar Goldmann, Costa Mesa, referred to the payment made to Jones Day and noted that the amount is comparable to various staff members' salaries. (01:37:44) Council Member Leece expressed disappointment in the lack of a spending limit for legal fees. (01:40:20) Mayor Pro Tem Righeimer commented on the litigation with the employees and reiterated that the costs will increase until the case is settled. (01:41:13) Council Member Mensinger reiterated that the city is being sued and, therefore, the attorneys are necessary. (01:42:44) Mayor Bever emphasized that the attorneys are defending the city, not the Council. (01:43:41) MOTION: Approve Moved by Mayor Pro Tem James Righeimer, seconded by Council Member Gary Monahan. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. 7. Authorize refund of cash deposit in the amount of $12,111.60 to D'Alessio Investments Inc., 440 Fair Drive, Costa Mesa, California, in connection with R-08-03/PA-08-26/GP-08-04. (01:43:57) Jay Humphrey, Costa Mesa, asked if the petitioner has paid for expenses incurred related to the project. (01:44:09) Economic and Development Services Director Peter Naghavi stated that a Regular Meeting - July 3, 2012 - Page 7 CC -2 UNOFFICIAL UNTIL APPROVED bond for $15,000 was deposited, incurred costs were deducted from the bond amount, and the refund is for the remaining amount of the bond; and there was not a net cost to the city. (01:45:11) MOTION: Approve Moved by Mayor Eric R. Bever, seconded by Council Member Stephen Mensinger. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. 8. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO ORDER THE VACATION OF A PORTION OF FULLERTON AVENUE AT 164 FLOWER AVENUE, setting a public hearing on August 7, 2012 at 7 p.m. (01:45:39) Jay Humphrey, Costa Mesa, referred to the $6 million to $7 million in spending for street repairs for the Eastside and asked what percentage of that will be paid for by city funds as opposed to grants. (01:45:51) Mayor Pro Tem Righeimer clarified that $2 million is from federal and state funds and commented on prevailing wage. (01:47:07) MOTION: Adopt Resolution No. 12-45: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO ORDER THE VACATION OF A PORTION OF FULLERTON AVENUE AT 164 FLOWER AVENUE. Moved by Council Member Gary Monahan, seconded by Council Member Stephen Mensinger. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. 9. Use of a portion of City Hall parking lot for monthly First Fridays Road Show car event. (01:47:55) Jay Humphrey, Costa Mesa, expressed concern regarding the proposed food truck and a bid process for the food truck. (01:48:10) Robin Leffler, Costa Mesa, asked if there would be a conflict for the Regular Meeting - July 3, 2012 - Page 8 CC -2 UNOFFICIAL UNTIL APPROVED mayor, who fixed cars as a business. (01:49:21) Mayor Bever clarified that he fixed cars as a hobby, and not a business. Cindy Brenneman, Costa Mesa, spoke in support of the proposed car show and shared her positive experiences at other car shows. (01:49:59) Public Affairs Manager Dan Joyce addressed concerns made by public speakers and clarified that the opportunity to provide food services at the car show would be presented to food truck vendors who have been at past city events. (01:52:44) In response to a question from Council Member Leece regarding community volunteer and sponsorship opportunities, Mr. Joyce indicated that interested parties may contact him directly upon Council approval of the event. (01:53:20) Council Member Mensinger expressed concern regarding sales tax not being collected by the city, indicated he would not support food trucks until the sales tax issue is explored and understood, and would rather reach out to other food businesses before reaching out to food trucks. (01:55:12) Mayor Bever thanked Mr. Joyce for moving forward with the proposal for a car show, shared his personal interest in cars, and spoke in support of the car show. (01:58:02) MOTION: Approve Moved by Mayor Eric R. Bever, seconded by Mayor Pro Tem James Righeimer. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. CITY OF COSTA MESA CITY COUNCIL ACTING AS SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY No items scheduled. PUBLIC HEARINGS (02:01:18) 1. PUBLIC HEARING: Continued from the meeting of June 5, 2012, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT Regular Meeting - July 3, 2012 - Page 9 CC -2 UNOFFICIAL UNTIL APPROVED AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS FOR THE TOWER ON 19TH. (02:01:20) Finance/IT Director Bobby Young provided a presentation, shared outreach efforts made by the developer to the current residents of Bethel Towers, noted that representatives from Reiner Communities are present, and announced that a decision must be made at the meeting due to deadline constraints. (02:01:42) Mayor Pro Tem Righeimer reported his attendance at one of the resident meetings held by the developer, and expressed that he is comfortable moving forward with the resolution. (02:04:10) Council Member Leece stated she was impressed with the presentation made by the developer. She referred to the tenant income verification questionnaire and requested that the developer assist the residents in filling out the form. Council Member Leece spoke in support of the resolution and asked that an e-mail received from Sean Burroughs of Reiner Communities be included. (02:08:00) City Attorney Duarte advised that an e-mail would not generally become part of the resolution, but Council may direct staff to send a letter with the e-mail attached as part of a good faith effort. (02:10:54) Mayor Bever commended the developer for reaching out to the community and addressing the concerns raised by the residents. (02:11:11) Council Member Leece asked if the maker of the motion would add a letter to accompany the resolution; the maker agreed. MOTION: Adopt Resolution No. 12-46: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS FOR THE TOWER ON 19TH. Moved by Mayor Pro Tem James Righeimer, seconded by Council Member Wendy Leece. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. 2. PUBLIC HEARING: General Plan Amendment GP -12-01 and Planning Application PA -12-04 from Foothill Project Management on behalf of Walgreens Co., for the demolishment of an existing 11,000 sq. ft. building Regular Meeting - July 3, 2012 - Page 10 CC -2 UNOFFICIAL UNTIL APPROVED (former Tower Records) and construction of a new 14,310 sq. ft. Walgreens Store; variance from building and landscaped setbacks (20 ft. req., 0-18 ft. proposed); variance from interior parking area landscaping req. (1,100 sq. ft. req., 0 sq. ft. proposed); variance from maximum building height (30 ft. allowed; 32 ft. proposed); and site specific general plan amendment for floor area ratio (0.30 max. allowed; 0.49 proposed) in a C2 commercial zone. Environmental Determination: Exempt. (02:12:07) a. A RESOLUTION OF THE CITY OF COSTA MESA. CALIFORNIA ADOPTING GENERAL PLAN AMENDMENT GP -12-01 FOR A SITE SPECIFIC 0.49 FLOOR AREA RATIO FOR PROPERTY LOCATED AT 1726 SUPERIOR AVENUE IN THE GENERAL COMMERCIAL LAND USE DESIGNATION. b. A RESOLUTION OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING PLANNING APPLICATION PA -12-04 FOR PROPERTY LOCATED AT 1726 SUPERIOR AVENUE. Senior Planner Mel Lee provided the presentation and respond to questions from the Council. (02:13:07) Mayor Bever asked if there is a stipulation regarding trees with non- invasive roots, and asked if the increase in average daily trips were discussed. Mr. Lee explained the requirement for non-invasive roots is part of the zoning code and does not need to be included in the conditions of approval, and noted that a traffic impact fee would be required as part of the project development. (02:20:10) Jay Humphrey, Costa Mesa, spoke in support of the appropriate use of the property, suggested that the employee parking would be on the lot and not on residential streets, and asked if there are conditions for the use of the basement as storage only. (02:21:57) In response to the public speaker's concern, Mr. Lee referred to the conditions of approval and stated that the basement is for product storage and employee use only. (02:23:06) Marshall Krupp, Costa Mesa, indicated this is a good opportunity for the city to clean-up the entire corner, and referred to the traffic study and stated that the Newport Boulevard turnout to Superior Avenue was not defined as a possible access point in the traffic study, and commented on the use of paid traffic impact fees. (02:24:41) Cindy Brenneman, Costa Mesa, expressed concern in the lack of landscaping and the decrease in the number of parking spaces. (02:27:55) Corey Kates, Foothill Project Management on behalf of Walgreens, addressed comments and concerns regarding the setback, Regular Meeting - July 3, 2012 - Page 11 CC -2 UNOFFICIAL UNTIL APPROVED employee parking, sustainability, the basement, and elevation enhancements. (02:33:06) MOTION: Adopt Resolution 12-47: A RESOLUTION OF THE CITY OF COSTA MESA, CALIFORNIA, ADOPTING GENERAL PLAN AMENDMENT GP -12-01 FOR A SITE SPECIFIC 0.49 FLOOR AREA RATIO FOR PROPERTY LOCATED AT 1726 SUPERIOR AVENUE IN THE GENERAL COMMERCIAL LAND USE DESIGNATION. Moved by Mayor Eric R. Bever, seconded by Council Member Stephen Mensinger. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. MOTION: Approve Adopt Resolution 12-48: A RESOLUTION OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING PLANNING APPLICATION PA -12-04 FOR PROPERTY LOCATED AT 1726 SUPERIOR AVENUE. Moved by Mayor Eric R. Bever, seconded by Council Member Stephen Mensinger. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. 101111:1111110 1 **1. No Old Business Scheduled. NEW BUSINESS AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADDING CHAPTER III OF TITLE 4 OF THE COSTA MESA MUNICIPAL CODE RELATING TO THE BICYCLE PARKING REGULATIONS. (02:44:28) Sergeant Victor Bakkila made a presentation. (02:45:15) Eleanor Egan, Costa Mesa, opined the ordinance is too broadly written. (02:58:05) Sheila Pfafflin, Costa Mesa, urged Council to reconsider the language in Regular Meeting - July 3, 2012 - Page 12 CC -2 UNOFFICIAL UNTIL APPROVED the ordinance to make it more narrow. (03:00:34) Jay Humphrey, Costa Mesa, commented on a joint program with the schools to address bicycle safety. (03:02:25) Beth Refakes, Costa Mesa, expressed concern in unintended consequences. (03:04:52) Mayor Pro Tem Righeimer opined that the language in the proposed ordinance is clear. (03:07:40) Council Member Mensinger directed staff to explore a 90 -day holding period of bikes and selling bikes online. (03:09:33) MOTION: Introduce Ordinance No. 12-5: ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADDING CHAPTER III OF TITLE 4 OF THE COSTA MESA MUNICIPAL CODE RELATING TO THE BICYCLE PARKING REGULATIONS, for first reading, to be read by title only and waive further reading. Moved by Council Member Stephen Mensinger, seconded by Council Member Gary Monahan. The motion carried by the following roll call vote: Ayes: Council Member Gary Monahan, Council Member Stephen Mensinger, Council Member Wendy Leece, Mayor Pro Tem James Righeimer, Mayor Eric R. Bever Noes: None. Absent: None. 2. Dispatch Services Request for Proposal. (03:14:14) Lieutenant Bryan Glass presented the report. MOTION: Approve Receive and file; reject all bids for dispatch services services; direct staff to continue to explore shared service models with nearby communities; authorize staff to rescind layoff notices Moved by Mayor Pro Tem James Righeimer, seconded by Council Member Wendy Leece. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. REPORT - City Attorney Regular Meeting - July 3, 2012 - Page 13 CC -2 UNOFFICIAL UNTIL APPROVED No report provided. ADJOURNMENT - The mayor adjourned the meeting at 9:26 p.m. to July 10, 2012 at 5 p.m. for a Regular Adjourned Meeting/Study Session, followed by a Special Meeting at 7 p.m. Next Regular City Council Meeting: July 17, 2012. Mayor of the City of Costa Mesa ATTEST: Interim City Clerk of the City of Costa Mesa Regular Meeting - July 3, 2012 - Page 14 UNOFFICIAL UNTIL APPROVED CC -2 REGULAR ADJOURNED/STUDY SESSION OF THE CITY COUNCIL CITY OF COSTA MESA July 10, 2012 The City Council of the City of Costa Mesa, California met in a Regular Adjourned/Study Session on Tuesday, June 12, 2012 at 5:00 p.m. in Council Chambers at City Hall, 77 Fair Drive, Costa Mesa. The Mayor called the meeting to order at 5:09 p.m. ROLL CALL: (00:16) Council Members Present: Mayor Eric R. Bever Mayor Pro Tem James M. Righeimer (arrived at 5:10 p.m.) Council Member Wendy Leece Council Member Stephen M. Mensinger Council Members Absent: Council Member Gary Monahan Officials Present: Assistant CEO Rick Francis City Attorney Thomas Duarte Deputy CEO/Economic & Develop Dir. Peter Naghavi Public Services Director Ernesto Munoz Finance/IT Director Bobby Young Interim City Clerk Brenda Green Executive Secretary Chris Goldsworthy PUBLIC COMMENTS 1. Robin Leffler, Costa Mesa, asked to have public comments taken after the presentation in order to make more informed comments. Ms. Leffer stated that the item to be presented was timely, she supported it and staff would be challenged to make it equitable. (00:44) MOTION: To allow public comments after the presentation of Item 1, moved by Council Member Leece. The motion failed for lack of a second. 2. Larry Weichman, Costa Mesa, spoke as a business owner in opposition to the proposed business tax increase. Mr. Weichman stated that it would double his business fees and fellow businesses owners were also in opposition. (02:29) 3. Perry Valantine, Costa Mesa, spoke in support of the proposed increase of the business license tax. (03:38) Study Session — July 10, 2012 - Page 1 UNOFFICIAL UNTIL APPROVED CC -2 4. John Feeney, Costa Mesa, spoke in opposition to the proposed increase of the business license tax and stated that businesses would pass the tax to customers. (04:34) 5. Beth Refakes, Costa Mesa, expressed concern of losing businesses to surrounding cities and taxes passed on to consumers. Ms. Refakes stated that the city's low taxes attract businesses and suggested making the business license tax more equitable. (05:32) 6. John Hawley, Costa Mesa business owner, spoke in opposition to the proposed business license tax increase stating it should be put off until after the election and that the cost would be passed on to the consumer. (07:25) ITEMS FOR DISCUSSION 1. Discussion Regarding Possible Business License Tax Increase (08:46) Finance/IT Director Bobby Young provided an overview of the current business license tax structure and the proposed increase for the November ballot. Mr. Young presented a brief history of the business license tax, comparative data and analysis. Common business license tax structures depicting gross receipts, mill rate or per employee formulas was presented and explained. Mr. Young stated that the business license tax was last changed by Ordinance on April 1, 1985 and is currently assessed by gross receipts, with certain exceptions and a $200 cap on the tax at gross receipts of $500,000 or more. An exception for swap meets, special events, contractors, taxicabs and vehicle/tow truck tax was presented. Mr. Young stated that a consultant was preparing a report of the entire business license structure using comparative data. Mr. Young responded to questions from Council Members regarding gardeners displaying business licenses on their trucks, the elimination of the business license inspector position, the tax for individual swap meet vendors and cities that don't collect a business license tax. Mr. Young continued the presentation explaining the Santa Ana's base tax and mill rate tax structure and provided examples. Comparative data and formulas were explained for Orange, Newport Beach and Huntington Beach and Irvine who offer a tax rate decrease for businesses earning less than $4,000 and an in -town commercial tax collection and no sales tax collection formula. Mr. Young presented the proposed increase of the business license tax of $50 to $10,000 based gross receipts. Mr. Young stated that a gross receipts formula would be easier to understand, collect and verify. A per employee formula may be more difficult, use of W -2's would be necessary, and a mill rate formula may also be equitable. Mr. Young stated that online payments would be evaluated. Study Session — July 10, 2012 - Page 2 UNOFFICIAL UNTIL APPROVED CC -2 Council Member Mensinger asked questions on non -profits, multiple business partnerships the possibility of a gas station owner and retail store paying the same tax. Council Member Mensinger asked for a more equitable proposal and a staff position to enforce the tax. Council Member Leece asked questions about collecting a business license tax from out-of- town contractors, and asked for more information to be presented at the next regular Council meeting. Mayor Bever stated that the proposed tax structure may be inequitable. Mayor Bever offered that a sales tax business versus a wholesale commercial business may be difficult to determine and felt businesses could move to Irvine due to their lower tax structure. Mayor Bever asked for a lower tier for home-based businesses and discussed the procedure of placing the proposed increase on the November ballot. Mayor Pro Tem Righeimer stated that the proposed structure as presented was equitable and suggested that Newport Beach's program works best, bringing in larger tax revenue. Mayor Pro Tem Righeimer called for a simple system based on number of employees, making it easier for businesses to understand and determine their business license tax and suggested consideration of the proposed increase at the next regular Council meeting. The City Council took no action on this item. 2. Employee of the Month (01:18:40) No nominations were received. COUNCIL MEMBERS' REPORTS, COMMENTS, AND SUGGESTIONS (01:18:49) None received. ADJOURNMENT (01:19:00) The Mayor adjourned the Study Session at 6:28 p.m. Mayor of the City of Costa Mesa ATTEST: Interim City Clerk of the City of Costa Mesa Study Session — July 10, 2012 - Page 3 UNOFFICIAL UNTIL APPROVED CC -2 SPECIAL MEETING OF THE CITY COUNCIL CITY OF COSTA MESA July 25, 2012 The City Council of the City of Costa Mesa, California met in a Special Closed Session, on Wednesday, July 25, 2011 at 4:30 p.m. in Council Chambers, 77, Fair Drive, Costa Mesa. The Mayor Pro Tem called the meeting to order. ROLL CALL: Council Members Present: Mayor Eric R. Bever (arrived at 4:35 p.m.) Mayor Pro Tem James M. Righeimer Council Member Wendy Leece Council Member Stephen M. Mensinger Council Member Gary Monahan Council Members Absent: None Officials Present: City CEO Thomas R. Hatch Assistant CEO Rick Francis City Attorney Thomas Duarte Deputy CEO/Economic Development Dir Peter Naghavi Public Services Director Ernesto Munoz Finance/IT Director Bobby Young Interim City Clerk Brenda Green Public Comments None Received. Closed Session 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), 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 The City Attorney announced that there will be no closed session report. The Mayor Pro Tem recessed the meeting to Conference Room 1 B for the closed session. ADJOURNMENT The special meeting adjourned at 5:10 p.m. REGULAR MEETING OF THE CITY COUNCIL AND SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY CITY OF COSTA MESA July 17, 2012 The City Council of the City of Costa Mesa, California met in a regular session on July 17, 2012 at 5 p.m. in the Council Chambers of City Hall, 77 Fair Drive, Costa Mesa. The meeting was called to order by the Mayor. ROLL CALL Council Members Mayor Eric R. Bever Present: Mayor Pro Tem James Righeimer Council Member Wendy Leece Council Member Stephen Mensinger Council Member Gary Monahan Council Members Absent: Officials Present: PUBLIC COMMENTS CLOSED SESSION None Chief Executive Officer Thomas R. Hatch City Attorney Thomas Duarte Economic and Development Services Director Peter Naghavi Public Services Director Ernesto Munoz Assistant Chief Executive Officer Rick Francis Public Affairs Manager Bill Lobdell Interim City Clerk Brenda Green 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 Association (CMPA), 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 anticipated litigation, significant exposure to litigation pursuant to Government Code Section 54956.9(b) for one case. Regular Meeting - July 17, 2012 - Page 1 3. Request for Special Leave of Absence: Public Employee, pursuant to California Government Code Section 54957. CALL TO ORDER PLEDGE OF ALLEGIANCE - Council Member Wendy Leece (00:00:06) ROLL CALL (00:00:37) Council Members Mayor Eric R. Bever Present: Mayor Pro Tem James Righeimer Council Member Wendy Leece Council Member Stephen Mensinger Council Member Gary Monahan Council Members None Absent: Officials Present: Chief Executive Officer Thomas R. Hatch City Attorney Thomas Duarte Economic and Development Services Director Peter Naghavi Public Services Director Ernesto Munoz Assistant Chief Executive Officer Rick Francis Finance and IT Director Bobby Young Police Chief Tom Gazsi Interim Fire Chief Tom Arnold Public Affairs Manager Dan Joyce Public Affairs Manager Bill Lobdell Transportation Services Manager Raja Sethuraman Interim City Clerk Brenda Green Acting Deputy City Clerk Christine Cordon CLOSED SESSION REPORT (00:00:52) City Attorney Duarte reported the following action was taken on Closed Session Item No. 3: (00:00:54) MOTION: Deny request for special leave of absence Moved by Mayor Pro Tem James Righeimer, seconded by Council Member Stephen Mensinger. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem Member Wendy Leece, Council Member Stephen Gary Monahan Noes: None. Absent: None. ANNOUNCEMENTS (00:01:16) Regular Meeting - July 17, 2012 - Page 2 James Righeimer, Council Mensinger, Council Member The Mayor played a video clip of the "Costa Mesa Minute" featuring upcoming events. The Mayor announced that Old Business Item No. 1 has been continued to the next regular Council meeting, and New Business Item No. 4 has been withdrawn. (00:03:24) PRESENTATIONS (00:03:37) The Mayor recognized Video Production Coordinator Dane Bora and Video Production Specialist Brad Long as employees of the month for July for their contributions to the city's cable channel. Public Affairs Manager Bill Lobdell provided an overview of their accomplishments and accolades. (00:03:41) The Mayor presented a certificate of recognition to resident and youth surfer Meah Collins for her win at the 2012 USA Surf Championship. (00:09:53) A military tribute video from the OC Fair and Event Center, "Salute to Heroes," was played. (00:14:42) PUBLIC COMMENTS (00:19:29) Rich Reiser, Costa Mesa, spoke about pedestrian and cyclist safety on West 19th Street. (00:20:16) Kelly Vucinic, Police Department Crime Prevention Specialist, announced the upcoming police department's National Night Out event. (00:21:40) Dan Goldmann, Costa Mesa, commented on the charter and leadership. (00:23:32) John Feeney, Costa Mesa, thanked everyone involved in the rebuttal that was submitted to the Orange County Transportation Authority (OCTA) which addressed concerns regarding the 1-405 Freeway Improvement Project. (00:27:19) Terry Koken, Costa Mesa, shared a story. (00:29:06) Jay Humphrey, Costa Mesa, echoed public comments about the 1-405 Freeway Improvement Project, commented on a recent shooting and commended the police department's response, and expressed concern regarding a planning commissioner's recent fundraiser. (00:31:49) Diane Swartz, Costa Mesa, agreed with a previous public speaker's comments regarding the 1-405 Improvement Project, shared conditions in her neighborhood resulting from the discharge of fireworks on the 4th of July, and spoke about the city's new website. (00:36:38) Beth Refakes, Costa Mesa, commented on the fireworks on the Eastside during the 4th of July, spoke in support of recognizing the video production team as employees of the month and supported video equipment upgrades, referred to Regular Meeting - July 17, 2012 - Page 3 an article regarding CalPERS, and echoed comments made about the 1-405 Freeway Improvement Project. (00:40:10) Ernie Feeney, Costa Mesa, refuted news articles regarding the city's lack of concern for the seniors, and stated that the current council has done more for the seniors than any previous council. (00:42:54) Robin Leffler, Costa Mesa, thanked staff and Council for the 1-405 Freeway Improvement Project rebuttal, and commented on added language in the charter regarding council contact with staff. (00:46:41) Marshall Krupp, Costa Mesa, spoke about the special meeting on Redevelopment Agency funds, and shared his experience on a recent police ride along and opined there are not enough officers in the field. (00:49:23) Bonnie Copeland, Costa Mesa, spoke about residences at the end of 19th Street and expressed concern that residents in that area of Newport Beach are not paying for the use of Costa Mesa streets and services. (00:52:33) Linda Schwandt, Costa Mesa, commented about the homeless population in the city and the Neighborhood Improvement Task Force. (00:55:06) Tamar Goldmann, Costa Mesa, spoke about transparency and access to payments for city consultants. (00:58:29) Martin H. Millard, Costa Mesa, provided comments on the city's new website, noted the lack of a 19th Street sign in the Westside, expressed concern regarding vending trucks in Mesa North, and commented on Spanish translation at Council Member Leece's town hall meeting. (01:01:22) Katie Arthur, Costa Mesa, complimented the rebuttal letter on the 1-405 Freeway Improvement Project, requested Council to reevaluate the number of days for fireworks discharge and sales, and commented on the appeal process. (01:03:30) Sue Lester, Costa Mesa, expressed appreciation in Council's efforts to oppose the 1-405 Freeway Improvement Project, spoke about fireworks, and commented on Council Member Leece's town hall meeting. (01:06:44) Sandra Genis, Costa Mesa, echoed public comments made regarding the 1-405 Freeway Improvement Project, and commented on the soundwall in the Environmental Impact Report (EIR). (01:09:22) Cindy Brenneman, Costa Mesa, announced an upcoming fundraiser to benefit the Costa Mesa Community Emergency Response Team (CERT) program, commented on the relevance of public comments, and spoke about council members addressing individual public speakers. (01:11:28) The Mayor recessed the meeting at 7:22 p.m Regular Meeting - July 17, 2012 - Page 4 The Mayor reconvened the meeting at 7:40 p.m. COUNCIL MEMBERS' REPORTS, COMMENTS, AND SUGGESTIONS (01:14:50) Mayor Eric R. Bever announced that the City of Huntington Beach voted 4-3 to oppose Alternative 3 of the 1-405 Freeway Improvement Project, noted that the Cities of Westminster and Fountain Valley are anticipated to oppose Alternative 3 while the City of Seal Beach has already voted in opposition, and announced an upcoming meeting with other mayors to collaboratively draft correspondence to OCTA in opposition of Alternative 3; addressed comments made regarding a CalPERS article and noted the financial impacts created by unfunded liability; referred to an article regarding Bethel Towers and noted its inaccuracies; commented on the enforcement of illegal fireworks; addressed concerns regarding the new website; commented on audio and visual issues in video production; announced the first Costa Mesa First Fridays Road Show at City Hall; addressed concerns regarding the homeless; and spoke about landscape on Victoria Street. (01:14:58) Mayor Pro Tem Jim Righeimer recapped the second public hearing regarding the proposed charter; spoke about the 1-405 Freeway Improvement Project; commented on a CalPERS article and pension rates; and spoke about the special meeting regarding Redevelopment Agency funds and comments made at the meeting from public speakers. (01:21:13) Council Member Wendy Leece addressed a comment made regarding safety on 19th Street for seniors; referred to a public speaker's comment and clarified she did not call the police department regarding a fireworks incident on the 4th of July; addressed a public comment regarding disclosure of warrant information; spoke about her town hall meeting and noted the acceptance and understanding of having a Spanish translator; commented on Neighborhood Watch programs; shared her experience with fireworks on the 4th of July; spoke about the 1-405 Freeway Improvement Project and urged residents to continue contacting local officials in opposition; announced the July 31 meeting regarding the vote for the charter, and expressed concern in the proposed charter; commented on the CalPERS article; and announced the upcoming Costa Mesa Senior Center spaghetti dinner. (01:32:31) Council Member Stephen Mensinger complimented staff on the new website and reminded everyone that the site is a work in progress; announced his attendance at the grand opening of TechSpace; announced the upcoming Costa Mesa's Championship 40th Annual Will Jordan Classic; shared his experience on a tour of local company Claybell; complimented public safety personnel for the response to the Redwood Avenue shooting; complimented Lieutenant Mark Manley for his participation at a community meeting at Shiffer Park; commented on negotiations with employee groups; spoke about the high school cheer squads, stated they do not receive community funds and are present at events to fundraise, and requested that the youth be left alone politically; directed staff to provide a follow-up regarding the upgrade of video and audio equipment; asked staff to contact the fireworks companies to provide a summary of revenue Regular Meeting - July 17, 2012 - Page 5 generated; requested staff provide an update regarding fireworks enforcement of previous and future years; and commented on homeless issues in the city and solution plans. (01:39:52) Council Member Gary Monahan commented on the CaIPERS article and the financial impact on the city's budget; thanked everyone for the compliments regarding the 1-405 Freeway Improvement Project and thanked staff for the rebuttal document; announced the upcoming OCTA Highway Committee meeting and urged residents to contact the OCTA board members to oppose; and announced the upcoming Chamber of Commerce golf tournament. (01:52:44) REPORT - CHIEF EXECUTIVE OFFICER (CEO) (01:54:54) CEO Hatch responded to comments from public speakers and provided the following updates: 1. Indicated the website is an outstanding website and there may be glitches, and encouraged members of the public to submit comments, thoughts, and suggestions; 2. Welcomed newly hired Recreation Manager Bob Knapp; 3. Provided an update regarding the 1-405 Freeway Improvement Project, 4. Announced an After Action Report related to fireworks has been distributed to the Council and that the report is available on the city's website, complimented public safety staff, and shared statistics regarding enforcement during the 4th of July; 5. Addressed concerns regarding availability of information on the website, and indicated staff will provide information and responses as soon as possible. (01:54:55) CONSENT CALENDAR (02:00:37) Reading Folder. (a) Request for Alcohol Beverage Control license: ARC Restaurant, 3321 Hyland Avenue, Suite F, Costa Mesa, California; Thai Tastee, 560 West 19th Street, Unit C, Costa Mesa, California. ACTION: Received and processed. 2. Reaular Adiourned Meetina/Studv Session of January 11. 2011: and Regular Adjourned Meeting/Study Session of March 8, 2011. ACTION: Approved. 6. Adopt plans and specifications, and working details for Corporation Yard Fire Damage Restoration at 2310 Placentia Avenue, Costa Mesa, City Project No. 12-11, and award a construction contract to St. George Construction, Inc., 7839 Adwen Street, Downey, California, in the amount of $177,699 (base bid plus additive bid item No. A-1). Regular Meeting - July 17, 2012 - Page 6 (a) Budget Adjustment No. 13-003 in the amount of $177,699. ACTION: Approved; authorized the Mayor and Interim City Clerk to sign; and approved Budget Adjustment No. 13-003 in the amount of $177,699. MOTION: Approve Consent Calendar Item Nos. 1, 2, and 6. Moved by Council Member Gary Monahan, seconded by Mayor Pro Tem James Righeimer. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. ITEMS REMOVED FROM CONSENT CALENDAR (02:01:59) 3. WARRANT RESOLUTION 2428: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ALLOWING CERTAIN CLAIMS AND DEMANDS, AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME ARE TO BE PAID, funding City operating expenses for $1,135,672.59. (02:01:59) Tamar Goldmann, Costa Mesa, spoke about outsourcing and compared the amount of legal bills paid to the cost of employees. (02:02:10) MOTION: Approve Moved by Mayor Eric R. Bever, seconded by Mayor Pro Tem James Righeimer. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. 4. WARRANT RESOLUTION 2429: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ALLOWING CERTAIN CLAIMS AND DEMANDS, INCLUDING PAYROLL REGISTER NO. 12-14 AND PAYROLL REGISTER NO. 12-13A AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME ARE TO BE PAID, funding Payroll No. 12-14 for $2,078,985.73 and Payroll No. 12-13A for $1,059.89, and City operating expenses for $728,882.11, including payroll deductions. (02:04:13) Council Member Leece referred to the payment to Talon Executive Regular Meeting - July 17, 2012 - Page 7 Services and directed staff to disclose the services rendered. (02:04:13) CEO Hatch assured that the information would be made available to members of the public upon request, and an e-mail summary of the services could also be provided to the Council. (02:04:58) MOTION: Approve Moved by Council Member Stephen Mensinger, seconded by Mayor Pro Tem James Righeimer. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. Council Member Monahan suggested hearing Consent Calendar Items Nos. 7 and 8 before 5. The Mayor consented. (02:05:36) Discussion ensued among the Council regarding a potential conflict of interest Council Member Leece has with Consent Calendar Item No. 5, and Mayor Bever noted she has recused herself in the past from issues concerning Banning Ranch. Council Member Leece explained that, even though she lives within 500 feet of the development, she stated she believes she has the legal right to contribute to the matter and not have to recuse herself. (02:05:46) City Attorney Duarte indicated that Council Member Leece can make her own decision even though legal has provided advisement that there is a conflict. (02:06:25) 7. Cooaerative Aareement No. D11-066 with the Countv of Oranae: the Orange County Flood Control District; the Cities of Irvine, Laguna Hills, Laguna Woods, Lake Forest, Newport Beach, Orange, Santa Ana, and Tustin; the Irvine Water Ranch District; the Irvine Company; and Lennar Homes of California, Inc., for funding of Nutrient, Fecal, Coliform and Toxics Total Maximum Daily Load (TMDL) studies in the Newport Bay Watershed for a three-year term with the option of extending for one additional three-vear term. (02:07:49) Council Member Leece requested confirmation from staff that the city is not spending any money on the item. Public Services Director Ernesto Munoz confirmed that money is not being spend on this project currently, but the agreement will allow the city to take advantage of any grants through the project, and any costs associated with the project is part of the approved water quality budget. (02:07:49) MOTION: Approve; authorize the Mayor and Interim City Clerk to sign Regular Meeting - July 17, 2012 - Page 8 Moved by Mayor Eric R. Bever, seconded by Council Member Stephen Mensinger. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. 8. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADJUSTING THE RATES OF PAY FOR POLICE RESERVE OFFICER. (02:09:35) Council Member Leece requested a comparison of rates with other cities and asked if it is difficult to attract and retain reserve officers. (02:09:36) Human Resources Manager Lance Nakamoto shared results of a preliminary survey conducted with neighboring cities and indicated that $27 per hour is the median, and that law enforcement agencies in general have a difficult time retaining officers. (02:10:17) Council Member Monahan commented on the comparable qualifications of reserve officers to full-time officers, and stated his belief that the reserve officers should be paid more than the animal control officers. (02:12:00) Mayor Pro Tem Righeimer spoke in support in the pay increase. (02:14:58) Cindy Brenneman, Costa Mesa, supported a modified tier system, but expressed concern in hiring at a pay rate equal to reserve officers who have served the city for a longer period of time. (02:17:20) Marshall Krupp, Costa Mesa, spoke in support of a pay increase and expressed concerns regarding intended candidates for reserve officers. (02:18:20) Harold Weitzberg, Costa Mesa, urged Council not to criticize the police officers. (02:21:59) Sue Lester, Costa Mesa, asked if the city is actively seeking reserve officers. (02:23:33) Tamar Goldmann, Costa Mesa, compared the proposed increase of pay to the rate of legal services. (02:23:46) Reggie Mundekis, Orange, expressed concern in a police force comprised of part-time reserve officers. (02:24:52) Regular Meeting - July 17, 2012 - Page 9 Robin Leffler, Costa Mesa, spoke in support of increased pay for reserve officers. (02:26:01) Sandra Genis, Costa Mesa, stated that the increase is not much. (02:27:56) Eleanor Egan, Costa Mesa, commented on the purpose of employee pensions to prevent bribery and negative temptation. (02:29:01) Mayor Bever shared his dismay at how the intent of the pay increase was being skewed. (02:31:11) Council Member Monahan indicated he brought this proposed increase forward because he felt the reserve officers deserved more pay than the animal control officers due to their level of skills equivalent to full-time officers, and responded to comments made by public speakers. (02:31:43) Council Member Leece expressed appreciation of the efforts to recruit reserve officers. (02:33:55) Mayor Pro Tem Righeimer referred to comments made regarding the dismantling of the police force, union influence, and overtime, and noted that the comments are becoming political. (02:36:06) Council Member Mensinger discouraged public speakers and Council candidates from politicizing. (02:42:35) Mayor Bever expressed appreciation for the reserve officers and their professionalism, and stated his disappointment at how some members of the community have framed the issue. (02:43:26) MOTION: Adopt Resolution No. 12-49: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADJUSTING THE RATES OF PAY FOR POLICE RESERVE OFFICER, as amended to reflect a fixed rate of $33 per hour. Moved by Council Member Gary Monahan, seconded by Council Member Stephen Mensinger. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: None. Absent: None. 5. Traffic Mitigation Agreement with Newport Banning Ranch, LLC, 1300 Quail Street, Suite 100, Newport Beach, California, for mitigation of traffic impacts associated with the proposed Newport Banning Ranch Project Regular Meeting - July 17, 2012 - Page 10 within the where of influence of the Citv of Newaort Beach. (02:44:19 Mayor Bever stated that the city does not have jurisdiction over the issue of Banning Ranch and whether the development will be built; indicated that the city's General Plan includes the anticipated impact resulting from Banning Ranch; reminded the public that the issue before the Council tonight is not a determination of the Banning Ranch project, but it is about whether the city accepts the mitigation money, and requested that public speakers comment only about mitigation issues; and clarified that if the city does not accept the proposed funds, then the city is financially liable for traffic mitigation. (02:44:26) Transportation Services Manager Raja Sethuraman provided a presentation, which included the project overview, project map, trip generation, trip distribution, project impacts and mitigation, and the traffic mitigation agreement terms. (02:47:11) Mayor Bever asked if there are any provisions in the agreement that affect the amount based on inflation. Mr. Sethuraman responded that there are contingencies built in, but no increase or forecast beyond the proposed number. (02:53:47) Beth Refakes, Costa Mesa, expressed concerns about inflation and cost, and additional mitigations not covered in the agreement. (02:55:10) Terry Koken, Costa Mesa, disagreed with the placement of the item on the Consent Calendar. (02:58:16) James Quig, Costa Mesa, expressed concerns regarding the financing and decision-making process. (03:00:58) Benjamin Hubbard, Costa Mesa, urged Council to oppose the agreement. (03:01:27) Greg Ridge, Costa Mesa, opined it is too early to make a decision regarding traffic mitigation. (03:03:00) Debby Koken, Costa Mesa, suggested that Council take a stance regarding the Banning Ranch development similar to the effort made regarding the 1-405 Freeway Improvement Project. (03:04:30) John Ursini, Costa Mesa, spoke in support of the Banning Ranch development. (03:06:22) Katie Arthur, Costa Mesa, spoke in opposition of the agreement. (03:06:22) Linda Schwandt, Costa Mesa, spoke in opposition of Banning Ranch. (03:09:46) Regular Meeting - July 17, 2012 - Page 11 Harold Weitzberg, Costa Mesa, spoke in opposition of the terms of the agreement. (03:10:17) Susan Shaw, Costa Mesa, spoke in opposition of the agreement. (03:11:41) Bonnie Copeland, Costa Mesa, suggested the item be continued to allow for more information and research. Chris McEvoy, Costa Mesa, urged Council to fight the Banning Ranch development. (03:15:11) Sheila Pfafflin, Costa Mesa, expressed concern regarding the placement of the item on the Consent Calendar, and spoke in opposition of the agreement. (03:16:42) John Feeney, Costa Mesa, spoke in opposition of the agreement. (03:19:52) Dolores Minerich, Costa Mesa, commented on transparency and urged Council to reconsider the project. (03:21:35) Mayor Bever clarified that the Council Members did not bring this item forward, and that it was presented by staff. (03:22:41) Sandra Genis, Costa Mesa, urged Council to oppose the agreement. (03:23:35) Eleanor Egan, Costa Mesa, spoke in opposition of the agreement. (03:26:15) Speaker spoke in opposition of the agreement. (03:28:26) John Stephens, Costa Mesa, expressed concern about various sections of the agreement. (03:31:06) Marshall Krupp, Costa Mesa, opined that the agreement only benefits the developer. (03:34:03) Diane Silvers, Newport Beach, recommended the Council oppose the proposed agreement. (03:37:03) Jeffrey Childs, Costa Mesa, spoke in opposition of the Banning Ranch development. (03:39:50) Suzanne Forrester, Newport Beach, spoked in opposition of the agreement. (03:43:18) Sheila Koff, Newport Beach, urged opposition of the agreement. Regular Meeting - July 17, 2012 - Page 12 (03:44:52) Taoward Lee, Costa Mesa, expressed concern in the lack of benefits to the city with the agreement. (03:46:46) Robin Leffler, Costa Mesa, spoke in opposition of the agreement. (03:48:43) Tamar Goldmann, Costa Mesa, spoke in opposition of the agreement. (03:51:33) Sue Lester, Costa Mesa, suggested that the Council refrain from voting at this time, and spoke in opposition of the development. (03:54:40) Jim Mosher, Newport Beach, noted errors in the staff report and draft agreement, and spoke in opposition of the agreement. (03:56:20) Jay Humphrey, Costa Mesa, spoke in opposition of the Banning Ranch development and the agreement. (03:58:38) Walter Pasternik, Newport Beach, spoke in opposition of the development. (04:00:30) W.D. Heidorn, Newport Beach, spoke about preserving the quality of life and happiness for the residents on the Westside, and urged opposition of the agreement. Steve Ray, Executive Director of the Banning Ranch Conservancy, spoke in opposition of the agreement and development. (04:05:30) Mayor Bever expressed concern that the staff report did not receive legal review and there were no signatures present from the City Attorney's Office. The City Attorney clarified that legal did review the document as to form. (04:08:38) Mayor Pro Tem Righeimer asked why the item was placed on the Consent Calendar. CEO Hatch explained that the placement of this type of agreement on the Consent Calendar is standard practice, and it was not the intent of staff to hide the item on the agenda. (04:09:40) Council Member Leece opined that it was not necessary to approve the agreement at this time, and asked what the downside would be to waiting. Mr. Naghavi indicated that Council may wait to vote, but warned once the other agencies approve the agreement, the city's leverage would be reduced. (04:14:41) Per request from Council Member Mensinger, Mr. Naghavi spoke about the site and density, as well as traffic impacts and mitigation. (04:17:05) MOTION: Receive and file. Regular Meeting - July 17, 2012 - Page 13 Moved by Council Member Wendy Leece. Motion died for lack of second. MOTION: Approve as amended to include Consumer Price Index (CPI) increases after 2015 and cost per unit; authorize the City Chief Executive Officer to sign. Moved by Mayor Pro Tem James Righeimer, seconded by Council Member Gary Monahan. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: Council Member Wendy Leece Absent: None. The Mayor recessed the meeting at 10:50 p.m. The Mayor reconvened the meeting at 11:00 p.m. SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY No items scheduled. PUBLIC HEARINGS - 7 p.m. (Resolution No. 05-55) (04:26:55) 1. PUBLIC HEARING: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, CERTIFYING SPECIAL ASSESSMENTS FOR COLLECTING DELINQUENT CIVIL FINES FOR MUNICIPAL CODE VIOLATIONS. Finance/IT Director Bobby Young presented the report, and noted a revised list (Attachment 1 of the staff report) has been provided. (04:27:09) Gary Thomas, Costa Mesa, requested that his property at 2661 Orange Avenue be reconsidered. (04:28:33) Council Member Monahan asked if the citation would still be paid or would it be waived because the work has been completed if the Council excludes Mr. Thomas' citation from the list. (04:29:49) Mr. Young responded that the fine would still need to be paid because work had not been done on the property for a long period of time. (04:30:15) Alexander J. Vogel, Costa Mesa, stated mail was improperly addressed and the code violation was fixed, and asked that the fees be waived. (04:34:11) Council Member Leece asked if an administrative hearing is part of the process. Mr. Naghavi stated there is an appeal and hearing process. Regular Meeting - July 17, 2012 - Page 14 (04:36:16) MOTION: Approve Adopt Resolution No. 12-50: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, CERTIFYING SPECIAL ASSESSMENTS FOR COLLECTING DELINQUENT CIVIL FINES FOR MUNICIPAL CODE VIOLATIONS, as amended to exclude 2661 Orange Avenue, and 660 Seal Street. Moved by Council Member Gary Monahan, seconded by Mayor Eric R. Bever. The motion carried by the following roll call vote: Ayes: Council Member Gary Monahan, Council Member Stephen Mensinger, Council Member Wendy Leece, Mayor Pro Tem James Righeimer, Mayor Eric R. Bever Noes: None. Absent: None. OLD BUSINESS 1. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADDING CHAPTER III OF TITLE 4 OF THE COSTA MESA MUNICIPAL CODE RELATING TO THE BICYCLE PARKING REGULATIONS. The item was continued to the meeting of August 7, 2012. NEW BUSINESS (04:39:24) 1. Annual performance audit work plan. (04:39:31) Assistant CEO Rick Francis presented the report. (04:39:40) Council Member Leece asked why staff is going through an Request for Qualifications (RFQ) process instead of an Request for Proposals (RFP), and what the cost would be. Mr. Francis indicated an RFQ process is more of a streamlined and faster process, and an RFP process is typically more defined in its scope, and the costs would be determined by the proposals received. (04:45:09) In response to a question from Council Member Mensinger, Mr. Francis described the RFQ process and the difference between an RFQ and RFP. (04:47:51) Council Member Mensinger requested adding additional items to the annual work plan. Mr. Francis explained it would take two members of the Council, and then the work plan would be presented to the entire Council for approval. Council Member Mensinger spoke in support of auditing business license compliance, and the implementation and impact of the 2.5%@55 Regular Meeting - July 17, 2012 - Page 15 retirement formula and unfunded pension liability. (04:51:52) Council Member Monahan suggested fire permits should be audited along with business licenses. (04:52:35) Council Member Leece directed staff to analyze customer service in Development Services. (04:53:17) Perry Valantine, Costa Mesa, referred to the audit of the 2.5%@55 retirement formula and asked if there is any legitimate reason to audit this. (04:55:40) Council Member Monahan suggested that recreation fees be audited. (04:57:03) Discussion ensued among the Council regarding the pension formula audit, the initial CalPERS projections, and actuarials. (04:57:43) Mr. Francis indicated a work plan would be crafted and could be presented to Council in the first meeting in August. CEO Hatch added that staff could move forward with the process administratively. (05:01:56) 2. "Go Green Program" for permit fee waivers for solar systems and electric vehicle charging stations. (05:03:14) Chief Plans Examiner Keith Clark presented the report and responded to questions from the Council. (05:03:31) Council Member Mensinger spoke in support of the program. (05:08:47) Mayor Bever stated that the city has issued fee waivers in the past, but noted a current deficit and spoke in opposition of the waivers at this time. (05:09:30) MOTION: Receive and file. Moved by Mayor Eric R. Bever. Motion died for lack of second. MOTION: Approve the 50 percent program and extend the program through June 30. Moved by Council Member Gary Monahan, seconded by Council Member Wendy Leece. The motion carried by the following roll call vote: Ayes: Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: Mayor Eric R. Bever Absent: None. 3. Telecommunication Technical Services (Emergency Services Equipment Regular Meeting - July 17, 2012 - Page 16 Reauest for Proposal (05:10:41 Lieutenant Bryan Glass presented the report and, along with CEO Tom Hatch and Police Chief Tom Gazsi, responded to questions from the Council regarding the scope of the RFP, current staffing, the response received, the RFP process, and the complexity of the current systems. (05:11:03) Mayor Pro Tem Righeimer expressed in the way the city currently performs the services, spoke in support of directing staff to continue looking for a vendor and separating parts of the RFP, and stated the need for back-up. (05:15:13) The Mayor announced that it was midnight and therefore a vote was required to extend the meeting. (05:24:16) MOTION: Extend the meeting. Moved by Council Member Gary Monahan, seconded by Mayor Pro Tem James Righeimer. The motion carried by the following roll call vote: Ayes: Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger, Council Member Gary Monahan Noes: Mayor Eric R. Bever Absent: None. Speaker stated he does not understand why we cannot keep current staffing. (05:25:00) Robin Leffler, Costa Mesa, suggested recruiting a replacement for the previously filled position. (05:25:21) MOTION: Reject all bids; direct staff to continue exploring shared service models with nearby communities and private companies; separate the RFP into parts; and keep the layoff notice in place. Moved by Mayor Pro Tem James Righeimer, seconded by Council Member Wendy Leece. SUBSTITUTE MOTION: Rescind layoff notice; receive and file. Moved by Mayor Eric R. Bever. Motion died for lack of second. The motion carried by the following roll call vote: Ayes: Mayor Eric R. Bever, Mayor Pro Tem James Righeimer, Council Member Wendy Leece, Council Member Stephen Mensinger Noes: Council Member Gary Monahan Absent: None. Regular Meeting - July 17, 2012 - Page 17 4. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING SECTIONS 2-301(9),2 2-302, AND 2- 304(1) OF CHAPTER IX OF TITLE 2 OF THE COSTA MESA MUNICIPAL CODE RELATING TO APPEAL, REHEARING, AND REVIEW PROCEDURE. ACTION: Withdrawn 5. Discussion Regarding Possible Business License Tax Increase. 05:28:27 Finance/IT Director Bobby Young made the presentation and responded to questions from the Council regarding current business license enforcement, and staffing levels and responsibilities. Council Member Leece expressed concern in the speed of the process and indicated she did not want to make a hasty decision. (05:34:45) Mayor Bever stated the rush to place the business license tax increase on the November ballot is foolhardy. (05:35:33) Mayor Pro Tem Righeimer encouraged placement on the ballot and asked staff to present a number of estimated revenues. (05:36:01) CEO Hatch reminded the Council that in order to move forward with placing the proposed increase on the November ballot, it would require and 4/5th vote. (05:42:26) Robin Leffler, Costa Mesa, spoke in support of a business license tax increase and placement on the November 2012 ballot. (05:43:02) Beth Refakes, Costa Mesa, expressed concern on placing additional tax burden on businesses. (05:44:57) Perry Valantine, Costa Mesa, requested his submitted letter be made a part of the record, and spoke about business license tax fees since 1961. (05:47:13) Council Member Mensinger stated his preference to collect taxes from businesses that have not been paying taxes before raising taxes on current tax -paying businesses. (05:50:50) Council Member Monahan expressed he has no interest in moving forward with the increase, and noted that businesses pay a lot in taxes already. No further discussion ensued or action was taken on this item. REPORT - City Attorney Regular Meeting - July 17, 2012 - Page 18 No report given. ADJOURNMENT - The Mayor adjourned the meeting at 12:25 a.m. to July 31, 2012 at 7 p.m. for a Special Meeting. Next Regular City Council Meeting: August 7, 2012 at 6 p.m. ATTEST: Interim City Clerk of the City of Costa Mesa ATTEST: Interim City Clerk of the City of Costa Mesa on behalf of Successor Agency Mayor of the City of Costa Mesa Mayor of the City of Costa Mesa on behalf of Succesor Agency Regular Meeting - July 17, 2012 - Page 19 UNOFFICIAL UNTIL APPROVED CC -2 SPECIAL MEETING OF THE CITY COUNCIL CITY OF COSTA MESA July 31, 2012 The City Council of the City of Costa Mesa, California met in a Special Closed Session, on Wednesday, July 25, 2011 at 6:00 p.m. in Council Chambers, 77, Fair Drive, Costa Mesa. The Mayor Pro Tem called the meeting to order. ROLL CALL: Council Members Present: Mayor Pro Tem James M. Righeimer Council Member Wendy Leece Council Member Stephen M. Mensinger Council Member Gary Monahan Council Members Absent: Mayor Eric R. Bever Officials Present: City CEO Thomas R. Hatch Assistant CEO Rick Francis City Attorney Thomas Duarte Deputy CEO/Economic Development Dir Peter Naghavi Public Services Director Ernesto Munoz Interim City Clerk Brenda Green Public Comments None Received. Closed Session 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), 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 anticipated litigation, significant exposure to litigation pursuant to Government Code Section 54956.9(b) for one case. The City Attorney announced that there will be no closed session report. The Mayor Pro Tem recessed the meeting to Conference Room 1 B for the closed session. ADJOURNMENT The special meeting adjourned at 6:04 p.m.