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M-052411CITY OF SANTA YlONICA CITY COUNCIL MINUTES MAY 24, 2011 A special meeting of the Santa Monica City Council was called to order by Mayor Bloom at 536 p.m., on Tuesday; May 2&, 2011, at City Council Chambers, 1685 Main Street. Roll Call: Present: Mavor Richard Bloom Mayor Pro Tem Gleam Davis Councilmember Robert T. Holbrook CoLmcilmember Kevin McKeown Councilmember Pam O'Connor Councilmember Shriver Councilmember Terry O'Day Also Present: City Manager Rod Gould City Attorney Marsha Jones Moutrie Cih~ Clerk Maria M. Stewart Acting City Clerk Denise Anderson-Warren CONVENE/PLEDGE On order of Mayor, the City Council com~ened at 5:36 p.m., with Councilmember O'Day absent. Bob Trimborn, Airport Services Director, led the assemblage in the Pledge of Allegiance. STUDY SESSION: Members of the public Joey Fullmer, Jerry Rubin and Denise Barton spoke in silpport of funding for various programs and activifies. City Manager Rod Gould provided an overview and context of the City's current economic state and a general status of the budget. Respective department directors presented individual departmental budgets as followrs: 2011-2013 Biennial Budget Study Session Presentations: Budget Overview: Contest Budget Balancing StrategiesBesuits City Council and City Manager (Office of Sustainability and the Environment, Airport, Community and Government Relations, and proposed Office of Emergency Management) Records and Election Services City Attorney Human Resources Finance Library Plannnng and Community Development Information Systems May 24, 2011 On order of the Mayor, the information was received and filed. ORDINANCES: 7-A: Second reading and adoption of Ordinance No. 2359 (CCS}, {~ SIGN ORDINANCE entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA M[,TNICIPAL CODE ~ SECTIONS 9.52.030, 9.52.L35, 9.52.140, 9.52.150, AND 9.52.160 RELATING TO SIGN AREA CALCULATION, PERMITTED PROJECTING SIGNS, ATTRACTIONS OR READER BOARDS, TEMPORARY SIGNS IN THE CM DISTRICT AND TOTAL SIGN AREA AUTHORIZED IN THE RVC DISTRICT", was presented. Motion by Councilmember McKeown, seconded by Mavor Pro Tem Davis, to adopt ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES: Councilmembers McKeown, Holbrook, O'Connor, Shriven, Mayor Pro Tem Davis, Mayor Bloom NOES: None ABSENT: Councilmember O'Day CAMPAIGN 7-B: Second reading and adoption of Ordinance No. 2360 (CCS), CONTRIDUTION i,INIITS entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTIONS 11.04.050 AND 11.04.070 OF THE SANTA MONICA MUNICIPAL CODE RELATING TO CONTRIBUTIONS TO CANDIDATES FOR OFFICE", was presented. l%lotion by Mavor Pro Tem Davis, seconded by Councilmember O'Connor, to adopt ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote: AYES: Councilmembers McKeown, Holbrook, O'Connor, Shriven, Mayor Pro Tem Davis, Mayor Bloom NOES: None ABSTAIN: Councilmember Holbrook ABSENT: Councilmember O'Day Councilmember Holbrook advised that he abstained on this matter because he was not present for the discussion or familiar with the content. EMERITUS POSITIONS 7-C: Second reading and adoption off Ordinance No. 2361 (CCS), entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 2.48.010 AND REPEALING MUNICIPAL CODE SECTIONS 2.12.155, 2.48.030 AND 2.56.031 RELATING TO EMERITUS POSITIONS ON VARIOUS COMMISSIONS", was presented. Motion by Councilmember Mavor Pro Tem Davis, seconded by Mavor Bloom, to adopt ordinance, reading by title only and waiving further reading thereof. The motion was approved by the following vote: 2 May 24, 2011 AYES: Councilmembers McKeown, O'Connor, Holbrook, Shriver, Mayor Pro Tem Davis, Mayor Bloom NOES: None ABSENT: Councilmember O'Day STAFF ITEMS -SPECIAL On order of the Mayor, the City Council recessed its special meeting to a JOINT MEETING: special joint meeting of the City Council, the Redevelopment Agency and REDEVELOPMENT the Public Financing Authority at 8:1 ~ p.m., with Councilmember O'Day AGENCY FUNDING absent. 8-A: Redevelopment Agencs~ Immediate Funding Opportunities - recommendation that: the Council and Redevelopment Agency consider immediate redevelopment funding opportunities and direct staff to prepare necessary contracts to take advantage of such opportunities as recommended in the report. Recommendation that Council authorize the City Manager to negotiate and execute Memorandum of Understanding No. 9374 (CCS/RAS) between the City, the Agency and the School Dishict to provide a stream of tax increment fimding to the District for implementation of Phase I of the Civic Center Joint Use Project, authorize the City Manager to negotiate and execute Funding Agreement No. 9375 (CCS/RAS) between the City, Agency and Exposition Metro Line Construction Authority (Expo) andlor L.A. Country Metropolitan Transportation Authority (Metro) to provide a stream of tax increment funding to Expo and for Metro for basic elements of the Downtown, Memorial Park, and Bergamot light rail stations; approve the payment of issuance costs associated with the 2011 Bonds and approve the modification of Agreement No. 9146 (CCS) with Stradling, Yooca, Carlson, and Rauth to increase total to not exceed $400,000; adopt Resolution No. 10576 (CCS), entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA, APPROVING THE ISSUANCEBY THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA OF ITS EARTHQUAKE RECOVERY REDEVELOPMENT PROJECT, 2011 TAX ALLOCATION BONDS, AND MAKING CERTAIN DETERMINATIONS RELATING THERETO", and making certain determinations relating thereto; and, appropriate funds and adopt budget changes as proposed. Recommendation that the Redevelopment Agency: Authorize the Executive Director to negotiate and execute Memorandum of Understanding No. 9374 (CCS/RAS) between the City, Agency and the School District to provide a stream of tax increment funding to the District for implementation of Phase I of the Civic Center Joint Use Project; to negotiate and execute Funding Agreement No. 9375 (CCS/RAS) between the City, Agency and Expo andlor Metro to provide a stream of tax increment fimding to Expo andlor Meho for basic elements of the Downtown, Memorial Park, and Bergamot light rail stations; and, adopt Resolution No: 531 (RAS), entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $41,050,000 PRhi 1CIPAL AMOUNT OF TAX ALLOCATION BONDS ON CERTAIN TERMS AND CONDITIONS, APPROVING A CONTINUING May 24, 2011 DISCLOSURE CERTIFICATE, APPROVING THE FORM AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND FINANCING DOCUMENTS, AUTHORIZING CERTAIN OTHER OFFICIAL ACTIONS AND PROVIDING FOR OTHER NSATTERS - RELATING THERETO", and approving and authorizing other official action and matters related thereto. Recommendation that the Public Financing Authority: Adopt Resolution No. 7 {PFAS), entitled "RESOLUTION OF THE BOARD OF DIRECTORS OF THE SANTA MONICA PUBLIC FINANCING AUTHORITY AUTHORIZING PURCHASE AND SALE OF REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA, EARTHQUAKE RECOVERY REDEVELOPMENT PROJECT 2011 TAX ALLOCATION BONDS, AND APPROVING CERTAIN RELATED DOCUMENTS AND AUTHORIZING CERTAIN OTHER ACTIONS", and approving and authorizing related documents and actions, was presented. Members of the public Carl Selkin, Sarah Letts, Denise Barton, Patricia Hoffman, Paul Dolid, Mike Myers, Jim Conn, Alex Hodges, Paul DeSantis and Linda Jarsim spoke generally in support of the recommendations and projects presented. Considerable discussion ensued particularly related to the recommendation for funding of the Civic Center, the viability of a refiurbished, active Civic Center Auditorium, and other possible uses for the proposed funding. At the request of Councilmember McKeown and with consensus of Council, the portion of the item related to the School District was taken up ~ separately to allow Councilmember McKeown to recuse himself due to a conflict of interest because of his employment relationship with the District. Cormcihnember McKeown Motion b~MavorlChair Pro Tem Davis, seconded by CounciUA¢ency was exczrsed at 9.•05 p. m. Member O'Connor to authorize the City Manager/Executive Director to negotiate and execute Memorandum of Understanding No. 9374 {CCS/RAS) betureen the City, the Agency and the School District to provide a stream of tax increment funding to the District for implementation of Phase I of the Civic Center Joint Use Project. The motion was approved by the following vote: AYES: Council/Agency Members Shriver, O'Connor, Holbrook, ChairlMayor Pro Tem Davis, Chair/Mayor Bloom NOES: None ABSENT: Council/Agency Members O'Day McKeown Councilmember McKeown Motion by Agenev/Authority/Councilmember McKeown, seconded by returned at 9:16 p. m. Agency/Authority Chair/Mayor Bloom, to approve the total of staff s recommendation. Considerable discussion ensued on the merits of the motion, including the amounts of proposed allocations, costs of individual projects, futuize 4 May 24, 2011 financial viability ofthe Civic Auditorium, and options for using proposed Auditorium funding for other projects. Substitute motion b~ avor/A~ency and Authority Chair Pro Tem Member Davis, seconded by Agency/Authority/Coumcilmember Shriyer, to approve staff s recommendation with the exception of the Civic Center Project and substitute Parking Structure 6 in its place, and direct staff to return with a broader more detailed look and alternatives for the plans for the Civic Center area that may be more flexible. Considerable discussion ensued on the substitute motion and its merits, includins but not limited to the viability of the Ci«e Center, its importance as a cultural asset, future need of the Auditoriuun for City subsidies, the need for arts in the City, and alternate uses for the proposed funding. After considerable discussion, AgencylAuthority Chair/Mayor Pro Tem Davis withdrew her substitute motion. Substitute motion by Agency/Authority=/Councilmember Holbrook seconded by A: encyl Authority/Councilmember McKeown, to approve all items presented by staff; except the Civic Center Auditorium proposal, and consider and fiirther discuss that allocation at a continued meeting on Thursday, May 26, 2011, and allow public comment on flee matter again on that date. The City Clerk called out, for the record, each of the actions the City Council, the Redevelopment Agency and the Public Finance Authority were approving by the above motion, with the exception of the Civic Center Auditoriuum. The substitute motion as approved by the following vote: AYES: AgencylAuthority/Councilmembers Shriver, O'Connor, Holbrook, McKeown, AgencylAuthority Chair/Mayor Pro Tem Davis, AgencylAuthority ChairMayor Bloom NOES: None ABSENT: Agency/AuthoritylCouncilmember O'Day RECESS On order of the ChairlMayor, the Special Joint Meeting of the Redevelopment Agency, Public Financing Authority and City Council recessed at 10:25 pm., to Thursday, May 26, 5:30 p.m., and the special City Council meeting reconvened, with Councilmember O'Day absent. CDUNCII~ I~'El@~IS: 13-A: Recommendation to accept >H roily Arms' resignatian from the Commission an the Status of Women and authorize the City Clerk to publish the vacancy, was presented. Motion by Councilmember Holbrook seconded by Mayor Pro Tem Davis, to accept resignation with regrets and approve recommendation. The motion was unanimously approved by voice vote, with Councilmember O'Day absent. May 24, 2011 SPEC'IP.I, JOINT On order of the Mayor, the joint meeting of the City Council, the continued 1dIEETINO ~®NT'D: Redevelopment Agency and the Public Financing Authority was f REIBEVEI~OPMENT reconvened on Thursday, May 25, at 5:4ip.m., with all members present. AGENCY FIJNIDING City Clerk Stewart being absent. Denise Anderson-Warren attended as Acting City Clerk. On order of the Mayor and Agency/Authority Chair, discussion continued on the proposed funding for the Civic Center Auditorium. 8-A: Redevelopment Ageney Immednate Fnnding ®pportunities - continued diseussion from Tuesday,lVlay 24, 2011. Staff presented the subject matter and responded to questions raised by CoLmcil by providing additional information showing comparisons and available options for the Civic Center renovation project. Members of the public D'Lynn Waldron, Zina Joseph, Mike Bone, Bruce Cameron, Lori Nashtm, Nigel Grain~e, Nina Fresco, Jerry Rubin, Susan McCarthy, Michael Myers, Edward Edwards, Fred Deni, Larry Gruber, Tom Cleys, Roger Denser, Geoff Emery, David Kaplan, and Ruthann Lehrer spoke in support of the mixed-use option to renovate the Civic Center Auditorimn. Motion by Agency/AuthoritylCoimcilmember McKeown. seconded by Ageney/Authority/Councilmember O'Connor, to approve staff recommendation. Substitute motion from AeencvlAuthority/Councilmember O'Da seconded by Aeencv/Authority/Councilmember Shriver. to not fund the Civic Center, but instead to approve funding for reconstruction of Parking Structure #6 and to use the revenue from that parking structure to offset improvements to the Civic Center. Discussion ensued on the merits of renovating the Civic Center Auditorimn and whether it would be more beneficial to approve $25 million in fimding to do the seismic and ADA upgrade, to save the building from further decline. Motion to amend b~gency/Authority/Councilmember O'Dav, by allocating $25 million for seismic and ADA upgrades to the Civic Center with the remaining balance going towards the renovation of Parking #6. The amendment was accepted as friendly by the seconder. The motion failed by the following vote: AYES: Agency/Authority/Councilmembers O'Day, Shriver, Chair/Mayor Pro Tem Davis NOES: Agency/Authority/Councilmembers McKeown, Holbrook, O'Connor, ChairlMayor Bloom ABSENT: None 6 May 24, 2011 Motion to_amend to the main motion by A~encv/AuthoritvlCouncilmember Holbrook, to direct staff to pursue all available public and private foundation grants as well as entities that provide grant monies to contribute ', towards the Civic Center restoration project. The amendment was accepted by the maker and seconder. The motion, as amended, was approved by the follor~~ng vote AYES: Agency(Authority/Cotmeilmembers O'Connor, Holbrook, McKeown, Chair/Mayor Bloom NOES: AgencylAuthority/Councilmembers Shriver, O'Day, Chair/Mayor Pro Tem Davis ABSENT: None Chair~ayor Pro Tem Davis stated for the record that her "no" vote was not a vote against the Civic or against the Arts, but that it was a vote against the uncertainty that is associated with this particular project and with her concerns that all of the cultural or other alternatives have not been considered for adaptive reuse of the Civic Center Auditorium ADJ~dTRNMENT: On order of the Chair/Mayor, the special joint meeting of the City Council, Redevelopment Agency, and Public Financing Authority was adjourned on Thursday, May 26, 2011, at 8:09 p.m.; in memory of Chester Collins and Diane Talarico. FITTEST: APPROVED: ~~ - Maria M. Stewart Richard Bloom City Clerk Mayor ~~ ~~~1-~a~- Denise Anderson-Warren Acting City- Clerk 7 May 24, 2011