Ginsburg, Brand, Aust, Sammarco, Kilroy, Mayor Aspel
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1 MINUTES Redondo Beach City Council Thursday, December 26, 2013 Open session Adjourned Regular Meeting - 3:00 PM 3:00 P.M. OPEN SESSION REGULAR MEETING CALL MEETING TO ORDER A Regular Meeting of the Redondo Beach City Council was called to order by Mayor Aspel at 3:17 p.m. in the City Hall Council Chambers, 415 Diamond Street, Redondo Beach, California. ROLL CALL Councilmembers Present: Councilmembers Absent: Officials Present: Ginsburg, Brand, Aust, Sammarco, Kilroy, Mayor Aspel None Michael W. Webb, City Attorney C. SALUTE TO THE FLAG AND INVOCATION At the request of Mayor Aspel, the audience and Councilmembers rose to salute the flag followed by a moment of silence. D. PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS E. APPROVAL OF ORDER OF AGENDA It was the consensus of the City Council to approve the Order of Agenda as presented. F. AGENCY RECESS at 3:19 P.M. F.1 REGULAR MEETING OF THE COMMUNITY FINANCING AUTHORITY. The City Council recessed its regular meeting at 3:19 p.m. to conduct a Special Meeting of the Community Financing Authority. RECONVENE: 3:22 P.M. ROLL CALL Councilmembers Present: Councilmembers Absent: Officials Present: Ginsburg, Brand, Aust, Sammarco, Kilroy, Mayor Aspel None Michael W. Webb, City Attorney G. BLUE FOLDER ITEMS- ADDITIONAL BACK UP MATERIALS
2 RED FOLDER ITEMS BLUE FOLDER ITEMS Motion by Councilmember Sammarco, seconded by Councilmember Brand, finding that the need arose subsequent to the posting of the agenda to add back up material for Items M1, M3 and N2. Motion carried unanimously. H. CONSENT CALENDAR, read all Ordinances and Resolutions by title only which were included on the Consent Calendar. Motion by Councilmember Kilroy, seconded by Councilmember Aust to approve the following Consent Calendar items, and by its concurrence, the Council: H.1 APPROVED AFFIDAVIT OF POSTING FOR THE CITY COUNCIL ADJOURNED REGULAR AND REGULAR MEETING OF DECEMBER 26, H.2 APPROVED MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA. H.3 APPROVED THE FOLLOWING MINUTES. A. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 3, B. REGULAR MEETING OF THE CITY COUNCIL DECEMBER 10, H.4 AUTHORIZED THE CITY CLERK S OFFICE TO PURCHASE 13 DELL LATITUDE E7440 TOUCH SCREEN LAPTOP COMPUTERS FROM DELL, INC. (DELL) OFF OF WESTERN STATES CONTRACTING ALLIANCE/NATIONAL ASSOCIATION STATE PURCHASING OFFICERS (WSCA/NASPO) COOPERATIVE PURCHASING CONTRACT #B27160 AT A COST OF $16, FROM PEG FUNDS AND CITY CLERK S OFFICE BUDGETED FUNDS FOR THE ELECTRONIC AGENDA PROJECT. Motion carried unanimously. I. EXCLUDED CONSENT CALENDAR ITEMS J. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS K. EX PARTE COMMUNICATIONS L. PUBLIC HEARINGS M. ITEMS CONTINUED FROM PREVIOUS AGENDAS M.1 CONTINUED FROM DECEMBER 17, 2013 CITY COUNCIL MEETING. DISCUSSION AND CONSIDERATION OF APPROVAL OF AMENDMENTS TO AGREEMENTS WITH TRCF REDONDO, LLC TO FACILITATE THE DEVELOPMENT OF A THIRD HOTEL PROJECT AT 2420 MARINE AVENUE. PAGE NO. 2
3 A. APPROVE CONTRACT NO. C , AN AMENDMENT TO LEASE AGREEMENT BETWEEN THE REDONDO BEACH COMMUNITY FINANCING AUTHORITY AND THE CITY OF REDONDO BEACH AND AUTHORIZE THE MAYOR SIGN THE DOCUMENT; AND B. 1. APPROVE CONTRACT NO. C , AN AMENDMENT TO SIDE AGREEMENT [PARKING PARCEL]; AND 2. APPROVE CONTRACT NO. C , A CONDITIONAL TERMINATION OF SIDE AGREEMENT [TOD PARCEL] AMONG THE CITY OF REDONDO BEACH, THE REDONDO BEACH COMMUNITY FINANCING AUTHORITY, TRCF REDONDO, LLC AND TRCF REDONDO TOD, LLC AND AUTHORIZE THE MAYOR TO SIGN THE AMENDMENT; AND C. RATIFY CONTRACT NO. C , AN AMENDED AND RESTATED GROUND LEASE BETWEEN THE CITY OF REDONDO BEACH AND TRCF REDONDO TOD, LLC, AND AUTHORIZE THE MAYOR TO SIGN THE LEASE; D. AUTHORIZE THE MAYOR TO EXECUTE EACH DOCUMENT IN SUBSTANTIALLY THE FORM PROVIDED TO THE CITY COUNCIL, AND FURTHER AUTHORIZE THE MAYOR TO MAKE SUCH MINOR OR ADMINISTRATIVE CHANGES TO THE DOCUMENTS AS MAY BE REQUIRED IN ORDER TO ACCOMPLISH THE INTENT OF THE PARTIES, AND TO SIGN SUCH ADDITIONAL ADMINISTRATIVE OR PROCEDURAL DOCUMENTS AS MAY BE REQUIRED IN ORDER TO ACCOMPLISH THE INTENT OF THE PARTIES, OR AS MAY BE REQUIRED BY THE TITLE OFFICER OR THE ESCROW OFFICER INCLUDING, BUT NOT LIMITED TO DATING DOCUMENTS AS OF THE APPROPRIATE EFFECTIVE DATES; ADDING APPROPRIATE LEGAL DESCRIPTIONS, INCLUDING CORRECTING ERRORS IN LEGAL DESCRIPTIONS; COMPLETING NOTICE INFORMATION; CHANGES NECESSARY TO IDENTIFY THE CORRECT PARTIES TO DOCUMENTS, AND CORRECTING FACTUAL INACCURACIES; AMENDING DOCUMENTS IN ESCROW; AND CHANGES TO ENSURE CONSISTENCY BETWEEN THE TRANSACTION DOCUMENTS. Assistant City Manager Pete Grant gave a PowerPoint presentation and discussed the following: 3 rd Hotel Marine Avenue o Developer negotiating with Homewood Suites by Hilton o 180 room extend stay hotel o Comparison between 2 hotels and 3 hotels City/Authority Pledge existing o TOT and property tax increment debt service guarantee and collateral for construction loan o Placed in $8.5 million Reserve o Pledges only taxes generated by hotels o Developer reserve drawn on before City/Authority reserve Recommended Modifications o Add 3 rd hotel to SSTR Pledge o Modify Lease to establish rent for 3 rd hotel Recommendation PAGE NO. 3
4 o o Approve amendments to agreements with TRCF Redondo, LLC and the City/CFA to facilitate the development of a third hotel at 2420 Marine Avenue Recess the City Council meeting to provide the Mayor the opportunity to execute the agreements Brad Wagstaff of Trancas Management Group noted progress on their first two hotels and thanked the City for their assistance. He said the site is moving along very well and about 45 days away from moving in furniture and opening by the third week in March or the beginning of April. He said the third hotel will be a strong addition to the campus and will create the synergies to make it a destination location. He also reviewed the amenities to include extended stay full suites. In response to Councilmember Brand, Mr. Wagstaff stated the market has continued to be stronger with very limited new supply coming online, and the demand for the area has become very strong, a lot driven by aerospace. He said due to this new development, they have decided to move forward on this development plan now. He said there is competition existing for extended stay in the area which he reviewed and stated Hilton drives a heavy percentage of demand at the hotel, with demand there being unfulfilled. He said they are under negotiation with Hilton currently on the franchise and a full analysis study took place with a recommendation of doing a Homewood Suites. He stated they expect to break ground for the third hotel this summer. He also described the other two hotels to include the Hilton Garden Inn and the Residence Inn with the rates being similar. He explained the financing of the third hotel which will be similar to the first two hotels and said he is personally investing in all three hotels. Mayor Aspel stated the hotels are family-oriented and believed the hotels will be in demand during family-oriented events. In response to Councilmember Aust, Mr. Wagstaff stated Redondo Beach has name recognition and stated the signs will be going up at the end of January. In response to Councilmember Ginsburg, Mr. Wagstaff stated the hotels will be open for reservations two weeks prior to the actual opening date in March, with full opening the beginning of April. In response to Councilmember Brand, Mr. Wagstaff stated the total value of the investments for the first two hotels is just under $60 million and the third one being around $30 million, with a total investment of $90 million. Motion by Councilmember Brand, seconded by Councilmember Kilroy, to approve Contract No. C , approve Contract No. C , Ratify Contract No. C and authorize the Mayor to execute each document in substantially the form provided to the City Council, and further authorize the Mayor to make such minor or administrative changes to the documents as may be required in order to accomplish the intent of the parties, and to sign such additional administrative or procedural documents as may be required in order to accomplish the intent of the parties, or as may be required by the title officer or the escrow officer including, but not limited to dating documents as of the appropriate effective dates; adding appropriate legal descriptions, including correcting errors in legal descriptions; completing notice information; changes necessary to identify the correct parties to documents, and correcting factual inaccuracies; amending documents in escrow; and changes to ensure consistency between the transaction documents. Motion carried unanimously. PAGE NO. 4
5 Don Szerlip noted opportunities to include public transit and encouraged the hotels to join the LA Convention Bureau as available hotels to be used for participants in conventions in Los Angeles, and an excellent opportunity to promote the Artesia corridor. He also asked about the 1% being dedicated to the Visitors Bureau prior to what goes into the reserve or whether it will be suspended for this particular period of time. Assistant City Manager Grant explained that the Chamber s 1% is not part of the dedication to the reserve and still passes through. RECESS TO SIGN DOCUMENTS: 4:05 P.M. RECONVENE: 4:17 P.M. ROLL CALL Councilmembers Present: Councilmembers Absent: Officials Present: Ginsburg, Brand, Aust, Sammarco, Kilroy, Mayor Aspel None Kimberly Wachholz, City Clerk s Office Michael W. Webb, City Attorney M.2 CONTINUED FROM DECEMBER 17, 2013 CITY COUNCIL MEETING. A. INTRODUCE BY TITLE ONLY: AN ORDINANCE OF THE CITY OF REDONDO BEACH, CALIFORNIA REPEALING CHAPTER 3 OF TITLE 7 OF THE REDONDO BEACH MUNICIPAL CODE REGARDING LABOR CODE COMPLIANCE. B. ADOPT BY TITLE ONLY: AN URGENCY ORDINANCE OF THE CITY OF REDONDO BEACH, CALIFORNIA, REPEALING CHAPTER 3 OF TITLE 7 OF THE REDONDO BEACH MUNICIPAL CODE REGARDING LABOR CODE COMPLIANCE. City Attorney Webb gave a staff report and recommended that City Council pass the ordinance to avoid losing grant funding opportunities, and to put the City law in compliance with state law. Don Szerlip expressed concern with the state interfering with the City s ability as a local municipality to operate under its own jurisdiction. Motion by Councilmember Aust, seconded by Councilmember Ginsburg, to introduce and adopt by title only Ordinance No Motion carried unanimously. City Clerk Eleanor Manzano read Ordinance No and Ordinance No by title only. M.3 CONTINUED FROM DECEMBER 17, 2013 CITY COUNCIL MEETING. APPROVE CONTRACT NO. C , A REIMBURSEMENT AGREEMENT WITH LEGADO REDONDO L.L.C IN ASSOCIATION WITH A PROPOSED MIXED USE DEVELOPMENT LOCATED AT 1700 S. PACIFIC COAST HIGHWAY AND AUTHORIZE THE MAYOR TO EXECUTE ALL NECESSARY SIGNATURES. PAGE NO. 5
6 City Attorney Webb gave a staff report and stated the resolution provides for a reimbursement agreement for the developer to reimburse the City for its cost of outside CEQA experts and outside counsel. Motion by Councilmember Aust, seconded by Councilmember Ginsburg, to approve Contract No. C Motion carried unanimously. N. ITEMS FOR DISCUSSION PRIOR TO ACTION N.1 DISCUSSION AND CONSIDERATION OF APPOINTING FRED WEINER AS INTERIM HUMAN RESOURCES DIRECTOR. ADOPT BY TITLE ONLY RESOLUTION NO. CC , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, APPOINTING FRED WEINER AS INTERIM HUMAN RESOURCES DIRECTOR. Assistant City Manager Pete Grant gave a report and recommended the appointment of Mr. Fred Weiner as Interim Human Resources Director. Motion by Councilmember Brand, seconded by Councilmember Aust, to adopt by title only Resolution No. CC Motion carried unanimously. City Clerk Eleanor Manzano read Resolution No. CC by title only. N.2 DISCUSSION AND CONSIDERATION OF ISSUANCE OF A WRITTEN REPORT DESCRIBING THE MEASURES TAKEN TO ALLEVIATE THE CONDITION WHICH LED TO THE ADOPTION OF URGENCY ORDINANCE IMPOSING A MORATORIUM ON DEVELOPMENT OF ELECTRICAL GENERATING FACILITIES IN THE COASTAL ZONE. City Attorney Webb gave a staff report and recommended that City Council issue a written report describing the measures taken to alleviate the condition which led to the adoption of Urgency Ordinance imposing a moratorium on development of electrical generating facilities in the Coastal Zone. Motion by Councilmember Ginsburg, seconded by Councilmember Brand, to issue a written report describing the measures taken to alleviate the condition which led to the adoption of Urgency Ordinance imposing a moratorium on development of electrical generating facilities in the Coastal Zone. Motion carried unanimously. O. CITY MANAGER ITEMS P. MAYOR AND COUNCIL ITEMS Q. MAYOR AND COUNCIL REFERRALS TO STAFF Councilmember Kilroy informed of complaints received regarding dogs in Anderson Park. Councilmembers Sammarco, Aust and Brand wished everyone a Merry Christmas and Happy New Year. PAGE NO. 6
7 R. RECESS TO CLOSED SESSION 4:30 P.M. Motion by Councilmember Brand, seconded by Councilmember Ginsburg to recess to conduct Closed Sessions attended by City Attorney Michael W. Webb, City Manager William P. Workman, Assistant City Manager Peter Grant, Acting Human Resources Director Joe Hoefgen, and outside legal counsel Bill Benz and Phil Toomey. R.1 CONFERENCE WITH LEGAL COUNSEL AND LABOR NEGOTIATOR - The Closed Session is authorized by the Government Code Sec AGENCY NEGOTIATOR: Joe Hoefgen, Acting Human Resources Director EMPLOYEE ORGANIZATIONS: Labor Relations with Professional & Supervisory Association; Teamsters R.2 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION- The Closed Session is authorized by the attorney-client privilege, Government Code Sec (d)(1). Name of case: YAMAMOTO V. CITY OF REDONDO BEACH, ET AL - CASE NO. YC R.3 CONFERENCE WITH LEGAL COUNSEL ANTICIPATED POTENTIAL LITIGATION - The Closed Session is authorized by the Government Code Section (d)(4) One potential case S. RECONVENE TO OPEN SESSION 5:05 P.M. ROLL CALL Councilmembers Present: Councilmembers Absent: Officials Present: T. ADJOURNMENT at 5:05 P.M. Brand, Ginsburg, Aust, Sammarco, Kilroy, Mayor Aspel None Michael W. Webb, City Attorney There being no further business to come before the City Council, the meeting was adjourned at 5:05 p.m. to an adjourned regular meeting to be held at 4:30 p.m. on Tuesday, January 7, 2014 in the City Hall Council Chambers, 415 Diamond Street, Redondo Beach, California. Motion carried unanimously. Respectfully submitted, PAGE NO. 7
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