CITY OF SANTA CLARITA City Council / Board of Library Trustees / City Council Acting as the Governing Board of the Successor Agency to the Former Santa Clarita Redevelopment Agency Joint Regular Meeting ~ Minutes ~ Tuesday, February 9, 2016 6:00 PM City Council Chambers INVOCATION Councilmember McLean delivered the invocation. CALL TO ORDER Mayor/Chair/President Kellar called to order the regular joint meeting of the City Council/Board of Library Trustees and City Council Acting as the Governing Board of the Successor Agency to the Former Santa Clarita Redevelopment Agency at 6:02 p.m. ROLL CALL All Councilmembers were present. FLAG SALUTE Councilmember McLean led the flag salute. MEN OF HARMONY Mayor Kellar introduced the Men of Harmony who serenaded the Council and audience with a special Valentine number. EXECUTIVE MEETING This time has been set aside for Councilmembers to review the agenda and obtain any further information that may be needed. Council will also discuss each individual item during the course of the meeting with the exception of the Consent Calendar, which may be approved in its entirety by one motion, unless there is a request to pull an item for discussion. No action will be taken on public agenda items during the Executive Meeting. APPROVAL OF AGENDA Motion by Weste, second by McLean, to approve the agenda, pulling item 4 for a separate vote, and item 7 for questions, comments, and a separate vote. Hearing no objections, it was so ordered. RESULT: MOVER: SECONDER: AYES: APPROVED [UNANIMOUS] Laurene Weste, Councilmember Marsha McLean, Councilmember Acosta, Boydston, Kellar, Weste, McLean
AWARDS AND RECOGNITIONS Mayor Kellar and Council recognized the Hart High School Marching Band for winning the Division 4A State Championship and presented them with certificates. PRESENTATIONS City Librarian Kelly Behle presented City Council with featured books from the One Story, One City program and highlighted the celebration of 5 years of service for the Santa Clarita Public Libraries. PUBLIC PARTICIPATION Addressing the Council was Senator Bob Huff regarding the importance of local government; Elaine Ballace concerning mobile home park matters; Christian Gadbois regarding a BMX facility in Santa Clarita; Alan Ferdman regarding Los Angeles County s parks program needs assessment; Ethan Walker concerning the need for environmental education in schools; and Rodrigo Ornelas regarding the need for food education in schools. STAFF COMMENTS City Manager Ken Striplin commented on working with advocates of the proposed BMX track and potential opportunities for a public-private partnership; clarified that the City does not have jurisdiction over the curriculum of the local school districts; Parks, Recreation and Community Services Director Rick Gould responded to questions concerning the Los Angeles County s parks program needs assessment and confirmed the City has completed and adopted a Parks, Recreation, and Open Space Master Plan, which involves ongoing public outreach and reflects the needs of Santa Clarita. Councilmember Weste requested clarification regarding Prop A1 and Prop A2, and inquired if the City would be eligible for grants from Los Angeles County. City Manager Ken Striplin confirmed that the City would not be excluded from receiving future grants from Los Angeles County. Councilmember Boydston inquired if the City would benefit from holding a planning meeting with Los Angeles County. City Manager Ken Striplin indicated that staff has developed statistically accurate reports which reflect the needs of the City, and indicated the City would be willing to provide a venue should County staff wish to meet with Santa Clarita residents to discuss their needs assessment. Councilmember Boydston inquired of the Council if there was interest in agendizing the development of a BMX track. Mayor Kellar suggested that additional information would be needed on this matter before it could be agendized. COMMITTEE REPORTS/COUNCILMEMBER COMMENTS Councilmember Weste reminded residents about the "Hartford Heroes" event that will be held on February 13, 2016 at the American Legion, is sponsored by the Prayer Angels for the Military and allows residents to support troops by making Valentine's Day packages to send overseas. Page 2
Councilmember McLean announced a celebration of life for Frank Kleeman will be held on February 11, 2016; reported on a Southern California Association of Governments (SCAG) Transportation Policy Committee Meeting that she attended on February 4 in which the California Transportation Commission provided information on the Pilot California Road Charge Program and her comments pertaining to the use of funds for transportation and highway maintenance; commented on her attendance at the Special Castaic Lake Water Agency/Newhall County Water District meeting regarding consolidation; and stated that on February 5 she attended the Elected Officials Steering Committee for Stormwater Funding Options in an effort to ensure that Santa Clarita residents are not charged additional taxes due to the lack of stormwater programs in other cities. Mayor Pro Tem Acosta reported that on February 5, 2016 he participated in the Principal for a Day event at Golden Valley High School; reminded residents that Cowboy Festival tickets are available for purchase; and encouraged residents to attend the Thursdays at Newhall event series, beginning in March and running through October. Councilmember Boydston thanked the volunteers who assisted in counting the homeless population in the City and expressed a need for increased awareness and support; and encouraged residents to attend the Cowboy Festival. Mayor Kellar deferred comment. CONSENT CALENDAR Council approved the Consent Calendar with the exception of items 4 and 7 which were pulled for a separate vote. RESULT: MOVER: SECONDER: AYES: APPROVED [UNANIMOUS] Laurene Weste, Councilmember Marsha McLean, Councilmember Acosta, Boydston, Kellar, Weste, McLean ITEM 1 APPROVAL OF JOINT SPECIAL MEETING MINUTES The minutes are submitted for approval. City Council and the Successor Agency to the Former Redevelopment Agency approve the minutes of the January 26, 2016, Joint Special Meeting. ITEM 2 APPROVAL OF JOINT REGULAR MEETING MINUTES The minutes are submitted for approval. City Council and Board of Library Trustees / Successor Agency to the Former Redevelopment Agency approve the minutes of the January 26, 2016, Joint Regular Meeting. Page 3
ITEM 3 READING OF ORDINANCE TITLES Government Code Section 36934 requires that all ordinances be read in full prior to Council taking action on the ordinance. By listing the ordinance title on the Council agenda, Council may determine that the title has been read. City Council determine that the titles to all ordinances that appear on this public agenda have been read and waive further reading. Item 4 was moved to Items Pulled for a Separate Vote ITEM 5 APPROVE THE USE OF A "PIGGYBACK" CONTRACT FOR FLEET FUELING CARD SERVICE The Voyager Fleet Card Program provides fleet fueling services for City of Santa Clarita fleet vehicles. Approval of a piggyback contract will renew the City s contract with U.S. Bank Voyager Fleet Systems, Inc. City Council: 1. Approve piggyback of State of California contract and award a contract for fleet fueling card services to U.S. Bank Voyager Fleet Systems, Inc., by using the Department of General Services (DGS) contract DGS-OFA-OPPS-06 in an amount not to exceed $406,625, including up to a five-percent increase of the total contract amount annually to account for consumer price index and fleet expansion, not to exceed annual appropriations. 2. Authorize the City Manager or designee to execute the DGS contract renewal in October 2016 for 5 one-year agreements, subject to City Attorney approval. ITEM 6 AWARD CONTRACT FOR THE SAND CANYON TRAIL DESIGN, PHASES IV THROUGH VI, PROJECT T3019 Design of trail improvements on Sand Canyon Road from Placerita Canyon Road to Sky Ranch Road. City Council: 1. Award the design contract to Alta Planning + Design for the Sand Canyon Trail Design, Phases IV through VI, Project T3019, in the amount of $231,782 and authorize a contingency in the amount of $23,178 for a total contract amount not to exceed $254,960. Page 4
2. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval. Item 7 was moved to Items Pulled for a Separate Vote ITEM 8 CHECK REGISTER NO. 2 FOR THE PERIOD 12/17/15, 12/25/15, THROUGH 1/07/16 AND 1/14/16 ELECTRONIC FUNDS TRANSFERS FOR THE PERIOD 12/24/15 THROUGH 1/08/16 Check Register No. 2 for the Period 12/17/15, 12/25/15 through 1/07/16 and 1/14/16. Electronic Funds Transfers for the Period 12/24/15 through 1/08/16. City Council approve and ratify for payment the demands presented in Check Register No. 2. ITEMS PULLED FOR SEPARATE VOTE ITEM 4 SECOND READING OF AN ORDINANCE CONCERNING CITY COUNCILMEMBER SALARY Members of the Santa Clarita City Council are compensated monthly by the City, under specific provisions of state law, for the substantial amount of time and effort they contribute leading our local government. Government Code Section 36516(c) sets forth basic provisions which allow regular adjustments to the City Council salary. City Council adopt an ordinance entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING SECTION 2.04.048 OF THE SANTA CLARITA MUNICIPAL CODE CONCERNING CITY COUNCIL SALARY." Motion by Weste, second by Mayor Pro Tem Acosta to approve the Ordinance. Councilmember Boydston made comment regarding his position on the matter. Mayor Pro Tem Acosta made comment regarding the salary increase taking effect in 2017 and applying to the future City Council. Councilmember Weste commented that the last vote to raise City Council salary occurred in 2013. Councilmember Boydston inquired and City Attorney Joseph Montes clarified the City Council s salary would increase by 5 percent for 2015 and 5 percent for 2016, beginning in January 2017. Page 5
RESULT: APPROVED [3 TO 2] MOVER: Laurene Weste, Councilmember SECONDER: Dante Acosta, Mayor Pro Tem AYES: Acosta, Weste, McLean NAYS: Boydston, Kellar Council recessed the meeting at 7:36 p.m. and reconvened at 7:42 p.m. ITEM 7 SECOND READING AND ADOPTION OF AN ORDINANCE AMENDING CHAPTER 6.02 OF THE SANTA CLARITA MUNICIPAL CODE REGARDING ALTERNATE MEMBERS OF THE MANUFACTURED HOME RENTAL ADJUSTMENT PANEL At their January 26, 2016, meeting, the City Council introduced and held a first reading of amendments to Chapter 6.02 of the Santa Clarita Municipal Code to provide for alternates on the Manufactured Home Rental Adjustment Panel. City Council adopt an ordinance entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING SECTION 6.02.040 OF CHAPTER 6.02 TO TITLE 6 OF THE SANTA CLARITA MUNICIPAL CODE CONCERNING THE ELECTION OF ALTERNATES TO THE MANUFACTURED HOME RENTAL ADJUSTMENT PANEL. Addressing the Council on this item was Alan Ferdman, Vicki Boiselle, Gladys Trejo, Teresa Galvez, Barbara Dinius, Mick Terry, and Douglas Fraser. Three written comment cards were received regarding this item. Councilmember McLean inquired about the possibility of postponing the Manufactured Home Rental Panel meetings until the adoption of the ordinance, and whether alternative representatives could be appointed to balance the Panel. City Attorney Joseph Montes clarified the specifications of hearing dates and indicated the ordinance does not specifically prohibit or permit hearing delays; and added the ordinance does not provide for a representative to be appointed before the next scheduled Panel election, indicating an amendment could address this. Councilmember Weste inquired if a letter could be sent to the mobile home park owners requesting a hearing delay. Councilmember Boydston inquired about the amount of the proposed rent increase. Page 6
City Attorney Joseph Montes suggested the proposed ordinance could be modified to direct staff to hold an accelerated election for alternates, approved this evening as a first reading and passed to a second reading at the February 23, 2016 City Council meeting; and indicated the City Council could direct staff to delay any hearings involving conflicts that resulted in an unbalanced panel until the ordinance is approved and the accelerated election for alternative panel members is completed. Mayor Kellar and Council approved amending the ordinance as outlined by City Attorney Joseph Montes. Councilmember Boydston inquired if resources for legal aid are available to the residents of the mobilehome parks and City Manager Ken Striplin indicated staff would inquire if such resources exist. RESULT: MOVER: SECONDER: AYES: APPROVED [UNANIMOUS] Marsha McLean, Councilmember Laurene Weste, Councilmember Acosta, Boydston, Kellar, Weste, McLean PUBLIC HEARINGS ITEM 9 AGREEMENTS RELATED TO THE SALE AND DEVELOPMENT OF THE REDEVELOPMENT BLOCK IN OLD TOWN NEWHALL The law guiding the dissolution of Redevelopment Agencies in the State of California requires that the Successor Agency to the former Redevelopment Agency dispose of properties that were previously owned by the Redevelopment Agency. Staff solicited development proposals in November 2014. In July 2015, the City and the Successor Agency entered into Exclusive Negotiation Agreements for the sale and ultimate development of the Redevelopment Block, located in Old Town Newhall, bounded by Lyons Avenue, Main Street, 9th Street, and Railroad Avenue. City Council: 1. Conduct a Public Hearing pursuant to Government Code Section 53083; 2. Approve Purchase, Sale, and Grant Agreement with Laemmle Newhall, LLC, and the Successor Agency to the former Redevelopment Agency of the City of Santa Clarita for the proposed Laemmle Theatre Project; 3. Appropriate $3,420,525 from the Facilities Replacement Fund to expenditure account Redevelopment Block 13406-5161.001 to fulfill the City s obligations under the Purchase, Sale, and Grant Agreement with Laemmle Newhall, LLC, and the Successor Agency to the former Redevelopment Agency of the City of Santa Clarita for the proposed Laemmle Theatre Project; Page 7
4. Direct City Manager or his designee to accept the property to be used for the construction of the public parking structure from the Successor Agency to the former Redevelopment Agency of the City of Santa Clarita at no cost pursuant to the Department of Finance approved Long Range Property Management Plan Amendment; 5. Direct City Manager or his designee to move forward with the identified process for the ultimate development of a public parking structure, including the adoption of the policy required by Public Contract Code Section 22162 for all design-build projects; 6. Direct City Manager or his designee to negotiate an agreement with Old Town-Main, LLC, for provision of an easement for ingress and egress across the public parking structure in favor of the proposed Mixed-Use Project, and to have the fair market value of said easement determined by an independent appraisal; 7. Direct City Manager or his designee to execute, enter into, and take all actions to implement the agreement with Laemmle Newhall, LLC, for the proposed Laemmle Theatre Project, sign all necessary legal documents to process the agreement, subject to City Attorney approval, including the Theatre Operating Covenant, Assignment and Assumption Agreement with the Successor Agency to the former Redevelopment Agency of the City of Santa Clarita, Quitclaim Deed releasing the City s beneficial interest in the Redevelopment Block at Close of Escrow, Quitclaim Deed releasing City s option to repurchase upon completion of the Laemmle Theatre Project, Site Preparation Grant Escrow Agreement, and Operating Covenant Grant Escrow Agreement; and 8. Direct City Manager or his designee to take all actions to facilitate the agreement between the Successor Agency to the Former Redevelopment Agency of the City of Santa Clarita and Old Town-Main, LLC, for the proposed Mixed-Use Project, sign all necessary legal documents to implement the agreement, subject to City Attorney approval, including the Assignment and Assumption Agreement with the Successor Agency to the former Redevelopment Agency of the City of Santa Clarita, Quitclaim Deed releasing the City s beneficial interest in the Redevelopment Block at Close of Escrow, and Quitclaim Deed releasing City s option to repurchase upon completion of the Mixed-Use Project. Successor Agency: 1. Approve Purchase and Sale Agreement with Old Town-Main, LLC, for the proposed Mixed- Use Project; 2. Approve Purchase, Sale, and Grant Agreement with Laemmle Newhall, LLC, and the City of Santa Clarita, for the proposed Laemmle Theatre Project; 3. Direct Executive Director or his designee to seek Oversight Board approval of the Purchase and Sale Agreement with Old Town-Main, LLC, for the proposed Mixed-Use Project; Purchase, Sale, and Grant Agreement with Laemmle Newhall, LLC, and the City of Santa Clarita, for the proposed Laemmle Theatre Project; and transfer of the public parking property from the Successor Agency to City of Santa Clarita at no cost pursuant to the Department of Finance approved Long Range Property Management Plan Amendment; and Page 8
4. Upon Oversight Board approval, direct Executive Director or his designee to execute, enter into, and take all actions to implement the agreement with Laemmle Newhall, LLC, and the City of Santa Clarita for the proposed Laemmle Theatre Project, sign all necessary legal documents to process the agreement, subject to Agency Counsel approval, including the Grant Deed and Assignment and Assumption Agreement with the City of Santa Clarita; and 5. Upon Oversight Board approval, direct Executive Director or his designee to execute, enter into, and take all actions to implement the agreement with Old Town-Main, LLC, for the proposed Mixed-Use Project, sign all necessary legal documents to process the agreement, subject to Agency Counsel approval, including the Grant Deed and Assignment and Assumption Agreement with the City of Santa Clarita, and negotiation of right of entry agreement for Old Town-Main, LLC, to undertake and complete the Underground Storage Tank removal work on the Redevelopment Block; and 6. Upon Oversight Board approval, direct Executive Director or his designee to take all actions and execute and enter into all documents necessary to transfer the public parking property from the Successor Agency to City of Santa Clarita, subject to Agency Counsel s approval. Mayor/Chair Kellar opened the public hearing. City Clerk Kevin Tonoian reported that all notices required by law have been provided. Councilmember Weste recused herself from voting on this item due to the proximity of her residence and left the dais. Economic Development Manager Jason Crawford provided the staff presentation. Addressing the Council in support of this item was Bob Kwalsa; Dick Jeffrey; Terri Crain, representing the Santa Clarita Valley Chamber of Commerce; Kevin Korenthal; Holly Schroeder, representing the Santa Clarita Valley Economic Development Corporation; Dr. Michael Millar; Catherine Rivard, representing the Santa Clarita Valley Bicycle Coalition; Glo Donnelly; Chris Shoemaker; Ed Masterson, representing the Valley Industry Association Board of Directors; Carol Rock; Mark and Jenifer Felan, representing Organic Sweat Shack; Nina Moskal, representing the Santa Clarita Valley Bicycle Coalition; Yvonne May; Leon Worden; Jarrod Nicoson; Joe Garel; Bob Hernandez; Aaron Avila; B.J. Atkins; Judith Burkhartsmeyer; Tim Crissman; Eileen Daniels; Leigh Heart; Maria Dean; David Rendall; and Dr. Rick Scuderi. Addressing the Council in opposition to this item was Steve Petzold; Dr. Gene Dorio; Alan Ferdman; Deanna Hanashiro; Cam Noltemeyer; and Joseph Jasik. Other residents addressing this item were Valerie Thomas, representing the Placerita Canyon Property Owner's Association (PCPOA); and Elaine Ballace. 104 written comment cards and 101 email comments were received in support of this item, and three email comments were received in opposition to this item. Page 9
Greg Laemmle, President of Laemmle Theatres, made himself available to answer questions by Council. Council recessed the meeting at 9:36 p.m. and reconvened at 9:41 p.m. Councilmember Boydston commented that he is the Executive Director of the Canyon Theatre Guild and clarified the Fair Political Practices Commission (FPPC) determined that there is no conflict of interest related to this item which precludes his participation. Councilmember Boydston presented his plan for a possible alternative to the recommended project. Councilmember Boydston expressed concerns regarding the percentage of "art-house" films that would be shown at the Laemmle Theatre; and inquired about potential bankruptcy of the Laemmle Theatre. City Attorney Joseph Montes clarified that in the event of a bankruptcy, all assets in the LLC would be dispersed, and that the City would not have senior priority in bankruptcy proceedings. Councilmember Boydston inquired regarding the cost of environmental remediation. Councilmember McLean inquired which party would be responsible for funding environmental remediation costs. Economic Development Manager Jason Crawford clarified that Serrano would be responsible for funding the environmental remediation, and neither the City nor the Successor Agency would bear any financial responsibility. Councilmember Boydston inquired and City Attorney Joseph Montes clarified that it is the City s intent but not an obligation to move forward with the design/build construction of the parking structure; failure to construct a parking structure would not be considered to be a breach of the agreement, however it is a condition of close to the transaction and failure to do so would allow the other parties to the agreement to terminate the transaction. Councilmember Boydston inquired of Greg Laemmle whether a one-dollar facility charge could be applied to the cost of each ticket to address the cost associated with the City s subsidy. Greg Laemmle indicated a facility surcharge would need to be imposed by the City; that such a fee would make the theatre less competitive, and; Laemmle Theatres would not agree to an admission surcharge. Councilmember McLean made a motion to approve all recommended actions for the City, seconded by Acosta. Councilmember Boydston requested if there could be a separate vote for each of the three elements of the development. Council did not concur with this request. Page 10
RESULT: APPROVED [3 TO 1] MOVER: Marsha McLean, Councilmember SECONDER: Dante Acosta, Mayor Pro Tem AYES: Acosta, Kellar, McLean NAYS: Boydston RECUSED: Weste Motion by Acosta on behalf of the Successor Agency to the Former Redevelopment Agency to approve all recommended actions, seconded by McLean. RESULT: APPROVED [3 TO 1] MOVER: Dante Acosta, Vice-Chair SECONDER: Marsha McLean, Boardmember AYES: Acosta, Kellar, McLean NAYS: Boydston RECUSED: Weste Mayor/Chair Kellar closed the public hearing. PUBLIC PARTICIPATION II Addressing the Council was Cam Noltemeyer regarding the Successor Agency to the Redevelopment Agency. ADJOURNMENT Mayor Kellar adjourned the meeting at 10:59 p.m. ATTEST: MAYOR CITY CLERK Page 11