City of Manhattan Beach

1400 Highland Avenue Manhattan Beach, CA 90266 Tuesday, 6:00 PM Regular Meeting City Council Chambers City Council Regular Meeting Mayor Tony D'Errico Mayor Pro Tem David J. Lesser Councilmember Amy Howorth Councilmember Wayne Powell Councilmember Mark Burton

PLEASE NOTE THAT THE CITY ARCHIVES THE VIDEO RECORDINGS OF ALL REGULAR CITY COUNCIL MEETINGS AND THE VIDEO FOR THIS MEETING IS HEREBY INCORPORATED BY THIS REFERENCE. ALSO IN SUPPORT OF MORE TRANSPARENCY AND THE AMERICANS WITH DISABILITIES ACT (ADA) COMPLIANCE, THE CITY OFFERS CLOSED CAPTIONING FOR REGULAR CITY COUNCIL MEETINGS. FOR A COMPLETE RECORD OF THIS CITY COUNCIL MEETING, GO TO: www.citymb.info/city-officials/city-clerk/city-council-meetings-agendas-an d-minutes A. PLEDGE TO THE FLAG Martha Andreani led the Pledge of Allegiance. A motion was made that this item be accept. The motion failed by the following vote: Nay: 2-3 - D'Errico and Burton Lesser, Howorth and Powell B. ROLL CALL Present: Mayor D'Errico, Mayor Pro Tem Lesser, Councilmember Howorth, Councilmember Powell and Councilmember Burton C. CEREMONIAL CALENDAR 1. Presentation of a Plaque to Homeira Goldstein and the Time 4 Art Foundation for 20 Years of Dedication to Further the Arts in Manhattan Beach PRESENT Mayor D'Errico on behalf of the City Council, presented a plaque recognizing Homeira Goldstein and the "Time 4 Art" Foundation for 25 years of dedication to further the arts in Manhattan Beach. D. CERTIFICATION OF MEETING NOTICE AND AGENDA POSTING City Clerk Liza Tamura confirmed that the meeting was properly posted. Page 1

E. APPROVAL OF AGENDA AND WAIVER OF FULL READING OF ORDINANCES Mayor Pro Tem Lesser moved to remove Agenda Item No. 4 - Second Reading and Adoption of Ordinance Nos. 16-0029, 16-0030, and 16-0031 for the Downtown Specific Plan and Related Amendments of the Consent Calendar, and requested that it be presented as first item under "Old Business". City Manager Mark Danaj and Public Works Director Stephanie Katsouleas responded to City Council questions. Councilmember Burton requested to move Agenda Item No. 14 - Adoption of an Urgency Zoning Ordinance for Accessory Dwelling Units to be presented after Agenda Item No. 9- Approval and Acceptance of the Following Items Related to the Sepulveda Bridge Widening Project. A motion was made by Mayor Pro Tem Lesser, seconded by Councilmember Burton, to approve the agenda, as amended - Agenda Item No. 4 removed from the Consent Calendar for individual consideration, Agenda Item No. 14 moved to be presented before Agenda Item No. 10, and waive full reading of ordinances. The motion carried by the following vote: F. CITY COUNCIL AND COMMUNITY ORGANIZATION ANNOUNCEMENTS OF UPCOMING EVENTS (1 MINUTE PER PERSON) Manager of the Manhattan Beach Library Melissa McCollum, announced that the Children's Librarian Regina Hernandez is offering a fund art program for elementary school students on December 21, 2016 at 3:30 PM as part of the "Get Smart On Art" monthly series she will be leading a discussion on the artists Diego Rivera and Frida Kahlo and encouraging students to create their own art, also offering the regular story time for babies and toddlers. Councilmember Powell wished everyone Happy Holidays. Councilmember Howorth wanted to clarify that trash pick up during the holidays was not going to change. City Manager Mark Danaj confirmed that it was not going to change. Councilmember Howorth provided an update on her First Community Wide Meeting and announced that the next Community Wide Meeting will take place January 7, 2017, March 4, 2017 and May 6, 2017 from 3:00 PM - 9:00 PM at the Manhattan Beach Public Library Community Room. Page 2

G. CITY MANAGER REPORT H. CITY ATTORNEY REPORT City Manager Mark Danaj provided an update on the Holiday Fireworks that took place on December 11, 2016. The event brought between 40,000-50,000 people to the Downtown area and City Staff - Public Works, Police and Fire were present to assist in the event and preserve the safety of the public. City Manager Danaj introduced Community Development Director Marisa Lundstedt. Community Development Director Lundstedt provided City Council with an update on two interior after hour work approvals; a) Blue Star Donuts at Metlox Plaza for a two week construction request and b) WeWork will be taking three floors in the Manhattan Towers for a two week construction request. City Manager Danaj provided one last update regarding the Annual Beach Cities Toy Drive Wrapping Event on December 17, 2016 at the Joslyn Community Center where more than 3,000 toys were wrapped by the public at large. Councilmember Burton inquired about an update on the Gelson's Market project sometime soon. City Manager Danaj reported that an announcement would be provided on the next January City Council meeting. Mayor Pro Tem thanked all City employees that volunteered their time at the Annual Beach Cities Toy Drive Wrapping Event. City Attorney Quinn Barrow provided a brief report on the Mall litigation: the City received notice earlier in the day that the judge has signed the judgment in favor of the City. Page 3

I. PUBLIC COMMENTS (3 MINUTES PER PERSON FOR ONE ITEM, A MAXIMUM OF 6 MINUTES IF A SPEAKER WANTS TO COMMENT ON MORE THAN ONE ITEM) Steve Packwood appreciates that City Council is giving the opportunity to the public to participate throughout the meeting and not only during Public Comments, inquired about the City Mall, and if there was a presentation still scheduled for the first meeting in January regarding the financial planning on capital project as it relates to the pension plan. Mayor D'Errico responded to Steve Packwood's inquiry. Martha Andreani read into record a message from Carol Perrin regarding Agenda Item No. 4 and requested time for the public to review the entire Downtown Specific Plan including the strikethrough version prior to City Council making a decision. Jane Guthrie spoke on the Mills Act approval by City Council, the approval of the Ordinance by City Council to incorporate the Historic Preservation with the Boards and Commissions and inquired about the City providing details on the City's website for anyone who is interested in participating in the program for their homes. Joseph Ungoco on behalf of the Manhattan Beach Residents Association spoke on Agenda Item No. 8 regarding the concerns about the timing of the item on the agenda due to the public who wish to participate but cannot due to travelling time and the holidays, spoke on noticing the public at large about such important items, and spoke on the site plan regarding traffic patterns at Parkview on the East side of the Mall. Karol Wahlberg spoke on the concern of items being presented at the last City Council meeting of the year when everyone is travelling due to the holidays and spoke on Agenda Item No. 4 and how all documents should be available to the public due to the legality of such documents. J. PLANNING COMMISSION QUASI-JUDICIAL DECISIONS (RECEIVE AND FILE) None. K. CONSENT CALENDAR (APPROVE) A motion was made by Mayor Pro Tem Lesser, seconded by Councilmember Powell, to approve the Consent Calendar, Item Nos. 2, 3, 5 and 6. The motion carried by the following vote: 2. Award of Bid to Fairview Ford for the Purchase of Four Budgeted Replacement Vehicles for the Police and Public Works Departments in the Amount of $160,365.28 (Finance Director Moe). APPROVE The recommendation for this item was approved. Page 4

3. Award of Bid to George Chevrolet for the Purchase of Three Budgeted Replacement Trucks for the Police Department in the Amount of $101,994.63 (Finance Director Moe). APPROVE The recommendation for this item was approved. 4. Second Reading and Adoption of Ordinance Nos. 16-0029, 16-0030, and 16-0031 for the Downtown Specific Plan and related Amendments, Including Amendments to the Local Coastal Program, and Adoption of Resolution No. 16-0086 Transmitting Ordinance Nos. 16-0030 and 16-0031 to the California Coastal Commission for Amendments to the Local Coastal Program (Community Development Director Lundstedt). ADOPT ORDINANCE NOS. 16-0029, 16-0030, AND 16-0031 AND RESOLUTION NO. 16-0086 This item was moved to "Old Business". 5. Financial Report: a) Schedule of Demands: November 10, 2016 b) Investment Portfolio for the Month Ending October 31, 2016 c) Month End Report for October 31, 2016 (Finance Director Moe). ACCEPT REPORT AND DEMANDS The recommendation for this item was approved. 6. City Council Minutes: This Item Contains Minutes of the following City Council Meeting: a) City Council Special Meeting - Closed Session Minutes of December 1, 2016 APPROVE b) City Council Special Meeting - Closed Session Minutes of December 2, 2016 APPROVE c) City Council Adjourned Special Meeting - Closed Session Minutes of December 6, 2016 APPROVE d) City Council Regular Meeting Minutes of December 6, 2016 (Continued to the January 3, 2017 City Council Regular Meeting) CONTINUE (City Clerk Tamura). The recommendation for these items were approved. Page 5

L. PUBLIC HEARINGS (2 MINUTES PER PERSON) 7. Conduct Public Hearing to Consider Resolution No. 16-0080 Regarding a Coastal Development Permit to Install New Crash Rated Bollards and Replace Existing Bollards Along Both Sides of the Marvin Braude Bike Trail Adjacent to the Manhattan Beach Pier (Public Works Director Katsouleas). CONDUCT PUBLIC HEARING ADOPT Mayor D'Errico introduced the item and City Engineer Prem Kumar provided the PowerPoint presentation. City Engineer Kumar and Public Works Director Stephanie Katsouleas responded to City Council questions. Mayor D'Errico opened the Public Hearing seeing no comments he closed the Public Hearing. A motion was made by Councilmember Burton, seconded by Mayor Pro Tem Lesser, to adopt Resolution No. 16-0080 and adopt the recommendation from staff regarding the number of bollards to be installed on the West side. The motion carried by the following vote: M. OLD BUSINESS Page 6

4. Second Reading and Adoption of Ordinance Nos. 16-0029, 16-0030, and 16-0031 for the Downtown Specific Plan and related Amendments, Including Amendments to the Local Coastal Program, and Adoption of Resolution No. 16-0086 Transmitting Ordinance Nos. 16-0030 and 16-0031 to the California Coastal Commission for Amendments to the Local Coastal Program (Community Development Director Lundstedt). ADOPT ORDINANCE NOS. 16-0029, 16-0030, AND 16-0031 AND RESOLUTION NO. 16-0086 This item was pulled from the Consent Calendar. Mayor D'Errico recused. City Attorney Quinn Barrow summarized for the public that Mayor D'Errico has recused because he leases two stores in the downtown area. Community Development Director Marisa Lundstedt provided a brief presentation. Community Development Director Lundstedt and City Attorney Barrow responded to City Council questions. Mayor Pro Tem Lesser invited public comments: Don McPherson distributed an attachment to City Council that was previously submitted prior to the City Council meeting. William Victor showed for the record two emails that were submitted prior to the City Council meeting. Mayor Pro Tem Lesser closed public comments. Councilmember Powell requested that staff to created a redline version of the Downtown Specific Plan with all the changes and for the document to return to City Council. City Manager Mark Danaj responded to City Council questions. A motion was made by Councilmember Burton, seconded by Councilmember Powell, to adopt Ordinance Nos. 16-0029, 16-0030 and 16-0031 and Resolution No. 16-0086, and direct staff to return to City Council at one of the regularly City Council scheduled meetings in January/February with a revised Downtown Specific Plan that complies with the City Council action on the Downtown Specific Plan, a final copy and a redline copy before the submission of the document goes to the Coastal Commission. The motion carried by the following vote: Recused: 4-1 - Lesser, Howorth, Powell and Burton D'Errico Page 7

Mayor D'Errico returned to the dais at 7:06 PM. 8. Manhattan Beach Shopping Center Enhancement Project Site Plan (Community Development Director Lundstedt). ENDORSE MANHATTAN VILLAGE SHOPPING CENTER ENHANCEMENT PROJECT SITE PLAN Mayor D'Errico introduced the item and Community Development Director Marisa Lundstedt provided brief presentation and introduced Senior Vice President of JLL Phil Friedl. City Attorney Quinn Barrow responded to City Council questions. Senior Vice President Friedl provided a PowerPoint presentation. Senior Vice President Friedl, City Attorney Barrow, CallisonRTKL Vice President and Technical Lead David Schmitz, CallisonRTKL Vice President and Design Lead Vince Zawodny, City Manager Mark Danaj, Planning Manager Laurie Jester responded to City Council questions. Mayor D'Errico invited public comments: Mary Calming spoke in support of the design of the Mall. Steve Packwood commented favorably on the presentation. Bill Victor requested more information. Mayor D'Errico closed public comments. A motion was made by Councilmember Burton, seconded by Councilmember Powell, to accept and endorse the new site plan for the Manhattan Beach Village Shopping Center enhancement project as it is presented to City Council. The motion carried by the following vote: At 7:58 PM City Council recessed and reconvened at 8:08 PM with all Councilmembers present. Page 8

9. Approval and Acceptance of the Following Items Related to the Sepulveda Bridge Widening Project; Approve Amendment No. 3 to HDR s Existing Agreement for $98,400 for Additional Work for Sepulveda Bridge Widening Project; Approve the Construction Cooperative Agreement Between Caltrans and the City of Manhattan Beach for the Sepulveda Bridge Widening Project; Approve the Purchase and Sale Agreement and Joint Escrow Instructions Regarding the Purchase of Certain Property Interests from the Joint Owners of 3500 N. Sepulveda Boulevard; Accept the Chevron Dedication; Authorize the Public Works Director to submit the Right-of-Way Certification to Caltrans; Authorize the City Manager to sign a Temporary Construction Easement (TCE) Agreement and a Permanent Highway Easement Agreement for various parcels in a form approved by the City Attorney, with RREEF America Reit II Corp. BBB. (Public Works Director Katsouleas). APPROVE Mayor D'Errico introduced the item. Public Works Director Stephanie Katsouleas provided brief presentation and responded to City Council questions. Mayor D'Errico invited public comments: Steve Packwood requested more information on the money that will be spent and if there is any grant money available. Jackie May appreciates that City Council brought this item for discussion. Mayor D'Errico closed public comments. City Attorney Quinn Barrow responded to City Council questions. Councilmember Burton is opposed, Caltrans should be paying for the retrofit of the Sepulveda Widening project and certain aspects of the retrofit will make it unsafe for the residents, there is no compelling reason to approve. Mayor Pro Tem Lesser is in favor of moving forward with this project for the safety of the residents and with decisions from made by previous Councilmembers who were presented with information, City Council should move forward now and continue with this project. Councilmember Powell is in favor of moving forward with the project for the safety of the public and specially for the safety of everyone in case of an earthquake. Mayor D'Errico agrees with Councilmember Burton and is opposed to this project. A motion was made by Mayor Pro Tem Lesser, seconded by Councilmember Howorth, to approve Amendment No. 3 to HDR's existing agreement for an additional $98,400 for additional work for the Sepulveda Bridge Widening Project and authorize the City Manager execute the agreement; adopt Resolution No. 16-0084 approving the Construction Cooperative Agreement between Caltrans and the and authorizing the City Page 9

Manager to sign the agreement on behalf of the City; adopt Resolution No. 16-0002 approving the elements as set forth in the staff report related to 3500 N. Sepulveda Boulevard including a conditional amount for sound mitigation as well as an amount of $247,500 for temporary and permanent use of certain property at 3500 N. Sepulveda Boulevard; accept the irrevocable offer to dedicate the right-of-way from the joint owners of 3500 N. Sepulveda Boulevard and authorize the City Manager to sign the Certificate of Acceptance on behalf of the City; and adopt Resolution No. 16-0043 accepting the Chevron dedication and authorizing the City Manager to sign the Certificate of Acceptance on behalf of the City; authorize the Public Works Director to submit the Right-of-Way Certification to Caltrans; and authorize the City Manager to execute a Temporary Construction Easement (TCE) Agreement and a Permanent Highway Easement Agreement in forms approved by the City Attorney with RREEF America Reit II Corp. BBB. The motion carried by the following vote: Nay: 3-2 - Lesser, Howorth and Powell D'Errico and Burton N. NEW BUSINESS 14. Adoption of an Urgency Zoning Ordinance for Accessory Dwelling Units (ADU s) (Community Development Director Lundstedt). ADOPT URGENCY ORDINANCE NO. 16-0038U Item was presented out of order. Mayor D'Errico introduced the item. Community Development Director Marisa Lundstedt introduced Planning Manager Laurie Jester. Planning Manager Jester provided presentation. Planning Manager Jester and City Attorney Quinn Barrow responded to City Council questions. Mayor D'Errico invited public comments, seeing no one he closed public comments. Mayor Pro Tem Lesser requested to add an addition to the motion. Councilmember Burton, maker of the motion, accepted the addition from Mayor Pro Tem Lesser and deferred the issue of whether to impose a 500 square feet maximum instead of 1,200 square feet. A motion was made by Councilmember Burton, seconded by Mayor Pro Tem Lesser, to adopt Urgency Ordinance No. 16-0038U an interim ordinance of the prohibiting new accesory dwelling units except those that satisfy specified standards and declaring the urgency thereof. The motion carried by the following vote: Page 10

City Council provided direction that when the item returns to City Council in 45 days, there is additional information provided along the lines; the impact of the 500 square feet restriction and how its consistent with or different than what our current restrictions are and if its possible to just estimate the number of properties that might be impacted or some better data set for City Council to know if they are adopting this for a year or longer how this will impact the City's residents and property owners. 10. Report on Southern California Gas Company s Playa del Rey Natural Gas Storage Facility (Public Works Director Katsouleas). RECEIVE REPORT Mayor D'Errico introduced the item. Southern California Gas Company Public Affairs Manager Faviola Ochoa introduced Southern California Gas Company Public Affairs Manager Mike Harriel. Southern California Gas Company Public Affairs Manager Harriel provided PowerPoint presentation. At 9:00 PM Mayor D'Errico recessed the Regular City Council Meeting of December 20, 2016. At 9:00 PM Mayor D'Errico opened the Special City Council Meeting - Closed Session. At 9:00 PM Mayor D'Errico recessed the Special City Council Meeting - Closed Session to immediatedly after the Regular City Council Meeting. At 9:01 PM Mayor D'Errico reopened the Regular City Council Meeting of December 20, 2016. At 9:01 PM the item proceeded after the meeting reconvened. Southern California Gas Company Public Affairs Manager Harriel responded to City Council questions. Mayor D'Errico invited public comments: Jackie May is concerned with the information provided and the lack of information provided by the company. Mayor D'Errico closed public comments. A motion was made by Councilmember Burton, seconded by Mayor D'Errico, to receive the report. The motion carried by the following vote: Page 11

11. Report on Southern California Gas Company s Loop Project (Public Works Director Katsouleas). RECEIVE REPORT; PROVIDE DIRECTION Mayor D'Errico introduced the item. Southern California Gas Company Public Affairs Manager Faviola Ochoa presented PowerPoint presentation. Southern California Gas Company Senior Project Manager Ron Vaught and Southern California Gas Company Public Affairs Manager Ochoa responded to the City Council questions. Mayor D'Errico invited public comments, seeing no one he closed public comments. A motion was made by Councilmember Burton, seconded by Mayor D'Errico, to receive the report. The motion carried by the following vote: Page 12

12. Encroachment Permit to Allow Retractable Awnings in the Public Right-of-Way - 117 Manhattan Beach Boulevard (The Strand House) (Community Development Director Lundstedt). APPROVE Mayor D Errico introduced the item. Community Development Director Marisa Lundstedt introduced Associate Planner Eric Haaland. Associate Planner Haaland provided presentation. Associate Planner Haaland and Applicant, Owner of The Strand Mike Zislis responded to the City Council questions. Mayor D'Errico invited public comments, seeing no one he closed public comments. A motion was made by Councilmember Burton, seconded by Mayor D'Errico, to adopt Resolution No. 16-0073 allowing rectractable awnings over the public right-of-way with the following conditions; a) there will be no siding and b) the applicant can deploy umbrellas when the awnings are retracted but there can be no umbrellas when the awnings are fully deployed. Friendly amendment by Councilmember Howorth to allow for the applicant to work with the Community Development Department to determine how many umbrellas are needed and what times of the year. Friendly amendment accepted by the maker of the motion. Councilmember Powell is opposed to giving the applicant the option to use both umbrellas and awnings at any given time would only agree where is mutually exclusive but not both. Councilmember Burton withdrew his motion. Mayor Pro Tem Lesser proposed a new motion. City Attorney responded to City Council questions. A motion was made by Mayor Pro Tem Lesser, seconded by Councilmember Burton, to approve the applicant's request to provide for no siding and to not allow for umbrellas at this time but to not prejudice the applicant from coming forward at a later date to request for umbrellas if he shows that umbrellas are needed at times even with the current awnings. The motion carried by the following vote: Page 13

City Attorney Barrow provided clarification that there would be a new Condition 7 - there shall be no sidings and a new Condition 8 - there shall be no umbrellas without prejudice to the applicant to apply for umbrellas with more evidence in the future. Only clarification needed is if the request for the umbrellas should go to City Council or to the Planning Commission. City Attorney Barrow responded to City Council questions. Councilmember Powell does not approve the possibility of options for choosing or employees determine what to use, it should be one or the other as specified by the applicant. A motion was made by Councilmember Burton, seconded by Councilmember Howorth, to reconsider the first motion. The motion carried by the following vote: Nay: 3-2 - D'Errico, Howorth and Burton Lesser and Powell A motion was made by Councilmember Burton, seconded by Councilmember Howorth, to adopt Resolution No. 16-0073 allowing rectractable awnings over the public right-of-way with the following conditions; a) there will be no siding and b) the applicant can deploy umbrellas when the awnings are retracted but there can be no umbrellas when the awnings are fully deployed. The motion carried by the following vote: Nay: 3-2 - D'Errico, Howorth and Burton Lesser and Powell City Attorney Barrow provided clarification that there would be a new Condition 7 - there shall be no sidings and a new Condition 8 - there shall be no umbrellas when the awnings are extended. Page 14

13. Award of a Three-Year Contract to Frontier Communications for Budgeted Redundant Internet Access Services with an Estimated Value of $161,460; and Award a Contract to VectorUSA for Budgeted Wide Area and Wireless Network Equipment and Installation for an Amount Not-to-Exceed $250,812.61 (Information Technology Director Taylor). APPROVE Mayor D Errico introduced the item. Information Technology Director Sanford Taylor provided presentation and responded to the City Council questions. Mayor D'Errico invited public comments, seeing no one he closed public comments. A motion was made by Councilmember Burton, seconded by Councilmember Howorth, to approve the award of RFP 1074-16 to Frontier for redundant internet services with an estimated three-year value of $161,460 and approve the option for the City Manager to extend the term for up to two additonal one year periods if both extensions are exercised the approximate five year total contract will be $269,000 and award RFP 1077-17 to VectorUSA for WAN and WiFi network equipment installation amount not-to-exceed $250,812.61. The motion carried by the following vote: O. CITY COUNCIL REPORTS, OTHER COUNCIL BUSINESS, AND COMMITTEE AND TRAVEL REPORTS Mayor Pro Tem Lesser attended Community Choice Aggregation Committee hosted by the South Bay Cities Council of Governments and attended two subcommittee meetings. P. FORECAST AGENDA AND FUTURE DISCUSSION ITEMS 15. Agenda Forecast (City Clerk Tamura). DISCUSS AND PROVIDE DIRECTION Q. INFORMATIONAL ITEMS Councilmember Powell requested for staff to make the following change to the January 3, 2017, Agenda Item No. 8 - Tri-Annual Public Hearing on the Public Health Goals for Chemicals in H20, change the word "H20" to "Water". Page 15

16. Commission Minutes: This Item Contains Minutes of the following City Commission Meetings: a) Library Commission Meeting Minutes of September 12, 2016 (Parks and Recreation Director Leyman) b) Library Commission Meeting Minutes of November 14, 2016 (Parks and Recreation Director Leyman). INFORMATION ITEM ONLY By order of the chair, receive and file. R. CLOSED SESSION None. S. ADJOURNMENT At 10:47 PM Mayor D'Errico adjourned the meeting in memory of resident Warren Sherlock. Martha Alvarez Recording Secretary Tony D'Errico Mayor ATTEST: Liza Tamura City Clerk Page 16