MINUTES OF A REGULAR MEETING OF
THE LA HABRA HEIGHTS CITY COUNCIL
PERSONNEL
1. CALL MEETING TO ORDER
Mayor Borrowe called the Regular City Council meeting to order on Thursday, May 13, 2004 at 7:38 P.M. in the Community Center Multi Purpose room.
2. ROLL CALL
Present were: Mayor Borrowe, Mayor Pro Tem Douglas, Councilmembers Carroll, Klein and Millsap. Also present were, City Attorney Colantuono, City Manager Hendrickson, Senior Management Analyst Orchanian, Fire Chief Nielsen, Community Development Director Alexander, Planning Consultant Massa-Lavitt and Deputy City Engineer Lang.
3. FLAG SALUTE
Mayor Borrowe asked Jim Starkey from Senator Bob MargettÕs office to lead the flag salute.
4. PRESENTATIONS
Mayor Borrowe called Kathy Sauble, out of order.
á Kathy Sauble, Emergency Preparedness Chairperson, will report on matters pertaining to the CommitteeÕs efforts in Emergency Preparedness.
Ms. Sauble thanked all those who participated in the Health and Safety Fair. She stated that LA CountyÕs theme for this month is biological and she noted that she switched it to Fire Safety. The theme for the month from LA County is available at City Hall. Ms. Sauble commented on the ways fires can start and stressed the importance of weed abatement. She also stressed the importance of being prepared to care for ourselves for a while after a natural emergency and to check on neighbors or relatives that could need help.
á Jim Starkey, of Senator Bob MargettÕs office, will present former Mayor Carroll with a commendation.
Mr. Starkey explained that being a Mayor in this time of financial crisis is a difficult job. He expressed appreciation for the work Stan Carroll has done. He presented Mr. Carroll with a commendation from Senator Margett.
á Jim Starkey, of Senator Bob MargettÕs office, will present the City of La Habra Heights Fire Department with a commendation.
Mr. Starkey explained that after the fire storms last fall with their destruction, Senator Margett wanted to honor the Fire Departments of the 29th District for the work they did on these fires. Senator Margett partnered with Wal-Mart to come up with a ÒprintÓ honoring the fire service. He presented this to Fire Chief Nielsen.
á Congressman Gary Miller, will present former Mayor Stan Carroll with a certificate.
Pat, representing Congressman Gary Miller, stated that Congressman Miller has sent a certificate in recognition of a valuable year of service by former Mayor Stan Carroll. He also sends his congratulations to Mayor Borrowe.
á Recognition of outstanding High School seniors.
Mayor Borrowe presented certificates of academic excellence to the following students and asked where they will be attending college:
Taylor Boyd Bethel University in Minnesota
Patrick Fukushima Occidental College in LA
Jennifer Martinez Cal State Long Beach
Emily Popoff University of Notre Dame
Crystal Lord Fullerton College
Sophie Busch Westmont College
Joseph Klein UC Davis
The following students were not present to accept their certificates:
Carissa Balderas Blake Luitwieler
Whitney Hentzen Brandon Smetak
Alyse Fulbright
á Public Works Committee
There was no Public Works report.
á Fire Department Service Awards
Fire Chief Nielsen asked that Captain Stone and Captain Villa come forward and asked Mayor Borrowe to assist him. He stated that the two Captains have been with the La Habra Heights Fire Department for 25 years. He added that Captain Stone has been with the LA County Fire Department for 21 years and Captain Villa has been with the Pasadena Fire Department for 22 years. Fire Chief Nielsen and Mayor Borrowe presented Captain Stone and Captain Villa with Service Award Certificates and Plaques.
Lara Orchanian, Senior Management Analyst, reminded everyone that there are alternate vacancies on the Parks and Recreation Commission and on the Emergency Preparedness Committee. Residents interested in serving may apply at City Hall.
Tom Minich, Hidden Lane, stated that he lives just south of the 190 Olinda property. He explained that he is concerned with the water runoff from the Olinda property as it runs through his property and through neighbors. He stated that he has talked with the City numerous times about this problem. People from the City did come out to look at the situation. Mr. Minich stated that Deputy City Engineer Lang thinks that the water is coming from 200 Olinda, but his belief is that it is coming from the 190 Olinda address. He stated that according to the Planning Department an approved drainage system has been installed. He noted that he and his neighbors have seen no evidence that this has been done. He stated that his property has been flooded three times since the system was ÒinstalledÓ.
City Manager Hendrickson stated that he had spoken to Deputy City Engineer Lang who told him that he had signed off that the system had been installed.
Deputy City Engineer Lang stated that what was installed was not for drainage, but a SUSMP facility and when the tank becomes full it goes into the regular drainage along the side. He stated that there is water draining from 200 Olinda also. He stated that he does not know what else can be done for Mr. Minich.
Mr. Minich asked where the overflow is supposed to go. He stated that it seems to be following his fence line and on to his property.
Commissioner Klein explained that the Council had asked to get reports on what was going on with this problem. He stated that last fall they stopped getting any reports. He stated that his understanding was that if there was overflow from the three seepage pits placed in the eastern corner of the property, the water would then go to the street to the north and out into Hyatt. If there were any changes to that plan the Council was not informed. Councilmember Klein stated that he looked at Mr. MinichÕs back yard after the last rain and the overflow had filled his back yard with mud. He stated that now the Council finds the three pits are not placed where it was said they would be and there is a problem.
City Attorney Colantuono explained that the Council should not get into this subject deeply because it is not agendized. He stated that the Council should invite staff to bring back a report giving Council the information needed and options for proceeding at the next Council meeting.
Mayor Borrowe stated that in that report he would like to know what it is going to take to correct the situation, how quickly it can be corrected and then have it inspected to make sure it has been done correctly. This should be done in a short period of time.
Mayor Borrowe and Councilmember Klein asked that it be agendized for next months meeting.
City Manager Hendrickson stated that he was not aware that there had been a change and he had just received the report. He stated that he would not be at the next meeting, but it would be on the Agenda for June 10, 2004.
Mayor Borrow asked that Mr. Minich get the report at the same time the Council gets it from the Engineers. He also asked if the Council could get the report two weeks before the meeting so they have time to look it over.
Deputy City Engineer Lang stated that he would make every effort to do this.
5. APPROVAL OF WARRANTS – APRIL 2004
Mayor Borrowe noted that on page one (1) there is an item for Nicoloff & Associates, Inc. He asked who they are.
City Manager Hendrickson explained that it is the final report from the Architectural firm working on the Fire Station project.
Mayor Borrowe also asked what the charge from American Engineering Laboratory is for.
City Manager Hendrickson explained that they did the soils report for phase 2 on the property at the corner of Hacienda Rd. and West Rd. He stated that it is one half of the cost.
Councilmember Carroll offered a motion to receive and file the April 2004 warrants in the amount of $898,182.62. The motion was seconded by Councilmember Klein and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
6. TREASURERÕS REPORT – MARCH 2004
Councilmember Klein offered a motion to receive and file the March 2004 TreasurerÕs Report. The motion was seconded by Councilmember Carroll and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
The TreasurerÕs Report Consists of:
á Schedule of Cash & Investments
á Schedule of LAIF Investments
á Cash With Fiscal Agent – Bank of New York
á Payments to RKA/Transtech Civil Engineers
á Payments to City Attorney
á Major Planning Projects
á Balance Sheet
á Monthly & Year-to-Date Revenues Compared to Annual Budget
á Monthly & Year-to-Date Expenses Compared to Annual Budget
7. APPROVAL OF MINUTES Minutes of a Regular Meeting of the City Council Meeting of April 8, 2004.
Councilmember Millsap stated that she has a question on page seventeen (17). She asked Senior Management Analyst Orchanian if she had contacted the Water District again to see if they were interested in joining us in the Hazard Mitigation program we are working on.
Ms. Orchanian stated that they did hear from the Water District. They told us that the Board declined to participate in this project because they believe that the Vulnerability Assessment Plan that they are working on coincides with this Hazard Mitigation Plan. She stated that we do not agree with this.
Ms. Orchanian has explained to them that this does not pertain to a terrorist attack, but rather to any natural disaster and being able to get funding aid for that from FEMA.
City Attorney Colantuono explained that the State Legislature has asked the Auditor to review the ÒreserveÓ practices of the Special Districts of the State. The other process that will affect the Water District is a five-year service review that the LA County LAFCO is required to do for every City and District in the County.
The consensus of the Council was to find out from the Water District what they can do during a disaster and what their backup plans are.
City Manager Hendrickson noted that the State is looking closer at the special Districts because of the fiscal problem in the state.
Councilmember Carroll offered a motion to approve the April 8, 2004 City Council Minutes. The motion was seconded by Councilmember Millsap and approved as follows:
AYES: Borrowe, Carroll, Klein and Millsap
ABSTAIN: Douglas
NOES: None
ABSENT: None
7. NOTICE OF PUBLIC HEARING AND INTENTION TO ISSUE AN INITIAL STUDY/MITIGATED NEGATIVE DECLARATION CONDITIONAL USE PERMIT 2003-06 - 153 CANADA SOMBRE.
The applicant, Bentley-Simonson, Inc. (BSI), proposes to utilize the provisions of La Habra Heights Municipal Code Sections 9400 to request a Conditional Use Permit (CUP) for installation of gas processing equipment at Drilling Site 3 to market Sansinena natural gas to Southern California Gas Company.
RECOMMENDATION: Approve request for a Conditional Use Permit.
RESOLUTION NO. 04-21 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA HEIGHTS REGARDING CONDITIONAL USE PERMIT 2003-06.
Consulting Planner, Sandra Massa-Lavitt, reported that BSI is currently transmitting gas through the pipeline to the Olinda Oil Operation in La Habra. BSI is requesting a CUP to install and operate new natural gas processing and related equipment at Drilling Site 3 to market natural gas to the Southern California Gas Company, transmitted via existing pipelines. The proposed new equipment includes a carbon dioxide removal unit and five 70-kilowatt microturbines.
The excess carbon dioxide will be removed at Site 3 using an amine unit, and will be vented into the air at site 3. There are no exhaust fans included with this unit. There will be no firing on site, so there will be no flaming.
The microturbines installed will be to generate sufficient electricity to supply the majority of the siteÕs electrical demand.
On March 15, 2004 the Planning Commission held a Special Study Session to discuss the proposal and the main concerns brought up were noise, aesthetics and the safety of the new equipment. Those concerns were subsequently addressed at the April 27, 2004 Planning Commission public hearing. After a presentation from the applicant the Planning Commission recommended that the City Council adopt and certify the Mitigated Negative Declaration and adopt Resolution 2004-03 with attached conditions of approval.
Ms. Massa-Lavitt explained that she had gone to the site with Mr. Hale, Acoustical Engineer hired by BSI, and measured the noise level after the temporary baffle blankets were installed and the noise was decreased at the property line to 41dB to 50 dB.
Ms. Massa-Lavitt noted that as far as aesthetics go, trees have been planted and will be irrigated to shield production equipment and operations from view of surrounding residences. They are also required to paint the buildings to blend in more with the surroundings.
Ms. Massa-Lavitt noted that originally the venting pipe was 24 feet high. It is now going to be more hidden. The run of the pipe will be 24 feet, but it does not have to be vertical for that length. The Carbon Dioxide release should not cause noticeable odor.
In accordance with General Plan Safety Element Policy 45 the site will still be inspected two times a year by the Fire Department. Policy 46 requires BSI to provide remediation plans that will be in compliance with State regulations. All site activities will continue to comply with all applicable rules and regulations also Policy 72 requires contingency plans in case of disruptions of operations.
Ms. Massa-Lavitt reported on General Plan consistency. In the Land Use Element, policies 28 and 29 there is no mention of the existing use and operation of the oil fields as they stand now.
Energy Conservation, policy 9, encourages energy conservation.
Safety Element, policy 46, on Hazardous Waste is consistent with this project.
In the Noise Element,Ambient Noise Environment, discusses lower ambient noise levels and jet paths.
Short term noise impacts are discussed that are caused by any construction activity. The code does limit the hours for activity of all construction projects.
BSI has made efforts to reduce noise impacts in their plans. They are removing high level noise generators and will replace them with the microturbine equipment and enclosing the amine unit.
Staff recommends the City Council adopt Resolution No. 04-21, approving CUP 2003-06, and certify the Mitigated Negative Declaration subject to conditions found in the Resolution.
Ms. Massa-Lavitt noted that she did leave out one condition from the Resolution that addresses the venting pipe for the amine unit. She stated that she has the wording when the Council is ready for it. She also stated that on page 3 of the Resolution, number 14 and number 19 is the new wording suggested by the developer. (Please disregard the red number 22. It should be black.)
Clif Simonson, President and Chief Operating Officer for BSI, presented background information on BSI. He stated that Operational Safety and Community Involvement, Environmental Stewardship, Fiscal Accountability and Employee Development are very important to the company.
Mr. Simonson also gave a brief history of the Sansinena Field and explained the gas production at site 3. He also gave an economic summary for the City and mentioned the noise study by Mr. Hale.
Mr. Simonson noted that the landscaping plan has been upgraded and there is ongoing contact with the neighbors.
Mayor Borrowe mentioned the agreement with Crimson Oil for planting and taking care of some plants on Hacienda Road. He stated that it looks like BSI is taking care of them and he encouraged BSI to continue until the plants are able to survive on their own.
Mr. Simonson promised that they would attend to this.
Mayor Borrowe asked where the gas is odorized.
Mr. Simonson answered that we add some odor at site 3 and the Gas Company odorizes it further at site 5.
Mayor Borrowe stated that number 27 of the Resolution mentions that the City should have copies of all permits from all permitting agencies. He asked Staff how many permits there should be.
Ms. Massa-Lavitt responded that SCAQMD would issue a permit, also the Building Department. The Division of Oil and Gas does not issue a permit, but they do an inspection. OSHA does not issue a permit but does inspections. The Division of Oil, Gas and Geothermal Resources does not issue a permit but does inspections.
The Mayor explained that he would like to have a list so the City knows that everything is proper.
Councilmember Klein asked staff what the noise requirements are in our City that they would have to meet. He noted that most of the readings were taken during the day. He stated that his concern would be at nights when sound carries and people are trying to sleep. How are we assured that our regulations will be met? He also asked if we can have a third party conduct independent inspections so everyone knows that our noise restriction is going to be met.
Ms. Massa-Lavitt explained that the applicant has agreed to 45 dB night and day at the property line. She stated that it would meet the CityÕs code. She stated that Condition number 5 states that there will be an annual report on readings, or if there is a complaint it would be investigated.
Councilmember Klein asked if we could get an independent verification of the dB levels at the end of the project. He asked that this be made a Condition.
City Attorney Colantuono noted that in Condition number 5, the first sentence should be changed to read; ÒDaytime and night time noise readings shall be reported at project completion and annually thereafter by an independent third party selected by the City at the expense of the applicant.Ó Otherwise the Condition reads as printed.
Councilmember Klein questioned that if the Carbon Dioxide ever becomes an amount that the Air Resources Board regulates, would they grandfather it in?
Mr. Simonson explained that they would impose a regulation. Nothing would be grandfathered in.
The City Attorney suggested that at the end of Condition 27, the following be added: ÒBSI or its successor shall maintain the site in compliance with those permits, including Carbon Dioxide standards of the South Coast Air Quality Management District.Ó
Mayor Pro Tem Douglas asked BSI what they actually own?
Mr. Simonson explained that they own the minerals and ÒfeeÓ 100% on the sites, and on most sites the surface and the physical properties. Site 12 is leased. It still belongs to Unocal. Possibly Site 11 is leased.
Mayor Pro Tem Douglas asked for a definition of a Òpower oil loopÓ.
Mr. Simonson explained that the power oil loop was a feed loop from site 3 to a high pressure pump at site 5. This is no longer in use.
Mayor Pro Tem Douglas asked if our plans of where your pipelines exist in our City are fairly accurate. He asked if the gas lines run along with the pipelines.
Mr. Simonson explained that the City will be digitizing plans of all of their pipelines and utilities that are within the City. We have agreed to deliver all of our digitized data about the pipelines to Staff.
Mayor Pro Tem Douglas stated that in the event of a hazardous occurrence, do you have emergency preparedness plans in place?
Randy Horne, Environmental Health and Safety Manager, stated that they do have safety plans in place. They have been submitted to LA County Fire and local people.
Mayor Pro Tem Douglas asked if there were any special fire hazards that require separate response plans associated with any of the operations.
Randy Horne explained that they have several separate plans. All of the plans are checked and reviewed by more than one agency. He stated that the La Habra Heights Fire Department has access to all of the information from BSIÕs local office.
Mr. Simonson answered two of Mayor Pro Tem DouglasÕ questions. He explained that as to the life expectancy of the oil fields here, we are required to do an annual report on their reserves to Union Bank. In respect to abandonment of the oil fields, we pay into an abandonment reserve fund based on the bankÕs requirements to cover abandonment costs.
Mayor Borrowe stated that on page 6 of the Staff report there is a sentence under ÒSafetyÓ which states that the applicant shall submit a maintenance plan for operation of the site to the City. He asked when this will be done.
Mr. Simonson explained that the discussion centered on the maintenance frequency of the carbon canisters.
Ms. Massa-Lavitt explained that it would be an annual report, so this would be one year after the installation. This is covered under Condition 17.
Mayor Borrowe asked Attorney Colantuono if Condition 22 was agreeable with him.
Mr. Colantuono answered in the affirmative. He explained that they did not require insurance to back up the indemnity, as we believe that the field has sufficient value to back up the bond.
Mr. Simonson explained that BSI has provided the City with copies of their insurance.
Councilmember Carroll asked how the amine unit operates.
Mr. Simonson gave details of how the amine unit removes the Carbon Dioxide from the gas.
Councilmember Millsap asked where site 5 is.
Mr. Simonson stated that it is on Hacienda Road north of Reposado.
Councilmember Millsap asked if there have been any instances of health concerns in other cities after switching to this process.
Mr. Simonson answered in the negative.
The City Attorney stated that the process has been happening in Brea for quite a while.
Councilmember Millsap asked if the other sites noise levels are monitored.
Ms. Massa-Lavitt answered that they are not under the same kind of requirements as they have not come in for a discretionary action. They do have to be consistent with the dB levels required in the General Plan. She stated that to her knowledge there have not been any complaints at any of the other sites.
Councilmember Millsap noted that under ÒPlanningÓ on page 2, Item 2 it is mentioned that the entitlements granted by the CUP shall be valid for a two year period or until successfully completed. She asked if it was not true that the CUP remains in effect forever.
City Attorney Colantuono explained that if the permit is not implemented it expires.
Councilmember Millsap asked for clarification on Item 3 where it states that the entitlements of the CUP shall be reviewed after 6 months and thereafter an annual report shall be made to the Director of Community Development.
Ms. Massa-Lavitt explained that after six months a report will go to the Planning Commission and the Council on the status of what has been done and what must still be done on the project. From then on it will be reported annually.
Councilmember Millsap stated that there had been a letter from Stephen Blagden. She asked if there were suggestions that seem important other than Item 3.
City Attorney Colantuono stated that there might be legal issues in the suggestion to purchase gas from BSI. This would have to be looked into.
Mayor Borrowe stated that Item 5 was important about BSI developing contingency plans, in cooperation with the Fire Department, for emergency situations.
Mayor Borrowe asked about Item 7 which suggests the CUP be recorded at the LA County Recorders office.
The City Attorney stated that this was a policy decision, but since this concerns a business, it is unlikely they would lose track of what the rules are.
Mayor Borrowe felt that BSI was sensitive to Item 6 that they need to blend in to the neighborhood with their building materials.
Tom Higgs, El Cajonita Drive, asked Mr. Hale what kind of equipment he used in taking readings of the noise.
Mr. Hale explained that he has had 30 years experience in noise, vibration and acoustics. He stated that they have been using the meters mentioned in the CityÕs noise monitoring requirements. They are calibrated by the manufacturers and are calibrated prior to and after a monitoring session using an acoustic calibrator. The measurements are made in accordance with the noise ordinance of La Habra Heights. He stated that for his own edification and part of the design process assisting BSI, he has made measurements around the noisy equipment on site and in certain other positions in the directions of residences surrounding the site with the intent of being able to identify equipment responsible for portions of the noise at various distances away from the equipment. Mr. Hale stated that he has gone to other sites where the microturbines are installed presently, with and without the inlet mufflers, and have made the measurements necessary to apply those noise sources to this project with the recommendation that not only should the inlet mufflers be installed, but also additional acoustical mitigation be placed around the string of microturbines.
Mr. Higgs stated that he was also concerned with the traffic that would be generated by BSI and that they will be going in and out on the same route. We have not talked about the traffic or what it is doing to the roads. He stated that he would like a copy of the Staff Report.
Mayor Borrowe stated that he could get a copy of the Report at City Hall Monday.
Norm Zezula, stated that he suggests that in addition to an annual report, a condition be added to the CUP that a BSI representative attend one City Council meeting each year in order to receive and respond to questions, comments and complaints from the Public.
The City Attorney stated that he was not sure they could legally impose that condition, but the Council can have an Agendized discussion of their compliance with their permits annually and they will want to be here to participate in that discussion.
Ken Carlson, State of California Division of Oil and Gas, stated that the Division regulates the Drilling, Operation, Maintenance, Reworks (in cases of the abandonment of oil wells) and Geothermal Wells, in the State of California. Mr. Carlson explained that as he understands the Division of Oil and Gas the permits are forwarded to La Habra Heights Fire Department. Other documents are Public Record and are available for review.
Fire Chief Nielsen explained that the Fire Department has the pipeline maps and already has a plan for leaks and ruptures. Those plans are updated frequently. If there are any changes in the location of the pipelines the Fire Department gets the updates. He stated that the information is shared with the Vernon Fire Department and the Santa Fe Springs Department in case of a hazmat spill in our City. We have done an extensive study of the subject and asked advice from the LA City Fire Department and the inspection group that deals with BSI in other cities and the Department of Oil and Gas. Mr. Nielsen stated that the replacing of the old equipment with new equipment seems to be a positive increase in safety. He stated that the compression, storage and cooling of gas being moved out of the City seems especially satisfactory. His opinion is that BSI has done a good job of trying to comply with our safety rules. Anything we have asked them to do on any of the sites they have done.
Mayor Borrowe closed the Public Hearing and brought the discussion back to the Council. Mayor Borrowe reopened the Public Hearing so Councilmember Klein could question the Sound Consultant.
Councilmember Klein asked Mr. Hale, Sound Consultant, what the effect would be at 45 dBA at the different frequencies?
Mr. Hale, Sound Consultant, stated that the human ear does not respond very well to the low frequencies. It takes a lot more energy at the low end to get the same sensation of loudness. The high frequencies are a lot easier to control and much easier to mitigate. The inlet silencer that is available for the microturbines does a fantastic job in that range. In the nighttime when other sounds have quieted down you might hear the turbine or not at all.
Mr. Hale explained that 45 dBA is the quietest required noise limit that he knows of in the country. Most requirements are 50 dBA.
Councilmember Klein asked what 45 dBA would be in NC.
Mr. Hale responded that the NC number for interior background numbers would be about 43 NC. He stated that basically 45 dBA is quiet.
Councilmember Klein read Condition number 14 and stated that he thought that it gave the City room to change things if there were still complaints.
Mr. Hale commented that noise is subjective. He stated that after the mitigation measures are installed, sounds will be heard, but they will not be loud. It will comply with the City Ordinance.
Councilmember Klein explained that people live here because they want it quiet.
Laura Stetson, representing the Applicant, introduced some changes they would like to see in the Conditions to clarify the intent of the Conditions:
á On Condition 11 of Resolution 04-21, sentence number 1, insert the word ÒmicroturbineÓ in front of the word ÒVendorÓ.
á On Condition 14 of Resolution 04-21, at the end of sentence number 3, after the word ÒviolationÓ add the phrase Òor otherwise demonstrate compliance within a reasonable time frame.Ó
Councilmember Klein noted that we need something more solid than the word ÒreasonableÓ.
Ms. Stetson noted that they have already demonstrated that they can meet the noise conditions of the City.
City Attorney Colantuono explained that if the
ÒreasonableÓ time limit is not possible, it is not going to happen. He changed
Ms. StetsonÕs change to Condition 14 to read,
Òor if doing so is not feasible, otherwise demonstrate compliance within a
reasonable time determined by the City.Ó
Ms. Stetson continued:
á On Condition 20, on the third line after the word ÒscreenÓ add Òviews into the siteÓ. At the end of Condition 20 add ÒThe Applicant or any successor shall maintain all irrigation and landscaping on the site in good order. The applicant shall inspect the site for compliance with this Condition and report to the Community Development Director with photographs at least twice annually on the full and half anniversary of the Certificate of Occupancy.
á On Condition 21, in the first line, remove Òmeasure No. lÓ and replace with Òmeasures relating to noise abatementÓ.
Mayor Borrowe closed the Public Hearing and brought the discussion back to the Council.
Mayor Pro Tem Douglas offered a motion to approve Resolution 04-21 as amended and CUP 2003-06. The motion was seconded by Councilmember Millsap and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
Mayor Borrowe stated that in consideration to the audience and the late hour the council would move on to the Consent Calendar.
13. IT IS RECOMMENDED THAT ITEMS 13 a. THROUGH 13 c. BE ACTED UPON SIMULTANEOUSLY BY ONE MOTION OF THE CITY COUNCIL UNLESS SEPARATE DISCUSSION AND/OR ACTION IS REQUESTED BY A COUNCILMEMBER OR A MEMBER OF THE AUDIENCE.
13a. HEIGHTS CHRISTIAN SCHOOL PROJECT.
April 2004 StateÕs Report for Heights Christian School.
RECOMMENDATION: Receive and file.
13b. SETTLEMENT AND RELEASE OF LEGAL SERVICE OBLIGATION WITH GARY AND LAURA TURTZER.
RECOMMENDATION: Receive and file.
13c. INFLATION ADJUSTMENT IN RATES FOR LEGAL SERVICES BY COLANTUONO & LEVIN.
RECOMMENDATION: Receive and approve.
Councilmember Klein moved to receive and file 13a and 13b and to approve 13c. The motion was seconded by Councilmember Carroll and approved as follows.
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
Mayor Borrowe moved back to Item 9.
9. APPROPRIATION ADJUSTMENT FOR FY 2003-04 BUDGET
RECOMMENDATION: Approve proposed Budget Amendments to the FY 2003-04 Budget including the General Fund.
Councilmember Carroll offered a motion to approve Resolution No. 04-23 for Budget Amendments for 2003-04. The motion was seconded by Councilmember Millsap and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
10. CONSIDER AND APPROVE FY 2004-05 BUDGET
City Manager Hendrickson introduced the FY 2004-05 Budget and thanked the Budget Review Committee. He stated that the Senior Accountant and he have taken suggestions made by the Budget Advisory Committee and the City Council in the last year on the project. He stated that Fred Vernon, Senior Accountant, will present an overview of the 2004-05 Budget. Our objective has been to take into consideration any changes coming from Sacramento and still not have to use any of our Reserves.
Mayor Borrowe thanked the City Manager and Mr. Vernon for their work and stated that the Council received the Budget on Tuesday and he was recommending that this item be continued to a Special Meeting that deals only with the Budget. He stated that he had many important questions that need to be answered.
The Council discussed when to hold the Special Meeting. The consensus of the Council was to hold the Special Budget Meeting on Thursday, June 24, 2004 at 6:30 P.M.
City Attorney Colantuono informed the Council that they should make a motion to table this item after Mr. VernonÕs overview of the Budget.
Mr. Vernon presented the FY2004-05 Budget Highlights:
REVENUES:
Mr. Vernon explained that General Fund Revenues will be just over 2 million dollars.
Total Special Fund Revenues will be 1.7 million dollars.
Total Capital Projects $615,700.
The total Revenues will be $4,382,512, which is a 2.37 % decrease mainly due to a reduction in state revenues.
EXPENDITURES:
á Total General Fund Expenditures are 2 million dollars
á Total Special Fund Expenditures are 1.8 million dollars
á Total Capital Projects Expenditures are 1.7 million
Total Expenditures are $5,607,000, which is 21.6% mainly in the Capital Projects area.
GENERAL FUND REVENUES:
á $2,037,000 in Revenues, an 8.2% decrease
á $22,028 General Fund Surplus Expected
á Property Taxes Increase 1.04% (due to ERAF)-Normally they would increase 3-4%
This is because the State is using the difference to take care of its budget.
á Less Building Activity – Decrease of 20%
á Expect to receive only 2/3 of the VLF (due to ERAF)
This is also tied in to the StateÕs situation. 1/3 should be received in 2006.
The City Manager explained that ERAF means Education Revenue Augmentation Fund. Part of the CityÕs property tax goes into a fund for the schools. This helps the State.
The City Attorney explained the history of the 8% portion of the property tax that came back to the Cities.
GENERAL FUND EXPENDITURES/TRANSFERS
á $2,015,000 in expenditures is expected – this is a 2.3% increase.
This is due to an increase in Benefits and Health Insurance
á $75,000 is expected for a Òone timeÓ General Plan Implementation costs (every ten years.
á Transfer of $50,000 for Land Acquisition.
GENERAL FUND BALANCES/RESERVES
á Fund balance or Reserves are $2,539,000.
The reserves are about 126% of expenditures, which is very good.
Councilmember Carroll asked the City Attorney if he thinks we have much to worry about for the 126% of reserves as far as the State is concerned.
City Attorney Colantuono stated that he has not heard any discussion of looking at the reserve policies of general-purpose local governments (Cities and Counties). He stated that the reason there is concern about the reserve policies of Special Districts, is that Special Districts tend to be relatively not looked at closely.
Senior Accountant Vernon read the Fire DepartmentÕs Mission Statement.
FIRE FUND REVENUES
á $1,071,000 Total Revenues – This is a 6.8% increase.
The increase is due to increased fire tax due to higher ratio of developed lots/larger homes.
The City Attorney explained that when the voters approved the Special Fire Tax, they converted what had been a Fire Fee, not included in the Gann limit, to a tax that is included in the Gann limit. As a result, there are now more taxes than allowed by the Gann limit. When the voters approved this Special Tax in 1997, they also approved an increase in the Gann limit to allow to receive and spend these taxes for fire services in the Community. The Gann limit has to be renewed every four years and will appear on the next March ballot.
á Mr. Vernon continued that we are expecting an increase in Grant Revenues (Federal) to purchase equipment.
á We also expect an increase in Wildfire Contract Revenues.
FIRE FUND EXPENSES/TRANSFERS
á Substantial increase in paramedic/ambulance costs from $10,000 to $175,000.
á Increase in equipment replacement and purchases. Will be from Federal Grants.
á Transfer of $150,000 to Capital Projects Fund for land Acquisition.
FIRE FUND RESERVES/TRANSFERS
á He stated that the Fund Balance of Reserves is expected to be $767,000.
The Reserve is 67% of Expenditures.
OTHER RESTRICTED FUNDS/EXPENDITURES
á Gas Tax – Receive $136,800 – Spend $115,000.
á Prop A – Receive $82,500 – Spend $81,000.
á Prop C – Receive $83,500 – Spend $81,000.
á Supp. Law Grant – Receive $100,000 – have option of spending up to $160,000.
á Park Grant Projects – Receive $153,000 – Spend $162,000.
Mr. Vernon explained that the Gas Tax money is from the state and has to be spent on roads and streets. Prop A we get from MTA, we cannot use these funds, so we have to exchange them with another City and then what we get can go into the General Fund for our use. Prop C is also from MTA and can be used for streets and roads and local transportation. The Supplemental Law Grant comes from the State through the County to be used to supplement law enforcement. Parks & Recreation Grants come mostly from the State for the Park.
City Attorney Colantuono explained that we get the gas tax based on our population applied to the gas tax paid in LA County. It is paid per gallon, not price. He stated that Prop A and Prop C are voter approved ½ cent sales taxes that are Countywide.
CAPITAL PROJECTS FUND – ROADS
EXPENDITURES
á Ongoing Street/Road Maintenance for District #2 in the amount of $330.000.
á Ongoing Street/Road Maintenance for District #3 in the amount of $575,000.
These figures include 30% contingency to cover costs if FY 03-04 is not completed until FY 04-05.
CAPITAL PROJECTS FUND – FACILITIES
EXPENDITURES
á $480,000 is budgeted for the acquisition of land for new facilities.
á $120,000 is budgeted for the Planning and Design for new facilities.
This concluded the Senior AccountantÕs Overview.
Councilmember Carroll offered a motion to continue the Budget item until the Special City Council Meeting on June 24, 2004 at 6:30 P.M. The motion was seconded by Councilmember Millsap and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
11. GANN APPROPRIATION LIMIT FOR THE FY 2004-05 BUDGET
RECOMMENDATION: Approve FY 2004-05 GANN Appropriation limit.
City Attorney Colantuono explained that if the voters do not approve the Gann limit increase, we would receive the portion of the Fire Fee up to the Gann limit. You would not get the rest of the Fire Fee. We would have to return the portion over the Gann limit.
Councilmember Klein offered a motion to approve Resolution No. 2004-25 for the GANN Limit. The motion was seconded by Councilmember Carroll and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
12a. ORDINANCE NO. 254 – AN ORDINANCE OF THE CITY OF LA HABRA HEIGHTS AMENDING ARTICLE 1 OF THE LA HABRA HEIGHTS MUNICIPAL CODE TO ESTABLISH AN ADMINISTRATIVE ENFORCEMENT PROCESS.
Approval of Ordinance would authorize the City to impose administrative fines on violators of the La Habra Heights Municipal Code.
RECOMMENDATION: Waive further reading and adopt by title only.
City Attorney Colantuono reported the different means possible to deal with property owners who do not maintain their property in compliance with the CityÕs Ordinances. They all end up with a lawsuit and spending money on legal fees. An alternative strategy for enforcing the codes is an Ordinance such as No. 254 presented tonight. It allows for imposing Administrative Penalties. Basically, the person would receive a ticket for non-compliance. It starts with a notice of violation (a courtesy notice giving the person a period of time to come up to compliance.) If they do not comply by the end of that time period, a fine may be imposed. The initial fine proposed by the Resolution is $300.00. If there is a second violation within a 12 month period, the fine would be $400 and if there is a third and further violations would escalate to $500. Mr. Colantuono stated that these fines are due and payable and can be collected as other debts. The property owner can request an informal review with the Fire Chief or Planning Director, if still not satisfied, the property owner could request a formal review before the City Manager and present some type of evidence and as a last resort they could take it to court and ask the judge to overturn the penalty. He stated that this would be most useful with property owners who are really not cooperating with the Weed Abatement process. The CityÕs objective is compliance, not fee collection.
Mayor Pro Tem Douglas asked who the Enforcement Officer would be.
City Attorney Colantuono stated that the definition of the Enforcement Officer is listed on page 1 of the Resolution under 1501d. It states that such person is designated by the City Manager and must have a valid PC 832 Certification. He questioned if the PC 832 was needed.
Fire Chief Nielsen explained that it was not needed in weed abatement cases. He stated that he and the Fire Marshal do have to have Certification because they are arson investigators.
The City Attorney suggested that they remove the reference to needing a valid PC 832 Certification. That would involve the ability to handle weapons.
Barbara Doppieri stated that there are two stages to the PC 832. The right to issue citations and the right to carry a weapon.
City Attorney Colantuono stated that he would look into this matter before the second reading of the Ordinance.
Councilmember Millsap asked if notices that are sent out from the Fire Department are sent by ÒCertified MailÓ.
Fire Chief Nielsen answered in the affirmative.
Councilmember Millsap stated that on page 3 of the staff report it notes that each day is a new violation and that each daily violation may be subject to the maximum fine permitted. She asked at what point this would start.
City Attorney Colantuono explained that this would be after the Courtesy notice period. This would not be done normally. It would just be for those who are causing more than normal problems fighting the Citation.
City Manager Hendrickson explained that the City, except for Weed Abatement, does not usually look for violations, unless they are reported to us. He reported that in his opinion this Ordinance gives the City a tool to speed up the compliance.
Councilmember Millsap noted that under 1504 Item b of the Resolution, Òfirst class mailÓ be changed to read Òcertified mail.Ó
The City Attorney stated that they should make that change everywhere ÒmailÓ is mentioned.
Councilmember Millsap asked, on 1506, in what cases they would record or not with the County Recorder.
The City Attorney explained that you would record in order to give notice to potential buyers of property. It would be up to the City Manager to suggest this.
Councilmember Millsap asked on 1516 if we have ever had the mentioned hearings.
The City Attorney stated that not in his time with the City has this been done. This would be cumbersome and drawn out. To avoid this we have gone straight to court.
Ms. Millsap asked if we had an administrative hearing would it be open to the Public.
City Attorney Colantuono answered in the affirmative.
Ms. Millsap suggested that on the form for the Administrative Citation the Fire Department phone number be changed to City Hall number.
The City Manager agreed with that.
Mayor Pro Tem Douglas asked if this procedure opened the possibility of abuse of a resident in the future.
City Attorney Colantuono answered that it would probably not, as we can not make the penalties stick without judicial assistance. The City would be supervised by the Court.
Mr. Colantuono stated that the protection of unreasonable search and seizure is in the Fourth Amendment. He stated that his advice to the Fire Department is that they should not be on private property without permission or a warrant. 1505 covers the authority to inspect. This is a CityÕs authority. This might need to be stated more clearly and when we bring this back to the Council we will have the changes.
City Manager Hendrickson asked if there was a difference in vacant property from property with a house on it.
Mr. Colantuono stated that if the vacant property had an opaque fence around it the owner has an expectation of privacy. What you can see from the street we are allowed to look at.
Mayor Pro Tem Douglas stated that 1505 states that ÒEnforcement officers are authorized to enter upon any property or premises within the City to ascertain whether the provisions of the Municipal Code are being obeyedÉÓ
The City Attorney suggested that we add at the beginning of the sentence, ÒWithin the constraints imposed by the Fourth Amendment to the U.S. ConstitutionÓ.
Mr. Colantuono stated that generally we get consent. If this is not possible a warrant should be obtained.
Fire Chief Nielsen explained that the warrant procedure is not difficult.
City Attorney Colantuono noted that the Council has to decide if they want this type of enforcement to apply to anything more than Weed Abatement.
City Manager Hendrickson explained that we are not going to give a citation on the first notice. There has to be some judgement exercised as to the degree of safety seriousness.
The Council discussed what they would like to see this enforcement cover.
City Attorney Colantuono stated that they will leave the PC 832 language in and let you know if it can be safely dropped at the second reading. He suggested that staff bring back a list of the code sections that Council might wish to enforce with this tool initially.
Mayor Pro Tem Douglas offered a motion to Waive further reading and adopt as amended by title only for Weed Abatement at this time. The motion was seconded by Councilmember Millsap and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
12b. RESOLUTION NO. 04-22 – A RESOLUTION OF THE CITY OF LA HABRA HEIGHTS SETTING FORTH THE ADMINISTRATIVE FEES AND PENALTIES FOR VIOLATIONS OF THE LA HABRA HEIGHTS MUNICIPAL CODE.
A Resolution setting forth an escalating administrative fine schedule for code violations.
RECOMMENDATION: City Council approve and adopt Resolution No. 04-22.
City Attorney Colantuono explained that the Council has the authority to set the fine amounts at anything less than the State penal codes ($1000) and the practice is to have them escalate. Staff is recommending $300, $400 and $500. He explained that if the Ordinance is adopted on June 10, 2004 it would take affect on July 10, 2004.
Mayor Pro Tem Douglas offered a motion to approve and adopt Resolution 04-22 for the recommended fines. The motion was seconded by Councilmember Millsap and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
14. AGREEMENT FOR EXCHANGE OF PROP A FUNDS.
A Resolution to approve agreement with the City of Whittier for exchange of Prop A funds for General funds at a $.65-cents-per-dollar exchange rate.
RECOMMENDATION: Adopt Resolution No. 04-18
RESOLUTION NO. 04-18 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA HEIGHTS APPROVING AN ASSIGNMENT WITH THE CITY OF WHITTIER.
Senior Management Analyst Orchanian reported on exchange of Prop A funds with the City of Whittier. She stated that this item was tabled due to Whittier not being ready to make the exchange and they are ready now. We have available $79,837 which will be exchanged for $51,894.05 of WhittierÕs General Funds to our General Fund. We will be able to use this amount as needed. The exchange rate is typical in todayÕs economy. We have been making this type of exchange since FY 97-98. As a result La Habra Heights is able to utilize the Dial-A-Ride program through the City of Whittier Transit Department. This serves the Seniors and Disabled in our Community. Once we receive the money we can use it on any project we see fit. We do have to make this exchange by June 30, 2004.
Councilmember Millsap asked if we allowed for this exchange money in the Budget.
Ms. Orchanian answered in the affirmative.
Councilmember Carroll offered a motion to adopt Resolution No. 04-18 for the exchange of Prop A funds with the City of Whittier. The motion was seconded by Councilmember Klein and approved as follows:
AYES: Borrowe, Carroll, Douglas, Klein and Millsap
NOES: None
ABSENT: None
15. CITY COUNCILÕS APPOINTMENTS TO VARIOUS COMMITTEES.
RECOMMENDATION: City Council appointment of members to the various committees.
City Attorney Colantuono went through the list of committees and noted which ones require a 700 filing.
1. LEAGUE OF CALIFORNIA CITIES– Delegate, Douglas – Alternate, Millsap
2. L.A. COUNTY SANITATION DISTRICT – Delegate, Carroll – Alternate, Douglas
3. CALIFORNIA CONTRACT CITIES ASSOCIATION – Delegate, Borrowe -
Alternate, Millsap
4. CALIFORNIA JOINT POWERS INSURANCE AUTHORITY – Delegate, Carroll – Alternate, John Hendrickson
5. WILDLIFE CORRIDOR CONSERVATION AUTHORITY – Delegate, Klein – Alternate, Douglas
6. SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS – Delegate, Millsap – Alternate, Carroll
7. GATEWAY CITIES COUNCIL OF GOVERNMENTS GROUP – Delegate, Carroll – Alternate, Millsap
16. PARKS AND RECREATION FACILITY USE REGULATIONS
Request City Council approval to utilize new Parks and Recreation facility use regulations, application and fees beginning January 1, 2005.
RECOMMENDATION: City Council approve for City Staff to utilize new Parks and Recreation facility use regulation, application and fees beginning January 1, 2005.
Senior Management Analyst Orchanian reported that she has not had a Resolution prepared for approval of the new facility use regulations and fees. She explained that they can do a preliminary approval tonight or bring it back next month for a full approval.
Councilmember Millsap asked that the Council be apprised of the changes that will be made.
Ms. Orchanian explained that she will finish the changes and get them to the Council ahead of time for the next meeting.
Mayor Borrowe asked why the new regulations and fees do not start until January 1, 2005.
Ms. Orchanian explained that the Gymnasium is already booked through December 2004 under the old rules and fees. She stated that they could not raise fees on those already booked. She agreed that as soon as the rules and fees are approved they can use them for new bookings.
The consensus of the Council was to continue Item 16 to next Council meeting on June 10, 2004.
ADMINISTRATIVE REPORTS
17. CITY MANAGERÕS REPORT
á Agreement For Paramedic/Ambulance Services.
City Manager Hendrickson stated that he had talked to the City Manager of La Habra and he will take the matter to his Council for approval.
He explained that the service will continue on a month-to-month basis until La Habra has a firm agreement with L.A. County or we make a decision on which way we want to go. The cost of the month-to-month basis will be less than the $194,000 per year since that included the overhead cost of L.A. County and a second ambulance. Everything will probably be completed by the end of summer. We are still working on our decision. Mr. Hendrickson noted that Fire Chief Nielsen has told him that if we go Òin-houseÓ, he will have a plan that Mr. Hendrickson will feel comfortable with.
Mr. Hendrickson stated that we will be working on the Ordinances with a Consultant and hope to have a general document ready for viewing and suggestions by the end of the summer.
18. CITY ATTORNEYÕS REPORT
The City Attorney had no report.
19. PLANNING DIRECTORÕS REPORT
The Planning Director had no report.
20. CITY ENGINEERÕS REPORT
The City Engineer had no report.
21. FIRE CHIEFÕS REPORT
The Fire Chief had no report.
22. SHERIFFÕS DEPARTMENT REPORT
There was no Sheriff present.
23. COMMISSION/COMMITTEE REPORTS
Ms. Orchanian reported the upcoming Avocado Festival will be on May 22, 2004. She thanked the Parks and Recreation Commission and City Staff for helping to put this event together.
Ms. Orchanian also reported to the Council that they had received a second bidding on the Park Kitchen project. The bid came in at $92,000. We are considering some other options which will be brought to Council next month.
Ms. Orchanian also stated that the proceeds from the Dunk Tank at the Festival will go to the Fire Department. She noted that they need more volunteers for the tank. Only Councilmember Millsap has volunteered at this point.
CONTINUED PUBLIC COMMENTS ON ITEMS ON THE AGENDA AND NOT ON THE AGENDA
Councilmember Klein stated that the traffic light on West Road is not changing as it should and needs to be checked.
Mayor Borrowe stated that he received a similar complaint about the East Road signal.
The City Manager stated that he would call Santa Fe Springs about the lights.
Mayor Borrowe asked for a status report on the Hacienda Road striping.
Deputy City Engineer Lang explained that they were formalizing the bid package and expect to have the work done in July-August.
Mayor Borrowe asked that he get a report at the next Council Meeting covering a complete accounting of what has been spent on Consultants and Plans for a new City Hall and Fire Station. This would include an appraisal on this property and soil testing on the new property.
ADJOURNMENT
Mayor Borrowe adjourned the City Council Meeting at 12:32 A.M. to the next regular meeting on June 10, 2004.
ATTEST:
______________________________________
CITY CLERK, JOHN F. HENDRICKSON