1991 JUN 18 CC MINREGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL KNUTES - JUNE 18, 1991
CALLED TO ORDER at 7:00 p.m. by Mayor Jacobson.
INVOCATION given by Reverend Alexei Smith, Saint Andrew Russian Greek Catholic Church.
PLEDGE OF ALLEGIANCE given by Councilman Wise
PRESENTATIONS - NONE
ROLL CALL
Councilman West
- Present
Councilman Wise
- Present
Mayor ProTem Dannen
- Present
Mayor Jacobson
- Present
PUBLIC COMMUNICATIONS
Five individuals addressed City Council.
Liz Garnholz addressed Council requesting the opportunity peak on Special Order Of Business Item
No. 1.
Written Appeals Regarding Penalties and Interest On Late Business Liaenee Filing By:
AIR NEW ZEALAND r.TMPI ED
Rod Margo, Attorney for Air New Zealand Ltd. (ANZ) - addressed Council stating that ANZ was
requesting to be forgiven from payment of penalties and interest based on the fact they were
never notified that this tax was applicable to their business operation in El Segundo. Once
aware, they paid the tax and interest but not the penalty fees. Subsequent to a meeting on
March 26 with Steve Klotzsche and Joan Garcia from the Finance Department, they were
informed they could submit a letter requesting information on how business license tax,
penalties, and interest fees were assessed. On June 18 a letter was written to City Clerk Hart
requesting copies of the Notice in the El Segundo Herald, and minutes of the meetings debating
and approving this tax - which they received no response to. Therefore, it is ANZ's position that
the City of El Segundo has violated the Brown Act under Government Code Section 54950, that
the meeting between City Council discussion the business license tax and penalties were not
discussed openly. Also, it is their position that this Business License Tax was adopted illegally
under Government Code Sections 53722 and 53723; that the tax has not been submitted to the
electorate in order for its introduction, and feel the 20 percent per month penalty - in respect of
the tax - produces constitutionally excessive penalties and violates the due process provisions of
the Federal and California Constitutions and is accordingly invalid.
Leland Dolley, City Attorney responded that this presentation goes beyond what is in the appeal,
and there appears to be legal matters in which Council may wish to consider discussing in Closed
Session - prior to taking any actions.
Mayor ProTem Dannen stated for the record that any charges going against the Ralph M. Brown
Act, go against a Councilman individually, which therefore allows him to speak as an individual
this evening. This was an unacceptable tactic which he will check into whether there is a
counter motion in court and take the appropriate legal action. He stated he never met in private
and discussed these taxes, penalties, and /or interests with anyone, and it has always been done
in the public eye within the Ralph M. Brown Act. Furthermore, he was tired of those businesses
failing to pay those taxes due and then trying to point the blame elsewhere.
Councilman West stated concerns regarding these taxes and penalties, and that he also does not
appreciate being charged with something he did not do.
Councilman Wise stated the Council has been discussing business license taxes, penalties, and
interests issues in several public meetings and never discussed these taxes, penalties, and /or
interests in private.
Mayor ProTem Dannen requested that an item be placed on the July 2 Agenda regarding a
discussion /possible action of reviewing a draft resolution setting up a special fund in which all
penalties and interests will be placed - separate from the general fund - and will be used for
brochures, etc. which will attract business for the City of El Segundo.
Mayor Jacobson stated these businesses are not new businesses and are established in other
towns and are aware of the requirements in obtaining a business license.
Mr. Margo responded that ANZ is a foreign company who is not aware of the municipal, city,
state, or federal tax which is assessed in this Country, and with respect to the Brown Act - their
letter of June 18 to City Clerk Hart was not responded to which led them to believe the City
adopted this business license tax illegally.
Mayor Jacobson confirmed with City Attorney Dolley that this item will be moved into Closed
Session.
AURA SYSTEMS, INC.
Robert Magid, Aura Systems - addressed Council requesting to continue their appeal to July 2
to allow them the opportunity to review these assessed penalties and interests.
Council consensus to continue appeal to July 2 with the understanding there would be no
waiving of penalties. 4/0
INFERENCE CORPORATION
Mayor Jacobson stated Inference Corporation made a written request to postpone their appeal
until September, 1991.
Council consensus to continue appeal to July 2 only with the understanding there would be no
waiving of penalties, and staff directed to transmit a letter informing Inference Corporation of
the Council's decision.
MATTEL, INC.
Norman Vaughan, Representative for Mattel, Inc. - addressed Council requesting to continue
their appeal to July 2 due to their recently submitted corrections not received in time to be part
of this meeting material.
City Manager Cano informed Council staff received Mattel's corrections on June 17 which were
too late to include them in this meetings packet.
Council consensus to continue appeal to July 2 with the understanding that there would be no
waiving of penalties. 4/0
Flooring Concepts Representative - addressed Council stating that they were hired by PW Construction
for the Library Project and asked for assistance in obtaining payment for special ordered material for
this project.
City Manager Cano stated he would meet with Flooring Concepts and try to resolve the problem.
K NEW BUSINESS AND REPORTS - CITY COUNCIL MEMBERS
Council consensus to approve Councilman Wise's request to take his item be taken out of order.
Councilman Wise
1. Discussion on interest and penaltiee of City's Business License Tax Ordinance.
Councilman Wise stated he wished to combine his item with Mayor ProTem Dannen's
earlier request to be agendized for July 2 discussion /possible action.
Council consensus to combine both items and agendize for July 2 discussion/possible
action.
A SPECIAL ORDER OF BUSINESS
1. Update and presentation on negotiations with Los Angeles City Department of Airports (DOA),
Federal Aviation Administration (FAA), and City of El Segundo regarding Flight Procedures for
Departures from South Runways.
City Manager Cano presented a report on discussions between Mayor Jacobson, Stu Aplin -
Chairman NAC, Don Harrison, himself, FAA and DOA regarding procedures for South runways
at LAX. It was determined that the Santa Monica VOR 160 degree radial (SMO 160) is a surface
distance of approximately one -half mile over the ocean from the shoreline - or .9 DME - which
meets the concerns of providing a departure procedure based on instrumentation, places aircraft
over the ocean, and enforced by the DOA utilizing ARTS tracking.
Councilman Wise left dias at 8:03 P.M. returned at 8:06 P.M.
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Don Harrison, Assistant to the City Manager, stated the major points agreed upon at this
meeting were 1) we would use the Santa Monica VOR 160 degree radial (SMO 160) as designated
point for aircraft departing from the South runways at LAX at which point they would
commence their 15 degree turn, 2) SID revised for the Southern runway departures and would
be available at the next publication which should be November 14,1991, 3) FAA, DOA, and ATA
have agreed they would assist in educating the pilots and carriers about the new procedures in
advance of their implementation, 4) agreed that the ARTS Data will be used by DOA to identify
violators, 5) FAA will emphasize to all tower controllers the present policy of utilizing the
inboard runways for departures to the maximum extent possible, 6) carriers would be notified
of violations - copies would be sent to City of El Segundo and ATA - when it relates to their
member carriers, 7) El Segundo will educate their community in terms of how this procedure will
work, what is actually "an early turn", and 8) a future meeting will be scheduled to discuss what
actions could be used to reduce early turns by prop planes - as they do not follow SID and
currently follows instructions to turn at the coastline.
Mr. Lean and Robert Beard - presented a slide and oral presentation to Council on the status of
these issues regarding early turns, and decisions made at the recent meeting. Mr. Beard stated
the ARTS Data should be available by October, 1991.
George Carver, ATA - addressed Council presenting an oral report on how their organization will
be participating in this new procedure.
Stu Aplin, Chairman -Noise Abatement Committee - addressed Council stating he was pleased
with the outcome of their meeting, however, today was the date for the letter memorializing the
procedures and terms agreed to - and he had not seen it.
Mr. Lean responded that he had the letter with him and is available for Council's review.
Liz Garnholz addressed Council discussing the Denver's Stapleton Airport Noise Budget and its
operating rules, and airline fines for those who do not follow those rules. Also requested that the
DME be north of El Segundo Boulevard, and she disagreed with the FAA's description of early
turns, and the FAA Report results regarding early turns at 15% - and 85% of planes use inboard
runway for take offs. She recommended monthly reviews and DOA letters on all early turns.
RECESS at 8:55 p.m.
RECONVENED at 9:20 p.m.
ROLL CALL All City Councilmembers present.
2. Public Hearing on the final draft of the Source Reduction and Recycling Element, Household
Hazardous Waste Element, and EA-257 a proposed Negative Declaration of Environmental
Impact,
Mayor Jacobson stated this was a public hearing and asked City Clerk Hart if proper public
noticing was performed; City Clerk Hart responded it had been by the Planning Department.
Mayor Jacobson asked City Clerk Hart if any written correspondence received by the Clerk's
Office; City Clerk Hart responded none had been received.
Kendra Morries, Planning Director, presented a brief report that this was the final draft of the
Source Reduction and Recycling Element and the Household Hazardous Waste Element, and EA-
257 a proposed Negative Declaration of Environmental Impact.
Gail Church, Chairperson for Recycling Committee, addressed Council informing them the
comments, changes, and corrections have been implemented into the document. She requested
Council's authorization to do those non - substantive changes discussed, and those to be
transmitted by Council during this meeting and Friday.
Michael Robbins - addressed Council regarding clean up days versus swap meet idea in this plan.
Mayor Jacobson asked for a motion to close public hearing.
MOVED by Councilman Wise; SECONDED by Mayor ProTem Dannen to close public hearing.
MOTION CARRIED BY UNANIMOUS VOICE VOTE. 4/0
Discussion ensued between Council, Gail Church, Sue Carter and staff regarding the changes and
corrections with the consensus of authorizing staff take out the red- lining and strike outs from
the document, make a change under Household - Paint Exchange to be corrected to "reusable ",
and to ignore the County's request for a facility - send copy of plan with letter to Deane Dana
regarding the County and problems.
MOVED by Councilman Wise; SECONDED by Councilman West to continue public hearing to
4:00 P.M., June 27 in City Hall Council Chamber. MOTION CAR UM BY UNANIMOUS
VOICE VOTE.
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B. UNFINISHED BUSINESS - NONE
C. REPORTS OF COMMITTEES, ES, BOARDS AND COMMISSIONS
1. Vacancies on Metropolitan Cooperative Library System Advisory Board.
MOVED by Councilman Wise; SECONDED by Councilman West to authorize staff to advertise
existing vacancies and recruit applicants for the next term of office from July 1, 1991 - June 30,
1993. MOTION CARRIED BY UNANIMOUS VOICE VOTE. 4/0
2. Oral report by City Council Sub-Committees on matters associated with providing financial
assistance to the El Segundo Unified School District in the form of a loan and interest.
Mayor ProTem Dannen stated on the agenda item heading is incorrect as stating in the form of
a loan with interest and should be corrected, and that it is illegal to give a gift of public funds.
He stated that the School District Board will meet and discuss possibilities of a long term lease
and other options regarding public use of Middle School site for recreational purposes, and that
he will keep Council updated on their decision.
D. CONSENT AGENDA
All items listed are to be adopted by one motion without discussion and passed unanimously. If a call
for discussion of an item is made, the item(s) will be considered individually under the next heading of
business.
1. Warrant Numbers 34066 -84307 on Demand Register Summary Number 24 in total amount of
$89 &396.885.
Recommendation: Approve Warrant Demand Register and Authorize staff to release. Ratify:
Payroll and Employee Benefit checks; checks released early due to contracts or agreements,
emergency disbursements and/or adjustments.
2. City Council meeting minutes of June 4, 1991.
Recommendation: Approval.
3. Resolution providing for limited and temporary authority to expend City fimde pending approval
of the FY 91 -92 City Budget.
ADOPTED RESOLUTION NO. 3697.
4. Request City Council approve lowest bid for landscape maintenance and tree trimming for the
City of El Segundo.
Recommendation: Approve the bid of Landscape West for landscape maintenance and tree
trimming, and reject all other bids.
5. Award bid on lease of 1990 -1991 Groundwater Pumping Rights in West Coast Basin.
Recommendation: Award to the highest bidder, Texaco Refining & Marketing, Inc., the lease of
1990 -1991 water rights.
6. "Musty' water supply conditions.
Recommendation: Receive and file.
7. A resolution approving the application for bicycle and/or pedestrian funds under SB 821.
ADOPTED RESOLUTION NO. 3698.
8. Metro Green Light Rail Transportation Line - coastal extension. Request of South Bay Cities
Association for support for funding and scheduling.
Recommendation: Direct that a letter be prepared for the Mayor's signature to be sent to the
Los Angeles County Transportation Commission (LACTC) on moving up financing/echeduling
of Coastal Line Extension of the Metro Green Line to Torrance area
MOTION by Councilman West; SECONDED by Councilman Wise to enact all consent agenda items.
MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0
CALLED ITEMS FROM CONSENT AGENDA - NONE
E. NEW BUSINESS - CITY MANAGER
1. Oral status report on washing of tennie/basketball courts.
Rollie Wright, Recreation & Parks Director, presented Council with a status report on the
washing of the tennis/basketball courts. He informed them that staff last washed the courts in
December, 1990 and have been sweeping them instead, and that many complaints have been
received regarding the film build -up on the courts. Therefore, staff will now be washing the
courts every two weeks.
El
2. Discussion and options dealing with compliance to new Federal Mandate: Social Security or
alternate retirement program coverage for employees with no retirement coverage, such as part-
time, seasonal. temporary. and elected officials.
City Manager Cano presented Council with options which dealt with compliance to a new Federal
Mandate. Those options were 1) enroll all uncovered employees into Social Security System as
of July 2nd, 2) establish a defined contribution plan, and 3) establish /provide a retirement plan.
Staff recommends approval of option number 1 for all employees not currently covered by PERS
Retirement Plan.
Mayor ProTem Dannen stated the voter can only create or change what they get paid and
Council can only change this periodically by an index, etc. He stated concerns whether a
retirement coverage is an income - and if so, do they adjust the salaries for that. He asked that
City Attorney Dolley review and advise Council.
City Manager Cano stated for right now, and for calculation purposes, it does not qualify as
compensation - which would put Council in excess of what they are allowed to accrue.
MOVED by Councilman Wise; SECONDED by Councilman West to approve and authorize
appropriate adjustments in Council's salaries should City Attorney find this as an income.
MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0
3. City Public Library Expansion and Remodeling Project - Contract Change Order No. 3 in the
amount of $16,020.17.
City Manager Cano stated at the June 4 Council meeting this item was returned to staff for
further details and clarifications to the change order items, and then presented a brief report.
Ken Putnam, Public Works Director presented Council with a report on the individual items on
change order number 3.
Councilman Wise stated concerns with ceramic tile - custom flooring, high contractor profits, the
$4,000 expense for new conduits, 4) door holder circuits, 5) emergency lighting fixture for all six
bathrooms - stating this should have been a State requirement, 6) what happened to the State
grant the City was supposed to have received, 7) additional steel work, 8) drinking fountains, 9)
roof drains, and 10) chiller unit. He wanted to know why the architect didn't catch items
numbers 7, 8, 9 and 10.
MOVED by Mayor ProTem Dannen; SECONDED by Councilman Wise to return item to staff
for review with the design architect on those issues of concern brought up during the meeting,
and then bring back to Council. MOTION CARRIED BY UNANIMOUS VOICE VOTE. 4/0
Mayor ProTem Dannen asked staff to agendize discussion /possible action on the July 2 agenda a
Volunteer Incentive Program for the Library Project.
City Manager Cano recommended a Council Sub - Committee be arranged to work with staff on
those field issues /problems.
Councilman Wise stated there is a need to go through the correct process and not abuse funds,
and that staff needs to work closer with the contractor, engineer and designer architect in order
to avoid future problems; Mayor ProTem Dannen concurred.
4. Report on West Basin Municipal Water District ( WBMWD) Water Reclamation Plant.
Constriction Financing - Proposed Standby Charge.
Interest In Using Project Water.
Ken Putnam, Public Works Director presented a report to Council on the West Basin Municipal
Water District ( WBMWD) Water Reclamation Project.
Representative from WBMWD stated there is a $10.00 per parcel /per year charge which is
roughly 80 cents per month.
Councilman Wise questioned if the standby charge in 1995 will stop; WBMWD representative
responded it may not - depends on water drought situation.
Mayor ProTem Dannen stated interest in meeting to discuss possibilities of partnership between
City and WBMWD regarding this subject.
MOVED by Councilman West; SECONDED by Councilman Wise to authorize staff to continue
discussions with WBMWD on the use of an in -lieu payment plan for proposed standby charge,
to send a letter to WBMWD as an indication of interest in the purchase, distribution and use of
project water, and to receive and file report. MOTION CARRIED BY UNANIMOUS VOICE
VOTE. 4/0
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5. Approval of Amendment No. 1 to Agreement Affecting Real Property (HARP) between City of
El Segundo and Chevron USA, Inc a California Corporation, and report on status of title change
to -Fire Station Site' parcel.
City Manager Cano presented Council with a report on Amendment No. 1 to AARP, and a status
report on the title change to Fire Station Site parcel stating that it should take place very soon.
Mayor ProTem Dannen challenged staff to have the title change by April, 1992.
MOVED by Councilman West; SECONDED by Councilman Wise to approve terms of proposed
changes to be known as Amendment No. 1 to existing Agreement and Exhibit D, and directed
City Attorney prepare an Agreement Amendment No. 1. MOTION PASSED BY UNANIMOUS
VOICE VOTE. 410
6. Policy for issuing permits to individuals or businesses for painting house numbers on street
c uibs.
City Manager Cano presented a report to Council on a policy for issuing permits to those
individuals or businesses for painting house numbers on street curbs.
Mayor Jacobson questions Number 5 - "The permittee shall make a written request to the City
for the refund certifying that all work is completed and that all payments from residents have
been received ".
Mr. Putnam responded that the City will keep the $500.00 until the work is certified and all
monies received.
Mayor Jacobson asked that staff reword this item.
Mayor ProTem Dannen stated concerns with Number 3 wording of "city based non -profit
organization ".
Council consensus for City Attorney to review and staff to return to Council for consideration.
7. FAA Part 150 Grant Application.
City Manager Cano informed Council of an important issue which came up after the posting of
the agenda, and asked Council for authorization to discuss and have possible action on this, this
evening.
MOVED by Councilman West; SECONDED by Councilman Wise to add item to agenda for
discussion /possible action. MOTION PASSED BY UNANIMOUS VOICE VOTE. 4/0
Don Harrison informed Council the DOA was requesting the City to respond to some policy
matters with regards to the FAA Part 150 Grant Application.
Mayor ProTem Dannen stated opposition to giving up aviation easements with El Segundo.
MOVED by Mayor ProTem Dannen; SECONDED by Councilman Wise to deny, staff to write
a letter to the DOA responding that El Segundo would like funds regarding the FAA Part 150
Grant - with regards to the City's purchased home. MOTION PASSED BY UNANIMOUS
VOICE VOTE. 4/0
Councilman West asked if this would escalate due to it only being one home; Mr. Harrison
responded that it would.
Councilman Wise stated if this was true, then he too was opposed to giving up avigation
easements within El Segundo.
MOVED by Mayor ProTem Dannen; SECONDED by Councilman Wise to put on the record to
amend motion to include the City is interested in obtaining funds without any aviation
easements. MOTION PASSED BY UNANIMOUS VOICE VOTE. 410
F. NEW BUSINESS - CITY ATTORNEY - NONE
G. NEW BUSINESS - CITY CLERK - NONE
R NEW BUSINESS AND REPORTS - CITY COUNCEL E "ERS
Councilman West - NONE
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Councilman Wise
1. Discussion on interest and penalties of City's Business Licence Tax Ordi
Taken out of order earlier.
2. Egggggted status on the litter issue at Imperial and Main.
City Manager Cano responded that he had not had an opportunity to look into the situation yet,
but would report back on July 2.
Mayor ProTem Dannen
1. Agendize for July 2 an update report on the Urho Saari Swim Stadium - Electrical Conduit
located outside of building.
2. Requested copy of City's current trash contract and all attachments relating to it.
Mayor Jacobson - NONE
PUBLIC COMMUNICATIONS
Liz Garnholz addressed Council stating concerns regarding no lights or hot water in the shower rooms
at the Urho Saari Swim Stadium as of yet.
MEMORIAL - NONE
CLOSED SESSION
Council moved into closed session at 10:37 P.M. pursuant to applicable law, including the Brown Act
(Government Code Section 54950, et M) as announced by the City Attorney, for the purposes of
conferring with the City Attorney on potential and /or existing litigation and /or discussing personnel
matters as follows:
GC 54956.9(a) (City a party to pending litigation)
City of El Segundo vs Wildan Associates
Public Storage vs City of El Segundo
Air New Zealand Appeal
GC 54956.9(b) (City might have significant exposure to litigation)
Two Matters
GC 54956.9(c) Meet and Confer
Two Matters
ADJOURNED at 10:37 P.M. to June 20, 1991.
Ronald L. Hart, CMC /AAE
City Clerk