1993 DEC 21 CC MIN-7MINUTES OF THE
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
December 21,1993 - 7:00 P.M.
CALL TO ORDER Mayor Jacobson at 7:00 P.M.
INVOCATION - Rabbi Leon Kahane, Temple Rodeph Shalom
PLEDGE OF ALLEGIANCE - Councilman Switz
PRESENTATIONS - NONE
ROLL CALL
Mayor Jacobson - Present
Mayor ProTem Wise - Present
Councilman West - Present
Councilman Switz - Present
Councilman Robbins - Present
PUBLIC COMMUNICATIONS - (Related to City Business Only - 3 minute limit per person, 30
minute limit total.)
Three (3) individuals addressed Council
1. Rich Reed, Resident; spoke regarding policy in the El Segundo Police
Department.
2. Willard Krick, 1414 E. Mariposa; spoke regarding unsafe conditions at
California and Mariposa Street, and suggested a stop sign warning sign is needed.
3. John Savage, DoubleTree Hotel; commented on the article in the LA Times,
and suggested El Segundo advertize in business and trade magazines.
MOVED by Councilman Robbins SECONDED by Councilman Switz to read all ordinances
and resolutions on this agenda by title only. MOTION PASSED BY UNANIMOUS VOICE
VOTE. 5/0
A. SPECIAL ORDERS OF BUSINESS -NONE
B. UNFINISHED BUSINESS
Continued public hearing on a proposed Negative Declaration of Environmental
Impact for a Transient Occupancy Tax Credit Agreement for El Segundo
Summerfield Associates, L.P., for an all- suites hotel at 810 -820 Douglas Street.
Mayor Jacobson stated this is the time and place hereto fixed for a continued public hearing on a
proposed Negative Declaration of Environmental Impact for a Transient Occupancy Tax Credit
Agreement for El Segundo Summerfield Associates, L.P., for an all- suites hotel at 810 -820 Douglas
Street. He asked if proper notice was posted, mailed, and done in a timely manner, and if any
written communications had been received regarding this matter.
Clerk Mortesen stated that public hearing notice was done by the Planning and Building Safety
Department, and no written communications had been received.
City Manager Jim Morrison gave a brief staff report.
Discussion on items B -1 & 2 combined followed.
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12 -21 -93
Councilman Switz, presented a solution to allow the existing hotels a credit.
Councilman Robbins stated he did not agree with Councilman Switz that his solution would
create a level playing field, and questioned the basis determined that spending money on
marketing would make it a level playing field.
Discussion ensued with Council and Hotel representatives on how much is spent locally on
advertizing.
PUBLIC HEARING:
1. Scot Dannen, 1127 E. Acacia; spoke regardmg hotels historically in El
Segundo, and different marketing advantages.
2. Liam Weston, 328 Virginia; stated the merits of the issue have changed,
business retention should not be sacrificed for business attraction.
3. Daniel Nakasoni, Crown Sterling Suites; spoke regarding the meetings
with the City and urged Council to vote no.
Councilman Robbins stated for the public record: He personally does not approve of or tolerate
threats of intimidation and harassment as has been displayed in these Council Chambers just a
few moments ago.
Mayor ProTem Wise commented on the press release put out by Sterling Suites.
Councilman Robbins stated for the public record: He thinks it's great that business and the
residents are working together to protect our community and he thinks that's something that
needs to be encouraged even more and he certainly would not make threats to existing businesses
exercising their first amendment rights.
Mayor ProTem Wise stated that the residents that are "working with the hotels" are the same ones
that previously fought the Embassy Suites coming into town.
4. John Chaffetz, 1985 E. Grand Ave.; questioned the success of the proposed
marketing plan and the wisdom of building hotels in a declining economy.
5. Jane Friedkin, resident; spoke regarding Council actions and fiscal
responsibility.
6. Willard Krick, 1414 E. Mariposa; supports existing hotels, and urges a no
vote on the agreement with Summerfield Suites.
7. Ted Dickton, resident; agree's with Mr. Chaffetz statements, and
questioned who would be doing the marketing.
8. Nicky Wislocky, 1205 E. Pine; requested the policy for Retention and
attraction program and what the City is willing to do to attract and retain business.
9. Mark Epstein, Attorney for Crown Sterling Suites; argued against the
proposed TOT credits to Summerfield Suites.
10. Walt Baines, 236 Hillcreast; opposes the proposed TOT credits and possible
advertizing fund. Suggested there could be up front costs that the City could
extend to Summerfiled, ie; permits etc.
11. Willard Krick, 1414 E. Mariposa; stated he felt mail order business would
be best for El Segundo, because they have high revenue and create no traffic.
12. Frank Godoy, Hacienda Hotel; agreed with Mr. Chaffetz statements and
does not agree with the marketing idea.
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13. Rob Moseberg, Summerfield Suites; explained their reasoning and
mechanism for requesting the TOT credit. He proposed lowering the requested
credit to show a sign of good faith, and encouraged other hotels to accept one of
the Cities solutions. He also stated that Summerfield Suites is willing to commit to
devoting energy and people to create a marketing fund. He also urged Council to
make a decision tonight.
14. John Chaffetz; responded to Mr. Moseberg's comments.
15. John Savage, DoubleTree Hotel; reiterated what has been said, and
confirmed the letter of the 20th as a level playing field. He also stated there are still
many things to be considered.
16. J. Wilson, resident; commented on why the City is not helping other
businesses in town and ask them what they think the City can do to increase their
business.
MOVED by Councilman Switz SECONDED by Mayor ProTem Wise to close the Public Hearing
MOTION PASSED BY UNANIMOUS VOICE VOTE 5/0
RECESS 9:45 P.M.
RECONVENE 10:00 P.M.
ALL MEMBERS PRESENT
Councilman West stated it is time to move ahead with the plan and proceed to resolve the
problem.
Mayor ProTem Wise stated there is a need for a level playing filed and if the City invest 2.4
million over 5 years and recoup it in 3 years, he would like to amend the agreement to include the
Hacienda/ DoubleTree suggestions and Councilman Swtiz suggestions.
Councilman Robbins stated he would prefer to hear from the remaining hotels if this is an
acceptable to them. He stated the issue is business retention and a level playing field is important.
He also stated he is concerned with the approach and guidelines need to be set in how the City
deals with attraction.
Councilman Switz stated if the City can not cope with the attraction plan it will not succeed. He
stated he felt the pie can be enlarged and effective advertising will increase the occupancy rate.
Mark Epstein, Crown Sterling Suites responded they do not have a position on the
Hacienda/ DoubleTree proposal.
Robert Jackson LAX Hotel, stated they have not formulated an opinion on the
Hacienda/ DoubleTree proposal.
Councilman Robbins stated for the Public Record: I am going to, I will not vote yes on this tax
credit until the details are worked out to verify that it is indeed possible to level the playing field
for the existing hotels, so I can not support it until there is some kind of a guarantee otherwise I
feel that we are gambling with the existing hotels business and money.
Mayor Jacobson stated he is concerned with the financial impact on the City, 6 years is a long time
to wait for a return when the next 6 years have been projected as still being a depressed economy.
He would also like the minimum room rate to be looked at.
City Attorney Lee Dolley read the following:
RESOLUTION NO. 3850
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO,
CALIFORNIA ADOPTING AND CERTIFYING A NEGATIVE
DECLARATION OF ENVIRONMENTAL IMPACT FOR ENVIRONMENTAL
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ASSESSMENT EA -326 FOR A TRANSIENT OCCUPANCE TAX CREDIT
AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND EL SEGUNDO
SUMMERFIELD ASSOCIATES, L.P., CONCERNING PROPERTY LOCATED
AT 810 -820 DOUGLAS STREET
MOVED by Mayor ProTem Wise SECONDED by Councilman West to approve Resolution No.
3850, approving a negative Declaration of Environmental Impacts for the TOT Credit Agreement.
Councilman Robbins asked if the CDC agreement will be altered to hold the proposed office
building construction until after the 6 year period.
Hyrum Fedje, Director of Planning & Building Safety responded to Councilman Robbins
questions.
City Attorney Lee Dolley stated that the Ordinance will not effect the development agreement.
Any action that is taken this evening would not adopt any agreement. This is an enabling
Ordinance only.
Councilman Swtiz called the question.
MOTION PASSED BY THE FOLLOWING VOICE VOTE. AYES; MAYOR JACOBSON,
MAYOR PROTEM WISE, COUNCILMAN WEST, AND COUNCILMAN SWITZ. NOES;
COUNCILMAN ROBBINS 4/1
2. Consideration of an ordinance providing for credits on transient occupancy
tax, a tax credit agreement with Summerfield Suites, and the establishment
of a fund for the marketing of El Segundo hotels.
City Attorney Lee Dolley read the following:
ORDINANCE NO. 1215
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO,
CALIFORNIA AMENDING CHAPTER 3.12 OF THE EL SEGUNDO
MUNICIPAL CODE TO ADD A NEW SECTION 3.12.160 AUTHORIZING
TAX CREDIT AGREEMENTS.
Councilman Switz INTRODUCED ORDINANCE NO. 1215
Councilman Robbins requested to hear from the Hotels.
John Savage, DoubleTree; stated that the figures presented in the Hacienda/ DoubleTree proposal
are not a guarantee.
Mayor Jacobson stated he is worried about losing existing revenue, and the amount of funds
being expended for attraction on one business.
Council directed City Manager Jim Morrison to prepare an agreement consistent with the
discussion for Summerfield Suites using the new figures incorporate the Hacienda/ DoubleTree
and Councilman Switz's suggestions, or a combination of both, for use in crediting existing hotels;
and present an ordinance to enable a credit to be allowed to existing hotel.
3. An ordinance of the City of El Segundo, California amending Ordinance No. 1168
by suspending the automatic increase in each tax required by Section 5.08.018,
Chapter 5.08, of Title 5 of the El Segundo Municipal Code for a period of one year.
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City Attorney Lee Dolley read the following:
ORDINANCE NO. 1214
AN ORDINANCE OF THE CITY OF EL SEGUNDO, CALIFORNIA
AMENDING ORDINANCE NO. 1168 BY SUSPENDING THE AUTOMATIC
INCREASE IN EACH TAX REQUIRED BY SECTION 5.08.018, CHAPTER 5.08,
OF TITLE 5 OF THE EL SEGUNDO MUNICIPAL CODE FOR A PERIOD OF
ONE YEAR.
MOVED by Mayor ProTem Wise SECONDED by Councilman Switz to adopt Ordinance No.
1215, suspending the automatic increase in each tax required by Section 5.08.018, Chapter 5.08. if
Tittle 5 of the El Segundo Municipal Code for a period of one year. MOTION PASSED BY THE
FOLLOWING VOICE VOTE. AYES; MAYOR PROTEM WISE, COUNCILMAN WEST, AND
COUNCILMAN SWTTZ. NOES; MAYOR JACOBSON, AND COUNCILMAN ROBBINS 3/2
C. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS - NONE
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 001 -708 on Demand Register Summary Number in total amount
of $958,416.24.
2. City Council meeting minutes of December 7,1993.
3. Request to accept donation of $4,417.69 from the Marcellus L. Joslyn
Foundation and appropriate the funds into the budget.
4. Replacement of 14 SWAT Tactical Entry Body Armor Vests which have exceeded
their manufacturer's warranty.
5. Demolition of portions of former 1.75 MG Reservoir, grading, landscaping and
related improvements. Specifications No. PW 93 -12.
6. Structural rehabilitation of the elevated 200,000 gallon water tank. Specifications
No. PW 92 -14 A. Estimated cost $145,000.
7. Approve the purchase of one in -car video tape incident capture system on a sole -
source basis using Asset Forfeiture funds not to exceed $6,500.
MOVED by Councilman Switz SECONDED by Councilman Robbins to approve all consent
agenda items. MOTION PASSED BY UNANIMOUS VOICE VOTE 5/0
CALL ITEMS FROM CONSENT AGENDA - NONE
E. NEW BUSINESS - CITY MANAGER
City Manager Jim Morrison requested Council to think about a possible date for Council to brief
potential candidates for Council.
F. NEW BUSINESS - CITY ATTORNEY - NONE
G. NEW BUSINESS - CITY CLERK - NONE
H. NEW BUSINESS AND REPORTS - CITY COUNCILMEMBERS
Councilman West - NONE
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Councilman Robbins - NONE
Councilman Switz - NONE
Mayor Pro Wise -
Mayor ProTem Wise commented on the wonderful parade, and extended Season Greetings to all.
Mayor Jacobson -
Mayor Jacobson extended Season Greetings to all
PUBLIC COMMUNICATIONS - (City Business Only - 5 minute limit)
Two (2) individuals addressed Council
MEMORIALS- NONE
CLOSED SESSION - NONE
ADJOURNMENT at 11:10 P.M. to January 4,1994 at 5:00 P.M.
C' y Mortese , C e -a-
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