MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Tuesday, February 25, 1997, at the hour of 7:15 P.M.

PLEDGE OF ALLEGIANCE - John Hales

ROLL CALL:

Present: Benz, Bowler, Edgerton, Oakes, Mayor Reviczky

Absent: None

MAYOR'S COMMENTS/ANNOUNCEMENTS:

Mayor Reviczky announced that Opening Day ceremonies for the Hermosa Beach Little League will take place Saturday, March 1, 1997 at Clark Stadium, beginning at 10:00 A.M. He also announced that a pancake breakfast fundraiser benefiting the Hermosa Beach Little League will take place Sunday, March 9, 1997 from 8:00 A.M. to noon at the Kiwanis Club, noting that tickets are available at $4 for adults and $2 for children.

City Manager Burrell requested changing the agenda by moving Consent Calendar Item 1(i) to Municipal Matters due to all of the additional information distributed this evening.

Action: Mayor Reviczky, with the consensus of the City Council, so ordered the requested agenda change.

PUBLIC PARTICIPATION:

(a) ORAL COMMUNICATIONS

Coming forward to address the Council at this time were:

Shirley Cassell - Hermosa Beach, requested that Item 1(b) be removed from the Consent Calendar;

John Burt - Hermosa Beach, requested that Item 1(g) be removed from the Consent Calendar; and

Rick Hankus - 157 Pier Avenue, submitted directly to Councilmembers copies of four letters which he said the Chamber of Commerce had received from citizens in support of the downtown parking structure; said the parking structure is needed to attract retail in the downtown, to protect resident parking spots from beach-goers and others, and to provide parking for people going to the beach, movies and restaurants who would gladly pay to park in a convenient location.

(b) COUNCIL COMMENTS - None

(c) WRITTEN COMMUNICATION

1. Letter from Howard Longacre dated February 19, 1997 regarding use/vacation of 10 feet of north side of 13th Street between Hermosa Avenue and Beach Drive on which to construct parking structure .

Coming forward to address the Council on this item was:

Howard Longacre - Hermosa Beach, spoke to his letter and requested information pertaining to the 13th Street right-of-way.

Action: To direct staff to respond.

Motion Bowler, second Oakes. The motion carried by a unanimous vote.

1. CONSENT CALENDAR

Action: To approve the consent calendar recommendations (a) through (k), with the exception of the following items which were removed for discussion in item 3, but are shown in order for clarity: (b) Oakes [at the request of Shirley Cassell], (d) Benz, (e) Bowler, and (g) Edgerton [at the request of John Burt].

Motion Edgerton, second Oakes. The motion carried by a unanimous vote.

No one came forward to address the Council on items not removed from the consent calendar.

(a) RECOMMENDATION TO APPROVE THE FOLLOWING MINUTES:

1) Minutes of the Regular Meeting held on February 11, 1997.

Action: To approve the minutes of the Regular Meeting of February 11, 1997 as presented.

(b) RECOMMENDATION TO RATIFY THE CHECK REGISTER NOS. 9435 THROUGH 9533, NOTING VOID CHECK NO. 9477.

This item was removed from the consent calendar by Councilmember Oakes at the request of Shirley Cassell for discussion later in the meeting.

Coming forward to address the Council on this item was:

Shirley Cassell - Hermosa Beach, cited two checks, No. 9453 dated February 12, 1997 and No. 9532 dated February 13, 1997, each made out for $16,786.08 to Colen & Lee, and asked if there had been an error since both checks are for exactly the same amount, dated one day apart.

City Manager Burrell responded to Council questions.

Action: Mayor Reviczky, with the consensus of the Council, directed that action on this item be postponed to later in the meeting pending clarification from staff pertaining to the two checks in question.

(At 10:40 P.M., the City Council resumed its consideration of this item.)

City Manager Burrell reported that one of the checks was issued in error, has been canceled, and will appear as a canceled check on the next check register.

Final Action: To ratify the check register as presented.

Motion Oakes, second Edgerton. The motion carried by a unanimous vote.

(At 10:41 P.M., the order of the agenda was returned to Citizen Comments.)

(c) RECOMMENDATION TO RECEIVE AND FILE THE TENTATIVE FUTURE AGENDA ITEMS.

Action: To receive and file the tentative future agenda items as presented.

(d) RECOMMENDATION TO RECEIVE AND FILE THE JANUARY, 1997 FINANCIAL REPORTS:

(1) Revenue and expenditure report;

(2) City Treasurer's report; and,

(3) Investment report.

This item was removed from the consent calendar by Councilmember Benz for discussion later in the meeting due to questions pertaining to the Fire Department overtime and Crossing Guard accounts.

City Manager Burrell responded to Council questions.

Action: To receive and file the January, 1997 Financial Reports as presented.

Motion Benz, second Mayor Reviczky. The motion carried by a unanimous vote.

(e) Recommendation to waive formal bid process per HBMC 3.12.140 and approve purchase of a new digital recording system for the police and fire communications center from the Dictaphone Corporation. Memorandum from Police Chief Val Straser dated February 12, 1997.

This item was removed from the consent calendar by Councilmember Bowler for discussion later in the meeting due to questions about the bid process.

Police Chief Straser responded to Council questions, noting the bidding process for this was done by the State.

Councilmember Benz questioned the accuracy of the equipment price if the date of the original bid was in 1994, noting that the state-of-the-art has changed significantly since then and the pricing may actually be lower now.

Action: To continue this item to the next meeting with direction to staff to report back with information on the bid date and the accuracy of the equipment pricing.

Motion Bowler, second Benz. The motion carried by a unanimous vote.

(f) Recommendation to award bid to SJM Communications for the purchase of portable radios for the Police Department. Memorandum from Police Chief Val Straser dated February 12, 1997.

Action: To approve the staff recommendation to award a bid in the amount of $7,394.56 to SJM Communications of El Segundo, California, for the purchase of nine portable radios for the Police Department.

(g) Recommendation to approve amendment to City Manager's employment agreement effective January 1, 1997 to December 31, 1997 . Memorandum from Mayor Reviczky and Councilmember Oakes dated January 30, 1997.

This item was removed from the consent calendar by Councilmember Edgerton at the request of John Burt for discussion later in the meeting.

Coming forward to address the Council on this item was:

John Burt - 1152 Seventh Street, commented on the proposed salary amendment to the City Manager's employment agreement; expressed support.

Action: To approve an amendment to the City Manager's employment agreement effective January 1, 1997, through December 31, 1997, which will increase the amount of compensation to $106,000.00 annually.

Motion Edgerton, second Bowler. The motion carried by a unanimous vote.

(h) Recommendation to set workshop dates of Thursday, May 29 and Thursday, June 12, 1997 at 7:10 P.M. for review of the 1997-98 budget. Memorandum from Finance Director Viki Copeland dated February 19, 1997.

Action: To approve the dates of Thursday, May 29 and Thursday, June 12, 1997 at 7:10 P.M. for review of the 1997-1998 budget.

(i) Recommendation to award signal modification contract to TDS Engineering in the amount of $75,000 for left turn signal at Aviation Boulevard and Prospect Avenue.

Pursuant to action taken at the beginning of the meeting under Mayor's Comments/Announcements, this item was removed as a consent calendar item and placed instead under Municipal Matters, and is shown as item 6, with the subsequent agenda items renumbered accordingly.

(j) Recommendation to adopt resolution urging local post office branches to fly the nationally recognized POW/MIA flag. Memorandum from City Manager Stephen Burrell dated February 20, 1997.

Action: To adopt Resolution No. 5845 , entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, URGING LOCAL POST OFFICE BRANCHES TO FLY THE NATIONALLY RECOGNIZED POW/MIA FLAG."

(k) Recommendation to receive and file action minutes from the Planning Commission meeting of 2/18/97.

Action: To approve the staff recommendation to receive and file the action minutes from the Planning Commission meeting of February 18, 1997.

3. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION

Items 1(b), (d), (e), and (g) were heard at this time but are shown in order for clarity.

Public comments on items removed from the consent calendar are shown under the appropriate item.

PUBLIC HEARINGS:

4. APPEAL OF THE PLANNING COMMISSION DECISION TO DENY A VARIANCE TO ALLOW A REMODEL AND ADDITION TO A SINGLE-FAMILY DWELLING RESULTING IN 13' GARAGE SETBACK RATHER THAN THE REQUIRED 17' AT 544 GRAVELY COURT . Memorandum from Community Development Director Sol Blumenfeld dated February 18, 1997, with Resolution for adoption.

Community Development Director Blumenfeld presented the staff report and responded to Council questions. City Attorney Mike Jenkins responded to Council questions.

The public hearing opened at 7:50 P.M. Coming forward to address the Council on this item were:

Jack Wood - project engineer, said the owners want to provide their guest parking inside their garage rather than in front of their building, and extending the garage deeper into the slope to accommodate a four-car garage and conform to the required 17-foot front setback would cost an additional $25,000; said the four required variance findings can be met because the 60-foot lot is extraordinary due to its uphill grade and its small size, being among only 20 lots of that size, less than 1 percent of all lots in the city; said the ordinance makes no sense on Gravely Court since the six lots are merely 10 feet larger than what are considered by the City to be half-lots; said a 17-foot setback is 28 percent of the lot and applying the ordinance to that size lot deprives the owners of a substantial property right enjoyed by others; said this is a short, narrow, dead-end street, and there would be no detriment to the public welfare, and no conflict with the General Plan since there is no change in use;

Langley DeFries - property owner/appellant, said putting the guest parking inside their enclosed garage would be better for security and safety reasons; expressed concern that a 17-foot driveway would simply become a handy turn-around for use by all the traffic that has turned onto the dead-end street in error;

Claudia DeFries - property owner/appellant, urged Council to grant the requested variance; and

Shirley Cassell - Hermosa Beach, spoke in support of the request and urged the Council to grant it.

The public hearing closed at 8:21 P.M.

Action: To deny the appeal, sustain the decision of the Planning Commission and adopt Resolution No. 5846, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, TO SUSTAIN THE PLANNING COMMISSION DECISION TO DENY A REQUEST FOR A VARIANCE FROM THE PARKING SETBACK REQUIREMENTS AT 544 GRAVELY COURT."

Motion Mayor Reviczky, second Bowler.

AYES: Bowler, Edgerton, Oakes, Mayor Reviczky

NOES: Benz

Action: To direct staff to study and bring back for Council review the reasonableness of the 17-foot garage setback requirement, using this project as a case in point, and the tandem parking requirements, including the amount of square footage required whether the parking is enclosed or outdoors.

Motion Benz, second Oakes. The motion failed due to the dissenting votes of Bowler, Edgerton and Mayor Reviczky.

At 8:44 P.M. the meeting recessed.

At 9:06 P.M. the meeting reconvened.

5. APPEAL OF PLANNING COMMISSION DECISION TO DENY A CONDITIONAL USE PERMIT AMENDMENT FOR A RESTAURANT WITH ON-SALE ALCOHOL AND OUTDOOR SEATING: 1) TO ALLOW TWO BAR SERVICE AREAS NOT PREVIOUSLY IDENTIFIED ON PLANS AND, 2) TO ALLOW AMPLIFIED MUSIC ON THE ROOF-TOP SEATING AREA, AT 2, 4 & 8 PIER AVENUE, HENNESSEY'S TAVERN. Memorandum from Community Development Director Sol Blumenfeld dated February 18, 1997 with a Resolution for adoption.

Councilmember Bowler announced that he would not participate in the consideration of this item due to a potential conflict of interest, since Hennessey's is a competitor of his. He then stepped down from the dais.

City Attorney Mike Jenkins responded to Council questions, saying he had not formally ruled that there was an actual financial conflict of interest, but in his opinion, just the appearance of a potential impropriety was sufficient for Councilmember Bowler to consider stepping down.

Community Development Director Blumenfeld presented the staff report and responded to Council questions.

The public hearing opened at 9:22 P.M. Coming forward to address the Council on this item were:

Paul Hennessey - appellant, said there was confusion concerning the two bar service areas, noting that they had been included in the construction documents and the full-detail plans, which were stamped and returned to him, clearly show the bar and bar operations, and he was unaware at the time of the Planning Commission's intention to deny them; said the additional bars were necessary in order to service customers in a rapid manner and it would otherwise take too long for employees to serve customers in the expanded seating areas; pointed out that alcohol may be consumed throughout the entire establishment, including the rooftop area, regardless of where the bars are located; said the business' alcohol license would be changed from a bar license to a restaurant license;

Shirley Cassell - Hermosa Beach, said the applicant should accept the conditional use permit as it was approved by the Planning Commission; spoke in opposition to outdoor amplified music and allowing three bars instead of one;

Traverse Divine - 38-B Eighth Street, spoke in support of the project, which he said is now a family type restaurant; said the bar upstairs has no seats and is simply for service and the smaller bar downstairs seats just a few people;

John Burt - 1152 Seventh Street, spoke in support of the request and urged the Council to approve;

John Hales - Hermosa Beach, spoke in favor of the project, noting it has had no negative effect on the neighborhood;

Parker Herriott - Hermosa Beach, said amplified music can be heard down the street at Noble Park; expressed concerns about rooftop dining, resident notification and changing the serene atmosphere to a rowdy, festival type;

Patricia Spiritus - 1600 Strand resident and downtown business owner, said quick service allows the customers to relax and better enjoy their meal; said the applicant put a lot of money into revitalizing his business and cannot make it work without the two new service bars;

Michael Keagan - 1107 Loma Drive, said he owned two restaurants in Manhattan Beach and that the Planning Commission should not be directing the layout of restaurants, telling restaurateurs where to set up their kitchens or where to place their bars and service areas; said this did not take place in other cities, that their function is to consider the use rather than the interior layout of a business;

Pam Wilson - 1107 Loma Drive, spoke in favor of the project with its improved facility and expanded menu; said the applicant is a responsive business person and should be supported;

Brian Beckman - general manager of Hennessey's, said there was some confusion concerning the amplified rooftop music, that the two speakers on the deck work on a separate system and the intent was to create a background-music atmosphere, not a noisy situation; and

Bridget Evans - Hermosa Beach resident and employee of Hennessey's, spoke in support and urged the Council to support the project.

The public hearing closed at 9:50 P.M.

Action: To approve the staff recommendation to:

1) reverse the decision of the Planning Commission;

2) approve the amendment to Conditional Use Permit (CUP) No. 96-11; and,

3) adopt Resolution No. 5847, entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, REVERSING THE DECISION OF THE PLANNING COMMISSION, ON APPEAL, TO APPROVE A CONDITIONAL USE PERMIT, AS AMENDED, AND A PARKING PLAN TO ACCEPT IN-LIEU PARKING FEES, TO ALLOW EXPANSION OF AN EXISTING BAR AND RESTAURANT WITH ON-SALE ALCOHOL AND LICE ENTERTAINMENT INTO THE ADJACENT BUILDING SPACE TO THE WEST AND TO ADD A ROOF-DECK, AND ADOPTION OF A MITIGATED NEGATIVE DECLARATION AT 4 & 8 PIER AVENUE, LEGALLY DESCRIBED AS THE WESTERLY 75 FEET OF THE NORTHERLY 45 FEET OF LOT 5, BLOCK 12, HERMOSA BEACH TRACT."

Motion Benz, second Edgerton.

AYES: Benz, Edgerton, Oakes, Mayor Reviczky

NOES: None

ABSENT: Bowler

Councilmember Bowler returned to the dais at 10:08 P.M.

MUNICIPAL MATTERS:

6. Recommendation to award signal modification contract to TDS Engineering in the amount of $75,000 for left turn signal at Aviation Blvd. and Prospect Avenue. Memorandum from Public Works Director Amy Amirani dated February 19, 1997. Supplemental letter of support for the signal with additional information received February 24, 1997 from Lily Anderson, 1224 11th Place. Two supplemental letters of support for the signal received February 25, 1997 from Amy Disparte, 2044 Prospect Avenue, and Alma Nixon, 1228 Harper Avenue, Redondo Beach. Supplemental letter from Howard Longacre, 1221 Seventh Place, received February 24, 1997 in opposition to the signal. Supplemental letter from James Lissner, 2715 El Oeste Drive, received February 25, 1997, in opposition to the use of Landscape and Lighting District funds.

Public Works Director Amirani presented the staff report and responded to Council questions. City Attorney Mike Jenkins also responded to Council questions concerning the questioned use of Landscaping and Lighting District funds for the project, saying there was no merit to the arguments against the use of the funds because: 1) it was staff's position that the project is not a capital improvement but rather is a maintenance project, as maintenance is defined in the Landscaping and Lighting Act; 2) the increase in assessments occurred in the 1995-96 fiscal year and mailed notice was not required because an exception exists for citywide assessments proposed to pay operation and maintenance expenses; and 3) this was simply the approval of a contract for a project that was approved by the City Council in 1996, and the time to contest the use of these funds was last year at that time.

Coming forward to address the Council on this item were:

Parker Herriott - Hermosa Beach, noted the school located on Prospect Avenue and asked if a traffic study had been done; said he would expect that a left-turn signal would cause an increase in traffic on Prospect Avenue; agreed there is a safety problem with the intersection but did not know if the signal would solve it;

John Burt - 1152 Seventh Street, expressed his concerns about safety issues with regard to the subject intersection;

Gene Dreher - 1222 Seventh Place resident, east of Prospect Avenue, said the installation of a left-turn signal is a good safety measure but suggested that there be a study of an overall traffic plan for Prospect Avenue instead of continually taking a piece-meal approach;

Ed Chenjigeon - 1215 11th Place, said his house overlooks the intersection and there have been numerous accidents, almost weekly, and many of them serious, involving drivers turning left onto southbound Prospect Avenue; spoke in support of the left-turn signal;

Lily Anderson - 1224 11th Place, spoke in support of the left-turn signal; referred to her supplemental submittal and said there have been too many accidents at that intersection;

Don Olesky - 1249 11th Place, expressed concern about the intersection; said the left-turn signals are important from a safety viewpoint and will avert future accidents;

Howard Longacre - Hermosa Beach, submitted copies of a hand-drawn map showing the area between El Segundo and the Palos Verdes Peninsula, the current commuter routes and the abandoned Flagler Lane route in Redondo Beach; said the left-turn signal will provide easier access for even more commuter traffic which will affect the quality of life of the area residents; said commuters are only incidentally bothered by the numerous stop signs along Prospect Avenue; objected to the funding source being used for the installation of traffic signals; and

Carol Duff - Clark Lane, said she resides within 100 yards of the subject intersection; said the traffic already exists along Prospect Avenue and the left-turn signal will simply make the intersection safer; said she and her immediate neighbors are in support of it.

Action: To approve the staff recommendation to:

1. Award the Signal Modification contract to TDB Engineering of Westlake Village, California, for an amount of $75,000 and authorize the Mayor to sign the contract;

2. Authorize the Director of Public Works to issue addenda as necessary not to exceed a total contract cost of $86,250; and,

3. Direct the City Clerk to reject all other bids and release all bid bonds after award by City Council. Upon completion of work, direct the Director of Public Works to accept the project as complete on behalf of the City Council and release all contact bonds;

and directed staff to study the Prospect Avenue traffic issues and bring the matter back for Council review at a future meeting.

Motion Bowler, second Oakes. The motion carried by a unanimous vote.

7. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER - None

7. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL - None

8. OTHER MATTERS - CITY COUNCIL

a. Request from Mayor Reviczky to discuss prohibiting skateboards at the Veteran's Memorial.

Mayor Reviczky spoke to his request and expressed concern about the damage that skateboarding has caused at the site.

Action: To direct staff to post the Veteran's Memorial area with "No Skateboarding" signs.

Motion Mayor Reviczky, second Bowler. The motion carried by a unanimous vote.

b. Request from Councilmember Benz to discuss the formation of a "LastNight" Association. Supplemental information regarding a "LastNight" organization received February 25, 1997.

Councilmember Benz spoke to his request.

Action: To form a City Council subcommittee comprised of Councilmembers Benz and Edgerton to look into the formation of a "LastNight" organization for a New Year's Eve celebration in the downtown area.

Motion Benz, second Edgerton. The motion carried by a unanimous vote.

(At 10:40 P.M. the Council resumed its consideration of item 1(b) which had been postponed to the end of the meeting to enable staff to provide information prior to Council action.)

CITIZEN COMMENTS

Coming forward to address the Council at this time were:

Parker Herriott - Hermosa Beach, expressed his support for placing the downtown parking structure on the ballot so that people can vote on the issue; and

John Burt - 1152 Seventh Street, objected to the purchase of portable radios for the Police Department.

ANNOUNCEMENT AND COUNCIL VOTE IN OPEN SESSION TO ADD ITEM TO AGENDA FOR DISCUSSION IN CLOSED SESSION AS FOLLOWS:

City Attorney Mike Jenkins announced the need for a closed session pertaining to a matter of litigation (described below) which was served on the City after the posting of the regular agenda, and said adding the item to the agenda would require a four-fifths vote of the City Council.

Action: To add the subject matter of litigation to the agenda for discussion as a Closed Session item based on the finding that the matter came to the attention of the City after the posting of the regular agenda.

Motion Bowler, second Oakes.

AYES: Benz, Bowler, Oakes, Mayor Reviczky

NOES: None

ABSENT: None

ABSTAIN: Edgerton, due to a potential conflict of interest

1. CONFERENCE WITH LEGAL COUNSEL - The City Council finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation.

a. Existing Litigation: Pursuant to Government Code Section 549567.9(a)

Name of Case: Hermosa Beach Walk Street Homeowners, Steve Yeager, George Lanz, Charles Danforth and Savitri Carlson v. City of Hermosa Beach

Case Number: YC028756

Councilmember Edgerton announced that he would not attend the Closed Session and will not participate in the item due to a potential conflict of interest.

ADJOURNMENT - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, February 25, 1997 at the hour of 10:48 P.M. to a Closed Session.

CLOSED SESSION - The Closed Session convened at the hour of 10:50 P.M., noting the absence of Edgerton and the presence of all other members. At the hour of 11:05 P.M. the Closed Session adjourned to the Regular Meeting.

ORAL ANNOUNCEMENTS - There were no decisions made requiring a public announcement.

ADJOURNMENT - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, February 25, 1997, at the hour of 11:06 P.M. to the Regular Meeting of Tuesday, March 11, 1997, at the hour of 7:10 P.M.

___________________________

City Clerk