MINUTES OF A REGULAR MEETING OF THE CYPRESS CITY COUNCIL HELD FEBRUARY 13, 2012

A regular meeting of the Cypress City Council was called to order at 4:02 p.m. by Mayor Bailey in the Executive Board Room, 5275 Orange Avenue, Cypress, California.

Members present:
Mayor Chair Doug Bailey
Mayor Pro Tem Prakash Narain
Council Member Phil Luebben
Council Member Leroy Mills
Council Member Todd Seymore

Staff present:
City Manager John Bahorski
City Attorney William Wynder
Assistant City Attorney Lindsay Tabaian
Assistant City Manager/Director of Finance and Administrative Services Richard Storey
Director of Community Development Ted Commerdinger
Police Chief Jackie Gomez-Whiteley
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Finance Manager/Assistant Director of Finance and Administrative Services Matt Burton
Recreation Superintendent Dena Diggins
Redevelopment Project Manager Steve Clarke
Administrative Services Manager Andrew Tse
City Clerk Denise Basham

ORAL COMMUNICATIONS:

None.

WORKSHOP SESSION:

The City Manager introduced Andrew Chang and stated that the workshop was regarding Measure D and the proposed ballot initiative. 

Andrew Chang, Andrew Chang & Company, LLC, reviewed the fiscal and economic impact report which includes data gathering, fiscal analysis, and economic analysis.  He indicated that the four development scenarios assessed were continuing life, retail, mixed commercial, and industrial. 

Mr. Chang stated that the continuing life scenario includes 350 senior living units, 50,000 square feet of medical/healthcare facilities, and 111,000 square feet of medical and professional office space.  He indicated that the retail scenario would include 250,000 square feet of retail space and that the mixed commercial scenario would blend light industrial and commercial space. 

Mr. Chang reviewed the analogous developments for continuing life, retail, mixed commercial, and industrial, informing that retail comparisons included the Costco, Target, and Office Depot complexes.  Mr. Chang stated that the retail scenario would offer the greatest increase in City revenues in year five due to the retail tax. 

Mr. Chang stated that Police Department personnel were interviewed in order to determine the potential cost increase for the continuing life scenario.  He indicated that there was a minimal increase to the amount of police calls for the cities of Carlsbad, Thousand Oaks, and Seal Beach for a six-month period. 

Mr. Chang indicated that the potential long-term police cost increase for the retail, mixed commercial, and industrial scenarios would be between $0 - $35,300.  He stated that the average police cost per acre would be approximately $1,389. 

Mayor Pro Tem Narain asked about potential use of the fire department.

The City Manager responded that through the environmental document, the Orange County Fire Authority would have certain requirements based on services received. 

Mr. Chang stated that the retail scenario would generate the greatest revenue for the City based on a significant increase in sales tax.  He stated that the continuing life scenario revenue is driven by indirect sales tax and property tax. 

Council Member Seymore asked if the continuing life personnel was taken into consideration when calculating the potential police costs. 

Mr. Chang replied that only the residential population increase was taken into account. 

Mr. Chang reviewed the retail scenario revenue by increased sales tax income from development and direct sales at existing businesses. 

Council Member Luebben asked how the volume of sales figures were determined. 

Mr. Chang replied that direct sales tax is calculated at 1% and indirect sales tax is calculated on earnings based on approximately $785 million in total sales.

Mr. Chang reviewed the projected number of jobs for each of the four scenarios with retail projected to produce the most long-term jobs.  He stated that the industrial scenario earnings were projected to be $23.7 million. 

Mr. Chang informed that there would be a temporary economic stimulus as a result of the construction related spending and that the continuing life scenario would offer the largest annual expenditures for construction over a four-year development period. 

Council Member Luebben stated that his priority is the long-term revenue versus cost to the City and asked if traffic flow would be part of the analysis. 

The City Manager responded that a traffic flow analysis would be done at a later time as part of the Environmental Impact Report.  He indicated that the industrial scenario is based on traditional and not point-of-sale. 

It was moved by Mayor Bailey and seconded by Council Member Luebben, to receive and the report.

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Luebben, Mills, Seymore, Narain and Bailey
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

CLOSED SESSION:

The City Attorney reported that the City Council would be meeting in Closed Session regarding Conference with Legal Counsel – Existing Litigation, pursuant to Government Code Section 54956.9(a), City of Cerritos, et al. v. State of California, et al., Case Number 34-2011-80000952, State of California Superior Court. 

The City Attorney reported that the City Council would be meeting in Closed Session regarding Conference with Legal Counsel – Existing Litigation, pursuant to Government Code Section 54956.9(a), Cypress School District v. City of Cypress, Case Number 30-2011-00522871, Orange County Superior Court. 

The City Attorney reported that the City Council would be meeting in Closed Session regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8), Real Property Identified by APN Number 242-332-01, Located at 4545 Myra Avenue, Negotiating Party: City Manager and Director of Community Development, Under Negotiation: Price and Terms of Payment. 

The City Attorney reported that the City Council would be meeting in Closed Session regarding Public Employee Performance Evaluation, pursuant to Government Code Section 54957(b)(1), Title:  City Manager. 

The City Attorney reported that the City Council would be meeting in Closed Session regarding Conference with Legal Counsel – Anticipated Litigation, pursuant to Government Code Section 54956.9(b)(1) & (3)(A), Number of Cases: One. 

At 4:47 p.m., the Mayor recessed the meeting.

7:00 P.M. SESSION:

The 7:00 p.m. session of the City Council meeting was called to order at 7:00 p.m. by Mayor Bailey.

Members present:
Mayor Chair Doug Bailey
Mayor Pro Tem Prakash Narain
Council Member Phil Luebben
Council Member Leroy Mills
Council Member Todd Seymore

Staff present:
City Manager John Bahorski
City Attorney William Wynder
Assistant City Attorney Lindsay Tabaian
Assistant City Manager/Director of Finance and Administrative Services Richard Storey
Director of Community Development Ted Commerdinger
Police Chief Jackie Gomez-Whiteley
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Finance Manager/Assistant Director of Finance and Administrative Services Matt Burton
Administrative Services Manager Andrew Tse
City Clerk Denise Basham

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Mayor Bailey.

INVOCATION:  The invocation was given by City Attorney Wynder.

REPORT OF WORKSHOP AGENDA/CLOSED SESSION:

The Mayor asked for the report of the Workshop Session Agenda items discussed earlier in the evening. 

The City Manager stated that the City Council held a workshop regarding Measure D and the proposed ballot initiative.  He stated that a presentation was made by Andrew Chang, Andrew Chang & Company, LLC, and that the financial analysis reviewed various scenarios as well as long-term fiscal impacts. 

The Mayor asked for the report of the Closed Session Agenda items discussed earlier in the evening.

The City Attorney reported that the City Council met in Closed Session regarding Conference with Legal Counsel – Existing Litigation, pursuant to Government Code Section 54956.9(a), City of Cerritos, et al. v. State of California, et al., Case Number 34-2011-80000952, State of California Superior Court.  He stated that the City Council decided to continue participating in the appeal of this litigation and unanimously authorized funding up to a cap. 

The City Attorney reported that the City Council met in Closed Session regarding Conference with Legal Counsel – Existing Litigation, pursuant to Government Code Section 54956.9(a), Cypress School District v. City of Cypress, Case Number 30-2011-00522871, Orange County Superior Court.  He stated that a briefing was provided and a hearing will be held on the City’s pending motion to dismiss the action which is set for hearing in the Orange County Superior Court on February 29, 2012. 

The City Attorney reported that the City Council met in Closed Session regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8), Real Property Identified by APN Number 242-332-01, Located at 4545 Myra Avenue, Negotiating Party: City Manager and Director of Community Development, Under Negotiation: Price and Terms of Payment.  He stated that the City Council directed staff to give notice of its intent to acquire the site with Council Member Luebben voting no.

The City Attorney reported that the City Council met in Closed Session regarding Public Employee Performance Evaluation, pursuant to Government Code Section 54957(b)(1), Title:  City Manager.  He stated that the City Council concluded its oral performance evaluation of the City Manager and has directed the City Attorney to deliver a written evaluation at the next City Council meeting.

The City Attorney reported that the City Council met in Closed Session regarding Conference with Legal Counsel – Anticipated Litigation, pursuant to Government Code Section 54956.9(b)(1) & (3)(A), Number of Cases: One.  He stated that the City Council was briefed on a potential settlement to avoid such litigation and the City Council unanimously authorized the Mayor, on behalf of the City, to enter into a global settlement agreement to resolve this dispute.  He indicated that the settlement agreement will be available for public inspection and copying in the City Clerk’s Office once it has been fully executed by all parties to the agreement. 

No other action was taken in Closed Session, nor was any solicited.

ORAL COMMUNICATIONS:  LIMITED TO ONE-HALF HOUR.  (THREE MINUTES PER SPEAKER, SPEAKING ONCE.)

Mayor Bailey asked anyone who wished to speak on any topic not included on the meeting Agenda to come forward.

Dorothy Ledum, Cypress, complimented the City on the new Moody Street median landscaping.

Mariellen Yarc, Cypress Chamber of Commerce, spoke regarding upcoming activities and events.

PUBLIC HEARINGS:  7:00 P.M. (PUBLIC COMMENTS RESTRICTED TO TEN MINUTES PER SPEAKER, UNLESS EXTENDED BY THE CITY COUNCIL).

No items.

CONSENT CALENDAR:

All matters listed on the Agenda under “Consent Calendar” are to be considered by the City Council to be routine and will be enacted by one motion approving the recommendations listed on the Agenda.

It was moved by Council Member Seymore and seconded by Council Member Mills, to approve Consent Calendar Items No. 1 through 8.

The motion was unanimously carried by the following roll call vote:

AYES:        5    COUNCIL MEMBERS:   Luebben, Mills, Seymore, Narain and Bailey
NOES:        0    COUNCIL MEMBERS:   None
ABSENT:    0    COUNCIL MEMBERS:   None

Item No. 1:   APPROVAL OF CITY COUNCIL MINUTES OF THE MEETING OF JANUARY 23, 2012.

Recommendation:   That the City Council approve the Minutes of the Meeting of January 23, 2012, as submitted.

Item No. 2:   MOTION TO INTRODUCE AND/OR ADOPT ALL ORDINANCES AND RESOLUTIONS PRESENTED FOR CONSIDERATION BY TITLE ONLY AND TO WAIVE FURTHER READING.

Item No. 3:   DESIGN REVIEW COMMITTEE PERMIT NO. 2011-01, A REQUEST TO CONSTRUCT A STEALTH, IMITATION TREE DESIGN, ANTENNA FACILITY WITHIN THE EXISTING CHURCH PARKING LOT LOCATED AT 5100 CERRITOS AVENUE IN THE PS PUBLIC AND SEMI-PUBLIC ZONE.

Recommendation:   That the City Council adopt the Resolution by title only, approving Design Review Committee Permit No. 2011-01, subject to the conditions in Exhibit “A” of the Resolution.

RESOLUTION NO. 6288

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
APPROVING DESIGN REVIEW COMMITTEE PERMIT NO. 2011-01
- WITH CONDITIONS.

Item No. 4:   ACCEPTANCE OF AUTOMATIC LICENSE PLATE READER EQUIPMENT.

Recommendation:   That the City Council: 1) Approve the acceptance of the License Plate Reader Equipment and three (3) year maintenance contract funded by the Urban Area Security Initiative (UASI) grant funds; and 2) Grant signature authority to the positions of City Manager, Finance Director, Police Chief, or Emergency Services Police Services Officer to obtain the FY 2010 Urban Area Security Initiative grant funds.

Item No. 5:   FISCAL YEAR 2011-12 MID-YEAR BUDGET REVIEW.

Recommendation:   That the City Council receive and file the Fiscal Year 2011-12 Mid-Year Budget Review report.

Item No. 6:   APPROVAL OF COMMERCIAL WARRANT LIST AND WIRE TRANSFERS FOR FISCAL YEAR 2011-12 FOR WARRANTS NO. 20773 THROUGH 20977.

Recommendation:   That the City Council approve the attached warrant register and wire transfers for Fiscal Year 2011-12.

Recreation and Park District Matters:

Item No. 7:   FISCAL YEAR 2011-12 MID-YEAR BUDGET REVIEW FOR THE CYPRESS RECREATION AND PARK DISTRICT.

Recommendation:   That the City Council, acting as the ex-officio governing Board of Directors for the Cypress Recreation and Park District, receive and file the Fiscal Year 2011-12 Mid-Year Budget Review report.

Item No. 8:   ACCEPTANCE OF BANDAI FOUNDATION DONATION AND APPROPRIATION OF FUNDS FOR PURCHASES TO SUPPORT A YOUTH RECREATION PROGRAM.

Recommendation:   That the City Council, acting as the ex-officio governing Board of Directors for the Cypress Recreation and Park District: 1) Formally accept the donation in the amount of $5,000 from the Bandai Foundation via the Cypress Children’s Advocacy Council; and 2) Increase estimated revenue 3713-12 (Donations) by $5,000 and increase appropriations by $1,500 to 212-90310.4103_004 (Activity Supplies) and $3,500 to 212-90310.4104_015 (Activity Clothing) for the purchase of supplies, uniforms, and staff/coaches’ shirts.

END OF CONSENT CALENDAR

NEW BUSINESS:

Item No. 9:   APPOINTMENTS TO OVERSIGHT BOARD.

The Director of Community Development provided background information on this item.

It was moved by Mayor Bailey and seconded by Council Member Seymore, that the Mayor appoint the City’s Finance Manager and the Mayor to the Oversight Board.

The motion was carried by the following roll call vote:

AYES:        4    COUNCIL MEMBERS:   Mills, Seymore, Narain and Bailey
NOES:        1    COUNCIL MEMBERS:   Luebben
ABSENT:    0    COUNCIL MEMBERS:   None

Mayor Bailey asked that each City Council Member submit no more than two names of community members to the City Manager as soon as possible. 

RECREATION & PARK DISTRICT MATTERS:  The Cypress City Council, Acting as the Ex Officio Governing Board of Directors.

Item No. 10:  APPOINTMENT TO OVERSIGHT BOARD.

The Director of Community Development provided background information on this item.

Council Member Seymore stated that he would like to serve on the Oversight Board.

Council Member Seymore’s nomination failed by the following roll call vote:

AYES:        2    COUNCIL MEMBERS:   Luebben and Seymore
NOES:        3    COUNCIL MEMBERS:   Mills, Narain and Bailey
ABSENT:    0    COUNCIL MEMBERS:   None

Mayor Pro Tem Narain nominated Council Member Mills to serve on the Board.

Council Member Mills was appointed by the following roll call vote:

AYES:        3    COUNCIL MEMBERS:   Mills, Narain and Bailey
NOES:        2    COUNCIL MEMBERS:   Luebben and Seymore
ABSENT:    0    COUNCIL MEMBERS:   None

SUCCESSOR AGENCY TO THE CYPRESS REDEVELOPMENT AGENCYThe Cypress City Council, Acting as the Successor Agency to the Cypress Redevelopment Agency.

No items.

ORAL COMMUNICATIONS:  For Matters Not on the Agenda.

None.

ITEMS FROM CITY COUNCIL MEMBERS:

Mayor Bailey requested reports from the Council Members on their respective committee assignments.

Council Member Luebben:

Attended a SCAG Energy and Environment Committee meeting.  Attended the City’s Youth Basketball games at Lexington Junior High School. 

Mayor Pro Tem Narain:

Attended the State of the City luncheon.  Attended the O.C. Library Advisory Board meeting.  Attended the State of the County luncheon.  Attended an O.C. Sanitation District Board meeting.  Attended an O.C. Sanitation District Administrative Committee meeting.

Council Member Seymore:

Attended an O.C. Fire Authority Board meeting.  Attended the State of the City luncheon.  Attended the O.C. Fire Authority Best and Bravest Awards.

Council Member Mills:

Spoke regarding unlicensed solicitors in City neighborhoods.  Attended the Garden Grove State of the City luncheon.  Attended an O.C. Council of Governments Board of Directors meeting.  Attended a workshop and public hearing regarding the 2012 RTP/SCS Input.  Participated in a working lunch with a UCLA Masters candidate student.  Attended the promotion ceremony for Major Bill Mayhue.  Represented Cypress at a Hero Mission at the Joint Forces Training Base.  Attended the State of City luncheon.  Attended an ACC-OC Legislative Committee meeting.  Attended Dr. Caldwell’s free dentistry event.  Attended a workshop in Anaheim on the RTP/SCS document.  Attended the State of the County luncheon.  Attended an O.C. Council of Governments Executive Management meeting.  Participated in a SCAG Bylaws teleconference.  Informed of the speaker at the Cypress Senior Citizens Center on February 24, 2012, regarding the French Revolution.  Introduced two college students who are doing research on the City. 

Mayor Bailey:

Gave the State of the City speech and thanked the Administrative Services Manager for his assistance.  Attended the State of the County luncheon.

ITEMS FROM CITY MANAGER: 

No items. 

ADJOURNMENT: Mayor Bailey adjourned the meeting at 7:40 p.m. in memory of Nancy Jennings to Monday, February 27, 2012, beginning at 5:30 p.m. in the Executive Board Room.

_______________________________
MAYOR OF THE CITY OF CYPRESS

ATTEST:

___________________________________
CITY CLERK OF THE CITY OF CYPRESS

City of Cypress Department of Administration ~ 5275 Orange Avenue ~ Cypress, CA 90630 ~ 714-229-6780