AVALON CITY COUNCIL 
TUESDAY, JULY 1, 2008
7:00 P.M. - CITY COUNCIL CHAMBERS
410 AVALON CANYON ROAD, AVALON
A G E N D A

CALL TO ORDER
PLEDGE OF ALLEGIANCE / INVOCATION
ROLL CALL
ANNOUNCEMENTS / WRITTEN COMMUNICATIONS
ORAL COMMUNICATIONS
Members of the public may address the City Council at this time.  No action will be taken on non-agenda items at this meeting.  Speakers should limit comments to three (3) minutes each.

PRESENTATION
Ron Hite, Operations Manager, of Southern California Edison, Catalina Island District, will address two issues: 1) An update on the potential water and gas plant sale and 2) Status of  the Desalinization Grant that the City received for them.

CONSENT CALENDAR
All items listed on the Consent Calendar are considered to be routine by the Council and will be enacted with one motion.  There will be no separate discussion of these items unless a specific item is removed from the Consent Calendar for further discussion and possible action.

1. Motion to Waive
Government Code Section 36934 provides that all ordinances shall be read in full either at the time of introduction or passage, unless the City Council adopts a motion to waive further reading following the reading of the titles of the ordinance. The following is on tonight's agenda:

AN ORDINANCE OF THE CITY OF AVALON PROVIDING FOR ATTENDANCE REQUIREMENTS FOR MEMBERS OF THE AVALON PLANNING COMMISSION AND AMENDING THE AVALON MUNICIPAL CODE

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AVALON PROVIDING FOR TEN DAYS NOTICE OF THE NEED TO REMOVE GRAFFITI UNDER THE NUISANCE ABATEMENT ORDINANCE AND AMENDING THE AVALON MUNICIPAL CODE

2. Actions
Although the live recording is the official record of public meetings, actions are prepared for the Council's approval.
Recommended Action
Approve the actions from the June 17, 2008, City Council meeting.  

3. Expenditures
Approve warrants in the amount of $674,221.35 and payroll amounting to $246,192.58 for total expenditures in the amount of $920,413.93. 
Recommended Action
Approve expenditures in the amount of $920,413.93.

4. Resolution Supporting Application for Cycle II of the Federal Safe Routes  to Schools Grant Program
Funding is now available for cycle two of the Safe Routes to Schools  program. A resolution supporting the importance of the project is needed  to apply.
Recommended Action
Adopt the resolution and direct staff to continue with the grant application  process.

5. Second Reading of Ordinance Regarding Planning Commission  Attendance  Requirements   
This ordinance was introduced at the last City Council meeting on June  17, 2008, it changes the attendance requirements of a Planning  Commissioner to allow them to miss up to three meetings in a six month  period. 
Recommended Action
Adopt the ordinance.

6. Modification of Scope of Permits for Minor Obstructions of Public  Sidewalks and Alleys  
The City Council created and then modified, several times, a classification  of minor obstruction permits which are not subject to a fee. This new modification expands the scope to include certain types of activities by  owners and operators of commercial properties.
Recommended Action
Adopt revised fee resolution.
 
7. Second Reading of an Ordinance Regarding Notice for Nuisance  Abatement of Graffiti     
This ordinance was introduced at the June 17, 2008 City Council meeting,  it  requires that graffiti be removed in 10 days, versus the current  ordinance of 30 days, after receiving written notice to abate. 
Recommended Action
Adopt the ordinance requiring ten days written notice to a property owner  for the removal of graffiti.

8. Authorize the Purchase of a Caterpillar Forklift     
The City Council authorized the purchase of a forklift in November 2007.  The forklift that staff was interested in back in November became  unavailable. The City then began leasing one from Quinn Rental Services  with the option to buy.      
Recommended Action
Authorize the purchase of a Caterpillar Forklift for an amount not to  exceed $80,000 from Quinn Rental Services.

9. Adoption of Mileage and Meal Reimbursement Policy   
The City's travel and expense reimbursement policy has not been revised  since 1996.
Recommended Action
Adopt the revised Travel and Expense Policy

10. Approval of Lease Transfer-Catalina Diver's Supply   
 The owner of Catalina Diver's Supply has notified the City of his desire to  sell his business and transfer his lease. The current lease runs through  December 2010.
Recommended Action
Approve transfer and authorize City Manager to execute amendment to   lease upon payment of transfer fee as provided in lease.  The Harbor  Master is authorized to approve transfers of Waterside Permits and this  will be handled administratively.
 
GENERAL BUSINESS

11. Fiscal Year 2008/2009 Budget
The City Council has been provided copies of the Draft 2008/2009 Municipal Budget under separate cover. A public copy of the staff report, including the budget is provided in the lobby at City Hall for public information.
Recommended Action
Staff recommends that the City Council adopt the following resolutions:

• Resolution of the City Council adopting the 2008-2009 Fiscal Year Budget, including the Operating Budget, the Capital Improvement Projects and the ACIA budget
• Resolution of the City Council establishing an appropriations limit for Fiscal Year 2008-2009
• Resolution of the City Council establishing the City's investment Policy for 2008-2009 Fiscal Year
• Resolution of the City Council modifying the Los Angeles Board of Supervisors of its desire to receive services from the Los Angeles County Sheriff's office, authorizing the expenditure of COPS Grant Funds and authorizing the Mayor to execute the 2008-2009 agreement

12. Appointment of Four Commissioners to the Planning Commission
The Avalon Municipal Code provides that the City Council make the appointments to the Planning Commission Board. There are four vacancies on the board because of three expired terms and the resignation of Councilmember Rikalo back in April.  
Recommended Action
Appoint four members to the Planning Commission.
 
13. Sixth Amendment to the Equipment Lease and Transportation Services Operating Agreement with Catalina Transportation Services, Inc.
Catalina Transportation Services (CTS) has operated the City's public transportation programs, ART, DAR, and ACT, since 2001. Changes have been requested by CTS in this years Operating Agreement.
Recommended Action
Authorize the City Manager to execute a one year extension to the Operating Agreement with contract modifications.

14. Conditional Use Permits for Transient Rentals
There are several ongoing concerns regarding Conditional Use Permits. City Council would like to come up with specified guidelines.
Recommended Action
Review and discuss possible changes to the Transient Rental Ordinance.

CITY MANAGER'S REPORT
 
MAYOR'S REPORT
 
COUNCILMEMBER'S REPORT

ADJOURN

NOTICE OF POSTING
I, Denise Radde, declare that the City Council Agenda for July 1, 2008, was posted on Thursday, June 26, 2008, at the Catalina Island Chamber of Commerce and Visitors Bureau, located on the Pleasure Pier, at City Hall, 410 Avalon Canyon Road, and on the City's website www.cityofavalon.com. Copies of agendas and staff reports are available to the public at City Hall. 

____________________________________
Denise A. Radde, City Clerk / Assistant to the City Manager 

CITY OF AVALON
CITY COUNCIL ACTIONS
TUESDAY, JULY 1, 2008

CALL TO ORDER: 7:13 p.m.

ROLL CALL: Present- Mayor Kennedy and Council Members Ponce, Winslow, Rikalo, and Nelson.  Also present: City Manager Pete Woolson; City Attorney Pam Albers, and City Clerk Denise Radde.

ANNOUNCEMENTS 
Mayor Kennedy announced: 1) Parking warnings will no longer be issued for the commercial loading zones and starting tomorrow tickets will be issued; 2) Past students of Trieva Rea are asked to walk behind her in the parade on Friday, lining up at the Casino at 12:45.

Pam Albers reminded the public that golf carts are considered moving vehicles, so only hands free phone devices can be used.  The Sheriff's Department is issuing tickets and the fine is significant.

Pete Woolson announced that Supervisor Don Knabe, working with Audra McDonald, has secured an additional $100,000 for our commuter subsidy program.  Finance Director Betty Jo Garcia stated that she will perform and analysis and make a recommendation to the City Council regarding the best use of these additional funds, since increases to the amount of the subsidy require Council action.

WRITTEN COMMUNICATION
Mayor Kennedy said he had received a letter from the League of California Cities reminding the Council that it was time to designate voting delegates for the Annual Conference in September.  City Manager Woolson stated this will be on the next agenda.

PRESENTATIONS 
Ron Hite, Operations Manager, of Southern California Edison, Catalina Island District, addressed Council regarding several items.
1. Mr. Hite gave an update on the potential sale of the water and gas utilities plant. It is an ongoing discussion with potential buyers. The executive management of Edison still has not approved of the sale; they are only looking at the possibility of it. Mr. Hite thought there would be more information to pass along in August, because there will be some key milestones for both Edison and potential buyers in July.

 2. Mr. Hite also gave an update regarding the desalinization demonstration project, in which the City of Avalon, private companies and Edison are partnering to expend Prop 50 grant funds awarded to the City by the State of California to design, install and operate new technology to produce desal water with much less energy, and therefore at a much lower cost, up to 2/3 less than current costs. There have been some significant delays in
this project because the private entities had funding issues to resolve.  Contracts should be signed by the end of the week. The design engineering is already on the way. The demonstration equipment is being built in Anaheim and will undergo many tests before it is installed.  Hopefully it will be on the Island not long after the first of the year. The goal at Edison is to produce more cost efficient desal water by next summer.

3. Southern California Edison has secured 300 KW of photo voltaic solar panels for the Island. Last week they were out scouting the best places to place them. The goal of Edison is to have these panels up and producing electricity by the end of next year.

ORAL COMMUNICATIONS
None
 
CONSENT CALENDAR
There were ten items on the Consent Calendar; City Attorney Albers announced that item #9  (Travel and Expense Policy) will be carried over to the next agenda, as the policy was just distributed to Council and Department Heads for review and comment. Mayor Kennedy removed # 6 (Minor Obstruction Permits) for further dialogue. With regard to Item #2 (Actions for 6/17/08 Council meeting) Councilmember Rikalo asked if Canyon Terrace Association had gotten an answer to their letter -City Manager Woolson replied that it was being taken care of by Seagull Sanitation- and with regard to the nuisance abatement ordinance for graffiti, Rikalo stated that she had voted no, not aye and the actions should be corrected.  City Attorney Albers explained that the protocol she had circulated included a form letter to private property owners listing options for addressing the situation and stated that staff would only take action if a property owner failed to completely respond after several notices by the City.  Councilmember Nelson asked if Council voted yes to item #4 (Resolution Supporting Application for Cycle II of Federal Safe Routes to School Grant Program), did it commit the City to the plans the engineer had designed.  The answer was no. Motion to approve as per staff recommendations, Items 1-5, 7, 8, and 10 by Michael Ponce, seconded by Tim Winslow. (All Ayes), as follows:

1. Approved reading of Ordinance Title(s) and Motion to waive pursuant to Government Code Section 36934.

2. Approved City Council Actions from the June 17, 2008 City Council meeting, as corrected.

3.  Approved warrants in the amount of $674,221.35 and payroll amounting to $246,192.58 for total expenditures in the amount of $920,413.93.

4. Adopted Resolution 08-07 supporting submission of a grant application for Cycle II of the Federal Safe Routes to Schools Program.

5. Adopted Ordinance 1071-08 providing for attendance requirements for members of the Avalon Planning Commission.

7. Adopted Ordinance1072-08 providing for ten days notice of the need to remove graffiti under the nuisance abatement ordinance.

8. Authorized the purchase of a Caterpillar Forklift in an amount not to exceed $80,000 from Quinn Rental Services.  

10. Approved transfer of Catalina Diver's Supply lease with the City to new owners and authorized the City Manager to execute an amendment to the lease upon payment of the transfer fee as provided in lease. It was noted that the Harbor Master has authority to administratively approve transfer of Catalina Diver's Supply's Waterside Permit. 
 
Pulled Items:

6. Modification of Scope of Permits for Minor Obstructions of Public Sidewalks and Alleys- Council discussed many aspects of the obstruction permit, but there was no consensus on what adjustments to make.  Councilmembers Nelson and Rikalo believe that no permit or other restrictions should be placed on those that need to place a ladder on City property in order to work on their property. The City Attorney stated she can present the ordinance itself for further discussion and direction from Council to reword and clarify what an obstruction is.

GENERAL BUSINESS
11. Fiscal Year 2008/2009 Budget - Before adopting the budget, several Councilmembers asked for clarification. The Sheriff's budget was looked at again and Council increased their Subsistence account to $32,000. Motion by Michael Ponce to adopt Resolution 08-08 the budget for Fiscal Year 2008-2009, with the changes to the Sheriff's budget, seconded by Tim Winslow.  Also adopted Resolution 08-09 establishing an appropriations limit for FY 2008-2009 pursuant to Article XIII B of the California Constitution, Resolution 08-10 adopting the statement of investment policy for FY 2008-2009, and Resolution 08-11 notifying the Los Angeles County Board of Supervisors of the City's desire to receive law enforcement services from the L.A. County Sheriff's office, authorizing the expenditures of COPS Grant Funds and authorizing the Mayor to execute the 2008-2009 agreement. (All Ayes) 

12. Appointment of Four Commissioners to the Planning Commission - Mayor Kennedy indicated his desire to appoint Cinde MacGugan and Keith Schmidt, and to reappoint Duane Stout and David Creigh as Planning Commission Board members, seconded by Scott Nelson. (3 Ayes- Kennedy, Nelson, Rikalo- 2 Noes-Ponce and Winslow).  A brief discussion followed regarding the practice and procedure for Planning Commission appointments and statements regarding the qualifications and experience of certain applicants.

13. Sixth Amendment to the Equipment Lease and Transportation Services Operating Agreement with Catalina Transportation Services, Inc. - Authorized the City Manager to execute a one year extension to the Operating Agreement, with contract modifications as stated in the staff report. Motion by Michael Ponce, seconded by Sue Rikalo.  (All Ayes)

14. Conditional Use Permits (CUP) for Transient Rentals- Councilmember Rikalo led this discussion, expressing her views and asking Council for their opinions.  Her main emphasis was setting up zones in the City that would not allow CUPs and also an ordinance change to prevent boxing in individual homeowners with transient rentals on all sides. City Attorney Albers discussed the legal and practical implementation issues with some of the proposals.  After significant dissension among the City Council on a number of proposals, the City Council directed the City Attorney to draft ordinances on the six issues the Council appeared to agree upon. Staff is to bring this item back for further discussion.
        
CITY MANAGER'S REPORT
None
 
MAYOR'S REPORT
None
 
COUNCILMEMBER REPORT 
Councilmember Nelson asked about the status of the salt water problem at Sol Vista. City Manager replied that it was put on the back burner and he will work on it.

Councilmember Rikalo asked where we were on the museum contract. Pam Albers replied that the Museum's attorney was reviewing the agreement she drafted and that the Planning Commission just approved the lot split.  Once the lot gets recorded, staff will be seeking ACIA direction as to whether this project will be administered by the non-profit Avalon Housing Development Corporation.

CLOSED SESSION: 10:08- 10:32 p.m.
The City Council held a closed session pursuant to Government Code 54956.8 to confer with its real property negotiator (City Manager) regarding Pebbly Beach Road. Council was briefed on efforts to obtain private insurance to provide liability coverage for the road and the adjacent hillside. The City Council also discussed possible land exchanges and sharing of other responsibilities by the Santa Catalina Island Company. No other matters were discussed and no other action taken.

ADJOURN: 10:34 p.m.

I, Denise Radde, City Clerk of the City of Avalon, do hereby certify that the DVD videotape of the City Council Meeting of July 1, 2008, is the official record of that Council Meeting and is on file and maintained in City Hall.

_____________________________                                            
Denise A. Radde, City Clerk/Assistant to the City Manager