City Council

TRI TA Mayor SERGIO CONTRERAS Mayor Pro Tem DIANA LEE CAREY Council Member TYLER DIEP Council Member MARGIE L. RICE Council Member AGENDA CITY COUNCIL/SUCCESSOR AGENCY TO THE WESTMINSTER REDEVELOPMENT AGENCY April 27, 2016 Closed Session - 6:00 PM Council Conference Room 7:00 PM Council Chambers 8200 Westminster Boulevard Westminster, California 92683 If you need special assistance to participate in this meeting, please contact the City Clerk’s office at (714) 898-3311. Notification of 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.102-35.104 American Disabilities NOTE: Any writings or documents provided to a majority of the City Council regarding any item on this agenda is available for public inspection at the public counter at City Hall located at 8200 Westminster Boulevard, Westminster, CA during normal business hours, except such documents that relate to closed session items or which are otherwise exempt from disclosure under applicable law. These writings are also available for review in the public access binder located in the entryway to the Council  AGENDA April 27, 2016 7:00 PM PUBLIC COMMENTS MAY BE RECEIVED BY THE CITY COUNCIL PRIOR TO ANY ITEM TO BE CONSIDERED IN CLOSED SESSION. CALL TO ORDER: ROLL CALL: TA, CONTRERAS, CAREY, DIEP, RICE CLOSED SESSION: The City Council will recess to a Closed Session for the following purposes: 1) Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: Property: APN: 097-121-25; City Negotiator: City Manager Eddie Manfro and Community Development Director Soroosh Rahbari; Negotiating Party: City Manager Eddie Manfro and Community Development Director Soroosh Rahbari; Under Negotiations: Price and Terms of Payment. 2) Conference with Labor Negotiators pursuant to Government Code Section 54957 and 54957.6 with designated representatives: City Manager Eddie Manfro and Director of Human Resources and Risk Management Mike Harary. (Employee Organizations: Westminster Police Officers’ Association, Westminster Municipal Employees’ Association and the Management and Administrative and Confidential Employees of the City of Westminster). 3) Conference with Legal Counsel pursuant to Government Code Section 54956.9 (d) (2): Anticipated Litigation: (two cases). RECESS: Page 2  AGENDA April 27, 2016 7:00 PM The City Council of the City of Westminster will regularly convene in joint session for the purpose of considering the following City Council Agenda items. The Westminster Housing Authority and the Westminster Public Finance Authority are also agencies on which council serves as members. These Agencies may also have items scheduled. RECONVENE CITY COUNCIL MEETING: ROLL CALL: TA, CONTRERAS, CAREY, DIEP, RICE SALUTE TO FLAG: Mayor Ta INVOCATION: REPORT OUT OF CLOSED SESSION: The City Attorney shall determine if any actions taken by the City Council in Closed Session shall require a reporting on those actions as required by law (Government Code Section 54957.1(a)(3)(b)). REPORT FROM CITY CLERK: 1. SPECIAL PRESENTATIONS Presentation of MADD Award to Westminster Police Officer Stewart DeJong (40 arrests). Presentation of Proclamation declaring April 21, 2016 as “Coast Community College District Day” in the City of Westminster. 2. ORAL COMMUNICATIONS THIS IS THE TIME OF THE MEETING THAT MEMBERS OF THE PUBLIC MAY ADDRESS THE CITY COUNCIL REGARDING ANY ITEMS ON THE AGENDA OR NON-AGENDA ITEMS THAT ARE WITHIN THE SUBJECT MATTER JURISDICTION, EXCEPT PUBLIC HEARING ITEMS. MEMBERS OF THE PUBLIC WISHING TO ADDRESS PUBLIC HEARING ITEMS SHALL DO SO AT THE TIME OF THE PUBLIC HEARING. UNLESS OTHERWISE EXTENDED BY A MAJORITY VOTE OF THE CITY COUNCIL, COMMENTS SHALL BE LIMITED TO FIVE (5) MINUTES PER SPEAKER. Page 3  AGENDA April 27, 2016 7:00 PM 3. CONSENT CALENDAR APPROVAL OF MINUTES 3.1 (City Council/Successor Agency) Minutes of a Special Closed Session of the Westminster City Council on April 11, 2016 and Minutes of a Regular Meeting of the Westminster City Council/Successor Agency to the Westminster Redevelopment Agency on April 13, 2016. Approve. Presenter(s): Amanda Jensen ROUTINE MATTERS Page 4  AGENDA April 27, 2016 7:00 PM 3.2 Acceptance of a Quitclaim Deed from the General Services Administration (GSA) for Navy easement between Hoover Street to 981 feet west of Edwards Street and between Rancho Road to Bolsa Chica Road, in the City of Westminster. Staff recommends that the Mayor and City Council: Click here to enter text. A) Accept Navy Easement Quitclaim Deed to the City of Westminster from GSA; and B) Authorize the City Manager to execute any other related title documents. BACKGROUND/DISCUSSION: In February 2013, the Navy completed the removal of its railroad tracks which were stretching through the Cities of Westminster and Huntington Beach between Hoover Street and Bolsa Chica Road. Since the Navy has no further need for this easement, GSA has been working on transferring the Navy easement to both Huntington Beach and Westminster at no cost to both cities. The existing Navy easement within the Westminster city boundary is approximately 75 feet wide, and about 1.7 miles in length, for a total area of approximately 15.5 acres (See attached Exhibit 1). The portion of the subject easement in Huntington Beach is 75 feet wide and over one mile in length with an estimated area of 11 acres. To maintain the original purpose of the subject easement, City staff plans to install a new waterline to connect existing City water systems between Hoover Street and Bolsa Chica Road. The proposed waterline will transport water from our water storage tanks near Hoover/Hazard to the west side of town. It will also provide cross connections to existing City water lines in Goldenwest and Springdale Streets, and an emergency water connection for the City of Huntington Beach. The City of Huntington Beach has already accepted the quitclaim deed of the portions of the subject easement in their city from GSA on April 4, 2016. Huntington Beach staff also plans to construct water wells and water facilities in the portion of the easement in their city. In addition to the water facilities planned, both cities are working on concepts to develop the easement into pedestrian and bike recreational trails. The acceptance of the easement will also bring with it ongoing maintenance duties to keep it safe and clean. The annual maintenance cost is estimated to be $10,000. City staff and the City Attorney has reviewed the Environmental, Soil and Title reports, and determined that the proposed uses have City and regional benefits, and are in compliance with the easement conditions. FISCAL IMPACT: Page 5  AGENDA April 27, 2016 7:00 PM The estimated annual maintenance cost of $10,000 is to be budgeted for in the 16/17 budget, as well as future budgets thereafter. ATTACHMENTS: Navy Easement Quitclaim Deed Exhibit 1 Presenter(s): Marwan Youssef RESOLUTIONS 3.3 Adopt a Resolution and Application for Funds from the OCTA Measure M Tier 1 Environmental Cleanup Program for the FY 2016/17 Catch Basin Screen Installation Project Presenter(s): Marwan Youssef 3.4 Adopt a Resolution and Application for Funds from the OCTA Measure M Tier 1 Environmental Cleanup Program for the Beach Boulevard Irrigation Modernization Project Presenter(s): Marwan Youssef ADMINISTRATIVE ITEMS 3.5 Approval of the Orange County Transportation Authority Senior Mobility Program Agency Service Plan for the Senior Transportation Program. Staff recommends that the Mayor and City Council: A) Approve the Orange County Transportation Authority Senior Mobility Program Agency Service Plan for the City’s Senior Transportation Program; and B) Authorize the City Manager to execute the Agency Service Plan on behalf of the City. Presenter(s): Diana Dobbert WARRANT REGISTER Page 6  AGENDA April 27, 2016 7:00 PM 3.6 (City Council/Successor Agency) Warrant Register dated April 6, 2016 through April 19, 2016. Approve. Presenter(s): Sherry Johnson REPORTS 3.7 Annual Housing Element Progress Report for the Calendar Year 2014. Staff recommends that the Mayor and City Council receive and file the report and direct staff to submit the report to the State Department of Housing and Community Development (HCD). Presenter(s): Soroosh Rahbari 3.8 Treasurer’s Report - March 2016. Approve. Presenter(s): Erin Backs END OF CONSENT CALENDAR 4. PUBLIC HEARINGS ANYONE WISHING TO SPEAK ON AN OPEN PUBLIC HEARING IS REQUESTED TO COMPLETE A GREEN SPEAKER SLIP THAT IS PROVIDED AT THE ENTRANCE TO THE COUNCIL CHAMBERS. PLEASE SUBMIT THE SPEAKER SLIP TO THE CITY CLERK. WHEN YOUR NAME IS CALLED, PLEASE STEP TO THE PODIUM AT THAT TIME AND STATE YOUR NAME AND ADDRESS FOR THE RECORD. Page 7  AGENDA April 27, 2016 7:00 PM 4.1 Adoption of Final FY 2016/17 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnerships Act (HOME) Program federal funds Staff recommends that the Mayor and City Council: A) Conduct the final allocation of CDBG funds to Subrecipients; B) Adopt the final Fiscal Year 2016/2017 Annual Action Plan, inclusive of any public comments; and C) Authorize the City Manager to execute all required documents for transmittal to the U.S. Department of Housing and Urban Development Department (HUD) by the federally prescribed deadline of May 13, 2016. Presenter(s): Soroosh Rahbari 5. REGULAR BUSINESS Page 8  AGENDA April 27, 2016 7:00 PM 5.1 Resolution Approving the Refunding of Westminster Redevelopment Agency’s $73,055,000 Westminster Redevelopment Agency’s Commercial Project No. 1 2009 Subordinate Tax Allocation Bonds (Police Facility) through the issuance of the Successor Agency’s 2016 Tax Allocation Refunding Bonds. Staff recommends that the Chair and Agency Members approve a Resolution entitled “A Resolution of the Successor Agency to the Westminster Redevelopment Agency Approving the Issuance of Refunding Bonds in Order to Refund Certain Outstanding Bonds of the Dissolved Westminster Redevelopment Agency, Approving the Execution and Delivery of an Indenture of Trust Relating Thereto, Requesting Oversight Board Approval of the Issuance of the Refunding Bonds, Requesting Certain Determinations by the Oversight Board, and Providing for Other Matters Properly Related Thereto.” .Body BACKGROUND/DISCUSSION: The Successor Agency financing team (comprised of Agency staff, the financial advisory firm of C.M. deCrinis & Co, Inc. and bond counsel and disclosure counsel from the firm of Best, Best and Krieger) has identified outstanding Agency bonds totaling $73,055,000 that are viable refunding candidates. In 2009, the Redevelopment Agency issued its $73,055,000 Westminster Redevelopment Agency, Westminster Commercial Project No. 1 2009 Subordinate Tax Allocation Bonds (Police Facility) (the 2009 Bonds). The 2009 Bonds currently outstanding total $73,055,000, of which all are refundable for savings. The interest rate on the 2009 bonds is 5.94%. The refunding plan is to issue one series of refunding bonds (the “2016 Refunding Bonds”). There are two other Redevelopment Agency bond series outstanding. The $21,630,000 in 2008 Bonds are not currently candidates for refunding, as they cannot be refunded until 2018. The $23,385,000 in 2011 Bonds have insufficient savings at the present time to warrant an advance refunding. The proposed refunding of the 2009 Bonds is an advance refunding and the first call date for the 2009 Bonds is 11/1/19. The 2016 Refunding Bonds proceeds will be invested in federal securities and held in an escrow held by the Trustee. The federal securities will be invested and mature in a sufficient amount to pay debt service prior to and including the 11/1/19 call date. The Agency is proceeding now on the refunding rather than waiting until 2019, when the bonds are first callable, to lock in current savings. If interest rates remain stable and do not rise between now and 2019, savings would be significantly higher if the refunding was delayed. However rates are at or close to the lowest rates in decades now. There is no way to predict the future course of interest rates. Page 9  AGENDA April 27, 2016 7:00 PM The issuance of refunding bonds is authorized under the Dissolution Act ‐ Section 34177.5 of the Health & Safety Code, which was added to the Dissolution Act by AB 1484. This provision authorizes the Successor Agency to issue bonds for the purpose of refunding outstanding tax allocation bonds of the Redevelopment Agency or the Successor Agency to provide debt service savings provided that (A) the total interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds does not exceed the total remaining interest cost to maturity on the bonds to be refunded plus the remaining principal of the bonds to be refunded, and (B) the principal amount of the refunding bonds does not exceed the amount required to defease the refunded bonds, to establish customary debt service reserves, and to pay related costs of issuance. If the foregoing conditions are satisfied, the initial principal amount of the refunding bonds may be greater than the outstanding principal amount of the bonds to be refunded. It is proposed that no more than $90,000,000 in 2016 Refunding Bonds will be issued. The 2016 Refunding Bonds will be secured by a tax increment revenue pledge from Amendment Areas 3, 4 and 5 but subordinate to the pledge of tax revenues for the $21,630,000 in 2008 Bonds with respect to the Original Project Area and Amendment Area 1 and 2. The 2016 Refunding Bonds will additionally be secured by a pledge of Redevelopment Property Tax Trust Fund (RPTTF) monies. The Series 2016 Refunding Bonds will be structured to maximize net present value savings and provide level savings over all years of bond debt service. The 2009 Bonds do not have principal maturities until 2027. Due to lower interest rates, the 2016 Refunding Bonds can amortize principal beginning in 2017 and achieve level savings on all bonds. Savings will be proportional on all bonds in each year. The 2016 Refunding Bonds will be issued under a new indenture. The 2009 Bonds have a cash funded debt service reserve fund. It is expected that the 2016 Refunding Bonds will qualify for a bond reserve fund surety policy. The Successor Agency will apply for a surety policy for the 2016 Refunding Bonds from either National Public Finance Guarantee, Assured Guarantee or Build America Mutual, the remaining viable bond insurers. This will increase present value and cash flow savings. It is expected that the 2016 Refunding Bonds will received a rating from Standard & Poor’s of “A+” based on the project area characteristics, high debt service coverage and term. This is also the Rating on the Series 2009 Bonds. We anticipate having the State Department of Finance review and approve the Successor Agency’s refinancing plan in May of 2016 in order to prepare for a refinancing of the outstanding bonds as soon as approvals can be obtained . Provided the Successor Agency Board and Oversight Board approve the refinancing on April 27 and 28, respectively, and assuming timely approvals from all agencies Page 10  AGENDA April 27, 2016 7:00 PM including the State Department of Finance, the Successor Agency anticipates issuing the 2016 Refunding Bonds in July of 2016. The 2016 Refunding Bonds will be underwritten by negotiated sale. A Request For Proposals for underwriting services has been issued to six underwriting firms. Staff will provide a recommendation for the selection of the underwriter at the May 11 Successor Agency meeting. FISCAL IMPACT: The purpose of the proposed issuance of 2016 Refunding Bonds is to lower the debt service payments currently payable out of property tax increment revenues . The Successor Agency can issue bonds for no other purposes. Since the new bonds need less tax increment revenues, there will be a corresponding increase in tax revenues paid to the various taxing agencies. Under current market conditions, annual savings to all taxing agencies are approximately $ 900,000. Since the City’s share of ad valorem taxes is 9.54%, the City’s General Fund would realize additional revenues of approximately $66,000 per year (7.4% of the annual savings) and the City’s Municipal Lighting Fund would receive additional revenues of approximately $19,000 per year (2.1% of the annual savings). The total present value savings is approximately $16.4 million, based on current market conditions. It is a municipal bond market convention to measure the amount of present value savings as a percentage of the outstanding bonds, with a minimum savings of 3%-5% usually required to justify the cost and effort of undertaking a refunding. Under current market conditions, the savings generated by the proposed refunding would be 22% of the outstanding 2009 Bonds. Actual savings will be determined by market conditions at the time of the bond sale. Bond issuance fees and costs associated with the refunding are contingent upon the successful sale of the 2016 Bonds and sufficient savings at the time of bond closing. However, as provided in the accompanying Resolution, if the Successor Agency is unable to complete the issuance of the Refunding Bonds for any reason, the Successor Agency is entitled to recover all of its costs incurred related to the refunding from property tax revenues pursuant to Section 34183 of the Government Code, without reduction in its Administrative Cost Allowance. Payment of such costs under such circumstances would reduce the share of residual property tax revenue received by the City. ATTACHMENTS: 1. Proposed Resolution 2. Indenture of Trust 3. Escrow Agreement 4. Debt Service Savings Analysis - Bond Refunding Plan Page 11  AGENDA April 27, 2016 7:00 PM Presenter(s): Chet Simmons 6. LEGISLATIVE ITEMS - None. 7. COMMISSION AND COMMITTEE ITEMS 7.1 Request for Parking Restrictions on Palomar Street to the North of Kiowa Road - T.C. 89-104 The Traffic Commission recommends that the Mayor and City Council adopt a Resolution entitled, “A Resolution of the Mayor and City Council of the City of Westminster Providing for the No Parking or Stopping at a Certain Location on the East Side of Palomar Street, North of Kiowa Road”. Presenter(s): Marwan Youssef 8. BUSINESS MATTERS FROM CITY COUNCIL/AGENCY MEMBERS Page 12  AGENDA April 27, 2016 7:00 PM 8.1 Consideration of Waiving Facility Fees for the Board of Equalization. Council Member Diep recommends that the Mayor and City Council consider the Board of Equalization’s request to waive fees for use of the East/West Room at the Community Services Building to hold a free seminar on April 29, 2016 and a free workshop on May 6, 2016. Body BACKGROUND/DISCUSSION: The Board of Equalization (BOE) is not able to sign the required City forms for the Administrative Fee Waiver, as they do not have facilities to reciprocate use. The reciprocal use is a requirement for Government agencies to be eligible for an Administrative Fee Waiver. As a result, Council Member Diep is requesting the use of city facilities on behalf of the BOE. The first request is for a free seminar and resource fair offered to all Central Orange County Small Businesses. The date for this seminar is Friday, April 29, 2016 from 7:30 a.m. to 2:30 p.m. in the East/West Room of the Community Services Building. The second request is for a Central Orange County Tax workshop offered to Nonprofit and Exempt Organizations. This free workshop will be held on Friday, May 6, 2016 from 9:00 a.m. to 12:30 p.m. in the West Room. Both requests include set up and clean up times. The combined amount for both requests is $720 rental fees and cleaning deposits of $450. The organization will be asked to pay $150 for the set up fees. FISCAL IMPACT: Facility rental revenue of $720 will be waived. ATTACHMENTS: Agreements for Use of Facilities Administrative Fee Waiver Policy FY 15/16 Government Agency and Non-Profit Organization Fee Waivers Presenter(s): Diana Dobbert 9. COMMENTS FROM CITY COUNCIL/AGENCY MEMBERS (Including AB 1234 Report when required). Page 13  AGENDA April 27, 2016 7:00 PM 10. COUNCIL ADJOURNMENT: To a Regular Meeting on Wednesday, May 11, 2016 at 7:00 p.m. in the Council Chambers. ____________________________ Amanda Jensen, CMC, City Clerk Page 14