Regular Meeting Minutes – May 16, 2022
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A Regular Meeting of the City Council of the City of Big Bear Lake was called to order by Mayor Herrick at 6:00 p.m., Monday, May 16, 2022, at the Civic Center, 39707 Big Bear Boulevard, Big Bear Lake, California.
OPEN SESSION
Flag Salute: Flag Salute led by Mayor Pro Tem Mote
Invocation: Invocation was led by Jim Lona, Commander of American Legion Post 584.
Councilmembers Present: Mayor Rick Herrick
Mayor Pro Tem Bynette Mote
Councilmember Alan Lee
Councilmember Perri Melnick
Councilmember Randall Putz
Others Present: Jeff Mathieu, Interim City Manager
Erica Stephenson, City Clerk
Stephen P. Deitsch, City Attorney
PRESENTATIONS
• Presentation by Mayor Rick Herrick and Jim Lona, Commander of American Legion Post 584, of the City’s Burial Flag that will be on display in Hofert Hall. • Presentation made by Nick Cargill, a representative for the Big Bear Workforce Housing Initiative, informing the community of an opportunity for homeowners to convert their vacation rental properties into long-term rentals.
• Presentation by the Economic Development Advisory Committee highlighting their proposed work program.
• Presentation by Scott Surico, Bear Valley Community Hospital District Education Coordinator, regarding Stroke Awareness Month and highlighting programs offered by the Hospital District for those who experience stroke-like symptoms in Big Bear Valley.
PUBLIC COMMUNICATIONS
Kendi Segovia, Big Bear Lake resident, stated she is confused as to why Councilmember Lee voted against ordering the Economic Impact Report because she feels understanding the facts related to the impact of limiting vacation rentals and number of rental contracts is important because the Initiative could potentially affect the local economy and everyone in the City.
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Sandy Steers, Big Bear resident, stated that the Northshore parcel popularly known as “Moon Camp” is one of the top 25 parcels in the Country that is eligible to potentially receive Land and Water Conservation Funding; indicated that if awarded, the US Forest Service would attempt to acquire the parcel; requested that the City Council sign a letter of support in an effort to receive said funds and help preserve this property.
Motion made by Mayor Herrick, seconded by Councilmember Putz, to add a last minute agenda item for consideration in relation to a Letter of Support for the “Moon Camp” parcel to be included in the Land and Water Conservation Fund.
AYES: Lee, Mote, Melnick, Putz, Herrick
NOES: None
ABSTAIN: None
ABSENT: None
1. PUBLIC HEARING
1.1 CONTINUANCE OF APPEAL OF PLANNING COMMISSION DECISION TO DENY MINOR MODIFICATION 2021-136, NOON LODGE REQUEST FOR LARGE OUTDOOR GATHERINGS AT 214 LAGUNITA LANE (APN 307-061-27)
City Council considered a continuance of a public hearing on Appeal Application 2022-055, an appeal of the Planning Commission’s denial of a request by Noon Lodge to host large outdoor gatherings, including weddings, receptions and other events for up to 75 persons. The City Council was asked to consider placing this Public Hearing item on the July 18, 2022 City Council Regular Meeting Agenda.
At the hour of 6:36 p.m., Mayor Herrick opened the Public Hearing and the following individuals approached Council:
Sharon Witek, Big Bear Lake resident, questioned the continuance of the public hearing because she indicated that the Noon Lodge would not be able to adhere to the conditions of hosting events such as weddings, due to insufficient property size and lack of adequate parking; she also provided examples of the neighborhood nuisances she feels are caused by events held at Noon Lodge.
Robert Witek, Big Bear Lake resident, indicated that the Noon Lodge is interrupting the familyfriendly lifestyle they were hoping for in Big Bear Lake, due to the public nuisances the Noon Lodge events are causing in his neighborhood.
A motion was made by Mayor Pro Tem Mote, seconded by Councilmember Melnick, to approve the continuance of the Public Hearing until Monday, July 18, 2022 at 6 p.m.
Dalton Gerlach, Owner/Operator of the Noon Lodge, stated the reasons for the request to continue the public hearing and said he hopes the Council will approve the continuance to July 18, 2022.
Prior to the vote, Council engaged in a discussion regarding the described nuances and the impacts of approving the continuance request.
At the hour of 6:50 p.m., the Public Hearing was closed.
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Said motion was approved by the following vote:
AYES: Melnick, Mote, Lee, Putz, Herrick
NOES: None
ABSTAIN: None
ABSENT: None
2. DISCUSSION/ACTION ITEMS
2.1 VERIFICATION OF SUFFICIENCY OF SIGNATURES FOR PETITION ENTITLED “INITIATIVE MEASURE AMENDING THE CITY’S MUNICIPAL CODE TO LIMIT THE
NUMBER OF VACATION RENTAL LICENSES AND RENTAL CONTRACTS IN THE
CITY AND TO ENACT ADDITIONAL LIMITATIONS AND REGULATIONS ON VACATION RENTALS” AND CONSIDERATION OF ADDITIONAL COUNCIL ACTIONS
RELATED TO THE INITIATIVE
City Council considered accepting a Certificate of Sufficiency of Initiative Petition from the San Bernardino County Registrar of Voters (ROV). The City Council also discussed and provided input related to their options under Elections Code sections 1405 and 9215 which included: a) adopt the Measure, without alteration, at this meeting, or within 10 days after, b) submit the Measure to the voters at the next regular municipal election occurring at least 88 days later, c) submit the Measure to the voters at a special municipal election occurring on a Tuesday between 88 and 103 days after the City Council calls the election or, d) direct staff to prepare an impartial and informational report analyzing the impact of the Measure on the City’s land use and development regulations, finances, ability to provide public services, and the like. In addition, City Council discussed and considered possible actions related to an alternative proposal for limiting vacation rentals by adoption of an amendment to the Development Code Chapter 4.01 to establish new permanent regulations for vacation rentals in Big Bear Lake.
Prior to Council discussion, Mayor Herrick invited up speakers who wanted to speak on this item. The following individuals approached Council:
Barbara Olsen, Big Bear resident: stated she is against restrictions to property rights as additional restrictions will severely impact the Big Bear Lake economy.
Colin Sarjeant, Big Bear Lake resident, spoke on behalf of Big Bear Lake United to clarify that the citizen-led committee is not anti-tourism or anti-vacation rental, they just want a vibrant, diverse economy that works for everyone; indicated that without limits to the vacation rental industry it has the potential to destroy the community; said the Citizen Initiative would bring back balance to the community and restore vacation rentals to their original concepts and will shift enforcement responsibility to the vacation rental owners and management companies as opposed to the property’s neighbors.
Jim Eakin, Big Bear resident, asked the public to consider what are the goals that are trying to be achieved with the proposed Initiative, how property rights would be infringed upon when voting for the Citizen Initiative and how the Village and other businesses would be affected if the number of vacation rental properties were limited.
Theodore Trentman, Big Bear resident, promoted his website, savetheresidents.com; said he feels threatened by Councilmember Lee and Big Bear United; indicated that second-home owners in the
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community are being treated like second-class citizens and should not be counted-out as they are also tax paying members of the community.
Johnny Wells, Big Bear resident, questioned if second-home owners in Big Bear Lake have been contacted to gauge their knowledge on what is going on in the community.
Mike Rotman, Big Bear Lake resident, asked the public and Council to consider that limiting the number of contracts per year on a vacation rental means less work for those that work in the rental industry such as the house cleaners; Mike encouraged second-home owners to gain understanding about their voter rights and indicated that they should look into the registration process to claim their domicile at their Big Bear Lake residence.
A motion was made by Councilmember Melnick, seconded by Mayor Pro Tem Mote, to receive, file and accept the Certificate of Sufficiency of Initiative Petition from the San Bernardino County Registrar of Voters (ROV).
Said motion was approved by the following vote:
AYES: Putz, Melnick, Mote, Lee, Herrick
NOES: None
ABSTAIN: None
ABSENT: None
At the hour of 7:13, Mayor Herrick called a short recess and recused himself from the remainder of the item due to a conflict of interest.
At the hour of 7:16 p.m., Mayor Pro Tem Mote reconvened the meeting and acted as presiding officer for the discussion regarding additional Council action in relation to the Citizen Initiative.
Prior to Council discussion on this item, Mayor Pro Tem Mote invited up speakers who wanted to speak on this item. The following individuals approached Council:
Annette Karnes, Big Bear Lake resident, spoke on behalf of the Big Bear Association of Realtors, questioned why realtors were not asked to participate in the last Ad Hoc Stakeholders meeting regarding vacation rental issues; asked that local realtors be considered to participate in any future Ad Hoc Committee meetings.
Jim Eakin, Big Bear resident, believes an Ad Hoc Committee to be important and urged Council to move forward with its formation; believes there needs to be adequate representation on the committee.
Following Council discussion, a motion was made by Councilmember Lee to designate the City Manager to work on negotiating a compromise with the proponents of the Citizen Initiative. Motion failed due to a lack of second.
A motion was made by Councilmember Melnick, seconded by Councilmember Putz, to form an Ad Hoc Committee in an effort to form a compromise with the proponents of the Citizen Initiative.
A substitute motion was made by Mayor Pro Tem Mote, seconded by Councilmember Putz, to form an Ad Hoc Committee and appoint Councilmember Melnick and Councilmember Putz as the two representative Councilmembers.
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Said substitute motion was approved by the following vote:
AYES: Putz, Mote, Melnick
NOES: Lee
ABSTAIN: Herrick
ABSENT: None
A motion was made by Councilmember Putz, seconded by Councilmember Melnick, allowing the Ad Hoc Committee to meet, draft a compromise and then bring the compromise back to the whole City Council with a suggestion/recommendation on how to proceed.
Said motion was approved by the following vote:
AYES: Mote, Melnick, Putz
NOES: Lee
ABSTAIN: Herrick
ABSENT: None
At the hour of 7:47 p.m., Mayor Pro Tem Mote called for a short recess.
At the hour of 7:51 p.m., Mayor Herrick reconvened the meeting and resumed as presiding officer for the remainder of the meeting.
2.2 POTENTIAL TRANSIENT OCCUPANCY TAX INCREASE
City Council received a presentation from a representative of Columbia Capital Management, LLC, regarding an analysis of Transient Occupancy Tax (TOT) and a proposed increase in the City’s rate.
The City Council engaged in further discussions regarding a proposed increase in the City’s TOT rate and provided direction to staff related to preparing the necessary documents required to place a measure increasing the City’s TOT rate, on the November 8, 2022 ballot.
Following initial Council questions and discussion, Mayor Herrick invited up speakers who wanted to speak on this item. The following individuals approached Council:
Johnny Wells, Big Bear resident, wants to make sure the City will be on top of enforcing illegal rentals that are not enrolled in the City’s vacation rental program to ensure all rentals are remitting TOT.
Christy Brewster, Big Bear resident/business owner, indicated that traditional lodging occupancy rates have declined due to the increasing popularity of vacation rentals; believes a 4 percent increase in TOT will have a negative impact on tourism in Big Bear Lake; requested that Council consider a two-tier system where traditional lodging’s TOT increase is half of the TOT increase applied to vacation rental homes.
Jeff Holoubek, Big Bear Lake resident, believes the TOT study does not provide enough useful information in order for the Council to make an informed decision and indicated in his opinion the study seems incorrect in its conclusion.
Mike Rotman, Big Bear Lake resident, stated that visitors are paying attention to the difference in tax rates and use that information to make an informed decision on where they stay; does not agree with the cities that were compared to Big Bear Lake within the study.
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Robert Manning, Big Bear resident/investor, asked that Council take the present state of the declining economy into consideration when contemplating to raise the TOT rate.
Loren Hafen, Big Bear Lake resident, discussed the history of the TOT rate fluctuations in Big Bear Lake and stressed the importance of marketing.
Dalton Gerlach, Owner/Operator of the Noon Lodge, believes there is a lot of information that is missing from the study that needs to be addressed.
Theodore Trentman, Big Bear resident, said that the City needs to better engage with visitors and residents alike to get a better idea of what is needed and wanted between the two groups.
Erin Lonza, Big Bear City resident, believes that raising the TOT rate will drive the remaining visitors away.
Following Council discussion, a motion was made by Councilmember Putz to move forward with a ballot measure including a one (1) percent increase to TOT. Motion failed due to a lack of second.
A motion was made by Councilmember Melnick, seconded by Councilmember Putz, to move forward with a ballot measure including a one and a half (1.5) percent increase to TOT.
Following further Council discussion, a substitute motion was made by Mayor Herrick, seconded by Councilmember Lee, to move forward with a ballot measure that would raise TOT by two (2) percent for non-traditional lodging facilities and raise TOT by one (1) percent for traditional lodging facilities.
Said motion was approved by the following vote:
AYES: Melnick, Lee, Herrick
ANOES: Putz, Mote
ABSTAIN: None
ABSENT: None
2.3 RESOLUTION ACCEPTING AN EXTENSION TO THE DUE DILIGENCE PERIOD FOR
THE GROUND LEASE WITH BEAR VALLEY MUTUAL WATER COMPANY AND
APPROVING A BUDGET APPROPRIATION AND ASSOCIATED AGREEMENTS FOR
THE CONTINUED DUE DILIGENCE EFFORT
City Council considered a resolution authorizing an extension of the due diligence period associated with the ground lease with Bear Valley Mutual Water Company as well as a budget appropriation and the agreements associated with the continued due diligence effort. On November 1, 2021, the City Council approved a 99-year ground lease for approximately 19-acres of lakeside property from Bear Valley Mutual Water Company and the agreement was executed on December 8, 2021. The agreement included a six-month due diligence period for the City to undertake all necessary inspection and evaluation of the property to determine whether it will proceed with the lease agreement and that period expires on June 8, 2022. In the recent weeks, staff identified additional due diligence activities to complete and approached Bear Valley Mutual Water Company, through legal counsel, about a possible extension of the due diligence period. Bear Valley Mutual Water Company graciously offered to extend the due diligence period through July 2022 for no additional fee or consideration; staff recommended that the City Council accept the extension. Furthermore, staff sought a budget appropriation and the approval of two associated agreements to complete additional due diligence activities before the updated deadline at the end of July 2022.
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Following initial Council questions and comments, Mayor Herrick invited up speakers who wanted to speak on this item. The following individual approached Council:
Jim Hart, Big Bear Lake resident, made comments and asked questions related to the possible relocation of the Leisure Bear Mobile Home Park residents.
A motion was made by Mayor Pro Tem Mote, seconded by Councilmember Melnick to approve staff’s recommendation and adopt the following resolution entitled:
RESOLUTION NO. 2022-49
RESOLUTION ACCEPTING AN EXTENSION TO THE DUE
DILIGENCE PERIOD FOR THE GROUND LEASE WITH BEAR
VALLEY MUTUAL WATER COMPANY AND APPROVING A
BUDGET APPROPRIATION AND ASSOCIATED AGREEMENTS
FOR THE CONTINUED DUE DILIGENCE EFFORT
Said motion was approved by the following vote:
AYES: Melnick, Lee, Putz, Mote, Herrick
NOES: None
ABSTAIN: None
ABSENT: None
Due to time constraints, Mayor Herrick requested that the newly-added agenda item be discussed prior to Item 2.4.
2.6 LETTER OF SUPPORT FOR THE “MOON CAMP” PARCEL TO BE INCLUDED IN THE
LAND AND WATER CONSERVATION FUND
A motion was made by Councilmember Putz, seconded by Mayor Pro Tem Mote, to approve a Letter of Support for the “Moon Camp” parcel to be included in the Land and Water Conservation Fund.
Said motion was approved by the following vote:
AYES: Lee, Mote, Putz, Melnick, Herrick
NOES: None
ABSTAIN: None
ABSENT: None
2.4 FY 2022-23 PROPOSED BUDGET AND 5-YEAR CAPTIAL REPLACEMENT/
IMPROVEMENT PLAN
City Council received a presentation of the City’s proposed FY 2022-23 Budget and 5-Year Capital Replacement Improvement Plan by Kelly Ent, Director of Administrative Services. City Council also considered authorizing a few budget related items, such as an amendment to the law enforcement contract proposed to include an additional deputy for weekend coverage in FY 2022-23 and setting public hearings for proposed City Sewer and Refuse Rates as well as Big Bear Area Wastewater Agency (BBARWA) pass through charges included in the budget document.
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Following initial Council questions and discussion, a motion was made by Councilmember Putz, seconded by Councilmember Melnick, to authorize the execution of the FY 2022-23 Law Enforcement Service Contract Amendment No. 30.
Said motion was approved by the following vote:
AYES: Melnick, Putz, Lee, Mote, Herrick
NOES: None
ABSTAIN: None
ABSENT: None
A motion was made by Councilmember Putz, seconded by Councilmember Melnick, to authorize staff to proceed with the BBARWA pass through pursuant to the City’s ordinance (capped at 5%) and absorb the additional 1.5%.
Said motion was approved by the following vote:
AYES: Lee, Melnick, Mote, Putz, Herrick
NOES: None
ABSTAIN: None
ABSENT: None
2.5 FY 2022-23 DEPARTMENT OF WATER BUDGET PRESENTATION
City Council did not discuss this item; Council agreed that the Department of Water and Power FY 2022-23 Budget will be brought back for discussion at a future Special Meeting.
3. COMMENTS, ANNOUNCEMENTS & ADDITIONAL CITY BUSINESS
3.1 CITY CLERK, CITY ATTORNEY, CITY MANAGER COMMENTS
None.
3.2 COUNCILMEMBER BOARD/COMMITTEE REPORTS & COMMENTS
Mayor Pro Tem Mote stated that the Economic Development Advisory Committee (EDAC) is looking forward to City Council’s direction in regard to their proposed work plan.
Councilmember Lee paid his respects to the victims of the mass shooting in Buffalo, New York.
ADJOURNMENT
There being no further business to come before the Council at this Open Session, Mayor Herrick adjourned the meeting at 9:57 p.m.
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Erica Stephenson, City Clerk