INDEX
TORRANCE CITY COUNCIL-DECEMBER 19, 2023
SUBJECT PAGE
1 .
2. 3.
4 .
5 .
6. 6A.
6B.
6C.
6D.
6E.
6F.
7. 8.
8A.
8B.
8C.
BD.
BE.
BF.
8G.
9. 9A.
9B.
9C.
9D.
9E.
9F.
9G.
9H.
OPENING CEREMONIES
Call to Order/Roll Call 1
Flag Salute/Invocation 1
Affidavit of Posting/Waive Further Reading 1-2
Withdrawn, Deferred or Supplemental Items 2
Council Committee Meetings and Announcements 2
COMMUNITY MATTERS
RESOLUTION NO. 2023-116 honoring Fire Engineer Brandi Cumin 2 RESOLUTION NO. 2023-117 honoring Fire Engineer Robert Sawai 2 RESOLUTION NO. 2023-118 honoring Michael Smith 2
RESOLUTION NO. 2023-119 honoring Teresa Browning 1
RESOLUTION NO. 2023-120 honoring Dorothy Ellis 3
Recognition of the El Camino College Men's Soccer Team 1 ORAL COMMUNICATIONS 3
CONSENT CALENDAR
Approve City Council Minutes 3
Approve Eighth Amendment to Concession Agreement for Las Canchas Tennis Facility and Adopt CEQA Guidelines Section 15301 -Existing Facilities (Class 1) 3
Approve Second Amendment to Contract Services Agreement for Fire Station 4 Renovation 4
Appropriate Funds and Authorize Change Order #1 to Purchase Orders for Eleven (11) 2024 Ford F-350 XL Vehicles 4
Appropriate Funds and Approve First Amendment to Consulting Services Agreement for Facility Assessment Services 4
Approve and Concur with Committee's Recommendation of the 2023-2024 Priority Projects and Federal Legislative Trip 4 Approve Amendments to Measure R Funding Agreements with the Los Angeles County Metropolitan Transportation Authority (LACMTA) 5
ADMINISTRATIVE MATTERS
Appropriate Funds and Approve Sixth Amendment to Fee Agreement for Legal Services 5
Discuss and Provide Direction on Commission Appointment Process 6-7 Approve First Amendment to Lease with West Basin Municipal Water District and Adopt RESOLUTIONS Approving Covenant and Agreement Regarding Storm Drain/Channel Over-Build and Grant of Easement for Electrical Supply Systems and Communication Systems on a portion of Lago Seco Park Located at the Northwest Corner of 238th Street and Ocean Avenue (APN: 7529-017-903) 7-8
Provide Direction on Various Revenue Enhancement Opportunities 8-10 Accept and File Fiscal Year 2023-24 First Quarter Budget Review Report 10 Accept and File Fiscal Year 2023-24 First Quarter Investment Portfolio Report 10-11
Provide Direction Regarding Fiscal Year 2024-25 Operating Budget and Capital Improvement Plan Priorities 11
Adopt ORDINANCE and URGENCY ORDINANCE Amending the
Torrance Municipal Code (TMC) to Define the Term "Flight School" and Limit the Number of Business Licenses for Flight Schools Permitted in the Aleksander Alderete
Minutes Secretary
City Council
December 19, 2023
City, Determine this is Not a Project Under CEQA or Alternatively Adopt CE QA Exemption 11-12
91. Adopt Findings of Fact and Conclusions of Law in the Appeal of Sling Pilot Academy 12
10. HEARINGS
11 . AGENCY AGENDAS
12. SECOND READING ORDINANCES
13. COUNCIL ORAL COMMUNICATIONS 12
14. CLOSED SESSION 1, 3
15. ADJOURNMENT 12
At 11 :43 p.m., the City Council adjourned to Tuesday, January 9, 2024, at 5:00 p.m. for closed session, with regular business commencing at 6:30 p.m. in the Council Chamber. Tuesdays, December 26, 2023 and January 2, 2024 are Council Dark Nights.
Aleksander Alderete
Minutes Secretary
City Council
December 19, 2023
MINUTES OF AN ADJOURNED REGULAR MEETING
OF THE TORRANCE CITY COUNCIL
1. CALL TO ORDER
December 19, 2023
The Torrance City Council convened in an adjourned regular meeting on December 19, 2023 at 5:00 p.m.
ROLL CALL
Present:
Absent:
Present:
Councilmembers Griffiths, Kaji, Kalani, Mattucci, Sheikh, and Mayor Chen Councilmember Lewis
City Manager Chaparyan, City Attorney Sullivan,
City Clerk Rebecca Poirier and
other staff representatives
On Tuesday, December 19, 2023, subsequent to the posting of the agenda, on Saturday, December 16, the City Attorney received notice of an ex-parte application hearing on Thursday, December 21, 2023 in the case of Sling Flying Club DBA Sling Pilot Academy v. City of Torrance, et al., Case Number 23STCP0453. The City will not meet again until January 9, 2024, and the City Attorney requires immediate instruction from the City Council. Because time is of the essence in this matter, the City Attorney requests that the City Council consider discussing this matter in closed session this evening. In order to take action on a matter that is not on the agenda, California Government Code requires a determination by a two-thirds majority vote of the Council that immediate action is necessary and that the need to take action arose subsequent to the posting of the agenda. Do I have a motion?
MOTION: Councilmember Griffiths moved to add the item to the closed session agenda, Councilmember Mattucci seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
The City Council will consider this item as part of tonight's closed session agenda as Item 14B.2, pursuant to Government Code Section 54956.9(0)(1) Conference with Legal Counsel -Existing Litigation.
Agenda item 14 was considered out of order at this time.
14. CLOSED SESSION
The City Council immediately recessed to closed session to confer with the City Manager and the City Attorney on agenda matters listed under 14A) Conference with Labor Negotiator, 14B) Conference with Legal Counsel -Existing Litigation -Litigation pursuant to California Government Code §54957.6 and California Government Code §54956.9(d)(1).
The City Council reconvened in public session at 6:30 p.m. No formal action was taken on any item considered in closed session.
Aleksander Alderete
Minutes Secretary
City Council
December 19, 2023
2. FLAG SALUTE/ INVOCATION
The flag salute was led by Councilmember Kalani.
The non-sectarian invocation was given by Councilmember Chen.
Items 6D and 6F were taken out of order at this time.
6F. RECOGNITION OF THE EL CAMINO COLLEGE MEN'S SOCCER TEAM 6D. RESOLUTION NO. 2023-119 HONORING TERESA BROWNING
RESOLUTION NO. 2023-119 honoring Teresa Browning upon her retirement from the City of Torrance after thirty-eight years of service.
MOTION: Councilmember Griffiths moved to adopt Resolution No. 2023-119.
Councilmember Mattucci seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
3. REPORT OF CITY CLERK ON POSTING OF THE AGENDA/ MOTION TO
WAIVE FURTHER READING
City Clerk Rebecca Poirier reported that the agenda was posted on the Public Notice Board at 3031 Torrance Boulevard and on the City's website on Thursday, December 14, 2023.
MOTION: Councilmember Kalani moved that after the City Clerk has read aloud the number and title of any resolution or ordinance on the meeting agenda, the further reading thereof shall be waived, reserving and guaranteeing to each Council member the right to demand the reading of any such resolution or ordinance in regular order. The motion was seconded by Councilmember Kaji and passed by 6-0 with Councilmember Lewis absent.
4. WITHDRAWN , DEFERRED OR SUPPLEMENTAL ITEMS
Supplemental material was available for items 98, 9D, and Oral Communications.
5. COUNCIL COMMITTEE MEETINGS AND ANNOUNCEMENTS
Mayor Chen reminded the public that the Rental Relief Program application window was now open.
Councilmember Kaji received concurrence to investigate having a Shohei Ohtani Day in Torrance.
City Clerk Poirier relayed to the public that there was an unscheduled vacancy on the Planning Commission and that Torrance was accepting applications. Applicants must be certified and be registered voters.
Social Services Commissioner Debra Bickford discussed the Greater Los Angeles Homeless Count.
Environmental Quality and Energy Conservation Commissioners Love and Safarian discussed the Climate Smart Award Program.
Aleksander Alderete
Minutes Secretary 2
City Council
December 19, 2023
6. COMMUNITY MATTERS
6A. RESOLUTION NO. 2023-116 HONORING FIRE ENGINEER BRANDI CUMIN RESOLUTION NO. 2023-116 honoring Fire Engineer Brandi Cumin upon her retirement from the City of Torrance after twenty-five years of service.
MOTION: Councilmember Kalani moved to adopt Resolution No. 2023-116.
Councilmember Mattucci seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
6B. RESOLUTION NO. 2023-117 HONORING FIRE ENGINEER ROBERT SAWAI RESOLUTION NO. 2023-117 honoring Fire Engineer Robert Sawai upon his retirement from the City of Torrance after twenty-five years of service.
MOTION: Councilmember Kalani moved to adopt Resolution No. 2023-117.
Councilmember Sheikh seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
6C. RESOLUTION NO. 2023-118 HONORING MICHAEL SMITH
RESOLUTION NO. 2023-118 honoring Michael Smith upon his retirement from the City of Torrance after thirty-eight years of service.
MOTION: Councilmember Sheikh moved to adopt Resolution No. 2023-118.
Councilmember Kalani seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
6E. RESOLUTION NO. 2023-120 HONORING DOROTHY ELLIS
RESOLUTION NO. 2023-120 honoring Dorothy Ellis upon her retirement from the City of Torrance after forty-two years of service.
MOTION: Councilmember Griffiths moved to adopt Resolution No. 2023-120.
Councilmember Sheikh seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
7. ORAL COMMUNICATIONS
Members of the p·ublic spoke.
14. CLOSED SESSION
The City Coun ci I re-entered closed session at 7: 19 p. m. to confer on matters listed earlier.
The City Council returned from closed session at 8:01 p.m.
There were no formal actions taken.
8. CONSENT CALENDAR
SA. APPROVE CITY COUNCIL MINUTES
Aleksander Alderete
Minutes Secretary 3
City Council
December 19, 2023
Recommendation of the City Clerk that City Council approve the City Council minutes of November 28, 2023.
88. APPROVE EIGHTH AMENDMENT TO CONCESSION AGREEMENT FOR LAS
CANCHAS TENNIS FACILITY AND ADOPT CATEGORICAL EXEMPTION UNDER
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES SECTION 15301 -EXISTING FACILITIES (CLASS 1)
Recommendation of the Community Services Director that City Council:
1) Approve an eighth amendment to the concession agreement with South Bay Tennis Center of Torrance, CA (C2008-243) for the lease and full operation of the Las Canchas Tennis Facility and to extend the term for a five-year period beginning January 1, 2024 and ending December 31, 2028; and
2) Adopt a finding that the project is categorically exempt under the California Environmental Act (CEQA) pursuant to State CEQA Guidelines Section 15301 - Existing Facilities (Class 1) and that there are no features that distinguish this project from others in exempt class, and therefore, there are no unusual circumstances.
Councilmember Sheikh and Community Services Director John La Rock discussed designation of the organization, and the audited reports that Torrance receives that are part of the contract. They further elaborated on the nature of the park and what kind of discounts or perks residents get at the park and the facility. Community Services Director La Rock stated that just over 62K in revenue share. He overviewed the concessions on the agreement. They discussed who operates the facility and what kinds of ingress and egress were there.
Councilmember Griffiths commented that his observations of the facility were very good and he would be voting yes.
MOTION: Councilmember Sheikh moved to approve item 88. Councilmember Griffiths seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
BC . APPROVE SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT FOR FIRE STATION 4 RENOVATION
Recommendation of the General Services Director and Fire Chief that City Council approve a second amendment to the contract services agreement with Harry H. Joh Construction, Inc. of Paramount, CA (C2022-097) for Facility, Equipment, and Automation Plan (FEAP) 302 -Fire Station 4 Renovation to extend the term for a one-year period beginning January 1, 2024, and ending December 31, 2024.
Aleksander Alderete
Minutes Secretary 4
City Council
December 19, 2023
SD. PUBLIC WORKS AND GENERAL SERVICES -APPROPRIATE FUNDS AND AUTHORIZE CHANGE ORDER #1 TO PURCHASE ORDERS FOR ELEVEN (11) 2024 FORD F-350 XL VEHICLES
Recommendation of the Public Works Director and General Services Director that City Council:
1) Appropriate $16,654 from the Water Vehicle Replacement Fund's fund balance to the Water Vehicle Replacement Fund's fiscal year 2023-24 operating budget; and 2) Appropriate $14,397.59 from the Sewer Vehicle Replacement Fund's fund balance to the Sewer Vehicle Replacement Fund's fiscal year 2023-24 operating budget; and 3) Appropriate $55,866.37 from the Fleet Vehicle Replacement Fund's fund balance to the Fleet Vehicle Replacement Fund's fiscal year 2023-24 operating budget; and 4) Authorize change order #1 to the purchase order with National Auto Fleet Group of Watsonville, CA (PO #2023-00000381) in the amount of $16,654.00, for a new not-to- exceed amount of $454,520.89, for the purchase of three (3) 2024 Ford F-350 XL chassis with utility truck bodies; and
5) Authorize change order #1 to the purchase order with National Auto Fleet Group of Watsonville, CA (PO #2023-00000382) in the amount of $70,263.96, for a new not-to- exceed amount of $755,187.67, for the purchase of five (5) 2024 Ford F-350 XL chassis with dump truck bodies and three (3) 2024 Ford F-350 XL chassis with utility truck bodies.
Street Operations Manager Jason Baer, responding to Councilmember Sheikh, stated that there was an agreement for the 2023 models. He continued that they had to seek the models elsewhere, but there were none so they went for the 2024 models. He stated that they tried to get restitution but could not. City Attorney Sullivan interjected that due to unforeseen issues listed it was made unable to hold the company responsible for their reneging.
MOTION: Councilmember Sheikh moved to approve item 8D. Councilmember Kalani seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
BE. APPROPRIATE FUNDS AND APPROVE FIRST AMENDMENT TO CONSULTING
SERVICES AGREEMENT FOR FACILITY ASSESSMENT SERVICES
Recommendation of the General Services Director that City Council:
1) Appropriate $249,999 to Facility, Equipment, and Automation Plan (FEAP) 1153 - Land Management Signing Project; and
2) Approve a first amendment to the consulting services agreement with Kitchell/CEM, Inc. of Los Angeles, CA (C2023-062) in the amount of $249,999, for a new not-to- exceed amount of $469,062.46, to provide additional facility assessment services and extend the term for a one-year period beginning May 23, 2024, and ending May 22, 2025.
SF. APPROVE AND CONCUR WITH COMMITTEE'S RECOMMENDATION OF THE 2023- 2024 PRIORITY PROJECTS AND FEDERAL LEGISLATIVE TRIP
Recommendation of the City Council Federal Legislative Advocacy Committee that City Council approve and concur with the Committee's recommendation of the 2023-24 Priority Projects and Federal Legislative Trip to Washington D.C ..
Aleksander Alderete
Minutes Secretary 5
City Council
December 19, 2023
8G. APPROVE AMENDMENTS TO MEASURE R FUNDING AGREEMENTS WITH THE LOS
ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (LACMTA) Recommendation of the Public Works Director that City Council:
1) Approve Amendment No. 5 to Measure R Funding Agreement #MOU.MR312.23 with the Los Angeles County Metropolitan Transportation Authority (LACMTA) (C2013- 069) for Facility, Equipment, and Automation Plan (FEAP) 764 -Torrance Transit Park and Ride Regional Terminal Project to extend the lapsing date of fiscal year 2018-19 Measure R funds for an additional one-year_period beginning July 1, 2023 and ending June 30, 2024; and
2) Approve Amendment No. 5 to Measure R Funding Agreement #MOU.MR312.40 with LACMTA (C2014-056) for the Pacific Coast Highway at Vista Montana/Anza Avenue Intersection Improvements, T-154 to extend the lapsing date of fiscal year 2013-14 Measure R funds for an additional one-year period beginning Ju1y 1, 2023 and ending June 30, 2024; and
3) Approve Amendment No. 6 to Measure R Funding Agreement #MOU.MR312.10 with LACMTA (C2012-035) for the Pacific Coast Highway at Hawthorne Boulevard Intersection Improvements, T-131 to extend the lapsing date of fiscal year 2014-15 Measure R funds for an additional one-year period beginning July 1, 2023 and ending June 30, 2024; and
4) Approve Amendment No. 6 to Measure R Funding Agreement #MOU.MR312.60 with LACMTA (C2015-043) for the Crenshaw Boulevard from Del Amo Boulevard to Dominguez Street Improvements, T-157 to extend the lapsing date of fiscal year 2015- 16 Measure R funds for an additional one-year period beginning July 1, 2023 and ending June 30, 2024.
MOTION: Councilmember Kalani moved to approve the Consent Calendar except 8B and 8D. Councilmember Sheikh seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
9. ADMINISTRATIVE MATTERS
9A. APPROPRIATE FUNDS AND APPROVE SIXTH AMENDMENT TO FEE AGREEMENT
FOR LEGAL SERVICES
Recommendation of the City Attorney that City Council:
1) Appropriate $1,900,000 from the Airport Fund's fund balance to the Airport Fund's fiscal year 2023-24 operating budget; and
2) Approve a sixth amendment to the fee agreement with law firm Rutan & Tucker, LLP of Costa Mesa, CA (C2020-038) in the amount of $1,900,000, for a new not-to-exceed amount of $6,215,000, to provide legal services relating to the 2020 Los Angeles Regional Water Quality Control Board Order/Hi-Shear litigation.
City Attorney Sullivan introduced the item to the City Council.
Mayor Chen inquired if Torrance should be receiving more. City Attorney Sullivan responded that they were working to get more reimbursement. He described some of the issues that staff has been working on.
Members of the public spoke .
Aleksander Alderete
Minutes Secretary 6
City Council
December 19, 2023
Councilmember Kaji and City Attorney Sullivan discussed the history of events.
MOTION: Councilmember Mattucci moved to approve item 9A. Councilmember Kaji seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent. 9B . DISCUSS AND PROVIDE DIRECTION ON COMMISSION APPOINTMENT PROCESS Recommendation of the City Clerk that City Council:
1) Discuss and provide direction on the Commission Appointment process; and 2) Create a Policy and Procedure on the Commission Appointment process; and 3) Consider adopting an Ordinance to remove the inconsistency in Torrance Municipal Code versus the action of Mayor and Council.
City Clerk Poirier introduced the item to the City Council. She recounted the history of events leading up to the item and some of the methods she used to reach out. She overviewed some the paths the City Council could take.
Councilmember Griffiths stressed that it should not be overcomplicated. She stated that a big change should be that the mayor should not have sole power in the appointments. He continued that order of the candidates should be fixed so quasi-judicial should be first as they are the most important. He added the rest of the commissions could be done in random order. He stated there should be a kickback if there are not enough candidates, but that exceptions should be made for eligible incumbents.
Councilmember Kalani stated that she wanted a discussion on jumping from commission to commission. Councilmember Sheikh and City Clerk Poirier discussed the jumping from commissions when there is some expiring terms for those commissioners, which can cause issues ranging from commissioners waiting on commissions they actually want to issues with procedure and finances.
Councilmember Mattucci agreed that the ability for the mayor to unilaterally choose should be gone. He agreed with setting a sequence for the commissions. He stated that merging Traffic and Environmental would be beneficial. He continued that there should not be punishing of those that have served the city and to not be hasty on punishing those who may be considering jumping commissions. He and City Clerk Poirier discussed the process of merging commissions.
Councilmember Griffiths recounted his own process of being restricted on commission switching and explained his process on how to fix that. He reiterated that they should not be appointing people to commissions when there is not enough selection pool.
Councilmember Kaji was in favor of full disclosure of candidates so that if there was something that would disqualify them, then it would be known to all.
Members of the public spoke.
MOTION: Councilmember Griffiths moved to take away ability for the mayor to unilaterally appoint. Councilmember Sheikh seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
MOTION: CouncHmember Griffiths moved to create a written procedure for the sequence of Planning, Civil Service, Environmental, Historic Preservation, and then the rest would be Aleksander Alderete
Minutes Secretary 7
City Council
December 19, 2023
random. Councilmember Mattucci seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
MOTION: Councilmember Kaji moved to have applications have criminal disclosures.
Councilmember Kalani seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
MOTION: Councilmember Martucci moved to start the process of merging the Traffic and Environmental Commissions. Councilmember Kaji seconded the motion. The motion carried by a vote of 4-2 with Councilmember Griffiths and Councilmember Sheikh voting no, and Councilmember Lewis absent.
MOTION: Councilmember Griffiths moved to have at least 1 more applicant than seats so nobody would get a position by default. Councilmember Kalani seconded the motion. The motion failed by a vote of 3-3 with Councilmember Sheikh, Councilmember Mattucci and Mayor Chen voting no, and Councilmember Lewis absent.
Mayor Chen, Councilmember Griffiths and Mayor Chen discussed the procedure on unscheduled vacancies. Councilmember Mattucci commented that 90 days would give better timing.
MOTION: Councilmember Kalani moved to include that if someone wants to change commissions, that they give an adequate enough time so their position can be filled during the next appointment process. Councilmember Griffiths seconded the motion. The motion carried by a vote of 5-1 with Councilmember Sheikh voting no, and Councilmember Lewis absent. 9C. APPROVE FIRST AMENDMENT TO LEASE WITH WEST BASIN MUNICIPAL WATER
DISTRICT AND ADOPT RESOLUTIONS APPROVING COVENANT AND AGREEMENT
REGARDING STORM DRAIN/CHANNEL OVER-BUILD AND GRANT OF EASEMENT
FOR ELECTRICAL SUPPLY SYSTEMS AND COMMUNICATION SYSTEMS ON A
PORTION OF LAGO SECO PARK LOCATED AT THE NORTHWEST CORNER OF 238TH STREET AND OCEAN AVENUE (APN: 7529-017-903)
Recommendation of the City Manager that City Council:
1) Approve First Amendment to Lease with West Basin Municipal Water District (C2021-039) for the Lago Seco Park Recycle Water Pump Station Project; and 2) Adopt a RESOLUTION approving a Covenant and Agreement Regarding Storm Drain/Channel Over-Build to Los Angeles County Flood Control District (LACFCD); and 3) Adopt a RESOLUTION approving a Grant of Easement to Southern California Edison (SCE) for electrical supply systems and communications systems on a portion of Lago Seco Park Located at the Northwest Corner of 238th Street and Ocean Avenue (APN: 7529-017-903).
Management Associate Carlos Huizar introduced the item to the City Council.
Members of the public spoke.
Public Works Shin Furukawa stated that the water in this is not for drinking water but is used for other purposes.
Aleksander Alderete
Minutes Secretary 8
City Council
December 19, 2023
City Clerk Poirier read the number and title for Resolution No. 2023-121 A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF TORRANCE AUTHORIZING AND DIRECTING THE
MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO A COVENANT AND AGREEMENT REGARDING STORM DRAIN/CHANNEL OVER-BUILD [PALOS VERDES - WALTERIA DRAIN] FOR THE BENEFIT OF LOS ANGELES COUNTY FLOOD CONTROL DISTRICT.
City Clerk Poirier read the number and title for Resolution No. 2023-122 A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF TORRANCE AUTHORIZING AND DIRECTING THE
MAYOR TO EXECUTE ANO THE CITY CLERK TO ATTEST TO A GRANT OF EASEMENT TO
SOUTHERN CALIFORNIA EDISON FOR ELECTRICAL SUPPLY SYSTEMS AND COMMUNICATION SYSTEMS.
MOTION: Councilmember Kaji moved to adopt Resolution No. 2023-121 and 2023-122.
Councilmember Griffiths seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
The City Council went to recess at 9:20 p.m. The City Council returned from recess at 9:30 p.m.
MOTION: Councilmember Mattucci moved to reconsider item 9C. Councilmember Sheikh seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent.
MOTION: Councilmember Kaji moved to revise the motion to include approving item 1 in item 9C, and adopt Resolution No. 2023-121 and 2023-122. Councilmember Sheikh seconded the motion. The motion carried by a vote of 6-0 with Councilmember Lewis absent. 9D. PROVIDE DIRECTION ON VARIOUS REVENUE ENHANCEMENT OPPORTUNITIES Recommendation of the Finance and Governmental Operations Committee that City Council:
1) Provide direction to staff on initiating the process for a proposed increase of one-half of one percent (0.5%) to the uniform occupancy tax rate of the City of Torrance; and 2) Provide direction to staff on initiating the process for a proposed increase of five percent (5%) to the business license tax rate of the City of Torrance.
Council member Kaji introduced the item to the rest of the City Council.
Assistant Finance Director Ian Dailey, using slides, overviewed the occupancy tax, utility user's tax, business license tax, documentary transfer tax, and oil industry business license tax.
Mayor Chen and Assistant Finance Director Dailey discussed how El Segundo, a smaller city, managed to get such a large business license tax revenue in FY21-22. It was mainly about the rates in the particular communities. City Manager Chaparyan listed some factors such as the airport, high density buildings including office buildings, refinery, etc.
Councilmember Mattucci suggested the 12% to keep in line with other South Bay cities in the occupancy tax. City Manager Chaparyan explained that there were long term leases with airlines, then there may be an impact on them. Mayor Chen interjected that it was to get Torrance a competitive advantage. Councilmember Mattucci stressed keeping things as business friendly as possible. He added that the key question was what the city would be using the added revenues Aleksander Alderete
Minutes Secretary 9
City Council
December 19, 2023
for. He continued that the unfunded pension liabilities were paramount in tackling. He stated that the revenues may look attractive but there was reasonable hesitation. He elaborated that SST saved many positions in the city but that it does not address the unfunded pension debt. He stated that he was a no on the business license tax, keep utilities tax as is, and the only thing that should be looked at is the occupancy tax, documentary transfer tax. He stated that oil industry business license tax should be looked at more closely.
Councilmember Griffiths reiterated his position on the various taxes. He stated that occupancy tax does not have to be that high and raising it would not be prudent considering the SST implementation. He added that it would affect business in Torrance negatively. He was against user utility tax, business license tax, oil industry tax. He stated that the oil refining company in Torrance has been a good business to Torrance and that was a reason he was against taxing oil more. He was okay with keeping the documentary transfer tax as is.
Councilmember Sheikh reiterated his support for business. He discussed the responsibilities of documentary transfer tax with Assistant Finance Director Dailey. They discussed the business license tax, and the number of licenses in the cities mentioned. They further elaborated on how the numbers for business license tax written in the st ides by staff came to be.
Councilmember Kaji explained the consequences of cities that are not able to fund pension liabilities. He implored that priority needs to be placed on paying down the pension liabilities, since the negative consequences compound every year.
Councilmember Mattucci, Councilmember Sheikh, City Clerk Poirier and Assistant Finance Director Dailey discussed the procedure on determining costs and ballot initiatives.
Councilmember Kalani inquired about the sunsetting of Measure H. City Manager Chaparyan stated that it would expire in 2027. He elaborated on the steps staff has taken to take advantage of various taxes from the state level, and how much it would generate per year.
Responding to Councilmember Sheikh, City Manager Chaparyan stated there was no sunset of SST unless the vote of people changed that.
Members of the public spoke.
Mayor Chen stated that Torrance needs a competitive advantage, which would mean a lower tax rate. He noted that the unfunded liabilities were important, so the city needed ways to increase revenues.
Councilmember Kalani stated that she would not support increases to the occupancy tax.
She added that the refinery was beneficial and should not be increased with taxes.
Councilmember Mattucci suggested putting this through the ad hoc committee with experts in the field. He added that they could broaden the search and have a scope on where the revenue will go.
Councilmember Kaji stated that this was not the only path for Torrance, but that it was an effort to look at all avenues to increase revenues to use toward to the unfunded pension liabilities.
He agreed that there should be searches for individuals who are experts in the field.
Aleksander Alderete
Minutes Secretary 10
City Council
December 19, 2023
Councilmember Griffiths stated that tax increases would come back to cost residents, and that he did not see that voters had to decide these, so the timing was bad since SST just passed.
He stated that taxing businesses makes them start to increase costs to residents. He concluded that he would vote no on any of the tax items. He discussed the budget and unfunded pension liabilities with Assistant Finance Director Dailey.
Councilmember Sheikh, Assistant Finance Director Dailey, and City Manager Chaparyan discussed the performance numbers on paying for the unfunded liabilities and the interest rates and trust rates. City Manager Chaparyan discussed the various ways that staff have tried to fund pensions, but that the city has many costs to cover as well.
Mayor Chen and Councilmember Sheikh discussed the promotion of business to generate revenue, and the assistance with SST.
Council member Sheikh stated that the business tax needs adjustments and that he would not advocate for any other taxes.
Councilmember Mattucci recounted his discussion with Finance Director Sheila Poisson regarding the continual increase in the unfunded pension debt. He elaborated on the past decisions that have led to this. City Manager Chaparyan stated that mortgages are fixed and the lease revenue bond was made to the general fund to avoid cuts. Councilmember Mattucci voiced concerns that, while the moves in the past did their job, now the pushing it back is creating problems and if another economic recession happens then cuts will happen. He reiterated that the process to pay it back is going too slowly, and it is causing negative outcomes. He continued that if cuts must happen, then they may need to happen. City Manager Chaparyan stated that staff efforts with CalPERS and the actuarial indicate that Torrance is making progress.
Mayor Chen listed the efforts made by staff and the immense responsibilities of balancing the general fund and the unfunded pension liabilities.
Councilmember Sheikh stated that the reserves have been replenished so there is will to make revenue increases. He added that staff must look for areas to cut. City Manager Chaparyan reminded the City Council that the city is a service provider, and that cutting would decrease the effectiveness of services. He continued that staff has looked at every avenue to cut costs while keeping Torrance as a high-quality service provider. He added that there are massive trade-offs when considering cuts that the City Council is suggesting.
Councilmember Kaji stated that the ballot initiatives could be expensive, but that Torrance is investigating how to deal with CalPERS and it depends on if CalPERS hits their numbers. He continued that tough decisions such as taxes should be looked at.
MOTION: Councilmember Kaji moved to accept and file, and that this move back to the Finance and Governmental Operations Committee. Councilmember Mattucci seconded the motion. The motion carried by a vote of 5-1 with Councilmember Sheikh voting no, and Councilmember Lewis absent.
Aleksander Alderete
Minutes Secretary 11
City Council
December 19, 2023
9E. ACCEPT AND FILE FISCAL YEAR 2023-24 FIRST QUARTER BUDGET REVIEW REPORT
Recommendation of the Finance and Governmental Operations Committee that City Council accept and file the Fiscal Year 2023-24 First Quarter Budget Review Report.
Council member Kaji introduced the item to the rest of the City Council.
Members of the public spoke.
MOTION: Councilmember Kalani moved to approve item 9E. Councilmember Sheikh seconded the motion. The motion carried by a vote of 6-0, with Councilmember Lewis absent. 9F. ACCEPT AND FILE FISCAL YEAR 2023-24 FIRST QUARTER INVESTMENT
PORTFOLIO REPORT
Recommendation of the Finance and Governmental Operations Committee that City Council accept and file the Fiscal Year 2023-24 First Quarter Investment Portfolio Report.
Deputy City Treasurer Jasmine Allen introduced the item to the City Council.
Members of the public spoke.
Deputy City Treasurer Allen, responding to a member of the public, stated that there were many CalPERS payments combining to about $35M. She added that this year was more than usual.
MOTION: Councilmember Sheikh moved to approve item 9F. Councilmember Griffiths seconded the motion. The motion carried by a vote of 6-0, with Councilmember Lewis absent. 9G. PROVIDE DIRECTION REGARDING FISCAL YEAR 2024-25 OPERATING BUDGET
AND CAPITAL IMPROVEMENT PLAN PRIORITIES
Recommendation of the Finance Director that City Council provide direction on the Fiscal Year 2024-25 Operating Budget and Capital Improvement Plan Priorities.
Assistant Finance Director Dailey introduced the item to the City Council.
Members of the public spoke.
Assistant Finance Director Dailey, responding to a member of the public, stated that the operating budget and capital improvement plan would not be affected due to funding from the state being formula-based sales tax driven.
MOTION: Councilmember Kalani moved to approve item 9G. Councilmember Kaji seconded the motion. The motion carried by a vote of 6-0, with Council member Lewis absent.
Aleksander Alderete
Minutes Secretary 12
City Council
December 19, 2023
9H . ADOPT ORDINANCE AND URGENCY ORDINANCE AMENDING THE TORRANCE MUNICIPAL CODE (TMC) TO DEFINE THE TERM "FLIGHT SCHOOL" AND LIMIT THE
NUMBER OF BUSINESS LICENSES FOR FLIGHT SCHOOLS PERMITTED IN THE
CITY, DETERMINE THIS IS NOT A PROJECT UNDER CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) OR ALTERNATIVELY ADOPT CEQA
EXEMPTION
Recommendation of the Finance Director that City Council:
1) Adopt an ORDINANCE amending the Torrance Municipal Code (TMC) to add Section
31.1.10 to define "Flight School" and limit the number thereof; and 2) Adopt an URGENCY ORDINANCE amending the Torrance Municipal Code (TMC) to add Section 31.1.1 Oto define "Flight School" and limit the number thereof; and 3) Approve Ordinance Summaries for publication; and
4) Determine that this action is not a "project" subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code section 21065, and in the alternative, adopt a CEQA exemption pursuant to Sections 15061(b)(3) and 15301 of Title 14 of the California Code of Regulations.
City Attorney Sullivan introduced the item to the City Council.
Members of the public spoke.
City Clerk Poirier read the number and title for Ordinance No. 3928 AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF TORRANCE, CALIFORNIA, AMENDING THE TORRANCE MUNICIPAL CODE TO ADD SECTION 31.1.10 TO ARTICLE 1 OF CHAPTER 1 OF DIVISION 3 REGARDING FLIGHT SCHOOLS.
City Clerk Poirier read the number and title for Urgency Ordinance No. 3929 AN
URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TORRANCE, CALIF ORN IA, AMENDING THE TORRANCE MUNICIPAL CODE TO ADD SECTION 31.1.10 TO ARTICLE 1 OF CHAPTER 1 OF DIVISION 3 REGARDING FLIGHT SCHOOLS.
MOTION: Councilmember Griffiths moved to adopt Ordinance No. 3928, Urgency Ordinance No. 3929, and approve an ordinance summary for publication and determine that this action is not a project subject to review under CEQA, and if it were subject to review under CEQA then it would be exempted. Councilmember Kaji seconded the motion. The motion carried by a vote of 6-0, with Councilmember Lewis absent.
91. ADOPT FINDINGS OF FACT AND CONCLUSIONS OF LAW IN THE APPEAL OF
SLING PILOT ACADEMY
Recommendation of the Finance Director that City Council adopt the Findings of Fact and Conclusions of Law in the appeal of Sling Pilot Academy.
Councilmember Kalani recused herself at 11 :31 p.m.
City Attorney Sullivan introduced the item to the City Council.
Members of the public spoke.
Aleksander Alderete
Minutes Secretary 13
City Council
December 19, 2023
MOTION: Councilmember Kaji moved to approve item 91. Councilmember Sheikh seconded the motion. The motion carried by a vote of 5-0, with Councilmember Kalani recused and Councilmember Lewis absent.
Councilmember Kalani returned to the City Council meeting at 11 :36 p.m .
10. 11.
12. 13.
HEARINGS-None Scheduled.
AGENCY AGENDAS -None Scheduled.
SECOND READING ORDINANCES -None Scheduled.
CITY COUNCIL ORAL COMMUNICATIONS
Members of the public spoke.
Councilmember Griffiths, Councilmember Kaji, Councilmember Kalani, Councilmember Mattucci, Councilmember Sheikh and Mayor Chen spoke.
15. ADJOURNMENT
At 11 :43 p.m., the City Council adjourned to Tuesday, January 9, 2024, at 5:00 p.m. for closed session, with regular business commencing at 6:30 p.m. in the Council Chamber.
Tuesdays, December 26, 2023 and January 2, 2024 are Council Dark Nights.
MOTION: Councilmember Kalani moved to adjourn the City Council meeting.
Councilmember Griffiths seconded the motion. The motion carried by a vote of 6-0, with Councilmember Lewis absent.
----Attest: (RO')
Rebecca ~
City Clerk of the City of Tor ranee
Aleksander Alderete
Minutes Secretary
Approved on January 23 2024
14 City Council
December 19, 2023