City Council Meeting 06-24-19 Item 3.B.3. Council Agenda Report
To: Mayor Wagner and the Honorable Members of the City Council
Prepared by: Heather Glaser, City Clerk
Approved by: Reva Feldman, City Manager
Date prepared: June 12, 2019 Meeting date: June 24, 2019
Subject: Approval of Minutes
RECOMMENDED ACTION: Approve the minutes for the May 28, 2019 Malibu City Council Regular meeting.
FISCAL IMPACT: There is no fiscal impact associated with the recommended action.
DISCUSSION: Staff has prepared draft minutes for the May 28, 2019 Malibu City Council Regular meeting.
ATTACHMENTS: May 28, 2019 Malibu City Council Regular meeting minutes
Page 1 of 1 Agenda Item # 3.B.3. MINUTES MALIBU CITY COUNCIL REGULAR MEETING MAY 28, 2019 COUNCIL CHAMBERS 6:30 P.M.
CALL TO ORDER
Mayor Wagner called the meeting to order at 6:31 p.m.
ROLL CALL
The following persons were recorded in attendance by the Recording Secretary:
PRESENT: Mayor Jefferson Wagner; Mayor Pro Tem Karen Farrer; and Councilmembers Rick Mullen, Skylar Peak (arrived at 6:33 p.m.) and Mikke Pierson
ALSO PRESENT: Trevor Rusin, Assistant City Attorney; Reva Feldman, City Manager; Lisa Soghor, Assistant City Manager; Heather Glaser, City Clerk; Jesse Bobbett, Community Services Director; Craig George, Environmental Sustainability Director; Bonnie Blue, Planning Director; Susan Dueñas, Public Safety Manager; Alicia Tang, Graphic Artist; Jerry Vandermeulen, Fire Safety Liaison; Kelsey Pettijohn, Deputy City Clerk; Katie Gallo, Recreation Supervisor; and Kristin Riesgo, Community Services Deputy Director
PLEDGE OF ALLEGIANCE
Luke Webster, William Bema, Lloyd Bema, and Harold Bema led the Pledge of Allegiance.
Councilmember Peak arrived at 6:33 p.m.
APPROVAL OF AGENDA
MOTION Councilmember Peak moved and Councilmember Mullen seconded a motion to approve the agenda. The motion carried unanimously.
REPORT ON POSTING OF AGENDA
Deputy City Clerk Pettijohn reported that the agenda for the meeting was properly posted on May 16, 2019.
ITEM 1 CEREMONIAL/PRESENTATIONS
A. Presentation of 2019 Jake Kuredjian Citizenship Award
Parks and Recreation Chair Judy Villablanca presented the awards to Kasey Earnest and Steve Hotchkiss. Malibu City Council Minutes of May 28, 2019 Page 2 of 16 ______
Ms. Earnest thanked the Council for the award. She thanked the community for supporting the Malibu Boys and Girls Club’s relief program after the Woolsey Fire.
Mr. Hotchkiss thanked the Council for the award and provided an update on the Malibu Seawolves swim program.
Councilmember Peak left the dais 6:38 p.m.
B. Presentation of 2019 State of the City Video
The 2019 State of the City video was presented to the Council.
Councilmember Peak returned to the dais at 6:40 p.m.
C. Staff Update on Disaster Response and Recovery
Environmental Sustainability Director George stated the debris removal program was nearly complete. He stated all affected properties had responded and joined the opt in or opt out programs so a nuisance abatement program would not be necessary. He stated more temporary housing permits were being issued daily. He stated over 100 Planning Verifications and 20 Administrative Plan Reviews had been issued. He stated over 200 properties had been cleared of debris and were ready to rebuild. He stated the debris removal center in Calabasas was still open and Los Angeles County Fire Department staff was available at City Hall weekly on Tuesdays and Thursdays from 8:00 a.m. to 12:30 p.m. He stated two Building Safety rebuild permits had been issued for houses destroyed in the Woolsey Fire.
Planning Director Blue announced appointments were available on Saturday, June 1, 2019 for applicants to discuss fire rebuilds with a planner.
Environmental Sustainability Director George announced a Los Angeles County Sheriff’s Department Civilian Oversight Committee meeting on June 1, 2019, and the Public Safety and Preparedness Expo on June 15, 2019.
ITEM 2.A. PUBLIC COMMENTS
J.D. Slajchert, LucStrong Foundation, discussed his book Moonflowers. He announced the LucStrong kickball fundraiser on August 3, 2019, in Newbury Park.
Martin Mervel discussed his family’s experience in the Woolsey Fire. He discussed his firm’s new design for disaster resistant homes called Resyst homes.
Sreeraq Veetil discussed the inefficiencies of traditionally built homes. He discussed his research and experience designing disaster resistant homes. Malibu City Council Minutes of May 28, 2019 Page 3 of 16 ______
Michael Pospieszalski discussed the design of and sustainable and disaster resistant materials used in Resyst homes.
Mr. Mervel stated a Resyst home was strong, sustainable, smart, and secure.
Hans Laetz indicated support for the installation for microgrids in the City. He stated microgrids would improve disaster communications. He recommended forming a citywide assessment district to enable the communication companies to connect to a hardened underground communication system. He recommended neighborhoods with underground utilities be connected to microgrids, which could function during a Public Safety Power Shutoff.
Kraig Hill recommended the Council comments be divided into two items on the agenda, one on Councilmembers recent activities and a second to respond to issues raised during public comment.
Chris Frost discussed bollards and storefrontsafety.org. He requested the bollard ordinance be revised and asked if all properties had complied with the existing ordinance. He discussed the dangers of distracted walking while crossing streets.
Drew Leonard thanked the City for working with him during the permitting process for his fire rebuild. He encouraged the City Council to ban widespread use of woodchips in landscaping due to the fire danger they presented.
Marianne Riggins discussed the proposed name change of Point Dume Marine Science Elementary School to Malibu Elementary School. She recommended the Santa Monica-Malibu Unified School District (SMMUSD) Board of Education gather more public input before finalizing the name change.
Meril May discussed the importance of brush clearance in 2019 after the heavy winter rains.
Lloyd Ahern asked if a letter had been sent to the Los Angeles County Board of Supervisors opposing the proposed ordinance to allow camping in Environmentally Sensitive Habitat Areas (ESHA) as Council directed on May 13, 2019.
City Manager Feldman stated she could provide Mr. Ahern a copy of the letter sent to the Los Angeles County Board of Supervisors.
ITEM 2.B. COMMISSION / COMMITTEE / CITY MANAGER UPDATES
Scott Dittrich, Public Safety Commission, stated members of the Public Safety Commission were interested in exploring the possibility of installing a bike lane along Pacific Coast Highway (PCH) in eastern Malibu where the work done by the California Department of Transportation (Caltrans) had widened the shoulder. Malibu City Council Minutes of May 28, 2019 Page 4 of 16 ______
He discussed work done by the City’s consultant Fugro Consultants Inc. on the Big Rock Mesa Assessment District No. 98-1.
City Manager Feldman congratulated Kasey Earnest and Steve Hotchkiss. She thanked the Cultural Arts Commission and Community Services Department for its work on the Radical Beauty, Malibu Rising: Reflections on the Woolsey Fire art exhibit. She stated Fire Safety Specialist Vandermeulen was available to meet with residents to help them comply with brush clearance and to meet with neighborhoods regarding fire preparedness in individual neighborhoods. She announced a Los Angeles County Sheriff Civilian Oversight Committee meeting on June 1, 2019, a joint meeting of the Cultural Arts Commission, Parks and Recreation Commission, and Public Safety Commission on May 29, 2019, a Rain Water and Grey Water Workshop on May 29, 2019, a Los Angeles County Waterworks District No. 29 on June 4, 2019, to discuss system upgrades. She stated staff was working to obtain cell phone numbers registered in the 90265-zip code to use in addition to landline numbers for emergency notifications.
ITEM 2.C. SUBCOMMITTEE REPORTS / COUNCIL COMMENTS
In response to Councilmember Peak, Planning Director Blue discussed the parking lot safety ordinance. She stated the ordinance required bollards for outdoor seating areas and almost all properties were in compliance.
Councilmember Peak commended Kasey Earnest and Steve Hotchkiss. He thanked staff for its work on the 2019 State of the City video. He thanked Mr. Mervel and his team for presenting. He stated he was on the Clean Power Alliance (CPA) Board of Directors and recommended the Council and staff tour a microgrid facility. He requested an item be brought back regarding the new name for Point Dume Marine Science Elementary School. He discussed the importance of local control and respecting the history of a community.
Councilmember Peak left the dais 7:33 p.m.
In response to Councilmember Pierson, Mr. Mervel stated Resyst homes were designed for residents to shelter in place during a fire.
Councilmember Pierson indicated support for microgrids. He stated the Woolsey Fire rebuilding process was delayed in the unincorporated portion of Los Angeles County compared to the City. He indicated support for banning the use of woodchips and railroad ties in the City.
Councilmember Peak returned to the dais at 7:36 p.m.
Councilmember Pierson stated he attended an SMMUSD Health and Safety District Advisory Committee meeting at the Malibu Boys and Girls Club. He commended the Malibu Boys and Girls Club on its wellness programs. He stated he attended a Las Virgenes-Malibu Council of Governments (COG) meeting with Malibu City Council Minutes of May 28, 2019 Page 5 of 16 ______
City Manager Feldman. He stated he encouraged the other COG board members to support Assembly Bill (AB) 1788.
In response to Councilmember Pierson, City Manager Feldman stated the COG board members typically returned to their own communities to look for support on an item before the board took action.
Councilmember Pierson discussed community members who attended the COG meeting to share their concerns regarding the dangers of allowing camping in ESHA. He stated he attended the Radical Beauty, Malibu Rising: Reflections on the Woolsey Fire art exhibit opening event. He stated he visited the Big Heart Ranch and observed its animal therapy programs.
Councilmember Peak stated the Big Heart Ranch was open to visitors from everyone who lived in the 90265-zip code.
Councilmember Pierson he stated he planned to tour affordable housing facilities with the Community Corporation of Santa Monica on May 29, 2019.
Councilmember Mullen stated the Commissions’ workplans would be discussed at the June 24, 2019 Council meeting. He expressed concern regarding the renaming of Point Dume Marine Science School. He thanked staff for its work on rebuilding after the fire. He suggested closing City Hall on Friday, July 5, 2019.
Councilmember Peak indicated support for closing City Hall on July 5, 2019.
Assistant City Attorney Rusin stated staff could bring back an item for the Council to consider closing City Hall on July 5, 2019.
Councilmember Mullen stated he attended the California Contract Cities Association Annual Municipal Seminar. He announced the Public Safety and Preparedness Expo on June 15, 2019. He discussed the importance of commemorating veterans on Memorial Day. He stated residents in the unincorporated portion of Los Angeles County did not receive as much support rebuilding from the Woolsey Fire as residents in the City did.
Mayor Pro Tem Farrer indicated support for microgrids. She congratulated Mr. Leonard on receiving his rebuilding permit.
In response to Mayor Pro Tem Farrer, Councilmember Mullen stated the brush clearance deadline was June 1, 2019, and inspections had already begun.
Mayor Pro Tem Farrer thanked Mr. Dittrich for his comments. She stated she planned to tour affordable housing facilities with the Community Corporation of Santa Monica on May 29, 2019. She stated she introduced the last Library Speaker, Michael Scott Moore. She stated she attended the California Contract Cities Association Annual Municipal Seminar. She discussed seminar topics Malibu City Council Minutes of May 28, 2019 Page 6 of 16 ______
regarding responding to crises, homelessness, first responders, becoming a smart city, and protecting water resources. She recommended community members visit the Radical Beauty, Malibu Rising: Reflections on the Woolsey Fire art exhibit. She thanked active community members for participating in discussions regarding camping in ESHA. She indicated support for AB 1788. She encouraged everyone to contact the Disaster Response and Recovery Ad Hoc Committee to provide more suggestions on disaster preparedness.
Councilmember Peak stated he attended the Radical Beauty, Malibu Rising: Reflections on the Woolsey Fire art exhibit opening event. In response to Councilmember Peak, Mr. Leonard recommended property owners who were rebuilding decide what they wanted to do and start filing with the City as soon as possible. Councilmember Peak thanked staff for supporting the rebuilding process.
Mayor Wagner stated microgrids were the way of the future. He stated he attended the Radical Beauty, Malibu Rising: Reflections on the Woolsey Fire art exhibit opening event. He stated he attended a meeting with Los Angeles County Sheriff Villanueva at Dukes Malibu.
ITEM 3 CONSENT CALENDAR
MOTION Councilmember Peak moved and Councilmember Pierson seconded a motion to approve the Consent Calendar and hearing Item No. 7.A. before Item No. 4.A. The motion carried unanimously.
The Consent Calendar consisted of the following items: A. Previously Discussed Items None. B. New Items 1. Waive Further Reading Recommended Action: After the City Attorney has read the title, waive full reading of ordinances considered on this agenda for introduction on first reading and/or second reading and adoption. 2. Approve Warrants Recommended Action: Allow and approve warrant demand numbers 56830-56961 listed on the register from the General Fund and direct the City Manager to pay out the funds to each of the claimants listed in Warrant Register No. 638 in the amount of the warrant appearing opposite their names, for the purposes stated on the respective demands in a total amount of $2,104,639.69. City of Malibu payroll check numbers 5012- 5014 and ACH deposits were issued in the amount of $208,593.16. 3. Approval of Minutes Recommended Action: Approve the minutes for the April 22, 2019 Malibu City Council Regular meeting and the April 24, 2019 Malibu City Council Special Meeting. Malibu City Council Minutes of May 28, 2019 Page 7 of 16 ______
4. Fiscal Year 2018-2019 Third Quarter Financial Report Recommended Action: Receive and file Fiscal Year 2018-2019 Third Quarter Financial Report.
ITEM 7 COUNCIL ITEMS
A. 2019-2020 Harry Barovsky Memorial Youth Commission Appointments Recommended Action: Appoint Commissioners to the 2019-2020 Harry Barovsky Memorial Youth Commission.
Recreation Supervisor Gallo presented the staff report.
Luke Webster discussed his experience on the Harry Barovsky Memorial Youth Commission and desire to be reappointed.
William Bema thanked the Council and staff for its work. He discussed the power of the youth to influence a community. He indicated support for Harold and Lloyd Bema’s appointments to the Harry Barovsky Memorial Youth Commission.
Lloyd Bema discussed his desire to be appointed to the Harry Barovsky Memorial Youth Commission and his interest in local government.
Harold Bema stated he desired to help the students have a voice in their community.
Councilmember Peak thanked the public speakers.
MOTION Councilmember Peak moved and Councilmember Pierson seconded a motion to appoint the following 23 applicants to the 2019-2020 Harry Barovsky Memorial Youth Commission:
Alana Adams, Eden Amar, Harold Bema, Lloyd Bema, Garrett Button, Spencer Carr Reed, James Fisher, Mia Foster, Quinn Graham, Gabi Kofsky, Sarah Konopaske, Jocelyn Leinbach, Luke Lindstrom, Matthew Maischoss, Luca Moore, Takoda Moore, Cooper Norby, Sophia O' Brien, Serena Perl, Jacqueline Reynaga, Nicole Reynaga, Isabelle Voarino, and Luke Webster.
The motion carried unanimously.
ITEM 4 ORDINANCES AND PUBLIC HEARINGS
A. Appeal No. 19-001 - Appeal of Planning Commission Resolution No. 19-05 (5939 Busch Drive; Appellant/Applicant: Steve Bowker and EFI Hubschman; Property Owner: The Hubschman Family Trust)(Continued from May 13, 2019) Recommended Action: Continue the item to the June 24, 2019 Regular City Council meeting. Malibu City Council Minutes of May 28, 2019 Page 8 of 16 ______
This item was continued to the June 24, 2019 Regular City Council meeting upon approval of the agenda.
B. Proposed Budget for Fiscal Year 2019-2020 Recommended Action: 1) Conduct the Public Hearing; and 2) Consider the recommendations of the Administration and Finance (A&F) Subcommittee regarding the Proposed Budget, General Fund Grants and Annual Work Plan for Fiscal Year 2019-2020.
City Manager Feldman thanked staff for its work making cuts to the budget to allow certain rebuild permit fees to be waived.
Assistance City Manager Soghor presented the staff report. She thanked the Finance staff for its work on the budget. She stated a resolution to waive and refund certain rebuilding permits fees would be coming to Council with the final budget on June 24, 2019. She stated the Zuma Beach FM Emergency & Community Broadcasting General Fund Grant application had been withdrawn.
Kraig Hill discussed Malibu Municipal Code (MMC) Section 2.36.110. He requested the Council approve a stipend or reimbursement system for Planning Commissioners. He stated without some type of stipend or reimbursement he would not be available to make as many site visits. He stated Council comments could be reorganized but did not believe the comments needed to be briefer.
Councilmember Mullen thanked staff for its work on the budget. He thanked Councilmember Peak for agreeing to postpone the City Hall Solar Project. He stated he supported internship programs but felt that reducing the program funding for Fiscal Year 2019-2020 was a sensible decision that would help offset the cost of waiving certain rebuild permits fees. He stated the undesignated reserve was an important resource that had allowed the City to make a timely and critical property acquisition in 2018.
In response to Councilmember Mullen, Assistant City Attorney Rusin stated the Council could request an item be brought back to consider closing City Hall on July 5, 2019.
Councilmember Peak requested an item be brought back to authorize the closure of City Hall on July 5, 2019, and August 30, 2019.
CONSENSUS By consensus, the Council directed staff to bring back an item to authorize the closure of City Hall on July 5, 2019, and August 30, 2019.
Councilmember Mullen recommended the Administration and Finance Subcommittee consider an item to redistribute the additional $15,000 in the General Fund Grant Program that was freed up by the withdrawal of the Zuma Beach FM Emergency & Community Broadcasting grant application. Malibu City Council Minutes of May 28, 2019 Page 9 of 16 ______
Councilmember Pierson indicated support for sending an item back to the Administration and Finance Subcommittee to redistribute the funds.
Mayor Wagner recommended the Administration and Finance Subcommittee consider funding a Planning Commissioner stipend or reimbursement program with the additional grant funding.
CONSENSUS By consensus, the Council directed staff to schedule an Administration and Finance Subcommittee meeting to reallocate the $15,000 General Fund Grant monies freed up by the withdrawal of Zuma Beach FM Emergency & Community Broadcasting grant application
Councilmember Mullen recommended directing staff to investigate any outside funds that could be used to acquire the Yamaguchi property.
CONSENSUS By consensus, the Council directed staff explore non-City funding opportunities for purchase of the Yamaguchi property.
Mayor Pro Tem Farrer thanked staff for its work on the budget and identifying funding to waive 100% of certain rebuild permit fees.
Councilmember Pierson thanked the Finance staff for its work on the budget and identifying funding to waive 100% of certain rebuild permit fees. He expressed concern that many fire damaged properties would be sold and the permit fees for those properties should not need to be waived.
City Manager Feldman stated staff had budgeted for all like for like and like for like plus 10% rebuild permit fees to be waived.
Councilmember Pierson indicated support for waiving permit fees only for applicants who were primary residents at the time of the Woolsey Fire.
City Manager Feldman stated a resolution waiving and refunding permit fees had not been adopted yet, and the primary owner item could be added to the draft resolution.
Mayor Wagner indicated support for allowing rebuild certain permit fees to be waived when the land title was transferred to relatives or an LLC owned by the family.
CONSENSUS By consensus, the Council directed staff to require proof of primary residency at time of the Woolsey Fire for refund or waiving of all like-for-like and like-for- like + 10% Woolsey Fire rebuilding fees. Malibu City Council Minutes of May 28, 2019 Page 10 of 16 ______
Councilmember Pierson stated he had not investigated the possibility of reimbursing Planning Commissioner expenses enough to make a decision.
Councilmember Peak requested staff bring back an item on the history of Planning Commission compensation and how other cities compensated their Planning Commissioners. He stated all Planning Commissioners in the past had accepted the position understanding that they would not receive any financial compensation. He indicated opposition to approving a stipend or reimbursement system for the Planning Commission without additional information about the standards in other cities.
In response to Mayor Pro Tem Farrer, City Manager Feldman stated she could not recall another request by a Commissioner to be compensated during her time with the City.
Councilmember Peak stated the Los Angeles County Sheriff’s Department needed to manage the Liability Trust Fund better. He stated the community was being mistreated by the Sheriff Villanueva. He recommended the City consider other options in improve public safety with funding normally devoted to the Los Angeles County Sheriff’s Department contract.
In response to Councilmember Peak, City Manager Feldman stated she had requested the beach team deploy strategically based on weather forecasts and how many people could be expected at the beach. She stated beach team resources would also be deployed in the evening when people are still on the beaches.
Councilmember Peak expressed frustration that properties owned by the Mountains Recreation Conservation Authority (MRCA) were not being properly managed, which increased the City’s search and rescue costs and created additional public safety dangers. He expressed concern that the Los Angeles County Sheriff’s Department leadership did not present a good example. He expressed concerning regarding the increasing CalPERS budget. He requested the City Manager and City Attorney investigate the options for and any problems associated with a stipend or reimbursement program for the Planning Commissioners.
Councilmember Mullen stated he would respect Councilmember Pierson’s opinions on compensating Planning Commissioners.
Councilmember Pierson stated he had concerns about the details of any program created to reimburse Planning Commissioners’ expenses.
Mayor Wagner stated he attended a meeting with Sheriff Villanueva. He discussed his experience working for the Los Angeles County Sheriff’s Department. He recommended the Council reach out to schedule a meeting with Sheriff Villanueva and his staff. Malibu City Council Minutes of May 28, 2019 Page 11 of 16 ______
Councilmember Peak stated Sheriff Villanueva had not returned his calls requesting a meeting.
Mayor Wagner recommended bringing back an item inviting Sheriff Villanueva to visit a Council meeting.
Councilmember Peak stated he would only welcome Sheriff Villanueva if he could speak honestly.
City Manager Feldman stated she and Mayor Pro Tem Farrer had spoken with Sheriff Villanueva at a town hall meeting in Agoura Hills about setting up a town hall meeting in the City.
Councilmember Pierson indicated support for an in-person meeting with Sheriff Villanueva.
Councilmember Peak stated he had repeatedly tried to speak with Sheriff Villanueva.
Mayor Wagner indicated support for holding a public meeting with Sheriff Villanueva.
Councilmember Peak recommended the City look at installing a wireless notification system that was satellite based and could notify officials of new fires starting in the mountains.
Mayor Wagner described a warning system, which notified the public to seek additional details regarding the emergency on their phones.
Councilmember Peak stated an emergency notification system installed should not just be a siren system. He stated a smart system should be able to notify the City and community of emerging threats.
City Manager Feldman stated $100,000 had been budgeted for the planning and design of a siren warning system. She stated staff was applying for a grant to fund installation and the project would be brought back to the Council in the future at each stage of development.
Mayor Pro Tem Farrer stated she attended Sheriff Villanueva’s town hall meeting in Agoura Hills. She stated she met briefly with Sheriff Villanueva at two California Contract Cities Association events, but he had not been very receptive to invitations to visit the City. She indicated support for trying to schedule a meeting with Sheriff Villanueva.
MOTION Mayor Wagner moved and Councilmember Peak seconded a motion to direct staff to: a) include in the Proposed Budget for Fiscal Year 2019-2020 to be presented on June 24, 2019, a one-time appropriation of $2.99 million from the General Malibu City Council Minutes of May 28, 2019 Page 12 of 16 ______
Fund Undesignated Reserve to maintain a balanced budget; b) bring back an item to authorize the closure of City Hall on July 5, 2019, and August 30, 2019; c) schedule an Administration and Finance Subcommittee meeting to reallocate the $15,000 General Fund Grant monies freed up by the withdrawal of Zuma Beach FM Emergency & Community Broadcasting grant application; d) explore non- City funding opportunities for purchase of the Yamaguchi property; and e) require proof of primary residency at time of the Woolsey Fire for refund or waiving of all like-for-like and like-for-like + 10% Woolsey Fire rebuilding fees. The motion carried unanimously.
ITEM 5 OLD BUSINESS
None.
ITEM 6 NEW BUSINESS
A. Consider Submitting a Measure to the Voters to Increase Transient Occupancy Tax Recommended Action: Consider whether to direct staff to prepare a measure to submit to the voters to increase Transient Occupancy Tax from 12% to 15%.
Assistant City Manager Soghor presented the staff report.
Norm Haynie stated there were limited overnight accommodations for visitors in the City. He stated the City had high public safety and road maintenance costs, some of which were increased by visitors. He indicated support for increasing the Transient Occupancy Tax (TOT).
Scott Dittrich stated most visitors to the City were day visitors. He expressed concern that increasing the TOT would hurt home owners who were renting their property to make ends meet. He recommended raising the TOT only for short- term rentals, which were not owner-occupied.
Councilmember Pierson discussed the strain visitors put on resources in the community. He stated TOT was paid by the visitors and would not affect the individuals renting out the property. He stated local tourism should be able to support local businesses and recommended the City find ways to support local businesses in the future.
In response to Councilmember Peak, Councilmember Pierson stated Santa Monica’s TOT was approximately 15%. He stated TOT in coastal cities ranged. He stated the 12% TOT rate was inherited from the County and cities, which wanted to capitalize on an influx of tourists had raised their TOT. City Clerk Glaser stated the soonest available Special Election date would be in November of 2019.
Councilmember Peak indicated support for a Special Election in November 2019 Malibu City Council Minutes of May 28, 2019 Page 13 of 16 ______
to increase TOT to 15% and devote the funds to public safety, land acquisition, and park and facility improvements. He indicated support for another election in November 2020 to increase the TOT again and undesignated the funds.
Councilmember Pierson stated the Malibu Chamber of Commerce was working with the Conejo Valley Chamber of Commerce on a measure for a Tourist Improvement District (TID). He stated the Conejo Valley TID only included hotels and motels and had a marketing fund, which returned some of the money collected to the original business to use in marketing.
Councilmember Peak stated the community had a complicated relationship with tourism. He expressed concern that short-term rentals limited long-term housing availability. He indicated support for a Special Election to increase TOT in November 2019. He suggested creating a higher tax for short-term rentals but a lower tax on hotels and motels.
Mayor Pro Tem Farrer stated she attended a presentation on TID hosted by the Malibu and Conejo Valley Chambers of Commerce. She recommended inviting the Malibu Chamber of Commerce to present on the TID if the Council wanted more information. She stated the increased TOT would be passed along to the consumer.
In response to Councilmember Peak, Assistant City Manager Soghor stated a tax measure on a Special Election needed to be approved by 2/3 of the voters and could not be undesignated without taking it back to the voters.
Mayor Wagner stated the City was still considering additional regulations for short-term rentals.
In response to Mayor Wagner, Assistant City Manager Soghor stated a contract for financial analysis of short-term rentals should be coming back to the Council for approval in June 2019.
Councilmember Mullen stated any increase in taxes needed to be carefully considered. He requested more information on the TOT rates in neighboring cities. He stated there was a lot of interest from the community in banning short- term rentals. He stated bans or additional regulations could decrease the TOT revenue.
Mayor Wagner stated other Councilmembers had researched TIDs and stated it could provide valuable services.
Councilmember Pierson stated he became interested in increasing the TOT while considering short-term rentals regulations. He stated a higher TOT would help increase revenue from hotels and motels even if short-term rentals were ever banned. He stated the TOT in inland cities was generally lower than coastal cities. Malibu City Council Minutes of May 28, 2019 Page 14 of 16 ______
Councilmember Peak stated cities became reliant on revenue from short-term rentals and short-term rentals decreased the availability of long-term housing.
In response to Councilmember Peak, City Manager Feldman stated a contract for financial analysis of short-term rentals should be awarded in June 2019 and the analysis could take several months while staff worked with the California Coastal Commission (CCC) on the proposed ordinance.
Councilmember Mullen stated he did not need to see the full financial analysis of the effects of banning short-term rentals to consider a measure to increase TOT.
In response to Councilmember Peak, City Manager Feldman stated staff could bring an item back at the end of June 2019 with more information regarding TOT in similar cities, but the deadline to call the Special Election was July 22, 2019.
Councilmember Mullen indicated support for taking a tax to a General Election because it had a lower threshold for approval and the funding could be undesignated.
Mayor Pro Tem Farrer indicated opposition to a Special Election. She recommended staff work with the CCC to develop regulations for short-term rentals. She stated many longtime residents managed short-term rentals. She stated only some properties created problems and those problems needed enforcement.
Councilmember Peak stated revenue would be lost while waiting for a General Election. He indicated support for bringing back an item in June 2019 with more data to consider a Special or General Election to increase TOT.
City Manager Feldman stated the budget did not include money for a Special Election.
Mayor Wagner expressed concern that the workplan would have to be reordered to include a Special Election.
In response to Councilmember Pierson, Assistance City Attorney Rusin stated the the Council would need a 4/5 vote to call a General Election and calling a Special Election would only need a simple majority.
Councilmember Mullen recommended directing staff to bring back more information on other cities TOT rates and the process to prepare a measure for the General Election in 2020.
MOTION Mayor Pro Tem Farrer moved and Mayor Wagner seconded a motion to bring back an item to consider whether to direct staff to prepare a measure to submit to the voters at a Regular Election to increase TOT. Malibu City Council Minutes of May 28, 2019 Page 15 of 16 ______
Mayor Wagner recommended also directing staff to bring back an item with information on the revenue that may be lost from a ban of short-term rentals.
FRIENDLY AMENDMENT Councilmember Mullen moved to bring back an item in the fall of 2019 with information on Transient Occupancy Tax (TOT) percentages levied in nearby coastal cities and Las Virgenes-Malibu Council of Government cities.
The maker and seconder of the motion accepted the amendment.
Councilmember Peak indicated opposition to waiting for a general election.
The motion carried 4-1, Councilmember Peak abstaining.
ITEM 7 COUNCIL ITEMS (continued)
B. 2019 Surf Summit (Councilmember Peak) Recommended Action: At the request of Councilmember Peak: 1) Authorize the City’s sponsorship and support for the 2019 Surf Summit event coordinated by Senator Henry Stern to bring children from multiple Boys and Girls Clubs to Malibu to learn how to surf; and 2) Allocate an amount not to exceed $2,000 from the General Fund Undesignated Reserve to Account No. 100-7001-6170 (City Council Events) to help offset the costs associated with the event or to purchase equipment or supplies for the event.
Councilmember Peak presented the report.
Mr. Haynie stated he would make a donation to the Surf Summit.
Councilmember Peak thanked Mr. Haynie for his donation.
City Manager Feldman thanked Mr. Haynie for his donation.
In response to Mr. Haynie, Councilmember Peak stated the event would be held at Zuma Beach.
MOTION Councilmember Peak moved and Councilmember Pierson seconded a motion to: 1) authorize the City’s sponsorship and support for the 2019 Surf Summit event coordinated by Senator Henry Stern to bring children from multiple Boys and Girls Clubs to Malibu to learn how to surf; and 2) allocate an amount not to exceed $2,000 from the General Fund Undesignated Reserve to Account No. 100- 7001-6170 (City Council Events) to help offset the costs associated with the event or to purchase equipment or supplies for the event. The motion carried unanimously. Malibu City Council Minutes of May 28, 2019 Page 16 of 16 ______
ADJOURNMENT
At 9:47 p.m., Mayor Wagner adjourned the meeting.
Approved and adopted by the City Council of the City of Malibu on ____, 2019.
______JEFFERSON WAGNER, Mayor ATTEST:
______HEATHER GLASER, City Clerk (seal)