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HomeMy WebLinkAboutItem 2d: Minutes of May 2, May 17 & May 25, 2011 53:0084 ARCADIA CITY COUNCIL/REDEVELOPMENT AGENCY SPECIAL MEETING MINUTES MONDAY, MAY 2, 2011 7:30 a.m. Location: Police Department Community Room (EOC), 250 W. Huntington Drive CALL TO ORDER Mayor Kovacic called the meeting to order at 7:30 a.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Chandler, Harbicht, Segal and Kovacic ABSENT: None PUBLIC COMMENTS (5 minutes per person) STUDY SESSION a. Report, discussion and direction regarding the Proposed 2011 -12 Fiscal Year Budget. City Manager Don Penman provided a brief overview of the current budget and the proposed 2011 -12 budget and explained PERS projected rate increases; he reported that the General Fund is projected to have a deficit of $1,574,816 for Fiscal Year 2011 -2012; that 77% of the General Fund is personnel and benefits related services; he discussed the 2.5% reverse priority list of possible cuts from each department; he noted that the 960 program will not be included in the 2011 -12 budget; he addressed one time monies used to balance the current budget i.e. $180,000 from the workers compensation fund, interest from the Capital Outlay and Equipment Fund and the Agency loaned the City $3.5 million which generated about $196,000 and $770,000 was generated in one time monies; he stated the interest earned in the Equipment and Capital Fund is not that significant; that Gas Tax money is being proposed to be transferred to the General Fund for maintenance which means there would be no Gas Tax program; that the fund balance in the capital outlay program is a little more than $2 million; and advised that money could be allocated from the capital program for the slurry seal project; and noted that the capital outlay fund is money from the race track which is less by about $175,000 due to the loss of Oak Tree and another $20,000 to $30,000 in sales tax. He further reported that there will be a $1.1 million surplus which was not expected including some significant one time savings in personnel costs and contract services and that one time revenues helped balance the budget; and noted that historically there usually is a 1% savings in the general fund of about $470,000; and reported that there may be some movement toward a compromise regarding redevelopment money which is good news, but indicated that we should expect that money will be taken. Mr. Penman indicated that the budget does not include any costs of living expenses. Hue Quach, Administrative Services Director provided a brief summary of the 2010 -11 and 2011 -12 General Fund beginning and ending fund balances, estimated revenues and proposed expenditures; projected expenditures and savings; estimated revenue sources, general fund revenue year over year change; and major revenue projections; he noted a projected increase of approximately 2.5% in property tax, 1.75% in Transient Occupancy tax, 1°/0 in Utility Users 05 -02 -11 53:0085 Tax and 2% in Business License Tax; and provided a brief summary of department General Fund expenditure increases and decreases; and provided a summary of proposed 2.5% department cuts and saving options. Mayor Pro Tem Harbicht expressed his satisfaction with last year's budget and recommended the City Council not consider or take any action on any of the proposed budget cuts at this time; that City's finances are in a good shape and explained that his only concern is employee negotiations and not knowing what the outcome would be after negotiations. Council Member Segal commented on the proposed department cuts and feels that residents would be upset if any cuts were made knowing the City has $22 million of unrestricted reserves; that he would not be willing to make any of the proposed cuts unless they were an operational decision made by Mr. Penman; he feels that the biggest line item problem is the $1.4 million in PERS increases and the $2.7 million in PERS reserves the City had put aside to deal with increases; he feels that cuts are not warranted at this time; he agreed with comments made by Mayor Pro Tem Harbicht; he commended the Department Heads, staff and Mr. Penman on doing an excellent job at a terrible time and advised that he is not prepared to discuss any of the proposed cuts at this time. Council Member Amundson also agreed with comments made by Mayor Pro Tem Harbicht and Council Member Segal and is also not prepared to discuss any of the proposed cuts at this time. Council Member Chandler also agreed with the comments made by the other Council Members; he commented that the City needs more revenue; that utility users' tax lowered from 7% to 5% 15 to 20 years ago and can be increased 2% without the vote of the people and feels that the City should consider an increase. Mayor Kovacic agreed with the overall analysis presented by Mayor Pro Tem Harbicht and Council Member Segal; and stated that he is not in favor of cutting street sweeping or tree trimming. Council Member Segal recommended that consideration be given to transferring $500,000 from the PERS Reserve Fund to the General Fund and then fund the Equipment Replacement Fund with the $500,000. Council Member Segal requested the consensus of two Council Members to discuss the role of the Chamber Executive Director which he feels may be a conflict. Council Members Amundson, Chandler and Harbicht agreed. At the request of Mayor Kovacic, Mr. Penman explained that the City gives $62,000 of subsidy money to the Chamber for programs and services; that the Chambers pays the City $400 per month for rent and the City maintains the grounds and at the end, it comes out to be a wash; he stated that the Chamber Director is on the Board of Arcadia's Best Foundation, the Library Board of Trustees and the Board of the Historical Society and questions have come up regarding the role as the Chamber Executive Director and the other boards he serves on in the City which may be a conflict of conflict. The City Council authorized Mr. Penman to write a letter to the President of the Chamber requesting clarification of the Chamber Executive Director's role and how it affects the other activities he is involved in and how the money the City provides to the Chamber is spent. 05 -02 -11 53:0086 At the request of Mr. Penman, Tom Tait, Public Works Service Director provided a status report of the City Hall Energy Efficient project; Sara Somogyi, Director of Recreation and Community Services explained the Bonita Park Synthetic Field project; and Hue Quach, Administrative Services Director reported on the Fiber Optic Connection Project at City facilities. Mr. Penman provided a brief summary on the next phase of the Asphalt and Concrete project. At the request of Mayor Kovacic, Carolyn Garner -Regan advised that interviews for the Director of Library and Museum Services are scheduled for May 17, 2011. Mr. Penman reported that the Police Chief recruitment closes May 5, 2011. At the conclusion of the meeting, the City Council directed the City Manager to schedule a May 17, 2011 Study Session regarding the budget at 5:00 p.m. No further business, the Special Meeting adjourned at 9:50 a.m. James H. Barrows, City Clerk 11 (LA, By: Lisa Mussenden Chief Deputy City Clerk/Records Manager 05 -02 -11 53:0093 ARCADIA CITY COUNCIL/REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, MAY 17, 2011 CALL TO ORDER Mayor Kovacic called the meeting to order at 5:00 p.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Chandler, Harbicht, Segal and Kovacic ABSENT: Council /Agency Member Chandler It was moved by Council /Agency Member Segal seconded by Council /Agency Member Harbicht to excuse Council /Agency Member Chandler. Council /Agency Member Chandler arrived at 5:10 p.m. CLOSED SESSION /STUDY SESSION PUBLIC COMMENTS (5 minutes per person) — No one appeared. STUDY SESSION (OPEN TO THE PUBLIC) a. Report, discussion and direction regarding the Proposed 2011 -12 Fiscal Year Budget. City Manager Don Penman provided an overview of the May 2, 2011 Budget Study Session including the General Fund 2011 -12 budget shortfall of $1,574,816; he briefly addressed the 2.5% reverse priority list of possible cuts each department submitted; he reported the City Council's direction to not cut current services and programs and to review each department list and determined what cuts can be made without impacting existing programs to the community; and presented proposed adjustments to the preliminary budget that would reduce the shortfall and require fewer reserves to balance the budget. He explained that additional projected revenue increases of $144,000 and $377,350 in expenditure reductions, the shortfall would be reduced from $1,574,816 to $1,053,466; that some of the expenditure savings should be considered one -time, such as the use of the "960" program in the Fire Department and not filing one vacant Captain position in the Police Department for six months; he advised that since the Equipment Fund has no source of funds, it will be reduced by $925,399 in fiscal year 2011 -12 from $4,623,576 to $3,867,777; and no changes to employee salary and benefits other than merit increases for those employees eligible based on performance reviews. Hue Quach, Administrative Services Director provided revenue increase information proposed to be incorporated in the fiscal year 2011 -12 budget; that the adjustments are based on additional up -to- date economic information received since the May 2, 2011 budget meeting: Public Safety Augmentation Fund $30,000, Property Transfer Tax $15,000 and Motor Vehicle License Fees $99,000. Mr. Penman indicated that if the City Council proceeded with the adoption of the preliminary budget with the recommended changes, reserves totaling $1,053,466 will be needed to balance the budget; and noted that historically General Fund expenditures are at about 99 %, with 1% unspent and for 2010 -11 it is anticipated that expenditures will be about 97.7% of the budget; and that based on overall revenues and expenditures the General Fund is projected to have a surplus of $1,140,625. 05 -17 -11 53:0094 Jason Kruckeberg, Assistant City Manager /Development Services Director indicated that the City was recently informed that Community Development Block Grant (CDBG) money will be reduced 16 -18% due to Federal budget cuts which would be a reduction of $42,181 for Arcadia; he recommended reducing the Senior Meals Program $5,027 and $7,570 in Program Administration; a reduction of $400 in supplies and $7,197 in salaries; and stated that together the reductions would cost the General Fund approximately $12,224 ($7,197 in salaries and $5,027 in unrealized revenue) which are a one -time fix. At the request of City Manager Penman, Sara Somogyi, Recreation and Community Services Director explained that the Bonita Park Synthetic Field Renovation Project was withdrawn from the CIP because the original thought was to apply for Proposition 84 grant money for this project but was later determined that it was not a viable project to pursue at this time. It was moved by Council /Agency Member Harbicht, seconded by Council /Agency Member Chandler and carried on roll call vote to incorporate staff's recommended changes into the Fiscal Year 2011- 12 budget; schedule a public hearing and prepare the necessary resolutions for adoption at the June 7, 2011 regular meeting. AYES: Council /Agency Member Harbicht, Chandler, Amundson, Segal and Kovacic NOES: None ABSENT: None CLOSED SESSION a. Pursuant to Government Code Section 54957.6 to confer with labor negotiators. City Negotiators: Administrative Services Director Hue Quach, Human Resources Administrator Michael Casalou and Attorney William Floyd of Best Best & Krieger, LLP. Employee Organizations: Arcadia Public Works Employees Association, Arcadia City Employees Association, Arcadia Police Civilian Employees Association, Arcadia Police Officers' Association, Arcadia Firefighters' Association and unrepresented employees: Department Heads, Division Managers, Supervisors, and Part-time employees. b. Pursuant to Government Code Section 54956.8 conference with real property negotiators: Property: 35 West Huntington Drive, 21 Morlan Place, 101 -111 North Santa Anita Avenue, 121 -159 North Santa Anita Avenue and Assessor Parcel No. 5775 - 025 -025 (South side of Santa Clara Street, West of Santa Anita Avenue) Agency Negotiators: City Manager /Agency Executive Director Don Penman, Assistant City Manager /Deputy Executive Director Jason Kruckeberg and Economic Development Manager Jerry Schwartz Negotiating Parties: Arcadia Redevelopment Agency, Rusnak /Arcadia (Paul Rusnak) Under Negotiation: Price and Terms of Payment THE CITY COUNCIL/REDEVELOPMENT AGENCY ADJOURNED TO OPEN SESSION Mayor /Agency Chair Kovacic called the regular meeting to order at 7:05 p.m. INVOCATION — Reverend John Payton, Point Loma Nazarene University 05 -17 -11 a 53:0095 PLEDGE OF ALLEGIANCE — Arcadia High School ASB President Jonathan Ma ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Chandler, Harbicht, Segal and Kovacic ABSENT: None REPORT FROM CITY ATTORNEY /AGENCY COUNSEL ON CLOSED SESSION ITEM City Attorney Stephen Deitsch reported that the City Council and Redevelopment Agency Board met in a Study Session prior to the regular meeting to hear a report from staff regarding the Proposed 2011 -12 Fiscal Year Budget. He also reported that the City Council and Redevelopment Agency Board met in a Closed Session to consider Item a on the posted agenda under closed session, no reportable action was taken; and that no discussion occurred regarding Item b and was therefore removed from the agenda. SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS - Mr. Penman announced that there were no supplemental agenda items. MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by Council /Agency Member Chandler, seconded by Council /Agency Member Segal and carried on roll call vote to read all ordinances and resolutions by title only and waive the reading in full. PRESENTATIONS a. Presentation of Certificate of Commendation to the Arcadia High School World Percussion Ensemble. b. Presentation of the Believe in Arcadia....Volunteer! Award to the Student Leaders of Arcadia High School. 1. PUBLIC HEARING a. Consideration of Text Amendment No. TA 10 -04 and introduction of Ordinance No. 2284 amending Article IX, Chapter 2, Part 7 of the Arcadia Municipal Code pertaining to the Conditional Use Permit process to allow automobile fueling stations and automated self - service car washes in the C -O zone, and consideration to affirm the Planning Commission's approval of Conditional Use Permit No. CUP 10 -17 and Architectural Design Review No. ADR 10 -19. Recommended Action: Introduce Ordinance No. 2284 and approve CUP 10 -17 and ADR 10 -19. Tom Li, Associate Planner reported that Text Amendment No. TA 10 -04, Conditional Use Permit Application No. CUP 10 -17 and Architectural Design Review No. ADR 10 -19 were submitted by designer /engineer Mr. Karaki on behalf of the property owner Mr. Kianipur to allow the conversion of an existing automobile service station into an automobile fueling station with a convenience mart and automated self - service car wash at 701 West Huntington Drive; he stated that the applications 05 -17 -11 53:0096 were all approved by the Planning Commission subject to certain conditions pending City Council approval of the Text Amendment; he advised that the Unocal 76 service station was constructed in 1967 and pre -dates Conditional Use Permit (CUP) requirements for gas stations; that staff supports the inclusion of the C -O zone under the Conditional Use Permit sections of the Code for automobile fueling stations and automated self - service car washes because the uses are consistent with the General Plan land use designation of "Commercial" which would accommodate a wide range of commercial uses that would serve the neighborhood and city wide markets when located at major intersections. Mr. Li also commented on the purpose of the Text Amendment, the Conditional Use Permit, lighting and noise, parking and traffic circulation, and Architectural Design Review; and recommended approval of the proposed Text Amendment and introduction of Ordinance No. 2284. Mayor Kovacic opened the public hearing. No one appeared to provide testimony. A motion to close the public hearing was made by Council Member Harbicht, seconded by Council Member Chandler and seeing no further objection, Mayor Kovacic declared the public hearing closed. It was moved by Council Member Harbicht, seconded by Council Member Amundson and carried on roll call vote to accept the CEQA exemption determination and directed staff to prepare the appropriate resolution for adoption at the next City Council meeting for approval of Conditional Use Permit No. CUP 10 -17 and Architectural Design Review No. ADR 10 -19 with the added condition regarding noise; approve Text Amendment No. TA 10 -04; and introduce Ordinance No. 2284 amending Article IX, Chapter 2, Part 7 of the Arcadia Municipal Code pertaining to the conditional use process to allow automobile fueling stations and automated self- service car washes in the C -0 Zone. AYES: Council /Agency Member Harbicht, Amundson, Chandler, Segal, and Kovacic NOES: None ABSENT: None b. An appeal of the Planning Commission's denial of Modification Application No. MP 10 -06 and Architectural Design Review No. ADR 10 -16 for an addition to a legal - nonconforming four -unit multiple - family development that would replace the existing one- story, 776 square -foot, detached front residential unit with a two- story, 1,932 square -foot, detached residence with an attached 432 square -foot, two -car garage at 137 California Street. Recommended Action: Uphold Appeal and Conditionally Approve MP 10 -06 & ADR 10 -16 Tim Schwehr, Assistant Planner reported that applications were filed by Michael Chen for an addition to a legal- nonconforming, four -unit, multiple - family residential development that would replace an existing one -story, 776 square -foot, detached front residential unit with a two -story, 1,932 square -foot, detached residence and attached 432 square -foot, two -car garage at 137 California Street; he indicated that applicant appealed the Planning Commission's decision to deny the applications based on the parking shortage at the property, the fire hydrant in front of the property prevents guests from parking directly in front of the property, that the existing four one -car garages are not used for parking and the existing triplex does not conform to current setback and open space requirements. He discussed the project site, parking issues, code requirements and the Planning Commission's decision; he added that staff does not encourage additions to non- conforming multiple family developments, but stated that the project would reduce the existing parking deficiency, add new front yard landscaping, provide a trash enclosure where there currently is none and would substantially improve the appearance of the property. He addressed the findings 05 -17 -11 53:0097 for approval and denial of the project and recommended the Planning Commission's denial be overturned. A motion to close the public hearing was made by Council Member Chandler, seconded by Council Member Segal and seeing no further objection, Mayor Kovacic declared the public hearing closed. It was moved by Council Member Harbicht, seconded by Council Member Chandler and carried on roll call vote to overturn the Planning Commission's denial; approve Modification Application No. MP 10 -06 and Architectural Design Review No. ADR 10 -16 subject to the conditions recommended in the staff report and based on a finding that the proposed project will secure an appropriate improvement of a lot. AYES: Council /Agency Member Harbicht, Chandler, Amundson, Segal and Kovacic NOES: None ABSENT: None PUBLIC COMMENTS John Jurman representing the Arcadia Police Officers Association and Tom Devlin representing the Arcadia Firefighters Association appeared to thank the City Council and Arcadia residents for their attendance and support at the Battle of the Badges Basketball Game on April 22, 2011; and reported that approximately $2,400 was raised for Special Olympics. Eloise Crawford representing the Special Olympics of Southern California appeared and thanked the Arcadia Police and Fire Associations, the City Council and the residents for their support. REPORTS FROM THE CITY COUNCIL AND CITY CLERK Council Member Amundson stated that the Planning Commission completed their review of the Homeowners Association Design Review process and requested City Council support that it be placed on a future agenda as a Study Session item, the City Council agreed; he announced Supervisor Antonovich's 14th annual "Remembering Our Veterans and Their Families: Past, Present and Future" event on Saturday, May 28th at the Arcadia County Park and the Memorial Day celebration at Live Oak Memorial Park and encouraged everyone to attend. Mayor Pro Tem Harbicht reported that he attended the Police and Fire basketball game and expressed appreciation to both associations for their support of the Special Olympics; he announced the Patriotic Parade and Festival on July 2, 2011 and noted that the organizers are attempting to contact as many former Rose Queen's and Princesses as part of the parade; and that antique cars are needed for the parade and car show, and encouraged anyone who is interested to contact him through the City's website. Council Member Chandler congratulated the Arcadia High School student leaders recognized by Mayor Kovacic and also thanked the Fire and Police Associations for the charitable basketball game to benefit Special Olympics. Council Member Segal congratulated the Arcadia Chinese Association and Mayor Kovacic on a well attended and successful Law Day held on Saturday, May 14, 2011. 05 -17 -11 53:0098 Mayor Kovacic also thanked the Police and Firefighter Associations for a great basketball game and thanked the Police Department for the ride -along he took two weeks ago; he reported that 225 individuals were in attendance on Law Day; he thanked the Arcadia Chinese Association, and thanked the President of the Chinese Association Ed Wong, Angeline Chan, David Lee and Alice Wang for their support and participation; he also thanked Kristen Olafson and Connie Schacatano of the City Manager's Office for their assistance in organizing the event; and thanked Supervisor Antonovich for hosting the "Remembering Our Veterans and Their Families: Past, Present and Future" event to be held on Saturday, May 28th at the Arcadia County Park. 2. CONSENT CALENDAR REDEVELOPMENT AGENCY ITEMS: a. Approve the Continued Regular Meeting Minutes of April 20, 2011 and the Regular Meeting Minutes of May 3, 2011. Recommended Action: Approve CITY COUNCIL ITEMS: b. Approve the Continued Regular Meeting Minutes of April 20, 2011 and the Regular Meeting Minutes of May 3, 2011. Recommended Action: Approve c. Accept all work performed by Park West Landscape, Inc. for the installation of synthetic turf at the Civic Center Athletic Field as complete and authorize the final payment to be made in accordance with the contract documents. Recommended Action: Approve d. Authorize the City Manager to execute a contract with Martinez Concrete Inc. for Sidewalk Accessibility /Handicap Ramp Improvements on Alice and Lucile Streets in the amount of $69,636 and approve a 10% contingency. Recommended Action: Approve e. Authorize the City Manager to execute a contract with Downing Construction Inc. for the Transmission Main Extension Project on Colorado Street in the amount of $245,615. Recommended Action: Approve f. Authorize the City Manager to execute a contract with Downing Construction Inc. for the Water Main Replacement Protect in the amount of $368,929. Recommended Action: Approve g. Authorize the City Manager to execute a one (1) year purchase order contract extension with Daniels Tire Service for the purchase of tires and tire related services for City vehicles in an amount not to exceed $70,000. Recommended Action: Approve h. Authorize the City Manager to execute an Indemnification Agreement between the City of Arcadia and the Arcadia Unified School District for construction over a Sewer Line. Recommended Action: Approve 05 -17 -11 53:0099 Authorize the City Manager to approve the continuation of the City's participation in the Los Angeles Urban County Community Development Block Grant (CDBG) Program and defer the City's metropolitan status during the July 1, 2012 through June 30, 2015 qualification period. Recommended Action: Approve j. Appointment of Priscilla Shively to the Citizen's Bond Oversight Committee (Continued from the April 20, 2011 continued regular meeting). Recommended Action: Approve k. Revised classification specifications for Lifeguard /Swim Instructor (Part- Time), Lifeguard (part- time), Swim Instructor (Part- Time), and Locker Room Attendant/Pool Cashier (Part- Time). Recommended Action: Approve Approve a sole source purchase of audiovisual equipment for the City Council Chamber in the amount of $15,920.57. Recommended Action: Approve It was moved by Council /Agency Member Amundson, seconded by Council /Agency Member Segal and carried on roll call vote to approve Consent Calendar items 2.a through 2.1. AYES: Council /Agency Member Amundson, Segal, Chandler, Harbicht, and Kovacic NOES: None ABSENT: None 3. CITY MANAGER/AGENCY DIRECTOR ITEMS: a. Report, discussion and direction regarding a request from the Church in Arcadia to extend financial assistance from the Arcadia Redevelopment Agency for the leasing of meeting hall facilities and a waiver of building permit fees for the construction of their new facility. Recommendation: Provide direction Jason Kruckeberg, Assistant City Manager /Development Services Director reported that the Redevelopment Agency previously approved a Purchase and Sale Agreement with the Church in Arcadia to purchase its property at 21 Morlan Place and a site on Live Oak Avenue for a new church building; that the agreement included a provision for paying the Church up to $2,000 per month for up to 18 months to cover costs if they were to relocate temporarily to facilitate the Rusnak expansion; that the amount was doubled to $4,000 per month by the Redevelopment Agency on January 20, 2009 to lease space for meetings at Dana Middle School and office space at 43 East Huntington Drive; that the 18 month period expired in July 2010 and at that time, the Church in Arcadia requested an extension of the Agency's assistance for an additional 12 months but the Agency only approved a 6 month extension; he explained that the 6 month period expired and the Church in Arcadia is now requesting an additional 12 month extension for financial assistance for the leasing of Dana Middle School including a request to waive building permit fees for the construction of the new Church facility. Mr. Kruckeberg advised that since 2010, the Agency has spent approximately $88,314 for leasing both facilities and that noted that the project has now reached the construction phase and building permits were issued on April 14, 2011. Mr. Kruckeberg stated that the request for an additional 12 month extension would require a $66,920 appropriation of Agency unprogrammed reserves which include $36,000 for the continued leasing of Dana Middle 05 -17 -1 53:00100 School, $25,920 for the waiver of building permit fees and additional fees estimated at $5,000 for fire sprinklers, fire alarms and a water meter connection. In response to a question raised by Council /Agency Member Segal, staff responded that to date, the Redevelopment Agency has spent approximately $7 million on the Purchase and Sale Agreement which included the purchase of the property, demolition, repaving and acquiring a site on Live Oak Avenue for the new Church facility. John Peruzzi, Architect for the Church in Arcadia appeared and spoke in support of the Church; he thanked the City and staff for its willingness to work with the Church; he explained that there have been several contributing factors which lead to delays during the planning phase; and that due to the lack of knowledge, the Church had no idea what they were getting into and did not know that they needed more time than an experienced development team. David Dong, President of the Church in Arcadia also appeared and thanked the City Council for their continued support; he explained the need for the additional 12 month extension for financial assistance for leasing meeting space at Dana Middle School and the waiver of building permit fees. Mayor Pro TemNice Chair Harbicht expressed sympathy, but felt that if the City grants the Church's request for an additional 12 month extension he would have no justification to the tax payers when recent delays were not in the City's control. It was the consensus of the Council /Agency Members that the Church in Arcadia benefited substantially from the deal and in the end will have a fine facility and are sympathetic, but are not willing to re- negotiate a contract that was negotiated years ago regarding building permit fees. It was moved by Mayor Pro TemNice Chair Harbicht to let the existing extension expire and not grant the request from the Church in Arcadia for an additional 12 month extension for financial assistance. The motion died due to lack of a second. It was moved by Council /Agency Member Chandler to grant the request for an additional 12 month extension of financial assistance from the Church in Arcadia for three (3) additional months and deny the waiver of building permit fees. The motion died due to lack of a second. It was moved by Council /Agency Member Segal, seconded by Council /Agency Member Chandler and carried on roll call vote to authorize an additional six (6) months of the Rent Subsidy Agreement with the Church in Arcadia and deny the waiver of building permit fees already paid; and appropriate from the Agency's Unprogrammed Reserves the amount equal to the six (6) months. AYES: Council /Agency Member Segal, Chandler, Amundson, and Kovacic NOES: Council /Agency Member Harbicht ABSENT: None b. Consideration of the adoption of Resolutions related to Water and Sewer Rate Schedules for Fiscal Year 2011/12: Adopt Resolution No. 6768 setting City Sewer Rates and finding the rates will not exceed the estimated amount necessary to fund operation of the City Sewer System. Recommended Action: Adopt 05 -17 -11 53:00101 Adopt Resolution No. 6769 setting City Water Rates and finding the rates will not exceed the estimated amount necessary to fund operation of the City Water System. Recommended Action: Adopt Tom Tait, Public Works Services Director reported that utility rates fund the operations and maintenance of the water system and the sanitary sewer system; that every year current utility rates are evaluated to ensure proper funding to provide quality services to the residents; and that as part of the budget process, staff reviewed the Capital Improvement Plan, Water Master Plan and Sewer Master Plan and determined that a 1.07% cost of living adjustment is necessary in order to maintain water services to the residents; he noted that the current water rate is $1.33 and the new rate would be $1.34 which is a one (1) cent increase; that the current sewer rate is $3.99 and the new rate would be $4.03 per month per dwelling unit and reflects a $0.04 increase monthly or $0.48 annually; that the proposed commercial rate would change from $11.93 per month to $12.06 per month for each sewer connection and an additional $0.12 per 100 cubic feet of water used per month. He advised that at the June 12, 2009 meeting, the City Council approved automatic water and sewer rate adjustments for five (5) fiscal years in accordance with the Los Angeles- Riverside- Orange County Urban Wage Earners and Clerical Workers Consumer Price Index. Mr. Tait further reported that the proposed water rate adjustment would provide for the cost of operating the water system, capital improvement projects and maintaining a $20 million reserve to offset costs in the event of a catastrophic event or emergency that would affect the water system's infrastructure; he explained the cost of operating the City's water system has increased as a result of the uncertainty of replacement water and the significant increased cost of treated surface water from Metropolitan Water District (MWD); and noted that MWD is raising the cost of replacement water July 1, 2011. Mr. Tait provided a PowerPoint presentation and explained the City's Water Conservation Programs, Water and Sewer Capital Improvement projects for 2012 including the Annual Meter Replacement Program, East Raymond Basin Water Resources Program, Booster Station Discharge Meters Program, Hydraulic Water System Model Calibration, Hugo Reid Well Rehabilitation Project, Cross Gutter Rehabilitation Project at Live Oak Avenue, the Annual Sewer Inspection Program and the Old Ranch Road Sewer Pipe Replacement Project. He stated that staff conducted a survey of water rates for neighboring agencies with uniformed rate structures and found that Arcadia's water rates remain the lowest in the San Gabriel Valley; that staff took the necessary Proposition 218 balloting procedures for increasing water and sewer rates and recommended the City Council approve the water and sewer rate schedule for fiscal year 2011 -12 by adopting Resolution Nos. 6768 and 6769. It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Harbicht and carried on roll call vote to adopt Resolution No. 6768 setting City Sewer Rates and finding the rates will not exceed the estimated amount necessary to fund operation of the City Sewer System. AYES: Council /Agency Member Chandler, Harbicht, Amundson, Segal, and Kovacic NOES: None ABSENT: None 05 -17 -11 53:00102 It was moved by Council /Agency Member Segal seconded by Council /Agency Member Amundson and carried on roll call vote to adopt Resolution No. 6769 setting City Water Rates and finding the rates will not exceed the estimated amount necessary to fund operation of the City Water System. AYES: Council /Agency Member Segal, Amundson, Chandler, Harbicht, and Kovacic NOES: None ABSENT: None ADJOURNMENT The City Council /Redevelopment Agency adjourned this meeting at 9:10 p.m. to Tuesday, June 7, 2011 at 6:00 p.m. in the City Council Chamber located at 240 W. Huntington Drive, Arcadia. James H. Barrows, City Clerk By: Lisa Mussenden Chief Deputy City Clerk/Records Manager 05 -17 -11 53:0103 Arcadia City Council /Redevelopment Agency and Los Angeles County Supervisor Michael Antonovich Special Meeting Minutes Wednesday, May 25, 2011 8:00 a.m. Location: City Council Chamber Conference Room, 240 W. Huntington Drive CALL TO ORDER Mayor Kovacic called the meeting to order at 8:10 a.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council Agency Members Amundson, Chandler, Harbicht, Segal and Kovacic Others Present: Los Angeles County Supervisor Mike Antonovich Albert Citraro, County Deputy Sussy Nemer, 5th District Deputy Brian Mejia, Field Deputy Edel Vizcarra, Public Works Deputy Dave Pilker, Department of Public Works Mahesh Parekh, Department of Public Works Russ Guiney, Department of Parks & Recreation Norma Garcia, Department of Parks & Recreation Richard Shulhof, CEO of LA County Arboretum Gil Garcia, Department of Public Works Kathryn Barger Leibrich, Chief Deputy 5th District Michael Cano, 5th District Transportation Deputy PUBLIC COMMENTS — No one appeared. 1. CITY MANAGER a. Report, discussion and possible action regarding the County take -over of Santa Anita Canyon Road. Dave Pilker, County of Los Angeles Department of Public Works provided an update of the Santa Anita Canyon Road project; he reported that the City of Monrovia has been working with FEMA for quite some time on the design of their portion of the road and that after several revisions, the City of Monrovia submitted a final road design to FEMA in May; and that construction is expected to begin in the fall. He added that the County has identified properties that need cleaning up and they are in the process of working with the property owners; and stated that as soon as Monrovia, Arcadia and Sierra Madre complete their portion of improvements as required by the County, the transfer will be accepted. 05 -25 -11 53:0104 b. Report, discussion and possible action regarding the Arboretum operations with emphasis on the Arboretum's desire to use the site as a venue for large special events. City Manager Don Penman indicated that this item was not placed on the agenda because of the Arboretum's decision to change operators, but in response to the idea that the Arboretum become more self sustaining in generating more activities. Richard Shulhof, CEO of the L.A. County Arboretum indicated that the future event calendar is in the preliminary stages but that in addition to Pasadena Pops four (4) performances, there will be about 6 to 7 different concerts scheduled in 2012; and advised that a meeting will be set up with Mr. Penman to make sure that compliance with the City's decibel levels and event times are monitored so that the residents in the area are not impacted. Mr. Penman noted that historically the Police Department maintained traffic control in the City during County events that were held on County property, but now that is proposed to be handled by the County Sheriff's Department. c. Report, discussion and possible action on the schedule for constructing a new pool at Arcadia County Park. Russ Guiney, County Department of Parks & Recreation reported that the County Park pool will open the first week in June; that construction of the new pool is expected to begin next Fall and should be completed in the Spring of 2012; and that the construction of the new pool will cost approximately $8.5 million. He added that the County is open to working with the School District to allow them use of the pool during the off season. Mr. Penman stated that if the School District closes the High School pool for the summer, he would like to advertise the availability of the County Pool to Arcadia residents; he noted that at his meeting next week with the School District he will let them know that when the High School pool is closed for construction, the County pool will be open and available for the District's use. d. Report, discussion and possible action regarding coordination on street projects (with specific reference to the City's efforts to obtain a sliver of property along the County Park). Philip Wray, Deputy Director of Development Services /City Engineer provided an update regarding the City's efforts in trying to obtain a sliver of property that runs along the County Park for street widening at Huntington Drive and Santa Clara; he reported that the title report still had the property owned by the Railroad; and that no documents were located showing the transfer of the land from the Railroad to the County; and advised that the Railroad issued a disclaimer indicating that they had no interest in the property. He had requested the County's assistance in expediting the transfer because the May deadline for funding the MTA grant was getting close but recently learned that it was extended for one year. Norma Garcia, Planning and Development Deputy Director Parks & Recreation explained that the County also tried to assist the City by conducting its own title search but was also unable to locate any records showing the transfer of the property from Railroad to the County; and indicated that the disclaimer signed by the Railroad indicating that they have no interest in the property would be sufficient for the County to complete the transfer. She reported that County staff have already begun working on the License Agreement and is waiting for the City to provide a plan containing 05 -25 -11 53:0105 ADA requirements, a traffic and sidewalk safety study for the project and an appraisal; and noted that any profit from the sale of the property must be put back into the County Park. Supervisor Antonovich announced the 14th Annual "Remembering Our Veterans and Their Families: Past, Present and Future" event on Saturday, May 28 at the County Park; and that later in the morning there will be a Sheriffs Memorial honoring officers who lost their life in law enforcement during the past year; he expressed his concerns regarding the recent Supreme Court decision regarding the releasing of thousands of state prisoners back into the community and neighborhoods and noted that this action will have a catastrophic impact on every county and city; and he addressed the State budget issues and indicated that the State should increase productivity, eliminate unfunded positions and consolidate and eliminate unnecessary agencies. The City Council updated Supervisor Antonovich on the Race Track and the Caruso project. No further business, the meeting adjourned at 8:55 a.m. James H. Barrows, City Clerk [1 IlicY*4.(At X By: Lisa Mussenden, Chief Deputy City Clerk 05 -25 -11