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HomeMy WebLinkAboutMarch 18,200850:0035 CITY COUNCIL/REDEVELOPMENTRGENCY REGULAR MEETING MINUTES TUESDAY, MARCH 18, 2008 CALL TO ORDER Mayor Segal called the Study Session Meeting to order at 5:00 p.m. ROLL CALL OF CITY COUNCIL/REDEVELOPMENTRGENCY MEMBERS: PRESENT: Council/Agency Member Amundson, Chandler, Harbicht, Wuo and Segal ABSENT: None CLOSED SESSIONISTUDY SESSION PUBLIC COMMENTS (5 minutes per person) None STUDY SESSION a. Report, discussion and direction regarding Methodist Hospital of Southern California Tax-Exempt Bond Financing and Lease Amendment. Don Penman, City Manager provided a summary of the Methodist Hospital of Southern California Tax-Exempt Bond Financing and Lease Amendment. '- -Steve Deitsch, City Attorney reported that the City last provided similar assistance to the Hospital in 1996; he noted that the current project is for a proposed expansion and seismic retrofit. He commented that the Hospital officials will explain more in detail what the project is, the size of their financing and what they need from the City in order to conduct the TEFRA hearing on April 1, 2008 which is required by law. Mr. Deitsch explained that a lease amendment would be needed in order to assist with the financing; and noted that land use issues, zoning and a proposed lease amendment would come before the City Council in the near future in order to help facilitate the Hospital financing. Dennis Lee, CEO of Methodist Hospital provided an overview of the history of Methodist Hospital, number of patients per year, emergency room visits, number of employees, babies delivered and the service it provides to surrounding areas. He also provided an overview of the Seismic Safety Act, new patient tower and the new parking structure. Steve Hollis, Goldman Sachs Housing and Health Care Funding Corporation appeared and reported on the plan of financing. Nikki (inaudible) discussed the Federal Housing Administration insurance program (FHA-242) which addresses the financing needs of hospitals; she noted that FHA guarantees mortgage loans made to hospitals and noted that loans are typically funded with tax-exempt bonds. She provided an FHA 242 mortgage overview and Series 2008 bond review. ' Steve Hollis further commented that the Hospital is asking for Bonds to be sold which requires a TEFRA hearing. He explained that the TEFRA hearing requires a hearing be held in the city where the project is located. 03-18-2008 50:0036 Mike La Pierra of California Statewide Communities Development explained that his company ' would be the issuer of the tax-exempt bonds for Methodist Hospital and the financing cannot proceed without the City's approval of a resolution approving the financing. Mr. La Pierra noted that the City hold a public hearing and adopt the TEFRA Resolution approving the financing to be undertaken through California Statement Communities Development Authority. Kevin Hale from Orrick Herrington, Bond Counsel for the Hospital explained the TEFRA Hearing process. Mr. Penman noted that the current Lease is for anon-profit hospital on the site and the City is currently working on a Lease Amendment which would also allow for a profit hospital on the site. Mr. Deitsch noted that the original Lease is a 99 year lease entered into in 1953 and expires in 2052; there have been 6 amendments to the Lease which do not affect the term of the Lease; he noted that the proposed lease amendment would extend the Lease to 2058 and allow for a "for profit hospital". He also noted that insurance requirements will be updated. Mr. Penman noted that a TEFRA public hearing will be conducted on April 1, 2008; the City Attorney will work with Hospital regarding the Lease Amendment and zoning issues will be reviewed by City staff. CLOSED SESSION a. Pursuant to Government Code Section 54956.9(b)(1) to confer with legal counsel regarding anticipated litigation: One (1) case. RECONVENE CITY COUNCIUREDEVELOPMENTRGENCY MEETING TO OPEN SESSION Mayor Segal convened the Regular Meeting at 7:00 p.m. in the Council Chamber. INVOCATION Reverend Larry Eckholm, Lutheran Church of the Cross PLEDGE OF ALLEGIANCE Council Member Roger Chandler ROLL CALL OF CITY COUNCIUREDEVELOPMENT AGENCY MEMBERS: PRESENT: Council/Agency Member Amundson, Chandler, Harbicht, Wuo and Segal ABSENT: None REPORT FROM CITY ATTORNEY/AGENCY COUNSEL ON CLOSED SESSION/STUDY SESSION ITEMS City Attorney Steve Deitsch reported that the City Council met in a study session to receive a report from Methodist Hospital concerning a proposed expansion, seismic retrofit project and , proposed method of financing. No further action was taken. 03-18-2008 50:0037 Mr. Deitsch also reported that the City Council met in closed session to consider the one (1) case listed on the posted agenda. No reportable action was taken. SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS None MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by Council/Agency Member Amundson, seconded by Council/Agency Member Chandler 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 to Elizabeth Lopez, 2007 Outstanding School Crossing Guard of the Year for City of Arcadia. PUBLIC COMMENTS There were no public comments. ' REPORTS FROM THE MAYOR, CITY COUNCIL AND CITY CLERK Council Member Wuo congratulated Elizabeth Lopez on receiving the 2007 Outstanding School Crossing Guard of the Year for the City of Arcadia and thanked all the school crossing guards for doing a great job. Council Member Harbicht had nothing to report. Council Member Amundson thanked Captain Devlin, the crew of Station- 106 and the entire Arcadia Fire Department for a job well done in responding to a family emergency. Councii Member Chandler had nothing to report. City Clerk Barrows had nothing to report. Mayor Segal announced the April 5th Derby Day 5K RunlWalk and encouraged everyone to attend and participate. 1. CONSENT CALENDAR REDEVELOPMENT AGENCY ITEMS: a. REGULAR MEETING MINUTES OF MARCH 4, 2008. Recommended Action: Approve 03-18-2008 3 50:0038 CITY COUNCIL ITEMS: b. REGULAR MEETING MINUTES OF MARCH 4, 2008. ' Recommended Action: Approve c. AUTHORIZE THE CITY MANAGER TO AWARD A PURCHASE ORDER CONTRACT TO GALE CENGAGE LEARNING FOR THE PURCHASE OF SUBSCRIPTIONS TO FIVE ELECTRONIC DATABASES IN THE AMOUNT OF $35,145.43 FOR LIBRARY PATRONS. Recommended Action: Approve d. AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH C.P. CONSTRUCTION CO., INC. FOR THE FAIRVIEW AVENUE SEWER RELIEF LINE PROJECT IN THE AMOUNT OF $577,960. Recommended Action: Approve e. AUTHORIZE THE CITY MANAGER TO APPROVE A CONTRACT WITH KR NIDA COMPANIES FOR THE INSTALLATION OF THE EMERGENCY ALARM INFRASTRUCTURE IN FIRE STATION 105 AND APPROPRIATE AN AMOUNT NOT TO EXCEED $45,000 FROM THE CAPITAL OUTLAY FUND. Recommended Action: Approve f. AUTHORIZE THE CITY MANAGER TO EXECUTE AND SIGN ON BEHALF OF THE CITY OF ARCADIA A GRANT APPLICATION FOR RECEIPT OF FY 2008 FEDERAL FUNDS REQUIRING CITY MATCHING FUNDS FOR WATER SYSTEM IMPROVEMENTS. Recommended Action: Approve A motion was made by Council/Agency Member Chandler, seconded by Council/Agency Member Amundson and carried on roll call vote to approve items 1.a through 1.f on the City Council/Agency Consent Calendar. AYES: Council Member Chandler, Amundson, Harbicht, Wuo and Segal NOES: None 3. CITY MANAGER a. REPORT REGARDING THE NEGOTIATION OF THE RESIDENTIAL REFUSE AND RECYCLING CONTRACT WITH WASTE MANAGEMENT INC. Recommended Action: Provide direction Marie Rodriguez, Management Analyst, Public Works Services Department reported that Waste Management has been the City's exclusive residential hauler since 1999 and their contract is due to expire on June 20, 2009; she further reported that Waste Management maintains one of the lowest refuse rates in the San Gabriel Valley and has consistently provided excellent service for the past 9 years to the City. She reported on the many refuse programs Waste Management administers and noted that through these outreach programs, Arcadia has achieved a 69% diversion rate which exceeds the 50% diversion rate mandated by AB 939. She noted that with , the closure of the Puente Hills Landfill in October 2013, the main issue to be negotiated in the new Residential Refuse and Recycling Contract would be the formula by which rate are adjusted annually. She further noted the current contract with Waste Management states that 03-18-2008 50:0039 good faith negotiations must begin by July 1, 2008, with a new contract being reached by January 1, 2009. The City Council (5-0) directed staff to begin contract negotiations with Waste Management for residential recycling arid refuse collection. b. REPORT REGARDING SCHEMATIC DESIGN FOR PROPOSED NEW CITY HALL PROJECT. Recommended Action: Provide direction Phil Wray, Deputy Director of Development Services provided a brief summary of the schematic design of the new City Hall project; he noted that the architect made modifications to the building elevations as requested by the City Council at a previous meeting. He further noted the modifications made and provided a report on the site plan and explained the internal floor plan will have an open atmosphere and be accessible to the public. He provided a general overview of the department configurations and purposes. Dave Wantani of Steinberg Architects provided an overview of the building details and elevations; he noted that City Council comments were taken into consideration and incorporated into a new design plan which he presented. He discussed the modifications made to the building, columns, material and lobby entrance. The City Council indicated they were pleased with the design modifications and directed staff to bring back a recommendation to the lobby roof that would work with the design of the building, material, cost estimate and options for funding. Mayor Segal addressed Mr. Duran, who came in after the public comment period, and referred him to staff. Mr. Penman advised that a status report will be forwarded to the City Council regarding Mr. Duran's concerns which were first addressed back in October 2007. c. REPORT REGARDING THE COMMERCIAL SEWER BILLIING METHOD. Recommended Action: Provide Direction Pat Malloy, Assistant City Manager/Public Works Services Director reported that the current sewer billing method for commercial accounts does not equitably distribute the cost of operating and maintaining the sanitary sewer system. Tom Tait, Deputy Public Works Services Director provided the staff report regarding commercial sewer billing methods; he reported that the current commercial rates are $11.03 per month plus an additional $3.69 per month per each additional unit. He provided examples of commercial buildings with multiple units such as office buildings and restaurant usage. He explained the two billing options the City can pursue and staff recommended Billing Option No. 1. He noted that staff will be proposing residential and commercial rates for fiscal year 2008-09 at the April 1s` City Council meeting. He further noted there would be an irrigation credit automatically calculated into both proposed options; he reported that staff met with an engineering firm that specializes in sewer rates structures and that the industry standard is to give a 10% reduction in water consumption on commercial sewer rates. 03-18-2008 50:0040 A motion was made by Council/Agency Member Harbicht, seconded by Council/Agency Member Amundson and carried on roll call vote to pursue Billing Option No. 1 -using $170,000 as the target revenue for fiscal year 2007-08 and assuming commercial customers will consume 810,000 CCF minimum annually - $11.03 base fee per month plus $0.08 per unit of water consumed. AYES: Council Member Harbicht, Amundson, Chandler, Wuo and Segal NOES: None ADJOURNMENT The City Council/Redevelopment Agency adjourned this meeting at 8:15 p.m. to April 1, 2008 at 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. Mickey Seg I, Ma or ATTEST: l", James H. Barrows, City Clerk C~ 03-18-2008 6