Loading...
HomeMy WebLinkAboutDecember 16,2008~N~POanG FA CITY OF ARCADIA CITY COUNCIL/REDEVELOPMENT AGENCY REGULAR MEETING .. TUESDAY, DECEMBER 16, 2008 AGENDA 6:00 p.m. Location: City Council Chamber Conference Room, 240 W. Huntington Drive CALL TO ORDER ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: Robert Harbicht, Mayor/Agency Chair John Wuo, Mayor Pro Tem/Agency Vice Chair Peter Amundson, Council/Agency Member Roger Chandler, Council/Agency Member Gary Kovacic, Council/Agency Member CLOSED SESSION/STUDY SESSION PUBLIC COMMENTS (5 minutes per person) Any person wishing to address the City Council/Redevelopment Agency during the Public Comments period is asked to complete a "Public Comments" card available in the Council Chamber Lobby. The completed form should be submitted to the City Clerk/Agency Secretary prior to the start of the Closed Session/Study Session. In order to conduct a timely meeting, there will be a five (5) minute time limit per person. All comments are to be directed to the City Council/Redevelopment Agency and we ask that proper decorum be practiced during the meeting. State law prohibits the City CouncillRedevelopment Agency from discussing topics or issues unless they appear on the posted Agenda. CLOSED SESSION a. Pursuant to Government Code Section 54956.8 conference with real property negotiators. Prooertv: Winnie Way Park (509 Winnie Way) Citv Negotiators: City Manager and Assistant City Manager/Public Works Services Director Neootiatino Parties: City of Arcadia and Benson Tse (Property Owner) Under Neootiation: Price and Terms of Payment STUDY SESSION Report, discussion and direction concerning Utility Users Tax issues. Any writings or documents provided to a majority of the City Council regarding eny item on this agenda wil! be made available for public inspection in the City Clerk's oKce located at 240 W Huntington Ddve, Arcadia, Calilomia, during norms! business hours. 7:00 p.m., City Council Chamber RECONVENE CITY COUNCIL/REDEVELOPMENT AGENCY MEETING TO OPEN SESSION CALL TO ORDER INVOCATION Rabbi Michael Barclay, Congregation Shaarei Torah PLEDGE OF ALLEGIANCE Pat Malloy, Assistant City Manager/Public Works Services Director ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: Amundson, Chandler, Kovacic, Wuo and Harbicht REPORT FROM CITY ATTORNEY/AGENCY COUNSEL ON CLOSED SESSION/SSTUDY SESSION ITEMS SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL PUBLIC HEARING All interested persons are invited to appear at the Public Hearing and to provide evidence or testimony concerning the proposed items of consideration. You are hereby advised that should you desire to legally challenge any action taken by the City Council with respect to any Public Hearing item on this agenda, you may be limited to raising only those issues and objections which you or someone else raised at or prior to the time of the Public Hearing. REDEVELOPMENT AGENCY ITEMS: a. Recommended Action: Approve PUBLIC COMMENTS (5 minutes per person) Any person wishing to address the City Council/Redevelopment Agency during the Public Comments period is asked to complete a "Public Comments" card available in the Council Chamber Lobby. The completed form should be submitted to the City Clerk/Agency Secretary prior to the start of the 7:00 p.m. Open Session. In order to conduct a timely meeting, there will be a five (5) minute time limit per person. All comments are to be directed to the City Council/Redevelopment Agency and we ask that proper decorum be practiced during the meeting. State law prohibits the City Council/Redevelopment Agency from discussing topics or issues unless they appear on the posted Agenda. Any writings or documents provided to a majodty of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk's office located at 240 W Huntington Drive, Amadia, California, during normal business hours. REPORTS FROM MAYOR, CITY COUNCIL AND CITY CLERK 2. CONSENT CALENDAR All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council/Redevelopment Agency request specific items be removed from the Consent Calendar for separate action. REDEVELOPMENT AGENCY ITEMS: a. Fiscal Year 2007-2008 Redevelopment Aaencv State Controller's Report. Audited Financial Report. Housing and Community Development Report. Blight Removal Progress, Loan and Property Reports. Recommended Action: Receive and file CITY COUNCIL ITEMS: b. Services of Citv water samples in the amount of $25,100. Recommended Action: Approve c. Authorize the Citv Manager to execute a one (1) year Professional Services d. Recommended Action: Approve e. Reiect the bid submitted for the Installation of a Powered Vehicle Exhaust Extraction System. Recommended Action: Approve Recommended Action: Approve g. Ordinances rescinding project approvals relating to "The Shoos at Santa Anita Park". Adopt Ordinance No. 2252 repealing Ordinance No. 2228 which concerned a Development Aoreement between the Citv of Arcadia and Santa Anita Associates. LLC. Recommended Action: Adopt Recommended Action: Adopt Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk's office located at 240 W. Huntington Dhve, Arcadia, California, during normal business hours. Recommended Action: Approve Recommended Action: Adopt 3. CITY MANAGER a. Broadband Holdings. LLC. Recommended Action: Adopt b. Federal legislative advocacy priorities for 2009. Recommended Action: Approve c. Adopt Resolutions regarding a General Tax Measure to be placed on the ballot at a Special Municipal Election on April 21, 2009. qualified voters of a proposed ordinance updating the telephone/ telecommunications provisions of the City's Utility Users Tax. Recommended Action: Adopt Adopt Resolution No. 6665 reguestina the Board of Supervisor of the County of Los Angeles to consolidate a Special Municipal Election to be held on Tuesday. April 21. 2009, with the Arcadia Unified School District Board of Education election_to be held on that date pursuant to Section 10403 of the California Elections Code. Recommended Action: Adopt Recommended Action: Adopt Adopt Resolution No. 6667 providing for the filing of rebuttal arguments for Citv Measures submitted at Municipal Elections. Recommended Action: Adopt ADJOURNMENT The City Council/Redevelopment Agency will adjourn this meeting to Tuesday, January 6, 2009, 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (626) 574-5455. Notification 48 hours prior to the meeting will enable the City [o make reasonable arrangements to assure accessibility to the meeting. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will 6e made available for public inspectlon in the City Clerk's office located at 240 W Huntington Drive, Arcadia, California, during normal business hours. ~, ~~ fl~e~ MEMORANDUM Administrative Services Department DATE: December 16, 2008 TO: Mayor and City Council Donald Penman, City Manager FROM: Hue Quach, Administrative Services Director SUBJECT: Utility Users Tax Elections Result At the December 2, 2008 Study Session, the City Council directed staff to contact various local jurisdictions that had proposed measures to approve updated Utility Users Tax (UUT) ordinances and gather information on their development leading up to their passage or failed measure. Staff contacted the following Cities: Pasadena, San Gabriel, Lakewood, and Pomona. The following table summarizes each city's outcome, followed by an outline of common approaches that led to their success as well as some of the challenges that were encountered after their UUT measures were proposed: Yes/No City Proposed Measure Result Consultants Used Votes Public Info Campaign! Lou To retain current rate - 8.28% Edwards Group 58% - Y Pasadena for Telecom; Other utilities are Passed Polling (Opinion Research) ° 42 /o - N set at d ifferent rates. /Fairbank, Maslin, Maullin & Assoc. Public Info Campaign !Lou Edwards Group 63%-Y Increase from 6% to 8% Passed Gabriel Polling (Opinion Research) 37% - N / Tramutolla LLC Public Info Campaign / In- house Public Info Staff 80%-Y Lakewood To retain current rate - 3% Passed polling (Opinion Research) ° 20%-N /Fairbank, Maslin, Maullin & Assoc. To temporarily increase tax by None 30% - Y Pomona 1 % far a 2 years and 2 months period (from 9% to Failed Note: This measure was 70,/° _ N 1 D%) NOT initiated by the City. ~. Cities UUT Measures Information - December 16, 2008 I. Successful Cities/Commonalities (Pasadena/San Gabriel/Lakewood): • Had time to prepare public information campaigns prior to Council taking action to take their proposed measures to voters. o Educational fliers o City Newsletters /City's web page o Subcommittees: Senior groups; Chamber of Commerce; Council subcommittees. o Community meetings: Presented budget information and public education on the difficulties of maintaining certain service level should a portion of their tax was taken away. o FAO's -General UUT info & services in jeopardy if revenue is loss After declaration of a measure, worked with Consultants to prepare public information campaigns presenting just facts and concurrently worked with an opinion research company to assess the community's concerns with regards to level of services and service cuts. • San Gabriel & Lakewood -Their community had generally supported their UUT. Their community understood that the tax stayed in the City and provided far critical services to the community. • With exception to San Gabriel, the successful cities kept their tax rates the same. All cities modified only their telecom language. • In San Gabriel, City staff voluntarily hung door hangers throughout the community the weekend before the election. • Pasadena succeeded because people were concerned about the loss of services. II. Groups Against Ordinance Revisions: • Pasadena: o Two were community groups: One group argued that the City didn't need the money ^ Second group argued that it was a tax on the Internet o One outside anti-tax group spent approximately $60,000 on fliers that were sent to residents and businesses. • San Gabriel: o Electorates were very supportive o No opposition groups e Cities UUT Measures Information December 16, 2008 Groups Against the Ordinance Revision (Cont'd): • Lakewood: o Had a small community group .that was anti-tax in general. However, this group was not very active. o Did not hear opposition arguments from the business community. o Community was generally receptive to the ordinance update as this was not a new tax. All Cities felt strongly that a consultant should be on board to help with the public information campaign. The facts presented through the campaign helped counter the opposition's arguments: a new tax; new Internet tax; or that the city had ample reserves to counterbalance the loss revenue. III. Unsuccessful City (Pomona): The City of Pomona's measure failed primarily because the City was not the initiator the measure. The proposed measure was initiated by a citizen who felt the City needed additional funds for Public Safety services. Pomona did not play a part in the public outreach or provided any other resources other than to fund the election cost. The City still retained their 9%UUT even though this measure failed. Summary: Overall, UUT ballot measures pertaining to updates of telecom language have achieved successful results when there was not increase in rate or a slight reduction. In November 2008 election, all fourteen (14) measure to expand UUT language but maintain or reduce the rate, passed. Only three of nine proposing rate increases were approved. In the June 2008 election, six of six UUT telecom measures were approved; only one new UUT was proposed and it failed. ^^^ STAFF REPORT December 16, 2008 Arcadia Redevelopment Agency To: Chairman and Redevelopment Agency Board From: Jason Kruckeberg, Development Services Director/Deputy Executive DirectoUzK By: Jerry Schwartz, Economic Development Manager j<-3 Subject: Mid-Plan Update to the Five Year Implementation Plan FY 2005-2010 for the Arcadia Redevelo ment A enc Recommendation: Approve SUMMARY Section 33490 of the Health and Safety Code requires every redevelopment agency to prepare an implementation plan for its redevelopment program every five years. This requirement began in 1994 with the implementation of AB 1290, which was created, in part, to make agencies more accountable to the governing board and the public. The Arcadia Redevelopment Agency approved its most recent Five Year Implementation Plan in December 2004. Health and Safety Code Section 33490[c] requires the review of the Implementation Plan at least once during the five year period. DISCUSSION Five Year Implementation Plan FY 2005-2010 identified a series of redevelopment goals for the five year planning period and beyond. It addressed priority commercial development activities and programs and projects to improve and increase the supply of affordable housing. The Implementation Plan provided an update on the financial status of the Central Redevelopment Project Area for the purpose of recognizing the ability to accomplish these various goals. The Mid-Plan Update reviews the Agency's activities since approval of the Five Year Implementation Plan. It also recognizes issues that have impacted the redevelopment program in the last four years. The Agency has been successful at acquiring the properties at 35 West Huntington Drive and 21 Morlan Place that are needed for the expansion of Rusnak/Arcadia. Rusnak has decided to use these sites on a short term basis to expand its parts and service business in Arcadia, which should generate additional sales tax for the General Fund. The Agency Board has approved leases with Chairman and Redevelopment Agency Board December 16, 2008 Page 2 Rusnak to accommodate that expansion. Staff relocated self-storage tenants out of the basement and first floor to allow for Rusnak to move its parts inventory into the 35 W. Huntington Drive property. The Agency has worked with the Church in Arcadia as part of its purchase of the 21 Morlan Place property for Rusnak, arranging an alternative site on five Oak Avenue for the Church to locate and creating a left turn pocket to facilitate access into the new site. Staff has also worked with the Church to find a temporary location for its weekly meetings during the construction of its Live Oak facility as was agreed to in the Purchase and Sale Agreement between the Church and the Agency. The Agency is continuing to pursue the purchase of Rod's Diner to allow the permanent expansion of Rusnak/Arcadia. The Mid-Plan update also discusses some of the other activities that the Agency has undertaken as part of enhancing the economic environment of the business community. The Agency funds a fagade improvement program, in which it offers up to a 75% match for signs, painting the building and other upgrades to commercial buildings in the project area. The Agency funded the cost for banners to promote the 2008 Breeder's Cup, an event that brings the world to Arcadia. These promotional materials will be used again when the Breeder's Cup returns to Santa Anita in October 2009. Additionally, to celebrate the holiday season, the Agency has funded Christmas decorations in the downtown, with holiday banners and candy canes on Huntington Drive between Santa Clara Avenue and Fifth Street. With the Alta Street townhouse project, the Agency completed its first affordable housing project in the Central Redevelopment Project Area. The project, located at 119-121 Alta Street, is a six-unit, low density, owner-occupied project for first time homebuyers in the low/moderate income levels. The project fits well into, and upgrades, the surrounding neighborhood. As the Mid-Plan update reflects, affordable housing will be a high priority during the remaining planning period and beyond. The Agency has contracted with a housing consultant regarding affordable housing options and will be actively pursuing projects in the coming fiscal year. At the same time, the Agency no longer has the power of eminent domain to assemble sites, making the redevelopment process slower and potentially more expensive. Additionally, the regional, state, and national economy all dropped at levels unseen in decades, impacting efforts to achieve substantial commercial development. It is becoming important for the Agency and the City to look to the future and prepare for the economic recovery. Consideration of this Mid-Plan Update must be done pursuant to a public hearing. Notice of the hearing appeared in the Arcadia Weekly for three weeks and was posted in four places in the project area for more than four weeks. ..:~;~<. ':i` 5' n Chairman and Redevelopment Agency Board December 16, 2008 Page 3 FISCAL IMPACT There is no fiscal impact from this review of the Five Year Implementation Plan. Successful redevelopment projects have generated significant sales tax, property tax, and transient occupancy tax, created new jobs, and improved the supply of affordable housing. RECOMMENDATION Pursuant to a public hearing, review the activities of the Redevelopment Agency and approve the Mid-Plan Update to the Five Year Implementation Plan FY 2005-2010. Approved by: ~~ Donald Penman, Executive Director Attachment: Exhibit A: Mid-Plan Update to the Five Year Implementation Plan FY 2005-2010 ARCADIA REDEVELOPMENT AGENCY FIVE YEAR IMPLEMENTATION PLAN FY 2005 - 2010 MID-PLAN PROGRESS REPORT City of Arcadia 240 West Huntington Drive Arcadia, CA 91007 (626) 574-5415 December 16, 2008 SECTION 1: DEVELOPMENT OF THE IMPLEMENTATION PLAN 2005-2010 Review of AB 1290 and the Requirement to Develop an Implementation Plan On October 6, 1993, Assembly Bill 1290 ("AB 1290") was signed into law. Entitled the "California Community Redevelopment Law Reform Act of 1993", AB 1290 enacted several changes to the Community Redevelopment Law (CRL), including the introduction of Article 16.5 thereof. Article 16.5 of the CRL provides, in ,part, that an implementation plan shall contain "the specific goals and objectives of the agency for the project area, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs and expenditures will eliminate blight within the project area and implement the requirement of the housing provisions of the CRL". This mid-plan review of the Arcadia Redevelopment Agency Five Year Implementation Plan FY 2005-2010 revisits the goals and objectives of the-Agency's redevelopment plan for the Central Redevelopment Project Area and outlines the Agency's strategies to achieve these goals and objectives. In addition, this mid-plan review of the Five Year Implementation Plan presents the projects and programs that have been identified as a means of attaining the goals and objectives and describes how the activities will eliminate blight within the project area. 7 The five year implementation plan has been a requirement of redevelopment agencies since 1994 as a result of AB 1290. The Agency has approved three five year implementation plans since AB 1290 was adopted. The third plan, Five Year Implementation Plan FY 2005-2010, was adopted by the Agency Board on December 7, 2004. AB 1290 requires that each implementation plan contain the goals and objectives of the redevelopment agency for the project area(s). Adoption of the implementation plan or the mid-plan review does not constitute an approval of any specific program, project, or expenditure and shall not change the need to obtain any required approval of a specific program, project, or expenditure from.the Redevelopment Agency. The Five Year Implementation Plan FY 2005-2010 was developed with a focus on the priorities of the Agency for the next planning period. Requirements for the Mid-Plan Progress Report Section 33490(c) of the CRL, the portion of the State law that governs redevelopment agencies requires, that once within the five year period of the implementation plan, each redevelopment agency conduct a public hearing to review the efforts made to meet the goals of the five year implementation plan. Notice of the hearing must appear in the newspaper three times within a 21-day period, with noticing to be concluded not less than ten days prior to the hearing. Additionally, the hearing notice must be posted in at least four places in the project area for a period of three weeks. All of these noticing requirements have been strictly adhered to with regard to this Mid-Plan Progress Report. 2 ,.;' The purpose of this Mid-Plan Progress Report is to review the implementation plan in the context of the redevelopment plan and evaluate the progress of the redevelopment project. The Five Year Implementation Plan FY 2005-2010 is divided into (i) non-housing goals (commercial activities) and the accomplishments identified to reach those goals, and (ii) the housing requirements of the CRL, and the goals, objectives, and activities identified to meet those requirements. This Mid-Plan Progress Report reviews the non-housing and housing activities that have been undertaken since the Implementation Plan was adopted. It also looks at the economic situation and other events and their impact on the ability to complete the activities in the Five Year Implementation Plan. The Redevelopment Project Area The Arcadia Redevelopment Agency was established on December 17, 1968 by City Council Ordinance 1396. The Central Redevelopment Plan was adopted by City Council Ordinance 1490 on December 26, 1973. The Base Year is 1974. A copy of the map showing the boundaries of the Central Redevelopment Project Area is attached to this report. Further details regarding activities in the project area will appear in Section 3 of this report. SECTION 2: ECONOMIC OVERVIEW AND ISSUES IN ARCADIA When Implementation Plan FY 2005-2010 was approved in December 2004, the economy was in a strong condition. The outlook for the Arcadia Redevelopment Agency to achieve many of its goals and objectives was positive, impacted primarily by the availability of Agency funds to pursue projects. The biggest concern was increasing commodity prices which increased the cost of construction projects. Additionally, given the international demand for some construction materials, such as steel, developers often faced challenges to keep projects on schedule. Overall, development was continuing and there was general optimism. The housing market was robust, with lenders offering mortgages to buyers with little equity and high debt ratios. There seemed to be no end in sight for the economy or development activity. By 2007, the economic climate was changing. Fuel prices reached historic highs, food prices climbed rapidly, and optimism began to wane. These cost escalations impacted the choices made by the average individual who started to travel less, eat in restaurants less, and shop more carefully for groceries. Retailers became more cautious about expansion, and development projects that had seemed like "sure things", were no longer viewed that way. Economists now agree that the economy slipped into recession in December 2007. This means that in December the country had endured two successive quarters of negative growth. The qualities described above reflect an economy trending down. The recession was reflected in lower home prices, fewer home sales, weaker retail sales, and escalating unemployment. 3 This current year, 2008, has been difficult and historic. It was expected that 2008 would be a lot like 2007, with things continuing to trend down on the same trajectory. However, as consumers spent less, retail chains either started closing stores or declared bankruptcy. Chains such as Linens'n Things, Levitz Furniture, and Sharper Image declared bankruptcy during late 2007 or early 2008, and others, such as Foot Locker, Ann Taylor, and Zales Jewelers announced the closure of over 100 stores each.. This was the first indication that the economic situation was worse than anticipated. The International Council of Shopping Centers predicted that store closures in 2008 would exceed 2007 by 25%. These closures didn't include the myriad chains that delayed expansion plans. The impact has been greater retail vacancies and reduced demand for all categories of commercial space. In the second half of 2008, the bad news has escalated at every level; unemployment, banks and lending, stock prices, retail sales, auto sales, and consumer confidence. These changes have occurred at levels not seen in a lifetime. Most analysts don't believe that the economy has bottomed out and won't until sometime in 2009 or later. The impact on the Arcadia and the Arcadia Redevelopment Agency is that while new development and .commercial investment has slowed, the supply of vacaht space 'has grown. Arcadia has always been, and continues to be, a preferred place for businesses to locate. However, in addition to continuing with the redevelopment activity that will be discussed later in this report, the Agency will have to provide more support to our businesses and commercial property owners, including marketing our community and available commercial locations in ways that haven't been necessary before. It is a necessary step to help prepare for the recovery that will eventually take hold. SECTION 3: COMMERCIAL ACTIVITIES Five Year Implementation Plan FY 2005-2010 lists various goals and objectives of the Arcadia Redevelopment Agency during the five year planning period. These goals focus on blight elimination, job creation, revenue enhancement, implementing the City's General Plan, encouraging private investment in the project area and City as a whole, and promoting development that enhances the physical environment of the City. Despite the adverse national and regional economic conditions described above, the Agency has had several notable successes in its redevelopmenUeconomic development activities. The programs and projects undertaken since the adoption of the Five Year Implementation Plan are described briefly herein. Expansion of Rusnak/Arcadia Men;edes Benz Automotive Dealership - Rusnak/Arcadia's interest in expanding matched the Agency's desire to keep the dealership in Arcadia and in the project area. To facilitate the expansion, the Agency made offers to purchase the adjacent properties to create the space for a large, state of the art dealership. In 2006, the Agency acquired the Arcadia Self-Storage property at 35 West Huntington Drive. In 2008, the Agency acquired 21 Morlan Place from the Church in Arcadia. However, efforts to acquire the Rod's Grill property have proved more challenging, and continue with a new purchase offer made in the last few months. 4 ~; Leases with Rusnak/Arcadia to Expand Parts Business - Rusnak/Arcadia expressed interest in utilizing the 35 West Huntington Drive and 21 Morlan Place sites to expand its parts and service business in the City. The Agency and Rusnak reached agreement on short term leases for both properties. The two-year lease for the Arcadia Self Storage Building at 35 West Huntington Drive involves the dealership using the basement and first floor for an exparided parts inventory, including computerized inventory control. The Agency and Rusnak have amonth-to-month lease for the Church property at 21 Morlan Place, with the dealership using the parking area to park cars for its business expansion. Relocation of Tenants to Accommodate Rusnak/Arcadia Expansion - To create the space for the Rusnak parts expansion, the Agency worked the manager of Arcadia Self Storage and our consultant to relocate 45 tenants from the basement and first floor to the upper three floors during October 2008. The Agency provided a professional moving company to simplify each move and worked with tenants' schedules regarding the moving dates. The Agency has also worked with the leadership of the Church in Arcadia to temporarily relocate their Sunday worship meetings to Dana Middle School and to provide them with office space in the downtown for .regular administrative activities and leadership meetings during the temporary relocation. Moving of Church in Arcadia to Property on Live Oak Avenue - As part of the Purchase and Sale Agreement between the Agency and the Church in Arcadia, the Redevelopment Agency provided a site on Live Oak Avenue for the Church to build a new facility. In addition, the Agency designed and built a left turn pocket on Live Oak Avenue to create access to the new Church property. The Church is designing its new facility and expects to move in within approximately 18 months. Rehabilitation of Arcadia Self Storage Building -The Arcadia Self Storage building, at 35 West Huntington Drive, was purchased by the Agency in 2006. In 2008, the Agency Board approved a budget allocation to rehab the exterior of the building, renovate the streetfront fagade on Huntington Drive, and improve the interior of the three commercial tenant spaces. The bid package for the improvements will be distributed in January 2009. The Agency will attempt to lease the commercial spaces once the rehab is complete and they are ready for occuparicy. Fagade Improvement Program -The Agency budgets approximately $50,000 annually for fagade improvement in the project area. The 75%/25% match funds signs, awnings, painting and other improvements to the building storefront. Although the Agency has only funded one or two projects the past several years, the program is designed to generate private investment from the applicant and potentially from neighbors that recognize the need to upgrade to remain competitive. Demand for this program could increase during the economic downturn so that businesses can maintain a competitive edge with limited investment. 5 y Breeders Cup -The 2008 Breeder's Cup Horse Racing Championships brought the world to Arcadia. The Agency helped promote this unique event by funding the banners that appeared on light poles around the community during the weeks leading up to the two days of racing. The banners will be used again when the Breeder's Cup returns to Arcadia in November 2009. This investment in marketing the community should provide long term benefits to Arcadia and its businesses. Christmas Decorations in Downtown Arcadia - To celebrate the holidays and bring shoppers to the downtown, the Agency has funded Christmas decorations on Huntington Drive for the first time. The candy canes and holiday banners extend from Santa Clara Avenue to Fifth Street, and provide a festive atmosphere throughout the business district. The decorations could be expanded to other areas for the 2009 holiday season. Fire Station 105 -The Redevelopment Agency is permitted to expend funds for public improvements and certain City facilities. Agency funds paid,for architectural.services and staff oversight of this important community facility. Fire Station 105 opened in 2008, significantly upgrading the fire and life safety capabilities of the City. The Agency's contribution was an important part of getting this project completed. Loss of Eminent Domain Authority -California Health and Safety Code, the section of State Law that governs redevelopment, provides agencies the power of eminent domain to acquire property for a public purpose. Since the approval of Five Year Implementation Plan FY 2005-2010, the Agency Board has given up its right to use eminent domain to acquire property or assemble development sites. To compete against a ballot measure that would prohibit automobile'sales in the downtown area, the City Council put a measure on the ballot that would eliminate the Agency's right to eminent domain, but presence the auto sales use. This measure was approved by the voters in 2007. SECTION 4: AFFORDABLE HOUSING ACTIVITIES A. Affordable Housing Projects - One of the most important goals of the Redevelopment Agency is to increase and improve the supply of housing available to low and moderate income individuals and families. As required by Redevelopment Law, the Agency sets aside 20% of its tax increment receipts annually for investment in affordable housing. While a portion of these set aside monies can be spent to administer the affordable housing program, the primary purpose is the production of affordable housing. Since the approval of the last .Five Year Implementation Plan in 2004, the Agency has completed its first affordable housing project. 119-121A1ta Street -This six-unit townhome project was sold to low/moderate income first time homebuyers. The project was built by a developer selected by the Agency, with a design that fits in with, and enhances the surrounding neighborhood. The project opened in 2008. The Agency is developing a monitoring program to insure that the units remain affordable. 6 ,~. It is a high priority for the Agency to continue to develop programs to enhance affordable housing opportunities in the community. The Agency has hired a housing consultant to assist in identifying the best ways for the Agency to leverage its resources for affordable housing. Throughout the remainder of this planning period, and during the next five year planning period, affordable housing will be one of the primary goals for the Agency. B. Affordable Housing Financial Resources -With the 20% of tax increment that the Agency sets aside annually, there are sufficient resources available to pursue affordable housing. At the end of FY 2007-2008, the Agency's available balance in the low/moderate housing fund was $4,141,906. In addition, the Agency owes the low/moderate income housing fund $4,045,715. When this is repaid, it will create an available balance of: FY 2007-2008 balance $4,141,906 Repayment from CRA $4,045,715 Total Available $8,182,621 ~~ The biggest financial risk to the Agency is 'excess surplus , which means that the Agency maintains a multiple year balance in the housing fund that exceeds the last four years of low/moderate housing revenues. If this occurs, all Agency activities can be shut down other than affordable housing. It is essential that the Agency expend its affordable housing funds to avoid this situation. To date, the Agency has not demolished any affordable housing to facilitate redevelopment, nor has it relocated any families from affordable units as part~of its redevelopment activities. As a result, the Agency does not owe any replacement or inclusionary housing units at this time. SECTION 5: CONCLUSION The Agency has overcome a worsening economic environment to continue work on its priority projects. There have been successes with the short term expansion of Rusnak/Arcadia and marketing for the Breeder's Cup. The Agency also completed its first affordable housing project. During the remainder of this planning period, three additional issues will be critical: one, the Gold Line extension into Arcadia; two, the economy and the need to focus on local businesses and the business environment; and, three, the General Plan update. The Agency will be preparing a new Five Year Implementation Plan in 2009. These three issues will be considered in greater detail during the next Plan. 7 STAFF REPORT Arcadia Redevelopment Agency December 16, 2008 To: Mayor and City Council Arcadia Redevelopment Agency Board . From: Jason Kruckeberg, Development Services Director/Deputy Executive Director,3+-~ Prepared by: Jerry Schwartz, Economic Development Manager ~~S Subject: FY 2007-08 Redevelopment Apency State Controller, Audited Financial, State Housino and Community Development, Blight Removal Progress, Loan and Property Reports Recommendation: Receive and File SUMMARY California Redevelopment Law requires the Agency to prepare certain reports each year on its activities. These reports include an Audited Financial Report, the State Controller's Report, and Housing and Community Development (HCD) Report, all of which provide a detailed review of the Agency's financial transactions and low/moderate income housing activities during the 2007-2008 fiscal year. These three reports have been completed and will be transmitted to the State by the end of December 2008. Section 33080.1 of the Health and Safety Code, the section of State Law that governs redevelopment, also requires three additional reports be prepared annually and presented to the Agency Board within six months after the end of each fiscal year (December 31, 2008). These reports are, the Blight Progress, Loan, and Property Reports. Staff is recommending that the City Council and Agency Board receive and file the State Controller's Report, the Audited Financial Report, and HCD Report, and direct staff to file them with the appropriate State agencies. DISCUSSION The Agency's audit firm, Caporicci & Larson, prepared the 2007-2008 Audited Financial Report. The Agency received an unqualified report, meaning there were no audit exceptions for the past fiscal year. The Agency submits its annual report to the State Controller regarding its previous year's finances on forms provided by the State. Caporicci & Larson prepared the financial section of this report, with City and Agency staff completing the program and projects portions. The State Controller's Report and HCD Report will be transmitted to the appropriate State agencies via the Internet and are available for review in the Development Services Department. As previously noted, Section 33080.1 of the Health and Safety Code also requires that the three additional reports (Blight, Property, and Loan reports) be presented to the Agency Board within six months after the end of each fiscal year. These reports are attached as Exhibit A to this report. The reports and their purpose are described below: 1. Blight Progress Report, which specifies the Agency's progress in alleviating blight during the prior fiscal year, 2. Loan Report, which identifies any loans of $50,000 or more made by the Agency and are in default or not in compliance with the terms of the loan; and, 3. Property Report, which describes properties owned by the Agency and any acquired during the previous fiscal year. It should be noted that, although the Agency approved the acquisition of 21 Morlan Place during the past fiscal year, the transaction closed during the current (2008-2009) fiscal year, and will appear on the Property Report next year. FISCAL IMPACT There is no fiscal impact to the submission of these reports. If they are not submitted by the December 31 deadline; the Agency could be subject to financial penalties. That the City Council and Agency Board receive and file the Redevelopment Agency State Controller, Audited Financial, Housing and Community Development, Blight Removal Progress, Loan, and Property Reports for FY 2007-2008 and direct staff to transmit the necessary reports to the State by December 31, 2008. Approved by: c~er~,..Q~c~.,,-..~,~, Donald Penman, City Manager/Executive Director Eichibit A: Agency Audit, State Controller's Report, HCD Report, Blight Progress Report, Loan Report, Property Report December 16, 2008 Page 2 r-; FY 2007-08 Arcadia Redevelopment Agency AGENCYAUDIT Acadia Redevelopment Agency Arcadia, California Basic Financial Statements and Independent Auditors' Reports For the-year ended June 30, 2008 Management Discussion and Analysis The information presented in the "Management's Discussion and Analysis" isvitended to be a narrative overview of the Redevelopment Agency of the City Of Arcadia's (Agency) financial activities for the fiscal year ended June 30, 2008. We encourage readers to consider this information in conjunction with the accompanying Basic financial statements. FINANCIAL HIGHLIGHTS • The assets of the Agency exceeded its liabilities at the close of fiscal year June 30, 2008 by $3,876,624 (net assets). Net Assets of $8,187,621 is restricted for Low and moderate housing projects. The Agency has outstanding long-term debt for redevelopment of assets of which the Agency does not own or subsequently contribute. (State law requires the Agency to operate only when in debt, please see page 6). • The Agency's total net assets increased by $2,996,631 in fiscal year 2007-08. • As of the close of fiscal year June 30, 2008, the Agency's governmental funds reported combined ending fund balances of $20,608,586, an 'increase of $2,320,990 from the prior year. The increase in ending fund balance is attributable to the additional taxes revenues. OVERVIEW OFTHE BASIC FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the Redevelopment Agency of the City Of Arcadia's basic financial statements. The Agency's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. In addition to the basic financial statements and required supplementary information, this report also contains a report on compliance and on internal control over fviancial reporting based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. Govennvae»t-Wide Financial Statements The government-wide frnnncinl stntevients are designed to provide readers with a broad overview of the Agency's finances. These statements include all assets and Iiabilities, using the full accrual basis of accounting, which is sinular to the accounting used by most private-sector companies. All of the fiscal year's revenues and expenses are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus assets, liabilities and expenses are reported ui these statements for some items that will result in cash flows in future fiscal periods. The Stntement of Net Assets presents all of the Agency's assets and liabilities, with the difference reported as net assets. Qver time, increases or decreases in net assets may serve as a useful indicator to determine whether the financial position of the Agency is improving or deteriorating. • The Sintement of Activities presents information showing the Agency's revenues and expenses for the fiscal year. Functional activities are highlighted iar this statement, whereby direct and indirect functional costs are shown net of related program revenue. This statement shows the extent to which the various functions depend on general taxes and non-program revenues for support. Both of the government-wide financial statements highlight functions of the Agency that are principally supported by property tax increment, interest earnings, and bond proceeds from prior years. 3 P.edevelopment activities, in general, include providnlg needed public improvements, assisting with development and rehabilitation of existing properties, and providing ]ow and moderate-income housing to eliminate or alleviate blighting conditions. Frrnd Financial Staterrrenis A fiord is a grouping of related accounts that is used to maintain conhol over resources that have been segregated for specific activities or objectives. The Agency uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The Agency only has governmental fund types. Gor~ernmentni fr.rnds -Government funds are used to account for essentially the same functions reported as got~ernmentnf ncfit!ities in the agency-wide financial statements. However, unlike the agency-wide financial statements, governmental fund financial statements focus on nenr-term infloms and outflotus of syendnble resom•ces as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the agency's near-term financing requirements. Because the focus of governmental funds is narrower than that of the agency-wide fulancial statements, it is useful to compare the information presented for governmental funds with similar vlformation presented for governmental activities in the agency-wide financial. statements. By doing so, readers may better w~derstand the long-term impact of the agency's near-term financing decisions. Both the governmental fund balance sheet and the govenunental fund statement of revenues, expenditures, and changes in fund balances provide reconciliation on pages 75 and 17 to facilitate this comparison between governmental funds and governmental activities. The Agency maintains four individual governmental funds, of which all four are considered major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances, for each of these funds. Notes to Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the agency-wide and fund financial statements. AGENCY-WIDE FINANCIAL ANALYSIS Our agency-wide analysis focuses on the net assets and changes in net assets for the Agency's govetmental activities. A summary of the Agency's net assets is as follows: Current assets Other assets Total assets Non-current liabilities Other liabilities Total liabilities Net assets: Restricted Unrestricted Total net assets S 15,869,520 73,54],046 4,770,232 9,770,232 2D,639,752 ]3,311,278 75,860,000 76,570,000 903,128 867,285 16,763,125 77,931,285 ]0,035,150 9,141,406 (6,208,556) (8,267,913} $ 3,876,624 379,993 4 As noted earlier, net assets may serve over time as a useful indicator of the agency's flllancial position. In the case of the Agency, it is $3,876,624 at June 30, 2003, an uxrease of $2,996,631 from the prior year. By far the largest portion of the Agency's Liability reflects its bonded indebtedness totaling $16,570,000. The Agency, operaffi]g under California Redevelopment Law, must maintain debt in excess of its available assets to legally receive tax increment revenue. Bond funds may be used to acquire properties, construct buildings and infrastructure, and to alleviate blight. These expenditures do not generally create assets to offset bonded debt. Future tax increment revenues must be used to liquidate noncurrent bond liabilites. Governmental Activities Governmental activities increased the Agency's net assets by $2,996,631. Key elements of this increase are as follows: pevenues: General revenues: R'operh~ taxes Inveshnent income Total general revenues Expenses: Redevelopment activities ]merest on long terne debt Total expenses Changes in net assets Net assets (deficit) -Beginning o! year Net assets (deficit) -End of year $ 3,993,073 3,761,209 7,077,326 973,553 4,954,399 9,734,757 957,789 7,852,776 999,979 1,032,275 1,957,768 2,834,981 2,996,637 ],899,766 879,993 (969,773) $ 3,876,624 679,993 R'operty tax increment revenues are the Agency's major revenue source. This revenue ina-eased by $181,869 or 4.8% from the prior year. Investment eanwlgs of $1,011,326 were received from investments of available funds, an increase of $37,773 from the prior year due to higher market return. FINANCIAL ANALYSIS OF THE AGENCY'S FUNDS As noted earlier, the Agency uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governments l Funds The focus of the Agency's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessn~g the Agency's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of June 30, 2008, the Agency's govennnental funds reported combined ending fund balances of $20,608,586 an increase of $2,320,990 from the prior year. Unuesevved and undesignated fund balances totaled $9,744,480. 5 DEBT ADMINISTRATION Long-Term Liabilities At the end of the current fiscal year, the Agency had total bonded debt of $16,570,000. The bonds are secured solely by specified revenue sowres (i.e., property tax increment). The Agency's total debt decreased by $670,000 or 3.9% during the current fiscal year, due to scheduled debt service payments made for the tax allocation bonds issued in 2001. Standard & Poor's rates the Agenc}+'s overall 2001 credit rating as BBB+. ' ECONOMIC FACTORS AND NEXT YEAR'S BUDGET 1. It has eliminated its "incur debt limit;' as permitted by Senate Bill 211, but the Agency must now pass through 25°k of the growth v1 tax uicrement between FY2003-04 and future year's amiual tax increment to various taxing entities. 2. The Plan Termination azid Debt Payoff dates have been extended for an additional two years to 1/25/2017 and 1/25/2027 respectively, pursuant to Section 33607.7 of the Health & Safety Code. 3. The Agency continues to work on a possible ]and assembly in the Downtown for the expansion of Rusnak/Arcadia Mercedes-Benz.' 4. As part of the 2008-2009 California state budget, the Agency is required to shfft $318,643 in Property Tax Increment to the state as Educational Revenue Augmentation Fund (ERAF). REQUEST FOR INFORMAT]ON This financial report is designed to provide a general overview of the Agency's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Redevelopment Agency of the City of Arcadia, 240 W. Hwltington Drive, Arcadia, California 91006. G Arcadia Redevelopment Agency Balance Sheet Governmental Funds June 30, 2008 Major Funds ASSETS Cash uid investments Cash and investments with fiscal agents Interest receivable Due from County of Los Angeles Prepaid items and deposits Advances to other fwzds Property held for resale Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued salaries payable Depositr payable Advances from o0rer funds Total liabilities Fund Balances: Reserved for. Encumbrances Prepaid items and deposits Advances to odrer funds Property held for resale Debt servire Unreserved; undesignated, reported N: Capital projects fw~ds Total fund balances Total liabilities and fund balances Debt Service Fwrds Capital Projects Fwrds Tax Low and Total Tax Allocation Redevelopment Moderate Governmental Increment Bonds Projects Housing Funds $ - $ 25,190 $ 9,479,799 $ 4,078,216 $ 13,583,205 - 1,857,941 - - 1,857,941 - 14,4?8 97,971 41,804 154,203 - - 100,688 22,883 13,571 - - 150,600 - 150,600 - - 4,045,715 4,095,715 _ - 4,770,232 - 4,770,?32 $ - $ 1,697,559 $ 74,599,290 $ 6,188,618 $ 24,685,467 $ - $ - $ 17,642 $ - $ 17,642 _ - 4,203 997 5,200 _ - 8,324 - 8,324 - 4,045,715 - 4,045,715 - - 4,075,884 997 4,076,881 _ - 239,598 ]3,770 253,368 _ - 150,600 - 150,600 - _ - 4,045,715 4,045,715 _ - 4,770,232 - 4,770,232 - 1,897,559 - - 1,897,559 - 5,362,976 4,128,136 9,491,112 - 1,697,559 10,523,406 8,187,621 20,608,566 $ - $ 1,697,559 $ 14,599,290 $ 8,188,618 $ 24,685,467 See accompanybig Notes [o Basic Financial Statements. 14 The entire CRA -audit is request. Please contact Economic Development available upon Jerry Schwartz, Manager at 574-5409, if you would like a complete copy. FY 2007-08 Apcadia Redevelopment Agency STATE CONTROLLER'S REPORT O J C e C O ~O N O ' 1 G h N N a m m ~ . I u d C N E ~ a c ~ ~ ~ 9 ~ m t E-- ~ g a o c ~ d N 0 m ~ m a f] n @ C n III ~ O o ~ ~' ~ N ~ ~ ~ p y LL 1{ 0 = ~ I O O m LL L ~ t i ~ ~ Z ~+ LL ~ Q m r ~ w E v 5 o 1 m m' E ~ n y ~ E Z o E ~o m a .} m ° ° ~°.~ a O m y rn a iO i C a U ~~ s 1^ ~ _~ ~ ~ V ~ C ~ 0 ~ T a _ qq ~ V Z ~ y ~ 9 9 ~ ~ ~ U d G ~ p0 ~ ® 1~ Y LL N LL N J LL. ~d N V N h. t a iQ ~ ~~~~~~~~~~ ~ 9 W o C o I m rt _ m ~' U i Z t c `y o. ~ , ~ u K -°~ a C (7 U ~ 10 C N C I .~.. Ol ~ E_ ;5 v a a ~ o ~ ~ ~ ~ ~ S N ~ 2 I~ t Y ~~' '^ n ~,, ~ A n '• ~ ~ ~ ~ i c o a ... ~ ~ m E E E E E E E E '~- ~ ~ ~ ~, o g ri U ! ~ i ~ ~ ~ ~ g SC ~ N N V d m N m u .9 LL m O N f~ N 0 c A c C 0 EW L w c 'v Q N 0 ~~8 wm= m 'd y ~oC c y w c w o ° ~~ c~ c aam m w ~ m c m 1°mm o ~ U m m ~Na N a i m m s m X30 sm ~ S m N w ~ ° ~ c c m m m ! q ~ `° m ~ S t lL~ ~ Q aQ a m~ o c ~ «~~ 4 6 :% a ° c E m E,~ a c oEv .a U g a 'cS Um ~ amV< O r~;. am m O ' ~, Ta Oc m i =m~« ~ ~ ~ °c m ~ m c c~ o o QO~ Q u as dE as Q m '-'~ :.a oc . ~ n v cyao ~ m ~~ E m ' a n v° c c_ Q V ~ K~ m n U E y n U o C ~C U mY LL ~ m ~« U m=a O .ga m «~ ~ c ¢ o ~ £ y `~ ~ tf E " ~ 6 ~ m H N G~ ~ p V 3 ~ _ =dS .m 5=cii ~ YXl 0 N v u LL 0 0 N "a m a c w C Q Q v m 'o ` a c m Y _ U o ' - d ' K Q F _ d m E Y ~ C a ~ a ~ ~ a a . + v o i ~. m a` ~° `o ° ~ n ~ m 0 m ~ 4'o v O a` Y N ewer ~~~ ` m O 6 v ~ ° l0 > ]yam m =o . S r1 a ' u du or ~Q N d d ~ LL a=~ a w~~ o w n n N o a U E Y W O Z Y N N N N' W a, Q W c mQ c w a i T 0 m ~ O u c ~ c E m w a o ~ a E a @wg ~ ~ a II u d v ~ n Q ern o a C v a ~ ~ m 2 o t '3 a ~ ~ y aX ~2°. aN ;, c ~. v a% m~ E u' L° ~ d ~ ;' ~, c S E m 4 a$ Z o .a° c~ ° o ~ $' e E g e~ z~ n.- ~~ J ~ c~ x° q a aF. ~. m E o ~ R ~ R LL g r_' 0 Qm ~ E ~ m pp m ~ `~ ~ ~ ~ ~ £ `~ m e m d m 8 LL yEy E 3 H 3 ~, ~ c g.' ~ m~ ~ ~^w, o Q o o C m Q Z~ ~ ~ '~ O w m~ ~a ~ ~ 8 °c a 0 ~ ~ % 9 ~ ~ .. ` ~ ~ C R0 Q Cl II 9 r W d m a r c Q 'a4 C~ ~' ~ G L^ ~'. E o~ ~ a O a L~ gJ~ ~ ~ Iq A C~ C m a C N F y m ~ ~ ~ ~ ~ m Q E g a ~° ~ ~ m '9 '° $ °' c e~~ ^ 9 0 ~ F ° 9~ y N m iA ~ a v c mE E 2 0~ m a e °m `° orn m w 5 ~ °o n n° o ~ Q~ a s v c v a m . II w £ $ 8 n 3 v ~ 2 ~= c a o w O D~ o f ~$ uR ¢ ~w z in a a O W ~ ~ ~~m c o elN n w, c m n.+ t0 '° m'~. ~'_-g'~ o m £- ~ d c~ N n Z Q6[~~~~aN m°S t0=1~ Ew w~~ a O O~ N r C p w N a{.-5cpw ~~8>~ A~ m N a d a C 6 N a v 0 a m O 0 N .~ m O c 0 A a d w w m w ~ O W N ~ W N ~+j fO N ~ _ ~ o n ~ w "~ n v O ~ O c $ N o m a ~ W ~ j a C a a ~ m n ~ w ~^ m E ~' :B > m Q A Z y m N y C M m ~ d Q 0] N R Q ~ d N o o C ~ LL ` ` ° a u . r - v m m a 3 O c 0 m d O f L .y L °~~p 0 C L ° ~ d I y 4~ N C O m A (~ b l0 °`''° T G ~ ~= s ~ « €€LL C ~ m F p o $ J C a ~ ~ ~ ~ d R a K W v_ ~ E c v °m 'g ° d lL A c w ~ h d U ,ate d d E . ° > v o ° o a ~ ~ ~ ~ a ~ v ~_ ~ C ° ~ ~ d d E a~ a °~ ., LL a Q ~ ~. U -y N d V N a m N m Y a LL [D O O O O fC O O. O O O O O ' O N f0 N N'. N NN N N N N N N N I N' O) r n o co 0 O N _ O' pp H N N 'O '. O O O O '~O O O O O O O O '. O O 'N N N N N N N N N N N N N N; N n o 0 0' o m:. o o 0 0', 0. 0 o a r r N N N N O: N N N N N N N '. N f~ w r H N G o 0 0 0 o a o 0 0 0 0 0 o o N N N N N Q. H N N N N N N, N N N m ~ N N n , o o o o n o 0 0 0 o 0 0 0 i N N N N N ~ N ' N N N N N N N O O' O h '. N Oi m N O n N_ a N N c a c N ° ~ ~ 0 ~ ° LL C7 E ~~ n 8 m r ~° °_ m a ~= o~~ E~ c~ E cp c u y ~ a ro e ~ ~ ~ C O ~ 'O ~ ° u ° ° C 9 q° o o L° 8 y K X °' ~ C =L ° $ C 9 ~ O {i F N G N f ~ ° J N U' li O Cl O H 0 a m a d N a c U N ° ° u~~ '.j m O O N N a O F a a a c 0 A V ~ C W " y ~ a C1 ~ a y Q ~" 6 A C ~ W a 0 °' ~~ a ~, ~ G m U m ii E H ~ d C O ~ ~. OC y o ~ t0 Of ~ a 'n Q m w ~ ~ E m3 E~ a 0 a d L sa H N '- H M ~~ c a ~ c LL N 0 c s o ~ i ». a 0 °o=; v N LL o J C E H Zy • c N ~ aLL 0 H rn o o o o -0 0 0 0 0 0 0 L n w ~. w ' w w. ' w w w w w w v P~ o ~ a w ~ LL 6 U ,~ A 9 ~` _ C ` ~ OI d p C s ` ~ a U m ° @ ~ c c c ~ u ~ w : q ~ o M ~ -o. s ~ ~ ~ ~ 8m E S C ~ N O ~ W Q S q Y > 8 G i3 A N 6 ~ U d c 6 q O p C 1 w c ~ ~ = a ' o m E q 0 C w ~ a ~ ~ o m V u E E 3 1 ° u a o o ~ P o ffi o m SR A @@ @ @ q q s . ' y Q 6 6 R Q O R K N 6 U O J 1 LL d m a 9 U c °c n W 9 W 0 ~ m n M F H H N N lV N N O + y O N O N O M O N O N O N O M O M O N O N O N O N O N O N W o ° y ~ C O ~ S L O I p) . C w C 0 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N o N a N 'o rn Q N ~ N ++ N ap°~ m n Ol ~ m ~ ~ c Q. 'qp = f6 W •~ O O- O O O O O O O O O. O O tp •~ 0 U N M N A N N N N 00 N H N '„~ ~ E C c c N e. '~ . ~ o ~; N O C m V ~~ m C ~ fnp- N w w M LL E nLL N 9 •~ C .~ d Q' w d 0 9 c ~ 0 0 0 o o o o a o 0 0 o n ~ R m"' a m N 'N. iN N iw 'N N ~ w N N. N ~ NO 'O Q C1 W Q L ~ o m a N N V ~~ 10 LL T N Q ay n 0 d a ~ N m O y .8 ~ a w ° m S ~ ~ a ~ ° ~ ~ a C ~ c a s ~~ SC ~ = c ~ ~ u y m ° ,g °LL U 10a ? ~ pcp c~ c rr a i. o m ~j f7 ~ c p a ~ m w a ~ m w " ~ ~ ~ -~ a dq 6 ~' ~ A m t ~ ~ q p $ C «~ 6 yy p C a d y Q Q 4 p p W~ C G ~ N IV w ? ~° ~ EE a q N W W L C ~ O C ~ ° Q d M i~ ~ y' ~ p ~~ a ~ = LL y_ a o~ a ~ a s ~ ~ ~ W o LL 0 0 N a O a m m v_ U a O N ~ O N O N O N O N O N N (O O N N tD O N O N ~ ~ ~ 0 N 0 f~ ~ N H $$0 N M N N M N N N ~ N d mO~ a ~ 6CIL C a N z . ® m yi3 G i+ C ~ .p,r O S C N M N N N M N ' N N ~ nj:X1 N OI C C c roof rtv , "'"t'~r] LL a ~ W w a s ~. ~~ ~ ~ w ~~ O~ m m o ~0 0 0 -o o ~~n #~ o O In C YI N H N j N M M 0 il ~,~} N N (O y N N v o ~ ~ ~ , . ~ a d ~ C H NIL ~ ~ ' W O = r. p ~ E 10 N " m 'u c . . Q V E Ia ~ ' ~ n +• ~ C mi LL i9 p 0 w 0 N: 0 N 0 N 0 N o N o N in (O o N ~ <p a E a N ~° ~ 1 ~ O r r O ~ IL NN » ~ U m ~ a ~ Q u a m o g P m e ~ = w o U ~ ~ ~ C y c O l° ~ a m m y C C 01 ~ @ '~ N v 7 ~ c ~ a U ~' m u G E . . ~ O ~ ~@ ~ ~ a ~ u ~ , ~ ~ U N g LL p ~~ C J K E Z C C G ~ c OIL G m `a o ~ E ~ ~ g ~ ~ 1 - ~ v c ~ Ga 0 p N LL G ~ C E~ ~~ C Y ~ ~ ~ G G m 9 ~ - ~J ~ - `Q _ O yy ~ m Y .~ q q 6 q pp 6 LL O a m N C O ~ V V ~ C N d C ~ ~ Q .+ ~ C ~ d . E ~ a ~ 0 A C ~ lL '~6 d d i7 C ~~ ~a c Q c a d d d 9 ~ 9 ~/ •O ~ C C C c ~ W a a ~ C m d ffi O ~ V ~ C y 0 C ~~ c E ,' ~ LL U) 0 ~ W N n iD N ~.. N H 4l H H H w O :o m ~ c o a~LL H K ~ ~ m N N t~ p ~ p p 2 C Q T= tO N o ELL ~+ a o ~ J C u Za m C m N ~ d LL a m O N 6 ; Q LL 6 U m v ~ A p~ q C ~ u c m ~oLL °o ~ ~~`u m g •@ G D O `p ~ ~ ~ ~N V OI F m m C 1G0 C ~ ~i LL Y Y ~ ~ y ~ ~ O G 9 C O LL 9 ~ Y ' W 9 ~{ d ~4G{1 ~ O p@ y~0 ~ W O W W 6 6 v W m 0 0 C t~ N m a a m 0 N C U N C a LL L S FY 2007-08 Arcadia Redevelopment Agency HCD REPORT RDA Reporting System -Housing Fund Revenues Page 1 of 2 ~,w,....b California Department of Housing and Community Development. ,,' ~ > Redevelopment Agency Reporting System ~ +' " Housing Fund Revenues & Other Resources Sch A, p2 y`'" """'~ You are Hare: Select Year > Schedule Menu > Proiact Area Selector > Project Area Activity> Housing Fund Revenues «Previous Agency:ARCADIA Fiscal Year:20072008 Prepared by: Don Penman Page For Project Area:CENTRAL REDEVELOPMENT PROJECT • Admin 3. Project Area Housing Fund Revenues and Other Sources Instructions • select NOTE: rear expenditures for debt service(HCD-C (Page 2, Line 4c.)) should be reporfed on Agency-wide • FAO Financial Information 4c. • User info a. Tax Increment • status (1) 100% of Gross: $4,108,766 • Print --- - - • Logout (2) Calculate Only 1 set-aside amount (either (A) or (B) below): iv! (A) Minimum Deposit required by 33334.2 (Gross x 20%): $821,753 ( ~ (B) Minimum Deposit required by 33333.10(8) (Senate Bill 211, Chapter 741, Statutes of 2001)(Gross x 30%): _._ __ (3) Tax Increment Allocated to Housing Fund: $821,753 If less than 20% of the Gross Tax Increment (see (2) above) is being set aside in this project area in accordance with Section 33334.3(1); identify the project area(s) contributing the difference in the box below: Or Explain below if less than 20% is being set aside for any other reason: i,,_ _. _ ___.... _ tAa«I ~' Less: (4) Amount Exempted' : (' $p (5) Amount Deferred'" : ($0 If Amount Exempted or Amount Deferred is entered, after you SAVE, you need to go to Project Area Activity Menu and select Exemption(s) AndJOr Deferral(s) to enter Sch A data. (6) Total Deposit to the Housing Fund (Calculated from above, (3) - (4) - (5)] $821,753 b. Interest Income: $205,409 c. Rental/Lease Income: d. Sale of Real Estate: e. Grants: f. Bond Administrative Fees: https://ssw2.hcd.ca.gov/RDA/addEditHousingFundRevenues.jsp 12/10/2008 RDA Reporting System -Housing Fund Revenues g. Repayment of Prior Year Deferrals: $p h. Loan Repayments: i. Debt Proceeds: j. Other Revenue: (Specify) Page 2 of 2 t. yJyC k. Total Housing Fund Deposits for this Project Area (3a. through $1 027,162 3j. ): Save Redevelopment Agency Reporting System -Housing Fund Revenues 8 Other Resources California Department of Housing antl Community Development https://ssw2.hcd.ca.gov/RDA/addEditHousinaFundRevenues.isD t 2/t nnnnu RDA Reporting System -Displacements and Losses Page 1 of 2 «- California Department of Housing and Community Development , ~ °"'-, s+ ""~a ~y~ Redevelopment Agency Reporting System ;;' ~~ Displacements and Losses over reporting Year Sch A, p4; Sch B, p1 ``" °°' You are Here: Select Year > Schedule Menu > PrpJect Area Selector > Project Area Activity Menu > Dlaplaeements 8 Losses « Previous Page • Admin sete~t Year • FAQ • User Info • status • Print • Logout Agenq:ARCADIA Fiscal Year :2007/2008 Prepared by: Don Penman For Project Area:CENTRAL REDEVELOPMENT PROJECT 6. Actual Project Area Households Displaced and Units and Bedrooms Lost over Reporting Year a. Redevelopment Project Activity Pursuant to Sections 33080.4(a)(1) and (a)(3), report by income category the number of elderly and nonelderly households permanently displaced and the number' of units and bedrooms removed or destroyed that are subject to the replacement requirements of Section 33413. Income Level VL © ~M AM Total Households Removed -Elderly ~ ~ ~ ~ ~ Households Removed -Non Elderly ~ ~ ~ ~ 0~ Households Removed -Total 0~ 0~ 0~ 0~ 0~ Units Lost (Removed or Destroyed, and Re uired to be Re laced) Bedrooms Lost (Removed or Destroyed, and Required to be ^ ^ ^ 0 Replaced) Units Lost (Above Moderate: Not ~ ~ Re uired to be Re laced Bedrooms Lost (Above Moderate: Not Re uired to be Re laced) b. Other Activity Pursuant to Sections 33080.4(a)(1) and (a)(3), report by income category the number of elderly and nonelderly households permanently displaced as a result of activities other than the destruction or removal of dwelling units and bedrooms reported on above. Income Level Households Permanently Displaced Elderly VL ~ © ~ ~M ~ AM ~ Total ~ Households Permanently Displaced Non Elderl ~ ~ ~ ~ ~ Households Permanently Displa~ Total c. Identify each replacement housing plan adopted that is related to permanent displacement, destruction or removal of dwelling units or bedrooms during the reporting year and identified in paragraphs in a. and b. above: https://ssw2.hcd.ca.gov/RDA/addEditDisplAndLosses.jsp 12/10/2008 RDA Reporting System -Displacements and Losses ~' Page 2 of 2 ' Note -Date should be (mm/dd/yyyy) format. If dd for the date is not available assume 01 Note1 -Date and Custodian Name is mandatory for a record; if either is missing, new record will not be saved and existing record will be treated as a deletion Note2 -Additional rows will be made available for data entry on Save, for DatelName of Agency Custodian Save Redevelopment Agency Reporting System -Displacements and Losses over reporting Year California Department of Housing antl Community Development https://ssw2.hcd.ca.gov/RDA/addEditDisplAndLosses.jsp 12/10/2008 RDA Reporting System -Agency Wide Financials Page 1 of 5 3,..~-~, California Department of Housing and Community Development ' ~ ~ J ap *,~ Redevelopment Agency Reporting System P ~ ~*' ~~ »rv~ Agency-wide Financial Information- Sch C, p1~ ' °"° "'' You are Here: Select Year > Schedule Menu > Agency Wide Financials c< Previous Agency:ARCADIA Fiscal Year :2007!2008 Prepared by: Don Penman Page Low 8 Moderate Income Housing Funds • Admin Report on the "status and use of the agency's Low and Moderate Income Housing Fund." Most information reported here should be based on that reported to the State Controller. • select Year t. Beginning Balance: $7 256,328 • FAQ _ • user Info a. Describe and Provide Dollar Amount (Positive / Negative) Making Up $_4,045,715 Total Adjustments: • status ~..... __. _.. _. __ __.. _.. _. ~.~indebtedness for Set-asides Deferred ~~~- (Sec.33334.6) • Print b. Adjusted Beginning Balance: $3,210,613 2. Project Area Receipts and Housing Fund Resources a. Project Area(s) Receipts (Total of all Schedule As): $1,027,162 b. Housing Fund Resources not reported on Schedule A(s) $0 Describe and Provide Dollar Amounts (Positive /Negative) Making Up - Total Housing Fund Resources: ' a .' 3. TOTAL RESOURCES : [Line 1 b + 2a + Zb] $4,237,775 https://ssw2.hcd.ca.gov/RDA/addEditAgencyFinancials.jsp 12/10/2008 RDA Reporting System -Agency Wide Financials 4. Expenditures Subtotal: Sch C, p1-3 #4 https://ssw2.hcd.ca. gov/RDA/addEditAgencyFinancials,j sp Page 2 of S $85,869 12/10/2008 RDA Reporting System -Agency Wide Financials Page 3 of 5 5. NET RESOURCES AVAILABLE: $4,151,906 6. Encumbrances and Unencumbered Balance a. Encumbrances (End of Year): He1o? $13,770 ................................. b. Unencumbered Balance (End of Year): $4,138,136 7. Designated/Undesignated Amount of Available Funds: ............ . . a. Unencumbered Designated: $0 b. Unencumbered Undesignated: $4,138,136 https://ssw2.hcd.ca.gov/RDA/addEditAgencyFinancials.jsp 12/10/2008 RDA Reporting System -Agency Wide Financials Page 4 of 5 8. Total Other Housing Fund Assets: Sch C, p3 #6 $4,045,715 https://ssw2.hcd.ca. gov/RDA/addEditAgencyFinancials.j sp 12/ 10/2008 RDA Reporting System -Agency Wide Financials Page 5 of 5 9. TOTAL FUND EQUITY: $8,197,621 10. Reporting Year End Unencumbered and Adjusted Balance Instructions ____ ._ __ a. Unencumbered Balance (End of Year):[Page 3, Line 6,b] $4,138,136 ..................................... b. If you are eligible to adjust the Unencumbered Balance (End of Year), identify the type and amount of the adjustment. (1 ),Debt Proceeds: $p (2) Land Sales: c. Adjusted Unencumbered Balance: 11. Excess Surplus Tax Increment Deposit Calculation: 2004!2005 -Tax Increment: 20D5/2006 -Tax Increment: 2006/2007 -Tax Increment: FY 07-08 Reporting Year Tax Increment: Sum of 3 Prior Years' and Reporting Year Tax Increment: 12. Excess surplus to track during fiscal year 2008-2009 is: Your current excess surplus, calculated last fiscal year, is .. $0 $4,138,136 $633,331 $844,302 $779,028 $821,753 $3,078,414 $1,059,722 $141,057 Save Redevelopment Agency Reporting System -Agency-wide Financial Information California Department of Housing and Community Development https://ssw2.hcd.ca.gov/RDA/addEditAgencyFinancials.jsp 12/10/2008 FY 2007-08 Arcadia Redevelopment Agency HEALTH AND SAFETY CODE ,¢33080.1 o ALLEVIATION OF BLIGHT o LOAN DEFA ULT REPORT o PROPERTY LISTING I. HEALTH AND SAFETY CODE 633080.1/d) ALLEVIATION OF BLIGHT For FY 2007-08, the Arcadia Redevelopment Agency worked on the following programs/projects to assist in the alleviation of blight in the Central Downtown Project Area: Agency staff worked towazds implementation of the Land Assembly and Development Agreement that was approved by the Agency on January 4, 2005. The Agreement provides that the Agency will assist in the acquisition of properties adjacent to or neaz the existing Rusnak Mercedes Benz dealership, which properties will be sold to the Rusnak Group. During FY 2006-07, specific activities on the project included closing escrow on the Self Storage Building at 35 W. Huntington Drive, opening escrow for the Church in Arcadia pazcel at 21 Morlan Place, and working with the Church Boazd on the planning actions necessary to relocate the congregation to 630 E. Live Oak Avenue. 2. Completion of construction of the six-unit affordable for-sale townhome project at 1 t 9 and 121 Alta Street for selected moderate income households. 3. During FY 2007-08, the Agency continued to mazket commercial facade rehabilitation assistance for properties in the redevelopment project area and process applications for property improvement. II HEALTH AND SAFETY CODE $33080.1 (e) REPORT ONALL LOANS IN DEFAULT The Arcadia Redevelopment Agency has no loans in excess of $50,000 that are in default from the previous fiscal yeaz or that are not in compliance with the terms of any loan approved by the Agency. 111. HEALTHAND SAFETY CODE ¢33080.1 (Q PROPERTYLISTING The Arcadia Redevelopment Agency owns one parcel of land in the downtown area. The Agency did not acquire any new property during FY 2007-08. Propertv List: APN Address City, State Current Use 1 5775-025-030 35 W. Huntington Dr. Arcadia, CA Self Storage Facilit DATE: December 16, 2008 STAFF REPORT Public Works Services Department TO: Mayor and City Council FROM: Pat Malloy, Assistant City Manager/Public Works Services Director Prepared by: Tom Tait, Deputy Public Works Services Director Craig Clark, Utilities Superintendent SUBJECT: SUMMARY On January 15, 2008, the City Council approved a one (1) year Professional Services Agreement (Agreement) with Clinical Lab of San Bernardino, Inc. (Clinical) for laboratory testing services of City water samples with optional annual extensions. Clinical is reaching the end of their contract and has submitted a written offer to extend the existing Agreement for one (1) additional year. Their offer of extension does not reflect a change in price and all other conditions of the Agreement are to remain in effect. Therefore, staff recommends that the City Council authorize the City Manager to execute a one (1) year Professional Services Agreement with Clinical Lab of San Bernardino, Inc. for laboratory testing services of City water samples in the amount of $25,100. DISCUSSION The City of Arcadia Public Works Services Department collects water samples from the City's wells, reservoirs and pipelines and tests them to ensure the effective delivery of high quality potable water to the residents of Arcadia. The State of California Domestic Water Quality and Monitoring regulations require that samples be collected and tested weekly, monthly, quarterly and annually by a DOHS certified laboratory (Chapter 15, Title 22, California Code of Regulations). The scope of services for this Professional Services Agreement includes furnishing all labor, services, equipment, supplies and all other items and facilities necessary to Page 1 of 2 Recommendation: Approve Mayor and City Council December 16, 2008 appropriately analyze domestic water samples as required by the State of California, and special samples for discharge of water into the storm drainage system and special samples as required by DOPH. On January 15, 2008, the City Council approved a one (1) year Agreement with Clinical for laboratory testing services of City water samples with optional annual extensions. Clinical is reaching the end of their contract and has submitted a written offer to extend the existing Agreement for one (1) additional year. Their offer of extension does not reflect a change in price and all other conditions of the Agreement are to remain in effect. For the past year, Clinical has provided affordable and reliable services, therefore, staff recommends that the City Council authorize the City Manager to execute a one (1) year Professional Services Agreement with Clinical Lab of San Bernardino, Inc. for laboratory testing services of City water samples in the amount of $25,100. FISCAL IMPACT Sufficient funds have been designated for this service in the 2008-09 Water Operating Budget. RECOMMENDATION Authorize the City Manager to execute a one (1) year Professional Services Agreement with Clinical Lab of San Bernardino, Inc. for laboratory testing services of City water samples in the amount of $25,100. Approved by: ~6r-e-~ {~~.,...rrQ,,-- Donald Penman,. City Manager PM:TT:CC Page 2 of 2 Amory f. DATE: December 16, 2008 STAFF REPORT Public Works Services Department TO: Mayor and City Council FROM: Pat Malloy, Assistant City Manager/Public Works Services Direc r Prepared by: Tom Tait, Deputy Public Works Services Director SUBJECT: SUMMARY On February 19, 2008, the City Council awarded a one (1) year Professional Services Agreement to John L. Hunter and Associates, Inc. (JLH) for administration and monitoring of the City's stormwater and industrial waste programs. JLH is reaching the end of their Agreement and has submitted a written offer to extend the existing Agreement for one (1) additional year. Their offer of extension does not reflect a change in price and all other conditions of the Agreement are to remain in effect. Therefore, staff recommends that the City Council authorize the City Manager to execute a one (1) year professional services agreement extension to John L. Hunter and Associates for the administration and monitoring of the municipal stormwater (NPDES) and industrial waste programs in the amount of $91,441. DISCUSSION The Clean Water Act (Act) mandates local jurisdictions to implement water pollution control programs. The National Pollutant Discharge Elimination System (NPDES) permit is a key provision of the Act. The City's current stormwater & Industrial Waste Programs include elements of inspection, monitoring, enforcement, public outreach, staff training and plan checking services. However, due to the complexity of State mandates for the NPDES stormwater Permit and Industrial Waste Programs, it is necessary to retain an environmental consultant with the expertise and experience to support the City with implementation of Best Management Practices, reporting requirements, and administration of the following three required programs: Page 1 of 2 Recommendation: Approve Mayor and City Council December 16, 2008 1. Idehtify Illegal Connections and Discharges to Storm Drains 2. Development Planning and Development Construction Plan Checks 3. Perform Commercial and Industrial Inspections Approximately $52,000 of the contract is recovered through permitting fees, plan check fees, and inspection fees paid to the City by developers and commercial establishments annually. The remaining $39,441 is spent to provide services such as enforcement of the NPDES Permit, public outreach, special services such as annual reporting to the State and County and Total Maximum Daily Loads monitoring, and other necessary services mandated by the Los Angeles Countywide Municipal NPDES Stormwater Permit. Therefore, staff recommends that the City Council authorize the City Manager to enter into a one (1) year Professional Services Agreement with John L. Hunter and Associates, Inc. for administration and monitoring of the Municipal Stormwater and Industrial Waste Programs in the amount of $91,441. FISCAL IMPACT Sufficient funds have been designated for these services in the 2008-09 Operating Budget for Stormwater and Sewer. RECOMMENDATIONS 1. Award a one (1) year Professional Services Agreement extension to John L. Hunter and Associates, Inc. for administration and monitoring of the municipal stormwater and industrial waste programs in the amount of $91,441. 2. Authorize the City Manager and City Clerk to execute a contract in a form approved by the City Attorney. Approved by: ~-..-a,.-/ Donald Penman, City Manager PM:TT Page 2 of 2 DATE: December 16, 2008 STAFF REPORT Public Works Services Department TO: Mayor and City Council FROM: Pat Malloy, Assistant City Manager/Public Works Services Director Prepared by: Lubomir Tomaier, Principal Civil Engineer Mark Rynkiewicz, Associate Civil Engineer SUBJECT: mendation: Approve SUMMARY As part of the City's Street Maintenance Program, the Public Works Services Department is preparing to repair damaged concrete along residential streets throughout the City. The street locations are illustrated on the attached location map. Staff recommends that the City Council award a contract to CJ Construction, Inc. for the 2008/2009 Annual Concrete Repair Project in the amount of $98,992. DISCUSSION The Public Works Services Department is responsible for the maintenance and repair of approximately 147 miles of pavement within the community. In 1999, as part of the Pavement Management Program, staff prioritized the condition of all City streets and established a program to slurry seal or rehabilitate streets within the City based on a pavement condition index. As a part of the work, the adjacent damaged concrete curbs; gutters and sidewalks are scheduled for repair to correct safety and drainage problems. The work for this project is included in the 2008/2009 Capital Improvement Program under the Annual Asphalt and Concrete Program. Notices inviting bids were published in the adjudicated paper and bid packages were distributed to area contractors. The following ten (10) bids were received on November 18, 2008: Page 1 of 2 Mayor and City Council December 16, 2008 • Bidder Location Bid Amount 1. CJ Construction, Inc. Santa Fe Springs $ 98,992.00 2. Int. Pavement Solutions, Inc. San Bernardino $106,605.50 3. S.J. Grigolla Const. Co., Inc. La Verne $109,420.00 4. Grigolla & Sons Const. Co., Inc. Azusa $109,670.00 5. B&T Works, Inc. Wildomar $128,115.00 6. FS Construction Sylmar $132,485.00 7. Perry C. Thomas Const., Inc. Monrovia $138,523.00 8. KORMX, Inc. Walnut $143.083.20 9. Addscape, Inc. Los Angeles $144,960.00 10 . E.C. Construction Co. S EI Monte $191,927.30 Staff has reviewed the bid documents for content and has investigated the Contractor's background and recent projects for competency. CJ Construction, Inc. was awarded a similar contract last year and all of their work was performed to staffs satisfaction. They also complied with all terms and conditions of their contract. It is staffs opinion that CJ Construction, Inc. can satisfactorily perform the work required and recommends that the City Council award a contract in the amount of $98,992 to CJ Construction, Inc. for the 2008/2009 Annual Concrete Repair Project. ENVIRONMENTAL ANALYSIS This project is categorically exempt per Section 15302 (c) replacement from the requirements of the California Environmental Quality Act. FISCAL IMPACT The 2008/2009 Annual Asphalt and Concrete Program has $500,000 budgeted for slurry seal and concrete repairs to curb, gutters and sidewalks. Award a contract to CJ Construction, Inc. in the amount of $98,992 for the 2008/2009 Annual Concrete Repair Project. 2. Waive any informalities in the bid or bidding process. 3. Authorize the City Manager and City Clerk to execute a contract in a form approved by the City Attorney. Approved: ~r-s-(,~Q~ Donald Penman, City Manager PM:LT:MR Attachment Page 2 of 2 2008/2009 ANNUAL CONCRETE REPAIR PROJECT PROJECT LOCATION MAP CONCRETE REPAIR AREA ~~eoY.v4 f'w ,,. ^'tleu~e .r N" PUBLIC WORKS SERVICES CEPARTMENT DATE: 8Y: JB 200812009 ANNUAL CONCRETE REPAIR PROJECT cNK'D er: NORTH PROJECT LOCATION MAP scuE: DRAWING No. NTS A~~~rMr~l~~) STAFF REPORT Public Works Services Department DATE: December 16, 2008 TO: Mayor and City Council FROM: Pat Malloy, Assistant City Manager/Public Works Services Direc~ Prepared by: Tom Tait, Deputy Public Works Services Director Dave McVey, General Services Superintendent SUBJECT: Recommendation: Approve SUMMARY The Public Works Services Department is responsible for the care and maintenance of the City's fleet. The garage, where the City's fleet is worked on, is located at the City yard and is not equipped with a powered vehicle exhaust extraction system to remove fumes from the vehicles out of the building. Staff solicited bids for the powered vehicle exhaust extraction system and only one bid was submitted. The bid received was over the amount budgeted for the project. Therefore, staff recommends that the City Council reject the bid submitted for the installation of a powered vehicle exhaust extraction system. DISCUSSION Fleet Services personnel are required to work on vehicles when the engines are in operation. As a result, employees are exposed to the fumes from the exhaust that can cause future health problems. A powered vehicle exhaust extraction system is necessary in the City's garage to remove fumes out of the service bays when the mechanics are working on vehicles. Installation of a powered vehicle exhaust extraction system in the City garage at the Public Works Service Center was scheduled in the 2008-09 Capital Improvement and Equipment Plan. Staff solicited bids for this project on November 16, 2008. Only one bid was received and it exceeded the budgeted amount of $65,000 for the purchase and installation of the powered vehicle exhaust extraction system. The one bid that the City received was in the amount of $98,000. Staff recommends that the City Council reject the bid submitted for the installation of a powered vehicle exhaust extraction system. Page 1 of 2 Mayor and City Council December 16, 2008 FISCAL IMPACT Sufficient funding is not available for this project. Staff will re-evaluate the project and potential contractors and will re-budget for it again in the 2009-10 CIP. RECOMMENDATION Reject the bid submitted for the installation of a powered vehicle exhaust extraction system. Approved by: Jc~~-1 •,w . _ , Donald Penman, City Manager PM:TT:DM Page 2 of 2 ..,..S lr~lwl DATE: December 16, 2008 STAFF REPORT Public Works Services Department TO: Mayor and City Council FROM: Pat Malloy, Assistant City Manager/Public Works Services Prepared by: Maria P. Aquino, Management Analyst SUBJECT: Recommendation: Approve SUMMARY Staff is recommending that the City Council award athree-year purchase order contract to Aramark Services in the amount of $28,500 or $9,500 per year for uniform rental services for Public Works Services Department and two (2) porters at the Police Department. Sufficient funds are budgeted in the 2008-09 and 2009-10 Operating and Maintenance budget. DISCUSSION The Public Works Services Department is responsible for providing uniform services to its Water, Sewer, Streets, and Building employees. This service also applies to the two (2) porters at the Police Department and they are included in the Department's uniform rental service. The contract with Mission Linen and Supply Services for providing rental uniforms has expired and their services are currently being utilized on a month to month basis. On November 12, 2008 staff solicited bids to ensure that the Department receives the most cost-effective and qualified uniform rental services. As an industry standard, the minimum contract for uniform rental services is three years. Bids were sent out to six (6) vendors and four (4) bid responses were received. The results are as follows for a three-year contract amount: Page 1 of 2 Mayor and City Council December 16, 2008 Bidder Location Amount Aramark Services Cintas UniFirst AmeriPride Mission Linen Supply Prudential Overall Supply Burbank $28,317.12 Whittier $33,816.17 Ontario $34,911.10 Vernon $37,569.51 North Hollywood No Bid Commerce No Bid Staff has determined that Aramark Services is a qualified company and will not increase its cost for the duration of the contract. The uniform service contract includes rental of uniforms (shirts and pants), weekly laundry, installation of City emblems and name plates, garment repairs, replacement of damaged shirts and/or pants and other service fees (set-up and delivery). Staff recommends that the City Council award athree-year purchase order contract to Aramark Uniform Services in the amount of $28,500 or $9,500 per year. FISCAL IMPACT Sufficient funds have been budgeted in the 2008-09 and 2009-10 Operating budget for uniform services. RECOMMENDATION 1. Authorize the City Manager to award a purchase order contract to Aramark Uniform Services in the amount of $28,500 for uniform rental services. 2. Waive any informality in the bid or bidding process. PM:TT:jb Approved by: ~c-~-Y+-a,.~ Donald Penman, City Manager Page 2 of 2 ORDINANCE N0.2252 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA REPEALING ORDINANCE N0.2228 WHICH CONCERNED A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ARCADIA AND SANTA ANITA ASSOCIATES, LLC WHEREAS, on April 17, 2007, the City Council of the City of Arcadia ("City") adopted Resolution No. 6564 certifying the Final Environmental Impact Report. ("EIR") (State Clearinghouse No. 2005031131) prepared for the Shops at Santa Anita Park Specific Plan Project (the "Project") and adopting the environmental findings pursuant to the California Environmental Quality Act ("CEQA"), a statement of overriding considerations, and a mitigation monitoring and reporting program for the Project; and WHEREAS, on April 17, 2007, the City Council adopted Resolution No. 6565 adopting General Plan Amendment No. OS-O1, which changed the land use designation of certain property under the Arcadia General Plan from "Horse Racing" and "Commercial" to "The Shops at Santa Anita Park Specific Plan" and made various text amendments to the Arcadia General Plan with regard to the Project; and WHEREAS, on April 17, 2007, the City Council adopted Resolution No. 6566 approving Architectural Design Review and Design Guidelines with respect to the Project and imposed conditions of approval on the Project; and 1 WHEREAS, on May 1, 2007, the City Council adopted Ordinance No. 2226 adopting the "Shops at Santa Anita Park Specific Plan" and the specific land use regulations contained therein with respect to the Project; and WHEREAS, on May 1, 2007, the City Council adopted Ordinance No. 2227 making certain amendments to the text of the Arcadia Zoning Code to add a "Commercial Entertainment" Zone and regulations with respect thereto and amending the zoning designation of certain property within the City from "S-1" and "R-1" to "SP S-1", "SP R-1"and "SP CE" with respect to the Project; and WHEREAS, on May 1, 2007, the City Council adopted Ordinance No. 2228 approving a Development Agreement between the City and Santa Anita Associates, LLC; and WHEREAS, on May 15, 2007, Westfield, LLC et al. filed a Petition for Writ of Mandate in the Los Angeles County Superior Court (Case No. BS103923) challenging the Project and alleging that the Final EIR for the Project was deficient, and that the Project was inconsistent with the Arcadia General Plan and the Arcadia Municipal Code; and WHEREAS, on May 17, 2007, Arcadia First! filed a Petition for Writ of Mandate in the Los Angeles County Superior Court (Case No. BS108937) challenging the Project and .alleging that the Final EIR for the Project was 2 deficient; and WHEREAS, on October 15, 2008, after full briefing and hearing, the Court entered Judgment in part for the Petitioners, in which the Court granted the Petitions in part and ordered the City of Arcadia to set aside and void all approvals granted for the Project; and WHEREAS, on October 22, 2008, a Peremptory Writ of Mandate was issued by the Court stating that not more than fifty (50) days after service of the Writ, the City must set aside and void certification of the Final EIR for the Project and set aside and void approvals granted by the City in relation to the Project; and WHEREAS, the City desires and intends to comply with the Peremptory Writ of Mandate. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby specifically finds that all of the facts set forth in the recitals of this Ordinance are true and correct. SECTION 2. Pursuant to Court Order, the City Council hereby repeals, vacates and sets aside Ordinance No. 2228. 3 SECTION 3. The City Clerk shall certify to the adoption of this ordinance and shall cause a copy of the same to be published in the official newspaper of said City within fifteen (15) days after its adoption. Passed, approved and adopted this day of 2008. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: „ ~. ~~ Stephen P. Deitsch City Attorney 4 ORDINANCE N0.2253 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA REPEALING ORDINANCE N0.2226 WHICH CONCERNED THE ADOPTION OF "THE SHOPS AT SANTA ANNTA PARK SPECIFIC PLAN" WHEREAS, on April 17, 2007, the City Council of the City of Arcadia ("City") adopted Resolution No. 6564 certifying the Final Environmental Impact Report ("EIR") (State Clearinghouse No. 2005031131) prepared for the Shops at Santa Anita Park Specific Plan Project (the "Project") and adopting the environmental findings pursuant to the California Environmental Quality Act ("CEQA"), a statement of overriding considerations, and a mitigation monitoring and reporting program for the Project; and WHEREAS, on April 17, 2007, the City Council adopted Resolution No. 6565 adopting General Plan Amendment No. OS-O1, which changed the land use designation of certain property under the Arcadia General Plan from "Horse Racing" and "Commercial" to "The Shops at Santa Anita Park Specific Plan" and made various text amendments to the Arcadia General Plan with regard to the Project; and WHEREAS, on April 17, 2007, the City Council adopted Resolution No. 6566 approving Architectural Design Review and Design Guidelines with respect to the Project and imposed conditions of approval on the Project; and 1 WHEREAS, on May 1, 2007, the City Council adopted Ordinance No. 2226 adopting the "Shops at Santa Anita Park Specific Plan" and the specific land use regulations contained therein with respect to the Project; and WHEREAS, on May 1, 2007, the City Council adopted Ordinance No. 2227 making certain amendments to the text of ,the Arcadia Zoning Code to add a "Commercial Entertainment" Zone and regulations with respect thereto and amending the zoning designation of certain property within the City from "S-1" and "R-1" to "SP S-1", "SP R-1" and "SP CE" with respect to the Project; and WHEREAS, on May 1, 2007, the City Council adopted Ordinance No. 2228 approving a Development Agreement between the City and Santa Anita Associates, LLC; and WHEREAS, on May 15, 2007; Westfield, LLC et al. filed a Petition for Writ of Mandate in the Los Angeles County Superior Court (Case No. BS103923) challenging the Project. and alleging that the Final EIR for the Project was deficient, and that the Project was inconsistent with the Arcadia General Plan and the Arcadia Municipal Code; and WHEREAS, on May 17, 2007, Arcadia First! filed a Petition for Writ of Mandate in the Los Angeles County Superior Court (Case No. BS108937) challenging the Project and alleging that the Final EIR for the Project was 2 deficient; and WHEREAS, on October 15, 2008, after full briefing and hearing, the Court entered Judgment in part for the Petitioners, in which the Court granted the Petitions in part and ordered the City of Arcadia to set aside and void all approvals granted for the Project; and WHEREAS, on October 22, 2008, a Peremptory Writ of Mandate was issued by the Court stating that not more than fifty (50) days after service of the Writ, the City must set aside and void certification of the Final EIR for the Project and set aside and void approvals granted by the City in relation to the Project; and WHEREAS, the City desires and intends to comply with the Peremptory Writ of Mandate. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby specifically finds that all of the facts set forth in the recitals of this Ordinance are true and correct. SECTION 2. Pursuant to Court Order, the City Council hereby repeals, vacates and sets aside Ordinance No. 2226. 3 SECTION 3. The City Clerk shall certify to the adoption of this ordinance and shall cause a copy of the same to be published in the official newspaper of said City within fifteen (15) days after its adoption. Passed, approved and adopted this day of , 2008. Mayor of the City of Arcadia _ ATTEST: City Clerk APPROVED AS TO FORM: ~~ ~? Tin Stephen P. Deitsch City Attorney 4 ORDINANCE N0.2254 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA REPEALING ORDINANCE N0.2227 WHICH CONCERNED ZONING CHANGES PERTAINING TO THE SHOPS AT SANTA ANITA PARK PROJECT WHEREAS, on April 17, 2007, the City Council of the City of Arcadia ("City") adopted Resolution No. 6564 certifying the Final Environmental Impact Report ("EIR") (State Clearinghouse No. 2005031131) prepared for the Shops at Santa Anita Park Specific Plan Project (the "Project") and adopting the environmental findings pursuant to the California Environmental Quality Act ("CEQA"), a statement of overriding considerations, and a mitigation monitoring and reporting program for the Project; and WHEREAS, on April 17, 2007, the City Council adopted Resolution No. 6565 adopting General Plan Amendment No. OS-O1, which changed the land use designation of certain property under the Arcadia General Plan from "Horse Racing" and "Commercial" to "The Shops at Santa Anita Park Specific Plan" and made various text amendments to the Arcadia General Plan with regard to the Project; and WHEREAS, on April 17, 2007, the City Council adopted Resolution No. 6566 approving Architectural Design Review and Design Guidelines with respect to the Project and unposed conditions of approval on the Project; and 1 WHEREAS, on May I, 2007, the City Council adopted Ordinance No. 2226 adopting the "Shops at Santa Anita Park Specific Plan" and the specific ]and use regulations contained therein with respect to the Project; and WHEREAS, on May 1, 2007, the City Council adopted Ordinance No. 2227 making certain amendments to the text of the Arcadia Zoning Code to add a "Commercial Entertainment" Zone and regulations with respect thereto and amending the zoning designation of certain property within the City from "S-1" and "R-1" to "SP S-1", "SP R-1"and "SP CE" with respect to the Project; and WHEREAS, on May 1, 2007, the City Council adopted Ordinance No. 2228 approving a Development Agreement between the City and Santa Anita Associates, LLC; and WHEREAS, on May 15, 2007, Westfield, LLC et al. filed a Petition for Writ of Mandate in the Los Angeles County Superior Court (Case No. BS103923) challenging the Project and alleging that the Final EIR for the Project was deficient, and that the Project was inconsistent with the Arcadia General Plan and the Arcadia Municipal Code; and WHEREAS, on May 17, 2007, Arcadia First! filed a Petition for Writ of Mandate in the Los Angeles County Superior Court (Case No. BS108937) challenging the Project and alleging that the Final EIR for the Project was 2 deficient; and WHEREAS, on October 15, 2008, after full briefing and hearing, the Court entered Judgment in pazt for the Petitioners, in which the Court granted the Petitions in part and ordered the City of Arcadia to set aside and void all approvals granted for the Project; and WHEREAS, on October 22, 2008, a Peremptory Writ of Mandate was issued by the Court stating that not more than fifty (50) days after service of the Writ, the City must set aside and void certification of the Final EIR for the Project and set aside and void approvals granted by the City in relation to the Project; and WHEREAS, the City desires and intends to comply with the Peremptory Writ of Mandate. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby specifically finds that all of the facts set forth in the recitals of this Ordinance are true and correct. SECTION 2. Pursuant to Court Order, the City Council hereby repeals, vacates and sets aside Ordinance No. 2227. 3 SECTION 3. The City Clerk shall certify to the adoption of this ordinance and shall cause a copy of the same to be published in the official newspaper of said City within fifteen (15) days after its adoption. Passed, approved and adopted this day of , 2008. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: ~; n. ~-~~ Stephen P. Deitsch City Attorney 4 ui3~ l~H , c°m~°°~~r°t"°~` STAFF REPORT Office of the City Attorney DATE: December 2, 2008 TO: Honorable Mayor and City Council Members FROM: Stephen P. Deitsch, City Attoiney . ~. ~~ SUBJECT: ORDINANCES AND RESOLUTIONS TO SET ASIDE AND REPEAL APPROVALS RELATED TO THE SHOPS AT SANTA ANITA PARK SPECIFIC PLAN PROJECT AND THE ASSOCIATED FINAL ENVIRONMENTAL IMPACT REPORT Recommendation: Approve all SUMMARY At its meeting on April 17, 2007, the City Council adopted three resolutions (Nos. 6564, 6565, and 6566) approving various aspects of The Shops at Santa Anita Park Specific Plan Project ("Project") and the related Final Environmental Impact Report ("EIR"). At its May 1, 2007 meeting, the City Council adopted three ordinances (Nos. 2226, 2227, and 2228) also related to approving various aspects of the Project. Since the adoption of these resolutions and ordinances, a court order has made it necessary to set aside and void certification of the Final EIR for the Project and set aside and void approvals granted by the City of Arcadia ("City") in relation to the Project. DISCUSSION The Project at issue is a large commercial, retail and office development that was conceived as apedestrian-oriented Main Street type center. Pursuant to the California Environmental Quality Act ("CEQA"), the City undertook environmental review of the Project through the preparation of an EIR. At its April 17, 2007 public meeting, the City considered three separate resolutions. related to the Project, all of which were approved. The first, Resolution No. 6564, adopted environmental findings and a statement of overriding considerations related to the 1 Project and certified, the Final EIR for the Project. The second, Resolution No. 6565, approved General Plan Amendment No. OS-O1, which changed the land use designation of certain property in the City from "Horse Racing" and "Commercial" to "The Shops at Santa Anita Park Specific Plan Project" and made various text amendments to the General Plan. The third, Resolution No. 6566, approved Architectural Design Review and Design Guidelines for the Project. At its May 1, 2007 public meeting, the City considered three separate ordinances related to the Project, all of which were adopted. The first, Ordinance No. 2226, adopted the "Shops at Santa Anita Park Specific Plan" and specific land use regulations with respect to the Project. The second, Ordinance No. 2227, made amendments to the text of the Arcadia Zoning Code to add a "Commercial- Entertainrnent" zone and amended the zoning designation of certain property within the City from "S-1" and "R-1" to "SP S-1", "SP R-1", and "SP CE" with respect to the Project. The third, Ordinance No. 2228, approved a Development Agreement relating to the Project between the City and Santa Anita Associates, LLC. In mid May, 2007, Westfield, LLC et al. and Arcadia First! brought separate petitions for writ of mandate challenging the Project under CEQA (among other things) in the Los Angeles Superior Court. The City, along with the Project developer, fully contested these petitions on all counts. After extensive briefing and hearing, on October 15, 2008, the Court entered a partial Judgment for the Petirioners, in which the Court granted the writ petitions in part and ruled that the City must set aside and void approvals granted for the Project until additional environmental review is prepazed. On October 22, 2008, a Peremptory Writ of Mandate was issued by the Court stating that not more than fifty (50) days after service of the Writ, the City must set aside and void certification of the Final EIR and the approvals granted by the City in relation to the Project. In order to fully comply with the Court's ruling, three resolutions and three ordinances have been drafted repealing all approvals related to the Project and decertifying the Final EIR for the Project. Each resolution or ordinance that was approved in relation to the Project will be repealed by a corresponding resolution or ordinance. FISCAL IMPACT There is no fiscal impact associated with approving the resolutions and ordinances repealing and setting aside all approvals related to the Project. 2 RECOMIU'IENDATION That the City Council adopt the attached three resolutions and introduce the attached three ordinances in order to repeal and set aside all approvals related to the Shops at Santa Anita Park Specific Plan Project and the associated Final Environmental Impact Report. The resolutions and ordinances are as follows: Adont: Resolution No. 6658 decertifying the final Environmental Impact Report for the Shops at Santa Anita Park Specific Plan Project and repealing adoption of Resolution No. 6564 which concerned environmental findings pursuant to the California Environmental Quality Act, Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program. Resolution No. 6659 repealing Resolution No. 6565 which concerned General Plan Amendment No. OS-Ol pertaining to "The Shops at Santa Anita Park Specific Plan." Resolution No. 6660 repealing Resolution No. 6566 which concerned approval of Architectural Design Review and Design Guidelines with respect to the Shops at Santa Anita Park Project. Introduce• Ordinance No. 2252 repealing Ordinance No. 2228 which concerned a Development Agreement between the City of Arcadia and Santa Anita Associates, LLC. Ordinance No. 2253 repealing Ordinance No. 2226 which concerned the adoption of "The Shops at Santa Anita Park Specific Plan." Ordinance No. 2254 repealing Ordinance No. 2227 which concerned zoning changes pertaining to the Shops at Santa Anita Park Project. APPROVED: ~~ir~+ rsc.-~ Donald Penman City Manager 3 DATE: December 16, 2008 TO: Mayor and City Council FROM: Donald Penman, City Manager By: Linda Garcia, Com ications, Marketing and Special Projects Manager SUBJECT: SUMMARY Champion Broadband California, LLC (Champion) currently holds a franchise issued by the City of Arcadia authorizing the construction, operation and maintenance of an open video system and the provision of cable television, broadband and telephone service to Arcadia residents. Pursuant to an Asset Purchase Agreement dated September 5, 2008, a company called CBC Broadband Holdings, LLC (CBC) will acquire the assets of Champion Broadband in Arcadia and will be assigned the franchise, subject to the approval of the Arcadia City Council, which is sought by way of this staff report. BACKGROUND The City of Arcadia and Champion Broadband LLC entered into an Open Video System Franchise Agreement in January 2006, replacing an earlier franchise with Altrio. Open Video System franchises are similar to cable franchises, but are governed by different laws. In September of this year, the City received an application for the assignment of the existing franchise to a company called CBC Broadband Holdings, LLC. The City of Arcadia has the right to review and approve the financial, technical and legal qualifications of the transferee in relation to the proposed assignment of the franchise to ensure the performance of obligations required under the franchise by the franchisee. As an aside to the transfer application before the Council tonight, it is worth providing some background on the role that AB 2987 plays relative to the change of ownership. AB 2987 took effect in January 2007 and significantly changed the role of local government in regulating video services. Office of the City Manager Recommendation: Adopt Mayor and City Council -Resolution No. 6662 December 16, 2008 Page 2 Under AB 2987, local government lost control over most elements of video service regulation and is now chiefly responsible for enforcing very minimal customer service standards and for managing their own rights-of-way. The legislation eroded local governments' ability to control the rights-of-way by granting State Video Service Franchisees the same access rights that telephone companies enjoy. Local government also lost its "right" to receive free cable service at public facilities and some cities have or are in the process of losing their PEG channel(s)/operation. This issue is being referenced in this report because in addition to filing an application with the City and the Federal Communications Commission. to acquire the assets of Champion Broadband, CBC has also applied to the California Public Utilities Commission for a State-issued video services franchise, which, if received, would replace and supersede the .existing Open Video System franchise with the City. Notwithstanding this application, CBC has asked the City to proceed with the review and processing of the transfer application because the State franchise will likely not be issued until January. According to the City Attorney's office, CBC's application for a State video services franchise does not provide grounds for denial of the Open Video System franchise transfer to CBC, and the City probably cannot prevent the State from issuing CBC a State franchise. The managing partners of CBC Broadband Holdings are -Ruben Garcia and Albert Lemus, each of whom has prior experience in the telecommunications business. CBC proposes to continue business as usual, maintaining existing staff and facilities. CBC has told City staff that for the time being they will continue to use the Champion name and a-mail domains, but this may change in the future should the company decide to pursue new branding and/or promotional efforts. In time, CBC hopes to market their services into other areas of the San Gabriel Valley and therefore grow the footprint of Champion Broadband. In processing the transfer application, staff consulted with Andrew Morris and Stephen Deitsch of Best Best & .Krieger. All parties are in agreement that the information provided to the City by Mr. Garcia and Mr. Lemus is sufficient and meets the criteria for approving the transfer. Adoption of Resolution No. 6662 (attached) and execution of the Assignment and Assumption Agreement incorporated into said resolution will effectively approve the transfer. Upon the close of the transaction between CBC and Champion, CBC will assume and be bound by the obligations under the franchise until and unless CBC is granted a State franchise. FISCAL IMPACT The transfer itself does not have a fiscal impact on the City. CBC is paying 100% of the City's cost to review and approve the transfer application. Should the company be Mayor and City Council -Resolution No. 6662 December 16, 2008 Page 3 successful in broadening its services and customer base, the end result could possibly be an increase in franchise fee revenue for the City. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 6662, a resolution of the City Council of the City of Arcadia, California, authorizing the assignment of an Open Video System Franchise Agreement by Champion Broadband California, LLC to CBC Broadband Holdings, LLC; and further, that the City Council authorize the City Manager to execute the Assignment and Assumption Agreement incorporated into said resolution. Attachment: Resolution No. 6662 Assignment and Assumption Agreement RESOLUTION NO. 6662 A RESOLUTION OF THE CITY COUNCIL OF THE OF THE CITY OF ARCADIA, CALIFORNIA, AUTHORIZING THE ASSIGNMENT OF AN OPEN VIDEO SYSTEM FRANCHISE AGREEMENT BY CHAMPION BROADBAND CALIFORNIA, LLC TO CBC BROADBAND HOLDINGS, LLC WHEREAS, Champion Broadband California, LLC dba Champion Broadband ("Franchisee") currently holds a franchise issued by the City of Arcadia (the "Franchise") authorizing the construction; operation and maintenance of an "open video system" resembling a cable television system in some respects, through which a variety of video programming is transmitted to subscribers; and WHEREAS, pursuant to an Asset Purchase Agreement dated September 5, 2008 between the Franchisee and CBC Broadband Holdings, LLC ("New Franchisee"), the New Franchisee will acquire the assets of the Franchisee in Arcadia and will be assigned the Franchise by Franchisee subject to approval by the City of Arcadia; and WHEREAS, the New Franchisee intends to continue operating the existing open video system to provide video programming to subscribers; and WHEREAS, the New Franchisee has filed Federal Communications Commission ("FCC") Form 394 to provide details regarding the acquisition of the Franchisee's Arcadia open video system and the assignment of the Frahchise and to establish the qualifications of the New Franchisee; and WHEREAS, the Franchisee and the New Franchisee have filed. with the City an application for the assignment of the Franchise, including FCC Form 394, and has subsequently provided additional information at the City's request; and WHEREAS, the New Franchisee has applied to the California Public Utilities Commission for astate-issued video services franchise, which, if issued, would replace and supersede the Franchise, but notwithstanding this application the New Franchisee has indicated that it wishes to proceed with the City's review of the Franchise transfer application; and WHEREAS, in accordance with the City of Arcadia's cable television ordinance and the Cable Television Consumer Protection and Competition Act of 1992, the City has the right to review and to approve the financial, technical, and legal qualifications of the Transferee in connection with the proposed assignment of the Franchise; and WHEREAS, the staff of the City has reviewed the documentation that accompanied FCC Form 394 and, based upon the representations set forth in that documentation, has concluded that the New Franchisee has the requisite financial, technical, and legal qualifications to adequately perform, or to ensure the performance of, all obligations required of the Franchisee under the Franchise, and that New Franchisee will be bound by all existing terms, conditions, and obligations of the Franchise; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA RESOLVES AS FOLLOWS: SECTION 1. In accordance with the City's cable television ordinance and Section 13.1(b) of the Franchise, the City consents to and approves the proposed assignment of the Franchise from Franchisee to New Franchisee, conditioned upon compliance by the Franchisee and/or New Franchisee with the following requirements, as to which the Franchisee and New Franchisee are jointly and severally responsible: A. The Franchisee and the New Franchisee shall execute and file in the office of the City Clerk an "Assignment and Assumption Agreement" substantially in the form attached to this resolution as Exhibit A. The City Manager is authorized to execute that document and thereby evidence the City's written consent to the assignment and assumption of all rights and obligations under the Franchise. B. An original or conformed copy of the written instrument evidencing the closing and consummation of the transfer and assignment of the Franchise shall be filed in the office of the City Clerk within 30 days after that closing and consummation. C. Revised insurance certificates showing the name of the New Franchisee in accordance with Section 2.4 of the Franchise shall be filed in the office of the City Manager within 30 days after the closing of the transfer and assignment of the Franchise. -2- D. The City shall be reimbursed for costs and expenses, including legal costs, reasonably incurred in processing and evaluating the proposed transfer and assignment of the Franchise. The City acknowledges receipt of a deposit of $15,000 in connection with the application for the transfer of the Franchise, and to the extent the City's costs have exceeded this amount, the City will set forth the amount due in an itemized statement addressed to the Franchisee and the New Franchisee subsequent to the adoption of this resolution. SECTION 2. The City's approval of the transfer does not constitute a waiver of any rights or remedies that the City may have as a result of any non-compliance on the part of Franchisee or New Franchisee and the City may assert any non-compliance and pursue all remedies available to the City for any non-compliance. Franchisee and New Franchisee similarly reserve any and all rights and defenses with respect to any non-Compliance. SECTION 3. Upon the close of the Transaction, New Franchisee shall assume and be bound by the obligations under the Franchise. SECTION 4. The City Clerk is directed to transmit a copy of this resolution to the following persons: Mr. Mark Haverkate Chief Executive Officer Champion Broadband California, LLC 13710 Struthers Road, Suite 120 Colorado Springs, CO 80921 Mr. Ruben Garcia Chief Executive Officer CBC Broadband Holdings, LLC 2702 Media Center Dr. Los Angeles, CA 90065 SECTION 5. This resolution shall become effective upon its adoption. -3- PASSED, APPROVED AND ADOPTED this !day of 2008. AYES: NOES: ABSENT: By: Mayor ATTEST: By: City Clerk City of Arcadia APPROVED AS TO FORM: BEST BEST & KRIEGER LLP By: City Attorney City of Arcadia -4- EXHIBIT "A" ASSIGNMENT AND ASSUMPTION AGREEMENT OPEN VIDEO SYSTEM FRANCHISE AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT ("Agreement") is made and entered into this day of , 2008, by and between Champion $roadband California, LLC, dba Champion Broadband, a Wyoming limited liability company ("Assignor"), CBC Broadband Holdings, LLC, a Delaware limited liability company ("Assignee"), and the City of Arcadia, a California municipal corporation ("City"). RECITALS A. Assignor is the authorized holder of a franchise that authorizes the construction, operation, and maintenance of an open video system within the City of Arcadia, California (the "Franchise"). Assignor's open video system franchise will expire by its terms on December 6, 2015. B. Subject to the prior consent of the City, Assignor desires to assign and tra~isfer to Assignee, and Assignee desires to assume, all rights and obligations under the Franchise. THE PARTIES AGREE AS FOLLOWS: 1. Assignor assigns and transfers to Assignee all of Assignor's rights, duties, and obligations under the Franchise. 2. Assignee covenants and agrees with Assignor and with the City to assume all rights and to assume and perform all obligations of the Assignor under the Franchise. 3. The City hereby consents to the transfer and assignment by Assignor to Assignee of all rights, duties, and obligations specified in the Franchise. /// /// /// /// /// /// -2- TO EFFECTUATE THIS AGREEMENT, the parties hereto have caused this Assignment and Assumption Agreement to be executed by their duly authorized representatives as of the latest date set forth below: ASSIGNOR CHAMPIONBROADBAND CALIFORNIA, LLC dba CHAMPION BROADBAND, a Wyoming limited liability company ASSIGNEE CBC BROADBAND HOLDINGS, LLC a Delawaze limited liability company By: Title: Date: By: Title: Date: APPROVED AS TO FORM Legal Counsel CITY OF ARCADIA By: City Manager Date: ATTEST By: Title: Date: By: Title: Date: APPROVED AS TO FORM Legal Counsel APPROVED AS TO FORM City Clerk City Attorney RVPUB\AMORRI S\756256.1 DATE: December 16, 2008 TO: Mayor and City Council ~7 FROM: Donald Penman, City Manager `~ By: Linda Garcia, Com nications, Marketing and Special Projects Manager SUBJECT: FEDERAL LEGISLATIVE ADVOCACY PRIORITIES FOR 2009 Recommendation: Approve SUMMARY The Ferguson Group has represented the City of Arcadia for more than a decade with regard to federal legislative matters and revenue opportunities. Their efforts have resulted in the receipt of millions of dollars to assist with various City projects. Every year the City Council reviews and approves projects for which The Ferguson Group will focus on in the next legislative session. This report summarizes the areas staff is suggesting we work on in the coming year and asks that the City Council set the federal lobbying priorities for 2009. BACKGROUND The City of Arcadia uses The Ferguson Group to assist in obtaining federal funding for local projects that benefit the residents of Arcadia and in some cases the residents of the San Gabriel Valley, including Arcadia. This assistance comes in the form of direct lobbying with federal legislators as well as helping City staff navigate the complicated world of federal grant and appropriations procedural requirements. Since the beginning of our association with The Ferguson Group and our efforts to lobby the federal government for financial assistance, Arcadia has been successful in obtaining millions of dollars to assist with projects we would otherwise have difficulty completing. Money has been received for traffic and street improvements, counter- terrorism training, the Ruth and Charles Gilb Arcadia Historical Museum, and the most significant and ongoing funding has been for joint Arcadia/Sierra Madre water improvement projects that are designed to ensure the integrity of our water system and the safety and reliability of drinking water in the event of a major seismic incident. Office of the City Manager Mayor and City Council - 2009 Federal Legislative Priorities December 16, 2008 Page 2 While Arcadia has had excellent results with our federal lobbying program, it should be noted that the availability of funds and the priorities of the federal government vary from year to year, as does the willingness of legislators to provide money to local jurisdictions. As was the case last year, the Washington, DC climate is not particularly positive when it comes to appropriations and earmarks; however, there are some areas in which The Ferguson Group believes we could be successful, or should at least pursue. In addition to seeking funding for projects taking place now or in the near future, it is also important to lay the groundwork with legislators for funding requests we may have in the next few years. DISCUSSION Staff recently met with Trent Lehman of The Ferguson Group and discussed several projects and alternatives for approaching the City of Arcadia's funding requests this year so that they will best meet federal criteria and be favorably received with respect to the current environment in Washington, D.C. On the advice of Mr. Lehman, staff is suggesting that we carry on the approach of concentrating on the highest priority projects that fall within the general guidelines and areas where there is the most discretion in terms of appropriations. Accordingly, staff is recommending that the City focus in two areas: water infrastructure improvements and transportation projects. Beyond that, an additional consideration would be to again pursue funding to assist with the construction of a Joint Fire Suppression/Emergency Preparedness Training Facility. A brief summary of these projects is listed below. Water Projects The Joint Water Infrastructure Project of Arcadia and Sierra Madre encompasses the design, creation of plans and specifications, and construction of water system facilities that will safeguard the quality and reliability of the drinking water supply for Arcadia and Sierra Madre in the event of a major seismic event in the region.. These facilities increase the yield of the basins and provide additional supply capability. A second water project is to assure water supply reliability and protect and enhance water quality in our domestic wells. This project is called the Arcadia/Sierra Madre Phase 1 Water Environmental Infrastructure Restoration Program and it includes the planning, design, and construction of water infrastructure projects associated with the implementation and recommendations contained in the East Raymond Basin Water Resources Plan that was completed in 2006. Santa Anita Gold Line Overpass Arcadia residents voted in 2006 to tax themselves to pay for an overpass for the Gold Line over Santa Anita Avenue. The amount of the collection at that time was $8 million of an estimated $73 million project (City share $5 million). Given the delays in the construction of the Gold Line, the estimated cost of the project has likely increased. Mayor and City Council - 2009 Federal Legislative Priorities December 16, 2008 Page 3 Although we do not yet know. the cost increase, with the passage of Measure R the construction of the Gold Line may now be a reality. With the assistance of The Ferguson Group the City would seek a federal appropriation to fund the difference between $13 million and the final project cost. Improvements in circulation for all modes of travel around the Gold Line Station Street work, sidewalk and bikeway improvements and connectivity around the Gold Line Station to integrate it into the downtown is important to achieve the City's vision for the area. This could. include bicycle facilities, sidewalk improvements, street furniture, upgrades to the parking structure at the station and traffic signal improvements. Citywide pedestrian and bicycle connection improvement oroiect This project could include connections of bike and pedestrian routes to schools and in high-density zones, bicycle storage at commercial centers, bike routes and pedestrian route planning. We have heard a need for these things many times through the development of the General Plan and feel this would be a great partnership project with the City (Recreation and Community Services and Development Services) and the School District. Joint Fire Suppression/Emergency Preparedness Trainino Facility There is a limited amount of space within the City of Arcadia for training Fire Department personnel without disrupting private property owners and/or the public. In the past, the City has utilized various private and public properties for training purposes including Santa Anita Park and Westfield Santa Anita. However, these facilities have become unsuitable for certain types of training due to the lack of adequate available space and federal and State requiremehts that prohibit runoff water from the training to enter the storm drain system. To address this problem, staff has for several years looked at the possibility of constructing a Joint Training Facility that would be used by the City of Arcadia, the United States Forest Service and public safety departments of surrounding jurisdictions. The proposed site is the Forest Service property located at 701 North Santa Anita. The facility is large enough to conduct Fire Department training such as hose lays, large. water flow master streams, ground ladder deployment, defensive driving, search and rescue, confined space rescue, trench rescue and high/low angle rope rescue. A primary element of the facility would be a 40' tall steel training tower with an enclosed stairwell, exterior balconies, accessible rooftops, water standpipe and sprinkler systems, a smoke generating system, anchor points for repelling and a burn room for live fire training. A classroom for training sessions would be incorporated into the facility. Mayor and City Council - 2009 Federal Legislative Priorities December 16, 2008 Page 4 If constructed, the facility would be made available to Arcadia departments as well as surrounding jurisdictions in support of our mutual goal of maintaining well-trained firefighters, police officers and public works employees who are prepared to respond to emergencies. It is staff's hope that the regional nature of the facility would be useful in terms of our ability to obtain federal funding. FEDERAL ECONOMIC STIMULUS PACKAGE A factor that could come into play in the next year is the possibility that Congress may pass a second federal economic stimulus package, this time in the form of a "work program" that would provide money for public infrastructure programs and thereby create jobs. If this happens, it is likely that projects ready to "put shovel in the ground" in the next year or two will be received more favorably. Of course, there will be other criteria for the money, but high on the list is putting people to work as quickly as possible. A stimulus program may require going through the State to actually get the money. The Ferguson Group is lobbying Congress to move dollars toward block grants because this gives cities more control over the projects and how the money is used. While there is not much to do right now other than wait and see what happens in the next few months, staff has looked at potential projects that could potentially qualify for this kind of funding. In fact, the primary reason staff recommended moving forward with design development for City Hall is so that we could have the plans ready to go in the event federal money becomes available. A complete design development package, which includes 30% completion of working drawings, should be ready in March 2009. A complete bid package will take approximately three more months to complete. Designed into the building will be sustainable features that we feel will be imperative toward our securing federal funding for a civic building such as a City Hall. If money does become available, it will likely require a competitive process; staff believes that LEED-equivalency is achievable with this building and should therefore help us better compete for these monies. A Museum Education Center would also be something that the City could potentially, seek funding for under a stimulus program. In January staff will bring to the Council a report discussing the specifics of a project that would involve building an accessory building between the Historical Museum and the Community Center. The information in this report about an economic stimulus program is provided more "for your information" rather than your action at this time. If and when a stimulus package is approved, staff will give you more detailed information concerning the application process and provide suggestions for projects that we may want to submit for consideration. Mayor and City Council - 2009 Federal Legislative Priorities December 16, 2008 Page 5 FISCAL IMPACT The purpose of this report is to ask the City Council to set the priorities for our legislative efforts in the coming year. While there is a cost associated with the retention of The Ferguson Group and with executing the projects mentioned in this report, there is no fiscal impact at this time. RECOMMENDATION Staff recommends that the City Council authorize staff to direct The Ferguson Group to work on behalf of the City of Arcadia to seek funding for the projects referenced in this report; and further, authorize staff to submit any documents or application forms for federal funding that may be needed for each project. m~ ..a Au9.~~3~~19V1 \\ DATE: December 1ti, 2008 STAFF REPORT Administrative Services Department TO: Mayor and City Council FROM: Donald Penman, City Manager By: Hue C. Quach, Administrative Services Director SUBJECT: Consideration of adding a Measure to the April 21, 2009, Special Municipal Election Ballot and appropriating funds for election related costs. Resolution No. 6664 - A Resolution of the City Council of the City of Arcadia, California, declaring an emergency under Proposition 218 and calling for the placement of a General Tax Measure to be placed on the ballot at a Special Municipal Election to be held on Tuesday, April 21, 2009 with the Arcadia Unified School District Board of Education for the submission to the qualified voters of a proposed ordinance updating the telephone/telecommunications provisions of the City's Utility Users Tax. Resolution No. 6665 - A Resolution of the City Council of the City of Arcadia, California, requesting the Board of Supervisors of the County of Los Angeles to consolidate a Special Municipal election to be held on Tuesday, April 21, 2009, with the Arcadia Unified School District Board of Education Election to be held on that date pursuant to section 10403 of the elections code. Resolution No. 6666 - A Resolution of the City Council of the,City of Arcadia, California, setting priorities for filing written arguments regarding a City measure and directing the City Attorney to prepare an impartial analysis. Resolution No. 6667 - A Resolution of the City Council of the City of Arcadia, California, providing for the filing of rebuttal arguments for City measures submitted at Municipal Elections. Recommendation: Adopt all Resolutions Page 1 of 3 Mayor and City Council December 16, 2008 -. SUMMARY As a result of changes in federal regulations, litigation and potential legislation the City of Arcadia, along with all other cities in California with Utility Users Taxes (UUT), face the possible loss of these revenues as they relate to telecommunications. In order to protect these revenues an update to the definitions contained in the City's UUT ordinance is required. In accordance with the requirements of Proposition 218 such an update necessitates a vote of the people. Staff recommends that the City Council proceed in this fashion. Without the revenue from the existing UUT, the City could be forced to make cuts in programs and services that would affect all residents, such as police and fire protection, emergency response, parks and senior service, tree trimming, street repair, and library services. BACKGROUND On December 2, 2008 the City Council directed staff to prepare the necessary resolutions to submit to the qualified electors of the city at a April 21, 2009, Special Municipal election, a Measure to modernize the application of the City's Utility Users Tax (UUT). This action was call for by the recent changes in federal regulations, litigation and potential legislation, which threaten the City's ability to continue to receive UUT revenues related to telecommunications. '. Historically, the City's UUT, as well as that of most cities vvith such taxes, has been applied to telecommunication services in a similar manner as the application of the Federal Excise Tax (FET). On May: 25; 2006, the IRS issued a Notice that it intended to stop applying the Federal Excise Tax to nearly all telephone communication services, thus leading some phone carriers to argue that the IRS ruling; which dramatically reduces the scope of taxable services, also applies to UUT ordinances such as Arcadia's which reference the FET. Updating the definitions of telecommunications in the City's UUT ordinance, through a special election, would eliminate the issues which have been raised in the wake of the FET repeal as well as the associated litigation. The new definitions will be technology-neutral and reflect the modern use of communications so that all. taxpayers will be treated equitably. As an example, this updated definition would treat those consumers who are able to afford newly developed technology equally to those who can't afford and must rely upon the traditional landline phone system for their communication needs. Most importantly, these changes are expected to be cost-neutral to current users of telecommunications as the proposed ordinance does not change the tax rate of the existing UUT.. Under Proposition 218, in order to place a measure of this nature on a Special Election ballot, the City Council must declare an emergency and a unanimous vote of the City Council is required. Mayor and City Council December 16, 2008 FISCAL IMPACT The costs associated with consolidating a Special Municipal Election with the Arcadia Unified School District are estimated to be $165,000. Should Council approve all the resolutions attached, at a future Council meeting, staff would bring forth a title for a budget amendment to appropriate $165,000 from the General Fund's Reserve. Under this approval, the County of Los Angeles would administer the election. Another option presented is to hold a stand alone City Special Election at a later time. The cost for this stand alone Special Election would be approximately $115,000. The proposed ballot measure is designed to protect approximately $1,000,000, approximately 70%, of the City's current Utility Users' Tax revenue collected from telecommunications services; if not adopted this revenue is expected to substantially decline aver time and would affect programs and services critical to the community. RECOMMENDATION Adopt the following resolutions related to ordering the submission of a proposed ballot measure before the voters of the City at the April 21, 2009, Special Municipal Election: Resolution No. 6664 - A Resolution of the City Council of the City of Arcadia, California, declaring an emergency under Proposition 218 and calling for the placement of a General Tax Measure to be placed on the ballot at a Special Municipal Election to be held on Tuesday, April 21, 2009 with the Arcadia Unified School District Board of Education for the submission to the qualified voters of a proposed ordinance updating the telephone/telecommunications provisions of the City's Utility Users Tax. Resolution No. 6665 - A Resolution of the City Council of the City of Arcadia, California, requesting the Board of Supervisors of the County of Los Angeles to consolidate a Special Municipal election to be held on Tuesday, April 21, 2009, with the Arcadia Unified School District Board of Education Election to be held on that date pursuant to section 10403 of the elections code. Resolution No. 6666 - A Resolution of the City Council of the City of Arcadia, California, setting priorities for filing written arguments regarding a City measure and directing the City Attorney to prepare an impartial analysis. Resolution No. 6667 - A Resolution of the City Council of the City of Arcadia, California, providing for the filing of rebuttal arguments for City measures submitted at Municipal Elections. Approved By: ~~c.~..r,-ec„ Donald Penman City Manager ~' ATTACHMENTS -Resolutions RESOLUTION NO. 6664 ,- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DECLARING AN EMERGENCY UNDER PROPOSITION 218 AND CALLING FOR THE PLACEMENT OF A GENERAL TAX MEASURE TO BE PLACED ON THE BALLOT AT A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, APRIL 21, 2009 WITH THE ARCADIA UMFIED SCHOOL DISTRICT BOARD OF EDUCATION FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF A PROPOSED ORDINANCE UPDATING .THE TELEPHONE/ TELECOMMUNICATIONS PROVISIONS OF THE CITY'S UTILITY USERS TAX WHEREAS, pursuant to Article II, Chapter 6, Part 7 of the Arcadia Municipal Code (A.M.C. § § 2670 - 2679), the City currently levies a Utility Users' Tax ("UUT") at the rate of seven percent (7%) on electricity, gas and water and at the rate of five percent (5%) on telephone usage within the City; and WHEREAS, pursuant to Arcadia Municipal Code Sections 2671.5 and 2671.6, the City has suspended a portion of the UUT and has been temporarily collecting the UUT at the rate of five percent (5%) for electricity and gas usage, and has not been collecting UUT on water usage; and WHEREAS, the UUT is a general tax which funds the City general fund. The general fund pays for essential City services such as police protection, fire and paramedic services, street operations and maintenance, library services, parks and recreation services and general municipal services to the public; and WHEREAS, the City currently receives approximately $5,100,000 per year 1 in WT, approximately $1,500,000 of which is generated solely from telephone communication services, and such revenues are critical to the public welfare and the City's financial ability to provide essential municipal services; and WHEREAS, several lawsuits have been filed in other jurisdictions challenging the application of the iJiJT to certain telephone/telecommunication services as a result of outdated ordinance definitions or references to outdated federal laws (ie: the Federal Excise Tax); and WHEREAS, an adverse ruling on the Federal Excise Tax issue (and its application to the City's telephone communications UUT) could result in the elimination of 70% or more of the City's current WT on telephone communication services -amounting to over $1,000,000 of general fund revenue per year; and WHEREAS, in the case of AB Cellular LA, LLC v. City of Los Angeles, a final appellate court ruling was rendered in May, 2007, with possible adverse financial implications for the City's iJ[JT on wireless telephone services and the City's budget. WHEREAS, a number of telephone companies are applying the City's UUT inconsistently, due to outdated definitions and legal uncertainty, exposing the City ~., . to refund claims and legal challenges regarding inconsistent application of the 2 City's telephone communications tax; and WHEREAS, several major telecommunication providers have notified the City in writing that they are collecting and remitting the City's WT under protest; and WHEREAS, without immediate voter approval of the City's telephone communications WT, the City will increase its exposure to claims for refunds on the City's telephone communications UUT that could adversely affect its budget; and WHEREAS, without immediate voter approval of the City's telephone communications IJLJT, the City's budget could be vulnerable to serious financial shortfalls due to adverse court rulings (existing and/or imminent) regarding the City's telephone communications iJiJT' that cannot be covered by current City reserves or by readily available alternative revenue sources; and WHEREAS, such financial shortfalls may force the reduction of essential municipal services, which will endanger the health, safety and general welfare of the City and its citizens; and there is a need to amend the WT in order to maintain funding for City services at existing levels for the health, safety and general welfare of the citizens of the City; 3 WHEREAS, the City desires reasonable certainty in the collection and receipt of its WT and budgetary planning; consistent application of its telephone communications UU'T; and the elimination of current legal risks associated with its existing telephone communications WT; and WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition 218 (California Constitution, Article XIIIC), an amendment to the State Constitution which requires that all general taxes which are imposed, extended or increased must be approved by a majority vote of the voters; and WHEREAS, the amendments proposed in the attached ordinance may be characterized as an "increase" in the WT under Proposition 218; and WHEREAS, Proposition 218 permits the City Council to call a special election to impose, increase or extend a general tax, if the City Council finds that there exists an emergency requiring an election to be conducted earlier than the next regularly scheduled general election at which city council members are to be elected; and WHEREAS, the next regularly scheduled general election at which city council members are to be elected is not until April, 2010; and WHEREAS, as .described above, the health, safety and general welfare of the citizens of the City would be endangered if the City were unable to place the 4 UUT measure before its voters until April, 2010; and ~ WHEREAS, all of the circumstances described create an emergency situation warranting the placement of a measure on the next available special election ballot to permit the voters to decide on the UUT measure pursuant to Proposition 218. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION L Findings. 'The City Council finds that all of the preceding recitals are true and correct. SECTION 2. Declaration of Emergency. Pursuant to California Constitution, Article XIIIC, Section 2(b), the City Council hereby unanimously declares the existence of an emergency in that there are imminent financial risks and dangers, as described above, to the public welfare and the City's financial ability to provide essential municipal services without disruption, so that a special election is necessary to address such risks and dangers SECTION 3. Submission of Measure. Pursuant to Government Code Section 53724 .and any other applicable requirements of the laws of the State of California; the City Council hereby orders the following proposed ordinance to be 5 submitted to the voters of the City at a special municipal election to be held on Tuesday, April 21, 2009: "While maintaining existing low income and YES disabled household exemptions, shall an ordinance be adopted to help preserve funding for critical City services, including police and fire protection, emergency response, parks and senior services, tree trimming, street sweeping, and library services by updating the City's Utility Users Tax on telephone/ telecommunications services to include new technologies; treating all taxpayers equally regardless of technology used?" NO SECTION 4. Text of Ordinance. The text of the ordinance to be submitted to the voters is attached as Exhibit "A". SECTION 5. Conduct of Election. The City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 6. Notice of Election. Notice of the time and place of holding the election is hereby given, and the City Clerk is authorized, instructed 6 and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 7. Impartial Analysis. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City-Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk within ten (10) days following the adoption of this Resolution. SECTION 8. Certification. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of 2008. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: ~ I~~~ Stephen P. Deitsch City Attorney 7 ATTACHMENT "A" Ordinance Regarding Utility Users Tax (ATTACHED) 8 MEASURE " "/ORDINANCE NO. ,- AN ORDINANCE OF THE PEOPLE OF THE CITY OF ARCADIA UPDATING THE TELEPHONE/TELECOMMUNICATIONS PROVISIONS OF THE CITY'S UTILITY USERS TAX. (NOTE: additions are highlighted in bold italics and deletions aze highlighted in st-r}keeat) THE PEOPLE OF THE CITY OF ARCADIA, CALIFORNIA DO HEREBY ORDAIN AS FOLLOWS: Section I. Section 2670 of Part 7 of Chapter 6 of Article II of the Arcadia Municipal Code is hereby amended to read as follows: "2670. DEFINITIONS. The definitions given in this section govern the construction of this Part. (a) "Person" shall mean any domestic or foreign corporation, firm, association, syndicate, joint stock company, partnership or any kind, joint venture, club, Massachusetts business or common-law trust, society, individual, or municipal corporation. (b) "City" shall mean the City of Arcadia. (c) " ", "eElectrical corporation", "gas corporation", "water corporation", and "cable television corporation" shall have the same meanings as defined in Sections 234; 218, 222, 241 and 215.5, respectively, of the Public Utilities Code of the State of California, as said sections existed on January 1, 1970, except that "water corporation" shall not mean or include the City of Arcadia. (d) "Tax Administrator" shall mean the Finance Director of the City of Arcadia. (e) "Service Supplier" shall mean a person required to collect and remit a tax imposed by this Part. (f) "Service User" shall mean a person required to pay a tax imposed by this Part. (g) "Month" shall mean a calendar month (h) "Ancillary Telecommunicafions Services" shall mean services that are associated with or incidental to the provision, use or enjoyment of telecommunications services, including but not limited to the following services: (Z) "Conference bridging service" means an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge. (2) "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement (3) "Directory assistance" means an ancillary service of providing telephone number information, and/or address information. (4) "Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services. (S) "Voice mail service" memo an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service. (i) "Billing Address" shall mean the mailing address of the service user where the service supplier submits invoices or bills for payment by the service user. (j) "Communicafion Services" shall mean telecommunications services and ancillary telecommunication services. (k) "Mobile Telecommunications Service" shall have the same meaning and usage as set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124) and the regulations thereunder. (l) "Municipal Organization"shall mean an organization or association created by statute or by voluntary action, whose purpose is to facilitate the development and dissemination of uniform rulings or interpretations regarding the application of utility users taxes to communications services in the State of California. (m) "Place of Primary Use" shall mean the street address representative of where the customer's use of the communications service primarily occurs, which must be the residential street address or the primary business street address of the customer. (n) "Post-Paid Telecommunication Service" shall mean the telecommunication service obtained by making a payment on atelecommunication-by-telecommunication basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a service number which is not associated with the origination or termination of the telecommunication service. (o) "Prepaid Telecommunication Service" shall mean the right to access telecommunication services, which must be paid for in advance and which enables the origination of telecommunications using an access number or authorization code, whether manually or electronically dialed, mad that is sold in predetermined units or dollars of which the number declines with use in a known amount (p) "Private Telecommunication Service" shall mean a telecommunication service that _ entitles the customer to exclusive or priority use of a telecommunications channel or group of channels between or among termination points, regardless of the manner in 10 which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in ' connection with the use of such channel or channels. A telecommunications channel is a physical or virtual path of telecommunications over which signals are transmitted between or among customer channel termination points (i. e., the location where the customer either inputs or receives the telecommunications). (q) "Service Address" means any of the following: (1) The location of the service user's telecommunications equipment from which the telecommunication originates or terminates, regardless of where the telecommunication is billed or paid; or, (2) If the location in subsection (1) of this definition is unknown (e.g., mobile telecommunications or VoIP service), the service address means the location of the service user's place of primary use, or (3) For prepaid telecommunication service, "service address" means the location associated with the service number. (r) "Streamlined Sales and Use Tax Agreement" shall mean the multi-state agreement commonly known and referred to as the Streamlined Sales and Use Tax Agreement, and as it is amended from time to time. (s) "Communications Services" shall mean the transmission, conveyance, or routing of voice, data, audio, video, or any other information ar signals to a point, or between or among points, whatever the technology used The term "communications services" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over Internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data services that is functionally integrated with "communications services': "Communications services" include, but are not limited to the following services, regardless of the manner or basis on which such services are calculated or billed: ancillary telecommunication services; mobile telecommunicafions service; prepaid telecommunication service; post paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll free numbers designated by the Federal Communications Commission); 900 service (or any other similar numbers designated by the Federal Communications Commission for services whereby subscribers who call in to pre-recorded or live service). (t) "VoIP" (Voice over Internet Protocol) shall mean the digital process of making and receiving real-time voice transmissions over any Internet Protocol network. (u) "800 SERVICE" shall mean a "communications service" that allows a caller to dial a toll free number, without incurring a charge for the call. The service is typically marketed under the name "800'; "855'; "866'; "87T; and "888" toll free calling, and mxy subsequent numbers designated by the Federal Communications Commission. 11 (v) "900 SERVICE" shall mean an inbound toff "communications service"purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. "900 service" does not include the charge far: collection services provided by the seller of the "telecommunications services" to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typicalfy marketed under the name "900" service, and any subsequent numbers designated by the Federal Communications Commission." Secfion 2. Section 2671 of Part 7 of Chapter 6 of Article II of the Arcadia Municipal Code is hereby amended to read as follows: "2671. ~8p1~ COMMUNICATIONS SERVICES TAX. (a) There is hereby imposed a tax upon every person in the City, using intrastate, interstate and international communications services, including cellulaz telephone services, and the telephone services that gain access to the Public Switched Network (PSN), by means of various technologies, by every person in the City using such services. The tax imposed by this section shall be at the rate of five percent (5%) of all charges made for such services and shall be paid by the person paying for such service. There is a rebuttable presumption that communications services, which services are capable of terminating a call to another person on the genera! telephone network, and which are billed to a billing or service address in the City, are used, in whole or in part, within the City's boundaries, and such services are subject to taxation under this chapter. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax (b) "Mobile Telecommunications Service" shall be sourced in accordance with the sourcing rules set forth fn the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124). The Tax Administrator may issue and disseminate to communication service suppliers, which are subject to the tax collection requirements of this Part, sourcing rules for the taxation of other communication services, including but not Limited to post paid telecommunication services, prepaid telecommunication services,' and private telecommunication services, provided that such rules are based upon custom and common practice that further administrative efficiency and minimize multi jurisdictional taxation (e.g., Streamlined Sales and Use Tax Agreement). (bc) As used in this section, the term "., °-~~°" °L°" °~* ~..,.,•.a,. °L°-~ a f IFP~-va l_7 L Y 1.~~1...11 1.,. :«,.1...],.,7 :.. a4.. 1...,.,. C - ,. ._..4:..._ ~L ,... _ _f a.... A..°~ ... ....L~11 .1.,, a,,..... «isae-communciations services" shall not include " private mobile radio services"^~ ~-~°~w~~`'~r-~° --•°L~'~ °~-••~°°° [as defined in c~~ Part 20.3 of Title 47 of the Code of Federal RegulationsJ, or `private mobile service" [as defined in 47 U.S.C.A. Seciox 332(d)(3)j, which is not interconnected with the PSN u ~;:ch ~c~ti^~ °°'°'°a ~° T°-••°--• '~. As used in this section, the term "communications services" shall include, but shall not be limited to charges for: connection, recomxection, termination, movement, or change of communications services; late payment fees; detailed billing; central office and custom calling 12 features (including but not limited to call waiting, call forwarding, caller identification and _ three-way calling; voice mail and other messaging services; directory assistance; access and ' ~ line charges; universal service charges; regulatory, administrative and other. cost recovery charges; local number portability charges; and text and instant messaging. "Communication services". shall not. include digital downloads such as, music, ringtones, games, and similar digital products. .) Y Y J Y «4......4~ke «4 e ~d) mt a n i w w n ~e err ,.«..e ,.,, n,,,.e«.L.,.. ~ inn' As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by'the service user in exchange for the communications services. (e) The Tax Administrator, from time to time, may issue and disseminate to '~' communications service suppliers that are subject to the tax collection requirements of this Part, an administrative ruling identifying those communications services that are subject to the tax of subsection (a) above. This administrative ruling shall not impose a new tax, revise an existing tax methodology as stated in this Part, or increase an existing tax except as allowed by California Government Code Section 53750(h)(2), as it may be amended from time to time. (n To facilitate the uniform interpretation and application of similar ordinance provisions in other local jurisdictions in the state, the Tax Administrator may, prior to issuing and disseminating a sourcing rule or an administrative tax ruling, submit his or her proposed sourcing rule or administrative tax ruling to a Municipal Organization far review and comment,.according to the rufes'and procedures of that Municipal Organization, or its successor organization. (p~ To prevent actual mull jurisdictional taxation of communications services subject to tax under this section, any service user, upon proof to tlse Tax Administrator that the service user has previously paid the same tax in another state or city on such communications services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or city; provided, however, the amount of credit shall not exceed the tax owed to the City under this section." Section 3. Section 2671.4 is hereby added to Part 7 of Chapter 6 of Article II of the Arcadia Municipal Code and shall read as follows: "267L4 EFFECTOFBIIIVDLIIVGTAXABLEWITHNON-TAXABLEITEMS. If any nontaxable charges are bundled with and not separately stated from taxable service charges on the customer bill or invoice of a service supplier, the combined charge is subject to tax unless the service supplier identifies, by reasonable and verifiable standards, the portions of the combined charge that are nontaxable and taxable through the service supplier's books 13 and records kept in the regular course of business, and in accordance with generally accepted ~ accounting principles, and not created and maintained for tax purposes. The service supplier has the burden of proving the proper apportionment of taxable and non-taxable charges. If the service supplier offers a combination of taxable and non-taxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and non- taxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, and not created and maintaired for tax purposes. The service supplier has the burden of proving the proper valuation of the taxable and non-taxable services. " Section 4. Section 2671.6 of Part 7 of Chapter 6 of Article II of the Arcadia Municipal Code is hereby amended to read as follows: "2671.6 INDEFINITE SUSPENSION OF A PORTION OF THE UTILITY USER TAX RATE That notwithstanding the utility user tax rates set forth in ~::'~~:.:,.a,.~~,~(~; 2671.1 (a} and 2671.2 (a), of this Code, thn ..F~~i4.r .. 4.. .. F.. r « 4ule.ni.,. ..~. n w a rcoi~ a w ~""' ` -' °"~'- '~'~~'-~~~, the utility user tax rate for electricity shall be five percent (5%) of the chazges for such electricity, and the utility user tax rate for gas shall be five percent (5%) of the charges for such gas. That during such time as this Section of the Arcadia Municipal Code is in effect, the utility user tax rates imposed by Subsections ~1-(a); 2671.1 (a} and 2671.2 (a) over the rate set forth in this Section, shall be suspended, and shall not be collected. The rate set forth in this Section shall not be operative as to a service user and the duty to collect the tax pursuant to such rate from a service user shall not commence until-the begmnmg o e first regular billing period applicable to that service user which starts on or after Tune 3, 1980. Where a service user receives more than one (1) billing, one or more being for different periods than another, the rate set forth in this Section shall be operative, and the duty to collect the tax pursuant to said rate shall arise separately for each billing period. The utility users tax shall be reviewed annually by the City Council and the City Council may, by ordinance or resolution, adjust the rate or temporarily suspend all or a portion of the tax, as appropriate to the financial condition of the city. No adjustment to the rate or temporary suspension of the tax shall constitute a decrease in a tax, or an increase in a tax requiring voter approval under California Constitution Article XIIIC (Proposition 218); provided the City Council's action does not increase the tax beyond the maxinxum rate or methodology set forth in this voter-approved ordinance. To the extent that any aspect of a rate adjustment or temporary tax suspension is found to invoke such a requirement under Proposition 218, the entire City Council action shall be deemed null and void ab initio, and there shall be no entitlement 1o adjustment or suspension for any service user. " Section 5. Section 2671.8 is hereby added to Part 7 of Chapter 6 of Article II of the Arcadia Municipal Code and shall read as follows: "267L8 SUBSTANTIAL NEXUS/MINIMUMCONTACTS For purposes of imposing a tax or establishing a duty to collect and remit a tax under this chapter, "substantial nexus" and "minimum contacts" shall be construed broadly in favor of 14 the imposition, collection and/or remittance of the utility users tax to the fullest extent ~ - permitted by state and federal law, and as it may change from time to time by judicial _ interpretation or by statutory enactment A service supplier shall be deemed to have sufficient activity in the City for tax collection and remittance purposes if its activities include, but are not limited to, a~xy of the following: maintains or has within the City, directly or thrauglx an agent or subsidiary, a place of business of any nature; solicits business in the City by employees, independent contractors, resellers, agents ar other representatives; solicits business in the City on a continuous, regular, seasonal or systematic basis by means of advertising that is broadcast or relayed from a transmitter with the City or distributed from a location within the City; or advertises in newspapers ar other periodicals printed and published within the City or through materials distributed in the City by means other than the United States mail; or if there are activities performed in the City on behalf of the service supplier that are significantly associated with the service supplier's ability to establish and maintain a market in the City for the provision of services that are subject to a tax under this Chapter. " Section 6. Section 2672.1 of Part 7 of Chapter 6 of Article II of the Arcadia Municipal Code is hereby amended to read as follows: "2672.1 EXEMPTION. The tax imposed'by this Part 7 shall not apply during any calendar year to any of the following: la) r~ c w t t • ' t r ~•c n -....i r....~,..,.. •r.,.. r .,~~ r,- ~ ~ error ~o ~,,~,~~rv~-.~c-Any service user who has an income adjusted for family size, at or below fifty percent (50%) of the area median income as determined under the Section 8 Income Limits for Los Angeles County as published by the United States Department of Housing and Urban Development and applicable to the Community Development Block Grant Programs; and ~8-.,....... _.._.,.__ -- , (db) Any persett service user who meets the criterion of disability as established by the Social Security Administration's Supplemental Income program for the Aged, Blind and Disabled. (Title XVI of the Social Security Act as amended.)" Section 7. Section 2679.1 is hereby added to Part 7 of Chapter 6 of Article II of the Arcadia Municipal Code and shall read as follows: "2679.1 FUTURE AMENDMENT TO CITED STATUTE Unless specifically provided otherwise, any reference to a state or federal statute in this Part shall mean such statute.as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent clxaxxge of interpretation thereto by a state or federal agency or court of law with the duty to 15 - interpret such law, to the extent that such amendment ar change of interpretation would require voter approval under California law, or to the extent that such change would result in a tax decrease (as a result of excluding all or a part of any utility service, or charge therefor, from taxation). Only to the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or would not result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent To the extent that the City's authorization to collect or impose any tax imposed under this Part is expanded or limited as a result of changes in state or federal law, no amendment or modifcation of this Part shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the taz imposed under this chapter. " Section 8. Effective Date. The amendments to this Part aze subject to a vote of the citizens of Arcadia and shall become effective immediately upon the date that the City Clerk certifies that this Ordinance has been approved by a majority of the voters of Arcadia at the Special Municipal Election of Apri121, 2009. Section 9. Severability. If any section, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this ordinance. The People of the City of Arcadia hereby declare that they would have adopted this ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declazed invalid or unconstitutional. Section 10. Certification/Summary. Following the City Clerk's certification that the cifizens of Arcadia have approved this Ordinance, the Mayor shall sign this Ordinance and the City Clerk shall cause the same to be entered in the book of original ordinances of said City; and shall cause the same, or a summary thereof, to be published as required bylaw. I hereby certify that the forgoing ordinance was PASSED, APPROVED and ADOPTED by the People of the City of Arcadia on the day of , 2009. ATTEST: City Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney Mayor of the City of Arcadia 16 RESOLUTION N0.6665 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, REQUESTING THE BOARD OF .SUPERVISORS OF THE COUNTY OF LOS. ANGELES TO CONSOLIDATE A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, APRIL 21, 2009, WITH THE ARCADIA UNIFIED SCHOOL DISTRICT BOARD OF EDUCATION ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE WHEREAS, the City .Council of the City of Arcadia called a Special Municipal Election to be held on Tuesday, April 21, 2009, for the purpose of submitting to the voters of a proposed ordinance updating the telephone/telecommunications provisions of the City's Utility Users Tax. WHEREAS, it is desirable that the Special Municipal Election be consolidated with the Arcadia Unified School District Board of. Education to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the county election department of the County of Los Angeles canvass the returns of the Special Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: i SECTION 1. Pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Los Angeles is hereby requested to consent and agree to the consolidation of a Special Municipal Election with the Arcadia Unified School District Board of Education election on Tuesday, April 21, 2009, for the submission to the qualified voters of a proposed ordinance updating the telephone/telecommuncations provisions of the City's Utility Users Tax. SECTION 2. The measure is to appear on the ballot as follows: Proposed Measure "While maintaining existing low income and disabled household exemptions, shall an ordinance be adopted Y to help preserve funding for critical City services, i l di li d f ti t nc u ng po ce an ire pro ec on, emergency response, parks and senior services, tree trimming, street sweeping, and library services by updating the City's Utility Users Tax on telephone/ N telecommunications services to include new technologies; treating all taxpayers equally regardless of technology used?" SECTION 3. Approval of this Ordinance shall require a majority vote of the total number of valid ballots cast and counted. 2 SECTION 4. The county election department is authorized to canvass the returns of the Special Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. SECTION 5. The Board of Supervisors is requested to issue instructions to the county election department to take any and all steps necessary for the holding of the consolidated election. SECTION 6. The City of Arcadia recognizes that additional costs will be incurred by the County by reason of this consolidation and. agrees to reimburse the County for any costs. SECTION 7. The City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the county election department of the County of Los Angeles. SECTION 8. The City Clerk shall certify to the adoption of this Resolution. [SIGNATURES ON NEXT PAGE] i 3 Passed, approved and adopted this day of Mayor of the City of Arcadia ." ATTEST: City Clerk APPROVED AS TO FORM: n 6' / .~' ., Stephen P. Deitsch City Attorney 2009. 4 RESOLUTION NO. 6666 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, a Special Municipal Election is to be held in the City of Arcadia, California on April 21, 2009, at which there will be submitted to the voters the following measure: "While maintaining existing ]ow income and disabled household exemptions, shall an ordinance be adopted to help preserve Yes funding for critical City services, including police and fire protection, emergency response, pazks and senior services; tree No trinuning, street sweeping, and library services by updating the City's Utility Users Tax on telephone/ telecommunications services to include new technologies; treating all taxpayers equally regardless oftechnolo used?" NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. That the City Council authorizes (i) all members of the City Council, (ii) any individual voter eligible to vote on the above Measure, (iii) a bona fide association of such citizens or (iv) any combination thereof, to file a written argument in favor of or against the City Measure, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and to change the argument until and including the date fixed below by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. The deadline to submit arguments for or against the City Measure pursuant to this Resolution is declared by the City Clerk to be December 30, 2008, 5:00 p.m. The arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. SECTION 2. That the City Council directs the City Clerk to transmit a copy of the Measure to the City Attorney, unless the organization or salaries of the office of the City Attorney are affected. The City Attorney shall prepare an impartial analysis of the Measure showing the effect of the Measure on the existing law and the operation of the Measure. If the Measure affects the organization or salaries of the office of the City Attorney, the City Clerk shall prepare the impartial analysis. The impartial analysis shall be filed with the City Clerk within ten (10) days following adoption of the Resolution calling the election. z SECTION 3. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2008. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: ~? /~ Stephen P. Deitsch City Attorney 3 RESOLUTION N0.6667 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, §§9220 and 9285 of the Elections Code of the State of California authorize the City Council, by majority vote, to adopt provisions to provide for the filing of rebuttal. arguments for City measures submitted at municipal elections. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFO1NIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. That pursuant to Sections 9220 and 9285 of the Elections Code of the State of California, when the elections official has selected the arguments for and against the Measure which will be printed and distributed to the voters, the elections official shall send a copy of an argument in favor of the Measure to the authors of any argument against the Measure and a copy of an argument against the Measure to the authors of any argument in favor of the Measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a city Measure may prepare and submit a rebuttal argument not exceeding 250 words or i may authorize in writing any other person or persons to prepare, submit, or sign a rebuttal argument. A rebuttal argument may not be signed by more than five individuals. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers. The deadline for submitting rebuttal arguments is hereby declared by the City Clerk to be January 9, 2009, 4:00 p.m., which is 10 days after the final date for filing primary arguments. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut. SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for city measures are repealed. SECTION 3. That the provisions of Section 1 shall apply only to the election to be held on Apri121, 2009, and shall then be repealed. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. I 2 Passed, approved and adopted this day of , 2008. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS~TO FORM: g + ; ~~:~ ~, Stephen P. Deitsch City Attorney