HomeMy WebLinkAboutJANUARY 3,1984_3
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CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK
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I NVOCA TI ON
PLEDGE OF
ALLEGIANCE
ROLL CALL
MINUTES
CITY COUNCIL OF THE CIT' OF ARCADIA
and the
ARCADIA REDEVELOPMEN1 AGENCY
REGULAR MEETING
JANUARY 3, 1984
The City Council and the Arcadia Redevelopment Agency met in a regular
session January 3, 1984 at 7:30 p.m. in the Arcadia City Hall Council
Chambers.
Dr. Raymond Campbell, Interim Pastor of the Arcadia Presbyterian Church
Councilman Donald D. Pellegrino
PRESENT: Councilmen Dring, Haltom, Pellegrino, Lojeski
ABSENT: Councilman Hannah
On MOTION by Councilman Dring, seconded by Councilman Haltom and carried
Councilman Hannah was excused.
MINUTE On MOTION by Councilman Pellegrino, seconded by Mayor Lojeski the minutes
APPROVAL of the regular meeting of December 6 were APPROVED. Councilman Haltom
abstained from voting as he was absent on said date.
ORD. & RES. It was MOVED by Councilman Pellegrino, seconded by Councilman Dring and
READ BY TITLE carried that the ordinances and resolutions be read by title only.
1.
2.
ROLL CALL
ADJOURNED
to Jan. 17
3.
4.
Council recessed in order to act as the
ARCADIA REDEVELOPMENT AGENCY
PRESENT: Members Dring, Haltom, Pellegrino, Lojeski
ABSENT: Member Hannah
On MOTION by Member Dring, seconded by Member Haltom, Member Hannah
was excused.
The meeting adjourned to 7 p.m. January 17, 1984.
Council reconvened
AUDIENCE PARTICIPATION
Mrs. Johanna Hofer, 875 Monte Verde Drive, made reference to a press
release concerning an investigation underway by the District Attorney
into the possible rigging of bids, she continued by asking Council if
it would consider the use of the power of eminent domain to acquire a
special parcel in the redevelopment area. Councilman Dring responded
by stating in part that each case must be judged on its own merit...
there may be occasions when it would be appropriate and others where
it would not be appropriate under any circumstances. Council concurred.
Mrs. ,Hofer then referred to redevelopment and felt that as long as it
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1-3-84
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ACCEPTANCE
(Pacific
Striping)
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6.
TEMPORARY
USE EXTENS ION
REQOEST (AS&L)
60 days
granted (.;, A
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had not been voted on by the citizens the councilmen should refrain
from taking any redevelopment action.
In response to Mrs. Hofer's inquiry as to whether or not the City has
received any monies from the sale of Olympic Games' tickets Mayor Lojeski
said it had not; also that it is not known how much money will be need-
ed to furnish adequate security during the games and noted that Council
is relying heavily on the word of the Los Angeles Olympic Commission
that the games will not cost the taxpayer any money.
The Director of Public Works will inspect Monte Verde Drive to ascertain
what is needed as Mrs. Hofer said there are defects.
CONSENT ITEMS
AUTHORIZED staff tJ file claims for State Transit Grants as indicated I
ln a staff report dated December 29, 1983 and to amend such claims, if
necessary, in order to maximize available funding.
AWARDED the contract for the annua 1 street ma i ntenance p'rogram - concrete
gutter construction - Job No. 548 to the low bidder, Gabi Construction
Company, Inc., in the amount of $48,231.72; that any informalities or
irregularities in the bids or bidding process be waived and that the
Mayor and City Clerk be authorized to execute the contract in form ap-
proved by the City Attorney. $60,000 to be appropriated from State
Gas Tax Funds to cover the cost of construction as well as engineering,
inspection and contingencies.
ACCEPTED and AUTHORIZED final payment to Pacific Striping Company in
the completion of Traffic Striping and Pavement Marking Job No. 549.
Funds are in the 1983-84 Operating Budget. Payment to be pursuant to
the terms of the contract.
AWARDED the contract for the resurfacing of Bonita, California, Diamond,
Fano, Genoa and Lucile Streets Job_ No. 550 to the low bidder, Sully
Miller Contracting Co., in the amount of $125,472.00. All informalities
or irregularities in the bids or bidding process were waived and the
Mayor and City Clerk were authorized to execute the contract in form
approved by the City Attorney. This project is totally funded with
Community Development Block Grant and 1983 Jobs Bill funds. $147,000
to be appropriated from these funds to cover costs of engineering, in-
spection and contingencies as well as the contract amount.
AUTHORIZED staff to proceed with the design of a TCE/PCE removal plant
for the Longden Wells and the present engineering contract with ASL
Consulting Engineers be increased from $22,000 to $23,000.
ALL OF THE ABOVE CONSENT ITEMS APPROVED ON MOTION BY COUNCILMAN DRING,
SECONDED BY COUNCILMAN HALTOM AND CARRIED ON ROLL CALL VOTE AS FOLLOWS:
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AYES:
NOES:
ABSENT:
Councilmen Dring, Haltom, Pellegrino, Lojeski
None
Councilman Hannah
Request of the American Savings & Loan Association for an extension to
its use of a temporary building at 30 North Santa Anita Avenue to
April 5, 1985. Staff noted that State Savings & Loan Company recently
acquired American, however, the local name of the company will remain
American. They have a proposed new site at 30 S. First Avenue which has
serious parking deficiencies and based on their survey no other tempor-
ary locations with adequate parking are available. American would need
a minimum of 90 days to notify customers and relocate data lines to a
new location. American has indicated it would provide a Good Faith Sure-
ty Bond in the amount of $10,000 to ensure its, performance pursuant to
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the request.
Extensive consideration ensued (ALL SET FORTH IN THE TRANSCRIPT) and
American was reminded of the numerous extensions granted American and
of Council's earnest desire to have the temporary building removed from
its present site at the earliest possible date.
It was subsequently MOVED by Councilman Haltom, seconded by Councilman
Pellegrino and carried on roll call vote that Council extend the permit
to utilize a temporary building on the 30 N. Santa Anita Avenue site
for 60 days (until March 5, 1984). Prior to that date American is to
demonstrate to the Council's satisfaction: 11 an executed lease for
a site, and 2J evidence that the site has the required parking.
AYES:
NOES:
ABSENT:
Councilmen Dring, Haltom, Pellegrino, Lojeski
None
Councilman Hannah
7a. /
ORDINANCE The City Attorney presented for the first time, explained the content
NO. 1785 and read the title of Ordinance No. 1785, entitled: "AN ORDINANCE OF
INTRODUCED THE CITY OF ARCADIA ESTABLISHING AN OLYMPIC GAMES TEMPORARY PERMIT".
It was MOVED by Councilman Haltom, seconded by Councilman Dring and
carried on roll call vote as follows that Ordinance No. 1785 be
INTRODUCED.
AYES: Councilmen Dring, Haltom, Pellegrino, Lojeski
NOES: None
/ ABSENT: Councilman Hannah
SPEED LIMITS It was MOVED by Councilman Dring, seconded by Councilman Haltom and
carried on roll call vote as follows that the revised survey, incor-
porating the changes, listed in the staff report dated January 3, 1984,
be APPROVED and that the ordinance setting forth the prima facie speed
limits on city streets as shown in the survey be INTRODUCED.
7b.
ORDINANCE
NO. 1786
INTRODUCED
/
AYES:
NOES:
ABSENT:
Councilmen Dring, Haltom, Pellegrino, Lojeski
None
Councilman Hannah
Whereupon the City Attorney presented for the first time, explained
the content and read the title of Ordinance No. 1786 entitled: AN
ORDINANCE OF THE CITY OF ARCADIA AMENDING THE ARCADIA MUNICIPAL CODE
BY REPEALING, M~ENDING AND ADDING SECTIONS TO DIVISIONS 1 AND 2 OF
PART 2, CHAPTER 2, ARTICLE II I REGARDING PRIMA FACIE SPEED LIMITS".
It was MOVED by Councilman Dring, seconded by Councilman Haltom and
carried on roll call vote as follows that Ordinance No. 1786 be
INTRODUCED.
AYES: Councilmen Dring, Haltom, Pellegrino, Lojeski
NOES: None
7c. / ABSENT: Councilman Han~ah
RESOLUTION ~ The City Attorney presented, explained the content and read the title
NO. 5157 of Resolution No. 5157 entitled: "A RESOLUTION OF THE CITY COUNCIL OF
ADOPTED THE CITY OF ARCADIA ADOPTING AMENDED REGULATIONS FOR ENVIRONMENTAL
DOCUMENTS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT OF 1970".
It was MOVED by Councilman Haltom, seconded by Councilman Pellegrino
and carried on roll call vote as follows that Resolution No. 5157 be
ADOPTED.
AYES:
NOES:
ABSENT:
Councilmen Dring, Haltom, Pellegrino, Lojeski
None
Councilman Hannah
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9.
MATTERS FROM ELECTED OFFICIALS
Mayor Lojeski expressed appreciation to the Councilmen and all others
who assisted in the various activities for the 300 plus guests from
our Sister City, Newca'st1e, Australia, especially during the parade
on New Year's Day.
10.
ADJOURNMENT
January 17
7 p.m.
At 8:50 p.m. the meeting adjourned to 7 p.m. January 17, 1984 in the
Conference Room to conduct the business of the Council and Agency and
any Closed Session necessary to discuss personnel, litigation matters
and evaluation of properties.
Mayor
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ATTEST:
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T RAN S C RIP T
(INSOFAR AS DECIPHERABLE)
RELATING TO
PROCEEDINGS BEFORE THE CITY COUNCIL ON THE REQUEST BY THE AMERICAN
SAVINGS & LOAN ASSOCIATION FOR AN EXTENSION OF TEMPORARY BUILDING
USE AT 30 NORTH SANTA ANITA AVENUE.
KINNAHAN
PETERSON
EVANS
HILL
~1ILLER
LOJESKI
DRING
PELLEGRINO
HALTOM
(To identify those speaking)
Ass't City Manager for Economic Redevelopment
Bo)ler and Suttner, law firm representing
American Savings & Loan Association
Coldwell Banker, representing the owner of the
proposed new site (30 S. First Avenue)
Vice President and real estate manager American
Savings & Loan, formerly State S & L
City Attorney
Mayor
Councilman
Counc ilman
Councilman
REGULAR CITY COUNCIL MEETING OF JANUARY 3. 1984
LOJESKI
KINNAHAN
LOJESKI
DRING
KINNAHAN
LOJESKI
DRING
PETERSON
Tell Pg. 5 - Jan. 3, 1984
Amer. Savings and Loan
The next item City Manager 6-a - request by American Savings and Loan for an
extension of temporary building use at ~O North Santa Anita. Mr. Watts -
Mr. Kinnahan will give that report.
Mr. Mayor and Members of the Council the staff report is before you with two
letters that have been written by American Savings and Loan. With us this
evening as you know is Mr. Peterson from the Law firm of Boller and Suttner who
will answer any questions and make the presentation for American Savings and
Loan. Mr. Peterson.
Any questions of staff - excuse me Mr. Peterson. Are there any questions of I
staff at all?
Not staff - oh well yes I do have one - please - historically - the last time
we voted on this did we not set a deadline on this? Not only time limit expir-
ation of I believe six months but didn't we also intend 'or have American Savings
notified that this was the last renewal?
Yessir - we did.
That was my understanding.
Ok - thank you.
May - initially address Councilman Dring's concern. Last time Ameracan Savings
appeared before this body I was here and I would like to explain the understandinq
that I think was discussed that night and that was specially that American Savings
was informed that a six month permit would be granted - that was last June?
That permit was granted and it was specifically discussed here that night that
if American could come back with a good faith showing that it had in fact made
real
very very real efforts - very' very jattempts at securing a new location - a per-
manent location that this body would consider an extension of the temporary per-
mit to facilitate American's moving into a new location. And that is why we
are here tonight precisely. American Savings respectfully requests a 15 mont
permit extension for the use of the property at 30 N. Santa Anita Avenue. Si
the last time that American appeared before this council many things have hap c
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Tell Pg. 6 - Jan. 3, 1984
American Savings
American Savings and State Savings have merged resulting in the nations largest
Savings and Loan institution. In addition the ownership and management of the
new American Savings - and I do emphasize the new American Savings - has changed
I
dramically as compared to the old American Savings. The new American Savings
is progressive and seeks to be an important member of the Arcadia community,
furthermore the new American Savings wants to work with this body and with the
other department and agencies of the City in order to effectuate a long and
lasting relationship between American and the City of Arcadia. However, lasting
relationship which American Savings seeks to create depends upon this council
granting an extension of a 15 month permit to American in order to relocate
its present type to a permanent location. American has made good its faith
efforts in its attempt to secure an - a permanent location. It has signed a
letter of intent to lease the premises at 30 S. First Ave_ The owner of the
property at 30 S. First Ave. executed a responsive letter of terms to American's
you
letter of intent. These letters are before/in the Council's packet. And generally
the negotiations between the parties - that is the owner of the property at
30 S. First Avenue and American - were so successful that it appeared that a
lease would be entered. At the point that American was - at the point that it
appeared that everything was going well American was informed in December that
the site at 30 S. First Avenue was not acceptable to the City as a result of a
parking deficiency. Since that time American has worked together with the
property owner, with the Planning Director of this City, with Mr. Kinnahan, in
an effort to work out the parking situation for that site. The bottom line of
these efforts is that American has been looking to find a new location they were
ready to enter a lease and that was one of the quotes that was stated last time
American appeared - if they could perhaps show up with a signed lease - American
was ready to enter a lease the parking situation proved to be an obstacle.
American wants to be in Arcadia. American is providing benefits to Arcadia in
the sense that it does provide employment opportunities, it is providing the
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LOJESKI
DRING
LOJESKI
PETERSON
Tell Pg. 7 - Jan. 3. 1984
American Savings
security of the nations largest financial institution - Savin~s and Loan institu-
tion in Arcadia. Furthermore American is willing to demonstrate it's good
faith interest in remaining in Arcadia and finding a permanent location within
a reasonable time by posting a $10,000 performance surety with the City_ In
this regard a $10,000 check payable to the City of Arcadia has been delivered to
the city_ Failure to grant the permit extension sought at this juncture would
have the effect of punishing the new American for the acts of its old manage-
ment. It must be remembered this is not the same old American that was here
before. The new management wants to move forward with the problems at hand al
promptly secure a permanent location that will be acceptable to the City. I
order to enable American to do so a 15 month extension must be granted. Thank
you.
Ok - any council comments to Mr. Peterson? Councilman Dring.
Where to start
Well I'll..... go ahead. The situation Mr. Peterson of delineating old from
new Amercian Savings really doesn't hold a whole lot of credibility as far as
I'm concerned - and maybe I'm speaking out of turn with the rest of the Council.
because - you know - we have given a number of extensions. To come to us at the
last minute - obviously with something - of this request - type of request to
go - to attempt - lets say to negotiate a lease without first understanding what
the parking requirements were for the site seems a little bit backwards to me.
I - and I think its was - you know - if you understand' where I'm coming from -
you know - you're beginning to exercise the Council, and I don't - I don't like
that.
Your Honor I - we do have in the audience Kenneth Hill, Vice-President of American
Savings - that can describe to you the events that were involved in the transi-
tion which basically tied the new administrations hands in order to proceed with
finding new locations. The old American Savings management basically did not
want to work forward - well, whether it wanted to work forward or not it was
unable to because it was uncertain of the posture of the new management coming
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LOJESKI
ITERSON
DRING
PETERSON
DRING
PETERSON
DRING
PETERSON
DRING
PETERSON
DRING
Tell Pg. 8 - Jan. 3, 1984
American Savings
in. For that reason, it could not act. Once the new management got in it
promptly acted to find new locations and we have Mr. Hill here to speak to that.
I'm looking at a letter dated October 26th which is in regards to - a letter of
intent to lease the site at 30 S. First Avenue. When - what time did American
Savings or the parties involved come to the city hall and request information
as far as parking regulations? Mr. Woolard can you answer that question? Or
Pete can you answer it? You know - thats two months - it appears to be - two
months of exercising something and someone.
Well I would like to call Mr. Hill to the podium at this time to explain the
understandings he was operating under in terms of negotiating - in terms of
entering the proposed lease.
But, Mr. Peterson please...
Yes.
You made it clear to us that management has changed.
Yes_
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Do - you also recognize, of course, that thats an internal problem for American
and State Savings to work out - it has no effect on thls Council whatsoever.
Only to the extent that we are asking your indulgence.
I understand.
Ok.
And we made it pretty clear last time - win lose or draw - that we felt that
,trailer has got to go. And it's been extended a long time - well beyond where
it should have been and at least for my vote in that regard it was only carried
on because of the mess that occurred at First and Huntington. Ok - that one
problem led to another and because of that I wanted to be sure that American
got more than a fair shake with regard to that trailer. But they're had due
notice now for the years - almost four years that I've been on the Council -
that indeed there's going to be no intention to renew and yet it's drug out
that long. Now while I clearly emphathize and am somewhat familiar with the
problems of merger - nonetheless the impact that you bring before tte' Council
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.
Tell Pg. 9 - Jan. 3, 1984
American Savings
the net effect is that you bring some letters to us dated months ago of an
intent to lease some property wherein clearly the parking requirements are
not sufficient. This is not very professional and its not very learned and I'm
quite confident that American has the expertise and knowhow and so does State
Savings - not to lease land wherein the parking requirements are not sufficient
PETERSON
to meet city code - thats not a new problem to you anywhere you build.
Councilman - Councilpersons the parking situation is resolvable. We are in an -
we are attempting right now to resolve the situation. Mr. Woolard - Mr.
are aware of those arrangements we are at this point prepared to lease less t
the entire structure. So that the use of the structure will come within the
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parking needs of the parking requirements of the city code. This is something
that has only been proferred of late and for this reason I do like to point out
that there are resolutions, there are means available to arrive at a solution
that will likely appease the city - likely appease American and likely appease
the property owner. And in doing that everybody is going to benefit_ American
does not need to use the entire location we have a representative of the property
owner who is willing here to acknowledge that the property owner is willing to
take the steps necessary to show that the property will not be used in the short
run while parking is being sought, because the property owner is interested in
seeking out and'acquiring parking spaces which will meet the needs of code, if
all the property were to be
DRING
But Mr. Peterson do you - virtually bring the council into negotiations and
trying to structure your deal. American and State Savings - whatever your new
name is - I'm - what is the new name?
PETERSON
It is American Savings.
DRING
American Savings - its got to deal with these problems independently. That's not
a function for the Council nor for staff - although staff certainly would be
willing to help - thats - you know not - their requirements are not the respo
bility to resolve these problems for you - they will certainly try to mitiga
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PETERSON
PETERSON
LOJESKI
PETERSON
LOJESKI
PETERSON
LOJESKI
EVANS
Tell Pg. 10 - Jan 3, 1984
American Savings
any circumstances because thats what a city staff is for. I for one am just
dumb-founded that we are now here - you tell us that you'd be in violation
if we cancel because you require 90 days notice and you've known personally
of our intent to not continue the lease or the requirements for that trailer -
for goodness sakes - I don't know how long you've been on this. Thats been true
at least four years that I know of - it's got to stop.
We agree that it has to stop and an end is in sight and we......
Fifteen months from now?
Well - if, if everything works out with this property'on 30 S. First.
And you wnat us to make a 15 month decision on an if basis.
No, no, no - less would be required - if things can work out with 30 S. First.
Fifteen months is the outside requirement - they will be relocated then. This
new management is interested in staying in Arcadia - they want to be part of
this community. They want to work with this body. And 15 months is the outside
requirement.
Anyone else have any comments?
(Faint talking from the audience)
I have here_._..
Sure.
Mr. Robert Evans.
Please....
My name is Bob Evans, I'm with Coldwell Banker. I'm representinq the property
owner and in listening to this - quite frankly the parking was really an oversite,
on the owners part and probably I have to share in some of that responsibility.
Originally when the building was acquired we were to develop it with a less
intensive parking requirement. Bill - I think we are at 6 cars per thousand
for a financial institution versus 4 per thousand for normal retail operation
so we almost have the parking requirements satisfied on a retail - a normal 4
per thousand retail requirement. We talked to American Savings - I guess
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,
Tell Pg. 11 - Jan. 3, 1984
American Savings
originally about October - or whatever the dates are in your letters and we
at that time probably should have come to the city and we eventually did, as we
got into negotiations looking at it was going to have the interest level to
consumate a lease and we were probably negligent in - at the earliest date
finding out the - this 6 car per thousand which really made the site under-parked
for a financial institution. So I......
LOJESKI
You were
negligent to the point of notifying staff on December 19th -
thats two months. Thats 60 days
going to make and the owner - ani
actually worked with the City -
EVANS
Well I think - we weren't sure the deal was
the owners architect - the owners architect
there - architects normally find the Codes because they have to draw the new
- we have the new striping and the new - the new parking layout - and we relied
on him and obviously it was negligence on - I think - on the owners part and the
owners representatives. So we're - I'd like to say on behalf of American, its
not totally their fault - somebody should have done it but we didn't and - I
would like to say though that the owners are - the owner of the property is
diligently trying to satisfy the parking requirement that - thats before us
now. We have - we met with Bill last week - or two weeks before the holidays
that - if we can provide X number of spaces within 495 feet of the site that
would - r' think we're 24 spaces short of satisfying the Code and I don't have
LOJESKI
a firm response from the surrounding property owners, but I have reasonable -
a reasonable assumption to believe that we can deliver some property that would
satisfy what we're trying to accomplish here. We don't have anything firmed out
but I mean we are diligent pursuing that.
I'd like that - that point expounded on because in the report I have it says
the proposed site American first selected to lease - 3D S. First Avenue - has
serious parkinG deficiencies and based upon their survey no other temporary
LOJESKI
sites with adequate parkinq are aVnilnble,
Ok- I'm unaware of that reaction.......
Where will these come from?
EVANS
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Tell Pg. 12 - Jan. 3, 1984
American Savings
EVANS
I do...... - I'm not aware of that, but we - well we just originally started
pursuing the - from the distance of the site - to pursue additonal parking.
And it appears as of now we may be able to do that - they don't have it firm
but it appears - and it would be a shame that we are very close to delivering
the property - I think - delivering the necessary parking spaces that would give
LOJESKI
American a site and - but timing is not always on your side obviously.
I'm sorry I didn't recall your name.
I~:::KI
VANS
LOJESKI
Bob Evans
I'm with Coldwell Banker.
Evans?
Evans - yes - E-V-A-N-S.
Thats correct? Mr. Evans since you represent the owner or owners of the property
it's no new knowledge that of course a financial institution usually looks very
nice, but as far as generating revenues to the City there's not a whole lot of
revenues that are generated. And if this site were acquired there are a number
of sales tax generating businesses in that particular facility. What are going
to happen to those particular businesses?
EVENS
Well the three tenants that were there would be relocated within the Dremises,
DRING
and be retained there as ongoing businesses.
Is there a gentleman from American here?
EVANS
DRING
Yes.
May I speak to him-please?
HILL
I'm Kenneth Hill...
DRING
I'm sorry..
HILL
I'm Kenneth Hi 11.
DRING
Hi 11?
HILL
Yes
I'm a vice-president and real estate manager for the southern region
for American Savings - formerly of State Savings and Loan.
RING Mr. Hill from what I understand - I'm sorry gentlemen I have the benefit of
having Mr. Kinnahan sit next to me - the proposed additional parking that they're
looking at is a couple of lots - two, three,. four, five maybe - four or five
-8-
Tell Pg. 13 - Jan. 3, 1984
American Savings
away from the particular site in question.
HILL
Yes.
DRING
That would be highly unusual - and at least to my way' of thinking - virtually
useless except for employee parking - to put it - remote -
Well number one - getting to this parking issue I'd like to put in a little_bit
HILL
of perspective.
DRING
HILL
Please.
Our original branch site size was to be 6,000 feet - this building is 13,500
sq. ft. Under our original letter of intent we only needed - assuming 5 per I
thousand - and I was incorrect in that knowledge - 30 spaces which my letter
intent indicated that we wanted - we found out 6 so we needed 36. The site plan
that we had called for 46 parking spaces on the site. Apparently there isn't
enough public parking on - Home for Home Savings either - they have parking
immediately behind our space which is across the street from theirs. If we
acquire these lots - the owner acquires the lots to the rear - it would be a
parking structure from basically the rear of our building straight on through
so there would be additional parking. I don't think it would be a - it would
be a contiguous use of parking.
DRING
So you plan to renovate the current building?
HILL
The owner is going to renovate the building - put on a new facade - it'll have
a Mansard roof - I believe you have a,description of how the building is going
to look look. During the negotiations we changed our minds - they were going to
have this mixed use of some retail and we decided that we could utilize the
rest of the building for branch maintenance and branch maintenance administration.
So the other 7,000' remaining feet or 6,000 remaining feet and the building would
have been utilized that way. Thats not a labor intensive section for us, there
DRING
is only like four or five employees for that remaining 6,000 feet. I
What - could you define branch maintenance a little better please?
We have a staff - I believe - of 7 maintenance people from the old American
who go around and maintain the branches within Southern California. They're on
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HILL
Tell Pg. 14 - Jan. 3, 1984
American Savings
a regular route they hit each branch on a regular basis. This would be a place
where they'd have their space parts and things like that, they would bring the
trucks in they'd load them up and then take off on their weekly or their daily
route_ The only people that would be in the building and have a need to park
there would be the administrative people and there are only currently two ad-
I
ministrative and we have plans to hire three more. The drivers take their trucks
home in the evening so they're not parked onsite. So there wouldn't be a large
parking demand for us - the branch - I really don't - I'm not a branch person -
from State Savings our main emphasis before and the reason we didn't get involved
in this and see the need early on is the merger didn't take place until August
4th. Our major emphasis at State Savings was that of money desks throughout
the nation and up and down the State and this is just taking place in ordinary
office buildings. We weren't heavy into branching - we got into branching with
old American Savings and they had a lot of these things that had been hanging
fire and at this particular instance I'm sorry to say for several years - for
whatever reason. And I was not fully aware - made aware of this until October
and at that time they had this site pre-selected - I had requested the infor-
mation on the parking because I agree with you that is our responsibility - its
not your problem if I don't select a site that has adequate parking but this was
selected by my predecessor. I do feel that the problem is resolable - I do feel
that we can occupy that building and get adequate parking within the City's
requirement of 495 feet. Its just going to take a little bit of time.
DRING
HILL
How much time?
Mr. Evans?
EVANS
I certainly don't think 15 months but I would say I hope to have something affir-
mative within 30 days - I mean we - the people are going to say yay or nay to
cooperating with that but - you know - real estate doesn't really happen -
there's people traveling - we're out and - I mean if we can get a 90 day -
90 days I would be a little more comfortable.
-10-
Tell Pg. 15 - Jan, 3, 1984
American Savings
DRING
Well - Ok - hypothetically the deal is put together within this 30 days - then
how long before American can move in?
EVANS
Well the lease is in place and its just a matter of - we're ~oing to probably
need at least 90 days to reconstruct the building. We're doing some major
renovation - new windows, doors and a facade and soforth so construction wise
we see probably 3 to 4 months. But - and we're de1igent1y trying to solve the
additional parking - and I think with the receptiveness of what I've had in
the surroundin~ area I think it can be done. But I said 30 but - you know -J
I can get a little bit more time - I mean we're very close I hate to see it
don't know what the ramifications of what an extra couple of months would me
here at this point when we seem to be ready to solve this problem in its entirety,
cause we now have a site and we have - there was negligence on getting a little
handle on the parking requirement and we're guilty for that but we seem to now
all be moving toward a solution in a timely fashion. Hopefully we'll be able
to do this in a short amount of time. Thats kind of where...,..
HILL
I'd like to expand on the 15 month issue - the reason that I requested that
period of time was - in the event that this problem was not resolvable - Mr.
Kinnahan was kind enough to indicate to us several other sites that might be
possible alternatives - the unfortunate thing about those alternate sites is -
is that we have to basically construct from the ground up and that can't happen
over night that would take a minimum of 15 months and some of these projects
that were selected - after talking with Mr. Kinnahan and Mr. Woolard I talked
with our marketing people and there are some marketing problems with a couple
of those sites. They're too easterly for our market data - our market area -
we want to be in that particular location because thats where our customers are
and thats where we're making money and servicing our accounts here. But thats
be in there before June.
the only reason I requested the 15 months was in the event that this transac
were to fall through - if this transaction is to proceed I expect that we cou
-11-
'.
Te 1 1 Pg. 16 - Jan _ 3, 1984
American Savings
DRING
When does the - Pete I guess you're the one - when does the extension - I got
it - of January 5th? Expires - January 5th
LOJESKI
I have
another question to ask of
Bill I guess.
When the parking deficiency was understood and noticed - was that on the premise
that there - the existing tenants would be away from the site? Moved away from
the site? And if thats true the statement that I believe Mr. Evans made as a
representative of the owner where there would be some of these tenants remaining
IVANS
couldn't that even exascerbate the parking problem greater than it really is?
If that were the case - yes - that would be true but I believe as Mr. Hill men-
tioned that was apparently originally going to be the plan where the bank was
only going to take the front part and the remaining tenants were going to take
the rest and apparently the bank - when we met with Mr. Hill - was then looking
at the entire thing - the front for the branch and the back for this maintenance
use - so that apparently - as envisioned by American Savings now - all of the
existing uses would have to find someother location.
HILL. Thats true, however, if they were to remain the parking - the amount of parking
would be lessened - because its only the branch that has to have 6,000 or 6 per
thousand - those other uses are 4 or 5 per thousand.
DRING
EVANS
How many spaces are on the property now?
There's about 32 - 33 spaces on the property now. They're supplied a plot plan
that indicated 40 someodd but its not - I don't have a large enough one to tell
whether or not it complies with all the code requirements.
HILL
Oh its 40 it was laid out for 46 and it was determined in our meetings that we
would probably have to give up two of those for an access to the alleyway so we
were working on the assumption that we had 44 usable sites - usable spaces onsite
and that would mean that we needed an additional 20 - I believe - to satisfy the
parking requirement. Now Mr. Evans' efforts in one of those negotiations would
supply us with 17 which is right across the street. The only problem with that,
one is is that their having a little negotiating problem - the man wants a high
-12-
Tel 1 Pg. 17 - Jan. 3, 1984
American Savings
price, but there's also additional site or additional space where we could
we've even talked to a lady about leasing the, parking that she has, which is
within that 495 foot area.
LOJESKI
Any further comments? Councilman Pellegrino.
PELLEGRINO Mr. Mayor I guess I'm the senior member here on council - and I'd - we're sort
of being looked upon a lot of times on this project as a-what is a temporary
become a permanent temporary fixture in Arcadia - and
fixture? And its
not to insuH you gentlemen - but 6 years ago we were at the same thing and I
think American Savings attitude through the years have been they want somethil
for nothing, and they're trying to get prime location in the City of Arcadia
where its going to cost you money to locate and I don't remember any other
savings and loan coming in front of council saying "find me a location and we'll
stay here" - you know - I mean if your heart and your soul is intended there
to do business I'm sure you have the proper facility within your corporation
to find the property that's available and its been 6 - you know we've been 6
years hearing this story "temporary permanent fixtures" we've been laughed at is -
if you really want to hear about it.
HILL
I appreciate that and if I could I would apo1igize for the previous administration
but you have to understand Mark Taper is no longer a part of our organization
PELLEGRINO Yes.
HILL The Chairman of our board is Charles W. Knapp, a very progressive, non conser-
vative and dynamic individual. And it is not his intent to hold up any city
and to try and squeeze every nickel and dime out of any owner. If we - its been
my experience with' State Savings that if we had a location we'd pay top dollar
space
for it. I've leased/in New York - I've paid $55 a square foot for a 3,000 square
foot office for three people. We're not tight with a buck, the new American
Savings is not that tight with a buck we go where the money is - we go where we
can provide a service and do a service to the communities that we work in.
PELLEGINO
I don't mean to insinuate that you personally or your corporation is but you
have to face the facts that your putting the City in a terrible position coming
-13-
"
Tell Pg. 18 - Jan 3, 1984
American Savings
to us and tell ing us "6 more months - 6 more months" and we're 6 years down the
road with the temporary facility looking for a permanent facility. And there
are a number of facilities available if they were out there looking for it.
HILL
Well we are looking for those facilities - since this became a problem I have
worked through Mat10w-Kennedy our brokers representing our side. We've worked
with Robert Evans and Coldwell Banker to select or to find additional sites within
the City of Arcadia if this thing were an unreso1vab1e problem and thats why
the request for the 15 months if we can't resolve this parking problem then
I
we want to go someplace else. An average transaction for me under State Savings
and I've leased - I'negotiated over 111 leases since January of last year - a
typical transaction took us about 8 months to conclude, So from - thats from
start to finish - there were transactions that took us less than 30 days to
conclude but we don't drag our feet, we have not dragged our feet - the new
American Savings has not dragged its feet - when it gets into a project it does it
- sees it through to a its conclusion as quickly as possible.
jELLEGRINO Thank you Mr. Hill.
LOJESKI Any other comments by the council.
HILL Y
es.
LOJESKI Gentlemen whats your pleasure?
PETERSON We....
LOJESKI Oh - excuse me.
PETERSON Your Honor we request the following, I've conferred with my client - if nothing
else we would like a 90 day stay of any revocation or failure to extend this
permit so that we can make a good faith showing that we are going to get into
a property suitable to the city and suitable to American - suitable to all
concerned, so that a permanent location can be found in Arcadia.
ING The problem as I see it is that as it stands legally you've got nothing to offer
us - what you've got is a proposal that your working on a proposal. You intend
to lease but you haven't negotiated a deal and it could collapse or it could
close tomorrow - you know - you put us in a position........
-14-
Tel 1 Pg. 19 - Ja n 3, 1 984
American Savings
PETERSON
DRING
We are willing to forfeit $10,000 - we're willing to put that up.
We're not after your money - you know - thats not the point. What we're after,
PETERSON
EVANS
is to remove that trailer from that lot - thats long'overdue_
But that......_.. we understand.
The lease has been completed, the only constraint is now the parking - I mean
there is a deal in place - with all of the business points have been negotiated
and agreed upon by the lessor and the lessee - so our only issue now is to -
we're scrambling around trying to satisfy the parking code and thats really
60 - 90 days we're asking for - its not to reopen negotiations for a lease i
not to - you know - start allover - everything is done.
PELLEGRINO Mr. Evans historically that location where you're at has a parking problem just
like from Santa Anita to Fifth all along Huntington Drive. And 24 parking places
short just - your're just making it - the noose around them - the retail bus-
EVANS
inesses tighter and tighter.
Well thats the code - realistically as Mr. Hill ha~ pointed out they can operate
efficiently and not create a problem for themselves and the surrounding businesse~
as it stands for the 44 or 46 we have........
DRING
I've heard two things - one is the retailers will take a portion of the building
and that you will use that extra portion for the branch maintenance - which is
which?
EVANS
Well right now is the - our proposal is - their taking the entire building and
the rear portion of 68 some odd hundred feet will be for their servicing and
maintenance operation. The front portion of apout 62 hundred that will be
for the branch.
PELLEGRINO Thats a big building.
LOJESKI Can I ask my question Mr. Evans? What are you going to do with the current
tenants?
EVANS
We'll relocate them. There on - they've been on month to month for a long ti
and we have one location already and its - and they're going to find a new pl
-15-
DRING
EVANS
DRING
LOJESKI
HALTOM
I
Te 1 1 Pg. 20 - Jan. 3, 1984
American Savings
If I may - you know - I share your concern - on the other hand we can't dictate
the market place from here. If the tenants want to move and the owner wants to
sell thats his prerogative.
I realize that.
We hate to lose the sales tax but its not our choice.
Councilman Haltom.
Gentlemen - Council, I think we're all sick of this whole mess - I am - and
I haven't been here as long as Don has. I can see no harm in givin~ them 60
days to produce a lease - signed lease - and the ability to produce the proper
amount of parking spaces - whatever that be. We'll all be here in 60 days -
hopefully - so at least we'll see this to its conclusion one way or the other.
We've en tended and extended and extended till we're all sick of it but there is
some truth in the fact that the new mana~ement should not pay for old manage-
ments sins. I mean - maybe they are sincere and I'm willing to give them that
benefit of the doubt, however, not beyond 60 days. If they can produce a lease
and satisfy the parking requirements in 60 days - then I think they'll have a
good argument for extending the lease - whatever time we would deem proper.
But 60 days I think is a reasonable time if they are sincere and I don't I
if they can't close in 60 days I don't think they'll ever close it - so I would
like to make a MOTION that we extend it for 60 days - period
PELLEGRINO Second the motion.
DRING
Consider this as another line of thought. Our objective is to remove that
trailer - thats really what this whole story is all about. Whether and how
they renovate the building is their problem - with regards to - for example
if you'd acquire a piece of property that had some facilities on it - homes and
other buildings - whatever - and it was supposed to be your parking lot - I for
example wouldn't have a problem providing some kind of temporary - whatever we
call it in legalese - to allow you to go into the new facility while you go
ahead demolish the structures that are on your parking lot - if that were to
occur. Our objective is to move that trailer. I'd like to see some kind of
-16-
.'
EVANS
DRING
HALTOM
DRING
PETERSON
LOJESKI
DRING
HILL
DRING
HALTOM
Tell Pg.21 - Jan. 3, 1984
American Savings
time limit where that trailer's gone - one way or another.
If I may......
Their legal requirement - this is a council discussion so hold it a second -
their legal requirement is 90 days - how long it takes them to lay their phone
lines is again their problem - Ok - they can do whatever they have to do when
they do it. I 'would suggest that we give them time to provide notice to their
customers and require them to remove that trailer - they can negotiate or not
negotiate ~ they can acquire or not acquire - they can demolish - they can rei
ovate - thats their problems - Ok - we just give them the 90 days or 120 - gi
them an extra 30 and that trailer's gone - period. They've got,to notify the
customers.
Jeff - notifying the customers is their problem.
Now thats ~ I assume that your statement here is in fact a legal requirement.
There is a legal requirement in that we do have to provide notice to the State
Savings and Loan Commissioner - and to - in order to move any facility. Further-
more there are logistic problems in that in order to move computers - computer
lines - we are talking about a 90 day requirement - it takes 90 days to get the
lines from the phone company - in order to move. I mean - we're talking - we're
down down - we're willing to say we're going to move as fast as we can provided
the terms that are dictated to us by the phone company - provided the terms dic-
tated to us by the Savings and Loan Commissioner. We can have the trailer gone
in 90 days - I was just informed that by Mr_ Hill. He grants us this indulgence
and we will - it will be gone.
Mr. Peterson...
In 90 days from today?
Yes.
Then all we're talking about is a 90 day extension?
No - they're talking about more time than 90 days - now - they aren't going t
negot i a te a 1 ease - ,move the computers - 1 ay the new 1 i nes - move the trai 1 er
-17-
"
DRING
HALTOM
DRING
HALTOM
IRING
LOJESKI
HALTOM
LOJESKI
PETERSON
HILL
HALTOM
PETERSON
HALTOM
DRING
HILL
DRING
HILL
Tell Pg. 22 - Jan 3, 1984
American Savings
If the trailer.....
Move in - renovate the building in 90 days.
If the trailer's gone in 90 days that's the problem we're addressing. Their
computer lines - the rest of it's their problem and they recognize that.
They'll come back for a further extension. If they're half moved in 90 days
I'm - reasonable to assure that somebody will grant them an extension. Now
their notification that they have to make to their customers is their problem -
its got nothing to do with us. If they did not forsee us - say we turned it
down tonight - then they would be in violation not us.
Oh - I understand that.
Violation of what? I never got a true answer. Is it........
They have to notify their customers 90 prior......
Legally you have to do that?
Its 30 days - the legal requirement according to the State Commissioner to move.
Thi rtv d.aY.S_
you have to post it on the building - give your customers
30 days and yo~ have to
notify the Commission.
Ok - but whatever - that is your problem and not ours..._......
But we're not making that your problem.
Its got nothing to do with us they're divorced.
Ok - let me clarify something if I may? You said you could move the trailer in
90 days - would you explain that to us?
Pardon me - I didn't hear the question.
Surely - I - I believe I just heard you say you could move the trailer in 90
days.
60..... .
I can be - if I have another location I'd like to qualify it - if I have another
location to move temporarily - a store front - we had been look for a store front
we thought we found one but it had been leased to another S & L. If I could
temporarily move into the location that we're remodeling and only use a thousand
-18-
"
DRING
HILL
DRING
HILL
DRING
PETERSON
HILL
DRING
HILL
DRING
HILL
PETERSON
DRING
PETERSON
HILL
Tell P9.23 - Jan. 3, 1984
American Savings
feet of it or less - I mean I think we only have 900 feet in the trailers right
now. If I could just put a store front branch in that particular location of
about a thousand feet - I can move within a very short period of time. But it
would take me this 90 days to move my data lines - I mean..........
I understand that......
You know - thats my problem
So am I correct in saying that your committing to have the trailer gone in 90
days?
I - I'd like to qualify that - I could move it within 90 days of having
'P1.1
to put a store front branch in....
Yes - alright - was I correct Mr. Peterson in hearing you say you have a signed
lease already - or Mr. Hill I believe? Or - I'm sorry..
we don't have a parking......
We have a signed lease but we don't have the parking - we're acquiring the
additional parking right now - or attempting to acquire it_
Ok - but can you - can you tell us you use a thousand feet of the new place -
that won't require as many spots until you acquire the additonal parking you
won't use more than a thousand and the rest of it will be renovated in the mean-
time.
We can do that...
I mean - economically - I mean it......
Thats feasible - it'll cost us money because we're tying up this building but
I mean we can do that - its feasible.
Yes it will be a logistical problem - have to be solved somehow. We're genera-
ting a lot of brick and mortar work and to have it at least accessible for people
to walk in and by and conduct business I'll just have to work with that.
But you have a lease already?
yes...... '
yes.... .
-19-
"
, PETERSON
HILL
DRING
HILL
IRING
HILL
DRING
HILL
PETERSON
HALTOM
LOJESKI
HltLTOM
DRING
HALTOM
DRING
HALTOM
Tell Pg. 24 - Jan. 3, 1984
American S~vings
Yes, its in place
we're now trying to satisfy the parking____
I have a copy of the lease here - I don't have an executed copy but I have a
copy of the actual lease,
Bill - help - what I'm suggesting as an alternative they say they can move in
90 days - thats the data-luxe - they need 30 days to inform the customers -
they have an existing lease,...
I need 30 days to inform the customers.......
30 days - I'm sorry - I thought I said 30 - they have an existing lease on the
use
property that they've signed - they say they can/a thousand square feet while
they renovate the rest - if they use a thousand they don't need all the parking -
Ok - so they can renovate the rest - secure the additional land - renovate that -
and pave it or whatever is necessary - secure it - and bring about the whole deal-
so we can get the trailer gone in 90 days - is what I'm hearing from you all_
If the parking is resolved.
But if you use only a thousand feet the parking's resolved temporarily until you
secure the rest of it.
Right. .
What if we can't do that?
Excuse me.....
Councilman Haltom.
Jeff - doesn't it make more sense - you know - the whole exercise is-9~t rid of
the trailer....
Yes.
Ok - its not necessarily to drive Home Savings out to drive them in thats neutral
Sure.. _
Ok - when you get into a crash situation like this - whether they're in it in-
tentionally or unintentionally - but when you get into a crash situation like
this - every worse possible situation happens - so - I say give them - just extend
it for 60 days - and give them 60 days to resolve their parking problem which
-20-
Te 1 1 Pg. 25 - Jan. 3, 1984
American Savings
.'
their building is their only problem - if within 60 days they have resolved
their parking problem then they could, come back to us and say look - I -
three
the number/to me doesn't mean that much -whether it takes them six months or a
year to renovate the buildin9 and to move in. What matters to me is that they
are going to - that their - you know - dedicated - and that they signed a lease
and they're going to move it. When you start crashing it down to 30 - 60 - 90
days and everything else - you know - nothing goes right - the telephone company
can't get in there on time - they can't get the computers moved - they can't I
get the trailer moved - the next thing you know 90 days down the line we're
looking at another extension - so lets be realistic about it. We've had it
there this long - lets give them 60 days - maybe the new management does have
the - a good faith intending to move - you know - give them 60 days to show
good faith - then if they don't - we'll axe them.
LOJESKI Councilman Pellegrino.
PELLEGRINO Call for the question_
DRING Whats the question.
LOJESKI There was a motion....
PELLEGRINO 60 day....
LOJESKI ....made from Councilman Haltom, Councilman Pellegrino seconded it.
PELLEGRINO .....motion by Mr. Haltom.
CITY CLERK Mr. Haltom moved for 60 days_
LOJESKI 60 days for what? What was that now - a signed lease and....
HALTOM 60 - and parking problem resolved.
LOJESKI Parking resolved_
, PETERSON May I make one final point? Could this be 60 days for a signed lease in any
location - you're attaching the parking problem there - I mean if they do come
back with a signed lease for another location that does meet all of the other
requirements.
LOJESKI
Certainly.
-21-
.'
DRING
HALTOM
PETERSON
LOJESKI
DRING
LOJESKI
Tell Pq. 26 - Jan. 3, 1984
American Savings
Yes we don't - we don't'care where it is.
Right.
Ok.
I don't care where it is.
Yes - our objective is to get that trailer the heck out of there - I mean thats-
its been there 6 years and it should've been no more than 6 months.
I think its closer to 7 years...
ELLEGRINO Yes - it is.
OJESKI
ILLER
PETE RSON
MILLER
HALTOM
Mike have you got any problem with that from a legal standpoint?
No, as long as the people before the Council understand fully what the motion
entails - and I believe you do now. I have no problem. Do you have any question~
reqardinq the motion?
Could we have it clarified one final time.
Well as I understand it the motion is that in 60 days - its an extension for 60
days to give you the opportunity to come back with a signed lease with reference
to a site and if - part of that is parking problems - those problems are resolved
if there are not parking problems on another site then that issue is moot. So
you're coming back with a lease that can go - it allows the permitted use in the
City of Arcadia. Is that correct gentlemen?
At that time you can negotiate with the Council - whoever it may be - for your'
time to move.
PELLEGRINO Roll call,
LOJESKI You'll still be here Dick.
HALTOM Maybe not.
MILLER And of course, implicit in all that - or explicit - if you don't meet those
ILL
requirements then there's no more extensions.
Its understood.
He understands that.
And for my part I would suggest that if you can't - if you don't feel comfortable
within 30 days you ought to give notice in 30 days.
-22-
"
~
HILL
DRING
HILL
DRING
lOJESKI
C!TY ClK
PETERSON
Tell Pg. 27 - Jan. 3. 1984
American Savings
Oh I will.
Ok.
The pressure's on me too.
We u__
/'
Roll call please. Call for the question - I think we've labored this point
long enough..........we're in labor.
Alright -
Thank you.
Dring-yes, Haltom-yes, Pellegrino-yes maam, and lojeski-yes.
I
-23-