HomeMy WebLinkAboutDECEMBER 1,1998
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0110- S-O
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CITY COUNCIL PROCEEDINGS ARE AUDIO AND VIDEO TAPE RECORDED AND ON FILE IN THE
OFFICE OF
THE CITY CLERK
ROLL CALL:
1.
2.
2a
{JIIO -"'0
2b,
t?', ''J_ (10
MINUTES
CITY COUNCIL OF THE CITY OF ARCADIA
and the
ARCADIA REDEVELOPMENT AGENCY
REGULAR MEETING
December 1, 1998
The Arcadia City Council met in a Regular Meeting on Tuesday December 1. 1998. at
6:00 p.m. in the Conference Room of the Arcadia City Hall Council Chambers.
PRE:SENT: Councilmembers Chandler, Harbicht. Marshall, Roncelli and Kovacic
ABSENT: None
AUDIENCE PARTICIPATION
None. .
CLOSED SESSIONS
PUl'$uant to Govemment Code Section 54956,9(b) to confer with legal counsel regarding
facts and circumstances that involve a significant exposure to litigation against the City,
based on the advice of legal counsel.
PUl'$uant to Government Code Section 54957.6 to confer with City labor negotiators
Carol Przybycien, Dan Cassidy and William Kelly regarding Teamsters Local 911,
AFSCME Local 2264, AFFA. management and non-represented employees.
At 6:03 p.m, the City Council RECESSED to the Closed Sessions. The Regular
Meeting RECONVENED in the Council Chambers at 7:00 p.m.
JOINT MEETING OF THE CITY COUNCIL AND
THE ARCADIA REDEVELOPMENT AGENCY
INllCX:AllON Reverend Mary Mitchell, The Santa Anita Church
PLEDGE OF Lindsay Wallace
ALLEGIANCE
ROLL CALL:
4.
PRESENTATION
MAYOR'S
SR. SVC,
PRE:SENT: Council/Agency Members Chandler, Harbicht, Marshall, Roncelli and
Kovacic
ABSENT: None
The City Attomey announced the subject of Closed Session No, 2a, held earlier this
evening.
Mayor Kovacic presented the Mayor's Senior Service Award For December to Pat
Wallace in recognition of her efficiency and dedication to the City, the School District.
and Arcadia Methodist Hospital. Mayor Kovacic noted many other organizations for
1
12/1/98
AWARD
(Wallace)
PRESENTATION
MAYORS BUS,
RECOGNITION
AWARD
(Westfield
ShoPpin9 Town)
5.
6.
HARBICHT
(Item 12b)
MARSHALL
(Item 12d)
(Item 12g)
RONCELLI
(Item 121)
ORD. & RES,
READ BY
TITLE ONLY
7,
40:0295
which Mrs, Wallace has volunteered her time and talent over the years,
Mayor Kovacic presented the December Mayor's Business Recognition Award to Jonae
Armstrong. General Manager, representing Westfield Shopping Town at Santa Anita, the
new owner of Santa Anita Fashion Park Mall, The Mayor noted Westfield is an
experienced developer well known for quality shopping centers and active involvement
in communities in which they are located. For example. "Westfield Works Wonders", a
recent special event held at the Mall, with ticket sales benefiting fifty (50) area non-profit
groups. On behalf of the Council, the Mayor commented the City looks forward to
working with Westfield management for many years.
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SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS
City Manager Kelly advised that staff recommends Agenda Item 13b, be continued to the
December 15, 1998 City Council meeting. This item deals with the transfer and
assignment of the City cable franchise from TCI Cablevision to AT&T.
QUESTIONS FROM CITY COUNCIUREDEVELOPMENT AGENCY REGARDING
AGENDA ITEMS
In response to Councilmember Harbicht, staff advised that of the $140,000 appropriated
in the Capital Improvement Program, $25,000 of these funds would be sufficient for
inspection services related to engineering and construction consultation services for a
new well ang the abandonment of the existing well at the Rancho No, 6 site,
Staff explained the federal government and the State of California requires that cities
complete a feasibility study of the treatment process at the City's water production and
storage plants, This, in order to develop a safe and cost-effective alternative to the
existing chlorine gas treatment method of treating water.
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'In response to Councilmember Marshall, staff reported that the request for an
appropriation of $300,000 for installation of water metering services is for all new
residential and commercial developments and upgrades to existing services, The City
will be reimbursed by charges to the customer for all work performed.
'.'
Councilmember Roncelli requested that Item 12f, the staff recommendation to award a
contract to Pentamation Government Systems for the acquisition of an information
management system, be removed from the Consent Calendar for discussion,
It was MOVED by Mayor Pro tern Chandler. seconded by Council member Harbicht and
CARRIED that ordinances and resolutions be read by title only and that the reading in
full be WAIVED.
PUBLIC HEARING
7a. 0 It.> '1-0 -,;) f
TEXT AMD, - The Arcadia Redevelopment Agency's power of eminent domain (condemnation) expired
EXTEND PWR. June 30, 1998, California Redevelopment Law allows the power of eminent domain to
EMINENT be extended for up to twelve (12) years, At its November 3, 1998 meeting the Agency
DOMAIN - determined to proceed with a text amendment to reauthorize eminent domain for the
(Jan, 1. 1999 to period of January 1.1999 to December 31, 2010, in the Central Redevelopment Project
Dec, 31, 2010) area. At that same meeting the Agency board directed that the power of eminent I
& PROCEDURES domain not apply to the properties in the residential areas abutting and north of Colorado
RE PAC Boulevard and north of Alta Street. All the properties in the central part of the project
FORMATION IN area and the commercially zoned properties on Santa Anita would then be subject to the
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PROJ, ARED
(APPROVED)
MOTION
(City Council)
MOTION
(Redevelopment
Agency)
6.
40:0296
power of eminent domain, The December 1. 1996 staff report setsforth the boundaries
of the subject project area.
Staff noted that even with the exclusion of the described residential areas, a significant
number of residential occupants could be displaced by the power of eminent domain,
Califomia Redevelopment Law requires that a Project Area Committee (PAC) comprised
of individuals elected by representatives from the Project Area must be established by
the City Council to consider the text amendment and advise the Council on matters
affecting possible displacement.
In compliance with law, a noticed public meeting to explain the proposed text
amendment to the community. and to then adopt procedures for the fonnation and
election of a nine (9) member Project Area Committee (PAC), was held this date.
At the conclusion of the staff report Mayor Kovacic OPENED the public hearing.
.
No one came forward to address the City Council/Redevelopment Agency. It was
MOVED by Council/Agency Member Harbicht. seconded by Council/Agency Member
Marshall and CARRIED that the' public hearing be CLOSED,
In the discussion Council/Agency Member Roncelli commented that after investigating
the eminent domain issue. he believes this is a tool, if necessary, that carries with it the
requirement of four (4) votes to exercise such authority. He is in favor of the text
amendment process to extend the Agency's eminent domain authority.
Council/Agency Member Harbicht agreed the required four (4) votes is an important
safeguard, He is in favor of reinstating the right of eminent domain,
Council/Agency Member Marshall commented that the Project Area Committee (PAC) is
a good safeguard also.
It was MOVED by Mayor Pro tem Chandler, seconded by Council member Roncelli and
CARRIED on roll call vote as follows to RECEIVE the report from staff on the procedures
to adopt a proposed text amendment to the Central Redevelopment Plan, extending the
power of eminent domain for twelve (12) years, January 1, 1999 to December 31, 2010,
and; ADOPT the 'Procedure for Fonnation and Election of the Project Area Committee.
Arcadia Central (Downtown) Redevelopment Project Area."
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
It was MOVED by Agency Member Chandler, seconded by Agency Member Harbicht
and CARRIED on roll call vote as follows to REQUEST that residential owner occupants.
tenants. business owner occupants, tenants, and representatives of community
organizations located in. or serving the Project Area, volunteer to serve on the Project
Area Committee (PAC), as setforth in the December 1, 1998 staff report,
AYES:
NOES:
ABSENT:
Agency Members Chandler. Harbicht, Marshall, Roncelli and Kovacic
None
None
AUDIENCE PARTICIPATION
Lonell Spencer, 1008 South Mayflower. referenced an article in the Los Angeles Times
on November 19. 1996. reporting that Tele Communications, lnc, (rCI) and Century
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9.
MARSHALL
(Com'l Fal;:ade
Rehab. Prog,)
(Farmer's
Market)
40:0297
Communications Corp, have finalized an agreement to pool subscribers in the Southem
Califomia area. This partnership will make Century the dominate supplier of cable
service. TCI will hold 25% of the partnership, Mr. Spencer commented that the Council
might want to find out how AT&T fits into this arrangement with Century Communications
in control of Arcadia cable service, Mr. Spencer further pointed out various problems
with the TCI service.
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Tenv Smith, 310 West Lemon Avenue, stated in part, that he is involved in a lawsuit
against the City over a sewer that backed up into his property in 1997, while he was
living in Atlanta, Georgia. Mr. Smith expressed his opinion about the procedures the city
utilizes in lawsuits, in particular, a Century City attomey employed by the City to handle
Mr. Smith's lawsuit. The City Attomey advised this matter is in litigation and he will
provide the City Council with a complete and full report on the issues addressed by Mr,
Smith.
Barbara Budd, owner, Barbara's Beauty Boutique, 127 South First Avenue expressed in
detail the adverse effect the Saturday Farmer's Market is having on her business, Ms.
Budd suggested the Markel be discontinued or moved further down on First Avenue, or
to a park or parking lot. In addition to her business, Ms, Budd listed five neighboring
business' on First Avenue who request that Council allow First Avenue to retum to retail
on Saturday momings, Ms, Budd reported that before the Farmer's Market began her
business averaged 150 customers a day on Saturday, her Saturday business is now
down to 80 customers. She has been at ihis location for 27 years and has experienced
this drop in business because of the parking and inconvenience to her customers,
Saturday is the most important day for retailers in the area. Councilmember Harbicht
recommended that staff conduct an informal survey of business owners on First Avenue
to obtain an idea of, is the Market helping or hurting business, and what the desires of
the business people in the area might be, It was also suggested that Ms. Budd take her I
concems to the Arcadia Business Association (ABA). By consensus the Council directed
staff to conduct a survey that addresses Ms. Budd's concems, and place the results of
the survey on the February 2, 1999, Council Agenda for consideration,
Buzz Spellman, 1236 Oakglen Avenue, stated in part a recent decision by the
Modification Committee related to MC 98-052 approved a setback for Dr, Yip at 1250
Oakhaven Road. Mr. Spellman took issue with the approval of a 7.5 foot setback on the
northside of Dr. Yip's property and a setback of 5 feet on the southside, when City Codes
require a ten (10) foot setback from property lines. The Highland Oaks, Architectural
Review Board, approved this setback a year ago provided 200 feet of existing walls of
the house remain. The property owners representative reported at the Modification
Meeting hearing, that a City Building Inspector gave direction to the builder to tear down
all existing walls because he said, undemeath the walis the soil is soft and unstable..
The ARB was not advised of this change, Mr. Speliman noted this decision changed a
remodel into a rebuild. The City Manager advised a staff report to the City Council is in
preparation which will detail this project,
MA TIERS FROM ELECTED OFFICIALS
Councilmember Marshali announced to-date thirteen (13) property owners in the Central
Business Area have taken advantage of the Commercial Fal;:ade Rehabilitation
Program, receiving a total of $168,000 in financial assistance for physical improvements
to their place of business, Another eight (8) applications are in process. Others may
participate in this program by telephoning the Development Services Department at City,
Hall.
Mrs, Marshall announced that the Farmer's Market is held every Saturday year-round
form 8:00 a,m, to 1 :00 p,m, on First Avenue, south of Huntington Drive.
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(Quote)
(Speakers)
40:0298
Councilmember Marshall's quote of the day: "Whatever one possesses becomes of
double value when we have the opportunity of sharing it with others", by Bouilly,
Mrs, Marshall expressed appreciation to everyone who spoke at the meeting this date.
CHANDLER Mayor Pro tem Chandler announced the Arcadia Police Department is offering anyone
(Police Reserve who is interested and qualified, the ultimate in volunteerism as an Arcadia Police
Officers) Department Reserve Officer. Police Reserves participate as full-time police officers with
the department once they are trained, Mayor Pro tem Chandler provided the telephone
number to call for those men and women interested.
RONCELLI
(Holiday
Award)
(Speakers)
MARSHALL
(Bumed Out
House - L.O.)
(Left-tum
arrows on
Htg. at First,
Second &
Santa Anita)
KOVACIC
(Holiday
Festival)
(Abandoned
shopping
carts)
(City Events)
10.
ARA MINUTES
(November 3,
1998)
(APPROVED)
Councilmember Roncelli announced that judging for the Holiday Home Decoration
Awards will take place on Tuesday and Wednesday, December 15'h and 16'h. Mr.
Roncelli instructed homeowners to have their lights tumed on by 5:30 p.m. until
midnight. Business' are eligible to participate in this event. The awards presentation will
be made at the January 19, 1999, Council meeting,
Councilmember Roncelli thanked tonight's speakers for their participation this date, Mr.
Roncelli also expressed his appreciation to the Citizen's Financial Advisory Committee
for their report.
Councilmember Marshall noted a deteriorating bumed out house on Live Oak Avenue
which has remained in this condition for some time. A nearby resident brought this to
her attention recently, Don Penman, Director of Development Services, advised that the
owner of this property informed the City that he intends to demolish this house and build
another home on this site, He will report back to the Council when the time frame is
established fo, this process,
In response to Council member Marshall's query, Mr. Penman, Director of Development
Services, advised that the City's traffic engineer has been looking at traffic pattems in
the downtown area. Staff is analyzing the intersections at Huntington Drive and First,
Second and Santa Anita Avenues regarding the left tum arrows at the mentioned
locations. Staff is preparing some recommendations to the Council on this matter.
Mayor Kovacic announced that the City will hold its annual Holiday Festival and Tree
Lighting Ceremony at City Hall on December 8, 1998, Santa Claus will visit, there will
be refreshments, music, 'Snowcadia", and train rides for young children. In the event of
rain the festivilies will be postponed to December 1 O'h.
The Mayor reminded the audience that there is a toll free number for the Califomia
Shopping Cart Retrieval Service to report abandoned shopping carts within the area. If
the cart is from a drug or discount store telephone the store manager or notify City Hall.
Mayor Kovacic noted the many events held in the City the weekend of November 19'h
through the 23'" which brought out the dynamic community we have here in Arcadia.
The Mayor suggested that an award be given to the Arcadia High School football team
coach and captains at a future meeting for their successful season, Further, Arcadia will
have three residents riding on the Queen's float in the Pasadena Rose Parade on
January 1st... he would like to congratulate these young ladies for this accomplishment at
a Council meeting in January,
It was MOVED by Agency Member Roncelli, seconded by Agency Member Marshall and
CARRIED on roll call vote as follows to APPROVE the November 3, 1998 Minutes of the
Arcadia Redevelopment Agency Regular Meeting,
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11.
NEG, DEC'L.,
DESIGN REV"
OWNER PART/.
AGRMNT,,2'
Esmnt. (REI
Proj, - 214 N,
Santa Anita)
(APPROVED)
Db fa.o I
MOTION
(Arc, Redev.
Agency)
40:0299
AYES:
NOES:
ABSENT:
Agency Members Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
Consideration of the report and recommendation that the Arcadia Redevelopment
Agency approve a Negative Declaration; final Design Review for the Recreational
Equipment, Inc. (REI.) 25,000 square foot retail project at 214 North Santa Anita;
Owner Participation Agreement (OPA) between REI. and the Arcadia Redevelopment
Agency; appropriation of $60,000 from unprogrammed Agency funds for payment of
certain development costs to REI.; and City Council approval of the removal of a two
(2) foot easement in the public right-of-way of St. Joseph and First Streets for REI. use.
At the Agency's November 3, 1998 meeting, the Board conceptually approved the design
of the proposed R.E,1. building. The final review this date completes the formal
requirements for Agency approval. The December 1 staff report setsforth in detail the
materials and design elements of the proposed structure.
In order to better accommodate the development, R.E.1. requested that the City consider
granting a two (2) foot landscape easement onto the public right-of-way on St. Joseph
and First Avenues, Both streets have ten (10) foot sidewalks of which eight (8) feet is
needed for City improvements, and two (2) feet can be made available for development
use by REI.
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City policy requires that REI. dedicate three (3) feet of land along both Santa Anita and
Santa Clara Street for widening the public sidewalk. Also the widening of the comer
radius at both Santa Anita/Santa Clara and Santa Anita/St. Joseph, which would require
relocating of the traffic signal pole and storm drain catch basin at Santa Anita/Santa I
Clara. Collectively, these dedications amount to an estimated $40,000 cost to REI.
RE.1. also requested assistance with the estimated $45,000 to $65,000 cost of removing
asbestos from the existing buildings on the site. Following negotiations, staff and REI.
tentatively agreed to a payment of $20,000 as assistance for such removal. In total the
Agency would provide $60,000 to REI. after completion of construction.
An Owner Participation Agreement (OPA) was prepared by Agency Special Counsel
incorporating the above payment, which has been executed by REI.
The Agency's consultant, Hdl Coren & Cone estimates that REI. alone could generate
from $50,000 to $95,000 in annual sales tax to the City. Agency staff estimate the
Arcadia Redevelopment Agency will receive about $30,000 to $40,000 in annual tax
increment from the project, In total the $60,000 investment in RE.1. project will be
repaid within one (1) year based on these two (2) sources of revenue.
Staff introduced Greg Medland, the future manager of the proposed REI. Arcadia store.
Mr. Medland reported that, if all goes well, RE.1. plans to open the Arcadia store April
16,1999,
11 was MOVED by Agency Member Chandler, seconded by Agency Member Marshall
and CARRIED on roll call vote as follows to,
1, APPROVE the Negative Declaration for the project at 214 North Santa Anita
Avenue, Arcadia, and;
2, APPROVE the final Design Review for this project as shown on Attachment 1,
subject to the conditions listed in the December 1, 1998 staff report, and;
3, APPROVE the Owner Participation Agreement, subject to approval as to form by the
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Agency attorney, and; AUTHORIZE the executive Director to implement the
Agreement, and;
4, APPROPRIATE $60,000 from unprogrammed funds in order to pay $60,000 to
R.E.1. for a portion of their development costs,
AYES:
NOES:
ABSENT:
Agency Members Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
MOTION
(City Council)
It was MOVED by Mayor Pro tern Chandler, seconded by Councilmember Harbicht and
CARRIED on roll call vote as follows to APPROVE and AUTHORIZE a two (2) foot
Landscape Encroachment Easement into the public right-of-way or alternatively, upon
the request and at the cost of R.E,I., remove two (2) feet of the public easement on SI.
Joseph and First streets to R.E.1.
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
ADJOURNMENT The meeting of the Arcadia Redevelopment Agency ADJOURNED to December 15,
1998 at 6:00 p.m,
THE CITY COUNCIL RECONVENED
12,
CONSENT ITEMS
12a.
MINUiES APPROVED the minutes of the November 17, 1998 City Council Regular Meeting.
(Nov. 17, 1998)
12b. 0 7'i:O _ ~a
AWAR.D PROF, AWARDED a Professional Services Agreement in the amount of $114,829, to
SVCS. Law/Crandall Engineering and Environmental Services, Inc., to provide engineering
AGREEMENT services for the construction of a new well and the abandonment of the existing well at
(Engr. Svcs, Rancho #6 site and; AUTHORIZED the City Manager and City Clerk to EXECUTE a
Consl. contract in a form approved by the City Attorney.
Rancho #6 Well)
12c. 09'~()-.!'f;j
ACCPT, PROJ. ACCEPTED all work performed by California Pavement Maintenance Company for the
(98-99 Street 1998/99 Street Resurfacing Program as complete and; AUTHORIZED the final payment
resurfacing to be made in accordance with the contract documents subject to a retention of $20,993.
Prog.)
12d. ()" ....:J - ~
AWAR.D AWARDED a Professional Services Agreement in the amount of $20,500. to L. D, King,
PROF. SVCS, Inc., for the Sodium Hypochlorite Generation System Feasibility Study and Preliminary
AGREEMENT Design Concept at Various Water Production and Storage Plants, and; AUTHORIZED
(Engr. SVC5, the City Manager and City Clerk to EXECUTE a contract in a form approved by the City
ChlOrine Attorney
System Study &
Prelim, Design
Wtr. Prod.!
Storage Plants)
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12/1/98
40:0301
O~$O .30
12e, () :J../O - 7~-
RESOLUTION ADOPTED RESOLUTION NO, 6090 entitled: "A RESOLUTION OF THE CITY
NO. 6090 COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ELECTING TO BE SUBJECT
(Pub, Emp, TO PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT ONLY WITH
Medical/Hospital RESPECT TO MEMBERS REPRESENTED BY CALIFORNIA TEAMSTERS AND
Care - Team- FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND THE
sters) EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS,'
I
12f,
(Acct'g Software) See Page NO.8,
12g,O,j .;JO-::sr
APPROP, FOR APPROPRIATED an additional $300,000 from the Water Fund for additional meter
WTR, METER service connection installations for Fiscal Year 1997/98 (account 520-400-7205-7570)
CONNECTIONS and; DIRECT staff to record a $300,000 increase in estimated meter charges (account
($300,000 off- 520-300-0000-3510) for customer charges.
set by chg,
to Wlr. User)
THE PRECEDING CONSENT ITEMS 12a, b, c, d, e and g APPROVED ON MOTION
BY COUNCILMEMBER MARSHALL, SECONDED BY MAYOR PRO TEM CHANDLER
AND CARRIED ON ROLL CALL VOTE AS FOLLOWS:
AYES: Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
NOES: None
ABSENT: None
12f. 0 ,1'Y()' f<'
AWARD Consideration of the report and recommendation to award a contract in the amount of 'I
CONTRACT $255,540 to Pentamation Govemment Systems for the acquisition of an Information
INFO, MGE. Management System and to appropriate an additional $10,600 from the Equipment Fund
SYSTEM to pay for his purchase,
(Accounting &
Financial In response to the years 2000 software compliance problem, and to update the City's
Software information systems to current technology, it is necessary to acquire replacement
Systems) software for the City's accounting and financial systems.
(APPROVED)
Many of the existing software products are technologically obsolete and are not year
2000 compliant. The existing financial software was purchased nearly 15 years ago and
the cost to reprogram is prohibitive and would not be cost effective in light of current
technology, The Information Services Division of Administrative Services has, for the
past five years, been in the process of implementing our Year 2000 Vision. Over the
past year, staff has conducted a comprehensive search of the market place to identify
potential vendors for accounting and financial software that is year 2000 compliant and
operates in a Windows NT environment. Staff made site visits to local a,ea cities
utilizing the software of Pentamation Govemment Systems, Edem Systems, Inc., and
Fund Balance to ascertain their staffs satisfaction/dissatisfaction with the product, Each
vendor provided an onsite demonstration of their software at Arcadia City Hall which all
affected staff attended. Staff prepared, and advertised a detailed Request for Proposal
to which the three aforementioned vendors responded,
Considerable discussion followed the staff presentation of this item. Councilmember
Roncelli felt the Year 2000 compliant software was not needed. City staff could convert
the existing software and just go right into year 2000 without spending $255,540 for new I
software, Staff explained in detail the reasons the City could not function with the
existing software into Year 2000, Moreover it would take the better part of a year to
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40:0302
install a new system to be ready for the change over in dates.
Mayor Kovacic noted that presumably every City in the country is faced with this
problem. Staff responded that some cities have already accomplished compliance in
their systems.
Following the discussion it was MOVED by Mayor Pro tem Chandler, seconded by
Councilmember Marshall and CARRIED on roll call vote as follows to AWARD a contract
in the amount of $255,540.00 to Pentamation Govemment Systems for the acquisition of
accounting and financial software systems, and; to APPROPRIATE an additional
$10,600 from the Equipment Fund to complete this purchase, and; AUTHORIZE the City
Manager and the City Clerk to EXECUTE a contract in a form approved by the City
Attomey.
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
CITY MANAGER
13a.01)0_1.'1
CITZ'S On August 4, 1998, the City Council adopted Resolution No, 6068, establishing a
FINANCIAL Citizen's Financial Advisory Committee, The Committee's purpose was to provide input
ADVISORY to the Council on the City's current financial policies and to prepare a ,eport for
COMITE. RPT. submission to the Council no later than 90 calendar days following its first meeting,
AND .
RECOMMENDA-
TIONS
The Council appointed the following Arcadia residents to serve on the Citizen's Financial
Advisory Committee. The Committee selected the Chairman and the Co-Chair.
Chairman Mickey Segal; Co-Chair Vince Foley; Member Bob Hoherd; Member John
McAlister; Member David Olson,
As defined in Resolution No, 6068, the purpose of the Citizen's Financial Advisory
Committee was to review and comment on the following:
1. The overall financial policies of the City.
2. The purpose and balances of the City's reserve funds.
3. The City's Investment Policy.
4, The City's Coast Allocation Program.
The Committee's Report was prepared after a series of meetings that included
presentations by staff and the City auditor, as well as a review and discussion of
numerous written materials, The recommendations of the Committee encompass both
policy and administrative matters. It was noted that some of the administrative issues
recommended by the Committee were already in effect and the others, with City Council
approval, will be implemented as part of the budget process.
This date, December 161, the City Council expressed their approval of the administrative
recommendations within the categories listed below, and addressed the policy
recommendations individually as follows. By Council consensus it was determined that a
study session with the Committee would not be required.
BUDGET PROCESS
The Committee made the following recommendations in relation to the overall City
budget process.
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12/1/98
40:0303
1, The budget presented to the City Council should always be a two year budget.
Approved. Affirmation of existing policy. I
2, The budget should always be balanced when adopted as stated in the City Charter.
Approved. Restatement of Charter requirement.
3. If there is a projected shortfall in the first year of the budget" the City Council may
use the emergency reserve fund to balance the budget provided the emergency
reserve fund balance does not fall below 10% of the general fund budget. Policy
recommendation,
4, If the emergency reserve fund balance falls below 10%, the City should explore
revenue enhancement opportunities or will be required to reduce expenses, Policy
recommendation,
5, The emergency reserve fund should be equal to 20% of the general fund budget as
financial insurance in the event of an emergency, i,e., an earthquake. This 20%
requirement needs to be a stated policy in the City's financial policy guidelines.
Policy recommendation,
6. The budgets in the future should have a savings mechanism to maintain the
emergency reserve fund at 20%. If this fund exceeds 20% then the balance should
go to other designated reserve funds as decided by the Council's then-current
policies, Policy recommendation.
It was MOVED by Council member Harbicht, seconded by Mayor Pro tem Chandler and
CARRIED on roll call vote as follows to ENDORSE Items 3 and 4 as a goal.
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
It was MOVED by Councilmember Harbicht, seconded by Mayor Pro tem Chandler and I
CARRIED on roll call vote as follows that the City Council AGREES with, and ADOPTS
Items 5 and 6 as a goal,
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
CITY'S CERTIFIED AUDIT PROCESS
The Committee found the audit process was adequate and appropriate, however, the
Committee made the following recommendations.
1, The City Council should prepare and distribute a Request For Proposals (RFP) to
solicit proposals related to the City's certified audit. The Committee recommended
having an RFP considered every 10 years. Approved.
2. The City should request the audit firm to change the audit manager every five years.
Approved.
3. The selection of auditors should be based not only on price but should consider
technical expertise, personnel and reputation, Approved,
I
RESERVE FUNDS AND BALANCES
The Committee considered all reserve funds and made the following recommendations
to certain funds:
Medical/Dental Insurance Reserve Fund - Used to pay the self-insured portion of the
medical/dental claims.
I
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40:0304
I
1. The funding of this account needs to be reviewed annually and compared to the cost
of premiums to be sure that no excess amounts are being funded. Approved,
2. Any excess balance above the estimated four months' claims should be transferred
to other designated reserve funds or used in manner determined by the City Council.
Policy recommendation,
II was MOVED by Mayor Pro tem Chandler, seconded by Councilmember Roncelli and
CARRIED on roll call vote as follows to ENDORSE Item 2 as amended to DIRECT staff
to retum to Council with a recommendation as far as where these funds should be
placed, for Council to detennine, as part of the earliest major budget discussion if not
part of the next years budget discussion,
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
Facilitv Construclion Fund - Has been established to accumulate funds to build major
City facilities, This fund receives all its revenue from the Capital Outlay Fund,
I
1. The City should combine the Capital Outlay Fund and the Facility Construclion Fund
into one fund called the Capital Improvement Fund. This fund would receive race
track revenues and accumulate money for capital improvements, Approved,
2, The City should establish a policy of funding the new Capital Improvement fund.
This policy should be related to the depreciation of the City's facilities and capital
. assets, As the City completes its City-wide depreciation analysis, the City should
fund the Capital Improvement fund in a manne, equal to the replacement needs
detennined in the depreciation analysis, Endorsed by the Council.
Equipment Service Fund - Has been established to account for all repairs and
maintenance on the rolling stock and equipment of the City, The Committee made the
following recommendations:
1. The goal of this fund is that the balance should be zero at the end of each fiscal
year. Approved.
2. Rates charged to departments should reflecl the actual costs incurred to maintain
the rolling stock in the City, Approved,
3. The current balance of $287,000 should be reviewed by the Council to detennine the
appropriate resolution of this amount. Policy recommendation.
It was MOVED by Mayor Kovacic, seconded by Councilmember Roncelli and CARRIED
on roll call vote as follows to ADOPT lIem No, 3, to review the current balance of
$287,000 in the Equipment Service Fund during the budget process,
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
Equipment Replacement Fund - Established to provide funds for the timely replacement
of all City vehicles and major pieces of equipment such as computer systems. This fund
has a $7.0 million balance. Following are the recommendations of the Committee:
I
1. The City needs to complete its current equipment replacement study in order for City
departments to be able to more accurately budget their equipment replacement
funds, Approved,
2, The equipment replacement fund should maintain funds equivalent to the
accumulated depreciation of assets from the departments plus 5% contingency. Any
11
12/1/98
40:0305
excess funds should be reviewed by the City Council for appropriate action, Policy
recommendation.
It was MOVED by Councilmember Marshall, seconded by Mayor Kovacic and CARRIED
on roll call vote as follows to ADDRESS Item No.2 at budget time when actual numbers
are available,
AYES:
NOES:
ABSENT:
Council members Chandler, Harbicht, Marshall and Kovacic
Councilmember Roncelli
None
FINANCIAL POLICIES DOCUMENT
The Committee reviewed the City of Arcadia Financial Policies document adopted
September 19, 1995, and made recommendations to amend the financial policies in the
following areas:
1. Use of emergency reserve funds. Approved,
2. The equipment replacement fund. Approved.
3. The cost allocation program implementation, Approved.
4, The Committee also recommended that the City Council adopt a formal policy
related to debt financing which would require changes to the existing Financial
Policies document. Policy recommendation,
Following the discussion centered on facility replacement, debt financing or setting aside
funds yearly then constructing facilities, Council agreed that debt financing for a new
police station may be the only way to obtain the funds for its construction. There was a
consensus that Council explore a policy for debt financing at the next budget process.
It was MOVED by Mayor Kovacic, seconded by Mayor Pro tem Chandler and CARRIED
on roll call vote as follows to ADOPT a formal policy relating to debt financing at some
point in the future,
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Harbicht, Marshall, Roncelli and Kovacic
None
None
Due to a health condition, Councilmember Harbicht requested relief for the remainder of
the meeting. For the record Mr. Harbicht indicated agreement with the final two items
regarding investment policy recommended by the Committee.
It was MOVED by Mayor Kovacic, seconded by Mayor Pro tem Chandler and CARRIED
to EXCUSE the absence of Councilmember Harbicht for the remainder of the meeting
this date,
INVESTMENT POLICY
The Committee reviewed the City of Arcadia's Statement of Investment Policy for 1998-
1999, as well as the City of Lake Forest's Statement of Investment Policy. Discussion
was held with City staff regarding current procedures including investment style, term of
investments, and performance review and comparison of investment results. Also the
City's liquidity procedures and requirements, The following recommendations were
proposed by staff and the Committee concurred:
1, The City needs to have a formal succession plan for the investment function,
Approved.
12
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40:0306
I
2, The City should define the necessary qualifications for institutions to be safekeeping
City ass~ts, Approved,
3, The City needs to define prohibited investment transactions, Approved.
4, The City needs to establish a written policy for controlling the investment process,
Approved,
5, The City needs to establish a delegation of authority policy for the investment
process, Approved,
6, City personnel should report on a monthly basis the results of investment activity,
This report should include in graph form a comparison of the City's investment
retums with the investment retums of the State's Local Agency Investment Fund
(LAIF). The report should be for a twelve month period so the City Council can
compare last year's retums with current retums. Policy recommendation,
7. City personnel should be required to explain any variance in excess of 10% between
the City's investment retums and the LAIF index. Policy recommendation.
It was MOVED by Council member Marshall, seconded by Councilmember Roncelli and
CARRIED on roll call vote as follows to ADOPT Investment Policy recommendations
Nos. 6 and 7.
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Marshall, Roncelli and Kovacic
None
Council member Harbicht
COST ALLOCATION PROGRAM
I
The cost allocation program established by the City tries to allocate the general
administrative expenses of the City to all the appropriate departments and funds, The
City uses a program developed by the Claremont Graduate University which
incorporates a reciprocal allocation process allocating expenses both up and down
through various service, support and cost centers and administrative services. The
Committee made the following recommendations:
1. The current cost allocation program needs to be updated every five years.
Approved.
2. Additional personnel need to be trained to perform this study. Currently, only one of
the City's employees is able to do this work. Approved,
CONCLUSION
The Committee has spent in excess of 125 hours reviewing the financial activities of the
City. The review focused on four major areas, as previously mentioned. City personnel
provided the highest possible level of cooperation and assistance in the Committee's
review process. The Committee found the City's financial systems appeared to be
appropriate and found no substantial inadequacies in the current systems and policies.
The recommendations proposed by the Citizen's Financial Advisory Committee have
been made to enhance the current financial systems of the City of Arcadia. All
recommendations had been discussed with City personnel. These recommendations, if
adopted by the City Council, will need to integrated into the current Financial Policies
Document dated September 19, 1995,
I
At the conclusion of the Committee's report Mayor Pro tem Chandler, in reference to the
required quarterly budget reports, commented that he did not believe quarterly reports
were necessary, Following a brief discussion, Mr, Segal noted that with substantial
revenue streams from property taxes coming to the City in December and April, it would
be sufficient to produce these financial reports in six, nine and twelve month periods.
Mayor Kovacic noted this matter could be explored during the budget process.
13
12/1/98
40:0307
The Mayor and Council expressed their deep app,eciation to the Citizen's Financial
Advisory Committee Members for their work on behalf of the City,
13b, 0 e /() ...::rD
RESOLUTION Consideration of the report and recommendation to adopt Resolution No, 6088,
NO, 6088 approving the transfer and assignment of the non-exclusive Cable Television Franchise
(Transfer/ from TCI Cablevision of Sierra Madre/Arcadia, Inc" to AT&T,
assgnmnt.
Cable Franchise
Tel to AT&T)
(CONTINUED
TO 12-15-98)
It was MOVED by Mayor Pro tem Chandler, seconded by Councilmember Marshall and
CARRIED on roll call vote as follows to CONTINUE the report and recommendation to
adopt Resolution No, 6088 to the December 15,1998 City Council Meeting.
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Marshall, Roncelli and Kovacic
None
Councilmember Harbicht
14,
CITY ATTORNEY
14a. 03,--;.;.(;) ~-
RESOLUTION Review of the City's code enforcement process indicated that certain violators of the
NO. 6087 Arcadia Municipal Code, particularly with regard to certain sign regulations, engage in
(Adm. Citation repeat violations as a matter of course, A pattern has developed where certain
Fees for violations are noticed, compliance occurs, and then the violation is repeated, even
Violation to though the violator may have paid the administrative citation fine.
AMC)
(ADOPTED) In response to the above described practice, the City Council directed staff to revise the
code enforcement process to address this problem. The cost for the first violation would
remain $65,00.
1 - Increase the fines for repeat violations, from $81,25 to $130 for the second violation;
from $97.50 to $195,00 for the third violation,
2 - If more than three violations occur in any nine month period and is deemed to be of a
"continuing nature" (Resolution No, 6087) this entails a more formal enforcement
process and authorizes the potential imposition of penalties of up to $2,500 per day.
Resolution No, 6087 establishes the revised higher fines and further amends the prio,
resolution by revising the time period for second and third violations.
It was MOVED by Mayor Pro tem Chandler, seconded by Councilmember Marshall and
CARRIED on roll call vote as follows that RESOLUTION NO, 6087 entitled: "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA,
SETTING FORTH THE ADMINISTRATIVE CITATION SCHEDULE OF FINES FOR
CERTAIN VIOLATIONS OF THE ARCADIA MUNICIPAL CODE AND DESIGNATING
CONTINUING VIOLATIONS SUBJECT TO ADMINISTRATIVE REMEDIES", be and it is
hereby ADOPTED and; DIRECT staff to report back to the City Council on the status of
repeat violations within six (6) months of the effective date of Resolution No, 6087,
AYES:
NOES:
ABSENT:
Councilmembers Chandler, Marshall, Roncelli and Kovacic
None
Councilmember Harbicht
I
/1
14b. 0 S- 'S' 0 - 71)
ORDINANCE It was MOVED by Mayor Pro tem Chandler, seconded by Councilmember Marshall and I
NO, 2095 CARRIED on roll call vote as follows that ORDINANCE NO, 2095 entitled: "AN
(Add'g H6 High ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA
14
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1
40:0308
ADDING AN H6 (HIGH RISE) OVERLAY TO THE C-2 ZONED PROPERTY LOCATED
AT 55 WEST HUNTINGTON DRIVE", be and it hereby INTRODUCED,
Rise Overlay
to C-2 prop,
55 W, Htg, Dr,)
(INTRODUCED)
AYES:
NOES:
ABSENT:
Council members Chandler, Marshall, Roncelli and Kovacic
None
Council member Harbicht
Councilmember Marshall announced that persons in the audience who experienced a
cable television outage recently could receive a refund for those hours by contacting TCI
Cablevision,
ADJOURNMENT At 10:27 p.m. the City Council Regular Meeting ADJOURNED to December 15, 1998,
(Dec. 15, 1998) at 6:00 p.m., in the Conference Room of the Council Chambers for a Regular Meeting to
conduct the business of the Council and Redevelopment Agency and any Closed
Session necessary to discuss personnel, litigation matters or evaluation of properties,
ATTEST:
15
12/1/98