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HomeMy WebLinkAboutItem 2a: Minutes of June 1 and June 15, 2010CITY COUNCIL /REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, JUNE 1, 2010 52:0077 CALL TO ORDER — Mayor /Agency Chair Amundson called the meeting to order at 5:00 p.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Chandler, Harbicht, Kovacic, Segal and Amundson ABSENT: None CLOSED SESSION PUBLIC COMMENTS (5 minutes per person) CLOSED SESSION a. Pursuant to Government Code Section 54957.6 to confer with labor negotiators. City Negotiators: Administrative Services Director Hue Quach and Human Resources Administrator Michael Casalou. Employee Organizations: Arcadia Public Works Employees Association, Arcadia City Employees Association, Arcadia Police Officers' Association, Arcadia Firefighters' Association and unrepresented employees: Department Heads, Division Managers, Supervisors, and Part-time employees. b. Pursuant to Government Code Section 54956(a) to confer with legal counsel regarding the case of Westfield, LLC, et al. v. City of Arcadia; Arcadia First! v. City of Arcadia; Real Parties in Interest: Caruso Property Management, Inc., Santa Anita Associates Holding Co., LLC, The Santa Anita Companies, Inc., Santa Anita Commercial Enterprises, Inc. Santa Anita Associates, LLC, Magna Entertainment Corporation, Los Angeles Turf Club, Incorporated, Rick J. Caruso, Caruso Affiliated, Inc. (State of California Court of Appeal Case No. 8212865) STUDY SESSION a. Report, discussion and direction regarding the Proposed 2010 -11 Fiscal Year Budget. Mr. Penman discussed the various options for balancing the budget including what the City Council suggested at the Study Session on May 17, 2010; he noted that the preliminary General Fund Budget was out of balance by $1,069.725 which represented 2.3% of the total operating budget; he discussed the ideas that were discussed at the Budget Study Session which included using interest earnings from some of the unrestricted funds (Capital and Equipment Funds), over funded reserves in the Life Insurance Fund and lowering reserves in the Liability and Workers Compensation Fund and implementing the "960" Plan; and discussed those positions that have been identified as a potential cost savings. He explained that the Life Insurance Fund that was established to self fund a $10,000 death benefit for employees that applied after they retired; he noted that there were still 18 retired employees who were eligible under the program; that the maximum exposure to the City is $190,000 which can be allocated to another fund to further cover the shortfall. He discussed and commented on the various positions that continue to be frozen in the 2010 -11 budget; and provided a summary of potential cuts from all departments. 06 -01 -10 He further discussed and explained future CIP projects such as the City Hall Project, the Soccer Field and the Stone Pines Projects; he did note that there were about 50 Stone Pine trees that have to come out in the next 2 -3 years because they are in decline and that $450,000 will be needed to complete that project; he discussed and noted that Park Impact money can be used for the Soccer Field Project; and the Dana Gym project. The City Council adjourned back into Study Session at 8:55 p.m. Hue Quach, Administrative Services Director provided a summary of the General Fund including beginning and ending fund balances, estimated revenues, proposed expenditure and revenue sources and general fund expenditure summaries. He noted and discussed a projected increase of approximately 8.7% in sales taxes, 4.9% in Transient Occupancy Tax and an increase in building and development activities, including an increase from $9.1 to $9.3 million dollars which is about 1.7% in property tax money; and provided a summary of all Department General Fund Expenditure increases and decreases. The Study Session recessed at 6:55 p.m. to the Open Meeting and resumed at 8:55 p.m. Mr. Penman discussed and provided an overview of the options for balancing the budget; he further commented and provided additional information, at the request of the City Council, from the reverse priority list and discussed studies to be conducted regarding overtime and potential revenue sources. A motion was made by Council Member Segal, seconded by Council Member Harbicht to approve and implement the "one time" schedule provided at the May 17, 2010 to balance the budget and at a later time will decide which funds will continue to be used. At the request of Council Member Kovacic, Mr. Penman provided an update regarding use and potential costs of the Joint Use Agreement with the School District and discussed the City's and School District use. AYES: Agency Member Segal, Harbicht, Chandler, Kovacic, and Amundson NOES: None ABSENT: None THE CITY COUNCIL /REDEVELOPMENT AGENCY ADJOURNED TO OPEN SESSION INVOCATION — Reverend Raymond Petzholt, Mandarin Baptist Church PLEDGE OF ALLEGIANCE - Jason Kruckeberg, Assistant City Manager /Development Services Director 52:0078 In response to an inquiry from Council Member Harbicht regarding the $1.5 million dollars in the CIP budget for the City Council Hall project, Mr. Penman responded that there is a design that is done but there is no funding source at the present time; that 30% of the working drawings are done but the project has been placed on hold for the present time. He discussed various upgrades that have to be done to the current City Hall; and discussed the possibility of renting out the current City Hall if and when a new City Hall is built. Mayor /Agency Chair Amundson called the regular meeting to order in the Council Chamber at 7:05 p.m. 06 -01 -10 ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Kovacic, Chandler, Harbicht and Segal ABSENT: None REPORT FROM CITY ATTORNEY /AGENCY COUNSEL ON CLOSED SESSION ITEM 52:0079 City Attorney Steve Deitsch reported that the City Council and Redevelopment Agency Board met in Closed Session to consider the two (2) items listed on the posted agenda, no reportable action was taken. Mr. Deitsch further reported that the City Council and Redevelopment Agency Board began a Study Session to hear a report from staff regarding the proposed 2010 -11 Fiscal Year Budget; however, the Study Session was not completed, therefore, the City Council will recess back into Study Session following the Open Session. SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS City Manager Don Penman announced the two (2) supplemental items handed out prior to the start of the meeting; he reported that one item relates to Public Hearing Item No. 1.b and (2) a memorandum from the City Attorney regarding the Citywide Lighting District No. 1 which will be discussed under City Manager reports. MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by Council /Agency Member Chandler, seconded by Council /Agency Member Segal and carried on roll call vote to read all ordinances and resolutions by title only and waive the reading in full. PRESENTATIONS a. Presentation of a Certificate to the Arcadia Chinese Association b. Presentation of a Certificate to Arcadia High School Baseball Team 1. PUBLIC HEARING REDEVELOPMENT AGENCY ITEMS: a. Adopt Resolution No. ARA -232 amending and adopting local guidelines for implementing the California Environmental Quality Act (Public Resources Code Section 21000 et seq.). Recommended Action: Adopt Jason Kruckeberg, Assistant City Manager /Development Services Director reported that periodically numerous amendments are made to the State's CEQA Guidelines in response to legislation and litigation that has changed or has been reinterpreted; he explained that the California Environmental Quality Act (CEQA) is California's most important environmental law; that CEQA requires that all public agencies adopt specific objectives, criteria and procedures for evaluating 06 -01 -10 environmental impacts of public and private projects; and that local guidelines must be consistent with the guidelines that the State adopts. Mr. Kruckeberg recommended that the City Council adopt Resolution No. ARA 232 and Resolution No. 6717 amending and adopting local guidelines for implementing the California Environmental Quality Act (Public Resources Code Section 21000 et seq.). A motion to close the public hearing was made by Council /Agency Member Chandler, seconded by Agency Member Harbicht and seeing no further objection, the Agency Chair declared the public hearing closed. It was moved by Agency Member Chandler, seconded by Agency Member Harbicht and carried on roll call vote to adopt Resolution No. ARA -232 amending and adopting local guidelines for implementing the California Environmental Quality Act (Public Resources Code Section 21000 et seq.). AYES: Agency Member Chandler, Harbicht, Kovacic, Segal and Amundson NOES: None ABSENT: None CITY COUNCIL ITEMS: 52:0080 b. Adopt Resolution No. 6717 amending and adopting local guidelines for implementing the California Environmental Quality Act (Public Resources Code Section 21000 et seq.). Recommended Action: Adopt It was moved by Council Member Kovacic, seconded by Council Member Harbicht and carried on roll call vote to adopt Resolution No. 6717 amending and adopting local guidelines for implementing the California Environmental Quality Act (Public Resources Code Section 21000 et seq.). AYES: Council Member Kovacic, Harbicht, Chandler, Segal and Amundson NOES: None ABSENT: None c. Appeal of Planning Commission Denial of Administrative Single Family Architectural Design Review No. 10 -28 for a new front porch cover and replacement of two patio covers at the rear of the existing single- story, single- family residence at 215 West Naomi Avenue. Recommended Action: Uphold denial Jim Kasama, Community Development Administrator reported that the property owner submitted Administrative Single Family Architectural Design Review for a new 270 square foot front porch cover and replacement of two patio covers at the rear of the existing, single -story, single - family residence; that the Planning Commission denied the applicant's proposal based on the finding that the architectural design of the porch and patio covers are not consistent with the City's Single - Family Architectural Design Review Guidelines; and further reported that the applicant began the work without design review approval and building permits. Mr. Kasama advised that porches and patio covers are typically handled at the administrative level; however, noted that staff referred this design review to the Planning Commission because the proposed improvements were not compatible with the existing structure; he discussed the residence as being 06 -01 -10 52:0081 Mediterranean /California ranch style based on the terracotta, S -tile roof, the off white stucco walls and the wide low profile appearance; he explained the City's Architectural Design Review Guidelines and process, the Single Family Residential Design Guidelines and Architectural Style. He further reported that on April 27, 2010, the Planning Commission agreed with staff's determination that the proposed porch cover and two patio covers were not consistent with the City's Single - Family Architectural Design which was appealed by the homeowner on May 4, 2010. Mayor Amundson opened the public hearing. Fausto G. Pachano, the property owner, appeared and explained his vision for the house once it is completed; he discussed the new plans that depict what the house will look like when it is completed; and requested that the City Council allow him to finish his dream home. Brian Chen, Designer, apologized for beginning construction without the proper permits; he noted that professional plans were prepared and submitted to the City; and that he would like to see the City Council approve the plans. A motion to close the public hearing was made by Council Member Segal, seconded by Council Member Harbicht and seeing no further objection, the Mayor declared the public hearing closed. It was moved by Council Member Segal, seconded by Council Member Harbicht and carried on roll call vote to refer the new plans back to staff for review; and to waive any additional fees. AYES: Council Member Segal, Harbicht, Chandler, Kovacic and Amundson NOES: None ABSENT: None PUBLIC COMMENTS - None REPORTS FROM THE MAYOR, CITY COUNCIL AND CITY CLERK Council Member Chandler announced that the Arcadia Newsletter which should be arriving in mailboxes soon has an article regarding the Citywide Street Lighting Assessment District which is a very important issue; he noted that if it does not pass, it will create a shortfall in the budget; he encouraged residents to vote yes. Council Member Segal congratulated Mr. Kovacic and the Arcadia Chinese Association on a successful Law Day; and congratulated the Arcadia High School Baseball team. Mayor Pro Tem Kovacic thanked the Arcadia Chinese for their help in assisting with Law Day and their community involvement; and encouraged other organizations to get involved in the community. Council Member Harbicht commented and discussed City Council term limits; and advised that in the future, he will be asking that an item regarding City Council term limits be placed on the agenda. City Clerk Barrows had no announcements. Mayor Amundson thanked Supervisor Antonovich for the Memorial Day Celebration at the County Park; he announced that he attended the Memorial Day event at Live Oak Cemetery; he noted that General Plan Update Community workshops are coming up and encouraged community 06 -01 -10 52:0082 participation; and advised that a coyote has been seen in surrounding neighborhoods and advised residents to be careful and be proactive. Mr. Penman discussed potential dates for Planning Commission interviews as discussed by the City Council at the last meeting. After discussion, it was the consensus of the City Council that Planning Commissioner interviews will be held on Tuesday, June 15, 2010 at 4:30 p.m. and that the two Planning Commissioners who are eligible for reappointment will not be part of the interview process. 2. CONSENT CALENDAR a. Authorize the City Manager to execute a contract with General Pump Company for Preventative Maintenance Services and Repair of City Wells and Pumps in the amount of $300,000. Recommended Action: Approve b. Authorize the City Manager to execute a contract with Catering Systems, Inc. to provide the Senior Meals Program for the 2010 -2011 Fiscal Year in an amount not to exceed $56,000. Recommended Action: Approve c. Approve the Home Improvement Program Guidelines for the Community Development Block Grant Program and authorize the City Manager to approve any future revisions to the Guidelines. Recommended Action: Approve It was moved by Council Member Chandler seconded by Council Member Harbicht and carried on roll call vote to approve Consent Calendar items 2.a through 2.c. AYES: Council Member Chandler, Harbicht, Kovacic, Segal and Amundson NOES: None ABSENT: None 3 CITY MANAGER ITEMS: a. Authorize the City Manager to execute a two (2) year Professional Services Agreement extension with the Pasadena Humane Society & SPCA for Animal Control Services in the amount of $71,142 per year. Recommended Action: Approve Captain Randy Kirby reported that the City's current Professional Services Agreement with the Pasadena Humane Society and SPCE (PHS) for animal control will expire on June 30, 2010; that Pasadena Humane Society requested a renewal fee of $83,576.71 for FY 2010 -2011 which reflects an additional $2,434.27 per year or a 3% increase; that due to the City's budgetary constraints, staff requested PHS provide a list of dog licensing fees from surrounding cities and options for reducing the contract renewal costs; and reported that the survey indicated Arcadia had the lowest dog licensing fees in all categories. He discussed two options for either keeping the same current fee or reducing the annual contract cost by $10,000; Option A: the contract baseline fee will remain at $81,142.44 if the City agrees to increase the annual dog license fees; or (b) PHS will reduce the 06 -01 -10 52:0083 annual contract by $10,000 or $71,142.00 for two years if the City agrees to increase the annual dog license fees. He advised that even with the fee increases, the amounts are still below surrounding cities; and recommended renewing the Professional Services Agreement for animal control services for the next two years in the amount of $71,142 per year. It was moved by Council Member Harbicht seconded by Council Member Kovacic and carried on roll call vote to authorize the City Manager to execute a two (2) year Professional Services Agreement extension with the Pasadena Humane Society & SPCA for Animal Control Services in the amount of $71,142 per year. AYES: Council Member Harbicht, Kovacic, Chandler, Segal and Amundson NOES: None ABSENT: None b. Adopt Resolution No. 6720 initiating the proceedings for the formation of the Arcadia Citywide Lighting District No. 1; and the Ievv and collection of assessments related thereto commencing with Fiscal Year 2010 -2011. Recommended Action: Adopt Adopt Resolution No. 6721 preliminarily approving the Engineer's Report regarding the formation of the Arcadia Citywide Lighting District No. 1; and the levy and collection of assessments related thereto commencing with Fiscal Year 2010 -2011. Recommended Action: Adopt Adopt Resolution No. 6722 declaring its intention to form the Arcadia Citywide Lighting District No. 1; and declaring its intention to conduct a property owner balloting on the matter of new assessments related thereto commencing with Fiscal Year 2010 -2011. Recommended Action: Adopt Tom Tait, Public Works Services Director provided a brief summary of the issues surrounding the Citywide Lighting Assessment; he provided a project summary on revisiting the formation of the lighting assessment district; he discussed the process for re- balloting for the Citywide street lighting assessment district based on the City's current contribution of sixty percent (60 %) and using a simple methodology of two -zoned lighting benefit assessment areas: Zone 1 are property owners on major thoroughfares (arterial street lights) and Zone 2 are property owners who are on residential neighborhoods (local street lights); that property owners in Zones 1 and 2 who have sparse lighting will pay twenty percent (20 %) of what the annual rate is for single family property owners and areas in the City that do not have street lighting will not pay for street lighting. He explained that property owners currently pay 40% of the total cost to maintain and repair street lights and the City pays the remaining 60 %; that without a property owner approved extension, the City will lose approximately $420,000 in revenue annually. He noted that the total annual budget for the assessment is $1,071,595 with the City contributing $642,957 (60 %) while property owners will pay the remaining $428,638 (40 %). He also discussed public outreach efforts and proposed annual assessment rates based on single - family properties. It was moved by Council Member Harbicht, seconded by Council Member Chandler and carried on roll call vote to adopt Resolution No. 6720, 6721 and 6722 and authorize and direct the City Manager to vote "yes" on the City's ballots for assessments applicable to City owned property; and that the City continue the City's long standing policy of the City paying the assessments otherwise due from the Arcadia Unified School District for the proposed Citywide Lighting District No. I. 06 -01 -10 Mr. Deitsch read the following resolutions into the record: 52:0084 Resolution No. 6720 initiating the proceedings for the formation of the Arcadia Citywide Lighting District No. 1; and the levy and collection of assessments related thereto commencing with Fiscal Year 2010 -2011; and Resolution No. 6721 preliminarily approving the Engineer's Report regarding the formation of the Arcadia Citywide Lighting District No. 1; and the levy and collection of assessments related thereto commencing with Fiscal Year 2010 -2011; and Resolution No. 6722 declaring its intention to form the Arcadia Citywide Lighting District No. 1; and declaring its intention to conduct a property owner balloting on the matter of new assessments related thereto commencing with Fiscal Year 2010 -2011. AYES: Council Member Harbicht, Chandler, Kovacic, Segal and Amundson NOES: None ABSENT: None c. Adopt Resolution No. 6718 setting City Water Rates for Fiscal Year 2010 -2011. Recommended Action: Adopt Adopt Resolution No. 6719 setting Citv Sewer Rates for Fiscal Year 2010 -2011. Recommended Action: Adopt Tom Tait, Public Works Services Director reported that utility rates fund the operations and maintenance of the water system and the sanitary sewer system; that every year it is necessary to evaluate current utility rates to ensure proper funding to provide quality services to the residents; that as part of the budget process, staff reviewed the Capital Improvement Program, Water Master Plan and Sewer Master Plan and has determined that a 1.3% cost of living adjustment is necessary in order to maintain water services to the residents; that the current water rate is $1.31 and the new rate will be $1.33 which is a $0.02 cent increase; he noted that at the June 12, 2009 meeting, the City Council approved staff's recommendation to automatically adjust water and sewer rates for the next five (5) fiscal years in accordance with the California Consumer Price Index for Los Angeles, Riverside and Orange County areas. It was moved by Council Member Segal seconded by Council Member Chandler and carried on roll call vote to adopt Resolution No. 6718 setting City Water Rates and finding the rates will not exceed the estimated amount necessary to fund operation of the City Water System. AYES: Council Member Segal, Chandler, Harbicht, Kovacic and Amundson NOES: None ABSENT: None It was moved by Council Member Segal, seconded by Council Member Chandler and carried on roll call vote to adopt Resolution No. 6719 setting City Sewer Rates and finding the rates will not exceed the estimated amount necessary to fund operation of the City Sewer System. AYES: Council Member Segal, Chandler, Harbicht, Kovacic and Amundson NOES: None ABSENT: None 06 -01 -10 The City Council recessed at 8:50 p.m. to Study Session ADJOURNMENT The City Council /Redevelopment Agency adjourned at 9:20 p.m. to Tuesday, June 15, 2010, 4:30 p.m. in the City Council Chamber located at 240 W. Huntington Drive, Arcadia. By: James H. Barrows, City Clerk ' L ,(3 52:0085 Lisa Mussenden Chief Deputy City Clerk/Records Manager CALL TO ORDER - Mayor Amundson called the meeting to order at 4:30 p.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Chandler, Harbicht, Kovacic, Segal and Amundson ABSENT: None CLOSED SESSION /STUDY SESSION PUBLIC COMMENTS (5 minutes per person) PLANNING COMMISSION CANDIDATE INTERVIEWS The City Council conducted interviews of the following applicants for appointment to the Planning Commission: Sam Falzone, Tommy Thai, Esma Ali, Felix Chien, Sho Tay, Nadar Samaan and Ching Chiao. Council Member Chandler nominated Sam Falzone for appointment. Council Member Kovacic nominated Ching Chiao for appointment. Roll Call: CITY COUNCIL /REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, JUNE 15, 2010 Mayor Amundson — Sam Falzone Mayor Pro Tem Kovacic — Ching Chiao Council Member Chandler — Sam Falzone Council Member Harbicht — Ching Chiao Council Member Segal - Ching Chiao 52:0086 Seeing no other nominations, Ching Chiao was appointed to the Planning Commission for four (4) year term ending June 30, 2014. Council Member Harbicht nominated Richard Beranek and Anthony Parrille for reappointment to the Planning Commission. Seeing no other nominations, Richard Beranek and Anthony Parrille were reappointed to the Planning Commission for four (4) year terms ending June 30, 2014. STUDY SESSION a. Report, discussion and direction regarding the City's Financial Audit, Auditor's Communication with the City Council per Statement on Auditing Standard No. 114. Mr. Caporicci, Principal of Caporicci & Larson, Inc. presented the City's Financial Audit; he discussed and commented on the objectives of the audit, management responsibilities for the financial statements and governance responsibilities; and Caporicci & Larson's responsibilities for the financial statements. 06 -15 -10 CLOSED SESSION 52:0087 a. Pursuant to Government Code Section 54957.6 to confer with labor negotiators. City Negotiators: Administrative Services Director Hue Quach and Human Resources Administrator Michael Casalou. Employee Organizations: Arcadia Public Works Employees Association, Arcadia City Employees Association, Arcadia Police Civilian Employees Association, Arcadia Police Officers' Association, Arcadia Firefighters' Association and unrepresented employees: Department Heads, Division Managers, Supervisors, and Part-time employees. b. Pursuant to Government Code Section 54956.9(a) conference with real property negotiators: Property: 19 Lucille Street Agency Negotiators: City Manager /Agency Executive Director Don Penman, Assistant City Manager /Deputy Executive Director Jason Kruckeberg and the Economic Development Manager Jerry Schwartz Negotiating Parties: Arcadia Redevelopment Agency and Chun -Cheih Chen and Mei -Ton Chen Under Negotiation: Price and term of payment THE CITY COUNCIUREDEVELOPMENT AGENCY ADJOURNED TO OPEN SESSION Mayor /Agency Chair Amundson called the regular meeting to order at 7:00 p.m. INVOCATION — Reverend Julie Bryant, Arcadia Episcopal Church of the Transfiguration PLEDGE OF ALLEGIANCE - Robert Sanderson, Arcadia Police Chief ROLL CALL OF CITY COUNCIUREDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Kovacic, Chandler, Harbicht and Segal ABSENT: None REPORT FROM CITY ATTORNEY /AGENCY COUNSEL ON CLOSED SESSION ITEM City Attorney Steve Deitsch reported that the City Council /Redevelopment Agency Board met in Closed Session to consider the two (2) items listed on the posted agenda, no reportable action was taken. SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS - None MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by Council /Agency Member Chandler, seconded by Council /Agency Member Segal and carried on roll call vote to read all ordinances and resolutions by title only and waive the reading in full. 06 -15 -10 PRESENTATIONS a. Presentation of 2010 Arcadia Beautiful Awards. 233 E. Huntington Drive — The Derby 300 Hacienda Drive — The Lihani Family 431 Monte Vista Road — Mark & Sophia Lopreiato Family 516 Catalpa — The Bottala Family 857 Volante Drive — The Sommers Family 921 -933 W. Huntington Drive — Karyn Jackson 1120 Encanto Drive — The Clarke Family 1120 Singing Wood Drive 1145 Fallen Leaf Road 1201 Greenfield Avenue 1489 Caballero Road 1601 S. Baldwin Avenue — Arcadia Health Care Center 1610 Rodeo Road c. Metro Gold Line Presentation to the City Council by Habib Balian. 1. PUBLIC HEARING REDEVELOPMENT AGENCY ITEMS: CITY COUNCIL ITEMS: 52:0088 Mayor Amundson, Janalee Shimmin and Ann Kidd of the Arcadia Beautiful Commission were present to make presentations to those in attendance. The award recipients were as follows: b. Presentation of Certificate to Dorothy Cunningham for her many years of service to the Community. a. Resolution No. ARA -233 adopting a budget for Fiscal Year 2010 -2011 and appropriating the amounts specified therein as expenditures from the funds indicated. Recommended Action: Adopt b. Consideration of adoption of the following Resolutions related to the 2010 -2011 Fiscal Year Budget: Adopt Resolution No. 6725 adopting a Budget for Fiscal Year 2010 -2011 and appropriating the amounts specified therein as expenditures from the funds indicated. Recommended Action: Adopt Adopt Resolution No. 6726 adopting a Capital Improvement and Equipment Plan for Fiscal Years 2010 -2011 through 2014 -2015. Recommended Action: Adopt Don Penman, City Manager provided a brief summary of the City and Redevelopment Agency Fiscal Year 2010 -11 budgets. He reported that the Preliminary Budget submitted to the City 06 -15 -10 52:0089 Council on May 17 was out of balance by $1,069,725 which represented 2.3% of the total operating budget; he discussed and commented on the list of ideas that were generated by the City Council and staff that could be implemented for "one year" only that would balance the budget; he noted that each department prepared, similar to the previous year, a "reverse priority" list of cuts totaling 2.3% of their operating budget; and that those cuts totaled $1,242,615. He discussed using interest earnings from some of the unrestricted funds (Capital and Equipment), generating interest income through a loan to the Redevelopment Agency, using over funded reserves in the Life Insurance Fund and lowering reserves in the Liability and Workers Compensation Fund, as well as implementing the "960" plan which is the rehiring of retirees that would balance the budget. Mr. Penman reported that the City received its sales tax report for the first quarter of 2010 and noted that revenue was up 1%; and he also discussed a $3.5 million loan from the City to the Agency for a one year period. Mr. Penman further noted that most of the positions frozen last year will remain unfilled; and discussed savings from implementing a "960" Plan for certain police and fire personnel positions for six months. Hue Quach, Administrative Services Director provided and summaries of the City and the Redevelopment Agency Fiscal Year 2010 -11 budgets major category funds. Mayor /Agency Chair Amundson opened the public hearing. No one appeared to provide testimony. A motion to close the public hearing was made by Agency /Council Member Chandler seconded by Agency /Council Member Segal and seeing no further objection, Council /Agency Chair Amundson declared the public hearing closed. It was moved by Council /Agency Member Harbicht, seconded by Council /Agency Member Chandler and carried on roll call vote to adopt: Resolution No. ARA -233 adopting a budget for Fiscal Year 2010 -2011 and appropriating the amounts specified therein as expenditures from the funds indicated and authorized the Executive Director to execute a promissory note accepting a loan of $3.5 million dollars from the City of Arcadia, including an interest rate of 8 °/p compounded annually, payable to the City of Arcadia on demand; and Resolution No. 6725 adopting a Budget for Fiscal Year 2010 -2011 and appropriating the amounts specified therein as expenditures from the funds indicated and approve a loan of $3.5 million dollars to the Arcadia Redevelopment Agency including an interest rate of 8% compounded annually due and payable to the City of Arcadia upon demand by the City; and Resolution No. 6726 adopting a Capital Improvement and Equipment Plan for Fiscal Years 2010- 2011 through 2014 -2015. AYES: Council /Agency Member Harbicht, Chandler, Kovacic, Segal and Amundson NOES: None ABSENT: None Mr. Penman discussed the City Council's previous authorization to transfer $350,000 of Gas Tax money to the General Fund in anticipation of balancing the fiscal year 2010 -2011 budget; he reported that based on preliminary numbers, the Gas Tax money will not be needed and requested 06 -15 -10 52:0090 the City Council approve the transfer of those funds back to the Gas Tax fund and reinstate the slurry seal project. It was moved by Council /Agency Member Harbicht, seconded by Council /Agency Member Segal and carried on roll call vote to transfer the $350,000 Gas Tax money previously transferred to the General Fund in fiscal year 2009 -10 to the Capital Improvement Fund and reinstate the slurry seal program for next fiscal year. AYES: Council /Agency Member Harbicht, Segal, Chandler, Kovacic, and Amundson NOES: None ABSENT: None c. Consideration of approval of Text Amendment No. TA 10 -11 relating to the regulations for Personal Service Business Uses and the requirements for Conditional Use Permits for such uses. Introduce Ordinance No. 2275 amending Article IX (Division and Use of Land) of the Arcadia Municipal Code to define and address regulations for personal service business uses and the requirements for Conditional Use Permits for such uses and amending Article VI (Business, Professions, Trades and Occupations) of the Arcadia Municipal Code to revise the definition of personal service business. Recommended Action: Introduce Jason Kruckeberg, Assistant City Manager /Development Services Director reported that the proposed Ordinance amends the City's Zoning Ordinance to define "Personal Service Business Uses ", and establishes regulations and requirements for Conditional Use Permits for those uses; that the amendments proposed are in response to the illegal activity at these types of businesses, which include day spas, hair salons, nail salons, beauty parlors, health spas and in addition would like to include tattoo parlors and tanning salons. He noted that many personal service businesses have private rooms and /or enclosures; and that the private rooms are being used to conduct illegal activities such as prostitution. He noted that numerous discussions and study sessions were conducted regarding the problems encountered at businesses that provide personal services; and further noted that the City Council has had to act on appeals of business license revocations of several businesses because of criminal activity at these businesses. Mayor Amundson opened the public hearing. No one appeared to provide testimony. A motion to close the public hearing was made by Council Member Chandler seconded by Council Member Segal and seeing no further objection, Mayor Amundson declared the public hearing closed. It was moved by Council Member Chandler, seconded by Council Member Kovacic to introduce Ordinance No. 2275 amending Article IX (Division and Use of Land) of the Arcadia Municipal Code to define and address regulations for personal service business uses and the requirements for Conditional Use Permits for such uses and amending Article VI (Business, Professions, Trades and Occupations) of the Arcadia Municipal Code to revise the definition of personal service business. 06 -15 -10 A substitute motion was made by Council Member Harbicht, seconded by Council Member Segal to direct staff to prepare a separate ordinance that would include possible exemptions for individuals who meet certain criteria such as barber shops where there are no private rooms and there is complete transparency in the front windows. AYES: Council Member Harbicht NOES: Council Member Chandler, Kovacic, Segal and Amundson ABSENT: None The vote on the original motion to introduce Ordinance No. 2275 was as follows: AYES: Council Member Chandler, Kovacic, Harbicht, Segal and Amundson NOES: None ABSENT: None PUBLIC COMMENTS - None REPORTS FROM THE MAYOR, CITY COUNCIL AND CITY CLERK Mayor Pro Tem Kovacic commented on the passing of UCLA Coach John Wooden. 52:0091 Council Member Harbicht acknowledged a $40,000 gift from the Friends of the Library which is on the consent calendar; he commented on an article in Western Cities Magazine regarding all mail ballot elections and requested that a report regarding the potential cost savings and the process of an all mail ballot election be brought back to a future meeting. It was the consensus of the City Council that a report be prepared regarding the potential cost savings including the process of an all mail ballot election for City Council consideration. Council Member Chandler commented on the Arcadia /Monrovia /Duarte Chamber Golf Tournament at Sierra LaVerne. Council Member Segal commented and congratulated Dorothy Cunningham on her retirement. City Clerk Barrows announced that Baldwin Stocker Elementary School was given the 2010 California Distinguished School Award; and he congratulated the 800 plus students that graduated from Arcadia High School and thanked everyone including the parents who participated in putting the all night party together. Mayor Amundson announced the Gold Line Ground Breaking on Saturday, June 26 at Newcastle Park; and noted that the Arcadia Chamber of Commerce has scheduled a June 22 meeting to create a Downtown Business Association; he commented on the recent earthquake and encouraged everyone to be prepared in the event of a disaster; he announced the Great California Shake Out is on October 21 and a crime prevention workshop geared toward seniors at the Senior Center by the Arcadia Police Department on July 8 and commented on the loss of UCLA Coach John Wooden and recited a few of his quotes. City Manager Don Penman announced the Relay for Life event on June 26 at Santa Anita Park and noted that the City has 3 teams made up of employees from the Police and Fire Departments and the Public Works Department; and encouraged everyone to participate or make a donation. 06 -15 -10 2. CITY CLERK'S REPORTS a. Annual Board and Commission Appointments. Recommended Action: Make Appointments 52:0092 City Clerk James Barrows provided a brief report on the board and commission appointments. Mr. Penman reported that an applicant who applied last year for a Human Resources Commission or Library Board appointment thought his application was still valid and therefore did not reapply; he discussed the open vacancy on the Human Resources Commission and noted that if the City Council would like to consider postponing an appointment to the Human Resources Commission until July 6 in order to consider the application. Council Member Segal noted that because the application does not have a time period on it, the applicant assumed his application was still valid and feels that it is appropriate to consider it. In response to a question by Council Member Kovacic, Mr. Penman responded that the applicant was Paul Cheng. Nominations by the City Council were made to appoint/reappoint members to the Historical Museum Commission, Human Resources Commission, Library Board of Trustees, Planning Commission, Recreation and Parks Commission and Senior Citizens' Commission. Nominations and Appointments: Historical Museum Commission (4 positions open: 2 recommended by the City Council and 2 recommended by the Arcadia Historical Society) Council Member Harbicht nominated Ruth Dunlop and Lee Segal for appointment to the Historical Museum Commission, as recommended by the Historical Museum Commission. Seeing no other nominations, Ruth Dunlop and Lee Segal were appointed to the Historical Museum Commission for four (4) year terms ending June 30, 2014. Council Member Segal abstained to the appointment of Lee Segal. Council Member Chandler nominated Ruth Gilb for appointment to the Historical Museum Commission. Council Member Segal nominated Victor Wu for appointment to the Historical Museum Commission. Seeing no other nominations, Ruth Gilb and Victor Wu were appointed to the Historical Museum Commission for four (4) year terms ending June 30, 2014. Human Resources Commission (1 position open): Council Member Harbicht nominated Patty Wong -Dion for appointment to the Human Resources Commission. Council Member Kovacic nominated Paul Cheng for appointment to the Human Resources Commission. 06 -15 -10 Roll Call: Mayor Amundson — Patty Wong -Dion Mayor Pro Tem Kovacic — Paul Cheng Council Member Chandler — Patty Wong -Dion Council Member Harbicht — Patty Wong -Dion Council Member Segal - Paul Cheng Seeing no other nominations, Patty Wong -Dion was appointed to the Human Resources Commission for a four (4) year term ending June 30, 2014. Library Board of Trustees (2 position open): Council Member Kovacic nominated Dorothy Denne and Anne Joseph for reappointment to the Library Board of Trustees. Seeing no other nominations, Dorothy Denne and Anne Joseph were reappointed to the Library Board of Trustees for four (4) year terms ending June 30, 2014. Planning Commission (3 positions open) Mayor Amundson announced that the City Council held Planning Commission interviews prior to the City Council meeting and reappointed Richard Beranek and Anthony Parrille and appointed Ching Chiao to the Planning Commission for four (4) year terms ending June 30, 2014. Recreation and Parks Commission (1 position open) 52:0093 Council Member Harbicht nominated John Curtis for reappointment to the Recreation and Parks Commission. Seeing no other nominations, John Curtis was reappointed to the Recreation and Parks Commission for a four (4) year term ending June 30, 2014. Senior Citizens' Commission (2 At Large City Council Appointment and 2 Service Club Appointment positions open): Council Member Harbicht nominated Ann Iarossi - Armenio for reappointment to the Senior Citizens' Commission (Service Club position) as recommended by the Golden Age Club. Seeing no other nominations, Ann Iarossi - Armenio was reappointed to the Senior Citizens' Commission (Service Club position) for a two (2) year term ending June 30, 2012. Council Member Harbicht nominated Carol Curtis for appointment to the Senior Citizens' Commission (Service Club position) as recommended by the Assistance League. Seeing no other nominations, Carol Curtis was appointed to the Senior Citizens' Commission (Service Club appointment) for a two (2) year term ending June 30, 2012. Council Member Harbicht nominated Gene Glasco for reappointment to the Senior Citizens' Commission appointment At -Large position (City Council appointment). Council Member Segal nominated Tammy Woloski for appointment to the Senior Citizens' Commission At -Large position (City Council appointment). 06 -15 -10 3. CONSENT CALENDAR REDEVELOPMENT AGENCY ITEMS: a. Approve the meeting minutes of Mav 17and May 18, 2010. Recommended Action: Approve g. 52:0094 Council Member Chandler nominated Monty Lindsey for appointment to the Senior Citizens' Commission At -Large position (City Council appointment). Roll Call: Mayor Amundson — Gene Glasco and Monty Lindsey Mayor Pro Tem Kovacic — Gene Glasco and Monty Lindsey Council Member Chandler — Gene Glasco and Monty Lindsey Council Member Harbicht — Gene Glasco and Monty Lindsey Council Member Segal - Gene Glasco and Tammy Woloski Seeing no other nominations, Gene Glasco was reappointed and Monty Lindsey was appointed to the Senior Citizens' Commission (City Council) At -Large positions for two (2) year terms ending June 30, 2012. b. Adopt Resolution No. ARA -234 authorizing the use of Redevelopment Funds for Public Improvements. Recommended Action: Adopt c. Adopt the Citv of Arcadia Statement of Investment Policy for Fiscal Year 2010 -2011. Recommended Action: Adopt CITY COUNCIL ITEMS: d. Approve the meeting minutes of Mav 17and Mav 18, 2010. Recommended Action: Approve e. Adopt the City of Arcadia Statement of Investment Policy for Fiscal Year 2010 -2011. Recommended Action: Adopt f. Adopt Resolution No. 6723 making findings pursuant to Health and Safety Code Section 33445, and authorizing the use of Redevelopment Agency Funds for Public Improvements. Recommended Action: Adopt Adopt Resolution No. 6728 establishing an Appropriation Limit for Fiscal Year 2010- 2011. Recommended Action: Adopt h. Adopt Ordinance No. 2271 adding Section 1090 to Chapter 9 of Article I of the Arcadia Municipal Code requiring persons filing legal action against the City challenging liability for taxes, assessments or fees to pay all said taxes, assessments, fees, interest and penalties as a condition precedent to seeking iudicial review. Recommended Action: Adopt 06 -15 -10 q. 52:0095 Authorize the City Manager to execute a one (1) year contract extension with Great Cleaning Service, Inc. for Janitorial and Porter Services for City Facilities in the amount of $229,173. Recommended Action: Approve J. Accept a gift in the amount of $40,000 from the Friends of the Arcadia Public Library for programs and materials for the Library. Recommended Action: Approve k. Direct the City Manager to review the City's Conflict of Interest Code pursuant to the Political Reform Act of 1974. Recommended Action: Approve I. Approve the revised classification specifications for Police Cadet (part-time) and Library Technician I /11. Recommended Action: Approve m. Accept all work performed by CJ Construction, Inc. for the 2009/10 Annual Asphalt and Concrete Program as complete and authorize the final payment to be made in accordance with the contract documents. Recommended Action: Approve n. Award a one (1) year purchase order contract extension to Waterline Technologies, Inc. for the purchase of Sodium Hvpochlorite to disinfect the City's domestic water supply in the amount of $45,000. Recommended Action: Approve o. Authorize the City Manager to execute an Agreement of Purchase and Sale of Property with KARE Youth League. Recommended Action: Approve p. Waive the formal bid process and approve Aardvark Tactical and Adamson Police Products as ballistic vest and police field tactical equipment vendors for the Police Department. Recommended Action: Approve Waive the formal bid process and approve Tom's Uniforms, West End Uniforms and Galls -Long Beach Uniform as uniform vendors for the Police Department. Recommended Action: Approve r. Authorize the City Manager to execute a Professional Services Agreement with All City Management Services for crossing guard services in the amount of $151,868. Recommended Action: Approve s. Authorize the City Manager to execute a Professional Services Agreement with Executive Information Services (EIS) for PS.NET Public Safety Software System Support Services in the amount of $21,800. Recommended Action: Approve 06 -15 -10 52:0096 t. Authorize the City Manager to execute a Professional Services Agreement with Inter - Con Security Systems, Inc. for parking enforcement services from July 1, 2010 to June 30, 2011 for an amount not to exceed $215,000. Recommended Action: Approve u. Authorize the retention of Studio Spectrum, Inc. in an amount not to exceed $27,000 to film, program and provide ancillary services related to the live and taped broadcast of City Council meetings during Fiscal Year 2010 -2011. Recommended Action: Approve v. Authorize the City Manager to execute a Professional Services Agreement with VCA Code Group and Scott Fazekas and Associates, Inc. for professional building plan review and related services for the Development Services Department. Recommended Action: Approve w. Authorize the City Manager to execute a three -year contract with "Just Brewed" to operate a coffee cart concession on the premises of the Arcadia Public Library. Recommended Action: Approve x. Award a purchase order contract to Baker & Taylor for the purchase of Books, DVDs and music products for the Arcadia Public Library in the amount of $135,000. Recommended Action: Approve It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Kovacic and carried on roll call vote to approve Consent Calendar items 3.a through 3.x. AYES: Council /Agency Member Chandler, Kovacic, Harbicht, Segal and Amundson NOES: None ABSENT: None 4. CITY MANAGER/AGENCY DIRECTOR ITEMS: Jason Kruckeberg, Assistant City Manager /Development Services Director reported that the Chamber of Commerce assists the City's economic development and marketing function by providing certain services such as reference and referral information about the City, preparing the monthly Community Calendar /Newsletter and annual Arcadia Business Directory, organizing and operating an annual Business Expo, organizing the annual Taste of Arcadia event, seminars and training sessions for merchants and business members and promoting the new "Shop Arcadia" campaign. He noted that that the Chamber requested a continuation of the contributions provided by the City and Agency ($62,000) for services to be provided by the Chamber for fiscal year 2010- 11. a. Authorize the City Manager to execute an Agreement for services with the Arcadia Chamber of Commerce in the amount of $62,000 for Fiscal Year 2010 -2011. Recommended Action: Approve It was moved by Council Member Chandler seconded by Council Member Harbicht and carried on roll call vote to authorize the City Manager to execute an Agreement for services with the Arcadia Chamber of Commerce in the amount of $62,000 for Fiscal Year 2010 -2011. 06 -15 -10 AYES: Council Member Chandler, Harbicht, Kovacic, Segal and Amundson NOES: None ABSENT: None 52:0097 b. Adopt Resolution No. ARA -235 authorizing the issuance of not to exceed $19,000,000 principal amount of subordinate tax allocation bonds on certain terms and conditions, approving a Continuing Disclosure Agreement, approving the form and distribution of a Preliminary Official Statement and financing documents, authorizing certain other official actions and providing for other matters relating thereto. Recommended Action: Adopt Adopt Resolution No. 6724 approving the issuance by the Arcadia Redevelopment Agency of its Central Redevelopment Project Subordinate Tax Allocation Bonds, Series 2010 (taxable) and making certain determinations relating thereto. Recommended Action: Adopt Jerry Schwartz, Economic Development Manager reported that at the March 16th Study Session, the Agency Board directed staff to work with the financing team to prepare a tax allocation bond issue for the Redevelopment Agency; he further reported that staff and the financing team put together a bond issue which will allow the Agency to pay its housing obligation and have adequate funding available for its priority redevelopment activities; and that the next step is to approve the bond documents and financing agreements with the financing team. He discussed and explained the 2010 A Bond issue and use of proceeds, the bond purchase contract, indenture of trust, the continuing disclosure Agreement and the steps to complete the Agency bond issue; he further explained the bond documents that must be approved by the City Council and the Agency before the bond issue can close and the Agency can receive its proceeds. He noted that the Agency will receive approximately $9 million in proceeds from the 2010 tax allocation bond issue and will use $4,045,715 to pay back the low /mod housing fund and the remainder to pursue priority redevelopment projects and activities; and the payment of the housing obligation will clear the existing HCD audit financing. It was moved by Agency Member Harbicht seconded by Agency Member Chandler and carried on roll call vote to adopt Resolution No. ARA -235 authorizing the issuance of not to exceed $19,000,000 principal amount of subordinate tax allocation bonds on certain terms and conditions, approving a Continuing Disclosure Agreement, approving the form and distribution of a Preliminary Official Statement and financing documents, authorizing certain other official actions and providing for other matters relating thereto. AYES: Agency Member Harbicht, Chandler, Kovacic, Segal and Amundson NOES: None ABSENT: None It was moved by Council Member Harbicht seconded by Council Member Chandler and carried on roll call vote to adopt Resolution No. 6724 approving the issuance by the Arcadia Redevelopment Agency of its Central Redevelopment Project Subordinate Tax Allocation Bonds, Series 2010 (taxable) and making certain determinations relating thereto. AYES: Council Member Harbicht, Chandler, Kovacic, Segal and Amundson NOES: None ABSENT: None 06 -15 -10 c. Report, discussion and direction regarding Oak Tree Racing Association at Santa Anita Park. Recommended Action: Provide Direction Jason Kruckeberg, Assistant City Manager /Development Services Director reported that Magna Entertainment, the former owner of the Race Track, declared bankruptcy in March 2009; that the new owner is MI Development; that MID recently announced that they voided the contract with Caruso regarding the Shops at Santa Anita Project; that MID subsequently met with Caruso Affiliated to renegotiate a deal and as of today there has been no news regarding the meeting. Mr. Kruckeberg also noted that on May 14th, MID announced they had voided their contact with Oak Tree at Santa Anita; that representatives at Oak Tree thought they had a 5 year contract with MID; on May 20 the California Horse Racing Board approved an option for Oak Tree to move its date to either Hollywood Park or Del Mar; discussions for a renegotiated deal between Oak Tree and Santa Anita was to take place on June 4, but MID did attend; that the Breeders Cup was about to sign a 5 year deal with Oak Tree, but that event was given to Churchhill Downs. He reported that on June 22, MID and Mr. Stronach will appear before the California Horse Racing Board to unveil their new business plan for horseracing in California. Mayor Segal recommended that Don Penman and Jason Kruckeberg attend the California Horse Racing Board on June 22, 2010; and that an item be placed on the June 23 Special Meeting agenda to provide an update on Oak Tree Racing at Santa Anita. In response to an inquiry by Council Member Kovacic regarding MID's commitment to reimburse the City money that it would have earned from Oak Tree, Council Member Segal responded that an amount of $185,000 was quoted by MID and was taken as a commitment, by himself and Council Member Harbicht. Council Member Kovacic suggested that the City should try to get the commitment in writing. Council Member Harbicht agreed that an item should be placed on the June 23 Special Meeting agenda to get an update of the June 22 Horse Racing Board meeting regarding Oak Tree Racing at Santa Anita Park; he also suggested that a future Study Session be scheduled regarding alternative uses of the race track property in the event the race track does not continue to be a race track. ADJOURNMENT The City Council /Redevelopment Agency adjourned at 9:55 p.m. to Tuesday, July 6, 2010, 6:00 p.m. in the City Council Chamber located at 240 W. Huntington Drive, Arcadia. By: James H. Barrows, City Clerk 52:0098 Lisa Mussenden Chief Deputy City Clerk/Records Manager 06 -15 -10