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HomeMy WebLinkAboutFebruary 3,2009CITY OF ARCADIA CITY COUNCIL /REDEVELOPMENT AGENCY REGULAR MEETING TUESDAY, FEBRUARY 3, 2009 AGENDA 5:30 p.m. Location: City Council Chamber Conference Room, 240 W. Huntington Drive CALL TO ORDER ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: Robert Harbicht, Mayor /Agency Chair John Wuo, Mayor Pro Tem /Agency Vice Chair Peter Amundson, Council /Agency Member Roger Chandler, Council /Agency Member Gary Kovacic, Council /Agency Member CLOSED SESSION /STUDY SESSION PUBLIC COMMENTS (5 minutes per person) Any person wishing to address the City Council /Redevelopment Agency during the Public Comments period is asked to complete a "Public Comments' card available in the Council Chamber Lobby. The completed form should be submitted to the City Clerk/Agency Secretary prior to the start of the Closed Session /Study Session. In order to conduct a timely meeting, there will be a five (5) minute time limit per person. All comments are to be directed to the City Council /Redevelopment Agency and we ask that proper decorum be practiced during the meeting. State law prohibits the City Council /Redevelopment Agency from discussing topics or issues unless they appear on the posted Agenda. CLOSED SESSION Pursuant to Government Code Section 54956(a) to confer with legal counsel regarding the case of Westfield. LLC, et al. v. City of Arcadia, et al. and Caruso Property Management. Inc. et al. (Real Parties in Interest) (Los Angeles Superior Court Case No. BS108923) and the case of Arcadia First! v. City of Arcadia and Magna Entertainment Corporation (Real Parties in Interest) (Los Angeles Superior Court Case No. BS108937). STUDY SESSION a. Report, discussion and direction regarding Mid Year Budget. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk's office located at 240 W. Huntington Drive, Arcadia, California, during normal business hours. 7:00 p.m., City Council Chamber RECONVENE CITY COUNCIL /REDEVELOPMENT AGENCY MEETING TO OPEN SESSION CALL TO ORDER INVOCATION Reverend Philip Wood, Church of the Good Shepherd PLEDGE OF ALLEGIANCE Hue Quach, Administrative Services Director ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: Amundson, Chandler, Kovacic, Wuo and Harbicht REPORT FROM CITY ATTORNEY /AGENCY COUNSEL ON CLOSED SESSION /SSTUDY SESSION ITEMS SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL PUBLIC COMMENTS (5 minutes per person) Any person wishing to address the City Council /Redevelopment Agency during the Public Comments period is asked to complete a "Public Comments" card available in the Council Chamber Lobby. The completed form should be submitted to the City Clerk /Agency Secretary prior to the start of the 7:00 p.m. Open Session. In order to conduct a timely meeting, there will be a five (5) minute time limit per person. All comments are to be directed to the City Council /Redevelopment Agency and we ask that proper decorum be practiced during the meeting. State law prohibits the City Council /Redevelopment Agency from discussing topics or issues unless they appear on the posted Agenda. REPORTS FROM MAYOR, CITY COUNCIL AND CITY CLERK CONSENT CALENDAR All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council /Redevelopment Agency request specific items be removed from the Consent Calendar for separate action. REDEVELOPMENT AGENCY ITEMS: a. Approve the Regular Meeting Minutes of January 20, 2009. Recommended Action: Approve Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk's office located at 240 W. Huntington Drive, Arcadia, California, during normal business hours. CITY COUNCIL ITEMS: Approve the Regular Meeting Minutes of January 20, 2009. Recommended Action: Approve C. Adopt Resolution No. 6670 denying Conditional Use Permit Application No. 08- Recommended Action: Adopt H Recommended Action: Approve 2. CITY MANAGER ITEMS: a. Authorize the City Manager to retain Lewis Events for event services at the City's 2009 July 4th celebration and waive the City's purchasing regulations relative to competitive bidding. Recommended Action: Approve a C. and recycling contract with Waste Management Inc (Continued from January 6, 2009) Recommended Action: Adopt Authorize the City Manager to execute a seven (7) year contract with Waste Management Inc. for the exclusive collection of residential refuse and recvclables for the City of Arcadia. Recommended Action: Approve (Update regarding proposed Utility Users Tax Ballot Measure Recommended Action: Receive and File e. Report on Study Session - Mid Year Budget. Recommended Action: Provide Direction ADJOURNMENT The City Council /Redevelopment Agency will adjourn this meeting in memory of Fred Coots, Henry K Quart and Oral Petty to Tuesday, February 17, 2009, 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (626) 574 -5455. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk's office located at 240 W Huntington Drive, Arcadia, California, during normal business hours. competitive bidding. Recommended Action: Approve 51:0007 CITY COUNCIL /REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, JANUARY 20, 2009 CALL TO ORDER Mayor Harbicht called the Meeting to order at 6:00 p.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Chandler, Wuo and Harbicht ABSENT: Council /Agency Member Kovacic A motion was made by Council /Agency Member Chandler seconded by Council /Agency Member Amundson to excuse Council /Agency Member Kovacic. CLOSED SESSION PUBLIC COMMENTS (5 minutes per person) None CLOSED SESSION a. Pursuant to Government Code Section 54956.9(b)(1) to confer with legal counsel regarding potential litigation —one (1) case. STUDY SESSION a. Report, discussion and direction regarding the proposed Museum Education Center. Carolyn Garner - Reagan, Director of Library and Museum Services explained that the Major Gift Committee of the Arcadia Historical Society is proposing to raise funds for a Museum Education Center to be built on the existing shuffleboards courts between the Ruth and Charles Gilb Historical Museum and the Community Center. Mrs. Garner - Reagan discussed the need for larger and more classroom space. She noted that funds for the building would be raised by the Arcadia Historical Society's Major Gift Committee and that approximately $10,000 has already been set aside for this project. She explained construction costs and noted that the City would incur an unknown fiscal impact related to staff time needed for the development of the design and construction supervision including maintenance of the building. The City Council unanimously approved, in concept, the proposed Museum Education Center however did not commit City funds at this time due to budget constraints. RECONVENE CITY COUNCIL /REDEVELOPMENT AGENCY MEETING TO OPEN SESSION Mayor Harbicht called the regular meeting to order in the Council Chamber at 7:00 p.m. 01 -20 -2009 51:0008 INVOCATION Reverend Terry Keenan, The Santa Anita Church PLEDGE OF ALLEGIANCE Director of Recreation and Community Services Sara Somogyi ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Chandler, Wuo and Harbicht ABSENT: Council /Agency Member Kovacic A motion was made by Council /Agency Member Chandler seconded by Council /Agency Member Amundson to excuse Council /Agency Member Kovacic. REPORT FROM CITY ATTORNEY /AGENCY COUNSEL ON STUDY SESSION /CLOSED SESSION ITEMS City Attorney Steve Deitsch reported that the City Council met in a closed session to consider the one (1) item listed on the posted agenda under closed session regarding an employment matter (anticipated litigation), no reportable action was taken. Mr. Deitsch also reported that the City Council also met in a Study Session to discuss and provide direction regarding a proposed Museum Education Center which would be a facility located on the existing Shuffleboard Court between the Ruth and Charles Glib Arcadia Historical Museum and the Community Center. The City Council approved, in concept the proposed project however did not commit City funds due to budget constraints. SUPPLEMENTAL INFORMATION FROM CITY MANAGER /EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS Mr. Penman noted that a corrected staff report regarding City Manager Item 3.b. (Joint Use Gymnasium Design at Dana Middle School) and a corrected last page of the January 6, 2009 City Council minutes were distributed prior to the meeting. MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by Council /Agency Member Amundson seconded by Council /Agency Member Chandler and carried on roll call vote to read all ordinances and resolutions by title only and waive the reading in full. PUBLIC HEARING CITY COUNCIL ITEMS: a. - Appeal of Planning Commission denial of Conditional Use Permit No. 08 -05 and Recommended Action: Approve 01 -20 -2009 51:0009 Jason Kruckeberg provided a brief overview regarding the appeal and parking requirements Jim Kasama presented the staff report regarding an appeal of the Planning Commission's denial of Conditional Use Permit Application No. 08 -05 to add tables and chairs for 18 patrons at an existing tea and yogurt shop located at 643 W. Duarte Road which included a parking modification request. He noted that the Development Services Department recommended that the City Council approve the Planning Commission's denial and uphold the denial of the application. He explained that the Planning Commission's denial was based on the determination that there was insufficient parking on the site to expand the use of the two take out only businesses. He further explained that the appellants contended that there was sufficient parking and the tea shop had been operating with tables and chairs since 2003 and was never made aware of the take out limitation. Mr. Kasama provided a brief history of the yogurt and tea shop. Mr. Kasama noted that the business license was issued subject to the condition that food and beverages were served on a take out only basis and that no seating for customers was allowed. He summarized the existing uses at the center and the corresponding number of required parking spaces based on the City's current parking requirements. Mr. Kasama recommended denial of Conditional Use Permit Application No.08 -05 due to the site's intense uses and parking deficiency. Mayor Harbicht opened the public hearing. John Yarmoski, Esq., representing the applicant appeared and explained that the yogurt shop is no longer in business and asked that the request be forwarded back to the Planning Commission for reconsideration. He explained the parking situation and due to the closure of the yogurt shop, parking may not be an issue. He presented a petition signed by 30 patrons in support of the business and a photograph of the area. A motion to close the public hearing was made by Council Member Chandler, seconded by Council Member Amundson and seeing no further objection, Mayor Harbicht declared the public hearing closed. It was moved by Council Member Chandler seconded by Council Member Amundson and carried on roll call vote to uphold the Planning Commission's decision to deny the appeal of Conditional Use Permit Application No. CUP 08 -05 and direct staff to prepare a resolution incorporating the City Council's decision and specific findings for adoption at the next scheduled City Council meeting. AYES: Council Member Chandler, Amundson, Wuo and Harbicht NOES: None ABSENT: Council Member Kovacic PUBLIC COMMENTS Kelley Linden, Chief Operating Officer of Methodist Hospital provided a report regarding construction and new changes that will take place over the next three years at Methodist Hospital. 01 -20 -2009 51:00010 REPORTS FROM THE MAYOR, CITY COUNCIL AND CITY CLERK Council Member Amundson noted that a dear friend of his, Phillip Ostegaurd gave him a book entitled "The Inspired Wisdom of Abraham Lincoln" for the Arcadia Public Library in memory of his wife, Irma, who recently passed away. He noted that Mrs. Osteguard was a teacher for 35 years and 25 years of those years were spent at Camino Grove School. He commented on the presidential inauguration and wished the new President well. Council Member Chandler commented on the presidential inauguration and wished the country well. Mayor Pro Tempore Wuo noted that he attended a seminar with Police Captain Gioia regarding human trafficking. He commented on the Neighborhood Watch Program. He announced that next week is Chinese New Year and wished everyone a Happy New Year. Mayor Harbicht commented on the inauguration; he announced the Mayor's Prayer Breakfast is on March 27 and invited the community to attend; he noted that the celebration will be "Arcadia one of the best places to raise your kids" which was named by Business Week Magazine and the guest speaker will be Dr. Laura Schlessinger who is a KFI radio host and a very strong advocate of children and children rights. He commented on the impact on the community if Santa Anita Race Track closed and a new development with homes, stores and offices were built. He also commented on the closure of Hollywood Park and Bay Meadows and the development projects anticipated for those spaces. City Clerk Barrows noted that at the last Presidential inauguration, he and his wife chaperoned the Arcadia High School Band to Washington, D.C. who performed. 2. CONSENT CALENDAR Approve the Regular Meeting Minutes of January 6, 2009. Recommended Action: Approve CITY COUNCIL ITEMS: Approve the Regular Meeting Minutes of January 6, 2009. Recommended Action: Approve C. Authorize the City Manager to execute a Professional Services Agreement Recommended Action: Approve d. Authorize the City Manager to execute a contract with West Tek Inc. for the Recommended Action: Approve 01 -20 -2009 51:00011 Appropriate $90.000 from the water fund to be added to the 2008 -09 Water Main Replacement Project for the design and construction of the Longden Blending Pipeline. Recommended Action: Approve Authorize the City Manager to execute a contract with Pardess Air to install air handlers for heating and cooling in the Library in the amount of $260,000. Recommended Action: Approve g. Award a purchase order to Creative Bus Sales Inc. for Arcadia Transit purchase of eight (8) paratransit replacement vehicles in an amount not to exceed $ 504,261. Recommended Action: Approve h. Authorize the City Manager to establish the hourly compensation rate for Reserve Officer Level II at PT21. Recommended Action: Approve Council /Agency Member Amundson requested that Consent Calendar Item 2.g be pulled for discussion. A motion was made by Council /Agency Member Chandler seconded by Council /Agency Member Amundson and carried on roll call vote to approve items 2.a through 2.f and 2.h on the City Council /Agency Consent Calendar. AYES: Council /Agency Member Chandler, Amundson, Wuo and Harbicht NOES: None ABSENT: Council /Agency Member Kovacic ABSTAIN: Mayor Harbicht (Consent Calendar Items 2.a and 2.b) At the request of Council /Agency Member Amundson regarding Consent Calendar Item 2.g, Phil Wray, Deputy Director of Development Services explained that the budgeted funds are restricted for transit purposes only. He explained that the funds are transit capital related and must be spent within a three year period. He noted that the current transit vans are beyond their serviceable life and have upwards of about 150,000 miles and need to be replaced. Mr. Penman noted that 80% of the money is federal transportation capitol money and cannot be used for any other purpose then transit capital projects. He further noted that the other 20% comes from Prop A money which also has to be used for transportation related purposes only. In response to a question by Mayor Harbicht regarding what other uses can be the money spent on, Mr. Wray responded that the monies can be used for bus stops, alternative fuel upgrades and retrofits as noted in the staff report, or a fueling station at the service center. He further responded that there are other uses but they all have to be related to transit service. Mr. Wray noted the money is closely monitored by the Federal Government and through the auditing process all monies are reported. Mr. Penman discussed the aftermarket conversion of the transit buses; he indicated that staff will conduct a more detailed analysis and bring back to a future Council meeting a report with a recommendation whether the City Council wishes to pursue the aftermarket conversion to CNG. 01 -20 -2009 51:00012 A motion was made by Council /Agency Member Amundson seconded by Council /Agency Member Chandler and carried on roll call vote to approve Consent Calendar item 2.g on the City Council /Agency Consent Calendar. AYES: Council /Agency Member Amundson, Chandler, Wuo and Harbicht NOES: None ABSENT: Council /Agency Kovacic 3. CITY MANAGER /EXECUTIVE DIRECTOR ITEMS: a. Approve an Alcohol Policy for the Ruth and Charles Gilb Arcadia Historical Museum. Recommended Action: Approve Carolyn Garner - Reagan, Director of Library and Museum Services provided the staff report regarding the establishment of an Alcohol Policy to allow beer, white wine and champagne at the Ruth and Charles Glib Historical Museum. She noted that the policy was approved by the Arcadia Historical Commission. She further noted that alcohol has been served at certain events at Museum since it opened in 2001. She advised that City Attorney Steve Deitsch has reviewed the Alcohol Policy and recommended changes which were included. Mr. Penman noted that the only two City events where alcohol is served are the Commissioner's Dinner and the Volunteer Silver Circle and any other event that may appear to be a City event is usually sponsored by an outside group such as an employee association. At the request of Council Member Chandler, Mr. Deitsch explained potential liability relating to alcohol. In response to an inquiry by Mr. Penman regarding outside groups, Ms. Garner - Reagan responded that there is a Museum Patio Policy which allows non - profit groups to rent the museum however due to scheduling conflicts the. patio has never been rented out. She indicated that she is in the process of submitting to the Museum Commission a revised Museum Patio Policy similar to the Community Center policy that allows outside groups to obtain an ABC liquor license. A motion was made by Council /Agency Member Chandler seconded by Mayor Harbicht and carried on roll call vote to adopt an Alcohol Policy for the Ruth and Charles Gilb Arcadia Historical Museum. AYES: Council /Agency Member Chandler, Harbicht, Amundson and Wuo NOES: None ABSENT: Council /Agency Member Kovacic b. Presentation of the Joint Use Gymnasium Design at Dana Middle School. Recommended Action: Receive and file Sara Somogyi, Director of Recreation and Community Services presented the staff report regarding the Joint Use Gymnasium Design at Dana Middle School. She noted that in January 2008, the Arcadia Unified School District and the City Arcadia applied for a grant from the State fora joint use gymnasium at Dana Middle School and in August 2008 learned the project site and grant were approved. She further noted that State has allocated $1.5 million dollars to the 01 -20 -2009 51:00013 project but currently the funds are frozen until the State decides its funding sources which will be reevaluated in July. She noted that staff and the Arcadia Unified School District have been meeting with LPA, the architectural firm designing the gymnasium at Dana Middle School because of certain approval processes and deadlines that have to be completed through the State Department of Architecture. Noah Toomey of LP Architecture was present and provided a PowerPoint overview of the gymnasium design. It was the consensus of the City Council to receive and file the report as presented. C. Authorize the Executive Director to execute a Rent Subsidy Agreement with the Recommended Action: Approve Jason Kruckeberg, Development Services Director noted that the Redevelopment Agency approved a Purchase and Sale Agreement with the Church in Arcadia at 21 Morlan Place and sold it a site on Live Oak Avenue for a new church building. He further noted that the Purchase and Sale Agreement included a provision for paying the Church up to $2,000 per month for relocation costs if it were to relocate temporarily to another site in order to facilitate the Rusnak expansion. He advised that the Church is in the process of relocating and the costs of the temporary facilities are higher than provided in the Purchase and Sale Agreement. He further advised that Rusnak has moved into the self- storage building and an agreement has been successfully worked out with Rusnak which allows them the ability to park cars on the 21 Morlan Place site. Jerry Schwartz, Economic Development Manager reported that the City has been working with the Church in Arcadia to find them an alternative location. He further reported that arrangements have been made with the School District to have the Church use Dana Middle School for their Sunday morning congregational services and meetings. He noted that for Church office use and leadership activities they will be leasing office space at 43 E. Huntington Drive. He advised that the office space lease is $1,000 per month and the School District is $750 per use or $3,000 per month which combined exceeds the $2,000 in relocation costs as provided for in the Purchase and Sales Agreement by about $2,000. He further noted that the Agreement provides for relocation costs for 18 months or until they move into the Live Oak facility. He further advised that the City Attorney has already prepared a Rent Subsidy Agreement that serves as an amendment to the Purchase and Sales Agreement to cover the additional relocation costs for the additional $2,000 or $4,000 per month. Mr. Schwartz noted that the Agency will receive close to $36,000 in rent payments from its leases with Rusnak which would offset this additional appropriation. A motion was made by Council /Agency Member Chandler seconded by Mayor Pro Tem /Agency Vice Chair Wuo and carried on roll call vote to authorize the Executive Director to execute a Rent Subsidy Agreement with the Church in Arcadia and appropriate $36,000 from the Agency's unprogrammed reserves to fund the cost of the agreement. AYES: Council /Agency Member Chandler, Wuo, Amundson and Harbicht NOES: None ABSENT: Council /Agency Member Kovacic 01 -20 -2009 51:00014 d. Authorize a budget allocation of $76,000 from the Redevelopment Agency's Unprogrammed Reserves to make payments to school districts under Assembly Bill 1389. Recommended Action: Approve Jerry Schwartz, Economic Development Manager explained that AB 1389, a trailer bill, was passed as part of the 2008 -09 State budget which requires redevelopment agencies to report to the County its pass through payments of tax increment to all taxing entities, including school districts and other special districts. He further explained that the Redevelopment Agency has complied by making such payments over the required four year period but the County has claimed that the Redevelopment Agency owes an additional $76,000. He noted that the Redevelopment Agency has sent a letter to the Los Angeles County Auditor - Controller disputing their method of calculation and other redevelopment agencies have done the same. He further noted that AB 1389 requires that payments owed to school districts, even if cities have disputed, be paid by February 1 or all Agency activities can be shut down. A motion was made by Council /Agency Member Chandler seconded by Mayor Pro Tem /Agency Vice Chair Wuo and carried on roll call vote to authorize a budget allocation of $76,000 from unprogrammed Agency funds to make additional pass through payments to school districts as required by AB 1389. AYES: Council /Agency Member Chandler, Wuo, Amundson and Harbicht NOES: None ABSENT: Council /Agency Member Kovacic ADJOURNMENT The City Council /Redevelopment Agency adjourned this meeting in memory of Hal Libby and Fred Kennedy at 8:47 p.m. to Tuesday, February 3, 2009, 5:30 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. James H. Barrows, City Clerk i I By: Lisa Mussenden, Chief Deputy City Clerk/ Records Manager 01 -20 -2009 STAFF REPORT Development Services Department DATE: February 3, 2009 TO: Arcadia City Council FROM: Jason Kruckeberg, Development Services Directoroz By: Jim Kasama, Community Development Administrator+ Prepared By: Steven Lee, Assistant Planner h— SUBJECT: RESOLUTION NO. 6670 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA DENYING CONDITIONAL USE PERMIT YOGURT SHOP TO ADD SEATING FOR 18 PATRONS AT 643 W.- DUARTE ROAD. SUMMARY On January 20, 2009, the City Council voted 4 to 0, with one member absent, to deny the appeal of Conditional Use Permit Application No. CUP 08 -05, and the related parking modification, to add seating for 18 patrons at an existing 2,390 square -foot cafe and yogurt shop at 643 W. Duarte Road. Both businesses were issued business licenses with a condition prohibiting tables and chairs for customers. The City Council denied CUP 08 -05 and the related parking modification after determining that the subject property did not contain adequate parking facilities to accommodate two additional eating establishments. Attached is Resolution No. 6670 and the staff report from the January 20, 2009 meeting. RECOMMENDATION The Development Services Department recommends that the City Council adopt Resolution No. 6670, thereby formalizing denial of the appeal of Conditional Use Permit Application No. CUP 08 -05. Approved by: Donald Penm n, City Manager Attachment: Resolution No. 6670 City Council Staff Report from January 20, 2009 RESOLUTION NO. 6670 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DENYING CONDITIONAL USE PERMIT APPLICATION NO. CUP 08 -05 AND THE RELATED PARKING MODIFICATION FOR AN EXISTING 2,390 SQUARE -FOOT CAFE AND YOGURT SHOP TO ADD SEATING FOR 18 PATRONS AT 643 W. DUARTE ROAD. WHEREAS, on June 13, 2008, a Conditional Use Permit application was filed by Boba Tea Zone, Inc. for an existing 2,390 square -foot caf6 and yogurt shop to add seating for 18 patrons; Development Services Department Case No. CUP 08 -05, at property commonly known as 643 W. Duarte Road; and WHEREAS, a public hearing was held on November 25, 2008, at which time all interested persons were given full opportunity to be heard and to present evidence; and WHEREAS, on December 9, 2008 the Planning Commission voted 4 to 0, with one member absent, to adopt Planning Commission Resolution No. 1784 denying CUP 08 -05; and WHEREAS, on December 15, 2008, Planning Commission Resolution No. 1784 was appealed to the City Council; and WHEREAS, a duly noticed public hearing was held before the, City Council on January 20, 2009, at which time all interested persons were given full opportunity to be heard and to present evidence. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA HEREBY RESOLVES AS FOLLOWS: SECTION 1. That the factual data provided by the Development Services Department in the staff report dated January 20, 2009 is true and correct. SECTION 2. This Council finds: A. That the of the Conditional Use Permit would be detrimental to the public health and welfare, and injurious to the property and improvements in the zone or vicinity because the existing on -site parking facilities are inadequate to support the proposed eating establishments. B. That the use applied for at the location indicated is properly one for which a Conditional Use Permit is authorized; however, the applicant could not satisfy the parking requirements for the requested conditional use as specified in Section 9269.5 et seq, of the Arcadia Municipal Code. 1 Resolution No. 6670 C. That the site for the proposed use is not adequate in size and shape to accommodate said use due to inadequate on -site parking. D. That the site abuts streets and highways adequate in width and pavement type to carry the kind of traffic generated by the proposed use, but the on -site parking is insufficient to accommodate the proposed use. E. That the granting of such Conditional Use Permit will adversely affect the comprehensive General Plan because there is insufficient on -site parking to accommodate the proposed use, which would be detrimental to the public welfare. F. That the proposed project is a minor alteration of an existing facility and is therefore exempt from the California Environmental Quality Act (Class 1 Categorical Exemption, Section No. 15301). SECTION 3. That for the foregoing reasons this Council denies Conditional Use Permit Application No. CUP 08 -05 and the related parking modification to allow an existing 2,390 square -foot cafe and yogurt shop to add seating for 18 patrons at 643 W. Duarte Road. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this 3` day of February, 2009. Mayor of the City of Arcadia ATTEST: City Clerk of the City of Arcadia APPROVED AS TO FORM: Stephen P. Deitsch City Attorney 2 Resolution No. 6670 STAFF REPORT Development Services Department DATE: January 20, 2009 TO: FROM: SUBJECT: SUMMARY Arcadia City Council Jason Kruckeberg, Development Services Director;,7.4 By: Jim Kasama, Community Development Administrator( Prepared By: Steven Lee, Assistant Planner T Conditional Use Permit Application No. CUP 08 -05 was submitted by Boba Tea Zone Inc. and Pingo Yogurt to add seating for 18 patrons at an existing 2,390 square -foot caf6 and yogurt shop at 643 W. Duarte Road. This application includes a parking modification request of 213 parking spaces in lieu of 329 required by Code. The Planning Commission, at its regular meeting of November 25, 2008, voted 4 -1 to deny Conditional Use Permit Application No. CUP 08 -05 based on the determination that there was insufficient parking on the site for two (2) additional eating establishments. On December 9, 2008, the Planning Commission adopted Resolution No. 1784, thereby formalizing the denial of CUP 08 -05. Attached is an excerpt from the minutes of the November 25, 2008 Planning Commission meeting, the Planning Commission Staff Report, and Planning Commission Resolution No. 1784. On December 16, 2008, the applicants submitted an appeal of the Planning Commission's denial. The Development Services Department is recommending that the City Council uphold the Planning Commission's decision and deny the appeal. BACKGROUND In December 2003, the Development Services Department issued a business license to Boba Tea Zone, Inc. (dba Lollicup), subject to the condition that food and beverages be served on a take -out only basis and that there be no seating for customers. Take -out only eateries are considered retail uses and do not require a Conditional Use Permit. In July of this year, Pingo Yogurt was issued a business license subject to the same condition. The space currently occupied by Pingo Yogurt was previously a retail area for the sales of books and music. Both businesses have been issued citations by Code Services after staff discovered that tables and chairs were added in violation of the business license approvals. The applicants are proposing to expand the two (2) existing businesses in the same unit (the tea cafa and yogurt shop) to allow seating for a total of 18 patrons as shown on the floor plan in the attached Planning Commission Staff Report. Such an expansion would classify both businesses as "eating establishments," which cannot operate without an approved Conditional Use Permit (Arcadia Municipal Code Section 9275.1.45.1). Eating establishments are defined as businesses selling prepared food or beverages where customers may eat or drink the food or beverages anywhere on the premises or parking lot. This conversion of the retail uses to eating establishments does not involve any exterior alterations to the structure; only the addition of tables and chairs as shown on the proposed floor plan. The subject property is located in the Arcadia Center (627 -655 W. Duarte Road — see the aerial photo and site plan in the attached Planning Commission Staff Report) a large commercial center containing a mix of retail stores, banks, and several intense uses such as a large supermarket, a tutoring center, and four (4) sit -down restaurants. There are also two (2) take -out food establishments. All of these intense uses were approved prior to the renovation of the center in 2004, when the center was underutilized and traffic volumes were much lower than the traffic volumes of today. The intense uses, while acceptable at the time of approval due to very different conditions at the center, have gradually led to an overall parking shortage as the center has grown in popularity. The following table summarizes the existing uses at the center and the corresponding number of required parking spaces based on the City's current parking requirements: Arcadia Center — 627 -655 W. Duarte Rd. Existing Uses and Parking Requirements Appeal of CUP 08 -05 643 W. Duarte Rd. January 20, 2009 — page 2 Parking Unit# Use Sq. Ftq. Required Notes 627 Restaurant 3,400 34 CUP 99 -10 629 Jewelry store 1,360 7 631 Pharmacy 1,400 7 633 Yogurt shop 1,400 7 No tables or chairs 635 -637 Bank 3,500 14 639 Restaurant 2,094 21 CUP 01 -04 641 Tutoring school 2,500 43 CUP 98 -02 643" Caf6 & yogurt shop 2,390 12 645 Supermarket 22,000 110 CUP 02 -15 651 Cosmetics store 644 3 651A Bakery 1,166 6 651B Restaurant 640 3 Legal nonconforming 651C Take- out caf6 1,102 6 651D Clothing boutique 980 5 651E Take -out cafa 942 5 651F /G Restaurant 1,850 19 CUP 01-16 653 Salon 700 4 655 Silk store 900 5 655B Optometrist 1,020 5 /A ATM (bank) 200 1 _N Totals: 50,188 317 *Subject unit Appeal of CUP 08 -05 643 W. Duarte Rd. January 20, 2009 — page 2 With only 213 parking spaces provided on -site, the center is currently deficient by 104 parking spaces. Approval of two (2) additional eating establishments would further increase the deficiency because the parking requirement is greater for eating establishments than for retail uses (10 spaces per 1,000 square feet of floor area for restaurants /eating establishments versus 5 spaces per 1,000 square feet for retail). Pursuant to the City's current parking regulations, a 2,390 square -foot eating establishment would require 24 parking spaces, or 12 spaces more than would be required if the space were to be occupied by a take -out only (retail) food service use. As a result, the parking deficiency at the center would increase from 104 to 116 spaces; 213 in lieu of 329 spaces required overall. In order to more accurately assess the current parking situation at the site, the Development Services Department asked the applicants to provide a parking survey. Their survey (attached to the Planning Commission Staff Report attachment) was conducted by Lollicup staff between Monday, October 13, 2008 and Sunday, October 19, 2008, provides the numbers of vacant parking spaces at the center between the hours of 11:00 a.m. and 9:00 p.m., recorded at one -hour intervals. The survey data suggests that parking availability fluctuates widely based on the time of day and the day of the week, and that there were never less than 42 spaces available, even during peak hours. In general, parking demand was highest during lunch and dinner hours due to the many restaurants and eating establishments at the center. Staff inspected the site on two (2) occasions to verify the accuracy of the survey data and found the parking deficiency to be worse than the survey indicates. For example, on a Wednesday at 12:00 noon, staff counted 33 vacant spaces while the survey counted 49 available spaces at the same time on a Wednesday. Additionally, most of the vacant spaces were located behind the supermarket, not in the main parking area where most people prefer to park. Staff counted only 13 vacant spaces in the main parking area and many of those were restricted for the disabled or labeled for bank only parking. Based on the survey data and recent site visits, staff believes that allowing two (2) additional eating establishments would aggravate an already severe parking shortage. Although the applicants are proposing to add only 18 seats, staff believes the subject center already has one of the most severe parking shortages of any center in the city, and therefore, the additional deficiency would be significant. Furthermore, the Planning Commission has denied two (2) other Conditional Use Permit applications for eating establishments at the same shopping center due to concerns about parking: In February 2007, the Planning Commission denied application no. CUP 07 -02 for a restaurant with seating for 33 patrons, and in January 2005, the Planning Commission denied application no. CUP 05 -01 for a teahouse with seating for eight (8) patrons. In both cases, the parking shortage was cited as the reason for denial. PLANNING COMMISSION ACTION The Planning Commission, at its regular meeting of November 25, 2008, voted 4 -1 to deny Conditional Use Permit Application No. CUP 08 -05. The Commission" concurred with staff's determination that the subject property did not have adequate parking facilities to serve two (2) additional eating establishments. On December 9, 2008, the Planning Commission adopted Resolution No. 1784, thereby formalizing the denial of application no. CUP 08 -05. Appeal of CUP 08 -05 643 W. Duarte Rd. January 20, 2009 — page 3 APPEAL REQUEST On December 16,-2008, the applicants submitted the attached appeal of the Planning Commission's denial. The applicants have two (2) primary arguments. First, they contend that the shopping center has adequate parking facilities to support the proposed eating establishments since the parking survey indicates that the parking lot was never more than 80 percent occupied. However, as staff has already indicated; in actuality, the subject shopping center has one of the most severe parking shortages of any center in the city, and many of the available parking spaces are located behind the supermarket, where most patrons do not park. The applicant's second contention is that Lollicup has been operating since 2003 with tables and chairs, and that the applicant was never informed of the take -out only restriction. However, the original business license approval from 2003 clearly states that no tables or chairs are permitted. And, beginning in April 2008, the Business License Office acquired the capability to note conditions of approval on the business license certificate. The most recent business license certificate issued to Lollicup includes a condition stating that no tables and chairs are permitted. Copies of the form and certificate are attached. ENVIRONMENTAL ASSESSMENT Pursuant to the provisions of the California Environmental Quality Act, the Development Services Department has determined that the proposed project is a minor alteration of an existing facility, and is therefore categorically exempt from CEQA (Class 1, Section 15301). A Preliminary Exemption Assessment is included with the attached Planning Commission Staff Report. RECOMMENDATION The Development Services Department recommends denial of the appeal of Conditional Use Permit Application No. CUP 08 -05 due to the site's intense uses and parking deficiency. If the City Council determines, based on the evidence presented, that the proposed eating establishments are appropriate uses at this site and moves to approve Conditional Use Permit Application No. CUP 08 -05, staff recommends the following conditions of approval: 1. The eating establishments approved by CUP 08 -05 shall be operated and maintained in a manner that is consistent with the proposal and plans (a 2,390 square -foot eating establishment with seating for up to 18 patrons) submitted and conditionally approved for CUP 08 -05, subject to the satisfaction of the Development Services Director. 2. The approval of CUP 08 -05 includes a parking modification of 213 spaces in lieu of 329. This modification is approved only for the specific combination of uses approved by CUP 08 -05, and not for the building and /or site in general. 3. Noncompliance with the plans, provisions and conditions of approval for CUP 08 -05 shall be grounds for immediate suspension or revocation of any approvals, which could result in the closing of the eating establishments. 4. All City code requirements regarding accessibility, egress, fire protection, occupancy limits, and safety shall be complied with to the satisfaction of the Building Official and the Fire Marshal. Appeal of CUP 08 -05 643 W. Duarte Rd. January 20, 2009 — page 4 5. Approval of CUP 08 -05 shall not take effect until the property owner(s), and applicant(s) have executed and filed the Acceptance Form available from the Development Services Department to indicate awareness and acceptance of these conditions of approval. 6. The applicant shall defend, indemnify, and hold harmless the City of Arcadia and its officers, employees, and agents from and against any claim, action, or proceeding against the City of Arcadia, its officers, employees or agents to attack, set aside, void, or annul any approval or condition of approval of the City of Arcadia concerning this project and /or land use decision, including but not limited to any approval or condition of approval of the City Council, Planning Commission, or City Staff, which action is brought within the time period provided for in Government Code Section 66499.37 or other provision of law applicable to this project or decision. The City shall promptly notify the applicant of any claim, action, or proceeding concerning the project and /or land use decision and the City shall cooperate fully in the defense of the matter. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter. CITY COUNCIL ACTION Denial The City Council should move to deny the appeal of Conditional Use Permit Application No. CUP 08 -05 and direct staff to prepare a resolution incorporating the Council's decision and specific findings for adoption at the next meeting. Approval If the City Council intends to approve Conditional Use Permit Application No. CUP 08 -05, the Council should move to approve and direct staff to prepare a resolution for adoption at the next meeting that incorporates the Council's decision, findings, and conditions of approval. Approved by: Donald Penman, City Manager Attachments: Planning Commission Meeting Minutes Excerpt Planning Commission Staff Report Planning Commission Resolution No. 1784 Appeal Letter Business License Approval Form and Certificate Appeal of CUP 08 -05 643 W. Duarte Rd. January 20, 2009 — page 5 y asoy y4 MINUTES � ARCADIA PLANNING COMMISSION Tuesday, November 25, 2008, 7:00 P.M. Arcadia City Council Chambers EXCERPT 3. CONDITIONAL USE PERMIT NO. CUP 08 -05 643 W. Duarte Road Boba Tea Zone, Inc. and Pingo Yogurt The applicant is requesting a Conditional Use Permit and parking modification for a 2,390 square -foot cafe and yogurt shop to have seating for 18 patrons. The staff report was presented by Assistant Planner, Steven Lee. The public hearing was opened. Mr. Joseph Lee, the applicant, said that his business has existed at the present site for the last five years with tables and chairs and there has never been a problem. He noted, that since he has been told to remove the tables and chairs his business has fallen by fifty percent. Mr. Joseph Lee said that he feels since the tables and chairs have not been a problem in the last five years it is not reasonable to force him to remove them now. In addition, Mr. Joseph Lee said he personally conducted a parking survey and that there were always 20% of the spaces available. Commissioner Baderian asked the applicant if he would comply with the recommendations in the staff report, and Mr. Joseph Lee said that he is not sure of the meaning of recommendation 2. Assistant Planner, Mr. Steven Lee explained that staff is recommending denial of this project. However, should the Commission decide to approve the project, item 2 states that the parking modification is approved along with the project. The applicant said he concurred with the recommended conditions. Commissioner Baerg asked the applicant how many chairs he had been using at the restaurant. The applicant said they used to have twelve chairs but they have all been removed. Chairman Beranek asked if there was anyone else who wanted to speak in favor of the application. There was not. Chairman Beranek asked if anyone would like to speak in opposition to the project. There was not. MOTION: It was moved by Commissioner Parrille, seconded by Commissioner Baderian, to close the public hearing. Without objection the public hearing was closed. Commissioner Baderian asked if the original business license included approval for tables and chairs. Assistant Planner Lee explained that the original business license was issued with the condition that there would not be any tables or chairs. Commissioner Baerg pointed out that the applicant says that his business is suffering significantly without the tables and chairs and that to. approve the application would only maintain the status quo. Commissioner Hsu noted that similar proposals were denied in the recent past. Commissioner Parrille said that traffic congestion,, along with parking, is a problem at the center and that the tables and chairs have probably exacerbated the problem. Commissioner Baderian said that it is important to remain consistent with past decisions. In addition, he noted that the center is already deficient by at least 100 parking spaces. Chairman Beranek said that the center has serious parking deficiencies and if this application is approved it will encourage other take -out eating establishments. to apply for a Conditional Use Permit to add seating. MOTION: It was moved by Commissioner Baderian, seconded by Commissioner Parrille, to deny Conditional Use Permit No. CUP 08 -05. ROLL CALL: AYES: Commissioners Baderian, Hsu, Parrille and Beranek NOES: Commissioner Baerg A Resolution reflecting the decision of the Planning Commission will be presented for adoption at the next Commission meeting. There is a five working day appeal period after the adoption of the Resolution. PC MINUTES EXCERPT 11 -25 -08 STAFF REPORT Development Services Department November 25, 2008 TO: Arcadia Planning Commission FROM: Jim Kasama, Community Development Administrator By: Steven Lee, Assistant Planner SUBJECT: Conditional Use Permit Application No. CUP 08 -05 and the related parking modification to operate a 2,390 square -foot cafe and yogurt shop with seating for 18 patrons at 643 W. Duarte Road SUMMARY Conditional Use Permit Application No. CUP 08 -05 proposes to convert a retail unit within an existing commercial center into a 2,390 square -foot cafe and yogurt shop with seating for 18 patrons. The Development Services Department is recommending denial of Conditional Use Permit Application No. CUP 08 -05 because there is insufficient parking on the site for two additional eating establishments. GENERAL INFORMATION APPLICANT: Boba Tea Zone, Inc. and Pingo Yogurt LOCATION: 643 W. Duarte Road REQUEST: A Conditional Use Permit and parking modification to allow a 2,390 square -foot cafe and yogurt shop with seating for 18 patrons SITE AREA: Approximately 110,932 square feet (2.55 acres) FRONTAGES: Approximately 389 feet along West Duarte Road and 310 feet along Arcadia Avenue EXISTING LAND USE & ZONING: The site is developed with a large commercial center (Arcadia Center) containing a supermarket, a tutoring center, several restaurants, and a mix of retail stores and banks. A total of 213 parking spaces are provided on -site. EXISTING LAND USE & ZONING: The site is developed with a large commercial center (Arcadia Center) containing a supermarket, a tutoring center, several restaurants, and a mix of retail stores and banks. A total of 213 parking spaces are provided on -site. GENERAL PLAN DESIGNATION: Commercial SURROUNDING LAND USES & ZONING: North: Multiple - family residential, zoned R -3 South: General and medical /dental offices, zoned C -2 East: Medical /dental offices,.zoned C -0 West: Mixed commercial, zoned C -2 , BACKGROUND In December 2003, Boba Tea Zone, Inc. (dba Lollicup) was issued a business license subject to the condition that food and beverages would be served on a take- out only basis and that there should be no seating for customers. Take -out eateries are considered retail uses and do not require a Conditional Use Permit. In July of this year, Pingo Yogurt was issued a business license subject to the same condition. The space currently occupied by Pingo Yogurt was previously a retail area selling books and music. Both businesses have been issued citations by Code Services after staff discovered that tables and chairs were added in violation of the business license approvals. PROPOSAL AND ANALYSIS The applicants are proposing to expand two existing businesses in the same unit (a tea cafe and yogurt shop) to allow seating for a total of 18 patrons. Such an expansion would classify both businesses as "eating establishments," which cannot operate without an approved Conditional Use Permit (Arcadia Municipal Code Section 9275.1.45.1). Eating establishments are defined as businesses selling prepared food or beverages where customers may serve themselves and may eat or drink the food or beverages anywhere on the premises or parking lot. Conversion of the retail uses to eating establishments will not involve any exterior alterations to the structure; only the addition of tables and chairs as shown on the proposed floor plan. The subject property is located in Arcadia Center (627 -655 W. Duarte Road) a major commercial center containing a mix of retail stores, banks, and several intense uses such as a large supermarket, a tutoring center, and four (4) sit -down restaurants. There are also a few take -out food establishments. All of the intense uses were approved prior to the renovation of the center in 2004, when the center was CUP 08 -05 643 W. Duarte Rd. November 25, 2008 — page 2 underutilized and traffic volumes were much lower than the traffic volumes of today. The intense uses, while acceptable at the time of approval due to very different conditions at the center, have gradually led to an overall parking shortage as the center has grown in popularity. The following table summarizes the existing uses at the center and the corresponding number of required parking spaces based on the City's current parking requirements: Arcadia Center — 627 -655 W. Duarte Rd. — Existing Uses and Parking Requirements *Subject unit With only 213 stalls provided on -site, the center is currently deficient by 104 parking spaces. Approval of two additional eating establishments would further increase the deficiency because the parking requirement is greater for eating establishments than for retail uses (10 spaces per 1,000 square feet of floor area for restaurants /eating establishments and 5 spaces per 1,000 square feet for retail). Pursuant to the City's current parking regulations, 2,390 square -feet of eating establishment would require 24 parking spaces, or 12 spaces more than would be required if the space were to be a retail /take -out only use. As a result, the parking deficiency at the center would increase from 104 to 116 spaces; 213 in lieu of 329 spaces required overall. In order to more accurately assess the current parking situation, the Development Services Department asked the applicants to provide a parking survey. The staff of Loilicup submitted the attached survey, which was conducted between Monday, October 13, 2008 and Sunday, October 19, 2008. The week -long survey provides the numbers of vacant or available parking spaces at the center between the hours of 11:00 a.m. and 9:00 p.m., recorded at one -hour intervals. The survey indicates that parking availability fluctuates widely based on the time of day and the day of the week, and that there were never less than 42 spaces available, even during peak CUP 08 -05 643 W. Duarte Rd. November 25, 2008 — page 3 Parking Unit # Use Sc. Fta. Required Notes 627 Restaurant 3,400 34 CUP 99 -10 629 Jewelry store 1,360 7 631 Pharmacy 1,400 7 633 Vacant (future yogurt shop) 1,400 7 635 -637 Bank 3,500 14 639 Restaurant 2,094 21 CUP 01 -04 641 Tutoring school 2,500 43 CUP 98 -02 643* Caf6 & yogurt shop 2,390 12 645 Supermarket 22,000 110 CUP 02 -15 651 Cosmetics store 644 3 651A Bakery 1,166 6 6518 Restaurant 640 3 Legal nonconforming 651C Take- out caf6 1,102 6 651D Clothing boutique 980 5 651E Take- out caf6 942 5 651F /G Restaurant 1,850 19 CUP 01 -16 653 Salon 700 4 655 Silk store 900 5 655B Optometrist 1,020 5 N/A ATM (bank) 200 1 Totals: 50,188 317 *Subject unit With only 213 stalls provided on -site, the center is currently deficient by 104 parking spaces. Approval of two additional eating establishments would further increase the deficiency because the parking requirement is greater for eating establishments than for retail uses (10 spaces per 1,000 square feet of floor area for restaurants /eating establishments and 5 spaces per 1,000 square feet for retail). Pursuant to the City's current parking regulations, 2,390 square -feet of eating establishment would require 24 parking spaces, or 12 spaces more than would be required if the space were to be a retail /take -out only use. As a result, the parking deficiency at the center would increase from 104 to 116 spaces; 213 in lieu of 329 spaces required overall. In order to more accurately assess the current parking situation, the Development Services Department asked the applicants to provide a parking survey. The staff of Loilicup submitted the attached survey, which was conducted between Monday, October 13, 2008 and Sunday, October 19, 2008. The week -long survey provides the numbers of vacant or available parking spaces at the center between the hours of 11:00 a.m. and 9:00 p.m., recorded at one -hour intervals. The survey indicates that parking availability fluctuates widely based on the time of day and the day of the week, and that there were never less than 42 spaces available, even during peak CUP 08 -05 643 W. Duarte Rd. November 25, 2008 — page 3 hours. In general, parking demand was highest during lunch and dinner hours due to the many restaurants and eating establishments at the center. In staffs opinion, the numbers in the parking survey seem inflated. Staff inspected the site on ,two occasions to verify the accuracy of the survey data and found the parking deficiency to be worse than the survey indicates. For example, on a recent Wednesday at 12:00 noon, staff counted 33 vacant spaces while the survey counted 49 spaces at the same time on a Wednesday. Additionally, most of the vacant spaces were located behind the supermarket, not in the main parking area where most people prefer to park. Staff counted only 13 vacant spaces in the main parking area and many of those were handicap or labeled for bank only parking. Based on the survey data and recent site visits, staff believes that allowing two additional eating establishments would aggravate an already .severe parking shortage. Although the applicants are only proposing to add 18 seats, staff believes the cumulative impact will be significant. Furthermore, the Planning Commission has denied two other Conditional Use Permit applications for eating establishments at the same shopping center due to concerns about parking. In 'February 2007, the Planning Commission denied CUP 07 -02 for a restaurant with seating for 33 patrons, and in January 2005, the Planning Commission denied CUP 05 -01 for a teahouse with seating for 8 patrons. In both cases, the parking shortage was cited as the reason for denial. CODE REQUIREMENTS All City requirements regarding disabled access and facilities, occupancy limits, building safety, parking and site design shall be complied with to the satisfaction of the Building Official, Community Development Administrator, Fire Marshall, and Public Works Services Director. Cyx� Pursuant, to the provisions of the California Environmental Quality Act, the Development Services Department has determined that the proposed project is a minor alteration of an existing facility, and is therefore categorically exempt from CEQA (Class 1, Section 15301). , A Preliminary Exemption Assessment is attached. FINDINGS Section 9275.1.2 of the Arcadia Municipal Code requires that for a Conditional Use Permit to be granted, it must be found that all of the following prerequisite conditions can be satisfied: 1. That the granting of such Conditional Use Permit will not be detrimental to the public health or welfare or injurious to the property or improvements in such zone or vicinity. CUP 08 -05 643 W. Duarte Rd. November 25, 2008 — page 4 2. That the use applied for at the location indicated is properly one for which a Conditional Use Permit is authorized. 3. That the site for the proposed use is adequate in size and shape to accommodate said use, and all yards, spaces, walls, fences, parking, loading, landscaping, and other features required to adjust said use with the land and uses in the neighborhood. 4. That the site abuts streets and highways adequate in width and pavement type to carry the kind of traffic generated by the proposed use. 5. That the granting of such Conditional Use Permit will not adversely affect the comprehensive General Plan. RECOMMENDATION The Development Services Department recommends denial of Conditional Use Permit Application No. CUP 08 -05 due to the site's intense uses and the existing parking deficiency. If the Planning Commission determines, based on the evidence presented, that the proposed eating establishments are an appropriate use at this site and moves to approve Conditional Use Permit Application No. CUP 08 -05, staff recommends the following conditions of approval: 1. The eating establishment(s) approved by CUP 08 -05 is limited to the caf6 and yogurt shop, which shall be operated and maintained in a manner that is consistent with the proposal and plans (2,390 square -feet of eating establishment(s) with seating for up to a combined total of 18 patrons) submitted and conditionally approved for CUP 08 -05, subject to the satisfaction of the Community Development Administrator. 2. The approval of CUP 08 -05 includes a parking modification of 213 spaces in lieu of 329. This modification is approved only for the specific combination of uses approved by CUP 08 -05, and not for the building and /or site in general. 3. Noncompliance with the plans, provisions and conditions of approval for CUP 08 -05 shall be grounds for immediate suspension or revocation of any approvals, which could result in the closing of the tutorial and educational 'center. 4. All City code requirements regarding accessibility, fire protection, occupancy, and safety shall be complied with to the satisfaction of Building Services and the Fire Department. 5. Approval of CUP 08 -05 shall not take effect until the property owner(s), and applicant have executed and filed the Acceptance Form available from the Development Services Department to indicate awareness and acceptance of these conditions of approval. CUP 08 -05 643 W. Duarte Rd. November 25, 2008 — page 5 l� 6. The applicant shall defend, indemnify, and hold harmless the City of Arcadia and its officers, employees, and agents from and against any claim, action, or proceeding against the City of Arcadia, its officers, employees or agents to attack, set aside, void, or annul any approval or condition 'of approval of the City of Arcadia concerning this project and /or land use decision, including but not limited to any approval or condition of approval of the City Council, Planning Commission, or City Staff, which action is brought within the time period provided for in Government Code Section 66499.37 or other provision of.law applicable to this project or decision. The City shall promptly notify the applicant of any claim, action, or proceeding concerning the project and /or land use decision and the City shall cooperate fully in the defense of the matter. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter. PLANNING COMMISSION ACTION Denial The Planning Commission should move to deny Conditional Use Permit Application No. CUP 08 -05, and direct staff to prepare a resolution incorporating the Commission's decision and specific findings for adoption at the next meeting. Approval If the Planning Commission intends to approve Conditional Use Permit Application No. CUP 08 -05, the Commission should move to approve and direct staff to prepare a resolution incorporating the Commission's decision, findings, and conditions of approval for adoption at the next meeting. If any Planning Commissioner, or other interested party has any questions or comments regarding this matter prior to the November 25 public hearing, please contact Steven Lee, Assistant Planner, at (626) 574 -5444 or via email at sl_eeaci.arcadia.ca. us Community Development Attachments: Aerial Photo and Vicinity Map Plans Parking Survey Photos Preliminary Exemption Assessment CUP 08 -05 643 W. Duarte Rd. November 25, 2008 - page 6 anus r MUM& 'Im gm Ai 'Arm. 4 A 4t XIT�- R U 10 , Mv- j Z)C mi 0714 mr,.f I y� ,��t�� �" s jv I p , 4 , VIM lil'!L WA A go JA IL a IV • it. q 643 WDuade Rd "r ,4 4— Arcadia Zone # ` j XAFAINPITF. Fia. A m 9 A N 100 0 100 200 Feet ARCA DIA AVE a I I (69) la- (631) DUARTg RD rg RD (6 rem tR-�3 (612) - - T --T -- (60) AAC44wk -AM � po 643 W Duarte Road I V's Development SerwwsNWhnW CUP 08w05 ftlneetft Division W 4 : } �=am . � � ! /! -!; °(k , E • !� � • g H| |, IT - I. M § � .� !! ■! . ILI - ! ■} CO \ \\ , in \/4 ! | , \ W 4 : } �=am . � � EMERGENCY EMERGENCv E%rt EXIT 666) R R ' 1 J, NEN9 VAI.1�Jf9 5 - SIDMrF. ?Z %vim•/ ' �� PIXIM RGOM y / J i �..�. co LE Pte). RII6REN Y OISKNGER ICICREN WUNTER GALES SCSA MILK TEAT ^ ,. ULES TAUNTER I n , I J. TABLES 6 F . ' CHAIRS AREA l ip l TABLES a CHAIRS AREA ... ENTRANCE RETAIL STORE G'TCrAL s Ra srF r� rao-s ye 643 W. DUARTE RD., ARCADIA, CA 91007•/* - r z s4T1nlF c- vAe / �p PARKING LOT SURVEY Hourly surveys of availability of parking spaces were conducted at the parking lot of the retail center known as "Arcadia Center" located at 627 -655 W. Duarte Road, Arcadia, CA 91007 during the period from 10/13/08 to 10/19/08: The table shows the total number of parking spaces available (not occupied) at the retail center at the time of survey. Date/Time Surveyed 10/13/08 Monday 10/14/08 Tuesday 10/15/08 Wednesday 10/16/08 Thursday 10/17/08 Friday 10/18/08 Saturday 10/19/08 Sunday 11:00AM 117 104 108 113 105 106 109 12:OONOON 62 46 49 50 48 53 55 1:00PM 59 48 47 53 49 57 53 2:OOPM 78 69 70 74 68 65 67 3:OOPM 107 104 108 105 109 99 98 4:OOPM 110 117 120 128 132 98 104 5:OOPM 103 108 110 116 121 96 93 6:OOPM 69 54 62 56 50 47 48 7:OOPM 66 47 59 55 47 45 42 8:OOPM 97 89 94 99 83 53 68 9:OOPM 142 146 152 149 138 115 127 Conducted and Submitted by the staff of Boba Teazone, Inc. I , JY ; I✓L�C.Jhf � f � 1 Jav qlL rl. i I i 0 l t "may_ � r +c-t h ,x 5c�`+k7 r1 5yq�tu "k � ivy M7 Pi°"aY3Yo e t t -t + x P r t r y .� i r D �� � p* { y ` R•r h 1 , Ir k I fm` IilY7 � r !DI I hP� u E l jn r I Ji `; �Ii19VNfP I yt' 7 t1 II KI 1•� 1 1 to � �PM r :1 +te .- �J L�l..•sF,r� ISlf iif " , I C ) III t " w i i PP � ,r SSW UI \ I� J iJ 4 1 e { I r A p I yt' 7 t1 II KI 1•� 1 1 to � �PM r :1 +te .- �J L�l..•sF,r� ISlf iif " , I C ) III t " w i i PP � ,r SSW UI \ p� I PRELIMINARY EXEMPTION ASSESSMENT �° «• • "'� (Certificate of Determination When Attached to Notice of Exemption) 1. Name or description of project: Conditional Use Permit Application No. CUP 08 -05, and the related parking modification, to operate a 2,390 square -foot caf6 and yogurt shop with seating for 18 patrons at 643 W. Duarte Road 2. Project Location — Identify street address and cross streets or attach a map showing project site (preferably a USGS 15' or 7%' topographical map identified by quadrangle name): 643 W. Duarte Road (at Baldwin Avenue) 3. Entity or person undertaking project: ❑ A. City of Arcadia 4. Staff Determination: ® B. Other (Private) (1) Name: Bobs Tea Zone. Inc. (2) Address: 643 W. Duarte Road Arcadia, CA 91007 (3) Phone: (626) 636 -7881 The City's Staff, having undertaken and completed a preliminary review of this project in accordance with the City's "Local Guidelines for Implementing the California Environmental Quality Act (CEQA)" has concluded that this project does not require further environmental assessment because: a. ❑ The proposed action does not constitute a project under CEQA. b. ❑ The project is a Ministerial Project. C. ❑ The project is an Emergency Project. d. ❑ The project constitutes a feasibility or planning study. e. ® The project is categorically exempt. Applicable Exemption Class: 15301 Section No.: f g. ❑ The project is otherwise exempt on the following basis: h. ❑ The project involves another public agency which constitutes the Lead Agency. Name of Lead Agency: ❑ The project is statutorily exempt. Applicable Exemption: Section No.: Date: November 14, 2008 Staff: Steven Lee, Assistant Planner RESOLUTION NO. 1784 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARCADIA, CALIFORNIA, DENYING CONDITIONAL USE PERMrr APPLICATION NO. CUP 08 -05 AND THE RELATED PARKING MODIFICATION TO ALLOW AN EXISTING 2,390 SQUARE -FOOT CAFE AND YOGURT SHOP TO ADD SEATING FOR 18 PATRONS AT 643 W. DUARTE ROAD. WHEREAS, on June 13, 2008, a Conditional Use Permit application was filed by Boba Tea Zone, Inc. to allow an existing 2,390 square -foot cafe and yogurt shop to add seating for 18 patrons; Development Services Department Case No. CUP 08 -05, at property commonly known as 643 W. Duarte Road; and WHEREAS, a public hearing was held on November 25, 2008, at which time all interested persons were given full opportunity to be heard and to present evidence. NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF ARCADIA HEREBY RESOLVES AS FOLLOWS: SECTION 1. That ahe factual data provided by the Development Services Department in the staff report dated November 25, 2008 is true and correct. SECTION 2. This Commission finds: A. That the granting of the Conditional Use Permit would be detrimental to the public health and welfare, and injurious to the property and improvements in the zone or vicinity because the existing on -site parking facilities are inadequate to support the proposed eating establishments. B. That the use applied for at the location indicated is properly one for which a Conditional Use Permit is authorized; however, the applicant could not satisfy the parking requirements for the requested conditional use as specified in Section 9269.5 et seq. of the Arcadia Municipal Code. C. That the site. for the proposed use is not adequate in size and shape to accommodate said use due to inadequate on -site parking. D. That the site abuts streets and highways adequate in width and pavement type to cant' the kind of traffic generated by the proposed use, but the on -site parking is insufficient to accommodate the proposed use. Resolution No. 1784 E. That the granting of such Conditional Use Permit will adversely affect the comprehensive General Plan because there is insufficient on -site parking to accommodate the proposed use, which would be detrimental to the public welfare. F. That the proposed project is a minor alteration of an existing facility and is therefore exempt from the California Environmental Quality Act (Class 1 Categorical Exemption, Section No. 15301). SECTION 3. That for the foregoing reasons this Commission denies Conditional Use Permit Application No. CUP 08 -05 and the related parking modification to allow an existing 2,390 square -foot cafe and yogurt shop to add seating for 18 patrons at 643 W. Duarte Road. SECTION 4. The Secretary of the Planning Commission shall certify to the adoption of this Resolution. Passed, approved and adopted this 9` day of December, 2008. �J vWnz� Chairperson, Planning Commission ATTEST: X ecklary, Planning Commission APPROVED AS TO FORM: 1 Stephen P. Deitsch City Attorney 2 Resolution No. 1784 STATE OF CALIFORNIA . ) COUNTY OF LOS ANGELES ) SS: CITY OF ARCADIA ) I, JAMES M. KASAMA, Secretary of the Planning Commission of the City of Arcadia, hereby certify that the foregoing Resolution No. 1784 was passed and adopted by the Planning Commission of the City of Arcadia, signed by the Chairperson and attested to by the Secretary at a regular meeting of said Planning Commission held on the 9th day of December, 2008 and that said Resolution was adopted by the following vote, to wit: AYES: Commissioners Baderian, Baerg, Hsu, and Beranek NOES: None ABSENT: Commissioner Parrille Se ary of the Planning Commission BOBA TEA ZONE, INC. 643 W. Duarte Rd., December 15, 2008 Honorable Mayor, Mayor pro Tem and Members of the City Council City of Arcadia 240 W. Huntington Drive Arcadia, CA 91066 Re: APPEAL PLANNING COMMISSION'S DECISION Public Hearing held on Nov. 25, 2008 at 7:OOPM Resolution No. 1784 Conditional Use Permit No. CUP 08 -05 Bobs Tea Zone, Inc. 643 W. Duarte Road, Arcadia REND IiY: AM 0200013929 ?; PAYOR. TODAY'S DATE: 12/16/08 REGISTER DATE: 121 TIME: 12:51 DESCRIPTION AMGONT COST INPLANNING COMMI APPEAL PLANNING APPLICATION $5401 GG TOTAL DUE: 8543.00 CHECK PAID: $540.00 CHECK N0: 1173 TENDERER- CHANGE- Dear Honorable Mayor, Mayor Pro Tent and Members of the City Council, I am appealing the Planning Commission's decision rendered on 11/25/2008 denying my Conditional Use Permit No. CUP 08 -05 application on the following grounds: 1. First of all, my CUP application was not given a fair consideration by the members of the Planning Commission based on the merits of the facts of my application. 2. The 4 -1 decision was based on the bias and prejudice of the majority of the members of the Planning Commission who were preoccupied with lining up with the position recommended by the internal staff of Assistant Planner Steven Lee. 3. The Planning Commission was not given complete material facts to consider, particularly that for the past 5 years I have been operating my business with tables and chairs with a total seating capacity of 18 patrons without any interruption from the city since the first day I was issued with the City's business license with a clear description of my business as "Retail Eating and Drinking Places" and not "Food Take- Out ", and that I was told that I could have up to nine tables by your City's Tenant Improvement Inspector who came to check my store to be sure that everything was in order before I was issued my first City's business license on 12/17/2003. 4. There was not a single objection from the neighboring owners, residents and occupants to my CUP application before, during, and after the public hearing. As a matter of fact, my landlord was in full support of my CUP application. 5. The only issue raised by your Assistant Planner during the public hearing was whether there is parking availability at the retail center where my business is located. Your Assistant Planner only conducted one parking survey during peak lunch hour at 12:00 noon on Wednesday, 10/15/2008 and he found there was still 33 parking spaces available at the retail center. My survey at the same time showed there were 49 parking spaces available out of total 213 parking spaces at the retail center. My other hourly surveys showed that there were at least 20% parking spaces available at any given time at the retail center. Therefore, parking availability has not yet become a problem at this retail center. 6. None of the members of the Planning Commission who denied my CUP application had come up with any valid reasons why my CUP application should be denied. 7. Immediately after the public hearing, I wrote a letter addressed to each members of the Planning Commission on 12/1/2008 requesting them to reconsider their decision before they attend their next meeting on 12/9/2008 to adopt their 4 -1 denial decision as a resolution. All my letters were unlawfully withheld by your Assistant Planner Steven Lee without forwarding it to the members of the Planning Commission for review. Thus the Planning Commission proceeded to adopt the resolution on 12/9/2008 (The Planning Commission's Resolution No. 1784) without knowing the existence of my Request for Reconsideration letter which was personally delivered to each members of the Planning Commission individually at the City on 12/1/2008 with the City's acknowledgment of receipt. 8. There appears to be a double standards adopted by your Planning Department in deciding who should and who should not be granted a Conditional Use Permit, and there is always a chance that their decision can be arbitrary and not based on a good reason. 9. The sudden no- chairs -and- tables restrictions imposed by the City on 3/19/2008 had already caused great hardship to my business as most of our customers had now found our store not a favorite place to patronize anymore because of a lack of convenience and our business had dropped sharply, more than 50% since then, not to mention that I had suffered a serious stroke on 7/12/2008 and lost ,a partial functional abilities of my body due to the severe stress resulted from the City's repeated enforcement actions. The no- chairs - and - tables restrictions will continue to hurt my business badly for the next five years as I am liable for another 5 more years of lease obligations on the property and I don't how I am going to make it without filing for bankruptcy. 10. A complete rationale in support of my CUP application is stated in my 12/1/2008 letter addressed to each members of the Planning Commission which I attach herewith as a supporting part of my appeal. I enclose herewith a check for $540.00 payable to the City of Arcadia as my appeal fee. Also enclosed are 15 sets of plans, mailing labels for all property owners and occupants within the 300 -foot radius public hearing notification area. I now file my formal appeal to you as I am counting on you, the respectable City Council, as my last hope for a fair hearing of the true facts and circumstances of my case and your kind consideration of my CUP application. Respectfully � Submitted, M e Shong o Su' Business Owner See Attachment — My 12/1/2008 Request for Reconsideration Letter to each members of the Planning Commission. 2 BOBA TEA ZONE, INC. 91 December 1, 2008 Mr. Robert Baderian Mr. Ed Beranek Mr. Frank Hsu Mr. William Baerg Mr. Anthony Parrille Honorable Members of the Planning Commission City of Arcadia 240 W. Huntington Drive Arcadia, CA 91066 Re: REQUEST FOR RECONSIDERATION Public Hearing held on Nov. 25, 2008 at 7:OOPM Conditional Use Permit No. CUP 08 -05 Boba Tea Zone, Inc. 643 W. Duarte Road, Arcadia Dear Honorable Members, 7881 I understand that you had reached a decision (4 to 1) to deny my application for a conditional use permit to allow a seating for 18 patrons. I would like to request your kind reconsideration of your decision on the following grounds before you make it in the resolution presented for adoption at your next Commission meeting: 1. First of all, you have come to know the facts that I have been operating the same business at the location WITH TABLES AND CHAIRS for the last five years since 12/17/2003 with yearly renewal of the City's business license describing my business as "RETAIL EATING AND DRINKING PLACES" and not "Food Take -Out ". I had NEVER received any indications from the City that no tables or chairs were allowed in my store NOR had I ever been informed about the restrictions. I had not received a single citation from the City in the last 4 yz years ordering me to remove tables and chairs until 3/19/08. 2. In early September 2008, in my telephone conversation with your assistant planner Mr. Steven Lee, Mr. Lee told me that there was a good possibility that I would be allowed to restore tables and chairs at the premises by virtue of the fact that my business had been in operations for almost the past five years and I would most likely be grandfathered of any new restrictions that were imposed by the City at a later stage. I was surprised to see that Mr. Lee had changed his mind by placing "DENIAL" on the recommendation line published on the Agenda. His denial recommendation had played a great part in swaying the overall decision of the Planning Commission as the Planning Commission would tend to incline toward the position of their internal staff based on their recommendations. 3. As I had explained at the public hearing, there are always more than 20 %availability of parking spaces in the entire retail center at any one time even during the peak lunch and dinner hours as I had personally conducted the parking survey myself. While I was taking the survey, I saw vehicles coming and leaving at any moment; therefore it is difficult to come up with the same exact figures on my survey as that of the city's survey, but both surveys clearly show that there are always vacancies in the parking lot. Besides there was never any complaints about the parking problems in the last five years I was operating at the site when I was having tables and chairs in my store. There was never any complaints about the parking problems in this retail center. The assistant planner did not present any evidence of any complaints about the parking problems ever received by the City in the last five years during the public hearing. Therefore, we can conclude that we have not come to the stage yet where parking at this retail center is now a problem that it has caused any public safety concerns. 4. At the hearing, I heard one member of the Planning Commission raise another similar CUP case which he said'the City had turned down in the past, and as a result that dine -in food business had to close shop and leave the city, and the overcrowded problem eventually was solved by itself because the new tenant that moved in later was in a take -out business. This member asked how the Commission was going to deal with the policy if the Commission were to approve my application. As the member of the Commission did not provide any specific information about that particular CUP case, I was not able to comment on the matter; but I think each case has to be viewed on its merits as to whether the degree of the problem has risen to the point where it has caused public safety concerns. I could see that raising this issue by the member of the Commission at that moment of the hearing proceeding had somehow begun to sway some members of the Commission to turn down my CUP application. 5. There was not a single opposition raised by any occupants, residents or property owners in the surrounding neighbor at the public hearing that is against my CUP application. 6. My landlord was also there that night at the public hearing, but he said he missed the opportunity to address the Planning Commission to support my CUP application as the matter was soon put to vote. I would like to take this opportunity to attach herewith a letter from my landlord expressing his support of my CUP application. 7. I am nevertheless very grateful to the one member of the Commission who had voted for my application that night as I believe he saw some merits in my case. 8. The denial of my CUP application will cause great hardship to me as it has a great impact on the viability of my business. My type of business depends on tables and chairs for the convenience of the customers who need to take a brief break while having a drink at my store. As I had presented at the hearing, my business had already dropped more than 50% since March 2008 when the City first imposed no tables and chairs restriction on my store. Due to the tremendous stress caused by the City's restriction on my business, I suffered a stroke on 7/12/08 which had led to partial loss of my functional abilities (see copy of my doctor's certification attached). I would deeply appreciate if you could take.into consideration of all the points I have presented above and render your kind reconsideration of your decision. If you reaffirm your denial, I would have no other choices but to continue seeking relief until all my appeals are exhausted as I have five more years of lease obligations that I have to live with and I cannot sustain a loss for that long without going bankrupt. 2 If your final decision is still to deny my application after Your reconsideration please take this letter as my appeal to the next higher level. Thank you. Yours Respectfully, Mie Shong Lin Business Owner C. 1 OF ARCADIA i 240 West Huntington Drive • P.0. Box 60021 • Arcadla, CA 91066 . (626) 574 -MO • Fax (626),44779173 • Attn Bus. License Office R F-0 E f V E D BUSINESS LICENSE APPLICATION DEC - 8 2003 City Review and Approval Al V LCAMLT - M 000500n9 must rrs COSWYIOU' VIRrYWI:(r �,';; j yy{ art U ,s Name &8A 76A 24W& � , h r[. - Business Phone ) 1?1 rA- li /6� : ,hesa Address t r ? W QV RTR 120 Business Fax (W) 2g-?Q , 1ZfAQZA CA 9Md6 I Owner ofBusiness i CWAA// (. /A/ Phone No. (1V4 2 ;rq (MXP Owner of Building - -9ICHARD L"ar i - Phone No. ( )_ Type of Business TL'67A; j r,2CD» SO4LA -S Describe business activity In detail Previous type of business at this address (/AMIV 6%v A.r - VACJ�rNr AT -riwe OP LFLISF S1FIXI Date when previous business was closed? J,/��`�- wJ Is this a change of business ownership? U Yes ❑ No Do you propose any alterations to the building? OYea O 0 WIII training or classes be conducted on the premises? O Yes M010 - If Yes, how many persons will be attending? List the types and amount of flammable or explosive liquids to be used (If any): ✓aT�jr- WIII your business discharge wastewater from other then reslrocros, tanking fountains, showers, or air conditioners used for human comfort? ❑ Yes "a Will your business discharge any wastewater from any manufacturing, processln , Institutional, commercial, or any other operation where to #*We mwkxAdesd ntlf gramdnm.hrnanoAgh? OYea 20 If your business is the same as the previous tenant, did the previous tenant have an Industrial Wastewater Discharge Permit? OYss "0 Please check if your business Includes one of the following: ❑ Restaurant ❑ Commercial Laboratory 0 Auto Dealer 0 Hospital with Overnight Beds ❑ Hotel l7 Manufacturing ❑ Auto Repair Shop 0 Radiator Shop t9"hetall Food Sales O Chemical Laboratories 0 Automotive Service Station ❑ Centralized Food Processing Facllifle 0 Bakeries 0 Warehouse ❑Car Wash or Truck Wish - Cl Centralized Film Processing Facilities O School ❑ Film Processing Services O Kennels and Animal Hospitals ❑ Cleaners and Laundries (not -coin operated). I CERTIFY THAT I HAVE READ THE STATEMENTS CONTAINED IN THIS APPLICATION AND THAT THEY ARE TRUE AND CORRECT. Tc°95 Nup� �mJr A 201, Data: Signature of SUSINES& U CENOE PERV F1 The Perak firm or corporation named below longire in, carry on or conduct ths business, lradi: 061116 andorserrient, n6roartification 61 o6mplisnot witK oil zoning raguistions, This certificate is 1wed willhovi Business Name: Bobs Teazone. [no MOM p Business Location: 644W Duarte Pod Aroadii.CA Desdiiptl Sualnese Ownefl a): Mle Shong Lin BOBATEAZONE,INC 643WDUARTERD ARCADIkCA 910.00 TO 09 POSTUD IN A Accout RETAIL FATINOANP DRINKING .. umber 043697 $253.10 j: 1� STAFF REPORT Development Services Department DATE: February 3, 2009 TO: Mayor and City Council FROM: Jason Kruckeberg, Development Services Director Philip A. Wray, Deputy Director of Development Services f` Prepared by: Tim Kelleher, Senior Engineering Assistant SUBJECT: AWARD CONTRACT— CURB RAMP REPLACEMENT PROJECT Recommendation: Authorize the City Manager to enter into a contract with S J Grigolla Construction Company in the amount of $25,400 SUMMARY The City of Arcadia receives an annual allotment of Community Development Block Grant (CDBG) funds from the U.S. Housing and Urban Development Agency. In the past, the City has used its CDBG funds for public service projects (Meals on Wheels, Senior Citizen, Social Services, etc.) with the majority of the funds going to housing rehabilitation for low to moderate income families. In this year's budget of CDBG funds, the City Council approved the use of $50,000 for a curb ramp replacement project. The curb ramp replacement project will remove and replace substandard curb ramps with current standard ramps in the public right -of -way along Santa Anita Avenue. Staff has completed plans and specifications, advertised and opened bids on January 22, 2009. The successful low bidder was S. J. Grigolla Construction Company, Inc. in the amount of $25,400. __Staff is recommending -that _ the-City Council_ award_ a contract_ for_ the Cur b_ Ramp____ Replacement Project to S. J. Grigolla Construction Company, Inc. in the amount of $25,400. BACKGROUND The City of Arcadia receives an annual allotment of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development. The allotment is based on a formula and fluctuates; however, is typically around Staff Report Award Contract — Curb Ramp Replacement February 3, 2009 Page 2 $400,000 per year. The funds can be used for a variety of programs and projects that fit into HUD's broad 'objective of providing decent housing and a suitable living environment. How and where the funds are used are largely at the discretion of individual agencies. To this end, an annual "Statement of Objectives and Projects for Use of CDBG Funds" is annually approved by the City Council. A portion of the total annual allotment may be appropriated for community development improvements such as curb ramps and sidewalks. On January 15, 2008 the City Council approved the "State of Objectives and Projects" which included $50,000 for a curb ramp replacement project. This particular project will replace non - standard curb ramps with currently approved 'Americans with Disabilities Act standard ramps. The project will concentrate on Santa Anita Avenue between Duarte Road and Huntington Drive. A location map is attached for reference. The project was advertised and bids opened on January 22, 2009 with S. J. Grigolla Construction, Inc. as the low bidder. DISCUSSION Bids to construct the Curb Ramp Replacement Project were received and opened on Thursday, January 22, 2009. There were 14 bidders as follows: S. J. Grigolla Construction $25,400 Elite Construction $28,545 Gentry Brothers $34,200 F.S. Construction $35,000 Grigolla & Sons $35,749 Karmx Inc. $37,294 HYM Engineering $37,692 Haitbrink Asphalt Paving $41,337 E. C. Construction $42,330 International Pavement Solutions $46,150 C. J. Construction $46,600 Ortiz Asphalt Paving $49,604.21 Nobest Inc $53,000 Elite Bobcat Services $56,875 S. J. Grigolla Construction, Inc. was the successful low bidder at $25,400. Staff has investigated S. J. Grigolla Construction and found them to be qualified to perform the work. It is anticipated that the work will begin in early March and be substantially complete by the end of the same month. Staff Report Award Contract — Curb Ramp Replacement February 3, 2009 Page 3 ENVIRONMENTAL IMPACT The project is categorically exempt per Section 15301 Class 1(c) from the requirements of California Environmental Quality Act (CEQA). FISCAL IMPACT Community Development Block Grant (CDBG) Funds in the amount of $50,000 have been approved in the 2008 -2009 Capital Improvement Program to complete this project. RECOMMENDATION Authorize the City Manager to enter into a contract with S. J. Grigolla Construction Inc. in the amount of $25,400 for the Curb Ramp Replacement Project. Approved By: ��9�.�� Donald Penman, City Manager JK:PAW:TOK:pa WIRT, STAFF REPORT Recreation and Community Services Department DATE: February 3, 2009 TO: Mayor and City Council FROM: Sara Somogyi, Director of Recreation and Community Services SUBJECT: AUTHORIZE THE CITY MANAGER TO RETAIN LEWIS EVENTS FOR EVENT SERVICES AT THE CITY'S 2009 JULY 4 CELEBRATION AND REQUEST TO WAIVE THE CITY'S PURCHASING REGULATIONS WITH REGARD TO COMPETITIVE BIDDING Recommendation: Approve SUMMARY The City of Arcadia is hosting a 4th of July celebration this year featuring an aerial fireworks show, entertainment and games. To facilitate the procurement of performers, games, supplies and equipment for this event staff is recommending the use of an events management company. Contracting with one company for these services minimizes the number of individual contracts that need to be executed and will do much to ensure an orderly set -up the day of the event. Lewis Events worked previously on the 4th of July celebration in 2005 as well as other events. Lewis Events has completed and proven to provide the services requested and within budget. Staff has had several discussions with Lewis Events regarding the event in 2009 and is recommending that the City Council approve the use of their services at a cost of up to $35,000.00. DISCUSSION The activities planned for the July 4 Celebration are specifically designed to meet a variety of needs. Attracting people to the event and offering fun things to do to keep their interest once they are there is a primary goal. Focusing the activities in one central place (the track and field) is important because that helps create excitement and a festive atmosphere. At the same time, we needed to be cognizant of the special requirements of holding such an event on the high school's synthetic turf field and the surrounding track. To protect the field surface we have intentionally selected activities that will not require implements to be placed in the ground (field /track) and we are minimizing the use of tables and chairs. From an event management/logistical point of view, there is benefit to purchasing a group of similar services from one source rather than executing separate contracts with each supplier. Lewis Events has submitted a proposal to the City that covers the following items: entertainment, interactive games, patriotic decor, a sound system, equipment rental (sound system, tables, chairs, and miscellaneous supplies), insurance, labor and delivery and professional services. Their proposal is in the amount of $33,247.00, which is subject to change based upon the City's actual needs on the day. For your reference, the entertainment and games that will be provided are a live band, a disc jockey, two roving jugglers, one stilt walker, three balloon artists, a panning for gold and roping corral, an inflatable giant climb, slide, climbing mountain, western maze, obstacle course, ladder and bounce houses. Since the scope of services may be refined and modified to some extent over the next few months prior to the event (e.g. we may need more tables and chairs, a different sound system, there may be some insurance issues, etc.), staff is recommending that the City Council authorize staff to retain Lewis Events for event management services related to the July 4 celebration in an amount of up to $35,000.00. The additional money ($1753.00) will only be used if it is necessary; however; having the Council's authorization for this amount will facilitate any changes that need to be made in terms of allowing staff to proceed without having to go back to the City Council for approval to spend the additional amount. In addition to authorizing the retention of Lewis Events this report also asks that due to the unique service we are purchasing, that the City Council waive the City's purchasing regulations with regard to competitive bidding. Experience, reputation and track record is more important in this instance than seeking the services at the lowest possible cost. FISCAL IMPACT Currently there is $49,000 in a trust fund earmarked for the event. Oak Tree Racing Association and Santa Anita Park will jointly pledge a $10,000 donation to the event. The event will cost approximately $80,000 to operate. Staff is going to continue to try and secure additional sponsorships to make up the difference; otherwise approximately $12,000 in staff costs will need to be added to the next fiscal year budget. RECOMMENDATION It is recommended that the City Council waive the City's purchasing regulations relative to competitive bidding and authorize the City Manager to execute an Agreement with Lewis Events in an amount not to exceed $35,000.00 for a event services at the City of Arcadia's 2009 July 4 Celebration. APPROVED: 'Do—a-W - Pc, ..� Donald Penman, City Manager �7� "0711 STAFF REPORT Recreation and Community Services Department DATE: February 3, 2009 TO: Mayor and City Council 4 FROM: Sara Somogyi, Director of Recreation and Community Services SUBJECT: FIREWORKS DISPLAY FOR THE 2009 JULY 4 CELEBRATION Recommendation: Waive the City's purchasing regulations relative to competitive bidding and authorize the City Manager to execute an agreement with Pyro Spectaculars, Inc. for a fireworks display at the City 4 of July celebration at the cost not to exceed $35,000. SUMMARY The City of Arcadia will host a 4 of July celebration this year featuring a fireworks display as the highlight of the festivities. The purpose of this report is to obtain City Council approval to hire Pyro Spectaculars, Inc. for the fireworks display and to waive the purchasing regulations with regard to competitive bidding at a cost not to exceed $35,000. DISCUSSION The City's 4 of July Celebration will culminate with an fireworks display for approximately 20 minutes. In researching companies that do fireworks shows, one firm in particular kept coming up and /or was recommended by other cities and event organizers. That company is Pyro Spectaculars by Souza of Rialto. Pyro Spectaculars has a proven track record for producing quality shows and having well- trained and professional staff. They have an extensive client list and from what staff have been able to ascertain, a very good safety record. They also operated the fireworks display at the 2005 event the City of Arcadia held. Pyro Spectaculars submitted a proposal to the City for the 2009 fireworks display. In addition to authorizing staff to hire Pyro Spectaculars, this report also asks that due to the unique circumstances and the type of service we are purchasing, the City Council waive the City's purchasing regulations with regard to competitive bidding. That is, experience, reputation and track record is more important in this instance than seeking the services at the lowest possible cost. Having said that, it is worth noting that staff does not have any reason to believe that Pyro Spectacular's costs are out -of -line with what other companies would charge for the same service. FISCAL IMPACT Currently there is $49,000 in a trust fund earmarked for the event. Oak Tree Racing Association and Santa Anita Park will jointly pledge a $10,000 donation to the event. The event will cost approximately $80,000 to operate. Staff is going to continue to try and secure additional sponsorships to make up the difference; otherwise approximately $12,000 in staff costs will need to be added to the next fiscal year budget. RECOMMENDATION It is recommended that the City Council waive the City's purchasing regulations relative to competitive bidding and authorize the City Manager to execute an Agreement with Pyro Spectaculars, Inc. in an amount not to exceed $35,000.00 for fireworks display at the City of Arcadia's 2009 July 0' Celebration. APPROVED: fpm. -.... ) Donald Penman, City Manager STAFF REPORT Public Works Services Department DATE: February 3, 2009 TO: Mayor and City Council FROM: Pat Malloy, Assistant City Manager /Public Works Services Direc r Prepared by: Tom Tait, Deputy Public Works Services Director SUBJECT: SUMMARY On January 6, 2009, the City Council directed staff to bring the Residential Refuse and Recycling Contract to the February 3, 2009 for reconsideration when all Councilmember's are present. Please see the attached staff report. DISCUSSION At the January 6, 2009 Council meeting, the City Council asked staff to address a few concerns in regards to the Residential Refuse and Recycling Agreement (Agreement) with Waste Management, Inc. (WM). The items to be addressed are: • Success of one day a week service • Possibility of smaller refuse carts to be used in the City to encourage recycling; • Guarantee that Arcadia trash rates will remain in the lower third of the San Gabriel Valley, and; • Clarification of 25% increase in rates • Reroute trash trucks around school hours Page 1 of 3 Recommendation: Approve Recommendation: Adopt Mayor and City Council February 3, 2009 It was also determined at the meeting that Councilmen Kovacic and Amundson would contact the cities of La Verne, San Dimas, Baldwin Park, and Rolling Hills Estates to receive feedback on the one day a week service proposed by WM. City staff met with WM to discuss the City Council's concerns. First, to address concerns raised about one day per week refuse collection, WM has agreed too coordinate an extensive public outreach campaign with City staff to ensure that all residents are aware of the service day change to Wednesdays. Additionally, WM has agreed to accommodate all residents who do not take their trash out on the correct day until all residents have adjusted to the modified schedule. To revisit the current five (5) day collection schedule at the end of the first year would potentially open the contract up for renegotiation which would include an increase in collection rates. Second, staff and WM considered the option of offering a smaller refuse cart to residents to encourage more recycling. However, staff does not recommend implementing this option because the 32 gallon cart is significantly smaller than the 64 gallon carts that are available to the residents. As a result, this may result in contamination of green waste and recyclables, as well as illegal dumping on the streets. Additionally, with the 32 gallon cart option WM has reserved the right to re- evaluate rates within one year of program implementation to consider the fiscal impact the new program will have on total operating revenues. This would open up the contract for another negotiation that may increase rates to the residents. To encourage recycling, staff intends to market the 64 gallon cart option to residents who would like to down grade their current cart size. Third, WM has agreed to include a clause in the Agreement to guarantee that Arcadia's refuse rates will not "exceed the applicable rates charged in more than one -third of all cities in the San Gabriel Valley ". Fourth, WM is not asking for a 25% increase for complete "catch -up" on their rates. The 25% increase includes the $100,000 Administrative Fee in addition to the Consumer Price Index, Disposal Facility Fees, and Fuel Producer Price Index for the next two years. In reality, WM is only asking for 10.55% in "catch -up" rates for the price of fuel. The balance of the increase is cost of living adjustments for each of the next two (2) years of the contract, 2009/2010 and 2010/2011. Finally, WM has agreed to adjust their collection schedule to minimize traffic around each of our schools at the beginning and end of each day. City staff and WM have worked cooperatively to address the City Council's concerns regarding the Agreement. WM has been very accommodating and responsive to the City's needs and desires. For this reason, staff recommends that the City Council approve the Agreement and rate schedule for FY 2009 -10 and FY 2010 -11 with Waste Management Inc. Page 2 of 3 Mayor and City Council February 3, 2009 RECOMMENDATION Authorize the City Manager to execute a seven (7) year contract with Waste Management Inc. for the exclusive collection of residential refuse and recyclables for the City of Arcadia. Adopt Resolution No. 6663 setting the residential refuse rate schedule for Fiscal Year 2009110 and 2010/11 in accordance with the residential refuse and recycling contract. Approved by: T --� Donald Penman, City Manager PM:TT Page 3 of 3 4 STAFF REPORT Public Works Services Department DATE: TO: FROM: SUBJECT: SUMMARY January 6, 2009 Mayor and City Council Pat Malloy, Assistant City Manager /Public Works Services Director Prepared by: Tom -Tait, Deputy Public Works Services Director Waste Management, Inc. (WM) has been the City's exclusive residential refuse hauler since 1999. The current contract is due to expire on June 30, 2009. On March 18, 2008 the City Council directed staff to begin negotiations for the residential refuse and recycling contract with Waste Management, Inc. City staff and WM have reached an agreement on the contents of the new contract. Staff recommends that the City Council award the exclusive Residential Refuse and. Recycling Contract to Waste Management, Inc. and adopt Resolution No. 6663 setting the residential refuse rate schedule for Fiscal Year 2009110 and 2010/11. BACKGROUND Arcadia maintains one of the lowest refuse rates while providing the most comprehensive city -wide refuse and recycling programs in the San Gabriel Valley region (see Attachment). As the exclusive residential refuse hauler, WM has consistently provided excellent service for the past nine (9) years. Included in the rates for providing waste hauling services, WM administers the following refuse programs at the convenience of residents: Page 1 of 5 Recommendation: Approve Mayor and City Council January 6, 2009 • Co- mingled curbside recycling • Greenwaste curbside recycling • Free Backyard Service for Residents with a Physical Hardship • Four (4) Bulky Waste Pick -ups for single family residential units • Holiday Tree Recycling • Waste -to- Energy Program (multi - family units only) • Residential Recycling Education • Mail -it -Back Recycling for cell phones, rechargeable batteries, and sharps waste WM and their programs have assisted Arcadia in achieving a 69% diversion rate which exceeds the 50% diversion rate mandated by AB 939. Arcadia has one of the highest diversion rates in the San Gabriel Valley and it is with WM and their recycling programs and services that have helped the City achieve this. A continued partnership with WM can facilitate the ongoing process of increasing recycling in the City to meet any new proposed diversion rates in the future and guarantee landfill disposal capacity for the term of this agreement. DISCUSSION With the intent of maintaining high levels of services with low monthly rates, staff had several meetings with WM to negotiate a new contract. City staff and WM have reached an agreement on a contract that will benefit both parties. Staff has incorporated the following new elements into the new contract: • The term of the contract will be seven (7) years with three (3), one (1) year optional extensions that can be exercised by either parties; • An Administrative Fee in the amount of $100,000 payable to the City annually; • Multi- family residents will receive two (2) free bulky waste pick -ups per year; • Liquidated damage provisions which allows the City to assess monetary penalties to WM if quality services are not provided; • All new vehicles in the hauler's fleet to be used in the City must be alternative fuel vehicles; • One Day a Week Service on Wednesday for single family residents only; and • Revised Rate Adjustment Formula Single- family residential refuse collection will change from five (5) days a week (Monday through Friday) to one (1) day a week (Wednesday). This premium service reduces the number of trucks and trips into the City, thus resulting in a reduction of air pollution and damage to the roads. Specifically, one day a week service can benefit the City in three (3) ways: 1. It will reduce the wear and tear on the streets by reducing the weight and number of trucks on Arcadia's streets. Currently, WM has approximately fifty (50) trucks in the City over five (5) days, with one (1) day a week service, this could reduce the number of trucks in the City to thirty -five (35) for the week. Page 2 of 5 Mayor and City Council January 6, 2009 2. Refuse carts on the streets in the neighborhoods five (5) days a week is unattractive. One (1) day a week service requires the carts to be on the residential streets for only one (1) day out of the week, leaving the rest of the week with no residential carts on City streets. 3. One (1) day a week service can make working with street maintenance and other construction projects more efficient by providing flexibility and convenience to the Public Works Services Department projects such as slurry seal and asphalt/concrete overlay projects. Refuse rate adjustments will be calculated with three (3) specific, predetermined weighted indices: 1. Consumer Price Index (CPI), 2. Disposal Facility Index, and 3. Producer Price Index (PPI) for Fuel. WM will also increase rates to account for the total cost of providing refuse hauling services to Arcadia in the current market. According to WM, Arcadia's current single family residential monthly rate of $16.38 is not adequate to continue to provide quality refuse services to the City. in order to continue operations in Arcadia, WM is proposing a 25% increase per month phased in over two years which will result in a $2.05 increase per month beginning July 1, 2009 and an additional $2.30 increase per month beginning July 1, 2010. The chart below illustrates the effect of the proposed rate increase. Current Rate Proposed Proposed F Y 2009 -10 FY 2010 -11 $16.38 $18.43 $20.73 For the past ten (10) years, WM has been obligated to adjust rates according to the current contract. Currently, rate adjustments are calculated using only the CPI and Disposal Facility Index- This adjustment formula did not account for substantial increases in business costs such as fuel and state mandated integrated waste fees that have occurred in the past ten (10) years. For example, for the past five (5) years, fuel has experienced significant increases that were not included in the rate increases. Therefore future rate adjustments based on the three (3) predetermined weighted indexes will reflect the current market cost of collecting refuse. In addition to current services, WM would provide the City with additional extended services in order to increase the diversion rate and divert hazardous waste from the landfill waste stream. Such extended services would include: A comprehensive website specifically for Arcadia residents through WM; Enhanced Sharps Disposal Program with local pharmacies; • Waste Watch, a neighborhood watch service between Arcadia Police and Waste Management, Inc.; and Page 3 of 5 Mayor and City Council January 6, 2009 • Enhanced public education programs for schools, residential and commercial customers. The most valuable service provided by WM is the continued free collection service for all City facilities including the removal of all green and refuse waste from the Public Works Service Center. City staff utilizes WM services three (3) to five (5) times per week. WM is very responsive and makes every effort to accommodate the City's needs for regularly scheduled collection, special events, and emergencies. While the proposed increase may seem extravagant, staff has researched recent refuse service bid awards and has found that the average bid award in the Los Angeles area is $20.88 per month, or 28% above the current rate. However, these awards do not provide the same amount of services that Arcadia residents receive. Putting this contract out to bid could either significantly increase rates or sacrifice some programs and services. These programs and services could cost the City a significant amount of money to provide on our own if the waste hauler did not provide it for our residents. For example WM offers services that other haulers are unable to, such as: • Mail -it -Back Recycling for cell phones, rechargeable batteries, and sharps waste • Four (4) Bulky Item Pick -ups for single family residential units • Two (2) Bulky Item Pick -ups for multi - family residential units • Free backyard service for residents with a physical hardship Even with the increase, Arcadia would still maintain one of the lowest rates in the San Gabriel Valley region (see Attachment). With the impending closure of Puente Hills Landfill in October 2013 and more stringent state mandates that regulate the waste stream, it is the City's responsibility to ensure the proper disposal and recycling of refuse and hazardous waste in the community. Staff believes that it is extremely important to secure a responsible and resourceful waste hauler that will guarantee disposal facilities and ensure that the City disposes waste and maintains a diversion rate in compliance with state mandates. WM has successfully demonstrated their commitment to working with the City and their ability to provide the most efficient and effective refuse and recycling services. FISCAL IMPACT The City will receive an Administrative Fee in the amount of $100,000 per year for the length of the contract to fund roadway repairs and maintenance. Additionally, the City receives approximately $70,000 annually from residential AB 939 Fees and $300,000 annually from commercial AB 939 Fees. The Solid Waste Fund uses these revenues to pay for personnel and program costs of the City's Recycling Program such as the Household Hazardous Waste Program and the Compost Program. Page 4 of 5 Mayor and City Council January 6, 2009 RECOMMENDATION Authorize the City Manager to execute a seven (7) year contract with Waste Management Inc. for the exclusive collection of residential refuse and recyclables for the City of Arcadia. Adopt Resolution No. 6663 setting the residential refuse rate schedule for Fiscal Year 2009110 and 2010111 in accordance with the residential refuse and recycling contract. Approved by: �-e-•J Donald Penman, City Manager 0111IN Page 5 of 5 ATTACHMENT September 2008 Refuse Rate Survey City Monthly Rate South Pasadena $36.41 Pasadena $32.48 Sierra Madre $27.72 El Monte $25.12 West Covina $24.77 Baldwin Park $23.43 Azusa $23.23 Diamond Bar $23.15 Covina $22.89 Monterey Park $21.81 Alhambra $20.18 Arcadia (proposed rate) $18.43 Duarte $16.73 Arcadia (current rate ) $16.38 Monrovia $14.52 RESOLUTION NO. 6663 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, SETTING THE SERVICE RATES FOR THE COLLECTION OF RESIDENTIAL REFUSE AND RECYCLABLES PURSUANT TO SECTION 5120.7 OF THE ARCADIA MUNICIPAL CODE WHEREAS, pursuant to the Arcadia Municipal Code Section 5120.7, the Arcadia City Council is authorized to fix and determine the uniform rates that may be charged for collecting or removing garbage, refuse or recyclables from any premises in the City; and WHEREAS, all residential units in the City are required to participate in the City's refuse collection service; and WHEREAS, the franchisee under that certain Residential Refuse and Recycling Agreement is not authorized to charge or collect any fees or rates other than the fees and rates set forth in this Resolution and the fees and rates shall remain in effect, unless changed by resolution of the City Council of the City of Arcadia. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: 1 SECTION 1. Commencing July 1, 2009, the monthly rates for residential refuse and recycling collection services shall be those set forth in Exhibit "A" attached hereto. SECTION 2. Commencing July 1, 2010, the monthly rates for residential refuse and recycling collection services shall be those set forth in Exhibit "B" attached hereto. SECTION 3. All rates set forth in this Resolution shall be reflected on all refuse bills issued after July 1, 2009 and July 1, 2010 respectively. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2009. ATTEST: City Clerk APPROVED AS TO FORM: City Attorney Mayor of the City of Arcadia 2 Exhibit "A" City of Arcadia Residential Refuse and Recycling Collection Service Single Family Rate Schedule Effective July 1, 2009 the monthly residential refuse and recycling service rates are: BN Additional STANDARD SERVICE RATES $0.00 $0.00 $1267 BN Additional $11.44 SENIOR CITIZEN SERVICE RATES Container - 2009 # Green 'Bulky Item P/U $31.52 Total 'Bulky Item PIU 2009 # Green $29.50 Size -One Quart Additional sizes available Total Service Base GW Waste Recycling AS 939 Monthly Service Base GIN Waste Recycling AS 939 Monthly Category Rate carts Rate Charge Fee Fee Category Rate carts Rate Charge Fee Rate Single Family $12.57 1 $1.92 $0.78 $0.30 $15.57 ,' -.:: Single Family $11.33 1 $1.74 $0.78 $0.30 $14.15 Dwelling, (1) $12.57 2 $2.76 $0.78 $0.30 $16.40 -r Dwelling, (1) $11.33 2 $2.48 $0.78 $030 $1438 64 Gallon Can $12.57 3 $3.71 $0.78 $0.30 $17.36 "64 Gallon Can $11.33 3 $3.35 $0.78 $0.30 $15.76 $12.57 4 $4.60 $0.78 $0.30 $18.25 � . $11.33 4 $4.15 $0.78 $0.30 $16.56 $12.57 5 $5.65 $0.78 $0.30 $19.29 '- $11.33 5 $5.10 $0.78 $030 $17.51 Single Family $15.42 1 $1.92 $0.78 $0.30 $18.43 '(Single Family $13.91 1 $1.74 $0.78 $0,30 $16.73 D.11mg,(1) $15.42 2 $2.76 $0.78 $0.30 $19.26 _ Dwelling, (1) $13.91 2 $2.48 $0.78 $030 $17.46 96 Gallon Can $15.42 3 $3.71 $0.78 $0.30 $20.22 i:.; 96 Gallon Can $13.91 3 $335 $078 $0.30 $18.34 $1542 4 $4.60 $0.78 $0.30 $21.11 `: $13.91 4 $4.15 $0.78 $0.30 $19.14 $15.42 5 $565 $0.78 $0.30 $22.15 $13.91 5 $5.10 $0.78 $0.30 $20.08 Monthly Per >5 $1.05 '.,, Monthly Per >5 $0.96 Atltlitional Can 'Additional Can (Greenwaste) (Greenwaste) Single Family 64g $9.74 $0.00 $0.00 $974 Single Family 64g $8.75 $0.00 $0.00 $8.76 Dwelling, (1) 969 $9.90 $0.00 $0.00 $990 Dwelling, (1) %g $8.91 $0.00 $0.00 $8.91 Time Per Can Time Per Can Unscheduled Pickup Unscheduled Pickup Monthly Per 64g $6.85 $000 $0.00 $6.85 Monthly Per 64g $6.17 $0.00 $0.00 $6.17 Additional Can 96g $8.45 $0.00 $0.00 $8.45 Additional Can 96g $7.63 $000 $0.00 $7.63 BNAutomated $47.53 $0.78 $0.30 $48.61 BN Automated $43.37 $0.78 $0.30 $44.45 Collection Sec Collection Ser. BIY Collection $15,01 $0.00 $0.00 $15.01 BN Collection $13.51 $0.00 $0.00 $13.51 1 Time PIU 1 Time P/U Per Can Per Can BN Additional $12.67 $0.00 $0.00 $1267 BN Additional $11.44 $000 $0.00 $11.44 Container Container 'Bulky Item P/U $31.52 $0.00 $0.00 $31.52 'Bulky Item PIU $28.36 $0.00 $000 $28.36 Sharps Program $29.50 Size -One Quart Additional sizes available Sharps Program $29.50 Size- One Quart Additional sizes available 538.58 Size -One Gallon Additional sizes available .... S38.58 Size- One Gallon Additional sizes available Temporary 3 -yams Bin Service: Three Day Rental $106,68 Seven Day Rental $127.91 Additional Rate Per Day $6.03 Temporary Roll -Off Bin arrives: Rates are negotiated under the commercial non - exclusive contract This pricing applies only to residents that exceed the 4 "a Bulky Item collections Exhibit "A" City of Arcadia Residential Refuse and Recycling Collection Service Single Family Rate Schedule Effective July 1, 2010 the monthly residential refuse and recycling service rates are: This pnci applies only to residents that exceed the 4 tree Bulky Item collections STANDARD SERVICE RATES SENIOR CITIZEN SERVICE RATES 2010 # Green Towl 2010 # Green Total Service Base GW Waste Recycling AS 939 Monthly Service Base GIN Waste Recycling AS 939 Monthly Category Rate carts Rate Charge Fee Fee Category Rate carts Rate Charge Fee Rate Single Family $14.27 1 $2.16 $0.78 $030 $17.52 Single Family $12.88 1 $1.96 $0.78 $030 $15.92 Dwelling. (1) $14.27 2 $3.10 $0.70 $0.30 $18.45 Dwelling. (1) $1188 2 $2.78 $0.78 $0.30 $16.74 64 Gallon Can $14.27 3 $4.18 $0.78 $0.30 $19.53 64 Gallon Can $12.88 3 $3.77 50.78 $0.30 $17.73 $14.27 4 $5.18 $0.78 $0.30 $20.53 $12.88 4 $4.67 $0.78 $0.30 $18.63 $14.27 5 $6.35 $0.78 $0.30 $21.71 $12.88 5 $5.73 $0.78 $0.30 $19.69 Single Fa i $17.49 1 $2.16 $0.78 $0.30 $2013 Single Family $15.78 1 $1.96 50.78 $0.30 $18A2 Dwelling, (1) $17.49 2 $3.10 $0.78 $0.30 $21.67 Dwelling, (1) $15.78 2 $238 $0.78 $0.30 $19.64 96 Gallon Can $17.49 3 $4,18 $0.78 $0.30 $2274 96 Gallon Can $15.78 3 $377 $0.78 $0.30 $20.63 $17.49 4 55.18 $0.78 $0.30 $2374 515.78 4 $4.67 $0.78 $0.30 $21.53 $17,49 5 $6.35 $0.78 $030 $2492 $15.78 5 $5.73 $0.78 $0.30 $2259 Monthly Per >5 $1.05 Monthly Per >5 $0.96 Additional Can Additional Can (Greenwaste) (Greenwaste) Single Family 64g $10.96 50.00 $0.00 $10.96 Single Family 64g $9.86 $0.00 $0.00 $9.86 Dwelling, (1) 969 $11.14 $0.00 $0.00 $11.14 Dwelling, (1) 96g $10.02 $0.00 $0.00 $10.02 Time Par Can Time Per Can Unscheduled Pickup Unscheduled Pickup Monthly Per 64g $771 $0.00 $000 $771 Momhly Per 64g 56.94 $0.00 $0.00 $6.94 Additional Can 95g 59.50 $0.00 $000 $9.50 Additional Can 96g $B.58 $0.00 $0.00 $8.58 BN Automated $53.61 $0.78 $0.30 $54.69 BN Automated 548.92 $0.78 $0.30 $50.00 Collection Sa. Collection Bar, BN Collection $16.88 $0.00 $0.00 $16.88 B1Y Collection $15.20 $0.00 $0.00 $15.20 1 Time PIU 1 Time P/U Per Can Per Can BN Additional $14.25 $0,00 $0.00 $14.25 BN Additional $12.87 $0.00 $0.00 $12.87 Container Container 'Bulky Item PIU $35.46 $0,00 $0.00 $35.46 'Bulky Item PIU $31.91 $0.00 $0.00 $31.91 Shops Program $30.53 Sao- One Quart Additional sizes available Sharps Program $30.53 Size- One Quan Adalonal saes available $39.94 Size- One Gallon Additional sizes available $39.94 Size- One Gallon Adddwnel saes available Rvr r� Temporary 3 -Yard Bin Service: Temporary Roll -Off Bin Serii Three Day Rental $120.02 Rates are negotiated under the commercial non - exclusive conesot Seven Day Rental $143.90 Additional Rate Per Day $6.7B This pnci applies only to residents that exceed the 4 tree Bulky Item collections Exhibit "B" City of Arcadia Refuse Collection Service Multi- family Base Rate Schedule 20D9 -2010 Number of Bins STAB RATE and size - NUMBER OF PICK -UPS PER -WEEK 1 2 3 4 5 6 1 - 1.5 Yard $77.24 $154.50 $231.74 $308.99 5386.24 $463.47 2 - 1.5 yard $140.45 $280.90 $421.32 $561.75 $702.21 $842.65 3 -1.5 yard $210.67 $421.34 $632.00 $842.67 $1,053.33 $1,264.02 4- 1.5 yard $280.91 $561.80 $842.68 $1,123.58 $1,404.50 $1,685.37 5 - 1.5 yard $351.11 5702.25 $1,053.36 $1,404.51 $1,755.63 - $2,106.75 1 - 3 yard $92.04 $170.88 $276.08 $368.10 5460.15 $552.16 2 - 3 yard $164.32 $341.81 $492.93 $657.23 $821.54 $985.84 3 -3yard $236.66 $512.69 $709.90 $946.52 $1,183.15 $1,419.80 4 -3yard $308.94 $683.56 $926.78 51,235.70 $1,544.63 $1,741.05 5 -3yard $381.26 $854.45 $1.143.72 $1,524.94 $1,906.19 $2,287.38 1 - 6 yard $172.46 $344.95 $517.39 $689.86 $862.32 $1,034.80 Number of Bins DISMOUNT RATE and Size NUMBER OF PICK -UPS PER WEEK 1 2 3 4 5 6 1 - 1.5 yard $87.10 $174.20 $261.28 $348.37 $435.45 $522.55 2 - 1.5 yard $158.36 $316.70 $475.07 $633.42 $791.75 $950.11 3- 1.5 yard $237.52 $475.02 $712.54 $950.05 $1,187.57 $1,425.05 4 -1.5 yard $316.69 $633.40 $950.06 $1,266.74 $1,583.45 $1,900.14 5 -1.5 yard $395.88 $791.72 $1,187.60 $1,583.46 $1,979.33 $2,375.19 1 - 3 yard 510179 $188.99 $300.70 $400.84 $501.17 $601.37 2 -3yard $182.41 $377.91 $547.19 $729.61 $911.99 51,094.40 3 -3yard $264.56 $566.52 $793.65 $1,058.21 $1,322.76 $1,587.32 4- 3 yard $346.69 $755.88 $1,040.12 $1,386.82 $1,733.55 $2,080.22 5 -3yard $428.90 $944.87 $1,286.62 $1,715.50 $2,144.39 $2,573.25 1 - 6 yard 5188.80 $377.63 $566.39 $755.18 $943.97 $1,132.77 Number of Bins STAGE RATE and Size NUMBER OF PICK -UPS PER WEEK MIJIMIMEM 1 2 3 4 5 6 1 - 1.5 yard $95.29 $190.61 $285.89 $381.18 $476.47 $571.76 2 - 1.5 yard $173.30 5346.58 $519.86 $693.14 $866.42 $1,039.71 3- 1.5 yard $259.94 5519.87 $779.81 $1,039.74 $1,299.67 $1,559.59 4 -1.5 yard $346.59 $693.16 $1,039.75 $1,386.32 $1,732.93 $2,079.50 5 - 1.5 yard $433.23 $866.43 $1.299.65 $1,732.88 _ $2,166.10 $2,599.32 1 - 3 yard $108.43 $205.39 $325.36 $433.80 $542.26 $650.70 2 -3yard $200.48 $410.82 $601.37 $801.83 $1,002.31 $1,202.77 3 -3yard $292.50 $616.20 $877.48 $1,169.97 $1,462.44 $1,754.92 4 -3yard $364.53 $821.61 $1,153.59 $1,538.12 $1,922.65 $2,307.20 5 -3yard $476.53 S1,027.00 $1,429.58 $1,906.10 $2,382.65 $2,859.18 1 - 6 yard $204.96 $409.97 $614.87 $819.83 $1,024.77 $1,229.75 'Please add the following fees to the rates listed above: Recycling Fee (Reso # 6269): 2 -6 units = $1.00 per unit 7 or more units = $1.50 per unit AB 939 Fee = $0.30 per unit Exhibit "B" City of Arcadia Refuse and Recycling Collection Service Single- family Base Rate Schedule Single Family Greenwaste Bin Service: Includes one (1) greenwaste bin, one (1) refuse and one (1) recycling container serviced once weekly Curbside Bin Service: Resident rolls bin and containers to their curb and the trash truck drives directly to the container then empties the bin and containers. Backyard Bin Service Waste Management enters residents backyard, rolls out their greenwaste bin and refuse /recycling containers to the curb, empties them, then return them to their original location on the same day. Exhibit "B" City of Arcadia Refuse Collection Service Multi- family Base Rate Schedule 2010 -2011 Number of Bins STAB RATE and size NUMBER OF PICK -UPS PER -WEEK 1 2 3 4 5 6 1 - 1.5 Yard $86.90 $173.81 $260.71 $347.62 $434.51 $521.40 2 - 1.5 yard $158.00 $316.01 $473.99 $631.96 $789.99 $947.98 3 -1.5 yard $237.00 $474.00 $711.00 $948.00 $1,184.99 $1,422.02 4 -1.5 yard $316.03 $632.03 $948.02 $1,264.03 $1,580.06 $1,896.05 5 -1.5 yard $395.00 $790.03 $1,185.03 $1,580.07 $1,975.08 - $2,370.10 1 - 3 yard $103.54 - $192.24 $310.58 $414.11 $517.67 $621.18 2 -3yard $184.86 $384.53 $554.55 $739.38 $924.24 $1,109.07 3 -3yard $266.24 $576.77 $798.63 $1,064.83 $1,331.05 $1,597.27 4 -3yard $347.55 $769.01 $1,D42.62 $1,390.16 $1,737.70 $1,958.68 5 -3yard $428.92 $961.25 $1,286.69. $1,715.55 $2,144.46 $2,573.31 1 - 6 yard $194.02 $388.07 $582.06 $776.09 $970.11 $1,164.15 Number of Bins DISMOUNT RATE and Size NUMBER OF PICK -UPS PER WEEK Immiffilimm 1 2 3 4 5 6 1 - 1.5 yard $97.98 $195.97 $293.94 $391.91 $489.89 $587.87 2 -1.5 yard $178.15 $356.29 $534.45 $712.60 $890.72 $1,068.87 3 -1.5 yard $267.21 $534.40 $801.61 $1,068.81 $1,336.02 $1,603.18 4 -1.5 yard $356.27 $712.57 $1,068.82 $1,425.08 $1,781.38 $2,137.65 5 - 1.5 yard $445.36 $890.68 $1,336.04 $1,781.39 $2,226.74 $2,672.09 1 - 3 yard $116.77 $212.61 $338.29 $450.94. $563.81 $676.54 2 -3yard $205.21 $425.15 $615.59 $820.81 $1,025.99 $1,231.20 3 -3yard $297.62 $637.33 $892.86 $1,190.48 $1,488.11 $1,785.73 4 -3yard $390.03 $850.36 $1,170.13 $1,560.17 $1,950.24 $2,340.24 5 -3yard $482.51 $1,062.97 $1,447.44 $1,929.94 $2,412.43 $2,894.90 1 - 6 yard $212.40 $424.83 $637.19 $849.58 $1,061.96 $1,274.37 Number of Bins STAGE RATE ' and Size NUMBER OF PICK -UPS PER WEEK MIMMMEMMEM 1 2 3 4 5 6 1 - 1.5 yard $107.20 $214.43 $321.62 $428.83 $536.03 $643.23 2 - 1.5 yard $194.96 $389.90 $584.85 $779.78 $974.72 $1,169.68 3 - 1.5 yard $292.44 $584.86 $877.28 $1,169.70 $1,462.13 $1,754.54 4 -1.5 yard $389.91 $779.80 $1,169.72 $1,559.60 $1,949.54 $2,339.43 5- 1.5 yard $487.38 $974.73 $1,462.10 $1,949.49 $2,436.86 $2,924.24 1 - 3 yard $121.98 $231.07 $366.03 $488.03 $610.04 $732.04 2 -3yard $225.53 5462.17 $676.54 $902.06 $1,127.60 $1,353.12 3 -3yard $329.06 $693.22 $987.16 $1,316.21 $1,645.25 $1,974.29 4 -3yard $432.59 $924.31 $1,297.78 $1,730.39 $2,162.98 $2,595.59 5 -3yard $536.09 $1,155.38 $1,608.28 $2,144.36 $2,680.48 $3,216.57 1 -6 yard $230.58 $461.22 $691.73 $922.31 $1,152.87 $1,383.47 "Please add the following fees to the rates listed above: Recycling Fee (Reso # 6269): 2-6 units = $1.00 per unit 7 or more units = $1.50 per unit AB 939 Fee = $0.30 per unit Exhibit "B" City of Arcadia Refuse and Recycling Collection Service Single- family Base Rate Schedule Single Family Greenwaste Bin Service: Includes one (1) greenwaste bin, one (1) refuse and one (1) recycling container serviced once weekly Curbside Bin Service: Resident rolls bin and containers to their curb and the trash truck drives directly to the container then empties the bin and containers. Backyard Bin Service Waste Management enters residents backyard, rolls out their greenwaste bin and refuse /recycling containers to the curb, empties them, then return them to their original location on the same day. b. • • / • Office of the City Manager DATE: February 3, 2009 TO: Mayor and City Council FROM: Donald Penman, City Manager 41 By: Hue C. Quach, Administrative Services Directorlt6 SUBJECT: UTILITY USER'S TAX BALLOT MEASURE UPDATE Recommendation: File and receive report as presented Wifintiyira As the Council will recall, as a result of changes in Federal regulations, litigation and potential legislation, the City of Arcadia along with all other cities with a utility users tax (UUT) face the possible loss of these revenues as it pertains to telecommunications. The City Council met on both December 2 and December 16 to discuss this matter and at the conclusion of the discussion on December 16, appointed a subcommittee comprised of Mayor Harbicht and Council Member Kovacic to work with staff to review options for placing a ballot measure before the voters to modernize the existing UUT ordinance and maintain this important revenue that finances vital services for the community.. BACKGROUND As noted above due to new regulations, pending court cases and potential legislation, the UUT on certain telecommunications services is in jeopardy. Cities throughout California have been placing ballot measures before their voters to modernize their UUT ordinances to protect this revenue due to these issues. The League of California Cities reported that ten out of ten cities in California that have placed a UUT modernization ordinance before their voters while maintaining their current rate were successful in 2008. The issue is that older UUT ordinances have not kept pace with changes in technology so some users may be able to avoid paying this tax due to the type of telecommunications they utilize. Over time traditional land line use has decreased while at the same time the other types of service have increased. As an example the City currently collects UUT on cellular phone use, however this is one of the technologies that are in jeopardy based on the issues identified above. It is possible that depending on the ultimate language in the measure some new technologies in the future may be taxed that are not currently covered, however this would provide a more equitable distribution of the tax on ratepayers regardless of the technology used. Mayor and City Council - Utility User's Tax Ballot Measure Update February 3, 2009 Page 2 The City Council, conceptually, determined to place a measure before the voters to modernize the UUT which would maintain this existing tax and directed staff to work with a Council Subcommittee of Mayor Harbicht and Council member Kovacic to consider options and provide recommendations on a possible ballot measure. The Committee met on two occasions to discuss options for placing a measure before the voters. Issues considered included specific ballot measure language, selection of an actual election date and means of informing the community of this important issue. The Council committee at their meeting of January 23, 2009, directed staff to provide Council with an update on the proposal to place before the voters a Utility User's Tax Ballot measure to modernize the language and include newer technologies that may not be covered in the future. DISCUSSION Voter - approved ordinances that are properly "modernized" would remove outdated language that is the subject of on -going lawsuits in several California public agencies regarding old references to the federal excise tax (FET). They also redefine "telecommunications," which would allow various wireless services to fall within the utilities subject to UUT. A loss on the "FET" issue in the courts could result in a loss of up to 70 %, approximately $1,000,000, of existing Utility User's Tax telecommunications revenue to Arcadia. In addition, there currently is federal legislation proposed (HR 5793) that reportedly has considerable bipartisan support. HR 5793 would impose a five year moratorium on all "new" wireless taxes. If the cities were to lose in court regarding the federal excise tax (FET) issue, arguably, they may have to wait five years before they can seek voter approval of a "new" wireless tax. Cities with a voter approved modernized UUT ordinance would not be affected by this bill. Seeking a voter approved ordinance in 2009 may be a last best chance to modernize an ordinance that would be "technology neutral," and treats all taxpayers the same. Without the revenue from the existing UUT, the City could be forced to make cuts in programs and services that would affect all residents, such as police and fire protection, emergency response, parks and senior services, tree trimming, street repair, and library services. At the conclusion of the meeting on January 23, 2009, direction from the UUT Committee is as follows: • Bring back for Council's approval, all resolutions relating to ordering the submission of proposed measure before the voters for City Council meeting date of February 17, 2009. 0 Set the Special Municipal Election date for June 9, 2009. Mayor and City Council - Utility User's Tax Ballot Measure Update February 3, 2009 Page 3 Along with the ballot resolutions, approve a budget amendment appropriating $115,000 for this special election and $15,000 for the preparation and distribution of public information that would include two informational mailers to the community. Under Proposition 218 the City Council may call for a special election (as opposed to a general election) if the City Council finds that there exists an emergency requiring an election to be conducted earlier than the next regularly scheduled general election at which city council members are to be elected. This would require a unanimous vote of the Council. The next general municipal election is in April 2010 which staff believes is too long to wait in light of the pending court cases and possible Federal legislation. The election code provides that once the City Council adopts a resolution calling for an election, it cannot be held sooner then 88 days from the adoption of the resolution; however as a city initiated ballot measure election, there is no outside date as to when the election must be held (for initiatives the outside date is 103 days). FISCAL IMPACT Loss of the portion of the UUT that is in jeopardy is estimated at up to $1 million. A special election would cost approximately $115,000. For the City Councils information, staff did contact the County of Los Angeles to request information about consolidating with another possible election and the County estimated that a consolidated election would cost Arcadia about $165,000, so it would be about $50,000 less expensive to conduct the election ourselves. RECOMMENDATION Receive and file report as presented. ri3 v' Administrative Services Department DATE: February 3, 2009 TO: Mayor and City Council FROM: Donald Penman, City Manager By: Hue C. Quach, Administrative Services Director SUBJECT: Fiscal Year 2008 -09 Midyear Budget Review Recommendation: Provide direction SUMMARY Enclosed are mid -year General Fund revenue budget projections and an estimated ending fund balance for the fiscal year 2008 -09. The projections are based on the results of the audited financial statements for the fiscal year ending June 30, 2008 and six months revenues received in the current fiscal year. These projections assume a very conservative approach of fullv expendinq budgeted amounts for the fiscal vear, which historically has not been the case At this time specific recommendations of cuts on the expenditure side are not being offered, though this report can serve as a starting point for that discussion. Further recommendations for Fiscal Year 2008 -09 budget adjustments can be brought back before Council as additional directions may develop from tonight's meeting. Mid -year expenditure adjustments for Special Revenue and Enterprise Funds are offset by grant revenues or fees from that specific service and are self sustained. Expenditure adjustments from these funds do not affect or burden the City's General Fund. For that reason, this mid -year review will primarily focus on the General Fund. DISCUSSION The City Council adopted a FY 2008 -09 General Fund budget projecting revenues to exceed expenditures by $236,892 and an estimated fund balance of $5,192,395 (this is an adjusted number based on the recently completed audit and is higher then estimated at time of budget adoption). Since then, the economic conditions have taken a severe downturn and have adversely affected most of the City's major revenue sources. Staff has completed a review of those sources of revenues and combined with the recently completed annual financial audit for FY 07 -08, have revised revenue estimates including a new estimated ending fund balance. Mayor and City Council February 3, 2009 Based upon the recently completed annual audit of City funds and events subsequent to budget adoption, the estimate of the FY 08 -09 year -end balance has been revised from $5,192,395 to $2,803,378. The decrease in fund balance is attributed to the anticipated shortfall in projected revenue of $1,973,055 (line by line decrease of revenue is listed on the attached Exhibit A) and additional encumbrance of $415,962 that was carried overfrom the prior year into the current year's operating budget. GENERAL FUND - MID -YEAR REVIEW Beginning Fund Balance " Revenues Transfers in from other funds Total revenues Expenditures: Expenditures Prior Year Encumbrances Transfers out to other funds Total expenditures FY 2007 -08 FY 2008 -09 FY 2008 -09 Actual Adopted Budg E stimated Actual $5,409,000 $4,955,503 $4,955,503 $40,445,711 3,881,907 $41,861,845 4,655,271 $39,888,790 4,655,271 44,327,618 46,517;116 44,554,061 42,726,069 45,799,172 45,799,172 - - 415,962 2,055,046 481,052 481,052 44,781,115 46,280,224 46,696,186 Revenues over (under) expenditures (453,497) 236,892 (2,152,125) Ending Fund Balance' $4,955,503 $5,192,395 $2,803,378 The revised ending fund balance is projected based upon the following factors: Beginning Reserve Balance: At the conclusion of the fiscal year ending June 30, 2008 financial audit, the City's General Fund ended with a higher than projected ending fund balance of $4,955,503. This balance is $875,438 greater than the estimated fund balance of $4,080,065 originally projected. The increase was primarily attributed to not spending all of the budgeted expenditures by the close of the 2007 -2008 Fiscal Year. Although the total savings is reflected in the beginning fund balance for FY 2008 -09 please note that the net increase is actually $459,476 (not $875,438) as encumbrances of $415,962 were carried over to the current fiscal year's operating budget. Mayor and City Council February 3, 2009 Fiscal Year 2008 -09 Revenue Projections: Although the adopted budget was based on conservative revenue projections, the state of the economy took a severe drop since the adoption of the budget in June 2008. The conditions of the economy have adversely impacted the General Fund's major revenue sources requiring revisions to the initial projections. After observing all revenue trends for the past six months, staff recommends adjusting several revenue categories to reflect the effects of the downturn. The following table illustrates staff's recommended projections: FY 08 -09 Adopted FY 08 -09 % Budaet Est. Actual Chanae Chance Revenues: Sales Tax Property Tax Utility Users Tax Motor Vehicle License Fee Transient Occupancy Tax Franchise Fee Ambulance Charge Building Permits Business License Tax Plan Check Fee All Others Total Revenue $9,710,000 $9,252,000 (458,000) -4.7% 9,180X0 9,2D5,000 25,000 0.3% 5,301.000 5,267,000 (34,000) -0.6% 4,250,000 4,300,000 50,000 1.2% 3,045,000 2,495,000 (550,000) - 18.1% 1,100,000 1,020,000 (80,000) -7.3% 1,100,000 1,000,000 (100,000) -9.1% 950,000 741,000 (209,000) -22.0% 1,015,000 900,000 (115,000) -11.3% 840,500 582,000 (258,500) -30.8% 5,370,345 5,126,790 (243,555) -4.5% $41,861,845 $39,888,790 ($1,973,055) -4.7% Sales Tax: To estimate sales tax revenue, staff relied on past fiscal year's sales tax trends and the most recent date the City has for the current fiscal year (actual sales tax collected between July 1 and September 30). Sales tax data figures are showing an average 5.2 percent drop compared to the previous fiscal year for the same period. Based on this trend, staff projects this category to fall short of the budget by $458,000 and revising the budget to an estimate of $9,252,000. It should be noted however that the City does not have any specific sales tax figures for the holiday season and will not receive those until March. Property Tax: The City's property tax is one of the few major revenue sources that hasn't been adversely affect by the current economy. This category is expected to slightly surpass budgeted estimates by approximately $25,000. Mayor and City Council February 3, 2009 Utility Users Tax: At the adoption of this revenue item, it was projected to increase 3.6% compared to the prior year's estimated receipts. Since July 1, 2008, the average increase shown to date is approximately 1.5% in comparison to the previous year. Although the receipts are a bit higher than the previous year, it is coming in lower than projected. Staff projects a slight reduction to the existing budgeted figure of $5,301,000 to $5,267,000, a $34,000 decrease. Motor Vehicle License Fee (VLF): VLF in general has been adversely affected by the current bad economy. During the months of October through December, cities did not receive their monthly allocation of VLF due to significant drop in receipts. However, to the benefit of Arcadia, in 2004 -2005, as part of the "Triple -Flip" agreement made with the State when the VLF rate was lowered from 2% to .65 %, the State agreed to paying cities an in- lieu fee that is tied to the city's property tax assessments to make up for loss of revenue due to their proposed rate drop. This in -lieu payment makes up a large share of the overall VLF receives for the year. Although the City's monthly allocated amounts have declined significantly, the in -lieu more than offsets the monthly allocated drop. Staff projects a slight increase in receipts of $50,000, therefore increasing the budgeted figure of $4,250,000 to $4,300,000. Transient Occupancy Tax (TOT): As of the time of this report, the City has not received TOT remittances for the quarter ending December, 2008 from several of the City's larger establishments. However, remittances received from some hotels to date received for the months of October and November showed a drop of about 28 %, despite having the benefit of increased occupancies and rates for the Breeder's Cup event. As a result of data received to date, staff is seeing a significant downward trend in this area. As the economy worsens, staff expects further cuts in business travels and meetings. Based on the information to date, staff is projecting this revenue to fall short of $550,000 from the adopted budget of $3,045,000. Franchise Fee: Data shown to date shows a slight increase to from all franchisee with exception to Time Warner. Time Warner's remittances make up approximately 1/3 of the total franchise tax receipts. Although there are slight increases from other franchisees, the significant drop from Time Warner will offset those gains. The overall projected receipts will fall short of the projected budget figure of $1,100,000 by $80,000. Ambulance Charge: Based on receipt to date and compared to the previous year, staff has projected a decrease of 9.1 % or $100,000 short of the budgeted $1,100,000. Mayor and City Council February 3, 2009 Building Permits and Plan Check Fee: Both categories' receipts have shown significant decreases as the result of declines in the housing market and overall construction industry and the current credit tightening situation. Building Permits is projected to drop 22% or short of $209,000 from its budget of $950,000; and the Plan Check Fees are expected to drop 30 %, or short of $258,500 from it budget of $840,500. However, a drop in plan check revenue also translates to savings on the expenditure side as most of plan checks are reviewed by a consultant based on fees generated. Since the volume of plan check will decline, staff estimates that the offset to the revenue drop is a saving of $160,000 that will not be expended from the consultant's service. Business License Tax: Similar to other taxes that are influenced by the economy, this category is showing trend of an 11.3% drop on business tax receipts as of to date. Staff has revised the projected revenue to decrease $115,000 from its adopted figure of $1,015,000. Budget Balancing Options While there are a number of options the Council can consider to address this shortfall for FY08 -09, the fact that there are only five months remaining in the fiscal year will make this more difficult. As noted above, the City's expenditure history shows that the City rarely expends all the funds budgeted and this typically represents about a 1 % to 2% savings. In the recent past much of this savings was within the Police Department where significant vacancies occurred. Past levels of vacancies will not occur this year because the Council froze six (6) police officer positions in the budget which had been vacant for some time. Within the General Fund every one percent (1 %) savings would result in a $458,000 expenditure reduction so if the City achieved a 2% reduction in spending ($916,000) or 3% ($1,374,000) then the shortfall for the year would be significantly reduced. Therefore one option which is recommended is to aggressively reduce spending in the remaining five months of this fiscal year. There are many ways of achieving this however one must remember that employee related expenses within the General Fund represent about 73% of all expenditures. Reducing employee related expenses can include options such as freezing vacant positions (list attached — Exhibit B), implementing work furloughs, employee layoffs and freezing salary increases. A number of these employee related alternatives other then freezing positions would require more time to analyze in terms of the requirements in the City's collective bargaining agreements with our employee groups and the City Personnel rules and regulations. Therefore achieving meaningful reductions through these means this fiscal year may be difficult. Freezing positions is a viable alternative though it is purely random based on what is vacate today and would not necessarily reflect any priority in positions or programs. Mayor and City Council February 3, 2009 Another alternative is to reduce expenses as much as possible and use reserves to make up the difference. This could include use of proceeds from the sale of the Live Oak property to the Arcadia Redevelopment Agency to cover any additional shortfall. The sale of this land to the Agency generated $2,247,000 for the General Fund and these funds have not yet been transferred to the City and are not reflected in the Fund Balance numbers in this report. Admittedly these funds or any use of reserves is only a stop gap measure, and use of reserves long term is fiscally unwise but in this case of a severe economic crisis use of reserves over a short term is worthy of consideration. FISCAL IMPACT It is projected that the General Fund's will have a deficit of approximately $2.1 million for FY 08 -09 The deficit is a result of a revenue short fall of $1,973,055 from the General Fund adopted revenue budget and additional encumbrances of $415,962 carried over from FY 2007 -08. Should Council determine it prudent to use reserve balance to offset the anticipated deficit, it is projected that approximately $1.2 million of the reserve fund combined with savings of 2% from budgeted expenditures will be needed to address the overall deficit projection. If the Council wanted a more aggressive approach to reducing expenses staff can bring back more specific alternatives for your consideration. RECOMMENDATION Provide direction on addressing the anticipated shortfall in the FY 08 -09 General Fund Budget. Approved By: _- Donald Penman City Manager Exhibit A FY 08 -09 FY 08 -09 Adopted Estimated % Budget Actual Change Change Revenues: Sales Tax $9,710,000 $9,252,000 (458,000) -4.7% Property Tax 9,180,000 9,205,000 25,000 0.3% Utility Users Tax 5,301,000 5,267,000 (34,000) -0.6% Motor Vehicle License Fee 4,250,000 4,300,000 50,000 1.2% Transient Occupancy Tax 3,045,000 2,495,000 (550,000) -18.1% Franchise Fee 1,100,000 1,020,000 (80,000) -7.3% Ambulance Charge 1,100,000 1,000,000 (100,000) -9.1% Building Permits 950,000 741,000 (209,000) -22.0% Business License Tax 1,015,000 900,000 (115,000) -11.3% Plan Check Fee 840,500 582,000 (258,500) -30.8% All Others 5,370,345 5,126,790 (243,555) -4.5% Total Revenue $41,861,845 $39,888,790 ($1,973,055) -4.7% W U Z m Q � U m Q W WW I.L U N rn a a a) w C c N 0 N c 0 0 0 a m U O a) _U O CL a) Y a) a X d c m V N 0 z 0) It (0 m O 0 O O N N N (o M M 0) r r M O O V V' O co ti ¢ N O N V (o l0 O O 00 W In N 1 J (n O I- N M N 0) V d' (O (o (D V N (O �. 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