HomeMy WebLinkAboutFebruary 3, 200951:0015
CITY COUNCIL/REDEVELOPMENT AGENCY
REGULAR MEETING MINUTES
TUESDAY, FEBRUARY 3, 2009
CALL TO ORDER
Mayor Harbicht called the meeting to order at 5:30 p.m.
ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS:
PRESENT: Council/Agency Member Amundson, Chandler, Kovacic, Wuo and Harbicht
ABSENT: None
CLOSED SESSION PUBLIC COMMENTS (5 minutes per person)
None
CLOSED SESSION
a. Pursuant to Government Code Section 54956(a) to confer with legal counsel
regarding the case of Westfield. LLC, et al. v. Citv 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.
Mr. Penman discussed the extraordinary difficult fiscal times and economic conditions as it
relates to the City. He reported that based on six months of revenue receipts received to date it
is appears that there will be about a $2 million dollar revenue shortfall this fiscal year which is
about a 4.7% revenue reduction. He commented on savings in expenditures which represents
departments spending less than actually budgeted. He further reported that sales tax which is
the City's single largest revenue source such as the retail holiday sales will not be available until
some time in March. He discussed vacant positions and noted that each department will
analyze each vacant position and report back on the impacts of that position remaining vacant
through the end of the fiscal year.
Hue Quach, Administrative Services Director discussed revenues affected by the economy such
as sales tax and noted that the most recent information the City has to date (July 1 through
September 30) shows a 5.2% drop compared to the previous fiscal year which staff projects to
fall short by $458,000. He reported a shortfall of $550,000 in Transient Occupancy Tax and
noted that the City has not received the quarter ending December numbers however based on
data received to date, a significant drop is projected despite having the benefit of increased
occupancy and rates for the Breeder's Cup event. He commented that sales tax and transient
occupancy tax make up about $1 million dollars of the estimated $2 million dollar shortfall. He
reported that building permits are projected to drop about 22% or $209,000 due to the decline in
the housing market and overall construction industry and plan check fees are expected to drop
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51:0016
about 30% or $258,500. He further reported the drop in plan check revenue also translates into
savings on the expenditure side as most plan checks are reviewed by consultants based on
fees generated, however since the volume of plan checks will decline, staff estimates that the
offset to the revenue drop is a saving of about $160,000; business license tax is similar to other
taxes that are influenced by the economy and is showing a trend of an 11.3% drop on business
tax receipts to date and staff revised the projected revenue to decrease $115,000; staff has
projected a 9.1% or $100,000 shortfall on collection of ambulance charges. Mr. Quach
reiterated that the City's General Fund will have a revenue shortfall of approximately $1.9 million
dollars.
The City Council directed staff to come back at the next meeting with an analysis of each of the
vacant positions and the impact to the department if the position were frozen, expenditure cuts
that could be made through the end of the fiscal year to help close the shortfall this year and
employee options.
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.
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:
PRESENT: Council/Agency Member Amundson, Chandler, Kovacic, Wuo and Harbicht
ABSENT: None
REPORT FROM CITY ATTORNEY/AGENCY COUNSEL ON STUDY SESSIONlCLOSED
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, no reportable action was
taken.
Mr. Deitsch also reported that the City Council met in a Study Session to hear a report and to
discuss and provide direction regarding the Mid-Year Budget review. He further reported the
City Council directed staff to bring back additional information and options to the next City
Council meeting concerning the Mid-Year Budget review.
SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR
REGARDING AGENDA ITEMS
None.
02-03-2009
2
51:0017
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 COMMENTS
Sarah Eagle, American Cancer Society appeared
Relay for Life at the Santa Anita Race Track is on
Charles Gilb. She provided information regarding
Plaque to Mrs. Ruth Gilb.
and announced the 2009 Arcadia Annual
June 27 and 28 and will be in memory of
Relay for Life and presented a Dedication
Soledad King, PTSA President of Camino Grove Elementary School appeared and reported on
various events and activities going on at Camino Grove Elementary School. She also thanked
Mayor Harbicht for attending a PTSA meeting and explain how the City operates.
Beth Costanza, President of the Arcadia Chamber of Commerce appeared and announced that
July 16th is the 75th year anniversary of the Arcadia Chamber of Commerce. She noted the
Chamber Installation Dinner is March 27th and announced that Mickey and Lee Segal were
honored as Citizen's of the Year and will receive their award at the Installation Dinner. She also
reported on other activities going on around the Chamber and the Community.
Tony Escimilla, Chairperson of the Arcadia Relay for Life announced that an informational
gathering regarding the Relay for Life will meet this Friday at the Ruth and Charles Gilb
Historical Museum 11:30 to 2:30 p.m. and invited everyone to attend.
Vince Foley appeared and supported the Waste Management contract and rates.
Mayor Harbicht announced that earlier in the day the City of Arcadia was honored with a plaque
by the. Los Angeles County Board of Supervisors in recognition of the City being named by
Business Week Magazine as "the best place in California to raise children." He noted that the
City Council accepted the award on behalf of the community and citizens of Arcadia.
REPORTS FROM THE MAYOR. CITY COUNCIL AND CITY CLERK
City Clerk Barrows congratulated Soledad on her presentation and noted that Mayor Harbicht
will be at Baldwin Stocker on Tuesday night.
Council Member Kovacic announced that Mayor Harbicht was recently installed as the District
Leader of the Lucky Baldwin District of the Boys Scouts of America; he congratulated Mickey
and Lee Segal on being selected as Citizens of the Year; he announced that the Friends of the
Library need volunteers in the Book Store and urged everyone to donate books. He noted that
he will be leaving to Sacramento with the Arcadia Constitution team to compete in the State
Finals and thanked the City for allowing the Constitution Team to use the Council Chambers
every Monday night to practice. He commented on the award received from the Board of
Supervisors and commented on the "F" grade received by hoth the L.A. Conservancy and
American Lung Association and requested staff check into the criteria used and how the City
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51:0018
can improve the grades. Mayor Pro Tem Wuo and Council Member Amundson concurred with
Council Member Kovacic's request.
Council Member Amundson noted that on January 23rd he attended the Police Department
retirement dinners of Chet King, Rosemarie Espejo, Clayton "Wally' Post and Gail Post and
noted that cumulatively they had 110 years of experience and congratulated them on their
retirement and service to the community. He noted the loss of a friend, Mr. Randall Johnson
and read a tribute from his memorial service.
Council Member Chandler had no comments.
Mayor Pro Tempore Wuo congratulated Mickey and Lee Segal on their Citizen of the Year
Award; he noted he also attended the Police Department Retirement Dinner on January 23rd
and noted the attendance of retired Police Department employees. He also noted on January
30th the Arcadia Chinese Association sponsored a luncheon at the Senior Center and on
January 31st he and Council Member Kovacic attended the Arcadia High School Chinese
Parents Booster Club New Years Dinner and fundraiser. He commented on the Arcadia Relay
for Life which he brought into Arcadia 5 to 6 years ago and encouraged everyone to support and
attend the event and thanked the Santa Anita for donating the facility.
Mayor Harbicht announced the Mayor's Community Breakfast on March 27 and noted the
celebration will be about "the Children of Arcadia" and guest speakers will be 2009 Rose Queen
Courtney Lee and Dr. Laura Schlessinger and encouraged everyone to attend. Mayor Harbicht
appointed Mayor Pro Tem John Wuo as the Los Angeles County Sanitation District alternate
effective immediately. He read a letter addressed to Police Chief Sanderson commending Sgt.
Dean Caputo and the Arcadia Police Department facility and congratulated Sgt. Caputo.
CONSENT CALENDAR
a. ARDrove the Regular Meeting Minutes of January 20 2009
Recommended Action: Approve
CITY COUNCIL ITEMS:
b. Approve the Reoular Meeting Minutes of January 20 2009
Recommended Action: Approve
c. Adopt Resolution No 6670 denvino Conditional Use Permit Application No 08
U5 antl tha ralafoA ~ f ~ ~
Recommended Action: Adopt
d.
Recommended Action: Approve
02-03-2009
51:0019
A motion was made by Council/Agency Member Amundson seconded by Council/Agency
Member Wuo and carried on roll call vote to approve items 1.a through 1.d on the City
CouncillAgency Consent Calendar.
AYES: Council/Agency Member Amundson, Wuo, Chandler, Kovacic and Harbicht
NOES: None
ABSENT: None
ABSTAIN: Council/Agency Member Kovacic (Consent Calendar Items a, b and c)
2. CITY MANAGER/EXECUTIVE DIRECTOR ITEMS:
a. Authorize the Citv Manager to retain Lewis Events for event services at the Citv's
2009 Julv 4th celebration and waive the Citv's ourchasing regulations relative to
competitive bidding.
Recommended Action: Approve
Sara Somogyi, Director of Recreation and Community Services presented the staff report to
retain Lewis Events for entertainment at the City's 2009 July 4th celebration. She described the
entertainment and services that Lewis Events would be providing to the City; she noted that the
City hired Lewis Events for the 4th of July event in 2005 and other City events. She indicated
that the proposal received from Lewis Event is $33,247 and recommends approval of $35,000.
She noted that the additional $1,753 would only be used if necessary. She also recommended
that that City Council waive the City's purchasing regulations regarding competitive bidding due
to the unique services being provided. She noted that the total cost of the event is $80,000;
$49,000 is in a trust account specifically designated for this event; Oak Tree Association and
Santa Anita Park have jointly committed $10,000. She advised that the City Manager has
received a commitment from Westfield for $10,000. She noted that if additional sponsors are
not secured an additional $12,000 would need to be budgeted for next year. Ms. Somogyi
recommended that the City Council waive the City's purchasing regulations regarding the
competitive bidding process and authorize the City Manager to execute an agreement with
Lewis Events in an amount not to exceed $35,000 for the 2009 4th of July event.
A motion was made by Mayor Harbicht seconded by Council Member Chandler and carried on
roll call vote to cancel the 2009 4th of July Celebration due to budget constraints.
AYES: Council/Agency Member Harbicht, Chandler, Amundson, Kovacic and Wuo
NOES: None
ABSENT: None
b.
No action taken due to motion taken on Consent Calendar Item (a).
02-03-2009
competitive bidding.
Recommended Action: Approve (event cancelled)
51:0020
c. Adopt Resolution No 6663 setting the residential refuse rate schedule for fiscal
year 2009110 and fiscal vear 2010/2011 in accordance with the residential refuse
and recvclmg contract with Waste Management Inc (Continued from January 6,
2009)
Recommended Action: Adopt
Authorize the Citv Manager to execute a seven (71 vear contract with Waste
Management Inc. for the exclusive collection of residential refuse and recyclables
for the City of Arcadia
Recommended Action: Approve
Marie Rodriguez, Public Works Services Department presented a report addressing concerns
raised by the City Council at the January 6, 2009 City Council meeting regarding certain
services related to the Waste Management contract. She explained that staff met with Waste
Management regarding one day a week refuse collection, the use of smaller refuse carts to
encourage more recycling, and an amendment in the contract that guarantees Arcadia's refuse
rates will not exceed the applicable rates charged in more than one-third of all cities in the San
Gabriel Valley. She advised that Waste Management is not asking fora 35% increase for
complete "catch-up rates" but that the 25% increase includes a $100,000 Administrative Fee in
addition to the Consumer Price Index, Disposal Facility Fees and Fuel Producer Price Index for
the next two years and noted that Waste Management is only asking fora 10.55% in catch-up
rates for the price of fuel and the balance of the increase is cost of living adjustments for the
next 2 years of the contract. She reported that Waste Management has agreed to adjust their
collection schedule and minimize traffic around each of the local schools. -She further reported
that Waste Management was very accommodating and responsive to the City's needs and '
concerns and recommended that the City Council approve the Residential Refuse and
Recycling Contract and adopt the resolution setting the residential refuse rate schedule for fiscal
years 2009-10 and 2010-11.
Council Member Kovacic reported that he and Council Member Amundson contacted four cities
who have one day a week refuse service and received positive comments from the cities of
Rolling Hills Estates, San Dimas and La Verne. He noted that no response was received from
the fourth city. He complimented staff on their negotiations with Waste Management.
A motion was made by Council/Agency Member Chandler, seconded by Council/Agency
Member Wuo and carried on roll call vote to adopt Resolution No. 6663 setting the service rates
for the collection of residential refuse and recyclables pursuant to Section 5120.7 of the Arcadia
Municipal Code and 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.
AYES: Council/Agency Member Chandler, Wuo, Amundson, Kovacic and Harbicht
NOES: None
ABSENT: None
J
02-03-2009
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51:0021
d. Update reoardino proposed Utility Users Tax Ballot Measure.
Recommended Action: Receive and File
Mr. Penman provided the City Council with an update regarding the proposed utility users tax
ballot measure. He explained changes in Federal regulations, litigation and potential legislation
that may cause the City of Arcadia along with other cities to lose a portion of utility users tax
pertaining to telecommunications. He noted that a subcommittee was appointed by the City
Council, consisting of Mayor Harbicht and Council Member Kovacic to work with staff to
consider options and provide recommendations on a possible ballot measure before the voters
to maintain the existing utility users tax on telecommunications. Mr. Penman reported that
cities around the state have not kept up with the changes in technology and as a result of that,
telecommunication companies have been challenging the validity of utility taxes on
telecommunications. He further reported that there are court cases pending that could
invalidate portions of existing taxes on telecommunication services. He noted that in the past
year and a half, cities throughout California have placed ballot measures before their voters to
approve changes to modernize their ordinances to address new technology so that all rate
payers are treated equally. Mr. Penman further noted that some users may be able to avoid
paying this tax due to the type of telecommunications they utilize such as the traditional land line
phone. He advised that last year 10 cities in the area took ballot measures to their voters to
modernize their ordinances to cover new technology without a rate change all passed. Mr.
Penman felt that if placed before the voters and explained properly, the voters would
understand its importance. He advised that this tax currently generates somewhere between
$750,000 and $1,000,000 to the general fund and if the ordinance is not modernized and the
court cases proceed and invalidate portions of existing utility users tax on telecommunications
the City would lose that existing revenue. He reiterated that this is existing revenue that the City
currently has based on an existing 5% rate; this is not a new or increased tax. Mr. Penman
noted that is currently a proposal before Congress to create a moratorium on changes cities
may want to take and if passed could go into effect in 2010 which would prohibit cities from
submitting a ballot measure to the voters to modernize utility users tax as it relates to
telecommunications. Mr. Penman further noted that cities with voter approved modernized
ordinances would not be affected by this bill if a ballot measure is approved by the voters in
2009. He advised that the City Council to consider placing this ballot measure before the voters
at a June 9, 2009 special election and prepare the appropriate resolutions for approval at the
next City Council meeting.
Mayor Harbicht explained that this would just clean up and modernize the ordinance and is not
an increase in tax. He further explained the Proposition 218 process which requires this to go
before the voters and he noted the importance of passing this measure.
Council Member Kovacic also explained the importance of presenting this before the voters.
It was the consensus of the City Council to bring back the appropriate resolution for a Special
Election to be held on June 9, 2009 regarding a Utility Users Tax ballot measure.
e. Report on Studv Session -Mid Year Budget.
Recommended Action: Provide Direction
Mr. Penman provided an overview of the mid year budget which was discussed in an earlier
study session. Mr. Penman explained the mid year budget process which is conducted
annually and provides an opportunity to make adjustments for shortfalls in revenue or
expenditure if necessary. He commented on the extraordinary difficult fiscal times and
02-03-2009
7
51:0022
economic conditions as they relate to the City. He reported that based on six months of
revenues received it is appears that there will be about a $2 million dollar revenue shortfall this '
fiscal year which represents about 4.7% of the revenue base. He commented on savings in
expenditures which represents departments spending less than actually budgeted. He further
noted that sales tax, which is the City's single largest revenue source and includes retail holiday
sales and car dealership revenue will not be available until some time in March.
Hue Quach, Administrative Services Director noted that staff has relied on past fiscal year's
sales tax trends and the most recent information the City has for the current fiscal year (July 1
through September 30) which shows a 5.2% drop. He reported a shortfall of $550,000 in
Transient Occupancy Tax and noted that the City has not received the quarter ending
December numbers; however, based on data received to date, a significant drop is projected
despite having the benefit of increased occupancies and rates for the Breeder's Cup event. He
commented that sales tax and transient occupancy tax make up about $1 million dollars of the
estimated $2 million dollar shortfall. He reported that building permits are projected to drop
about 22% or $209,000 due to the decline in the housing market and overall construction
industry and plan check fees are expected to drop about 30% or $258,500. He further reported
the drop in plan check revenue also translates into savings on the expenditure side as most
plan checks are reviewed by consultants based on fees generated, however since the volume of
plan checks will decline, staff estimates that the offset to the revenue drop is a saving of about
$160,000 that will not be expended for consultant services; business license tax is similar to
other taxes that are influenced by the economy and is showing a trend of an 11.3% drop on
business tax receipts to date and staff revised the projected revenue to decrease $115,000; and
regarding ambulance charges, based on receipts to date staff has projected a 9.1 % or $100,00
shortfall of collections. Mr. Quach reiterated that the City's General Fund will have a revenue
shortfall of approximately $1.9 million dollars.
Mr. Penman noted that 73% of the City's expenditures are employee salaries and benefits
related including a number of services such as janitorial, tree trimming, landscape maintenance
and computer support services which are outsourced because it has proven to be more cost
effective. Mr. Penman further noted that there are currently 16 vacant positions and one option
would be to freeze those positions. He reported that the City Council has directed staff to
review and analyze each position and report on the impact to the department if that position
where frozen through the balance of the fiscal year however it would be purely random based
on what is vacant today and would not necessarily reflect any priority in positions or programs.
He discussed work furloughs, employee layoffs and freezing salary increases. He noted that
these options would have to be reviewed carefully because of personnel rules that dictate how
the City operates and collective bargaining agreements with employee groups. He further noted
the cancellation of the fireworks show would save approximately $40,000 to $50,000 and
payment for rent from the water fund to the City will add approximately $150,000; another option
is to eliminate contract maintenance work the City pays for freeway off ramp clean up due to
CalTrans budget constraints years ago and not providing the level of maintenance of the off
ramps in Arcadia so the City Council at that time appropriated $1,875 per month to maintain the
off ramps. He advised that staff will provide to the City Council at the next meeting with
additional information on freezing positions and other employee benefits.
Mayor Harbicht announced that in the Study Session, the City Council directed staff to come
back with an analysis of each of the vacant positions and the impact to the department if the
position were frozen and report back on expenditure cuts that could be made through the end of
the fiscal year.
02-03-2009
51:0023
' ADJOURNMENT
The City Council/Redevelopment Agency adjourned this meeting in memory of Fred Coots,
Henry K Quan 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.
~-~~~
Robert C. Harbicht, Mayor
ATTEST:
% ~~ s.---'~.
~`----~
mes H. Barrows, City Clerk
02-03-2009