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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 02-03-2009 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 02-03-2009 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 6 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