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HomeMy WebLinkAboutItem 2a: Minutes: November 3, 2009CITY COUNCIL /REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, NOVEMBER 3, 2009 CALL TO ORDER Mayor Wuo called the meeting to order at 5:30 p.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Chandler, Harbicht, Kovacic and Wuo ABSENT: None 51:0146 STUDY SESSION /CLOSED SESSION PUBLIC COMMENTS (5 minutes per person) None STUDY SESSION a. Report, discussion and direction regarding the 2009 -2010 Fiscal Year Budget. Hue Quach, Administrative Services Director provided a detailed update on the most recent General Fund budget projections and estimated ending fund balances for the fiscal year 2009- 10; and explained that the projections were based on the results of the year end closing financial statements for the fiscal year ending June 30, 2009 and only a couple of months of revenues received in the current fiscal year. He noted that expenditures for Special Revenue and Enterprise Funds are offset by grant revenues or fees from specific services. No direction or action was taken; this item will be discussed in open session under City Manager Reports. b. Request from NextG Networks of California to lease the use of City streetlight poles and conduit for placement of Telecommunications equipment. Philip Wray, Deputy Director of Development Services reported that NextG Networks of California, a telecommunications company, has approached the City to lease the use of City street Tight poles and underground conduit for placement of telecommunication equipment; and noted that NextG builds and leases networks to wireless carriers and has offered a lease fee of $500 per year for each pole used and a fee of $1.00 per foot of underground conduit. He added that NextG has approved leases with several other cities in the San Gabriel Valley using the same lease rates for use of city -owned poles and utility company poles; and noted that there are several benefits to placing the equipment on city facilities; that the equipment on the street light poles are more aesthetically pleasing than on the utility poles and the City has more control over NextG's choice of City pole locations. He noted that each location will generate revenue for the City and NextG has currently requested the use of three street lights, and could be more in the future. The City Council unanimously directed staff to negotiate and prepare a Lease Agreement with NextG Networks in a form satisfactory to the City for City Council approval at a future meeting. 11 -03 -2009 CLOSED SESSION PRESENT: Council /Agency Member Amundson, Chandler, Harbicht, Kovacic and Wuo ABSENT: None 51:0147 a. Pursuant to Government Code Section 54956.9(a) to confer with legal counsel regarding the workers' compensation case of Donald Wilsterman. RECONVENE CITY COUNCIL /REDEVELOPMENT AGENCY MEETING TO OPEN SESSION Mayor Wuo called the regular meeting to order in the Council Chamber at 7:00 p.m. INVOCATION Reverend John Payton, Point Loma Nazarene University PLEDGE OF ALLEGIANCE Arcadia Police Chief Robert Sanderson ROLL CALL OF CITY COUNCIL/REDEVELOPMENT AGENCY MEMBERS: REPORT FROM CITY ATTORNEY /AGENCY COUNSEL ON STUDY SESSION /CLOSED SESSION ITEMS City Attorney Steve Deitsch reported that the City Council conducted a Study Session to hear reports regarding the two (2) items listed on the agenda (a) a report was given regarding an update on the 2009 -2010 Fiscal Year Budget and will be further discussed under City Manager Reports in open session; and (b) a request from NextG Networks of California to lease the use of City streetlight poles and conduit for placement of Telecommunications equipment was discussed. The City Council, unanimously directed staff to negotiate a Lease Agreement with NextG Networks in a form satisfactory to the City and bring back to a future City Council meeting for consideration. Mr. Deitsch further reported that the City Council met in a Closed Session to consider the one (1) item listed on the posted agenda, no reportable action was taken. SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS None MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by Mayor Pro Tem /Agency Vice Chair 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. 11 -03 -2009 PRESENTATIONS a. Proclamation honoring Arcadia Festival of Bands Month. b. Proclamation honoring Methodist Hospital Day. C. Presentation of "Brag about Your Bag" Proclamation. PUBLIC COMMENTS REPORTS FROM THE MAYOR, CITY COUNCIL AND CITY CLERK 51:0148 Ching Chen, President of Dana Middle School PTSA appeared and reported on activities accomplished by students and thanked the City Council for their support of recreation and youth programs. Helen Garcia, representing Yellow Cab Company of San Gabriel Valley appeared and offered the use of one taxi cab free of charge for any city event during the holiday season; and proposed the possibility of an exclusive franchise with the City of Arcadia in order to maintain a safe community and stop the operation of unlicensed and uninsured taxi cabs in the City. Council Member Kovacic thanked Ms. Chen for her report on Dana Middle School activities; he announced the Dana Joint Use Gym Groundbreaking Ceremony on Thursday November 5th; he provided information regarding the annual Community Inter -faith Thanksgiving Service and at the Church of the Good Shepherd; and he encouraged residents to make donations to the Foothill Unity Center for the Thanksgiving food distribution. Mayor Pro Tem Amundson reported on the "Santa Anita Japanese Assembly Center" exhibit which will be displayed at the Arcadia Historical Museum; and commented on the number of illegal aliens in the prisons and the cost to the taxpayers. Council Member Chandler reported on the Gold Line Phase II project and what transpired at the recent Metro Gold Line Board meeting; he announced that Mr. Harbicht will be teaching a "Bicycle Touring Basic" class at the Pasadena City College in February 2010. Council Member Harbicht commented on the Methodist Hospital Crystal Ball; and encouraged everyone to attend the Arcadia Festival of Bands. City Clerk Barrows commented on the 56th year of the Band Review; he noted that only one band review was cancelled due to the death of President Kennedy; and announced that Police Chief Sanderson and Fire Chief Trabbie will be the Grand Marshals. Mayor Wuo announced the Asian Business Night will be held at the Masonic Temple and encouraged everyone to attend the luncheon honoring Veterans at the Community Center on November 13th; he thanked Mr. Chandler for representing the City of Arcadia on the Metro Gold Line Board; he reminded residents who are planning to do work on their homes to first contact the City Building Division to see if permits are required; and explained the penalty process if work is conducted without first obtaining a building permit; and he encouraged everyone to attend Breeders Cup at the Santa Anita Race Track. 11 -03 -2009 1. CONSENT CALENDAR J. REDEVELOPMENT AGENCY ITEMS: a. Approve the Meeting Minutes of October 20, 2009. Recommended Action: Approve b. Approve a one (1) year extension to the Professional Services Agreement with The Ferguson Group for Federal Legislative Advocacy Services in the amount of $65,000. Recommended Action: Approve CITY COUNCIL ITEMS: c. Approve the Meeting Minutes of October 20, 2009. Recommended Action: Approve 51:0149 d. Approve a one (1) year extension to the Professional Services Agreement with The Ferguson Group for Federal Legislative Advocacy Services in the amount of $65,000. Recommended Action: Approve e. Award a purchase order contract to Undercar Plus for the purchase of automotive repair parts for City vehicles in the amount of $29,778. Recommended Action: Approve f. Authorize the City Manager to execute a Memorandum of Understanding with Los Angeles County Metropolitan Transportation Authority to receive Transit Formula Allocation Program Funds. Recommended Action: Approve g. Authorize the City Manager to execute a one (1) year contract extension with B &P Painting for painting and wood refinishing services at various city facilities in the amount of $40,455. Recommended Action: Approve h. Accept all work performed by Environmental Construction, Inc. for the construction of the Colorado Well Wellhead facilities as complete and authorize the final payment to be made in accordance with the contract documents. Recommended Action: Approve i. Adopt Resolution No. 6699 approving Program Supplement Agreement No. 011 N to encumber Federal Aid funds for the Street Rehabilitation of Duarte Road between El Monte Avenue and Santa Anita Avenue project. Recommended Action: Adopt Adopt Resolution No. 6701 amending the Appropriation Limit for fiscal year 2009- 2010. Recommended Action: Adopt 11 -03 -2009 51:0150 In response to an inquiry by Council Member Amundson regarding Consent Calendar Item b and d, Mr. Penman responded that due to the positive services provided to the City by The Ferguson Group, staff felt that it was fair to not include any fee reduction as part of their Agreement with the City. It was moved by Council /Agency Member Harbicht, and seconded by Council /Agency Member Chandler and carried on roll call vote to approve Consent Calendar items 1.a through 1.j. AYES: Council /Agency Member Harbicht, Chandler, Amundson, Kovacic and Wuo NOES: None ABSENT: None 2. CITY MANAGER a. Report, discussion and direction regarding the 2009 -2010 Fiscal Year Budget. (Continued from September 15, 2009) Recommended Action: Provide Direction City Manager Don Penman provided a summary of the revenue shortfall for fiscal year 2008- 2009; and explained the alternatives implemented to mitigate the expected deficit to the General Fund. He commented on the Second Quarter Sales Tax allocation for each city in Los Angeles County and Sale tax "in- lieu" payments and adjustments for cities in Los Angeles County for Fiscal Year 2009 -2010; he reported that Arcadia will receive approximately $700,000 less from the sales tax "in lieu" in Fiscal Year 2009 -2010; that the sales tax "in -lieu" was part of the agreement the State essentially imposed on local government several years ago where they kept one quarter of the sales tax and instead paid cities with property tax money. Administrative Services Director, Hue Quach reported that the General Fund substantially improved its fund balance as the 2008 -09 fiscal year ended and at the closing the healthier fund balance was primarily attributed in achieving the mid -year proposed expenditure cuts and better results in the overall revenue in Fiscal Year 2008 -09, including the use of $54,891 in Reserve Funds as opposed to the initial projected need of $500,00 and a one time "discount" /saving of $251,404 from prepayment of the City's annual CaIPERS retirement obligation early in the fiscal year. Mr. Quach explained the three options available for City Council consideration which will address the projected shortfall of $1,252,838 in the General Fund for the Fiscal Year 2009 -10 due to a further drop in sales tax receipts seen in the first and second quarter of calendar year; he noted that Option 1 would have the least impact on services; it would involve use of remaining Reserve Balance from the Fiscal 2008 -09, $450,000; Council approved FY 2009 -10 Reserve Fund of $300,000; projected new revenues from already approved User Fee increase in FY 2009 -10; savings from the general Plan Update; and savings generated as of to date from unfilled vacancies; Option 2 is to not use the carry over of the FY 2008 -09 remaining Reserve Funds and differ the slurry seal street project for one year and transfer $500,000 Gas Tax Fund from the Capital Improvement Fund to General Fund for all operational and qualifying "Gas Tax" expenditures that have been budgeted in the General Fund; this option would provide an estimated surplus balance of $153,560 for the end of FY 2009 -10; and Option 3 is to not use the carry over of the FY 2008 -09 remaining Reserve and proposes the use of remaining 5% Priority List which would involve cutting personnel and critical services to Development Services Department, Fire, Police and Library Services. Mr. Quach advised that the best approach for the City Council is to implement Option 2 as this would least affect service level at this time other than cancellation of the slurry seal program; and explained if the revenue improves as the fiscal year progresses, the Council could reinstate the project since it is done during the summer. 11 -03 -2009 AYES: Council Member Chandler, Amundson, Harbicht, Kovacic, and Wuo NOES: None ABSENT: None 51:0151 It was moved by Council Member Harbicht seconded by Council Member Kovacic and carried on roll call vote to implement Option 2; not use the carry over of the FY 2008 -09 remaining Reserve Funds and transfer $500,000 Gas Tax Fund from the Capital Improvement Fund for the slurry seal street project to General Fund for all operational and qualifying "Gas Tax" expenditures that have been budgeted in the General Fund b. Adopt Resolution No. 6700 approving the form of and authorizing the execution and delivery of a purchase and sale agreement and related documents with respect to the sale of the Seller's Proposition 1 A receivable from the State; and directing and authorizing certain other actions in connection therewith. Recommended Action: Adopt Hue Quach, Administrative Services Director reported on the emergency suspension of Proposition 1A that was passed by the Legislature and signed by the Governor as part of the 2009 -10 budget package; he explained that the State will borrow 8% of the amount of property tax revenue apportioned to cities, counties and special districts; and that for Arcadia, it is estimated to be $1,242,012; and the state will be required to repay those obligations plus a 2% set interest rate by June 30, 2013. It was moved by Council Member Chandler seconded by Council Member Amundson and carried on roll call vote to adopt Resolution No. 6700 approving the form of and authorizing the execution and delivery of a purchase and sale agreement and related documents with respect to the sale of the Seller's Proposition 1A receivable from the State; and directing and authorizing certain other actions in connection therewith. AYES: Council /Agency Member Chandler, Amundson, Harbicht, Kovacic, and Wuo NOES: None ABSENT: None c. Adopt Resolution No. 6702 repealing Resolution No. 6676 which amended Resolution No. 6562 relating to the expansion of Westfield Shoppingtown Santa Anita (Phase 1 b) at 400 South Baldwin Avenue to allow additional restaurant space. Recommended Action: Adopt Jason Kruckeberg, Development Services Director provided background information regarding the expansion of Westfield Shoppingtown Santa Anita Mall Phase 1 b "The Promenade he noted that on July 21, 2009 the City Council approved Resolution No. 6676 which amended Resolution No. 6652 granting Westfield to expand restaurant uses into 13,500 square feet of tenant space. He further noted that the decision of the City Council was challenged based on the California Environmental Quality Act (CEQA) by Santa Anita Associates, LLC, and a petition for Writ of Mandamus and Administrative Mandamus was filed with Los Angeles Superior Court. He added that on October 14, 2009, the City Council received a letter from Westfield requesting that the City Council vacate its approval of Resolution No. 6676 citing Westfield does not believe the dedication of resources and expenditure of funds necessary to defend the lawsuit is warranted under the circumstances. 11 -03 -2009 It was moved by Council Member Chandler seconded by Council Member Harbicht and carried on roll call vote to adopt Resolution No. 6702 repealing Resolution No. 6676 which amended Resolution No. 6562 relating to the expansion of Westfield Shoppingtown Santa Anita (Phase 1 b) at 400 South Baldwin Avenue to allow additional restaurant space. AYES: Council /Agency Member Chandler, Harbicht, Amundson, Kovacic and Wuo NOES: None ABSENT: None ADJOURNMENT The City Council /Redevelopment Agency meeting adjourned at 8:20 p.m. to Tuesday, November 17, 2009, 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. By: James H. Barrows, City Clerk 51:0152 Lisa Mussenden Chief Deputy City Clerk /Records Manager 11 -03 -2009