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HomeMy WebLinkAboutMarch 02, 2010CITY COUNCIL /REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, MARCH 2, 2010 CALL TO ORDER - Mayor Wuo called the meeting to order at 5:00 p.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Chandler, Harbicht, Kovacic and Wuo ABSENT: None STUDY SESSION PUBLIC COMMENTS (5 minutes per person) STUDY SESSION a. Update on Fiscal Year 2009 -10 Budget. 1 52:0029 City Manager Don Penman provided a brief overview of the mid -year Fiscal Year 2009 -10 budget revenues including the most recent General Fund projections. He noted that back in November 2009, revenues were reduced significantly in sales tax and transit occupancy tax; that the City Council chose the option of balancing that shortfall from savings achieved primarily through hiring freezes, the deferral of the year's slurry seal project, fee increases and added savings in expenses; that the latest revenue projections have shown little change since November's forecast and the latest projection show that revenues are slightly lower by approximately $140,000, a 0.35% difference in comparison. He noted that revisions continue to follow a conservative projection and that actual Sales Tax data for the quarter ending in December 2009 have not been remitted to the City; that Transient Occupancy Tax collected in January will not be known until April 2010. He reported on the upcoming Citywide Lighting Assessment in June which represents a $420,000 impact on the City if the property owners do not support the lighting assessment; he noted that each 1% of expenditure savings in the General Fund represents approximately $447,000; and commented on some of the top sales tax generator businesses in the City. Administrative Services Director Hue Quach provided a powerpoint presentation showing a line by line chart of all major revenue increases and decreases; he explained that adjustments were made based on recent data collected since November; that the revenue forecast reflects an additional decrease to overall revenues of approximately $137,842; and discussed the recent chances in revenue and the effect to fund balances in comparison to November numbers. He noted that the outlook for the rest of the fiscal year should improve and options currently in place should provide for a balanced budget with limited or no use of reserves by year end. It was the consensus of the City Council to receive and file the mid -year Fiscal Year 2009 -10 budget review update. b. Update and discussion regarding the Citywide Street Lighting Assessment District. Tom Tait, Public Works Services Director provided an update on the Citywide Lighting Assessment District assessment methodology and public outreach efforts; and noted that the Street Lighting Maintenance District will expire on June 30, 2010 and will cost the General Fund 03 -02 -10 approximately $420,000 in revenue if it is not passed. He provided information regarding the Professional Services Agreement with Lew Edwards Group for public outreach efforts for the formation of the new Citywide Lighting Assessment District; he reported that it costs the City approximately $1 million dollars annually to maintain street lighting in the City; that this year's Capital Improvement Budget includes a project to revisit the formation of a new Citywide Lighting Assessment District. Mr. Tait stated that Willdan Financial Services is currently working on parcel assessor's information and is preparing the draft Engineering Report; and stated that there are sufficient funds in the project's budget to hire the Lew Edwards Group as a public outreach consultant. Mr. Penman noted that this item will be further discussed in open session and action should be taken at that time. c. Report, discussion and direction regarding the proposed Low Income Senior Housing Project at 16 Campus Drive (continued from February 2, 2010). Jason Kruckeberg, Assistant City Manager /Development Services Director reported that at the February 2, 2010 Study Session, the Agency presented a proposal to develop a 43 unit affordable housing project on a 23,000 square foot lot at 16 Campus Drive; that at that meeting, the Agency requested staff to contact the Arcadia Unified School District in order to obtain their thoughts about the proposed project at that site and to further evaluate the financial issues. He reported that contact was made with the School District and noted that concerns raised were that residents at the proposed Campus Commons Housing Project might have issues with school - related activities, including nighttime athletic events, daily band practices and the congestion of students on Campus Drive in the mornings and afternoons; he noted that any development at that site would present some conflicts with the high school and that a senior housing project would be a low traffic generator compared to a commercial project. Mr. Kruckeberg explained that the development team is proposing to fund the project with 4% tax credits and tax exempt bonds; and that $6.9 million dollars from the Agency is being requested to fund the gap between the other funding sources and the total project cost. It was moved by Council /Agency Member Harbicht seconded by Council /Agency Member Chandler and carried on roll call vote to proceed with the development of the 43 unit affordable housing project at 16 Campus Drive. AYES: Council /Agency Member Harbicht, Chandler and Kovacic NOES: Council Member Amundson and Wuo ABSENT: None The Study Session adjourned at 6:35 p.m. THE CITY COUNCIL/REDEVELOPMENT AGENCY ADJOURNED TO OPEN SESSION Mayor Wuo 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 - Jason Kruckeberg, Assistant City Manager /Development Services Director 2 52:0030 03 -02 -10 ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Amundson, Chandler, Harbicht, Kovacic and Wuo ABSENT: None REPORT FROM CITY ATTORNEY /AGENCY COUNSEL ON STUDY SESSION ITEMS 52:0031 City Attorney Steve Deitsch reported that the City Council and Redevelopment Agency Board met in a Study Session to receive an update regarding the Fiscal Year 2009 -10 budget and the Citywide Street Lighting Assessment District and will both be discussed further in open session under City Manager items; he further reported that the City Council received a report from staff and discussed a proposed low income Senior Housing Project at 16 Campus Drive and noted that on a motion by Council Member Harbicht seconded by Council Member Chandler the Redevelopment Agency Board by a vote of 3 -2 with Mayor Wuo and Council Member Amundson voting no, directed staff to commence negotiations with the developer. SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS City Manager Don Penman announced that there were no supplemental reports regarding any agenda item. 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. PRESENTATIONS a. Presentation of a Proclamation designating March 11, 2010 as Arbor Day. b. Presentation of a Certificate to the Assistance League of Arcadia for 40th Anniversary of Operation School Bell. c. Presentation of a Certificate to the Arcadia High School Constitution Team. d. Presentation of a Life Saving Award to Police Officer Luis Vicuna and Certificates of Commendation to Miguel Salas and Maurice Llewellyn. 1. PUBLIC HEARING REDEVELOPMENT AGENCY ITEMS: a. Authorize the Executive Director to execute a lease with Rusnak/Arcadia for the property at 21 Morlan Place and adopt a categorical exemption from CEQA regarding the lease. Recommended Action: Approve 3 03 -02 -10 City Manager Don Penman announced that the term sheet has not yet been returned to the City by Rusnak and recommends that Redevelopment Agency Public Hearing Item 1.a be continued to the City Council meeting of March 16, 2010. By consensus of the City Council /Redevelopment Agency, Public Hearing Item 1.a was continued to March 16, 2010. PUBLIC COMMENTS Shong -Ching Tong appeared and commented on the newspaper advertising and coverage of City Council Candidate Paul Cheng in the Chinese newspaper. Beth Costanza, Chamber of Commerce invited everyone to attend the Government Affairs meeting on Thursday at 8:00 a.m.; that a resolution supporting the Local Taxpayer Public Safety and Transportation Act of 2010 will be voted on. REPORTS FROM THE MAYOR, CITY COUNCIL AND CITY CLERK 52:0032 Council Member Kovacic thanked the City Council for honoring the Arcadia High School Constitution Team; and also thanked the Constitution Team volunteer coaches who are all from Arcadia, Bob Garrett, Jim Romo, Karen McCreary and Jillian Engel. Council Member Amundson announced a Crime Prevention Seminar entitled "Don't be a Victim" on March 4 at the Library will be hosted by the Arcadia Police Department. Council Member Chandler congratulated the Arcadia High School Constitution Team and congratulated everyone who helped saved the life of Mr. Chin. Council Member Harbicht commented on Police Department's return to L.A. IMPACT which is on the consent calendar; he explained the purpose of the City's participation in putting an officer back into the regional agency program; and noted that he sits on the Board of the San Gabriel Valley Council of Governments and discussed yard waste and landfills which was recently a topic of discussion at a recent meeting. City Clerk Barrows had nothing to report. Mayor Wuo announced that on February 17th he attending with Council Member Kovacic a luncheon where Senator Dianne Feinstein spoke about health care; he noted that last weekend was Little League opening day ceremonies but were cancelled due to the rain; he wished all the Little League's a great baseball season; he further announced that the Silver Circle Volunteers /Commissioners Dinner is on March 25 he thanked all the volunteers and commissioners for their services to the City; he congratulated Miraya Negasu for coming in 4th place in the Winter Olympics Figure Skating; he announced and invited everyone to attend the Mayors Community breakfast at the Race Track Frontrunner Restaurant on April 8 he noted that Santa Anita with also be celebrating its 75h Anniversary; he announced the guest speakers as Carolyn Conley of Horse Racing Television; Hall of Fame Jockey Mike Smith and television creator, writer and producer David Milch. Mayor Wuo noted that he extended an invitation to Miraya Negasu to attend the Mayor's Community Breakfast. 4 03 -02 -10 2. CONSENT CALENDAR REDEVELOPMENT AGENCY ITEMS: a. Approve the Meeting Minutes of February 16, 2010. Recommended Action: Approve CITY COUNCIL ITEMS: b. Approve the Meeting Minutes of February 16, 2010. Recommended Action: Approve 52:0033 c. Adopt Resolution No. 6711 establishing subsequent arrest notifications and FBI criminal background checks with the Department of Justice. Recommended Action: Adopt d. Adopt Resolution No. 6714 authorizing submittal of the FY 2009 -10 Transportation Development Act — Article 4 Claim Form to receive Operation Funds for Arcadia Transit. Recommended Action: Adopt e. Accept all work performed by JRN Inc. for the Wilderness Park Slope Stabilization as complete and authorize the final payment to be made in accordance with the contract documents. Recommended Action: Approve f. Approve participation in the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (L.A. IMPACT) and utilize Asset Seizure Forfeiture Funds to pay for salary and benefits of a new Police Officer. Recommended Action: Approve g. Adopt Resolution No. 6713 providing for the participation of the City of Arcadia in the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (L.A. IMPACT). Recommended Action: Adopt h. Authorize the City Manager to execute a contract with CJ Construction, Inc. for the 2009 -2010 Annual Concrete Repair Project in the amount of $108,537. Recommended Action: Approve City Manager Don Penman announced that Consent Calendar Item 2.h be pulled for separate discussion. It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Kovacic and carried on roll call vote to approve Consent Calendar Items 2.a through 2.g. AYES: Council /Agency Member Chandler, Kovacic, Amundson, Harbicht and Wuo NOES: None ABSENT: None 5 03 -02 -10 52:0034 Regarding Consent Calendar Item 2.h, Mr. Penman reported that authorization of a 10% contingency was omitted from the recommendation in the staff report and needs City Council approval; he noted that $142,000 was budgeted for the 2009 -10 Annual Concrete Repair Project; that the bid amount is $98,670 with a 10% contingency for a total of $108,537 leaving about $34,000 of unused budgeted money; he requested that City Council approve the 10% contingency that was omitted from the staff report and approve the additional $34,000 to be used for additional asphalt repair work throughout the City; and that the materials would be purchased with the remaining money and the work would done by City crews. It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Kovacic and carried on roll call vote to approve Consent Calendar Item 2.h. AYES: Council /Agency Member Chandler, Kovacic, Amundson, Harbicht and Wuo NOES: None ABSENT: None 2. CITY MANAGER ITEMS /EXECUTIVE DIRECTOR ITEMS: a. Update on Fiscal Year 2009 -10 Budget. Recommended Action: Receive and file. City Manager Don Penman provided a brief overview of the mid -year Fiscal Year 2009 -10 budget revenues including the most recent General Fund revenue budget projections. He noted that back in November 2009, it was reported that revenues were reduced significantly in sales tax and transit occupancy tax; that the City Council chose the option of balancing that shortfall from savings achieved primarily through hiring freezes, the deferral of the year's slurry seal project, fee increases and added savings in expenses; that the latest revenue projections have shown little change since November's forecast and the latest projection shows that revenues are slightly lower than the November projections by approximately $140,000, a 0.35% difference in comparison to November. He noted that revisions continue to follow a conservative projection and that actual Sales Tax data for the quarter ending in December 2009 have not been remitted to the City; that Transient Occupancy Tax collected in January will not be known until April 2010. He commented on the upcoming Citywide Lighting Assessment in June which represents a $420,000 impact on the City if the property owners do not support the lighting assessment and the increase in property taxes. Administrative Services Director Hue Quach provided a powerpoint presentation showing a line by line explanation of various revenues; he commented on an additional projected decrease of $140,000 since November; and explained and provided an analysis of changes to each revenue category. He noted that the outlook for the rest of the fiscal year should improve and that the options currently in place provide for a balanced budget with limited or no use of reserves by year end. It was the consensus of the City Council to receive and file the fiscal year 2009 -10 budget review update. 6 03 -02 -10 52:0035 b. Introduce Ordinance No. 2264 amending Section 2664.5.1 of the Arcadia Municipal Code requiring operators to pay all taxes, interest and penalties as a condition precedent to seeking judicial review of a determination of Transient Occupancy Tax Liability. Recommended Action: Introduce City Attorney Steve Deitsch reported that the proposed Ordinance allows the City to continue collecting all taxes, interest and penalties from hotel operators who wish to appeal Transient Occupancy Tax (TOT) determinations; he explained that in the recent Superior Court case of City of Anaheim v. Priceline.com, the California Appeals Court held that if a hotel operator seeks judicial review of a City's TOT determination the hotel operator is not required to pay TOT, interest and penalties prior to pursuing judicial review unless the city's municipal code explicitly includes a " pay first, litigate later" provision which will ensure transient occupancy tax collection. Mr. Deitsch advised that in order for the City to ensure TOT collection, staff recommends that the Arcadia Municipal Code be amended to include a "pay first, litigate later." It was moved by Council Member Harbicht, seconded by Council Member Chandler and carried on roll call vote to introduce Ordinance No. 2264 amending Section 2664.5.1 of the Arcadia Municipal Code requiring operators to pay all taxes, interest and penalties as a condition precedent to seeking judicial review of a determination of Transient Occupancy Tax Liability. AYES: Council /Agency Member Harbicht, Chandler, Amundson, Kovacic, and Wuo NOES: None ABSENT: None c. Adopt Resolution No. 6710 supporting the City of Arcadia's Local Hazard Mitigation Plan in compliance with the Disaster Mitigation Act of 2000 (DMA 2000). Recommended Action: Adopt Battalion Chief Barry Spriggs reported that the review and update a Local Hazard Mitigation Plan is required by the Federal Emergency Management Agency (FEMA) every five years in order for the City to receive federal funding for both pre- disaster and post- disaster mitigation projects; and that failure to adopt a Local Hazard Mitigation Plan will forfeit the City's eligibility of federal funds for disaster assistance. He noted that the hazards in the plan that could impact Arcadia are earthquakes, wildfires, debris flow /landslides, flooding, high winds, drought, hazardous materials and terrorism; and explained that the mission of the 2010 Local Hazard Mitigation Plan is to promote sound public policy designed to protect residents, critical facilities, infrastructure, private property and the environment from natural and human caused hazards. It was moved by Council Member Chandler, seconded by Council Member Amundson and carried on roll call vote to adopt Resolution No. 6710 supporting the City of Arcadia's Local Hazard Mitigation Plan in compliance with the Disaster Mitigation Act of 2000 (DMA 2000). AYES: Council /Agency Member Chandler, Amundson, Harbicht, Kovacic, and Wuo NOES: None ABSENT: None 7 03 -02 -10 AYES: Council /Agency Member Harbicht, Amundson, Chandler, Kovacic, and Wuo NOES: None ABSENT: None 52:0036 d. Adopt Resolution No. 6712 supporting the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. Recommended Action: Adopt Hue Quach, Administrative Services Director reported that the League of California Cities with a coalition of public safety, local government and transportation leaders filed a ballot measure to protect local revenues. Mr. Quach explained that the Local Taxpayer, Public Safety and Transportation Act of 2010 closes loopholes to prevent the State from taking, borrowing or redirecting local tax money dedicated to supporting local government, transportation and public transit. He further explained that the success of this ballot measure would protect the City from the State taking away or borrowing Gas Tax and Prop 42 revenue which is critical for street and transportation projects totaling more than $1.4 million dollars annually as of fiscal year 2009 -10; and the potential for the State to repeat what already occurred in fiscal year 2009 -10 when the State borrowed $1.2 million dollars in property tax money and $1.8 million dollars of tax increment revenue from the Redevelopment Agency over the fiscal year 2009 -10 and 2010 -11 budgets. He did note that the property tax money was paid back in bonds. In response to a question raised by Council Member Kovacic regarding the City's taking a advocacy position, City Attorney Deitsch responded that because this is not a local ballot measure that is not limited to just Arcadia, but statewide concern, the City is permitted as a legislative body to place the City of Arcadia on record as advocating a statewide ballot. It was moved by Council Member Harbicht, seconded by Council Member Amundson and carried on roll call vote to adopt Resolution No. 6712 supporting the Local Taxpayer, Public Safety and Transportation Protection Act of 2010. e. Determination of whether Day Spas, Salons and other Personal Service Uses are inappropriate uses within the Central Redevelopment Proiect Area pursuant to Resolution No. ARA 172. Recommended Action: Determine uses are Inappropriate Jason Kruckeberg, Assistant City Manager /Development Services Director reported that Arcadia Redevelopment Agency Resolution No. 172 which was adopted in January 1983; he explained that the resolution established certain use restrictions and design requirements for the Central Redevelopment Project Area; and included as part of that Resolution is a list of "inappropriate uses" that the Agency generally does not allow in the Project Area. He noted that the stated purpose of ARA Resolution No. 172 includes the desire to eliminate blight in the Project Area, to encourage and facilitate the establishment and growth of high quality retail outlets, stores and restaurants, and professional office uses, and to discourage unattractive, incompatible and non - harmonious uses; he further noted that the restrictions are supplemental to the Zoning Code and cannot be more permissive within the Zoning Code, but can be (and are) more restrictive to meet the goals of the Agency for the Project Area. He reported some of the inappropriate uses as acupressure studios, nail salons, massage parlors, and beauty colleges. 8 03 -02 -10 He explained the business license application process for day spas or general beauty salons, and noted that staff found that as long as the overall use was broad, such as a day spa that offers numerous types of treatments, it had been approved as a compliant use; that previous determinations may not protect the health, safety, and welfare of the community; that these uses do often cause a blighting influence and in many cases did not complement the Project Area; that inspections of such uses by a City team led by the Police Department and Code Services found numerous code violations and illegal activity at such uses, from lack of licensing to illegal massage to prostitution; that the proposed determination is that uses such as day spas, general salons, and other personal service uses are deemed to be similar in character to existing inappropriate uses pursuant to ARA Resolution No. 172 and should now not be allowed within the Project Area; and noted that this determination would not apply to existing established uses, only to new uses not yet approved. It was moved by Council Member Kovacic, seconded by Council Member Harbicht and carried on roll call vote that Day Spas, Salons and other Personal Service Uses are inappropriate uses within the Central Redevelopment Project Area pursuant to Resolution No. ARA 172; and that a condition be added that "it would be deemed to be an incompatible use for any existing use to expand with any use deemed to be inappropriate." AYES: Council /Agency Member Kovacic, Harbicht, Amundson, Chandler and Wuo NOES: None ABSENT: None 52:0037 f. Authorize the City Manager to execute a Professional Services Agreement with Lew Edwards Group for public outreach efforts for the Citywide Lighting Assessment District in the amount of $27,500. Recommended Action: Approve Tom Tait, Public Works Services Director provided the report regarding approval of a Professional Services Agreement with Lew Edwards Group for public outreach effort for the formation of the new Citywide Lighting Assessment District; he reported that the existing Street Lighting Assessment District will sunset on June 30, 2010; he noted that the City will lose approximately $420,000 in revenue to the General Fund; that it costs the City approximately $1 million dollars annual to maintain street lighting; and that this year's Capital Improvement Budget includes a project to revisit the formation of a new Citywide Lighting Assessment District. Mr. Tait stated that Willdan Financial Services is currently working on parcel assessor's information and preparing the draft Engineering Report; and noted that there are funds in the project's budget to hire a public outreach consultant. He further stated that the Public Works Services Department solicited Request for Proposals for public outreach in January 2010; that three (3) proposals were received, evaluated and interviewed by staff; that staff felt the Lew Edwards Group was the most qualified in providing a strategic approach for public outreach services for the proposed Citywide Lighting Assessment District; he explained their expertise and experience with Lighting Assessment Districts and their familiarity with the City based on their experience working with the Arcadia School District towards a successful passage of Bond Measure I. 9 03 -02 -10 It was moved by Council Member Harbicht, seconded by Council Member Chandler and carried on roll call vote to authorize the City Manager to execute a Professional Services Agreement with Lew Edwards Group for public outreach efforts for the Citywide Lighting Assessment District in the amount of $27,500. AYES: Council /Agency Member Harbicht, Chandler, Amundson, Kovacic and Wuo NOES: None ABSENT: None ADJOURNMENT The City Council /Redevelopment Agency adjourned this meeting at 9:00 p.m. in memory of Victoria DeLong (sister -in -law of Arcadia Police Sergeant M. Gima) to Tuesday, March 16, 2010, 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. ATTEST: James H. Barrows, City Clerk 10 52:0038 03 -02 -10