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HomeMy WebLinkAboutItem 2a & b: City Council Minutes of March 15 & April 5, 2011 53:0051 CITY COUNCIL /REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, MARCH 15, 2011 CALL TO ORDER Mayor Amundson called the meeting to order at 6:00 p.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Chandler, Harbicht, Kovacic and Amundson ABSENT: Council /Agency Member Segal It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Harbicht to excuse Council /Agency Member Segal. CLOSED SESSION PUBLIC COMMENTS (5 minutes per person) — No one appeared. CLOSED SESSION a. Pursuant to Government Code Section 54956.8 conference with real property negotiators: Property: 35 West Huntington Drive, 21 Morlan Place, 101 -111 North Santa Anita Avenue, 121 -159 North Santa Anita Avenue and Assessor Parcel No. 5775 -025- 025 (South side of Santa Clara Street, West of Santa Anita Avenue) Agency Negotiators: City Manager /Agency Executive Director Don Penman, Assistant City Manager /Deputy Executive Director Jason Kruckeberg and Economic Development Manager Jerry Schwartz Negotiating Parties: Arcadia Redevelopment Agency, Rusnak/Arcadia (Paul Rusnak) and Don and Ray Dahlgren. Under Negotiation: Price and Terms of Payment b. Pursuant to Government Code Section 54957.6 to confer with labor negotiators. City Negotiators: Administrative Services Director Hue Quach, Human Resources Administrator Michael Casalou. Employee Organizations: Arcadia Public Works Employees Association, Arcadia City Employees Association, Arcadia Police Civilian Employees Association, Arcadia Police Officers' Association, Arcadia Firefighters' Association and unrepresented employees: Department Heads, Division Managers, Supervisors, and Part-time employees. THE CITY COUNCIL /REDEVELOPMENT AGENCY ADJOURNED TO OPEN SESSION Mayor /Agency Chair Amundson called the regular meeting to order at 7:00 p.m. INVOCATION — Reverend Larry Eckholm, Lutheran Church of the Cross PLEDGE OF ALLEGIANCE — Tom Tait, Public Works Services Director 03 -15 -11 53:0052 ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Chandler, Harbicht, Kovacic and Amundson ABSENT: Council /Agency Member Segal It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Harbicht to excuse Council /Agency Member Segal. REPORT FROM CITY ATTORNEY /AGENCY COUNSEL ON CLOSED SESSION ITEM City Attorney Stephen Deitsch announced that prior to the open meeting, the City Council /Redevelopment Agency Board met in Closed Session to consider the two (2) items listed on the posted agenda under closed session, no reportable action was taken. SUPPLEMENTAL INFORMATION FROM CITY MANAGER /EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS — Mr. Penman announced that there were no supplemental agenda items. MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by Council /Agency Member Chandler, seconded by Mayor Pro Tem Kovacic and carried on roll call vote to read all ordinances and resolutions by title only and waive the reading in full. With the consensus of the City Council, Mayor Amundson called for public comments at this time. PUBLIC COMMENTS Lisa Brock announced that she is giving her time to the Arcadia High School students. Michelle Kim, Arcadia High School ASB Student Representative appeared and reported how the budget cuts will affect the students; that 105 teachers and staff members received pink slips; that the school district is expecting $2 million dollars in budget cuts; and noted that without the special election in June, the deficit will increase to $3.1 million dollars. She stated that restrictions on AP classes have already occurred and an increase in class sizes are expected; that only certain students would be allowed to take summer school classes; and explained that they are all wearing pink to support the teachers. Jonathan Ma, Arcadia High School ASB President announced that they all are wearing pink to support the teachers and staff that received pink slips due to the budget cuts; that raising money through AEF (Arcadia Educational Foundation) will help with the budget shortfall; and noted that donations can be made on line at aef.ausd.net. 1. PUBLIC HEARING a. Approve the 2010 -2011 Weed Abatement Property List and direct the Los Angeles County Agricultural Commissioner to abate nuisances upon those properties. Recommended Action: Approve 03 -15 -11 53:0053 City Clerk James Barrows reported that on February 15, 2011, the City Council adopted Resolution No. 6754 declaring its intention to authorize the abatement of weeds, rubbish and refuse from various properties in the City of Arcadia by the Los Angeles County Agricultural Commissioner and scheduled a public hearing for March 15, 2011 in order to hear objections from property owners of those affected properties; that staff recommends the City Council approve the 2010 -11 Weed Abatement Property List and direct the Los Angeles County Agricultural Commissioner to abate nuisances on those properties within the City of Arcadia. Mayor Amundson opened the public hearing. No one appeared to provide testimony. A motion to close the public hearing was made by Council Member Chandler, seconded by Council Member Harbicht and seeing no further objection, Mayor Amundson declared the public hearing closed. It was moved by Council /Agency Member Harbicht, seconded by Council /Agency Member Chandler and carried on roll call vote to approve the 2010 -2011 Weed Abatement Property List and direct the Los Angeles County Agricultural Commissioner to abate nuisances upon those properties. AYES: Council /Agency Member Harbicht, Chandler, Kovacic and Amundson NOES: None ABSENT: Council /Agency Member Segal b. Consideration of an appeal of a denial by Planning Commission of Conditional Use Permit Application No. CUP 10 -20 with a parking modification to convert the existing 2, 274 square -foot take -out food establishment to a restaurant with a dining area for 20 patrons at 142 East Duarte Road. Recommended Action: Conditional Approval Lisa Flores, Senior Planner reported that an application to convert an existing 2,274 square foot take -out food service establishment to a restaurant with seating for 20 patrons within the existing shopping center at 140 -160 E. Duarte Road (dba Tasty Togo, 142 E. Duarte Road) was filed by Raymond Kwan on behalf of the property owner, Generation Chu, LLC; that staff had recommended approval of the application to the Planning Commission subject to conditions at their meeting on February 8, 2011; that the Planning Commission denied the application based on existing parking shortage at the location and that approval could worsen the parking • problem; and noted that the applicant's appealed the Planning Commission's to the City Council requesting the denial be overturned. Mrs. Flores explained that Tasty Togo had been operating since November 30, 2010 as a take -out only food service establishment with no seating which did not require a conditional use permit; and that shortly after Tasty Togo opened, the owners realized that the business would not survive without tables and chairs and that customers stated they would not return if there was nowhere to sit and eat; the applicant was then cited when tables and chairs were set up; and that the applicant's were apologetic and applied for a CUP. She stated that a parking survey of the parking lot was submitted by the applicant at the request of the City and found that there were 45 available parking spaces in the afternoon and up to 78 parking spaces during the evening after 5:30 p.m. She commented that staff concurred with the applicant's parking survey and recommended that the City Council overturn the Planning Commission's decision with conditions noted in the staff report. Mayor Amundson opened the public hearing. 03 -15 -11 53:0054 Elaine Gee -Wong appeared on behalf of the applicants as their translator; she apologized on behalf of the applicant and explained that their business would not survive if there are no tables and chairs and requested the City Council to overturn the Planning Commission's denial and allow tables and chairs in the establishment. Sammy Kwan, an Arcadia resident and owner of Tasty Togo appeared and apologized to the City for violating the Code and requested that their CUP be approved. A motion to close the public hearing was made by Council Member Chandler, seconded by Council Member Harbicht and seeing no further objection, Mayor Amundson declared the public hearing closed. It was moved by Council /Agency Member Harbicht, seconded by Council /Agency Member Chandler and carried on roll call vote to overturn the Planning Commission's denial and approve Conditional Use Permit No. CUP 10 -20 with the related parking modification to allow a 2,274 square foot restaurant with seating for 20 patrons at 142 E. Duarte Road; state the supporting findings and environmental determination and prepare a resolution for adoption at the next meeting that incorporates the City Council's decision, specific determinations and findings and conditions of approval. AYES: Council /Agency Member Harbicht, Chandler, Kovacic and Amundson NOES: None ABSENT: Council /Agency Member Segal c. Consideration of an appeal of a denial by Planning Commission of Conditional Use Permit Application No. CUP 10 -12 with a parking modification to allow a new 1,714 square -foot martial arts studio with a maximum of 2 instructors and 12 students at anv one time at 921 South Baldwin Avenue, Unit #D. Recommended Action: Conditional Approval Tim Schwehr, Assistant Planner explained that an application filed by Mr. Kwok for a new 1,724 square foot martial arts studio with a maximum of 2 instructors and 12 students at 921 S. Baldwin Avenue #D was denied by the Planning Commission based on an existing parking shortage at the location; that the Development Services Department had recommended approval of the application to the Planning Commission subject to certain conditions of approval which was denied; that the applicant appealed the Planning Commission's decision to the City Council requesting it be overturned. He provided background information regarding existing businesses in the same location previously approved with parking modifications; he explained the proposed class times as a condition of approval; that at the request of the City, the applicant provided a parking survey which staff also observed in order to verify the results of the parking survey and found it to be accurate. He also explained that after the applicant filed the appeal, staff conducted additional site observations of the parking lot during weekday business hours and weekend lunch and dinner hours; and indicated that the site can accommodate the proposed martial arts studio with the conditions listed in the staff report. Mayor Amundson opened the public hearing. Terence Kwok, Architect of the project appeared on behalf of the martial arts studio and explained that the martial arts studio is primarily for children ages 6 to 14; that the parents do not park their vehicles and stay, they drop off and pick up their children only; and requested changes in the time. 03 -15 -11 53:0055 A motion to close the public hearing was made by Mayor Pro Tem Kovacic, seconded by Council Member Harbicht and seeing no further objection, Mayor Amundson declared the public hearing closed. It was moved by Council /Agency Member Chandler, seconded by Council /Agency Member Harbicht and carried on roll call vote to overturn the Planning Commission's denial; and approve Conditional Use Permit No. CUP 10 -12 with the related parking modification to allow a new 1,714 square foot martial arts studio with a maximum of 2 instructors and 12 students at any one time at 921 S. Baldwin Avenue, Unit D; that the restriction on instruction hours shall be changed on Saturdays from 11:00 a.m. to 2:00 p.m. (instead of 3:00 p.m.) and that all other hours of instruction shall remain as recommended by staff; state the supporting findings and environmental determination, and direct staff to prepare a resolution for adoption at the next meeting that incorporates the City Council's decision, specific determinations and findings and conditions of approval. AYES: Council /Agency Member Chandler, Harbicht, Kovacic and Amundson NOES: None ABSENT: Council /Agency Member Segal d. Consideration of Text Amendment No. TA 11 -02 to amend the Arcadia Municipal Code pertaining to Temporary Banner Regulations. Ordinance No. 2283 amending Article IX, Chapter 2, Part 6 of the Arcadia Municipal Code pertaining to Temporary Banner Regulations. Recommended Action: Introduce Jim Kasama, Community Development Administrator reported that the Development Services Department is proposing to amend the City's temporary banner regulations to facilitate enforcement as directed by the City Council at a Study Session on January 18, 2011; he explained that the proposed ordinance will reduce the time allowed for illegal signs to be brought into compliance from 30 days to 5 days and will apply the 1/3 non -Roman alphabet identification limitation to temporary banners; and at the request of the City Council the Chamber of Commerce was consulted and agreed with the changes to the City's Sign Regulations. He explained that the two changes to the City's commercial sign regulations will improve staff's ability to enforce the temporary banner regulations and enhance the City's ability to respond to emergencies. Mayor Amundson opened the public hearing. No one appeared to provide testimony. A motion to close the public hearing was made by Mayor Pro Tem Kovacic, seconded by Council Member Harbicht and seeing no further objection, Mayor Amundson declared the public hearing closed. It was moved by Council /Agency Member Harbicht seconded by Council /Agency Member Chandler and carried on roll call vote to approve Text Amendment No. TA11 -02 and introduce Ordinance No. 2283 amending Article IX, Chapter 2, Part 6 of the Arcadia Municipal Code pertaining to Temporary Banner Regulations. AYES: Council /Agency Member Harbicht, Chandler, Kovacic and Amundson NOES: None ABSENT: Council /Agency Member Segal 03 -15 -11 53:0056 REPORTS FROM THE CITY COUNCIL AND CITY CLERK Council Member Chandler commented that he appreciated the Arcadia High School students and parents "pink" presentation. Mayor Pro Tem Kovacic commended the speakers and the solidarity they showed in support of the schools and encouraged everyone to donate and support the Arcadia Educational Foundation (AEF). Council Member Harbicht commented that the School District is run by an elected Board of Education and not the City; and that the students were not requesting assistance from the City because the City does not have the ability to do anything regarding the school district situation. City Clerk Barrows echoed Council Members Chandler, Kovacic and Harbicht's comments regarding the school district situation. Mayor Amundson thanked the City Council for their support regarding the Mayor's Community Breakfast; he announced that the Mayor's Community Breakfast will show on the City's cable channel; and on April 16 at the Library there will be an Action Workshop regarding emergency preparedness and he encouraged everyone to attend. 2. CONSENT CALENDAR REDEVELOPMENT AGENCY ITEMS: a. Approve and authorize the Executive Director to execute a Professional Services Agreement with UrbanPlace Consulting Group to provide consulting services to the Arcadia Downtown Business Association in the amount of $18,777. Recommended Action: Approve CITY COUNCIL ITEMS: b. Accept a donation from the Children's Hospital in Los Angeles for the 2011 Community Bike Ride in the amount of $4,000. Recommended Action: Accept c. Adopt Resolution No. 6758 amending Resolution 5827 changing the time of the regular meetings for the Planning Commission. Recommended Action: Adopt d. Adopt Resolution No. 6759 authorizing designated staff to file with the California Emergency Management Agency Requests for Financial Assistance under the Natural Disaster Assistance Act and similar statues. Recommended Action: Adopt e. Waive expenses related to traffic control services for the Seventeenth Annual Santa Anita Derby Day 5K to be held on Saturday, April 9, 2011. Recommended Action: Approve 03 -15 -11 53:0057 f. Authorize the City Manager to execute a Professional Services Agreement with respective companies within the Financing Team for the issuance of 2011 Series General Obligation Bonds for the Santa Anita Grade Separation Gold Line Project. Recommended Action: Approve Mayor Pro Tem Kovacic requested Consent Calendar item 2.e regarding the Santa Anita Derby Day 5K be pulled for separate discussion. It was moved by Council /Agency Member Chandler, seconded by Council /Agency Member Harbicht and carried on roll call vote to approve Consent Calendar items 2.a through 2.d and 2.f. AYES: Council /Agency Member Chandler, Harbicht, Kovacic and Amundson NOES: None ABSENT: Council /Agency Member Segal In response to a question from Mayor Pro Tem Kovacic regarding the traffic control services being waived because it is a chartable event, Mr. Penman responded that he agreed that the traffic control services should not be waived solely because it is a chartable event; that staff is also recommending traffic control services be waived because the event is sponsored by local organizations and businesses, Methodist Hospital, Westfield and Santa Anita and that profits from the race will be donated to Arcadia High School Athletic Boosters Club, the Arcadia Historical Museum and the Arcadia Police Explorers and another reason for waiving the traffic control service fees was that the event will draw over 5,000 runners in addition to family and friends of the runners. It was moved by Council /Agency Member Kovacic, seconded by Council /Agency Member Harbicht and carried on roll call vote to approve Consent Calendar item 2.e. AYES: Council /Agency Member Kovacic, Harbicht, Chandler and Amundson NOES: None ABSENT: Council /Agency Member Segal 3. CITY MANAGER/AGENCY DIRECTOR ITEMS: a. Approve and authorize the Executive Director to execute a Professional Services Agreement with Walker Parking Consultants for a Downtown Parking Study in the amount of $93,345 plus a 10% contingency. Recommended Action: Approve Jason Kruckeberg, Assistant City Manager /Development Services Director reported that a Downtown Parking Study is included in the 2010 -11 Redevelopment Agency Budget in an effort to revitalize the Downtown area and to prepare for the coming of the Gold Line; he stated that the City owns three separate parking lots grouped into two separate parking areas in the Downtown area which contain approximately 327 off street parking spaces; that a Downtown Parking Study will inventory current available parking, evaluate the demand and use of the City's parking spaces, review the effectiveness of existing public and private parking resources, evaluate creative methods of better utilizing existing public and private parking spaces, provide recommendations for planning and developing new parking resources, and provide recommendations for promoting the public parking resources available in the Downtown area. 03 -15 -11 53:0058 He reported that the primary goal of the study will provide a detailed "snapshot" of the demand for the parking spaces as well as the type of use they receive i.e. long term, short term, etc. and to be prepared for how future development and change of uses can be accommodated over time; he explained that new uses or expansions in the Downtown area are reviewed on a case - by -case basis and there is no comprehensive analysis to determine the impacts of these changes on City resources. He noted that Request for Proposals were sent to 7 qualified firms; that 3 were returned and evaluated based on the established criteria including the firm's professional qualifications, experience, understanding of the scope, proposed project approach and proposed costs; that Walker Parking Consultants was the best and most qualified and parking is the entire focus of the firm; he stated that the project is a redevelopment project and will be funded with redevelopment money; and recommended approval of a Professional Services Agreement with Walker Parking Consultants in the amount of $93,345. It was moved by Council /Agency Member Chandler, seconded by Council /Agency Member Kovacic and carried on roll call vote to approve and authorize the Executive Director to execute a Professional Services Agreement with Walker Parking Consultants for a Downtown Parking Study in the amount of $93,345 plus a 10% contingency. AYES: Council /Agency Member Chandler, Kovacic, Harbicht and Amundson NOES: None ABSENT: Council /Agency Member Segal b. Approve a request from Arcadia's Best Foundation for closure of First Avenue from Alta Street to Duarte Road for Community Event on July 2, 2011. Recommended Action: Approve with Conditions Mr. Penman reported that Arcadia's Best Foundation submitted a request to conduct an event involving a community parade, street fair, car show and performance program on First Avenue on Saturday, July 2, 2011; he reported that since most of the activities will be conducted in the public right -of -way, City Council permission is needed to close a number of streets in order to ensure public safety; and that all costs and fees for the street closure would be paid entirely by the event organizers. Mr. Penman indicated that due to the high costs related to multiple streets being closed for an extended period of time which would drive the costs above $10,000, event organizers met with Police Department staff to see what can be done to reduce the costs and noted that as a result of that meeting, the number of street closures and time frames have been significantly reduced to about $6,000 and recommends approval of the event with the following conditions (1) that all costs associated with the event be reimbursed by the Arcadia's Best Foundation; (2) that the Foundation shall indemnify and hold harmless the City in an amount and form approved by the City Attorney; (3) that all businesses and residents affected by the street closure shall be noticed of the timing of the street closures; and (4) that all sponsors shall secure a special event permit and all vendors who participate in the event shall secure an Arcadia business license. Mr. Penman added that the only other cost that has been identified besides the Police Department is for Public Works Services; that a street sweeper would be needed to clean up at the end of the event and one or two employees would be needed to pick up and empty trash containers throughout the course of the event; and noted that staff will meet with the Foundation to see if they have volunteers which would cut down on costs. 03 -15 -11 53:0059 At the request of Mayor Pro Tem Kovacic, Scott Hettrick, Arcadia's Best Foundation representative discussed the purpose of the event and the thought behind having a community event on July 2, 2011; he commented on anticipated and actual costs including pledges from sponsors; he stated that the Police Department helped him to scale down the costs for their services to about $6,000 and that he was just informed about the additional $3,000 cost for Public Works Services; he thanked the City Council in advance for any support they can provide. He indicated that Waste Management is a sponsor including 20 other individuals and organizations that have volunteered to pledge financial sponsorship and more than a dozen will pledge between $1,000 and $2,500 each and Waste Management has agreed to handle all trash services. Council Member Harbicht recommended that the City waive police costs up to $6,500 and that the foundation reimburse the City $3,000 for Public Works Services related costs. It was moved by Council /Agency Member Harbicht, seconded by Council /Agency Member Kovacic and carried on roll call vote to approve a request from Arcadia Best Foundation for closure of First Avenue from Alta Street to Duarte Road for Community Event on July 2, 2011; waive police costs in amount not to exceed $6,500 and reimburse the City $3,000 for Public Works Services costs; and that 1/3 of the costs come from Redevelopment Agency funds and 2/3 from the General Fund. AYES: Council /Agency Member Chandler, Harbicht, Kovacic and Amundson NOES: None ABSENT: Council /Agency Member Segal a. Report regarding Fiscal Year 2010 -11 budget review update and approval of budget appropriations for programs and expenditures occurring during the fiscal year; and adopt Resolution No. 6760 adopting and appropriating the amounts specified therein into the Fiscal Year 2010 -2011 Operating Budget for programs and expenditures that occurred during the fiscal year. Recommended Action: Receive and File Fiscal Year 2010 -11 Budget Review Update and adopt Resolution. Don Penman, City Manager explained that the purpose of the mid -year budget review is to determine the status of the City's fiscal position half way through the fiscal year; that adjustments, if necessary, can be made to the budget if projections are not achieved; he indicated that the mid -year report is through December 2010 and does not reflect the holiday sales tax which would not be available until early April. He reported that the remainder of the City's fiscal position has improved since the adoption of the budget in June 2010 when it was projected use of reserves to balance the budget would be about $574,000; and that it is now anticipated that only about $111,000 in reserves would be needed. Hue Quach, Administrative Services Director provided a brief mid -year line by line budget revenue review of the property tax, franchise fee, sales tax, transient occupancy tax, utility users tax, business license tax, plan check fee, building permits, motor vehicle license fees, ambulance subscription service charge and other miscellaneous revenue accounts; and provided a review regarding the saving on the expenditure side; he noted that the Police Department projected an additional savings of $232,000 from their operational line items in contract services and supplies accounts; and Library and Museum Services will have an additional savings of approximately $69,000 from personnel vacancies. He reported that there are a few additional appropriations that require City Council action to formalize their place in the 03 -15 -11 • 53:0060 2010 -11 budget; he reported and explained those additional appropriations (1) concession give back to employees; (2) physical examination agreement; (3) mandate for various vaccinations; and (4) the coyote program. It was moved by Council /Agency Member Kovacic, seconded by Council /Agency Member Harbicht and carried on roll call vote to receive and file the mid -year budget review update and adopt Resolution No. 6760 adopting and appropriating the amounts specified therein into the Fiscal Year 2010 -11 Operating Budget for programs and expenditures that occurred during the fiscal year. AYES: Council /Agency Member Kovacic, Harbicht, Chandler and Amundson NOES: None ABSENT: Council /Agency Member Segal ADJOURNMENT The City Council /Redevelopment Agency adjourned this meeting at 9:35 p.m. to Tuesday, April 5, 2011, 6:00 p.m. in City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. James H. Barrows, City Clerk By: Lisa Mussenden Chief Deputy City Clerk/Records Manager 03 -15 -11 53:0061 CITY COUNCIL /REDEVELOPMENT AGENCY REGULAR MEETING MINUTES TUESDAY, APRIL 5, 2011 CALL TO ORDER Mayor Amundson called the meeting to order at 6:00 p.m. ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Chandler, Harbicht, Kovacic and Amundson ABSENT: Council /Agency Member Segal It was moved by Council /Agency Member Harbicht seconded by Council /Agency Member Chandler to excuse Council /Agency Member Segal. CLOSED SESSION PUBLIC COMMENTS — No one appeared. CLOSED SESSION a. Pursuant to Government Code Section 54956.8 conference with real property negotiators: Property: 35 West Huntington Drive, 21 Morlan Place, 101 -111 North Santa Anita Avenue, 121 -159 North Santa Anita Avenue and Assessor Parcel No. 5775 - 025 -025 (South side of Santa Clara Street, West of Santa Anita Avenue) Agency Negotiators: City Manager /Agency Executive Director Don Penman, Assistant City Manager /Deputy Executive Director Jason Kruckeberg and Economic Development Manager Jerry Schwartz Negotiating Parties: Arcadia Redevelopment Agency, Rusnak/Arcadia (Paul Rusnak) and Don and Ray Dahlgren. Under Negotiation: Price and Terms of Payment b. Pursuant to Government Code Section 54957.6 to confer with labor negotiators. City Negotiators: Administrative Services Director Hue Quach, Human Resources Administrator Michael Casalou. Employee Organizations: Arcadia Public Works Employees Association, Arcadia City Employees Association, Arcadia Police Civilian Employees Association, Arcadia Police Officers' Association, Arcadia Firefighters' Association and unrepresented employees: Department Heads, Division Managers, Supervisors, and Part-time employees. c. Pursuant to Government Code Section 54956.9(b)(1) to confer with legal counsel regarding anticipated litigation — one (1) case. THE CITY COUNCIL /REDEVELOPMENT AGENCY ADJOURNED TO OPEN SESSION Mayor /Agency Chair Amundson called the regular meeting to order at 7:00 p.m. INVOCATION — Pastor Paul Beck, Sierra Madre Congregational Church 04 -05 -11 53:0062 PLEDGE OF ALLEGIANCE — Tony Trabbie, Fire Chief ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Chandler, Harbicht, Kovacic and Amundson ABSENT: Council /Agency Member Segal It was moved by Council /Agency Member Harbicht seconded by Council /Agency Member Chandler to excuse Council /Agency Member Segal REPORT FROM CITY ATTORNEY /AGENCY COUNSEL ON CLOSED SESSION ITEM City Attorney Stephen Deitsch announced that prior to the open meeting, the City Council /Redevelopment Agency Board met in Closed Session to consider the three (3) items listed on the posted agenda; that item c pertained to potential litigation and the facts are that there generally that there could be a California Environmental Quality Act (CEQA) challenge regarding a land use application, no reportable action was taken. SUPPLEMENTAL INFORMATION FROM CITY MANAGER /EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS - Mr. Penman announced that there were no supplemental agenda items. MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE THE READING IN FULL A motion was made by Council /Agency Member Chandler, seconded by Council Member Harbicht and carried on roll call vote to read all ordinances and resolutions by title only and waive the reading in full. 1. PUBLIC HEARING a. Joint Public Hearing of the City Council and Redevelopment Agency to consider the adoption of City Council and Arcadia Redevelopment Agency Resolutions • regarding the use of property tax increment funds for the financing of certain Public Improvements. Resolution No. 6761 approving that certain Cooperative Agreement with the Redevelopment Agency of the City of Arcadia regarding the use of property tax increment funds for the financing of certain public improvements and making certain related findings pursuant to California Health and Safety Code Section 33445 (Gold Line and Downtown Improvements). Recommended Action: Adopt Resolution No. 6762 approving that certain Cooperative Agreement with the Redevelopment Agency of the City of Arcadia regarding the use of property tax increment funds for the financing of certain public improvements and making certain findings pursuant to California Health and Safety Code Sections 33445 and 33679 and appropriating funds therefor (Public Safety Training Facility and Overflow Parking Lot/Improvements at Live Oak Avenue). Recommended Action: Adopt 04 -05 -11 53:0063 ARA Resolution No. 242 approving that certain Cooperative Agreement with the City of Arcadia regarding the use of property tax increment funds for the financing of certain public improvements and making certain related findings pursuant to California Health and Safety Code Section 33445 and appropriating funds therefor (Gold Line and Downtown Improvements). Recommended Action: Adopt ARA Resolution No. 243 approving that certain Cooperative Agreement with the City of Arcadia regarding the use of property tax increment funds for the financing of certain public improvements and making certain related findings and taking certain action pursuant to California Health and Safety Code Sections 33445 and 33679 and appropriating funds therefor (Public Safety Training_ Facility and Overflow Parking Lot /Improvements at Live Oak Avenue). Recommended Action: Adopt Jason Kruckeberg, Assistant City Manager /Development Services Director reported that the proposed resolutions for adoption are for the use of property tax increment funds for the financing of public improvements; that Health and Safety Code Section 33445 (Redevelopment Law), requires that if redevelopment funds are used to pay for public purposes, three findings must be made by the City Council and Agency Board; he stated the three findings are (1) that the proposed improvements are of benefit to the Project Area or the immediate neighborhood in which the project is located; (2) that there are no other reasonable means of financing the proposed project available to the community except for redevelopment funds; and (3) that the project will assist in the elimination of blighting conditions and is consistent with the adopted Implementation Plan; that that in December 2009, the City Council and Redevelopment Agency Board approved the 2010 -2015 Five Year Implementation Plan for the Redevelopment Project Area which is part of the annual budget process each year; that the City Council and Agency Board reviewed the Capital Improvement Program that included projects to be completed within the Project Area utilizing Redevelopment (tax increment) funds; and that there are important projects near or in the Redevelopment Project Area for which no City funds are available or where Redevelopment funds are needed to supplement the overall costs of the project to the City. He further explained that in 2010 the Agency successfully sold bonds to obtain additional proceeds for the Redevelopment Area; and with the bond proceeds in place, the Agency has more than $5 million to be utilized in the Project Area; he noted that the proposed projects are Gold Line Improvements, Huntington Drive Capacity Improvements, Downtown 2000 Streetscape Improvements, Gateway Landscape Beautiful Project, Public Safety Joint Training Facility and Overflow Parking Lot/Improvements on Live Oak Avenue; and that Attachment A to the staff report is the Summary Report and Findings which describe in detail the public improvement projects proposed in the Project Area. He further noted that Cooperative Agreements between the City and Agency were prepared and are included with each resolution; that the Redevelopment Board will transfer Redevelopment Agency reserves into the General Fund Designated reserves which will be earmarked for the proposed projects; that the public improvements and facilities would be financed through Redevelopment Agency reserves; and advised that the total cost of the listed projects is $4,049,000 and sufficient funds are available within the Redevelopment Agency reserves to fund the projects; and that there would be no impact to the General Fund. 04 -05 -11 53:0064 City Attorney Deitsch clarified for the record that the Forrest Service property facility, as described by the City Manager, may literally not be described in the Five Year Implementation Plan however staff felt that it was adequately described; that the Five Year Implementation Plan which is required by law to be adopted by the Redevelopment Agency and last adopted in 2009, is described as a Redevelopment Improvement Project; and also, in response to the question raised by Mayor Pro Tem Kovacic whether a different project can be brought forward in the future, City Attorney Deitsch responded that under the Redevelopment Law in effect tonight, he stated that "yes" a different project can be brought forward in the future however if the new legislation being proposed by the Governor where redevelopment agencies would be terminated was adopted by the Legislature, then the answer would be "no," a different project could not be brought forward in the future. Mayor Amundson opened the public hearing. No one appeared to provide testimony. A motion to close the public hearing was made by Council Member Harbicht seconded by Council Member Chandler and seeing no further objection, Mayor Amundson declared the public hearing closed. It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Kovacic and carried on roll call vote to approve Resolution 6761 approving that certain Cooperative Agreement with the Redevelopment Agency of the City of Arcadia regarding the use of property tax increment funds for the financing of certain public improvements and making certain related findings pursuant to California Health and Safety Code Section 33445 (Gold Line and Downtown Improvements) AYES: Council /Agency Member Chandler, Kovacic, Harbicht and Amundson NOES: None ABSENT: Council /Agency Member Segal It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Kovacic and carried on roll call vote to approve Resolution 6762 approving that certain Cooperative Agreement with the Redevelopment Agency of the City of Arcadia regarding the use of property tax increment funds for the financing of certain public improvements and making certain findings pursuant to California Health and Safety Code Sections 33445 and 33679 and appropriating funds therefor (Public Safety Training Facility and Overflow Parking Lot /Improvements at Live Oak Avenue). AYES: Council /Agency Member Chandler, Kovacic, Harbicht and Amundson NOES: None ABSENT: Council /Agency Member Segal It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Kovacic and carried on roll call vote to approve ARA Resolution 242 approving that certain Cooperative Agreement with the City of Arcadia regarding the use of property tax increment funds for the financing of certain public improvements and making certain related findings pursuant to California Health and Safety Code Section 33445 and appropriating funds therefore (Gold Line and Downtown Improvements). AYES: Council /Agency Member Chandler, Kovacic, Harbicht and Amundson NOES: None ABSENT: Council /Agency Member Segal 04 -05 -11 53:0065 It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Kovacic and carried on roll call vote to approve ARA Resolution 243 approving that certain Cooperative Agreement with the City of Arcadia regarding the use of property tax increment funds for the financing of certain public improvements and making certain related findings and taking certain action pursuant to California Health and Safety Code Sections 33445 and 33679 and appropriating funds therefor (Gold Line and Downtown Improvements). AYES: Council /Agency Member Chandler, Kovacic, Harbicht and Amundson NOES: None ABSENT: Council /Agency Member Segal b. Joint Public Hearing of the City Council and Redevelopment Agency to consider the adoption of City Council and Arcadia Redevelopment Agency Resolutions regarding a Disposition and Development Agreement by and between the Redevelopment Agency and Rusnak /Arcadia for the expansion of its dealership in Arcadia. Adopt Resolution No. 6763 approving the Redevelopment Agency's sale of property pursuant to a proposed Disposition and Development Agreement by and between the Redevelopment Agency of the City of Arcadia and Rusnak/Arcadia. Recommended Action: Adopt Adopt Arcadia Redevelopment Agency Resolution (ARA) Resolution No. 244 approving a certain Disposition and Development Agreement by and between the Redevelopment Agency of the City of Arcadia and Rusnak/Arcadia for the expansion of Rusnak Mercedes Benz in Arcadia. City Manager Don Penman recommended that this item be continued to the April 19, 2011 regular meeting which will be continued to April 20, 2011. Mayor Amundson opened the public hearing. No one appeared to provide testimony. A motion was made by Council /Agency Member Chandler, seconded by Council /Agency Member Harbicht and carried on roll call vote to continue the joint public hearing to consider the adoption of City Council and Arcadia Redevelopment Agency Resolutions regarding a Disposition and Development Agreement by and between the Redevelopment Agency and Rusnak/Arcadia for the expansion of its dealership in Arcadia to the regular meeting on April 19, 2011, which will be continued to Wednesday, April 20, 2011. AYES: Council /Agency Member Chandler, Harbicht, Kovacic and Amundson NOES: None ABSENT: Council /Agency Member Segal CITY COUNCIL ITEM: c. Adopt Ordinance No. 2282 amending Section 5600 of Chapter 6, Part 3, Article V of the Arcadia Municipal Code and adopting by reference the Los Angeles County Health Code. Recommended Action: Adopt 04 -05 -11 53:0066 Linda Garcia, Communications, Marketing and Special Projects Manager reported that the City Council on March 1, 2011, introduced Ordinance No. 2282 adopting by reference the most recent version of the Los Angeles County Health Code by reference including regulations extending the existing inspection and grading program to mobile food facilities and mobile vendors; that the ordinance also adopts all future amendments enacted by the County Board of Supervisors and will automatically become part of the Arcadia Municipal Code; that notices of the scheduled public hearing for April 5, 2011 were published in the Arcadia Weekly newspaper on March 10 and March 24 and that a copies of the March 1, 2011 staff report and proposed ordinance were provided to the Chamber of Commerce and to all mobile vendors that are licensed in the City of Arcadia and no comments were received; and recommended adoption of Ordinance No. 2282. Mayor Amundson opened the public hearing. No one appeared to provide testimony. A motion to close the public hearing was made by Council Member Kovacic seconded by Council Member Harbicht and seeing no further objection, Mayor Amundson declared the public hearing closed. It was moved by Council Member Kovacic seconded by Council Member Harbicht and carried on roll call vote to adopt Ordinance No. 2282 amending Section 5600 of Chapter 6, Part 3, Article V of the Arcadia Municipal Code and adopting by reference the Los Angeles County Health Code. AYES: Council /Agency Member Kovacic, Harbicht, Chandler and Amundson NOES: None ABSENT: Council /Agency Member Segal PUBLIC COMMENTS Gail Marshall, an Arcadia resident appeared and commented on traffic congestion at the intersection of Santa Clara and Huntington Drive on March 31, 2011 caused by an accident; she stated that when she called the Police Department to request police traffic control services, she was told that the Police Officers do not handle traffic control because it is a liability to the City; she requested the City Council review the Police Department's internal policy regarding traffic control services and requested that maybe that policy can be changed; and stated that if the City is planning on installing blinking crosswalk lights in the future, she requested one be considered at Alta and Second Avenue near the ball park where there is a playground and children play including the Skate Park and feels it that is a dangerous area. With the consensus of the City Council, Council Member Harbicht requested a report from the Police Department regarding their policy on traffic control services by Police Officers. Elaine Gee -Wong appeared and thanked the City Council for their professionalism and decision to overturn the Planning Commission's decision and allow tables and chairs at Tasty Togo at their last meeting. Daniel Garcia appeared and requested information regarding affordable and accessible housing, and an emergency plan and full accessibility technology information for the disabled. Mr. Penman advised Mr. Garcia that a response will be prepared and mailed to him. 04 -05 -11 53:0067 Richard Midgley, an Arcadia resident appeared and expressed his concerns regarding the increase in water rates; he read the proposed resolution and feels that it is just a way to raise revenue; he stated that he has no objection to raising revenue for the City if it is done clearly and on the basis of projected need; he feels that the 2% increase is projected to be a 16% increase and has no justification but to build reserves and based on some objected need such as improvement of infrastructure or acquisition costs for staff and equipment; he feels that residents with larger properties are going to fund improvements in the City if the 2% increase goes into reserves; and expressed his opposition to the increase and urged the City Council to give careful consideration to the opposition letters sent by residents. In response to a comment made by Mr. Midgley, Council Member Harbicht responded that the City's water system is evaluated at $200 million with a 10% reserve or $20 million which the City has in its reserves; and the City is not trying to build its reserves. Julia Fendrick, an Arcadia resident appeared and expressed her opposition to the water rate increase; she noted that Mr. Midgley stated everything she wanted to say; she asked why 21% of the commercial property water users are not included in the proposal; she feels that the proposed schedule of rates are punitive to property owners of larger properties and feels that the rates should be the same across the board for everyone if the rates must be increased; she explained that she is on a tiered electricity rate schedule and asks that the City Council reconsider the tiered water rate increase. Mary Dougherty, representing herself and the Santa Anita Oaks Homeowners Association as its President, she reported that the Homeowners Association Board with 13 members of its 18 member board voted unanimously against the tiered water rate increase proposal; she noted one of the concerns is that 21% of the water users are not included; she commented on the City's consultants proposal regarding the increase and suggested the same base rate for all properties regardless of the property size and urged the City Council to reconsider the water rate increase. In response to a question Mayor Pro Tem Kovacic asked Ms. Dougherty regarding her hypothetical on base rate comparisons to the different size of properties, Mr. Dougherty explained the base rates depending on the size of properties. Larry Daines appeared and thanked the City Council for their service to the community; he expressed his opposition to the tiered water rates as explained in a letter submitted to the City Council last week; he stated that he researched Proposition 218 and found an opinion written by the State Attorney General several years ago which excludes tiered water rates from the provisions of Proposition 218 and also found a memorandum published by the Jarvis Taxpayers Association which states that local governments which do not abide by the requirements of the new constitutional language does so at the risk of litigation and questioned whether it was an old memorandum or has it been litigated; and explained the base rate depending on the size of the property. In response to a question raised by Mayor Pro Tem Kovacic regarding a fair way to allocate the threshold, Mr. Daines responded that the fairest way would be a flat rate based on water usage. Mary Dougherty submitted letters of protest regarding the tiered water rate increase to the City Clerk. 04 -05 -11 53:0068 REPORTS FROM THE CITY COUNCIL AND CITY CLERK Council Member Chandler had no comments. Mayor Pro Tem Kovacic advised the City Manager that he supported a possible meeting with the Sierra Madre City Council as referenced in his City Manager's weekly report; he announced an ACTION Emergency Preparedness and Crime Prevention Workshop at the Library Auditorium on April 16, 2011 at 8:00 a.m. to 12:00 p.m.; and in response to Mayor Kovacic's request, Fire Chief Trabbie responded that representatives from the Fire and Police Departments and Public Works Services will be present and that basic first aid, fire prevention, managing utilities in the event of an emergency will be discussed and is a 4 hour program which was well attended last year and expect the same this time and there is no charge for the workshop. Mr. Kovacic noted Mr. Garcia's comments regarding emergency plans for the disabled and hopes the workshop will cover his concerns. Mayor Pro Tem Kovacic announced the Battle of the Badges basketball game between the Arcadia Police Al!stars vs. the Arcadia Fire Alistars on Friday, April 22 at 7:00 p.m. at the Arcadia High School main gym with all proceeds being donated to the Special Olympics. Council Member Harbicht announced that Saturday night he attended the Guys and Dolls play at the High School and that it was incredible, the costumes, the singing and dancing and stage setting was very professional and has heard nothing but positive comments; he mentioned that he was talking to someone in Florida where the High School orchestra was competing and was told that Arcadia High School had swept most of the competition. City Clerk Barrows announced that the Recreation and Community Services put on the Civitan Elementary Track meet at the High School for kids second through fifth grade and commended Sara, Gina and Dana and their staff for all their efforts and hard work in making the event a success for the kids; he mentioned that the kids on Thursday at school, the day after the event, were still very excited on how much fun they had including the parents; he wanted the City Council to know how much the City staff is appreciated for all they do for the schools and the kids in the community; he announced that this Friday and Saturday is the Arcadia Invitational Track meet at the High School and everyone should plan ahead for a lot of traffic. In response to a question by Mayor Amundson regarding any street closures, Mr. Penman responded that Baldwin Avenue will be closed for the Derby Day 5K beginning at around 7:30 a.m. until about 9:00 a.m. Mayor Amundson announced that individuals interested in attending the Emergency Preparedness Workshop on April 16 should contact the City Manager's office to guarantee a seat; that Arcadia Beautiful Spring Awards is coming up and individuals who would like to nominate a yard should contact the City Manager's with the address; he mentioned that he was recently on business in Florida and noticed a sign that said "Arcadia" and went to meet the Mayor who told him they do get calls for Arcadia, California. 04 -05 -11 53:0069 CONSENT CALENDAR REDEVELOPMENT AGENCY ITEMS: a. Approve the special meeting minutes of February 14, 2011 and the regular meeting minutes of March 1, 2011. Recommended Action: Approve b. Authorize the Executive Director to execute a Professional Services Agreement with Overland Pacific & Cutler, Inc. to provide business relocation assistance and a relocation plan for businesses at 101 -111 and 121 -159 N. Santa Anita Avenue in the amount of $67,200 including a 10% contingency. Recommended Action: Approve CITY COUNCIL ITEMS: c. Approve the special meeting minutes of February 14, 2011 and the regular meeting minutes of March 1, 2011. Recommended Action: Approve d. Accept all work performed by Vargas Olson Enterprises, Inc. for the installation of carpet tiles at the Community Center and Recreation Department buildings as complete and authorize the final payment to be made in accordance with the contract documents. Recommended Action: Approve e. Adopt Ordinance No. 2283 amending Article IX, Chapter 2, Part 6 of the Arcadia Municipal Code pertaining to Temporary Banners. Recommended Action: Adopt f. Authorize the purchase of 100 Second Chance Summit Level II Ballistic Vests, Model SM01 for the Police Department from All State Police Equipment in the amount of $69,691.25. Recommended Action: Approve g. Accept a donation from the Nutro Company in the amount of $1,500 for the "Room to Run" Program for Dog Park enhancements in Arcadia. Recommended Action: Accept h. Authorize the purchase of ten (10) Replacement Mobile Digital Computers for the Police Department from Amrel in the amount of $59,619.38. Recommended Action: Approve Adopt Resolution No. 6756 approving Conditional Use Permit No. CUP 10 -20 with a parking modification to convert the existing 2,274 square -foot, take -out food service establishment to a restaurant at 142 E. Duarte Road. Recommended Action: Adopt 04 -05 -11 53:0070 j. Adopt Resolution No. 6757 approving Conditional Use Permit No. CUP 10 -12 to allow a new 1,714 square -foot martial arts studio with a maximum of 2 instructors and 12 students at any one time at 921 South Baldwin Avenue, Unit D. Recommended Action: Adopt k. Authorize the City Manager to execute a Professional Services Agreement with TransCore Inc. for Design Services for the Intelligent Transportation System (ITS) Arterial Development Project in the amount of $497,577, include a 10% contingency and appropriate additional Proposition C Funding in the amount of $240,000. Recommended Action: Approve Approve Final Map No. 69958, a five -lot subdivision at 1402, 1406 and 1410 S. Eighth Avenue. Recommended Action: Approve It was moved by Council Member Chandler, seconded by Council Member Harbicht and carried on roll call vote to approve Consent Calendar items 2.a through 2.1. AYES: Council /Agency Member Chandler, Harbicht, Kovacic and Amundson NOES: None ABSENT: Council /Agency Member Segal 3. CITY MANAGER /AGENCY DIRECTOR ITEMS: a. Consideration of a waiver of Arcadia Redevelopment Agency Resolution No. ARA -231 to permit a Wine Bar with retail sales at 16 North First Avenue. Recommended Action: Approve Jason Kruckeberg, Assistant City Manager /Development Services Director stated that this item pertains to a waiver from ARA Resolution No. 231 which was adopted by the Agency Board on April 6, 2010; he explained that the Resolution promotes high quality development and design in the redevelopment project area and discourages incompatible and non - harmonious land uses and projects; that ARA Resolution No. 231 lists appropriate and inappropriate uses for the redevelopment area. He explained that this is a type of use that is not listed as an appropriate use in the area which is a shop that sells alcohol for off -site consumption; that this Wine Bar will have wine tasting and retail sales; he advised that when ARA Resolution No. 231 was considered alcohol serving establishments were discussed; that it was the recommendation of staff and the decision of the Agency Board that these type of establishments would be considered on a case by case basis; and that consideration of a waiver is being requested by the applicant from ARA Resolution No. 231. Jerry Schwartz, Economic Development Manager reported that the City received an application for a wine bar with retail sales at 16 North First Avenue; that the applicant is proposing to lease 1,750 square feet on the first floor of the two story building and will primarily be used for wine tasting with retail sales; that the location does not have a kitchen but will probably have a refrigerator to refrigerate ancillary food such as cheese and the like. Mr. Schwartz advised that the applicant has experience operating this type of operation since he has a Glendale location that has been in operation since August of 2009 and is considered by City of Glendale staff to be a significant improvement to that area and has been a positive establishment with no complaints or issues. He explained that the wine bar is allowed in the current CBD zone with a 04 -05 -11 53:0071 Conditional Use Permit and a parking modification; and if approved by the Agency Board, it will be forwarded to the Planning Commission at a future meeting to consider the full range of conditions to regulate the proposed wine bar. He further explained that the Agency has from time to time approved waivers to promote such uses; and recommends adoption of ARA Resolution No. 231. It was moved by Council Member Harbicht, seconded by Council Member Kovacic and carried on roll call vote to approve a waiver to Arcadia Redevelopment Agency Resolution No. 231 to permit a wine bar at 16 North First Avenue. Mayor Amundson requested to be kept in informed of the Planning Commission's conditions imposed and placed on the wine bar. Mayor Pro Tem requested that he be provided with the address of the wine bar in the Montrose location. AYES: Council /Agency Member Harbicht, Kovacic, Chandler and Amundson NOES: None ABSENT: Council /Agency Member Segal b. Authorization to Appropriate Funds from Redevelopment Agency undesignated reserves and authorize the Executive Director to execute a Purchase and Sale Agreement to purchase property on Santa Clara Street identified as Assessor Parcel Number 5775 - 025 -025 (the "Dahlgren Property "). Recommended Action: Approve Jason Kruckeberg, Assistant City Manager /Development Services Director reported that at the Closed Session meeting of March 1, 2011, City Council /Agency Board meeting, staff was given parameters to negotiate to purchase a commercially -zoned property located along Santa Clara Street owned by Don and Ray Dahlgren; he noted that the property is vacant and has no address but is only identified as Parcel Number 5775 - 025 -025; that staff has agreed on the details of the purchase of the Dahlgren property and is currently processing the purchase agreement; and that the Agency Board must authorize the budget expenditure to complete the purchase; he indicated that the property is an important portion of an acquisition that the Agency has been working on for some time and would complete an assembly of nearly 2 acres of property acquired in the last several years by the Agency. Jerry Schwartz, Economic Development Manager explained that staff is currently in the process of completing the purchase agreement with the owners who have both agreed to the terms of the Purchase and Sale Agreement; that the acquisition cost for the property was established at $608,100 and that escrow costs and other ancillary acquisition costs are estimated to be no more than $15,000 for a total requested appropriation of $623,000; he noted that the property is vacant and does not require any demolition or abatement of environmental materials; and a Phase 1 Environmental Study on the neighboring property was conducted and revealed no issues; and recommends authorization of the appropriation of $623,000 from Redevelopment Agency Undesignated Reserves for the purchase and sale to complete the land purchase transaction. 04 -05 -11 53:0072 It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Kovacic and carried on roll call vote to authorize the appropriation of $623,000 from Redevelopment Agency Undesignated Reserves and authorize the Executive Director to execute a purchase and sale agreement to complete the land purchase transaction of Assessor Parcel Number 5775 - 025 -025 (the Dahlgren Property). AYES: Council /Agency Member Chandler, Kovacic, Harbicht and Amundson NOES: None ABSENT: Council /Agency Member Segal c. Direct the Public Works Services Department to follow Proposition 218 balloting procedures for Refuse Rates and conduct a Public Hearing at the June 7, 2011 City Council meeting with a prepared Resolution authorizing the proposed Refuse Rates Schedule per terms of agreement with Waste Management for Fiscal Years 2011/12, 2012/13, 2013/14, 2014/15 and 2015/16. Recommended Action: Approve Tom Tait, Public Works Services Director reported that in February 2009, the City Council awarded an exclusive seven (7) year residential refuse contract with three (3) one (1) year operational extensions for refuse and recycling collection services; that included in the contract is a clause that guarantees that the City will be the lowest 1/3 rate in the San Gabriel Valley compared to agencies with similar services; that according to the terms of the City's Residential Refuse and Recycling Agreement, Waste Management is entitled to annual refuse rate increases; that the Franchise Agreement provides for a specific formula to calculate the rate adjustment consisting of three (3) weighted indices which is Consumer Price Index (65 %); Disposal /Green Waste Facility Index (30 %); and Producer Price Index for fuel (5 %); he explained how the rate increases and adjustment formulas are calculated and what they are based on; he explained the percentage breakdown and weighted amount that is accounted for in each index that make up the total CPI adjustment; that staff has worked with Waste Management and thoroughly reviewed and verified all rate adjustment date; and that based on the Waste Management's service record and continuing satisfactory performance, staff concurs with Waste Management's request for a rate adjustment. He explained that the City must engage in the proper balloting process in accordance with Proposition 218 when increasing refuse rates and recommended the City Council authorize the Public Works Services Department to follow Proposition 218 Balloting Procedures for a 2.84% increase for single family and multi - family refuse rates and schedule a public hearing for the June 7, 2011 City Council meeting. Mayor Pro Tem Kovacic asked if the Waste Management contract mentions Proposition 218. Mr. Deitsch will review the contract. It was moved by Council /Agency Member Harbicht seconded by Council /Agency Member Chandler and carried on roll call vote to direct the Public Works Services Department to follow Proposition 218 Balloting Procedures for refuse rates and conduct a Public Hearing at the June 7, 2011 City Council meeting with a prepared Resolution authorizing the proposed refuse rate increase for fiscal years 2011 -12, 2012 -2013, 2013 -2014, 2014 -2015 and 2015 -2016. AYES: Council /Agency Member Harbicht, Chandler, Kovacic and Amundson NOES: None ABSENT: Council /Agency Member Segal 04 -05 -11 53:0073 d. Direct the Public Works Services Department to follow Proposition 218 balloting procedures to establish Water Rates and conduct a Public Hearing at the June 7, 2011 City Council meeting with a prepared Resolution authorizing the proposed Water Rate Schedules for Fiscal Years 2011/12, 2012/13, 2013/14, 2014/15 and 2015/16. Recommended Action: Approve Tom Tait, Public Works Services Director reported that each year Public Works Services staff reviews fund balances, expenditures, revenues in the City's Capital Improvement Program in order to ensure there are sufficient funds to maintain the City's water system; he indicated that in January 2011, the City Council approved the tiered water rate study and authorized staff to move forward with the implementation of a tiered water rate structures; he noted that in 2009, the City Council approved including a majority of protest voters did not turn down staff's proposal to do a water and sewer rate increase for five (5) years based on the CPI; that currently there is a water rate increase in place that would be based on CPI and the proposal on the agenda would also be to have the rate increase for tiered water rate structure that would mimic the 1.07% rate increase. Ken Kerman, Deputy Public Works Services Director explained that water rates and fees are being proposed for fiscal year 2011 -12 including a proposed method of increases for rates in fiscal years 2012 -13 through 2015 -16; he reported that each year staff reviews revenue accounts, the current rates and revenues received to make sure that existing rates provide for sufficient revenue to support the current and continued operation and maintenance of the City's water supply and distribution system; that those rates can support capital improvements designed to insure the efficient and reliable operation of the system; and that the rates also support sufficient reserves to ensure funds are available for repairs and operations in the event of a catastrophic event or system failure. He stated that staff was directed by the City Council to provide a three tiered water rate structure that would provide the same revenue as the existing uniform rate structure; that a review of current rates show that the system can remain stable for the next several years with minimal increase; an increase of 1.07% is being proposed in keeping with the 2010 CPI and increases over the next five (5) years to equal the CPI for the previous year. He advised that the value of the City's water system is estimated at $200 million and industry standards recommend a ten (10 %) percent reserve to offset costs in the event of a catastrophic event or emergency that would affect the water system's infrastructure; that the City's existing operating reserve is 25% of annual operating expenses, facility reserves of $20 million following the completion of capital projects and for equipment, reserves are kept as need to provide for the current years equipment and replacement needs; that the operating reserves for fiscal year 2011 -12 are $7.2 million, $20 million for capital reserves and $1.3 million for equipment reserves and proposes with the existing rates to drop the reserves slightly to $2.7 million for operating reserves, $16 for capital reserves and $1.4 million for equipment by the year 2016. He explained that the City currently implements a uniform commodity rate for all customers regardless of the amount of water used; that staff is proposing to implement a three tiered water rate structure for single family and multi - family customers; that Arcadia rates remain the lowest in the area; and staff recommends that the City Council authorize the Public Works Services Department to follow Proposition 218 balloting procedures to establish water rates and conduct a public hearing at the June 7, 2011 City Council meeting with a prepared resolution to adopt the proposed water rate schedule for fiscal year 2011 -12 through 2012 -2016. 04 -05 -11 53:0074 It was moved by Council /Agency Member Harbicht seconded by Council /Agency Member Chandler to authorize the Public Works Services Department to follow Proposition 218 Balloting Procedures to establish water rates and conduct a Public Hearing at the June 7, 2011 City Council meeting with a prepared Resolution to adopt the proposed water rate schedules for fiscal years 2011 -12, 2012 -2013, 2013 -2014, 2014 -2015 and 2015 -2016. AYES: Agency Member Harbicht and Chandler NOES: Agency Amundson and Kovacic ABSENT: Agency Member Segal Mr. Deitsch announced that due to the tie vote, the matter is automatically carried over to the next regular meeting. ADJOURNMENT The City Council /Redevelopment Agency adjourned this meeting at 9:40 a.m. in memory of Stephen Sanderson to a continued regular meeting on Wednesday April 20, 2011 instead of Tuesday, April 19, 2011 at 7:00 p.m. in the City Council Chamber located at 240 W. Huntington Drive, Arcadia. James H. Barrows, City Clerk By: Lisa Mussenden Chief Deputy City Clerk/Records Manager 04 -05 -11