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HomeMy WebLinkAbout04/20/2011 53:0075 CITY COUNCIL /REDEVELOPMENT AGENCY CONTINUED REGULAR MEETING MINUTES WEDNESDAY APRIL 20, 2011 — 7:00 P.M. Due to lack of quorum at the regular meeting on Tuesday, April 19, 2011, this meeting was continued to Wednesday, April 20, 2011 at 7:00 p.m. CALL TO ORDER - Mayor Amundson called the meeting to order at 7:00 p.m. INVOCATION - Rabbi Alan Lachtman, Temple Beth David PLEDGE OF ALLEGIANCE — Carolyn Garner - Reagan, Director of Library and Museum Services ROLL CALL OF CITY COUNCIL /REDEVELOPMENT AGENCY MEMBERS: PRESENT: Council /Agency Member Chandler, Harbicht, Kovacic, Segal and Amundson ABSENT: None SUPPLEMENTAL INFORMATION FROM CITY MANAGER/EXECUTIVE DIRECTOR REGARDING AGENDA ITEMS — City Manager Don 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 /Agency Member Segal and carried on roll call vote to read all ordinances and resolutions by title only and waive the reading in full. PUBLIC COMMENTS (5 minutes per person) Jonathan Ma, Arcadia High School ASB President appeared and provided an update regarding budget cuts at the High School and their one week $1 million fundraiser; he reported that so far they have raised $94,000.28 and have until Friday to reach their goal and encouraged everyone to donate. Gene Glasco, President of the Historical Society appeared and announced the Society's donation of an additional $2,000 to the Museum which is on tonight's agenda; that the $2,000 is in addition to another $9,000 accumulated by the City from the Historical Society to purchase a life like Anita Baldwin figure; and that the Friends of the Museum donated another $1,250 to cover the cost of the dress, shoes and accessories for a total cost of $11,750. Mary Dougherty, President of the Santa Anita Oaks HOA appeared and commented on the tired water rates and urged the City Council not pass the increase but instead urged them to consider a flat rate and suggested water conservation education. Gino Roncelli, an Arcadia resident appeared and expressed his opposition regarding the tiered water rates. 04 -20 -11 1 53:0076 Esther Jung, Student Council Vice President at First Avenue Middle School appeared and commented on the School District's budget cuts; she noted that budget cuts not only affect the teachers but also the students; and provided a report regarding activities going on at First Avenue Middle School. Carolyn Anderson, Waste Management representative for Arcadia appeared and introduced "Baxter "; she explained that Baxter is a convenient way for residents to dispose of large items; she announced that all Arcadia residents will receive a free "Baxter" and that residents will receive a coupon in their April billing but noted that there will be a collection charge. Donna Perez, an Arcadia resident appeared and commented on her opposition regarding the tiered water rates and expressed her concerns. Doug McEachern, President of the Rancho Santa Anta Homeowners Association appeared and discussed his opposition regarding the tiered water rates and his belief it was a tax on property owners with larger properties; he explained that he reviewed the City's financials and noted the $61 million dollars in unfunded liability for health care and pension benefits for the employees of Arcadia; and feels that the rate increase is merely a tax to pay for unfunded liability. Mr. Penman advised that it is not legal for the City to use water money for the general fund; that it is an enterprise fund and any revenue generated by the water fund other than the overhead costs paid to the City because the City manages the fund must remain in the water fund; and noted that by law, Water Fund money cannot be comingled with general fund money and is reflected in the audit. 1. PRESENTATIONS TO OUTGOING MAYOR PETER AMUNDSON in j Presentation by Mark Harmsen on behalf of Congressman David Dreier Presentation by David Monroy on behalf of Senator Bob Huff Presentation by Steve Johnson on behalf of Assembly Member Tim Donnelly Presentation by Christie Lopez on behalf Assembly Member Anthony Portantino Presentation by Brian Mejia on behalf of Supervisor Michael Antonovich Presentation by Dr. Joel Shawn and Maryann Gibson on behalf of the Arcadia Board of Education Presentation by City of Monrovia Mayor Mary Ann Lutz Presentation by City of Sierra Madre Mayor Joe Mosca Presentation by the Arcadia Chamber of Commerce Presentation by Edward Wong, President of the Arcadia Chinese Association Presentation by Mayor Pro Tem Gary A. Kovacic on behalf of Senator Dianne Feinstein Presentation by Mayor Pro Tem Gary A. Kovacic on behalf of the City of Arcadia owl 04 -20 -11 2 53:0077 REMARKS BY OUTGOING MAYOR PETER AMUNDSON Mayor Amundson thanked everyone who appeared and made presentations to him; he discussed the responsibilities and duties of the Mayor and provided a recap of his year as Mayor; he discussed the many certificates he presented and to who they were presented to, signs in Arcadia, massage parlors, the economy, coyotes, emergency preparedness workshops, the Mayor's Community Breakfast, the upcoming Independence day parade; he thanked his fellow Council Members, City Manager Mr. Penman, all Department Heads and staff; Linda Garcia, Mary Buttice, Connie Schacatano and Kristen Olafson of the City Manager's office and he thanked his mother Mary Amundson, his children Peter, Andrew, Candice and his wife Jackie who were all in attendance; and concluded that he looks forward to working together with the City Council and staff. 2. REORGANIZATION OF THE CITY COUNCIL a. City Clerk James Barrows called for the nomination of Office of the Mayor of Arcadia. Mayor Pro Tem Kovacic was nominated by Council Member Chandler Noting no further names, the nomination was closed. AYES: Council Member Amundson, Chandler, Harbicht, Kovacic and Segal NOES: None b. Mayor Kovacic called for the nomination of Office of the Mayor Pro Tempore of Arcadia. Council Member Harbicht was nominated by Council Member Segal Noting no further names, the nomination was closed. AYES: Council Member Amundson, Chandler, Harbicht, Kovacic and Segal NOES: None 3. REMARKS AND INTRODUCTIONS BY MAYOR KOVACIC Mayor Kovacic introduced his wife, Barb, his Mother Florence, his daughter Kelley and son Casey, who were not in attendance; he acknowledged the Arcadia High School Constitution Team; he congratulated Mr. Amundson on a memorable and meaningful year as Mayor; he congratulated Mr. Harbicht on being nominated as Mayor Pro Tem and looks forward to working with Mr. Segal and Mr. Chandler. He addressed the state's budget, the economy, the City's budget, labor negotiations, development, the Gold Line and maintaining first class service to the residents, and the many challenges facing Arcadia public schools and providing support for them whenever appropriate; he discussed his new ideas which he will expand on in the coming weeks; he discussed "volunteerism" which he would like to see focused on during his term as Mayor; he provided examples of volunteer work Arcadia residents provide at the Police and Fire Departments, the Community and Senior Centers, the Library Foundation and Friends of the Library, the Historical Museum and Historical Society, the Schools and Education Foundations, the Hospital; and the different service organizations and associations, and noted the group of volunteers proposing to produce a patriotic parade and festival in July and urged Arcadia 04 -20 -11 3 53:0078 residents to get involved. He cited a saying from Alexis de Tocqueville regarding the spirit of volunteerism; and quoted John Wooden "you can't live a perfect day without doing something for someone who will never be able to repay you" and stated that looks forward to a productive year. 4. REMARKS AND INTRODUCTIONS BY MAYOR PRO TEMPORE HARBICHT Mayor Pro Tem Harbicht thanked his colleagues, he introduced his wife Patsy; he complimented Jonathan Ma and Esther Jung on the great reports they gave during the public comment period; he commented on work the City Council and staff has done to continue the high level of service provided to the residents; he complimented the work everyone does and looks forward to the coming year to continue the same level of excellence; and he announced that Friday night the Firefighters and Police Association's will have a basketball fundraiser to benefit the Special Olympics at Arcadia High School and urged everyone to attend to support the cause. 5. REMARKS AND INTRODUCTIONS BY CITY COUNCIL MEMBERS Council Member Chandler congratulated Mayor Kovacic and Mayor Pro Tem Harbicht on their nominations; and he complimented Mr. Amundson on his tenure as Mayor and noted some of his accomplishments. Council Member Segal acknowledged his wife, Lee who was not in attendance; he congratulated Mr. Amundson on a great year as Mayor and commended him on his commitment of time to attend City events; he explained that the general fund does not benefit from the water fund; that water fund money is used to maintain the City's water system infrastructure; that raising the water rates is not a benefit to the City's general fund; he commented on the $61 million in unfunded liability money discussed under public comments; he addressed some of the issues regarding the budget, unfunded pension liability including negotiations with the bargaining groups and indicated that the City Council will represent the community and do what is best for everyone; and he congratulated Mr. Kovacic and looks forward to a great year. Council Member Amundson apologized for not mentioning and thanking his Operations Manager Tim Steinberger and Office Manager Alice Low who took care of his business when he was conducting Mayor business and looks forward to a great year and wished everyone a Happy Easter. City Clerk James Barrows thanked Mr. Amundson for all that he did as Mayor; he thanked his wife Margaret for being the leader of "Team Barrows "; and read an announcement regarding board and commission openings and encouraged residents to get involved. 6. 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 a Disposition and Development Agreement by and between the Redevelopment Agency and Rusnak/Arcadia for the expansion of its dealership in Arcadia. (Joint Public Hearing continued from the April 5, 2011 regular meeting) 04 -20 -11 4 53:0079 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. Recommended Action: Adopt City Manager Don Penman recommended that this item be continued to Tuesday, May 3, 2011 at 7:00 p.m. A motion was made by Council /Agency Member Harbicht, seconded by Council /Agency Member Segal and carried on roll call vote to continue this item to May 3, 2011 at 7:00 p.m. AYES: Council /Agency Member Harbicht, Segal, Amundson, Chandler and Kovacic NOES: None ABSENT: None 7. CONSENT CALENDAR CITY COUNCIL ITEM: a. Accept a gift of $2,000 from the Arcadia Historical Society toward the cost of an Anita Baldwin figure for the Ruth & Charles Gilb Arcadia Historical Museum. Recommended Action: Approve It was moved by Council Member Harbicht, seconded by Council Member Chandler and carried on roll call vote to approve Consent Calendar item 7.a. AYES: Council /Agency Member Harbicht, Chandler, Amundson, Segal and Kovacic NOES: None ABSENT: None 8. CITY MANAGER a. 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. (Continued from the April 5, 2011 regular meeting due to a tie vote) Recommended Action: Approve It was moved by Council /Agency Member Harbicht seconded by Council /Agency Member Chandler and carried on roll call vote to table the proposed water rate item and schedule a future study session to consider concerns raised by the residents. 04 -20 -11 5 53:0080 AYES: Council /Agency Member Harbicht, Chandler, Amundson, Segal and Kovacic NOES: None ABSENT: None b. Authorize the issuance of up to $8 million in City of Arcadia General Obligation Bonds to finance a Grade Separation for Santa Anita Avenue and the proposed Metropolitan Transit Authority Gold Line Foothill Extension. Adopt Resolution 6764 declaring its intention to sell bonds of said City in the amount of not to exceed Eight Million Dollars ($8,000,000), fixing the time and place for taking bids and directing publication of notice inviting bids. Recommended Action: Adopt Adopt Resolution 6765 providing for the issuance of its General Obligation Bonds, Election of 2006 (Bond Measure A), Series 2011 in the principal amount not to exceed Eight Million Dollars ($8,000,000). Recommended Action: Adopt Adopt Resolution No. 6766 adopting and appropriating in Fiscal Year 2010 -2011 $4,650,000 from Proposition A and C Funds for the construction of the Santa Anita Grade Separation Bridge. Recommended Action: Adopt Hue Quach, Administrative Services Director reported that in February 2011, the City was notified by the Gold Line Authority that the construction of the Grade Separation Bridge could begin as soon as June 2011; that at the meeting on March 15, 2011, the City Council directed staff to proceed with the necessary work for the sale of the bonds; he stated that through the preliminary work process, it was determined that the issuance of the bonds can qualify as a Bank Qualified Issue and that it would be in the best interest to the taxpayers to designate the Series 2011 GO Bonds as "qualified tax - exempt obligations; that by designating the 2011 GO Bonds as Bank Qualified would most likely prohibit the City, or any of its related entities, from issuing any additional bonded indebtedness for the remainder of calendar year 2011 since the exemption states that the issuer of Bank Qualified debt cannot issue more than $10 million in debt during that calendar year; and that staff does not expect additional debt would be issued in 2011 that would exceed the $10 million cap. He explained that by having the 2011 GO Bonds designated as Bank Qualified it would allow the bonds to be purchased by certain institutions, namely bank trust departments, that otherwise would not purchase tax - exempt securities. He advised that the City estimates the total cost of the grade separation project to be $12.5 million; that $8 million would come from the bonds and the remaining $4,650,000 will come from Proposition A and Proposition C funds which was already set aside by the City; that during the fiscal year 2010 -11 budget adoption, an appropriation for the transportation funds was not requested since staff did not anticipate the work to begin this fiscal year; and requested the City Council approve the proposed resolutions to proceed with the sale of the bonds and appropriate $4,650,000 as additional funds to the GO Bonds for the grade separation project. He announced that no action is required regarding Resolution No. 6764 since Resolution No. 6765 incorporates all the necessary language. Council /Agency Member Harbicht noted that City Council titles needs to be revised on Attachment 1, Page 4. 04 -20 -11 6 53:0081 It was moved by Council /Agency Member Segal seconded by Council /Agency Member Harbicht and carried on roll call vote to adopt Resolution No. 6765 providing for the issuance of its General Obligation Bonds, Election of 2006 (Bond Measure A), Series 2011 in the principal amount not to exceed Eight Million Dollars ($8,000,000). AYES: Council /Agency Member Segal, Harbicht, Amundson, Chandler and Kovacic NOES: None ABSENT: None It was moved by Council /Agency Member Chandler seconded by Council /Agency Member Amundson and carried on roll call vote to adopt Resolution No. 6766 adopting and appropriating in Fiscal Year 2010 -2011 $4,650,000 from Proposition A and C Funds for the construction of the Santa Anita Grade Separation Bridge. AYES: Council /Agency Member Chandler, Amundson, Harbicht, Segal and Kovacic NOES: None ABSENT: None Mr. Penman announced that staff recently met with S& P and advised that the City received an AA+ rating which is an excellent rating for a city the size of Arcadia; and noted that the rating is based on a strong City Council management and Management Team as well as healthy reserves and the City's ability to deal with fiscal issues. Mr. Penman noted that Proposition A and Proposition C funds can only legally be spent on transportation. c. Adopt Resolution No. 6767 establishing a Citizen's Bond Oversight Committee and approve Bylaws therefor; and make appointments to the Citizens' Bond Oversight Committee. Recommended Action: Adopt City Manager Don Penman reported that as part of the voters approval in April 2006 regarding the sale of $8 million in general obligation bonds for the Santa Anita Grade Separation project, a Citizen's Bond Oversight Committee was included as part of the measure to satisfy the accountability requirements; that the purpose of the Committee is to ensure the expenditures of the bond proceeds are in conformance with the purpose of the bond issue, which is to pay for the construction of the grade separation; and that in order to create that Citizen's Bond Oversight Committee, Mr. Penman explained the City Council's selection options and asked each Council Member to nominate one person and then establish and approve the appointments. Mayor Kovacic asked each City Council Member to nominate one name which will make up the Citizen's Bond Oversight Committee. Council Member Amundson nominated Jessica Louie Mayor Pro Tem Harbicht nominated Robert Novell Council Member Segal nominated Jim Jarvis 04 -20 -11 7 53:0082 Council Member Chandler will submit his name at a later date Mayor Kovacic nominated Ed Wong It was moved by Council/Agency Member Harbicht seconded by Council /Agency Member Amundson and carried on roll call vote to adopt Resolution No. 6767 establishing a Citizen's Bond Oversight Committee and approve Bylaws therefor; and making four (4) appointments to the Citizens' Bond Oversight Committee with one (1) remaining nomination which will be brought back at a later date. AYES: Council Member Harbicht, Amundson, Chandler, Segal and Kovacic NOES: None ABSENT: None The Mayor announced that the City Council will recess into Closed Session. The City Council recessed at 8:40 p.m. 9. CLOSED SESSION a. Pursuant to Government Code Section 54956.9(b)(1) to confer with legal counsel regarding anticipated litigation — one (1) case. b. 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 c. Pursuant to Government Code Section 54957.6 to confer with labor negotiators. City Negotiators: Administrative Services Director Hue Quach, Human Resources Administrator Michael Casalou and William Floyd of Best Best and Krieger LLP. 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. 04 -20 -11 8 53:0083 ADJOURNMENT The City Council /Redevelopment Agency adjourned this meeting in memory of Alice Zhang, an Arcadia High School Student at 10:05 p.m. to Tuesday, May 3, 2011 at 6:00 p.m. in the City Council Chamber Conference Room located at 240 W. Huntington Drive, Arcadia. ,ei //. i • Arit li Kov.1 ic, Mayo ATTEST: LAli ames H. Barrows, City Clerk 04 -20 -11 9