Loading...
HomeMy WebLinkAboutItem 8a - Special and Regular Meeting Minutes of July 21, 20261 07-21-2026 ARCADIA CITY COUNCIL SPECIAL MEETING MINUTES TUESDAY, JULY 21, 2026 CALL TO ORDER – Mayor Cheng called the Special Meeting to order at 5:30 p.m. ROLL CALL OF CITY COUNCIL MEMBERS PRESENT: Cao, Han, Kwan, Fu, and Cheng ABSENT: None PUBLIC COMMENT April Verlato, former Arcadia Mayor and resident, appeared and expressed appreciation for the availability of remote participation during Study Sessions; she requested that the Study Session be recorded and posted on the City's website to allow the public to view the discussion; she questioned the appointment of Planning Commission members by Mayor Cheng, Mayor Pro Tem Fu, and Council Member Cao; and she urged the City Council to comply with the Brown Act and their Rules of Procedure and Decorum. Michelle Kim, a cyclist and Executive Director of Shared Streets, participated remotely and commended the City's efforts to address unsafe behavior on e-bikes and motorized scooters; she commented on the City’s survey questions on the topic, addressed two specific questions, and encouraged the City Council to avoid using broad generalizations that could lead to policies affecting the rights and safety of cyclists. MJ Finstrom, Arcadia resident, participated remotely and expressed concern regarding foreign influence in Arcadia; she emphasized the importance of working together to prevent similar situations from occurring in the future; and she offered suggestions for inclusion in the proposed policies and procedures. STUDY SESSION a. Report, discussion, and direction on policies and protocols for engagement with foreign governments, foreign officials, and foreign government-related events. Deputy City Manager Bruno provided a PowerPoint presentation. A discussion ensued and City staff responded to questions and comments from the City Council regarding proposed policies and protocols for engagement with foreign governments, foreign officials, and foreign government-related events. 2 07-21-2026 Following discussion, Mayor Pro Tem Fu made a motion to direct staff to establish a policy prohibiting engagement or involvement with foreign governments or foreign officials individually or on behalf of the City without City Council approval. The motion further clarified that incidental or casual encounters would not be prohibited and that no action on behalf of the City may be taken without prior City Council approval. Council Member Cao seconded the motion and offered a friendly amendment to clarify that approval by majority of the City Council would suffice, rather than a unanimous vote. Mayor Pro Tem Fu accepted the friendly amendment, and the motion carried on a roll call vote. AYES: Fu, Cao, Han, and Cheng NOES: None ABSTAIN: Kwan Following the vote, additional discussion ensued. It was the consensus of the City Council to table this item to a future City Council meeting for further discussion. Regarding the third-party financial auditing portion of this item’s discussion, Council Member Cao made the following motions: Motion No. 1: Direct a third-party legal counsel to prepare a report identifying the City’s policies and procedures regarding the authority to request, approve, and sign City checks, and to return with a report of the findings to the City Council within 45 days. Motion No. 2: Request that the State Controller evaluate whether: • Any City funds have been misused for foreign influence; • Any foreign influence activity has occurred within the City as a whole; and • The State Controller has identified whether the City as a whole has been compromised by foreign influence. Mayor Pro Tem Fu seconded the motion and offered a friendly amendment to Motion No. 2 to replace the phrase "City as a whole" with "City government." Council Member Cao accepted the amendment. Council Member Han asked for support to have staff review options for “clawing back” finances spent by the City from any Council Member that commits a crime, as described in the City Charter. Council Member Cao offered an additional friendly amendment to clarify that any review would apply only if an individual had been found guilty of wrongdoing. Mayor Pro Tem Fu accepted the amendment. 3 07-21-2026 Mayor Pro Tem Fu offered a further friendly amendment authorizing the City Attorney and City Manager to determine whether discussions related to the matter should occur in Closed Session. Council Member Cao accepted the amendment. Council Member Kwan offered a friendly amendment directing a forensic audit of the City's financial records. The makers of the motion did not accept this proposed friendly amendment. Following discussion, it was moved by Council Member Cao, seconded by Mayor Pro Tem Fu, and carried by roll call vote to approve Motions No. 1 and No. 2, as amended. AYES: Cao, Fu, Han, and Cheng NOES: Kwan ABSTAIN: None Council Member Kwan made a motion to hire an independent third-party forensic auditor to review the City’s financial records. The motion failed for lack of a second. b. Report, discussion, and direction regarding regulations for electric bicycles, motorized scooters, and group cyclists. It was the consensus of the City Council to table this item to the June 16, 2026, City Council meeting. The Special Meeting ended at 6:55 p.m. Linda Rodriguez City Clerk 1 07-21-2026 ARCADIA CITY COUNCIL REGULAR MEETING MINUTES TUESDAY, JULY 21, 2026 1. CALL TO ORDER – Mayor Cheng called the Regular Meeting to order at 7:00 p.m. 2. INVOCATION – Reverend Gina Milligan, Santa Anita Church 3. PLEDGE OF ALLEGIANCE – Reverend Gina Milligan, Santa Anita Church 4. ROLL CALL OF CITY COUNCIL MEMBERS PRESENT: Cao, Han, Kwan, Fu, and Cheng ABSENT: None 5. REPORT FROM CITY ATTORNEY REGARDING CLOSED/STUDY SESSION ITEMS City Attorney Maurer reported that prior to the Regular Meeting, the City Council met in a Special Meeting to discuss the two items listed on the posted agenda. Regarding Study Session Item b, related to regulations for electric bicycles, motorized scooters, and group cyclists, City Attorney Maurer noted that public comment was received; however, no discussion occurred, and the item was continued to a future meeting. Regarding Study Session Item a, related to policies and protocols for engagement with foreign governments, foreign officials, and foreign government-related events, City Attorney Maurer reported that the City Council directed staff to bring back for discussion at a future meeting a proposed policy to address interactions with foreign governments and officials, to obtain an independent third-party legal review of existing financial policies, and to request a review by the State Controller’s Office related to City expenditures. 6. SUPPLEMENTAL INFORMATION FROM CITY MANAGER REGARDING AGENDA ITEMS City Manager Lazzaretto announced that Senate Bill 707 went into effect July 1, which requires local agencies to provide an option for remote public comment participation; and noted that the City will now accept both in-person and remote public comments during City Council meetings. 7. PRESENTATIONS a. Presentation to outgoing Board and Commission Members. b. Administer the Oath of Office to newly appointed Board and Commission Members. 2 07-21-2026 c. Presentation of the Proclamation for Responsible Journalism and the Protection of Children. d. Award City of Arcadia and WM Environmental Scholarships. e. Presentation of Mayor’s Certificate of Commendation to Colonel Charles “Buck” Stapleton – California State Guard, for his service. f. Presentation of Mayors’ Certificate of Commendation to Arcadia student Atticus Guo for serving as a FIFA Flag Bearer in the 2026 FIFA World Cup Third Place Play- Off Match. 8. APPOINTMENTS a. Appointments to the Arcadia Museum Commission and the Human Resources Commission. CEQA: Not a Project Recommended Action: Make Appointments City Manager Lazzaretto presented the staff report, and Mayor Cheng conducted the nomination process. Arcadia Museum Commission (1 position) Regarding the Arcadia Museum Commission, the City Council made the following nominations: Council Member Kwan nominated Domenico Tallerico. Council Member Cao nominated Roberta Marquez. Council Member Han nominated Roberta Marquez. Mayor Pro Tem Fu nominated Roberta Marquez. Mayor Cheng noted that there were three votes for Roberta Marquez. As a result, Roberta Marquez was appointed to the Arcadia Museum Commission for a four (4) year term ending June 30, 2030. Human Resources Commission (1 position) Regarding the Human Resources Commission, the City Council made the following nominations: 3 07-21-2026 Council Member Kwan nominated Johnny Tseng. Council Member Cao nominated Azar Dabiri. Council Member Han nominated Kenneth Proulx. Mayor Pro Tem Fu nominated Azar Dabiri. Mayor Cheng nominated Azar Dabiri. As a result, Azar Dabiri was appointed to the Human Resources Commission to fill an unexpired term ending June 30, 2028. 9. PUBLIC HEARING a. Confirm the County of Los Angeles Department of Agricultural Commissioner/Weights and Measures weed abatement charges and order the County Auditor to enter the amounts of the assessment against the parcels of land as they appear on the current assessment roll. CEQA: Not a Project Recommended Action: Approve City Manager Lazzaretto presented the staff report. Mayor Cheng opened the public hearing - there were no public comments. Mayor Cheng closed the public hearing. A motion was made by Council Member Cao, seconded by Council Member Han, and carried on a roll call vote to confirm the County of Los Angeles Department of Agricultural Commissioner/Weights and Measures weed abatement charges and order the County Auditor to enter the amounts of the assessment against the parcels of land as they appear on the current assessment roll. AYES: Cao, Han, Kwan, Fu, and Cheng NOES: None ABSENT: None b. Resolution No. 7693 confirming the Engineer’s Report for the levy and collection of the Arcadia Citywide Lighting District No. 1 and the associated Assessment Diagram; and ordering the levy and collection of assessments for Fiscal Year 2026- 27. CEQA: Not a Project Recommended Action: Adopt 4 07-21-2026 Management Analyst Kim presented the staff report. Mayor Cheng opened the public hearing - there were no public comments. Mayor Cheng closed the public hearing. A motion was made by Mayor Pro Tem Fu, seconded by Council Member Cao, and carried on a roll call vote to adopt Resolution No. 7693 confirming the Engineer’s Report for the levy and collection of the Arcadia Citywide Lighting District No. 1 and the associated Assessment Diagram; and ordering the levy and collection of assessments for Fiscal Year 2026-27. AYES: Fu, Cao, Han, Kwan, and Cheng NOES: None ABSENT: None c. Resolution No. 7705 approving Architectural Design Review No. ADR 25-11 with a Density Bonus and height waiver, and Tentative Tract Map No. TTM 25-07 (84740) for the North Village Mixed-Use Development Project consisting of 130 residential condominium units, including 20 low-income affordable units, and ground floor commercial space, at 225 N. 2nd Avenue. CEQA: Statutorily Exempt Recommended Action: Adopt Senior Planner Arreola presented the staff report. Council Member Kwan inquired about the number of housing units approved within the last 5 years. Development Services Director Flores stated that approximately 1,200 units have been approved through mixed-use developments. Council Member Kwan asked how many residents the proposed 130-unit project is expected to accommodate. Development Services Director Flores stated that the proposed project is expected to house approximately 364 people. Council Member Kwan expressed concerns regarding the project’s potential impacts on public safety and emergency response services, including Police and Fire staffing, and requested that future reports include information regarding these impacts. City Manager Lazzaretto stated that a public safety study conducted several years ago identified the future need for additional Fire Department equipment as the community reaches buildout and that an impact fee was established to address that demand; he added 5 07-21-2026 that the City continues to monitor Police service demands throughout the community and will expand services as necessary to maintain service levels. Council Member Kwan inquired about the amount of commercial space proposed for the project. Senior Planner Arreola stated that the site currently contains approximately 10,000 square feet of commercial spaces, with approximately 6,000 square feet proposed to remain as viable commercial space. Council Member Kwan asked about the project’s long-term fiscal benefits and costs to the City. Senior Planner Arreola explained that staff encouraged the Applicant to maximize and maintain viable commercial space; and stated that the project’s primary fiscal benefit would be increased property tax revenue generated by the residential units. Council Member Kwan expressed the importance of understanding long-term fiscal impacts of residential development, including the City’s ability to provide services while maintaining a high quality of life. City Manager Lazzaretto explained that California law prohibits local agencies from approving or denying development projects based solely on fiscal impacts; he stated that projects must be evaluated based on applicable zoning regulations and state housing laws; he noted that developers are responsible for funding improvements necessary to mitigate project-related impacts; and further stated that the proposed project would generate significantly more property tax revenue than the existing development of the site. Council Member Kwan commented on the proposed building design, expressing concern that the projecting architectural elements created a boxy appearance; and she recommended a design that would be more compatible with the surrounding development. Senior Planner Arreola explained the design review process; he stated that the project complies with the City’s design guidelines; he noted that the State Density Bonus Law allows the applicant to exceed certain development standards in exchange for providing affordable housing units. Council Member Cao requested that City Manager Lazzaretto explain the Regional Housing Needs Allocation (“RHNA”) requirements. City Manager Lazzaretto provided an overview of the RHNA program and its purpose. Council Member Cao asked whether any California cities are exempt from RHNA requirements. 6 07-21-2026 City Manager Lazzaretto confirmed that all California cities are assigned RHNA allocations and are subject to State housing requirements. Council Member Cao emphasized the importance of informing the public that all California cities are subject to the same State housing laws and RHNA obligations. Mayor Pro Tem Fu thanked Council Member Kwan for raising important questions regarding the proposed project. He also thanked her for her support of first responders and affordable housing. Mayor Cheng opened the public hearing. Diego Alvarez, a member of Creative Housing Options in Arcadia (“CHOA”), participated remotely and expressed support for the proposed project. Zhiling Sun and Daniel Wu, Applicants for the proposed project, appeared and responded to questions and comments raised by Council Member Kwan during City Council discussion. Council Member Kwan encouraged the applicants to revise the building design and suggested a design that would be more compatible with the surrounding buildings. Mayor Cheng closed the public hearing. A motion was made by Mayor Pro Tem Fu, seconded by Council Member Cao, and carried on a roll call vote to adopt Resolution No. 7705 approving Architectural Design Review No. ADR 25-11 with a Density Bonus and height waiver, and Tentative Tract Map No. TTM 25-07 (84740) for the North Village Mixed-Use Development Project consisting of 130 residential condominium units, including 20 low-income affordable units, and ground floor commercial space, at 225 N. 2nd Avenue, including the proposed Conditions of Approval and findings. AYES: Fu, Cao, Han, Kwan, and Cheng NOES: None ABSENT: None 10. PUBLIC COMMENTS April Verlato, former Arcadia Mayor and resident, appeared and stated that the City Council should be informed of prior events involving proposed developer-sponsored travel to China by former Council Members as well as the presentation of a certificate by Eileen Wang to a Chinese official; she noted that those events were relevant to the City Council's consideration of future policies regarding interactions with foreign governments and foreign officials; she also commented on an interaction she had with Mayor Pro Tem Fu during the Study Session and the City Council’s Rules of Procedure and Decorum. 7 07-21-2026 Angela Hui, an Arcadia resident, appeared and expressed concerns regarding public safety issues associated with e-bikes and their impact on pedestrians; she encouraged the City and the Arcadia Unified School District to provide parents with information regarding local e-bike regulations and legal responsibilities. In response to Ms. Hui’s public comment, City Manager Lazzaretto noted that this topic was on the Study Session agenda for discussion this evening, but due to a lack of time, it will now be heard at the next City Council meeting. Grace Lee, Arcadia resident, appeared and spoke about a political speech that she wanted to share with the City Council. An anonymous caller expressed frustration that the City Council had not addressed community concerns related to Eileen Wang; the caller encouraged the City Council to defer consideration of the proposed foreign government engagement policies until after the November 3, 2026, General Municipal Election; and offered suggestions for the proposed policies. MJ Finstrom, Arcadia resident, participated remotely and expressed confusion over the earlier discussion on potential policies regarding interactions with foreign governments and foreign officials; she stated that the City Council had not adequately addressed community concerns related to Eileen Wang; and she urged the City Council to adopt policies specifically aimed at preventing foreign governments from influencing or supporting candidates for local elected office. 11. CONSENT CALENDAR a. Regular Meeting Minutes of June 16, 2026. CEQA: Not a Project Recommended Action: Approve b. Resolution No. 7627 amending Resolution No. 7594 establishing compensation and related benefits for employees represented by the Arcadia City Employees’ Association (“ACEA”) for July 1, 2026, through June 30, 2027 (Revenue Collection Supervisor). CEQA: Not a Project Recommended Action: Adopt c. Resolution No. 7706 approving continued participation in the Los Angeles Urban County Community Development Block Grant Program (“CDBG”) and authorizing the City Manager to sign a Cooperation Agreement with the Los Angeles County Development Authority (“LACDA”). CEQA: Not a Project Recommended Action: Adopt and Approve 8 07-21-2026 d. Professional Services Agreement for the Radio Communication Repeater Site Project with GrayDS Inc. in an amount not to exceed $1,321,077. CEQA: Exempt Recommended Action: Approve e. Professional Services Agreement with the State of California Office of Administrative Hearings in an amount not to exceed $48,000. CEQA: Not a Project Recommended Action: Approve f. Professional Services Agreement with Ingram for the purchase of library materials in an amount not to exceed $169,000. CEQA: Not a Project Recommended Action: Approve g. Professional Services Agreement with Moss, Levy & Hartzheim, LLP for financial auditing services. CEQA: Not a Project Recommended Action: Approve h. Amendment No. 1 to the Professional Services Agreement with Range Maintenance Services, LLC for gun range maintenance services for Fiscal Year 2026-27, in an amount not to exceed $38,869. CEQA: Not a Project Recommended Action: Approve i. Contract with Kalban, Inc. for the Fiscal Year 2025-26 Pavement Rehabilitation Project in the amount of $1,274,476.75, with a 10% contingency. CEQA: Exempt Recommended Action: Approve j. Contract with All Source Coatings, Inc. for the Arcadia Police Department Floor Replacement Project in the amount of $223,781.08, with a 10% contingency. CEQA: Exempt Recommended Action: Approve k. Contract with Onyx Paving Company, Inc. for the Americans with Disabilities Act Sidewalk and Curb Ramp Improvements Project in the amount of $157,000, with a 10% contingency. CEQA: Exempt Recommended Action: Approve l. Purchase Order with 72 Hour LLC dba National Auto Fleet Group for the purchase of one 2027 Freightliner M2106 Plus Flatbed with National Crane 400B Series, in the amount of $392,887.17. 9 07-21-2026 CEQA: Not a Project Recommended Action: Approve m. Purchase Order with Inland Lighting Supplies Inc. for the purchase of streetlight poles in the amount of $70,695.69. CEQA: Not a Project Recommended Action: Approve n. Purchase Order with 72 Hour LLC dba National Auto Fleet Group for the purchase of three 2027 Ford Police Interceptor Patrol Utility vehicles in the amount of $192,743.85. CEQA: Not a Project Recommended Action: Approve o. Purchase Order with HydroPro Solutions for the purchase of data log radio read water meters for the City’s water distribution system in the amount of $150,000. CEQA: Exempt Recommended Action: Approve p. Purchase Order with Vault Access Solutions for the fabrication and purchase of three large water meter vaults in the amount of $50,624.57. CEQA: Exempt Recommended Action: Approve q. Purchase Order and Amendment No. 2 to the Master Software as a Service (“SaaS”) and Service Level Agreement with LiveView Technologies Inc., for the lease of three mobile surveillance trailers through the California Governor’s Office of Emergency Services 1122 Program, in an amount not to exceed $106,611 for Fiscal Year 2026-27. CEQA: Not a Project Recommended Action: Approve r. Change Order to increase the Purchase Order with Phoenix Group Information Systems for parking citation processing and collection services, parking permit, and administrative citation processing, in the amount of $30,000. CEQA: Not a Project Recommended Action: Approve s. Accept all work performed by Mackone Development, Inc. for the Par 3 Restroom Remodel Project as complete. CEQA: Exempt Recommended Action: Approve Council Member Kwan pulled Consent Item 11.g. - Professional Services Agreement with Moss, Levy & Hartzheim, LLP for financial auditing services, for separate discussion; and 10 07-21-2026 asked questions regarding auditor independence, partner rotation, the scope of the annual audit, and the services to be provided under the proposed agreement. In response to Council Member Kwan’s inquiries, City Manager Lazzaretto confirmed that Moss, Levy & Hartzheim, LLP has served as the City’s independent auditor for approximately 11 years, and if approved, would continue providing auditing services under the proposed agreement. Administrative Services Director Chen explained that rotating the audit partner, while retaining the same accounting firm, is a standard industry practice and was being done for Arcadia; he stated that partner rotation provides a fresh review while preserving the firm’s institutional knowledge of the City’s financial operations and complies with applicable auditing standards. City Attorney Maurer stated that State law requires the lead audit partner to rotate every six years but does not require the City to retain a different auditing firm; and he confirmed that the proposed agreement complies with applicable legal requirements. Council Member Kwan requested clarification regarding the firm's assistance with preparation of the City's Annual Comprehensive Financial Report and asked what safeguards exist to ensure auditor independence. Administrative Services Director Chen explained that City staff prepare the financial information, while the auditors assist with converting the information into the required reporting format; and he stated that industry standards prohibit auditors from auditing financial records they have prepared. Council Member Kwan asked whether the proposed agreement included a forensic financial audit and whether the annual audit encompasses areas such as donations, sponsorships, special event expenditures, travel reimbursements, use of City facilities, payments related to special events, and potential conflicts of interest. Administrative Services Director Chen clarified that the agreement provides for the City's standard annual financial audit and does not include forensic auditing services. He stated that the annual audit includes procedures to review financial transactions, internal controls, fraud risk, and compliance with applicable accounting standards, but does not constitute a forensic audit. City Attorney Maurer stated that the proposed agreement is for the City’s annual financial audit and does not include forensic auditing services. City Manager Lazzaretto noted that the City received multiple proposals in response to the Request for Proposals; he stated that all the responding firms are qualified to perform the audit in accordance with applicable professional standards; and he advised that the City 11 07-21-2026 Council may determine whether it seeks to retain the incumbent firm or select another qualified proposer. It was moved by Mayor Pro Tem Fu, seconded by Council Member Cao, and carried on a roll call vote to approve Consent Calendar Items 11.a through 11.s. AYES: Fu, Cao, Han, and Cheng NOES: Kwan ABSENT: None 12. AB 1234 REPORTS FROM MAYOR AND CITY COUNCIL (limited to legally required reports). City Council had nothing to report. 13. REQUEST FOR FUTURE ITEMS Mayor Pro Tem Fu requested City Council support to add an item to a future agenda to discuss winter storm preparedness in the event of heavy rainfall. Council Member Cao and Mayor Cheng concurred. 14. ADJOURNMENT The City Council adjourned in memory of Gene Platt, long-time Arcadia resident, at 9:30 p.m. to Tuesday, August 18, 2026, at 6:00 p.m., in the City Council Chambers. Linda Rodriguez City Clerk