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CC - Item 3A - Minutes of 05-26-09Minutes of the REGULAR CITY COUNCIL MEETING May 26, 2009 The regular meeting of the Rosemead City Council was called to order by Mayor Clark at 7:00 p.m. in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California. FLAG SALUTE: Council Member Ly INVOCATION: Mayor Clark PRESENT: Mayor Clark, Mayor Pro Tern Taylor, Council Member Armenta, Council Member Low, and Council Member Ly. OFFICIALS PRESENT: Acting City Manager Hawkesworth; Interim City Attorney,Montes, Assistant City Manager Saeki, Director of Finance Brisco, Director of Parks and Recreation Montgomery-Scott, Economic Development Administrator, ,Ramirez, _Deputy Public Works Director Marcarello, and City Clerk Molleda. , is 1. PRESENTATION A. Crowning of the Rosemead's 4th of,July.Queen ' Director of Parks and Recreation Montgomery Scotfiihtroduced the 4th of JUly Queen Freesia Quezada and went over all the activities she is involved in, as well as her accomplishments. Some of Freesia activities involve being a junior in Rosemead High School with a 4.0 GPA, she's had perfect attendance since Kindergarten, she is a member'of the California Scholastic Federation, is part of the Gifted and Talented'Educatjon Club,.is,eligible to take English and History advance classes, and is a 3 year member of.the Varsity.High School soccer. Freesia'Quezada was crowned with`the help of the previous 41h of July Queen and the City Council. Ms. Quezada thanked Council for given her the opportunity to represent the city in the best way she can. She told Council that the first time she attended the Rosemead parade she was only 7 and was very happy that 10 years later she would actually be in the parade. Mayor Clark congratulated Freesia Quezada and added that she was looking forward to the 4m of Juy. Procblamation - City Clerk Mayor Clark read the proclamation and presented it to City Clerk Gloria Molleda. 2. PUBLIC COMMENT FROM THE AUDIENCE Rosemead City Council Meeting Minutes of May 26, 2009 Page I q/ 11 Lillian Sacco - stated that President Obama has stressed that we should be able to agree to disagree without being disagreeable. We have the right to criticize any position that we don't agree with; I support that fully. The use of the internet to make anonymous nasty comments about Rosemead residents who speak during the council meetings is deplorable and un-American; only cowards hide behind anonymity. Mrs. Sacco also added that she had requested the Los Angeles Grand Jury to investigate the city's mismanagement of the Wal-Mart construction and operation. Mayor Pro Tern Taylor asked what comments were made on the internet and if she knew who had made the comments. Mrs. Sacco stated there were nasty comments made about four individual'and they were anonymous. "Marlene Shinen - stated she was thankful for the change in the majority council and that she respected and believed Council Member Low's statement, which,was made in;the past about "to vote her conscious". Ms. Shinen addressed Council Memtiers'Armenta and Ly and stated she admired the strength she had witness within them to stand up to power and run'for Rosemead city council knowing the challenges it presented; Council Member Armenta to win your seat by one vote, I can only describe that as an awakening. As a resident of South San Gabriel:and your neighbor I place in you and this council a measure of trus(and'ask God's blessing for you and your city. Daniel Allen Calbert - spoke in regards to possums and raccoons coming out of the sewers and asked if the city would consider putting up some kind ,of,gratings-sthe animals can't go in and out of the sewers. Chuck Lyons - Congratulated Freesia Quezada and stated she did not go around telling people about how good she is. On another, topic 41 Mr. Lyons'stated that a lot of people talked about saving energy but was glad to,seetthe city was actually doing something about it by purchasing energy saving cars. 3. PUBLIC HEARING A. ,Public Hearing on the Fiscal Year 2008.09 Annual Action Plan Amendment forthe Community Development Block Grant (CDBG) Program A public hearing is being held tonight for the review and approval of the City's amended Annual Action Plan for the period of July 1, 2008 - June 30, 2009. The City has received notification from the U.S. Department of Housing and Urban Development (HUD) that Rosemead is expected to receive $306,851 from the American Recovery and Reinvestment Act of 2009: Community Development Block Grant. This funding, referred to as "CDBG-R", is separate from the regular, annual CDBG funds that the City receives every year. As a result of these additional funds, the City is required to amend its FY 2008-09 Annual Action Plan to include the proposed use of the CDBG-R funds. The City received $1,138,481 Rosemead City Council Meeting Minutes ofMay 26, 2009 Page 2 of 11 in CDBG funds for fiscal year 2008-09 (July 1, 2008 -June 30, 2009). The FY 2008-09 Annual Action Plan provides specific information about projects that are currently being funded as CDBG-eligible activities. Recommendation: That the City Council take the following actions: Conduct a public hearing and take public testimony on the Annual Action Plan covering the period of July 1, 2008 - June 30, 2009; 2. Approve the CDBG-R funding recommendations, authorize the submittal of the City's amended FY 2008-09 Annual Action'Plan to the U.S. Department of Housing and Urban Department; ah&, 3. Authorize the Interim City Manager to, execute .all,appropriate and necessary documents to receive funding and implement approved use. Economic Development Administrator Michelle Ramirez' reviewed the staff report.,' ' Council Member Low asked if the city had any plans to usethese;funds. t ' Mrs. Ramirez stated that the Council on a previous meeting had'approved a contract for slurry seal and the funds would be use for that project.. The Mayor opened the Public Hearing at 7:26 p.m there being no public comment requests the Public Hearing was closed at-7:26 p.m. ' Council Member Polly Low made a'motion; seconded by Council Member Steven Ly, to approve staff's recommendations. Vote resulted m:.' Yes: Armenta, Clark, Low, Ly,Taylor No: None'. Abstain: None Absent: None' 4. CONSENT CALENDAR Item 4A was deferred to the next City Council meeting A. Minutes March 26, 2009 - Special Meeting May 9, 2009 - Special Meeting May 12, 2009 - Special Meeting Rosemead City Council Meeting Minutes ofMuv 26, 2009 Page 3 gJ71 B. Resolution No. 2009.23 Claims and Demands Recommendation: Adopt Resolution No. 2009-23, for payment of City expenditures in the amount of $1,026,065.88 numbered 100328 through 100343 and 66074 through 66205. C. Approval of Fireworks Stand Location Staff has included a list of 14 applicants who have requested a permit to sell fireworks and their stand locations that the License Department is recommending for approval by the Council for the year 2009. All deposits have been received and certificates of insurance are on file. Recommendation: That the City Council approve the•list of applicants and their stand locations and waive any electrical fees; Item 4D was removed from the agenda and No Action was taken on this item D. Corporate Surety Bonding of Certain+Employees\• vi ,F a4 It has come to the attention.of staff that certain employees are required to be covered by a corporate suretybond. Specificaljy;,ttie..City Manager and the Finance Director are to be bonded at an amount to be determined by the City Council. The City Clerk is to be bonded in the amourit of five thousand dollars ($5000). 7. Recommendation: That the CityCouncil: i. c 7 1.' , Setttie'amount of c'drporate surety bonding for the City Manager at fifty thousand dollars ($50,000) and one hundred twenty-five jr' i•, thousand dollars ($125,000) for the Finance Director. Bonding for the City 'Clerk is to.remain at five thousand dollars ($5,000). 1 2. Direct staff to purchase corporate surety bonding in the names of the City Manager, the City Clerk, and the Finance Director. All l; bonds are to name the City as oblige. 3. Approve Resolution No. 2009-25. E. Annual 2008.09 Curb Ramps Construction Project - Notice of Completion As part of the City's Fiscal Year 2008-09 Capital Improvement Program, the City Council approved a program entitled, "Targeted Public Works Projects", which consists of public improvements to the City's local streets and public right-of-way areas. In compliance with the American with Disabilities Act (ADA) guidelines, this construction project consists of adding and retrofitting a total of seventy-four (74) curb ramps. Rosemead City Council Meeting Minutes gfMay 26, 2009 Page 4 of 'lI On March 10, 2009 the City Council awarded a construction contract to CJ Concrete Construction, Inc. and directed staff to proceed with the construction. This project has now been completed to the satisfaction of the City's Public Works Department. Recommendation: That the City Council: Accept the Work; 2. Authorize the City Engineer to file a Notice of Completion; 3. Authorize the City Engineer to release the Labor and Material Bond thirty-five (35) days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4. Authorize the•City Engineer to release the FaithfulTerformance Bond one (1) year after City Council acceptance.` ` F. Residential Roadway Resurfacing Project-Contract Award As part of the City's Fiscal Year r2008-09 Capital improvement Program, the City Council approved a program entitled, "Residential Roadway Resurfacing", which consists of asphalt concrete overlay, sdewalk.repairs, curb ramp construction, traffic striping, signage installation and tree planting on 9 residential streets. Prop 1B and Gas Taz funds were allocated for this'project. Recommendation: That the City Council: 1. Authorize the,City Manager to execute a contract on behalf of the City with Sully-Miller Contracting, Co. for the Residential Roadway Resurfacing Project for the bid amount of $1,002,005. 2. Establishing an amount of approximately 10% of the contract amount ($100,000), as a contingency, to cover the potential cost of unforeseen site conditions. G. City Tree Planting Project - Contract Award As part of the City's Fiscal Year 2008-09 Capital Improvement Program, the City Council approved a program entitled, "City Tree Planting Project", which consists of planting trees in several City, parkway locations along City streets. After evaluating these locations, staff developed tree planting recommendation to help maintain the consistency and look of trees in each neighborhood. This project will add 395 new trees throughout the community. This project is funded with Gas Tax funds. Rosemead City Council Meeting Minutes olMay 26, 2009 Page 5 of I I Recommendation: That the City Council: Authorize the City Manager to execute the contract on behalf of the City with Yakar for the City Tree Planting Project in the amount of $115,872. 2. Establish an amount of $12,000 as a contingency to cover the cost of unforeseen construction expenses. Council Member Steven Ly made a motion, seconded by Council Member Polly Low, to approve the Consent Calendar with the exception of Items A, D, H,,and I.. Vote resulted in: a Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None r t' , Absent: None i H. Del Mar Avenue Tree Planting Project, As part of the City's Fiscal Year 2008-09 Capital Improvement Program, the City Council approved a project entitled, "Del Mar'Avenue Resurfacing". The limits of the project are from Garvey Avenue to Highclff Street.- Tree planting in parkway areas on Del Mar was incl deflo contribute to the overall efforts of beautification and urban forestation in the City.,.. In an effort to attract the most economical bid-for the tree planting portion of the project, which requires a different contractual trade than the regular resurfacing work, the "roject was split into. two contracts: Once for the tree planting work and the second for the resurfacing-related work. On May 12, 2009;,t e,City Council authorized staff to survey Del Mar Avenue residents,and determine if-there is a desire to move forward with planting trees in parkway locations. Staff'has completed the results of this survey for further review. Recommendation: That the City Council: r1. Authorize tree,plapting at locations approved by property owners and residents; Authorize staff to patch and repair all excavated areas where trees will not be planted Juan Nunez - stated that staff had performed a survey regarding the trees but that he had a list of 15 signatures that were against this project. Asked how many people the city had interviewed for this survey. Rosemead City Council Meeting Minutes q/May 26, 2009 Page 6 of I I Deputy Director of Public Works Marcarello stated it had been 42 people along Del Mar and of those 42, 35 were interested in having trees planted. Mayor Pro Tem Taylor asked if the 7 that were apposed to the trees if the holes were going to be filled with concrete. Mr. Marcarello responded that it was correct. Council Member Low asked how long it would take to finish this project. Mr. Marcarello responded it would take 3 to 4 days. Mayor Pro Tern Taylor asked why the last block and a half was not cohsidered; from Highcliff to Graves. Mr. Marcarello responded that the intent of this project was to get the most economical bid for tree planting with the road resurfacing project. Council Member Polly Low made a motion, seconded by,Couneil.Member Steven Ly, to approve staff's recommendations. Vote resulted in: Yes: Armenta, Clark, Low, LyJaylor ` No: None • r All Abstain: None Absent: None Hybrid Vehicle Purchase Since 1991, local governments„Have received AS 2766 funds to implement programs that. reduce air pollution from motor vehicles. These funds are generated by a State mandated vehicle registration fee surcharge through the Department-'of Molor Vehicles-and are subvened to the South Coast Air Quality Management District (AQMD) for disbursement. With these funds, cities are able to purchase alternative fuel' vehicles for their fleets. To date, the City of Rosemead has approximately $40,000 in AS 2766 funds available for this purpose. Recommendation: That the City Council: Appropriate $27,400 of AS 2766 funds to purchase a Chevrolet Malibu Hybrid vehicle; and 2. Approve Resolution NO. 2009-26 authorizing staff to purchase the vehicle from Wondries Fleet Group. Item 41 was deferred and No Action was taken on this item. Rosemead City Council Meeting Minutes of May 26, 2009 Page 7 of I I 5. MATTERS FROM CITY MANAGER & STAFF A. Post Retirement Healthcare Funding The Government Accounting Standards Board (GASB) issued GASB Statement 45 in June 2004 which requires all government agencies to evaluate and adopt a funding plan for Other Post Employment Benefits (OPEB). GASB 45 mandates that public agencies with annual budgets between $10 million and $100 adopt and implementation plan in the fiscal year beginning after December 31, 2007. For the City of Rosemead, the requirement is for implantation in the 2008-09 fiscal year. City staff requested that a valuation be performed in.accordance with GASB 45 by Public Agency Retirement Services (PARS) as theycur\ently perform similar services for the City's supplemental retirement-plan. Based on the valuation, which utilizes payroll and demographic information as of January 1, 2008, it was determined that the City has an actuarial unfunded liability of.$2.66 million. City staff in conjunction with PARS staff have developed four possible,funding scenarios to account for and fund,this benefit an'd•actuadal liability..; , x Recommendation: That the City Council`approve funding option 4 to fully fund the liability over five (5) years and budget accordingly for annual contributions. Furthermore, staff recommends that the City Councitadopt Resolution No. 2009- 24, the Adoption Agreement;,Trust Agreement, and Administrative Services Agreement, and authorize thkcting;Citi-Manager to execute the necessary documents to establish an Irrevocable Medical Benefit Trust with PARS. Mayor Pro Tem Taylor stated that a lot of the back-up for this item was over 2 years old. Mr. Taylor also asked what would happen to the employee after turning 65 years old, he was under the impression that it was the law, thatthey,would have-to sign up for social security. Acting CityManage~ Hawkesworth'stated that was correct and that any retired employee would have,to coordinate the required Medicare benefit with the city's retired paid benefit and it would be a coordihated;benefit at that~point. Mayor Pro Tem.Taylor asked were those rules of coordination were because he didn't see them in the report. ; Mr. Hawkesworth responded that those rules were not spelled out in this benefit because those were federal benefit rules. Mayor Pro Tem Taylor asked who ends up being the primary and secondary payer. Mr. Hawkesworth stated that if you are employee with the city then the city is the primary health provider; however, once someone turns 65 and is retired Medicare becomes the primary and the city secondary. Rosemead City Council Meeting Minutes of May 26, 2009 Page 8ofll Mayor Pro Tem Taylor stated that the city was selecting PARS instead of CalPERS for these type of benefits was because the city had an option on changing the providers. Mr. Hawkesworth responded that was correct. He clarified that the city's insurance broker who manages the premiums is CalPERS and PARS is going to manage the payment of the benefits and the accumulation of these benefits. Mayor Pro Tem Taylor asked if this item could be deferred for two weeks because he would like to see it come back with an explanation on how this works with the Medicare benefits. Denise Hue - Vice President of PARS clarified that once an employee reaches 65 and there is coordination with Medicare that is when there is an adjustment in the-employee's benefits because Medicare then becomes the primary benefit provider. Council Member Low asked Mr. Hawkesworth to go over the plans. Mr. Hawkesworth reviewed the staff report and went over the plan that was attach6d.to the staff report. Council Member Polly Low made a motion,'seconded by Council Member Steven Ly, to approve funding option 4 to fully fund'the. iability over five years and adopt Resolution No. 2009-24, the Adoption Agreement, Trust: Agreement, and Administrative Services Agreement. Vote resulted in: Yes: Armenta, Clark, Low, Lys v,/,%/ No: None Abstains,Taylor " Absent: None 6. MATTERS FROM MAYOR &'CITY COUNCIL A.. Sister City Program Previously, Mayor Clark requested staff to look into the re-establishment of the City's Sister City program. The City does have official sister city ties with the cities of KeelungJaiwan and Zapopan, Mexico. Staff is currently working on contracting representatives from these two communities to determine if they still desire to have a sister city relationship with Rosemead. City staff also conducted research regarding sister city programs in other cities throughout the State of California to determine the best method of re-establishing a sister city program. Recommendation: That the City Council review the information acquired and provide direction to staff regarding the Sister City Program. Acting City Manager Hawkesworth reviewed the staff report and asked Council for direction on how they would like to see the program move forward. Rosemead Citv Council Meeting Minutes ofMay 26, 2009 Page 9 of I I Mayor Clark stated she has requests from members of the community that would like to see the programs reinstated in some of the ways that other cities are doing it. Asked staff to prepare an application form for people. Mr. Hawkesworth stated that other cities have established committees for this program by having the public filled out an application for and then not only having this committee start the program but also develop non-profit status. Council Member Ly asked if the goal was to reestablish ties with Keelung, as well as, with Zapopan. Mayor Clark stated that was possible but that she had received Keelung and was not sure if there was interest by the communi Council Member Low asked if the city was interested in how that would be possible. Mayor Clark stated she would like to see Keelung,get,revil Council Member Ly stated he liked that some cities used thi; purposes such as youth exchanges and student exchanges; be more involved and not only the Council:. Mr: Ly. suggeste quest to reestablish ties with o;dothe same with Zapopan. ig the program with China and r . and then go from.ttiere ram for more educational s,that would help the community both cities be revised for these r programs because he believed the city had interest m;both. Council Member Armenta stated,that the PL promote peace through.mutual respect and community. tr .the Sister; Ci International program was to it was very"'important to bring that to this Council Member Armenta also stated.thafbefore'going into closed session she would like to say a couple words:' Ms. Armenta stated that the litigation had ended last Friday and she wanted to thank everyone for their, support and all, the encouraging words she received. The'City Council recessed to Closed Session of 8:00 p.m. 7. CLOSED SESSION A. Confererce with Legal Counsel --Existing Litigation Government Code 54956.9 (a): 1) Tran v. Armenta, Molleda, Logan (the County Registrar of Voters) and the City of Rosemead B. Conference with Labor Negotiator Government Code Section 54957.6; Labor Negotiations Update Negotiator for the City: Matthew E. Hawkesworth Employee Unit: Rosemead Employee Association Rosemead City Council Meeting Minutes gfMay 26, 2009 Page 10 of II The City Council reconvened out of Closed Session at 8:23 p.m. Interim City Attorney Montes stated there was no reportable action taken during Closed Session. 8. ADJOURNMENT The meeting adjourned at 8:23 p.m. The next regular City Council meeting is scheduled to take place on June 9, 2009 at 7:00 p.m. - ATTEST: Margaret Clark,.4 Mayor Gloria Molleda, City Clerk Rosemead City Council Meeting Minutes q/Mgy 26, 2009 Page I I of 11