CC - 11-17-09Minutes of the
City Council
Community Development Commission
Planning Commission
Traffic Commission
and.
Youth Ad Hoc Committee
November 17, 2009
The regular meeting of the Rosemead City Council was called to order by Mayor Clark at 6:00 p.m.
in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead,
California.
FLAG SALUTE: Mayor Pro TemNice-Chair Taylor
INVOCATION: Council Member Armenta/Commissioner Armenta
PRESENT: Mayor/Chairwoman Clark, Mayor Pro TemNice-Chairman Taylor, Council
Member/Commissioner Armenta, Council Member/Commissioner Low, and Council
Member/Commissioner Ly. Chairwoman Herrera, Vice-Chair Alarcon, Commissioner Eng,
Commissioner Hunter, Commissioner Ruiz. Chair Masuda, Commissioner Deary, Commissioner
Hall, and Commissioner Lewin. Chair Tuong, Vice-Chair Chen, and Committee Members Dao,
Hallinan, Loc, Quezada
ABSENT: Traffic Commission Vice-Chair Joanne Russell
STAFF PRESENT: City Manager Allred, Assistant City Manager Hawkesworth, City Attorney
Richman, Community Development Director Saeki, Director of Finance Brisco, Director of Parks
and Recreation Montgomery-Scott, Economic Development Administrator Ramirez, Public Affairs
Manager Flores, Deputy Public Works Director Marcarello, and City Clerk Molleda.
1. PUBLIC COMMENTS FROM THE AUDIENCE - None
2. COMMISSION CONSENT CALENDAR
A. Claims and Demands
Resolution No. 2009 - 36
Recommendation: Adopt Resolution No. 2009-36 for payment of Commission
expenditures in the amount of $7,111.84 demand nos. 100065 and demand nos.
11185 through 11188.
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Minutes of November 17, 2009
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Resolution No. 2009 = 37
Recommendation: Adopt Resolution No. 2009-36 for payment of Commission
expenditures in the amount of $105,275.14 demand nos. 100066 through 10070
and demand nos. 11189 through 11164.
Commissioner Steven Ly made a motion, seconded by Commissioner Polly Low to approve
the Commission Consent Calendar. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
3. INTRODUCTION OF DRAFT STRATEGIC PLAN
A. Over the past several months the City Council has worked on the development of
a Strategic Plan to establish a long-term vision as well as goals and strategies for
the City. The Council will introduce the Draft Strategic Plan to the Planning
Commission, Traffic Commission and Youth Ad Hoc Committee. The purpose of
this joint meeting is to receive comments on the draft document before it is placed
into final form for City Council adoption.
City Manager Jeff Allred reviewed the staff report and introduced Christine Harper of Brand
Endeavor and stated she would be going over the Strategic Plan with City Council and the
Commissions.
Christine Harper stated that the goal for the day was to have a conversation between the City
Council and the Commissions and to receive any feedback and comments that the Commissions
might have. Ms. Harper explained that a survey had been conducted earlier in the year, which
asked the community their perceptions of Rosemead and where they wanted Rosemead to go.
That statement of value became the foundation to develop the Strategic Plan. Ms. Harper also
explained that she understood the City had other plans in process such as the Facilities Master
Plan and the General Plan but she explained that although those items are addressed in the
Strategic Plan; the Strategic Plan was not meant to supersede the other plans.
Ms. Harper reviewed the "Vision 2020".
Mayor Margaret Clark stated that she had brought the issue up before regarding addressing
Rosemead as being "in the heart of the city". Mrs. Clark explained that she thought that implied
that Rosemead was just part of Los Angeles.
Council Member Ly asked if it would be better to amend that statement to say "in the heart of the
valley".
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Mrs. Clark stated that something like that would be better and added that she thought that
statement was going to be worked on.
Ms. Harper apologized and stated that she had misunderstood and had just taken off the word "Los
Angeles" and changed it to the "city". She added she would work on amending that section.
Planning Commissioner Nancy Eng stated she would also like to see something added on the
statement that says the businesses store fronts need to be clean and appealing.
Traffic Commission Chair Howard Masuda referred to the sentence that addressed schools and
quality of education; he added that it needed to include the City's recreational centers because the
schools were not the only ones providing educational programs.
Commissioner Keno Deary arrived at 6:12 p. m.
Mayor Margaret Clark stated that she liked Council Member Ly's suggestion about the heart of
the valley.
Ms. Harper stated that they would work on that but the only thing that worried her about that was
that not everyone knew what the San Gabriel Valley is and it doesn't describe the type of
environment.
Planning Commissioner Joan Hunter stated that she has observed signs on businesses that are
only in Chinese and she felt that the City needed to be more careful with the signs that go up.
Ms. Harper reviewed the goals of Strategy 1 on the plan for the next two years (2010 and 2011).
Traffic Commissioner Brian Lewin stated he would like to see implementing the City's new street
signs; he added that one of the clear ways to signal to the surrounding cities that this is a different
Rosemead is by the signage. Mr. Lewin stated that the new signs enhanced public safety because
they were a lot easier to see. He also expressed concern over streets in Rosemead that do not
contain sidewalks.
Mayor Margaret Clark asked if the residents would have to pay for the implementation of
sidewalks.
Planning Commissioner Victor Ruiz stated that the City could get some funding from the Safe
Roads to School program. Mr. Ruiz stated that he had collected $250 thousand for the City of La
Mesa from this program and it also included funds for policing.
Traffic Commission Chair Howard Masuda stated that he knew speed in the City streets was a
concern and suggested that maybe the plan include the creation of a Traffic Calming plan.
Ms. Harper reviewed the goals for Strategy 2 of the Strategic Plan.
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Mayor Margaret Clark stated that on strategy 3 if it was necessary to engage a consulting firm to
initiate a Redevelopment Plan amendment.
City Attorney Rachel Richman stated that the study was very detailed that was done parcel by
parcel and usually it was done by consultants.
Planning Commission Chair Diana Herrera stated she noticed the plan addresses
implementation of commercial building fagades and asked why not include residential properties
Ms. Harper reviewed the goals for Strategy 4 of the Strategic Plan.
Traffic Commissioner Keno Deary stated he noticed this was under parks and asked if there was
a plan to utilize those areas as parks that are under the corridors. He added that it did not seem
safe to have a park for kids under transformers.
Planning Commission Vice-Chair William Alarcon asked if the plan was only talking about
pocket parks from Edison that were under the transmission lines.
Ms. Harper reviewed the goals for Strategy 5 of the Strategic Plan.
Planning Commissioner Nancy Eng asked how big of a redevelopment bond was the city looking
at.
City Manager Jeff Allred stated he didn't know yet but that this was not a bond that would add
taxes to anyone; these are property taxes increment bonds, which is existing taxes. There will be
no increase in taxes.
Ms. Harper reviewed the goals for Strategy 6 of the Strategic Plan.
Traffic Commissioner Brian Lewin stated that in regards to the implement development impact
fee for parks development he would like to see cell phone transmission mono palms included.
Traffic Commissioner Nancy Eng stated she would like to second Mr. Lewin's comments. She
also added that she has lived in the City for many years and felt that maybe staff could compile the
history of Rosemead residents that have been here for many decades; that would give the City a
more personal feel and it will make the City stand out as a City.
Council Member Sandra Armenta stated that the City did have a historical book for the first 25
years and it would be nice to compile history from the 25 years that were already recorded to now.
Mayor Margaret Clark stated that Myrna Brown compiled some more of the history of Rosemead.
Council Member Polly Low stated that it would be great to involve some of the residents to
engage in the process of compiling stories and the history of Rosemead.
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Ms. Harper asked if there were any questions or comments on the goals for Strategy 7, 8, or 9 of
the Strategic Plan.
Traffic Commissioner Brian Lewin referred to Strategy 9 and stated that it would be nice for faith
based organizations to have some sort of inclusive language to indicate that the City is looking at
all faith based organizations in the City.
Ms. Harper asked if there were any questions or comments on the goals for Strategy 10 and 11.
Planning Commissioner Nancy Eng stated she would also like to suggest adding among
residents and business to Strategy 11.
Council Member Steven Ly asked that "Concerts in the Parks" event also be included under this
strategy.
Planning Commission Vice-Chair William Alarcon stated that since the Lunar New Year event
was included under this strategy he would also like to see something included for the City's largest
group of people, Hispanics, such as Cinco de Mayo or September 16th.
Ms. Harper asked if there were any questions or comments on the goals for Strategy 12 and 13.
Council Member Steven Ly stated that as he had mentioned before he thought the reason the
City was not in the same financial state as other neighboring cities was because Rosemead is a
contract city. However, the city had recently made a great attempt in creating a personal feel with
the City's contract services; he added that he would like the city to continue to be a contract city
with a personal feel.
Ms. Harper asked if there were any questions or comments on the goals for Strategy 14 and 15.
She concluded her presentation since there were no further questions or comments.
City Manager Jeff Allred announced that the plan would be back for City Council's approval on
December 8, 2009.
The City Council meeting recessed at 6:46 p.m.
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: Mayor Pro Tern Taylor
INVOCATION: Council Member Armenta
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PRESENT: Mayor Clark, Mayor Pro Tern Taylor, Council Member Armenta, Council Member Low,
and Council Member Ly.
STAFF PRESENT: City Manager Allred, Assistant City Manager Hawkesworth, City Attorney
Montes, Community Development Director 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.
4. PRESENTATIONS
Breast Cancer Awareness and End Domestic Violence Joint Proclamation
Lisa Yang, President of the Improving the Lives of Women and Girls organization, was present to
receive the proclamation.
Wells Fargo Bank - Presentation of a Financial Contribution to the City of
Rosemead Public Safety Department
Wells Fargo Bank representatives presented a $1,000 check to the City of Rosemead Public
Safety Department.
Introduction of L.A. County Assistant Fire Chief Anthony Iacono
Assistant Fire Chief Anthony Iacono was not in attendance.
5. PUBLIC COMMENT FROM THE AUDIENCE
Holly Knapp - stated she had flyers to pass out regarding People for People; Mrs. Knapp read the
flyers which reference an upcoming event for the organization. She asked that people bring
turkeys to this event so that they are given to the families they feed during the holidays and
throughout the year. Mrs. Knapp added that whoever brought turkeys to this event they would be
fed breakfast for free.
6. PUBLIC HEARINGS
A. A Joint City Council and Community Development Commission Public
Hearing on the Expenditure of Community Development Commission Funds
for the FY 2009-10 Capital Improvement Plan for the Development of a
Synthetic Track at Rosemead High School and the Approval of an
Agreement with the El Monte Union High School District
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Approximately one year ago the City Council authorized partnership efforts with
the El Monte Union High School District to determine the feasibility of installing a
synthetic track at the Rosemead High School Stadium for both school and
community use. Through these discussions it has been tentatively agreed upon
that the City would assume 60% of the construction costs and the District would be
responsible for 100% of the ongoing maintenance costs associated with the track.
Recommendation:
1. That the Community Development Commission adopt Resolution No.
2009-35 making the appropriate findings under Health and Safety
Code Section 33445.
2. That the City Council adopt Resolution No. 2009-59 making the
appropriate findings under Health and Safety Code Section 33445
and the Council consent to the proposed Commission expenditures.
3. That the City Council approve the Agreement between the City and
the District for the construction and ongoing maintenance and use of a
synthetic track installed at Rosemead High School, and authorize
expenditures of redevelopment funds in an amount not to exceed
$800,000 to cover the City's portion of construction, project
management and fee costs, and a 10%a contingency.
Assistant City Manager Matt Hawkesworth reviewed the staff report
Mayor Margaret Clark opened the Public Hearing at 7:11 p.m.
Larry Cecil - Principal of Rosemead High School thanked the City and stated he had been an
employee for the district for 23 years and had always been overwhelmed from the support the City
gives to the youth of the City of Rosemead. Mr. Cecil added that the track will be one of the gems
of the City and it was one of the projects that the City will be helping the district undertake. He
stated they are looking forward to do youth activities on this track and starting a kids running
program on campus. Mr. Cecil asked Elizabeth Lyons, Britney Munoz, and Christopher Lee come
up to the podium and introduce themselves and thank the City Council.
Elizabeth Lyons - stated that the students cared and got involved more than a year ago and
asked the City Council and the El Monte High School District to help fund an all weather track in
Rosemead High School and added that now the five members of the Council can get involved by
voting and helping get this track built. Ms. Lyons added that this will help the 2000 students in the
school, the thousand students in the future, and the Rosemead community for many years; she
thanked Council for their consideration.
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Chuck Lyons - stated that he could not thank the City enough for their support on this project and
added that this was a real good community builder. Mr. Lyons stated that he had recently
observed the Rosemead Park trail getting too crowded and felt that this will help alleviate those
crowds. Mr. Lyons stated that at the Junior Olympics Southern California he had spoken to a
Western Regional representative who advised him that he would be interested in bringing the
Junior Olympics to Rosemead because of its central location.
Mayor Margaret Clark closed the Public Hearing at 7:24 p.m.
Mayor Pro Tem Gary Taylor stated he was going to have to vote no on this item because of the
two rubberize tracks; the city just did the track and it was close to $700 thousand, which included
lights on the Rosemead Park track. He stated that this project will cost $1.2 million and that would
make a total of almost $2 million for rubberized running track. Mr. Taylor added that Mr. Lyons had
made a very good point in bringing up all the recognition that the high school gets for their sports
activities that are currently conducted on the dirt track. He also referenced the determinations that
the Commission and Council had to make regarding funding the project to eliminate blight
conditions; he asked what the track had to do with blight. He stated that not only did he not
support the funding of it but also thought that the City was in violation of State law.
Council Member Polly Low asked if the type of material that would be used on the new track was
the same type of material on the Rosemead Park trail.
Assistant City Manager Hawkesworth responded it was similar but not identical
Mrs. Low asked how far apart the two tracks were from each other.
Mr. Hawkesworth responded a few hundred feet.
Mrs. Low asked if the City could utilize general funds to help fund this track.
City Manager Jeff Allred stated the City could use general funds but however the City was not.
Mrs. Low stated that she wanted to go back to the issue of redevelopment money; she thought that
it was great for the kids to be so involved in sports, however, wanted to remind everyone that the
purpose of redevelopment money was for the City to invest in certain areas and increase value of
that area and then the City gets money back to go to the redevelopment agency. She stated that
she agreed with Mr. Taylor and that using the criteria it did not fit to use redevelopment money.
She referred to page 1 of 3 of the report and spoke about blight and the need to use these funds
on other areas of the City that did have blight; she added that this was not the best use of the
money. She stated that she would like to help the school by using funds from another pot of
money, if available, but not redevelopment money.
Mayor Pro Tem Gary Taylor stated he believed Mr. Lyons had spoken about a year ago about
there being promotional money through grants that they were going to try and apply for that track.
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Mr. Lyons responded that there was a $100 thousand tire grant that he believes the City used for
the Rosemead Park trail.
Mr. Hawkesworth responded that the City had received a grant that was related to using recycled
material for street resurfacing but had not received a grant that could be used for the track.
Council Member Polly Low asked what the agreement of operating hours was.
Mr. Hawkesworth stated it would be opened to the public like the park, which technically closes at
10:00 p.m., except when the school has it closed for specific use such as a football games.
Council Member Steven Ly stated that earlier when discussing the Strategic Plan one of the
items was that the City would like to have partnerships with the local schools that support high
quality education and no one challenged that statement when it was being discussed then. He
thought that this was one of the uses of that; the City partnering with one of the local schools and
the reason why the cost seems high is because this is a long term benefit for the area. He stated it
would not eliminate blight directly but what this track offered was for the ability to hold other events
such as the Relay for Life event. Mr. Ly stated all these events generate traffic and when it
generates traffic then it generates the economy around that area including parts of Rosemead
Boulevard; although that area may not be specifically blighted but they are lacking economic
potential. Mr. Ly also added that in regards to using redevelopment funds; the previous Council
had voted to use redevelopment funds to build the Rosemead Park trail. Mr. Ly stated the previous
Council voted for the Rosemead Park trail.
Council Member Sandra Armenta stated she agreed with Mr. Ly and that in talking about
investment; what better investment than to invest in the City's youth. The possibility of one of the
children getting injured and not being able to apply for a scholarship to go to college is not worth it.
This is an opportunity to give back to the community and if this is an opportunity to eliminate
injuries then she totally agrees with Mr. Ly.
Mayor Pro Tem Gary Taylor stated the Council had just heard a glowing report from Mr. Lyons or
how great their programs are working; he added that he could not justify the need to put a
rubberized track down and it is a waste of tax payer's money. Council Member Taylor did not vote
for funding the trail.
Council MemberlCommiss loner Steven Ly made a motion, seconded by Council
Member/Commissioner Sandra Armenta, to approve staff's recommendations. Vote resulted
in:
Yes: Armenta, Clark, Ly
No: Low, Taylor
Abstain: None
Absent: None
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Council Member Polly Low stated she supported the trail but felt that the City should not use
redevelopment money for the school's running trail.
Mayor Margaret Clark stated she would like to point out that Mrs. Low voted to use
redevelopment money for the Rosemead Park jogging trail.
Council Member Polly Low stated she would also like to emphasize that it also has to do with the
trails being so close together.
B. Appeal of Planned Development Review 09.01, Approval - UFC Gym
On October 19, 2009, the Rosemead Planning Commission approved Planned
Development Review 09-01 (PDR 09-01) authorizing the conversion of a 39,703
square foot commercial building at 8920 Glendon Way into a UFC Gym. On
October 28, 2009, a member of the City Council requested that the Planning
Commission's decision be appealed to the City Council for further discussion and
consideration.
Recommendation: That the City Council determine whether or not the Planning
Commission's approval of this project should be overturned.
Mayor Clark: Now we have Item B. We have request to speak
City Manager Allred: Madam Mayor and Council this is a public hearing an appeal from the
Planning Commission approval of the UFC Gym. We have a brief report by Brian Saeki the
Redevelopment Director and he will introduce the property owner as well as the proposed user.
Community Development Director Saeki: Thank you Mr. Allred. Good evening Madam Mayor and
members of the City Council. The City received an application for a UFC Gym July 2009 located at
8920 Glendon Way. The project was presented to the Planning Commission on October 19. At
the meeting the Planning Commission approved the project. On October 28 Mayor Pro Tern Taylor
appealed the decision to the City Council for their consideration. Tonight staff is requesting further
direction from the City Council with regard to the proposed use. Adam Sedlack from the UFC
Corporation and Vanessa Delgado from Primestor Development team, the developer are present
tonight and will be presenting to the City Council an overview of the proposed use.
Ms. Delgado: Good evening Mayor and City Council. Thank you for taking the time to listen to our
presentation about this use on 8920 Glendon Way. Primestor Development is the owner of the
site. It was the former Toys-R-Us and Levitz and now what we hope to be the UFC Gym. Briefly I
just wanted to remind the Mayor and the City Council that tonight we are trying to decide if the
Planning Commission did its job and looking at the land use and considering conditions that would
make their use something that can better the community. It was a long hearing and they took quite
a bit of consideration as to the use and ask great questions and came up with a tough set of
conditions that the tenant can live with and also its going to provide an asset to the community.
we've done a lot of work with staff, with local Sheriff and police and we really look for your support
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and keeping the Planning Commission decision as is. And Primestor looks forward to growing with
the City of Rosemead and continue to create new opportunities in the community And now I'm
going to let Adam go ahead and describe the use.
Mr. Sedlack: Thank you. Good evening. First I just want to address the Council and let all of you
know how much respect I have for you. I met with you guys as individuals and some as a team. I
want you to know that this is a crazy world and you guys were very calm in that world so I certainly
appreciate it and I also want to acknowledge the staff. And whenever I had questions and
uncertainties called the staff and the City Manager and his team has provided me with clear
communications and answers. I certainly appreciate that. That being said is that we're left a little
mystified. I talked it over with my attorneys and UFC attorneys and we're a little unclear that we
either we didn't present clearly enough to have their approved based on the facts or potentially
there is opinion clouding the facts. And I want to take this time and one more time go through
platform and allow myself to answer any questions so we can make sure that ideally this is
resolved through fact base decision verses opinion. In a parallel process I have another City that
is, as soon as I open the door they're going to write me a check for one hundred and eighty
thousand dollars to start. We're going to be working with the schools and different organizations
and so this has kind of been a different set of rules for us and we're trying to figure those out as we
go through this process. We want to be very respectful through that process. And so....
Mayor Clark: Can I ask you a question?
Mr. Sedlack: Sure.
Mayor Clark: What did you just say about a hundred and eighty thousand?
Mr. Sedlack: There's another City that we're currently in lease negotiations with that is offering us a
hundred and eighty thousand dollars the day we open our doors.
Mayor Clark: For?
Mr. Sedlack: No, there're offering us a hundred and eighty thousand dollars for pro active business
implementation within their City boundaries and so... it's in an outer L.A. Market. I've got a letter of
confidentially signed so I can't talk about it anymore.
Mayor Clark: (inaudible) I understand.
Mr. Sedlack: So I want to take some time and first of all talk about myself so you know where I
come from. I don't come from the UFC world. That's not me. I come from the fitness industry
world. That's what I've done my whole life. I was a college athlete. I played basketball very
mainstream in sports. After I got out of college I went to work with 24 Hour Fitness. A leading
fitness organization around the world with 430 locations. Helped grow that organization from 100
to 430 plus. And I left a few years ago to pursue other opportunities ...working with NEFC. NEFC
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is New Evolution Fitness Company and they specialize in fitness that's what they do and that is
what we are. So UFC Gym in Rosemead California is (inaudible). We started the project almost a
year ago. I remember driving into the parking lot and sitting in the parking lot and going man there
is a great location. It's a great opportunity. I drove thru the City. I spent time at the car wash. I
spent time at Starbucks and I talked to a lot of people. And we have some good people that live
here. Based on that I made the next step which was to contract a broker and start negotiations.
We have a very good relation with the landlord. We cut through a lot of red tape to get where we
are today. There is a lot of residents that I've sat with and had coffee with that its very popular
with, including police officers, fire department employees and so forth. I feel as though after I
explained a lot of what we stand for there's a lot of support out there with the that live in
Rosemead. The Planning Commission provided a 4-0 approval after we went through the fact
based protocols of what UFC is going to be about with one abstaining. So we felt very very good
about that past meeting. We're just requesting that as we go through this one more time I think this
will be the last time, is that we just look at the facts of what we are verses what the three letters of
UFC mean in the fighting world. UFC does not make use a fighting gym. We are not. We are I
want to make sure we call it out and I call it out multiple times we are not a fighting organization.
We are an innovation fitness and training that creates concepts with results more efficient and
make us very very unique in the space that we are in. I think we are good for the City I really truly
truly believe that we are going to be good for your economy. We're going to import unique
customers into your economy and I think you're going to see that we're going to provide a lot of
support for schools, police officers, fire department and so forth. First and foremost I want to talk
about what we already have in Rosemead. We have fitness gyms in Rosemead and I will say that
it's a little underserved based on national average. Right now you have a certain percentage of
population that is involved in fitness and involved in health club. And that's projected to raise at a
very very steep incline over the next 10 years to fifteen years because of the unfortunate
expedience of obesity. So fitness club models are simple. The 24 Hour Fitness, model, Bally's
Fitness model it's all simple. Just enroll as many people as you can at a low expensive product
and you hope they continue to pay the monthly dues forever. Typically its around 29 dollars a
month. They will typically have equipment and will have personal training. Most major cities have
a club every twelve blocks to twenty four blocks. It could be a Curves, a 24 Hour, a Bally's and so
forth. There is a huge huge growth inside of their space. Most all fitness clubs now all main fitness
clubs are now currently offering mixed martial art classes. Generic classes but they are mixed
martial arts classes because it is being seen now as the best way to get fitness conditions. There's
also mixed martial arts studios in Rosemead as we sit today. And I want to highlight one which is
one on one kick boxing which is a fighting gym. It's much more aggressive then we are. I shop the
gym myself personally, I went and I ask if I could spar and if I could have direct contact and they
said yes, there's the ring. And they invited me to join the facility and I ask more questions and they
are planning to expand. They told me another three thousand square feet next door. I don't know
if that has been approved or not. But I was kind of thrown back because when I hear that this
organization is having much more severe type of training than what we are going to offer. They are
having direct impact. They are having sparring. We're not doing any of that. I was a little bit
shocked that was available inside the City limits and we have to go through an appeal process for
something that is more aggressive in other stores within Rosemead City limits. There's also a Tae
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Kwon Do, Karate, there's multiple mixed martial arts facilities and a lot of these I want to call these
out they are safe and they're for kids. And they do a good job in the community and teach
discipline. They teach kids to stay in the middle of the road and that's very very important
especially as we first talked about the last topic of activity and fitness for kids. There are very good
outlets for kids because at Bally's you can't go join Bally's and exercise. You have to be I think 13
or 14 years of age. And so if you are not involved in school activities or school sports or PE which
is being reduced in today's society. You are not getting much expertise in their Tae Kwon Do and
these Karate studios which are no impact. It's not about sparring there its truly about discipline and
programming. They provide great opportunities for students to be conditioned and also provide
discipline so their current market facts are there are fitness clubs in Rosemead. There are
hardcore MMA clubs currently in your City, which is the cardio kick boxing. There's kids in the
many clubs currently in Rosemead, which do a very good job. I have shopped both of them. UFC
Gym is about fitness conditioning and safe mixed martial arts, UFC Gym is complied with the
Rosemead Planning Commission expectation and the planning approval provided was then
appealed. And so that that's what left me with we have a different standard for what we are doing
because of the initials UFC. So I want to talk a little bit about the New Evolution Fitness Company
who we are, who I am. And again I want to isolate the separation between who UFC is and who
NEFC is. New Evolution Fitness Company was founded by Mark Mastrov who also founded 24
Hour Fitness. He founded that in 1983 and sold it for 1.68 billion dollars. He was the primary
owner and stockholder so obviously he is very well capitalized. But Mark is considered the best in
the space. There is nobody better in their world in our space than Mark, Mark Mastrov. He has not
only founded 24 Hour Fitness, he's on multiples boards. He's also founding additional concepts out
there and invested in additional concepts such as yoga works, crunch, energy fitness, California
fitness, Steve Nash Sports Clubs and what you will find is everyone of these facilities is they are
innovative, they are different, they are unique and its all designed to increase the population
segment of penetration in fitness activity. So we can cure the long term epidemic of obesity. So
New Evolution Fitness is a private equity firm and they currently operate in 15 countries and I just
want to call out that this is what we are experts in the fitness industry space. The team, the senior
team in New Evolution Fitness centers is Jim Rowley, he is my boss. He's the CEO, Chief
Executive Officer. He actually is the one that created personal training for 24 Hour Fitness. He
created the whole platform the whole concepts and turned it into a multi-million dollar business. A
former U.S. Marine very passionate about the military and retired military. Vine] Kilis is a senior
vice president of marketing. She has been in the industry for 30 years, understands (inaudible)
populations, understand how to best market it. Tony Wells was the executive Vice President for 24
Hour Fitness on Council. Has 12 years of industry experience and of course Mike Feeny who
builds our club. He will be building the UFC Gym in Rosemead if approved. So here is some of
the concepts that they have already built. You can see in New York, Vancouver, Thailand,
Valencia, Hong Kong. All of these have major media impressions; all of these are very innovative
conceptually and all of these create what I call the traction power and energy for cities. A little bit
about UFC because I think part of our debate has turned into discussing UFC in talking about it.
So I want to confront it head on, I think it's the right thing to do. We have 2 people who kind of
represent UF. One is the owner of UFC. It is also called Zuffa by the way, Zuffa is the parent
company for UFC and that is Lorenzo Fertitta. Lorenzo is married with 3 children. He is a dynamic
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business leader. He got a'bachelor's from the University of San Diego and a MBA from Stern
School of Business and he's the chairman and vice chairman of the Station Casinos. I think he is
number 879 on the richest people in the world. He has got multiple experiences with multiple
boards and he is currently on the boards. Dana White is a very polarizing figure. He creates a lot
of energy; he is a promoter. He does an incredible job promoting. Not all the time do people agree
with him. He says what's on his mind; he doesn't really filter things. He comes out and says hey
this is who I am; this is what I believe in. And when he's wrong he comes out and admits that he's
wrong. But I want to call out a couple things. He does what he does because it is his job. He's a
promoter of an organization that has gone from a losing business to almost worth 2 billion dollars
and a lot of that is because of the work that he has done. He's crated mixed martial arts as
mainstream and provided safety precautions within the sport. He also, I want to, everything that
we can talk negative about Dana and some of the things that have been called out worldwide.
There's also a lot of things that he does great. He's known for his charity work the caring, plays the
GI Foundation, Fallen Heroes Fund. He is instrumental in all those areas. Including being, given
the (inaudible) Patriot Award last year. Which is a huge honor. So that for every negative You
Tube video that we've seen I can show you 10 You Tube videos where he affected people's lives,
changed people's lives and so I thought he was going to be here tonight and it would have been
great to have him so he could speak to that. But he's traveling. So there two guys do an incredible
job for UFC. And I want to make sure I call them out and make sure that I talk about anything that
people have questions about those two people. Are they going to be running UFC Gym? No, they
are not. Are they going to have some creative filtering? For sure. They're going to say I like that
shirt or I don't like that shirt or I think the juice bar or the gym store is little, I think you can put some
move creativity inside of it. They are not going to come in and have fights at our gym. Their
objective and goal is to bring UFC completely mainstream. And so part of doing that is servicing
obesity. Part of doing that is creating need for the average customer within our market place. Or a
little bit more about UFC. I talked about the family, I talked about the president. In the early
nineties UFC was not an organization that I watched. I was a mainstream athlete; it freaked me
out. And as I progressed and went through college and played basketball and progressed on from
sports and I received a call from Mark about UFC Gym. I didn't understand; it didn't connect right
away. And then I learned and I took time and studied it and understood it. And what it is about
and then I figured out and understood what our gyms are about. And I really have a good
realization now what UFC Gym stands for and what UFC has done so well in the last 10 years.
They've taken a sport that had no rules that John McCain came out and said was barbaric. That
John McCain looked down on. And I think there are a lot of people in this room would agree with
John McCain at that point.
When Dana and Lorenzo came in to the picture they cleaned up the sport. They worked with all
governing bodies around the country and around the world. And they provided rules. Now it's a
very credible sport. It's a very respected sport; it has structure, it's safe and it's actually if you want
to compare parallels. When you compare the NFL to UFC we're safer. When you compare the
UFC to the NBA we're safer. With regard to injuries. I want to make sure that's called out too. So
they are 50% capital owners. 50% of the capital is coming from them to help build our clubs. They
are helping us with some creativity. We are running the fitness clubs. We are enrolling members,
we are servicing members, we are the ones that created the conditions or helped support the
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conditions of the Planning Commission. Because that is the way we want to run our club for
people. For people of Rosemead. So they have done a great job changing the sport where John
McCain now came out and said wow it's a different sport. And he doesn't have the same issues
that he had years ago from 2001 forward you will see that the UFC's popularity demand has gone
thru the roof and as a result they've gone from a one billion dollar organization they're closing in on
a 2 billion dollars. And the sport is the fastest growing sport in the world second only behind NFL
and will continue to increase in popularity so what we know is this. The best athlete in the world is
a conditioned UFC athlete. The best way for me to market to people to get them in best shape is
to do what we call functional fitness, which that's the way that UFC athlete is trained. It's not about
fighting. It's not about saying I want to get you in better shape and then throw you in a ring and
fight with somebody else. It's about learning discipline; learning technical skill set. Doing
movements with your body that's never been done before. So you can maximize your results in
the least amount of time. That's what this is about. UFC just to speak to the popularity is now in
500 million households worldwide and that's projected to continue to increase. So we announced
a joint venture partnership on January 27th. Very exciting day creating a lot of impressions out
there and we're even excited to open our first pre-sale shortly after that in Northern California.
Again if you noticed the middle paragraph, Dana White's quote on CNBC was the gyms are not
intended for professional or amateur fighters. If people are interested in fighting I'm going to send
them to the kick boxing gym down the street from here. I am not going to service them. That's not
what we are about. So joint venture facts are these. Zuffa is the parent company of UFC, NEFC
leaders are considered to be experts in the fitness industry space. 50% joint venture-partnerships
between the both of us. Zuffa does not want a fight gym. That is why NEFC is the (inaudible)
operating partner. UFC is not. NEFC is managing day to day operation. UFC brand name
represents discipline, technical skills and conditioning. UFC provides greater suggestion marketing
power, they have huge incredible marketing power. As a matter of fact I think when you take a
look at buys, papers you buy in the area, you would be very surprised the penetration it has in the
City of Rosemead. Mr. White and Mr. Fertitta combine years of business experience promoting
talent. Mr. Fertitta is on the board of directors to help us out with business perspectives. So UFC
Gym is not a fighter club. I want to talk a little bit about fitness now. Because I think we're all
passionate about conditioning and looking at today's environment. So the fitness industry as we
know it today hasn't changed. It's the same as it was 20 years ago. Its push and pull; it's a lot of
generic movements. Obesity we know is increasing drastically worldwide. And that's a result of
modern day conviniences that is a result of reduced PE allocations in schools. That's as a result of
society and fast foods, the economy, the stresses, the pressures, both parents working. There's a
lot of reasons why we are becoming obese. And it's not healthy. It's going to raise insurance costs
and it's going to continue to be a downward spiral. 15 to 18% of the population belongs to a fitness
club. It's on the rise every single year. And I would say that in the next five or ten years we're
going to have a segment involved in the fitness space. Mixed martial arts conditioning is the
fastest growing concept in the fitness space: 24 Hour Fitness, Bally's, YMCA, Community, in my
community center offers 5 different mixed martial arts classes in Corona. It's a humongous
growing fast sport. Martial Arts studios and fitness clubs exist in every major metropolitan area
including Rosemead. Taking what fitness centers are currently doing and adding innovation is
what UFC Gym is going to be about. So what are the MMA studios doing? We're going to make it
safer than the average MMA studios, first of all. Secondarily we're going to take what fitness clubs
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do great and do it a little bit better. Creating motivation variety, fun and desire to assist people in
achieving their fitness goals. It's all about the goal... if you don't get goals you stop working out you
stop training. It's all about the relationship; it's all about the experience. Developing the
experience that is unique in the space. If you go to any other fitness club out there it feels the
same. You're going to be electrified when you walk into the UFC Gym. Heavy focus on kids and
female programming. We know it's a segment coming from our old world. We knew that moms
and kids would disconnect in being able to get both into the facility acting together. Typically when
moms come in what do they do? They drop their kids off at a kids club. The kids sat and watched
the video in a dirty kids club. It was called babysitting. While the mom went and did instruction.
Now what's going to happen; mom's going to drop their kids off at UFC Gym and it's all about
innovation. Machinery called I'tech fitness which is a unit and there's also kids mixed martial arts
progressionary services which is about safety, discipline and fitness. Creating life style solutions
trough cardio. Vascular resistance training and nutrition technology, fitness and marital art
education and leaming discipline while customers improve their conditioning will increase interest
and participation in health and fitness. So I would say this, is that, I believe I can impact an
increase of 10% of the population in Rosemead in interest in fitness. Not necessarily joining our
club, just interest. Just like that's cool, wow that's neat. And we're going to start talking about it as
a life style; have a discussion. We're going to have a website service that will allow people to be
part of our organization for as little as 9 bucks a month. That to discuss food and exercise and
fitness. That's life style, that's changing it for the man.
Creating value for Rosemead by taking care of people. Great fitness conditioning while driving
family value. Everything that we've discussed from day one has been about this. Family values
and the discussion around that. So fitness capabilities, these are just all the services that we are
going to have. I'm not going to go through each one, I'm just going to say this, it's going to be
unique to any other fitness club that you guys have been part of.. So as you walk into Bally's or
you walk into other clubs we're going to have a unique spin on everything we do. Why do we have
that unique spin? So we keep people interested in the space. So they don't use the club, sign a
three year contract at Bally's use the club for 60 days and stop going to pay for the next 3 years.
It's not good. We're going to be month to month and we are going to motivate and inspire people
to stay with this through results and values. So just quickly here, the ultimate fitness experience.
That is what we are; this is who we are. It is not fighting. It is about the gym about being a unique
look; a fresh concept. Very digital. It's about personal training. Understand that we get results you
stick with the gym. Your experience is great. You stick with the gym. It's about benefits. We have
memberships from people that maybe can't afford a hundred dollars a month. We have
memberships for as low as 40 dollars a month. We have memberships of 100 dollars a month.
We're a group type training facility so it's about the experience. We want to make sure we can
service everybody that wants to be part of our organization. Program will be the most unique
programming that the industry has ever seen. Its combining all the elements of some of the mixed
martial art programming with the traditional group fitness programming with group boot camp
training. For those of you who have been involved in a group boot camp training you know the
experience that you can achieve. The results you can achieve. And kids, it about kids and it's
about parents and it's about combining the segments. Say that we're going to service the male,
we're going to service mom, we're going to service the kids and make it a family atmosphere that
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Page 16 of 54
creates motivation. So one of the ways we're going to do it is through fitness technology. This
again is redefining the whole space as we know it. Already in Concord, which by the way we are
opening on Saturday, we've seen this portion of our business dramatically increased because it
digitally shows your results. It digitally inspires you to continue on. And for those (inaudible)
digital market in today's world. Its booming and it's not going away. This is going to be all very
digital society in the next 5 to 10 years. I'm actually wearing a device right now. If you wear a
watch and I can see how many calories I am burning talking to you right now. I can tell you, I can
tell you last night I didn't sleep very well. I looked at my watch and I knew why. Because I turned
over like 8 or 9 times because I was nervous about this meeting. This device is so motivational
because it will allow you to see exactly how your lifestyle is. Am I getting a calorie surplus or a
calorie deficit. And while I am exercising for the 30 minutes a day that I'm exercising am I loafing
or relaxing...... Or am I truly training like I am expected to train. I am going to be able to tell you to
the calorie. I'm going to be able to tell you to the expenditure level of how you're doing from a
fitness perspective. There's no hiding. So accountability motivation is going to make sure that
every customer gets results which is going to motivate him to stay with the gym and not cancel
after 30 days. Biodensity, this is an incredible concept because it caters to seniors. So, yes, we
have a market for seniors. It caters to everybody. It improves strength; improves bone mass,
improves joint support, and improves overall quality of life. If you have the chance to get the
website it's a three machine system and what you do is you go in and you push yourself to muscle
failure. Which is called self weight resistance. And you are expected to sustain and contain that
muscle failure list for five seconds. In what its studies have shown its increasing from density so
osteoporosis and those types of things its actually showing reversal of such. And so we are going
to have five minutes five minutes a week we are going to have seniors come to our facility, get on
this machine. In 5 minutes they are going to be stronger, feel better, and they are going to be able
to build their bone density. What a great service that is. It's a family gym. Go to the next slide.
Website, so the website is online it's active. We're actually going to do a new launch on Saturday.
We're going to be able to do online scheduling and see some other locations that we are in the
process of signing. Also watch some unique in gym video that we are going to be having. But the
website has had millions of impressions worldwide. We are continuing to gather those impressions
as a result of the UFC brand concepts. Just a few of the slides that kind of have a look at what the
Rosemead club would look like. That's our arbor area where people would have their preload
nutritional food before they workout. and of course their post (inaudible) food. So one of the
examples of the innovative concepts that we are doing is when you wake up in the morning and
you pull out your
Blackberry I'm going to have your menu plan or your Blackberry what you should be eating. I'm
going to have your workout on your Blackberry what you should be (inaudible). We all love
Blackberries. I'm going to have, when you get into the facility your food is going to be ready at the
arbor, ready to go. It's going to say. Here you go get your preload workout. The workout is going
to be ready for you when you come in the gym. When you leave the gym your post load food will
be ready for you. So it is convenience and technology. Lobby area, area opened feeling. Gym
store good old tax revenue always a good thing. We anticipate we are going to do quite a bit in
gym store sales. Lockers will have dry saunas and televisions in them. And the training area is all
going to be very unique equipment and have some of the mainstream equipment that we see in our
typical facilities, kid's gym. You notice on the left side that's called I'tech fitness, very innovative.
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Very unique very versatile all about moving. On the right side for a little bit younger. We're going to
have some different facilities and services for them. There's Concord gym. The below picture you
can see our pre sales. And the above picture is the actual gym. We put 4 million dollars into this
thing. It's been an incredible return. It's been incredible in the City of Concord which is a very
good city. They, it's been very well received. We're having some great success out there. So the
UFC Gym impact, final couple of slides here. Is that innovative training you will not see any other
training like we are offering anywhere else in the world. Family experience. You are going to see
things that we are going to do that will blow you away from a promotional perspective. Working
with the police officers, working with the fire departments, working with the school districts. We are
going to provide services that haven't been seen before as a partner in the community. Diet and
nutrition is big. 80% of the world eats wrong. And one of our drives is to help that out. Juice bar,
gym store, juice bar, social experience. 35,000 square feet plus. Real results having form and
leveraging the UFC brand. So what does that mean? It means we are investing over 4 million
dollars. It means we're hiring locals. It means we have large community involvement. Big media
impressions. We're importing unique customers into the City of Rosemead. I know it's not a Best
Buy. I know it's not going to contribute multi millions of tax dollars. But it's going to contribute
services and it is going to contribute benefits to your community. Destination is (inaudible) digital
marketing hottest concept in the industry, kids are living it. And it is very unique training for the
entire family. So last slide here is (inaudible). Is Dana White managing the gym? No. He has
nothing to do with day to day operations. That's my job. I am the senior vice-president of the UFC
Gym. Everything that we do goes thru me and my CEO. I have to sign off on everything they have
creative rights. Is UFC Gym a fight club? Absolutely not. Nothing to do with fighting we're not
going to host any events. You can see if in our conditions that we agreed to. No events
whatsoever, no blood. None of those things. We're taking the best of mixed martial arts provides
and we're creating a unique experience. Is UFC Gym a facility for future fighters? No. We will land
send them down the street, they can fight there. Next one. Are there any safety concerns with
UFC Gym? None. We met with the Chief of Police; we went through a long safety discussion and
we want to be very proactive on this because we wanted to understand what the challenges were
currently at Bally's and pre-empt those. And make sure that we provided an environment that's
safe for everybody. It's a private club we have a lot of technology from video cameras to security
guards. But we're going to add, we're going to work directly with the police department to make
sure they are happy with it. Does UFC Gym have support with the City and residents? I think so. I
think we had 4-0 Planning Commission vote and the people that I have spoken to in the surveys
that I have says there is a lot of interest. There's always people that are not interested and I
understand that. Everybody has a right to their opinion. There's a lot of interest for our products
and will the UFC Gym help Rosemead's economy? There is no doubt about it. Local new jobs,
energy, attraction. Let me tell you this, when we started the Concord gym we now have three
trams to the hotels. Including Crown (inaudible), Crown Plaza and the Hilton. Which are two
executive hotels. Because they love our concept. And so we are going to attract hotels we're
going to attract other people inside that area because of our theme and unique brand. UFC Gym
store will provide taxable dollars for us. Our obstacles like fitness motivation modern day
conveniences and the economy, credit health issue and obesity problems. No doubt about it.
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Right now American's young is obese and it's my job to change that and turn that. So I'm not
going to go through all this because all of you have it. It's the safety and security programming that
we're providing. It list everything we're doing from mechanical (inaudible) information technology.
We're also listing all of our programming and classes. I do want to make one call out that I
eliminated the COE class which is for police officers only. Based on further discussions with the
Chief of Police. So we thought that was the right thing to do. So, I appreciate the time and I know
some of you have heard this several items. I would love to answer any questions you guys might
have.
Council Member Low: approximately how much is the cost for membership?
Mr. Sedlack: there is going to be multiple different levels of memberships. There are two, and we
are also going to have special unique rates; for example, if you are a police officer that works in the
City of Rosemead or a fireman that works in Rosemead you are going to have no enrollment fee on
all of our membership programs. If you are a students, from what I heard today, let's create a new
policy; no enrollment fee for any student because I want them in our gym exercising and having
fitness. Dues are going to be as low as $29 a month and as high as $99 dollars a month for those
who do group training.
Mayor Pro Tem Taylor would you clarify who Dana White is?
Mr. Sedlack: Dana White is the president of the UFC; he is a ten percent owner of the UFC who is
controlled by Zuffa. His supervisor, if you will is Lorenzo Fertitta, who is the CEO of UFC. Dana's
main responsibility is setting up UFC fights; promoting UFC fights; and UFC sanction fights; and
also reaching out to local governments and educating everybody on the new brand of the UFC.
Mayor Pro Tern Taylor you mentioned that you had a conversation with the mayor and I, and you
had stated that you have to go back to your board of directors. There were two names that you
gave us, and they were who?
Mr. Sedlack: Lorenzo Fertitta and Mark Mastrov. Mark Mastrov is the NEFC founder and has
controlling rights and operations; and Lorenzo Fertitta is the chairman of Zuffa who controls Station
Casinos and controls UFC and is a fifty percent capital partner.
Mayor Pro Tem Taylor I have to admit to the fact that I never watched the UFC fight channel
browsing, and I say I am not going to watch someone get beat up there; so I just kept going. But
after you had your Planning Commission meeting, a program came out three or four days later; it
was on a Nightline program and its was titled From Brutality To Gold; And I mentioned to you that
my main objection was people beating up people. I never watched any of these fights, so I went to
Spike as you said on the minutes here, I went to Spike TV channel and I watched about 12 to 15
different fights; and to me the UFC logo which you have to carry on your promotions, UFC,
somehow or another I cannot put the connection together, who is really controlling what; and you
have in your gym the octagon, the fighting cage.
Mr. Sedlack: it's the octagon, not a fighting cage.
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Minutes of November 17, 2009
Page 19 of 54
Mayor Pro Tem Taylor the octagon, well we've seen it; it's on every Spike fight they have. They
are in an octagon usually during their fighting. And you mention that there is not going to be any
sparring down here.
Mr. Sedlack: If we look at the conditions
Mayor Pro Tem Taylor Number 34 and 35
Mr. Sedlack: there is different mixed martial art that people are going to be able to take. I am going
to give you an example; first of all there is jujitsu; which you have to touch somebody's arm to show
them technical movements and those types of things; so there's going to be what you would call
controlled impact. But there is not uncontrolled sparring, or fighting allowed what so ever inside
these gyms. But you have to, in women self defense. The instructor has to be able to have what is
called a toy gun and the instructor is going have to show the female how to handle that situation,
there will be a little bit of physical contact there. But there's nothing to do with fighting, physical
direct contact.
Mayor Pro Tem Taylor. up in Concord you have a Saturday night program, something to do from
7pm to 9pm where members can come in and watch 7 or 8 bouts.
Mr. Sedlack: that is incorrect, it's off site and it's at a local bar which is about 20 minutes.
Mayor Pro Tem Taylor. it didn't say that in the minutes.
Mr. Sedlack: it's in Walnut Creek, which is down from Concord.
Mayor Pro Tem Taylor what was in the minutes?
Mr. Sedlack: I don't know about anything, about every Saturday night, so I apologize I don't have
the minutes in front of me.
Mayor Pro Tem Taylor it's in our proposal and your comment was, "we're not sure were going to
do that".
Mr. Sedlack: are you talking about the UFC events?
Mayor Pro Tem Taylor no, I am talking about your screenings on Saturday nights of show 7 or 8
bouts.
Mr. Sedlack: I think you're discussing UFC events, which is not every Saturday. It's a monthly
promotion of what UFC does. And it's typically after the hours of 7pm or 8pm. For example, in
Concord, we're going to hold those off site, because we don't' have the space to do it.
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Mayor Pro Tem Taylor but you were considering having them here in Rosemead?
Mr. Sedlack: we were considering having it on TV, just like it's on Spike channel.
Mayor Pro Tem Taylor. you will have your members come in to be watching the program.
Mr. Sedlack: we would promote what's on our television that would be on their television at home.
Mayor Pro Tem Taylor you close the club down and you do have people coming in to watch the
events.
Mr. Sedlack: if we chose to go that way at Rosemead and we wanted to have that UFC event
televised inside our facility, it would be allowed just for ultimate members to come in to watch the
event on that particular night. We haven't decided if we are going to do that or not. We haven't
determined that.
Vanessa Delgado of Primestor Development Inc: just to clarify the condition as written, that we
need the city's approval if we are going to do that. So the Planning Commission covered that
concern. If there was such an event, we would have to come back with a special permit, before we
can hold such an event.
Council Member Ly: I just want to follow-up on a specific question, for staff, can that permit be
denied?
Community Development Director Saeki: yes
Mayor Pro Tem Taylor. let's go to condition number 34, "applicant shall not publicize, hold, host,
authorize, or allow to be held or hosted on the subject property any mixed martial art events or
demonstrations that include as any part of the event two or more individuals engaging in physical
competition or contest between or among them in which the individuals strike each other in any
way or otherwise come into physical contact by wrestling, grappling, or throwing one another". That
says that shall not happen.
Mr. Sedlack: that's correct. We're not going to have any contest, we're not going to
Mayor Pro Tem Taylor. now let's put the fly in the ointment, the loophole. Should the applicant
desire to hold, host, authorize or allow to be held any such event, applicant must apply for a
separate permit from the City for each such event to take place on the subject property, The city
reserves the right to approve, conditionally approve, or deny any such request for permit. I'm not
opposed of you having the gym, but I'd like that last sentence struck out of there. You say you are
not going to have any fighting contacts such there, take it out so it's guaranteed that you don't have
them.
Mr. Sedlack: what we know is this, is that one thing is constant, that is change. We don't plan ever
having any events there; we don't plan on ever doing that; but
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Minutes of November 17, 2009
Page 21 of 54
Mayor Pro Tem Taylor wait a minutes now that's a pretty determined statement, "we don't ever
plan on doing this", great, take out the sentence.
Mr. Sedlack: which is why we asked, if we ever wanted to do it.
Mayor Pro Tem Taylor but you're never going to do it.
Mr. Sedlack: we don't plan on ever doing it, which is why we asked that if we wanted to do it, we
would have to go through you to get that done.
Mayor Pro Tem Taylor well that's the loop hole that really irritates me, that fact that I did watch
these fights and they were brutal, brutal to a fighter is not brutal. But to the average person
watching that; I watched those fights and I watched fingers get jabbed in to the eyes where they
called the match. I watched them get their eyes cut, this I mentioned I'd seen many years ago, but
this was just in the last two to three weeks.
Mr. Sedlack: let me clarify, I can commit that, that will not happen in our gym that type of fighting
will not happen in our gym.
Mayor Pro Tem Taylor if there in the ring, let's go to condition 35 the next one "In connection with
the mixed martial arts training and other training provided on the subject property, applicant shall
not allow any two or more individuals to engage in training, 'sparring" or simulated or real physical
contact in which the individuals strike each other in any way or otherwise come into physical
contact by wrestling, grappling, or throwing one another" that's fine, now the next sentence " the
foregoing shall not be deemed to prohibit one employee of applicant to train or "spar" with one
patron in connection with the patrons' training by the employee on the subject property" and I kind
of watched some of the training that goes on in the octagon, and as I started to say I saw these
fighters, how should I say, eyes cuts, blood dropping down on them, blood dropping down onto the
mat, you could see it right on the TV. So when you say that there is not going to be any fighting,
strike out those two sentences on both paragraphs and I won't object to your gym going in there.
48 conditions you talk about all the excellent things you are going to have for the families, and the
mothers and the tots and the kids and free membership. Strike out the fighting and I am not going
to oppose it.
Mr. Sedlack: I will strike out the word fighting, the word fighting across the board. So I have no
problem.
Mayor Pro Tern Taylor strike out those two paragraphs on the condition 34 and 35 the last
sentence.
Mr. Sedlack: I will strikeout fighting across the board and everything we talked about. If we want to
through a discussion on what happens on the Tae kwon Do center, the karate center for kids, that's
going to invade what that says and we're not able to do that, we're not able to provide that. When
you are talking about mixed martial arts sparring and mixed training, there are different movements
that you do; none of what we do involves blood. If you look at the program that we provided
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 22 of 54
Mayor Pro Tem Taylor. I hate to disagree with you Adam, but the fact that I see on this, is a
training ground for ultimate fighting, you may not be fighting there but you are sure getting the
training for it.
Ms. Delgado: Mayor Pro Tem, the reason we came up with those two sentences on that condition,
it's simply to allow for what Adams describes, if there were women self defense that it covered the
fact that the instructor has to grab a hand. So if there is another way you suggest we could
Mayor Pro Tem Taylor what does women have to do with it, I hate to see the women in their
bloody their eyes bleeding and blood on the floor.
Ms. Delgado: no, women's self defense class. We are talking about women's self defense
Mayor Pro Tem Taylor that's what I am referring to.
Ms. Delgado: we're talking about women's self defense
Mr. Sedlack: I completely understand what you are saying and I hear you loud and clear. And what
I am trying to do is get across what I am trying to say in a way that you are comfortable with. In
mixed martial art training no matter what facility you go in around the world, I don't know if you
agree with any of the facilities.
Mayor Pro Tem Taylor. I've never been in them; I am just saying what I have seen in the last
month or so.
Mr. Sedlack: so if you go in to kid's facilities there you have a trainer that trains and instructs, you
have what you call light controlled sparring. And so as an example, if I am doing a mass drill, I
have two gloves, that go up here and the job is to as fast as you can, quick as you can, hit these
gloves and have impact and have controlled impact. We're going to have that; as an example when
you are doing jujitsu movements you're going through technical body movements and have impact,
and controlled impact it's always going to be there; as an example when you are doing group
discipline training, and you have an instructor that's certified and discipline and understands the
way we're training which is through safety and precaution, you're going to have a contact. That's
why we worded it the way we did in here. I want to clarify again is that there will be no events with
UFC fighters, fighting in the octagon and hitting each other. We will have no exhibits; we will not
bring people in to say, "hey listen we're hosting an ultimate fighting championship in our facility
we're requesting a permit". I'd be glad to say that we're not going to ever host a UFC fight in that
gym.
Mayor Pro Tem Taylor it's not big enough for that kind of promotion, all I am saying is that this is
the training facility to teach these fighters what they need to learn and where they go with it from
there is up to them.
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 23 of 54
Mr. Sedlack: with all due respect, there is two different ways to train. One way is to train as a
fighter and another way to train is through learning self defense and technical skills. And it took me
a long time to understand it; it really took me about a month to get my hand around it; I had to
actually go through it. When you want to train as a fighter, you will go to that facility that's down the
street in which they do direct impact, uncontrolled impact and it's about the way in which you are
taught the movements. We're not anything like that, it's completely different parallel what we are
offering in our facility.
Mayor Pro Tem Taylor. tell me again what you plan to be doing on Saturday nights when you
have the events show 7 or 8 bouts where members only could come in and see it.
Mr. Sedlack: the thought, it's a promotion event where ultimate members that are in group
discipline training would come in and just watch the event that is on TV.
Mayor Pro Tem Taylor. watch what events?
Mr. Sedlack: watch on television
Mayor Pro Tem Taylor. and what would those events be?
Mr. Sedlack: it would be the UFC events
Mayor Pro Tem Taylor. that's my whole point right there, you're condoning and encouraging this
is what you can be, take your training and this is possible for you. And even with the programs I
watch with the UFC on it, they talked about the training process that they go through with each
other, the teams, the coaches and such. You're gonna have coaches down here helping these
people learning the; call it the art of the fighting they do.
Mr. Sedlack: again with all due respect, I think we are being misrepresented here, I think that we
have to understand the two different training principles, training as a fighter and training as a
member. We have nothing to do with training as a fighter; it's a completely different path a
customer would take. It would take a long time to go through that with the details, I would be happy
to provide it for you.
Mayor Pro Tem Taylor. then strike out those two sentences and I am okay with it.
Mr. Sedlack: then we have to strike out everything that... inaudible...
Mayor Pro Tem Taylor no, you're talking about motherhood and kids and free membership for
teenagers at the schools, you are not going to lose all that.
Mr. Sedlack: I won't be able to do daily ultimate training, which is a non fighting exercise routine,
which is the most innovative training we stand for right now.
Mayor Pro Tem Taylor. there is no contact
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 24 of 54
Mr. Sedlack: there is absolutely contact
Mayor Pro Tem Taylor what does it say in here?
Mr. Sedlack: you hold gloves and you contact the gloves, you pull pads and you contact the pads.
Mayor Pro Tem Taylor. where does it say that in here in condition 34 and 35?
Ms. Delgado: that's why we created that language.
Mayor Pro Tem Taylor. explain it to me what that means
Mr. Sedlack: limited controlled contact is when you use agility, speed and discipline through certain
movements to get a great work out. So you have to be able to do those things. It's not about
teaching somebody to hit somebody in the nose.
Mayor Pro Tern Taylor when do they stop that?
Mr. Sedlack: it's a 24 week process that people training for three times a week for twenty four
weeks I believe is the protocol. Then they go the level two then level three; you see the belief is
that to be, to have discipline in your life, you have to be able to protect yourself, you have to be
able to have self-confidence and you have to be physically ft. This class takes all these into
consideration, which is detailed in the program that we sent you, and it takes that person through
that journey. Is it ultimate fighting; no, are we going have them fight; no we are not.
Mayor Pro Tem Taylor then why do you need the last two sentences on paragraphs 34 and 35
Mr. Sedlack: we want to have an open door that if there is an exhibit or something that it needs to
be hosted there, no different than at your high school, we can come to you guys and ask you if we
can do something there. We don't have any intentions or planning on doing it right now. We don't
have any intentions to do it in the near future, the local high schools have wrestling matches there,
it happens every year. What if a local high school wants to have something in our gym? And we
want to be involved with that high school. I need to be able to go to you and say I'm I allowed to
work with the high school inside our gym.
Mayor Pro Tem Taylor that is not going to be a bloody bout at a high school.
Mr. Sedlack: nor is there going to be a bloody bout here.
Mayor Pro Tem Taylor. you're telling it's not going to be, but whenever they can get into the ring
with physical contact between two people then they must have a supervisor while they're doing
that.
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Minutes of November 17, 2009
Page 25 of 54
Mr. Sedlack: so let me ask you about your perspective if I may. If I want to work with a school, if I
want to work with battered women or if I want do something, if one of your local taekwondo studios
wants to have testing and I want to work with them to support them and I want say okay; you know
what local school or association, we're not permitted to do that; what I need to do I need to talk to
the city that grants us the right to be here.
Mayor Pro Tem Taylor. you're not permitted to do what?
Mr. Sedlack: to have demonstrations
Mayor Pro Tem Taylor. of what?
Mr. Sedlack: of taekwondo or wrestling, of different events that would happen already in our
community, and so what I am asking you is, if I want to be able to go to you guys and ask your
opinion, can I have this or cannot have it, that's' all this says you can deny me at any time.
Mayor Pro Tem Taylor you know as well as I do if you ever went in to a school and the kids got
their eye bleeding or they got fingers poked in their eyes, you wouldn't be back at that school
again.
Mr. Sedlack: what school are you referring to?
Mayor Pro Tem Taylor any school you go into, you made a reference to going to a school and
asking if you could come in. that would be so closely guarded that you'll make sure that none of
those children get injured.
Mr. Sedlack: I am lost on your point
Mayor Pro Tem Taylor you said that if you wanted to go in and ask to go to a school and help
them with some type of...
Mr. Sedlack: if they came to us and they wanted help and they needed some real state for help and
we said okay we will help you; we will need to go to you guys to make sure it's okay; I don't see
any down side to that. If a high school needs help with wrestling, and they want an instructor come
in and guide the wrestling team, I don't see any down side from going to this city council or the city
team asking for permission to do that.
Mayor Pro Tern Taylor all I have is the one point that you take out those two sentences then
you're home free.
Mayor Clark: we have two requests to speak. Is there anything from council?
Council Member Low: we have a public hearing on that
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 26 of 54
Mayor Clark: I have two requests to speak; this is a public hearing. You don't have to fill out a
form to speak. We are going to open the public hearing; we have two so far, Sharon Esquiviel.
Public Hearing opened at 8:48pm.
Sharon Esquiviel - I guess am not objecting so much for the gym, it's the location. I do not think
this is a good location for the gym plus about the other stuff Gary brought up that I didn't know
about. I think the location would be better represented like for a restaurant row. Anyway that is all I
have to say. Thank you.
Marlene Shinen: this man answered a lot of questions that I was going to ask, considering this, but
he really wants to sell you this car. So I think you need to be real careful here. I have a problem
with the agenda, I don't know who prepared the agenda but it seems like this is such an important
matter. I was at the CDC meetings and that property was always referred to as the Levitz property
or 8920 Glendon Way, but at least you had an idea of where it was or where it is. It seems to me
like it's right off the freeway. It seems like a lot more people in that area might have come to this if
they had known this, what is it? Ultimate Fighting Championship? I ask the council tonight, what is
the F word? What's the F word?
Mayor Pro Tem Taylor. Fighting, but on this case it's called Ultimate Fitness Club
Mr. Sedlack: its Ultimate Fighting Championship
Mayor Pro Tem Taylor. Ultimate Fighting Championship is the brand logo, that's what makes it so
famous.
Ms. Shinen: so it's not Ultimate Fitness? What's the F word? Okay it's off the 10 freeway, great
place for the sign, advertise it. Would you have two F words? Ultimate Fighting, Ultimate Fitness?
Ultimate Fighting Fitness?
Mayor Pro Tem Taylor. Mayor Clark had asked that?
Ms. Shinen: someone has to choose what the F word is?
Mayor Pro Tern Taylor: she asked the change of the sign and that wasn't acceptable.
Ms. Shinen: if they are going to put a sign right there, what will the F word say?
Mayor Clark: I don't' know, because at the meeting we had I asked you if you would be willing to
put under the UFC logo Ultimate Fitness Club? And you didn't seem to want to do that.
Mr. Sedlack: there are a lot of things to do with brands and UFC gym the way it sits today in brand,
if you put the ultimate fitness club and you become a generic brand you don't become a UFC
brand, so it's very important for us those essentials so if you go to fitness club then you will go from
millions to thousands and we are not prepared for that.
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Minutes of November 17, 2009
Page 27 of 54
Mayor Clark: and see that's a problem that I have because you have, unless the staff report is
incorrect it says "New Evolution Fitness Center doing business as Ultimate Fitness Center (UFC
gym)" So your dba is Ultimate Fitness Center, but you are not willing to put that on your sign.
Mr. Sedlack: our dba is not Ultimate Fitness Center
Mayor Clark: so why does it say doing business as?
Community Development Director Saeki: I can clarify that, in discussion with madam mayor and
city council and discussion with Adam and his team, well let me backup. First the proposal initially
came to the city came was for New Evolution Fitness Gym, and then as we got further along the
process, this UFC concept kind of evolved through that process. And so in discussions with Adam
again and his team we asked if it would be appropriate to be called Ultimate Fitness Center? not in
any way shape or form are we implying that was their brand , that was our idea, hey this is what it
truly is, the way we have the project conditioned there would be no fighting. But like Mr. Sedlack
was saying, the UFC brand is Ultimate Fighting Championship.
Mayor Clark: why did you put doing business as?
Community Development Director Saeki: how we together foresaw how their business was going
to end up being, it was a fitness experience rather than a fighting championship.
Mayor Clark: right but that's obviously not what he is saying.
Mr. Sedlack: well the dba new gym is our dba and I just want to draw this one small parallel, it's
very similar to Harley Davidson name. 20 years ago Harley Davidson was parallel with crime,
Hell's Angels and so forth and they're not upper main stream now. But that brand Harley Davidson
they could not get away from because it created so many more impressions, its credibility. I'm not
here to run from the UFC name. Because I've seen an organization create great (inaudible) and
organization has created structure and credibility and I had to educate myself to get there. And so
I am not about to run away from that. I'm about taking this brand and making something that I can
service everybody in the City of Rosemead and surrounding areas.
Council Member Ly: I don't think that really answers Mayor Clark's question as to why the staff
report doesn't say doing business as Ultimate Fitness Center the (UFC gym).
Community Development Director Saeki: it's probably poorly written and I take responsibility for
that.
City Manager Allred: well some of the paper work we have the term Ultimate Fitness Center
appears in the documents.
Council Member Ly: from whose' side? Staff side or your side?
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Minutes of November 17, 2009
Page 28 of 54
Mr. Sedlack: inaudible... all it is a fitness and training center, that's what we are. That's who we
are, that's our innovation. It is not our brand name there is a complete difference in branding name
and what innovation is.
Mayor Pro Tern Taylor. I think it's the brand name that is causing the big mix up here the UFC,
Ultimate Fighting Championship and I can't get around that issue because you got three different
names you are tossing around.
Mr. Sedlack: it did not get your question, sorry
Mayor Pro Tem Taylor. you had New Evolution Fitness Center, one
Mr. Sedlack: is our parent company
Mayor Pro Tem Taylor. Ultimate Fitness Center is another and it's all tied into the logo of UFC,
Ultimate Fighting Championship.
Mr. Sedlack: so let me clarify then for everybody so we are all in the same page and I'll just use our
Concord location in northern California. Our brand is UFC Gym, it speaks to people that know
UFC, it speaks to people that don't know UFC. UFC is a brand that speaks to almost everybody
and creates some sort of motion. Our job is to educate, our job is to show people that UFC Gym is
not about, with all due respect the F word, that's not what it's all about, it's not about fighting. A
brand name is completely different from what's inside that brand, and I think to disconnect. Just like
Harley Davidson, was not Hells Angels, yet it was considered hells angels for many years, but that
was their brand name. And you are going to see UFC and UFC gym and the UFC surrounding
companies WEC and so forth become very mainstream over the next few years from kids studios
to adults studios and so forth. It doesn't mean if you look at the conditions, we're not fighting, that's
not what we are about; it's purely branding and marketing brand appeal.
Mayor Clark: if you are really not fighting why are you not willing to take out condition 34 last
sentence?
Council Member Ly: it's Condition 34 and 35 the last sentence.
Mayor Clark: I am more concern about 34 than with 35, the training one on one doesn't bother me
as much as the fact that you want to keep that in and you can hold a fighting event.
Mr. Sedlack: I'd be happy to say that we are not going to do any Ultimate Fighting in the gym, I'd
be happy to add that to the condition.
Mayor Clark: but you are not willing to take out the condition.
Mr. Sedlack: but I want to reserve the right, to come to you if I want to work with a school or if I
want to work with other people and have you approve it. And if you guys don't approve it, it's turned
down. It goes to you guys 100 percent of the time.
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 29 of 54
Mayor Pro Tem Taylor. What does that have to do with those two sentences? You can still go to
the schools and promote your club.
Ms. Delgado: no you can't, the applicant shall not publicize or hold any event or demonstration.
Mayor Pro Tem Taylor. that should that does what?
Ms. Delgado: to have anything any contact or (inaudible).
Mayor Pro Tem Taylor. no, no, continue with the sentence.
Ms. Delgado: that has a contest, but it could be two children... inaudible...
Mayor Pro Tem Taylor now you are mentioning words, children are not going to be beating each
other up. Watching those fights was ridiculous, they would hit somebody in the head knocking them
to the ground then pounce on them use both fists to beat their head while they are on the ground.
Ms. Delgado: Right.
Mayor Pro Tern Taylor. I don't understand that kind of fighting
Mr. Sedlack: I think we are actually agreeing on this, I agree on what we are saying; I want to be
able to reserve the right to allow kids to do that stuff if we need to allow kids to do that stuff. I want
to give you exactly what you want; I don't want any fighting in the gym. And I'd be happy to put that
in there, as an added condition but I entrust in the City Council and 1 entrust in your team that if we
add that in there, if we want to have kids or the school wrestling team over we could present it to
you guys and you guys can take a look at it and give it it's due diligence if it's appropriate.
Council Member Ly: let's assume we removed the last two sentences of condition 34 out, if at
some point, let's say for some reason all the different organizations, all the different wrestling
teams from Rosemead, all the wresting teams from San Gabriel says we really want to partner with
them but you won't allow it. Can the CUP be amended at that point going through the process and
adding about specific events?
Community Development Director Saeki: this is not a conditional use permit it's a PD (planned
development) and I am sure with our legal counsel, any condition can be amended like we are
doing tonight.
Mayor Pro Tem Taylor please turn to page 11 of 17 item number 6 under the conditions of
approval, "Planned Development Review is granted or approved with the City and its Planning
Commission and City Council retaining and reserving the right and jurisdiction to review and to
modify the permit, including the conditions of approval based on changed circumstances. Changed
circumstance include, but are not limited to, the modification of the use, a change is scope,
emphasis, size, etcetera. To me this brings in, they can come back if they have a special deal if
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 30 of 54
they want to work with the schools, but I won't go for the brutality of it and say it's not going to
happen.
Council Member Ly: I have to agree with Mayor Pro Tern Taylor, this is, there is the ability to
come back to it, there is a redundancy in line 34.
Ms. Shinen: I looked it up; gym is a physical education class. Separate is there is going to be
instructing, that we go back to the F word, and I go back to the agenda. When you write the
agenda, I just don't understand why this goes out to people or people are willing to read the
agenda and they see a UFC Gym, what in the world is a UFC Gym? The words should be spelled
out and the thing is you cannot choose the words because there are two F words we're talking
about, We're talking about fighting and fitness, now if you are going to pick one sign, a huge sign
off the freeway it's going to cost a fortune maybe, you're going to have to choose one word. To me
they are going to choose fighting, because it will attract the clientele they want, because they think
it's more exciting from what this gentleman has said. But yet if it's fitness, it will be boring like the
others. So a UFC Gym is what? Is it fitness or is it fighting? So if you vote tonight are you going to
be voting for a fitness gym or a fighting ring?
City Manager Allred: to answer your question the sign will only say UFC Gym it will not say fighting
or fitness.
Ms. Shinen: so you still don't know what the F word is?
Council Member Ly: I think part of it, what they are trying to do is to allow each individual person
to determine what that word stands for. Now the scope of services is limited to what is said in the
planned development review in the conditions of approval I think that is basically what he is trying
to say.
Ms. Shinen: I think you should consider that this man really wants to sell this car.
Mr. Sedlack: I think when you look at 34, 1 understand what exactly you are saying, I like the fact
that we can go back and apply through you guys to host an event. So I am comfortable deleting
that but adding that we may, you called a CUP?
Mayor Pro Tem Taylor. you have clause number 6 that says that any time a review can come
back.
Mr. Sedlack: I think I am comfortable with that.
Mayor Pro Tem Taylor and 35, they're both the same exception clause
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Minutes of November 17, 2009
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Ms. Delgado: just to clarify, for 35 legally I don't know that Adam can say to you that they'll be no
contact. If an Instructor is showing an exercise he will be in violation of his P.D. definitely we have
a security plan that sheriff is going to be involved in monitoring this location. So if this becomes a
problem this can be addressed, that security plan can be revoked. But legally Adam cannot tell you
that there will be no physical contact. There will be children touching, the physical fitness with the
women, self defense, legally he cannot tell you there will not be contact.
Mr. Sedlack: I think going back to your request; I think that paragraph says a lot. I just want to go
back to the details of what we're truly about, the fact base that we are truly about. Eliminating that
paragraph I understand your perspective and opinion on that, I am trying to find a way to meet us
half way. To say as in good faith there is not going to be any fighting, we are going to eliminate this
because I can come back, if I want to have the wrestlers come over, I can come back and apply for
that from you guys, and I feel comfortable with. The second issue with contact is going to be a little
bit of contact and some of the programs we're going to offer. And I don't want to be out of bounds
with those conditions, I don't think its right, I don't think it's fair.
Council Member Low: I want to look at this project in a slightly different way. You use the logo
UFC; well it was interesting, when I mention to you my kids already know what that is. "You know
mom the show that we sometimes watch the Ultimate Fighting" and I go ho, that one. I remember
seeing on TV and it was pretty brutal, pretty bloody, and I understand it's a good marketing tool, I
understand when you present it, I understand that a gym is all for fitness. But I am looking at it, at a
different angle, I feel that this council has tried so hard to promote our city image, we are working
hard to make our city more beautiful, we want to promote safety, those are the things we have
been working so hard and again it's to build an image about our city. By having a gym with that
name, I understand why you have that; it's a great selling marketing tool. By having that name in
our city to me is if I support this project, to me it feels like I am supporting this Ultimate Fighting
Championship style of sport. Which as a mom, ask my kids to change the channel. You don't need
to watch this type of brutality; I don't need to see all this blood flying. I understand kids join classes
for karate; in fact when I was little I joined it. But again, those are different in a sense, there is no
blood flying. To me I am looking out for the image of the city, I get the services that you provide,
and to me I believe there is no fighting in the gym, I buy that. But the fact that you guys are going to
have events to invite to people come and watch this Ultimate Fighting Championship, is a way of
promoting this type of sport. And I think that is something I cannot support.
Mr. Sedlack: what you just spoke of is our biggest opportunity, is that every child knows about the
UFC and most children are watching the UFC whether they're in a closed door or a parent is
allowing it. This gives us the opportunity to take something that the kids think its cool and change
messaging. Because right now what do they think, UFC, they watch the fights and it's about
fighting and that's all it is and that's all they go to school with that thought process. Now we are
able to take that same brand recognition and we are able to take you kids and we are able to say
okay, UFC is fighting but this gym is not about fighting, UFC is also about self discipline, self
confidence, integrity, as a matter of fact, there are kids in the mixed martial art programming, one
of the belts is that you have to do unassisted chores for seven days in a row. It gives you that
example of how we try to create that mentality. It's an opportunity for us to take what kids already
know and what adults kind of misunderstand and educate everybody about it. The UFC Gym brand
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 32 of 54
name, it provides a lot of credibility in today's world. Not everybody here is going to agree with that,
but when you start learning where the brands come from and where it is today, it's a completely
different appeal. Now we have mainstream advertisers supporting UFC. So it's developed, its
progressed, I think you truly understand our concept, it would be an example where I would have
your kids come in and introduce them to the programming we have, or intro duce you to women's
self defense, or nutritional programs or whatever you're interested in and we now create an
experience for you and your kids. What you just brought up is the exact opportunity looking for the
ability to do that. When you have the UFC Gym right there, I think we're looking at the glass half full
and not half empty. It is a very credible business organization in today's world. It's not 1993 or
1994, it's a completely different company than what it used to be, the credibility is going to be
there. It is there in Concord California and I am sure and we've looked at Concord at the type of
city that it is, which is fairly high income it is overwhelmingly popular, it's created much credibility
inside the Willow shopping center in the mall and a bunch of energy. I look at it as an attraction
piece, a benefit as we continue to go mainstream in the years to come. I am happy to reply with
Mayor Pro Tem's step on number 34. 1 am happy to be ultra-transparent with everybody, all the
time. I've lived down here, I am going to take pride in this gym, this is my home base. What we
represent here is what we will be representing worldwide, I want to launch correctly. I want other
cities to be able to call you, so you can speak of our credibility and what we offer the city. We are a
real organization that wants to invest money, employ people and do it the right way. I just hope that
you see it that way; I hope that I can be transparent enough to help us get there.
Mayor Pro Tern Taylor. Ms. Low mentioned the fact that the image and reputation for the city
itself, I think it was Commissioner Eng at the Planning Commission meeting is this going to be
opened to other UFC club members. Well the comment was, at this time you only have one other
club in Concord that open this week or so. But ultimately you plan to allow other club members to
use the facility.
Mr. Sedlack: what we have going on, is called a destination strategy, 24- Hour Fitness is a network
strategy where your 30 clubs clustered together so they use all their facilities. Because we are a
destination strategy, you're going to have very little repository between facilities. If someone is in
Concord California, using the UFC Gym in Concord California and they happen to be in Rosemead
in a hotel, it's a private organization, it's a private company, if they are a member; if they have the
ultimate membership they'll be able to use the facility.
Mayor Pro Tem Taylor as far as the intent is and you hope to have 100 more gyms by five years
in such, worldwide. Well if they have some, whether it's in L.A or and they have different nights, for
the entertainment shows, if you have it on one Saturday night of the month, that other club
members can congregate in Rosemead for their night, when you close it down to the public. Even
though they are members, they are not in the category of the membership that you are going to
allow in to view these bouts.
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Minutes of November 17, 2009
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Mr. Sedlack: I am not ultra passionate about this, it's more of a customer retention tool. The fact is
that most of these events are on Spike TV that they can get for free anyway. They can just turn the
TV channel; if the largest concern we have we are calling it a promotional event, I'd be happy to
retract that if it becomes a large issue. We are not finding it an issue up north because we are
hosting stuff off site and it's enjoyable to the customer, they love it. I would be happy to work with
you on that point.
Pat Trujillo: I think the UFC logo is deceiving to the public in to thinking they are getting a club
that's a "Harley Davidson Motorcycle" but we will be getting am imposter instead. I think it's the
logo that's the problem here.
Brian Lewin: I do have to agree with Council Member Low is getting at, if we are trying to position
Rosemead as a more family oriented city, the question here is how compatible the UFC brand as it
currently exist is with a family oriented city, the city image that we are trying to project. Also, I did
have a question if we banned any kind of fighting, if city staff were to go in there or code officers go
into the facility and witness fighting, would that be a closable offense?
Community Development Director Saeki: there is a process in the zoning code, for violation of
conditions of approval but yes, that process would be commenced and ultimately it could cost it to
shut down of the facility.
Mr. Lewin: for me that would satisfy one of the concerns that the city could monitor it as necessary.
Mayor Pro Tem Taylor. I think we need a valid opinion on that, that's why the attorney is here for
If there was a fight that went on their one time, I don't think we can close them down.
Mr. Lewin: this is just a single incident in general.
Mayor Pro Tern Taylor. that does explain it a little more, but if there is an incident happens, due
process in such, would you explain that.
City Attorney Richman: although the process is set up where we can have a hearing, I think it
would be a difficult situation, where I probably recommend that the city council take away their use
based on one incident, I think that might be a difficult situation to uphold in court but if you have
several incidents.
Mr. Lewin: several incidents would constitute of violation?
City Attorney Richman: you would follow the process and depending on it would play itself out.
Mr. Lewin: I think at this point a lot of people would be interested in that type of conditioning. Would
tend to be more aggressive personalities, and the people that I know tend to be have more
aggressive personalities. That being the case, security would be a big issue because when you get
a number of aggressive personnel in one environment the possibility of issues becomes greater. I
Rosemead City Council Meeting
Minutes of November 17, 2009
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have not seen the security plan but I would hope that at minimum one hour before opening and
until lone hour, after closing, security there and be evaluated by the police department.
Mayor Pro Tern Taylor. I have a point of clarification; I think the security guard is only in the
evening hours?
Mr. Sedlack: right now its evening hours inaudible... Chief of Police if he suggest we need more
we're going to
Mr. Lewin: for me I think all day would be appropriate until we get a sense when it's not necessary
Council Member Ly: I am not great on that idea, my reasoning is because we are not treating
Bally's the same way and we are not treating the other agencies the same way. My feeling is staff
did a good job that our chief of police was involved in this process and that we do have a public
safety structure in place here for the monitoring of safety of the location. I disagree with the
concept of people who use the gym are more aggressive, one there is no proof of that, and two for
example my brother when he was younger was a fan of professional wrestling, which was fake
wrestling. But my brother is a very kind hearted person; he's a very good person not aggressive in
any shape or form. And people join gyms for all sorts of differences; I am considering joining a
gym, and my reason of joining might be very different from the other person joining. So I would
have to disagree with that statement on that specific concept. Also I think at least in this condition
of approval that staff did a good job that we did engage in public safety officers on public safety.
Mr. Sedlack: we have a survey, I cannot give you an exact number but roughly it was 87 percent of
our members have weight loss goals. They're not in there for fighting or even for aggressive
training. They are there for to lose weight.
Mayor Clark: that is why I don't understand why you aren't willing to put Ultimate Fitness Center
under it.
Mr. Sedlack: I appreciate that perspective, but once you do that you lose the whole marketing
machine that's behind us that allows us to create the credibility that we are trying to create.
Mayor Clark: I disagree with that, because if people know UFC, that's the brand like Nike, you just
know.
Mr. Sedlack: but you would never put ultimate fitness shoe, it's very unique and creative to that
brand. I do appreciate what you are saying, the logo and the brand in any company is critical for
them. 24-Hours Fitness is the same way; you don't touch that logo, you don't touch that brand.
Council Member Ly: just want to point out that not all 24-hour gyms are 24 hours I found out the
bad way; it is a big marketing tool.
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Council MemberArmenta: I understand that UFC targets certain amounts of people or
population. But the way you are marketing it and the guidelines you are setting forth, the minute
they walk into the gym then they'll know what type of gym there is. Now it's their prerogative if they
are going to stay of leave. But once they do go in and try to find out about membership that's when
they are going to be told "no this is not a fighting gym" and they either accept that or they don't or
they move on or they go down the street to the kickboxing place. I understand why you put for
number 34; 1 understand why you put that; because it says any contact, any physical contact. I
think we're misunderstanding you're not teaching the kids how to fight the UFC way. Besides
partnering up with the schools, and they do wrestling, there is going to be that physical contact. It's
not the UFC wrestling, it's the high school wrestling, it's a different type of wrestling. What I am
hearing is that some of the council is feeling that you're going to teach them the UFC fighting,
wrestling and it's not. I am getting that it is a totally different type of wrestling your doing guidelines
to the type of environment you are going to set up. If people go in there and they agree with the
membership or agree with your guidelines they are going to sign-up. If not they are going to go
somewhere else.
Mr. Sedlack: that is fact base and the frustrations that I feel is that we are being held to a different
set of standards than other fitness clubs out there. My attorneys feel that way and a lot of my
partners feel that way as well because we have the initials UFC. When I looked down the street at
this full contact gym, I am not sure how they got approved to have full contact and fighting down
there. But that's where these fighters are going to go; we're not that, it's not us; it's about a unique
concept on the way we train and we drive fitness principles. And you hit it on the head, if you're
going to train to be a fighter, you're going to train completely differently than you could of at a UFC
Gym. You're going to be able to learn self defense, you're going to be able to learn technical skills
sets, you are going to be able to learn kids' programming and learn about your body, you're not
going to able to learn how to strike and knock somebody out.
Council Member Armenta: and you're not going to teach the kids to gouge eyes.
Mr. Sedlack: that's not UFC either.
Mayor Clark: you list several of those fights; you listed them in your PowerPoint
Council MemberArmenta: contact sports?
Mayor Clark: You are the fighting champion, you are doing fighting, are you saying... inaudible
Mr. Sedlack: what are we training is your question? Mixed martial arts, everybody has a different
perspective on mixed martial arts. Some people use it as combat, for people that use it as combat,
unsanctioned events is what you call hardcore mixed martial arts, or hardcore boxing, or football
without pads. Then there is mixed martial arts for fighters when you learn how to fight in a ring and
there are certain rules and regulations you have to follow like no eye gauging, no hitting in the
groin, those types of things and you're trained a certain way to beat your opponent.
Rosemead City Council Meeting
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Page 36 of 54
Council Member Ly: I think it's like the difference between flag football or touch football versus
actual tackle football like we see on the NFL.
Mayor Pro Tem Taylor. if you look on page 29 of the information the class for UFC cardio
kickboxing; kickboxing is part of the fighting process and these fights that I have been watching
they have been using kickboxing to either knock the opponent down or disabling. Kickboxing is
used in that, but it states in page 29 "get drenched with fast high energy jabs, jacks, elbows and
kicks. The perfect UFC class to combine martial arts, boxing and cardiovascular training. Welcome
to UFC gym, this is a signature class". Go over to page 36 under Ultimate Member DUT class
format states "Prepare yourself; we make the rules up in this class. Fight ready circuit training in a
progressive format that gets tougher every week. This is a signature UFC Gym class designed with
the fighter mentality and athletic diversity in mind". There are a lot of promotional things you have
here.
Mr. Sedlack: the kick boxing, you kick a bag its considered muay thai as well. You kick a bag that is
in front of you and you hit the bag and that is considered an incredible cardio and resistance
training workout. To the daily ultimate training, first of all the deck was revised because I realized
those words were too aggressive for this forum.
Mayor Pro Tem Taylor. you mean this has been changed
Mr. Sedlack: it's been revised in this deck that I have here. But what we know is that the UFC
fighter is the best conditioned fighter in the world. George Saint Pier as an example, he is known
as the best athlete international around the world for how he eats, how he trains and all those
things. The daily ultimate training there is not mixed martial arts in daily ultimate training. It's all
about fitness, training and conditioning. It's an advanced boot camp, it's a very advanced high
dynamic boot camp that's done in progression series and it gets you in a fighter condition from a
fighter's perspective.
Mayor Pro Tem Taylor it says it's designed with a fighter mentality and athletic diversity on mind
Mr. Sedlack: the fitness fighter mentality is how far you are going to push your body to get there.
So if you look on the way we reword it, I took that out because I thought that would give the wrong
message to all you. I know we are ready to close up, this has been a very long process and I think
have practiced a lot of patience and you heard it through.I respect that you appeal and that you
wanted more information, I get all of that. We are still off course to what my company is all about
and now we are talking about what if's, we are stationed around those and everybody's perspective
is that UFC fighting, if they are going to get closed down if they fight and we are not talking
anything about what our business model states and what our business model indicates, in which I
considered to be the facts and the details. I am trying to be ultra flexible, I want to be here in the
City of Rosemead, I want to participate in this community, I want to inject capital into this
community, I want to follow your protocols and your processes, I want to show and prove to all of
you what we are really about and I think I can do that given the opportunity. I am very transparent,
ideally we will be able to work in the future, I am very transparent I want you to know everything I
know, I don't have anything to hide from, please accept that for what its' worth. I am genuine in my
Rosemead City Council Meeting
Minutes of November 17, 2009
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aspirations. I think if you talk to a lot people out there in the community, your average age I think is
32. 1 think if you talk to people at the Starbucks and at the car washes and some of the different
associations out there they are very pro UFC Gym. I think they will take pride in it and I think we
can teach something different in the community and this city can be known for innovation, it can be
known for something new. I think it will be a great presence off the freeway; it would provide a lot of
credibility for the growth of the city.
Mayor Pro Tem Taylor. you are going to spend how much money?
Mr. Sedlack: roughly at the end of the day $4 million bucks.
Mayor Pro Tem Taylor. what kind of a lease you would have, for how long?
Mr. Sedlack: our lease is ten years with a five year option.
Mayor Pro Tem Taylor. for ten years we are going to take a gamble that, we won't be drawing a
crowd here of an aggressive nature.
Mr. Sedlack: we wrote that in our condition and in our membership agreement we have strict
policies and procedures that if somebody breaks membership code their membership is revoked.
These people, when they see our gym and our programming will not join. Fighters look, if you read
the blogs, do you know what we are called right now in the blogs? Mcdoe Joe. Because we are
considered a retail, kids doe joe organization because we are not fighting.
Mayor Pro Tem Taylor. everything that I see about ultimate fighting championship, that program
on Spike is on at least three or four nights a week, it's on tonight UFC championship fighting.
Mr. Sedlack: and that's another testament to Dana White doing his job as a master promoter. We
are not UFC, what we are talking about is UFC gym, which is completely different concept than
fighting. Is taking the best at what they are
Mayor Pro Tem Taylor. I understand what you are trying to tell us but I also see a direct
connection between the two.
Mr. Sedlack: there is a marketing engine.
Mayor Pro Tem Taylor. Dana White is a promoter and he knows that end of it but he is indirectly
involved with what you are promoting.
Mr. Sedlack: he is not running our day to day operations, I am held accountable for everything that
happens in that gym. Dana is not held accountable that happens in that gym. I am the point of
contact, I am the stopping point. We are not representing our self like that to the mass, we cannot
survive that. There is only 3 or 4 percent that want to be fighters; there will be no way our company
would survive on 3 or 4 percent, that's why we are not in that business. That's why your fighting
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 38 of 54
gym that you have in Rosemead is only 3,000 feet, because you cannot survive on that model. We
have no interest in being there.
City Manager Allred: I would like to clarify for the record that the applicant has offered to strike the
last two sentences from condition 34, and the answer is yes; for the record.
Ryan Junk: hopefully soon will be a resident of Rosemead, I have been in the fitness industry for
15 years. When I first heard about the UFC opening up, I did a lot of research, I've work in four
different companies and I've held a position as district manager and I laugh at it. There is no way
they will be able to stay in business, if the gym industry, if you don't target over half your members
as women you are not going to make it. That's •why you have to keep the bathrooms clean, that's
why you have to be friendly, the saying goes if you have a happy wife you have a happy life. You
treat the wife nice, you treat the kid's great and they bring the fathers that bring in the kids. That's
every model, I've worked at 24-Hour Fitness, Bally's, everywhere, they all believe in the same
thing. If they are targeting fighters, he just ended on a good point. You cannot have a 40,000
square foot facility and keep that rent because those people cannot afford to pay that first of all.
The minute they walk in, I looked at this model, to rip it apart, everything is marketed to women, it's
the front desk when you walk in, it's the great smile. If you look at the marketing PowerPoint, they
had up its all women. Did you notice the women throwing punches is all women. They are trying to
soften it up, someone said; you are trying to trick people, it's marketing that's what people do in
marketing to get a shock value. You are going to have people who join just because of that. A
perfect example, you can go to Bally's down the street, and I know this for a fact, and you can have
contact training with a trainer, the exact same thing they are going to be offering. You go to 24-hour
fitness, I know that for a fact, because what the trainers do they bring in their own mitts and pads
and gloves and the person punches those gloves. My mom who is 66 years old, she was 38
pounds overweight, she hates going to the gym. If you look at the stats the health club industry that
I am a part of is failing, we're not doing well. We devalued our product, we sell it for less, and give
less, we charge for aerobic classes. Some gyms are closing early because they cannot afford the
extra utility bills. We are failing and America is getting more obese. Now, my mother who has lost
that weight, does boxing, not at a boxing gym, because you never go in there, at the 24-hour
fitness where she lives, she won't' watch the UFC, she hates it, I like watching it, I cannot put it on
while we are at the house. Here is a woman that is a catholic; she is very strict and wholesome
woman. But just to give an example her trainer stands there with two mitts and she stands there
and she punches. Her first appointment with her trainer she couldn't stop laughing, but she looked
forward to her appointments, she looked forward to going to the gym and asked why my waist is
sore, I was punching. Because you are using all the things they do in the gym, but you are not
thinking you are training, you're doing something totally different. She has never bled, she has
never gotten hit, and this is at a normal gym. You can go in there and do some research to a
Bally's right now and ask for a personal trainer, and you ask you want something to do with boxing,
one on one appointment you get that, you'll get that any gym in California. What they are
proposing, I wish I could be speaking as an employee of a UFC gym, is that they won't be able to
stay in business if you have fights. That's why the health clubs that I have worked for you cannot
have that type of riffraff. We would yell at members that would drop the weights, why it didn't bother
us or break the weights, but you made it intimidating because your yelling and screaming to our
women to the people that do not like that. Those guys don't spend extra money on drinks, they
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 39 of 54
don't spend money on retail they don't spend any money except on their monthly dues. And this
model, I hate to use this word but its sexy, its new, it's something totally new, it's something
different that Is why if you can tell I am leaning, I want to work there answer. I was just at my gym
today, I don't want to say where I work, I was watching a 45 year old mother, and I was watching
her do Muay Thai training. They teach you how to do the Muay Thai punches and a certain way to
kicks. But she couldn't figure out the kicks, and I asked her if she was trying to be a fighter, I was
joking around; but she says no but it's fun and exact same thing my mom says, I love coming to the
gym; these classes that the UFC gym is offering is just that. If you are a fighter and you walk in
there and they tell you all you can do it mitt work, I believe that is the contact that they are didn't
take out in number 35, that contact is you're actually punching your trainer's hands. They are
holding a mitt and they're kicking it, and the reason it's called ultimate training is because football
players, baseball players in the off season, that's the training to do. I don't want to do in a rant,
when you are doing that exercising and you are doing weights all the blood and the weight goes
into these muscles. Mixed martial arts training, reason why fighters get really tired is because when
you are punching, the blood is giving oxygen to your muscles. Then you have to do a wrestling
move, blood is now in your legs, but then it has to go to your lungs because you have to breathe,
your heart is working your blood is pumping and if you are not in that type of shape you are not
going to last 30 seconds. So that's why you need to have the gradual changes, if you take
someone off the streets that has never done it, they have to have different types of classes. You
are speaking to the UFC fighting, which I feel and I could talk about too. They should take the
elbowing; they should change some of the rules, make it more marketable so you won't have as
much blood; but the gym is already doing that. All the things in the internet are bad about UFC; it's
come a long way.
Mayor Pro Tem Taylor. that's where they are making their money
Mr. Junk: but to their gym when he made a comment, because I have read the things in the blogs,
all the fighters are the ones making the jokes. The true gung ho fighters think UFC is a joke.
Because when you look at the marketing, it's for women, it's for guys like me the weekend warrior
that pays 50 bucks to watch it on pay-per-view and love to hit mitts because no one is punching me
back and it's a great exercise and when I am done I can barely breathe and I feel great and that's
who we are targeting the weekend warriors.
Mayor Pro Tem Taylor. Dana White is not going to hire you, he is an aggressive fighter. They are
worth almost $2 billion.
Mr. Junk: if Dana took out elbows, their marketing would go up they would get bigger sponsors,
because 90 percent of it is blood comes from someone hitting with an elbow and slicing your
eyebrow; that's where the blood comes from. You take away elbows, you watch fighting in Japan,
they don't' throw elbows, you throw hands the fights last longer there is no blood. Its two different
conversations, I know where you are coming from, if my dad was sitting there, he would be saying
the same thing, he hates UFC. Your perspective is right on, but what they are doing kinda the
flashing UFC, it's taking a brand; you take branding, a 24- hours fitness in Miami, nobody knew
who they were. So they put and athlete on it, it's not UFC but they put Shaq 0' Neal, now they call
it the Shaq club. Nowhere on it says Shaq Club; it says Shaq 0 Neal on top of 24 hour fitness,
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 40 of 54
they used that name to drive in people. That's what they are doing here, which you are going have
the kids going, "mom I want to go to the UFC gym" and hopefully parents will go in with them and
see "wow this is actually safe". That is looking at it at my perspective, I don't have all the details but
it's a really good concept now from someone that watches the sport that I am a fan. One more
thing, these doe joes, my nephew pays 150 a month for jujitsu, because you could only do it on a
3or 4 thousand foot gym because they don't sell that many memberships it's not a volume
business. No, everyone is going to pay that amount of money, but the children have to pay that.
The UFC gym is not charging that, because they have volume you can afford to sell for a lower rate
and it's going to cause more competition where ever they are to make the prices a little lower so
you don't want to take your child in to UFC gym, you can take your child at a taekwondo or karate
you can take them to that doe joe, you are not going to pay $120 dollars a month because they
cannot stay in business to change that much, they are going to have to lower the price. There are a
lot of factor these gym is going to do but to your point, it is an ultimate fitness gym. You just cannot
call it that.
Mayor Clark: you made my point, the gym put Shaq 0' Neal; they modified it to the community.
Mr. Junk: Right. So UFC Gym is (inaudible) you first can't do that. I'll tell you why. Because in
branding if you put that on there, first of all I don't think UFC is going to sign off on that. They put
Shaquille O'Neal. So you wouldn't call it Shaq attack because that is not his name. You would call
it Shaquille O'Neal since we don't' want his full name on there. We probably just call it Shaq. You
know it's different because it's a person versus a sport. The thing is that brand Name is going to
drive in so much business. I will tell you right now. The people that are joining to fight. They're
not. I know that Adam said they are going to send them down the street. He's not going to send
them down the street. He can't they are going to leave before he even has a chance to tell them
not to join. The minute they see the number one thing in fighting, and I'm sorry, I'm really
passionate about this. The number one thing in fighting is called range, I'm trying to give you guys
the gaps, is range. And in ranges to be able to hit your opponent point. Hit him in the face, hit him
in the body; and anybody can hit to a bag that is standing still. Correct? It's standing there not
moving. That's it, you're just going to hit it. In fighting you can't train that way. 80 percent of you
training has to be hitting a real person, because you have to get that range. In the UFC gym you
can't do that. Anybody that knows anything about fighting... what do you mean I can't spar. No this
is not that type of gym. They're not going to finish the tour they're out the door. So I'm done I'm
just trying to tell that. This model, I feel like I just came back here I'm not properly in the mix. But I
think there is two conversations going on. Because the UFC fighting company and I think it was
the gym and I understand all the points but I think were pushing them together because what there
concept is going to redefine the fitness industry. Everyone is going to be using it; so that's it.
Council Member Low: I'm just curious. You said you are not a Rosemead resident?
Mr. Junk: no, I am not.
Council Member Low: you're a visitor?
Mr. Sedlack: I tried to recruit him into the (inaudible).
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 41 of 54
Mr. Junk: I called Adam when I heard they were doing this.
Audience Member: what is the revenue coming into the city?
Mr. Sedlack: we are still remodeling the Gym store revenue which is the retail sales, so we don't;'
have those exact answers yet it's all based on the sizing of the pro shop; that's the tax based
portion of the facility.
Dolores Weidemann: I just want to comment on safety that if I go to watch this film on Saturday
night and I am rooting for this person and if my friend is rooting for that person, and we get out in
the parking lot and we get a confrontation going on these guys better be there. Look at Casa
Latina, what's happened there recently. It really concerns me, I think it's your responsibly to keep
the citizens of Rosemead safety. I agree with Polly in reinforcing what we want for the City.
Mr. Sedlack: I couldn't agree more with what she said, that's why we are working with the chief of
police, that's why we have security cameras, that why we have membership agreements; code of
conduct specifically calls that out.
Mayor Clark closed public hearing at 9:49 pm
Council Member Ly: we also had a meeting with Primestor, myself as well as with the city
manager, community director and Council Member Armenta and I will repeat what I say at that
meeting, which is that my personal feeling is that there is an under utilization of the space we have
there; the Levitz site or whatever you want to call it, there is a lot of potential with that site. It's one
of our most highly value site that we have there. I think there are very legitimate concerns that
Mayor Pro Tern Taylor brought up, Mayor Clark brought up about the facility that Council Member
Low brought up about the facility in terms of the brand of UFC. Yes, the brand is piggy backing on
this sport, in term on how deceiving it is up to everyone's own interpretation. My concern is, did the
planning commission do its job in analyzing this facility use, even though it's not the most optimal
use I would like to see; and my feeling is they did, I watched the transcript at the planning
commission meeting, it was a very long meeting when I was watching online. It means that people
are talking about this issue; it means that there is a lot of discussion that came about it. My feeling
is that the operators are willing to remove those last two sentences in condition 34, even though it's
not the best use for that facility, they still meet all the requirements, they still meet all the conditions
that need to me met, they are legally allowed to do this, which is why the Planning Commission
approved it. Which is why I feel, not entirely happy with it, we need to approve it as well with the
removal of the last two sentences in condition 34. 1 do hope that if this does get built that this will
be a good corporate partner in the city that we need that. A lot like the Wal-Mart's and Targets
what Mr. Lyons was talking about the DiPillas. These are the businesses you hear every single
time in events because they are the ones that always give back. I'm hoping they do give back and
hoping that there is a good relationship. Personally the planning commission did its job in reviewing
this issue and with the condition of number 34 the last two sentences of it I see no reason from
legally stopping them from building.
Council Member Low: I am changing my mind. I am willing on giving them a try.
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 42 of 54
Council Member Armenta made a motion, second by Council Member Ly to approve the
Planning Commission's approval to operate the UFC gym and remove the last two
sentences of Conditions of Approval on number 34. Vote resulted on:
Yes: Armenta, Low, Ly
No: Taylor
Abstain: Clark
Absent: None
Mayor Pro Tem Taylor. I am going to ask that this conversation be on the minutes verbatim.
Verbatim dialogue ends.
The City Council recessed at 9:54 p.m. and reconvened at 10:02 p.m.
C. Municipal Code Amendment 09.02, Amending Chapter 13.08 of the
Rosemead Municipal Code (Water Efficient Landscaping Regulations) to
Comply with State Assembly Bill 1881
The Water Conservation in Landscaping Act of 2006 (Assembly Bill 1881) requires
local agencies to adopt landscape water conservation ordinances by January 1,
2010. Each local agency has until January 31, 2010, to either notify the State that
it has adopted the State's model ordinance; or submit a copy of its adopted water
efficient landscape ordinance. The proposed Ordinance will comply with State
mandates yet allow the City to retain its control over the water efficient landscape
matters. If adopted by the City Council, the Ordinance will apply to the following
landscape projects beginning January 1, 2010:
New landscape installation or landscape rehabilitation projects by public
agencies or private non-residential developers (excluding cemeteries) with
a landscaped area equal to or greater than 2,500 square feet, including
water features but excluding hardscape;
New landscape installations or landscape rehabilitation projects by
developers or property managers of single-family and multi-family
residential projects or complexes with a landscaped area equal to or
greater than 2,500 square feet, including water features but excluding
hardscape; and
New landscape installations that are homeowner-installed, including
homeowner-hired, in single-family or multi-family residential lots with a
total project landscaped area equal to or greater than 5,000 square feet.
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 43 of 54
The cornerstone of the proposed City of Rosemead Water Efficient Landscape
Ordinance and Guidelines is a self-certification process that will streamline the
permitting process and reduce costs for applicants and the City.
Recommendation: That the City Council:
1. Make the determination that the project is exempt from the California
Environmental Quality Act (CEQA) per Section 15307 (14 Cal. Code
Regs., § 15307); and
Introduce Ordinance No. 885 for first reading, approving Municipal
Code Amendment 09-02, modifying Chapter 13.08 of the Rosemead
Municipal Code with respect to water efficient landscaping
regulations.
Principal Planner Sheri Bermejo reviewed the staff report and presented a PowerPoint presentation
(PowerPoint is available in the City Clerk's Office).
Mayor Margaret Clark opened and closed the Public Hearing at 10:12 p.m. There was no one
wishing to speak on this item.
Council Member Steven Ly made a motion, seconded by Council Member Sandra Armenta
to introduce Ordinance No. 885 for first reading, approving Municipal Code Amendment 09-
02 and determining that the project is exempt from the California Environmental Quality Act
per Section 15307 . Vote resulted on:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
7. CITY COUNCIL CONSENT CALENDAR
A. Minutes
September 8, 2009 - Regular Meeting
September 29, 2009 - Special Meeting
October 13, 2009 - Regular Meeting
B. Claims and Demands
Resolution No. 2009 - 61
Recommendation: Adopt Resolution No. 2009-61, for payment of City
expenditures in the amount of $1,650,562.45 numbered 100572 through 100587
and 67768 through 67907.
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 44 of 54
Resolution No. 2009 - 63
Recommendation: Adopt Resolution No. 2009-63, for payment of City
expenditures in the amount of $819,191.30 numbered 100588 through 100614
and 67908 through 68057.
D. Ordinance 884 - Second Reading: Amending Title 6 of the Rosemead
Municipal Code Concerning Animals and Animal Control
On October 27, 2009, the City Council reviewed the Ordinance No. 884 amending
Title 6 of the Rosemead Municipal Code regarding Animals and Animal Control.
Ordinance No. 884 is now before Council at the required second reading for
adoption.
Recommendation: That the City Council adopt Ordinance No. 884 on second
reading.
Resolution No. 2009.53, Authorizing the Recordation of the Irrevocable Offer
of Dedication for those Portions of L.A. County Assessors Parcel No. 5371-
007.044 Proposed for Use for Public Sidewalks and Amenities
In accordance with the City of Rosemead Municipal Code Section No. 15.04.040,
the owner(s) of the property located at 3720 Earle Avenue, Rosemead, California
have submitted an executed irrevocable offer of dedication. The irrevocable offer
of dedication has been determined by the City Engineer to be necessary and
appropriate to permit the installation of a street tree in accordance with City
standards.
Recommendation: That the City Council approve Resolution No. 2009-53,
authorizing the City Engineer to execute and record the irrevocable offer of
dedication for L.A. County Assessor Parcel No. 5371-007-044.
H. Quarterly Interim Financial Update for the Quarter Ended September 30, 2009
For City Council review is the City of Rosemead Quarterly Financial Update for the
Quarter Ended September 30, 2009. Also, included in the Quarterly Financial
Update is the treasurer's report of cash and investment balances at September 30,
2009.
Recommendation: That the City Council receive and file the update report and
the Treasurer's Report.
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 45 of 54
Amended Contract with Los Angeles County Animal Control
As part of the transition of certain animal control services to the City, the City
Council must approve an amended contract with the County of Los Angeles.
Under the revised contract and service level agreement, the County will only be
providing sheltering and emergency/after-hours animal control officer services
Recommendation: That the City Council approve the amended contract with the
County of Los Angeles and authorize the City Manager to sign any necessary
documentation.
J. Senior Nutrition Program - Authorization to Solicit Bids
Over the past three (3) years, the City has contracted with Morrison Management
Specialists, Inc. (MMS) to provide meals for the Senior Nutrition Program. The
Senior Nutrition Program's mission is to provide high quality, cost efficient,
nutritious meals to seniors and to promote the role of nutrition in preventative
health and long term care.
As part of the procurement requirements under the Community Development
Block Grant (CDBG) program, an organization may only receive funding for up to
three years for the same program or activity before a new Request for Proposal
must be completed. The City's current contract for this service will expire on June
30, 2010.
Recommendation: That the City Council authorize staff to advertise for this
service and solicit bids for a qualified firm to administer the City's Senior Nutrition
Program for FY 2010-2011 with an option to extend the contract for two (2)
additional years.
Mayor Pro Tem Gary Taylor made a motion, seconded by Council Member Polly Low to
approve the Consent Calendar with the exception of Items C, E, and G. Vote resulted on:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 46 of 54
C. Ordinance 882 - Second Reading: Adding Chapter 17.98 "Mobilehome Park
Conversion" to the Rosemead Municipal Code Pertaining to the Conversion,
Closure, and Cessation of Use of Mobilehome Parks
On October 27, 2009, the City Council introduced Ordinance No. 882 for first
reading, adding Section 17.98 "Mobilehome Park Conversion" to the Rosemead
Municipal Code pertaining to the conversion, closure, and cessation of use of
mobilehome parks.
Recommendation: That the City Council adopt Ordinance No. 882 on second
reading.
Elena Popp - stated she represented the residents of the Monterey Mobilehome Park and at the
last meeting these residents had asked Council to make four changes to the ordinance; provision
for in place value, a provision for rent differentials, a rent freeze for a period of time, and restriction
of evictions for minor violations. She stated these provisions were already implemented in other
cities.
Adelia Rizo - stated she had lived in her home for 20 years and stated that her mobilehome coach
that is 47 years old cannot be moved. She stated she was on disability and added that she could
not afford to pay more money for rent. Thanked Council for any consideration in her case.
Francisco Mata - stated he was very concerned with this case; he added that his two kids will be
graduating from high school really soon and going to college. He asked that something be done so
that his family can stay where they are now and be able to afford transportation.
Gilbert Ramirez - asked Council to listen to the people and their problems that they might be
saying. Mr. Ramirez thanked Council for taking this case and spending so much time on this issue
and helping the residents.
Maria Flores Ramirez - (Ms. Popp translated for her) stated she has spent five years fighting for
their rights and stated it was hurtful to feel like they were being treated as objects. She thanked
Council for taking time and considering helping the residents. She added that although she
understood the City was in the middle of the issue she asked Council to consider the amount of
families, children, and seniors that will be affected by this issue.
Raquel Perez - stated she wanted to express her biggest fears; there is four in her family and she
has a special needs child. She stated her rent was currently $850 and if her rent was raised she
would be forced to lose her home and also this would make her son with special needs lose his
education and benefits that he receives in Rosemead.
Anna Torres - stated she has lived in Park Monterey for 25 years and her mobilehome was about
45 years old and cannot be moved. She added she is currently retired, disabled, and lives on a
fixed income; this would be a big economic impact. Ms. Torres stated she really loved her home
and having to change to a different home and environment would totally devastate her. She
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 47 of 54
thanked Council for listening to her and everyone and considering their situation.
Matilde Rincon - stated she has lived in Park Monterey for 26 years, her mobilehome is 60 years
old and she is 70 years old. She asked for protection for herself and everyone else who lives
there. She stated she lives off of social security and cannot afford to move out of the mobile park
and pay more rent. She asked that Council also include on the ordinance that the property owners
not be allowed to raise rents to the residents.
Angelina Ruiz - stated that her request tonight was that Council makes good decision and passes
a just law that will help the residents of mobilehomes. She stated she also had a special needs
child and it was very stressful to figure out what will happen to her and her children if they are
kicked out of the park.
David Evans - Regional Representative with the Western Manufacturing Housing Community
Association stated he represented mobilehome park owners. Mr. Evans stated he could never
compete with the issues of the mobilehome residents and knew their problems were real but asked
for fairness. He asked that Council be fair to both sides when making their decision. Mr. Evans
asked for reasonable relocation cost and hoped that Council will approve an ordinance that
complies with State law and is reasonable to both sides.
Craig Denton - stated that the park owners owned the land that the mobilehomes were on but the
tenants are representatives felt that they should receive all the benefits that the land gives.
Namely increasing the value of their trailer that is sitting in the land of the park owner; thereby
forcing the owner to pay top dollar for that trailer. Park owners do not think that it is equitable to
pay top dollars for trailers that are over 40 years old; he added that the ordinance was fair the way
it was written now without further amendments.
Mayor Pro Tem Gary Taylor stated that this was a lousy situation that Council had to make a
decision on but it comes a time when you need to decide what is reasonable. Mr. Taylor stated
that the ordinance addressed relocations benefits fees, which would be paid, as well as, rent
assistance, which would also be paid. Mr. Taylor stated that the mobilehomes did depreciate in
value and when the appraisals are made of what they are worth that is reasonable.
Mayor Margaret Clark asked if it would be possible to make the owners freeze the rents for a year
and not raise rents after they file for the park closure.
City Attorney Rachel Richman responded she believed that was already added to the ordinance.
Mayor Clark stated that it freezes them at the time they file but the issue raised was that they'll
raise the rents first and then file so that it works out for the park owners.
Mrs. Richman stated the answered was not in black and white and it went back to the reasonable
cost of relocation because that is what the statute requires the body to follow.
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 48 of 54
Mayor Clark asked if these residents had any recourse short of closure. Is there any way that the
city can help them with the inequity and the rents; asked if the way the owner was treating them
was legal.
Mrs. Richman stated she was not going to call it inequity but the fact that different pads have
different rent values it has to do with when did it happen, when did they come in, the market place
at the time. As to the inequity the city has no regulatory authority.
Council Member Steven Ly asked staff to explain the Section 8 Housing Index and how that
would work.
Economic Development Manager Michelle Ramirez replied that in the case that once a relocation
plan was submitted to the City and the park owner raised the rents; the City would look at which is
lower, the space rent or the fair market rent that has been published by the Federal Government at
that time and use the lower of the rates as the rent differential.
Mr. Ly stated that at the end of the day Council had to take a look at it and make the final ruling.
Mrs. Ramirez responded that was correct and that the park owners had to give 90 day notice of
rental increase.
Gilbert Ramirez - stated that he never received a 90 day notice and his rent was increased from
$410 to $650.
Mrs. Ramirez stated she had spoken to Mr. Ramirez about contacting the Fair Housing Foundation
regarding this matter because they can actually investigate that and they can go after the owner for
doing that. Mrs. Ramirez added that the previous attorney representing the residents had informed
her that they had contacted the Fair Housing Foundation and they had not found any wrong doing.
Mayor Margaret Clark asked that language be added that referenced if there was evidence of rent
gauging the City Council is allowed to take action.
City Manager Jeff Allred stated that the request was to add language to page 7, "that in making a
determination to approve or reject a proposed conversion impact report the City Council may
consider the rent history for the predicament of that case".
Mayor Pro Tern Gary Taylor made a motion, seconded by Council Member Steven Ly to
introduce Ordinance 882 for the first reading and implement the additional language
discussed. Vote resulted on:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 49 of 54
E. Ramona Boulevard Beautification Project- Rejection of Bids
As part of the City's Fiscal Year 2009-10 Capital Improvement Program, the City
Council approved a project to improve the Ramona Boulevard sound wall area
from Rio Hondo Avenue to Hart Avenue along the north side of Freeway 10. On
October 28, 2009, bids were received and reviewed for the project.
Recommendation: That the City Council:
1. Reject all bids.
2. Authorize staff to re-advertise this project and solicit bids to complete
the improvement project.
Council Member Steven Ly asked staff why the City only received one bid and asked why staff
thought if they go out to bid again they'll receive more.
City Manager Jeff Allred that staff will be contacting contractors directly as opposed to just posting
it on the green sheet and our regular posting locations.
Mayor Pro Tern Gary Taylor stated the City had a policy to try and obtain three bids; he added
staff had done this before when the City had only received one bid.
Council Member Steven Ly made a motion, seconded by Council Member Polly Low to
reject all bids and authorize staff to re-advertise this project and solicit bids to complete the
improvement project. Vote resulted on:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
G. Contract Extension with Clean Street, Inc. to Provide Street Sweeping
Services
The City of Rosemead provides street sweeping services through a contractual
agreement with Clean Street. The proposed agreement includes performance
standards including service levels, diversion requirements, equipment standards,
and reporting requirements. Per the agreement, all City streets will be swept at
least once weekly, Monday through Friday.
On June 9, 2009, the City Council extended the City's current street sweeping
services agreement with Clean Street for a six-month term through December 31,
2009. At this meeting the City Council asked staff to discuss the possibility of
extending the existing services agreement with Clean Street with no future rate
increases. Staff met with representatives from Clean Street and they have agreed
to the City's request.
Rosemead City, Council Meeting
Minutes of November 17, 2009
Page 50 of 54
Recommendation: That the City Council authorize the City Manager to execute a
three-year contract extension with Clean Street for street sweeping services.
Council Member Steven Ly stated this was last brought up on June 9th and at that time there was
discussion of going out to bid for this. Staff was due to bring back some information to discuss
whether or not this should go out to bid or renegotiate the current contract; this was never brought
back to Council. Mr. Ly stated he would vote no on this item because he felt Council was not given
final decision to vote on it. He stated that his preference was that staff goes out to bid because
due to the recession he wants to make sure the City is getting the best bang for its buck.
Mayor Pro Tem Gary Taylor stated that his recollection was that the current contractor had to
purchase special trucks in order to get the contract. Mr. Taylor stated he understood what Mr. Ly
was trying to do but that a lot of the City's contracts allowed for negotiation of an extension. At this
point the City is not getting any increases and added that he did not know of any other places the
City would be receiving decreases in contracts.
City Manager Jeff Allred stated that Clean Street indicated that there would be no cost increase.
Council Member Polly Low stated that if this is sent out to bid the City might get a better price;
she stated she understood the argument of keeping this price for the next three years but she
added that if they received a better price then the City would have a lower cost for the next three
years.
City Manager Jeff Allred stated that there was a high level of satisfaction with Clean Street's
services.
Mayor Pro Tern Gary Taylor stated that if the City went out to bid it would be a tossup; he added
that in the contractor's favor the City had already negotiated a contract with him in good faith.
Council Member Polly Low stated if it was possible to extend the contract for 6 months so that
staff could workout the bidding process.
Deputy Director of Public Works Chris Marcarello replied yes; that would help and it would give
staff in opportunity to put the bids process together and bring it back to Council.
Mayor Pro Tern Gary Taylor asked what the total of the contract was.
Mr. Marcarello replied $217,384.
Mr. Taylor stated he did not feel comfortable personally with the good faith effort. Staff had
negotiated with the contractor and he in good faith negotiated back again and the City accepted.
Now Council is stating that they don't like the deal and is going out to bid.
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 51 of 54
Council Member Steven Ly made a motion, seconded by Council Member Polly Low to
authorize the city staff to negotiate a 6 month extension on the contract with Clean Street
and begin an RFP process. Vote resulted on:
Yes: Armenta, Clark, Low, Ly
.No: None
Abstain: Taylor
Absent: None
8. MATTERS FROM CITY MANAGER & STAFF
A. Chamber of Commerce Memorandum of Understanding
The City Council will consider the renewal and updated provisions of the City's
agreement with the Rosemead Chamber of Commerce (the Chamber). The City's
existing Memorandum of Understanding (MOU) with the Chamber has not been
updated or renewed in many years. Under the updated MOU, the Chamber will
continue to promote the City as an advantageous location for business, industrial,
residential, and recreational activities to the business community, residents,
potential residents, visitors, and students. The updated Scope of Service includes
activities that aim to increase Chamber membership, so that the Chamber can
become self-sustaining through membership dues.
Recommendation: That the City Council review and approve the MOU for the
Chamber's services:
Assistant City Manager Matt Hawkesworth reviewed the staff report.
Mayor Pro Tern Gary Taylor stated there was something in the agreement in reference to the
political process, "the Chamber will not participate in any political activity", "political activity is
prohibited". Mr. Taylor asked what the rationale for that was.
Mr. Hawkesworth responded it came up as a State law on an issue that the cities would run into
with their chambers. There is a State law that prohibits publishing elected officials' photographs
and you have to publish all of them or none of them. Staff included this so that the City is
indemnified in this agreement.
Council Member Steven Ly made a motion, seconded by Council Member Polly Low to
approve the MOU for the Chamber's services. Vote resulted on:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 52 of 54
9. MATTERS FROM MAYOR & CITY COUNCIL
A. Reports on Meetings/Conferences Attended
AB 1234 requires that the City Council Members provide a brief report on
meetings and/or conferences attended at City expense at the next regular City
Council meeting. 'The City Clerk's office has received such a report filed by
Council Member Ly.
Recommendation: No City Council motion is required.
No action taken on this item.
B. Appointments to Keelung Taiwan Sister City Committee Executive Board
The City Council will consider the appointment of five individuals to serve on the
Keelung, Taiwan Sister City Committee Executive Board in accordance with
policies and procedures adopted by the City Council in September of 2009.
Recommendation: That the City Council appoint James Wang, Tom Wu, and Min
Wang to serve four-year terms as well as Daniel Deng and Jeffrey Lin to serve
two-year terms on the Keelung Taiwan Sister City Committee Executive Board.
Mayor Pro Tern Gary Taylor made a motion, seconded by Council Member Steven Ly to
appoint James Wang, Tom Wu, and Min Wang to serve four-year terms as well as Daniel
Deng and Jeffrey Lin to serve two-year terms on the Keelung Taiwan Sister City Committee
Executive Board. Vote resulted on:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
The City Council recessed to Closed Session at 11:51 p.m.
10. CLOSED SESSION
A. Conference with Legal Counsel
1) Government Code 54956.9(c): Initiation of Litigation (1 matter)
The City Council reconvened from Closed Session at 12:30; no reportable action to announced out
of Closed Session.
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 53 of 54
11. MAYOR & CITY COUNCIL COMMENTS
12. ADJOURNMENT
The Meeting adjourned at 12:30 a.m. The next joint Community Development Commission and
City Council meeting is scheduled to take place on December 8, 2009 at 6:00 p.m. and 7:00 p.m.,
respectively.
Margaret Clark
Mayor
ATTEST:
Gloria Molleda
City Clerk
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 54 of 54
11. MAYOR & CITY COUNCIL COMMENTS
12. ADJOURNMENT
The Meeting adjourned at 12:30 a.m. The next joint Community Development Commission and
City Council meeting is scheduled to take place on December 8, 2009 at 6:00 p.m. and 7:00 p.m.,
respectively.
Margaret dark
Mayor
ATTEST:
Gloria Molleda
City Clerk
Rosemead City Council Meeting
Minutes of November 17, 2009
Page 54 of 54
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
I, Gloria Molleda, City Clerk for the City of Rosemead, do hereby certify that the minutes
from November 17, 2009, were duly and regularly approved and adopted by the Rosemead City
Council on the 231d of February, 2010, by the following vote to wit:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
MAU
loria Molleda
City Clerk