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CC - 03-12-85MINUTES OF THE REGULAR MEETING ROSEMEAD CITY COUNCIL MARCH 12, 1985 AT 8:00 P.M. APPROVED CITY 02' ROSONIEAD DATE `1- P.l' The Regular Meeting of the Rosemead City Council was called to order by Mayor Taylor at 8:05 p. m., in the Council Chambers of City Hall, 8838 E. Valley Boulevard, Rosemead, California. The Pledge to the Flag was led by Councilman Imperial. The Invocation was delivered by Reverend Richard Acosta. ROLL CALL OF OFFICERS: Present: Councilmen Bruesch, Cleveland, Imperial, Tury and Mayor Taylor Absent: None APPROVAL OF MINUTES: FEBRUARY 26, 1985 - REGULAR MEETING Mayor Taylor recommended that the approval of the-Minutes be deferred to the next Meeting for clarification and corrections. There being no objection, it was so ordered. I. ORAL COMMUNICATIONS A. Juan Nunez, 2704 Del Mar, commented on the letter that had been printed in the paper by Butch Kelley, President of D.P. Communications. He felt that Councilman Bruesch had been made the bad guy because he spoke about the contributions made to the three incumbents during the last municipal election. Mr. Nunez stated that he felt that the contributions made by D.P. were not made.to familiarize himself with the City as he had printed; but for different reasons. He felt that Councilman Imperial would not sell his vote for the $500 contribution; however, he felt the way the contribution was made and the action taken by the Council no one will ever really know. Councilman Imperial stated that had he ever had any intention of selling his vote, he would have never asked the City Attorney for legal advice, his opinion in writing asking if that was in order or not prior to accepting a contribution. He would have never entered that contribution in on his Campaign Statements. He felt that the real concern should be if a candidate might have taken money and then not put it in the political campaign statement. Juan Nunez stated that he did not understand the statement that "Bob Bruesch had a lot of growing up to do". Mayor Taylor stated that he was the first one to constructively chastise Mr. Bruesch, and what he had said was not about what he said, but when he said it. He stated that the conversation is in the minutes verbatim and he is entitled to a copy of the minutes. He said that Mr. Bruesch had every right to say what he had to say, but the question was that it could have made a difference before the voting. Councilman Tury requested that the letter from D. P. Communi- cations be read by Mr. Tripepi, and be placed in the minutes ver- batim: Frank G. Tripepi, City Manager, read the letter from D. P. Communications. CM 3-12-85 Page #1 ICATIONS, INC. . OMM• the cable construction specialist" March 1, 1985 Ar'. V Gary Taylor, Mayor City of Rosemead 8838 Valley Boulevard Rosemead, CA 90020 Dear Mayor Taylor: Recently 1 was informed that at your regularly scheduled council meeting, on February 26, 1985, issues were raised that misrepresented facts involving my company, D. P. Communi- cations and one of the companies that I do business with, Falcon Cable TV. First of all, D. P. Communications is a company that was established a number of years ago to perform post-wiring work for the Cable industry as well as aerial and underground construction work in residential areas and multiple dwelling units. We have performed, or are performing, work in Los Angeles, Bakersfield, Kernville and Portland, Oregon, in addition to several communities served by Falcon. D. P. Communica- tions has done, or is doing, work for Communicom (formerly Sixstar), Warner Amex, Cox Cable and Falcon. Currently, we are seeking work with a number of other cable operators in various communities. I would now like to discuss the particular mis- representations that Councilman Bruesch raised at the aforementioned council meeting. First, Councilman Bruesch is totally incorrect when he stated that D. P. Communications was Falcon's exclusive contractor. As D. P. has and is doing work for other operators, Falcon is also utilizing a variety of contractors to perform construction and installation work. Second, D. P. Communications did make contributions to incumbents running for re-election in the City of Rosemead. These contributions were made voluntarily and disclosed pursuant to the laws of California. There was nothing legally or morally wrong in what my company did. It is important to remember that for many months prior to the election the City of Rosemead was considering municipal ownership. If the City had gone the way of municipal ownership, it would have meant that the City staff and Council would have selected contrac- tors for the system. Therefore, I felt it was important for me and D. P. Communications to become involved in the process in order that we could give name identification and good will. This was the sole reason for our involvement. I believe that the manner in which Councilman Bruesch conducted himself was malicious and inconsistent with the position of responsibility that he holds in the Community. I have taken the time to respond to the issues even though 1 did not have to. I have been candid, direct and open with you as is my nature. I would now hope that your collegue will publicly rescind his erroneous comments, not only to re-establish some of his own credibility, but also to re-establish the credibility of the whole council and to set the record straight for the community. I thank you for your time and I hope that the good name of your City, of D. P. communica- tions and of Falcon will not be greatly tarnished by one person's negligent act. Respectfully, D. P. COMMUNICATIONS f President BK:egb cc: Tom LaFourcade, Falcon Communications Frank Tripepi, City Manager Robert Kress, City Attorney Bruce Bunker, Attorney at Law CM 3-12-85 Page N2 0 • B. Elizabeth Mata, 8724 De Adalena, stated that D. P. Communications could have gotten name identification in other ways other than contributing $1500 to three incumbents, and felt that joining the Chamber of Commerce would have been much cheaper. She stated that she was sure that there was nothing dishonest in the incumbents intentions in taking the donation; but she did not think it looked good. II. PUBLIC HEARING TO DISCUSS CITY'S 1985-86 APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS Mayor Taylor stated that the Public Hearing was open and inquired if there was anyone in the audience who would care to speak regarding this matter. No one came forward, and the Public Hearing was closed. MOTION BY COUNCILMAN TURY, that the 1985-86 CDBG Program as resulted: AYES: Councilmen Bruesch, NAYES: Mayor Taylor ABSENT: None ABSTAIN: None SECONDED BY COUNCILMAN IMPERIAL presented be approved. Vote Cleveland, Imperial and Tury Whereupon the Mayor declared said motion duly carried and so ordered. Mayor Taylor stated that his "no" vote was that he does not agree with the larger distributions. He felt that the $2000 Handyman program has reached approximately 125 residents, and when $15,000 or more are tied up in specialized loans it doesn't reach as many people. Councilman Bruesch requested a list of the programs which may be affected by Federal cut-backs so that when the budget for the next fiscal year is being decided the information would be available to study. Councilman Tury stated that he had asked for a tentative budget without the Revenue Sharing, since most of it will pro- bably be lost. III. LEGISLATIVE A. RESOLUTION NO. 85-10 - CLAIMS & DEMANDS RESOLUTION NO. 85-10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ALLOWING CERTAIN CLAIMS & DEMANDS IN THE SUM OF $592,740.75 NUMBERED 9301-9313/ 13482 THROUGH 13596 INCLUSIVELY MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN CLEVELAND that Resolution No. 85-10 be adopted. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. Councilman Bruesch inquired about a memo received regard- ing a class that an instructor taught and who had received well over the amount paid to other instructors. He wanted to know how many people were involved in those classes and how many classes were taught for that amount of money. Michael Burbank, Park &'Recreation Director, stated that this was a computer class and computer instructors are paid a higher fee. CM 3-12-85 Page N3 0 • IV. CONSENT CALENDAR Mayor Taylor requested that the Consent Calendar be taken item by item. CC-A APPROVAL OF THE COMMUNITY TRANSIT SERVICES AGREEMENT MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN BRUESCH that the hours of the Dial-A-Ride be annually increased 365 hours to provide service from 6:00 a. m. to 7:00 p. m. and an additional $5,953 be transferred from Proposition A Reserves to fund the additional service hours, and the agreement with Community Transit Services be signed effective April 15, 1985. Vote resulted: AYES: Councilmen Bruesch, Cleveland, Imperial and Tury NAYES: Mayor Taylor ABSENT: None ABSTAIN: None Whereupon the Mayor declared said motion duly carried and so ordered. Mayor Taylor requested that the record show that his objec- tion was stated in the minutes of the meeting of February 26th. CC-B AUTHORIZATION TO ATTEND 26TH ANNUAL CCCA CONFERENCE IN PALM SPRINGS, MAY 30 THRU JUNE 2, 1985 MOTION BY COUNCILMAN CLEVELAND, SECONDED BY COUNCILMAN BRUESCH that authorization to attend the 26th Annual CCCA Con- ference in Palm Springs, May 30 through June 2, 1985 be granted. Vote resulted: AYES: Councilmen Bruesch, Cleveland, Imperial, and Tury NAYES: Mayor Taylor ABSENT: None ABSTAIN: None Whereupon the Mayor declared said motion duly carried and so ordered. CC-C REQUEST BY ROSEMEAD CHAMBER OF COMMERCE TO USE ROSEMEAD PARK FOR CIRCUS VARGUS, APRIL 12-15, 1985 AND FEES BE WAIVED. Mayor Taylor inquired of the City Attorney regarding the waiving of the fees, and inquired what organizations within the City had the fees waived? Robert Kress, City Attorney stated that the Council has the right to set those fees and the Council has the right to waive them so long as the Council is not discriminatory in how the waivers.are applied. He did not know of very many requests for fee waivers that have been made. He stated that he would give another copy of the memorandum which covers that issue to the Council. MOTION BY COUNCILMAN IMPERIAL, SECONDED BY COUNCILMAN CLEVELAND that Rosemead Park be used for the Circus Vargus and the fees be waived. Vote'resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. CC-D CLAIM AGAINST THE CITY ON BEHALF OF MARGARITA MARTINEZ MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN IMPERIAL that the claim against the City on behalf of Margarita Martinez be rejected. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. Councilman Bruesch inquired if those rugs involved in the claim have been removed or if they are still being used in the Community Center? Michael Burbank stated that they are still being used. CM 3-12-85 Page N4 CC-E AWARD OF HOME IMPROVEMENT PACKAGE--DEFERRED LOANS MOTION BY COUNCILMAN'IMPERIAL, SECONDED BY COUNCILMAN CLEVELAND that the bid for home improvements for 2540 Dubonnet be awarded to Leeman Construction and the bid for home improve- ments for 8850 Guess Street be awarded to LPZ Construction which were the low bidders. Vote resulted: AYES: Councilmen Bruesch, Cleveland, Imperial, and Tury NAYES: Mayor Taylor ABSENT: None ABSTAIN: None Whereupon the Mayor declared said motion duly carried and so ordered. Mayor Taylor requested that the record show that his "no" vote was not against the individual, but against the funding. These are the $15,000 loans which was part of the CDBG applica- tion which the Council took action on earlier in the evening. CC-F AWARD OF CONTRACT FOR TRAFFIC SIGNAL MODIFICATION ON VALLEY BOULEVARD AT WALNUT GROVE, MISSION & RIO HONDO MOTION BY COUNCILMAN IMPERIAL, SECONDED BY COUNCILMAN TURY that the Contract for the Traffic Signal Modification on Valley Boulevard at Walnut Grove, Mission and Rio Hondo be awarded to S & W Electrical Contractors. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly'carried and so ordered. V. MATTERS FOR DISCUSSION & ACTION A. Carol Hoffman, Consultant to Interstate Consolidated Industries, owners of Rosemead Square, expressed her appreciation for the opportunity to present phase N1 of the Rosemead Square expansion which is being proposed. She stated that at a meeting with the Council about six months ago, interest to the Council was expressed in revitalizing the shopping center and plans to go forward were indicated at that time. She added that part of that discussion was a request by the Council that ICI contact the major tenants of the shopping center, namely, Montgomery Wards, Cafe Rosemead, the bank, Thrifty and the theatre and gain an understanding of their position on ICI proposed plans. She stated that after talking to Montgomery Wards,they suggested that their architect be used, and their architect has been hired, and $20,000 has been spent conducting alternative analysis on the center. Montgomery Ward also stated that the TBA should stay and be a permanent part of the shopping center and thereby eliminating one component of the original plan. They also in- formed ICI that the second floor which until recently had been vacant was going to be completely occupied by their telemarket- ing personnel, and will place an additional restriction on the revitalization of this center. They also indicated grave con- cern over the addition of,a Super Market to the shopping center. Security Pacific Bank has a long enough lease that it becomes unrealistic to consider relocation. The Theatre has indicated a desire to expand on-site and.she felt that there was a market for more than 4 theatres;,however, they are currently unable to negotiate a deal with tW theatre that would allow the expansion on-site. They have an 11 year lease. Ralphs Market and others are very interested in the center, but the space that is required is very expensive to provide. She stated that super markets pay very low rent since they don't have to be in a shopping center with freeway exposure. They are interested in the location because of the type of population in the area and because of the lack of good super markets; however, they do not pay the rent that the price of this property justifies. The existing buildings have a rental value of 20% more than a market will pay under the cur- rent conditions, and in addition a building would have to be built for them of the size to accomodate current market standards. which is about 40,000 square feet. Markets also restrict the ability of the developer to add any peripheral buildings. She felt that it was important that the Council realize that in making a decision to proceed with a Super Market, it does impose constraints. CM 3-12-85 Page #5 0 • Carol Hoffman continues that Cafe Rosemead is owned by Tiny Naylors, and they have no desire to relocate or expand, and what they really want to do is be bought out at a price of $1,000,000. Mayor Taylor inquired how long their lease was. Carol Hoffman stated that it was for 25 years. She stated that Love's Restaurant was just purchased by a new franchisee, and that changed the value of that restaurant and will have to stay in its current location and configuration. and thereby limit- ing the kind of changes that can take place in that area of the shopping center. She stated that they have met with Caltrans regarding revisions to the off-ramp at Rosemead and Glendon Way, and a number of alternatives are being examined to try to help the City deal with the inadequate access to the center and con- fusing freeway access. She added that Caltrans was most interested in helping them work toward a solution in that area, but they have no funds in their budget to affect that kind of a solution, and this kind of ---solution would become the responsibility of the. developer and/or the City to fund the cost for these kinds of improvements. She stated that both the original architect and the architect sug- gested by Montgomery Ward recommended that a strong entry state- ment be established.in the vicinity of Glendon Way and Rosemead Boulevard. The service station which is on that corner is not currently under the ownership of ICI. It is owned by an oil com- pany. She felt that it was very important to have control over that parcel in order to create a sense of quality activity in this center. This research over the past six months has led them to one conclusion, and she stated that without some assistance from the,City, the project is not what was envisioned six months ago. She requested the cooperation of.the City to have the kinds of uses and changes necessary to have the kind of center that had been planned. Mayor Taylor requested more information on the types of build- ings, and the square footage that is being discussed and the tenants that would be going in, which would be an offset between the income from Tiny Naylors or Cafe Rosemead and.the Texaco Gas Station. He stated that he could not arbitrarily say to one tenant,you go and to another that you stay. Carol Hoffman stated that this is merely one proposal and is only the beginning.of a discussion, and they really want the Council's ideas on how they could and should proceed; however, she stated that there are a lot of decisions that the City will have to help us make if they want us to proceed on the property. Such as how important a Super Market is. Councilman Imperial stated that he was very impressed with this developer because for.the first time since he has been on the City Council, has a developer come in and bought a piece of property and decided what he wanted to do with it and then came to the City instead of as in the past a developer has come to the City stating his interest in a piece of property and asking what the City can do to help. He added that this showed him that the developer was here to do the best they could not only for themselves but for the City. He felt that with.an area that is deteriorating not only on Valley Blvd.; Garvey and on San Gabriel, and with the Mall that is going in, the City could very well see a blighted area a lot sooner than is thought at the Montgomery Ward Shopping Center. He felt that ICI is not telling the Council what it has to do, only being asked for help, because they are not able to do it alone. Councilman Bruesch stated that he was impressed with the developer also, and he inquired what the ultimate purpose of the Montgomery Ward Mall would be, and hoped that it would be a ser- vice to the community and wondered if people would stop by on the way to the Montebello Shopping Mall. Councilman Tury stated that he did feel that people would drive a distance to come to a Wards and it is one of the few around. He inquired of Ms. Hoffman if phase kl were to be done would that include some modernization and cleaning up of some existing buildings to make it look reasonably nice? CM 3-12-85 Page N6 • Carol Hoffman stated that their intent is to continue to maintain and improve the landscaping in the center. She stated that they want the rest of the center to function while construc- tion is taking place in the first phase and working onthe planning that would bring about the rest of it. She stated that they could go in-and paint the front of the building and lease the stores and there would be about the same amount of income that is being re- ceived from them now, with a little less vandalism, but their pre- liminary fiscal analysis is saying that while that would be a solu- tion for ICI, it would not be the best solution for the City. Mayor Taylor stated that what is being discussed now is the displacement of two tenants, the restaurant and the gas station. Ms. Hoffman stated that to conduct the first phase in this manner that is what would be required. Councilman Tury requested the Sales Tax revenue for the past eight years from the Montgomery Wards Center to see if there is a problem arising. He felt that the City owes it to the developer to see what the potentials are for helping them and what alterna- tives that the City has, and asked what types of stores are being contemplated in that first phase. Carol Hoffman stated that they would be mixed retail uses. The restaurant in terms of the volume of sales that are occuring on the space that it uses is very low for the value of the land. She felt that retail uses will substantially increase the property value as well as the kind of sales tax revenues that would be coming in. She added that the Service Station is actually a de- tractor from retail uses that could be located on the northern part. She stated that the opportunities that exist in there are really quite broad, but they would be basic retail uses. Mayor Taylor stated that he felt that it would be appropriate if a proposal could be presented stating the problems with the gas station and with the restaurant. He stated that he had no hesitation switching them.within the center, but to condemn them out of business he did have a problem Carol Hoffman stated that they would outline'those provisions of the Redevelopment Law which they may wish to include in this plan and those requirements that would be applied, those aspects that they would want to utilize in order to proceed on this phase. She stated that it was not their intention to get rid of a good producer, but a lot of money was paid for the property and if it is going to be improved rents are going to go up. Frank G. Tripepi, City Manager, stated that the additional information that he wanted to.see was an analysis of what is to be in that first phase relative to the retail shops. He stated that he had a good handle on.the Sales Tax productions in the State of California and can make a good comparison based on the industry code that the owner decides to put in there. He also thought it would be good to have the sales tax comparison of Tiny Naylors and the Gas Station which staff will put together. Carol Hoffman stated that they would be happy to provide that information. Councilman Imperial requested that staff get together.with the City of E1 Monte and see what kind of information is available on the rise and fall of the Sears in their City. Information re- garding their prime and how long it took to go down and he wanted to see if this would have any bearing on what is happening at Rosemead Square. Councilman Tury reiterated that the staff look into what tools the City has to look at in this instance, and try to be, creative and see what can be done. Councilman Bruesch stated that since this will have an impact on the community, he hoped that the widest cross-section of the community will have ample opportunity to imput on their desires. CM 3-12-85 Page #7 Councilman Cleveland stated that without some indication on the part of the Council, it looks like it would be foolish for the developers to go through a lot of expense trying to improve or show plans that may or may not be accepted by the Council. He felt that indications should be shown that the Council is definitely interested in the progress of this center and indicate to the developers that the Council will assist them in every way we possibly can. Mayor Taylor stated that he would not indicate that he would assist them in every possible way because the Redevelop- ment Law as Ms. Hoffman stated allows the right of first refusal is the primary statement. It gives total condemnation rights. He could not say that he would condemn Texaco Gas Station or Cafe Rosemead, and he stated that it was out of line from his standpoint. He stated that six months ago there were five pro- blems that needed to be resolved, and now Montgomery Wards will cooperate, and primarily it has come down to the gas station and Cafe Rosemead. He stated that they really have not been resolved only been put on the back burner. He stated that he could not make a committment tonight. Councilman Tury stated that they are not looking for a committment tonight only to look at what their problems are and what has been done and the chances are for solving their problems, and are we interested in helping them solve their problems, and what are we willing to do for what we want. Carol Hoffman stated that what she had come to say was that problems have become very clear to them; however, they are still excited about the prospect of developing this location, and they feel that this is an opportunity for the City and are hoping to develop information together that would be of interest to the City Council as well as the developer. Mayor Taylor stated that he felt that there had been pro- gress made with the accomplishment of the cooperation between Montgomery Wards and the developer.and all this has been done without the threat of condemnation. It may not be the fastest way, but he felt that it is the fairest way. He stated that the City is here to help in a reasonable way. , Councilman Tury stated that doing it this way does.build a strong case for some very tough decisions that may have to be made. Mayor Taylor stated that he did not feel that one or two tenants in there should be able to deny the entire project, but if they are worthwhile business they should not be condemned. He requested that the proposal be presented and have each step listed of what has to be done, and he stated that the Council will work with her. Councilman Tury stated that when the chips are down, this Council will come together and work together. This has always been done in the past and will continue. Councilman Imperial stated this was a committment from this Council to work with her to try to resolve the problems, and he inquired if that was what she had wanted from the Council tonight. Ms. Hoffman stated that it was, and thanked everyone. VI. ORAL COMMUNICATIONS A. Juan Nunez, 270:4 Del Mar, questioned if Ms. Hoffman meant that if the City worked with them, they could go back and present..it to the people in their properties then they would have more leverage. Mayor Taylor stated that there are many ways that the City can work with the developers, such as the Hart Street condemnation. The C .tg`can.. also help with a reasonable relocation of businesses that are trying to provide for the benefit of this community.. There are ways to help-,without condemnation. CM 3-12-85 Page #8 B. Bonnie Culbertson, Manager of the Rosemead Chamber of Commerce, thanked the Council for the approval of the use of the Park for the Circus Vargus. She presented the City Council with the new City Map. Mayor Taylor thanked her. VI. MATTERS FROM OFFICIALS A. Councilman Tury stated that the chair that broke during the Meeting be fixed before someone gets.hurt. B. Councilman Bruesch commented that he would stick with his statement regarding the D.P. Communications contribution be- cause it is a philosophic conviction of his,. and it gave the reason for his vote. C. Frank G. Tripepi, City Manager, stated that Montgomery Wards has definitely converted the second floor to tele-marketing, and the staff met with the Board of Equalizations in Sacramento last week. He stated that it was a tricky entry system for them and he wanted to make sure that the City gets proper credit for the Sales Tax generated through tele-marketing sales which is are nothing more than catalogued by phone. Frank G. Tripepi, City Manager, also stated that Senator Campbell has introduced the non-property tax sharing bill in Sacramento and it has approximately 18 co-authors in the bill, which is SB 1091. He stated that there are 31 cities in the State of California out of 484 that right now do not get a share of the property tax. The County of Los Angeles, last year, had a growth of $1,700,000, and he commented that they get over a billion dollars from property tax. He stated that what is being proposed is to take an $18,000,000 share from the County of L. A. and spread it throughout the twenty cities in L. A. County and that would represent a little more than 10% of their total gross: for one year. He felt that they would object, and he added that a meeting would be set up to meet with Supervisor Schabarum to see where he would stand on this issue. He added that if this is approved, the City would acquire about $790,000. There being no further business to handle, the Council Meet- ing was adjourned to next Tuesday night, March 19, 1985 at 8:00 p. m. for a Meeting with the Garvey School District Board. Respectfully submitted: City Merk APPROVED: MAYOR CM 3-12-85 Page #9