Loading...
CC - Item 9A - Minutes 6-22-10Community Development Commission, Financing Authority, Housing Development Corporation, and City Council Regular Meeting June 22, 2010 The regular meeting of the Rosemead Community Development Commission, Financing Authority, Housing Development Corporation and City Council was called to order by Mayor Taylor at 6:00 p.m. in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California, FLAG SALUTE: Commissioner/Council Member Sandra Armenta INVOCATION: Commissioner/Council Member Margaret Clark PRESENT: Chair/ Presidentl Mayor Taylor, Vice-Chair/ Vice-President/ Mayor Pro Tern Ly, Commissioner/ Board Members/ Directors/ Council Members Armenta, Clark and Low STAFF PRESENT: City Manager Allred, City Attorney Montes, Community Development Director Wong, 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. ORDINANCES BY TITLE ONLY By motion, unanimously adopted, the City Attorney shall be instructed to read by title only all resolutions and ordinances appearing on this agenda which are required by law to be read in their Mayor Pro Tern Steven Ly made a motion, seconded by Council Member Sandra Armenta, to approve Ordinances by Title Only. Vote resulted in: Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None Absent: None 2. PUBLIC COMMENTS FROM THE AUDIENCE - None Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 1 of 22 ITEM NO. qA ~ 3. COMMISSIONICORPORATION CONSENT CALENDAR A. Community Development Commission Claims and Demands Resolution No. 2010 - 20 Recommendation: to approve Resolution No. 2010 - 20, entitled: RESOLUTION NO. 2010 - 20 FOR PAYMENT OF COMMISSION EXPENDITURES IN THE AMOUNT OF $51,263.80 DEMAND NOS. 10087 AND NOS. 11280 THROUGH 11286. Rosemead Housing Development Corporation Claims and Demands Resolution No. 2010 - 02 Recommendation: to approve Resolution No, 2010 - 02, entitled: A RESOLUTION OF THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF $496,361.00 DEMANDS NO. 1509 THROUGH 1520 Mayor Pro Tern Steven Ly made a motion, seconded by Council Member Sandra Armenta, to approve Commission/ Corporation Consent Calendar. Vote resulted in: Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None Absent: None 4. Matters from City Manager/Executive Director and Staff A. Receive and File Contract for Synthetic Track Construction at Rosemead High School Community Development Commission and El Monte Union High School District (District) a Memorandum of Understanding for the construction of a synthetic track at Rosemead School. The District is responsible for taking the lead on the project which includes ing the project scope, issuing a request for proposal, and making a contractor selection. In order to ensure that the best contractor was selected, the District issued a Request for Qualifications and interviewed a number of construction firms interested in the project. The City Manager was on the interview panel which reviewed all of the proposals. Based on this process the District selected Ohno Construction Company and entered into exclusive negotiations with them regarding the final cost and scope of the project. From these negotiations, a complete contract scope was developed and a Guaranteed Maximum Price was agree upon. The Guaranteed Maximum Price of $1,077,550.65 is well below the Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 2 of 22 original $1.2 million estimate and the Commission's portion of the project will be $646,530.39. It is anticipated that the project will conclude in late August or early September for the start of the 2010-11 school year. Recommendation: That the Community Development Commission receive and file the Facility Lease and Site Lease agreements that the District has executed to effect the construction of capital improvement projects pursuant to the State Education Code. City Manager Allred reviewed staff report. Mayor Pro Tem Ly asked why the School District asked for a City Manager Allred explained the School District asked for Qualifications because an RFQ asks for more detailed infor Mayor Pro Tem Ly asked that in the future he'd prefer require a dollar amount shown and could inflate cost. uest for Qualifications. - Request for Proposals and for qualifications of the potential bidders, because an RFQ does not Council Member Low inquired if the School District did not require an RFP from bidders. City Attorney Montes explained that there is a section on the education code that allows a School District to do a lease on lease back transaction and if the deal is performed in that manner, and the contractor improves the site and leases it back to the school; the school retains the underlying ownership the entire time. Under the educational code they are not required to bid on the project and are allowed to negotiate with a selected developer. The School District also did a RFQ/P process to identify a qualified developer and then proceeded with a panel to select and define the total cost and then award a contract. City Manager Allred added that the contract is awarded based on the dollar proposals that were submitted by the contractors. er Armenta made a motion, seconded by Council Member Clark to receive and file the and Site Lease agreements. Vote resulted in: Armenta, Clark, Low, Ly Mayor Taylor stated he voted no, because he has been opposed to the project because it comes down to a $1.1 million cost; Mr. Taylor felt it was inappropriate to put in money for rubberized tracks when there are school districts not doing well. Council Member Clark explained that the money was from bond proceeds and cannot be used for salaries and can only be used for improvements. Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 3 of 22 Council Member Low reiterated that the project has already been approved and that Council was only voting to receive and file the document. B. Sale of 2010A Tax Increment Bonds for Public Infrastructure Projects On April 13, 2010 the Commission approved the financing team and authorized the development of the necessary documents and financial analysis to issue tax-exempt bonds of the CDC in the amount of $10.76 million resulting in net proceeds of approximately $9.6 million. Over the past three months the financing team has worked to develop the best possible package for the bond issuance. This process has included a fiscal analysis of the merged project area, the development of the Additional Bonds Test (ABT), creation of the Preliminary Official Statement (POS), the necessary resolutions, and a credit rating presentation to Standard and Poor's (S&P). The debt service for the bonds will be paid with tax increment revenues from the existing property tax levy. Therefore, no additional taxes or assessments will be levied on residents or businesses. Recommendation: That the City Council take the following approve Resolution No. 2010- 44, entitled: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD APPROVING THE ISSUANCE AND SALE OF NOT TO EXCEED $12,000,000 AGGREGATE PRINCIPAL AMOUNT OF ROSEMEAD COMMUNITY DEVELOPMENT COMMISSIOI MERGED REDEVELOPMENT PROJECT, TAX ALLOCATION BONDS, SERIES 2010A Additional Recommendation: That the Community Development Commission take the following actions: 1. Approve Resolution No. CDC 2010-21, entitled: RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $12,000,000 OF THE COMMISSION'S MERGED REDEVELOPMENT PROJECT TAX ALLOCATION BONDS, SERIES 2010A AND THE EXECUTION AND DELIVERY OF AN INDENTURE, A PURCHASE CONTRACT, A CONTINUING DISCLOSURE AGREEMENT AND AN OFFICIAL STATEMENT, AND APPROVING A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION THEREWITH AN AUTHORIZING RELATED ACTIONS 2. Authorize the execution of the Preliminary Official Statement, Continuing Disclosure Agreement, Bond Purchase Agreement, and certain other related documents, and authorizing actions related thereto, Rosemead City Council, Community Development Commission, Financing Authority and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 4 of 22 Further Recommendation: That the Financing Authority approve Resolution No. FA 2010- 02, entitled: A RESOLUTION OF THE ROSEMEAD FINANCING AUTHORITY AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE CONTRACT BY AND AMONG THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION, THE ROSEMEAD FINANCING AUTHORITY AND THE UNDERWRITER NAMED THEREIN AND ACTION RELATED THERETO Assistant City Manager Hawkesworth review staff report. Juan Nunez - expressed concern that he did not understand that Cities and School Districts are in hock, laying off people and spending money on a track. Mayor Taylor explained that the bond issues that Council Member Clark referred to had to be spent on capital improvement projects and it's not for employee expenses. Mr. Nunez also inquired about the fiscal analysis merger on the project areas, if they were bringing in money and no additional taxes would be increased on businesses and residents. Mayor Taylor explained that it's on the contract, and its tax increment money that is pledged; there can't be a lien against the City or the State; it's primarily pledge tax revenues if they drop then that is another problem. Mr. Nunez asked about the property auto auction. City Manager Allred explained even though the property is vacant, the property still has an owner who has to pay property taxes. Mayor Taylor asked what property taxes the city receives. City Manager Allred stated that the property taxes go to the Redevelopment Agency. Assistant City Manager Hawkesworth explained that the city received 0.06 percent of the 1 percent from a regular property tax. But if we are talking about properties in the project area, than the city receives more within the proiect area. Mayor Pro Tom Ly referred to a report of the top ten owners in the project area and stated that there were some businesses he has never heard of and would like a report on who owns those properties in the City. Mayor Taylor asked about the annual county property tax audit and what is the official date of that transaction and when the new tax rules come out, Council was asked to approve this before July 1St; is that the cut off date when the County brings out the new assessments. Assistant City Manager Hawkesworth replied it's that usually the last week of July or the first week of August when the County issues the assessments. Rosemead City Coundl, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 5 of 22 Mayor Taylor expressed concern that we go out before the new assessment rules come out. Mr. Taylor reiterated that for the next three years it's going to hit the commercial market. Assistant City Manager Hawkesworth stated that during the meeting with the bond counsel regarding the recession discussion, it was discussed that there is a concern regarding that very same thing. Reiterated that economists believe the impact may not be near from what the residential got hit with. Mayor Taylor replied in general they are going to tell us the optimistic side. Assistant City Manager Hawkesworth stated that is why we are required through this issuance that we hire a fiscal consultant. They will look deep into the property tax and what's going on. Mayor Taylor stated that the table of contents on the list of appendix A, Fiscal Consultants Reports was not included. Assistant City Manager Hawkesworth replied the fiscal report will be part of the final Official Statement when the bonds are actually sold. The Fiscal Consultant Report is not required to be approved. Mayor Taylor expressed concern because the fiscal report is mentioned in several sections and it was not included. Bond Counsel Kevin Hail -stated that the fiscal report was in draft form when the agenda packets were assembled and has been finalized today. It is an important document because it's where the City has hired an expert to speak in these matters such as economic metric, assessors information, commercial taxes, etc... taken there is not particular position that the fiscal consultant has on that fact. He has been in contact with the the assessor's office; the City has been fairly conservative with structure of its financing. The coverage factor is the access of available revenues that goes to pay for bonds has really considered the potential for that decline. Mr. Hail submitted a copy of the Fiscal Consultant Report to Council and Staff. Mayor Taylor stated that he will vote no because the fiscal consultant report is an important document just received. The document is referred to many times and if property values do go up, it talks about alternative sources of funding. Mr. Taylor asked for an explanation of letter of credit that the City can furnish. Mr. Hail explained that the City may furnish a letter of credit in the interest of the bond reserve requirement. But there are no other expectations observed earlier that the city would look to any responsibility for the payment of this debt, but for the expectation to receive tax increment. To extent a letter of credit or its surety is a possibility, that's to answer the fact, that you could take this cash funded reserve, which is funded by proceeds of the bonds; substitute that cash and put in its place a letter of credit or another surety or insurance policy. Insurance could have been purchased for the entire deal, we are in a climate now in the liquidity and insurance market where that is not available like it was for your previous deals. You are also at a point where the rating now makes less of a necessity of that insurance. Insurance was available at a cost of a premium to answer the full principal obligation of the debt, that is no longer available and what I've been advised because of earthquake concerns there is even less of appetite to pick up insurance for California or Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 6 of 22 issuers. What staff did with the underwriter attempt to price that, they were successful, the second point of the insurance also goes to the fact of the reserve and that is another instrument that could be put in place at the cash reserve. Mayor Taylor referred to other sections that did not have reports. Mr. Hail explained that the reports on C-1 were the city's financial statements of 2009 Community Development Commission reports. Council Member Margaret Clark made a motion, seconded by Mayor Pro Tern Steven Ly, to approve the sale of 2010A Tax Increment Bonds. Vote resulted in: Yes: Armenta, Clark, Low, Ly. No: Taylor Abstain: None Absent: None Mayor Taylor reiterated his no note was because of missing documents. 5. CLOSED SESSION City Attorney Montes asked that an additional item be added to Closed Session Item B. Council Member Polly Low made a motion, second by Council Member Armenta to add an item to Closed Session Item B. Vote resulted in: Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None to Closed Session at A. Conference with Leaal Counsel ence with Legal Counsel - Existing Litigation of Case: Haro v. City of Rosemead B. Conference with Labor Negotiator Government Code Section 54957.6; Negotiator for the City: City Manager Jeff Allred and Human Resources Manager Su Tan Employee Unit: Rosemead Employees Association Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 7 of 22 City Council reconvened at 7:09 p.m. City Attorney Montes announce out of Closes Session that the Haro vs. City case had been settled in the amount of $72,500. City Council Regular Meeting The regular meeting of the Rosemead City Community Development Commission, Financing Authority, Housing Development Corporation and City Council was called to order by Mayor Taylor at 7:09 p.m. in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California. FLAG SALUTE: Council Member Sandra Armenta INVOCATION: Council Member Margaret Clark PRESENT: Mayor Taylor, Mayor Pro Tern Ly, Council Members Armenta, Clark and Low STAFF PRESENT: City Manager Allred, City Attorney Montes, Community Development Director Wong, 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 6. PRESENTATION • Science Olympiad Team Recognition Presentation item was moved to a later time during the meeting. 7. PUBLIC COMMENTS FROM THE AUDIENCE Brian Lewin - expressed concern with the Rosemead Park jogging trail. Mr. Lewin requested to possibly add resting benches along the jogging trail. Mayor Pro Tem Ly asked if there were specific locations where benches would be best. Mr. Lewin stated that it would be best in places where there is open space and there are no picnic benches nearby. Council Member Low asked staff to take a look and bring back a recommendation, Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 8 of 22 8. CITY COUNCIL CONSENT CALENDAR A. Minutes May 11, 2010 - Regular Meeting June 8, 2010 - Regular Meeting B. Claims and Demands Resolution No. 2010 - 42 Recommendation: to approve Resolution No. 2010 - 42, entitled: RESOLUTION NO. 2010 - 42, FOR PAYMENT OF CITY EXPENDITURES IN THE AMOUNT OF $1,025,916.60 NUMBERED 100865 THROUGH 100880 AND 69973 AND 70112, INCLUSIVELY. C. Approval of Fireworks Stand Locations A list is before Council of 16 applicants who have requested permits to sell fireworks, including their stand locations. All deposits have been received and certificates of insurance are on file. Recommendation: That the City Council approve the list of applicants and their stand locations and waive any electrical fees. D. Application for Used Oil Recycling Block Grant Funding The California Oil Recycling Enhancement Act of 1991 authorizes the Department of Resources Recycling and Recovery (CalRecycle), formerly the California Integrated Waste Management Board (CIWMB), to award grants to enhance the collection and recycling of used lubricating oil. Rosemead is eligible to apply under the sixteenth funding cycle of this program, for the 2010-2011 fiscal year. It is anticipated that these grant funds will be utilized for the promotion of the City's State-certificate collection centers, continue development of education awareness materials, and assistance in the recruitment of additional collection facilities. Recommendation: That the City Council approve Resolution No. 2010-43, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) UNDER THE USED OIL PAYMENT PROGRAM (OPP) FCR FISCAL YEAR 2010.2011 Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 9 of 22 E. Annual 2009-10 Slurry Seal Project - Award Contract As part of the City's Fiscal Year 2009-10 Capital Improvement Program, the City Council approved a program entitled, "Targeted Public Works Projects", which consists of public improvements to the City's local streets and public right-of-way areas. This project will help extend the life of local streets and improve community aesthetics. . Recommendation: That the City Council: 1. Approve plans and specifications for this improvement project; 2. Authorize the City Manager to enter into a contract with American Asphalt South, Inc. for the Annual 2009-10 Slurry Seal Project in the amount of $214,640.60; and 3. Establish an amount of 10% of the contract amount ($21,464.06), as a contingency, to cover the potential cost of unforeseen site conditions. Mayor Taylor asked for corrections to be from the City Council meeting to attend the Mayor Pro Tern Ly stated there were c and on the Minutes of June 8th, page 4. Council Member the Consent Cali Yes: Absent: made on the June 81h minutes, in which Ms. Clark was excused National League of Cities Conference. imatical corrections made on the minutes of May 11th, page 19 motion, seconded by Mayor Pro Tem Steven Ly to approve ON of Items F and G. Vote resulted in: F. Safe Routes to School Project - Award Contract As part of the City's Fiscal Year 2009-10 Capital Improvement Program, the City Council Recommendation: That the City Council: approved a program titled, "Neighborhood Traffic Safety Improvements", which involves traffic safety and calming enhancements at four (4) local schools: Rosemead High School, Encinita Elementary School, Muscatel Junior High School and Savannah Elementary School. The bulk of this project is funded through the State of California Safe Routes to School Program, with a grant of $499.000. 1. Approve plans and specifications for the improvement project; Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 10 of 22 2. Authorize the City Manager to enter into a contract with Freeway Electric, Inc. for the Safe Route to School Project in the amount of $568,463; 3. Establish an amount of approximately 10% of the contract cost ($56,850), as a contingency, to cover the potential cost of unforeseen site conditions. 4. Appropriate $126,313 in gas tax funds to cover the City's requirement to provide matching funds for this project in accordance with the State of California Safe Routes to School grant program. Mayor Pro Tem Ly asked what the rationale was on the Engineers estimate for the project; if the lowest bidder was $70,000 higher from the estimate. Public Works Director Marcarello stated that as part of the grant award, the city was required by CalTrans to include a specification for a bolt belt which would be the first time the City did one and therefore, there was an error with that estimation. Mr. Lewin - thanked staff for getting the money for the project to be done. Council MemberArmenta inquired about the project, that Jansen Elementary and Shuey Elementary do not have any Safe Routes to School improvements and they are within the radius. Public Works Director Marcarello explained that the initial grant application did include more improvements; however, there were cut backs on funds and staff were required to identify the most highly intensive locations. If there is additional work that needs to be done in other areas, staff can identify through the Traffic Commission. Mayor Pro Tern Steven Ly made a motion, seconded by Council Member Polly Low to enter into a contract with Freeway Electric and other staff recommendations: Vote resulted in: Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None Absent: None G. Proposed Underground District Project - Walnut Grove Avenue - Rule 20A Rule 20A was developed to carry out a California Public Utility Commission (PUC) decision to encourage local governments to underground overhead electric facilities. The program requires public utility companies to set aside funds on a regular basis for undergrounding of existing overhead facilities. To qualify a project for Rule 20A funding, a city is required to determine that undergrounding of the subject overhead facilities will be in the general public's interest and also create an underground district. The City of Rosemead has an Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 11 of 22 approximate current cumulative balance of $1.5 million on deposit with Southern California Edison (SCE), with a continuing annual allowance of $170,459. Recommendation: That the City Council authorize staff to begin the process of establishing an underground utility district, as per the Rosemead Municipal Code, RMC 13.20. The proposed project will include Walnut Grove Avenue from Marshall Avenue to Valley Boulevard and be administered by SCE with completion anticipated within approximately three years. Juan Nunez inquired about the underground utility district proposed for City Manager Allred explained that the electrical overhead and electric north of Marshall to Valley Boulevard. underground from Mr. Nunez - asked if it would be high tension wires. City Manager Allred clarified that it would be the electrical wires that go across the street and not the transmission lines. Council Member Low asked if the City has a plan for the next 10 to 20 years to do the underground wiring. City Manager Allred stated that the City does have a plan and it accrues about $170,000 a year that is put into an account by Southern California Edison for the City of Rosemead. As the funds accumulate to a certain level that could fund a project, staff will bring back to Council with a district for that undergrounding to occur. Council Member Low asked for explanation about the underground district, according to the staff report it started in 1973 to 1995 and stopped between then and now, what was the reason it stopped. City Manager Allred stated that staff waited for the funds to accumulate again; $170,000 a year takes a while to accumulate to be able to have a proiect and create a district. Council Member Low stated in 1995 there are four districts that were created in Del Mar Avenue, Walnut Grove and two areas in San Gabriel Boulevard. City Engineer LeBlanc responded that at $170,000 a year it takes a while to get up to a million dollars alone; it's very expensive to underground the facilities. Council Member Clark made a motion, seconded by Mayor Taylor to authorize staff to begin the process of establishing an underground utility district. Vote resulted in: Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None Absent: None Rosemead City Council, Community Development Commission. Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 12 of 22 Grove Avenue. 6. PRESENTATION Science Olympiad Team Recognition Coach Jun Lugue of Muscatel Middle school introduced the Science Olympiad Team and accepted recognitions awards. Council Member Armenta congratulated the Science Olympiad Team of Muscatel Middle School. Council Member Low thanked the coaches, parents and the students and express support for their hard work. Mayor Pro Tem Ly thanked the student and coaches for making Rosemead proud. Mayor Taylor commended the Team and Coaches for their achievements. H. Memorandum of Understanding with Rosemead Employees Association and Annual Salary and Benefits Resolutions for Full-Time Employees The City Council will consider approval of a Memorandum of Understanding (MOU) with the Rosemead Employee Association covering all General service employees, and Resolutions that detail the terms and conditions of employment for other full-time employees of the City. A major objective of the documents is "pension reform", which will reduce retirement benefits for all new hires after the July 1, 2010 effective date. The MOU and Resolutions will provide no salary cost-of-living adjustments (COLA) or increases in employee benefits. Recommendation: That the City Council: 1. Approve a Memorandum of Understanding between the City of Rosemead and the Rosemead Employee Association; 2. Adopt Resolution No. 2010-39, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING ANNUAL SALARY RANGES AND BENEFITS FOR CLASSIFICATIONS IN THE MIDDLE MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL SERVICE OF THE CITY OF ROSEMEAD 3. Adopt Resolution No. 2010-40, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING ANNUAL SALARY RANGES AND BENEFITS FOR CLASSIFICATIONS IN THE MANAGEMENT SERVICE OF THE CITY OF ROSEMEAD City Attorney Moutes clarified that the motion would include the changes brought to Council at an earlier time for resolution 2010-39. Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 13 of 22 Mayor Pro Tern Ly made a motion, seconded by Council Member Low, to approve the City of Rosemead Employee Association Memorandum of Understanding. Vote resulted in: Yes: Armenta, Clark, Low, Ly No: Taylor Abstain: None Absent: None Council Member Clark stated that council gave staff direction to work on an exceptional performance policy that will be brought back to Council. Mayor Taylor clarified the performance policy was a three-two vote to bring that back. Mr. Taylor stated that his no vote was because he had a discrepancy; He gave a document to council expressing his concerns about the expanding payroll in a rapid rate in the last four years. From 2005 to 2009 the gross payroll has gone up 135 percent. Mayor Pro Tem Ly clarified that on the three-two vote, he voted no because he was worried that by creating a new system compensation there will be problems. 9. MATTERS FROM CITY MANAGER & A. Adoption of the City of R Article XIIIB of the Constitl as Proposition 4 (the Ganr appropriations from tax soi permitted to make in any g calculate its Appropriation; fiscal year under considerE issued by review rei 2010.11 Appropriation Limit :ion of the State of California was enacted by a vote of the people Initiative) in November 1979. This law limits the level of most rces that the state and most local government entities are jen year. It also requires that annually each governmental unit Limit and adopt it by Resolution prior to the beginning of the :ion. The City of Rosemead's Appropriations Limit and e Limit were both calculated in accordance with guidelines lifornia Cities. Utilization of this approach facilitates the annual The results of these calculations are: is Limit for FY 2011 $35,057,010 is Subject to the Limit 12,870,378 ar Limit $22,186,632 That the City Council approve Resolution No. 2010-31, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ADOPTING AN APPROPRIATION LIMIT FOR THE 2010.11 FISCAL YEAR City Manager Allred review staff report. Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 14 of 22 Council Member Sandra Armenta made a motion, seconded by Council Member Polly Low to adopt the City of Rosemead's Fiscal Year 2010-11 Appropriation Limit. Vote resulted in: Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None Absent: None B. Adoption of the City of Rosemead, Rosemead Community Development Commission and Rosemead Housing Development Corporation Fiscal Year 2010.11 Annual Operating and Capital Improvement Budgets The budgets for the City, Community Development Commission and Housing Development Corporation have been combined into one comprehensive document. However, each agency's appropriation request must be authorized individually. Therefore, three resolutions are before Council for approval, one for each agency. The City of Rosemead's fiscal year 2010-11 Annual Operating and Capital Improvement Budget is as follows: Total FY 2010-11 Appropriations $43,206,300 The Rosemead Community Development Commission's fiscal year 2010-11 Annual Operation and Capital Improvement Budget is as follows: Total FY 2010-11 Appropriations $ 6,447,000 The Rosemead Housing Development Corporation's fiscal year 2010-11 Annual Budget is as follows: Total FY 2010-11 Appropriations $1,807,500 Grand Total $51,460,800 Recommendation: That the City Council approve the following resolutions: City Council Resolution No. 2010-47, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ADOPTING THE ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE 2010.11 FISCAL YEAR Community Development Commission Resolution No. 2010-22, entitled: Rosemead City Council, Community Development Commission, Financing Authority. and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 15 of 22 A RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROSEMEAD ADOPTING THE ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE 2010.11 FISCAL YEAR Housing Development Corporation Resolution No. 2010-01, entitled: A RESOLUTION OF THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION OF THE CITY OF ROSEMEAD ADOPTING THE ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE 2010-11 FISCAL YEAR City Manager Allred reviewed staff report. Mayor Taylor asked that all three budgets be approved separately. Mr. Lewin - inquired about the Oktoberfest festival and requested that Council consider retaining the event at its original scale, rather than a small version in the park. Mayor Pro Tem Ly expressed concern with part of the Oktoberfest, that the original concept it's a celebration of beer. The City works closely with non-profit organizations to have drug free events. The focus is that the City is a family oriented community and we do want to celebrate the Fall Festival. Mr. Ly stated that $20,000 allocation will still bring a very nice festival that would do Rosemead residents proud, Council Member Armenta stated that she agreed with Mr. Ly and re-assured residents that the Fall Festival cost will go down. Director of Parks and Recreation Montgomery-Scott stated, that time of year according to federal law is Hispanic Heritage month from September 15 to October 15. To have a fall event that celebrates that rich heritage which is largely represented in Rosemead make sense. Council Member Low expressed concern with the amount of money allocated for the event, is that enough for a successful event? Director of Parks and Recreation Montgomery-Scott stated staff inquired about prices and assures that there will be a good event with the $20,000 that has been allocated. Council MemberArmenta asked if the booths would be set up just like Oktoberfest. Director of Parks and Recreation Montgomery-Scott stated that there was discussion about relocating the event in the park itself because it would be more manageable for staff. Mayor Pro Tem Ly expressed that some residents were concerned with the noise from the stage when the event is on the street. Therefore, doing it on the park would not inconvenience residents who live on Mission. Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 16 of 22 Council Member Clark asked if the budget is approved, can it be brought back in case there needs to be more money added or other certain amenities. City Manager Allred replied that the council is able to amend the budget any time during the year Assistant City Manager Hawkesworth stated that the amount for the $43,236,300 which included the $30,000 for the legislative contract to make sure there are funds appropriated for the lobbyist. Mayor Pro Tem Ly stated that he was concerned with the additional money that is needed to keep Gonzalves contract. City Manager Allred stated that the city has $13,000 surplus and we are short $17,000 to cover for the contract, however, staff believes they can find $17,000 through some saving by each department. During our mid-year review we can see if there are any problems. Mayor Pro Tem Ly asked in order to approve the budget, is it only approving the $43,206,300 with the understanding that Gonzalves is back in and staff will have to try to find $17,000 to cut. Assistant City Manager Hawkesworth replied that $13,000 should 43,219,300. Council Member Armenta asked if the lobbyist can be Mayor Pro Tem Ly asked that staff bring a full Council Member Clark stated that bills out there. Ms. Clark stated that Rosemead is a contract city and ha and it's our fault for not using them. to the budget which will be to month contract. the services they provide to the City. needs to get more proactive because there are some real bad not want to fully rely on League of California Cities because ent focus. A lot of the clients of the Gonzalves are contract cities in the budget was going towards to lobbyist. Mayor Pro Tom Ly reiterated back. add the additional $13,000 to the budget and have staff bring Mayor Pro Tern Steven Ly made a motion, second Council Member Polly Low to approve Resolution 2010-47, Rosemead City Fiscal Year 2010-11 Annual Operating and Capital Improvement Budget of $43,219,300.Vote resulted in: Yes: Armenta, Clark, Low, Ly No: Taylor Abstain: None Absent: None Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 17 of 22 Mayor Pro Tern Steven Ly made a motion, second Council Member Sandra Armenta to approve Resolution 2010-22, Rosemead Community Development Commission Fiscal Year 2010-11 Annual Operating and Capital Improvement Budget of $6,447,000. Vote resulted in: Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None Absent: None Mayor Pro Tern Steven Ly made a motion, second Council Member Polly Low to approve Resolution 2010-01, Rosemead Housing Development Corporation Fiscal Year 2010.11 Annual Operating and Capital Improvement Budget of $1,807,500. Vote resulted in: Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None Absent: None C. Community Development/Planning Fee Schedule for FY 2010-11 The City provides various individualized services (i.e. inspections, permits, variances, etc.) that are not of general benefit. Historically, many of these services have been provided at a cost greater than the price being charged for them thus resulting in subsidies of the remaining costs of service from the general taxpayers. As a matter of routine fee maintenance and to keep pace with increase costs of individualized services, the fees charged to users need to be reviewed on a regular basis, preferably each year. Recommendation: That the City Council approve Resolution No. 2010-45, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, UPDATING COMMUNITY DEVELOPMENTIPLANNING FEES AND CHARGES FOR SERVICES FOR FY 2010-11 City Manager Allred review staff report. Mayor Pro Tem Ly stated that the fees were reasonable considering most fees are towards general plan amendments, zone code changes, and municipal code amendments. He felt that if a developer comes in the city and proposes a zone change that will affect the general plan, then the cost should not fall on the residents. Mayor Pro Tern Steven Ly made a motion, second by Council Member Sandra Armenta to approve Resolution 2010.45, updating the Community Development Community/Planning fees and charges for services fro FY 2010.11. Vote resulted in: Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 18 of 22 Yes: Armenta, Clark, Low, Ly, Taylor No: None Abstain: None Absent: None D. Business License Fee Schedule for FY 2010-11 The City provides various individualized services (i.e. inspections, permits, law enforcement, etc.) that are not of general benefit. Historically, many of these individualized services have been provided at a cost greater than the fees being charged for them thus resulting in subsidies of the remaining costs from the general taxpayers. As a matter of routine fee maintenance and to keep pace with increasing costs of individualized services, the fees charged to users need to be reviewed on a regular basis, preferably each year. Rosemead's business license fees have not been adjusted for some 18 years, and are proposed to be adjusted gradually. Increasing business license fees to appropriate levels in a single year could present a hardship in some cases; therefore, most proposed adjustments do not exceed 20%. It is important to note, with all the fee increases, that the proposed fee adjustments and new fees never exceed the cost of providing the service. However, not all fees need to be increased as some are controlled by statute. Consequently, not every Rosemead fee is being recommended for an adjustment this year. Recommendation: That the City Council approve Resolution No. 201046, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, UPDATING BUSINESS LICENSE FEES AND CHARGES FOR SERVICES FOR FY 2010- 11 City Manager Allred reviewed staff report. Mayor Taylor inquired about the fee for a motion picture theater of $1,836.00. Mayor Pro Tem Ly clarified that the fee was for an adult business motion picture theater. Mayor Taylor inquired about the apartment fees, in which 16 or more units' renewal fee is $178 and new is $84; it seemed that the amounts were reversed. Council Member Clark asked that the street vendor issue be addressed. City Manager Allred stated that peddlers included catering trucks and ice cream trucks and they will be charged an initial fee of $160 and an annual renewal fee of $131. Mayor Taylor stated that it was a thousand percent increase. Rosemead City Council, Community Development Commission, Financing Authority, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 19 of 22 Council Member Clark stated that the issue was that they need a background check and we are not breaking even under the old schedule and this is bringing it up to what it's costing us. Council Member Low inquired about home base businesses. City Manager Allred replied that the document in discussion did not address home base businesses. Staff is looking into the zoning code update and will address home businesses at that time. Council Member Clark asked if the increase in fees would cover the cost of the background checks for the peddlers. Assistant City Manager Hawkesworth explained that the City investigations and it takes them from an hour to two hours; s, background check. Council Member Clark asked if that was the only cost that Assistant City Manager Hawkesworth replied other than staff time City Manager Allred clarified that the amount Assistant City Manager Hawkesworth stated that staff might be more, staff has not recommended any fees Council Member Armenta made a motion, second 46, updating business license fees and charges fc No: Absent: above $83 an hour to conduct background $160 would cover two hours of the business licenses. with Los Angeles County fees. County fees, although the cost fees. ember Low to approve Resolution 2010- for FY 2010.11. Vote resulted in: Mayor Pro Tem Ly stated for the record that he voted no because of the current economic downturn situation where there is a stagnant recovery, the last thing we want to do is raise fees in our city. 10. MATTERS FROM MAYOR & CITY COUNCIL Mayor Pro Tem Ly asked that all power point presentations be available to residents watching the meetings and add it to LaserFiche and agenda packets. Also, asked if staff had established an SRO relationship with the School District? Chief of Police Lt. Murakami stated that in terms of the different school districts, staff met and presented to the superintendent and principals at one time. The only school that has taken action has been Muscatel Middle School. Deputy Farley had some presentations on sexting, cyber bullying, and graffiti. Rosemead City Council, Community Development Commission, Financing Authonty, and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 20 of 22 Mayor Pro Tem Ly stated that the SRO program that the City has with the Garvey School District, is it being offered the same way to Rosemead School District. The SRO goes to different campuses and talks to the students and principals. Mayor Taylor expressed concern regarding if a deputy is going to the school occasionally, because if the City designates a special officer to the school, there are others who are there everyday. Chief of Police Lt. Murakami stated that under our current configuration Rosemead High School, there is a deputy that is full time at the High School. Deputy Farley visits all the middle schools along with our probation officers. Mayor Taylorclarified that there are four deputies assisting the schools someway. Mr. Taylor explained that if we have a good relationship with the Rosemead School District and Muscatel, who is going to pay for this deputy to come in for another $160,000 a year, and do we need to have another full time deputy there. City Manager Allred stated that the City has a good working relationship with the Rosemead School District and the Superintendent has informed the City that they are very please with the arrangement. Mayor Pro Tem Ly asked that staff bring back about the infamous buckets. Mr. Ly inquired about how the city does their reserve policy, that are buckets for capital improvements, operating cost and so on. City Manager Allred replied that several months ago he supplied Council with a memo describing our general fund reserves, the different types and levels of reserves. Mr. Allred will update that memo and forward it to Council. Mayor Pro Tem Ly stated that he would like the city to discuss how we can improve economic development within our region, specifically within our city. San Gabriel Valley is going to be much more behind than the whole State in our economic recovery because we have a lot of blue collar type jobs and we have some of the most educated people in the nation. I think it's important that we work with our economic partner associations to promote education and trades. Council Member Clark discussed about her attendance to the National League of Cities Energy Environment Committee where they talked about climate issues, jobs, and various things. Council Member Low stated that she has received positive comments from residents on the improvements of the city. Council Member Annenta agreed with Council Member Low and has received positive comments and commends staff for their work. Mayor Taylor requested an explanation of the $10,000 refund check. Finance Director Steve Brisco explained that staff found, there were refunds of deposits for about the same amount, we have searched all of our records and we could not find anything in plan check fees. We checked Rosemead City Council, Community Development Commission, Financing Authority and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 21 of 22 from 2005 to current, the focus was 2008 and staff has searched both the paper files and computer records. All we found was a refund of a deposit. City Council recess back to closed session at 8:31 p.m. and reconvened back at 9:09 p.m. with no reportable actions. 11. ADJOURNMENT The meeting adjourned at 9:10 p.m. The next regular joint Community Development Commission, the Rosemead Financing Authority, and City Council meeting is scheduled to take place on July 13, 2010 at 6:00 p.m. and 1:00 p.m., respectively. Gary Taylor, Mayor ATTEST: Gloria Molleda, City Clerk Rosemead City Council, Community Development Commission, Financing Authority. and Housing Development Corporation Joint Meeting Minutes of June 22, 2010 Page 22 of 22