CC - 06-09-09Minutes of the
REGULAR CITY COUNCIL MEETING
June 9, 2009
The regular meeting of the Rosemead City Council was called to order by Mayor Clark at 7:04 p.m.
in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead,
California.
FLAG SALUTE: Mayor Clark
INVOCATION: Mayor Pro Tern Taylor
PRESENT: Mayor Clark, Mayor Pro Tern Taylor, Council Member Armenta, Council Member Low,
and Council Member Ly.
OFFICIALS PRESENT: Acting City Manager Hawkesworth, Interim City Attorney Montes,
Assistant City Manager Saeki, Director of Finance Brisco, Director of Parks and Recreation
Montgomery- Scott, Economic Development Administrator Ramirez, Deputy Public Works Director
Marcarello, and City Clerk Molleda.
1. PRESENTATION
A. Proclamation — Jim Zant Scholarship
Mr. Zegers Rosemead Teacher— read a statement that he read to the Rosemead School faculty:
"I'm here to award the first Jim Zant scholarship for outstanding accomplishment in government
and community service; tragically we lost Jim in a traffic accident, on his way to school, last
summer. In an instant we lost one of the finest teachers our school has ever had. On a personal
level, in that instant, I lost my best friend. I considered him my brother; Jim was an inspiration to
me and to thousands of students he was that rare combination of enormous wit, intelligence,
compassion, and dedication. Everyone that knew Jim, especially his family and friends, will never
forget him. In July 2008 flights of angels carried him to his rest. He was a gift to the world who we
lost too soon."
Mayor Clark stated she had attended the funeral and it had been very touching; he was a very
wonderful person.
Council Member Armenta stated she had Mr. Zant as a teacher in Rosemead; he was a
remarkable teacher and everyone is saddened by the loss.
Council Member Ly stated he had also had Mr. Zant as a teacher. What is interesting is that the
day he passed away the school had a vigil and over 200 people showed up without much notice;
that goes to show that with such short notice people were there to sympathize with the passing of a
great teacher.
Mr. Zeqers - stated that they have been able to gather several thousand dollars for his scholarship
and the school will be able to award the scholarship for the next several years. He thanked Council
once again for the proclamation and informed them that he would be giving it to Mr. Zant's wife.
Rosemead City Council Meeting
Minutes of June 9, 2009
Page 1 of 15
B. Planning Commissioners Presentations
1. Daniel Lopez
2. Todd Kunioka
3. Truong Cam
4. Ron Gay
5. Allan Vuu
No one was present to receive the plaques and the Mayor asked that they be delivered.
Mayor Pro Tem Taylor stated he wanted something on the next City Council agenda because he
believes the previous Planning Commissioners were not given any recognition for their service
when the new Council took over. He stated he had asked them and they said no; I would like them
to be recognized at the following City Council meeting.
Mayor Clark stated it would be looked into.
Acting City Manager Hawkesworth responded that staff would look into it and bring it back to
Council if someone was mistakenly missed.
2. PUBLIC COMMENT FROM THE AUDIENCE
Juan Nunez — stated John Tran you couldn't huff and puff and blow the but down.
Lillian Sacco — stated she was here tonight to give to the three Council Members who had
requested a copy of the report that was submitted to L.A. County Grand Jury, in regard to the lack
of oversight in the part of the Council of the construction and the operation of the Wal -Mart store.
Stated the report addressed the problems Council did not know about or were indifferent to or staff
had not done a good job in informing them of. Also stated she wanted to mention the phantom
$400,000 that Wal -Mart supposedly paid to alleviate some of the suffering of the neighboring
residents; she understands that three secretive individuals have disbanded the membership of the
organization, Save Our Community, in order to muzzle their critics. As a result nothing has been
done to alleviate problems suffered by neighboring residents. The three so called officers of Save
Our Community and their attorney are engaged in a conspiracy of silence. (Mrs. Sacco asked Mr.
Nunez to handout the report to Council.)
3. PUBLIC HEARING
A. Consideration of the Imposition of Rubbish Liens
Pursuant to the contract between the City of Rosemead and Consolidated
Disposal Services, a Public Hearing has been scheduled to consider protests
regarding the imposition of liens on real property from those customers who are
delinquent in paying their trash collection bill.
Recommendation: That the City Council direct staff to place liens on those
properties whose owners have not paid their trash collection bill in full by 6:00 p.m.
on June 29, 2009.
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Minutes of June 9, 2009
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The Mayor opened the Public Hearing at 7:16 p.m.; there being no public comment requests the
Public Hearing was closed at 7 :16 p.m.
Council Member Steven Ly made a motion, seconded by Mayor Pro Tern Gary Taylor, to
approve staff's recommendations. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
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Mayor Pro Tem Taylor asked that the minutes of March 24, 2009 be voted on separately because
he had not attended that meeting and he would be abstaining.
A. Minutes
March 24, 2009 — Special Meeting
Council Member Polly Low made a motion, seconded by Council Member Sandra Armenta,
to approve the minutes of March 24, 2009 with one correction on the name "Matsdorf". Vote
resulted in:
Yes: Armenta, Clark, Low, Ly
No: None
Abstain: Taylor
Absent: None
A. Minutes
March 26, 2009 — Special Meeting
May 9, 2009 — Special Meeting
May 12, 2009 — Special Meeting
B. Resolution No. 2009 -27 Claims and Demands
Recommendation: Adopt Resolution No. 2009 -27, for payment of City
expenditures in the amount of $544,923.50 numbered 100345 through 100371
and 66206 through 66320.
C. Acceptance of Traffic Signal Improvements on Del Mar Avenue and Graves
Avenue
The referenced project has been constructed in conformance with the approved
plans and specifications and is ready for acceptance of work.
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Minutes of June 9, 2009
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Recommendation: That the City Council accept the above reference project,
authorize the recordation of Notice of Completion by the City Clerk; and authorize
the release of the 10 percent retention payment 35 days after the recorded date of
the Notice of Completion.
D. Release of Certificate of Deposit — Tract Map 61523 (8930 Mission Drive)
A Faithful Performance Bond and a Labor and Material Bond were required to
guarantee construction of new sewer laterals and installation of survey
monuments for Tract Map 61523. In lieu of bonds, a Certificate of Deposit was
issued to the City in the amount of $25,760.00.
Recommendation: That the City Council accept the public improvements and
survey monuments and authorize the release of the Certificate of Deposit including
interest.
G. Re- Adopting of FY 2009 -10 City Investment Policy
The City's Investment Policy (Policy) requires the City Council to re -adopt the
City's Policy at least annually. Staff has reviewed the Policy for continued
compliance with Government Code Section 53601 and there is no need fro any
changes.
Recommendation: That the City Council approve the Investment Policy for the
2009 -10 fiscal year.
2009 Justice Assistance Grant Program Applications
On February 17, 2009, President Obama signed into law the landmark American
Recovery and Reinvestment Act of 2009. As one of its many elements, the
Recovery Act has provided the U.S. Department of Justice with grant funding that
is currently being distributed under the Edward Byrne Memorial Justice Assistance
Grant (JAG) Program. JAG blends the previous Byrne Formula and Local Law
Enforcement Block Grant (LLEBG) Programs to provide agencies with the
flexibility to prioritize and place justice funds where they are most needed. These
funds allow states and local government to support a broad range of activities to
prevent and control crime and to improve the criminal justice system.
Pursuit of these funds requirements all potential recipients in the Los Angeles
County to file a joint application and sign a Memorandum of Understanding with
the City of Los Angeles in order for any of the recipients to receive these funds.
Recommendation: That the City Council authorize the City Manager to sign the
Memorandum of Understanding (MOU) and all other required contracts and
certificates in order to participate in the 2009 Justice Assistance Grant Program.
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Minutes of June 9, 2009
Page 4 of 15
Council Member Polly Low made a motion, seconded by Council Member Sandra Armenta,
to approve the Consent Calendar with the exception of Items E, F, H, J, and K. Vote resulted
in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
E. Del Mar Avenue Tree Planting Project — Highcliff Street to Graves Avenue
On May 26, 2009, the City Council authorized staff to complete a tree planting
project in conjunction with street resurfacing improvements on Del Mar Avenue,
from Garvey Avenue to Highcliff Street. At this meeting, Mayor Pro Tern Taylor
asked staff to look into the feasibility of continuing the tree planting project on Del
Mar Avenue from Highcliff Street to Graves Avenue.
After surveying the parkway areas on Del Mar from Highcliff to Graves, staff
determined that there are 14 available locations to plant trees. On June 1 and 2,
staff conducted a survey of Del Mar Avenue residents to gauge interest in planting
street trees. The results of this survey indicated that out of 7 survey participants, 4
participants expressed an interest to continue with the tree planting project. Staff
was unable to make contact with residents at 3 properties (2 properties appear
vacant). Based on these survey results, staff is recommending that trees be
planted at locations approved by property owners and residents.
The total cost for this work is $6,565.14, including a 90 -day maintenance period.
There is adequate funding in the street maintenance cost center (Gas Tax Funds)
to fund this project.
Recommendation: That the City Council authorize tree planting at locations
approved by residents and authorize the City Manager to execute a contract to
complete the work.
Juan Nunez — stated the trees on Del Mar had been planted and assumed Council wanted it that
way. He added that the survey taken was given to tenants and not to property owners. He asked
about the ramps for the ADA on the Westside of Del Mar; first the city build them, then the phone
company came in to rewire their lines and fixed them the same way, now they have been done the
third time; the only difference is that the yellow pad has been added and they cut 24 ft. off each
side of the ramp.
Council Member Steven Ly made a motion, seconded by Council Member Sandra Armenta,
to authorize tree planting at locations approved by residents and authorize the City Manager
to execute a contract to complete the work. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
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Minutes of June 9, 2009
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Abstain: None
Absent: None
Contract Extension with Clean Street to Provide Street Sweeping Services
The City of Rosemead provides street sweeping services through a contractual
agreement with Clean Street. The agreement includes performance standards
including service levels, diversion requirements, equipment standards, and
reporting requirements. Per the agreement, all City streets are swept at least once
weekly, Monday through Friday.
The City's current street sweeping service agreement with Clean Street expires on
June 30, 2009. In accordance with this agreement, the City and Clean Street may
mutually agree to extend the term of this agreement. Staff has discussed
extending the agreement with Clean Street officials and they are willing to do so
under existing contract terms and conditions.
Recommendation: That the City Council:
1. Authorize the City Manager to execute a six -month contract
extension with Clean Street to provide time to complete a request
for proposal process; and
2. Direct staff to prepare a request for proposal for street sweeping
services.
Mayor Pro Tem Taylor stated he wanted to abstain on this item because he did not have enough
information on it.
Council Member Ly clarified that the recommendation was to extend the contract for another 6
months but staff was getting an RFP ready.
Acting City Manager Hawkesworth responded that was correct.
Mayor Pro Tem Taylor stated the city has had these contracts in the past and have negotiated
with the contractor if he chooses to go ahead with an extension with no rate increases. Mr. Taylor
stated that was part of the information he would like to get to find out what he had agreed to. He
added it was not so much a question of some of these contracts because some were about 14 to
15 years old and the City went out to rebid them because it was something that had to be updated
but this contract has only been for three years. Mr. Taylor stated it was like the tree trimming
contractor, if they come in and they are willing to go ahead at the current prices or without an
extension or a cost increase the City allows that contractor to continue the work and that is the
concern with this particular one; He added he intended to abstain.
Council Member Steven Ly made a motion, seconded by Council Member Polly Low, to
approve staff's recommendations. Vote resulted in:
Yes: Armenta, Clark, Low, Ly
No: None
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Minutes of June 9, 2009
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Abstain: Taylor
Absent: None
H. Statement of Fiscal Hardship if State Elects to Borrow City Property Taxes
and Approve Unfunded Mandates
On May 5th the Department of Finance announced it had proposed to the
Governor that the state "borrow" over $2 billion in local property taxes from cities,
counties, and special districts to balance the state budget, causing deeper cuts in
local public safety and other vital service. In order to start that process, the
Governor would have to issue a proclamation declaring the existence of a "severe
fiscal hardship ". The legislature would then have to implement the "borrowing"
program by passing urgency legislation (2/3 vote) which identifies how the "loan"
will be repaid with interest.
The League of California Cities has developed a draft resolution, to be modified by
member cities and sent to their legislators and the Governor, finding that a fiscal
hardship will exist if this proposed state property tax raid is added to the pressures
of the ongoing property tax losses and the serious revenue losses due to the
economic recession.
Recommendation: That the City Council approve Resolution No. 2009 -28 and
direct the City Clerk to send copies of the resolution to the City's legislators, the
Governor and the League of California Cities.
Juan Nunez — stated the State is coming out after the redevelopment money and here the State is
trying to borrow money.
Council Member Polly Low made a motion, seconded by Council Member Sandra Armenta,
to approve staff's recommendations. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
Interim Budget Amendments
From time to time, as new revenues are received and when changing
circumstances warrant, it becomes necessary to amend the budget. Resolution
No. 2009 -29 amends the budget with $929,300.00 of new General Fund
appropriations. The appropriations are funded with $264,560.00 of new estimated
revenue and $664,740.00 is funded by unreserved fund balance. There is also a
funding shift of $350,000.00 from the Proposition A fund to the Proposition C fund
for public transportation services.
Recommendation: That the City Council adopt Resolution No. 2009 -29.
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Minutes of June 9, 2009
Page 7 of 15
Council Member Steven Ly made a motion, seconded by Council Member Polly Low, to
approve Resolution No. 2009.29. Vote resulted in:
Yes: Armenta, Clark, Low, Ly
No: Taylor
Abstain: None
Absent: None
K. Re- Certification of the General Municipal Election Held March 3, 2009 and
Declaring the New Results
The Los Angeles Superior Court entered their final judgment in the matter of Tran
v. Armenta, Molleda, Logan (the County Registrar of Voters) and the City of
Rosemead. In this judgment the Court has ordered the City Clerk to certify the
March 3, 2009 General Municipal Election results, once again, to reflect the new
canvass totals.
Recommendation: That the City Council receive and file the new Certification of
Canvass for the March 3, 2009 General Municipal Election.
Council Member Ly stated he would be voting no on this item because he felt the judge was
incorrect in stating the city clerk did not do her job correctly and thought the city clerk did do her job
correctly and she was right in excluding the signatures that she did.
Mayor Pro Tem Taylor asked for clarification on the point where the judge stated the city clerk did
not do her job correctly.
Council Member Ly responded that what the judge did was to allow four ballots to be counted and
therefore rejecting the city clerk's initial ruling.
Mayor Pro Tern Taylor responding that was his personal ruling but that he hadn't said the city
clerk did not do her job correctly, indirectly or directly.
Mayor Clark responded she agreed and she would vote yes simply because Council had to certify
the election but thought it was ironic because the signatures are supposed to match reasonably
and she had sat there for three hours while the judge went over 28 ballots and if you do the math
that is about 6 minutes apiece and it defeated the entire purpose of why you have signatures that
match to prevent fraud. She reiterated that she agreed with Mr. Ly but would vote yes simply
because the election needed to be certified.
Council Member Polly Low made a motion, seconded by Council Member Sandra Armenta,
to receive and file the new Certification of Canvass for the March 3, 2009 General Municipal
Election. Vote resulted in:
Yes: Armenta, Clark, Low, Taylor
No: Ly
Abstain: None
Absent: None
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Minutes of June 9, 2009
Page 8 of 15
5. MATTERS FROM CITY MANAGER & STAFF
A. SR -60 Coalition MOU for the Gold Line Eastside Transit Coorridor Phase 2,
Alternate 1
The Gold Line Eastside extension, which is under construction from Union Station
to Pomona Boulevard and Atlantic Boulevard in East Los Angeles, is scheduled to
be completed in mid 2009. The Metropolitan Transit Authority (Metro) is currently
studying four alternatives to extend the Gold Line, in addition to a no build
alternative. Alternative 1 (SR -60), follows the southern edge of the SR -60
freeway, and traverses through Rosemead, Montebello, El Monte, and South El
Monte. This route would bring light rail transportation to our community.
In May of 2008, City Council directed staff to continue to work with Metro regarding
SR -60. In February 2009, the City Council also passed a resolution in support of
the SR -60 route. Since that time, several meetings have taken place with staff
from the above cities to combine efforts to lobby for SR -60. As a result, the SR -60
Gold Line Extension Coalition is in the process of being formed and formalized
through an MOU. Additionally, one of the founding members of the coalition
initiated hiring a lobbying consultant on behalf of the coalition.
Recommendation: That the City Council approve the MOU and the
Reimbursement Agreement for the lobbying consultant.
Public Affairs Manager Flores reviewed the staff report
Council Member Low stated she wanted to understand the cost; the $60,000 was for the
consultant but the share cost for the city is $2,000 per month.
Public Affairs Manager Flores responded that was correct and it was a total of $12,000.
Council Member Steven Ly stated the city was sharing the cost for the consultant but South El
Monte was taking the lead on it and asked if there was a disagreement between the coalition who
would the consultant answer to.
Public Affairs Manager Flores responded that the consultant was answering to the coalition and the
only reason South El Monte became the lead on it was because they wanted to act fast and hire
the consultant before Whittier did.
Council Member Low asked who was representing the City of Rosemead in this coalition.
Public Affairs Manager Flores responded she had been attending the meetings and also there was
a meeting scheduled on the 16th for all of the councils from all the cities to attend.
Council Member Steven Ly made a motion, seconded by Council Member Polly Low, to
approve the MOU and the Reimbursement Agreement for the lobbying consultant. Vote
resulted in:
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Minutes of June 9, 2009
Page 9 of 15
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
B. Citizens' Option for Public Safety (COPS) Grant
The 2008 Budget Act provides $214.2 million in General Fund money in 2008 -09
to eligible local jurisdictions, as defined, for public safety purposes. Of this
amount, $107.1 million is allocated to the Citizens Option for Public Safety (COPS)
program. The City of Rosemead has participated in the COPS program for the
past several years budgeting and expending the funds for a motorcycle traffic
enforcement deputy and special event overtime. This grant requires that these
funds be earmarked for only frontline police services.
This fiscal year 2008 -09, the City has been allocated $100,000.00 for the COPS
program. To date, the City has received $50,000.00 with the remaining
$50,000.00 expected by the end of June. The administration of these funds
requires that this item be placed on the City Council agenda and provide the
opportunity for public input and discussion. The City Council must then approve
the allocation and expenditure of these funds.
Therefore, for fiscal year 2008 -09 we are recommending that these funds be
budgeted and expended to offset he costs for a motorcycle traffic enforcement
deputy and special event overtime. Captain Richard Shaw, Temple Station
Commander has provided a letter of approval and support with respect to the use
of these 2008 -09 COPS grant funds.
Recommendation: That the City Council approve the appropriation of the COPS
funds for fiscal year 2008 -09.
Assistant City Manager Saeki reviewed the staff report.
Mayor Pro Tern Gary Taylor made a motion, seconded by Council Member Polly Low, to
approve the appropriation of the COPS funds for fiscal year 2008 -2009. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
C. One Year Extension of Sheriff Contract and Approval of the Tolling
Agreement
The current contract with the Los Angeles County Sherriff's Department is set to
expire on June 30, 2009. Due to ongoing discussion between the California
Contract Cities Association (CCCA) on behalf of their member cities and the
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Minutes of June 9, 2009
Page 10 of 15
County regarding the use of Liability Trust Fund money to pay for a settlement in a
legal dispute, the CCCA is recommending that a one -year extension be approved
rather than the normal five -year contract extension. It appears that most if not all
of the 40 contract cities will be approving this one -year extension until an
agreement can be reached.
Along with the contract extension, a separate tolling agreement has been
developed and signed by the CCCA along with its members who contract with the
Los Angeles County Sheriffs Department. CCCA has asked that all contract cities
also adopt the tolling agreement as it is directly related to the dispute regarding the
Liability Trust Fund.
Recommendation: That the City Council take two actions:
Approve the amendment of the agreement with the Los Angeles
County Sheriffs Department and authorize the City Manager to
sign any related documents.
2. Approve the tolling agreement between California Contract Cities
Association, its members and the County of Los Angeles.
City Attorney Montes reviewed the actions that would be taken by Council and added that currently
there was a dispute between the various cities that contract with the Sheriffs Department and the
County with respect to management of the liability trust fund which is part of that contract; the
current Sheriffs contract is due to expire on June 30 and in order to ensure uninterrupted service
all of the cities have approved a one year extension.
Council Member Steven Ly made a motion, seconded by Council Member Polly Low, to
approve the MOU and the Reimbursement Agreement for the lobbying consultant. Vote
resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
6. MATTERS FROM MAYOR & CITY COUNCIL
A. Planning Commissioner Terms of Office
As the Council is aware, all of the Planning Commission terms currently expire at
the same time. In order to correct this and return to staggered terms, the
Municipal Code must be amended. Staff has conferred with the City Attorney and
has prepared an Ordinance which will re- establish staggered terms for the
Planning Commission. The City Council will need to randomly select two of the
recent appointees that will serve only one year terms.
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Minutes of June 9, 2009
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Recommendation: That the City Council adopt Ordinance No. 875 authorizing the
amendment to Section 2.28.020 of the Rosemead Municipal Code.
City Attorney Montes reviewed the staff report and clarified that the Ordinance was on the agenda
for the first reading and will be put back on the following council agenda for City Council's approval.
Council Member Polly Low made a motion, seconded by Council Member Sandra Armenta,
to introduce Ordinance No. 875 for its first reading. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
B. Funding the IRS Penalties of the Rosemead Youth Association
On May 12, 2009, staff brought a request to the City Council to assist the
Rosemead Youth Association (RYA) in the payment of penalties that had been
levied by the Internal Revenue Service (IRS) totaling $9,890.43. During
discussion at the meeting the Council directed staff to work with the RYA and their
accountant to determine if in fact the penalties could be reduced or waived. It was
believed at the time that if the City paid these penalties, the IRS might be less
willing to reduce or waive them when the appeal was received.
Since the original direction was provided staff has been working with the RYA and
their accountant and have determined that it is in the best interest in the RYA to
pay off the penalties as soon as possible. The RYA President, Jerry Faustino, has
been in contact with the IRS Agent assigned to their account and has been
assured that if the penalties are paid off, it will not affect the appeal process
regarding the reduction or waiving of fees. He was told that if in fact the fees were
reduced, the IRS would refund any payments that had been made. Secondly, the
outstanding balance for the penalties is accruing additional interest penalties at
the rate of 22 %. While the RYA is making monthly payments of $500 per month,
the added interest is consuming a lot of their payment.
Lastly, the IRS has the ability to automatically withdraw funds from the RYA's bank
account which is making it difficult for the RYA to collect funds to start the season.
It is very realistic that any league fees for the upcoming season or funds generated
by the fireworks booth to help pay for the upcoming season could be taken by the
IRS for the payment of outstanding penalties.
The RYA Treasurer has contacted the IRS and has obtained a new payoff
statement that is valid through July 2, 2009. Their current outstanding balance is
as follows:
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Minutes of June 9, 2009
Page 12 of 15
Tax Year Amount
2004 $2,927.11
2005 $2,185.77
2007 $3,807.93
$8,920.81
Recommendation: That the City Council provide direction regarding the
contribution of funds to the Rosemead Youth Association.
Acting City Manager Hawkesworth reviewed the staff report.
Council Member Ly stated he sympathized with RYA but was hesitant with paying the entire
amount and would be more comfortable with paying half the amount because he did not believe it
was the City's role to come in and pay off debts of any organizations.
Mayor Pro Tem Taylor stated he agreed with Mr. Ly but by the same token they were paying 22%
and the fact that they are servicing 400 youth in the community he thought the City needed to keep
the program going as best possible. , He added that when this first came up 5 or 6 years ago
Council was donating 5 -8 thousand, then it was raised to 15 thousand and said he had made a
statement that he was not going to discriminate and once they started paying off these fees it was
only fair to keep the organization going. He added he understood what Mr. Ly was saying but
because of the IRS if they don't pay it they are going to accumulate 22% a year; asked Mr.
Hawkesworth for further clarification.
Acting City Manager Hawkesworth responded that it was correct but it was annualized in a monthly
basis; basically RYA is giving $500 a month payment which gives them the ability of a 30 day
payoff without any interest accruing but if they don't pay it, they asses 22% interest on the next
month.
Mayor Pro Tem Taylor responded that this just keeps them even
Acting City Manager Hawkesworth added that there is also a concern because the IRS has the
ability to raid their bank account at any time; in addition RYA is afraid that when they collect funds
from their firework stand the IRS will take those funds and they won't have money to start their
league.
Mayor Pro Tem Taylor asked that the RYA give Council more information on the IRS's claim
because this is a non -profit group. He asked if this was because they didn't file their returns or if
they made money and did not report their taxes.
Acting City Manager Hawkesworth responded that it was because each year, even non - profits, are
required to report an annual financial statement to both the State of California and the IRS, it has
nothing to do with reporting taxes, it has to do with what the organization took in and paid out but if
they don't file that financial statement in time the IRS assesses penalties and then that penalty
begins to accrue interest.
Mayor Pro Tem Taylor asked if there was no amending of the tax return to correct this
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Minutes of June 9, 2009
Page 13 of 15
Acting City Manager Hawkesworth responded no
Mayor Clark stated no because there was no return filed.
Mayor Pro Tem Taylor stated it was his understanding that if you don't do a tax return you just
don't get the money but there is not penalty.
Council Member Armenta stated they were talking about an organization that has been in
existence since 1972 and added she was an RYA participant and that the service that this
organization provides is very essential. Mr. Armenta stated she understood what Mr. Ly was
saying about the City not being here to bail everyone out but added that when circumstances arise
that were out of their control then that needed to be taken under consideration.
Council Member Ly stated for clarification that the three years that they didn't file was 2004, 2005,
and 2007.
Acting City Manager Hawkesworth stated that those were the years that they were late and added
that he did not know if they were late in 2006 but currently there was no outstanding balance for
2006.
Council Member Ly asked if there was a way to get RYA's board rosters for 2004, 2005, and
2007 to compare it with this year. He added he just wanted to make sure that if this was going to
get approved that none of those previous members were currently sitting on the board.
Acting City Manager Hawkesworth responded that the RYA had stated that publicly but staff could
certainly ask them for rosters.
Mayor Pro Tem Gary Taylor made a motion, seconded by Council Member Polly Low, to
approve the payment of $8,920.81 to the IRS. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
C. Payment of Legal Costs for Council Member Armenta
Council Member Armenta has requested the City consider paying for her defense
costs related to the legal challenge that was made by John Tran in contest of the
March election. -In conferring with the City Attorney, California Government Code
Section 36812.5 provides in relevant part that "A city may defend any person
elected to the city council ... in any election contest instituted for any of the causes
set forth in subdivisions (a), (d), or (e) of section 16100 of the Election Code ".
Elections Code Section 16100(e) includes a challenge to an election based upon
an allegation "that the precinct board in conducting the election or in canvassing
the returns, made errors sufficient to change the result of the election as to any
person who has been declared elected ". The Complain in the Tran v. Armenta suit
Rosemead City Council Meeting
Minutes of June 9, 2009
Page 14 of 15
clearly falls within the scope of 36812.5 and 16100(e) and due to the fact that
Council Member Armenta's interests in the case were different from and potentially
in conflict with those of the City and City Clerk, it is appropriate that she was
represented by a firm other than Burke, Williams & Sorensen, LLP. The City
Attorney has also made the recommendation that if legal fees are to be paid by the
City, that they be paid directly to the attorney representing Council Member
Armenta.
Recommendation: That the City Council provide direction regarding the payment
of legal fees for Council Member Armenta in the Tran v. Armenta case.
City Attorney Montes reviewed the staff report and added he had not been able to get the total
amount due from Ms. Armenta's attorney.
Mayor Pro Tern Taylor stated he agreed with the concept of being forced into a city election
challenge but was reluctant to vote on an empty contract and asked that this item be deferred to
the following City Council meeting.
Acting City Manager Hawkesworth stated that Council could direct the City Attorney to continue
working with Ms. Armenta's attorney and then bring it back to the next Council meeting.
Mayor Pro Tern Taylor stated he appreciated that because this was an awkward situation
because he was in favor of it but did not want to vote on an empty contract.
8. ADJOURNMENT
The meeting adjourned at 7:53 p.m. The next regular City Council meeting is scheduled to take
place on June 23, 2009 at 7:00 p.m.
Margaret dark
ATTEST: Mayor
Gloria Molleda, City Clerk
Rosemead City Council Meeting
Minutes of June 9, 2009
Page 15 of 15
0
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD 1
I, Gloria Molleda, City Clerk for the City of Rosemead, do hereby certify that the
minutes of June 9, 2009 was duly and regularly approved by the Rosemead City Council
on the 8` of September 2009 by the following vote to wit:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
A,
Gloria Molleda
City Clerk