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CC - 11-22-83• CITY OF VW;E3IEAD DATF AR -13 - f3 TiY_ MINUTES OF THE REGULAR MEETING ROSEMEAD CITY COUNCIL NOVEMBER 22, 1983 AT 8:00 P. M. The Regular Meeting of the Rosemead City Council was called to order by Mayor Cleveland 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 Art Freuend. ROLL CALL OF OFFICERS: Present: Councilmen Cichy, Imperial, Taylor, Tury and Mayor Cleveland Absent: None APPROVAL OF MINUTES: November 8, 1983 - Regular Meeting MOTION BY COUNCILMAN TAYLOR, SECONDED BY COUNCILMAN IMPERIAL that the Minutes of the November 8, 1983 Council Meeting be ap- proved. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. APPROVAL OF MINUTES: November 15, 1983 - Study Session/Cable TV MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN IMPERIAL that the Minutes of the November 15,. 1983 Study Session be approved. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. PRESENTATION: Rev. Tom Phillips A Resolution of Commendation was presented to Reverend Tom Phillips honoring him for his 66 years of religious service to this area. Rev. Phillips expressed his appreciation for this honor which the City Council of Rosemead bestowed upon him.. 1. ORAL COMMUNICATIONS A. Pat Wallach,.a.newly elected member of the E1 Monte Union High School Board of Trustees, stated that she wanted to let every one know that she would be available to answer any questions and expressed her appreciation for the letter of congratulations sent on behalf of the City. B. Martha Padilla, 3119 N. Driggs, complained about the noise and pollution from the La Victoria plant, and stated that in the summer time she could not even open her windows because of the noise and the odors. Councilman Tury stated that he was aware of the problems, however, the La Victoria plant is not located in the City of Rose- mead. It is located in the City of E1 Monte, and they could con- tact members of the El Monte City Council requesting that some- thing be done to resolve the problem. He stated that the staff would contact her after they receive an answer from the E1 Monte City Council. Councilman Taylor inquired if the staff would check to see if the City of E1 Monte has a sound ordinance and what 'decibels are required. Frank G. Tripepi, City Manager, stated that the sound ordinance would be one of the things requested from E1 Monte and the noise can also be monitored from the Rosemead side. CM 11-22-83 Page X1 II. PUBLIC HEARING A. PUBLIC HEARING TO CONSIDER REQUEST FOR A VACATION OF PUBLIC EASEMENT KNOWN AS ARROYO DRIVE Mayor Cleveland 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 Mayor Cleveland closed the Public Hearing. The following Resolution No. 83-53 was presented for adoption: RESOLUTION NO. 83-53 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD VACATING A PUBLIC EASEMENT (ARROYO DRIVE) MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN IMPERIAL that Resolution No. 83-53 be adopted. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. III. LEGISLATIVE A. RESOLUTION NO. 83-54 - CLAIMS & DEMANDS The'following Resolution No. 83-54 was presented for adoption: RESOLUTION NO. 83-54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ALLOWING CERTAIN CLAIMS & DEMANDS IN THE SUM OF $416,815.55 NUMBERED 8734-8745 AND 7950 THROUGH 8058 INCLUSIVELY MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN IMPERIAL that Resolution No. 83-54 be adopted. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. Councilman Tury requested the back up material on Warrant Nos. 8738 and 8739. IV. CONSENT CALENDAR (CC-A deferred) CC-B SIGNAL CHANGEOVER ON WALNUT GROVE AND KLINGERMAN CC-C ACCEPTANCE OF ROAD DEEDS, PERMITS TO ENTER, RIGHT OF WAY AGREEMENTS FOR NEWMARK STREET IMPROVEMENTS. CC-D APPROVAL OF PLANS & SPECIFICATIONS FOR DRIGGS & HEGLIS DRAINAGE AND AUTHORIZATION TO SEEK BIDS CC-E TENTATIVE CALENDAR OF EVE14TS & LOCATIONS--25TH ANNIVERSARY CELEBRATION MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN IMPERIAL that the foregoing Items on the Consent Calendar be approved. Vote resulted: UPON ROLL CALL ALL COUNCILMEMBERS PRESENT VOTED AYE. The Mayor declared said motion duly carried and so ordered. CC-A AUTHORIZATION TO PROCEED WITH BIDS FOR LOW INTEREST LOANS AND DEFERRED LOANS FOR THREE (3) RESIDENCES Councilman Taylor stated that he pulled CC-A because he in- tended to vote "no" on that item. MOTION BY COUNCILMAN TURY, SECONDED BY COUNCILMAN CICHY that authorization to seek bids be approved for low interest and deferred loans on three residences. Vote resulted: AYES: Councilmen Cichy, Tury, Imperial, and Mayor Cleveland NAYES: Councilman Taylor ABSENT: None ABSTAIN: None CM 11-22-83 PaEe H2 Whereupon the Mayor declared said motion duly carried and so ordered. Councilman Taylor requested that the record show that his "no" vote was in no way against the residents who are applying for this loan. It is just that the City has to tie up too much money. He would much prefer that money be used for the Handyman program. V. MATTERS FOR DISCUSSION AND ACTION A. STATUS REPORT ON THE WINDOW ON WASHINGTON Mark Hannaford presented his status report on what he has done for the City of Rosemead while in Washington, D. C. He enumer- ated the various offices he visited and legislators he has spoken to on behalf of the City and its needs. The specific issues he has been working on for the City is an appeal to the UDAG qualifications which requires three out of six requisites in order to qualify, the City of Rosemead qualifies on two and needs one more requisite to qualify for the grant. The other thing that he has been working on in our behalf is Cable TV Legislation which is now before Congress. This item was received and filed. No action was taken. B. MODERN SERVICE CONTRACT (Verbatim) Tripepi: Mr. Mayor and members of the Council, we have assembled some items that we think the Council has requested in the past throughout some discussions and some actions taken at Council Meetings. One member of the Council has also provided a memorandum relative to his ideas on the final settlement of what is to be an acceptance and possibly by both parties of a counter-offer. Within tonights information, you also have a detailed letter from an inde- pendent auditor that sets forth at least some discussion as to your arriving at a formula for dump fee increases which may be antici- pated over the course of the eight years remaining on the franchise. We have also provided you with some minutes from the last two meet- ings where discussion had taken place. That was done merely as a convenience to the Council. From the review of those minutes, it is clear that we have had the representative of Modern Service address the Council and I believe Mr. Andrews is here with us this evening and perhaps, Mr. Mayor, if it is agreeable with the Council we can start with Mr. Andrews. Then if there are any questions on the letter arriving at a formula for dump fees and how to basically provide for those, we have Mr. Barsum with us this evening also. Andrews: Mr. Mayor and Councilmen, I think that significant pro- gress has been made since I was here two months ago. Mr. Steadman, the accountant for Modern Service as well as Mr. Barsum, who is apparently looking into this for the City, have worked very well together. They have apparently accomplished the desired objectives. From all the information that we have received, that should about put this thing to rest. I think that the last issue,at the last time I was here, was to see if we could come up with something on this dump fee. It appears that that has now been accomplished. We worked long and hard to get here tonight for the.last three years. All that is left now is for Mr. Kress and I to do battle one more time,to see if we could crank out a document that would be acceptable to both sides of this very pleasant negotiation that we have had over the last few days. I will be glad to answer any questions if I can. Mayor: Any questions of Mr. Andrews? There being none, I thank you, Mr. Andrews. Refer it to the Council for discussion. Tury: Mr. Mayor, as you know.you have a memo from me there with a few ideas to be thrown around. I came to City Hall and the City. Manager and the City Attorney were.talking about the dump fees and the formula that.was set up to allocate the cost of dump fees to each piece of property. And, as I usually do, I found all kinds of questions to ask about it. Including, if we were to grant an in- crease for the dump fees and an increase for the contract, would we be indeed compounding paying the 7% on top of whatever the dump fees were? It got (continued on next page) CY 11-22-83 Page #3 • (Tory continues) 0 quite complicated so we decided to try to find a way to allocate these to the various residences and to the businesses, and how we could handle the multiple increases. I came up with the thought that is on the paper. In this discussion, the increase in the dump fees were really wild. }Ve didn't know what exactly we were talking about. So we placed 'a call to the County Sani- tation District and asked them for the best estimate of the pro- jetted dump fees for the next ten years, and they said they could give us in their estimation for the next five years. It would go up 5% per year. The dump that is mostly used by Modern, has re- cently been expanded so that it is probably a good assumption that is the dump that they will be using. As you know, if you look at the figures, the annual increase of dump fees has come out to, as the estimate from the low of the first year, about $7500 and to a high in the last year of the contract, to about $61,000. The City is in reasonably good financial position. I felt that it might be the time to possibly let the citizens have some advantage of the good financial position of the City. In doing that we could lower their annual increase, and the City simply pick up the increases in the dump fee from a base year which was calculated from Modern. They dumped 3300 tons a month. times 12 times $3.75. It comes to a figure of approximately $150,000 a•year with the dump fees that they are using. We used that as a multiplyer for the estimated dump increases, and trying to find a way of passing that on to residences as a separate item it was awfully tough. The total package for the life of contract would be approximately a quarter of a million dollars to the City. to alleviate that particular problem. Divided by eight that doesn't come out to a whole lot of money every year. That would take that issue off the table. That would not be passed on to the residents. In further discussion, at the same time, as long as we are on a roll, we discussed of course, if we take the dump fees out of the based rate which is approximately 20% so the rate increase would drop about 1% which would leave Modern with a 6% annual rate in- crease, plus the dump fee increase at the end of the year or quarterly or whatever it is. So we went one step further and took the residential increases and projected what the dump fees would be by the end of the contract and what the total cost would be, we,.then;subtracted`the franchise fee and subtracted the estimated delinquents that we would not be°paying and-came up with a.net:cost:over.the life of the contract.. My thought was a flat 10% increase in 1984 which gives about a $5.75 figure. We have talked about 61J,and that is a figure that we can kick back and forth, but I use that figure because that what I based my original calculations on. Once I had them down, I came back and talked to Frank again, and we had the finance department verify my figures. I might say that our new finance director is excellent because she was very close to my figures so she has to be good. The total increase for freezing the residential rates at $5.75 a month for the balance of the con- tract.&picking up the increases in the dump fees for the balance of the contract, . would be about one and half million dollars over a seven or eight year period. Sounds like a lot of money when you look at a one and half million dollars, but when you look at the financial position of this City, it is not really all that great. My thought was to do exactly that, and to throw it out to the Council for some imput, and I so do that. Mayor: Thank you, Councilman Tury. Councilman Taylor.. Taylor: Mr. Mayor, I have to agree with many points that Mr. Tury has in his proposal. I think the residents would benefit fairly well from some of the savings. The reference made to the delinquent accounts... this is only ...this proposal that we are talking about dump fees and subsidized costs and such.. this is only one item out of six or seven that I recall that have to be brought back in form for the Council to review as a whole. CM 11-22-83 Page n4 • • Tury: If I may Gary. My thought on this was for tonight to simply get the imput from the Council. If there is some area of agreement to this approach, instruct the staff to put the whole package to- gether as this simply addresses the dump fee issue. There are all the other issues, the commercial non-subscribers, they would all have to be in a final proposal. Frank asked me if I wanted this put into that type of proposal. I said "no" because I am one guy looking at this particular approach and there is no sense in going through all the work if the Council simply doesn't like it. So, this what we have tonight would only address that one issue, and this then would be incorporated into the whole package. Taylor: I have no real disagreement with what you are proposing tonight. I feel that the-City is in a very fortunate position compared to a lot of other cities as far as the screams and the crys for more tax dollars. I think that this is a very appropri- ate way to share some of this revenue back with all the property owners throughout the City in a non-discriminatory income basis or qualification. The delinquent accounts, and we made reference to that even looking at it here. That is one of the issues that I thought was to be resolved. Delinquent Accounts would no longer be the responsibility of the City. Tury: That's the reason, Gary, that on the.paper that is in paren- thesis which has been subtracted from the overall costs. Going from the gross costs to the net costs, we took the franchise fee and the estimated delinquents and we subtracted those from the overall costs. The delinquents would be the responsibility of Modern Service at that time. Taylor: As long as that is clearly understood. When it is brought back to the Council,that is one item that was to be discussed and hopefully agreed upon. Tury: One more thing that was brought to my attention talking to Mr. Kress and Frank yesterday. The way I wrote this, I don't make provisions for the condominiums so we,are going to have to adjust that a little bit to try to.get all the residents included in this. This still excludes the industrials and the commercials and the large apartment complexes. The condominiums are basically all single family units. I am not sure how they get their trash picked up, bin or what. I am sure that is a minor point that we could probably work out. There aren't that many of them. I don't think the cost would change all that drastically. Imperial: I can certainly agree with Councilman Tury's intent. I think it is an excellent start. We have tried to do many things in this City, the Recreation Center, repair Zapopan, many things that would benefit certain areas. This would give this Council a chance to touch with a helping hand every citizen in the City of Rosemead. I can certainly endorse this as a healthy start. I think we ought to pursue it. I think we ought to direct the City Manager to bring us some figures, put this package all together and go from there. Mayor: Do you suggest that Mr. Kress and Mr. Andrews get together and bring us some figures that would be acceptable... Tury: Mr. Mayor, I think what we have to do before we do that, they can have an informal conversation, but we are 'going to have to in- corporate this into what we have already agreed upon, and have a total package for the Council before we can make a formal offer to Modern. Imperial: May I finish, Mr. Mayor. I would like to, hopefully, see this package put together, touching all the citizens of Rose- mead, whether they live in Condos or single-family dwellings. Tury: By the way, I tried to get..I also ran this up with businesses, but the figures come out in excess of a million dollars more than this, which would be like a little bit staggering so I backed off. CM 11-22-83 Page #5 Taylor: How do you mean, Lou? Tury: By adding all the commercials in town into this formula, where they would have a frozen rate. It came out to $2,500,000. Taylor: Right now the commercial businesses are not included. Tury: They are not included in this. This only includes resi- dential property. Taylor: I think that we better tread softly there. Tury: The only reason that did that, was when they mentioned con- dominiums, and then we started thinking about some other things. When Frank gave me the figures when we walked in tonight, I told him that was totally unacceptable. I think that just sticking with the residences, but I think that we have to include all the residents who pay their trash bills, and that would include the condominiums. I don't know how they are collected or how they are billed, but there must be some way of working around that. Tripepi: Question to Mr. Andrews. Can those condos and apart- ment complexes be easily separated out by the accountant for us for those purposes? Andrews: Yes. You are dealing with those in bins. There are 50 to 100 of them and we can isolate those very rapidly. Maybe I mis- understood, but the last time I was here, I understood that basic- ally we had this thing resolved with the exception of the problem .of the dump fee formula. My understanding is, addressing myself to Mr. Taylor, we have basically agreed with the proposal submitted by the City to us with the exception of the dump problem and in some manner to verify our numbers at a later date if a need for an audit develops. We then opened the books and your people then went in and looked at them and got the numbers they needed, and now my understanding 'was once we got this formula, now we were to the point.where we have now agreed. You submitted a proposal to us, we have accepted that proposal with the exception of this dump thing which I thought we put that to rest. While I think that it an excellent suggestion that has been made to share the costs of this by some type of supplementation to the residents. I think it is an excellent program if you can afford to do that. I feel that as far as Modern is concerned, they are not necessarily involved in that. That is basically between the City and its residents. I would like to see us now, extracted from the further study and putting further numbers together and see if we can't put this thing to rest based on the proposal submitted to us by the City. Tury: I think that there is nothing more to do than to.put this thing together in a comprehensive package. That is all we want. Taylor: What Mr. Andrews is referring to..a total package ...this item being the last one to be resolved. I am not saying it is the last one. Generally, what was presented, as Mr. Andrews stated that they were in agreement with the original six or eight items or recommendations of the counterproposal that the City made, well that is fine. As Mr. Tury stated it needs to come back in a com- plete package now, so that we can go back and make reference to the original proposal, the counter proposal, the issues in the lawsuit that was filed, so that there is no misunderstanding. That we can get it cleaned up as a total package. Tury: I am sure, Bob, that you as well as we would like to have this done so that we are not going back over this again. Let's do it this time. It has been a long,hard haul, and I can only speak for myself, but I have just about.. I have decided that if we could not do anything tonight, I was just going to forget about it. So I think that putting the package together, and part of that package was the acceptable audit proceedure which I heard that you have agreed to that Ron has drawn up. The Council would like to see that. We have not really seen any of that. We will put together a complete and comprehensive package and let's go. Mayor: How much time, Mr. Tripepi, would be needed for the.dompletion? CM 11-22-83 Page #6 Tripepi: Well, much of that package is going to be the legal document itself which will come from. Mr. Andrews and the City Attorney. Kress: Well, I think we can have a report with all of the items that Mr. Taylor requested, I think we can have that on the next Agenda because most of the work'has already been done:' The final reincorporation of the franchise agreement that won't be done by the next Agenda, but I think that we have to have a decision from the Council on what-and obviously an agreement by the Contractor as to what is going to be contained in that document before it can be drafted. So I would propose at your next meeting that we have this on the-Agenda with a recapitulation of.,those items that-.ap-, peared to have been agreed to. If you read the verbatim minutes, we can go from there. Tury: We are going to try to work out the missing residents that I have on this sheet. O. K. the Condos. It will adjust the figures a little bit, but it can't be that much. Mayor.: Does the whole Council agree? Taylor: Fine, Mr. Mayor. Imperial: Fine, Mr. Mayor. Mayor: That's as it will be, Mr. Kress and Mr. Andrews. VI. MATTERS FROM OFFICIALS A. Councilman Cichy stated that if there are any changes to the events for the 25th Anniversary celebration for Rosemead, it should be brought up as soon as possible since publicity for the various events will be placed in the newsletters and the City Calendar. B. Councilman Imperial inquired about the up-dated ordinances. Robert Kress, City Attorney, stated that the Planning Commis- sion is now working on the Zoning Code, and that is where time is being spent. Councilman Taylor had requested a road map from the old code to the new code, step by step, and that is taking a lot of extra time. He urged the Council to read the draft of the. Municipal Code as a whole. The thrust of that document was to put together a coherent Municipal Code that takes care of the pro- blems of the City, and is being offered for the Council's consider- ation. The information which was requested by Councilman Taylor should be in the Council's possession after the first of the year. C. Councilman Taylor stated that the possibility of a foot- bridge,over the wash for the school children to use has been brought up over the years. He requested information regarding this possi- bility.be brought back to the Council to study. Councilman Imperial stated that he had requested this informa- tion a couple of weeks ago and he felt that information was forth- coming. D. Councilman Taylor requested an up-date of the Sheriff's Department investigation. CM 11-22-83 Page #7 VII. ORAL COMMUNICATIONS A. Natu Patel, 8544 Mission Drive, inquired if the police were responsible to notify the proper authorities if a street light was not on. Mayor Cleveland stated that he should meet with the staff to have his questions answered and his problems resolved, and he requested that the City Manager set up a meeting with Mr. Patel that would be mutually convenient. There being no further business, Mayor Cleveland adjourned the Meeting in memory of John F. Kennedy to the next regular Meet- ing on December 13, 1983 at 8:00 p. m. Respectfully submitted: City lerk APPROVED: MAYOR CM 11-22-83 Page N8