CC - Minutes - 02-22-11Minutes of the
Community Development Commission
and
City Council
February 22, 2011
The regular meeting of the Rosemead Community Development Commission, 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 Low
INVOCATION: Chair /Mayor Taylor
PRESENT: Chair /Mayor Taylor, Vice - Chair /Mayor Pro Tern Ly, Commissioners /Council Members Armenta,
Clark and Low
STAFF PRESENT: City Manager Allred, City Attorney Richman, Assistant City Manager Hawkesworth,
Community Development Director Wong, Director of Finance Brisco, Director of Parks and Recreation
Montgomery- Scott, Economic Development Manager Ramirez, Public Works Director Marcarello, and City
Clerk Molleda
1. ORDINANCES READ BY TITLE ONLY
State law requires that all ordinances be read in full prior to the City Council /Agency Board taking
action; however, by motion, unanimously adopted, the City Attorney can be instructed to read all
ordinances by title only.
Recommendation: That the City Attorney be instructed to read all ordinances which appear on this
agenda by title only, and that further reading be waived.
Vice - Chair /Mayor Pro Tern Steven Ly made a motion, seconded by Commissioner /Council Member
Sandra Armenta, to approve ordinance 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 and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 1 of 11
3. JOINT PUBLIC HEARING CITY COUNCILICOMMUNITY DEVELOPMENT COMMISSION
A. Purchase and Sale Agreement for the Site Located at 8832 Glendon Way and a Public
Hearing Pursuant to Section 33433 of the California Redevelopment Law
The Community Development Commission will consider approval of an agreement for the
purchase of the Glendon Hotel by the Qiao Garden Hotel Investment, Inc.. As a result of the
transaction, the Commission will be paid a total of $3.8 million. In addition, the Qiao Garden
Group has submitted plans to renovate the hotel into an upscale facility that will generate
increased Transient Occupancy Tax (TOT) revenues to the City. The terms of the sale
include a purchase price of $3,247,700.30, a $1 million down payment, and the execution of
promissory note in the amount of $2,247,700.30 to be paid over seven years at a 6.25%
annual interest rate. Again, at the completion of the seven years, a total of $3.8 million will
have been paid to the Commission.
Recommendation: That the following actions are taken:
1. The Community Development Commission and the City Council open the noticed public
hearing to receive public comment;
2. The City Council file the Notice of Exemption for the project and adopt Resolution No.
2011 -09, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD TO APPROVE THE SALE OF THAT PROPERTY
KNOWN AS ASSESSOR'S PARCEL NUMBER 5390 - 018.904
AND MORE COMMONLY KNOW AS 8832 GLENDON WAY IN
THE CITY OF ROSEMEAD TO QIAO GARDEN HOTEL
INVESTMENT, INC. IN ACCORDANCE WITH CALIFORNIA
HEALTH AND SAFETY CODE SECTION 33433, AND MAKING
FINDINGS IN SUPPORT THEREOF
3. The Community Development Commission approve the Purchase and Sale Agreement
and authorize the Commission to enter into escrow with the Qiao Garden Hotel
Investment, Inc. for the sale of the Glendon Hotel.
Economic Development Manager Ramirez reviewed the staff report.
Chair /Mayor Taylor opened the Joint Public Hearing of the Community Development Commission/ City
Council at 6:07 p.m.
Juan Nunez — asked how much the property was purchased for.
Chair /Mayor Taylor replied the property was purchased for approximately $4.8 million.
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 2 of 11
Mr. Nunez - asked if repairs are needed in the property.
Executive Director / City Manager Allred explained the Qiao Garden Group plans to invest about $2 million to
upgrade the hotel to a four star hotel development.
Mr. Nunez — stated that the previous management company requested a loan from the Commission to make
repairs on the hotel and asked how much.
Chair /Mayor Taylor replied that it was about $70,000 or a $50,000 loan with two increment payments.
Mr. Nunez — expressed concern that the City lost tax revenue and supports the City in selling the hotel.
Chair /Mayor Taylor closed the Joint Public Hearing of the Community Development Commission /City
Council at 6:10 p.m.
Chair /Mayor Taylor inquired about the close of escrow instructions reading, "the date of closing shall be the
date that a grant deed for the property in favor of buyer is recorded in the official records of the Los Angeles
County Recorder's office" and asked if a date was certain for the closing of escrow.
Executive Director /City Manager Allred replied the project had a 60 day escrow closing date and will be
placed in the agreement.
Chair /Mayor Taylor referred to page 8 on sub - paragraph B, "the days following the effective date the buyer
shall prepare and deliver to the City drawings and specifications" and asked if the effective date is February
22nd
Executive Director /City Manager Allred asked Mrs. Ramirez when the buyer would present their plans or their
improvements to the Commission.
Economic Development Manager Ramirez replied if approved the effective date would be February 22, 2011
and they would have 15 days to submit.
Agency Attorney Richman stated that it was 15 days on the outset.
ChairlMayor Taylor asked for clarification on the effective date, the buyer is to deposit $100,000 and then
deposit $950,000.
Executive Director /City Manager Allred explained that a total of $1 million would be the buyer's down
payment and would go towards the close of escrow.
Economic Development Manager Ramirez stated the $100,000 has been deposited which was part of the
buyer's last Exclusive Negotiation Agreement and then would roll over to be used in escrow.
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 3 of 11
Commissioner /Council Member Sandra Armenta made a motion, seconded by Vice - Chair/ Mayor Pro
Tem Steven Ly to direct staff to file the Notice of Exemption for the project and adopt Resolution No.
2011 -09. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
Vice - Chair/ Mayor Pro Tern Steven Ly made a motion, seconded by Commissioner/Council Member
Margaret Clark to approve the Purchase and Sale Agreement and authorize the Commission to enter
into escrow with the Qiao Garden Hotel Investment, Inc. for the sale of the Glendon Hotel. Vote
resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
4. COMMISSION CONSENT CALENDAR
A. Claims and Demands
Resolution No. 2011— 08
Recommendation: to approve Resolution No. 2011 —08, entitled:
A RESOLUTION OF THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF ROSEMEAD
ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM
OF $305,040.15 DEMAND NO. 10104 THROUGH 10105 AND
DEMAND NOS. 11449 THROUGH 11457.
Vice - Chair /Mayor Pro Tern Steven Ly made a motion, seconded by Commissioner/Council Member
Sandra Armenta to approve Commission Consent Calendar. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 4 of 11
5. FROM EXECUTIVE DIRECTOR & STAFF
A. Mid -Year Budget Update
The Council will be provided with a mid -year budget update presentation regarding the 2010-
11 fiscal year budget along with a brief look towards the upcoming fiscal year. The Strategic
Plan identifies key goals and objectives to ensure long -term fiscal sustainability and staff has
been working to ensure that these are met The General Fund revenues have proven to be
stable and are generally in line with budget projections. Assessed property values have
increased slightly this year while countywide property values have declined. Sales tax
revenue is projected to meet budget expectations. There is a large increase in building
permit revenue due to the Edison facility expansion. Most other revenues have not varied
significantly from budget estimates.
Recommendation: That the City Council receive and file the mid -year budget update.
Finance Director Brisco presented a PowerPoint presentation.
Commissioner Low asked what the capital outlay was.
Finance Director Brisco explained capital outlay represented a purchase of a truck or machinery the city
made.
Commissioner Clark asked for explanation on what 100 percent of the midyear meant.
Executive Director Allred replied it meant the projection of the end of the fiscal year.
Finance Director Brisco continued with the presentation.
Chair Taylor asked for explanation on the projected amount for local transportation and asked about the
shortage percentage.
Finance Director Brisco stated there had not been the ridership that was anticipated by staff.
Executive Director Allred added that the projection included the Rosemead Explorer Transportation service
and the gas tax service.
Finance Director Brisco stated that the City has $500,050 of Proposition 42 prop tax money that was not
spent and will be carried over to the following year.
Commissioner Clark asked what the current cost of the shuttle services was.
Executive Director Allred replied its $0.50 cents a ride per person.
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 5 of 11
Commissioner Armenta added that the cost per person was $1 and seniors are free.
Chair Taylor inquired about the tax increment issue relating to a lawsuit which was filed by the L.A. County
College District stating that the County miscalculated the tax increment rates and are seeking that all
Redevelopment Agencies reimburse the Community College District back 17 years of all tax increments.
Agency Attorney Richman stated the concerns being discussed are the statute of limitations.
Chair Taylor stated that the City's sales tax has decreased down $70,000 which was about 2 percent of the
$3.5 million generated.
Finance Director Brisco added that because of the increase of gas prices it has helped sales tax in the City.
Commissioner Armenta asked for copies of the presentation.
The City Council received and filed the mid -year budget update report.
6. CLOSED SESSION
A. Conference with Legal Counsel Government Code 54956(c): Pending Litigation
1. Los Angeles Community College District v. County of Los Angeles CDC, Rosemead
CDC et al., LASC No. BS130308.
2. NRDC v. County of Los Angeles, City of Rosemead et al., LASC No. 08 -1467.
3. Evanston. V. Rehab Financial, City of Rosemead SFSC Case No. GCG -10- 501558
The Commission /City Council recessed to Closed Session at 6:42 p.m.
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 6 of 11
Minutes of the
City Council Meeting
The regular meeting of the Rosemead City Council was called to order by Mayor Taylor at 7:02 p.m. in the
Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California.
FLAG SALUTE: Council Member Low
INVOCATION: Mayor Taylor
PRESENT: Mayor Taylor, Mayor Pro Tern Ly, Council Members Armenta, Clark and Low
STAFF PRESENT: City Manager Allred, City Attorney Richman, Assistant City Manager Hawkesworth,
Community Development Director Wong, Director of Finance Brisco, Director of Parks and Recreation
Montgomery- Scott, Economic Development Manager Ramirez, Public Works Director Marcarello, and City
Clerk Molleda
City Attorney Richman had no reportable actions from Closed Session.
7. PUBLIC COMMENTS FROM THE AUDIENCE
Brian Lewin — thanked Mayor Taylor for his service of 37 years in the City of Rosemead.
Agenda Item 10A was moved up for discussion.
10. MATTERS FROM MAYOR & CITY COUNCIL
A. Update Concerning California LadyHawks
Due to its long affiliation with the City of Rosemead, the California LadyHawks requested that
the City Council, at its regular meeting of September 28, 2010, waive facility fees. City
Council authorization was necessary as the LadyHawks does not possess official 501(c)(3)
non - profit agency status, which is a City requirement for fee waiver. City Council authorized
the fee waiver through the close of the travel softball season in February 2011, with the
understanding that the LadyHawks would pursue the required non - profit status, which they
are currently doing. At this time, they are asking that City Council continue the fee waiver.
Recommendation: That the City Council provide direction regarding an extension of sports
facility use fee waiver for the California LadyHawks.
Jose Quezada — stated that the LadyHawks were seeking a fee waiver extension for a the use City facilities
and added the organization has applied for 501(C) (3) non - profit organization status.
Mayor Pro Tem Ly stated he was in support of extending the fee waiver for another six months.
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 7 of 11
Council Member Armenta stated that Council and staff knew that it would take more than six month to
obtain a non - profit status for the LadyHawks.
Council Member Low stated that she made a donation to the Ladyhawks to help with some cost and asked
Mr. Quezada if they had enough funds saved up to apply for non - profit status.
Mr. Quezada — replied that the LadyHawks are saving the money donated to them to utilize it towards the fee
of the non - profit status.
Council Member low stated she was comfortable with extending the fee waiver.
Mayor Pro Tern Steven Ly made a motion, seconded by Council Member Margaret Clark to extend the
sports facility use fee waiver for the California LadyHawks for six months. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
8. PRESENTATIONS TO MAYOR GARY TAYLOR
City Manager Allred present a certificate of recognition on behalf of Congresswoman Judy Chu to Mayor Gary
Taylor for his service to the City of Rosemead.
Bob Bruesch representative of the Garvey School District congratulated Mayor Gary Taylor for his service
and commitment to the City.
Fred Mascarro and Ron Esquiviel representatives of the Rosemead School District thanked Mayor Gary
Taylor for everything he has done for the schools and students in the community.
Theresa Velasco, Board of Trusties of El Monte Union High School District and Larry Cecil, Principal of
Rosemead High School, presented Mayor Gary Taylor with a certificate of recognition for his work and
support with Rosemead High School students.
Thomas Wong, representative of Assembly Member Mike Eng 49th District presented Mayor Gary Taylor with
a certificate of appreciation for his many years of service and dedication to the City of Rosemead.
Assistant Fire Chief Nick Devali of the Los County Fire Department presented a certificate of recognition to
Mayor Gary Taylor for his years of service and support.
Joe Fennel of the Los Angeles County Police Department and Chief of Police Tim Murakami presented a
certificate of recognition of service and commitment for over 37 years.
Amy Wu, President of Rosemead Chamber of Commerce presented a certificate of recognition and
congratulated Mayor Gary Taylor for his encouragement and support in the community.
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 8 of 11
Henry Velasco, Treasurer of the City of El Monte presented Mayor Gary Taylor with a plaque for his years of
service to the community.
Mayor Pro Tem Ly commended Mayor Gary Taylor for his advice, service, and commitment to the City.
Council Member Low thanked and presented Mayor Gary Taylor, on behalf of the City Council, with a
plaque of recognition for his 37 years of service from 1974 through 2011.
Council Member Clark presented Mayor Gary Taylor with a gavel and thanked him for his years of service.
Council MemberArmenta presented Mayor Taylor with a commemorative street sign with his name and
commended him for his service.
Mayor Taylor stated that is was a pleasure serving the City and thanked his family and friends for all their
support.
9. CITY COUNCIL CONSENT CALENDAR
Minutes of January 11, 2011 were deferred to the next meeting.
A. Minutes
January 11, 2011 — Regular Meeting
B. Claims and Demands
Resolution No. 2011— 08
Recommendation: to approve Resolution No. 2011 — 08, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD ALLOWING CERTAIN CLAIMS AND DEMANDS
IN THE SUM OF $690,753.21 NUMBERED 101149 THROUGH
101158 AND 72569 THROUGH 72713 INCLUSIVELY
C. Consideration to Cancel the March 8, 2011 Community Development Commission and
City Council Joint Meetings
Due to the upcoming municipal election scheduled on March 8, 2011, it is necessary that
the City Council consider action to cancel the March 8, 2011, Community Development
Commission and City Council Meetings. The next regular scheduled meeting date will be
March 22, 2011.
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 9 of 11
Recommendation: That the City Council cancel the March 8, 2011, Community
Development Commission and City Council meetings.
D. Rosemead Community Recreation Center Expansion — Award of Contract for
Architectural Services
As part of the City's Fiscal Year 2010 -11 Capital Improvement Program, the City Council
approved funding to renovate and expand the Rosemead Community Recreation Center
(RCRC). The existing facility was built in 1975 and is approximately 17,000 square feet in
size. The RCRC serves as a major community recreation facility that houses senior
programs, recreation classes, special functions, and community events. Proposed
improvements include fagade /beautification improvements, improved disabled access,
building /safety improvements, heating /ventilation system upgrades, and a building expansion
to house a computer lab, small teen center, and recreation staff offices. It is the intent that
these improvements will incorporate energy conservation features to help achieve the US
Green Building Council's Leadership in Energy and Environmental Design (LEED) at a silver
equivalent rating.
Request for Proposals (RFPs) were mailed out and on February 2, 2011, eight (8) proposals
were received by the City Clerk's office. Staff reviewed the proposals for completeness,
understanding of scope of work, methodology, experience, and proposed cost. Interviews
were subsequently conducted with the top four (4) architectural firms.
Recommendation: That the following actions are taken:
1. The Community Development Commission authorize the expenditure of redevelopment
bond proceeds in the amount of $208,500; and
2. The City Council authorize the City Manager to enter into a professional services
agreement with Carde Ten Architects in an amount not to exceed $208,500 from existing
redevelopment bond proceeds to develop schematic designs, construction documents
and provide construction support services for the Rosemead Community Recreation
Center Expansion and Building Improvement Project.
Mayor Pro Tern Steven Ly made a motion, seconded by Council Member Polly Low to approve
Consent Calendar items B, C and D with the Exception of the minutes of January 11, 2011. Vote
resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 10 of 11
11. ADJOURNMENT
The meeting adjourned to a reception in honor of retiring Mayor Gary Taylor at 7:45 p.m. The next regular
joint Community Development Commission and City Council meeting is scheduled to take place on March 22,
2011 at 6:00 p.m. and 7:00 p.m., respectively.
ven Ly, Mayor
ATTEST:
c3 G VL
Gloria Molleda
City Clerk
Rosemead City Council and Community Development Commission Joint Meeting
Minutes of February 22, 2010
Page 11 of 11
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
I, Gloria Molleda, City Clerk for the Rosemead City, do hereby certify that the minutes from
February 22, 2011, were duly and regularly approved and adopted by the Rosemead City Council
on the 27th of September 2011, by the following vote to wit:
Yes: Armenta, Clark, Low, Ly,
No: None
Abstain: Alarcon
Absent: None
Gloria Molleda
City Clerk