CDC - 02-26-08•
Minutes of the Regular Meeting
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
February 26, 2008
Chairman Tran called the regular meeting of the Rosemead Community Development Commission to order
at 6:00 p.m. in the conference room of City Hall, at 8838 E. Valley Boulevard, Rosemead, California. The
pledge to the flag was led by Commissioner Taylor and Chairman Tran led the invocation.
ROLL CALL OF OFFICERS:
Present: Commissioners Clark, Low, Taylor
Vice-Chairman Nunez, Chairman Tran
Absent: None
1. PUBLIC COMMENTS FROM THE AUDIENCE - None
2. CONSENT CALENDAR
A. Minutes
February 12, 2008 - Regular Meeting
Minutes of February 12, 2008 were deferred to the next Commission meeting for further discussion
regarding a closed session item.
Commissioner Taylor asked why staff stated "no reportable action" on the minutes when the Commission
actually did vote to spend $20,000 on appraisals. Mr. Taylor felt the action taken should have been
disclosed.
Executive Director Chi expressed the conversation in question took place in closed session.
Chairman Tran asked to have the minutes held until the next meeting so the attorney can be present for
discussion.
C. Project Area Merger
On November 20, 2007, the Rosemead Community Development Commission (CDC)
approved a professional services agreement with Urban Futures Incorporated
commencing the merger Project Area Nos. 1 and 2. To move forward in that process, the
CDC must adopt a resolution authorizing staff to initiate all aspects of the project area
merger.
Recommendation: Adopt Resolution No. 2008-05 authorizing staff to initiate all aspects
of the proposed Amendment to the Redevelopment Plans for the Rosemead
Redevelopment Projects Nos. 1 and 2.
Rosemead Community Commission Meeting
Minutes of February 26, 2008
Page 1 of 4
o •
Vice-Chairman Nunez made a motion, second by Commissioner Low to approve Consent item C.
Vote resulted in:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
Juan Nunez, Rosemead resident, asked what the advantages were by merging because he felt it was not a
good idea and money should be spend within that project.
Executive Director Chi stated the advantage of merging the project areas is that the city would then be able
to spend any tax increment dollars from one project area and the other. It also gives Community
Development Commission and the City more flexibility in where those dollars are spent.
Commissioner Clark commented on it is ironic because the project in the southern part of the city actually
subsidizing the one in the north.
B. Resolution No. 2008.04 Claims and Demands
Recommendation: Adopt Resolution No. 2008-04 for payment of Commission
expenditures in the amount of $34,809.93 demands no. 8191 through 8194 and 9339
through 9343.
Commissioner Clark inquired about payments made to Wallin and Kress and asked staff to check on how
much the lawsuit of the Garvey School District has cost the City to date.
Executive Director Chi responded there were a couple of items they were finishing up for the city, one of
them related to the Wal-Mart and Garvey School District lawsuit. Mr. Chi explained the lawsuit had not yet
settled and the general direction given was that the old city attorneys would finish the pending litigations of
the City, which have recently been completed.
Commissioner Taylor asked staff about the pro-bono work done by the attorneys; was it for the lawsuit with
Wal-Mart or was it for the Garvey School District against the City.
Chairman Tran stated the Garvey School District initiated the lawsuit and their attorney fees were pro bono
through Cory Briggs.
Commissioner Taylor reminded staff he had previously requested updates regarding the Wallin and Kress
law firm.
Executive Director Chi responded staff had not heard from Ms. Lisa Kranitz yet.
Commissioner Clark asked staff why the retirement plans being paid through Community Development.
Rosemead Community Commission Meeting
Minutes of February 26, 2008
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• •
Executive Director Chi explained to the Commission that part of the allocation for each employee working
on Community Development Commission issues a portion of the cost is paid through the Community
Development Commission account.
Assistant Executive Director Hawkesworth indicated that in the past staff would determine a sum of money
would be needed from CDC and pay that amount to the City, in which then, the City would pay CaIPERS.
Rather than doing a transfer to the City and having the City pay all in one sum, staff began paying directly
from CDC to CalPERS.
Executive Director Chi clarified that under state law it is neither appropriate or legal for a redevelopment
agency to transfer funds from an agency to the city without having a cost allocation study done of what the
costs are paying for. A second issue was the Community Development Commission tax increment
generation did not generate enough revenue to justify the transfers at one point.
Commissioner Taylor asked staff for reports that can better explain the situation.
Chairman Tran indicated staff had given a report to the Commission in the past regarding transferring funds
from CDC to the City and vice versa that were paid through the general fund.
Executive Director Chi explained in the past, transferred taxable bond proceeds were not an appropriate
use of those funds, and to justify that situation staff begun charging employees who perform services for
the redevelopment agency a percentage of their time spent on Community Development Commission
related issues.
Commissioner Taylor asked staff to give the Commission the memo where staff is referring to what Mr. Chi
is talking about.
Commissioner Tran reiterated from now on the Community Development Commission will be appropriately
paying out of the correct account and showing individual cost instead of paying a lump sum to the City.
Commissioner Low asked staff how long had the transfer of funds been in practice.
Commissioner Taylor stated to go back and get the approvals of what the City Attorney did for that because
there is a section number that allows the City to switch it over.
Vice-Chairman Nunez stated staff should refer back to when the law was changed to better explain what
they are doing.
Vice- Chairman Nunez made a motion, second by Commissioner Low to approve consent item B.
Vote resulted in:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
Rosemead Community Commission Meeting
Minutes of February 26, 2008
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3. MATTERS FROM THE CHAIRMAN & COMMISSIONERS
4. MATTERS FROM THE EXECUTIVE DIRECTOR & STAFF
Executive Director Chi introduced and welcomed the new Park and Recreation Director David Montgomery
Scott, who came from the City of Norwalk.
5. ADJOURNMENT
The meeting adjourned at 6:20 p.m. The next regular Community Development Commission meeting is
scheduled to take place in March 25, 2008 6:00 p.m.
Respectfully submitted:
c4C1
Gloria Molleda
Commission Secretary
Rosemead Community Commission Meeting
Minutes of February 26, 2008
Page 4 of 4
Approved:
i 0
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES SS.
CITY OF ROSEMEAD )
1, Gloria Molleda, Commission Secretary for the City of Rosemead, do hereby
certify that the minutes from February 26, 2008, were duly and regularly approved and
adopted by Rosemead Community Development Commission on the 25th of March,
2008, by the following vote to wit:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain:None
Absent:None
Gloria Molleda
Commission Secretary