CC - Minutes - 12-10-19 MINUTES OF THE
CITY COUNCIL, SUCCESSOR AGENCY TO
THE COMMUNITY DEVELOPMENT COMMISSIONAND
HOUSING DEVELOPMENT CORPORATION
REGULAR JOINT MEETING
DECEMBER 10,2019
The regular meeting of the Rosemead City Council was called to order by Mayor Clark at
7:00 p.m., in the Rosemead City Council Chamber located at 8838 East Valley Boulevard,
Rosemead, California.
PRESENT: Mayor Clark, Mayor Pro Tern Armenta, Council Members Dang and Ly
ABSENT: Council Member Low
PLEDGE OF ALLEGIANCE was;led by Council Member Ly
INVOCATION was led by Mayor Pro Tern Armenta
STAFF PRESENT: City Manager Molleda, Assistant City Manager Kim, City Attorney
Richman, Sergeant Fiedler, Director of Public Works Daste, Acting Director of Finance Torrez,
and City Clerk Hernandez
1. PUBLIC COMMENT
Mayor Clark opened the Public Comment period.
_ F
Speaker Bryan Mesiri'as Perez, Candidate for the State Assembly, indicated he was
sharing the following concerns residents expressed to him: 1) Suggested having
law enforcement presence near Shuey Elementary School to discourage speeding
and possibly designating a student drop-off area; 2)-Recommended that the City
install speed bumps or a stop sign on Encinita Avenue and adjacent streets
surrounding Rosemead Park. He noted that residents living in the vicinity
of Rosemead Park are willing to participate in a survey to help support the request
for installation of speed bumps or an additional stop sign; 3) Asked where tax
revenues are going when residential homes are almost immediately getting zoned
as a multi-family unit with two stories; and 4) Inquired if it is necessary to have
five massage establishments within a three-mile radius in the city.
Mayor Pro Tem Armenta opined that Mr. Perez should have contacted the City first
so that staff could address his concerns; explained that Rosemead has a strict
ordinance when it comes to renovating a home and determining what can be built
depending on the size of the lot; asserted that that the California State Controller's
Office named the City of Rosemead the number one financially stable city in the
San Gabriel Valley. Ms. Armenta explained a liability factor must be considered
when discussion of installation of speed bumps arises; stated that she appreciates
Rosemead City Council, Successor Agency to the Community -
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
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Mr. Perez presenting these concerns to the City Council,however, encourages him
to schedule an appointment with the City Manager for further questions.
Mayor Clark explained to Mr. Perez that the City Council cannot address his
concerns in detail tonight per the Brown Act as it is not agendized for discussion.
There being no other comments, Mayor Clark closed the Public Comment period
2. PRESENTATIONS
A. Introduction of Newly Hired Public Works Manager Erik Garwick and Interim
Finance Director Robert Torrez
Director of Public Works Daste introduced Public Works Manager Erik Garwick.
City Manager Molleda introduced Interim Finance Director Robert Torrez.
3. PUBLIC HEARING -None
4. CONSENT CALENDAR
ACTION: Moved by Council Member Ly and seconded by Mayor Pro Tem Armenta to
approve Consent Calendar Items A through M. Motion was carried out by the following
vote AYES: Armenta, Clark,Dang,Ly ABSENT: Low
A. Claims and Demands
• Resolution No. 2019-63
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD, CALIFORNIA, ALLOWING
CERTAIN CLAIMS AND DEMANDS IN THE SUM OF
$1,441,758.97 NUMBERED 104865 THROUGH
NUMBER 104958 INCLUSIVELY
Recommendation: Adopt Resolution No. 2019-63.
• Resolution No. 2019-64
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD, CALIFORNIA, ALLOWING
CERTAIN CLAIMS AND DEMANDS IN THE SUM OF
$1,297,142.52 NUMBERED 104959 THROUGH
NUMBER 105086 INCLUSIVELY
Recommendation: Adopt Resolution No. 2019-64.
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
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Minutes of December 10, 2019
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•
• Resolution No. 2019-12 SA
A RESOLUTION OF THE CITY OF ROSEMEAD AS
THE SUCCESSOR AGENCY TO THE ROSEMEAD
COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF ROSEMEAD ALLOWING CERTAIN
CLAIMS AND DEMANDS IN THE SUM OF $53.35
NUMBERED 10274 THROUGH NUMBER 10274
INCLUSIVELY
Recommendation: Adopt Resolution No. 2019-12 SA.
• Resolution No. 2019-13 SA
A RESOLUTION OF THE CITY OF ROSEMEAD AS
THE SUCCESSOR AGENCY TO THE ROSEMEAD
COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF ROSEMEAD ALLOWING CERTAIN
CLAIMS AND DEMANDS IN THE SUM OF $36,737.97
NUMBERED 10276 INCLUSIVELY
Recommendation: Adopt Resolution No. 2019-13 SA.
• Resolution No. 2019-12 RDHC
A RESOLUTION OF THE ROSEMEAD HOUSING
DEVELOPMENT CORPORATION OF THE CITY OF
ROSEMEAD ALLOWING CERTAIN CLAIMS AND
• DEMANDS IN THE SUM OF $204,800 NUMBERED
1613 INCLUSIVELY
Recommendation: Adopt Resolution No. 2019-12 RHDC.
B. Approval of Minutes
Recommendation: That the City Council approve the special and regular meeting
minutes of May 14, 2019 and October 8, 2019.
C. City Council Meeting Calendar Schedule for 2020
City Council meetings are held on the second and fourth Tuesdays of each month
at 7:00 p.m. Historically, the City Council has cancelled the second meeting in
August (summer break), November (Thanksgiving), and December (Christmas).
Adopting a meeting schedule will give the City Council, staff, and the community
the ability to plan their schedules accordingly. The City Council maintains the
ability to adjust, cancel, and/or add other meeting dates, as deemed appropriate.
Recommendation: That the City Council adopt a City Council meeting schedule for
the 2020 calendar year.
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Development Commission, and Housing Development Corporation
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Minutes of December 10, 2019
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D. Ordinance No. 990 — Second Reading and Adoption: Amending Chapter 3.24 to
Tile 3 of the Rosemead Municipal Code Creating a Local Area Veteran Vendor
Preference in Non-public Works City Contracting Procedures
On November 12, 2019, the City Council introduced for first reading, by title only,
Ordinance No. 990, by amending Chapter 3.24 to Title 3 of the Rosemead
Municipal Code creating a local area veteran vendor preference in non-public
works city contracting procedures.
Recommendation: That the City Council approve the second reading and adoption
of Ordinance No. 990 by title only, entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD, CALIFORNIA, AMENDING
CHAPTER 3.24 TO TITLE 3 OF THE ROSEMEAD
MUNICIPAL CODE RELATING TO PREFERENCES
FOR LOCAL AREA VETERAN VENDORS
E. Transmittal of Fiscal Year 2018-19 City of Rosemead and Rosemead Housing
Corporation Annual Financial Reports
The City of Rosemead Comprehensive Annual Financial Report and Rosemead
Housing Development Corporation Financial and Compliance Report provide a
complete presentation of the finances of the City of Rosemead and the Housing
Development Corporation.
Recommendation: That the City Council receive and file the City of Rosemead
Comprehensive Annual Financial Report and Rosemead Housing Development
Corporation Annual Financial Statement for the Fiscal Year ending June 30, 2019.
F. Assignment of Freeway Corridor Mixed-Use Overlay Zone and CEQA
Analysis/Report Award of Contract to RRM Design Group
In accordance with Strategic Plan Strategy 1(C), on July 29, 2019, the Community
Development Department issued a Request for Proposal to seek qualified land use
planners, urban designers, and environmental professionals to assist the Planning
Division with preparing a Freeway Corridor Mixed-Use Overlay Zone for areas
along the Interstate 10 Freeway corridor on-and off-ramps within the City limits
(project area). The project includes the preparation and completion of project
related General Plan, Zoning Code, and Zoning Map amendments. The Planning
Division will utilize the Senate Bill 2 grant funds to compensate all Consultant fees.
Recommendation: That the City Council take the following actions:
1. Authorize the City Manager to execute a contract agreement with RRM Design
Group in the amount of$160,000; and
2. Appropriate $160,000 from the unassigned General Fund Balance from the
111
Fiscal Year 2019-20 Budget.
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G. Ratify Emergency Expenditures and Accept Traffic Signal Improvements at Valley
Boulevard and Ivar Avenue
PTM General Engineering Services, Inc. completed the field work for Traffic
Signal Improvements at Valley Boulevard and Ivar Avenue. Emergency repairs on
existing traffic signal equipment, which were not part of the project, became
necessary to complete in order to maintain traffic signal operations at this
intersection. The field work is completed; therefore, staff is requesting the City
Council to ratify a change order to cover the final construction cost including
emergency expenditures and authorize the staff to file Notice of Completion for the
project. -
Recommendation: That the City Council take the following actions:
1. Accept the Traffic Signal Improvements at Valley Boulevard and Ivar
Avenue project as complete;
2. Approve change order of$20,655.09 for emergency expenditures to cover
the final construction cost totaling $137,230.37;
3. Appropriate additional funding of$12,231 in Measure R funds; and
4. Authorize staff to file Notice of Completion for the project.
H. Ratify Emergency Expenditures on Walnut Grove Avenue Sink Hole Repairs
Contractor completed the field emergency work to repair a sinkhole on Walnut
Grove Avenue, south of Valley Boulevard and Walnut Grove Avenue, over the
Rubio Wash. The field work is completed; therefore, staff is requesting the City
Council to ratify a change order to cover the emergency repair cost.
Recommendation: That the City Council take the following actions:
1. Ratify emergency expenditures totaling $69,675.00; and
2. Authorize staff to file a Notice of Completion for the project.
A Resolution of the City Council of the City of Rosemead Adopting a Policy Which
Delegates Tort Liability Claims Processing Responsibilities to the California Joint
Powers Insurance Authority (CJPIA) and Non-covered CJPIA Claims to the City
Manager as Provided for in Government Code Section 910, et seq. and Rosemead
Municipal Code Chapter 3.20.
The City of Rosemead is a member of the California Joint Powers Insurance
Authority and pursuant to Government Code Sections 990.4, et seq. and 6500 et
seq. pools its self-insured liability claims and losses with other California JPIA
members under a Memorandum of Coverage.The Joint Powers Agreement creating
the California JPIA authorizes it to exercise powers common to members and when
appropriate to defend and indemnify members, including the City, from liability
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
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claims under the Memorandum of Coverage terms for the City. The City Council
previously adopted Resolution 2009-48 delegating authority for processing claims
against the City to the California JPIA.
In addition to those claims covered by the Memorandum of Coverage with
California JPIA, there are also claims that must be processed that are not covered
by the Memorandum of Coverage and the City Council now desires to delegate
responsibility for processing those claims to the City Manager or her designee to
better streamline the process.
Recommendation: That the City Council adopt Resolution No. 2019-66, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD ADOPTING A POLICY WHICH
DELEGATES TORT LIABILITY CLAIMS PROCESSING
RESPONSIBILITIES TO THE CALIFORNIA JOINT
POWERS INSURANCE AUTHORITY (CJPIA) AND
NON-COVERED CJPIA CLAIMS TO THE CITY
MANAGER AS PROVIDED FOR IN GOVERNMENT
CODE SECTIONS 910, ET SEQ AND ROSEMEAD
MUNICIPAL CODE CHAPTER 3.20
J. Extensions to Animal Shelter and Care Services Agreements
The animal shelter and care services agreements with Rosemead Animal Hospital
and Volunteers in Defense of Animals are scheduled to expire on December 31,
2019. The proposed extensions would extend the Rosemead Animal Hospital and
VIDA Agreements in order to continue the ongoing animal control services
operated by the Rosemead Public Safety Department.
Recommendation: That the City Council take the following actions:
1. Execute the First Amendment to the Agreement with Rosemead Animal
Hospital with authority to negotiate and execute any contract amendments or
extensions on behalf of the City; and
2. Execute the First Amendment to the Agreement with Volunteers in Defense of
Animals with authority to negotiate and execute any contract amendments or
extensions on behalf of the City.
K. Traffic Commission's Recommendation to the City of Rosemead City Council to
Partially Close Olney Street Between Rio Hondo Avenue and Temple City
Boulevard
Traffic issues on Olney Street came before the Traffic Commission and the City
Council at prior meetings. The City Council directed staff to solicit proposals to
perform a traffic study in the vicinity of Olney Street, Temple City Boulevard and
Rosemead City Council, Successor Agency to the Community
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Rio Hondo Avenue. That traffic study, conducted by the selected Traffic Engineer
Elie Farah of EFI,was presented to the Traffic Commission on November 7,2019.
The Traffic Commission voted to recommend to the City Council a partial
permanent shut down of Olney Street, and short-term mitigating measures to help
ease speeding on Olney Street. For this to occur, the City Council will need to
approve a traffic study to determine if an additional lane for the 2 houses is feasible
and the approximate cost of a permanent partial closure.
Recommendation: That the City Council take the following actions:
1. Accept the Traffic Commission's recommendation to a partial permanent shut
down of Olney Street,and short-term mitigating measures to help ease speeding
on Olney Street; and
2. Approve a traffic study to determine if an additional lane for the 2 houses is
feasible and the approximate cost of a permanent partial closure.
L. Titles of Officers Authorized to Make Deposits and Withdrawals in the Local
Agency Investment Fund (LAIF)
The City of Rosemead invests its funds with the State Local Agency Investment
Fund. LAIF must have on file a City resolution listing the exact names and titles
of officers authorized to make deposits to and withdrawals from the City's LAIF
account. On October 22, 2019, the City Council adopted Resolution No. 2019-59,
designating the City Manager, Assistant City Manager and Director of Finance as
the officers authorized to make deposits to and withdrawals from the LAIF account.
Since the adoption of that Resolution, the Finance Director is no longer with the
City and an Interim Finance Director has been appointed.
Recommendation: That the City Council adopt Resolution No. 2019-65, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD, CALIFORNIA, DESIGNATING
THE CITY MANAGER, ASSISTANT CITY MANAGER,
AND THE DIRECTOR OF FINANCE AS OFFICERS OF
THE CITY
M. Management Analyst Positions for Public Works and Human Resources
The City Council will consider approval of a Management Analyst position in the
Public Works Department and a Human Resources Management Analyst in the
Human Resources Division. The Housing Coordinator position in Community
Development Department became vacant on September 2,2019. Subsequently the
position and workload level were evaluated, and it was determined that a full-time
staffing level is no longer needed in Community Development. As such, Staff is
requesting to eliminate the Housing Coordinator position and transfer the
Rosemead City Council, Successor Agency to the Community
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Minutes of December 10, 2019
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applicable general fund balance to the Public Works Department and Human
Resources Division for the addition of two Management Analysts positions.
Recommendation: That the City Council take the following actions:
1. Adopt Resolution No. 2019-67, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING
THE COMPREHENSIVE SALARY SCHEDULE FOR
ALL FULL-TIME CLASSIFICATIONS IN THE CITY OF
ROSEMEAD
2. Resolution No. 2019-68, 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
5. MATTERS FROM CITY MANAGER& STAFF
A. Award of Contract for Professional Information Technology Management Services
Recommendation: That the City Council take the following actions:
1. Authorize the City Manager to enter into a three-year Management
Professional Services Agreement with Acorn Technology Services for
Information Technology (IT) Management Services for the period ending
December 31, 2023; and
2. Appropriate $15,300 from the IT Technology Replacement fund balance to
offset the current IT Services budget for FY 2019-20.
Assistant City Manager Kim stated the City of Rosemead has historically
contracted Information Technology (IT) management professional services; noted
Interwest Consulting Group has supported the City with IT services since
December 2016 and their contract is scheduled to expire on December 31, 2019;
indicated in the interest of the City, staff released a Request for Proposal (RFP)
to ensure the City retains the highest qualified consulting services at a competitive
cost; asserted after careful consideration of each proposal submitted, including but
not limited to: responses to the Request for Proposal requirements, firms' history
and ability to provide services, proposed staff qualifications, proposed fee
structures, and interviews with all qualified bidding firms, staff believes that
entering into a new contract with Acorn Technology Services would be the best
course of action for the City at this time.
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Mr. Kim pointed out a correction regarding Acorn's service fee that was provided
in the Staff Report, indicated the original annual cost was a sliding five percent
decrease each year with year one being higher than year three; clarified the
proposed cost by Acorn is actually the same for each year, at the year three lower
cost, meaning that the annual cost for each year of service is $130,140 for all three
years and does not decrease. He asserted that it is not the $144,600 for year one,
which is a cost savings for the city; stated there is a one-time not-to-exceed amount
of $14,460 when the service starts to conduct a comprehensive assessment, in
which a recommendation will be made to improve our current IT infrastructure.
Council Member Ly asked if the $14,460 for the comprehensive assessment is
built into the service fee or if another $14,460 will be added to the $130,140.
Assistant City Manager Kim replied the $14,460 will be added only for the first
initial 30-day period.
Council Member Ly stated for clarification that the City would be paying$144,600
for the first year.
City Manager Molleda clarified that the Staff Report does indicate $144,600 and
Acorn was simply providing a breakdown of the first year.
Mayor Pro Tern Armenta expressed frustration that this was the first time she was
receiving this updated information.
Council Member Ly inquired how the miscommunication happened between Acorn
and the City and if Acorn knew it was a three-year agreement.
Assistant City Manager Kim responded that the RFP requested the cost for a
three-year service and when the City reviewed Acorn's proposal it had an amount
for year one, year two, and year three; stated it was his error, explaining when he
saw the three-year breakdown option, he perceived that year one was more
expensive as Acorn needed to familiarize themselves with the City, which is why
years two and three were less expensive; indicated after the report was completed,
Acorn informed him that if the City selects the three-year option it will be at the
lower value; replied the RFP requested a three-year proposal,however, Acorn also
gave the City an option to a one-year or two-year agreement.
Council Member Ly ascertained it appears that Acorn did not follow the RFP as it
requested a three-year proposal.
Mr. Kim asserted that Acorn did provide a three-year proposal as well as additional
options of a one-year or two-year service.
Mayor Pro Tern Armenta reminded the City Council of a similar situation with
the bid for trash hauling services; expressed concern that it is not a fair assessment
to all the prospective bidders for one bidder to provide other options outside of
what was requested in the RFP.
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
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City Manager Molleda responded since Acorn provided additional options,
the City contacted the other five firms to give them the same opportunity to
provide Option A, B and C.
Mayor Pro Tern Armenta queried if the other firms provided additional options,and
if so where could Council find that information.
City Manager Molleda asked.staff if it was included in the Staff Report.
Management Analyst Guerrero replied no.
Mayor Pro Tem Armenta requested to see the additional options that each
firm provided.
Assistant City Manager Kim corrected Ms. Guerrero, stating the other firms'
options were provided in the Staff Report in the table on page seven of eight.
City Manager Molleda explained originally the firms had only provided one annual
cost number, however this table includes a breakdown of each firms' additional
options and final costs as year one,year two, and year three.
Council Member Ly asked if the annual costs each firm provided for year one,
year two, and year three, are definitive or if any firms will have additional wrap up
costs such as Acorn's, that the City will incur.
City Manager Molleda and Assistant City Manager Kim affirmed that is correct.
Mayor Pro Tern Armenta asked if any other firms were charging this transition
phase-in fee, and if so, what was the rationale behind that.
In response to Ms. Armenta, Assistant City Manager Kim confirmed one firm,
Saalex IT, also charged a transitional phase fee of$5,025; stated a new vendor must
utilize extra resources to take account of the City's current infrastructure and
complete more work in the beginning of contract; explained it was each firms'
choice whether to charge the one-time transition phase-in fee.
Council Member Ly asked if there was a typo in the Staff Report as Saalex IT only
has one asterisk in the table, not two asterisks to indicate that it is charging a
one-time transitional phase-in fee.
Assistant City Manager Kim concurred there should have been three asterisks
for Saalex IT.
Mayor Clark inquired if the numbers provided on page seven are the original
numbers that each firm submitted for the three-years; expressed concern that it is
unfair if the firms were able to manipulate and change their original numbers.
City Manager Molleda replied these are the final numbers that the firms submitted;
noted Acorn is present and invited the representative to the dais.
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Ms. Armenta asked if any of the other firms were present this evening.
City Manager Molleda replied Max Power Technology is also present.
Council Member Ly inquired which Acorn staff listed from the team of eight would
be the lead on-site technician.
Mickey McGuire, CEO, Acorn Technology, replied there is a team of 48 in the
organization, noting from the core eight, Matthew Guilbaud will be Rosemead's
on-site technician and provided a brief summary of his credentials and background.
Mayor Pro Tem Armenta expressed confusion that the Fiscal Impact section of the
Staff Report indicates that the IT Technician will be only be part-time; asked how
all three years can be the same amount if there is an initial fee.
Mickey McGuire clarified that the part-time was referring to the City's current IT
Consultant and affirmed Acorn's IT Technician will be full-time; pointed out that
there is a misunderstanding of the options that were provided for pricing, further
explained what Acorn provided is an option for a one-year,two-year, or three-year
agreement; asserted Acorn's pricing approach is to provide a discount if it is a
two-year or three-year agreement as a longer standing relationship has been
established with the client. Mr. McGuire reiterated that the RFP did ask for an
assessment to be conducted within the first 30 days of the agreement; shared that
during the assessment Acorn brings an entire team of people to evaluate everything
from the software, hardware, inventory, and provide a complete diagram of the
IT infrastructure; stated after Acorn Technology compiles this information,the City
is provided a binder with complete documentation and recommendations for the
three-year period.
Mayor Pro Tem Armenta inquired if it is possible that the City would incur the year
one cost of$144,600.
Mr. McGuire replied it is a possibility, which is why Acorn generated the not-to-
exceed amount.
City Manager Molleda informed City Council that there are two separate budgets,
one is for IT Equipment and the other is for IT Services;noted Acorn and the other
firms also proposed to evaluate the funding the City has for equipment to see if the
cost can be reduced there, which is something that has not been done in the past.
Mayor Pro Tern Armenta reiterated the reason Rosemead is fiscally number one in
the San Gabriel Valley is because we make decisions based on all the numbers;
asked what if equipment needs to be purchased and the cost is higher than the
year one not-to-exceed amount of$144,600.
City Manager Molleda repeated that will not be an issue as there is a separate
111 budget allocated specifically for equipment.
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Ms. Armenta asked if that information is included in the Staff Report; emphasized
the importance of including budget details when discussing a contract.
Assistant City Manager Kim replied it was not included in the Staff Report as the
matter being brought to Council for consideration is the on-call consultant service;
made clear to Council that equipment(i.e. hardware)is a separate budget line item.
Council Member Dang sought clarification as the first year is listed as $130,000,
then there is a subsequent assessment fee of$14,000, therefore asked if Acorn is
collecting $130,000 or$144,000 for the first year.
In response, Mickey McGuire stated the first year would be up to $144,000 and
the $14,000 is a not-to-exceed amount.
Council Member Dang opined the second red asterisk states the first 30 days will
include a not-to-exceed assessment fee of $14,460, so the way that reads is the
$14,460 should be imbedded into the $130,000 and not added on top of it.
Council Member Ly concurred with Council Member Dang that staff should have
allocated $14,460 instead of $130,000; inquired if staff is asking Council to
appropriate $15,000 from the depletion fund to cover the $14,460.
Assistant City Manager Kim responded that the current three-year contract with
Interwest Consulting has a set budget of$114,000, which only covered a part-time
technician, not a full-time.
Council Member Ly ascertained that staff should really be asking for $30,000 of
appropriations, not $15,000 because $130,000 minus $115,000 plus some change
would give you roughly $114,000; stated in reality, staff is looking at allocating
$29,000 to be able to fund this since there is an extra$14,460 to allocate for.
Mr.Kim clarified we are halfway through Fiscal Year 2019-20, so staff would only
need a portion of that.
Council Member Ly inquired if Council decides to go with Acorn, then staff is
asking for$24,000 since half of the year is gone.
Assistant City Manager Kim affirmed that is correct.
Council Member Dang referred to page seven of eight of the Staff Report,
"However, the IT services need of the City exceeds 20-hours/week and Interwest
Consulting Group has provided additional ongoing hours at no cost." He asked if
that meant that Interwest worked full-time and did not charge the City for those
additional hours.
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
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Assistant City Manager Kim replied yes, explaining that when the contract was
originally initiated three years ago it was based on 20-hours/week and at that time
the value of the contract was $114,000; noted after the contract was executed the
needs of the City for IT services was greater than the 20-hours/week, as a result,
the City discussed with Interwest and they agreed to provide those additional hours
without increasing the $114,000 contract; informed Council that Interwest was
included in the distribution list when the RFP for IT Services was released this year,
however,they elected not to submit a proposal.
City Manager Molleda commented that Interwest recently began to add additional
hours this year as staff was not happy with the service,which is why they provided
the additional hours at no cost.
There being no further questions for Mr. McGuire of Acorn Technology,
Max Power Technology was invited to the podium.
Mayor Clark inquired if$114,000/per year was the number that Max Power initially
submitted in response to the RFP; asked if City staff contacted their company to
give them the opportunity to provide additional options outside of what was
requested in the RFP.
Jose Gonzalez, Project Manager, Max Power Technology, confirmed Max Power
would be submitting a proposal of$114,000/per year as the contract required it for
three years and with two optional years; stated he was not familiar as to whether
•
their company was informed of providing additional options.
Mayor Pro Tem Armenta asked if the RFP clearly stated it was a three-year term.
Mr. Gonzalez affirmed that Max Power understood it was a three-year term.
Council Member Ly inquired which Max Power Technology representative would
be the lead person on-site managing the City's IT systems.
Mr. Gonzalez acknowledged Tobias Sebastian would be the on-site technician;
provided a brief summary of Mr. Sebastian's credentials and background.
City Attorney Richman stated typically when an RFP is written for Professional
Services it is common to indicate the City is looking for three-years, however if
you have creative options to please present them for the City's consideration;asked
staff to clarify for the City Council's understanding what the RFP stated.
Assistant City Manager Kim referred to Section F of the RFP and read that it states,
"The proposed term of the contract is for three (3) years commencing January 1,
2020, with options for two (2) one-year extensions at the City's discretion."
Council Member Ly broke it down that means it is for three years, with the option
of plus one-year and another one-year.
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
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. Mayor Pro Tem Armenta asked if there is anything referring to the City giving
options for different rates.
Council Member Ly asked staff if rates for year-one were only requested and if that
is why Acorn submitted for just year-one. -
Assistant City Manager Kim explained that Acorn's proposal included year-one at
$144,000,year-two at$137,000 and year-three at $130,000.
Council Member Ly opined the amended Staff Report indicates year-one will be
. $130,000 plus $14,000, totaling $144,000; expressed confusion as to why there
was a need to amend the Staff Report when the original numbers provided were
correct and should have remained at $144,000. Mr. Ly inquired how year-two
and year-three's costs change from $137,000 to $130,000; asked where the
misunderstanding that created this $7,000 difference.
Assistant City Manager Kim replied it was his understanding that year-one was
a little higher due to the comprehensive assessment to be conducted, with the
annual cost decreasing slightly in year-two and year-three; noted when Acorn
reviewed the Staff Report, they clarified what they actually meant was if the city
executes a three-year option that the cost for each year would be $130,000.
Mr. Ly posed the question, if the following numbers were what Acorn submitted in
their proposal—$144,000, $137,000, and$130,000.
Mr. Kim affirmed those are the correct annual costs.
Council Member Ly reiterated his opinion that the original Staff Report was correct
and the City Council should have never received an amended Staff Report; echoed
Mayor Pro Tem Armenta's and Mayor Clark's concern that it appears as though
the City is allowing the acceptance of an amendment for a bid after it already closed.
Mr. Ly opined the City Council should be reviewing the numbers provided in the
original Staff Report because that is what Acorn officially submitted and the
$130,000 in the first year is misleading as it really should be $144,000; stated staff
could have amended the Staff Report to place an asterisk next to it to indicate that
$14,000 of the $144,000 may not be used for the following reasons; asserted if that
is the case,then is staff asking for$15,000 or$24,000 to be shifted over.
Assistant City Manager Kim responded that staff would be asking for $14,000
plus the $8,000.
Council Member Ly ascertained if Acorn Technology is approved, then it would
roughly be $22,500-$23,000.
Mayor Clark stated if she is doing her math correctly, then it appears Acorn's
original proposal was at least$411,000 which does not even include the additional
$14,000, and is much more than Max Power's proposal of$342,000; concurred
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Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
Page 14 of 20
with Council Member Ly that something looks like it was manipulated, and
indicated she is not comfortable with this kind of change.
City Attorney Richman stated the City Council can proceed with whatever their
preference is; reminded them that this is a Request for Proposal and not a bid,
so the Public Contracts Code where you are required to open the bid separately and
award to the lowest responsible bidder does not apply here; added the law
specifically states the price should not be the only consideration when you are
awarding professional services.
Mayor Pro Tern Armenta responded that the City Council understands the contract
does not have to be awarded to the lowest bidder; emphasized there must be some
consistency, otherwise how will the city know what type of IT services they will
be providing.
Council Member Ly asked Mr. Gonzalez to provide a brief summary of Max Power
Technology's work, including other municipalities or public agencies they have _
provided IT services to.
Mr. Gonzalez stated he has fifteen years of experience and Max Power Technology
works with various schools, currently with UCLA in which they run all of their
IT support; noted their company has managed over 100,000 devices, and have
experience with organizations comprised of over 10,000 employees; indicated
there is an IT asset disposition project which will provide a lot of cost savings
opportunities in Rosemead and generate funds by selling older devices. Mr.
Gonzalez noted the following was included.in their proposal: fifteen hours every
month for the City Council and City Manager to assist with anything they may need
above the contract hours;IT staff will be at City Hall during regular business hours,
and for anything additional the city may require from them; and the 24/7 live chat
support availability.
Mayor Clark asked if that is available without an additional cost.
Mr. Gonzalez affirmed the 24/7 support is part of the proposal. ,
Mayor Pro Tem Armenta asked if Max Power Technology had an assessment fee,
if so, is that fee already included in the $114,000 or is there an additional fee.
Mr. Gonzalez replied they followed the RFP as all their costs, including the
assessment fee are imbedded into the annual fee; asserted even though it will cost
Max Power more to ensure the city is assessed properly, he is confident their
three-year strategic plan with the city is a worthwhile investment.
Council Member Ly asked staff if the City Council decided to proceed with Max
Power, would there an allocation from the replacement fee budget be requested.
Mr. Kim responded no City Council will not have to allocate any funds from the
replacement fee budget as the current cost with Interwest is the same amount.
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
Page 15 of 20
Council Member Ly stated he gives Max Power Technology credit and is impressed
that they still came to tonight's meeting even though their company was not the
selected winning bid.
In response to Council Member Dang's inquiry, Mr. Gonzalez stated the
organization is comprised of seven full-time employees, about fifteen part-time
employees,and bring in staff as needed;noted their part-time employees are college
students working at UCLA part-time that are more beginner type IT technicians;
highlighted their internship and local high school programs,urging Council if they
know anyone that might be interested, to have them reach out to us so we can start
training and get them on a certification pathway; shared that Tobias Sebastian, the
City's full-time technician,graduated from Royal Bell High School and was ranked
fifth team in the nation for cyber security six years ago.
Mr. Ly stated that would be great to get a stem program going, even the Army
Reserves has a big push for cyber security.
Mr. Gonzalez indicated Max Power is also providing monthly cyber security
training videos for the community and city.
City Manager Molleda stated staffs recommendation is to award the IT contract
to Acorn Technology,unless the City Council would like to recommend a different
firm to proceed with.
Council Member Ly asserted he would have had no problem supporting staffs
recommendation had a supplemental Staff Report not been presented to Council,
however it was and it only muddied the waters based off the information that was
received; referenced the contract for trash services, noting the majority.of Council
voted for the much more expensive bid over the others that were submitted because
of the quality of service provided. Mr. Ly explained he is hesitant to proceed with
Acorn because of miscommunication issues the city has encountered in the past
with previous contractors and bids, where a change order comes about; indicated
although Mayor Pro Tem Armenta is not a fan of change orders,he understands the
need for them with construction projects,but not with IT services. Council Member
Ly stated he would have liked the opportunity to talk to the other firms had they
been present tonight; asserted that he has no problems supporting Max Power
Technology as they were present and answered his questions satisfactorily.
Mayor Clark asked Council Member Ly if he was making a motion.
Council Member Ly replied yes and moved for the City Council to award Max
Power Technology a three-year contract, plus two one-year options at a later date;
he asked for confirmation again that staff is not recommending the City Council to
appropriate additional funds if they proceed with Max Power Technology.
Assistant City Manager Kim affirmed that is correct.
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
Page 16 of 20
Management Analyst Guerrero interjected, stating there will be additional fees
if Max Power brings additional engineers on-site, in which we may have to
appropriate more funds at that point.
Council Member Ly asked if staff would like those additional fees built in now.
Ms. Guerrero replied no,that is not possible as staff does not have that information
on hand to make that decision,and wants Council to be informed that is a possibility
at a later date due to their cost/rate sheet, located in Section 8,'on page 20 of Max
Power's proposal.
Council Member Dang and Mayor Pro Tern Armenta expressed confusion, stating
what they were provided stops at Section 5.
Assistant City Manager Kim stated the proposal is to provide IT services at
$114,000; clarified what Ms. Guerrero was referring to is if staff or Council were
to initiate projects or ask for additional support outside of the scope, then there
would be additional costs incurred.
Council Member Ly responded that makes sense if the City initiates requests
outside of the scope.
Mayor Pro Tem Armenta asked if that is just Max Power or the same across the
board with the other firms.
Assistant City Manager Kim replied yes, it is the same with the other firms.
Council-Member Dang asked Mr. Gonzalez if the city updating all the Windows 7
machines is included in the $114,000.
Mr. Gonzalez confirmed it is and that anything in the scope of the work listed
in the RFP; explained additional fees would be incurred if new cables need to be
run through the walls or a new wireless infrastructure set-up at a facility that does
not have wireless.
Mayor Pro Tem Armenta stated it appears Acorn Technology would like to speak,
opined it is only fair to give them that opportunity.
Mayor Clark invited Acorn Technology back to the podium.
Mickey McGuire,Acorn Technology,thanked the City Council for the opportunity
to speak; stated he understands there was a misunderstanding resulting in the
muddying of the waters,however emphasized there was no change to the rates that
were provided and he does not want the perception of impropriety there; explained
Acorn's pricing model is to offer a discount of 5% off the first year for a one-year
to a two-year agreement, and a 10% into a three-year agreement, further clarified
that's where the misunderstanding took place. Mr. McGuire informed Council that
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
Page 17 of 20
Acorn provided additional pricing options to simply provide Rosemead flexibility,
as other cities appreciated that opportunity; shared that Acorn works for the Cities
of Monrovia, South Pasadena, Covina, and La Quinta, as a result, Acorn is well
versed in all city functions, software systems, and provide cyber security training
programs; implored Council to give Acorn a fair consideration as he takes the
concern of impropriety very seriously and does not want this misunderstanding to
reflect poorly on Acorn's name or reputation; noted Acorn has 20 years of
experience which includes supporting a wide range of businesses and cities
throughout the San Gabriel Valley, added he feels very confident in their ability to
deliver high quality work; informed Council if the concern is the additional
assessment fee,then he is willing to address that as well.
Mayor Pro Tem Armenta responded to Mr. McGuire, stating it is already too late
to address the additional assessment fee; opined it is a shame that Mr. McGuire
does not know the City of Rosemead as well as he seems to know other cities in the
San Gabriel Valley.
There being no further questions for Mr. McGuire, he left the podium.
Council Member Ly stated he understands the need to find that stability as this will
be the City's fourth IT services contract in about six or seven years; expressed
concern that staff switched Staff Reports with these new numbers, which did not
give ample time for Council to crunch the numbers, instead were forced to do so in
between conversations while staff was presenting; opined if staff had stated they
are recommending Acorn,but there will be a change in numbers and are requesting
renegotiations with them, that would have been acceptable, which unfortunately
was not the case. Mr. Ly indicated support for Max Power Technology's audacity
as there were no other firms fighting for their case this evening other than them;
reiterated his motion, moves that staff proceeds with Max Power Technology,
• approving a three-year contract with an additional two one-year options at a later
date, at a rate of$114,000 a year.
Council Member Dang stated he will second Council Member Ly's motion to
proceed with Max Power Technology; asked Mr. Gonzalez if there will be an
additional overtime cost or is everything imbedded, if we happen to need Tobias
Sebastian to stay longer than the 8 hours for an emergency.
Mr. Gonzalez replied it is included in the fifteen-hour allocation, but if it happens
to go over and is extreme, they would only charge according to the rate sheet.
Council Member Dang asked what the fifteen-hour is, and if it is fifteen-hours a
month or a week.
Mr. Gonzalez explained the City is basically getting 40-hours a week plus fifteen
hours a month to use as needed; clarified if technical assistance is needed on a
Saturday or at a Council meeting,they will be there as part of that fifteen-hours.
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
Page 18 of 20
There being no further discussion, Mayor Clark asked for roll call vote.
ACTION: Moved by Council Member Ly and seconded by Council Member Dang
to.authorize the City Manager to enter into a three-year Management Professional
Services Agreement with Max Power Technology for Information Technology(IT)
Management Services for the period ending December 31,2023,with an additional
two one-year options at a later date,at a rate of$114,000 a year.Motion was carried
out by the following vote AYES: Armenta, Clark,Dang, Ly ABSENT: Low
6. MATTERS FROM MAYOR& CITY COUNCIL
A. Council Comments
•
Council Member Ly wished everyone Happy Holidays; congratulated Council
Member Dang and Council Member Low, stating he looks forward to continuing
to serve on the City Council with them for the next two years.
Mayor Pro Tem Armenta explained there would have been an election but Council
Members Dang and Low ran unopposed, therefore saving the City about $90,000.
Ms. Armenta shared about her visit to Israel,from November 16-24,2019, with the
American Israeli Public Affairs Committee .(AIPAC), hosted by the American
Israeli Education Foundation, noting it was a great learning experience; stated they
toured many of the borders where there is a lot of conflict and saw firsthand what •
many families and children deal with, affirmed we are blessed to live in this
country. Mayor Pro Tern Armenta thanked Director of Parks and Recreation
Boecking,Parks and Public staff for a well-organized Tree Lighting Ceremony and
Dinner with Santa; expressed appreciation to Public Works staff for their hard
work; wished everyone Happy Holidays and looks forward to 2020.
Council Member Dang thanked his Council colleagues, City Manager, and
City Attorney, for their support and guidance; noted since he has been on board,
they have been very welcoming, supportive, and an absolute pleasure to work with.
Mayor Clark reported she attended the National League of Cities Conference on
November 20,2019,as she serves on the Energy Environment Committee and they
passed several resolutions to Congress regarding 1) PFAS, the chemical that is in
the foam that firefighters use, and the health issues related to it, 2) The cities along
the border of Mexico, one being Mexicali,where development is in abundance,and
raw sewage has become an issue with it overflowing into the river.
•
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
Page 19 of 20
7. ADJOURNMENT •
Mayor Clark adjourned the regular meeting at 8:23 p.m. The next regular scheduled
City Council meeting will take place on January 14, 2020, at 7:00 p.m., in the Rosemead
City Hall Council Chamber.
Plk
Ericka Hernandez, �rty Clerk
APPROVED.
Sandra. rr -nta, Mayor
Rosemead City Council, Successor Agency to the Community
Development Commission, and Housing Development Corporation
Regular Joint Meeting
Minutes of December 10, 2019
Page 20 of 20