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CC - Minutes - 06-09-20I MINUTES OF THE CITY COUNCIL SPECIAL AND CITY COUNCIL, AND HOUSING DEVELOPMENT CORPORATION j REGULAR JOINT MEETING JUNE 9, 2020 The special meeting of the Rosemead City Council was called to order by Mayor Pro Tem Low at 6:11 p.m., in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California. PRESENT: Mayor Armenta (arrived during Closed Session), Mayor Pro Tem Low (teleconferenced), Council Members Clark, Dang, and Ly (teleconferenced) ABSENT: None 1. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4): (1 potential case) B. CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code Section 54957.6 Agency Designated Representative: Gloria Molleda, City Manager and Elizabeth Popescu, Human Resources Manager Employee Organization: Rosemead Employee Association Mayor Pro Tem Low recessed to Closed Session at 6:15 p.m. Mayor Armenta adjourned the special meeting at 6:49 p.m. 7:00 P.M. The regular meeting of the Rosemead City Council was called to order by Mayor Armenta at 7:39 p.m., in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California. PLEDGE OF ALLEGIANCE was led by Council Member Ly INVOCATION was led by Council Member Clark STAFF PRESENT: City Manager Molleda, Assistant City Manager Kim, City Attorney Richman, Director of Community Development Frausto-Lupo, Director of Public Works Daste, Director of Parks and Recreation Boecking, and City Clerk Hernandez Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page I of 24 Mayor Armenta opened the Public Comment period. Mayor Armenta read the Public Comment received via email from Pastor Jonathan Wu, Evergreen Baptist Church of Los Angeles, regarding the recent food distribution event held on May 30, 2020; noted there were a total of 130 volunteers that came together from the following four churches: Evergreen Baptist Church, Branches Fellowship, Mission Community United Methodist Church, and the Open Bible Church; stated 384 food boxes were prepared and distributed to those most vulnerable in our community; indicated over 100 of the recipients are residents of Rosemead, with 34 families have students in the Garvey School District, and 24 families have students in the Rosemead School District; the aforementioned Churches have made a shared decision to continue our food distribution program which will occur once a month currently scheduled for the last Saturday of each month; thanked the City and Temple Sheriff s Station for their partnership and support to facilitate the food distribution event. There being no further speakers, Mayor Armenta closed the Public Comment period. 3. PRESENTATIONS A. Announcement of Recipients of the Republic Services 2020 Rosemead Scholarship Program City Manager Molleda stated on behalf of Tania Ragland-Castaneda, Municipal Relationship Manager, Republic Services, that Republic Services was impressed by the innovative recycling ideas shared by students who submitted an essay. Announced the following college -bound students will be receiving a scholarship: Jason Gonzalez, Queenie Hua, and Ariel Pan, from San Gabriel High School; Hanh Quach from Rosemead High School; and Tammy Xaypraseuth from Mark Keppel High School. 4. PUBLIC HEARING A. Adopting Resolution No. 2020-22, Establishing the Traffic Threshold of Significance for California Environmental Quality Act to Vehicle Miles Traveled Rather Than Level of Service Changes in State law require the City to adopt new California Environmental Quality Act (CEQA) thresholds of significance for transportation impacts. For the purposes of CEQA these changes will modify how the City evaluates projects for transportation impacts. Specifically, the City is required to use Vehicle Miles Traveled (VMT) instead of Level of Service (LOS) as the metric to evaluate transportation impacts in CEQA documents such as Environmental Impact Reports. Outside of the CEQA process the City can choose to continue to evaluate projects Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 2 of 24 using the LOS metric. Based on guidance provided through an implementation process led by the San Gabriel Council of Governments, City staff has prepared new CEQA transportation impact thresholds for consideration by the City Council. This report summarizes the state mandate that requires modifying CEQA thresholds, discusses City staff's recommendations, and includes a draft Resolution to adopt the new CEQA transportation thresholds. Recommendation: That the City Council take the following actions: 1. Adopt Resolution No. 2020-22, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADOPTING "VEHICLE MILES TRAVELED" THRESHOLDS OF SIGNIFICANCE FOR PURPOSES OF ANALYZING TRANSPORTATION IMPACTS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; and 2. Find that the action is exempt from CEQA and adopt the proposed thresholds of significance. Director of Public Works Daste stated at the March 24, 2020 Council meeting, a Memorandum of Agreement (MOA) with the San Gabriel Valley Council of Governments (COG) was approved for the implementation of the San Gabriel Valley Regional VMT Analysis Model. The passage of SB 743 changes how transportation impacts are measured by CEQA; noted SB 743 removed automobile delay as a primary measure of transportation impact. After receiving requests from a majority of San Gabriel Valley cities to lead a regional effort to assist cities in complying with these VMT requirements, the COG conducted a comprehensive Request for Proposals (RFP) process. As a result, Fehr and Peers was selected as the most qualified firm to provide professional consultant services to complete the San Gabriel Valley Regional VMT Analysis Model. Mr. Daste introduced Paul Hermann, Associate, Fehr and Peers, to present the SB 743 implementation. Paul Hermann, Associate, Fehr and Peers, discussed the revised proposal on updates to the CEQA guidelines on evaluating transportation impacts in CEQA; stated the intent is to balance the needs of congestion management with statewide goals related to a reduction of greenhouse gas emissions, infill development, and public health through active transportation (e.g., walking, biking). Asserted that the city will comply with SB 743 by adopting new traffic impact thresholds of significance, publishing traffic impact study guidelines with screening criteria, and analyzing VMT for all projects/plans. Council Member Dang asked if adopting the VMT will change the city's Garvey Avenue Specific Plan which has a built-in Environmental Impact Report (EIR)? Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 3 of 24 Director of Community Development Frausto-Lupo concurred, stating staff confirmed with the consultant that since the Garvey Avenue Specific Plan has already gone through the process, it would not affect any of those projects. Council Member Dang inquired how the Level of Service is currently used, and will adoption of this analysis provide more of a realistic model for our community. Mr. Hermann responded the LOS analysis is currently used to look at peak hours of commuting in the morning and evening to make sure that our infrastructure is sized appropriately to manage congestion; indicated the city still has the ability to use the LOS analysis for projects, it will simply not be included in CEQA documents; stated this legislation is changing how we are looking at transportation and how it affects the environment; noted we found if we can reduce the number of miles that each vehicle is travelling, then we can reduce greenhouse gas emissions and meet our statewide greenhouse gas reduction targets. Bahman Janka, Principal Traffic & Transportation Engineer, Transtech Engineers, emphasized that the proposed resolution states the City's project review process will retain the "Level of Service" analysis to ensure consistency with the General Plan even though it no longer applies under CEQA. Mayor Armenta referenced the timeline in PowerPoint regarding "July 1, 2020 — Required for CEQA". Mr. Hermann explained Rosemead is right on schedule with VMT guidelines to be followed on all CEQA documents that are submitted beginning July 1, 2020. Mayor Pro Tem Low asked if this work is completed on a regional level, how does the threshold work with surrounding cities. Mr. Hermann replied that cities are choosing to align with homogeneous land use types in the San Gabriel Valley. Council Member Clark referenced the map on page 11, asked why it indicates Rosemead is not one of the participating cities. Mr. Janka responded that it is an older map before Rosemead decided to participate. Council Member Dang posed a scenario — Let's say a developer comes in and wants to build a warehouse, then a new owner purchases the building and changes the warehouse to an Amazon distribution center. What happens if all of a sudden, the vehicle impact is substantially increased, not necessarily by the residents visiting the distribution center but by the delivery vehicles entering and leaving the center? If there is a spike due to this proposed change of use, is there something in the CEQA guidelines that draws the new owner back to the table? Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 4 of 24 Mr. Hermann opined if you change the project then that CEQA document you produced is no longer valid for that project; asked the City Attorney to further i elaborate on this question as it pertains to CEQA guidelines. City Attorney Richman concurred they would not be under their existing approvals if the business is different; stated the project would have to go back to the Planning Commission for review. Council Member Dang stated if Rosemead is below the 15% threshold, it sounds like we can sell our VMT credits to a city that has higher VMT demand; asked if there is language included in SB 743 authorizing VMT offset and credit for carbon footprint. Mr. Hermann responded the program is in its early stages, so a program like that does not exist as of now; noted Rosemead is already doing better than most cities, however, I don't think you would be able to just cash in, you would most likely need to create a policy that further reviews the VMT. ACTION: Moved by Council Member Clark and seconded by Council Member Dang to take the following actions: 1. Adopt Resolution No. 2020-22, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADOPTING "VEHICLE MILES TRAVELED" THRESHOLDS OF SIGNIFICANCE FOR PURPOSES OF ANALYZING TRANSPORTATION IMPACTS UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; and 2. Find that the action is exempt from CEQA and adopt the proposed thresholds of significance. Motion was carried out by the following vote AYES: Armenta, Clark, Dang, Low ABSENT: Ly 5. CONSENT CALENDAR ACTION: Moved by Council Member Clark and seconded by Mayor Pro Tem Low to approve Consent Calendar Items A through E. Motion was carried out by the following vote AYES: Armenta, Clark, Dang, Low, Ly ABSENT: None A. Claims and Demands • Resolution No. 2020-20 Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 5 of 24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CERTAIN CLAIMS AND $875,886.46 NUMBERED 106589 INCLUSIVELY CALIFORNIA, ALLOWING DEMANDS IN THE SUM OF 106498 THROUGH NUMBER Recommendation: Adopt Resolution No. 2020-20. B. Approval of Minutes Recommendation: That the City Council approve the regular meeting minutes of September 24, 2019. C. Garvey Park Gym Cooling System Project No. 31019 — Award of Contract The Garvey Park Gym Cooling Project was approved by the Council as part of the FY 2019-20 adopted budget and included in the Capital Improvement Program (CIP) and the Annual Action Plan for CDBG activities. The Notice Inviting Bid (NIB) for this project was published on February 27, 2020 and March 5, 2020 with a March 18, 2020 submission deadline. Two bids were received and after reviewing for responsiveness it was determined that one bid did not meet SB 854 requirements (a subcontractor was not registered with the State Department of Industrial Relations for Public Works), and second bid was significantly over the City Engineer's estimated project cost. The two bids were presented to the Council on April 14, 2020, and both bids were rejected and the project to be readvertise. Project was rebid by publishing NIB on April 23, 2020 and April 30, 2020 with a submission deadline of May 14, 2020. One bid was received, reviewed, and has been determined to be responsive. Recommendation: That the City Council take the following actions: 1. Approve a contract award to F.M. Thomas Air Conditioning; and 2. Authorize the City Manager to enter into a contract with F.M. Thomas Air Conditioning, for the based bid amount of $332,725 for the gym cooling system. In addition, authorize an amount of $33,272 (10%) as a contingency to cover the cost of unforeseen construction expense, for a total amount of $365,997. D. Subscription Renewal with Granicus, Inc., for Live Web Streaming and Archival Video Services The City currently utilizes the Granicus software for live web streaming and archiving of various public meetings. The current subscription with Granicus, Inc., for video streaming services, will expire on June 30, 2020. Staff received a new three-year subscription renewal agreement for 2020-2023. The annual subscription Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 6 of 24 total cost of service is $28,206.31 for Fiscal Year (FY) 2020-2021 which is within the City Manager's purchasing authority. However, there is an annual cost increase for FY 2021-2022 for $30,180.75 and FY 2022-2023 for $32,293.40, which exceeds the maximum allowed requiring Council approval. Recommendation: That the City Council authorize the subscription renewal for live web streaming and archival video services and authorize the City Manager to execute a three-year subscription renewal agreement with Granicus, Inc. E. Senior Nutrition Meals Provider — Award of Contract Currently, the City is contracted with Bateman Community Living, LLC d.b.a TRIO Community Meals to provide meals for the Senior Nutrition Program. The contract for meal services will expire on June 30, 2020. The City published a Request for Proposal on March 5, 2020, with an April 5, 2020 submission deadline, which was extended to April 16, 2020. One bid was received by Bateman Community Living, LLC d.b.a. TRIO Community Meals. Staff is recommending that the City Council approve a new three-year agreement for meal services beginning July 1, 2020 through June 30, 2023. Recommendation: That the City Council take the following actions: 1. Approve the proposed contract with Bateman Community Living, LLC. d.b.a. TRIO Community Meal; and 2. Authorize the City Manager to execute the contract on behalf of the City. 6. MATTERS FROM CITY MANAGER & STAFF A. Consideration of Award of Contract for Street Sweeping On May 12, 2015, the City Council awarded Athens Services a three-year Agreement with the two (2) one-year options. At the February 27, 2018, City Council Meeting, the City Council awarded Athens Services an additional two years per the Agreement which ends on June 30, 2020. On May 12, 2020, the City of Rosemead received a letter from Athens Services with the offer that they will continue services at the current rate for one year, and after one year, asked that the Agreement be adjusted in conjunction with the current Consumer Price Index (CPI) for year two and year three of the Agreement Recommendation: That the City Council approve an agreement with Athens Services for three -years allowing for a CPI annual adjustment for year two and year three. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 7 of 24 Director of Public Works Daste noted Athens has provided street sweeping services to Rosemead since 2010; expressed that Athens Services and has a clear understanding of their operation, the responsiveness the company demonstrates to City staff and Rosemead constituents, and the quality of Athens' work. Mr. Daste indicated that the City of Rosemead currently pays a below market rate per curb mile; stated Athens Services has offered to continue their services for the next year at their current rate of $23.50 per curb mile and asked for a CPI adjustment annually for year two (July 1, 2021) and year three (July 1, 2022). Mayor Pro Tem Low indicated support for staff's recommendation, noting she has also received positive comments from residents regarding Athens Services. Council Member Clark opined it is important to keep continuity at this time and expressed support to continue with Athens Services. Council Member Dang emphasized appreciation that Athens Services is operating for the city below market rate and is truly looking out for the community itself by not increasing rates this next year. Mayor Armenta attested to Municipal Manager Ed Chen's work ethics, stating he goes above and beyond; opined since the residents are happy with the services, then there is no need to go through the RFP process. ACTION: Moved by Council Member Clark and seconded by Mayor Pro Tem Low to approve an agreement with Athens Services for three -years allowing for a CPI annual adjustment for year two and year three. Motion was carried out by the following vote AYES: Armenta, Clark, Dang, Low, Ly ABSENT: None B. Adoption of the City of Rosemead's Fiscal Year 2020-21 Proposed Operating, Capital Improvement Budgets and Financial Policies and Adoption of the Rosemead Housing Development Corporation's Fiscal Year 2020-21 Proposed Operating and Capital Improvement Budgets The City Council will consider the adoption of the City's Fiscal Year (FY) 2020-21 Proposed Operating and Capital Improvement Budget, which provides for total appropriations of $41,098,700. The Rosemead Housing Development Corporation Board will consider the adoption of the Corporation's FY 2020-21 Proposed Operating and Capital Improvement Budget, which provides for total appropriations of $1,129,800 and revenues of $1,129,800. Recommendation: That the City Council take the following actions: Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 8 of 24 1. Adopt Resolution No. 2020-19, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 2020-21 2. Adopt Resolution No. 2020-23, entitled: RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEMEAD APPROVING THE OPERATING BUDGET, CAPITAL IMPROVEMENT PROJECT BUDGET AND FINANCIAL POLICIES FOR THE 2020-2021 FISCAL YEAR AND APPROPRIATING FUNDS THEREFOR; and 3. Adopt Housing Development Corporation Resolution No. 2020-05, entitled: A RESOLUTION OF THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION ADOPTING THE ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE FISCALYEAR 2020-21 Dr. Scott Miller, Interim Finance Director, presented a PowerPoint of the Fiscal Year 2020-21 Proposed Budget Workshop 2; stated the City's Fiscal Year (FY) 2020-21 Proposed General Fund operating budget revenues are $21,866,200 and expenditures are $25,545,150, which results in an end of year deficient of $3,678,950; noted General Fund revenues are negatively affected primarily by the economic upheavals of the COVID-19 Emergency and its effect on Rosemead's general fund revenue sources which began in FY 19-20 and continue into FY2020-21; indicated this end of year deficit will require a general fund reserve allocation of $3,678,950 to balance the FY 2020-21 budget as required by California State Law, which will bring General Fund Reserves to a projected balance of $17,510,320 as of June 30, 2021. Staff is recommending a conservative approach to the budget and hopes the economy and the businesses in Rosemead return far quicker than the staff's estimates may suggest. Thus, staff still estimates a 9%-20% drop in various general fund revenues for FY 2020/21 (as opposed to a relatively normal year). If the economy improves ahead of estimates and City revenues increase in FY 2020/21 beyond the current revenue projections, then less City General Fund Reserves will be used to balance the budget. Staff will have a better idea of what is happening with City revenues when staff returns to the City Council for the mid -year budget report in January 2021. Dr. Miller also discussed the following proposed position changes: 1) Addition of one Code Enforcement Officer — Staff proposes eliminating significant part-time hours equaling ($70,600) and taking another part-time position and upgrading it to Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 9 of 24 a full-time entry level position that will cost approximately $49,700 thus saving the City a net amount of $20,900; 2) Upgrade a Public Safety Supervisor to a Public Safety Manager — The additional cost to upgrade this position is $10,000. This combined with the requested code enforcement position still saves the City a net amount of $10,900 but increases the operational capabilities of the Public Services Department; 3) Upgrade a Senior Accounting Specialist to a Management Assistant — The additional cost for this upgrade to the General Fund is $2,200 dollars a year and in total it is $3,000 a year; 4) Addition of a Part -Time Accountant — The request is for a part-time .75 position. The cost of this request is $33,810 in general fund dollars annually and a total of $48,300 from all funds; and 5) Elimination of 5 full time positions including: a Parks and Recreation Manager; a Public Works Inspector; an Associate Civil Engineer; a Civil Engineering Assistant, and a Housing Project Coordinator. These total ($382,600) in City savings. Explained overall staff is requesting one additional full-time position, two upgraded positions and one part-time position for a total of $111,000 and eliminating five full-time positions and significant part-time dollars totaling a City savings of ($453,200) or a net City savings of ($342,200). Dr. Miller shared about the significant changes proposed to the FY 2020/21 Budget at the May 26, 2020 budget introduction workshop: 1) Addition of seven CIP projects to be funded by the General Fund totaling $1,216,000; 2) An augmentation of General Fund dollars to the CDBG-CV/HOME Rental/Mortgage Assistance Program of $86,000; 3) A Business License permit reduction of 50% for all new and renewal licenses in FY 2020/21 thus decreasing general fund revenue estimates by ($ 85,000); and 4) Revising the City Clerk's Budget by $30,000 due to a clerical error that accidently decreased the City Clerk's budget by that same amount. Mayor Armenta opened the Public Comment period. Mayor Armenta read a comment from an anonymous resident received via text: After reviewing the June 9th agenda, I feel as a community member, I need to voice my concern. My question would be what merits the said positions for a promotion? I feel that we should really consider any changes being proposed and funds should be budgeted mindfully especially during these difficult and unprecedented times. I hope that you understand my stance on the matter and appreciate you taking my views into consideration. Thank you. — Concerned Resident. There being no further speakers, Mayor Armenta closed the Public Comment period. Mayor Armenta stated the city has a robust reserve as we strive to maintain financial stability; asked staff to address the resident's concern and explain the justification for the proposed promotions. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 10 of 24 Dr. Miller provided further reasoning for the proposed promotions of the Public Safety Manager. Mayor Armenta asked how long the Public Safety Manager position has been vacant; opined we have been doing well for over a year without that position. City Manager Molleda said we eliminated the position a year ago; indicated there are a few differences from last year and this year — we removed Code Enforcement from Public Safety and would be moving them back to Public Safety and CSO hours were cut; pointed out this position will also be overseeing animal control since we did not sign a contract for those services. Mayor Armenta emphasized her sentiments from the previous meeting that she is not in favor of any promotions during this time, especially if it is not warranted; expressed she sees it more of a detriment to cut CSOs hours when they are helping Code Enforcement with work that they are not able to get to out in the field. Council Member Ly emphasized we are still looking at a significant reduction of our reserves; asked the Interim Finance Director to explain how much percentage will be going towards operational cost versus one-time fixed costs such as Capital Improvement Projects; expressed concern for the need to start cutting expenditures; emphasized it is not sustainable to take three to four million dollars of hits year after year. Dr. Miller responded the issue is not expenses, you are only increasing expenses at less than one percent, which is a small amount from one fiscal year to the next fiscal year; explained the revenues is what is creating this year's and next year's deficits problems. He indicated if Council wanted to cut expenditures, they would need to look at the largest part of the budgets which comes from the Public Safety and Public Works Departments; noted all the other expenditures are moderate. He advised that the other higher expenditure is employee salaries and benefits. Mayor Pro Tem Low reiterated her concern at the last meeting was that this year we would be at -3.7% deficit and then next year another -3.6% deficit; inquired if we want to spend that much money on a CIP as we need to have a balance. Council Member Ly responded a CIP is a tangible project that the community can see and does spur the economy for blue collar, upper middle-class jobs; opined he would be open to cutting some of the CIP, but that needs to be matched with operating time. Council Member Clark expressed she would like to put all the CIPS on hold for six months, except for the Rosemead Park Restroom Renovations, which needs to move forward; concurred with Mayor Armenta about not supporting any promotions at this time; asked how much we would save if we froze that one Code Enforcement position for now. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 11 of 24 City Manager Molleda responded if we froze the hiring of new Code Enforcement Officer positions, that would reduce $20,000 and only give a net amount of $10,000; advocated for the position as this will increase the operational capabilities of the Public Services Department; noted we have had a lot of turnovers with part- time CSOs as it is a transitional job for them before they move on to a full-time job. Mayor Pro Tem Low suggested we collectively prioritize the top three CIPS to move forward with and hold off on the other projects to keep some of the money in the bank. Council Member Dang referenced slide 7 of the PowerPoint, asked why Public Safety was listed under the General Fund Revenue as they are not creating revenue. Dr. Miller concurred with Council Member Dang and explained that Public Safety is funded by the property taxes and sales taxes. Council Member Dang inquired if the bank that we park our money at gives us interest. Dr. Miller replied we have been with the same bank for at least 10-15 years, noting the type of accounts we have with Bank of the West does not create interest; stated we do however maximize all the money what we consider not needed for cashflow into interest barring accounts with local investment funds. One of the goals for the next fiscal year is to go out to bid to look at other financial institutions within Rosemead to see if we can get a better deal; noted Bank of the West may come back and give us a better deal. Council Member Dang referenced slide 4 of the PowerPoint, stating at the last Budget Workshop he previously supported the direction to match the $86,000 out of the General Fund to bring the CDBG-CV/HOME Rental/Mortgage Assistance Program total to $172,000; however, he would like to withdraw that support as he feels the $86,000 could be used for something else more wisely. Council Member Clark asked if the original $86,000 will still be allocated to the CDBG-CV program. Dr. Miller confirmed that the original $86,000 will still be allocated; clarified that Council Member Dang is referring to the additional $86,000 matching funds. Council Member Dang indicated he is still in support of the Rosemead Park restroom renovation as a CIP; opined it would be cheaper to build a new restroom with that $450,000 instead of simply renovating it; suggested slating $800,000 for CIPs at tonight's meeting and later down the line Council can determine which CIPS to allocate those funds for; inquired how many part-time CSOs we have and how hiring one full time Code Enforcement Officer would affect that. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 12 of 24 City Manager Molleda stated there are 12 part-time CSOs, their hours would be immediately reduced and moved to hire the full time Code Enforcement Officer position; noted there has been so much turnover as the CSO position is a steppingstone for the part-time staff pursuing a career with the Sheriff's Department. Mayor Armenta expressed concern that there is no way one Code Enforcement Officer with a 40 -hour work week can offer the same manpower as 12 CSOs that average about 20 hours a week for 240 hours altogether; inquired how long the following positions have been vacant: Parks and Recreation Manager, Public Works Inspector, Associate Civic Engineer, Civil Engineer Assistant, and the Housing Project Coordinator. City Manager Molleda indicated the CSOs hours have been reduced and the Code Enforcement Officer will be here all day as opposed to part-time positions. In response to Mayor Armenta's inquiry, Ms. Molleda stated that the Parks and Recreation Manager position has been vacant for two years; the Public Works Inspector, the Associate Civil Engineer and Civil Engineer Assistant has been vacant for one year, however, Transtech was brought in immediately to cover those positions; the Housing Project Coordinator was vacant for three months, noting a Management Analyst was brought in to replace that position. Dr. Miller asserted that even if the positions were vacant, the money for those positions were already budgeted and could not be used for other means. Mayor Armenta asked how long the Public Safety Manager position was vacant? Why do we need to upgrade a Public Safety Supervisor to a Public Safety Manager? What is the difference in their job duties? Ms. Molleda clarified the Public Safety Manager position was not vacant, it was removed; stated she felt strongly we need to upgrade the position because that has been the process when responsibilities are increased so does the position; indicated the Public Safety Manager will be overseeing the animal control program, managing all CSOs and Code Enforcement Officers and is also called out to accompany the Sheriffs when they serve warrants in Rosemead. Mayor Armenta questioned who is currently managing the CSOs and Code Enforcement Officers? Ms. Molleda replied it is a combination of our Assistant City Manager and Public Safety Supervisor; reminded Council that we have a budget amendment in January so we can talk about how we are doing throughout the year. Council Member Clark suggested reevaluating in January to determine if it is a better time to upgrade the position. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 13 of 24 Mayor Armenta reiterated that she does not support upgrading positions at this time and emphasized the work is still being done. Council Member Ly stated he has no problem reducing the CIP list but it has to coincide with the reduction on the operating side; opined we run the risk of losing most of our reserves if we do not find a way to reduce the structural expenditure deficit that we have within the next three to five year projection. Mr. Ly expressed he understands Mayor Armenta's point about not upgrading positions at this time, however he recalled a couple of instances where Council approved upgrading positions such as Chris Marcarello from Deputy Public Works Director to the Director of Public Works, Farid Hentabli from Public Works Manager to the Assistant Director of Public Works, and Jean Scott from Parks Superintendent to the Assistant Director of Parks and Recreation; explained his concern is not the title or position name — asked if we revert back to not having that position, how much more strain and deficit are we going to add to the scenario. City Manager Molleda responded that $75,000 would be added to the deficit. Council Member Ly strongly emphasized that we should be finding ways to reduce the deficit, not add to it. As the city and times change, we need to determine what our objectives are, what staffing and resources we have, that will help us continue to provide excellent service to our residents. Mayor Armenta noted for the record that when Council approved upgrading the aforementioned positions that Council Member Ly referenced, we were only approving an upgraded position, not adding another position on top of that; adamantly stated that she will only approve one or the other, not both, at this time. Ms. Molleda stated if it is Council's desire, we can remove the additional Code Enforcement Officer position and proceed with the upgrade of the Public Safety Manager position; however, she feels that both positions are needed. Council Member Dang stated it makes sense to have a Public Safety Manager to alleviate the Community Development Director so that she does not have to oversee the Code Enforcement Division on top of the Planning Division, Economic Development, and Building Division. City Manager Molleda clarified that the Assistant City Manager (ACM) currently oversees the Code Enforcement Division, which was moved from Community Development back to the Public Safety Department; noted the ACM is also overseeing the animal control program. Council Member Dang said even more reason to support the position because it is more advantageous to use the Assistant City Manager's professional resources to focus on tasks like dealing with the city's finances rather than straining him with additional work that can be given to senior staff. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 14 of 24 Mayor Armenta reminded Council that there was a reason we moved Code Enforcement to City Hall; asked why are we trying to fix things that are not broken? City Manager Molleda pointed out that Code Enforcement will remain at City Hall; replied that Public Safety was under a different manager at that time and since then that manager is no longer with the city, so we feel like the issue has been fixed. Mayor Pro Tem Low stated she understands it is a $10,000 difference; asked what type of problems will staff have to deal with if you do not have the Public Safety Manager position. Assistant City Manager Kim stated there has been structural changes to the Code Enforcement Division to function more efficiently, including certain staff members going above and beyond to fix prior issues; asserted that it is warranted to have a manager within each division, which the Public Safety currently does not have. If Council asks my opinion, this position is warranted so that person can properly train staff, oversee functions of the department and ensure we are providing the level of customer service the Council and community expects. Mayor Armenta posed the question wouldn't keeping the two Public Safety Supervisors as is and adding the additional Code Enforcement Officer give us more manpower than just upgrading a position. Assistant City Manager Kim indicated the reason for reducing the CSOs hours and creating a new position should be looked at as two separate issues; stated with a full-time employee, it will help the department continue to improve our functions and ensure the Public Safety Center remains open to provide service on the weekends; reiterated we are not asking for more funds, and we are saving money in doing so. The second ask is to upgrade one of the Public Safety Supervisor positions to the Public Safety Manager; explained a supervisor supervises certain functions of a division but a manager oversees all things; responded he suspects that the department would continue to function the way it is, however, structurally every division should have a manager. City Manager Molleda further explained that because this position is only a supervisor then the final decisions of the division will fall on the Assistant City Manager; we need a manager to make those decisions for us as well. Mayor Pro Tem Low asked staff to give concrete examples of what the Public Safety Manager would be doing that the Public Safety Supervisor does not do. Council Member Ly opined it would be help if staff explained what specific tasks for each position. Assistant City Manager Kim stated the current Public Safety Supervisor does majority of the daily tasks and I oversee different functions of the department. The Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 15 of 24 difference between a manager and a supervisor is a manager handles personnel matters including annual performance reviews; explained a manager is at a higher level than a supervisor, provides training which includes ridealongs, and making sure the CSOs are issuing citations correctly. Code Enforcement was with the Community Development Department from September of last year to February of this year, so I was doing dual roles with the Community Development Department and Assistant City Manager responsibilities; noted when our current Community Development Director was hired, I recommended the Code Enforcement Division be transitioned to the Public Safety Department so that I can oversee them as well. Shared that we also started the community education program, the focus was to transition from our past way of working with the community which was basically citation based. By implementing this program, Code Enforcement was out there with a more friendly approach of handing out informative brochures to seek compliance rather than just issuing citations. Council Member Ly stated Mayor Armenta is correct that we did not backfill and create a Deputy Director for Chris Marcarello when he was promoted to the Director role; however, we did create additional line staff for him whether it was other assistants or engineers to help him. Stated the CSOs are great entry levels but at the end of the day they are 18 -22 -year-old kids that have passion but still need to learn and grow; shared in the Army, we have platoon sergeants that are in place to train the younger/junior staff. Assistant City Manager Kim added that I can assure you when the City Manager or himself makes a recommendation to Council, we would never recommend anything that would not benefit the city and the community. I strongly feel it is at the best interest of the residents and overall function of the department. Mayor Armenta stated it has nothing to do with the intention of the recommendation; why can't we wait a year since the work is already being done by two full-time supervisors and agree to adding an additional full-time employee. Mr. Kim opined upgrading one of the supervisor positions to a manager position is warranted with the additional responsibilities they have taken on. City Manager Molleda noted only one of the two supervisors has taken on additional responsibilities; also, in February we said to add more supervision at parks and this recommendation would assist with that request. Emphasized that quantity does not equal quality, which is why we are trying to replace a Code Enforcement Officer for the CSO hours. Mayor Armenta suggested adding the Code Enforcement Officer position and waiting until January to reevaluate if the Public Safety Manager position is truly needed. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 16 of 24 Ms. Molleda opined it is not fair to the employee to give them additional work and not have it reflected in their title. Mayor Pro Tem Low thanked Council Member Ly for asking the detailed questions because she understands the reasoning for needing the management position for performance reviews and QAQC type of work; opined you are essentially cheating the employee by giving them tasks at the next level but not giving them that appropriate title or pay for carrying out those tasks in a management position. Mayor Armenta inquired what is the reasoning for upgrading the Account Specialist to a Management Analyst and asking for an additional part-time Accountant. Dr. Miller responded an Account Specialist is only allowed to do certain things within their job classification and there are things that need to be done on a more analyst position; reiterated it is not fair to ask an employee that is outside of their classification. The part-time accountant will help with several tasks that the Finance Department should be carrying out on a monthly basis such as the soft closing of books, distribution of interests, and reconciliation of accounts. Our city auditors have mentioned twice that we need to implement a fixed asset program immediately, which the Management Analyst would do. Noted both positions are not just General Funded, they are funded from all revenue sources. Both positions will help with the computer upgrades as the city currently cannot accept payment over the phone or online which will greatly benefit the community. We want to make the department more effective and customer friendly. City Manager Molleda indicated we have three Senior Account Specialists within Finance; explained the position will be opened internally and remove one of those three and replaced with a Management Analyst. Council Member Ly asked what is the rough timeline to cut checks to a vendor after their invoice has been submitted? Dr. Miller explained a vendor will first send an invoice to the respective department, then staff has to prepare the Request for Payment which needs to be signed off by the Department Head and taken to Finance for processing and final review by the Finance Manager and Director. He stated our goal is to cut the check within 15 days/two weeks, however if the vendor does not give us all the invoice information, we have to reach out to the vendor in order to process it accordingly. Council Member Ly stated that streamlining and digitizing the process will hopefully help speed up payments to vendors. Council Member Dang asked if someone wants to pay for a swimming class, would they have to come in person? He mentioned when he was out campaigning that a resident complained they had to wait in a long line to pay for a class. Opined having a better system is an important investment. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 17 of 24 Dr. Miller replied yes, they would have to come in or mail in the payment; made clear that it is not the Parks and Recreation Department's fault, the city itself simply needs to catch up with technology to better serve the community. City Manager Molleda stated Parks and Recreation did purchase a system to complete purchases online, however that system was not compatible with our finance system. Mayor Pro Tem Low opined this investment will save the city in the long run. Council Member Clark asked if this would be a permanent position. Dr. Miller stated we are going to have to send whoever is selected for the position for training to complete these tasks. City Attorney Richman emphasized it is important in the public sector that your employees are working within their scope of duties and classification, otherwise labor violations can occur such as their wages and hours. Dr. Miller emphasized it is the city's practice to train our employees to take on other responsibilities to help them grow. Mayor Armenta asked if we are aware of any other employees that are doing more duties than what they are classified under? Ms. Molleda responded at the moment, it is just the two positions that we have before you. Council Member Ly asked when the next Classification and Comprehensive Salary study being done? Ms. Molleda responded that is part of negotiations, which we will be going back to talk to the association; noted under the MOU, it is required every two years. Mayor Pro Tem Low indicated support for Council Member Dang's suggestion to allocate a set amount for CIPs at tonight's meeting and later down the line Council can determine which CIPs to allocate those funds for. Council Member Ly asked when budget amendments would come back to Council. City Manager Molleda responded January or February, the latest. City Attorney Richman asked the Interim Finance Director if we can adopt the operational budget tonight and bring back the Capital portion at a future meeting. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 18 of 24 Dr. Miller concurred with Mrs. Richman; stated he can reserve an amount that the Council will feel comfortable with until the City Manager is ready to bring back specific projects to Council; explained those funds will be saved as a designated reserve for CIPs that Council prioritizes in the future. Council Member Clark stated she wants to ensure the Rosemead Park Restroom Renovation Project is covered by those designated reserves and will be completed under the CIPs list. Mayor Armenta asked when was the last time the playground equipment at Garvey Park and Rosemead Park was replaced? City Manager Molleda stated she does not have that information but can gather it for Council's reference. Council Member Ly expressed he is okay with reducing the CIP funding; however, his concern is more on the operating side; noted the only problem with proceeding with only the Rosemead Park project from the list of CIPs is that we are putting the perception that we only care about Rosemead north of the freeway. Recommended allocating $500,000 for CIPs and directing staff to find an additional $500,000 on the operational side over the next fiscal year to reduce $700,000 on the CIP list and bringing down our overall deficit to make it a little more livable. Mayor Pro Tem Low asked if that was a fair request of staff. City Manager Molleda responded I think we can commit to that. Council Member Dang reiterated his aforementioned suggestion to remove the matching of the $86,000 for the CDBG-CV/HOME Rental/Mortgage Assistance Program, which will help the Executive Team close out $86,000 from the $500,000 they are being asked to find by next fiscal year. Council Member Ly concurred and said now staff only needs to find $414,000. ACTION: Moved by Council Member Ly and seconded by Mayor Pro Tem Low that the City Council take the following action: 1. Adopt Resolution No. 2020-19, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ADOPTING AN APPROPRIATION LIMIT FOR THE FISCAL YEAR 2020-21 Motion was carried out by the following vote AYES: Armenta, Clark, Dang, Low, Ly ABSENT: None Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 19 of 24 ACTION: Moved by Council Member Ly and seconded by Mayor Pro Tem Low that the City Council take the following action: 2. Adopt Resolution No. 2020-23, entitled: RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEMEAD APPROVING THE OPERATING BUDGET, CAPITAL IMPROVEMENT PROJECT BUDGET AND FINANCIAL POLICIES FOR THE 2020-2021 FISCAL YEAR AND APPROPRIATING FUNDS THEREFOR; and Include the following amendments: 1) Reduce the CIP list and allocate $500,000 for CIP and for the City Manager to bring back at a later date potential projects to use those funds for; 2) Direct the City Manager to no longer allocate a matching $86,000 from our General Fund for the CDBG-CV/HOME Rental/Mortgage Assistance Program; and 3) Direct the City Manager to find an additional $414,000 in operating cuts over the next 12 months. Before voting, Council Member Clark asked if the additional employees would still be approved with this motion? Council Member Ly responded yes; the motion would include that. Council Member Clark made a substitute motion to not approve the upgrades. Council Member Ly asked how you would reallocate the staffing and funds for that as you have to provide direction to staff. Mayor Armenta asked Council Member Clark if she was opposed to the addition of the new employee or the upgrades; inquired if it was possible to table this item for further discussion at the next meeting. Council Member Clark clarified she is opposed to the upgrade of only the Public Safety Manager position; noted she understands the need for and supports the upgrade of the Management Analyst position. City Attorney Richman responded the budget is your appropriation, so once the fiscal year ends you will not have the authority to pay bills, so the budget must be adopted by the end of June. Mayor Armenta stated we have a Council meeting June 23rd; asked if that would be doable for staff. City Manager Molleda stated that would be too tight of a schedule for staff. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 20 of 24 ACTION: Substitute motion moved by Council Member Clark and seconded by Mayor Armenta to continue on with the current staffing assignments and revisit the upgrade of the Public Safety Manager in January. Motion was carried out by the following vote AYES: Armenta, Clark NOES: Dang, Low, Ly ABSENT: None ACTION: Original motion moved by Council Member Ly and seconded by Mayor Pro Tem Low that the City Council take the following action: 2. Adopt Resolution No. 2020-23, entitled: RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEMEAD APPROVING THE OPERATING BUDGET, CAPITAL IMPROVEMENT PROJECT BUDGET AND FINANCIAL POLICIES FOR THE 2020-2021 FISCAL YEAR AND APPROPRIATING FUNDS THEREFOR; and Include the following amendments: 1) Reduce the CIP list and allocate $500,000 for CIP and for the City Manager to bring back at a later date potential projects to use those funds for; 2) Direct the City Manager to no longer allocate a matching $86,000 from our General Fund for the CDBG-CV/HOME Rental/Mortgage Assistance Program; and 3) Direct the City Manager to find an additional $414,000 in operating cuts over the next 12 months. Motion was carried out by the following vote AYES: Dang, Low, Ly NOES: Armenta, Clark ABSENT: None Mayor Armenta stated for the record, she does not support the second motion that just passed as this is not the time to upgrade any positions and that this could have waited to be revisited in a year. ACTION: Moved by Council Member Ly and seconded by Council Member Clark that the City Council take the following action: 3. Adopt Housing Development Corporation Resolution No. 2020-05, entitled: A RESOLUTION OF THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION ADOPTING THE ANNUAL OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE FISCALYEAR 2020-21 Motion was carried out by the following vote AYES: Armenta, Clark, Dang, Low, Ly ABSENT: None Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 21 of 24 C. COVID-19 Update This is a recurring item that will be on the agenda to update the City Council on items related to COVID-19. Recommendation: That the City Council discuss and provide further direction. City Manager Molleda stated Los Angeles County is reviewing new guidelines from the State of California, that could move LA County into stage 3 of the road map to recovery and permit the reopening of key sectors including schools, day camps, museums, entertainment industry productions, camping, and spectator free sporting events, as early as June 12th. The Department of Public Health will review the newly issued state guidelines, evaluate the County's COVID-19 matrix and data, and consult with the Board of Supervisors to determine how sectors can reopen with safeguard directives in place to ensure social distancing and infection control. Reminded the community at this time, the following sectors are still closed: nail salons, tattoo shops, gyms and fitness centers, campgrounds, entertainment venues, bars/pubs, and indoor museums and galleries. Mayor Armenta asked if closure of campgrounds was specific to LA County or statewide. City Manager Molleda responded that is statewide mandated. Ms. Molleda shared that we have implemented a great plates program, which is for seniors that do not qualify for a senior lunch program but are still considered to have low resources; noted this program was going to end tomorrow, however FEMA extended it for another month. Public Safety Supervisor Wong has been has been doing well overseeing the program. City Attorney Richman stated in regard to the eviction protection, our authority is from the state and the state has extended the ability to have eviction protections until the end of July, which means our order is also extended; made note that the city can do something different in the future if Council desires. Council Member Ly asked how has City Hall looked since the reopening? City Manager Molleda replied there are still a lot of residents hesitant to come into City Hall, so the reduced hours have worked; indicated the 5:00 to 6:00 p.m. appointment slot has worked well for the public as well; noted depending on what the orders look like, we will consider opening for more hours during the day. Ms. Molleda stated the food bank that the City is working with Republic Services is currently scheduled for Saturday, June 27th; our Parks and Recreation Director has taken the lead. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 22 of 24 A. Council Comments Council Member Dang requested an item be added to the next Council meeting agenda to discuss soils report requirements in liquefaction zones; indicated that the State exempts the soils report, so by adopting the Los Angeles County's Memo "Policy on Soil Investigation in Designated Liquefaction Zones", we would be saving residents $3,000 on every soil report, so on average $200,000 - $250,000. Mr. Dang thanked Mayor Armenta for coming out on Saturday to support the peaceful demonstrators that walked from City Hall and proceeded to Temple City; expressed it is important that the organizers know we fully respect their freedom of speech and assembly, and recognize that it was a peaceful assembly. Council Member Ly requested to cancel both Council meetings in July as his annual Army training will be for an extended time from July 1 St through August 7t". Mayor Armenta noted that we typically go dark for one of the meetings in July due to the summer break. City Manager Molleda stated the items for the first meeting in July are light, so we conduct the first meeting and cancel the second meeting in July as well as the first meeting in August. Council Member Ly stated it was nice to see the Farmers Market start back up on Monday, even if it was a small crowd; expressed appreciation to the Sheriff's Department and surrounding Police Departments for preventing riots and looting from happening during these times; thanked residents and community that practiced their first amendment rights as that is critical. Mayor Pro Tem Low thanked Mayor Armenta for addressing the peaceful demonstrators and acknowledged the Chief of Police for keeping all involved in the rally safe. Mayor Armenta stated she was contacted by a resident regarding illegal fireworks and encouraged them to contact the Sheriff's Department; noted this past Friday we had a diaper distribution event on behalf of Senator Rubio; extended an invitation to Council to join there is a unity appreciation lunch for the Sheriff's Station on June 25th, from 12 p.m. to 3 p.m.; noted restaurants from the surrounding cities that the Sheriff's Station cover will all be participating. Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 23 of 24 8. ADJOURNMENT Mayor Armenta adjourned the meeting at 12:12 a.m., in memory of George Floyd and all those who have lost their lives due to COVID. The next regular scheduled City Council meeting will take place on June 23, 2020, at 7:00 p.m. in the Rosemead City Hall Council Chamber. Ericka ernanez, City Clerk APPROVED` i� Polly L w, May r Rosemead City Council and Housing Development Corporation Special and Regular Joint Meeting Minutes of June 9, 2020 Page 24 of 24