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CC - Item 2B - Minutes 07-12-05MINUTES OF THE REGULAR MEETING ROSEMEAD CITY COUNCIL JULY 12, 2005 The regular meeting of the Rosemead City Council was called to order by Mayor Imperial at 8:09 p.m. in the Council Chambers of the City Hall, 8838 E. Valley Boulevard, Rosemead, California. The Pledge to the Flag was led by Councilman Tran. The Invocation was delivered by Reverend Jonathan Wu of Evergreen Baptist Church. ROLL CALL OF OFFICERS: Present: Councilmembers Clark, Nunez, Tran, Mayor Pro Tem Taylor and Mayor Imperial Absent: None APPROVAL OF MINUTES: None PRESENTATIONS: None 1. ORAL COMMUNICATIONS FROM THE AUDIENCE Holly Knapp, 8367 Whitmore, stated that People for People thanked the Council for their continued support through the CDBG funding and for the approval of the fireworks stand. Will start soon delivering boxes of food to Rosemead residents. Hopes Council will fill the two vacancy on Traffic Commission in the near future. Larry Alplanalp, 4746 Fendyke, spoke on abandoned shopping carts on Ivar and Muscatel. Had called shopping cart hotline. Victor Ruiz, 9703 Olney, stated that he has been putting up recall signs throughout the city and they have been stolen. He also stated that they are taking pictures and request that they be punished if caught. Ron Gay, 4106 Encinita, spoke on the newsletter from Mayor Pro Tem Taylor. Stated that it was full of misrepresentation and misleading claims. Letter says no vacancies to put in Wal-Mart. He stated that he has pictures of vacant lots in the city. Need to clean-up city to bring in new businesses. Mayor Pro Tem Taylor asked if they are 20 acre sites? Mr. Gay stated that people want a market. Letter is nothing but a smoke screen. Who are outsiders? Wal-Mart does not fit. SOC is being funded by residents of Rosemead and PRIDE uses money from Wal- Mart. Mayor Pro Tem Taylor asked again if any lots are 20 acres? CCMIN: 7/12/05 Page I i • Mr. Gay stated that probably one is. Temple City and Valley. Mayor Pro Tern Taylor stated that this site was only 6 acres. Barbara Murphy, 9125 Bentel, asked if anything has been done about couches, cars on lawns, trash, overgrown lawns, etc? City Manager Crowe stated that 110-150 bulky items are picked up a week and citations are being issued for lawn parkers. Councilwoman Clark asked if the contract with Consolidated Disposal is coming up in August or September and if bulky item pick up will be included in the negotiations? Ms. Murphy stated that the Council should consider in negotiations with Consolidated to buy Peterbilt flat beds. Mr. Crowe stated that is one option along with the city looking into a special grant for enforcement and public education regarding bulky items. Evergreen contract is for 5 years and the city's rates are still lower then surrounding cities. II. PUBLIC HEARINGS - None III. LEGISLATIVE A. RESOLUTION NO. 2005-20 - CLAIMS AND DEMANDS The following Resolution was presented to the Council for Adoption. RESOLUTION NO. 2005-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF $365,795.31 NUMBERED 49554 THROUGH 49712 MOTION BY COUNCILMAN NUNEZ, SECOND BY COUNCILWOMAN CLARK, that the Rosemead City Council adopt Resolution No. 2005-20. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. CCMIN: 7/12/05 Page 2 • 0 B. RESOLUTION NO. 2005-21 - CLAIMS AND DEMANDS The following Resolution was presented to the Council for Adoption. RESOLUTION NO. 2005-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF $215,978.84 NUMBERED 49721 THROUGH 49733 MOTION BY COUNCILWOMAN CLARK, SECOND BY MAYOR PRO TEM TAYLOR, that the Rosemead City Council adopt Resolution No. 2005-21. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. IV. CONSENT CALENDAR CC-A APPROVAL OF PARTNERSHIP WITH THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION FOR USE OF HOME FUNDS MOTION BY MAYOR PRO TEM TAYLOR, SECOND BY COUNCILMAN TRAN, that the Rosemead City Council approve item CC-A on the Consent Calendar. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. CC-B APPROVAL OF FINAL GUIDELINES FOR MULTI-FAMILY REHABILITATION WITH HOME FUNDS Juan Nunez, stated that the money is for low income units. Need guidelines and that landlords need to keep up property, same as he said at the CDC meeting. MOTION BY COUNCILMAN TRAN, SECOND BY COUNCILWOMAN CLARK, that the Rosemead City Council approve CC-B on the Consent Calendar. Vote resulted: CCMIN: 7/12/05 Page 3 • 0 Yes: Clark, Imperial, Nunez, Tran No: Taylor Absent: None Abstain: None THIS SECTION OF MINUTES IS VERBATIM Mayor Pro Tern Taylor: Reason for voting no was regarding what Mr. Nunez brought up and of how we are going to regulate these loans. This particular one were talking about, we had it last year, but we talked about $30,000 to $50,000 per unit and several of these were 6 units to a housing and each one of those qualify for the $30,000 to $50,000 and believe we have a number in, not sure, about 27 units, and I mentioned in our previous meeting that it was 44 units last year, but many of those were single family homes, but they are located on Langsford Avenue. How do we determine that name. Lisa Baker: Program is available to anyone in the Zapopan Target Area. We are giving preference for Langsford Place and after looking at all the units on Langsford, 27 units would meet the requirements under the multi-family rehab program. Mayor Pro Tern Taylor: 27 units, $100,000 for two units at $50,000, 13 would be $1.3 million dollars potentially. Lisa Baker: Currently there is $1/2 million dollars set aside and $30,000 is the maximum and we are using it on a per unit basis. A landlord would not have to actually use our money for all the units, but they could match the money and only make a certain amount of the units home units or if they did not have the money to match, they could use the larger amount. Mayor Pro Tern Taylor: But nothing definite? Lisa Baker: It would be subject to negotiations. Mayor Pro Tem Taylor: Accept we have a $30,000 maximum per unit! Lisa Baker: Yes, because we have a minimum and maximum under the HOME program, this is actually quite reasonable. The maximum right now under the HOME guidelines by the Feds is about $100,000- $120,000. This is much lower then what we would be under the maximum regulation. Mayor Pro Tern Taylor: We are talking about this and that it could be multi years for that particular development. We do not have enough money at $30,000 per each unit, times 10 would be $300,000, so if he has 27 units that would be $810,000. Lisa Baker: The 27 units are split among 3 different owners. The largest is 18 units and if they needed the maximum amount and they qualify for it and they were going to use it for all the units, it would in deed use up all of the money that was set aside. But there is no guarantee that it would be that way and I must add that there is no guarantee that the landlords would accept the money because of the restrictions that we would be placing on the property. CCMIN: 7/12/05 Page 4 Mayor Pro Tern Taylor: If I was a landlord down there, there are restrictions and such, but it is a so call loan at 3%. Lisa Baker: It is a deferred loan at 3% and it would require a management and maintenance covenant and a covenant of criminal activity on the property. They would have to open their units to inspection to us once a year for every home assisted unit and they would have to document income for every single year for those assisted units. Mayor Pro Tern Taylor: What kind of report do we have now that the city has done regarding substandard units? We have a Rehab meeting once a month, what report do we have on record citing these owners for code violations. Lisa Baker: These owners were cited in March 2004. Many have made all or portions of the repairs, the largest building has completed 1/2 of the repairs, but is having money problems. The 6 unit building has completed their repairs, two of the buildings that would not have qualified for the mulit-family rehab program have not completed the repairs and a third and final notice has been issued. It should also be noted that we are also using CDBG funds to fund this code enforcement and as a court requirement to continue code enforcing these units, we are required to have some kind of rehab program available to landlords if we are going to code enforce them in the future. Mayor Pro Tern Taylor: What are the terms of these loans? Lisa Baker: 30 years with a 30 year affordability covenant Mayor Pro Tern Taylor: And a 3% simple interest loan? Lisa Baker: Yes Mayor Pro Tern Taylor: So in 30 years not one single payment is required? Lisa Baker: That is the case Mayor Pro Tern Taylor: That is the case. I can not support giving a landlord who does not take care of his property and his neighbors on the same street, who are the same taxpayers, that we have our once of month meeting, telling those homeowners they must clean up their property at their expense. Lisa Baker: Actually, in the code enforcement that is CDBG funded, in the low mode areas, we do ensure every homeowner who is being code enforced is sent information on our single family rehabilitation program which is available. We have emergency grants, grants, rebate and deferred loans as well for single family homeowners. Mayor Pro Tern Taylor: How many of those have taken advantage of that? Lisa Baker: It varies from year to year. I think right now in the Zapopan area we have 12 families that were code enforced and has taken advantage of the program. CCMIN: 7/12/05 Page 5 0 0 Mayor Pro Tern Taylor: During the year at our monthly meetings for the last 10-15 years, how many of those people have been given the benefit of assistance? Lisa Baker: Well not all people will fill out an application or want to go through the program, but we do offer it and not all are income qualified. Mayor Pro Tern Taylor: What is the qualifications for a landlord, one of them has 18 units down there right? Lisa Baker: Right Mayor Pro Tern Taylor: What are his qualifications? Lisa Baker: Well certainly we would be looking at his loan value on equity on property to make sure we are making a decent loan. If there is sufficient equity on the property to cover the loan, they would have to make the code violations and health and safety requirements that we would want. They would have to then covenant a portion of their properties, 90% of them would have to be affordable to people below 60% of the median income and 10% of them could be affordable to households up to 80% of the median and they would have to certify that annually. Councilman Tran: The money is coming from the US Department of Housing & Urban Development, is that correct? Lisa Baker: Yes that is correct. We get it because they run a formula and if we have a certain amount of housing requirements in the community and we meet the minimum threshold, we are eligible to receive it as an entitlement grant. Councilman Tran: While I understand Mr. Taylor's concerns, if you are saying that we have a yearly report or yearly visits on the site, would it be to much of a hassle to have another visit in maybe 6 months? Lisa Baker: Well the federal government requires once a year inspection and it would be staff intense to do them, because we would have to do them for every property developed under the HOME program, so we would have to do the Garvey site and the other properties that we have developed as well. Councilman Tran: Basically we have $1/2 million dollars you said? Lisa Baker: Currently the city has committed $1/2 million dollars to the Housing Development Corporation for this particular program. If the program was successful and moved into other target areas within the community, then certainly we could come back to City Council to ask for additional funds to be appropriated. Councilman Tran: I do share in concerns with the 18 unit project, that we are giving him a lot of money, but if they are substandard, what kind of guidelines, restrictions, or is there a way to rescind the money if they are not meeting those guidelines? CCMIN: 7/12/05 Page 6 s s Lisa Baker: Yes, we have met with the owners of the largest properties and they were very gracious to walk the site with us and they actually opened some for the units for us and they are receipted to the program. The units are older and the landlords have carpeted, painted, done some tiling work and such, over time, but they do have system issues because they are older. In terms of if they took the loans, of course, there would be an covenant on affordable, there would be a covenant that they would have a standard lease, they would have to enforce their lease and if there was criminal activity on the premises, they would have to take steps to deal with that and they would have to maintain the property so they would not be cited for code violations. If they were to violate those, they would be required to remediate them immediately and if they did not remediate them, we would be able to make the repairs and lien the property and we would also be able to initiate foreclosure to take our money or property back. Councilman Tran: This is obviously for low housing, but in the event that a new developer would come in and develop in our city they built 20 units, are we asking them to put some of the units for low income? Lisa Baker: These properties are currently 100% occupied and is quite likely that most of the families are already within the eligible affordability, but there will probably be a requirement that if there is a vacancy that they notify us so that we could make sure that they were marketed properly. Councilman Tran: I guess my questions is, if a new developer were to come into the city, are we asking them to put aside 10%-20% as affordable housing? Lisa Baker: Brad can comment on that a little bit better than I can, but if you are getting a density bonus, then the State law has a requirement for that. Also we have put aside money to a development fund so if a developer would come to us to negotiate a deal with affordability restrictions, that is true. Currently over 1 /2 of the community rents and 41% of those people in the census spend more than 35% of their income on rent. So we do think that there is a need for stable decent affordable housing that is basically covenant and controlled so that we can improve the overall quality of the neighborhood. Councilwoman Clark: I just wanted to clarify that this is federal money like Mr. Tran said and if we do not use it, we lose it, correct? Lisa Baker: These funds have to be committed within 24 months and the Council took that action last year when they set aside this money and it has to be fully expended within 5 years, so at this point we have about 2 more years to expend it or it will be recaptured. Mayor Pro Tern Taylor: Mr. Mayor - I'm not opposed to spending this money, I know we have to do it, we spend it or lose it, but I disagree with this particular project. You have mentioned that they are 100% occupied and were these properties not cited in 1998 and 1999? Lisa Baker: These properties have only been cited once before in 1999. Mayor Pro Tern Taylor: In 1999 and they are being cited again now? Lisa Baker: Yes - they were cited for inoperatable and other outside, exterior issues, but not for structural. CCMIN: 7/12/05 Page 7 • Mayor Pro Tern Taylor: What is the basic limits that the money can be used for? Lisa Baker: The money can only be used for homeownership, development of housing for ownership, development of multi-family housing, rehab of single family/multi-family housing, although, because there is a 95% affordability cap on single family homeownership, it is not an option for our city with the current prices and for tenant base rental assistance. Mayor Pro Tern Taylor: I need to clarify it a little bit more. The money can be used for what improvements specially? Lisa Baker: The money first needs to go to code violations and health and safety issues. Mayor Pro Tem Taylor: That is first requirements? Lisa Baker: Yes Mayor Pro Tern Taylor: Then the next can be used for? Lisa Baker: A small amount can be used for general property maintenance. Mayor Pro Tern Taylor: You say a small amount. Roofing, plumbing, electrical, water heater, solar panels, driveways, walkways, walls, fencing. Is it true that they can use it for all that? Lisa Baker: Pretty much on-site and some limited off-site improvements. Mayor Pro Tern Taylor: No BBQ, no pool? Lisa Baker: Right - it can not be used for luxury items. Mayor Pro Tern Taylor: But the general structure themselves, it limits corrosions on roof overhangs. This stuck in my mind, if you are doing a roof why can't you put decorated corrosions on it. What else did they limit? Lisa Baker: Mostly just decorative items or what we consider luxury items. Most items must be median grade. Mayor Pro Tern Taylor: But everything else in the entire building structure money can be used for that. Sliding, plaster, everything to do with the structure accept moveable appliances for example. Lisa Baker: Yes Mayor Pro Tern Taylor: I do not believe it is a practical use even though it is federal money and a couple of months ago the federal government was trying to pull back its CDBG money. Did you see that article? CCMIN: 7/12/05 Page 8 • • Lisa Baker: There was a movement in the fiscal year to move CDBG and 16 other economic development programs to the Department of Commerce. It was not actually going away, it was going to move to another department and re-named. That has since been defeated by Congress and the Block Grant program will continue. Councilwoman Clark: That was an issue that the National League of Cities took up and we lobbied tremendously hard for that and the President of NLC had made us do a "No Cut-No Move" chant because every city sent letters on that and that was a result of some of the lobbying and traveling that we do. We were able to keep that program going which is very important to a lot of our community groups right now. Lisa Baker: Had it went to Commerce, it would most likely been an economic development program and the residential rehab and inter-structure improvement that we do in the city would probably been lost. Mayor Pro Tem Taylor: In concluding, I can not accept the premises of the program. Here is a landlord, with 18, 9, 6 units, whatever it may be, and for the next 30 years, maybe 20 years, he receives taxpayers money and not a single payment is required for that 20 or 30 years, and heaven only knows what's going to happen to it if he hasn't maintained it this way, we can go in every year and make sure he is complying with keeping the property up, but I can not go along with the fact that it is right to take the taxpayers money, in this case maybe a million dollars by the time were done with it. So I intend to vote no on it for that reason. Councilman Nunez: Correct me if I'm wrong, but this is a program to clean up the city to make the city more desirable. Lisa Baker: This is a program, because we are deemed to be a city that has a sufficient large number of housing issues. Actually under the HOME program normally there is a 25% match, but Rosemead is actually a distress community and the match is waived and it is only to clean up neighborhoods in the terms of rehab and development. Councilman Nunez: We have more control of what happens if they took the money. Lisa Baker: That is true - we have more enforcement tools. Mayor Pro Tern Taylor: Mr. Mayor - my point being is we can spend the money anywhere in the city to clean it up. It that correct? Lisa Baker: Only on housing. Mayor Pro Tern Taylor: On housing anywhere in the city? We can amend the program to put in other areas beside Langsford Place? Lisa Baker: The program is designed to be extended if we are successful. Mayor Pro Tem Taylor: I am not opposed to cleaning up the city, but I am opposed to giving landlords a $1 million dollars when they can't keep up their property and also gets the rents from 100% occupancy. CCMIN: 7/12/05 Page 9 • • Lisa Baker: Again, the rents would be controlled. Mayor Pro Tern Taylor: Excuse me, I did not read that in here! Lisa Baker: Yes - the rent has to be affordable to 60% median income, which is set by the feds and 10% of the rent to those in the 80% median income and that is also controlled by the feds on an annual basis. Mayor Imperial: I see a lot of houses run down and I see a lot of landlords fixing them up. My feeling is to find a house that is falling apart and give them help to fix up, because they are doing the best they can. MOTION BY COUNCILMAN TRAN, SECOND BY COUNCILWOMAN CLARK, that the Rosemead City Council approve CC-B on the Consent Calendar. Vote resulted: Yes: Clark, Nunez, Tran No: Imperial, Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. END OF VERBATIM SECTION V. MATTERS FOR DISCUSSION AND ACTION A. DISCUSSION OF GARVEY SCHOOL DISTRICT'S REQUEST TO INSTALL BANNERS ON CITY POLES Mayor Pro Tern Taylor stated that others have requested to use banners and poles. He stated that he was in favor of groups to purchase banners, provide insurance, which has been Council's policy for years. Mayor Imperial stated that Rosemead School District has paid for their banners. Virginia Peterson, Superintendent, Garvey School District stated that schools have grown tremendously. Banners will celebrate that and appreciates the City's help. Henry Lo, Vice President of Garvey School District, thanked the Council for joint development agreement for the 2 gyms, explained why City needs to promote schools and wants to continue partnership. Juan Nunez, stated that according to city policy organizations request permission of the City Council and pays for the banners and installation. Does this mean that the city will pay for the banners or is the Garvey School District requesting to display banners on city owned poles? Mayor Pro Tern Taylor stated that Council is proud of schools also, but how do you pick and choose which organization. Need to treat all equally. CCMIN: 7/12/05 Page 10 Councilman Tran stated it would promote public education and promote all school districts. Request two banners for Garvey School District on Garvey Avenue and two on Valley Boulevard for Rosemead School District and Rosemead High School. City can spend money on recognizing children, teachers. Education has had budget cuts and City is in position to promote schools. Juan Nunez stated that he feels district should pay for the banners. Councilman Tran stated that the City of San Gabriel pays for school banners. Fred Mascorro, Rosemead School District Board President, asked if City was choosing wording and that the Rosemead School District has paid for banners in the past. Mayor Pro Tern Taylor asked who was going to print up the wording for the banners? Councilman Nunez stated that districts can select their own wording. Councilwoman Clark asked if they had banners up a couple of years ago and if the city helped with the cost? Mr. Mascorro stated that only involvement of city has been to give permission. Councilwoman Clark stated that the cost of the banners seemed high. Mayor Pro Tern Taylor stated that Mr. Burbank gave them a memo explaining that the cost was for 4 banners, 8 sides to change date and for installation and storage of the banners was a reasonable amount. MOTION BY COUNCILMAN TRAN, SECOND BY COUNCILMAN NUNEZ that the Rosemead City Council give support to the Garvey School District, Rosemead School District and Rosemead High School for the cost of banners. Yes: Nunez, Tran No: Clark, Imperial, Taylor Absent: None Abstain: None Mayor Pro Tern Taylor stated for the record that he was proud of the school districts. Have to treat all equally, cannot be selective. All organizations can ask permission to hang banners. Councilwoman Clark stated that other districts were not asking for banners. Cannot have blanket. Bring back with modifications to match funds and that she was not totally opposed. Councilman Nunez stated that Councilman Tran was trying to support all schools. Councilwoman Clark stated that there were ways to save money on this. Mayor Imperial stated that they should not show any favoritism. CCMIN: 7/12/05 Page I I 9 0 Councilman Tran stated that the Garvey School District can put up banners if they front the bill. MOTION BY COUNCILMAN TRAN, SECOND BY COUNCILWOMAN CLARK to allow the Garvey School District to display banners on City poles at their own cost. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. VI. STATUS REPORTS - None VII. MATTERS FROM OFFICIALS Councilman Tran asked for information on Consolidated, what they want on raises and negotiation. Mayor Pro Tern Taylor asked when curb addresses will be done and for an update on the progress of the General Plan. Councilman Tran asked for a timeline for the Traffic Commission vacancy. IX. ORAL COMMUNICATIONS FROM THE AUDIENCE - None X. CLOSED SESSION The meeting was adjourned at 9:25 p.m. for a closed session with the City Attorney regarding anticipated litigation. IX. ADJOURNMENT There being no further action to be taken at this time, the meeting was adjourned at 9:45 p.m. The next regular meeting will be held on Tuesday, July 26, 2005. Respectfully submitted: City Clerk APPROVED MAYOR CCMIN: 7/12/05 Page 12