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CC - Item 2B - Minutes 02-14-06i 0 Minutes of the Regular Meeting Rosemead City Council February 14, 2006 Mayor Imperial called the meeting to order at 8:00 PM. Councilman Nunez led the pledge to the flag. The Invocation was led by Councilmember Tran. Roll Call: Present: Clark, Imperial, Tran, Mayor Pro Tern Nunez, Mayor Taylor Absent: None Approval of Minutes: December 13, 2005 Mayor Pro Tern Taylor requested the minutes be deferred until the next meeting. ORAL COMMUNICATIONS FROM THE AUDIENCE Alejandro Gandara, residing at 2523 Dubonnet Avenue, spoke about the Imperial vs. Castruita lawsuit. He felt the lawsuit was brought forth by the Mayor to save his job by using a minority issue. He asserted that an interpreter was present when Lang Lee was asked to sign the recall petition. Mayor Pro Tern Taylor stated for the record: "I reviewed the 1965 Voting Rights Act and the amendments to that. That act is very, very specific about foreign languages. It's not that you (Mayor Imperial) brought this or pulled a rabbit out of a hat, it's actually in the law and I want that in the record clearly that you just didn't do something that was questionable". Audience member Alejandro Gandara responded: "That law has nothing to do with a citizen sponsored petition". 2. PUBLIC HEARINGS - None 3. LEGISLATIVE A. RESOLUTION NO. 2006-02 CLAIMS AND DEMANDS Recommendation: Adopt Resolution No. 2006-02, for payment of City expenditures in the sum of $1,578,921 claims numbered 51777 through 52030. CC Minutes - February 14, 2006 Page 1 of 10 • Councilmember Nunez made a motion to approve Resolution No. 2006-02 as described above with a second by Councilmember Clark. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Abstain: None Absent: None B. ADOPTION OF RESOLUTIONS AUTHORIZING THE ISSUANCE OF TAX ALLOCATION BONDS, SERIES 2006 AND THE EXECUTION OF RELATED DOCUMENTS TO REFUND EXISTING BONDS AND GENERATE NEW MONEY PROCEEDS, AND AUTHORIZING CREATION OF AND CERTAIN ACTIONS OF THE ROSEMEAD FINANCING AUTHORITY. At its November 8, 2005 meeting, the CDC selected the firm Piper Jaffray to serve as senior managing underwriter and authorized staff to pursue the refunding of the Series 1993 Tax Allocation Bonds. Based on the market condition of January 27, 2006, the Commission can refund $9.335 million of its outstanding 1993A Bonds. In addition, the Commission can generate approximately $5.67 million in new money for eligible capital projects. Recommendation: It is recommended that the City approve the Resolution No. 2006-04, authorizing the CDC to sell the bonds and Resolution No. 2006-05 to form the Rosemead Financing Authority. Councilmember Nunez, with a second by Councilmember Clark, made a motion to approve Resolution 2006-04 and 2006-05 as described above. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Abstain: None Absent: None Mayor Pro Tern Taylor asked the minutes reflect the discussion that took place in the Community Development Commission meeting discussing these items. Discussion excerpted from the February 14, 2006 Community Development Commission meeting minutes regarding Resolution 2006-04 and 2006-05: CC Minutes - February 14, 2006 Page 2 of 10 • At its November 8, 2005 meeting, the CDC selected the firm of Piper Jaffray to serve as senior managing underwriter and authorized staff to purse the refunding of the Series 1993 Tax Allocation Bonds. Based on market conditions as of January 27, 2006, the Commission can refund $9.335 million of its outstanding 1993A Bonds. In addition, the Commission can generate approximately $5.67 million in new money for eligible capital campaigns. Commissioner Taylor asked for clarification regarding the necessity of a Finance Authority and who has the power to establish one. Agency Attorney Wallin explained there is a joint powers authority between the CDC and City Council; both entities have to give approval to establish the Finance Authority. Kevin Hale, Bond Counsel from Orrick, Harrington & Sutcliff explained the necessity of the Finance Authority. to facilitate a negotiated bond, as neither the City nor the CDC can enter a negotiated sale on its own. Commissioner Taylor asked why the city had not used a negotiated sale for the five previous bond sales the CDC has undertaken which utilized a competitive sale format. Diane Hue, Public Financial Management (the City's Financial Advisor) explained that the city's credit rating had slipped a few years ago to Triple B, and recently upgraded to a Triple B+, but competitive sales require a higher level of credit. Eric Scriben, from Piper Jaffray indicated that events in 200012001 accounted for the credit downgrade. Frank Trapeppi, the former Rosemead City Manager explained that the city's downgrade was a result of Southem California Edison's potential bankruptcy a few years ago due to deregulation. Taxes generated from Edison account for 25% of the city's tax increment to Project Area 1. Mr. Scriben addressed Edison's current situation and tax history with Standard and Poors, which allowed him to leverage a higher credit rating for the city. CC Minutes - February 14, 2006 Page 3 of 10 • • A change was made to Page 6, Section C, in the Projected Tax Increment Revenue Project Area 1 to strike eminent domain from the Finance Authority's listed powers. An informational to be presented at the February 28th meeting. The following recommendation was presented to the Agency for adoption: That the Community Development Commission adopt Resolution No. 2006-02 to effect the execution and delivery of bond and adopt Resolution No. 2006-03 to form the Rosemead Financing Authority with an amendment that eliminates eminent domain as a power of the Finance Authority. Commissioner Nunez made a motion with a second by Commissioner Tran that the Commission adopts Resolution No. 2006-02 and Resolution 2006-03 with said amendment. Vote resulted Aye: Clark, Imperial, Nunez, Taylor, and Tran No: None Absent: None Abstain. None The Chairman declared said motion duly carried and so ordered 4. CONSENT CALENDAR - RECOMMENDATION: APPROVAL Items A and H were pulled for discussion. B. APPROVAL OF CONCESSION STAND LICENSE AGREEMENT - ROSEMEAD YOUTH ASSOCIATION The Rosemead Youth Association (R.Y.A.) has requested the use of the concession stand at Rosemead Park from February 18, 2006 through August 15, 2006. Recommendation: It is recommended that the Rosemead City Council approve the License Agreement and authorize its execution by the Mayor. CC Minutes - February 14, 2006 Page 4 of 10 • C. RESOLUTION NO. 2006-06 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD CALLING FOR STATE INCLUSION OF THE 710 FREEWAY GAP CLOSURE PROJECT IN THE GOVERNOR'S TRANSPORTATION BOND PROPOSAL Recommendation: Adopt Resolution No. 2006-06 D. RELEASE OF BOND - TRACT MAP 53447; 8719 MISSION DRIVE A Faithful Performance Bond and a Labor Bond and Material Bond was required to guarantee construction of a roadway, curb and gutter, sidewalk, driveways, handicap ramps, parkway drains, water system, sewer system, street lights, parkway landscaping, and traffic signing and striping. Faithful Performance Bond and a Labor and Material Bonds were issued to the City in the amounts of $416,000 and $208,000, respectively. The improvements have been installed satisfactorily. Recommendation: It is recommended that the City Council accept the public improvements and authorize release of the bond. E. APPROVAL OF TRACT MAP NO. 60158 - 8470 MISSION DRIVE Tract Map No. 60158 is being submitted for consideration and approval along with an Undertaking Agreement and Faithful Performance and Labor and Material Bonds to guarantee the construction of a private street, storm drain facilities, sewer main and laterals, water facilities and survey monuments subsequent to the recordation of the tract map. Easement dedications are required to be granted on the map for public sewer purposes. Recommendation: It is recommended that City Council: 1. Approve Tract Map No. 60158; 2. Approve the undertaking agreement; 3. Accept the sewer easement dedications; and 4. Direct the City Clerk to arrange for the recordation of the map. F. RELEASE OF BOND - TRACT MAP NO. 60712, 3441 IVAR AVENUE A Faithful Performance Bond and a Labor Bond and Material Bond was required to guarantee construction of sewer house laterals, CC Minutes - February 14, 2006 Page 5 of 10 0 0 drive approaches, sidewalk and survey monuments. In lieu of bonds, a Certificate of Deposit was issued to the City in the amount of $9,000. The improvements have been installed satisfactorily. Recommendation: It is recommended that the City Council accept the public improvements and authorize release of the bond. G. RESOLUTION NO. 2006-03 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ADOPTING THE 2006 EDITION OF THE "GREENBOOK" STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION By adopting this resolution, the Rosemead City Council resolves that the 2006 Edition of the Standard Specifications for Public Works Construction will be adopted for use for public works projects. Recommendations: It is recommended that the Rosemead City Council adopt Resolution 2006-03. 1. APPROVAL OF PROPOSAL TO PROVIDE ENGINEERING SERVICES FOR CONCRETE REPAIRS AT VARIOUS LOCATIONS This proposal provides for engineering design and construction management services for concrete repairs at various locations throughout the City and the construction of sidewalk in front of 9206 and 9216 Pitkin Street and along the side yard frontage of 4434 Encinita Avenue. Recommendation: It is recommended that the City Council: 1. Approve the engineering proposal. 2. Direct staff to begin the preparation of the necessary plans and specification. Mayor Pro Tern Taylor made a motion to approve Consent Calendar items listed above, with a second by Councilmember Clark. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Abstain: None Absent: None CC Minutes - February 14, 2006 Page 6 of 10 A. AWARD OF BID RE-ROOFING OF DINSMOOR HOUSE AT 9632 STEELE STREET At the regular meeting of December 27, 2005, the City Council awarded the bid to Ace Tek Roofing Co. provided that prevailing wages were paid. They did not pay prevailing wages and the second bidder, Devon Roof Co. declined to enter into a contract. Staff solicited and received bids from Ace Tek Roofing, Rey-Crest Roofing, and Terrones Contracting. Recommendation: It is recommended that the City Council find pursuant to Public Contracts Code 22050 that the emergency will not permit a delay resulting from a competitive solicitation for bids and the action is necessary to respond to the emergency; and the Council by a four-fifths vote award the bid to Ace Tek Roofing Co. in the amount of $26,700, and authorize Terrones Contracting to make the necessary rafter repairs. Councilmember Tran made a motion, with a second by Councilmember Nunez to approve the staff recommendation for the award of bid re-roofing of Dinsmoor House at 9632 Steele Street. Mayor Pro Tem Taylor pointed out that the type of roof construction proposed by Ace Tek Roofing would not be as durable as the type of roof construction propsed by Rey-Crest Roofing, based on his construction knowledge. He recommended the City instead accept the bid from Rey-Crest Roofing, as the cost difference would only be $700 for a more durable type of roof and authorize Terrones Contracting to make the necessary rafter repairs. Councilmember Tran and Nunez amended their motion to accept Mayor Pro Tern Taylor's recommendation of awarding the Dinsmoor House re-roofing bid to Rey-Crest Roofing and authorize Terrones Contracting to make the necessary rafter repairs. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Abstain: None Absent: None H. REQUEST FOR PARKING RESTRICTION ADJACENT TO A FIRE HYDRANT BE REDUCED AT 7665 GRAVES AVENUE A property owner requested that the parking restriction adjacent to a fire hydrant in front of her property at 7665 Graves Avenue be CC Minutes - February 14, 2006 Page 7 of 10 L~ 0 reduced. The Traffic Commission deliberated this matter and the request was denied and referred to the City Council. At the request of the property owner, this matter was deferred from the last City Council meeting of January 24, 2006. Recommendation: It is recommended that the City Council concur with the Traffic Commission and deny the request to reduce the parking restriction adjacent to the fire hydrant in front of 7665 Graves Avenue Dolly Leong, residing at 6939 Rosemead Blvd. spoke about this item. Ms. Leong submitted a two page letter to the council on February 14 and read the letter to the council. (The letter is on file with February 14 agenda items). Ms. Leong advocated that her lot does not have enough parking space and suggested that the parking restriction adjacent to the fire hydrant be moved. Councilmember Nunez asserted that adding a parking space by moving the fire hydrant might be unsafe and a liability concern for the city. He asked Ms. Leong why she wanted to add a space and she indicated she was interested in purchasing and developing an adjacent lot. Mayor Pro Tern Taylor asserted that perhaps Ms. Leong wanted the fire hydrant moved to facilitate access to Ms. Leong's landlocked property. Councilmember Nunez made a motion, with a second by Mayor Taylor to continue with the recommendation made by staff to deny the request to reduce the parking restriction adjacent to the fire hydrant in front of 7665 Graves Avenue. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Abstain: None Absent: None 5. MATTERS FOR DISCUSSION AND ACTION - None 6. STATUS REPORTS - None ORAL COMMUNICATIONS FROM THE AUDIENCE Ken Pike, residing at 9220 Steele Street, spoke about the lawsuit imposed by the Department of Justice and the Decree of Acquiescence. He felt the lawsuit brought forth by Mayor Imperial was based on law violations and CC Minutes - February 14, 2006 Page 8 of 10 0 not for personal issues as Alejandro Gandara asserted during the Oral Communication period. Councilmember Tran reminded Mr. Pike that the recall petitions were circulated on May 8, 2005 and the Consent Decree was not signed until after that date. The Department of Justice was contacted for clarification; the Department of Justice wrote a letter to indicate the Consent Decree was forward looking and was not retroactive to election efforts that took place prior to the signing of the Decree. Councilmember Clark clarified that the City of Rosemead had not been violating the law, as ballots were available in the different languages. The Department of Justice brought to light technicalities, in Councilmember Clark's opinion, which made the City not in compliance. She asserted that the current issue that remains unanswered is whether or not the Voting Rights Act applies to recall efforts. Councilmember Tran added that the judge's ruling to enjoin the February 7, 2006 election was a preliminary injunction and a final judgment is yet to be determined as to whether citizen sponsored recall efforts are also subject to the same requirements. Mayor Imperial recessed the City Council meeting to convene the meeting of the Financing Authority and then moved to adjourn to a closed session. CLOSED SESSION PUBLIC EMPLOYEE APPOINTMENT Pursuant to Government Code Section 54957, the City Council will meet in closed session for the purpose of interviewing candidates for the position of City Manager. Councilmember Tran made a motion, with a second by Councilmember Nunez to appoint Andy Lazzaretto as City Manager effective March 1, 2006 and to direct the City Attorney to enter negotiations and bring back the contract at the next meeting. Vote resulted: Yes: Clark, Imperial, Nunez, Taylor, Tran No: None Abstain: None Absent: None The Mayor presented outgoing City Manager Bill Crowe with a proclamation of appreciation for outstanding service from October 1999 to CC Minutes - February 14, 2006 Page 9 of 10 February 2006. Each of the councilmembers thanked Mr. Crowe for his service and accomplishments. City Manager Bill Crowe thanked staff and the council for their support and wished the City well. 9. MATTERS FROM OFFICIALS Mayor Pro Tern Taylor referenced a letter dated February 2, 2006 which responded to Councilmember's Nunez's questions about Wal-Mart. Mayor Pro Tern Taylor asked if all of Councilmember's questions were answered; Councilmember Nunez indicated he was satisfied with the answers. Councilmember Nunez recommended the council switch over to letter- sized agendas to better serve residents printing agendas from the City's website. Councilmember Tran requested a discussion about the July 4th Parade be included on the agenda for the next meeting. Mayor Pro Tern Taylor suggested a request for volunteers be included in the newsletter. 10. ADJOURNMENT There being no additional items the meeting was adjourned at 10:10 pm in memory of Lance Corporal Carlos Arellano, Rosemead resident Charles Schmidt and Rosemead resident David Perea. The regular Council meeting of February 28, 2006 will convene at 8:00 pm in the Council Chamber located at City Hall. CC Minutes - February 14, 2006 Page 10 of 10