CC - Item 4F - Flournoy Request to Rescind Action Certificate of Occupancy for Wal-Mart0
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: ANDREW C. LAZZARETTO, CITY MANAGER
DATE: October 10, 2006
SUBJECT: Request by James Flournoy that City Council Rescind Action Taken
September 12, 2006 Regarding Issuance of a Certificate of Occupancy for Wal-
Mart Building
SUMMARY
On September 12, 2006, the City Council took action on an item of business not
appearing on the Agenda after making a subsequent need finding. The action taken
was to instruct staff to issue a certificate of occupancy for the Wal-Mart building
notwithstanding some unfinished landscaping, and to not issue a certificate of
occupancy for the Garden Center building until all items of landscaping were completed.
Through a letter dated September 19, 2006, James Flournoy made a demand pursuant
to Government Code Section 54960.1 that the Council rescind the action.
Staff Recommendation
Staff recommends that no action be taken on the demand.
ANALYSIS
Government Code §54954.2(b)(2) allows the City Council to "take action" on a matter
not appearing on the Agenda: "Upon a determination by a two-thirds vote of the
members... that there is a need to take immediate action and that the need for action
came to the attention of the local agency subsequent to the Agenda being posted..."
At the commencement of the council meeting the City Attorney advised the Council and
the public that he had that day received notice that Garvey School District would be
seeking a temporary restraining order to prevent the City from issuing a certificate of
occupancy for the Wal-Mart building and that Wal-Mart had requested a certificate of
occupancy. Both of these matters occurred after the posting of the Agenda. He
explained that the matter was not on the Agenda and that if Council wished to give
direction to staff on either of these matters it could only do so by treating it as an
APPROVED FOR CITY COUNCIL AGENDA:
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City Council Meeting
June 13, 2006
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emergency matter requiring four affirmative votes to place it on the Agenda
Later in the meeting Councilmember Clark stated that she would like to discuss the Wal-
Mart certificate of occupancy and Councilmember Tran moved to add it to the Agenda.
It passed unanimously.
Thereafter the matter was discussed. Mr. Johnson explained that the Wal-Mart building
was completed and with the exception of some very minor labeling issues the deputy
building official had no life/safety concerns with the building being occupied by the
public. While certain items such as exterior landscaping had not been totally
completed, their completion was bonded by a letter of credit. He stated that the normal
practice under these circumstances would be that cities issue a temporary certificate of
occupancy and allow the building to be occupied. He had not taken that action in this
case but anticipated that the landscaping would be completed within the next couple of
days and that he would then issue a certificate of occupancy.
After some discussion, a motion was made to instruct staff to issue a certificate of
occupancy on the store's main building and hold off issuing the certificate of occupancy
for the garden center building until landscaping has been completed.
A transcript of the City Attorney's opening remarks and the discussion on adding and
acting on the matter are attached.
FINANCIAL REVIEW
If the action is not rescinded and Mr. Flournoy sues under the Brown Act, the City will
incur costs of defense. If the action is rescinded, it will have no financial effect because
Wal-Mart's certificate of occupancy would not be rescinded or otherwise affected as a
result. Wal-Mart has completed the outstanding landscaping items for which Mr.
Johnson had been holding up the certificate of occupancy.
LEGAL REVIEW
The City Attorney has reviewed the transcript and is comfortable that the Council action
was taken in accordance with the dictates of the Brown Act. The City Attorney also
notes that, with the completion of the outstanding landscaping items, rescission would
be an idle act. Additionally on September 13, 2006 the Superior Court denied the
School District's motion for a temporary injunction and on trial of the matter on
September 21, 2006 denied the District's request for a writ of mandate and determined
that the City had fully complied with CEQA. Accordingly, the direction given by the
Council to the Planning Director has been rendered moot.
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City Council Meeting
June 13, 2006
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Submitted by:
~ C~~/ C (erg.
For Peter L. Wallin, City Attorney
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Attachment A: Flournoy Letter
Attachment B: Transcript of Relevant Portions of the Sept. 12, 2006 Council Meeting
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September 19, 2006
Mr. Gary Taylor, Mayor
Council Members: Mr. John Nunez, Mayor Pro Tern
Ms. Margaret Clark, Jay Imperial, and John Tran
Rosemead City Council
8838 E. Valley Boulevard
Rosemead, California 91770
Dear Mayor Taylor,
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BY
This letter is to call your attention to what I believe was a substantial violation of a central
provision of the Ralph M. Brown Act, one which may jeopardize the finality of the action taken
by Rosemead City Council.
The nature of the violation is as follows: In its meeting of September 12, 2006 the Rosemead
City Council took action to direct the Planning Director, Brad Johnson to issue an early
Certificate of Occupancy to the Wal-Mart Stores, Inc. by a formal 3 to 2 vote.
The action taken was not in compliance with the Brown Act because there was no adequate
notice to the public on the posted agenda for the meeting that the matter acted upon would be
discussed, and there was no finding of fact made by the Rosemead City Council that urgent
action was necessary on a matter unforeseen at the time the agenda was posted.
In the event it appears to you that the conduct of the Rosemead City Council specified herein did
not amount to the taking of action, I call your attention to Section 54952.6, which defines "action
taken" for the purposes of the Act expansively, i.e. as "a collective decision made by a majority
of the members of a legislative body, a collective commitment or promise by a majority of the
members of a legislative body to make a positive or negative decision, or an actual vote by a
majority of the members of a legislative body when sitting as a body or entity, upon a motion,
proposal, resolution, order or ordinance."
As you are aware, 1986 amendments to the Brown Act created specific agenda obligations for
notifying the public with a "brief description" of each item to be discussed or acted upon, and
also created a legal remedy for illegally take actions, namely the judicial invalidation of them
upon proper findings of fact and conclusions of law.
Pursuant to that provision (Government Code Section 54960. 1), I demand that the Rosemead
City Council cure and correct the illegally taken action as follows: 1) the formal and explicit
withdrawal of the Certificate of Occupancy, 2) rescind the decision to separate the Super Center
and the Garden Center into two separate entities, 3) a disclosure at a subsequent meeting why
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individual members of the legislative body voted as they did and, 4) the full opportunity for
informed comment by members of the public at the same meeting. Informed comment to include
the provision of any and all documents in the possession of the Rosemead City Council related to
the action taken, with copies available to the public at the meeting which reconsideration of the
matter is to occur, notice of which is properly included on the posted agenda.
As provided by Section 54960.1 you have 30 days from the receipt of this demand to either cure
or correct the challenged action or inform me of your decision not to do so. If you fail to cure or
correct as demanded, such inaction may leave me no recourse but to seek a judicial invalidation
of the challenged action pursuant to Section 54960. 1, in which case I would seek the award of
court costs and reasonable attorney fees pursuant to Section 54960.5.
Respectfully yours,
S/
James
cc: Peter Wallin, Rosemead City Attorney
Wal-Mart Stores, Inc.
Joseph T. Francke, Legal Counsel, CFAC
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OPENING REMARKS FROM THE CITY ATTORNEY (Verbatim)
"I wanted to update both the audience and the City Council on the present status
of pending litigation regarding the WalMart development. Today, it was
scheduled for today, a hearing on Garvey School District's lawsuit to challenge
the Council's approval of WalMart. The Court on its own motion continued that
until the 21" and the Garvey School district called this morning, or their attorney
called, and indicated that he would be going into court tomorrow to seek a
temporary restraining order in hopes of enjoining the opening of the store until the
September 21" hearing. So we will be in court tomorrow and the 21" in response
to that motion for the injunction. The Wa1Mart development is close to being
completed, having completed everything we need to obtain a certificate of
occupancy; however, they probably won't be eligible to get one at least before
Thursday, but we do anticipate that everything will be completed and they will be
entitled to a certificate of occupancy by the end of the week and before the 21". If
that is true, if they do complete all that stuff, the certificate of occupancy will be
issued and they will be able to open by the end of the week."
"There is nothing on tonight's agenda involving the Wa1Mart or its opening. Any
member of the Council, if the Council wants to discuss this or give instruction to
staff or anything like that, it will require four votes to put it on as an urgency item.
Other than that it is not a matter to be considered by the Council tonight."
DISCUSSION PORTION AND ACTION TAKEN BY COUNCIL
(Verbatim)
Councilmember Tran: "May I make a substitute motion on that? Just to
understand your comment or motion, I'd like to make a substitute motion to just
allow staff to go through the check-off list and allow him to make the
determination to when"-
Mayor Taylor: "I thought that was our intent. Was it not?"
Councilmember Tran: "No, you're asking tomorrow for it."
Mayor Taylor: "Alright, we can check it through"-
Councilmember Clark: "My motion is to instruct the Planning Director to issue
the certificate of occupancy tomorrow and that the garden building will be late
October."
City Attorney Wallin: "The remaining landscape improvements - no certificate
of occupancy for the garden building until the remainder of the landscape
improvements are complete."
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Mayor Taylor: "What did you say? Two and a half million? What do they have
set aside?"
Planning Director Johnson: "The letter of credit, I believe the latest letter of
credit sets aside 5 million or approximately there."
Mayor Taylor: "Alright."
City Attorney Wallin: "Four hundred thousand for improvements."
Mayor Taylor: "Alright, would you have roll call please, Nina."
Councilmember Tran: "Action on the substitute motion."
Councilmember Clark: "The substitution motion goes first."
Councilmember Tran: "It was my substitute motion to authorize staff to their
discretion after going through the checklist to see if when it would be appropriate
for them to open the store."
Mayor Pro Tern Nunez: "Second."
Mayor Taylor: "Okay, but Mrs. Clark was to issue the certificate of occupancy.
So you're saying hold off?"
Councilmember Tran: "Handing off to staff and to the discretion of the Planning
Director. At his discretion when he feels this is complete to allow them."
Mayor Taylor: "So it's either your motion or Mrs. Clark's."
Councilmember Imperial: "And my second to Mrs. Clark's."
Mayor Taylor: "That's alright. Mr. Tran has made a motion. Would you vote on
that? Roll call vote, please." Excuse me, Mr. Tran, Mr. Nunez?"
Mayor Pro Tern Nunez: "No, I just think that the second motion goes more along
the ways that the City has been running its business I think that we had the
opportunity to make decisions like that for them, for the City... (inaudible
section)
Mayor Taylor: "Alright. Roll call please."
City Clerk Castruita: "On the substitute motion?"
Mayor Taylor: "Yes."
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City Clerk Castruita: "Do you need that repeated?"
Mayor Taylor: "Yeah."
City Clerk Castruita. "The substitute motion is to allow staff to go through the
check-off list and approve at their discretion of completion."
Councilmember Imperial: "And what did the other motion read?"
City Clerk Castruita: "Move to direct staff, the Planning Director in
particular, to issue occupancy permits tomorrow and that the garden
building is to take place when completed."
City Attorney Wallin: (Inaudible)
Councilmember Clark: "So we vote on the substitute first?"
Mayor Taylor: "Yes. Mr. Tran's motion. Would you please roll call for Mr.
Tran."
City Clerk Castruita: "Councilmember Clark? No. Councilmember
Imperial? No. Councilmember Tran? Yes. Mayor Pro Tem Nunez? Yes.
Mayor Taylor? No."
Mayor Taylor: "And now we have Mrs. Clark's motion."
City Clerk Castruita: "Councilmember Clark? Yes. Councilmember
Imperial? Absolutely. Councilmember Tran? No. Mayor Pro Tem Nunez?
No, and my vote is no because I think we completely changed the way
business is done in this City by making this motion. Mayor Taylor? Alright,
and yes for Mrs. Clark's."
Mayor Taylor: "And I would like to state for the record that this multi-million
dollar building fully stocked meeting the safety requirements that we need for the
building, fully stocked with perishable goods of meats, vegetables, produce, deli,
milk. It is completely stocked and I don't want any chance of the City being sued
for that."