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CC - 07-11-00- DATE rav MINUTES OF THE REGULAR MEET ROSEMEAD CITY COUNCIL JULY 11, 2000 The regular meeting of the Rosemead City Council was called to order by Mayor Clark at 8:00 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 Vasquez The Invocation was delivered by Councilman Taylor ROLL CALL OF OFFICERS: Present: Councilmembers Bruesch, Taylor, Vasquez, Mayor Pro Tem Imperial, and Mayor Clark Absent: None APPROVAL OF MINUTES: - MAY 23, 2000 - REGULAR MEETING MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN BRUESCH that the Minutes of the Regular Meeting of May 23, 2000, be approved as submitted. Vote resulted: Yes: Bruesch, Taylor, Clark, Vasquez, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. PRESENTATIONS: 1. ORAL COMMUNICATIONS FROM THE AUDIENCE Carlos Delgado, owner of Brite Spot Restaurant, and member of the Rosemead Chamber, extended an invitation for everyone to attend the Chamber's monthly mixer at the Rosemead Sheraton on July 13t. H. PUBLIC HEARINGS - None III. LEGISLATIVE A. RESOLUTION NO. 2000-38 - CLAIMS AND DEMANDS The following Resolution was presented to the Council for adoption. RESOLUTION NO. 2000-38 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF $641,349.99 NUMBERED 30996 THROUGH 31145 MOTION BY MAYOR PRO TEM IMPERIAL, SECOND BY COUNCILMAN VASQUEZ that the Council adopt Resolution No. 2000-38. Vote resulted: • t4i'it AO V ED CITY OF ROrSEMEAD a o~ ~w~ CCMIN:7-11-00 Page N I Yes: Vasquez, Taylor, Bruesch, Clark, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. Councilman Taylor requested backup information on Check No. 31089 in the amount of $601.00 to the Rosemead Chamber of Commerce. B. RESOLUTION NO. 2000-39 - SUPPORTING U.S. SENATE BILL S. 2700, BROWNFIELDS REVITALIZATION AND ENVIRONMENT RESTORATION ACT MOTION BY MAYOR PRO TEM IMPERIAL, SECOND BY COUNCILMAN BRUESCH that the Council adopt Resolution No. 2000-39 supporting 5.2700 (Chafee). Before vote could result, more conversation ensued. Juan Nunez, 2702 Del Mar, Rosemead, asked if these funds will be available for such contaminated properties as gas stations. Councilman Bruesch responded that this bill is mainly to clean up hister+s sites that are have a history of contamination, such as businesses no longer in existence, i.e. dry cleaning establishments or foundries that have been vacant for many years. This bill provides funds to clean up those properties to enable them to be used again, and to protect the surrounding properties from liability for that cleanup. Mr. Nunez asked if the taxpayers have to pay for the cleanup of those properties, does this allow the owners to then sell that property at a profit? Mr. Nunez stated that cleaning up those properties may be cost prohibitive, and if the property is abandoned is this bill necessary as the State can take over the cleanup of the area. Mayor Clark pointed that these properties are not under an administrative order to be cleaned up. They may be abandoned properties that do not have owners. Ms. Clark continued that many years ago during the war effort, many of these sites were directed by the government on how to dispose of fuels, which resulted in today's contaminated soils. Councilman Taylor stated that he intends to vote No as there are laws that enable an agency to assess businesses of cleanup charges, and laws to make sites environmentally safe. Mr. Taylor stated that this bill refers to many Federal acts currently in effect and that there are enough laws to enforce any type of cleanup. Mr. Taylor stated that he also is voting No as this bill will provide $150 million annually for clean-ups, and once a property is cleaned, the owner can then sell the formerly unsellable property at a good profit. Mayor Pro Tern Imperial cited as examples, the property at Walnut Grove and Valley that is still vacant because of contaminated soil, and money that cities had to pay in legal fees defending the landfill lawsuits against them - neither of which the City had any control over. Mr. Nunez cited an example of coal mining and the use of chemicals in the land, and the profits that were made. Mayor Clark explained that this bill is not a bailout for polluters, and in many cases, there are no owners to those properties, either through death or bankruptcy, and those properties just sit there. Councilman Bruesch stated that this comes down to a choice between having an eyesore or having a developer try to clean-up the property through grant funds. Mayor Pro Tern Imperial called for the question. CCMIN:7-11-00 Page a2 Vote resulted: Yes: Bruesch, Clark, Vasquez, Imperial No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. C. RESOLUTION NO. 2000-40 - AUTHORIZING THE ESTABLISHMENT OF THE PARS SUPPLEMENTAL RETIREMENT PLAN The following resolution was presented to the Council for adoption. RESOLUTION NO. 2000-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA AUTHORIZING THE ESTABLISHMENT OF THE PARS SUPPLEMENTAL RETIREMENT PLAN TO BE ADMINISTERED BY PHASE II SYSTEMS, PARS TRUST ADMINISTRATOR Councilman Taylor stated that any comments or objections he has with this item is not a reflection on any employee of the City. Mr. Taylor stated that the current retirement rate of 2% would entitle a 30-year employee to 60% of their salary, and by adding another 1% is about a 50% increase. Mr. Taylor stated that this is excessive, and that 95% of working people in private enterprise do not have those benefits or options to retire at those rates. Councilman Taylor requested clarification on the benefits for the City Attorney's office. Robert Kress, City Attorney, responded that the Council allows him to participate in this plan as an individual, not the entire law firm. Councilman Taylor stated that his objection is not with the City, but he is aware that other cities, fire and police departments are receiving pension increases to 3% also. However, Mr. Taylor stated again that he cannot support this increase as 95% of the workers in America cannot receive such benefits. Councilman Bruesch stated that a tremendous amount of money and effort is expended in training government employees, and once trained you want the employee to stay. Mr. Bruesch explained that the way to accomplish this is to increase their salaries and to make retirement benefits equal to private industry. Mr. Bruesch continued that many cities and large corporations have opted to increase their retirement benefits to encourage employees to stay until retirement age. Mr. Bruesch stated that he is in favor of making the retirement package as good as possible so that employees will not be lured away for just a few dollars more. Councilman Taylor stated that he is not opposed to a retirement program at 60%, which is reasonable. But, 80%, 90%, or 100% is excessive. Mayor Pro Tem Imperial that he is in favor of increasing retirement benefits and that he wants to eleviate employee's worries about their future. MOTION BY MAYOR PRO TEM IMPERIAL, SECOND BY COUNCILMAN VASQUEZ that the Council adopt Resolution No. 2000-40 which adopts by reference the Trust Administrative Agreement, the Trust Document, and the Retirement Plan, and appropriate the necessary funds from unappropriated reserves. Before vote could result, more discussion ensued. Juan Nunez, 2702 Del Mar, stated that this plan will cost the City $188,790 a year. CCMIN:7-1 I-00 Page n3 U Councilman Bruesch asked if the monthly administrative fee comes out of interest earned from the account. Don Wagner, Assistant City Manager, responded that it does not, that the administrative fee is a flat fee rather than a percentage of the assets over the years. Mr. Nunez questioned if the employees contribute anything to this plan? Mr. Wagner responded that the City pays the contributions, but this is not a portable plan such as PERS. The employee has to work for the City a minimum of 10 to 20 years and retire from the City. Councilman Taylor pointed out that Rosemead has a history of not having a large turnover in employees. Mayor Clark clarified that the reason employees stay is not necessarily just for the benefits, but that we have a quiet City and everyone seems to get along. Councilman Bruesch stated that the PERS retirement system has a 3% COLA increase yearly, and that the Consumer Price Index goes up approximately by 4%. Mr. Bruesch calculated that every year our retired employees are losing 1% of their buying power and after 10 years that would be 12% loss, and at 20 years it would be a 25% loss. Therefore, the 60% salary at retirement would leave the employee with only 35% of their buying power. Mr. Bruesch stated that he is concerned with retired employees being able to maintain their standard of living and feels that with PARS, this will allow that. Mayor Pro Tern Imperial called for the question Vote resulted: Yes: Bruesch, Clark, Vasquez, Imperial No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. Councilman Taylor stated that his comments were not against any employees, but feels that this is an excessive amount. Mayor Pro Tem Imperial stated that for 5 years employees only received a COLA increase and that the employees were loyal enough to stay, and now they will be offered a benefit that will mean more in the long run than salaries. Mayor Clark pointed out also that during the recession of 1992 and 1993, raises were not given. The following item was taken out of order in deference to those is the audience. IV. CONSENT CALENDAR CC-A RENEWAL OF MEMBERSHIP IN THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN BRUESCH that the Council authorize the renewal of membership in the San Gabriel Valley Council of Governments. Vote resulted: CCMIN:7-1 I-00 Page n4 • . 0 Yes: Bruesch, Taylor, Clark, Vasquez, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. D. RESOLUTION NO. 2000-41- ESTABLISHING A MONTHLY AUTO EXPENSE ALLOWANCE FOR COUNCILMEMBERS Councilman Taylor asked why the Council cannot turn in a mileage form and be reimbursed from that. MOTION BY COUNCILMAN BRUESCH, SECOND BY MAYOR PRO TEM IMPERIAL that the Council adopt Resolution No. 2000-41. Before vote could result, more discussion ensued. Robert Kress, City Attorney, explained that this is not a mandatory program, but is meant to address the day-to-day personal automobile use in the course of City business, for attending such meetings as the monthly regional organizations. Mayor Clark explained that the Councilmembers that do a lot of driving, the monthly reimbursement is an easier procedure than logging and turning in mileage sheets every time a business trip is taken. Ms. Clark continued that she usually attends one or more meetings daily and this would simplify that process for Councilmembers and staff. Ms. Clark added that if a Councilmember does not want to accept the allowance, they do not have to. Councilman Bruesch stated that he maintains a trip mileage log for income tax purposes and last year those expenses added up to about $1,000. Mr. Bruesch agreed that the monthly allowance is much more direct method and eliminates a lot of extra record keeping. Juan Nunez, 2702 Del Mar, Rosemead, stated that the mileage voucher system provides proof of mileage rather than a monthly allowance would. Mr. Nunez then asked what the Council salary is. Mayor Pro Tem Imperial stated that he does not request mileage reimbursement except when he drives and parks his vehicle at the airport. Mi. Imperial agreed that if a Councilmember does not want this allowance they can give it back or give it to charity. Councilman Taylor stated that he has no objections to Councilmembers being reimbursed; however, the mileage form is the most accurate way tracking this. Mr. Taylor stated that many of the Councilmember spend many hours on City business and that it is outrageous to think that any of the Councilmembers are in this job for the money. Vote resulted at this time: Yes: Bruesch, Clark, Vasquez, Imperial No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. Councilman Taylor stated for the record that reimbursement of mileage should be for actual miles driven. IV. CONSENT CALENDAR CC-B SHOPPING CART RETRIEVAL PILOT PROGRAM CCMIN:7-I1-00 Page #5 • 0 Councilman Taylor asked what the City is paying in retrieval fees and that markets already have a service that provides this. Don Wagner, Assistant City Manager, responded that the carts picked up are "orphan" carts, or carts with no identification on them. Bill Crowe, Administrative Services Coordinator, explained that every cart will be picked up and returned to the shopping center or store where they belong. Mr. Crowe continued that the carts that do not have proper identification will be picked up and stored. The City will be charged approximately $70-$100 a month for about 60-70 "orphan" carts picked up. Mr. Crowe stated that those carts will be recycled and the City will receive credits toward the City's recycling program. MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN VASQUEZ that the Council direct the City Manager to take the necessary steps to continue the shopping cart retrieval program pilot and authorize the expenditure of funds on a month-to-month basis for services. Before vote could result, more conversation ensued. Juan Nunez, 2702 Del Mar, Rosemead, asked if there is a State code section that pertains to cart removal from the premises. Councilman Bruesch stated that there is. Mr. Bruesch explained that prior to this program, shopping carts with no identification (i.d.'s filed off, etc.) were not picked up as ownership could not be proven, they remained on the streets. Mr. Bruesch continued that with this program, the carts can be picked up and recycled, the City is charged a nominal fee and receives recycling credits. At this time vote resulted Yes: Bruesch, Taylor, Clark, Vasquez, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. V. MATTERS FOR DISCUSSION AND ACTION - None VI. STATUS REPORTS - None VII. MATTERS FROM OFFICIALS Mayor Clark thanked everyone who worked on the 4a' of July Parade. VIII. ORAL COMMUNICATIONS FROM THE AUDIENCE - None IX. ADJOURNMENT There being no further action to be taken at this time, the meeting was adjourned at 9:12 p.m. in memory of Joe A. Gonsalves, the City's long-time lobbyist. The next regular meeting will be held on Tuesday, July 25, 2000, at 8:00 p.m. Respectfully submitted: City Clerk APPROVED: ~ 66,tk MAYOR '1~ CCMIN:7-1 I-00 Page #6