CC - Item 6A - Minutes 06-09-09Minutes of the
REGULAR CITY COUNCIL MEETING
June 9, 2009
The regular meeting of the Rosemead City Council was called to order by Mayor Clark at 7:04 p.m.
in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead,
California.
FLAG SALUTE: Mayor Clark
INVOCATION: Mayor Pro Tern Taylor
PRESENT: Mayor Clark, Mayor Pro Tern Taylor, Council
and Council Member Ly.
OFFICIALS PRESENT: Acting City Manager Haw
Assistant City Manager Saeki, Director of Finance
Montgomery-Scoff, Economic Development Admir.
Marcarello, and City Clerk Molleda.
1. PRESENTATION
A. Proclamation - Jim Zant
Mr. Zegers, Rosemead
"I'm here to award the f
and community service . ; IU
summer. In an instate we.
level, in that instate, I lost
me and to thousands of.s
and dedic;
July 2008
lost to soor
Mayor Clark stbtddrshe had
wonderful person.'
the funeral and it had been very touching; he was a very
Council MemberArmerita stated she had Mr. Zant as a teacher in Rosemead; he was a
remarkable teacher and everyone is saddened by the lost.
Council MemberLy stated he had also had Mr. Zant as a teacher. What is interesting is that the
day he passed away the school had a vigil and over 200 people showed up with out much notice;
that goes to show that with such short notice people were there to sympathize with the passing of a
great teacher.
Mr. Zegers stated that they have been able to gather several thousand of dollars for his scholarship
and the school will be able to award the scholarship for the next several years. He thanked Council
once again for the proclamation and informed thern4hat he would be giving it to Mr. Zant's wife.
Rosemead City Council Meeting
Minutes ofJune 9, 2009
Page I of 15
read a
Council Member Low,
h City Attomey,l
of Parks an&Ri
,,Deputy Public
he read to the Rosemead School faculty:
i1afihscholarship for, outstanding accomplishment in government
ally we lost Jim in a traffic accident, on his way to school, last
one of,the finest teachers'our school has ever had. On a personal
best frienb: l-considered'him my brother; Jim was an inspiration to
hfs he was that rare combination of enormous wit, intelligence,
Everyone that knew Jim, especially his family and friends, will never
,,of angelscar?ied him to his rest. He was a gift to the world who we
ITEM NO. 1\Q
B. Planning Commissioners Presentations
1. Daniel Lopez
2. Todd Kunioka
3. Truong Cam
4. Ron Gay
5. Allan Vuu
No one was present to receive the plaques and the Mayor asked that they be delivered
Mayor Pro Tem Taylor stated he wanted something on the next City Council agenda because he
believes the previous Planning Commissioners were not given any recognition for their service
when the new Council took over. He stated he had asked them and they said no; I would like them
to be recognized at the following City Council meeting.
Mayor Clark stated it would be looked into.
Acting City Manager Hawkesworth responded th
Council if someone was mistakenly missed.
2. PUBLIC COMMENT FROM THE AU
Juan Nunez - stated John Tran you cou
Lillian Sacco - stated she
requested a copy of the re[
of oversight in the partof th
Stated the report addresse
had not done a good job in
$400,000 that Wal-Mart-sul
organization, Save Our Comm
done to alleviate problems suf
Comm unity'andaheir attorney,
Nunez to handout"the report tc
3. PUBLIC
A.
tonight
uld look.into it and bring•it back to
Vic;, N,
and blow the,hut down.
ltuee'Council Members who had
submitted to L.A. County Grand Jury, in regard to the lack
the construction and the operation of the Wal-Mart store.
is Council did,ndt know about or were indifferent to or staff
hg.th'm of._Also stated she wanted to mention the phantom
ly,paid to alleviate- some of the suffering of the neighboring
secretive individuals have disbanded the membership of the
y,'in ordef to muscle their critics. As a result nothing has been
1 by1, ghboring residents. The three so call officers of Save Our
engage in a conspiracy of silence. (Mrs. Sacco asked Mr
uncil.)
of the Imposition of Rubbish Liens
Pursuant to the contract between the City of Rosemead and Consolidated
Disposal Services, a Public Hearing has been scheduled to consider protests
regarding the imposition of liens on real property from those customers who are
delinquent in paying their trash collection bill.
Recommendation: That the City Council direct staff to place liens on those
properties whose owners have not paid their trash collection bill in full by 6:00 p.m.
on June 29, 2009.
Rosemead City Council Meeting
Minutes ofJune 9, 2009
Pagc 2 of 15
The Mayor opened the Public Hearing at 7:16 p.m.; there being no public comment requests the
Public Hearing was closed at 7:16 p.m.
Council Member Steven Ly made a motion,: seconded by Mayor Pro Tern Gary Taylor, to
approve staff's recommendations. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
4. CONSENT CALENDAR
Mayor Pro Tem Taylor asked that the minutes of March 24, 2009 be ke`d on separately because
he had not attended that meeting and he would be abstaining A x
A. Minutes
March 24, 2009 - Special Meeting
Council Member Polly Low made a motion, seconded by Council Member Sandra Armenta,
to approve the minutes of March 24, 2009`~w,ith,one correctionson the,name "Matsdorf".Vote
resulted in: ;1
Yes: Armenta, Clark, Low,
No: None :
A.
March 26,,2009 - SpecialWeetii
May 9, 2009-`Special Meeting
May 12, 2009 `,Special Meeting
B. Resolution,No. 2009.27 Claims and Demands
Recommendation: Adopt Resolution No. 2009-27, for payment of City
expenditures in the amount of.$544,923.50 numbered 100345 through 100371
and 66206 through 66320.
C. Acceptance of Traffic Signal Improvements on Del Mar Avenue and Graves
Avenue
The referenced project has been constructed in conformance with the approved
plans and specifications and is ready for acceptance of work.
Rosemead City Council Meeting
Minutes ofAne 9, 2009
Page 3 of 15
Recommendation: That the City Council accept the above reference project,
authorize the recordation of Notice of Completion by the City Clerk; and authorize
the release of the 10 percent retention payment 35 days after the recorded date of
the Notice of Completion.
G.
Release of Certificate of Deposit = Tract Map 61523 (8930 Mission Drive)
A Faithful Performance Bond and a Labor and Material Bond were required to
guarantee construction of new sewer laterals and installation of survey
monuments for Tract Map 61523. In lieu of bonds, a Certificate of Deposit was
issued to the City in the amount of $25,760.00. a.,
Recommendation: That the City Council accept,the•public improvements and
survey monuments and authorize the release o,Q e Certificate of Deposit including
interest.
Re-Adopting of FY 2009.10 City
The City's Investment Policy (Policy) req'uir(
City's Policy at least annually,, Staff has rev
compliance with Government Code Section
changes. `•1
Council to re eidoot the
the Policy for continued
,and there is no need fro any
Recommendation: That the
2009-10 fiscal~vear.
Investment Policy for the
e Assistance Grant Program Applications
On February 17.,,2009,'President Obama signed into law the landmark American
Recovery and,Reinvestment-Act`of 2009. As one of its many elements, the
Recbvery'Act has.provided the U.S. Department of Justice with grant funding that
is currently being distributed under the Edward Byrne Memorial Justice Assistance
Grant (JAG),;P.rogram.JAG blends the previous Byrne Formula and Local Law
EnforcemenfBl'ock Grant (LLEBG) Programs to provide agencies with the
flexibility to prioritize and place justice funds where they are most needed. These
funds:allow states and local government to support a broad range of activities to
is
prevent and control crime and to improve the criminal justice system.
fi`y
Pursuit of these funds requirements all potential recipients in the Los Angeles
County to file a joint application and sign a Memorandum of Understanding with
the City of Los Angeles in order for any of the recipients to receive these funds.
Recommendation: That the City Council authorize the City Manager to sign the
Memorandum of Understanding (MOU) and all other required contracts and
certificates in order to participate in the 2009 Justice Assistance Grant Program.
Rosemead City Council Meeting
Minutes ofJune 9, 2009
Page 4 of 15
Council Member Polly Low made a motion, seconded by Council Member Sandra Armenta,
to approve the Consent Calendar with the exception of Items E, F, H, J, and K. Vote resulted
in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
E. Del Mar Avenue Tree Planting Project - Highcliff Street to Graves Avenue
On May 26, 2009, the City Council authorized staff to complete a tree planting
project in conjunction with street resurfacing improvements on Del Mar Avenue,
from Garvey Avenue to Highcliff Street. At thisimeetjngMayor Pro Tern Taylor
asked staff to look into the feasibility of continuing the tre"e;planting project on Del
Mar Avenue from Highcliff Street to. Graves Avenue. '
After surveying the parkway areas on Del Mar
determined that there are 14 available' location.
staff conducted a survey of Del Mar Avenue re.
street trees. The results' of-this survey indicate
participants expressed arrlnte`rest,to continue %
was unable to make contact',witl 4esidents at 3
vacant). Based on these survey
planted at locations approved by
The tota6cost fort his work is $6,
There is adequate funding in the
to fund this proiect~
Highcliff to Graves staff
ilant trees. On.June 1 and 2,
is to gauge interest in planting
t out of 7 survey participants, 4
ie tree planting project. Staff
iertie`s (2 properties appear
)mmending that trees be
id residents.
14, including a 90-day maintenance period.
etrnaintenance cost center (Gas Tax Funds)
Redomrrendatiori:`That the City Council authorize tree planting at locations
approved byresidents and, authorize the City Manager to execute a contract to
complete the work. J,
Juan Nunez 'stated the trees on Del Mar had been planted and assumed Council wanted it that
way. He added ihatthe`survey taken was given to tenants and not to property owners. He asked
about the ramps for the ADA on the Westside of Del Mar; first the city build them, then the phone
company came in to rewire their lines and fixed them the same way, now they have been done the
third time; the only difference is that the yellow.pad has been added and they cut 24 ft. off each
side of the ramp.
Council Member Steven Ly made a motion, seconded by Council Member Sandra Armenta,
to authorize tree planting at locations approved by residents and authorize the City Manager
to execute a contract to complete the work. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Rosemead City Council Meeting
Minutes ofJune 9, 2009
Page 5 of 15
Abstain: None
Absent: None
Contract Extension with Clean Street to Provide Street Sweeping Services
The City of Rosemead provides street sweeping services through a contractual
agreement with Clean Street. The agreement includes performance standards
including service levels, diversion requirements, equipment standards, and
reporting requirements. Per the agreement, all City streets are swept at least once
weekly, Monday through Friday.
The City's current street sweeping service
June 30, 2009. In accordance with this ag
mutually agree to extend the term of this a
extending the agreement with Clean Stree
under existing contract terms and conditioi
Recommendation: That the
Authorize the City Manager,
extension with Clean Street
for proposal`process; and
2. Direct staff to prepare a.req
services. V '
Mayor Pro Tern Taylor
information on it.
Council Member
months but .staff.,
abstain'on this
he did not have enough
was to extend the contract for another 6
that was correct.
Mayor Pro Tem,Ta}
with the contractor i
stated that was part
added it was not so
city has had these contracts in the passed and have negotiated
to go ahead with an extension with no rate increases. Mr. Taylor
ation he would like to get to find out what he had agreed to. He
tion of some of these contracts because some were about 14 to
15 years old and the City'went out to rebid them because it was something that had to be update
but this contract has only been for three years., Mr. Taylor stated it was like the tree trimming
contractor, if they come in and they are willing to go ahead at the current prices or without an
extension or a cost increase the City allows that contractor to continue the work and that is the
concern with this particular on; He added he intended to abstain.
Council Member Steven Ly made a motion, seconded by Council Member Polly Low, to
approve staff's recommendations. Vote resulted in:
Yes: Armenta, Clark, Low, Ly
No: None
nt~with Clean Street expires on
.the City and Clean Street may
1. Staff,has discussed
and they,are willing to do so
a six-month contract
time to complete a request
est fogproposal for street sweeping
Rosemead City Council Meeting
Minutes ofJune 9, 2009
Page 6 of 15
Abstain: Taylor
Absent: None
H. Statement of Fiscal Hardship if State Elects to Borrow City Property Taxes
and Approve Unfunded Mandates
On May 5m the Department of-Finance announced it had proposed to the
Governor that the state "borrow" over $2 billion in local property taxes from cities,
counties, and special districts to balance the state budget, causing deeper cuts in
local public safety and other vital service. In order to start that process, the
Governor would have to issue,a proclamation declaring,the~existence of a "severe
fiscal hardship". The legislature would then have to implement the "borrowing"
program by passing urgency legislation (2/3 vote)-which identifies how the "loan"
will be repaid with interest. t
The League of California Cities has
member cities and sent to their legit
hardship will exist if this proposed,s
of the ongoing property tax losses <
economic recession.
Recommendation: That t
direct the City Clerk to ser
Governor and the League
Juan Nunez - stated the,State is 'coming out
trying to borrow money \ '
Council Member Polly Low made'a motion
to approve,staff's iecomme`ndations. Vote
in:
Yes: Armenta, Clark, L'ouv, Ly, Taylor
No: None ,"1 1%'
J. Inteeim'.BUdaet Amendments
ipedta draft resolution, to be modified by
and the Governor, rinding that a fiscal
upertyIt x raid is addeflo the pressures
.serious revenue losses due to the
el":
approve'Resolution No. 2009-28 and
-esolutiomto the City's legislators, the
money and here the State is
by Council Member Sandra Armenta,
From time to time, as new revenues are received and when changing
circumstances warrant, it becomes necessary to amend the budget. Resolution
No. 2009-29 amends the budget with $929,300.00 of new General Fund
appropriations. The appropriations are funded with $264,560.00 of new estimated
revenue and $664,740.00 is funded by unreserved fund balance. There is also a
funding shift of $350,000.00 from the Proposition A fund to the Proposition C fund
for public transportation services.
Recommendation: That the City Council adopt Resolution No. 2009-29.
Rosemead City Council Meeting
Minutes ofJune 9, 2009
Page 7 of 15
Council Member Steven Ly made a motion, seconded by Council Member Polly Low, to
approve Resolution No. 2009.29. Vote resulted in:
Yes: Armenta, Clark, Low, Ly
No: Taylor
Abstain: None
Absent: None
K. Re-Certification of the General Municipal Election Held March 3, 2009 and
Declaring the New Results
rte,.
The Los Angeles Superior Court entered their final judgmerifin the matter of Tran
v. Armenta, Molleda, Logan (the County Registrar of:Voters) and the City of
Rosemead. In this judgment the Court has ordered the City Clerk to certify the
March 3, 2009 General Municipal Election results, once again, to reflect the new
canvass totals.
Recommendation: That the City,Councill rece
Canvass for the March 3, 2009 General,Munici
Council Member Ly stated he would be voting no on this item b
incorrect in stating the city clerk did not do herjob,correctly and
correctly and she was right in excluding the signatures that she
Mayor Pro Tem Taylor asked -f
not do her job correctly.//.
Council Member Lyfespoj
therefore rejecting the city
Mayor Pro Tern Taylor,Ts
did not"do herjob correctly
his personal ruling but that he hadn't said the city clerk
Mayor Claik responded she agreed and she would vote yes simply because Council had to certify
the election but•ttiought it was' ironic because the signatures are suppose to match reasonably and
she had sat there`focthree hour's while the judge went over 28 ballots and if you do the math that is
about 6 minutes a piece'antl it defeated the entire purpose of why you have signatures that match
to prevent fraud. She reiterated that she agreed with Mr. Ly but would vote yes simply because the
election needed to be certified.
Council Member Polly Low made a motion, seconded by Council Member Sandra Armenta,
to receive and file the new Certification of Canvass for the March 3, 2009 General Municipal
Election. Vote resulted in:
Yes: Armenta, Clark, Low, Taylor
No: Ly
Abstain: None
Absent: None
file the
of
he felt the judge was
t the city clerk did do her job
judge stated the city clerk did
that',what the judge did:, as to allow four ballots to be counted and
Rosemead City Council Meeting
Minutes ofJune 9, 2009
Page 8 of 15
5. MATTERS FROM CITY MANAGER & STAFF
A. SR-60 Coalition MOU for the Gold Line Eastside Transit Coorridor Phase 2,
Alternate 1 ,
The Gold Line Eastside extension, which is under construction from Union Station
to Pomona Boulevard and Atlantic Boulevard in East Los Angeles, is scheduled to
be completed in mid 2009. The Metropolitan Transit Authority (Metro) is currently
studying four alternatives to extend the Gold Line, in addition to a no build
alternative. Alternative 1 (SR- 60), follows the southern edge of the SR-60
freeway, and traverses through Rosemead, Montebello,,EI.Monte, and South El
Monte. This route would bring light rail transportation too r community.
In May of 2008, City Council directed staff to
SR-60. In February 2009, the City Councll,a
the SR-60 route. Since that time, several,mi
from the above cities to combine efforts°to to
Gold Line Extension Coalition'is in the proce
through an MOU. Additionally, one of 6e fol
initiated hiring a lobbying consultant on beha
Recommendation: That the'City,Council
Reimbursement Aareement+for'the iobbvi
Public Affairs Manager
Council Member Low,stated she ,4
but the share cost fer the eityjs $2
Mrs.
Council Member Steven Ly, s
Monte was.taking the lead or
would the consultant answer
the
and the
to understand the cost; the $60,000 was for the consultant
month
Huw s a total of $12,000.
Was sharing the cost for the consultant but South El
if there was a disagreement between the coalition who
Mrs. Flores responded•that the consultant was answering to the coalition and the only reason
South El Monte becamethe'lead on it was because they wanted to act fast and hire the consultant
before Whittier did.'
Council Member Low asked who was representing the City of Rosemead in this coalition.
Mrs. Flores responded she had been attending the meetings and also there was a meeting
scheduled on the 16th for all of the councils from all the cities to attend.
Council Member Steven Ly made a motion, seconded by Council Member Polly Low, to
approve the MOU and the Reimbursement Agreement for the lobbying consultant. Vote
resulted in:
tinud,toawork with Metro regarding
passed a resolution in support of
igs have taken place with staff
for SR-60. As'aresult, the SR-60
~f,being formed andfo mr alized
ng'members of thecoalition
the coalition
Rosemead City Council Meeting
Minutes gfJune 9, 2009
Page 9 of 15
Yes: Armenta, Clark, Low, L`y, Taylor
No: None
Abstain: None
Absent: None
B. Citizens' Option for Public Safety (COPS) Grant
The 2008 Budget Act provides $214.2 million in General Fund money in 2008-09
to eligible local jurisdictions, as defined, for public safety purposes. Of this
amount, $107.1 million is allocated to the Citizens Option for Public Safety (COPS)
program. The City of Rosemead has participated in the-COPS program for the
past several years budgeting and expending the funds4or amotorcycle traffic
enforcement deputy and special event overtime jhis~grant requires that these
funds be earmarked for only frontline police services
This fiscal year 2008-09, the City has been'allbcated $100,0000 for the COPS
program. To date, the City has received $50,000.00 with the remaining
$50,000.00 expected by the end of June. The administration of these funds
requires that this item be placed on.theIC ty.CouncWagenda and provide the
opportunity for public input and discussion. h-e City Council must then approve
the allocation and expenditure of these funds.-' ,
Therefore, for fiscal year 2008=09,wi are recommdhding that these funds be
budgeted and expended to offset he costs fora motorcycle traffic enforcement
deputy and.special event overtime f Captain-Richard Shaw, Temple Station
Commander has provided a le of approval-and support with respect to the use
of these 2008-09lCOPS grant fund's.
Recommendation Thatthe City Council approve the appropriation of the COPS
V 1 11 -V
afunds for fiscal,year 2008=09 1.
` .X
Manager Saeki-reviewed the'staff report.
Mayor ProTein,Gary Taylor;made a motion,, seconded by Council Member Polly Low, to
approve the appropriation outhe COPS funds for fiscal year 2008.2009. Vote resulted in:
Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
C. One Year Extension of Sheriff Contract and Approval of the Tolling
Agreement
The current contract with the Los Angeles County Sherriff's Department is set to
expire on June 30, 2009. Due to ongoing discussion between the California
Contract Cities Association (CCCA) on behalf of their member cities and the
Rosemead City Council Meeting
Minutes ofJtme 9, 2009
Page 10 of '15
County regarding the use of Liability Trust Fund money to pay for a settlement in a
legal dispute, the CCCA is recommending that a one-year extension be approved
rather than the normal five-year contract extension. It appears that most if not all
of the 40 contract cities will be approving this one-year extension until an
agreement can be reached.
Along with the contract extension, a separate tolling agreement has been
developed and signed by the CCCA along with its members who contract with the
Los Angeles County Sheriff's Department. CCCA has asked that all contract cities
also adopt the tolling agreement as it is directly related to the dispute regarding the
Liability Trust Fund. 'a
Recommendation: That the City Council take
Approve the amendment
County Sheriff's Deparrtrr
sign any related ddcumei
2. Approve the tolling
Association, its me
City Attorney Montes reviewed the actions`t
there was a dispute between the various cit
County with respect to management of the I
current Sheriff's contract is due;to expire or
all of the cities have approved'abne,vear e:
Council Member Steve' n'1y,made'a motion,
approve the MOU and tWReimburieement,,
resulted in 450 ~ „'"N"
be taken t
the Los Angeles
amity Manager to
w"een California,Contract Cities
County of Los Angeles.
added that currently
ntract with the"Shefiffs Department and the
>,t,fund;.which is'part of that contract; the
and in orderto ensure uninterrupted service
ded by Council Member Polly Low, to
lent for the lobbying consultant. Vote
Yes: Ar'me'nta, Clark'iLow, Ly, Taylor
No: None'* r~ ,
6. MATTERS FROWMAYOR & CITY COUNCIL
A. Planning Commissioner Terms of Office
As the Council is aware, all of the Planning Commission terms currently expire at
the same time. In order to correct this and return to staggered terms, the
Municipal Code must be amended. Staff has conferred with the City Attorney and
has prepared an Ordinance which will re-establish staggered terms for the
Planning Commission. The City Council will need to randomly select two of the
recent appointees that will serve only one year terms.
Rosemead City Council Meeting
Minutes ofJune 9, 2009
Page 11 of 15
Recommendation: That the City Council adopt Ordinance No. 875 authorizing the
amendment to Section 2.28.020 of the Rosemead Municipal Code.
City Attorney Montes reviewed the staff report and clarified that the Ordinance was on the agenda
for the first reading and will be put back on the following council agenda for City Council's approval.
Council Member Polly Low made a motion, seconded by Council Member Sandra Armenta,
to introduce Ordinance No. 875 for its first reading. Vote resulted in:
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
Funding the IRS Penalties of the
On May 12, 2009, staff brought a request to t
Rosemead Youth Association,(RYA)an,the p~
levied by the Internal Revenue Service (IRS)
discussion at the meeting the Council direo to
accountant to determine'ifin fact the penaltie
believed at the time that if the°,City,paid these
willing to reduce or waive them when Ahe app
Since the original direction was, rovided s afl
their accountaritand have determined that it i
uth
City Council to"assist the
Tent of penalties that f5d been
, rE4 nq
$9,890.43. Du~l
to work with the RYA and their
I be reduced or waived. It was
ies, the IRS might be less
been working with the RYA and
the best interest in the RYA to
pay off.the penaltiestas soon as possible. The RYA President, Jerry Faustino, has
been in'contact with the IRS Agent assigned to their account and has been
assured that ifthe penalties arerpad'off, it will not affect the appeal process
regarding the'reduction or'waivmg of fees. He was told that if in fact the fees were
refibetl :the IRS would refund any payments that had been made. Secondly, the
outstanding"=balance`forthe'penalties is accruing additional interest penalties at
the rate of 22%. While the RYA is making monthly payments of $500 per month,
the added inttei st is consuming a lot of their payment.
Lastly ,the IRS has the ability to automatically withdraw funds from the RYA's bank
accou'n'fwtiich is making it difficult for the RYA to collect funds to start the season.
It is very realistic that any league fees for the upcoming season or funds generated
by the fireworks booth to help pay for the upcoming season could be taken by the
IRS for the payment of outstanding penalties.
The RYA Treasurer has contacted the IRS and has obtained a new payoff
statement that is valid through July 2, 2009. Their current outstanding balance is
as follows: ,
Rosemead City Council Meeting
Minutes ofJune 9, 2009
Page 12 of 15
Tax Year Amount
2004 $2,927.11
2005 $2,185.77
2007 $3,807.93.
$8,920.81
Recommendation: That the City Council provide direction regarding the
contribution of funds to the Rosemead Youth Association.
Acting City Manager Hawkesworth reviewed the staff report.
Council Member Ly stated he sympathized with RYA but was hesitanttwit paying the entire
amount and would be more comfortable with paying half the amount.because he did not believe it
was the City's role to come in and pay off debts of any organizations.
Mayor Pro Tem Taylor stated he agreed with Mr. Ly but ,b
and the fact that they are servicing 400 youth in the comp
the program going as best possible. He added thatwhen
Council was donating 5-8 thousand, then it was raised to;
statement that he was not going to discriminate and once
only fair to keep the organization going. He added he and
because of the IRS if they don't pay it they"are going to a
Hawkesworth for further clarification. 4 `r
i same token they'were paying 22%
nity he thought the City needed to keep
its frstcame up 5 or 6 yea11 rs ago
i,thousand,and said he had made a
sst started paying off these fees it was
tood„what Mr. Ly was saying but
amulate 22%% a year; asked Mr. r 11
Mr. Hawkesworth responded.that it was correct,but-it4as annualized in a monthly bases; basically
RYA is giving an $500 a,month•payment which gives them the'•a`bility of a 30 day payoff without any
interest accruing but if.they don't pay it, they asses~22% interest on the next month.
Mayor Pro Tem Taylor re p>\ded t/ih thisslust keepsm even.
Mr. Hawkesworth added~tnat themis`also a concern because the IRS has the ability to raid their
bank account at any time ,ih additionwRYA i afraid that when they collect funds from their firework
stand tt esIRS will take those4unds and:ttiey won't have money to start their league.
Mayor Pro Tem:Taylor asked that the RYA give Council more information on the IRS's claim
because this is anon-profit group. He asked if this was because they didn't file their returns or if
they made money and did,- t report their taxes.
Mr. Hawkesworth responded that it was because each year, even non-profits, are required to
report an annual financial statement to both the State of California and the IRS, it has nothing to do
with reporting taxes, it has to do with what the organization took in and paid out but if they don't file
that financial statement in time the IRS assesses penalties and then that penalty begins to accrued
interest.
Mayor Pro Tem Taylor asked if there was no amending of the tax return to correct this.
Mr. Hawkesworth responded no.
Rosemead Ciry Council Meeting
Minutes ofJune 9, 2009
Page 13 of 15
Mayor Clark stated no because there was no return'filed.
Mayor Pro Tern Taylor stated it was his understanding that if you don't do a tax refund you just
don't get the money but there is not penalty.
Council Member Armenta stated it they were talking about an organization that has been in
existence since 1972 and added she was an RYA participant and that the service that this
organization provides is very essential. Mr. Armenta stated she understood what Mr. Ly was
saying about the City not being here to bail everyone out but added that when circumstances arise
that were out of their control then that needed to be taken under consideration.
Council Member Ly stated for clarification that the three years that
and 2007.
Mr. Hawkesworth stated that those were the years that
know if they were late in 2006 but currently there was r
Council Member Ly asked if there was a way to getRYNs
to compare it with this year. He added he just wanted top
approved that none of those previous members were curie
Mr. Hawkesworth responded that the RYA\'hadstated that I
them for rosters. e
Mayor Pro Tern Gary Taylor made a motion, seconded
approve the payment of ;$8;920,814o the IRS. Vote resu
Yes' A enta, Clark, Low, Ly, Taylor,'
No: Nonee~„~
y,didriTfile was 2004, 2005,
and,added that he did not
balance,for,2006.
?rs for 2004, 2005 and 2007
iat if this was going to get
on the board.
could certainly ask
Member Polly Low, to
Gr Payment ofYLegatCosts fforCouncil Member Armenta
Council MembeF Armenta has requested the City consider paying for her defense
cost's related to the legal challenge that was made by John Tran in contest of the
March election. In conferring with the City Attorney, California Government Code
Section•36812.5 provides in relevant part that "A city may defend any person
elected to the city council in any election contest instituted for any of the causes
set forth in subdivisions (a), (d); or (e) of section 16100 of the Election Code".
Elections Code Section 16100(e) includes a challenge to an election based upon
an allegation "that the precinct board in conducting the election or in canvassing
the returns, made errors sufficient to change the result of the election as to any
person who has been declared elected". The Complain in the Tran v. Armenta suit
clearly falls within the scope of 36812.5 and 16100(e) and due to the fact that
Council Member Armenta's interests in the case were different from and potentially
Rosemead Citv Council Meeting
Minutes of June 9, 2009
Page 14 of 15
Y.
in conflict with those of the City and City Clerk, it is appropriate that she was
represented by a firm other than Burke, Williams & Sorensen, LLP. The City
Attorney has also made the recommendation that if legal fees are to be paid by the
City, that they be paid directly to the attorney representing Council Member
Armenta.
Recommendation: That the City Council provide direction regarding the payment
of legal fees for Council Member Armenta in the Tran v. Armenta case.
City Attorney Montes reviewed the staff report and added he had not been able to get the total
amount due from Ms. Armenta's attorney.
Mayor Pro Tem Taylor stated he agreed with the concept of being. forced jinto a city election and
but was reluctant to vote on an empty contract and asked that this item~be-deferred to the following
City Council meeting.
Acting City Manager stated that Council could direct th&'City Attorney to continue.working with Ms.
Armenta's attorney and then bring it back to the nezt•Council meeting.
Mayor Pro Tern Taylor stated he appreciated that becaw
he was in favor of it but did not want to vote,on an empty
8. ADJOURNMENT
The meeting adjourned at
place on June 23, 2009_at
A
Gloria Molleda,
The next
Margaret Clark
Mayor
an awkward situation because
is scheduled to take
Rosemead City Council Meeting
Minutes of June 9, 2009
Page 15 of 15