CC - Item 7A - 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 Member Atxm"enta, Council Member Low,
and Council Member Ly.OFFICIALS PRESENT: Acting City Manager Hawkesworth~ fnteriin City Attomey1
Assistant City Manager Saeki, Director of Finance Brisco Director of Parks and`R
Montgomery-Scott, Economic Development Administrator Ramirez., Deputy Public
Marcarello, and City Clerk Molleda.
1. PRESENTATION
A. Proclamation - Jim Zant
Mr. Zegers, Rosemead Teacher.- read a staterrienEtKat he read„to the Rosemead School faculty:
"I'm here to award the first GJAGntischolarship 0 outstanding accomplishment in government
and community service tragically ww6lost Jim in a traffic accident, on his way to school, last
summer. In an instant we lost one of the finest teachers'our school has ever had. On a personal
y r. aa~
level, in that instant, I lost my best,fnend~hconsidered him my brother; Jim was an inspiration to
me and to thousand ~of~stud nts;he was that rare combination of enormous wit, intelligence,
compassion, and dedication. Everyone that knew Jim, especially his family and friends, will never
forgethihIn July 2008 11 flights of angels carried him to his rest. He was a gift to the world who we
lost too soon.I
Mayor Clark siatiF6she had attended the funeral and it had been very touching; he was a very
wonderful person.
Council Member Armerita stated she had Mr. Zant as a teacher in Rosemead; he was a
remarkable teacher and everyone is saddened, by the loss
Council Member Ly 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 without 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 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 them that he would be giving it to Mr. Zant's wife.
Rosemead City Council Meeting
Minutes of June 9, 2009
Page 1 of 15 IT M N®.
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
A,
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 andithey said no; I would like them
to be recognized at the following City Council meeting..
1.
Mayor Clark stated it would be looked into.
Acting City Manager Hawkesworth responded
Council if someone was mistakenly missed.
2. PUBLIC COMMENT FROM THE
Juan Nunez-stated John Tran you
Lillian Sacco - stated she wash
requested a copy of the report fi
of oversight in the part off,the Cou
Stated the report addressedgthe p
had not done a good job in'inforrr
$400,000 thatt_tWa Mart,supposei
orga1rnd'ation, Save Our Co~m~"
done to alleviate problems s
Our Community and their at
Nunez to hand ul+the report
3. PUBLIC
it and bring 4155Ek to
and blow theshut down.
tonight to g. to the tlireWbuncil Members who had
as submitted'tto L.A. County Grand Jury, in regard to the lack
of the construction and the operation of the Wal-Mart store.
lems Council did;n6t know about or were indifferent to or staff
n'g t em oof;7Allso stated she wanted to mention the phantom
y`paid to alleviate some of the suffering of the neighboring
ee~secretive individuals have disbanded the membership of the
1, i, r er to muzzle their critics. As a result nothing has been
t bydneighboring residents. The three so called officers of Save
are engaged in a conspiracy of silence. (Mrs. Sacco asked Mr.
ancil.)
P
A. Consideration 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 of June 9, 2009
Page 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,
he had not attended that meeting and he would be abstaining
A. Minutes
March 24, 2009 - Special Meeting
Council Member Polly Low made a motion, seconded by
to approve the minutes of March 24, 200 itth;g~ne corre
resulted in:
Yes: Armenta,,Clark, Low, L
No: None
Abstain:, Taylor
AbsenRN* one
A. 4'~M n, utes '
March 26;,2009 - SpecialsMeeting
May 9, 2009~~Special-1 eeting
s ~wMay 12, 2009`=tSpec ial Meeting
B. Resolution,No. 2009.27 Claims and Demands
separately because
Member Sandra Armenta,
thename "Matsdorf". Vote
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 of June 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.
D. 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.
Recommendation: That the City Council acceplthee.public improvements and
survey monuments and authorize the release ofithe Certificate of Deposit including
interest.
G. Re-Adopting of FY 2009-10 City
The City's Investment Policy (Policy) reqgress~thh6 City,Council to re."adopt the
City's Policy at least annually. Staff has reviewed the Policy for continued
compliance with Government Code Section 53601 and there is no need fro any
changes.
Recommendation: That the approve tPolicy for the7
1;p
2009-10 fiscal year.
2009~ustice Assistance Grant P 9gram Applications
On February l7~2009 ,,Pre¢ idenntt 01 5ma signed into law the landmark American
ROnecovery a4RemvestmentpAcfof 2009. As one of its many elements, the
*
RecoverylAct hasxproyitled the U.S. Department of Justice with grant funding that
is currently,,being distributed under the Edward Byrne Memorial Justice Assistance
Grant (JAG)4P,,rogram JAG blends the previous Byrne Formula and Local Law
Enforcement+Block Grant (LLEBG) Programs to provide agencies with the
Flexibility to prioritize and place justice funds where they are most needed. These
fu d ;allow states and local government to support a broad range of activities to
prevent and control crime and to improve the criminal justice system.
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 of June 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 impovemen is on Del Mar Avenue,
from Garvey Avenue to Highcliff Street. At this%meetinq Mayor Pro Tern Taylor
asked staff to look into the feasibility of continuing the tree,planting project on Del
Mar Avenue from Highcliff Street to Graves Avenue.
After surveying the parkway areas(on Del Mar 1
`awx~
determined that there are 14 available location;
staff conducted a survey of Del Mar Aven ere
street trees. The resultsuof„this survey indic to
participants.expressed an interest to continue u
was unable to make contact.,with°residents at 3
vacant). Based on these sure
planted at locations approved
Highcliff to GrW69Fsstaff
lant trees. On.Ju e 1 and 2,
s to gauge interest in planting
out of 7 survey participants, 4
ee tree planting project. Staff
r ies (2 properties appear
amending that trees be
J residents.
for fhiswork is $6,565.14, including a 90-day maintenance period.
uatelf riding in the st er et1maintenance cost center (Gas Tax Funds)
to fund
the City Council authorize tree planting at locations
d"authorize the City Manager to execute a contract to
complete
Juan Nunez "stated the trees on Del Mar had,been planted and assumed Council wanted it that
way. He added th trthe survey taken was given to tenants and not to property owners. He asked
about the ramps for tte 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 of June 9, 2009
Page 5 of 15
Abstain: None
Absent: None
F. 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 ag
June 30, 2009. In accordance with this agreE
mutually agree to extend the term of this agrE
extending the agreement with Clean Street,oi
ew,ri <
under existing contract terms and conditions".
11
Recommendation: That the
Authorize the City Manag
extensiomwith Clean Stre
V,.
for proposeltprrgcess; and
2. Direct staff 0~epare a rE
services. % Mayor Pro Tem Taylor
information on it. A
Council Member Ly cl
months but staff:'was A
ager
to abstain.on this
lean Street expires on
and Clean Street may
as discussed
?are willing to do so
a six-month contract
time to complete a request
for street sweeping
he did not have enough
to extend the contract for another 6
that was correct.
Mayor Pro Tem~Taylor stated'~~the city has had these contracts in the past and have negotiated with
the contractor ihh&chooses t%go ahead with an extension with no rate increases. Mr. Taylor
stated that was t
added it as not somfutch'qu stionn of some l of l these contracts because some awere rabout 14 to
"Q.
°
15 years old and the City went out to rebid them, because it was something that had to be updated
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 one; 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
Rosemead City Council Meeting
Minutes of June 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 5th 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)swh~ib~hidentifies how the "loan"
will be repaid with interest.
The League of California Cities'has developea
member cities and sent to theit legislators and
hardship will exist if this propose6state proper
of the ongoing property tax losses and'the seri
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
to approve staffL' recc
raft resolutiiih; to be modified by
N IN
Governor, finding that a fiscal
raid is added tQhe pressures
nk 'y
revenue losses due to the
N
Resolution No. 2009-28 and
nto he City's legislators, the
money and here the State is
by Council Member Sandra Armenta,
in:
Yes: Ar"mental Claek'Low, Ly, Taylor
No: None
J. Interi6Budget Amendments
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 of June 9, 2009
Page 7 of 15
11. 1,
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
The Los Angeles Superior Court entered their final
v. Armenta, Molleda, Logan (the County Registrar
Rosemead. In this judgment the Court has ordere
March 3, 2009 General Municipal Election resu ts,,
canvass totals.
Recommendation: That the C
Canvass for the March 3, 2009
in the matter of Tran
fof~yoters) and the City of
d theZty Clerk to certify the
once again, to reflect the new
and file the nertifcation of
Council Member Ly stated he would be voting no on this item'because he felt the judge was
incorrect in stating the city clerk did not do her jbb correctly and thought the city clerk did do her job
correctly and she was right in excluding the signa`tu er s;that she did
Mayor Pro Tem Taylor
not do her job correctly
Council Member Ly responded th
therefore rejecting the city clerks
Mayor Prd~Tem T
/°x
did not;~do herjob
judge stated the city clerk did
the judge didlwas to allow four ballots to be counted and
his personal ruling but that he hadn't said the city clerk
Mayor Clark-responded she agreed and she would vote yes simply because Council had to certify
the election bufthought it wasiiionic because the signatures are supposed to match reasonably
and she had sat tt%reafor three hours while the judge went over 28 ballots and if you do the math
that is about 6 minutes~apiece and it defeated the entire purpose of why you have signatures that
match to prevent fraudShe 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
Rosemead City Council Meeting
Minutes of June 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,j Monte, and South El
Monte. This route would bring light rail transportationlt" our community,
In May of 2008, City Council directed staff to
SR-60. In February 2009, the City Council„a
the SR-60 route. Since that time, severaIr
from the above cities to combine effort's` to lol
Gold Line Extension Coalition is insthe proce
through an MOU. Additionally, one of the fot
initiated hiring a lobbying consultant on beta
Recommendation: That
Reimbursement Apreem
Public Affairs Manager
Council Member L
but the share cost
Mrs.
the
and the
she wanted to understand the cost; the $60,000 was for the consultant
is $2;000 per month.
total of $12,000.
CouncihMember Steven Ly,s
Monte wastaking the lead or
would the consultant answer
t+~~
Mrs. Flores resoonded1hat tt
South El Monte be
before Whittier did.
Nas sharing the cost for the consultant but South El
if there was a disagreement between the coalition who
1. 1
consultant was answering to the coalition and the only reason
id on it was because they wanted to act fast and hire the consultant
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:
i046'work with Metro regarding
sed a•resolution in support of
have taken place with staff
for SR-60. Asa (esult, the SR-60
f-being formed and formalized
gmembers of the,coalition
the coalition.
Rosemead City Council Meeting
Minutes of June 9, 2009
Page 9 of 15
Yes: Armenta, Clark, Low, Ly, Taylor
No: None
Abstain: None
Absent: None
B.
Citizens' Option for Public Safety (COPS) Grant
past several years budgeting and expending the fun
enforcement deputy and special event overtime z
funds be earmarked for only frontline police services
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&GOPS program for the
This fiscal year 2008-09, the City has b
program. To date, the City has receiv`e'
$50,000.00 expected by the end of u"
requires that this item be placed on the
opportunity for public input and discuss
the allocation and experiditure of these
Therefore, for fiscal year 2(
budgeted and expended to
deputy and,special event o
of
grant
miding that these funds be
)torcycle traffic enforcement
rd Shaw, Temple Station
support with respect to the use
approve the appropriation of the COPS
Mayor Pro T
approve the
C.
Manager
No: None
Abstain: None
Absent: None
report.
a motion, seconded by Council Member Polly Low, to
COPS funds for fiscal year 2008.2009. Vote resulted in:
Clark, Low, Ly, Taylor
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 (COCA) on behalf of their member cities and the
motorcycle traffic
requires that these
for the COPS
with the
The administration of the funds
o~Tc agenda and provide the
y
he
he City Council must then approve
Rosemead City Council Meeting
Minutes of June 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.
Recommendation: That the City Council take
Approve the amendment
County Sheriff's Deparrti
sign any related documei
Approve the tolling
Association, its me
City Attorney Montes reviewed the actionsTt
there was a dispute between the various citi
County with respect to management of the I
current Sheriffs contract is due,to expire on
all of the cities have approved,d; neayear e)
Council Member Steve'h',E'y~maddmotion,
approve the MOU and the~Reimbursement,
resulted in . ,.~q.
be taken t
the Los Angeles
ity Manager to
ween California,Cbntract Cities
County of Los Angeles.
added that currently
ntract with the`Sh6hff's Department and the
4,40fi
uridawhich is part of that contract; the
nd in rdb tr ensure uninterrupted service
fetl by Council Member Polly Low, to
lent for the lobbying consultant. Vote
Yes: Armeiita, CWk,Low, Ly, Taylor
No: None \ A Y
6. MATTERS FROM MAYOR & 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 of June 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 thefiollowing 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
B. Funding the IRS Penalties of the
On May 12, 2009, staff brought a request to the City Council to ssist the
Rosemead Youth Association (RYA)'n
n the payment of penalties thak6d been
levied by the Internal Revenue Service (IRS) totalingt$9,890.43. During
discussion at the meeting the Council direcfedistaff to work with the RYA and their
V, M
accountant to determineliNn fact the penaltiestcould be reduced or waived. It was
believed at the time that if the~C ty, paid these penalties, IRS might be less
willing to reduce or waive them when,the appeal wa ' eceived.
Since the original direction wascprovided staff' as been working with the RYA and
Ali, At~
their accoun
tantand have determined that it is in the best interest in the RYA to
pay off three penal iesAas soon as posxsible. The RYA President, Jerry Faustino, has
been in contact witheE IRS Agent assigned to their account and has been
assured thatif+the,p ne allies are paid off, it will not affect the appeal process
regarding the reduction or wawmg of fees. He was told that if in fact the fees were
reducedthe IRS would refund any payments that had been made. Secondly, the
outstanding baIancef r the penalties is accruing additional interest penalties at
the rate of 22% While%the RYA is making monthly payments of $500 per month,
the added interest is consuming a lot of their payment.
has the ability to automatically withdraw funds from the RYA's bank
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 of June 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
amount and would be more comfortable with paying half the
was the City's role to come in and pay off debts of any organi
Mayor Pro Tern Taylor stated he agreed with Mr. Ly butb
and the fact that they are servicing 400 youth in the comp
the program going as best possible. He added that-when
Council was donating 5-8 thousand, then it was raised to,
statement that he was not going to discriminate and once
Hawkesworth for further clarification. vina the entire
only fair to keep the organization going. r%added he and
because of the IRS if they don't pay it theyG'roe going to ac
if,Gecause he did not believe it
is. ~'Ikl
ie token th'eyxwere paying 22%
thought the City" needed to keep
ame up 5 or 6 yea sr ago
nd,and said he h d made a
ted paying off these fees it was
chat Mr. Ly was saying but
22%a year; asked Mr.
Mr. Hawkesworth responded ,that it was correctibuut t,was annualized in a monthly basis; basically
RYA is giving $500 a month'paym~entt which givOttth em the ability of a 30 day payoff without any
interest accruing but if;they don't payiit, they asses22% interest on the next month.
Mayor Pro Tern Taylor respondeds Aethi_s•lust,kere~ps`them even.
C"K
Mr. Hawkesworth added `that there is also a concern because the IRS has the ability to raid their
bank account at any time in addition RYA-i§ afraid that when they collect funds from their firework
stand 4 RS~will take those'&Ods and they won't have money to start their league.
Mayor Pro TeinTaylor asked that the RYA give Council more information on the IRS's claim
because this is anob)prroftt gro p. He asked if this was because they didn't file their returns or if
they made money and~didd;not 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 accrue
interest.
Mayor Pro Tern Taylor asked if there was no amending of the tax return to correct this.
Mr. Hawkesworth responded no
Rosemead City Council Meeting
Minutes of June 9, 2009
Page 13 of 15
Mayor Clark stated no because there was no return filed.
Mayor Pro Tem Taylor stated it was his understanding that if you don't do a tax return you just
don't get the money but there is not penalty. :
Council Member Armenta stated 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 get'R'
to compare it with this year. He added he just wanted
approved that none of those previous members were
Mr. Hawkesworth responded that the RYA"ad'stated that
them for rosters.
Mayor Pro Tem Gary Taylor made a motion,:s
approve the payment of$8;92U81Kto the IRS'
No:
Low, Ly, T
ftidn'f'file was 2004, 2005,
andladded that he did not
balan eifor,2006.
ers for 2004, 20054nd 2007
hat if this was going to get
on the board.
could certainly ask
Member Polly Low, to
gal Co"i"fs for Council Member Armenta
Payment 6f&'
;council Member Armenta has requested the City consider paying for her defense
osts?related°to the legal challenge that was made by John Tran in contest of the
ev a .Ra
Marchelection. In conferring with the City Attorney, California Government Code
Section36812.5 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 City Council Meeting
Minutes of June 9, 2009
Page 14 of 15
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 t
challenge but was reluctant to vote on an empty contract and
the following City Council meeting.
Acting City Manager stated that Council could d
Armenta's attorney and then bring it back to the
Mayor Pro Tern Taylor stated he appreciated that becau!
he was in favor of it but did not want to vote on an empty
8. ADJOURNMENT
The meeting adjourned at 7 53;pf.m. The next
place on June 23, 2009 at~7:00rpm,
Margaret Clark
Mayor
into a city election
his item be deferred to
to continueworkinq with Ms.
an awkward situation because
is scheduled to take
Rosemead City Council Meeting
Minutes of June 9, 2009
Page 15 of 15