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HomeMy WebLinkAboutE-1 Minutes Special Meeting, March 25, 2019 and Regular Meeting, April 1, 2019CITY OF AZUSA MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL MONDAY, MARCH 25, 2019 – 6:30 P.M. The City Council of the City of Azusa, met in Special Session at the above date and time in the Azusa Light & Water Conference Room, located at 729 N. Azusa Avenue, Azusa, CA 91702. Mayor Rocha called the meeting to order at 6:54 P.M. ROLL CALL: Roll call was taken by City Clerk Cornejo. PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT Elected Officials: City Clerk Cornejo. Staff Members: City Manager Gonzalez, City Attorney Priest, Director of Finance Johnson, Director of Human Resources and Risk Management Bragg, Director of Economic and Community Development Marquez, Director of Public Works/City Engineer Bobadilla, Director of Information Technology and Library Services Graf, Director of Utilities Robledo, Director of Recreation and Family Services Carpenter, Chief of Police Hunt, Economic Development Specialist Campos, Senior Planner Munoz, Police Captain Bertelsen, Budget Administrator Lam, Assistant Director – Water Operations Macias, Utility Programs Specialist Reid, Utilities Administrative and Financial Services Manager Tran, and Chief Deputy City Clerk Garcia. PUBLIC COMMENT None. REVIEW OF FISCAL SUSTAINABILITY ASSESSMENT City Manager Gonzalez introduced the item stating that Staff will discuss three areas: current financial position, City position and possible solutions regarding other post-employment benefits (OPEB) and retirement obligations, and revenue enhancement. Director of Finance Johnson presented the Staff Report stating that the City’s General Fund has a diverse revenue mix, five year projections show 3.5% to 4.7% increases in property taxes and more modest increases in sales taxes; the City has one outstanding bond which will paid off by Fiscal Year 2020/21 and one Water Fund Loan which will be paid off by Fiscal Year 2024; a $2.9 Million surplus due to one-time property sales proceeds is projected in the current budget year; and five year projections show deficits of $1.5 Million to $3.3 Million annually due to anticipated increases to CalPERS costs; budget forecasts results in depletion of cash reserves; if nothing is done, reserves will be reduced to approximately $1.6 Million by Fiscal Year 2023/24; and estimated cash balances do not include replenishment of reserves if they are used. There is a $41.2 Million OPEB liability as of June 30, 2018; participation in CalPERS medical mandates that the City make payments of the PEMHCA minimum for all participants; payments are currently $136 per month for each participant; payments for retiree medical have increased almost 60% over the past five years; many Cities are establishing a trust for OPEB liabilities to use as a budget stabilization tool; there is a $72.2 Million CalPERS liability as of June 30, 2018; and CalPERS costs are scheduled to increase 60% over the next five years. Ms. Mary Beth Redding, Bartel Associates, LLC, provided background information about CalPERS, the old contribution policy, and changes made in order to create a more stable and sustainable fund, which requires Cities and other public agencies to pay more money. She also stated there are more retirees than active employees which make managing the plan more difficult; unfunded liabilities have remained consistent over the years but assets have increased and cover the amounts owed to retirees; and projected contributions are expected to increase over the next ten years to pay back the unfunded liabilities. Options for paying down the unfunded liabilities more quickly are: “Fresh Start,” which refinances the unfunded liability over a shorter period of time to pay a larger amount, sooner and save on interest or pay off specific portions of the unfunded liability; the City also has the option to establish a trust to accrue interest and eventually use the money to pay CalPERS; and a further overview and comparison of available options was provided. CONSENT ITEM E-1 APPROVED CITY COUNCIL 4/15/2019 In response to questions posed by the Council, Ms. Redding stated that costs to administer a trust vary depending on the provider; most providers charge based off of a percentage of assets; returns from investments can only be used for pensions; CalPERS does not only own stocks and bonds, they also own properties; a combination of 2009 losses, more retirees, and enhanced benefits led to where we are now; and the options are to either pay CalPERS sooner to offset the interest charges, or pay CalPERS invoices as they are received, which will result in higher interest payments. Director of Finance Johnson added that funds to establish the trust can be designated from the reserves; the City can continue to set aside $1.5 Million each year and then decide where the money is to be spent. Extensive discussion ensued regarding the establishment of a trust; extra payments made to CalPERS; and the investment policy. Director of Finance Johnson presented the Fiscal Sustainability Assessment that was conducted stating that Staff reviewed existing contracts and franchise agreements to ensure the City is capturing all contractual obligations, identified contracts to potentially renegotiate, examined areas of organizational efficiency opportunities, and explored extraordinary measures to generate additional revenues. The goals of the assessment is to balance the budget, maintain designated reserves, tackle long-term liabilities, maintain and continue to improve credit standing, meet future financial obligations, maintain essential services to the community, and long-term sustainability. Staff is exploring revenue enhancements and cost cutting strategies with the FY 2019/20 budget development; three major contracts/franchise agreements which could potentially be renegotiated were identified; and potential extraordinary measures such as a sales tax override and Utility Users Tax modernizations were also identified. In response to questions posed by the Council, Staff stated that the City owns the water rights and leases the rights to the Utility Department; discussion ensued regarding water rights leases, rates, and revenues. Moved by Councilmember Carrillo, seconded by Councilmember Macias and carried by unanimous vote of the Council to direct Staff to move forward, with Council approval throughout the process, with re-negotiations of the hazardous waste processor, landfill waste processor and water rights leases franchise agreements/contracts. AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE Moved by Mayor Pro-Tem Alvarez, seconded by Councilmember Gonzales and carried by unanimous vote of the Council to direct Staff to further investigate the Sales Tax override and Utility Users Tax modernization revenue enhancements. AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE Moved by Councilmember Carrillo, seconded by Councilmember Gonzales and carried by unanimous vote of the Council to direct Staff to return to Council with recommended actions for long-term funding strategies related to pension and OPEB liabilities. AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE ADJOURNMENT The meeting was adjourned by consensus of the City Council. TIME OF ADJOURNMENT: 7:59 P.M. __________________________________________ CITY CLERK PAGE TWO – 3/25/2019 CITY OF AZUSA MINUTES OF THE CITY COUNCIL, THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, THE PUBLIC FINANCING AUTHORITY REGULAR MEETING MONDAY, APRIL 1, 2019 – 6:30 P.M. The City Council of the City of Azusa met in regular session at the above date and time in the Azusa Auditorium located at 213 E. Foothill Boulevard, Azusa, CA 91702. Mayor Rocha called the meeting to order at 6:30 P.M. ROLL CALL: Roll call was taken by City Clerk Cornejo. PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT Elected Officials: City Clerk Cornejo. Staff Members: City Manager Gonzalez, City Attorney Hull, Chief of Police Hunt, Director of Human Resources & Risk Management Bragg, Neighborhood Services Coordinator Quiroz, and Chief Deputy City Clerk Garcia. PUBLIC COMMENT None given. CLOSED SESSION The City Council recessed to closed session at 6:32 P.M. to discuss the following: 1. CONFERENCE WITH LABOR NEGOTIATORS - Pursuant to California Government Code, Section 54957.6. City Negotiator: Sergio Gonzalez, City Manager and Tanya Bragg, Director of Human Resources & Risk Management Organizations: SEIU (Service Employees International Union- Local 721), ACEA (Azusa City Employees Association), AMMA (Azusa Middle Management Association), APOA (Azusa Police Officers Association), CAPP (Civilian Association of Police Personnel), and APMA (Azusa Police Middle Management Association) 2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS – Pursuant to California Government Code, Section 54956.8. City Negotiators: Sergio Gonzalez, City Manager and Erik Westedt, CBRE Property Address: D Club, 975 W. Foothill Boulevard, Azusa (APN 8605-019-906 and 907) Negotiating Parties: Keith Parry, EFPAR Development Under Negotiation: Price and Terms of Payment 3. CONFERENCE WITH LEGAL COUNSEL – POSSIBLE INITIATION OF LITIGATION Pursuant to California Government Code, Section 54956.9 (d)(4). 1 Potential Case – Colonial Inn, 534 E. Foothill Blvd, Azusa REGULAR SESSION Mayor Rocha called the meeting to order at 7:32 P.M. ROLL CALL: Roll call was taken by City Clerk Cornejo. PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT Elected Officials: City Clerk Cornejo. Staff Members: City Manager Gonzalez, City Attorney Hull, Chief of Police Hunt, Director of Public Works/City Engineer Bobadilla, Director of Recreation and Family Services Carpenter, Director of Human Resources & Risk Management Bragg, Director of Economic & Community Development Marquez, Director of Utilities Robledo, Senior Planner Munoz, Economic Development Specialist Campos, Neighborhood Services Coordinator Quiroz, and Chief Deputy City Clerk Garcia. The Pledge of Allegiance was led by Ms. Blanca Garcia, Ms. Denisse Aranda, Ms. Aleyna Gomez, and Ms. Angela Reina. The invocation was given by Pastor Rick McDonald, Azusa House of Prayer. CLOSED SESSION REPORT The City Council reconvened at 7:32 P.M.; City Attorney Hull announced that there was no reportable action. CEREMONIAL 1. Certificates of Recognition were presented to the 2019 Community Awareness Artwork Contest winners, Blanca Garcia, Denisse Aranda, Aleyna Gomez, and Angela Reina. 2. A proclamation proclaiming April 18, 2019 as Arbor Day in the City of Azusa, was presented. PUBLIC COMMENT Ms. Julie Mathias discussed the climate and provided information about a global city initiative. Mr. Andrew Mendez, representative of the Golden Days Committee, provided information about the upcoming Golden Days Committee meeting; announced that all meetings are open to the public; invited the Council to attend the upcoming meeting; and stated that he would be happy to provide minutes to prior meetings and answer any questions that the Council may have. Mr. Joe Guarrera, representative of the Golden Days Committee, stated that the City has had a representative on the Golden Days Committee from the time that the Committee was organized; stated that the Committee Bylaws, Articles of Incorporation, and Memorandum of Understanding have not changed; the only restriction regarding City representation on the Committee is that the General Chairman cannot be a paid employee of the City or a Councilmember; and stated that the information is in the brochure provided to the Councilmembers every year. Discussion ensued regarding the reviewing of policies and budget for the Golden Days Committee. Mr. Jim Taite expressed concerns regarding the loss of open space in the City; suggested the use of properties, other than the golf course, for the building of senior housing; inquired about traffic thresholds and traffic concerns on Sierra Madre Avenue; expressed concerns regarding the number of parking spaces for the proposed senior housing project; inquired about the price of the senior housing units; and expressed concerns regarding the businesses near the proposed senior housing project. Ms. Susana Taite expressed her opposition of the proposed senior housing project; requested that the Azusa Greens Golf Course invest in their visitors and the City of Azusa; and requested that the developer build on a different site in the City. Mr. Edward Barrera, representative of Senator Susan Rubio, provided information about a scholarship opportunity. REPORTS, UPDATES AND ANNOUNCEMENTS FROM STAFF/COUNCIL City Manager Gonzalez announced that a Special Meeting will be held in April to continue the discussion of the City’s current financial status and the item will be brought to the Council for a decision at a Regular Meeting; a Coffee with the City Manager event is scheduled for April 13 to discuss financial issues; and stated that City Staff is available to answer any questions that the residents may have. Mayor Pro-Tem Alvarez reminded residents that water restrictions are still in place as there is still a water shortage. Councilmember Macias thanked Chief of Police Hunt for providing a map of parking ticket concentration areas and requested that it be posted on the City’s website as well; thanked Staff for the shopping cart retrieval report and inquired about the process for reporting a shopping cart; requested that the downtown sidewalks be pressure washed and tiles be replaced; and inquired about whether code enforcement is being conducted on weekends. City Manager Gonzalez responded to the questions posed stating that there is a phone number that residents can call to report shopping carts and the City Hall Receptionist can provide the information as well; the sidewalks in the Downtown Area are scheduled to be pressure washed once per month; Staff is looking into locking the power outlets in the Downtown Area; and Staff will continue to work on repairing the tiles in the Downtown Area. Director of Public Works/City Engineer Bobadilla addressed the concerns regarding the Downtown Area stating that Staff has filled in all of the missing tiles and trip hazards have been eliminated; and Staff is in the process of scheduling pressure washing in the area within the next few weeks during the early morning hours. PAGE TWO – 4/1/2019 City Manager Gonzalez provided an update on weekend code enforcement stating that a report was provided to the Council; and illegal street vending enforcement took place over the weekend and citations were issued. Councilmember Gonzales announced the Compost and Mulch Giveaway on April 6; and reminded residents to continue conserving water. Mayor Rocha thanked all of the volunteers that helped plant flowers; announced the following events: April 2 – Seal Beach Clean-Up, April 6 – Legos and Hotwheels event at the Library, April 3 – Butterfly Tree Craft at the Library, April 4 – Slime Activity at the Library, April 5 – Board Games at the Library, April 6 – Read to Me at the Library, April 6-7 – Free Art Sale, April 13 – Smart Gardening Workshop, April 13 – Azusa Beautiful Plant Sale; expressed health concerns regarding street vendors in the City and inquired about who to call to report them. City Manager Gonzalez stated that the Police Department can be contacted on weekends to report street vendors and Code Enforcement will continue staggering weekend enforcement. SCHEDULED ITEMS None. CONSENT CALENDAR: Moved by Mayor Pro-Tem Alvarez, seconded by Councilmember Macias and carried by the following vote of the Council, to approve Consent Calendar Items E-1 to E-16, with the exception of Items E-4 and E-8, which were handled under the Special Call portion of the agenda. AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE 1. The minutes of the Regular Meetings of March 4, 2019 and March 18, 2019 were approved as written. 2. Resolution No. 2019-C09 was adopted and entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME ARE TO BE PAID. 3. The Human Resources Action Items, in accordance with the City of Azusa Civil Service Rules Section 5.75 and applicable Memorandum of Understanding(s), were approved as follows: Merit Increase and/or Regular Appointment: A. Solis, A. Gaddis New Appointment: J. Tello Promotion: G. Espinoza Flexible Staffing Promotion: K. Soliven Separation: O. Morales, J. Palmer. 4. Special Call. 5. The Request for Proposals for inspection and cleaning of City maintained catch basins was approved; and Staff was authorized to solicit the Request for Proposals. 6. The First Amendment to Maintenance Services Agreement between the City of Azusa and Control Air Conditioning Corporation for HVAC system services was approved; an increase to the blanket purchase order for Control Air Conditioning Services from $120,000 to $250,000 was approved; and the City Manager was authorized to execute the contract amendment on behalf of the City. 7. The Third Amendment to the Maintenance Services Agreement between the City of Azusa and Ultimate Maintenance Services, Inc. for City-wide janitorial services was approved; and the City Manager was authorized to execute the contract amendment on behalf of the City. 8. Special Call. 9. The project plans and specifications for the Traffic Management System Project were approved; and Staff was authorized to solicit a Notice of Inviting Bids for the Project. 10. The project improvements for the Community Development Block Grant (CDBG) Sidewalk and ADA Improvements Project No. 601965-18 located within the area bounded by Fifth Street on the north, Fourth Street on the south, Orange Avenue on the west, and Angeleno Avenue on the east were accepted; and Staff was authorized to file a Notice of Completion. 11. A contract for the re-plastering of child and slide pools at Slauson Park Aquatics Center was awarded to Condor, Inc., in the amount of $207,900 which includes a 10% contingency for potential change orders as needed; and the City Manager was authorized to execute the contract on behalf of the City. 12. The City Manager was authorized to execute a Memorandum of Understanding with Volunteer Center of San Gabriel Valley, on behalf of the City. PAGE THREE – 4/1/2019 13. The “Lunch at the Library” Grant award from the California Library Association was accepted; necessary budget amendments were approved; and the current fiscal year budget was adjusted accordingly. 14. The “Value of Libraries” grant award from the California Public Library Services Board was accepted; necessary budget amendments were approved; and the current fiscal year budget was adjusted accordingly. 15. Staff was authorized to circulate a Request for Proposals (RFP) for administrative and labor compliance professional services for the City of Azusa Community Development Block Grant Program. 16. An expenditure in the amount of $200 to the Gladstone High School Math Club for transportation was approved; and it was found that the community at-large will receive a public benefit from the expenditure of funds for the recommended item. Special Call APPROVAL OF A PARKING LICENSE AGREEMENT BETWEEN FOOTHILL TRANSIT AND THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY FOR THE AZUSA INTERMODAL TRANSIT CENTER LOCATION: 801 N. ALAMEDA AVENUE Director of Public Works/City Engineer responded to questions posed by the Council stating that Foothill Transit owns and has exclusive rights to 202 parking spaces within the Azusa Downtown Parking Structure and are requesting to transfer the 202 parking spaces to Metro; as the City is the owner of the structure, Foothill Transit needs the City’s consent to transfer the spaces. It was the request of the Council to ask Foothill Transit to allocate 25 of the 202 parking spaces to Azusa residents; should Foothill Transit not be agreeable, the item will be brought back to Council. Moved by Mayor Rocha, seconded by Mayor Pro-Tem Alvarez and carried by unanimous vote to approve a Parking License Agreement between Foothill Transit and Metro for the Azusa Intermodal Transit Center, contingent on the allocation of the 25 parking spaces to Azusa residents. AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE AUTHORIZE THE CITY MANAGER TO EXECUTE A TASK ORDER FOR PROFESSIONAL SERVICES TO DEVELOP A PAVEMENT MANAGEMENT SYSTEM Director of Public Works/City Engineer responded to questions posed by the Council stating that the City is required to put together a Pavement Management System Program every three years in order to qualify for Prop C funds; the City receives an allocated amount of Prop C funds each year that can be applied to road repair; the Pavement Management Program will consist of looking at the condition of every City street, performing a geotechnical analysis, and producing a report detailing the condition of roads and when roads should be repaired according to the budget; the City has not been able to make all repairs from prior reports due to a lack of funding; the City does not have the resources or expertise to perform the services in-house; and the City is eligible to receive $700k - $800k each year. Moved by Mayor Pro-Tem Alvarez, seconded by Councilmember Gonzales and carried by unanimous vote to authorize the City Manager to execute a Task Order with TKE Engineering, Inc. for a not-to-exceed fee amount of $108,500.00 to develop a Pavement Management System. AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE SUCCESSOR AGENCY RELATED BUSINESS RESOLUTION AUTHORIZING PAYMENT OF WARRANTS BY THE SUCCESSOR AGENCY DATED FEBRUARY 28, 2019 THROUGH MARCH 27, 2019 Agencymember Gonzales offered Resolution No. 2019-R06 entitled: A RESOLUTION OF THE SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT OF SUCCESSOR AGENCY FUNDS Moved by Agencymember Gonzales seconded by Agencymember Alvarez and carried by unanimous vote of the Agency to adopt Resolution No. 2019-R06. AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: AGENCY MEMBERS: NONE PAGE FOUR – 4/1/2019 CITY MANAGER COMMENTS: City Manager Gonzalez stated that residents that wish to report a shopping cart can call (888) 787-2278; and Staff will provide a report regarding Golden Days at the April 15, 2018 Council Meeting. ADJOURNMENT: The meeting was adjourned by consensus of the City Council. TIME OF ADJOURNMENT: 8:29 P.M. __________________________________________ CITY CLERK NEXT RESOLUTION NO. 2019-10 (City) NEXT ORDINANCE NO. 2019-01 NEXT RESOLUTION NO. 2019-R07 (Former Redevelopment Agency) NEXT MEETINGS: April 15, 2019 and May 6, 2019 PAGE FIVE– 4/1/2019