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HomeMy WebLinkAboutE-1 - Minutes Regular Meeting, December 2, 2019CITY OF AZUSA MINUTES OF THE CITY COUNCIL, THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY, THE PUBLIC FINANCING AUTHORITY REGULAR MEETING MONDAY, DECEMBER 2, 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, MACIAS, ALVAREZ, ROCHA ABSENT: COUNCILMEMBERS: CARRILLO ALSO PRESENT Elected Officials: City Clerk Cornejo. Staff Members: City Manager Gonzalez, City Attorney Martinez, Chief of Police Bertelsen, Director of Administrative Services Johnson, Neighborhood Services Coordinator Quiroz, and Chief Deputy City Clerk Garcia. PUBLIC COMMENT None given. CLOSED SESSION The City Council recessed to closed session at 6:31 P.M. to discuss the following: 1.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Pursuant to California Government Code, Section 54956.9(d)(1). Case Name: Jose Jesus Juarez v. City of Azusa; United States District Court Case No. 2:16-cv-07498-VAP-GJS REGULAR SESSION Mayor Rocha called the meeting to order at 7:30 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 Martinez, Chief of Police Bertelsen, Director of Administrative Services Johnson, Director of Economic and Community Development Marquez, Director of Community Resources Carpenter, Director of Information Technology and Library Services Graf, Director of Utilities Robledo, Interim Director of Public Works/City Engineer Delgadillo, Planning Manager Munoz, Neighborhood Services Coordinator Quiroz, and Chief Deputy City Clerk Garcia. The Pledge of Allegiance was led by Ms. Audrey Lohr. The invocation was given by Bishop Jim Strong, Church of Jesus Christ of Latter-Day Saints. CLOSED SESSION REPORT The City Council reconvened at 7:30 P.M.; City Attorney Martinez announced the following regarding Closed Session: Item 1 – Councilmember Carrillo was not present, City Council heard a presentation regarding the status of the case, no reportable action. CONSENT ITEM E-1 APPROVED CITY COUNCIL 12/16/2019 PUBLIC COMMENT Mr. Michael Bires, former City of Azusa Police Officer, thanked the Council, Chief of Police, and Community for providing him the opportunity to serve; and reflected on his career. Mr. Humberto Ruiz requested Mayor Rocha’s attendance at a Meet the Mayor event on December 4. REPORTS, UPDATES AND ANNOUNCEMENTS FROM STAFF/COUNCIL 1. Update on the Mix-Use project on the corner of Foothill Blvd. and Azusa Ave “The Orchard”. City Manager Gonzalez provided an update on The Orchard stating that is currently under construction; utility lines are being installed and the excavation process has begun; and the Laemmle Theater will not be sold and will remain the anchor tenant. 2. Citywide Modifications to Street Sweeping Hours (Oral Report). City Manager Gonzalez announced that Mr. Robert Delgadillo was appointed as the Director of Public Works/City Engineer. Director of Public Works/City Engineer Delgadillo provided information regarding the modifications made to citywide street sweeping hours; a reduced street sweeping time window will be implemented in February; and changes will be announced in January. Mayor Pro-Tem Alvarez stated that he hoped everyone had a great Thanksgiving; thanked Staff for the modified street sweeping schedule; and requested a water update. Councilmember Macias stated that he hoped everyone had a great Thanksgiving; expressed his happiness that the Block 36 project is moving forward and excavation has begun; and inquired about whether the trash can on Alameda Ave. near the construction site be moved to another location due to overflow. City Manager Gonzalez provided information regarding the excavation at the Block 36 construction site; and stated that the trash can, which belongs to Bank of America, was relocated to that area due to the construction, Staff with work with them to ensure that it is locked when the business is closed. Councilmember Gonzales hoped that everyone enjoyed their Thanksgiving holiday; and thanked Director of Public Works/City Engineer Delgadillo for coordinating the hanging of Christmas decorations on Azusa Avenue and also thanked him for extending the Block 37 parking lot. Councilmember Carrillo congratulated Public Works/City Engineer Delgadillo on his appointment; and wished everyone a Happy Holiday Season. Mayor Rocha announced that the meeting would be adjourned in memory of Mr. Gary Donald Solem, Lifelong Azusa Resident. He announced the following events: December 7-8 – Free yard sales, December 8 – Holiday boutique and Christmas tree lighting, December 12 – 13th Annual Food and Toy Drive at the Eagles Lodge, December 15 – Breakfast with Santa at Memorial Park; requested that Staff provide information regarding the Winter Shelter Program to the public which runs from December 1 – March 17; and thanked everyone for the donations made to the service men and women. SCHEDULED ITEMS ADOPTION OF AN URGENCY ORDINANCE AMENDING SECTION 88.42.190 OF THE AZUSA MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA Planning Manager Munoz presented the Staff Report stating the proposed Urgency Ordinance is a direct result of recently passed Housing Bills and the California housing crisis; the Urgency Ordinance changes accessory dwelling unit (ADU) laws which now allows ADUs and Junior ADUs to be put on both single family and multifamily lots; in order to keep local control, the Urgency Ordinance must be adopted by January 1, 2020; there are also requirements that ADUs and Junior ADUs are approved by building permit; Staff is working on an ADU Code Amendment which will be taken to the Planning Commission for approval in January. In response to questions posed by the Council, he stated that the process for garage conversions would be more streamlined with the applicant able to begin with the building permit process; and all ADUs and Junior ADUs are required to have bathrooms, kitchens, and its own exit. PAGE TWO – 12/2/2019 Councilmember Gonzales offered Urgency Ordinance No. 2019-04 entitled: AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING CHAPTER 88.42.190 OF THE CITY OF AZUSA MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA Moved by Councilmember Gonzales, seconded by Councilmember Alvarez and carried by unanimous vote of the Council to adopt Urgency Ordinance No. 2019-04 amending Section 88.42.190 of the Azusa Municipal Code relating to Accessory Dwelling Units and Junior Accessory Dwelling Units and determining the ordinance to be exempt from CEQA. AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE FOLLOW-UP TO FISCAL SUSTAINABILITY ASSESSMENT – DISCUSS STABILIZATION STRATEGIES FOR LONG-TERM PENSION AND OPEB LIABILITIES. Director of Administrative Services Johnson provided a brief background of the General Fund Budget and the Fiscal Sustainability Assessment. She presented an overview of the City’s pension liabilities stating that the City contracts with CalPERS for pension benefits; projections show a 50% increase to pension costs in the next 5 years; CalPERS made the following changes to address the eroded pension fund: approving an amortization and smoothing policy to pay for gains and losses over a 30- year period, lowering the rate of return assumptions from 7.5% - 7%; cost mitigation efforts include: Pension Reformed Act of 2013 (PEPRA) in order to lower benefits, City implemented lowered benefit tier for Classic Safety members in 2011, and bargained employee cost sharing for all members; the City has $80.6 million in unfunded liability; options for addressing the Unfunded Accrued Liability (UAL) include: Wait and see if PERS makes any adjustments, Get out of CalPERS which preliminary estimates show could cost $200 million, Negotiate additional concessions with City bargaining groups, Make pre-payments to CalPERS, Establish a pension trust account, and Issue Pension Obligation Bonds to refinance UAL debt. She presented an overview of Other Post-employment Liability (OPEB) stating that the City has a $48.5 million OPEB as of 6/30/2019 for lifetime medical benefits offered after retirement which is a 18% increase since last year; the City has a “pay-go” system for OPEB in which the City budgets and pays costs annually as needed, costs have risen 60% over the past 5 years; to mitigate cost impacts the City bargained a Health Retirement Account (HRA) for new hires in lieu-of lifetime medical for Executive and 6 of 7 bargaining groups; and options for funding the rising OPEB costs include: establishing a trust account, and setting aside funds from savings received from issuing Pension Obligation Bonds (POB). Mr. Michael Busch, Urban Futures Inc., presented pension management strategies stating that much of the City’s UAL growth comes from CalPERS policy changes; provided an overview of UAL and Amortization Schedule; gave a summary of key terms in GFOA’s POB Advisory; POBs could result in $38 million interest cost savings; all options with the exception of POBs would require the City to pay more out of the General Fund or Reserves; a hypothetical recession scenario and POB savings was presented; and annual reductions in pension costs would help the City mitigate future increases in OPEB costs. In response to questions posed by the Council, Director of Administrative Services Johnson stated that Staff is recommending that $81.5 million, at most, be issued for the bonds; Staff can return to Council once they are ready to move forward in order to get authorization for the issuance and discuss the structure; $10 million is allocated to the Enterprise Fund portion of the liability; an analysis will be conducted regarding the inclusion of the Enterprise Funds; and the debt-service ratio for the Enterprise Fund is a consideration regarding the inclusion. City Manager Gonzalez added that approval of the item will authorize Staff to begin the validation proceedings and it becomes an enforceable obligation; Staff is anticipating an annual savings; the plan is to use the savings to begin to fund the OPEB liability; Staff is examining ways to increase revenues and decrease costs; and this is a plan to put the City in a better financial position. Moved by Councilmember Gonzales, seconded by Councilmember Macias and carried by unanimous vote of the Council to authorize the City Manager to commence Judicial Validation Proceedings related to the Sale of Pension Obligation Bonds; authorize Urban Future, Inc. to serve as municipal advisor to the City; authorize BB&K to serve as Bond & Disclosure Counsel to the City and to manage the validation proceedings; authorize Staff to informally solicit proposals for an Underwriter for the Bonds; and direct Staff to return to Council with a written policy relating to managing pension and OPEB debt. AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE PAGE THREE – 12/2/2019 CONSENT CALENDAR: Moved by Councilmember Gonzales, seconded by Councilmember Carrillo and carried by unanimous vote of the Council, to approve Consent Calendar Items E-1 to E-9. AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE 1. The minutes of the Regular Meeting of November 18, 2019 were approved as written. 2. Resolution No. 2019-C61 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: New Appointment: G. Carlos Separation/Retirements: M. Bires. 4. A grant award from City of Hope for the Chronic Disease Self-Management Program covering the 2019-20 licensing fee and $1,000 towards six (6) Evidence-Based Health Program Workshops; and authorize the City Manager to sign the Grant Agreement; and approve necessary budget amendment and adjust the current fiscal year budget accordingly. 5. The Second Amendment to the Fleet Maintenance Services Agreement between the City of Azusa and Preventive Mobile for fleet maintenance services was approved; and authorize the City Manager to execute an amendment to the contract on behalf of the City. 6. All bids for the Community Development Block Grant (CDBG) Sidewalk and ADA Improvement Project No. 602093-19 located within the area bounded by Hanks Street on the north, First Street on the south, Pasadena Avenue on the west, and Cerritos Avenue on the east, were rejected. 7. A Memorandum of Understanding with the Cities of Duarte, Glendora, West Covina and Covina to share housing navigators was approved; the City Manager was authorized to execute the Memorandum of Understanding for the ESGV Co-Hort and related documents on behalf of the City. 8. Formal bidding was waived per Purchasing Ordinance Section 2-520(b.2) Sole Source Purchases; the agreement with Union Station Homeless Services was approved in the not-to-exceed amount of $39,000; the City Manager was authorized to sign the agreement on behalf of the City. 9. Resolution No. 2019-C62 was adopted and entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING A TIME OF EXTENSION OF AMORTIZATION OF A NON-CONFORMING USE FOR EXPRESS TIME & AUTO SERVICE LOCATED AT 633 N. SAN GABRIEL AVENUE UNTIL JANUARY 2023 SUCCESSOR AGENCY RELATED BUSINESS RESOLUTION AUTHORIZING PAYMENT OF WARRANTS BY THE SUCCESSOR AGENCY DATED NOVEMBER 14, 2019 THROUGH NOVEMBER 26, 2019 Agencymember Gonzales offered Resolution No. 2019-R17 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 Alvarez seconded by Agencymember Macias and carried by the following vote of the Agency to adopt Resolution No. 2019-R17. AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA NOES: AGENCY MEMBERS: NONE PAGE FOUR – 12/2/2019 ADJOURNMENT: The meeting was adjourned by consensus of the City Council. TIME OF ADJOURNMENT: 8:55 P.M. __________________________________________ CITY CLERK NEXT RESOLUTION NO. 2019-63 (City) NEXT ORDINANCE NO. 2019-05 NEXT RESOLUTION NO. 2019-R18 (Former Redevelopment Agency) NEXT MEETINGS: December 16, 2019 and January 6, 2020. PAGE FIVE – 12/2/2019