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11-27-1972 - Regular Meeting - MinutesMINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL CITY OF WEST COVINA, CALIFORNIA NOVEMBER 27, 1972. The regular meeting of the City Council was called to order at 7:32 P.M., in the West Covina Council.Chambers by Mayor Robert Young The Pledge of Allegiance was given. The Reverend Eugene Combs of St. Martha's Episcopal Church gave the invocation. ROLL CALL Present: .Mayor Young; Councilmen: Shearer, Nichols, Lloyd, Chappell Others Present: George Aiassa, City Manager George Wakefield, City Attorney Lela Preston, City Clerk George Zimmerman, Public Service Director Bert Yamasaki, Acting Planning Director John Lippitt, Acting City Engineer Richard Munsell, Planning Director Gary Duvall, Administrative Assistant Jeff Butzlaff, Administrative Analyst, Jr., Leonard Eliot, Controller Jeff Schenkel, Staff Reporter SGVD Tribune Claudia Luther, Staff Reporter - L.A. Times PRE SENTAT'IONS RESOLUTION OF COMMENDA- Mayor Young: At this time we have TION TO "DOC" 500TER two presentations of commendation. One to our retiring Recreation and Parks Commissioner, "Doc" Sooter and the other to our, recently departed Assistant City Manager, Bob Fast. I have asked Councilman Jim Lloyd to join me in making these presentations at the podium._ And because of some of "Doc°s" and Jim L.l.oyd°'s' special interests in common I have asked Jim to make the pres'entat ion to you. C'oulnlc' lman. Lloyd "Doc" your fame gdeth before you and certainly the fine ball clubse clear back to the 40 I s� is a test of your skill in the area of recreati6n avid good will with youth. It is a real pleasure to say °'thanks°'' for the ser-""vice you have given to the City of West Covina by away of kesolutiaft No. 4599 which says "thanks" along with the °VJhe�reas °'s' a-nid all the rest of it. It is "signed by all of the C°ou�ncil,, iidicat ng their pleasure ih making this presen.tatibn to you torn.ight., Congratulations! i"`Vo°c-°" Soo'ter3 I do appreciate this very much and I appreciate the opportunity of having served on the Coanmissibh. Thank you. s.:'RESO'LUTI60- OF COMMENDA- Mayor Young : Mt,i Fast., will you Trim TO) ROBERT FAST' step forward? I y fea�lly don't know wheat I can say that would be adequate in making this award Bob, hIcEP`, givenll U9 some 12 - 13 years of his services;,. counting the • year--"87 of on the Planning Gorhmissioh, then as Public Service D1iLre'�ct(it- alndl then Assistant City Manager. We all. know of ih;is fine con1tr%bu1f±(5 s, to' the Citye his steadying hand that he laid on so mam,y problems thr-"o ighout the years. Bob is now City Manager of <a sma1111 town in Cfti-Ed Valley. Some of my finest people are over tYiere andl I wonl"t expafid on that; I know you aijj doihng a good Jbb andt yowl acre' §df_ely nn'issed hefe - Bob. It is a .pleasure to ipresbht t`h-is toy yaul from the City Council. (ihtr"oduced Mrs: 1Fast-, daughter,, an-6 son'. )- Do• you Wddt to make a speech Bob? CITY COUNCIL PRESENTATIONS ® Cont°do Page Two 11/27/72 Mr. Fast: No, I don't want to make a speech, but I want to defend those stalwart citizens that you cast aspersions on m they apply towards the gas tax ad valorem and also towards revenue sharing and that is not all bad. And incidentally, I think we will be .Leaving before • 8 o'clock ® I am not used to having public hearings where the vote goes anything but 5®0 and I wouldn't want to get out of the habit. Thank you. YOUTH ADVISORY Mayor Young; I did make a promise to COMMISSION several young people recently APPOINTMENTS when the City Council met in a personnel session with the applicant-6 and they were interviewed for the Youth Advisory Commission that we would get it rolling. We had dropped the ball a bit on that Commission's activities but we now have a new Commission appointed and it will commence its work immediately and I would like to introduce our new Commissioners at this time. The first one is a holdover Commissioner from last year - Ken Stokes from Nogales High School. Mayor Pro tem Lloyd has suggested that you come right down to the podium and as long as you are all here we can have the City Clerk swear you in. Names Abbott of Covina High School; Lisa Kristal of Test Covina High School -,-David Abramis of West Covina High School; and Lynn Giles of Edgewood High School. The alternates are: Debbie Hankins of Nogales High, School; Brenda Thompson of West, Covina High School (and she is absent tonight); Laura Weber of West Covina High School; Leslie Hansen of West Covina High School; and Renee Futter of Edgewood High School. One thing we did do is notify these young people in advance so they are not here shocked or disappointed. I am sure I speak for the entire City Council in saying it is too bad we couldn't have ten Commissioners, because these are really all very wonderful young people. At this time I will ask the City Clerk to swear in the Commissioners. (Sworn in by the City Clerk.) Mayor Young: When is the first meeting of this Commission? Gary Duvall.- The 19th of December in the Council Chamr,bers o APPROVAL OF MINUTES OCTOBER 10, 1972 Motion by Councilman Lloyd, seconded by OCTOBER 24, 1972 Councilman Chappell to approve minutes. Motion carried. CONSENT CALENDAR :Mayor Young explained the procedure of the Consent Calendar items and asked if there were any comments on any of the following :items: 1. WRITTEN COMMUNICATIONS a) AMERICAN MOB.ILEHOME CORPORATION Sb) PETITION FOR CON- STRUCTION OF SANITARY SEWERS c) JANET, PIPER d) J. GREGORY LAWLOR ENTERPRISES Letter of protest re Resolution No. 4650, Business Improvement Tax Levy. (Refers to Hearing Items B-1) Lark Hill Drive (Seven signatures) (Refer to staff to meet with property owners) Re funding df the West Covina Orchestra. (Receive and file) (Refer to dis uss� -o� on pages � an5) Protesting rate increase for apartment house trash, pick up by West Covina Disposal Company. (Receive and refer to Ci.t.y Attorney and. West Covina Dis- posal) (Refer ' , discussion on Page 2) 2 • 7 LJ • CITY COUNCIL CONSENT CALENDAR ® Cont°d. Page Three 11/27/72 e) MT. SAN ANTONIO Requesting permission to sell candy ,in COUNCIL CAMP FIRE City from January 19 through February GIRLS 5tt, 1973. (Approved in prior years-, recommend approval.) f) PEACE ACTION COUNCIL Appeal to Mayor and City Council members to support their stand against the policies of the present administram t°on re Vietnam. (Policy matter m Cou c,il) (f.efer to discussion on. Pages 3 and 4I g) WICKES FURNITURE Requesting a continuance to December 11, 1972 meeting re Variance No. 688. (Refer to Hearing Item B-2) h) AGAPE FORCE Request permission to solicit MINISTRIES November 28 through December 3.1, 1972 for donations, and also .request waiver of Chairty Solicitation License fee. (Approve subject to staff review) 2. PLANNING COMMISSION SUMMARY OF ACTION November 15, 1972. (Receive and file) 3. TRAFFIC COMMITTEE MINUTES November 21, 1972. (Receive and file) 4. A.B.C. APPLICATIONS a) Jerry Nelson Dayton 15059 Granada Avenue La Mirada Chester Roy Witt 13317 Markdale Avenue Norwalk 5. CITY TREASURER'S REPORT Chief of Police .recommends NO PROTEST. dba The Islander 2233 East Garvey Avenue ) ) ) Month of October, 19720 (Receive and file) Councilman Nichols: Mr. Mayor, a comment regarding Item d under Written Communications referring to the proposed rate .increase for apartment house trash pickup and I note the recommendation is to refer t.o the City Attorney, etc. As we have indicated on several occasions in the past, I think this .is another instance of a referral to the City Attorney that is not needed© The decision to raise the rates was a decision of the City Council and the response -to this communication should properly come from that legislative body. I would suggest that this item be switched from the. Co,76,%e t Calendar to the Council re•,sponsi,bility, and ' that the Mayor be directed to address a letter to the writer explaining the basis in history involving this rate .increase. That is a motion, Mr. Mayor. Councilman Lloyd Mayor 'Young Councilman Chappell: the President of the matters of Vietnam. Mayor Young: Second I 'think your point is very well taken and I would be very happy to work with such a letter with the help of the City Manager, Motion carried. Item F - says it is a policy matter of Council. I would move, if we are going to do anything, that we voice our support of United States and his actions regarding the I feel personally supportive of your position Councilman Chappell and. would 3 N CITY COUNCIL Page Four CONSENT CALENDAR - Cont°da 11/27/72 suggest no action by the City Council on this item. Councilman Chappell: There was no second, Mr. Mayor, Councilman Lloyd seconded the motion. Councilman Nichols: What was the motion? Councilman Lloyd, Allowing the President to continue to handle foreign policy. Mayor Young: I am going to vote against that motion. I don't see this as a matter of Council action one way or the other - we have our personal views. Your motion is in essence`.an endorsement by this Council of the present adminiAratioA policies. While I feel personally supportive I don't feel like a Council vote on it. Councilman Nichols: Mayor, I misunderstood o I thought when I asked what the gist of the motion was that it was the Council should permit the President to continue to administer foreign policy. If that wasn't the motion m wel.l, I think what it says in .fact : is that the Council recognizes the foreign policy is not in its -_purvi.e-w o It does not say that we Subscribe to that policy, it says simply that we believe it is the President's role and the National Government's role to establish foreign policy and we should not be playing a political .role in that. That is my own feeling. I certainly wouldn't want to imply a political viewpoint by that, so I am amenable - Mayor Young: Is that the intent of your motion, Councilman Chappell? Councilman. Chappell: Yes, Mr. Mayor® Motion carried. Councilman Shearer: Item 1 (c) does not carry an action require - went, but I would like to make a comment. This letter points out what I believe is a misunderstanding on -the part of a number of people. It is my recollection that the City Council, as yet, has made no decision with regard to the future funding of the West Covina Symphony Orchestra and based on some comments made one might believe that less than a favorable reaction might come from the Council at some paint in the future. But at this point in time, contrary to the statement ,publicized in the papery attributed th .the<;Dir;ector -of=--- the.- West...:C'oirina..City-`C°o.uncil has not cut off the funds :for the infest: Covina Symphony ®rchestrao Incidentally, two members of the Council were conspicuous by their presence at the orchestra presentation last night; but I do want to correct what appears to be a misunnl -;tauding that the West Covina Council, has taken action, which we have not done. Councilman Nichols.- Mr. Mayor, along those lines as long as we are pursuing the matter - I have expressed a concern. in 'the past and I want to refresh staff with that, concern. Where we .receive a recommenda- tion from staff on a particular item to "receive and file" I trust that does not imply that there is no response to the individual who has written a letter? Mr. Aiassa.- If Council has taken the action of "receive and file" )we will, so notify the people Councilman Nichols.- When anyone addresses their government, whether it be to staff or the City Council 4 } r CITY COUNCIL Page Five CONSENT CALENDAR m Cont°do 11/27/72 there should be some appropriate recognition of 'that communication. I read, this one and I agree it does not compel an answer in that sense but I do think all communications do compel an acknowledge- ment. So even when they come up to "receive and file" I hope that an appropriate staff member does acknowledge that we have received this communication. (Mr. Aiassa stated they are acknowledged.) Motion by Councilman Lloyd, seconded by Councilman Chappell to approve Consent Calendar items with the exception of those items indicated. Motion carried on roll call vote as follows: AYES: Councilmen: Shearer, Nichols, Lloyd, Chappell, Young NOES: None ABSENT: Done GENERAL AGENDA ITEMS PUBLIC WORKS SPm68010, CONDEMNATION LOCATION: California off -ramp. ACTION o CITY OF WEST (Council reviewed Engineer's report) COVINA VS. GUARANTEE SAVINGS & LOAN ASSOC., Councilman Shearer: Mr. Mayor, a question of Mr. Wakefield. What did we finally pay for this property? Mr. Wakefield: $250500. Councilman Shearer: Do you recall what the original request was on the part of the owner? How much they wanted which, resulted in this condemnation? Mr. Wakefield., They originally requested. $35,000 as the value of the property plus $14,000 in severance damages. Prior to the time of trial they had reduced their demand for compensation to $26,000 and had increased their request for severance damages to $25,000 or a total of $5.1,000. Councilman Shearer: So by this condemnation action even including the bill before us tonight the City came up roughly a little over $17,000 to -the good. Mro Wakefield: Yes sir. Actually before the trial was commenced we offered to settle the matter for $310000, which they rejected. Motion by Councilman Chappell, seconded by Mayor Young, to approve payment of $50781, 30 to the Law Offices of Burke, Williams and Sorensen .for professional services rendered in the City of West Covina vs. Guarantee Savings and Loan Association of Whittier, et al. Motion carried on roll call vote as follows. AYES: Councilmen: Shearer, Nichols, Lloyd, Chappell, Young NOES: None ABSENT., None TRANSFER OF STORM DRAIN TO LOS ANGELES COUNTY 1F'LOOD CONTROL DISTRICT MISC. TRANSFER DRAIN 2.19 LOCATION: Workman Avenue from Lark Ellen Avenue easterly to Homerest Avenue. (Council reviewed Engineer's report) RESOLUTION NO. 4657 The City attorney presented: ADOPTED "A RESOLUTION OF THE CITY COUNCIL OF TFIE CITY OF WEST COVINA, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT OF THE STATE OF CALIFORNIA TO ACCEPT ON BEHALF OF SAID DISTRICT A TRANSFER AND CON- 5 f, r CITY COUNCIL PUBLIC WKS.: Res. #4657 e Cont°d. Page Six 11/27/72 VEYANCE OF STORM DRAIN IMPROVEMENTS AND DRAINAGE SYSTEM KNOWN AS MISCELLANEOUS TRANSFER DRAIN NO. 119, IN THE CITY OF WEST COVINA FOR FUTURE OPERATION, MAINTENANCE, REPAIR AND IMPROVEMENT, AND AUTHORIZING THE TRANSFER AND CONVEYANCE THEREOF." Motion by Councilman Chappell, seconded by Councilman Shearer and carried, to waive further reading of the body of said Resolution. Motion by Councilman Chappell, seconded by Councilman Lloyd to adopt said Resolution. Motion carried on roll call vote as follows: AYES: Councilmen: Shearer, Nichols, Lloyd, Chappell, Young NOES: None ABSENT: None RESOLUTION NO. 4658 The City Attorney presented: ADOPTED "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA VACATING AND ABANDONING A PORTION OF A STREET WHICH HAS BEEN SUPERSEDED BY RELOCATION (Monte Verde Drive)." Mr. Wakefield: The vacation of this street is pursuant to the Freeway Agreement between the State of California and the City of West Covina. The street, a portion of it, is now in the process of being relocated and the street will end up in the cul-de-sac. This simply vacates and abandons that portion which is within the freeway right-of-way and the off -ramp to the freeway. Motion by Councilman Chappell, seconded by Councilman Lloyd and carried to waive full reading of the body of said Resolution. Motion by Councilman. Lloyd, seconded by Councilman Shearer to adopt said Resolution. Motion carried on roll call vote as follows: AYES,. Councilmen: Shearer, Nichols, Lloyd, Chappell, Young NOES: None ABSENT: None FRONTAGE ROAD Mayor Young: This is an informational CONSTRUCTION SCHEDULE report from staff. Are IN COMMERCIAL AREAS there any questions? Motion by Councilman Shearer, seconded by Councilman Lloyd and carried, to receive and file. HEARINGS PROPOSED FORMATION OF LOCATION: Citywide B.'BUSINESS IMPROVEMENT Hearing of protests and/or receiving AREA.°° evidence for or against the proposed action set for Hearing on November 13, 1972 by Resolution No. 4650 adopted October 24, 1972. Held over to this date with nearing open. Mayor Young: This is an item that was commenced at -the 0 last Council meeting, It will be recalled there was extensive testimony at that meet- ing and extensive Council discussion. I think we spent a little better than two hours on that item. The public hearing is still open. Is there an additional staff report, Mr. City Manager? Mr. Aiassa: No, Mr. Mayor. Councilman Shearer: Could 'we be brought up to date with regard to the tabulation of protests? e CITY COUNCIL Page Seven HEARINGS. "Business Improvement Area" 11/27/72 Mayor Young: There was one in our packet tonight. Madam City Clerk m may we have the tabula- tion? We will go on while the City Clerk tabulates the amount of protests. We had considerable testimony. I think there would be no particular purpose in repeating a great deal of that testimony, if you could keep that in mind. Arguments were forcefully presented on all sides. The public hearing is open, and I would therefore ask if there is additional testimony in favor of the proposed formation of the Business Improvement Area? IN FAVOR Mr. Oldenberg (Previously sworn in) President Mr. Mayor and members of the City Council, two Chamber of Commerce weeks ago tonight)I and a number of my colleagues appeared before you in favor of the adoption of this ordinance. Tonight, I alone will represent the Chamber of Commerce, not because we couldn't present any number of responsible businessmen before you but because we have said how we feel and we don't want to be redundant. Nevertheless, over the past couple of weeks we did a considerable amount of talking about our position in light of some of y®u.r con- cerns and those of the opponents. In conclusion our position has not changed one iota. We think implementation of this ordinance pursuant to the Parking and Business :Improvement Law of 1965 is a darn good one and the benefits are significant. What.I would like to do is recap a couple of those for you. First, the revenues for economic development and business promotional activities will come from the businesses that stand to realize the benefits, not the citizenry which is already carrying a sizeable burden. Second, the Chamber of Commerce as administrator, at least for this first year, will be able to free its pool of businessmen and professional volunteers to do more meaningful community objectives and tof course, those do include increasing sales taxes to the City. Third, the program has broad economic ramifications. The benefits are expected to accrue to the entire business community, not just the retail community aloneo Since this issue came to your attention you have voiced concerns as have those in opposition m well I don't .intend to debate them as some are philosophical and others are not relevant to the question before you tonight, but I think stating a few facts might help clear the air and permit then your full support. First, as it is proposed, the Executive Committee of the Chamber of Commerce will serve as administrators under a contract. That means you will have to agree with our recommendations and approve the programs. We will serve at your pleasure, until you decide otherwise, or until, anOther,- agency can do a better job. Secondly, f(o)rced membership has never been implied nor is intended. Third, the Chamber°s membership fees will still continue, at least for the non -.Licensee fee paying members. • Other concerns are questions of contract nature and may certainly be important but not germane to the issue we are facing here tonight. Gentlemen, we as concerned businessmen in the community feel we have an opportunity to implement a tool here tonight which is directed toward improving the .marriage wey.already have going. Our aims in the past have been similar and certainly our aims in the future will continue to be similar. What we will be doing through the ordinance is providing a little more legality,, to our bonds by tying in funds from businesses for in fact 7 CITY COUNCIL Page Eight HEARINGS: "Business Improvement Area" 11/27/72 business purposes. Now backing us in the support of this program are many businessmen, both large and small, a number of which are here tonight. To lend additional support to our position with regards to this subject I would like to present to you an endorsement recommendation by'a number of businesses within our community.' We have obtained a total of 124 plus a few more that came in tonight, businesses stating'in factydirect support. These businesses we have • ascertained have an impact of over $13,000 of the business license fees generated. And if you would like II can supply the list to you. Mayor Young: How much was the amount? Mr. Oldenberg: I have 124 signatures representing a total of $13,367 plus a few more that were received late today. Speaking then, for them, I again ask you to adopt the ordinance and let us get on with our work and our programs which -arb.designed toward earning money for this community and certainly making this community a much better community .in which to live and work. Thank you. (Presented list to Council.) Mayor Young: Is there anybody else that desires to speak in favor? Is there anyone that wishes to testify further in opposition? Dr® Snyder (Previously sworn in) West Covina If I am repetitive at all, it is only to clarify some points for the record. My opposition and those of other people who object with me is more of a matter of philosophy rather than a matter of dollars and cents. NowI am not sure that applies to all business licensees. As I stated before/the purpose of the business license is: 1 G regulatory; 2 ® to raise that extra money for the General Fund that businesses generate which require extra police, fire and general services of the City. When the proponents state the benefits will accrue to the entire business community I fail to,get the logic of that statement. All business licensees are not involved in retail trade and the :stated purpose of this is to incredse retail trade whichrof,.course) will be beneficial to the City as a whole as well as to retail trade, but as a professional man it is against the ethics of the medical society to engage in promotion of their own trade and,in fact,you can be dropped from the medical society if your name is listed anywhere in any directory other than the yellow pages of the phone book. So I fail to see how this can be beneficial to us only except in the aspect of the City as a whole and our ,interest in the City as a whole I also want to state I am not .in opposition to your raising the business license fees providing you maintain control of those and where they go, if it is necessary. I would like to point out to you, were you to raise the business license fees and this is as I read it, not so much a business license as it is a surtax, then if you found it necessary later to come back and raise your basic business licenses for the purposes for which the business license exists you would find it very difficult to raise it when you have this extra tax added on top of the business license and when you have earmarked these funds for specific purposes and they cannot be used in the General Fund, That seems to me that alone should make you think before you promise these funds to the. Chamber of Commerce. • Secondly, the Chamber of Commerce has no plan as far as I know, to promote retail trade in Nest Covina other than their normal operations to promote retail trade in the City of West Covina, Of course, I realize these funds do not necessarily have to go to the Chamber of Commerce, they can go 'to som_othdr.-pVamotional or An.1ZatiQn and we have gone into the philosophy of supporting a free enterprise such as the Chamber of Commerce, so I don't need to repeat those. 8 0 CITY COUNCIL Page Nine HEARINGS: 00Business Improvement Area" 11/27/72 Failing all the logic of these arguments which I think are overriding logic, there is a group that is sending out a mailing asking for additional written protests with dollar amount. Since I am sure of the 2100 people that received this notice previously that many of them did not realize that a written protest of over 50/ would suffice to stop this ® and you will say that all they had to do is read it and they would know this m well most of us do not read past the first paragraph when mimeographed or it is an act to raise taxes, there is a group sending out a mailing asking for written protests on a form and the form was not provided in the first mailing and we would like to ask for a month°s extension -to see how much protests we can obtain this way. However, I shouldn't think that would be necessary, I would 'think the very logic of our argument in opposition would be sufficient. I would also like to state here I have nothing against the Chamber of Commerce. I have been a member up to this year. I am not a member this year. I wholeheartedly agree with the aims of the Chamber, however, I think they are best carried out and best served by voluntary contributions and the support of the City on a contractual_ basis rather than a tax supported subsidy. Thank you. Mr. Brooks, Jr.: (Previously sworn in) West Covina I will read my very brief statement which I have furnished to the members of Council. I remain unalterably opposed to the enactment of the proposed Resolution No. 4650 providing for an increase in the Business License Tax in the City of West Covina. This matter was heard on November 130 1972 and continued until November 27, 1972. It was my understanding that the proposed resolution would be amended. If it was a misunderstanding perhaps it was on my part. I received no copies of such amendment or amendments from any source. I would certainly reiterate what Dro Snyder said, that I have nothing against the Chamber of Commerce whatever, I think it is a fine organization but I do not think that a private agency should be publicly financed.I think that is all I have to say, gentlemen. Wm. coo Beem (Sworn in by the City Clerk) 549 N. Foxdale I did not testify at the last hearing because `Nest Covina I was in San Diego. I won't keep you gentlemen but a moment but I would like to put my protest on the minutes right now. I protest from two basic principles. First of al1JI think it is outrageous to say the least that the merchant is taking the brunt again and again. The small merchant constantly in this -City is taking the shaft and I am sick of it. Secondly, the Chamber of Commerce, and I have belonged to that organization in this City for a number of years% I retired from it for approximately a year and half or two and they came to me and asked me to come back and be on the Board of Directors, which I was for almost 3 years and at that time and since that time I have retired from the Chamber, which was, about two years ago, and I will absolutely have nothing to do with the Chamber of Commerce again. I will say that to anyone that would like to argue or debate with me on the merits of the Chamber. They do not stand up in my eyes or the eyes of many merchants in this City that have resigned from the Chamber 'because they are illfitted for the,jobo They have not done the job they anticipated doing, that they romised the City to do, that they have taken the money from the Ci y to do. I protest the idea of my money, raised, by my business license , which is really a minor amount in monies, but the principle is there, for that money to go to the Chamber mf Commerce for anything. As far as I see they have not stood up for what they wanted to do or intended to do. They never seem to make any advancements in advertising the City as a merchant would see the advertising to the benefit of the merchants. • 0 CITY COUNCIL Page Ten HEARINGS: B°Business Improvement Area" 11/27/72 There is no doubt that -these are a few that have consistently benefited from the Chamber of Commerce°s efforts in luncheons, dinners and such, and I can name those times, believe me, but I see no sense in getting into the dirty wash because I am sick and tired of listening to this whole thing ® that the Chamber is going to do great things for usd I think the City would be very wise if the City needs the money to come out and say it and that is the way you intend to get it m through the merchant, but let's not put it off and have the Chamber of Commerce do it. Now if their money has gone from approximately $8,000 a few years ago to $40,000 today, I can't see the advertising from -the Chamber of Commerce has come to the City in that amount of revenue. At the moment it is going to have to be proven to me and many merchants before they would consider being a part of the Chamber of Commerce even if forced into it, as it seems we will be through this bill. I wholeheartedly oppose the whole thing. Thank you. Robert Fisher (Sworn in by -the City Clerk) 236 S. Leaf Avenue (Advised his license fee is $40.00) West Covina Gentlemen, I believe that I should have special consideration in this tax raise because I only operate.a'...pakt"time business and only have a mailing and telephone business license and I work a full-time job and I do not take in very much revenue. It would be rather disastrous to raise the fee more than it is already because I feel for mailing and telephone use what I get out of it the fee is already too high. I do a very low Volume of business and I think it would be just too high for you to raise it. James E. Stowell (Sworn in by the City Clerk.) Alpine Country At the time I received the notification of the 1629 W. Garvey proposed change I read it as being something West Covina for and by the City and only until I was out of town on a business trip and returned and read the article in the newspaper did I find out the Chamber of Commerce was involved. I just began my business in May and I find out first off the business license fee in the City of West Covina is much higher than those in surrounding communities. I wrote a letter of protest and I felt th4-T.ma.nner in which you should induce new businesses into the City is to give them some sort of relief, especially in -the beginning in order to induce them into the City and by raising the taxes is by no means one way of doing it. Secondly, if the money has to go to the Chamber of Commerce I disagree with this. I retired from the Army five years ago and this is my first business venture and I fail to see where the Chamber of Commerce has helped me..` I Called them one day and. asked them what their motives were and they indicated they tried to get out to see all new businessmen when they join the business community. I have been here seven months and they haven't been ,around or even invited me into their operation,not that I would join, but I fail to see where they have helped me or could even help me. If I need help it is road construction and.fastd Mayor Young: Thank you. Is there any further testimony? THERE BEING NO FURTHER PUBLIC TESTIMONY, NOR REBUTTAL, PUBLIC HEARING CLOSED. COUNCIL DISCUSSION. Mayor Young: I might remind the Council that wektoo� have made a lot of speeches, so if we can avoid being repetitive that would help too. The audience has been highly considerate. Councilman Lloyd: Mr. Mayor, if Mr. Oldenberg would mind coming back, I have a few questions. Mr. Oldenberg, I think I can preface my remarks by saying that you and I had a meeting and we discussed some of the problems ® 10 CITY COUNCIL Page Eleven HEARINGS: "Business Improvement Area" 11/27/72 which were very major on my mind, not the least of which were the gardeners and what we could do to work with them. In the finality of the thing I indicated to you that I was hopeful that the Chamber of Commerce would have some disparity of costs in there whereby a person would not automatically be a member of the Chamber of Commerce --is that correct? Mr. Oldenberg: Yes, that is. Councilman Lloyd: Have you come.up with some such plan? Mr. Oldenberg: I think I pointed out in my statement earlier this evening that it has never been intended and it is not intended that anyone would automatically become a member of the Chamber of Commerce. If you are implying as it relates to some basis on which we make a differentiation between members and nonmembers, we certainly would expect to do so. Any proposal as it relates to possible additional fees or some other basis to make this known would have to come out of Board action. Councilman Lloyd: Have you taken such action? Mr. Oldenberg: No sir, not as of tonight. Councilman Lloyd: Have you decided what your fees will be? Mr. Oldenberg: No sir, that comes after implementation of the proposal tonight via contract and nego- tiations on terms that are favorable to you. Councilman Lloyd: Let us clarify one thing. You currently hold a contract in the amount of $43,000 to pro- vide certain promotional services to the City of West Covina - is that correct? Mr. Oldenberg: Yes sir. Councilman Lloyd: Mr. Aiassa - that $43,000 comes out of which fund? Mr. Aiiassa: The General Fund. Councilman Lloyd: Thank you. Mr. Oldenberg, have you had any discussions whatsoever with your Board as to what you plan to do if you were involved in this business development area? Speaking from the Parking and Business Improvement Area Act of 1965,it says "the statutory purpose of this is to authorize cities to impose a tax within the Parking and Business Improvement Area which is in addition to the general business license tax in the City, if any, and to use such proceeds for the following purposes. -- a) The acquisition and construction of major parking facilities for the benefit of. the area; b) decoration of any public place in the area; c) promotion of public events which are to take place on or in the area; d) furnishing of music in any public place in the area; e) the general promotion of retail trade activities in the area." I believe you have based this on Item e - is that correct? Mr. Oldenberg: Yes sir. Councilman Lloyd: Is there any reason why you left out a - b - c - d? MIRM • • CITY COUNCIL Page Twelve HEARINGS: "Business Improvement Area" 11/27/72 Mr. Oldenberg: The decision that was made was because of the basis by which principally our business community is concerned. As far as the utilization of it under the proposition for improving retail ttade the inference on this is very broad, as I mentioned before, and certainly related again in fact to a contract and this would certainly have to be included with any of the particulars as it relates to the concerns of the Council before the approving of a contract. We certainly feel that some of these other considera- tions would be included in the contract. Councilman Lloyd: I would like to add one more for the benefit of the audience. "Discretion for the Council: The City Council shall have the sole discre- tion of how the revenue derived from the tax would be used within the scope of the businesses, however, the City Council may appoint existing Advisory Boards or Commissions to make recommendations as to its use, or the Council may create a new Advisory Board or. Commission for this purpose." So we are not out of line in selecting in this case if we wish to do business with the Chamber of Commerce. Mr. Wakefield, one of the oppositions expressed is that people are required to both support the Chamber of Commerce and become members m is this a valid objection? Mr. Wakefield: Mr. Mayor and members of Council, certainly the statute, the notice or the proposed draft of the ordinance which is pending before you, relates in no way to membership in the Chamber of Commerce, nor does it relate in anyway to whether or not the Chamber of Commerce shall or shall not charge dues and if so how much those dues shall be. Councilman Lloyd: In addition to that, with the requirements of the laws, must these monies be used exclusively for the promotion of the retail activities of the City? Mr. Wakefield.: Yes sir, the statute and the ordinance both require that the monies be held in trust and the monies be used exclusively for the purpose stated in the ordinance, which is for the promotion of the retail trade activities in the City. Councilman Lloyd: In that case any activity on the part of the Chamber of Commerce which did not involve thJs could notlin anyway use these funds is that correct? Mr. Wakefield: That is correct. Councilman Lloyd: Also we may contract with the Chamber of Commerce as we have done, however, in this case we are contracting with the Chamber°s Advisory Board to perform promotional work in this area o is that correct? In other words we could select any other body or agency such as a public relations agency, be it private or governmental is that correct? Mr. Wakefield: That is true. The ordinance simply designates the Executive Committee of the Chamber of Commerce as the Advisory body to the City Council to recommend the ways and means by which the funds shall be expended and the purposes for which they shall be expended within the limitations of the general requirement for the promotion of retail trade activities within the City. 12 CITY COUNCIL HEARINGS: "Business Improvement Area" Page Thirteen 11/27/72 Councilman Lloyd: Then in the finality of the' thing we can say that in no way does this business license tax have anything to do with membership in the Chamber of Commerce and that a businessman still has the right either to join or not join as he sees fit? In other words he is not changing in anyway his relationship with that organization and they in turn may determine the amount of money they wish to charge someone that is joining m is that correct? Mr. Wakefield: Yes sir. Councilman Shearer: Mr. Mayor, a couple of questions for clarifica- tion. I believe Dr. Snyder mentioned a mailer going out and requesting a continuance of this. Mr. Wakefield, at what point in time does the period of protests cease? Mr. Wakefield: The period of protest ceases when the hearing is closed, and that period of time is. now coming to a close.. Councilman Shearer: If we would receive 50% prior to the final reading of the ordinance that would have no validity in law? Mr. Wakefield. They would have no validity in law, but it is always at the discretion of the City Council to adopt or not adopt an ordinance. Councilman Shearer: If we have a first reading tonight, assuming it is successful, when would the second reading be? Mr. Wakefield: Your next regular meeting, the second Monday in December. Councilman, Shearer; And at that time the Council could, if we voted tonight to adopt, we could go the other way if we received sufficient protests to change one's mind? Mr. Wakefield: That is correct. The Council can always refuse to adopt the ordinance once it has been introduced. Councilman Shearer: Withregard to Mr. Books' statement regarding the amendments m isn't it also correct that the o.rdiance we are considering at the moment subject to any amendments that might be offered from the floor, is the same ordinance we discussed two weeks ago? There have been no amendments by the proponents? Mr. Wakefield: Yes, there have been no changes that I am aware of. • Councilman Nichols: AT the last meeting I raised three basic questions. One, that I felt 'that an ordinance of this type in order 'to show benefit; to ail those who pay business licenses in the ' Ciity should have a significantly broader base than for the promotion of retail trade. I indicated in my belief that the average homeowner in the City of "West Covina who may work in El Segundo will benefit just as much by an increase in .retail trade as the gentleman here tonight who has a small mail order business with a phone and a mailing address, or the gentleman who sells eggs in the southwest Covina and Valinda area. I think that is every bit as valid tonight as it was then. 13 CITY COUNCIL Page Fourteen HEARINGS: "Business Improvement Area" 11/27/72 I think when we levy taxation we must very carefully weigh those elements of benefit versus the taxation. As I stated before I can see nothing wrong with taxing all of the citizens of West Covina to advancing the retail trade of West Covina, therefore I see no sin to use the General Fund monies to advance the • work of the Chamber of Commerce, because allcitizens will benefit when increased revenues to the City are forthcoming. So my first and most fundamental objection is we are attempting to tax one element of the community for what I feel is a much more general benefit and we are doing it on a selective basis/that I don't believe is equitable. 'Some of us raised the issue and some of those in testimony did raise the issue indirectly by saying they felt they should be excluded. Maybe it was the eggman or the gardener or some other group and we left the last meeting with some feeling that over a period of time this might be resolved and some recommendations made that might differentiate in those areas, but that has not occurred. The other point I wanted to make and I made before was that I believe most firmly and I have talked to active members of the Chamber of Commerce who do not feel they should speak up but who agree that.a system which removes a dues structure from the Chamber of Commerce will in the long run prove damaging to the Chamber and perhaps prove its death blow in our community. Finally, I would like to bring up the point that as this matter has evolved it has not served to unify the businessmen in our community behind promotion and in a spirit of support of the Chamber of Commerce but has served to divide more heavily the business community than it has been divided before. So the result will be more negativism and knocking 'than cooperation as a result of this particular role. Finally, we have sat here as a Council body in the last few months because we were compelled to do so and we raised the property tax rates in the City by 20(,4 and that has affected a great many of our businessmen, most of them, if we accept the indirect effect as well as the direct effect, and we have raised the trash rates and that has been most heavily levied against the business community, the apartments and business owners of our City. In recent months we achieved some additional funding. We have come 'here again tonight and we find that the Chamber has no plan to propose, it states well after we authorize this ordinance, after we appoint them as the body to do all these things then they will meet with the City Council and decide these dollars will be spent m which I feel because the nature of the ordinance stipulates- the beneficiary, it is really putting the cart before the horse in every respect. I think when someone as a body or otherise comes before the Council and states levying- a tax and lend it to us to do good for the community that the first thing that is owed to the community and the Council is a pretty careful delineation of just how these additional funds are going to accrue to the benefit of all these individuals who will be taxed° What I would hope the Council would do is let this matter rest a little while, not in limbo but rest actively in consideration of all these additional concerns that have been raised. I would like to see us hold this matter over not indefinitely but to bring it back actively in the Spring when we begin considering the next fiscal year's budget and in the interim hold. the line on this matter, on the tax structure and on the business licenses and if necessary to utilize some of the "revenue sharing funds" to supplement the license loss of that 6 month period, I personally feel it would be a wise use of the money rather than quickly,under what almost amounts to the pressure of things, enter into a decision. that will divide the community, which in my judgment will result in unfair taxation and in the long run will do almost exactly the opposite of what this 14 CITY COUNCIL Page Fifteen HEARINGS: "Business Improvement Area" 11/27/72 body sincerely hopes it would do. Councilman Chappell: Mr. Mayor, I think there are some things we should look at a little more closely. In the past few years we watched the property tax become our largest source of revenue in the City whereas in the past the sales tax played that first place spot. We are in the midst of redevelopment of a large portion of our community which will mean more sales tax loss and for us to put this aside until next year I think would be inappropriate. I think we should move --.f z-aard and act, 'L-duO:*-_,o.1 th(b---fhct that --we have tortprorttb,te'.th� :, :-�S bu na:ss do ve.l:opmenthwher&_we :hope`�to;_..obtain ous cl'argcst revenue from sales tax and this method will allow this to happen. I think the Chamber of Commerce m and I wish we could use the names of some of the people we are going to pick o and they do seem to be the ones most competent to handle these funds. They are going to be reporting to us, they will not be spending that money at random, they will be making plans which we will approve or not approve. I think the most important thing we have to do is develop that busi- ness area and I am sorry to see this becoming an anti -chamber and pro -Chamber type of situation because I don't see it that way at all. I think the Chamber of Commerce will continue to have a dues structure because they can't spend the money we give them on many of the things they need throughout the year, so,I am sure some sort of a membership fund will be in existence and if you want to join and help develop the business community of West, Covina you can, do so,and if you feel they don't need your help or you don't want to helpDyou certainly won't have to. I don't see that there is a forced membership here, the fact is we have a tremendous amount of resources that we are going to draw from the leaders of the business community, successful men, who perhaps know more about business procedures than ourselves because that is their day to day operation. I think ,in a year's time we will see tremendous benefits and if we don't see them then we have ultimate choices to make after a year's examination of what they are doing. We will be getting regular reports, such as we get from our Planning Commission., Recreation and Parks Commission and all other Commissions. I hope this doesn't split the business community, and I think if everybody will wake up to the fact it is for their benefit and not the Council's and if the businesses benefit "then the City benefits because of sales tax. That is why I am taking the position I am. I think it is important that we move ahead now and not wait until next year because we will be right in the middle of redevelopment and the sales tax revenue will be down.and it will be hard to bring it back up to where we are now. Mr. Mayor, I ask you to consider those remarks because I think they are very important. Mayor 'Young: Thank you, Councilman Chappell. Are there further comments? Councilman Lloyd: A question of Mr. Aiassa. What World we do on the business license if we were not going . into this? What was the recommendation of staff on that? Mr. Aiassa: The original recommendation of staff was in August at the time you adoptedthe tax rate and there was no action taken on this. The recommend, at ions were if we took a 20c,4 tax rate that we would ask for a $20,000 increase in business licenses and if you. took the 17c,4 tax rate there would be an increase of approximately $43, 000, and that was the basis we were going to pro -rate the overall expendi- tures of the City between the business licenses and the property tax. 15 • • n LJ CITY COUNCIL HEARINGS: "Business Improvement Area" Page Sixteen 11/27/72 Councilman Lloyd: Thank you. So staff's recommendation was to increase the business licenses, so since we went to a 20(,' rate even though 2� went for a park tax you would have to figure $20,000 on top of the $43,000 or $63,000 e is that correct? Mr. Aiassa: Yes, the 2q was earmarked for Gingrich Park. We had actually applied for federal funds which would amount to about 1c: and Council's action was to budget the entire amount and if the federal funds were not available we would proceed with the full..'..improvements of about $28,000. Councilman Lloyd: The point I make is that staff recommended and the Council -Indicated a certain agreement on. the thing not' that we -.are bound by it. I think the major issue here is the fact that a body has come in with something new and has recommended its involvement of its organization in this and I think something that apparently has escaped us or has not been considered is the fact should the Chamber of Commerce fail in this, and there is no law that says they will not, and every year it is & new ballgame and as a result they are reviewed every year. And the thing about it which has not really been brought out, although I did bring it up when I talked to Mr. Oldenberg, is that should the Chamber fail they just lost $43,OOO. They have lost that money, because you will never go back -to what you have now assuming we pass this and they should fail. We will never go back - although �4.e might sdy';,. they didn.°.t do it fightB. --.we_ will never give them the $43, 000 or $35,000 or even $8,000 which vvas-referred to by Mr. Beem. So there is a certain onus on the Chamber of Commerce, and as bu'8ine9smen-they, recognize the risk they involve themselves in and as such I tend to be disposed to someone that is willing.to take a risk and move .forward. Certainly this is innovating. I don't think it is the only way to go and I can't understand why they came in limiting the factors all the way down to (e), only the general promotion of retail trade activities, when we could have had the other things and who knows within the next year or six months we may include those things. In fact I think they should have been included this time, I 'think the Chambek of Commerce has made a fundamental error, but they are like everyone else, they find their position is the only one and we have to make the compromise which is not very palat4ble to me. Unfortunately I don't have a vote which goes 60% for and 40% against. I am not allowed that. Some of you in the audience who find it is so simple to make these decisions, I would invite you back on many of the decisions we make right here,even though we asked. for it so we can't cry too hard, but you might come back when there isn't a big crowd and listen to the issues we decide on. Councilman Shearer. A very brief comment because I am sure whatever I say isn't going to convince anyone to vote any differently or convince them they are wrong and. I am right. I am supporting 'the motion tonight. I was prepared to support it 2 weeks ago; however, I didn't feel there was enough support on the part of the Council to bring it to a vote at that time. The only reason I am for it is I feel it is an overriding benefit to all of West Covina. Mayor Young: Well, gentlemen, it begins to sound like a 3 to 2 situation. My position was stated the last time and I will not change that position because I do find many of the arguments against this proposal at this time as being very valid arguments, which I don't think have been properly or successfully met and I must share some of Dr. Snyder's feelings in the sense of the philosophical disturb- ance that is in my mind and somewhat expressed by Councilman Nichols' as well. We are coming along here with a proposal that carries with .it two very drastic changes. One at the City level • 0 CITY COUNCIL. Page Seventeen HEARINGS: "Business Improvement Area" 11/27/72 in its relationship with the business community and particularly.'.with the Chamber of Commerce. I don't feel there has been proper con- sideration given to some of the inequities that exist. I do feel that this is the type of program that should have many of these problems ironed out philosophically and particularly financially before we are into it because we are about to ask for $71,000 from the business community which we haven't asked for before. That is in excess of 50/ overall increase. I just cannot feel that it has been thoroughly and properly thought out.. Like Councilman Chappell, I am,sorry to hear the discussion degenerate into a pro-Chamber/anti-Chamber thing because in my opinion the Chamber of Commerce is doing an outstanding job with the resources it has and has done such a job for years and would continue doing so irrespective of this particular program. This particular program arises out of an unfortunate context and does lend to this divisiveness. I think it should be laid to rest at this time for this particular time. I had the understanding previously, Mro Wakefield, that the program would.haue to be terminated if at anytime a 51% majority of the business licensees acted in opposition is that an erroneous concept? Mr. Wakefield: What the statute provides for, Mr. Mayor, is at the time of the public hearing upon the proposal if protests are filed or made by the owners of businesses within the City which exceeds 50/ of the total amount of the business license taxes collected by the City then the proceedings shall terminate. However, once the ordinance is adopted it is like `a.ny other ordinance adopted by the City Council, it continues in full force and effect until repealed or changed by the City Council,,,. Mayor Young: Thank you. I was erroneous in that respect. Nonetheless, this gives even greater weight in my opinion to the thought that we should not .rush headlong into a program this drastic, particularly at this time. We have this town torn up from one end to the other, the freeway is torn up and we are about to plow under the Plaza here and start over and right now we have the full and solid support of a very substantial part of the community and I think we are playing fast and loose.with it by rushing into this thing at this time. I would therefore urge that you reconsider your positions if you are in favor and join me in a "no" vote on it at this particular time. I think a motion would be in order. Councilman Chappell: May I ask a couple of questions of Mr. Wakefield? Why was January 1 the date picked for the licensing date? Is that by law of the State of California? Mr. Wakefield., The January 1 date was picked because that is the date upon which our Business Licenses become due and payable. Our Business License tax is imposed on an annual basis with the business license being issued upon an annual basis for the entire year. So the rates generally in effect at the commencement of the year are those rates which apply throughout the year and when a businessman applies for and .receives his Business License it entitles him to the privilege of doing business in the City for the term the license is issued. Councilman Chappell: Maybe I didn't make myself clear. We have it this year due as of January 1, could we move the date to July 1 and tie it in with our budget and perhaps be more in line with the tax revenues? Mr. Wakefield: Yes, it could be amended to place the payment of the Business License tax on a fiscal year basis rather than the calendar year basis. - 17 • • CITY COUNCIL Page Eighteen HEARINGS: "Business Improvement Area10 11/27/72 In that event I assume the amendment would provide for the pro- ration of the present Business License Taxes so beginning January 1 the Business Licenses would be issued for a period of 6 months with the second half on the annual basis being imposed beginning July 1 instead of January 1. Councilman Chappell: What I am getting at, Mayor, and it might .be along some of your suggestions ® I am going to make a motion that we continue our contract with the Chamber of Commerce and at that time we will enact this law tonight effective July 1 which will give the Chamber of Commerce six months to put all their plans together on paper and let us know and the citizens know and the business community know what their plans are and how we are going to implement this Business Improvement Area. My motion would make it effective as of tonight but not go into effect until July 1. If we went that route would that change your thinking any Mr. Mayor? Mayor Young: No. I am not favorably disposed in moving ahead under this program at this time under any circumstances. Councilman Chappell: I move that we move ahead on this proposed formation of the Business Improvement Area Resolution No. 4650. Mayor Young: One moment m to get this thing in proper order particularly as the proposed ordinance now reads does it have an effective date or does that come .in later? Mr. Vakefield: Mr. Mayor, it does have an effective date. The effective date that is provided for in the draft before you is January 1, 1973. Mayor Young: Councilman Chappell: January 1. any motion Councilman Shearer: Mayor Young-. and then a motion? Would Councilman Chappell want to make a motion to amend the effective date to July 1? No, I am not going to do that now because you say you are not going along with it anyway so I will make .my motion effective as of is January 1 as the effective date. Second. Just a minute gentlemen - you have before you an ordinance so what we really should have is a reading of the heading of the ordinance .Mr. Wakefield: Yes, Mr. .Mayor and members of Council, the proper motion would be to instruct the City Attorney to .read the title of the ordinance and then a motion to waive further reading and then a subsequent motion to introduce the ordinance. Before that is done there is Section 6268 of the ordinance which pends before you and was originally prepared on the assumption if the Council adted upon it it would be adopted so it would be effective prior to January is 1973. If the ordinance is introduced tonight the earliest date it could be effected would be January 11, 1973 and in order to avoid any confusion in the Clerk's office or in the payment of the additional license fee that, section should be changed to read "that this chapter shall apply to Business License taxes levied for the calendar year of 1973 and each year thereafter and the additional business license tax as imposed by this chapter shall be due and payable from January .1, 1973.11 • CITY COUNCIL Page Nineteen HEARINGS: "Business Improvement Area" 11/27/72 Mayor Young: That is the proposed amendment to the body of the ordinance? Mr. Wakefield: Yes, in Section 6268. Mayor Young: I would ask for a motion to change the body of the ordinance as stated by Mr. Wakefield. . So moved by Councilman Chappell, seconded by Councilman Shearer and carried. Mayor Young: Now/ may we have a motion to have the City Attorney read the heading of the ordinance? So moved by Councilman Chappell, seconded by Councilman Shearer and carried. ORDINANCE The City Attorney presented: INTRODUCTION "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA ESTABLISHING A BUSINESS IMPROVEMENT AREA TO BE KNOWN AS "BUSINESS IMPROVEMENT AREA OF THE CITY OF WEST COVINA", FIXING THE BOUNDARIES THEREOF, FIXING THE ADDITIONAL LEVY OF LICENSE TAXES TO BE IMPOSED ON THE BUSINESSES IN SUCH AREA AND ADDING CHAPTER 2.5 TO PART VI OF THE WEST COVINA MUNICIPAL CODE ENTITLED "BUSINESS IMPROVEMENT AREA". Motion by Councilman Chappell, seconded by Councilman Shearer and carried, to waive further reading of said Ordinance. Motion by Councilman Shearer, seconded by Councilman Chappell to introduce said Ordinance. Councilman Nichols: Mr. Mayor, a comment. I have spoken about it as strongly as I can speak about it being offensive to my feelings because I do feel strongly that it is an error as obviously some of my contemporaries feel that it is a proper step. I think only the future will tell the wisdom of that. I would say that -those of you who support this along with those that oppose it are responsible to see that it works as best we can. Although I think some of you are wrong I think you are each casting your votes most sincerely in a way that you feel is in the interests of the total community. I really don't know of any lobbying or vested interests sitting up here. So about the hest I can say for any of you is I think you are nobly wrong. Councilman Chappell: I am glad to hear you say that if it passes that we will all get behind it because it has to pass and be successful if we do pass it, and the only way it will be successful is if the five of us sitting up here work on it and the Chamber members get behind it. In my mind. it is imperative that we move ahead with it. • Mayor Young: I think your comments are very well taken Councilman Chappell and certainly if this passes I will give it my full support and I know that Councilman Nichols will too. We all will even though it is a 3 to 2 vote - we are one Council and we will work together as we always do and always have in the best interests of each program. Mr. Wakefield, if this passes what would then be involved to amend the ordinance to make it effective on the first of July ® because I feel very strongly that breathing room will be needed to learn how to live with this concept and deal with. _= 19 • CITY COUNCIL HEARINGS: "Business Improvement Area" Page Twenty 11/27/72 it in the most effective fashion possible. I think it definitely would be in the best interests of everyone concerned to at least delay the commencement of it, assuming it will pass, to a time that it can be more orderly done, primarily from the City's point of view and certainly from the Chamber's point of view because they don't have this money yet. That is another issue as to where it is going to be spent. The Chamber is simply supporting the legislation at the moment. Mr. Wakefield: The City Council could.adopt an Urgency Ordinance by four votes which would either amend this ordinance, assuming that it is en- acted in the form in which it now pends before you, or could take action that simply delays the operative date by a separate ordinance. But in order to be effective before this ordinance goes into effect it would have to be adopted as an Urgency Ordinance and would require four votes. Mayor Young: That would be to delay the operating date? Mr. Wakefield: Yes sir. Motion carried on roll call vote as follows: AYES: Councilmen: Shearer, Lloyd, Chappell NOES: Councilmen: Nichols, Young ABSENT: None Mayor Young: At this time then I would like to offer for introduction an Urgency Ordinance which would delay the effective date of the Ordinance just passed to July 1, 1973. Councilman Nichols: A point of order, Mr. Mayor. Mr. City Attorney, we have an Ordinance that is being introduced tonight or am I incorrect? Mr. Wakefield: Yes, the Ordinance is simply introduced by the Council. Councilman Nichols: Why would we make an Urgency Ordinance to amend the Ordinance that is introduced tonight? Mr. Wakefield: The Ordinance would require an Urgency Ordinance only at the time of its final enactment. If the Ordinance is passed at your meeting of ,December 11, 1972, in order to delay the effect of that action and the effective date of the Ordinance it would at that time require an Urgency Ordinance to be prepared. Mayor Young: Well then I am out of order and at this time I will simply offer that as something for you gentlemen to be thinking about and I will offer .it again at that time. Councilman Shearer: Mr. Mayor, so I can understand what you are • getting at m what would this do? Would it retain the present Business License fees to July 1 and then impose the surcharge or would the license go up and the City collect the fee but not earmark it for anything? Mayor Young: My concept of it and what I would really like to see b.s work out legislatively and I think we can', is that the Business License be pro- rated from January 1 to July 1 on a 1 to 1 basis and then the whole new licensing structure become effective on July 1 so no one would be paying anything extra until July to So in effect we are simply charging 6 months this time or arranging a credit system so that CITY COUNCIL Page Twenty-one HEARINGS: "Business Improvement Area" 11/27/72 half of the license fee paid is allocated to the second half of the calendar year. I don't think there would be any great problem in working that out. Councilman Nichols: If I understand you correctly, what we would be doing is what the State of California did and that is an acceleration of fees. You • assess the businesses in January for half of the year and in July for the full year, so in one calendar year then you are collecting a year and a half business license. Mayor Young: Well it is not really that way because on January 1, 1974 you would not be collecting anything. Councilman Lloyd: That isn't correct,Councilman Nichols. Assuming what he said is correct ® you would assess a fee, whatever it was, let's use $50.00, for the year and on July 1 the fee would go up to $70.00 so you would get an additional $20.00 because you have already collected the rest of it. Councilman Nichols: I don't think we are communicating. It is my understanding that the proposal was to stay on the current fee schedule and assess a half year business license fee as of January 1 and then in July go on a fiscal year structure from July to June-,30 which would cause to be due at that time a full year's license effective at that time. So funit'ibnsall: --jthe businessman would pay a year and a half ° s license fee during the calendar year of 1973. Councilman Lloyd: Well this is irrelevant at this time because we duo not have the motion before us. Mayor Young: Well I don't see the big problem, because as I s�e its it is due January 1 and you pay 6 months. I don't see any big problem switching from a calendar year to a fiscal year, because we certainly are not going to double charge anyone or overcharge. The Ordinance has passed and you can consider my thoughts which are reflective of Councilman Chappell°s earlier thoughts. THE CHAIR CALLED A RECESS AT 9:12 P.M. COUNCIL RECONVENED AT 9:27 P.M. Mayor Young: I think .it is a very commendable thing that we have had two nights of discussion on a very controversial issue with a heavily divided house with an absolute maximum of good order and good procedure. It really speaks well for this City. VARIANCE APPLICATION LOCATION: 301 South Glendora Avenue in the NO. 688 ® WICKES R-C (Regional -Commercial Zone). FURNITURE REQUEST: Approval of a Variance to allow two free-standing, 72 square foot double- faced identification signs for a furniture store now under construction. Denied by Planning Commission Resolution No. 2448. Appealed by Applicant November 6, 1972. Applicant has requested a continuance to December 11, 1972. Motion by Councilman Chappell to continue Variance Application No.,688 to December 11, 1972, as requested by Applicant. Seconded by Councilman Nichols and carried. 21 • CITY COUNCIL HEARINGS: Cont ° d.. �­ - Page Twenty-two 11/27/72 AMENDMENT IV TO THE This is an interim conservation/open space GENERAL PLAN (OPEN element that is to fulfill the requirements SPACE ELEMENT) set forth by Assembly Bill 966 and Section 65563 of the Government Code. This Section requires every city to adopt an interim conservation/open space element to be used until June 30, 1973, when the final conservation/open space element shall be prepared and adopted. Recommended by Planning Commission Resolution No. 2450. Councilman Shearer: Mr. Mayor, may I ask a couple of questions before getting into the public hearing?, Normally in the past I recall we set things for hearing and I don't recall having set this and if not what kind of }publicity was given that it was going to be heard and was there any kind of a public notice given and if so how was it done? Mrs. Lela Preston: Councilman Shearer, whenever there are,items City Clerk coming from the Planning Commission to the Council then I set them for hearing and it gets a legal advertising and if there are property owners they get a mailing ten days before the hearing. This was approved by the Planning Commission and it has to come to the Council for final approval and it is automatically set, justthe same way as I set Appeals. Councilman Nichols: Mr. Mayor, if I may interject a comment. There are some items set by Council for hear- ing and there are some by law that pass up through the Planning Commission and are required by law to come to the Council. We do not have to independently set those. Mayor Young: Is there anything to add to the Staff Report? Mr. Yamasaki: Mr. Mayor ® unless you have any particular Acting Planning Dir.,questions on the Planning Commission Resolu- tion? Mayor Young: We will reserve that until after the public hearing. THIS IS THE TIME AND PLACE FOR THE PUBLIC HEARING ON AMENDMENT IV TO THE GENERAL PLAN (OPEN SPACE ELEMENT). Mayor Young., This,I think is essentially related to the Friends of Nrammoth situation m Mr. Wakefield? Mr. Wakefield.- Yes, this was a part of the requirement of the legislation adopt.ed.and effective the first of July which required every City which did not have a conservation/open space element in its General Plan to adopt one on an interim basis and to provide specifically for the procedure for the final adoption of an amendment to the General Plan, which would.add the required conservation/open space element. This conservation/open space element before you tonight is an interim conservation/open space element to fulfill that statutory requirement and will be in effect until June 30, 1973. THERE BEING NO PUBLIC TESTIMONY FOR OR. AGAINST PUBLIC BEARING CLOSED. COUNCIL DISCUSSION. Councilman Chappella Mr. Mayor, I have a couple of questions under "Policies and Recommendations". Item 14 "provide one neighborhood park with a neighborhood center building for each 6,500 to 7,000 people." If we vote on this as it is are we then required to provide some funds to implement this or is this something if we luckily come on some funds we can spend them here and if not�we overlook it? 22 CITY COUNCIL Page Twenty-three HEARINGS: Amendment IV To the General Plan 11/27/72 Mr. Yamasaki: Mr. Mayor and Councilman Chappell, Number 14 as well as some of the others in that general area are standards that the General Plan addresses itself to in terms of the ideal. The furnishing of these kinds of buildings for people if the City were able to furnish all of the facilities those are the standards that we would try to achieve. It does not require the Council within a specific time to meet the standards. Mayor Young: Any other comments or questions from Council before we act on the recommendation? If not a motion would be in order. Motion by Councilman Lloyd, seconded by Councilman Chappell and carried, that Amendment IV to the General Plan, the Conservation/ Open Space Element, be approved and transmitted to the Secretary of State Resources Agency. WEST COVINA PARKWAY LOCATION: Orange Avenue to centerline of ALIGNMENT HEARING Glendora Avenue. Set for hearing on this date by Council action of October 24, 1972. Council to review report. Request to hold over to December 11, 1972. Motion by Councilman Nichols, seconded by Councilman Lloyd and carried, to hold this item over to the Council meeting of December 11, 1972. ORAL COMMUNICATIONS Robert W. Duda Mr. Mayor and members of Council, I am President here on behalf of West Covina Beautiful. West Covina Beautiful I have prepared a copy of my speech and 1744 East Charlinda St., Council has a copy before them. West Covina "Gentlemen: West Covina Beautiful., one of the oldest organizations in West Covina, has been an independent part of many of the City°s traditions and subsequent. history. Two of the community activities in which we participate are the Christmas Lighting Contest and the Birthday Ball. This annual lighting contest helps beautify the City by enabling residents to take a personal pride in their homes and surroundings at this festive time of the year and has been promoted annually since 1948 by West Covina Beautiful.' 'Our reason for being here this evening is to discuss the Birthday Ball. This is another event, generally sanctioned by the City Council, and held annually by West Covina Beautiful since its original endorsement by Council on January 10, 1951.1 'As interested ditizens we look forward to 1973 when the City of West Covina will celebrate its 50th Birthday. We look forward to the opportunity of serving the City in its celebration, as its official coordinators. In addition to coordinat- ing the events we will again sponsor the Birthday Ball. We envision this celebration as more than just the Ball and feel that all West Covina organizations will become actively involved in this • project, since it will be of interest to all citizens.' 'Some of our thoughts at this time would be a parade, horse show, concert, golf tournament, fire works, children°s events, teen dance, band concert, numberous commercial sales, etc. We also visualize the use of bumper or window stickers, tee shirts, arm patches for our athletic teams, hats, as well as an official 50th Anniversary Seal for use in City correspondence and merchant's use in their advertisements. All of these third s will let our neighbors know of this celebration and our pride in our City. ® 23 CITY COUNCIL 1Page.,T-,W"en:', -our ORAL COMMUNICATIONS m Cont ° d. ll/ 7/j7?2' 'To accomplish this, we solicite your endorsement as coorda'.it,ors of this celebration. With your concurrence we will approach -other organizations .in the City to formulate more comprehensive plans and return to you with detailed plans for your further approval.' 'We anticipate an organizational meeting Wednesday, December 6, 1972, which will include`+''.all interested groups and individuals at Hollencrest School. You, or'.your representative would be most welcome." Mayor Young: Do my eyes deceive me or is .it true you are not asking for money? Mr. Duda: No sir, we are offering our services. Mayor Young: Thank you,s.ir. May we have,Council comments? Councilman Lloyd,. I am favorably disposed. I•have already talked to Mr. Duda on this thing and I think it is a real opportunity for the City of West Covina to go .forward and a golden opportunity to advance the causes of our City, not only in social activity but in some business promotional area. Councilman Chappell: 50 years is quite an occasion','whether it be a wedding celebration or a City°s birthday. I think this is something that '.Council with all the organizations of the City should. really move ahead on in the 50th year and promote the City and let everybody know we are here and as Mr. Duda presented to us this evening ® do something way out of the ordinary. I would like to have a comment oritwo from our City Manager to see if he has any plans for promoting our 50th Birthday. Mr. Aiassa: We did budget some funds to work in conjunction with some kind of activity for this period. It can probably be worked with. - West Covina Beautiful, but this is a decision of the Council. it is a policy matter. Mayor Young: We are invited to the organizational meeting and I think it would be well for staff as well as Council to have representatives present. Councilman Lloyd,. I would like to go but I teach school on that night and will not be available.'. I would like to state at this time if I can .in anyway help I would be happy to do so. Councilman Nichols: I think this is a very important,Year for the City and I feel we should offer a particular motion, something in tIn form of designating West -Covina Beautiful as the City°s sponsoring organization for the City°s Golden celebration and I thank it would be inappropriate if anyone less than the Mayor of `nest Covina were designated to meet and coordinate the activities® Mayor Young,. I think that is just wonderful, Councilman Nichols. I was going to say that I planned to go to the meeting and would invite as many of the Council as can spring loose on that particular Wednesday evening to join me. Councilman Nichols: I didn't mean in particular the "eeeting but as the Cou.n.c.il°s liaison for planning this particular activity, :', a c I would offer that as a motion. 24 0 16, CITY COUNCIL Page Twenty-five ORAL COMMUNICATIONS - Cont°d. 11/27/72 Seconded by Councilman Chappell. Councilman Shearer: What was :the motion? I didn't quite under- stand it. • Councilman Nichols: Designate West Covina Beautiful as the City's official sponsoring organization for the City's 50th Golden Year celebration and further designating the Mayor as the Council's coordinating member with the organization. Councilman Shearer: A comment, Mr. Mayor. I think it is a great idea when any organization steps forward and volunteers their services to engage in any sort of an activity of any magnitude, much less one of a significant magnitude such as this. I think West Covina Beautiful. .is probably the most logical organization to handle it but what are we going to do if somebody comes along after they have taken the first step and some other organization says - we would like to be the one designated to coordinate this activity - Again, I don't want this interpreted as my saying I have anything against West Covina Beautiful, I think it is fine, but I would hate to tie us into a position if at a later date somebody else comes in and wants a piece of the action and we have already locked it into the first organization that spoke to us about it. I would like to have the understanding that .if some other organization comes in that West Covina Beautiful would be glad to share some of .it, but let's not for instance exclude Mr. Aiassa from doing some of this work. Mr. Duda: Mr. Mayor, May I comment on that? We have waited a few years for this event and we have waited actually a long time for somebody to step forward. We are proposing to step forward to coordinate the event and ask the other service organizations - it is going to take a cooperative effort by the service organizations, the City itself, and the business community, to make this a good celebration. We felt we waited long enough for somebody to do something and we felt by originating the Ball, and I mentioned the Ballwe have had since 1951, also the lighting contest - well we feel that somebody has to do it and we are asking for everybodyas support at this meeting that we propose next Wednesday® We ask for help by all organizations. Councilman Shearer: Don't get me wrong - I learned a long time ago not to believe in fairy tales and I am sure no one will .step forward and say we will do it, but I just like to point out •ghat the Council should reserve the right, if another organization steps forward and if there was a conflict that we would reserve that right,to make that judgment at that time. Mr. Duda: The reason we came forward we felt without your approval we had no right to go 'to any other organization for support in a Birthday Celebrationand that is why we asked for your approval. We do wish to point out that we want to coordinate this event and not sponsor it. Mayor Young,. Thank you. We have a motion and a second designating West Covina Beautiful as the coordinator of this event and designating the Mayor as Council liaison. Is there further discussion on this motion? Councilman Chappell: The Mayor can see fit to appoint all of us to help him - I am sure we are all willing 25 CITY COUNCIL Page Twenty-six ORAL COMMUNICATIONS ® Cont°d. 11/27/72 and standing by for your direction, Mr. Mayor. Mayor Young., Thank you. Motion carried. Councilman Shearer: As a point of information when is our birthday? Mr. Aiassa: February 3rd. Councilman Shearer: Not a heck of a lot of time. Maybe if I had knowni-that I wouldn't have said what I did. Mr. Kallick, Attorney I would like to address the Council on the Los Angeles next item on agenda Item -I (1). Mr. Mayor, members of Council, Mr. City Attorney, I am an attorney in Los Angeles and I am appear- ing on behalf of a California nonprofit corporation called California Automatic Venders Association. These are the businessmen throughout the State that sell merchandise through the vending machines. Primarily coffee, cigarettes, candy and hot and cold drinks. The Ordinance before you under I (1) changes the present Ordinance which .levies a license tax on vending machines. The reason I am appearing is to oppose.it. I would like to explain to you the mixed emotions I have had here tonight because they relate to this Ordinance most directly. When Mike McGee,who is a resident of West Covina and an operator of vending machines here in the City, first called the Business Improvement proposal to my attention and asked what the position of the Association should be about it, I 'told him I didn't think we should interfere, that it was a'local business matter and if everyone in the City was going to have an increase of 60/ and in our case 75/ along with professional people that we could not very well take a position with reference to it because everyone would be in the same boat. Now,you can imagine my dilemma this evening when the 60 and 70/ passed. On this Ordinance before you now for adoption on vending machine licenses it means that Mike would pay on cigarette vending machines a license fee rate of $28.00 per thousand dollars gross receipts and on non -cigarette machines coffee and candy - a rate of $17.50 per thousand. There isn't a rate like that anywhere in the County. The rate in Los Angeles on gross receipts is $2.50 per thousand on all merchandise sold through machines. San.Francisco is $2.00 per thousand. The reason this arises in this way, as I explained to Mr. Wakefield today, in the 10 years I have represented these businessmen they have had one overriding problem. The City would decide to license them f®r business purposes and rather than put them under their existing formula per employee, gross receipts, or some other rate, would arbitrarily say a machine ® $1.00, $2.000, $3.00 - and arbitrarily pick a figure out. The next City that decided to license would go to another City and say how do you do it and they say m well we .charge them $3.50 and the mathematics became staggering, because each year they would increase. The amount of the license was based on a piece of equipment that might have cost $10.00 or $1,000 but the license fee was the same. So over the years, and particularly recent years, I have gone with four or five members of the Association to various City -Councils and the answer was always the same. We said $10.00 per machine is a ridiculous figure and bears no relationship to what you charge other people and what you charge use The answer was - your arguments are very strong, however, when you can 26 CITY COUNCIL Page Twenty-seven ORAL COMMUNICATIONS - Cont'd. 11/27/72 convince our five neighbors that they are doing it wrong too we will go along. On many occasions we took on the other five and" the other five would say - well,,when the other five do it we will go along. The round robin was staggering and we never succeeded. We finally came to the end of the line after trying it for seven or gft eight years and last year in 1971 we went to the State Legislature and went before the Revenue and Taxation Committee and explained this problem, that there were cities taxing operators:of coffee, cigarette, candy machines, etc., just arbitrary rates, anywhere from 50(4, on up to what you presently have - $16.00 for a cigarette machine and $10.00 for coffee and candy, and that there was no rhyme or reason to this. We were ending up paying on the average of $10.00 to what another merchant was paying, this all the while we collect sales tax of which a part if remitted to cities and counties wherein we operate, a very heavy personal property tax on the expense of the equipment which goes to your benefit as well on a pro -ration basis and we collect cigarette taxes which is a benefit also to the City. We are not people ,asking to avoid taxes, we just want to make it reasonable for ourselves. The State Legisl.atvrre listened to us and said with the acquiescence of the League of California Cities, these people do have a problem,.the Cities have just gone, one after another, around in a circle and told them what to pay to the point where they will be paying $20.00 and $25.00 per machine and they bear no relation to their income. The State Legislature in AB1936, which became effective this year and as amended in AB858 later this year, said that merchandise vending machines had to be put on a gross receipts basis and the intent of putting it on a gross receipts basis was that almost all the general law cities would put us on the gross receipts basis of what they charge other businesses. Well there are some cities, like yours, that do not have a gross receipts basis and when that problem came up I raised the issue myself with the League of California Cities and others and they said - specifically the City will look to what other cities charge on a gross receipts basis - like Los Angeles that has had one since 1947 or San Francis -co, and they will charge you probably that rate and that seemed to satisfy it. That is exactly what has happened. The four hundred or so cities that have adopted -it, the general law cities that have complied with the new law have adopted reason- able rates from as low as 50(,' per thousand to $2.509 and some at $3.00. The point isIthat bears a reasonable relationship to the cost of doing business and what you charge other businesses and that is what the rate ought to be. Unfortunately, and I think without intending to do so, what happened in this ordinance, whoever drafted it took the present $16.00 per machine rate and the $10.00 per machine rate and put it down in exactly the same way he thought as in terms of gross receipts. A cigarette machine paying $16.00 now the rate is $16.00 per thousand. An average machine that does $1500. or $2000. per machine is $32.00 and not $16.00 and besides that the rate everywhere else now is $2.00 or $2.50 per thousand but under this ordinance even without the Business Improvement tax we would pay $16.00 per thousand for cigarette machines and for regular machines $10.00 and with the Impr:ovement..Tax it puts it up to $28.00 per thousand. $2.80 for every $100. taken in in the City. It is unconsb. onab.lO.. and unreasonable and I am sure it wasn't intended. That was the intent of the Legislature to stop the cities and make them consider they are imposing an arbitrary rate. In practice it works out this way. Mike pays about a $200. license fee for those 20 machines he operates, probably does an annual gross of $20,000 or $25,000. He could open a store in West Covina and employ one person and probably do three or four hundred thousand dollars of business and pay $45.00, but under this ordinance it will jump to five hundred or six hundred. ® 27 - CITY COUNCIL ORAL COMMUNICATIONS ® Cont'd. Page Twenty-eight 11/27/72 We all want to be reasonable in our licenses and we want to pay a reasonable one. We are already paying under the old ordinance at least ten times what other merchants are paying. Because it is $16.00 a machine, that is at least $16.00 per thousand under the old ordinance which we objected too. We didn't come in here and complain directly to you because we have had our heads beaten bloody by being told - go tell the next guy to do it. The State Legislature set the direction to the Cities and what we are here asking for is a little equity, a little fair treatment. That is impose the same business tax license on us. The average rate in cities that have had experience with it. I know the City of West Covina has not had experience with gross receipts. The maximum rate in Los Angeles is $2.50 and we ask that you impose that rate as a flat rate upon us and there won't be any objection. This will mean a slight loss of revenue to you, which won't be substantial because there is not that much of a license fee involved, but you can imagine what it means to a businessman, off the top of what he takes in, in , addition to alk the other taxes and everything else, to have to pay at this point $28.00 per thousand for his license. ® if you figure it on that basis - the other way it is probably 50e, for the average merchant. So we ask you to consider doing. it on that basis. For example, the bank of machines you have here in City Hall that sell the .items on a convenience service basis%they will be required to pay the license also. I don't know under what contract the City has them, but if you were a private business here in the City and requested that business to be installed m suppose you hada retail store and wanted those convenience items available to your employees, you could do it yourself''and pay nothing additional for ."'"the license because you are already payingA or you might have to pay $5.00 more because you might hire another employee to do it, which is unlikely, but you employ one of our companies to come in and do it and on a contract basis require a fee be paid to you for doing that and they sell the products competitively, l0c for coff.ee,15e, if you agree to that. The candy sales are 'the same as in the stores. To do the same kind of business as other merchants the license fee is not $45.00 but suddenly-.- it is $200., $400., and $500. The mathematics are staggering and impossible. If he is a local business man, and if the license is $17.50 for some machines and $28.00 for others,it will simply be a local merchant that has to pay it out, because it can't be covered, out of our income. A candy bar that sells for 10e still costs 6e, and the man still has to service the machine, along with overhead and all the rest. I hope I have made it clear. The mathematics are staggering. They are not 'readily apparent to someone looking at the present ordinance, and what the legislature has tried to do and frankly the fault may be our own. We did not go to each City Council on this because we didn't want to be telling them what to do anymore than the Legislature wanted to do that. So I ask you to do one of several things, if you will. It is right and fair, it needs to be done. Either amend the ordinance to provide a straight $2.50 per thousand as Los Angeles does, as the rate on sellers of merchandise through vending machines in West Covinao or send it back for further study. I will be glad to meet with the City Manager, City Attorney, or anyone else. Have them check the 400 cities and see what they have done. I am sure you will, find a rate comparable to what I have testified to. Do one of those things but do not adopt this ordinance and place the City of West Covina way out in some area where it has no right to be. Councilman Shearer® Mr. Mayor, a question of Mr. Kallick Did I understand you to say that the 28 CITY COUNCIL Page Twenty-nine ORAL COMMUNICATIONS - Cont'd. 11/27/72 ordinance as proposed for adoption would increase the amount of money per machine? Mr. Kallick: The law passed by the legislature says that you.can no longer impose a license on a per 40 machine or -per location basis, but what has been done in effect is where you used to have a $16.00 per cigarette machine license the proposed ordinance says the rate on cigarette machines shall be $16.00 per thousand. Councilman Shearer: So if your machine does $2,000 worth of business it is $32.00. Mr. Kallick: Yes, the rate would double. The rate for example in L.A., which has had 25 years of experience, is to apply a rate of $2.50 ... Councilman Shearer: Perhaps I should restate my question rather than on a machine basis - are you telling us that the new rate structure will result in an increase to the City in the amount collected on all vending machines? Mr. Kallick: I would think it would have to do that and frankly the design by the State Legislature was just the opposite. The State Legislature recognized by an arbitrary position - - where does the $16.00 rate per machine come from? It means to operate 10 machines in West Covina it would cost $160.00 presently under the ordinance. There is no logical basis for that figure. In all the years I have practiced law and appeared on this matter no one can come up with a set of figures as to why that exists. It is just an arbitrary figure that developed over ten years. Well those ten machines may do $20,000 - that is $160.00 to do $20,000 retail business. Well for $45.00 or $30.00 in the City you can do $200,000 or $300,000 worth ofbusiness° So it bears no relationship. We tried to point this out before the law was changed but City Councils. simply said we don't want to change it, go tell.the others and we will go along. It does mean some .loss of revenue to you. Councilman Shearer: Mr. Mayor, a question of Mr. Wakefield. Mayor Young: Thank you, Mr. Kallick. Before we. get into this further we should inquire if there is anyone else that wishes to address Council under Oral Communications? Mr. Jerry Jacob Operator of Cigarette Vending Machines. There is no way I could add to what has been said, however, I would .like to talk on the mech- mic a,l. side of this. The cost of doing business is increasing for every type of businessman. Labor is going up, taxes going up. I understand the State Legislature is now considering a 6% sales tax and this should help the City on its cost factor. From our standpoint we can only go in one direction. We can raise prices or cut the amount of commissions or the amount of profit which we divide with the local. business people. If this raise does come up we are already squeezed so much because we have absorbed several cost increases by the cigarette manufacturers and we are at the point where there is nothing .left to absorb and stay in business, so we would be forced to go to your local people and say we have to renegotiate our commission structure or .raise the selling price of our product in the machines. And I would think this is exactly what you people do not want .in your own city. Thank you. Mayor Young: If there is no further Oral Communications CITY COUNCIL Page Thirty ORAL COMMUNICATIONS - Cont°d. 11/27/72 I will declare Oral Communications closed. We will come back to this testimony in just a few moments. PLANNING COMMISSION TENTATIVE TRACT NO. LOCATION: Easterly cul-de-sac of Mardina 30872 Street, on the north side of Garvey Avenue ROBERT HIRSCH east of Vincent Avenue in the M7®20 (Medium Density Multiple Family) Zone. REQUEST: Approval of a Tentative Tract to allow reversion to acreage for a .72 acre parcel. Held over to this date at request of Applicant. Recommended by Planning Commission Resolution No. 2446. Mayor Young: You have before you a Staff Report and a recommendation. Is there anything to add to that report? Mr. Yamasaki: Mr. Mayor and members of Council, we do have some graphics, if you would like to, or I could cut the verbal presentation fairly short. Mayor Young: What is the desire of Council? Councilman Shearer,. I am satisfied with the Staff Report we have. Councilman Lloyd: I am satisfied. Motion by Councilman Chappell, seconded by Councilman Lloyd, to move approval, of the Planning Commission recommendation. Motion carried. CITY ATTORNEY Mr. Wakefield,. Mr. Mayor and members of Council, this is the Ordinance that vir. Kali.ick and Mr. Jacobs commented upon ORDINANCE .NO. "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY (HELD OVER.) OF WEST COVINA AMENDING SECTION 6235.6 OF CHAPTER 2, ARTICLE VI OF THE WEST COVI,NA MUNICIPAL CODE, RELATING TO LICENSE FEES AND VENDING MACHINES." ?lotion by Councilman Nichols, seconded by Councilman Shearer and carried, to waive full .reading of said Ordinance. Councilman Nichols,. Mr. Mayor, a question of Mr. Wakefield. Was this Ordinance a direct result of the legislation, mentioned? Mr. Wakefield: Yes, it was. Councilman Nichols: I wouldn't be prepared to move ahead on it until I .received more knowledge on it than I have heard tonight. I would offer a • motion that this Ordinance not be introduced tonight and that we request a Staff Report on it before moving further. Mr. Wakefield: It was introduced at your last meeting, Councilman Nichols, this would be the final adoption. Mayor Young: Councilman Nichols certainly speaks for me. Councilman Chappell: We have something that we certainly have to look at. We may be way out of line in our costs© 30 CITY COUNCIL Page Thirty-one Ordinance Re Vending Machines 11/27/72 Mayor Young: With those thoughts in mind, Mr. Wakefield, what procedure would you suggest? Mr. Wakefield: The appropriate motion. would be to re -refer the Ordinance to staff for study and a report . back to the City Council. So moved by Councilman Chappell, seconded by Councilman Lloyd and carried. Mayor Young: Could I suggest, Mr. Kallick, that you be in touch with .Mr. Wakefield and Mr. Aiassa, the City Manager. You appear to have done a good job this evening. Mr. Kallick: Thank you, Mr. Mayor, I will be glad to meet with them at their convenience. ORDINANCE NO. The City Attorney presented: (HELD OVER) "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA ADDING CHAPTER 6 TO ARTICLE III OF THE WEST COVINA MUNICIPAL CODE, RELATING TO TELEPHONIC ALARM SYSTEMS . B° Motion by Councilman Chappell, -seconded by Councilman Shearer and carried, to waive full reading of said Ordinance. Councilman Lloyd: Mr. Mayor, a comment.before going on. Mr. Aiassa, I called you with regard to an indi- vidual on this very item which was based on the fact that some of these people had introduced these telephonic alarm systems prior to this Ordinance, and as a result the question is are they grandfathered in, or where do they stand? Mr. Wakefield: There is no procedure for grandfathering in anyone because no one in the City was heretofore authorized to provide a telephonic alarm .system that was directly connected into a city telephone switchboard or to a city master line. Councilman Lloyd. Wait a minute. What do you mean they weren't authorized? They didn't have to be authorized. The fact that the City didn't occupy that area doesn't indicate an authorization. or lack of it. I don't understand the logic of that. That is like saying a street or something just because it isn't there they can't put it in because the city didn't have something there. I think in an orderly flow of social living a person goes out and pays whatever he pays for one of these things and it automatically dials -the police - I understand the problem of these things but nevertheless he paid money for it and we are just arbitrarily saying "that's your tough. .luck." What if he bought it 30 days ago? Mr. Wakefield: The Ordinance is structured. upon the basis that any company that installs these • telephonic alarm systems can provide for a trunk line and pay for it -that connects into the City's communication system and those calls will be answered and .responded • to just as any other emergency call. Councilman Lloyd. We are not talking on the same wave length. Let me restate. What I am talking about in -this case is the guy who bought the automatic dialing system triggered by some electronic wave system and the minute that system is triggered automatically it just dials the police and a tape recorded message will ;say something like "This is 3240 Whi.tebirch Drive, the residence of James Lloyd, please repond to a burglary,9v Or something .like that. - 31 CITY COUNCIL Page Thirty-two CITY ATTORNEY m Cont'd. 11/27/72 My question is it is paid for and under the ordinance I am automatically dispossessed of that device. Maybe rightfully so. I don't know the merits of the case. What I am really asking for and I guess .I am out of your realm and I need to go back to the administrative functions of the City ® and that is to find out . how many people are really involved in this activity and how many calls do we have per month thata.re triggered by this method and. is it that onerous to the City, and even though we want to say right now 11hey9no more" and I feel we have that right, but I feel we also have some obligation to those people that have already paid their money and just because the City didn't act I think there is a moral unfairness here if we go back and say "hey9Y®u°re out." In our society the element of the grandfather clause is too often used than to just arbitrarily throw these people out. I am not really standing up here for any individual. I feel the unfairness myself and that is what I am talking about. Mayor Young: We have a gentleman in the audience who desires to testify and I think our Ordinance does provide that right. :Barney Goldman I don't sell these devices; however I West Covina Electronics use one. I didn't know that it was coming up tonight and that is not the reason I am here. Mr. Lloyd brings up a very valid point. I may be just one of many merchants in the City who have such devices. There are two electronic devices that trigger a call to the Police when there is a disturbance. I know there was some problem with a device that does not release the telephone line. In my case it dials the Police, my home and also my manager, to alert all that there is something going on. If the first call isn't answered it repeats it. However, my device which I believe is called "Dialaa- phone" does release the phone line. When it dials the Police Department it doesn't tie up the line. It hangs up just like any other call would. There were some devices on the market that did not do that and I think that is what the police were objecting to. The line would not be released and no other calls could come in. I don't think there are too many of those. The one I have I think is the most widely sold one and if I had known this was going to come up I would have brought the letter from the manufacturer indicating that this device can't tie up the lines of the Police Department. Councilman Lloyd: Question. How much did you pay for it? Mr. Goldman-. I think it is in the neighborhood of $500. and that has nothing to do with the foil or all, the other paraphernalia that goes on my windows, etc.a which costs a certain amount of dollars and there are also sonic devices used to trigger it. Any effort at entry, whether it be sonic, foil or mechanism. put on the doors will trigger it. As soon as it .is triggered it automatically dials the police, my home or any other person, that you want. When the message'is received by the Police Department it is on a tape explaining that there is a robbery in progress at West Covina • .Electronics, giving the name and address and it will repeat that message. It has worked out very well. Several, times the police have responded within seconds and there has been considerable • savings in property damage and property. The point is there is nothing wrong with the device as a method to notify the Police because it is a direct line and the dispatcher receives the call just as if an individual is calling and said I see somebody breaking into West Covina Electronics, or Lawson's Jewelry, or the bank and the man hangs up and another call comes in on that: line. That was my main point and the cost for replacing that would be quite expensive. 32 CITY COUNCIL Page Thirty-three CITY ATTY.: ORDINANCE re TELEPHONIC ALARM SYSTEM 11/27/72 Motion by Councilman Lloyd that City Council hold this item over for a staff report on the validity of this. Seconded by'Councilman Shearer. Councilman Shearer: A question. As I recall the report, which I don't have before me this evening because we had it at our last meeting, wasn't the problem with regard to if there was a malfunction that it would tie up the line'and the Ordinance would require each individual such as the gentleman who just testified, to have a separate line and pay for the line into the Police Department. I assume these devices can be programmed to dial any number they want ® is that correct? Mr. Aiassa: Yes. Councilman Shearer: Maybe in my ignorance I oversimplify its but it would seem like a simple thing and less expensive m why couldn't the City set up a number in the Police Department and make the ordinance say , that anyone that wants one of these devices has to program to dial this number and it is separate and apart from the numbers given to me to dial. This might elifiiinate the whole problem at less cost. Mr. Aiassa: This was given some consideration but we didn't go into the actual cost of it. Councilman Shearer.' What does a phone line cost? Councilman Lloyd: I think it is $16.00 a month. Mr. Aiassa: But you also have to realize that we have so many lines brought into the master switchboard and we receive certain numbers and have a certain capacity and what they are worried about is that our capacity is going to be reached soon and then we will have to change our whole line system. Councilman Shearer: if each one of these guys that had them in the City had to bring in a separate line that'will certainly exceed your capacity a lot quicker than one line.. Mr. Aiassa: No m we are given a block of numbers and we take them all. If this special line comes in the telephone company would give them another block of numbers and that wouldn't affect our master switchboard. Mayor Young.' We have a motion to defer this matter and a second. So why don't we pass that motion and go on at this time. Motion carried. ORDINANCE NO. The City Attorney presented: (HELD OVER) 00AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST CO VINA ADDING CHAPTER 6 TO ARTICLE IV OF THE WEST COVINA MUNICIPAL CODE, RELATING TO NOISE." Motion by Councilman Chappell, seconded by Councilman Shearer and carried, to waive further reading of the body of said Ordinance. Councilman Shearer. Mr. Mayor first of all I am not in favor of noise, and I don't know hoer many of my fellow Councilmen read the Ordinance but there are a number of things in here that pop out. 33 CITY COUNCIL Page Thirty-four CITY ATTY.: Noise Ordinance 11/27/72 For instance, if this ordinance were passed it would prohibit the PA system at West Covina High School next year. It would prohibit all PA systems at Little League Baseball games. That is only one point. I think it is a poorly'written ordinance and I question that it is one that we need. It makes very frequent use of phrases such as "shall cause annoyance or disturbance to a reasonable person of normal sensitivity." Now if the court can really define m first, such a person, what a reasonable person is, and this reasonable person must have a normal sensitivity if the noise irritates him then that is a crime. I think I am a normal person of reasonable sensitivity and a barking dog at 2 A.M. is an annoy- ance to me, but I would hate to:�have my neighbor prosecuted unless it were a repeated thing. I think the whole ordinance opens itself .up to all sorts of neighborhood spats, etc. 'It seems to me there are sufficient regulations with regard to disturbing the peace and something as extensive as this is not needed in the City, particularly when it contains things such as I mentioned, the amplification of noise after 6 PoM®, and everyone that operates a PA system has to get a permit from the City. This means every Little League and the schools have to go to the City Clerk and have a permit issued. It seems to me like a very difficult ordinance to administer. There is no argument about noise but it seems to me like.we have sufficient laws on the books now and until such time as it is demonstrated to me there is a problem, something lacking that we can't control, we can't control dogs, we can't control motorcycles, or PA systems with existing regulations, I don't see adopting a 7 page ordinance to do something that I don't -think is a problem. So I vote against it unless we want to send it back as we have the other two, to the City Attorney for redrafting. Councilman Nichols: Mr. Mayor, I have to plead ignorance. This one got by me somewhere and I don't know. where, but I wasn't aware of the nature of the items in it. I would like to send it back and be informed a little more in terms of the history of this, why it was developed, and what it was patterned after, etc. I wouldn't want to vote to just kill it right now. I would like more information on it. Councilman Lloyd: To enlighten you, I was the one that asked that this ordinance be introduced, not specifically by these words, but I suggested to the City Attorney he might take it as a pattern m the one for Beverly Hills which I had read. My interpretation of it, and of course this is the thing about beauty, it is always in the eyes of the beholder, and my interpretation isn't anything like that of Councilman Shearers. Not that I disagree with him but it simply didn't occur to me that way. I am incensed over the :tact, for instance, that motorcycles do indeed make noises and his point is if we can't stop them now why stop them with this? The answer is we can. We have that right. There are certain sounds and as a matter of fact there is a very good thing on destructive noises to the human ear and what it can stand and a lot of this .is patterned on that. I don't think the intent is to prevent the Little Leagues from playing ball at night and using a PA system; it isn't .intended to stop West Covina High, Edgewood High or any other from playing football but it is intended to stop -the • amplification of some of these bands which are running somewhere between 140 to 180 decibels of sound, which is simply destructive to the human body. I think if you throw this one out you are going to throw the baby out with the bath dater, because there are a lot of people in this City that think it fundamentally merits con®. siderationo Perhaps this .is wrong, but that is where it came from. Councilman Nichols: When did we have this item on our agenda before? 34 CITY COUNCIL Page Thirty-five CITY ATTY: Noise Ordinance 11/27/72 Councilman Shearer: This was the item last week that I said I had thirty minutes of questions on and it was 11:30 at night and now it is 10:300 I said we could introduce and I would ask my questions next time. Regardless of the intent, the ordinance as introduced still states . Section 4644 "the use of sound amplifying equipment shall be subject to the following regulations ..... ° I assume sound . amplifying equipment is what they use at Edgewood, West Covina and South Hills High Schools' football games to announce them and it says it shall be used only between the hours of 10 A.M. and 6 P.M. That is what it says. I am not commenting on whether that is good or bad but that is what the Ordinance says. It also says in Section 4631 - Motor Vehicles, "It shall be unlawful for any person to operate any motor vehicle within the City in such a manner that a reasonable person of normal sensitivity residing in that area is caused disturbance or annoyance." How do you enforce something like that? Councilman Lloyd: No argument about it that it calls for a judgment situation and perhaps we should re- view it. But what I am saying and the way you presented it and I didn't want it to come through that this had no merit, because Councilman Nichols' interpretation was "hey I am with you, that thing really sounds dumb" and it is not a dumb suggestion and it may need refinement but I am suggesting that the Council not arbitrarily throw it out because of that. Councilman Shearer: I didn't mean to imply that. Fine, let's refine it. Mayor Young: How about a motion then to return it to staff for further refinement? So moved by Councilman Lloyd, seconded by Councilman Shearer. Councilman, Shearer: My term of refinement is one that is practical and one that can be administered and enforced. It is great to have a lot of ordinances on the books but if you can't enforce them from a practical standpoint then it is a waste of time. If we can, adopt an ordinance that can be enforced to control loud motorcycles and barking dogs, etc., then I am all for it, but not one that leaves it up to a reasonable person with normal sensitivity. Motion carried. ORDINANCE NO. 1209 Mr. Wakefield., Mr. Mayor and members of. ADOPTED Council, this is the ordinance that permits the use of plastic sewer pipe not to exceed 4" in diamemtero It is entitled. "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA AMENDING SECTION 5245 AND 5245.1 OF THE WEST COVINA MUNICIPAL CODE .RELATING TO KIND AND SIZE OF SEWER PIPE." Motion by Councilman Lloyd, seconded by Councilman Chappell and carried, to waive further reading of said ordinance. Motion by Councilman Chappell, seconded by Councilman Lloyd, to adopt said ordinance. Motion carried on roll call vote as follows: AYES: Councilmen: Shearer, Nichols, Lloyd, Chappell, Young NOES: None ABSENT: None 35 CITY COUNCIL Page Thirty-six CITY ATTY.: --Southeasterly Annexation 217 11/27/72 Mr. Wakefield: Mr. Mayor and members of Council, the next item relates to the finding and declaration that there was not a•majority protest filed in connection with Southeasterly Annexation District No. 217. This is the item that. Councilman Shearer raised a question about at the last Council meeting. I think two things need to be said. First, the Council at this point or at any point up to the time the ordinance is finally recorded with the County Recorder's Office can abandon the annexation, but if you abandon the proceedings before the election then it means the proponents will have to start all over again, reinitiate proceedings through LAFCO and go through the same procedural steps we have gone through thus far. It was unfortunate the proceedings were delayed to the point where they will not became completely effective until the first of July, 1974, but I am informed by staff that it has been past policy of the City to respond to calls for police and fire protection to newly annexed areas even prior to the time those areas may be withdrawn from the County Fire Pro- tection District or still be entitled to receive county services. So from a practical standpoint I think it is best to continue with the annexation proceedings and call the election and go forward. Councilman Shearer: Mr. Mayor. There seems to be some confusion between the heading of the Resolution and the staff report. The heading of the resolution calls for the election to be held on the 6th day of February. The staff report Item No. 3 says "Postponement of the election date beyond January 23rd would necessitate the City°s repeating the annexation process all over from the beginning.", Will the City Attorney clarify this? Mr. Wakefield: Yes, Mr. Mayor and members of Council, the question was raised with me as to whether or not the continuance of the matter from your last Council meeting meant we had in ef:fect.s.imply shortened the time in which to call the election. A specific item of concern was a provision in the annexation statute which deals with the problem-, however, that is not the effect of the Council°s postpone- ment of the matter so that really the election date can be the 7tth of February and still conform to the requirements of the statute. RESOLUTION NO. 4659 "A RESOLUTION OF THE CITY COUNCIL OF THE CITY ADOPTED OF WEST COVINA FINDING AND DECLARING THAT A MAJORITY PROTEST HAS NOT BEEN MADE AND CALLING A SPECIAL ELECTION TO DE HELD ON THE 6T°H DAY OF FEBRUARY, 1973, PERTAINING TO THE ANNEXATION OF SOUTHEASTERLY ANNEXATION DIS- TRICT NO. 217 TO THE CITY OF WEST COVINA. v .Motion by Councilman Chappel,l,, seconded by Coun.ciloran Lloyd and carried, to waive dull reading of the body of said Resolution. Motion by Councilman Chappell, sec,?-anded by Councilman. Lloyd, to adopt. said Resolution. Motion carried on roll call vote as follows-. AYES: Councilmen.° Shearer, Nichols, Lloyd, Chappell, Young • NOES; None ABSENT: None RESOLUTION NO. 4660 The City Attorney presented-. ADOPTED "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA APPROVING AN AGREEMENT BETWEEN THE DEPARTMENT OF FINANCE OF THE .STATE OF CALIFORNIA AND THE CITY OF WEST COVINA FOR A POPULATION ESTIMATE." .Motion by Councilman. Chappell, seconded by Councilman Lloyd and carried to waive full reading of said Resolution. 36 CITY COUNCIL Page Thirty-seven CITY ATTY.: Resolution No. 4660 11/27/72 Motion by Councilman Chappell, seconded by Councilman Lloyd, to adopt said Resolution. Motion carried on .roll, call vote as follows: AYES: Councilmen: Shearer, Nichols, Lloyd, Chappell, Young NOES: None, ABSENT: None MAYOR YOUNG CONVENED THE COUNCIL MEETING AT 10:40 P.M. to CALL THE REDEVELOPMENT AGENCY MEETING TO ORDER. COUNCIL RECONVENED AT 10:47P.M. CITY MANAGER PARKING STRUCTURE Motion by Councilman Shearer, seconded .by CONSTRUCTION Councilman Lloyd and carried, to receive and file status report on. Parking Structure con- struction® CIVIC CENTER Mayor Young: We have a report and PARKING STRUCTURE recommendation regarding the necessity for additional architect's and engineer's fees. I see this would be added to the reimbursable cost by the County - is there any further discussion or questions? Councilman Shearer: Yes, with regard to the improperly located column, Item 1. If I am, wrong somebody correct me. This seems on the basis of the staff report, something that the architect could reasonably be assumed to have considered in the design of the structure. Now this is not to infer that there is anything lacking in Mr. Sata, because the best of us make mistakes; however, he made the mistake and now he is asking to be paid $677.50 for engineering costs because the column was improperly located in the first place. Now if I am incorrect, someone please advise me so. However, I donOt see where we should pay for correcting an error that was made in the original layout. Mr. Aiassa: Councilman Shearer, I will. have Mr. Fowler explain the details. The parking :structure at the time —the column was located at the direct entrance' where we bring the prisoners in and normally we would bring two cars in and after physically seeing the layout it was felt at that time9in due regard to my experience with damaged vehicles that this would be an expenditure well made because it was close enough to cause a hazard but not close enough to be considered a hazard in the design pattern originally. The only way we could really tell was when it was physically seen and we brought the vehicles in, and out of the police compound. This is a thing that staff went into and we were hesitant to change the design because there was more than one column involved., it was a series of columns. The design and layout was reviewed but staff didn't realize that a column being that close would be of some de:17a rr en t to the bringing in, of more than. one car at a time. Mayor Young: You are stating this was a staff error in providing the original. specifications to Mr. Sata. • Mr. Aiassa: I think it is more on our side because we felt at the time it was more economical to stay on the master plan of the original design but after seeing it erected I felt I didn't want to see the police cars jeopardized anymore than necessary. Councilman Shearer: You are missing the poi.nt-,Mr. Aiassa. I don't want to see them jeopardized either or th.e structure fall down either. Will you state that this is not an error made by th.e architect and .it was an error or miscalculation on behalf of the City? Mr. Aiassa: Mr. Fowler? 17 g • CITY COUNCIL Page Thirty-eight CITY MGR.: Civic Center Parking Structure 11/27/72 Mr. fowler: Mr. Mayor and members of Council ® Mr. Sata in his Bldg. & Safety preparation of his original drawings used a Director survey plan which showed the location of the Police Building and the prisoner delivery area however, our staff had not researched this to the point to see whether the error occurred in the original survey or just how it came about. The column showed on Mr. Sata°s plan exactly where it was to be located and it was in an area which staff was aware of and didn't feel it was a big hazard. The Chief of Police recommended that we move this to avoid the possible damage to vehicles leaving there under an emergency situation. You can drive two cars in and back out conveniently® however, leaving in an emergency situation this might be a little difficult. Mayor Young: However, this was a staff decision then? Councilman Shearer: Right - then this was a staff decision. Let's vote on it., Motion by Councilman Lloyd, seconded by Councilman Chappell, to approve the invoice from frank T. Sata, architect, for the additional engineering services in the amount of $1127.50. Motion carried on roll call vote as follows: AYES: Councilmen: Shearer, Nichols, Lloyd, Chappell, Young NOES: None ABSENT: None Councilman Nichols: Mr. Mayor, I might say that Councilman Shearer raised a good point. I certainly stand with him on that and I was hoping that Mr. Aiassa would say it was his mistake. EXECUTIVE SESSION Mayor Young: At this time we will adjourn to an Executive Session requested by the City Manager. COUNCIL WENT INTO EXECUTIVE SESSION AT 10:50 P.M. AND RECONVENED AT 11.03 P.M. REPORT RE POLICY Mayor Young. This report appears to be ON PTA USE Of SCHOOL informational only. Are DISTRICT STATIONERY there any comments? Councilman. Shearer. May I make a comment? I am not going to pursue it, I won't get into the School Districs policy, but I hope it is not a City policy to allow employee groups or what have you, to correspond on City stationery, not from the standpoint of cost to the City, but the City letterhead should be reserved for City use. I :really don't think the School District is in agreement with this position but that is not my tack to pursue. COUNCILMEN ° S REPORTS/COMMENTS Councilman Shearer, I would like the staff to look into and come back in the very near future with their recommendation with regard to what the City°s position should be on the formula for revenue sharing. We have been receiving a lot of resolutions from various cities urging the State to exercise an option and I understand the State had to change the formula for distribution of revenue sharing funds after the first year and if I can believe the figures that I read that is an optional formula which would produce 50% more income to the City of West Covina. I would like to know what our position should be - should we take any action with our legislators? Mr. Aiassa: We will come back with a report. • • • 9 CITY COUNCIL Councilmen's Reports/Comments ® Cont'd. Page Thirty-nine 11/27/72 Councilman Nichols: Mr® Aiassa, I received in my Council packet an informational memorandum, I assume everyone got it, dated November 21, discussing various cash flow approaches and procedures. I certainly want to play some role along with the rest of the Council in discussing these alternatives before you burn your bridges, because I have some thoughts on that subject. Mr. Aiassa: Yes sir® Councilman Shearer: Since that item was brought up, I wasn't going to say anything, but now that it has been opened, are we in that bad of a situation this year? And if we are this year then we were in a lot worse situation last year at this time, if I can believe the Treasurer's report. October, 1972, we had an on hand balance of $205,OOO. October, 1971, we had less than half of that. Mr. Aiassa: Back in 1971 we did have a reserve balance and this year we don't have a reserve balance because we closed down almost all the accounts. Councilman Shearer: But we have twice as much money in the bank this year than last year? Mr.. Aiassa: But we haven't got it. Councilman Shearer: Where is it then? Mr. Aiassa: It is on .its way but it is not here. Councilman Shearer: Well then I am confused. We have a Treasurer's report saying ® we have a balance on October 31 of $205, 725. B7. Now if, that doesn't mean what .it says, if that means that is money in transit.... Mr. Aiassa: I thought you were talking about the federal funds. Mr. Eliot..®. Mr. Eliot: Councilman Shearer, it is time for confessions Controller I guess, especially when we talk about the State of California m the truth is the City Treasurer's letter is quite accurate and you are quite accurate in stating the cash balance this year is higher than last year. However, offhand I would say about a quarter of a million dollars of the cash balance you see there is in restricted gas tax funds and prior to last year the City was able to use the gas tax funds in a more liberal manner because it.was co -mingled with the City's General Fund. .ih. one bank account® As long as we were okay as of June 30thr the State auditors had never made any adverse comments, but evidently up and down the State of California they were having problems with various cities and checked us out on a month to month basis and felt that was an inappropriate use of gas tax funds and insisted that we segregate them in separate bank accounts. As you note, the cash balance shown there on the first page, and I haven't seen it but I am guessing what it says, it probably would show that most of your cash is in time deposits, about $1.7.5,000. The only time deposits we hold today are.for gas tax purposes. So in fact today it is a problem of cash flow in our General.Fund. It is critical and yes, was need to re- establish our interim reserve tax that we have allowed to get down so low. Councilman Nichols: I think this is the kind of information the Council should be aware of -and I really didn't intend to go into it in detail except to say when you come to these kinds of alternatives you are ® 39 m CITY COUNCIL Page Forty Councilmen's Reports/Comments - Cont'd. 11/27/72 really in a policy area and I think,. the legislative body should participate in making any decisions as to how we handle problems of this type, no matter how temporary they may be, because we are the ones that will be accountable for any adverse reaction that comes. There might be political reasons Council would want to use one over the other and there might be reasons why you could show us that it would not be proper to go another route, but I • would hate to see some course of action followed routinely at staff level and then have something backfire and brought before the Council. Mr. Eliot: I would like to add however that this is quite temporary and On December 13 we will be receiving our first allocation of property taxes from the County of Los Angeles and the dry period will be over for this year. Councilman Lloyd: When do you anticipate the first increment of revenue sharing? Mr. Eliot: Cash would be available for us in the interim even though it may be later segregated - and apparently not until December llth. We have been calling Washington between the llth and 13th of December all this ends, but it has been a harrowing experience as you can tell from that letter. Mayor Young: In following up Councilman Nichols' point, .is there some action that Council desires to take with respect to the alternatives presented here or is the matter already taken care of? Mr. Aiassa: We had three alternatives. Most cities during their dry period try to maintain a constant cash flow that does not overburden the reserves and since the State was auditing us monthly we were temporarily unable to use those for.our cash flow. Our cash flow is a lot different than the .restricted funds. The funds will be replenished after the receipts are returned to the City from the property taxes and our first payment is due December 13th. And right now we can work it out with the third option shown and that is the way we are going to work it. Mayor Young: That is the Way you propose to work it - that is a policy matter. Councilman Nichols: What I am attempting to say, I think when a municipality reaches the point where it has to change basic financial procedures because of some problem, that it is at that point that the City Council should be involved. For instance this body might have felt for various reasons because of the license hearings, it would be better to take some adverse publicity and let the public know that we are in fact not on the gravy train and we are in stringent times - there are sound psychological reasons why it might have been better to go some other route. I am sure no harm • has been done and I am not all that uptight about it, but I think when we come into any area as significant as this it really becomes something that we should be very close together on and know exactly where we are going. Mr. Aiassa: We will do that from here on. This is the first time we experienced a situation this tight. CITY COUNCIL Page Forty-one 11/27/72 DEMANDS .Motion by Councilman Lloyd to approve demands totalling $523;024.98 as listed on Demand Sheets C8420 B554A, B558 and B559. Seconded by Councilman Shearer and carried on roll call vote as follows: AYES: Councilmen.: Shearer, Nichols, Lloyd, Chappell, Young NOES: ABSENT: None None ADJOURNMENT Motion by Councilman Chappell, seconded by Councilman Lloyd and carried, to adjourn this meeting at 11:20 P.M., to November 29, 1972, at 4 P.M., in the West Covina Council Chambers. • • APPROVED: 41