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07-06-2002 - Regular Meeting - MinutesE • MINUTES ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND ADJOURNED SPECIAL MEETING OF THE REDEVELOPMENT AGENCY JULY 6, 2002 Mayor Touhey called to order the meeting at 10:25 am on Saturday, July 6, 2002 in the City Hall Council Chambers, 1444 W. Garvey Avenue, West Covina. As Mayor, he chaired the joint meeting as the continued Big League Dreams project from July 2°d required discussion and action by both bodies. ROLL CALL Mayor Touhey, Mayor Pro Tem Herfert, Councilmembers Miller, Sanderson (arrived at 10:40 am), Wong Others Present: Pasmant, Alvarez-Glasman, Chung, Fields, Lennard, Wills, Samaniego, Anderson, Bachman, Hatch, Freeland, Lee, Villegas, Berry PUBLIC COMMENT ON ITEMS ON THE AGENDA Mayor Touhey stated that comments at this meeting would be limited to the two items that were carried over until today from the Tuesday evening's regular meeting of July 2, 2002. Ferdinand Chan Ferdinand Chan, Waste Management & Environmental Quality Commissioner, 3129 E. Virginia Avenue, asked for several clarifi- cations regarding the language within the agreements with EPA and BKK. Special Counsel Lennard responded. He expressed concern about BKK holding up its part of the arrangements. Mayor Touhey reminded the audience that there was one short order of business that was carried over from July 2. He interrupted the proceedings to have that matter considered at this time. ORDINANCE FOR ADOPTION ZONE CHANGE NO. 670 (Pacific Communities Builders) Councilmember Sanderson stated her opposition to the change in density and Councilmember Herfert concurred. Public Works Director Yauchzee reported that there were two Council questions and he provided the answers. City Clerk Berry presented Ordinance No. 2085 ORDINANCE NO. 2085 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALI- FORNIA, APPROVING ZONE CHANGE NO. 670 (Pacific Communities Builders) Motion by Wong and seconded by Miller to waive further reading of the ordinance and adopt. Motion carried by roll call vote: AYES: Miller, Wong, Touhey NOES: Herfert, Sanderson Mayor Touhey continued with Public Comments and the following addressed Council. Council Minutes 7/6/02 • Corey Warshaw Corey Warshaw; 3330 E. Holt Avenue, expressed concern about the deal points with the acquisition of the BKK property. He commented on the financials, the bond issue, revenue sources for BLD, language in the agreement regarding preferential treatment for local leagues, proposed green fees, scope of service, traffic impacts, and that the City appears to be the only entity in this project that is putting up a major investment. He favored using grant money, if it was available. He concluded by stating his support for purchasing the property and his opposition to the BLD project at this point as presented. Closed Session Council comments led into a discussion as to whether or not certain items could be discussed in open session. Motion by Herfert and seconded by Sanderson to add closed session to the Agenda as a need to discuss related items to the matter at hand come up after the posting of the agenda. Motion carried 5-0. Mayor Touhey recessed the meeting at 11:17 am for the purposes of holding a closed session. The City Council returned at 11:40 am with all members present. City Attorney Alvarez-Glasman stated that no action had been taken during closed session and there was nothing further to report. Don Carman Don Carman, 1238 Hollencrest Drive, spoke in support of the project and the positive impact on the community. St. James Davis St. James Davis, 616 N. Vincent Avenue, invited interested people to join his informal baseball group that meets at Cameron Park between 9:30 am and 11:00 am Monday through Friday. Gloria Gandara Gloria Gandara, 2142 Evangelina Street, spoke in favor of the project, noting that activities transferring to BLD from the various City parks will result in opening the parks for other uses and users. Tom Masterson Tom Masterson, 2028 Brentwood Drive, noted that Page 16 of the MOA clearly defines BKK's liability. He supported the project as being a good risk for the City to take. He favored the relocation of the proposed gym at Cameron Park to the BLD site if it will save the City money. Chris Alturas Chris Alturas, 1728 B Cabana Avenue, supported the project for the City and the community. John Scheuplein John Scheuplein, 1800 Aroma Drive #247, spoke favorably of the project and the hard work putting the project together. He also felt the proposed gym at Cameron Park should remain at Cameron Park. Nancy Adin Nancy Adin, 2633 Maureen Street, noted that every project has a risk but encouraged Council to "go for it." Rick Kreps Rick Kreps, 2042 Casa Grande Drive, suggested that bicycling riding/paths be included for individual sport. He pointed to the large map the areas he suggested. Councilmember Sanderson concurred and suggested further that equestrian trails would be a great addition to the plans. 2 Council Minutes 7/6/02 E • Councilmember Miller reminded Council that all the materials presented today was distributed to Council last Saturday evening at 9:00 pm. Although Council has been briefed from time to time this is the first time all the documents and exhibits have been pre- sented as a final product. He felt it was inappropriate to move too fast today. City Attorney Alvarez-Glasman suggested that there were two more speaker cards regarding Cameron Park and that it would be prudent to hear from them at this time. Gloria Vargas Gloria Vargas, 1915 Summerplace Drive, thanked Council for the excellent Fourth of July celebration and the wheelchair ramps in the football fields. She expressed concern that the proposed gym for Cameron Park would be put on the back burner. She felt the park really needed to have that gym. Cookie Nance Cookie Nance, 1236 W. Eckerman, spoke favorably of moving forward with the construction of the proposed gymnasium at Cameron Park. Public Comments Closed Mayor Touhey closed the public comment portion of the meeting and asked for staff response. Special Counsel Lennard addressed the comments, questions, and concerns regarding the PPA, site cleanup and contamination issues, as well as BKK's liabilities and responsibilities. City Attorney Alvarez-Glasman responded to comments, questions, and concerns regarding the MOA and the language therein. He noted that there is language within the MOA regarding notice and cure if Big League Dreams doesn't perform to the City's standards. Scott LeTellier Scott LeTellier, CEO of BLD, and Rick Odekirk, Managing Director of BLD of USA, spoke to the issue of preferential treat- ment for local teams. Discussion included tournament play, league reservations, etc. City Manager Pasmant responded to comments and questions regarding traffic, reclaimed water rates, and golf course fees. Recess Mayor Touhey called a recess at 1:30 pm. The City Council reconvened at 1:40 pm with all members present. Councilmember Miller posed several questions and comments regarding the MOA, line by line, to which the City Attorney responded. There was a discussion about the language providing for "six days" of City use at BLD or "six events," bearing in mind the City's Fourth of July celebration usually encompasses several days for just that one event. Mr. Miller reiterated his preference for exhibits before he approves any agreement. Special Counsel Lennard responded Ito Mr. Miller's comments and questions regarding the PPA and environmental issues. Real estate attorney Robert Bonds of Fulbright & Jaworski, one of Mr. Lennard's partners, responded to the questions regarding the Purchase and Sale Agreement. Mr. Lennard assured Councilmember Miller that he would speak to BKK and the Army Corp of Engineers about the San Gabriel 3 Council Minutes 7/6/02 Valley Mountains Conservancy; although, BKK has an existing contract with the Santa Monica Mountains Conservancy. Councilmember Wong asked questions about the estimated economic value of the BLD project and the BLD Development/ City Park comparison table presented in the staff report. • Mr. James Regan of Regan Reality Advisors, Inc., addressed the questions posed by Mr. Wong. Mr. Regan prepared the revenue projections for the City. Redevelopment Agency Director Chung responded to the questions regarding the operation and maintenance costs of the soccer fields and then the larger project. Community Services Director Hatch assisted with the estimated personnel costs, if the City chose to operate the sports park, including and excluding the soccer fields. In relation to the proposed agreement with Environmental Science Associates to prepare a Supplemental Environmental Impact Report, Mr. Mark Alpers responded to Councilmember Wong's questions relating to traffic impacts. Mr. Alpers prepared the previously certified EIR for BKK's proposal to construct a golf course and industrial park on the landfill site. Councilmember Wong continued questions regarding cost and net revenues of the various components of the project. In reference to an earlier discussion regarding the City's ability to utilize the BLD facility for multi -day events, City Attorney Alvarez-Glasman stated that upon conferring with BLD repre- sentatives, the language that will be inserted into the MOA will state "six events, not to exceed eight days/year." The City Attorney also stated that the resolutions have been drafted to accommodate Council revisions. The documents can then be executed by the City Manager, once he is satisfied that the Council's revisions and directions have been accomplished. Action Motion by Herfert and seconded by Sanderson to adopt the recommendations of staff. Councilmember Wong stated that the Council received a notebook of information in closed session and there is plenty of material that hasn't been reviewed by the general public. He felt there was a rush now to get through this process even though this is a $40 million project. Councilmember Wong wanted to ask questions of the ERA report. While he was reading the portion of the report that he was questioning, he noticed two Councilmembers were absent from their seats. He asked for a recess and left the Council table. The two other Councilmembers reappeared and took their seats. Motion by Herfert and seconded by Sanderson to call for the question. City Attorney Alvarez-Glasman stated that the motion to call for the question would take four affirmative votes. Motion failed 3-1 with Miller voting no. Councilmember Miller stated that his overriding concern is the • security of the landfill, that the post -closure maintenance is on- going in perpetuity and if purchasing the project site property will ensure that, then he has no problem with that. He did have a problem with the cost of the project, because it must be economic sense for the community. All of the activities that the BLD site will provide is good, but those activities need not cost the City and the residents nearly what it is going to cost utilizing the financials of this project. M Council Minutes 7/6/02 Councilmember Herfert stated this project has been seven months in the making, with meetings and documentation, etc. He believed a week is enough time to review the papers delivered last week and there has been plenty of testimony. The project will bring revenue to the City and a lot of enjoyment to the residents, particularly the kids, and he wished that other Councilmembers could reach point in that vision and support the project. City staff has conducted a lot of research and work to bring this project to fruition. He also apologized for the treatment some staff members and consultants have received. Councilmember Sanderson reminded the audience that this is a positive project for the City, and a good financial partnership with Big League Dreams. She also commended staff for the work they have done on this project and stated her support. Councilmember Wong took exception to the Council majority attempting to take action while he was away from the Council table during a break. Mr. Wong continued with questions regarding the EIR, the market penetration, and the purported use of BLD is for the youth although it appears that BLD serves adults. Rick Odekirk, Managing Director of BLD of USA, Rede- velopment Agency Director Chung, Community Services Director Hatch, and James Regan responded to these and other questions of Mr. Wong. . City Manager Pasmant noted that no matter what type of recreation use the City chooses to pursue you are not going to have a project penciling out, meaning that the revenues you collect are going to offset the cost to build it. That is why many months ago it was felt that there was a need to include the commercial elements as well as the golf course to generate revenues. This would help the project pencil out, overall, as a total concept. Mr. Pasmant wanted to ensure there was no misunderstanding on the part of the Council or the audience. He said that the Big League Dreams was never purported to be self-sufficient. Any recreational facility the City would pursue would require some type of assistance from the City, some sort of subsidy. Motion by Herfert and seconded by Sanderson to call for the question. Motion failed 3-2 with Miller and Wong voting no. Councilmember Wong continued with questions, and Susan Harrell of Harrell & Company, the City's financial advisor for this project, addressed those questions relating to the bond issue. Mayor Touhey stated his support for the development and apologized for the treatment given to the consultants and City staff. Action Mayor Touhey stated that a motion was on the floor, made several hours earlier by Herfert and seconded by Sanderson. Motion carried 3-2 with Miller and Wong voting no. City Attorney reminded Council that resolution headings needed to be read. • Redevelopment Agency Action: City Clerk presented: Resolution 560 - RESOLUTION NO. 560 - A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF WEST COVINA, CALIFORNIA (AGENCY) APPROVING A PROS- PECTIVE PURCHASE AGREEMENT AND A PURCHASE AND SALE AGREEMENT WITH BKK, RELATING TO THE Council Minutes 7/6/02 • • DEVELOPMENT OF A MULTI -PURPOSE RECREATIONAL SPORTS PARK AND A COMMERCIAL RETAIL CENTER Motion by Herfert and seconded by Sanderson to waive further reading of the resolution and adopt. City Attorney noted that contained in the motion is the approval of the licenses that are attached to the agreement. Motion carried 5-0. Councilmember Miller reiterated his position — no problem with the purchase of the property. Redevelopment Agency adjourned Motion by Sanderson and seconded by Herfert to adjourn the Redevelopment Agency at 5:45 pm. Motion carried 5-0. City Council Action: City Clerk presented: Resolution 2002-81 RESOLUTION NO. 2002-81 — A RESOLUTION OF THE Maint. & Operation Agree. CITY COUNCIL OF THE CITY OF WEST COVINA, CALI- FORNIA, ("CITY") APPROVING A PLANNING, DESIGN AND CONSTRUCTION CONSULTING SERVICES AGREEMENT AND A LICENSE AGREEMENT WITH BIG LEAGUE DREAMS USA, LL, AND A MAINTENANCE AND OPERATIONS AGREEMENT WITH BIG LEAGUE DREAMS, WEST COVINA, LLC, ALL IN RELATION TO THE DEVELOPMENT AND OPERATION OF A MULTI -PURPOSE RECREATIONAL SPORTS PARK Resolution 2002-82 RESOLUTION NO. 2002-82 — A RESOLUTION OF THE $15,000,000 CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DECLARING ITS INTENTION TO REIM- BURSE CERTAIN EXPENDITURES FROM PROPOSED TAX EXEMPT FINANCING AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS SECTION 1.150-2 ($15,000,000) Resolution 2002-83 RESOLUTION NO. 2002-83 —A RESOLUTION OF THE $25,000,000 CITY COUNCIL OF THE CITY OF WEST COVINA, CALI- FORNIA, DECLARING ITS INTENTION TO REIMBURSE CERTAIN EXPENDITURES FROM PROPOSED TAX EXEMPT FINANCING AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS SECTION 1.150-2 ($25,000,000) Motion by Herfert and seconded by Sanderson to waive further reading of the resolutions and adopt. Councilmember Wong gained Special Counsel Lennard's assurance that there was no requirement of the EPA that the project had to be turned over to Big League Dreams for the City to gain the EPA's approval. Mr. Wong gave a quick recap of his reasons for opposing this project, primarily based on the financials. He said the project is costing the City $13 to $14 million. He also opposed the project from another point and that is that Big League Dreams is not investing in this project; the City bears the entire burden. It's a bad deal for the City of West Covina. Councilmember Miller stated that he didn't think the project was economically sound and that this is going to hurt the City. Action on the foregoing motion to waive further reading and adopt passed 3-2 with Miller and Wong voting no. ri Council Minutes 7/6/02 ADJOURNMENT Motion by Sanderson and seconded by Herfert to adjourn the meeting at 6:05 pm. Motion carried 5-0. MayMichael Touhey i" Attest:', v City Clerk Janet Berry 7