07-06-2002 - Regular Meeting - MinutesE
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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
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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.
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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
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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.
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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
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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.
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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
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