06-29-2006 - Special 2 Meeting - MinutesMINUTES
SPECIAL MEETING OF THE
WEST COVINA CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
and the
PUBLIC FINANCING AUTHORITY
NNE 29, 2006
Mayor Herfert called to order the special joint meeting at 7:08 p.m. in the Council Chambers at City
Hall, 1444 W. Garvey Avenue, West Covina.
PLEDGE OF ALLEGIANCE Mayor Herfert
ROLL CALL Mayor Herfert, Mayor Pro Tern Touhey
Councilmembers Hernandez, Lane, Sanderson
Others Present: Pasmant, Nichols, Fields, Bachman, Yauchzee, McDonald, Hoppe,
McNeill, Durbin, Chung, Lee, Houston, Semblantes, M.
Hernandez, Freeland, Villegas, Briley, Paul, Samaniego, Devera,
Rush
REPORTING OUT FROM CLOSED SESSION
Deputy City Attorney Nichols reported the following:
Prior to convening into closed session, all items on the City
Council and Community Development Commission agendas were
announced for inclusion in the closed session discussion. All
members except Councilmembers/Commissioner Sanderson were
present. Nichols announced there were no reportable actions
taken.
PRESENTATIONS The Economic Development and Housing Presentation was not
presented as scheduled.
PUBLIC COMMENT ON ITEMS ON THE AGENDA
Joanne Wilner Joanne Wilner, West Covina resident, commented on the lease
agreement between the City and the Rose Float Foundation.
Frank Scalfaro Frank Scalfaro, president of the Rose Float Foundation, requested
Council consideration and support to approve the requested funds
to complete renovation of the Heritage House as outlined on the
agenda.
CONSENT CALENDAR Mayor Pro Tern Touhey requested that the funding for the Heritage
House renovation be identified as coming from the Charter
Settlement account.
Miscellaneous — Human Resources
II -a Urgency Ordinance — Retirement Benefit. Enhancement —
Miscellaneous Employees
Recommendation to adopt the following urgency ordinance:
Ordinance No. 2151 ORDINANCE NO. 2151— AN URGENCY ORDINANCE OF
Retirement Benefit — Misc.Emps. THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY
OF WEST COVINA AND THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC
Special Joint Meeting of the City Council, Community Development Commission and Public Financing Authority
June 29, 2006
•
EMPLOYEES' RETIREMENT SYSTEM, AND DECLARING
THE URGENCY THEREOF
Miscellaneous — City Manager's Office
11-b Request for Funds to Complete Renovations of Heritage House by
West Covina Rose Float Foundation
Heritage House Recommendation to approve the West Covina Rose Float
Foundation's request for a $171,000 grant to complete the Heritage
House and authorize the City Manager to execute an agreement
between the City of West Covina and the West Covina Rose Float
Foundation for the renovations of the Heritage House.
Miscellaneous — Finance Department
H-c A City Loan for the City -Wide Project Area
Recommendation, to adopt the following resolution:
Resolution No. 2006-58 RESOLUTION NO. 2006-58 — A RESOLUTION OF THE CITY
City -Wide Project Area COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA,
APPROVING A LOAN TO THE WEST COVINA
COMMUNITY DEVELOPMENT COMMISSION FOR THE
PAYMENT OF. PROJECT AND ADMINISTRATIVE
EXPENSES FOR THE CITY-WIDE PROJECT AREA
II-d City Loan for the West Covina Redevelopment Protect Area
Recommendation to adopt the following resolution:
Resolution No. 2006-59 RESOLUTION NO.2006-59 — A RESOLUTION OF THE CITY
Redevelopment Project Area COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA,
APPROVING A LOAN TO THE WEST COVINA
COMMUNITY. DEVELOPMENT COMMISSION FOR THE
PAYMENT OF PROJECT AND ADMINISTRATIVE
EXPENSES FOR THE WEST COVINA REDEVELOPMENT
PROJECT AREA
Award of Bid
II-e Award of Contract for High Resolution Digital Aerial
Orthophotography and Topographic Mapping
(Project No. GP-06404)
Digital Aerial Mapping Recommendation to the proposal from Digital Map Projects, Inc.,
in the amount of $64,750 and authorize the Public Works Director/
City Engineer and City Clerk to execute a Consultant Agreement
with said consultant to provide new high -resolution aerial
photography (orthophotos), photo index (hardcopy and digital),
and 2-foot contour topographic mapping.
CONSENT CALENDAR ACTION Motion by Touhey and seconded by Lane to waive further reading
of the ordinance and resolutions and adopt, and approve all other
items noting that the funding for the Heritage House is from the
Charter Settlement Funds. Motion carried by the following roll
call vote.
AYES: Hernandez, Lane, Sanderson, Touhey, Herfert
NOES: None
JOINT PUBLIC HEARING Mayor Herfert moved forward Item VI and called to order the
Community Development Commission and Public Financing
Authority at 7:16 p.m.
ROLL CALL Chairman Herfert, Vice Chairman Touhey
CommissionerBoardmember Hernandez, Lane, Sanderson
2
Special Joint Meeting of the City Council, Community Development Commission and Public Financing Authority
June 29, 2006
is
C7
VI JOINT PUBLIC HEARING OF THE CITY COUNCIL,
COMMUNITY DEVELOPMENT COMMISSION AND
PUBLIC FINANCING AUTHORITY — SPORTS PARK
PROJECT
Deputy City Attorney Nichols explained the procedure of the
hearing with the three different actions required.
Mayor Herfert announced the public hearing matter and Assistant
City Clerk Rush verified that proper legal notice had been given.
Following a video highlighting Big League Dreams Mayor Herfert
opened the public hearing.
Public Works Director Yauchzee presented the staff report,
which outlined the proposed project and the bid process for the Big
League Dreams baseball facility and infrastructure construction.
Finance Director Bachman addressed the reimbursement
agreement, transfer of property from the Community Development
Commission to the City, the financing plan and issuance of bonds.
Mr. Yauchzee added that even though staffs recommendation
includes extending the current construction management contract,
options could be brought back if Council desired.
City Manager Pasmant briefly described the progression of
the project since the decision to establish recreational uses at the
BKK site approximately four years ago.
Public Testimonv
The following spoke regarding the proposed project.
In favor Ron Odekirk, representative of Big League Dreams, reported that
BLD is a success at all their other locations, serving both adults
and youth.
Glen Kennedy, West Covina resident, spoke in favor of the project.
Michael Rodriguez, West Covina resident, supported the project
and stated that BLD facilities are always filled with participants
and encouraged keeping the restaurant at the site.
Brad McFadden, West Covina resident, spoke in favor and
encouraged the Council and community to support the project.
John Scheuplein, West Covina resident, stated his support of the
project.
Don Carmen, West Covina resident, voiced his support and asked,
if not this project, what, and if not now, when.
Cookie Nance, West Covina residents, voiced her support in
moving forward with the project.
In opposition Joanne Wilner, West Covina resident, voiced her opposition to the
project.
Diane Kelly, West Covina resident, opposed the project stating it is
not affordable and commented on the indebtedness of the City.
Neutral Royall Brown, West Covina resident, supported some aspects of
the project and opposed others and urged the Council to redesign
the project and re -bid.
Bruce Leinbach, West Covina resident, commented on the funding
sources for the project and felt the citizens should vote on the
revenue bonds.
K
Special Joint Meeting of the City Council, Community Development Commission and Public Financing Authority
June 29.2006
Katherine Castucci, West Covina resident, felt Council should
consider staff input and move forward with the project.
Staff responded to questions regarding sales tax revenue and types
of funds being used for the project, the city's current outstanding
debt, city's reserves, and infrastructure costs.
• Mayor Herfert stated any speakers who are in favor of the project
may provide a rebuttal to those who spoke in opposition.
Brad McFadden, West Covina resident, requested staff keep the
public informed regarding the paying down of the bonds and
money to be generated.
John Scheuplein, West Covina resident, clarified comments by
previous speaker regarding elements of the infrastructure
construction.
Ron Odekirk, representative of BLD, clarified and earlier comment
that BLD is primarily an adult park, stating there are more youth
teams that play over the course of a year than adult teams.
Katherine Castucci, West Covina resident, commented on "quotes"
contained in a report she received from a citizen and urged others
who might have received them to disregard them as there hasn't
been any time to verify them.
Testimony Closed Mayor Herfert closed the public testimony portion of the hearing
and asked for Council discussion.
Councilmember Hernandez inquired as to the amount of the bonds
and how it would be paid back elaborating.of the use of tax
increment dollars. Finance Director Bachman stated the funding
sources to service the debt and also stated that interest income
from a bond reserve fund would be used.
Councilmember Hernandez engaged with staff in an
extensive discussion as to the affordability of the project and
whether it is a prudent way to spend redevelopment tax increment
dollars.
Council Discussion Mayor Pro Tem Touhey addressed indebtedness of the City that
was brought forward by a resident and commented on the need to
construct the infrastructure. Touhey stated that the facilities
proposed for the sportspark are owned by the City and not BLD,
that they would only manage the sportspark during the term of
their contract. Mayor Pro Tem Touhey supported the entire
project.
Councilmember Sanderson supported the project stating that it
would bridge the north and the south sides of the City. Sanderson
supported staff recommendation to move forward with the project
as outlined in the staff report.
• Councilmember Hernandez stated that at the onset of his term he
did support the Big League Dreams project as it provided a benefit
to the community when the project was economically sound.
Hernandez stated the cost now would have an adverse effect on the
City's ability to reinvest tax increment money. Councilmember
Hernandez asked for Council's willingness to look at options.
Councilmember Lane said she is excited about the project and saw
this project as an opportunity to give back to the community.
EI
Special Joint Meeting of the City Council, Community Development Commission and Public Financing Authority
June 29, 2006
Mayor Herfert stated the city is financially secure and will not be
using any unrestricted General Fund revenue on this project.
Mayor Herfert further stated that the bonds would be paid back
from revenues generated by Big League Dreams. He also stated
that there would be huge spin-off revenue, benefiting all the
businesses in the area.
• Councilmember Hernandez initiated discussion regarding the
repayment of the bond and the use of tax increment money for that
repayment.
VI -A Award of Bid for the Big League Dreams Baseball Facility and
Infrastructure Construction (Project No. BP-06310)
Award of Bid Motion by Herfert and seconded by Sanderson to approve the bid
for the project: (Alternative 1)
a) Establish Project No. BP-06310 (Sportsplex Big League
Dreams Baseball Facilities and related infrastructure, roadway,
storm drain, and utilities construction).
b) Accept the bid of Mallcreaft, Inc., in the amount of $34,590483
(correct from actual Base Contract Total of $34,680,483 due to
a clerical error) as submitted at the bid opening on June 26,
2006, and authorize the Public Works Director/City Engineer
and the City Clerk to execute the contract.
c) Approve a contract with MTGL, Inc., of Moreno Valley,
California, for special inspection and testing services in the
amount of $180,000.
d) Direct staff to extend the contract with Heinbuch Golf, LLC for
the construction management and oversight of this project at an
amount of $576,000.
e) Direct staff to award this contract and perform all project -
related Jurisdictional Agency administrative tasks required for
this project's successful completion.
Motion carried 4-1 (Hernandez no)
VI-B Reimbursement by the Community Development Commission
of the City of West Covina to the City of West Covina for Costs
Incurred in Planning, Constructing and Financing the West
Covina Sports Park; and Transfer of Real Property Located at
2100 S. Azusa, West Covina, CA (BLD Site) from the
Community Development Commission of the City of West
Covina to the City of West Covina
City Council Action:
Assistant City Clerk presented:
Resolution No. 2006-60 RESOL•UTION NO. 2006-60 — A RESOLUTION OF THE CITY
OF WEST COVINA APPROVING A REIMBURSEMENT
AGREEMENT WITH THE COMMUNITY DEVEL09PMENT
COMMISSION OF THE CITY OF WEST COVINA AND THE
EXPENDITURE OF TAX INCREMENT FUNDS FOR THE
DEVELOPMENT OF PUBLIC FACILITIES, AND MAKING
ASSOCIATED FINDINGS
Resolution No. 2006-61 RESOLUTION NO. 2006-61 — A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF WEST COVINA CONSENTING
• TO THE EXECUTION OF THE REAL PROPERTY
CONVEYANCE AGREEMENT BY AND BETWEEN THE
CITY OF WEST COVINA AND THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF WEST
COVINA, AND MAKING CERTAIN FINDINGS N
CONNECTION THEREWITH
E
Special Joint Meeting of the City Council, Community Development Commission and Public Financing Authority
June 29, 2006
Motion by Touhey and seconded by Lane to waive further reading
of the resolutions, read by title only and adopt. Motion carried 4-1
(Hernandez no)
Community Development Commission Action:
Assistant Secretary presented:
Resolution No. 585 RESOLUTION NO. 585 — A RESOLUTION OF THE
• COMMUNITY DEVE3LOPMENT COMMISSION OF THE
CITY OF WEST COVINA APPROVING A REIMBURSEMENT
AGREEMENT WITH THE CITY OF WEST COVINA, AND
MAKING ASSOCIATED FINDINGS
Resolution No. 586 RESOLUTION NO. 586 — A RESOLUTION OF THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF WEST COVINA APPROVING A REAL PROPERTY
CONVEYANCE AGREEMENT BY AND BETWEEN THE
CITY OF WEST COVINA, AND THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF WEST
COVINA, AND MAKING CERTAIN FINDINGS IN
CONNECTION THEREWITH
Motion by Sanderson and seconded by Touhey to waive further
reading of the resolutions, read by title only and adopt. Motion
carried 4-1 (Hernandez no)
VI-C Issuance of Lease Revenue Bonds, 2006 Series A (Big League
Dreams Project) and 2006 Series B (Taxable) (Big League
Dreams Project)
City Council Action:
Assistant City Clerk presented:
Resolution No 2006-62 RESOLUTION NO. 2006-62 —'A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF WEST COVINA, APPROVING A
SITE AND FACILITY LEASE, A LEASE AGREEMENT, A
CONTINUING DISCLOSURE AGREEMENT, AND A BOND
PURCHASE AGREEMENT; AND AUTHORIZING THE
TAKING OF CERTAIN OTHER ACTINS IN CONNECTION
THEREWITH
Motion by Sanderson and seconded by Touhey to waive further
reading of the resolution, read by title only and adopt. Motion
carried 4-1 (Hernandez no).
Public Financing Authority Action:
Assistant Secretary presented:
Resolution No. 19 RESOLUTION NO. 19 — A RESOLUTION OF THE WEST
COVINA PUBLIC FINANCING AUTHORITY APPROVING
THE "ISSUANCE OF ITS LEASE REVENUE BONDS, 2006
SERIES A (BIG LEAGUE DREAMS PROJECT) AND LEASE
REVENUE BONDS, 2006 SERIES B (TAXABLE) (BIG
LEAGUES DREAMS PROJECT) IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000; AND
APPROVING AN INDENTURE, A SITE AND FACILITY
LEASE, A LEASE AGREEMENT, AN ASSIGNMENT
• AGREEMENT, [A BOND PURCHASE AGREEMENT], A
PRELIMINARY OFFICIAL STATEMENT, A FINAL OFFICIAL
STATEMENT IN CONNECTION THEREWITH, A FIRST
SUPPLEMENTAL INDENTURE, AND AUTHORIZING THE
TAKING OF CERTAIN OTHER ACTINS IN CONNECTION
THEREWITH
3
Special Joint Meeting of the City Council, Community Development Commission and Public Financing Authority
June 29, 2006
r�
Motion by Sanderson and seconded by Touhey to waive further
reading of the resolution, read by title only and adopt. Motion
carried 4-1 (Hernandez no).
Following the action taken, Mayor Touhey commented on the
City's reserves and the financial stability of the City.
COMMUNITY DEVELOPMENT COMMISSION CONSENT CALENDAR
III -a City Loan for the West Covina Citywide Project Area
Recommendation to adopt the following resolution:
Resolution No. 587 RESOLUTION NO. 587 — A RESOLUTION OF THE CITY OF
Citywide Project Area WEST COVINA COMMUNITY DEVELOPMENT
COMMISSION REQUESTING A LOAN FROM THE CITY OF
WEST COVINA FOR PROJECT EXPENSES FOR THE
CITYWIDE PROJECT AREA
III-b City Loan for the West Covina Redevelopment Project Area
Recommendation to adopt the following resolution:
Resolution No. 588 RESOLUTION NO. 588 — A RESOLUTION OF THE CITY OF
RDA Project Area WEST COVINA COMMUNITY DEVELOPMENT
COMMISSION REQUESTING A LOAN FROM THE CITY OF
WEST COVINA FOR PROJECT EXPENSES FOR THE WEST
COVINA REDEVELOPMENT PROJECT AREA
CONSENT CALENDAR ACTION Motion by Sanderson and seconded by Lane to waive further
reading of the resolutions and adopt. Motion carried by the
following roll call vote.
AYES: Hernandez, Lane, Sanderson, Touhey, Herfert
NOES: None
IV PUBLIC HEARING
WESTCOVINA AUTO PLAZA BUSINESS IMPROVEMENT
DISTRICT 2006-07 ANNUAL REPORT AND ASSESSMENT
Mayor Herfert announced the public hearing matter and Assistant
City Clerk Rush verified that proper legal notice had been given.
Mayor Herfert proceeded to open the hearing. Community
Development Director Chung presented the staff report.
Public Testimony Herb Redholtz, West Covina resident urged all members of the
Auto Center Association to participate in the rehabilitation of the
readerboard sign.
Testimony Closed With no further public comments, Mayor Herfert closed the public
testimony portion of the hearing.
Assistant City Clerk Rush presented the following resolution:
Resolution No. 2006-63 RESOLUTION NO.2006-63 — A RESOLUTION OF THE CITY
Auto Plaza Annual Report COUNCIL OF THE CITY OF WEST COVINA CONFIRMING
THE ANNUAL REPORT FOR THE WEST COVINA AUTO
PLAZA BUSINESS IMPROVEMENT DISTRICT AREA FOR
• FISCAL YEAR 2006-07
Motion by Touhey and seconded by Lane to waive further reading
of the resolution and adopt. Motion carried 5-0.
Recess Mayor Herfert called for a recess at 9:50 p.m. Special meeting
reconvened at 10:00 with all members present except
Councilmember Sanderson who left for the evening during the
recess.
7
Special Joint Meeting of the City Council, Community Development Commission and Public Financing Authority
June 29, 2006
V 2006-2007 and 2007-2008 FISCAL YEAR PRELIMINARY
BUDGET PREVIEW
Finance Director Bachman presented a brief report with a
PowerPoint presentation that gave an overview of the 2006-2008
two-year budget.
• Mayor Herfert requested his colleagues move forward with
adopting the budget and requested the Council actions items
brought up at the June 13a' be a work in progress and brought back
for Council review in September.
John Scheuplein, West Covina resident, addressed the need for
additional police officers and the impact the shortage of officers is
having on the police department.
Joanne Wilner, West Covina resident, commented on the
architecture of the City Hall building and the proposed enclosure
of the first floor.
Bernie Wilner, West Covina resident, asked the Council to
consider investigating the possibility of a golf academy and
practice center at the Sportsplex site.
Finance Director Bachman also recommended part of the budget to
include, from surplus generated from FY 2005-06, an
appropriation of $1,000,000 to the Vehicle Replacement Fund and
to eliminate $250,000 transfer from the WCSG Enterprise Fund
into the FY 2005-06 budget.
Mayor Pro Tern Touhey stated his support for the Finance
Director's recommendations of surplus funds and voiced his
support of additional police officers. Touhey also expressed his
concern with the San Gabriel Valley Economic Partnership's
candidate endorsement with non-profit funds. Mayor Pro Tem
Touhey requested a report from staff regarding this matter.
Assistant City Clerk presented
Resolution No. 2006-64 RESOLUTION NO. 2006-64 — A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA,
ADOPTING THE CITY OF WEST COVINA OPERATING
BUDGET, COMMUNITY DEVELOPMENT COMMISSION
BUDGET, CAPITAL IMPROVEMENT PROGRAM AND
LOCAL ENFORCEMENT AGENCY BUDGET AND
APPROVING THE APPROPRIATIONS FOR THE FISCAL
YEAR COMMENCING JULY 1, 2006 AND ENDING JUNE 30,
2007 AND THE FISCAL YEAR COMMENCING JULY 1, 2007
AND ENDING JUNE 30, 2008
Motion by Herfert and seconded by Touhey to waive further
reading of the resolution and adopt. Motion carried 4-0.
Adjournment of CDC and PFA Motion by Herfert and seconded by Hernandez to adjourn the
Community Development Commission and the Public Financing
0 Authority at 10:27 p.m. Motion carried 4-0.
COUNCIL COMMENTS Councilmember Hernandez request that 1) projected sales tax
revenue from the commercial development at the BKK site be
earmarked for public safety and 2) consideration of a study for an
in-house attorney (for all aspects of work currently conducted by
the city attorney) be agendized for the next Council meeting.
3
Special Joint Meeting of the City Council, Community Development Commission and Public Financing Authority
June 29, 2006 .
•
•
ADJOURNMENT Mayor Herfert adjourned the City Council at 10:36 p.m. Motion
carried 4-0.
Submit d by
Assistant City dlerk Susan Rush
a��
Mayor Steve Hi
rf rt
0