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 EMPLOYEES’ RETIREMENT SYSTEM, AND DECLARING THE URGENCY THEREOF

II-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.

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 Project 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

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

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

Commissioner/Boardmember Hernandez, Lane, Sanderson

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 staff’s 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 Testimony 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.

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.

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)

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

Assistant City Clerk presented:

Resolution No. 2006-60 RESOLUTION NO. 2006-60 — A RESOLUTION OF THE CITY OF WEST COVINA APPROVING A REIMBURSEMENT AGREEMENT WITH THE COMMUNITY DEVELO9PMENT 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

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)

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)

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).

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

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.

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

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.

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 13^th 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 Tem 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 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.

ADJOURNMENT Mayor Herfert adjourned the City Council at 10:36 p.m. Motion carried 4-0.

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