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Cerritos City Council Meeting Minutes

MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CERRITOS HELD NOVEMBER 8, 2007

CALL TO ORDER

The meeting was called to order at 7:00 p.m. in the Council Chambers at Cerritos City Hall, 18125 Bloomfield Avenue, Cerritos, California.

INVOCATION

Reverend Charlie Ara (Retired) offered the invocation.

PLEDGE OF ALLEGIANCE

Boy Scout Troop 1005 led the assembly in the salute to the flag.

ROLL CALL

The City Clerk noted attendance of the following Members of the City Council:

Councilman Bruce W. Barrows

Councilman Joseph Cho, Ph.D.

Councilman John F. Crawley

Mayor Pro Tem Jim Edwards

Mayor Laura Lee

PUBLIC COMMENTS AND SUGGESTIONS

Merri Wheaton, Cerritos resident, offered a prayer.

Chris Fuentes, Cerritos resident, indicated that he was unable to attend the October 11, 2007 City Council meeting at which the Dial-A-Ride program was considered, and offered that services such as Dial-A-Ride would be needed with the increased creation of senior housing in the community.  He suggested the use of additional statistics and other pertinent information to ensure that the program is addressing the needs of senior residents.

Gloria Kasilag, Cerritos resident, reiterated her request for use of artificial grass as an approved landscaping material, which she presented at the September 27, 2007 City Council meeting.  She asked for a variance from the prohibition, citing water shortages and global warming.

Diosdado De Leon, Cerritos resident, was asked to present his comments regarding the proposed affordable senior housing project during the public hearing for that item.

CONSENT CALENDAR ITEMS

Approval of Register of Demands

MOTION:  It was moved by Mayor Pro Tem Edwards and seconded by Councilman Barrows to approve the Register of Demands dated November 8, 2007, Checks 94844 through 95160 in the total amount of $7,240,189.31.  The motion carried unanimously.

Approval of Minutes

MOTION:  It was moved by Mayor Pro Tem Edwards and seconded by Councilman Barrows to approve the minutes of the October 25, 2007 Regular City Council Meeting, as modified, and the November 1, 2007 Joint Special Meeting of the Cerritos City Council and Cerritos Redevelopment Agency.  The motion carried unanimously

Ordinance for second reading and adoption.  Reading of ordinance waived and ordinance adopted.

ORDINANCE NO. 929 – AN ORDINANCE OF THE CITY OF CERRITOS ADDING CHAPTER 6.10 TO THE CERRITOS MUNICIPAL CODE PERTAINING TO CONSTRUCTION AND DEMOLITION DEBRIS DIVERSION.

MOTION:  It was moved by Mayor Pro Tem Edwards and seconded by Councilman Barrows to waive reading of and adopt Ordinance No. 929 entitled AN ORDINANCE OF THE CITY OF CERRITOS ADDING CHAPTER 6.10 TO THE CERRITOS MUNICIPAL CODE PERTAINING TO CONSTRUCTION AND DEMOLITION DEBRIS DIVERSION.

The motion carried by the following vote:

AYES:          Councilmembers        -     Barrows, Cho, Crawley, Edwards, Lee

NOES:          Councilmembers        -     None

ABSENT:     Councilmembers        -     None

ABSTAIN:    Councilmembers        -     None

Miscellaneous

Consideration and award of Bid No. 1061-08, purchase of one new one-ton flatbed truck.

MOTION:  It was moved by Mayor Pro Tem Edwards and seconded by Councilman Barrows to award Bid No. 1061-08 for the purchase of one new one-ton flatbed truck to Villa Ford in the amount of $29,257.64.  The motion carried unanimously.

PUBLIC HEARINGS

Consideration to waive reading of and adopt A JOINT RESOLUTION OF THE CERRITOS CITY COUNCIL, CERRITOS REDEVELOPMENT AGENCY, AND CUESTA VILLAS HOUSING CORPORATION CERTIFYING THE MITIGATED NEGATIVE DECLARATION AND AUTHORIZING THE EXECUTION OF AN AFFORDABLE HOUSING, FINANCING, AND DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE CONSTRUCTION OF AN AFFORDABLE SENIOR HOUSING COMMUNITY FOR INDIVIDUALS AGE 55 OR OLDER, A SENIOR RECREATION CENTER, AND A ±4.04-ACRE PARK LOCATED AT 16700 NORWALK BOULEVARD IN CERRITOS (APN 7012-001-900), THE REMODEL OF AN EXISTING BUILDING LOCATED AT 12880 MOORE STREET IN CERRITOS (APN 7010-016-030) TO ACCOMMODATE A KITCHEN/WAREHOUSE FACILITY FOR STUDENT LUNCH PREPARATION, AND THE REMODEL OF AN EXISTING BUILDING LOCATED AT 12881 166TH STREET IN CERRITOS (APN 7010-016-032) TO ACCOMMODATE ADMINISTRATIVE OFFICES, AND MAKING FINDINGS PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTIONS 33431, 33433, 33445, AND 33679 REGARDING THE CONVEYANCE OF INTEREST IN AND/OR PURCHASE OF SAID PROPERTIES.

The Chair declared the public hearing open and called for a report from staff.

Advance Planning/Redevelopment Manager Lopez provided a review of the staff report dated November 8, 2007.

At the request of the Council, the City Manager provided an overview of the redevelopment tax increment process, including housing set-aside restrictions, as they relate to state affordable housing mandates.  It was also noted that notices of this hearing were mailed to all residential property addresses in the City, both renters and owners. 

An inquiry was made by Councilman Barrows as to authorization for the formation of the Cuesta Villas Housing Corporation Board of Directors.

Additional discussion ensued regarding the proportional increase in the State's maximum affordable rent levels to the ground lease; restrictions on the use of set-aside monies on housing and the reverting back to the County if not spent on housing; School District rent payments; and future options for borrowing from the City to the Agency and the selling of bonds.

It was noted that written correspondence was received from Cerritos resident Jim McMahon on November 7, 2007, with a subject line:  Disapproval of proposed Cuesta Villas joint venture.

Interested parties were invited to present testimony.

Chris Fuentes, Cerritos resident, expressed a preference for the initial proposal for workforce housing and asked if a senior housing needs analysis had been undertaken, noting that there are service factors associated with seniors that require attention.

Charles Ara, Cerritos resident, suggested a component in this project for young,

low-income families.

Benjamin Ao, Cerritos resident and Acting President of United Homeowners Alliance, asserted that taxpayers generate redevelopment tax increment; questioned the components of the project that are not directly related to affordable housing and the use of redevelopment funding for those components; suggested that the proposal is being undertaken to spend set-aside funds to avoid future housing mandates; stated that the United HOA never opposed workforce housing; opined the proposal is a waste of taxpayer dollars; and demanded that the entire negotiation process for the purchase of the Moore Street/166th Street properties be made public.

Peggy Paddock, Cerritos resident, referenced petitions that were submitted to the City asking that the proposal be placed on the ballot.  She posed questions as to whether or not the voter approval request had been placed on a City Council agenda for consideration; if there is an implication that voters do not have the right to vote on the proposal or do not understand the proposal; and why the Council refuses to allow a vote on the matter.

Kuorong Chiang, Cerritos resident, requested clarification of the public versus private nature of the non-profit, public benefit corporation with regard to appointment of officers, compensation of officers, and next generation inheritance taxes.  He asserted that there is conflict of interest in this regard and urged a vote against the proposal.

Gavin Riley, Cerritos resident, retired ABC Unified School District teacher and teacher’s union representative, indicated that the teacher's union supports the proposal.  He commented on the significantly higher Regional Housing Needs Assessment allocations in other area cities; noted the potential effects of market apartment rents on seniors; asserted that ABC School District's declining enrollment is less than in other Los Angeles and Orange County districts because ABC attracts students; opined that the recent School District election was a referendum in support of the project; and that assertions that the School District had squandered $19 million dollars are unfounded.

Diosdado De Leon, Cerritos resident, demanded that Mayor Lee resign due to his assertion that a conflict of interest exists stemming from her status as a real estate broker and demanded that the project be canceled because it proposes the fleecing of money from very low, low and moderate income seniors in exchange for education of students.  He commented on the anticipated pursuit of legal action if his demands are not met.

Jim Bugher, Cerritos resident, asserted that the proposal totally favors the School Board with very little benefit to the City, noting that fulfilling the housing mandates could be met in different ways.  He added that the matter should be put to a vote of the residents and that two Councilmembers should recuse themselves from consideration of this proposal due to conflicts of interest.

Randy Economy, Cerritos resident, called for accountability from two Councilmembers who received support from the United Homeowners Alliance, and asserted that residents voted for them because a vote for them was a vote against the project.  He commented that the project has undergone too many changes in an attempt to skirt the law and expressed his opposition to the proposal.

Gordon Quan, Cerritos resident, questioned the anticipated 99% occupancy rate, stating that a 90% rate was more reasonable, which he indicated could affect cash flow equally in a positive or negative direction.  He suggested the City locate the proposed affordable senior housing project at either the Moore Street or 166th Street properties, thereby eliminating the School District from the project, and urged a thorough evaluation of the proposal to ensure its economic viability now and in the future.

Bharat Pathak, Cerritos resident, noted his opposition to the project, expressing that it represents a conflict of interest between the City and the School Board, and he asserted that the projected design/engineering costs for the proposal were significantly lower than the industry standard.  Mr. Pathak indicated he could not recall that action was taken at a City Council meeting to appoint the Council as Directors of the Corporation, and if this had not occurred, the proposal should be scrapped.  He added that based on personal commitments of opposition to the project, he voted for Councilmembers Barrows and Cho at the last City election.

Harry Hour, commented that the City of Sunnyvale is the only other City that has undertaken a similar housing arrangement and was forced to purchase the leased land because the owner wanted it back.  He questioned the viability of the lease option arrangement with the School District, asserted that funding would be required from the general fund to undertake the project, and stated that the purchase of the Moore Street/166th Street properties would benefit the tenants of those properties.  Mr. Hour argued that the proposal represents a conflict of interest, indicating he had supported successful candidates, but has lost his trust in the Council.

Tom Mulvihill, Cerritos resident, expressed his opposition to the proposal, stating that a proposal involving the School District, Regional Housing Needs Assessment, and real estate is too complex and a bad idea; that there are two Councilmembers closely tied to the School District; that an election should be called to decide the matter; and that the public's opinions should not be dismissed.  He requested clarification regarding the Council becoming part of the Corporation and the precedent to give City funds to the School District; and asked for examples of other cities that have lost housing money due to non-compliance with Regional Housing Needs Assessment mandates.  Mr. Mulvihill asserted that the occupancy rate assumption should be 75% not 99%; that the City, through this proposal, is asking citizens to financially carry the School District; that the proposal is not fiscally responsible; and that although we should do what we can for the School District, its priority is on average daily attendance monies rather than education.

At the request of the Council, the City Manager discussed the Avalon at Cerritos senior facility, which is occupied at nearly 100% with a one-year waiting list for low and very low income units, as a precedent for a similar proposal with the College District involving a 50-year property lease, with rents flowing to the District, and after the term of the lease, the property and improvements reverting back to the District.  He commented further on a number of joint projects with the School District, and pointed out that at its June 14, 2007 City Council meeting the City Council authorized City staff to proceed with the formation of a non-profit organization to own and operate the proposed senior housing project on behalf of the Cerritos Redevelopment Agency and the ABC Unified School District.

RECESS AND RECONVENE

A recess was called at 9:05 p.m.  The meeting reconvened at 9:15 p.m. with all members in attendance.

Dale Brown, Cerritos resident, indicated that the City should maintain control of monies being provided to the School District as part of this proposal.  He inquired about the following:  assurances that the difference in housing units between the 95 required Regional Housing Needs Assessment units and the proposed 247 units can be applied to future year's allocations; justification that of the required 95 affordable units, only 25 must be low income; suggestion to build affordable housing on the Moore Street property, which he estimates can accommodate 103 units and meet the 95-unit requirement; clarification of the lease term at 59 years rather than 55 years, since construction completion is anticipated in 2014; and clarification of the market value of the School District property as it relates to the lease terms.  He also requested comment on what would occur if the Corporation does not receive tax exempt status; the meaning of commencement of the ground lease payment coinciding with the commencement of the 55-year ground lease term; the consequences of the park reverting back to the School District on the lease payments; and the effect on the Corporation at the end of the tax increment stream in 2026.

Helen Ahn, Cerritos resident, indicated she is an educator who opposes the housing project.  She referenced the matter of conflict of interest and posed questions to Councilmembers, in particular Mayor Lee with regard to a former business relationship with Remax Select owner Gary Howard, her real estate business, and alleged statements regarding the project bringing more real estate businesses to Cerritos; Mayor Pro Tem Edwards with regard to part-time teaching for the School District and retirement benefits from the School District; and Councilman Barrows with regard to his wife's employment with the School District.  She suggested the matter be placed before the voters if a fair, unbiased and unimpeded decision in this matter is not possible.

Ken Cha, Cerritos resident, indicated that non-compliance of the housing mandates would result in outside agencies building low income housing in Cerritos; stated the project is beneficial to all concerned; and urged the Council to approve the project, asserting that a silent majority is in favor of that action.

David Shaffer, Cerritos resident, indicated that the Council should represent the viewpoint of the people and asked for a show of hands of those present who are against and in favor of the project, noting that most of those in the audience are against the project.  He encouraged those in support of the project to come to the Council meeting to express their views; referenced a newspaper article where a suggestion for a petition was made; and indicated that the City should maintain control over management of the funds.  

Herman Bryan, Cerritos resident, spoke in support of the proposal.

Richard Hong, Cerritos resident, concurred with the comments of Mr. Brown to construct affordable housing on the Moore Street property as a low cost, no risk alternative; asked why the units being proposed are rental units and if other forms of housing could be considered; and suggested the intent of the proposal is to transfer money to the School District.

Sally Havice, Cerritos resident, asked if other plans or locations for this proposal had been considered by the Council and suggested the possibility of building 95 affordable units at another location in Area Development Plan One.  She questioned the intent of the proposal to help the School District, asserting the City had deleted a provision from a 1998 bill she carried for the City that would have provided a certain amount of redevelopment agency funding to school districts.

John Transue, Cerritos resident, opposed the project, and in referencing the 2005-2006 school accountability report for Cerritos High School, questioned the School District's ability to properly manage its finances.  He opined that based on the documents provided in the staff report, the true term of the lease agreement would be 59 to 60 years, not 55 years; and asserted that the senior center component of the project would benefit only those residents of the affordable senior apartments.

Cecy Groom, Cerritos resident and ABC Unified School District Board Member, expressed opposition to the proposal and opined that the City is becoming an enabler for the School District's bad accounting and misuse of funds.  She indicated the initial opinion from the State Legislative Counsel, which stated in part that the proposal involves a low rent housing project that would be subject to the local voter approval requirement set forth in Section 1 of Article 34 of the California Constitution, has not changed. 

Robert Gray, Cerritos resident, expressed that this issue is so controversial, the City Council should make it a ballot measure to allow the electorate to decide the matter.

Paul Bellenbaum, Cerritos resident, suggested that the City Council place this matter on the ballot.

No one else wished to present testimony, and the public hearing was closed.

Mayor Lee commented on acceptable discourse during public debate at a Council meeting and discouraged comments against staff.  She indicated that she is a real estate broker and that all Councilmembers bring a different perspective and contribute in different ways to the decision-making process.  Mayor Lee also indicated that she never suggested that residents give their houses to their children as a means of becoming eligible for affordable housing.

At the request of the City Council, City Manager Gallucci responded to inquiries presented during public testimony as follows:  different types of affordable housing were considered for this proposal, with senior housing ultimately being proposed in response to concerns that were raised relating to the potential of gangs and gang-related activities that might be associated with other types of housing such as workforce investment housing; redevelopment set-aside funds can only be used for housing, notwithstanding the fact that these funds have been generated through the tax process; this matter can be placed on the ballot, although it is not a requirement based on the City's interpretation of Article 34, with a final determination to be achieved through a validation lawsuit most likely from a court in the Bellflower or Norwalk Superior Courts; it is being recommended that appointed Board Members of the Corporation will receive no compensation; the City has met its Regional Housing Needs Assessment (RHNA) obligations for the past seven years and if a city does not meet its RHNA obligations they are carried over to the next seven-year period; the projected $140,000 cash flow is a minimum amount that will be transferred to the trust fund for operational expenses, with the potential likelihood for future transfers from set-asides; preliminary cost estimates for engineering/design work are at the level suggested by staff because firms are in need of work; the lease arrangement with the School District and building on leased land is not unusual; all of the City's affordable senior housing projects have been viable and profitable, however, there are cities in California that have lost money on affordable housing; other projects the City has partnered with the School District in the past have been successful; the housing mandate is for 95 units, however, 247 is being proposed in anticipation of proposed legislation that would allow the carry-over of excess units, anticipated growth for affordable senior housing, and the income stream to the School District; the mandate for very low and low units is 25; affordable apartments are being proposed because the state identified that type of housing need for Cerritos; the State has indicated the next mandate would call for affordable family housing; the figure of the income stream was derived from the income stream from the number of units and the rents allowed by the Federal government; after its initial formation, the Corporation will be an independent agency separate from the Council, with the Board of Directors receiving no compensation; it is unlikely the property would be required for a school in the future given legislation that prohibits constructing schools within one-half mile of a freeway and this property is located within hundreds of feet of the Route 91 Freeway; the City has done its due diligence with regard to projections made for this proposal; dollars that flow from the property will continue to go to the trust fund regardless if the School District exercises its option to purchase the property or continues to lease; the validation lawsuit will determine if transfer of funds to the Corporation is legal; through legislative negotiations in the State Senate in 1998, that portion of the City's bill to extend the life of the Redevelopment Agency that provided for funding for school districts was deleted; the lease will not start until 70% occupancy in order to protect the City because that is when the flow of funds is enough to pay the District; and the validation lawsuit will address Article 34 compliance issues.

Mayor Lee reiterated that initially workforce housing was a consideration until fear regarding possible criminal elements changed the focus to senior housing.  In response to Ms. Ahn's comments, Mayor Lee indicated that she worked for Gary Howard in the past and had not talked with Mr. Howard since last year.  She continued that she has not yet voted on this matter and that she has no conflict of interest with this proposal.

City Attorney Steres observed that some speakers had made allegations that certain Councilmembers had conflicts of interests and should not participate or vote on this matter.  He indicated that the fact that a Councilmember is a real estate agent or broker, or that a Councilmember is a former teacher, or a Councilmember is a teacher in another district, or a Councilmember has a spouse that is an employee of the school district, none of those facts are legal conflicts of interest.  Mr. Steres added that he has not seen any reason why any one of the Councilmembers sitting here tonight cannot participate, and he encouraged them to do so.

RECESS AND RECONVENE

A recess was called at 10:30 p.m.  The meeting reconvened at 10:45 p.m. with all members in attendance.

Councilman Barrows confirmed that pertinent parts of the proposal will be reviewed by the Parks and Recreation Commission and Planning Commission, as appropriate; and that if approved, the development would be subject to the City's Art in Public Places Program, with the potential allocation of more funding for a public art project associated with this proposal, as the Council deems appropriate.  He expressed that the preference system should favor City residents and indicated he could not vote for the proposal if the District's ground lease guarantee payment remained.  With regard to Article 34, Councilman Barrows indicated that other larger cities in similar circumstances had placed the matter before the electorate and recommended the City do the same.  He referenced the June 14, 2007 agenda report regarding the creation of the non-profit corporation, indicating that there was a difference in interpretation between his understanding that it would come back to the Council and staff's interpretation that it had been authorized.

Councilman Crawley made the following observations:  the validation lawsuit will determine whether the Article 34 requirement for an election is applicable for this proposal; redevelopment money can only be used for buildings and construction and cannot be used for salaries or other expenditures; the State of California is mandating the 20% set-aside money for housing as well as the Regional Housing Needs Assessment requiring affordable housing, not the City; the School District site is not a school site, but an administration building site and this proposal is providing an opportunity to bring additional dollars to the School District, while building the housing at another location would not result in that same benefit; the School District will own the property, the City is not purchasing the property; the housing units will be well-constructed and attractive, as are other senior housing projects in the City, and addresses the concerns expressed earlier about gang activity; the seniors will be renters and not the homeless; and this is a win/win situation for the City and its residents and the School District and students.

At the request of the Council, City Manager Gallucci responded to an earlier inquiry of Dr. Ao regarding negotiations for the Moore Street/166th Street properties as follows:  the Council has yet to act on this matter, however, with regard to negotiations, the $14.5 million figure was derived from the property owner's asking price of $15.5 million, the City negotiating from the price of the property a year ago, plus the property owner's costs associated with engineering, architect's and attorney's fees related to the overlay zone concept, which is no longer being considered.

Councilman Cho commented as follows:  the main point of contention is whether the non-profit, public benefit corporation is a public body or private entity, and it can be argued that it is public and this project may violate the intention of the law, however, the City did not create the corporation to avoid voter approval; creating this type of corporation is a common practice in developing affordable housing; a validation lawsuit through the courts is the best way to address this point of contention; if there is disagreement on this point, pursuing a court action or initiating a petition drive to place the matter on the ballot are alternatives; on the surface it appears the City is giving money to the School District, but the City is required to spend the housing money and if it is not spent the redevelopment agency function is subject to suspension; if all of the housing money were spent solely on apartment units, over 500 apartments would be constructed, which is an outcome residents would not likely accept.  He expressed confidence that the proposal would not present a financial burden to the next generation, and indicated that the City Council met with Assemblymember Mendoza, at which meeting he agreed to initiate a bill that would allow cities to give 25% of their housing money to school districts.

Mayor Pro Tem Edwards then commented: takes offense at personal attacks on staff; this proposal will benefit the students; the validation lawsuit will address questions regarding Article 34 voting requirements; affordable senior housing will address concerns expressed about gang activity; Regional Housing Needs Assessment Allocation (RHNA) and set-aside housing requirements will be met; legislative remedies for carryover of RHNA requirements and allocating certain percentages of set-aside monies to school districts are being pursued; if mandates are not met, affordable housing development would be turned over to the County for building in our City and redevelopment agency monies could be frozen; the School District property has been declared surplus by the 7/11 Committee; for the most part residents don't pay into the redevelopment increment, which comes mostly from the Los Cerritos Center, Auto Mall, Towne Center and the industrial park; set-aside funds will continue to grow providing further opportunities for improvements at the Los Cerritos Center and at other public facilities; and the proposal will benefit the City and School District.  He added that he has not provided substitute teaching services to the School District since 2006; his retirement is paid from the State Teacher's Retirement Fund, not the School District or the Union; and he will do his best to make the best decision for Cerritos residents.

In response to inquiry of the Council, City Manager Gallucci responded that there is nothing that the City/Agency has been involved in to pay a real estate broker from the General Fund or from redevelopment funds.  He responded further that the City is not purchasing the Moore Street/166th Street properties because the School District has expressed a preference to own that property for the District offices and food service preparation, and if it is owned by the City/Agency, then monies generated from that property must be placed into the set-aside fund resulting in additional housing requirements.

Mayor Lee noted that attempting to divest the City/Agency from acquiring more set-aside funds and not accumulating more set-aside money that would have to be spent on housing is a new concept, and given a choice between this set-aside money possibly reverting to the County for the building of affordable housing in the City or going to the School District, she would choose the School District.  She noted further that many seniors have contacted her in support of the proposal; that Cerritos residents should have a larger percentage of the proposed preference system, possibly 33%; if the City lends the Agency money, it should be at an interest rate of 8%; and she expressed a preference not to sell bonds in order to avoid debt obligations.

MOTION:  It was moved by Councilman Crawley and seconded by Mayor Pro Tem Edwards to waive reading of and adopt Joint Resolution No. 2007-21, CRA 2007-7 and CVHC 2007-1 entitled A JOINT RESOLUTION OF THE CERRITOS CITY COUNCIL, CERRITOS REDEVELOPMENT AGENCY, AND CUESTA VILLAS HOUSING CORPORATION CERTIFYING THE MITIGATED NEGATIVE DECLARATION AND AUTHORIZING THE EXECUTION OF AN AFFORDABLE HOUSING, FINANCING, AND DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE CONSTRUCTION OF AN AFFORDABLE SENIOR HOUSING COMMUNITY FOR INDIVIDUALS AGE 55 OR OLDER, A SENIOR RECREATION CENTER, AND A ±4.04-ACRE PARK LOCATED AT 16700 NORWALK BOULEVARD IN CERRITOS (APN 7012-001-900), THE REMODEL OF AN EXISTING BUILDING LOCATED AT 12880 MOORE STREET IN CERRITOS (APN 7010-016-030) TO ACCOMMODATE A KITCHEN/WAREHOUSE FACILITY FOR STUDENT LUNCH PREPARATION, AND THE REMODEL OF AN EXISTING BUILDING LOCATED AT 12881 166TH STREET IN CERRITOS (APN 7010-016-032) TO ACCOMMODATE ADMINISTRATIVE OFFICES, AND MAKING FINDINGS PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTIONS 33431, 33433, 33445, AND 33679 REGARDING THE CONVEYANCE OF INTEREST IN AND/OR PURCHASE OF SAID PROPERTIES.  The motion carried, with Councilman Barrows dissenting.

NEW AND OLD BUSINESS

Review and consideration of a Lunar New Year’s Day celebration, including lantern lighting activities.

Assistant City Manager Matsumoto provided an overview of the staff report dated

November 8, 2007.

Nick Kim, Cerritos resident, spoke in support of the celebration.

MOTION:  It was moved by Councilman Crawley and seconded by Councilman Barrows to approve the addition of the Lunar New Year activities in the 2008 Festival of Friendship; direct staff to work with the various cultural organizations interested in participating in the Lunar New Year activities; and appropriate an amount of $5,000 for the activities associated with adding the Lunar New Year to the Festival of Friendship and Library Program.  The motion carried unanimously.

RECONSIDERATION

MOTION:  It was moved by Mayor Lee and seconded by Councilman Barrows to reconsider the action taken with regard to the following:

Consideration to waive reading of and adopt A JOINT RESOLUTION OF THE CERRITOS CITY COUNCIL, CERRITOS REDEVELOPMENT AGENCY, AND CUESTA VILLAS HOUSING CORPORATION CERTIFYING THE MITIGATED NEGATIVE DECLARATION AND AUTHORIZING THE EXECUTION OF AN AFFORDABLE HOUSING, FINANCING, AND DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE CONSTRUCTION OF AN AFFORDABLE SENIOR HOUSING COMMUNITY FOR INDIVIDUALS AGE 55 OR OLDER, A SENIOR RECREATION CENTER, AND A ±4.04-ACRE PARK LOCATED AT 16700 NORWALK BOULEVARD IN CERRITOS (APN 7012-001-900), THE REMODEL OF AN EXISTING BUILDING LOCATED AT 12880 MOORE STREET IN CERRITOS (APN 7010-016-030) TO ACCOMMODATE A KITCHEN/WAREHOUSE FACILITY FOR STUDENT LUNCH PREPARATION, AND THE REMODEL OF AN EXISTING BUILDING LOCATED AT 12881 166TH STREET IN CERRITOS (APN 7010-016-032) TO ACCOMMODATE ADMINISTRATIVE OFFICES, AND MAKING FINDINGS PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTIONS 33431, 33433, 33445, AND 33679 REGARDING THE CONVEYANCE OF INTEREST IN AND/OR PURCHASE OF SAID PROPERTIES.

The motion carried unanimously.

Discussion ensued regarding the Preference System and possibility of amending the preference groups to allow for a higher percentage of units going to Cerritos residents. 

Bill Ihrke of Rutan & Tucker, City/Agency legal counsel, commented on pertinent Fair Housing Act provisions, noting that some percentage should be left for the general public to avoid preference and/or discrimination of a protected class and reduce the likelihood of a successful challenge.  He also noted in response to Council inquiry that the amended preference groups would be recognized in the initial leasing and not for the duration of the affordability term.

MOTION:  It was moved by Councilman Barrows and seconded by Mayor Pro Tem Edwards that the Preference System be amended as follows:

Units set aside Preference Group
Up to 40% of units Cerritos Residents: Qualified senior citizens age 55 or older who are residents of the City of Cerritos and who are not employees of the City of Cerritos or ABC Unified School District
Up to 20% of units City or District Employees: Qualified senior citizens age 55 or older who are current or former employees of the City of Cerritos or the ABC Unified School District
Up to 20% of units District Residents: Qualified senior citizens age 55 or older who are residents of the ABC Unified School District and who are not employees of the City of Cerritos or ABC Unified School District
Up to 20% of units General Public: Qualified senior citizens age 55 or older who are not residents of the City of Cerritos or ABC Unified School District and who are not employees of the City of Cerritos or ABC Unified School District

The motion carried unanimously.

MOTION:  It was moved by Mayor Pro Tem Edwards and seconded by Councilman Cho to waive reading of and adopt Joint Resolution No. 2007-21, CRA 2007-7 and CVHC 2007-1 entitled A JOINT RESOLUTION OF THE CERRITOS CITY COUNCIL, CERRITOS REDEVELOPMENT AGENCY, AND CUESTA VILLAS HOUSING CORPORATION CERTIFYING THE MITIGATED NEGATIVE DECLARATION AND AUTHORIZING THE EXECUTION OF AN AFFORDABLE HOUSING, FINANCING, AND DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE CONSTRUCTION OF AN AFFORDABLE SENIOR HOUSING COMMUNITY FOR INDIVIDUALS AGE 55 OR OLDER, A SENIOR RECREATION CENTER, AND A ±4.04-ACRE PARK LOCATED AT 16700 NORWALK BOULEVARD IN CERRITOS (APN 7012-001-900), THE REMODEL OF AN EXISTING BUILDING LOCATED AT 12880 MOORE STREET IN CERRITOS (APN 7010-016-030) TO ACCOMMODATE A KITCHEN/WAREHOUSE FACILITY FOR STUDENT LUNCH PREPARATION, AND THE REMODEL OF AN EXISTING BUILDING LOCATED AT 12881 166TH STREET IN CERRITOS (APN 7010-016-032) TO ACCOMMODATE ADMINISTRATIVE OFFICES, AND MAKING FINDINGS PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTIONS 33431, 33433, 33445, AND 33679 REGARDING THE CONVEYANCE OF INTEREST IN AND/OR PURCHASE OF SAID PROPERTIES, as amended.  The motion carried, with Councilman Barrows dissenting.

CITY COUNCIL COMMUNICATIONS/COMMITTEE REPORTS/REPORT ON MEETINGS

Councilman Cho thanked all those who expressed concerns and made valuable suggestions regarding the affordable senior housing project.  He encouraged further input from residents and interested individuals to ensure a successful project.

Mayor Pro Tem Edwards announced that the City was an Eddy Awards finalist for the most business-friendly city in Los Angeles County; reminded everyone to attend the Veterans Day program this Sunday at the Civic Center; and asked that the meeting be adjourned in memory of long-time Cerritos resident Ed Gathman, who recently passed away.

Councilman Barrows commented further on the Eddy Awards that are sponsored by the Los Angeles County Economic Development Corporation.

Mayor Lee referenced the Dial-A-Ride program and the possibility of appointing a task force to study the program further.  The City Manager indicated that a staff report would be presented within a month and suggested review of that report prior to appointment of a task force.  There were no objections to the suggestion.  Mayor Lee also commented on a recent trip to China where she was recognized with alumni awards from her high school and university.

ADJOURNMENT

There being no further business to come before the City Council, the meeting adjourned at 12:02 a.m., November 9, 2007, in memory of Cerritos resident Ed Gathman, who recently passed away.
 

/s/ Josephine Triggs       
Josephine Triggs, City Clerk

ATTEST:

/s/ Laura Lee      
Laura Lee, Mayor

Approved:  November 19, 2007

 

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