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Cerritos City Council Meeting Minutes

MINUTES OF A REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF CERRITOS
HELD SEPTEMBER 9, 2010

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

Pastor Carl Bernal with St. John Lutheran Church in Cerritos offered the invocation.

PLEDGE OF ALLEGIANCE

Mayor Pro Tem Lee led the assembly in the salute to the flag.

ROLL CALL

The following Members of the City Council were in attendance:

Councilman Bruce Barrows
Councilwoman Carol Chen
Councilman Jim Edwards
Mayor Pro Tem Laura Lee
Mayor Joseph Cho, Ph.D.

PRESENTATIONS

A proclamation was presented to the members of the City of Cerritos Community Emergency Response Team (CERT) to designate September as National Preparedness Month in the City of Cerritos.

PUBLIC COMMENTS AND SUGGESTIONS

The Mayor invited those wishing to speak during public comments and suggestions.

Catherine Gaughen, Executive Director of the Cerritos Regional Chamber of Commerce invited everyone to the “Taste of the Region and Business Expo” event at the Cerritos Center for the Performing Arts, Thursday, September 16, 2010.

Paul Bellanbaum, Cerritos resident, thanked City Manager Gallucci for addressing the problems he mentioned at the last council meeting and commented on the City Charter.

CONSENT CALENDAR

Approval of Register of Demands

MOTION: It was moved by Mayor Pro Tem Lee and seconded by Councilman Edwards to approve the Register of Demands dated September 9, 2010, Checks 118937 through 119193, in the total amount of $11,181,722.63. The motion carried unanimously.

Approval of Minutes

MOTION: It was moved by Mayor Pro Tem Lee and seconded by Councilman Edwards to approve the Minutes of the Regular Meeting of August 26, 2010. The motion carried unanimously.

Approval of Treasurer's Report for the period ending July 31, 2010

MOTION: It was moved by Mayor Pro Tem Lee and seconded by Councilman Edwards to approve the Treasurer's Report for the period ending July 31, 2010. The motion carried unanimously.

Miscellaneous

Consideration and award of Bid No. 1103-11, printing of the 2011 Cerritos Community Calendar.

MOTION: It was moved by Mayor Pro Tem Lee and seconded by Councilman Edwards to Award Bid No. 1103-11, printing of the 2011 Cerritos community calendar to Myprint, LLC, in the amount of $24,236.85. The motion carried unanimously.

NEW AND OLD BUSINESS

Review and consideration of a proposal to amend a Ground Lease between the City of Cerritos and the Cerritos Towne Center , LLC (Ground Lessee) and the approval of a sub-lease between Cerritos Towne Center, LLC and Pacific Sales Kitchen and Bath Center, Inc. (Pacific Sales) in connection with the location of Pacific Sales in the Cerritos Towne Center.

Title was read to the foregoing item, and a brief staff report was presented.

The following was addressed during ensuing discussion: the amount of sales tax currently generated by Pacific Sales; the budgetary impact of the ground lease and rent participation revenues; length of current site vacancy with no sales tax; net gain by moving Pacific Sales to this location; possibility of a relocation loss of Pacific Sales; long term revenue benefits to the city and comparison of the current Pacific Sales location to the proposed Towne Center location.

Interested parties were invited to present testimony.

Michael Garner, representing Vestar Property Management Company, commented on Vestar’s presence in the City of Cerritos since 1994, noted they have made two major renovations to the Towne Center and are currently in the process of a major courtyard renovation. Mr. Garner stated that Vestar is also sensitive to keeping retail sales in the Towne Center, and that this addition can only happen with the assistance of the City.

Mayor Pro Tem Lee requested that Vestar in the current courtyard renovation include more utility outlets for the use of laptop computers. Mr. Garner responded that the timing is right, and they would take that into consideration.

Discussion ensued regarding the effect of the recession on retail sales; support of keeping businesses in Cerritos; concern regarding this item setting a precedent; and the current incentives for businesses to stay in Cerritos.

MOTION: It was moved by Councilwoman Lee and seconded by Councilman Edwards that the City Council:

  1. Approve the proposed Ground Lease amendment between the City of Cerritos and Cerritos Towne Center, LLC.
  2. Approve the implementation of the sub-lease between Cerritos Towne Center, LLC and Pacific Sales Kitchen and Bath Centers, Inc.
  3. Authorize the City Manager/Executive Director, or his designee, to execute the appropriate documents to facilitate finalization of the Ground Lease amendment and to consent to the execution of the Pacific Sales Sublease.

As recommend in the staff report dated September 9, 2010. The motion carried by the following vote:

AYES: Councilmembers – Edwards, Lee, Cho, Barrows
NOES: Councilmembers – Chen
ABSENT: Councilmembers – None
ABSTAIN: Councilmembers – None

Councilman Barrows commented regarding setting a precedent, and how the City will say “no” to other businesses.

City Manager Gallucci responded that the City has said “no” to numerous companies, and the Council is reviewing the potential of approving a 25,000 square foot addition to Wal-mart and has approved a $600,000 upgrade to the mall area of Towne Center, both of which contribute additional revenue in property tax, as well as sales tax.

Review and consideration of a proposal to amend a Ground Lease between the City of Cerritos and Cerritos Investment, LLC, in connection with the retention of Best Buy Stores, LP (Best Buy) within the Cerritos Towne Center and approval of an amendment to a sub-lease between Cerritos Investment, LLC and Best Buy Stores, LP.

Title was read to the foregoing item, and a brief staff report was presented.

Discussion ensued regarding the projected annual revenue and rent participation losses; assurances of Best Buy remaining in the Towne Center; length of current lease option and future options; sales tax revenue ranges for Best Buy currently and in the past; the yearly tax revenue for Best Buy; and Cerritos, LLC being a third party lease participant.

Michael Garner, representing Vestar Property Management Company, commented regarding the impact of Best Buy’s ground rent reduction request on participation rent totals; owners reduction incentives to their tenants, the need for the City’s participation in keeping businesses in the Towne Center; and percentages given in reduction incentives.

The following points were covered during discussion: the importance of keeping both Pacific Sales and Best Buy in the community; City budget impact with respect to revenues and participation rents; anticipated future revenues from new sources and businesses; revisiting the item after the first five year option; difficulty landlords are having keeping tenants during these economic times; and the desire to keep the existing businesses and revenues in the City.

MOTION: It was moved by Councilman Edwards and seconded by Mayor Pro Tem Lee to:

  1. Approve the proposed Ground Lease amendment between the City of Cerritos and Cerritos Investment, LLC.
  2. Approve the proposed Sublease amendment between Cerritos Investment, LLC and Best Buy.
  3. Authorize the City Manager/Executive Director, or his designee, to execute the appropriate documents to facilitate finalization of the Ground Lease amendment, and to consent to the proposed Best Buy Sublease amendment

As recommend in the staff report dated September 9, 2010. The motion carried by the following vote:

AYES: Councilmembers – Edwards, Lee, Cho, Barrows
NOES: Councilmembers – Chen
ABSENT: Councilmembers – None
ABSTAIN: Councilmembers – None

Consideration of a request of the Cerritos Regional Chamber of Commerce regarding its January 11, 2011 City Council candidate forum.

Title was read to the foregoing item, and a brief staff report was presented.

Discussion was held as to whether other organizations have requested the use of the Council chamber for similar candidate forums; and that it is common practice for more than one organization to hold forums for the upcoming election.

Catherine Gaughen, Cerritos Regional Chamber of Commerce Executive Director, spoke in favor of the request.

MOTION: It was moved by Mayor Pro Tem Lee and seconded by Councilmember Edwards to authorize the Cerritos Regional Chamber of Commerce to use the Council Chambers on Tuesday, January 11, 2011 from 6:30 p.m. to 9:30 p.m. for the purpose of holding a candidate forum for Cerritos City Council candidates in the upcoming March 8, 2011 General Municipal Election, with the City absorbing the costs associated with cable casting the event. The motion carried unanimously.

PENDING LEGISLATION

City Manager Gallucci indicated numerous items are sitting before the Governor relating to bills regarding changes for cities. They are monitoring these items and will present a resolution to the Council next meeting relating to an issue the state is dealing with.

CITY COUNCIL COMMUNICATIONS/COMMITTEE REPORTS/REPORT ON MEETINGS

Councilman Edwards invited the community to two events, the September 11 Patriot Day concert, with a Pancake breakfast sponsored by the Boy Scouts, and the 1st CEB Golf Tournament on September 25th in support of the Marines.

Councilwoman Chen congratulated Vivek Kasarabada on obtaining the rank of Eagle Scout and attended the celebration event hosted by his family; attended the “Coffee with Captain Joe” at the Senior Center; Congresswoman Linda Sanchez’ state of the nation address; 1st CEB Carwash; Special Olympics “Tip a Cop” event; and invited the community to the Library presentation “Secret maps of the ancient world”.

Councilman Barrows noted the passing of longtime Cerritos resident Wilodean Wiswell and requested to close the meeting in her memory. Commented on SB375 and the Orangeline Development name change scholarship.

Mayor Pro Tem Lee attended the 1stCEB Carwash, thanked city employee John Nieto for his assistance provided to the marines; and attended the Special Olympics “Tip a Cop” fundraiser.

Mayor Cho reported that a new record of 1167 cars were sold over the Labor Day weekend at the Cerritos Auto Square; his attendance at the Los Angeles Cathedral Labor Day breakfast; Banning Park Picnic; Linda Sanchez’ address; 1st CEB Carwash; “Tip a Cop” fundraiser; installation ceremony; and invited the community to the September 11 Patriot Day events.

ADJOURNMENT

The meeting adjourned at 8:30 p.m., in memory of Willodean Wiswell who recently passed away.


/s/ Vida Barone_____________
Vida Barone, Interim City Clerk

ATTEST:

/s/ Joseph Cho______________
Joseph Cho, Ph.D., Mayor

 

Approved: September 23, 2010

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