The first City of Arcadia budget since the elimination of more than $2 mil. in Redevelopment Agency funding, and the first submitted by new City Manager Dominic Lazzaretto, shows a projected General Fund deficit of about $1.5 mil. for next year. It gets even worse in 2013-14 and still worse after that.

But the picture may not be that bleak. First of all, the City expects to make more than $600,000 from the one-time sale of former water well property and another $700,000 – $1.2 mil. from a joint IRS Task Force program involving the recovery of money through audits, according to Police Chief Robert Guthrie. Lazzaretto, who had only a few weeks to prepare the budget since taking over in late March, said during a study session Tuesday that those two projected windfalls cannot be budgeted since they are uncertain income.

In addition, the City typically proposes very conservative budgets and usually winds up with a hefty surplus, such as the current 2011-12 fiscal year ending June 30 which is projected to end up with a nearly $900,000 net gain versus the initial budget last year that forecast a deficit of about $850,000.

And finally, significant additional sales tax and business license tax revenue is anticipated from new shops scheduled to open at Westfield Santa Anita, starting this fall — probably September — with a new two-level Forever 21, and followed by a Gold’s Gym next February on the third level of the same building, the former Robinsons-May store.
In fact, two of the brightest spots in the City of Arcadia’s income for fiscal year 2011-12 and projections for 2012-13 come from Arcadia businesses. Sales tax revenues and business license taxes are projected to climb another 6.3% and 9.1%, respectively, to a combined $10.8 million in 2012-13.
The City’s annual sales tax from businesses has increased $2.3 mil. (34%) each year, climbing back this year to more than $9 mil. for the first time since the recession. Sales taxes are projected to climb to $9.6 mil. next year. And the Business License Tax, which has steadily increased each year, is budgeted to reach $1.2 mil. in 2012-13.
(Despite the success of businesses, the City may consider cutting the fee it pays the Arcadia Chamber of Commerce by 50% as the Chamber is asking for only the second fee increase since the 1990s.)

Although Redevelopment funds from the state, which were eliminated earlier this year by Governor Brown, do not technically show up in the City’s General Fund, those state funds were used to pay nearly $1 million in staff salaries and other City expenses that must all now be covered by the General Fund.

Councilman Segal expressed concern that while the City may find temporary ways to cover projected deficits, those deficits are only going to get bigger each year until the City either finds significant new revenue streams or makes significant cuts in City services, such as cutting back the number of days the Library is open, cutting back tree trimming and street services, or even closing a fire station. He was not suggesting any of those things, but noting that it would take something on that scale to close the projected budget deficits over the next several years.

After a three-hour presentation by City department heads Tuesday, City officials decided to reconvene at 5:30 p.m., May 29, to decide how to approach the 2012-13 budget that starts July 1 — whether to make potentially major cuts to offset the $1.5 mil. projected loss on paper to come up with a balanced budget, or to leave expenses as budgeted by City staff and take a calculated gamble that the expected additional income will come through and more than cover what currently looks like a deficit. Or a combination of both.

Councilman Amundson expressed a desire to balance the budget. Mayor Harbicht later said that he is confident that City revenue will rebound when the economy recovers.

– By Scott Hettrick

The City of Arcadia Recreation and Community Services Department Summer 2012 Registration Begins this month.
Arcadia’s Buzz magazine for summer programs has been released and posted on the City’s web site under the Recreation and Community Services Department. Click the link above to see displayed on your computer via the City’s web site. Printed copies are available at the City of Arcadia Recreation Office, Library and City Hall.

On-line registration for classes and activities is available now online at link above, and includes on-line non-resident registration along with ALL walk-in, mail-in and fax-in registration. Summer activities fill up quickly so get your registration requests in to assure your spot! For new registrants, please remember to include your proof of residency/child’s birth with your forms and on-line submittals. This information is required and will delay the process if not provided.

For questions and on-line Log-in ID information for active accounts, please contact the Recreation Department at 626.574.5113.

Arcadia City Council and Successor Agency agenda
Tuesday, May 1, 2012, 6 p.m.
City Council Chamber Conference Room, 240 W. Huntington Drive

CALL TO ORDER

ROLL CALL OF CITY COUNCIL MEMBERS:
Robert Harbicht, Mayor
Mickey Segal, Mayor Pro Tern
Peter Amundson, Council Member
Gary Kovacic, Council Member
John Wuo, Council Member

PUBLIC COMMENTS —CLOSED SESSION/STUDY SESSION (5-minute time limit per person)
Any person wishing to address the City Council on any Closed Session/ Study Session items is asked to complete a ” public comments” card available in the Council Chamber Lobby. The completed card should be submitted to the City Clerk prior to the start of the Closed
Session/ Study Session meeting. Each speaker is limited to five ( 5) minutes per person, unless waived by the City Council. Under the Brown Act, the City Council is prohibited from discussing or taking action on any items not listed on the posted agenda.

STUDY SESSION (OPEN TO THE PUBLIC)
a. Report, discussion and direction regarding New City Hall Cost and Financing
Update ( continued from February 7, 2012).
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for
public inspection in the City Clerk’s office located at 240 W. Huntington Drive, Arcadia, California, during normal business hours.

7 pm, City Council Chamber
CALL TO ORDER
INVOCATION
Reverend Darwin Ng, Police Department Chaplain
PLEDGE OF ALLEGIANCE
Robert Guthrie, Arcadia Police Chief

ROLL CALL OF CITY COUNCIL MEMBERS:
Robert Harbicht, Mayor
Mickey Segal, Mayor Pro Tern
Peter Amundson, Council Member
Gary Kovacic, Council Member
John Wuo, Council Member

REPORT FROM CITY ATTORNEY ON CLOSED SESSION/ STUDY SESSION ITEMS
SUPPLEMENTAL INFORMATION FROM CITY MANAGER REGARDING AGENDA ITEMS
MOTION TO READ ALL ORDINANCES AND RESOLUTIONS BY TITLE ONLY AND WAIVE
THE READING IN FULL
PRESENTATIONS
1. PUBLIC HEARING
To speak on a public hearing item, it is requested that a ” public comments” card be completed noting the agenda item number be submitted to the City Clerk prior to the start of the public hearing. Separate and apart from the applicant ( who may speak longer in the discretion of the City Council) speakers shall be limited to five ( 5) minutes per person. The applicant mayadditionally submit rebuttal comments, in the discretion of the City Council.
You are hereby advised that should you desire to legally challenge in court any action taken bythe City Council regarding any Public Hearing item, you may be limited to raising only those issues and objections you or someone else raised at the public hearing or in written correspondence delivered to the City Council at, or prior to, the public hearing.

CITY COUNCIL ITEMS:
a. Consideration of Special Use Permit No. SUP 12- 03 to allow the California Philharmonic five-concert 2012 summer season at Santa Anita Park at 285 West Huntington Drive.
Recommended Action: Approve

PUBLIC COMMENTS ( 5 minute time limit per person)
Any person wishing to address the City Council during the public comment period is asked to complete a ” public comments” card available in the Council Chamber Lobby. The completed card should be submitted to the City Clerk prior to the start of the 7:00 p. m. open meeting. Each speaker is limited to five ( 5) minutes per person, unless waived by the City Council. Under the Brown Act, the City Council is prohibited from discussing or taking action on any items not listed on the posted agenda.

REPORTS FROM MAYOR, CITY COUNCIL AND CITY CLERK
2. CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council request that specific items be removed from the Consent Calendar for separate discussion.
a. Approve the Regular Meeting Minutes of April 3.
Recommended Action: Approve

b. Adopt Resolution No. 6824 approving the application for tree planting grant funds
from the Los Angeles County Regional Park and Open Space District for Fifth
Supervisorial District excess funding for the Windstorm Tree Replacement Project
in parkways of commercial areas, parks and multi- family residential areas.
Recommended Action: Adopt
Adopt Resolution No. 6825 approving the application for tree planting grant funds
from the Los Angeles County Regional Park and Open Space District for Fifth
Supervisorial District excess funding for the Windstorm Tree Replacement Project
in parkways of residential areas.
Recommended Action: Adopt

c. Authorize and direct the City Manager to execute an agreement with Unique
Management Services, Inc. for material recovery service at the library for a period
of three years with an option to renew for a maximum of three ( 3) one ( 1) year
terms.
Recommended Action: Approve

d. Authorize and direct the City Manager to execute a contract with Nobest, Inc in the
amount of $ 38,560 for Handicap Ramps/Sidewalk Improvements in the vicinity of
Colorado Boulevard between Colorado Place and San Antonio Road, and approve
a 10% contingency.
Recommended Action: Approve

e. Approve the new classification specification and salary schedule for Accountant
and revised classification specification for Principal Librarian.
Recommended Action: Approve

f. Authorize and direct the City Manager to consent to the withdrawal request from
the apparent low bidder, TSR Construction, and execute a contract with the next
lowest bidder, ARC-Accucon, in the amount of $ 156,800, approve a 15%
contingency, approve an additional appropriation of $ 60,000 from CDBG funds
and adopt the Mitigated Negative Declaration for the Sidewalk Accessibility Project
for Colorado Street between Colorado Place and Harvard Drive.
Recommended Action: Approve

g. Endorse the Los Angeles County Flood Control District’ s Water Quality Funding
Initiative and support the County Board of Supervisors in setting a property owner
election on the ” Los Angeles County Clean Water, Clean Beaches Protection
Measure”.
Recommended Action: Approve

3. CITY MANAGER ITEMS
a. Consideration of the Downtown Arcadia Parking Study Final Report.
Recommended Action: Receive and file the Report and approve the Study’s Policy
recommendations

b. Proposed sale of the surplus former well site on Corto Road.
Recommended Action: Authorize staff to proceed with the sale

ADJOURNMENT
The City Council will adjourn this meeting to May 15, 2012, 4:00 p.m. in the EOC Room at the Arcadia Police Department located at 250 West Huntington Drive, Arcadia.

Update 4/12/2012: Mayor Gary Kovacic dominated the voting in the race for one of two Arcadia City Council seats Tuesday, April 10, 2012, while former Mayor John Wuo pulled away from an early close race with Mary Dougherty to claim the second seat.

Returning to Arcadia City Council: Mayor Gary Kovacic (left) and former Mayor John Wuo

With 691 ballots yet to have signatures verified, here is the preliminary vote total of the 6,262 ballots that have been verified as of 10:58 p.m.:

Kovacic: 3,769 (60%)
Wuo: 2,716 (43.3%)
Dougherty: 2,109 (33.6%)
Tay: 1,806  (28.8%)
Nunez: 806 (12.87%))

For City Clerk:
Gene Glasco: 3,321 (53%)
(unopposed)

Measure D (Extending hotel bed tax):
* Yes: 3,833
* No: 1,013

In the city’s first all-mail ballot City Council election, about 15% – 20% of the ballots were hand-delivered to City Hall on Monday and today, Tuesday. Nearly 7,000 ballots were submitted overall, about 3,000 less than were mailed in or hand-delivered during last month’s Measure A parcel tax election for the Arcadia School District, which collected more than the required two-thirds approval of voters.

Less than 5,000 voters checked a Yes or No for the Measure D hotel tax extension proposal, which was on the back side of Tuesday’s City election ballot that a lot of voters failed to notice.

City Clerk candidate Gene Glasco ran unopposed and received 3,321 votes.

In Tuesday’s City Council election, only Kovacic was selected by a majority of those who voted. Dougherty had just 600 fewer votes than Wuo. The margin between Dougherty and Tay was even slimmer — about 300 votes.

The month-long election got off to a rocky start when the Chinese language on the ballots instructed that voters could select up to three candidates. The City sent notices a week or so later alerting voters to the typo but some Chinese-speaking voters had already turned in ballots voting for three candidates. Those voters were instructed to alert the City Clerk’s office and request a new ballot. 99 ballots were submitted with too many votes cast that had to be rejected. About a dozen voters requested new ballots.

Other Chinese-speaking voters were confused by the mistaken ballot and the subsequent mailing, and thus did not turn in any ballot, mistakenly awaiting the mailing of a corrected ballot. At least one other said they were waiting to send in their ballot until after the busy tax season since they thought the election was not until June — that’s when the statewide Primary election is scheduled.

– By Scott Hettrick

The Pasadena Star-News has endorsed Arcadia City Council candidates Gary Kovacic and Sho Tay for Tuesday’s elections (mail-in ballots must be received by April 10, of they can be hand-delivered to City Hall — 240 W. Huntington Drive — on Tuesday, April 10, between 7 a.m. – 8 p.m.).

Noting a number of worthy contenders, the paper says no candidate has a stronger record of service than “Mr. Arcadia,” Gary Kovacic, but they cite his ArcadiasBest.com campaign blog which warns, “don’t take success for granted.”
The Star-News points out that Tay is the Arcadia Chamber of Commerce’s Citizen of the Year for2011-2012 and applauds his pay-as-you-go attitude toward city spending, as well as his suggestion to improve the Dial-a-Ride service for seniors, which is posted on Sho Tay‘s blog on ArcadiasBest.com.

In making the endorsements, the Star-News compares the two cities, citing Sierra Madre’s most aggressive no-growth policy in L.A. County versus Arcadia, which is perhaps the only city in the region with no floor-area ratio controls on housing development that has led to “mansionization.” In addition, and perhaps related to this distinction, Arcadia “has enjoyed a huge new Asian immigration over the last 30 years,” according to the Star-News, “while almost entirely white Sierra Madre has seen virtually no demographic changes.”

– By Scott Hettrick