January 21 meeting had 16 items on the addenda. Councilmembers Mitch Ing and Sharon Martinez were absent. There were in Washington, DC to participate in history. Frank Venti voted not to pay the warrants for Brown, Winfield, Canzoneri, Abram (our city attorneys).

Oral Communications had nine speakers. One resident wanted Council’s help to stop teenagers from releasing stray cats that had been trapped in their neighborhood for neutering and spaying. Another resident asked Council to address his issues about the dangers he sees during rush hour at Hillcrest School. The parent and children jaywalk, walk out from between cars and don’t obey the safety rules. He also suggested the copy of a magazine dug up at the Market Place site be displayed at City Hall. Another resident said he would donate $100 to get a new mike for the podium. He thanked one of the speakers for his suggestions to the Council. He questioned the payments to the city from FEMA for the damaged slopes in the last heavy rain storms. He said the city was not responsible for that slope failure.  He suggested all the slopes in the city be covered to prevent failures. Another speaker suggested that white lines be drawn on the streets in front of the fire stations so people would not block the entrances in case of emergencies. He also suggested several other safety measures to be made on our local streets. Another speakers asked Council to support their safety requests they have made near Belle Vista School to protect the children and their parents who cross the street to get into the school site.

It was a very short agenda that adjourned after Closed Session.

February 4 meeting had had 22 items on the agenda. It was closed in memory of Ronnie Lomas, co-founder of the family owned Pageantry Productions, who produces and directs our annual Play Days Parade. They also provide the judges and awards for bands and dancers who enter in our parades.

Oral Communications had 17 speakers. Seven of them addressed Council to help them locate a place at City Hall to do the daily exercises. Some members of staff have received complaints that they are blocking the front door and make some people uncomfortable. One speaker addressed the money still owed to us by FEMA for the hillside damages and he thanked Council for providing a new mike at the podium. Two residents made bouncy castle for sale more suggestions to Council to improve public safety. A resident said he supports the free performances in front of City Hall. It provides free health benefits. Three candidates and one Councilmember asked for the residents support on Election Day. They also complained about some of their signs were missing. One speaker complained about the first candidate forum. She believed that all the candidates were not treated equal.

Item 15 Monterey Park Chamber of Commerce Proposal for Financial Support

The Monterey Park Chamber of Commerce is re-submitting its proposal requesting financial support from the City, which fulfills the City Council’s request for additional information made at the regular Council meeting on December 17, 2008.

The Chamber is requesting total funding of $178,000 over a 5-year period from January 1, 2009 to December 31, 2013. The funds are to be paid on a declining scale as follows:

FY ‘08-09 (Jan-June ‘09) $20,000; FY ‘09-10     $40,000; FY’11-12 $38,000; FY’12-13 $34,000; FY’13-14 $31,000; FY ‘14-15 (July-Dec ‘14) $15,000 = Total $178,000

The five-year term consists of a one-year term followed by four, one-year options. Quarterly reviews and annual audits by City staff will insure compliance with the City’s and Chamber’s agreed upon objectives.

The Chamber also requests to defer past payments $29,400 in rent (up to and including December 2008) until 2014 at which time the debt will be paid back interest free over a term to be agreed upon by the City and Chamber.

a) Performance Evaluations and Accountability

Staff will receive quarterly reports from the Chamber and conduct annual reviews. The Chamber will also make presentations to the Council during its regular meeting at least twice a year and participate twice a year in “Dialogues with the City”.

This allows the City the option to renew upon satisfactory evaluation of the Chamber’s performance. Performance will be measured in terms of its ability to carry out all the programs and activities specified in the Scope of Work as well as its ability to adhere to the financial projections during the duration of the agreement.

b) Hiring an Executive Director

The majority of the funds will cover the cost of retaining a part-time Executive Director who will assist the Chamber in establishing its vision of becoming a more independent entity and valuable resource for the community by implementing services and products for the City and Business Community.

The Board will seek an Executive Director with a college degree and/or a combination of experience and education that supports the knowledge and skills required to be successful. The demonstration of leadership capabilities as well as fundraising and event management experience will be emphasized.

c) Profit and Loss Statement for the Last 2 Years, FY ‘07 & FY ‘08

The Chamber became active again after the new Board was formed two years ago.
The Chamber had a loss of $2,914 in FY ‘07, but recorded a profit of $6,192 in FY’08.

The Chamber’s total revenues and expenses for the two fiscal years are shown below.

FY ‘07    Total Revenues $48,190; Total Expenses $51,104; Profit/Loss $(2,914)
FY ‘08 Total Revenues $54,399; Total Expenses $48,207; Profit/Loss $ 6,192

d) Profit and Loss for Special Events in FY’07 & FY’08

The Chamber carried out four special events annually for the last two years; the Christmas Mixer, the Chinese New Year dinner, the Mayor’s breakfast and the Pre-July 4th Barbeque bringing in profits of $14,989.

FY ‘07                                            FY ‘08
Income     Expenses   Profit       Income    Expenses Profit
Christmas Mixer         508          46           462      800          716       84
Chinese New Year    14,431      7,480        6,951    1,235          306      929
Mayor’s Breakfast     1,100      1,120          (20)    1,625       1,350      275
4th July BBQ         2,146      1,476          670           12,091       6,453   5,638
Total                   18,185   10,122    8,063          15,751       8,825   6,926
e) Sources of Income and Expenditures

i. Income Sources
The Chamber generated $102,589 in total revenues the last 2 years. More than three quarters came from 3 major sources -Membership, Certificates and Special Events. The remaining revenues came from services provided to foreign delegations, rent, networking luncheons, donations, etc.

Chamber Revenues
Membership 43%; Certificates of Origin 18%; Special Events 15%; Other 23%

ii. Expenses
The largest expense was payroll and related expenditures, at more than half, for 2 paid staff. Next was equipment rental. The remaining expenses went to administration, marketing efforts, and costs of producing certain events.

Chamber Expenses
Payroll 56%; Equipment Rental 12%; Administrative 32%

f) 2008 Paid Membership List

The Chamber had 133 paid members in 2008. The following table shows different categories and number of members in each.

Type    # Of members     Annual Dues    Total
Business up to    10 employees    74    $125/ea    $9,250
Non-Profit Organization    25    $100/ea    $2,500
Business with 11-20 employees    12    $200/ea    $2,400
Business with 21-30 employees    9    $250/ea    $2,250
Business with 31-100 employees    2    $300/ea    $600
Business with 101-200 employees    3    $450/ea    $1,350
Business with 201-400 employees    0    $650/ea    $0
Business with 400+ employees    1    $800/ea    $800
Home Business    5    $100/ea    $500
Residents    2    $ 60/ea    $120
Total    133        $19,770

g) Membership Goals Next 5 Years

Year 1-12 new members; Year 2-24 new members; Year 3-36 new members;    Year 4-36 new members; Year 5-36 new members = 144 new members

h) Profit and Loss Projections over the Next 5 Years

The Chamber’s financial projections for the next five years, beginning in FY ‘09 are shown below.

FY ‘09            FY ‘10        FYI 1        FY ‘12        FY ‘13        FY ‘14
Total Revenues    $68,136     $95,300      $98,300     $99,300    $101,300      $99,800
Total Expenses    $67,976     $90,440      $92,300     $93,500     $ 92,600       $89,700
Profits/Loss                $    160      $ 4,860      $  6,000     $  5,800     $   8,700       $10,100
Funding Source

Community Redevelopment Agency Funds
Budget:    FY 08-09 $20,000     FY 09-10 $40,000

Members of the Chamber Board made their presentation to Council. They have a committee to redevelop the Chamber and elect a Board of Directors. They have paid the judgment to the former executive director and the state. They have a CPA to do the accounting. The president and treasurer will sign all their checks. They also listed all their current events into the record. They requested input from all the Councilmembers. They asked Council for their support.

Four speakers addressed the issue. One resident asked Council not to vote on the issue. He suggested the funds be given to the service clubs. One resident suggested Council give the total amount to the Chamber so they can be come self-sufficient. Another resident suggested the Chamber be weaned off city funds. He suggested the Chamber call on all the businesses to increase their membership. Another resident like this new proposal with checks and balances. We need a Chamber to bring in new nationally recognized stores.

Ms. Martinez thanked the Chamber Board. We need to promote our Chamber of Commerce. There is a good exchange between the businesses and the board. They are getting a good response. They are going out to increase their membership. We are promoting business. She supports the Chamber.

Mr. Lau commended the new Board of the Chamber for their new direction for the Chamber. You have a plan to request new members and increase the board. He suggested the Chamber ask their members to pay for several years at a discount. It is a way to raise cash quick. They need an executive director. He suggested a bi-lingual or tri-lingual person to work with all the members of the community. He also suggested they have more fundraisers. He is happy to know they dedicated their time to resurrect the Chamber. He supports this proposal.

Mr. Wong congratulated the Chamber. It’s a five-year term and they should be come independent form the city. He asked about the budget breakdown. Staff informed him that it is based on the city’s fiscal year. He said he has Chamber experience to help bring in new members. The Chamber needs the support of the Council and the businesses. They help the businesses. He asked how the Chamber intends to bring in new businesses. They will have ambassadors to bring in new businesses. He also gave them suggestions to bring in new businesses. He supports it.

Mr. Ing spoke about his service on the Chamber Board and being a Chamber member. He wants a separation from the City and the Chambers. They need to be advocates for the businesses. He wants politics kept out of the Chamber. These funds are set up to promote the Chamber to be independent. He suggested they be more aggressive. He believes in the Chamber.

Mr. Venti also requested that the Chamber be non-political. They should be involved in marketing. He believes that politics caused the failure of the last Chamber. He told them to build up your membership. Staff reminded Council that the city has a 90-day notice to void the contract if they feel the Chamber was not following the rules. Mr. Venti said he would support it based on the contract with the city’s over site.

The Council majority (Venti, Wong, Lau, Martinez) voted to accept the Chamber’s proposal and request for $178,000 over a 5-year period from January 1, 2009 to December 31, 2013 for services and products provided by the Chamber and to defer payment of past rent of $29,400 (up to and including December 2008 rent) to be paid interest free beginning 2014. The City approves the terms in concept and authorizes the City Manager or her designee to execute the agreement providing the Chamber $178,000 over 5-years, subject to approval by the City Attorney.

Item 17 Proposals To Audit Athens Services Contract

A Request for Proposals (RFP) to audit the Athens Services contract was released in December 2008. Two consultants submitted proposals: Sloan-Vazquez and Vasquez & Company. Both consultants have been invited to present their proposals to the City Council.

City Council reviewed and approved the Request for Proposal (RFP) at the December 3, 2008 Council Meeting. Staff released the RFP for the audit of the exclusive franchise solid waste hauler, Athens Services, on December 4, 2008. The RFP was sent to 11 firms that perform work related to the management of solid waste hauling and financial audits. In accordance with Public Works bidding procedures, a Notice Inviting Bids was also published in the local newspaper.

Since the execution of Athen’s contract in 2002, the City has conducted one audit. This audit was performed for calendar year 2004 and was limited to a financial evaluation (e.g., billing and fees and waste tonnages). The current RFP requests an assessment of the accuracy of complaint tracking, inspection of the facilities and vehicles, survey of field operations, legal review of lawsuits and violations, and assessment of the City’s exposure to liability in addition to the financial audit of calendar years 2005 to 2007.

Athen’s contract and the City’s municipal code allow for a financial audit as directed by the City Manager. The contract and municipal code also allow the City to inspect recordkeeping of complaints and missed pick-ups, and operations and facilities with reasonable notice.

Vasquez & Company is a Certified Public Accountant (CPA) firm that has provided the City of Los Angeles Bureau of Sanitation with an audit of their fees and tonnages of the private waste haulers.

Sloan-Vazquez is a solid waste consulting firm that has teamed up with a CPA firm. Their experience includes an audit of the City of Pasadena’s commercial waste haulers. The financial audit is a small part of the scope of work that they propose in response to the City’s RFP. Half of the proposed labor hours are designated for the inspection of facilities/vehicles and review compliance issues.

The City’s RFP included the contract compliance review and legal analysis. Both firms have met the RFP requirements for contract compliance and both firms will be contracting with other legal professionals for the legal analysis. Sloan-Vazquez is the only company that provided a complete cost for both tasks in the RFP. The proposed costs are as follows:

Proposer        Compliance Cost    Legal Analysis
Vasquez & Company    $53,000        Hourly rate $250 plus expenses
Sloan-Vazquez    $59,525        Est. $20,030 not to exceed $25,000

Fiscal Impact
The proposed costs to conduct the audit are $84,525 from Sloan-Vazquez. There was no total cost given by Vasquez & Company. The cost of the audit can be funded from the City’s refuse fund.

In accordance with the contract with Athens, should the audit discover a discrepancy of 5 percent or greater in gross receipts in the waste hauler’s favor, the waste hauler will be required to reimburse the City for the contract compliance portion of the cost of the audit.

Sloan – Vasquez made their presentation to Council. They highlighted their experience on all the eight tasks mentioned in the RFP. They have a law firm that will assist them in reviewing the legal issues.

Vasquez & Company made their presentation to Council. They highlighted their experience. They have a law firm that will assist them in reviewing the legal issues.

Two speakers addressed this issue. One resident said he hopes this audit is not a reason to get out of the Athens contract. We are indemnified by AB 39. Inflatable Water Slide It was a bad idea not to go out for an open bid.  Another resident said he reviewed all 233 pages of the staff report in a short time. It is a bit much. We want the audit to be sure that Athens can indemnity us. He said Vasquez & Company don’t match our RFP. They are not specialists in waste management. He believes that Sloan-Vasquez matches our RFP with a certain price.

Mr. Venti said do to the late hour that this item would be postpone until the next meeting. He asked Council to submit their questions to the city manager. Council voted to continue this items until the February 18 meeting.

Council went into Closed Session before Adjourning.