John Wuo
An already potentially dramatic Arcadia City Council meeting Tuesday night (Oct. 6, 2015) got started with a surprising bombshell announcement that embattled City Council Member and recent Mayor John Wuo had resigned just before the meeting. “I just wanted the city to get back doing city business,” Wuo told Arcadia’s Best shortly after the meeting which he did not attend. His letter of resignation read by Mayor Gary Kovacic cited “personal and health reasons.”
And that was just the beginning of a litany of major announcements and decisions of the Council in front of a standing-room-only overflow crowd that included:
Settlement of a lawsuit brought against the City of Arcadia by Save the Arcadia Highlands — Nearly 6,000 square-foot homes allowed on two challenged lots but only one-story instead of two — Verbal indication Council will vote Oct. 20 to re-start zoning code update process in Highlands — Likely vote by Council Oct. 20 to include Highlands in historical homes survey
Former Mayor Mickey Segal nominated to replace Wuo for remaining 6-months of term
Petition to eliminate Utility Users Tax on ballot April 2016, cutting $7 mil. of City budget
Downtown Arcadia Street Fair to re-start with new producer on Saturdays beginning Nov. 7
Public comments over potential Ballot Measure initiative to create voter-determined home size
The lawsuit filed seven months ago in March 2015 challenged the Council’s approval of replacing two homes with larger homes and led to very contentious Council meetings and, during the process, raised the possibility of a connection between Wuo and an Arcadia company that has since been charged by the Securities and Exchange Commission with creating a global pyramid scheme using digital currency called Gemcoins that bilked investors out of $32 million. Wuo has not been named in any official complaints filed by any government agency.
Wuo’s letter of resignation said it was with “great regret and sadness that I have to resign effective immediately due to personal and health reasons.” After 12 years on the Council, Wuo said there is “still a tough road ahead” but he has “total confidence in the current Council…”
The initial instigator of the protest, attorney April Verlato, did not have her name on the lawsuit filed under the names of David Arvizu and Save the Arcadia Highlands. Thus, she did not have decision-making authority during settlement negotiations. But since one of the two homes that sparked all the protests and acrimony was next door to hers at 1600 Highland Oaks Drive, she had input on the compromises being discussed. Ultimately the Save the Arcadia Highlands petitioners compromised on a single story home instead of two stories, though it may still be as large as 5,800 square feet. The Council still gets the final approval of the new homes and the petitioners of the lawsuit will be reimbursed 50% of the legal costs they incurred for their legal actions and only up to $15,000 for each of the two properties — the other is at 29 E. Orange Grove. The petitioners also agreed not to take any further legal action or initiate any delaying tactics.
Verlato is also behind a ballot measure being proposed (not yet submitted) that would create a voter-determined zoning code for the kinds and sizes of homes that could be built in Arcadia, which could only be modified by voters in an election. Some of the public comments about this initiative Tuesday night related to the wording of the petition, which some said was misleading. Council Member Sho Tay asked the City Attorney to explain what voters who signed the petition could do to get their signature removed if they wanted to do so after getting a better understanding of the purpose of the petition.
With the lawsuit and Wuo no longer factors, the Council is expected to approve the resumption of the residential zoning code update that began with Council approval about nine months before the lawsuit was filed. That process could address many of the issues of concern by those seeking to limit the size of new homes. A committee is being formed to provide community input to the revision of city zoning codes. The Council also seems ready to approve adding homes in the Highlands to the fledgling survey of historic homes and buildings in Arcadia (Verlato said the home next door to hers was historic and therefore should not be demolished.)
Mayor Kovacic — the last person to be appointed to fill a vacant Council Member’s seat in 1996 when he was then the chairman of the Planning Commission — and Council Member Tom Beck voiced a preference for former Mayor Mickey Segal as a temporary replacement for Wuo on the City Council for the final six months of Wuo’s latest four-year term. It was Segal who was praised Tuesday night for acting as moderator for two lawsuit negotiations that resulted in the settlement. He is not believed to be a fan of the proposed zoning code ballot measure or of eliminating the utility tax, both of which could come to a head before this Council term ends in April 2016. Segal said he needs to check with his “bosses” (presumably his wife Lee and perhaps partners in his firm) about whether he would be a candidate for Wuo’s seat, though he assured that he would not mount another campaign to be re-elected next April. The Council agreed to make their choice at the next meeting on Oct. 20, but Council Member Roger Chandler said he was already asking another potential candidate, and Council Member Tay did not immediately endorse Segal or offer another candidate. A deadlock among the four Council Members could result in a special election that would cost more than $100,000 and delay the filling of the vacant seat.
As for the Utility Users Tax (UUT), with the requisite number of petition signatures gathered and validated, the City has no choice but to put the proposal on a ballot. City Manager Dominic Lazzaretto painted a dire future if voters approved the proposed elimination of all utility taxes, which cumulatively add up to $7 million, or about 12.5% of the City’s General Fund budget, the third largest revenue source after sales and property taxes. Although representing less than $10 for most residents each month, the elimination of the taxes would mean a dramatic scaling back of police, fire, recreation and senior services. Under one scenario, 18 police and civilian police positions would be cut, 9 fire officers, and the elimination of 19 recreation programs, city newsletters and the senior commission, as well as all building and planning, economic development, code enforcement and all fees paid for services provided by the Arcadia Chamber of Commerce. Under another scenario that preserves much of the police and fire services, the City would have to close the Library, Museum, all parks and 5,800 recreation programs. While the City itself cannot take a position on any ballot initiatives, the Council approved spending $10,000 to disseminate facts about the impacts of the loss of UUT revenue.
Finally, the Downtown Arcadia Improvement Association was approved to move its summer Friday night Street Fair to Saturday nights beginning November 7 under new producer Green Leaf Events, which began this month producing the Monrovia Street Fair on Friday nights – the third new producer of that event since June. Green Leaf will partner with a group called Win Win, which will bring about 40 Chinese vendors to the fair, to produce a new fair with a name that could include the words Downtown Arcadia Fusion.
— By Scott Hettrick