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HomeMy WebLinkAbout06/06/17 - Minutes - Regular Meeting0 100 0 l.. ;. r 1 1. .: , ., • - r 1 STUDY SESSION: M/Lin called the Study Session to order at 5:21 p.m. in Room CC -8 of the South Coast Air Quality Management District/Government Center, 21865 Copley Drive, Diamond Bar, CA 91765. ROLL CALL: Council Members Herrera, Tye, Mayor Pro Tem Low and Mayor Lin Absent: Council Member Lyons Staff Present: James DeStefano, City Manager; David DeBerry, City Attorney; Ryan McLean, Assistant City Manager; Greg Gubman, Community Development Director; Dianna Honeywell, Finance Director; Anthony Jordan, Parks Maintenance Superintendent; Ken Desforges, IS Director; Kimberly Young, Senior Civil Engineer; Anthony Santos, Assistant to the City Manager; Alfa Lopez, Sr. Management Analyst; Dannette Allen, Management Analyst; Fabian P. Aoun, Assistant Engineer; Amy Haug, Human Resources/Risk Manager; Marsha Roa, Public Information Manager, and Tommye Cribbins, City Clerk, CITY MANAGER'S RECOMMENDED FY 2017-18 BUDGET — Discussion and Action. (Supporting Document under Council Consideration No. 8.2) FD/Honeywell presented the City Manager's recommended FY 2017-18 Budget. She asked if there were any remaining questions about the City's reserves from the previous study session. MPT/Low questioned how there could be no depletion in the reserves. FD/Honeywell responded that the reserves beginning figure is correct. CM/DeStefano explained that the reserve figure is a "snapshot in time." The reserves starts off much higherthan it has been in the lastfew years because there are several million dollars of carryover projects that will not be finished in the current fiscal year that will rollover to the next fiscal year. The money gets rolled over and is pulled out upon completion of the projects. The reserves are depleted from $18.8 million to $17.7 million, principally due to $7- $800,000 of so-called "one-time money" that is being spent to purchase new recreation software and desperately needed financial software for the City. There is a depletion of reserves which ebbs and flows over time depending upon how the City uses its revenues, what types of one-time money the City has coming in and a variety of different factors. For the last several years the City has been ending at around $17 or so million in reserves. Which is a very healthy number as compared to the General Fund Operating Budget. FD/Honeywell explained to MPT/Low that the $18.8 million should be $21.5 million. June 6, 2017 PAGE 2 CC STUDY SESSION C/Tye said that MPT/Low's question was "why is there no depletion" which he did not understand. FD/Honeywell explained that if the revenue from the proposed budget for 2017-18 is $29.7 million less the proposed appropriations of $29.2 million totals $447,000. The current year's resources less the appropriations shows an increase to the reserves of $447,000. Reserves are then used to pay for projects that were not completed (carryover from the previous year) the reserves are being depleted by $4.3 million. Following discussion, FD/Honeywell turned the discussion to Senior Civil Engineer Young whom went on to discuss the Capital Improvement Project Program. SCE/Young talked about the CIP proposed 2017-18 FY budget using a PowerPoint presentation. This time last year the City Council approved a CIP program of 37 projects with a total budget of just over $19.5 million. Over the course of the year that total number of projects increased to 47 and included private developer park projects such as Diamond Canyon and Larkstone Parks which are not necessarily funded by the City but are managed by staff as a CIP. It also includes other agency projects such as the SR 60 Freeway improvements at Grand Avenue as well as, Emergency Public Property Repairs that were added at mid -year for the Sycamore Canyon Slope Repair and other storm damage projects, Neighborhood Traffic Management Projects that come to staff at the community's request and Building Maintenance Projects that were added at mid -year (City Hall server room HVAC and Pantera Park walkway lighting). Currently, and close to the end of Fiscal Year 2016-17 a total of 57 projects are being managed by staff. To date, 15 projects have been completed for a total improvement value of just over $3.6 million. An additional four projects are expected to be completed prior to June 30 which will total 19 projects completed for Fiscal Year 2016-17. Projects to date have been completed under the Council's authorized budget with a total savings of $241,946 and staff expects that the four projects to be completed by June 30th will result in further savings. An additional 19 projects are currently either in design or under construction and will be carried over into Fiscal Year 2017-18 with proposed completion dates to occur within the next Fiscal Year. C/Tye questioned that only $3.6 million of the total budgeted amount of $19.5 million was spent. SCE/Young explained that the larger funded projects such as the Lemon Avenue project and the Adaptive Traffic Control Project are still underway. SCE/Young continued that for the proposed 2017-18 CIP Projects, the proposed budget is just over $21 million with 32 projects being proposed. Again, this does not include outside agency or private developer projects that are not being funded by the City but are under City staff management. The projects are separated into categories that include: Street Improvement, Traffic Management, Safety Projects, Transportation, Infrastructure, Miscellaneous Public Works Projects, and Facilities, Parks and Recreation Improvement Projects. Proposed Street Improvement Projects: (budget of just over $3.7 million) 1) Morning Canyon Parkway (carryover project) 2) Brea Canyon Cutoff Road Rehab and Drainage Improvement Project and Area 5 Annual Slurry Seal Road Maintenance Project within the Residential Areas. 3) Pathfinder Road Rehab Project (LA County project) 4) Diamond Bar Boulevard Street Rehab Project 5) Proposed Traffic Management Safety Projects including the Neighborhood Traffic Management Program 6) Traffic Signal Infrastructure Upgrade Project year 2 and 3 7) Adaptive Traffic Control System 8) Copley Drive/Golden Springs Drive Intersection Traffic Signal Modification SCE/Young stated that the proposed Transportation Infrastructure Project is the one project at Lemon Avenue, which is currently under construction that was budgeted for the right-of-way phase and the construction phase. M/Lin asked if the money was in the bank. SCE/Young responded that the money will be in the bank. Staff did a repurposing of the Federal Funds last fiscal year and everything will be in the bank except the $2 million MTA Grant which is being reimbursement.as the City submits invoices. MPT/Low asked if the City had to pay for any easements in the project area or was it part of the budgeted amount. CM/DeStefano responded affirmatively.. SCE/Young responded that they were all partial takes and no full takes of the property. SCE/Young continued that the proposed Miscellaneous Public Works Improvement Projects (just over $3 million budgeted) included Groundwater Drainage Improvement Projects, Phases I and ll, The Sewer System Evaluation Capacity Assurance Plan is a project staff will be performing next fiscal year in partnership with LA County as they are the Sewer Maintenance provider. The City Entry Monuments is currently in final design for two new City entry monuments, similar to the one at Longview to be located at Golden June 6, 2017 PAGE 4 CC STUDY SESSION Springs Drive and Calbourne Drive at the westerly City limit and at the northerly City limit of Diamond Bar Boulevard and Temple Avenue. C/Tye asked if the monument at Longview was supposed to have been backlit because when he looked at it one night it was dark. SCE/Young said it is supposed to be and she will have maintenance check it out to make sure it is working properly. M/Lin asked what the City's responsibility/liability is with respect to its sewer system. SCE/Young responded that LA County maintains the City's entire sewer system. As part of the Waste Discharge Requirements Order the City must comply with their needs to be a sewer system evaluation capacity plan which staff will be working with the County to conduct. It is her understanding that the funding the County has is for maintenance purposes and the City is partnering with the County to conduct a plan for a Capital Improvement type of study rather than maintenance. M/Lin said he understood that the pump station behind H Mart is way under capacity and will cost millions to upgrade and wanted to know who would have to pay for it. SCE/Young said that the system functions at capacity with respect to emergency storage. Functionally, it works at capacity without a problem. It is the emergency storage capacity that the County wants to improve. CM/DeStefano said that the City has been having a discussion with the County for some time now as to who pays for it. C/Herrera said the County owns it. CM/DeStefano stated that that is part of the conversation, portions of which may deserve Closed Session consultation with the City Attorney. MPT/Low asked if the Stormwater Mandate was part of this year's CIP. SCE/Young responded that this is ongoing. This mandate is ongoing for which the City has money in its operating budget to ensure compliance. SCE/Young stated that the Diamond Bar Boulevard Streetscape Project is being proposed for next fiscal year for design to implement the streetscape elements that were incorporated at the Grand Avenue/Diamond Bar Boulevard intersection along the Diamond Bar Boulevard corridor between Golden Springs and the freeway. This project is currently in the consultant June 6, 2017 PAGE 5 CC STUDYSESSION selection process and staff anticipates the design to be completed by the end of FY 2017-18 with construction to take place the following fiscal year. C/Tye asked if the $300,000 was for the design portion only. SCE/Young responded yes. The project will incorporate more than just the streetscape elements and will include complete street elements to enhance transit, bike paths, bike routes, pedestrian paths as well as, complying with stormwater regulations and incorporation as a "green" street which the City is mandated to have. SCENoung said that the Grand Avenue/Golden Springs Drive intersection enhancement is a new project in conjunction with the City of Industry's proposed project for widening the Grand Avenue/Golden Springs Drive intersection as a mitigation measure to their Industry Business Center Development north of the freeway. The widening will take place within the golf course properties which means Diamond Bar businesses will not be affected. However, in coordination with the widening of the intersections this project proposes to add streetscape elements and other landscape enhancements to the intersection. SCE/Young stated that for the Lemon Avenue "Quiet Zone" project, the City will partner with the City of Industry to conduct a study to make the railroad passing at Lemon Avenue a "Quiet Zone." SCE/Young responded to C/Herrera that the $100,000 includes the study and the construction for which there are funds budgeted that City of Industry has committed. C/Tye thought the study had been done but was never implemented SCENoung said no study was done previously. CM/DeStefano said this item emanated from the "Stadium" agreement of 2008-09 where the City knew the line would be used more frequently for stadium -based events so the City demanded that City of Industry fork over what at that point was estimated to be about a million dollars to upgrade it to standards for a "Quiet Zone". Over time staff has learned that it will not require that amount of money and that Diamond Bar can fund it with a couple of extra bucks from Industry. CM/DeStefano further stated that completion of the Quiet Zone is the last piece in Diamond Bar and residents may still hear train noise from Temple until the intersection in Pomona is improved and may still hear train noise from a private crossing behind Kohl's at Grand Avenue and Valley Boulevard until that private crossing is finally eradicated. SCENoung concluded with the proposed Facilities, Parks and Recreation Improvement projects with a proposed budget of just under $1.5 million June 6, 2017 PAGE 6 CC STUDY SESSION which includes the design improvements of Heritage and Peterson Parks Facilities (design only), construction of the Longview Park South Improvements (under construction shortly), design of the, Canyon Loop Trail, Sycamore Canyon Park Slope Erosion Repairs (due to the January storm damage), Pantera Park Walkway Lighting Replacement, Starshine Park Improvements (replace the play surface area of the playground and enhance ADA Accessibility around the park), HVAC Replacement for City Hall and the Diamond Bar Center Roof Rehabilitation Phase II project. C/Tye asked if the slope erosion could be done and paid for by the City with reimbursement from FEMA or did the City have to wait for the funds. CM/DeStefano said that typically, the City has to wait for FEMA to authorize the repairs before the City can do any work. To date, the larger phase has not been authorized. The smaller phase (replacement of the chips under the playground equipment) has been authorized by FEMA and the City can move forward to complete the work. C/Tye asked if the City was ready for Concerts in the Park and if so, how will kids be kept out of the unrepaired area. CM/DeStefano explained that according to staff, the area will be roped off and monitored by personnel along with other measures necessary to keep the junior high kids out of the area. PMS/Jordan explained that there is temporary fencing in place to preclude access to the upper trail portion where the slope erosion took place off of Diamond Bar Boulevard. Within the play area there is temporary fencing around the entire play area. C/Tye asked if any equipment was lost. PMS/Jordan said no. The only impact at the lower level was to the engineered wood fiber/chips that were compromised which needs to be removed as well as, the filter fabric that lies beneath the chips and both replaced. The structure is fine. SCE/Young responded to Council questions about the proposed $21 million CIP budget. C/Tye asked about the $109,000 Sewer System Evaluation item on Page 7 with an apparent offset of $109,000 for Sewer Improvement Fund on Page 9. SCE/Young explained that these are funds that the City received from the Willow Heights Development. June 6, 2017 PAGE 7 CC STUDY SESSION MPT/Lin asked where the $50,000 developer fee is coming from. SCE/Young explained that the item is from the Sprouts Development. The City will be receiving some funds for the streetscape and view enhancements along Diamond Bar Boulevard. The City will receive significantly more from the development and staff is projecting to use $50,000 of that amount on the design during the next fiscal year and the remainder will be set aside for construction. MPT/Lin asked if the City would be receiving more money from the South Pointe development. SCE/Young responded that the City will get traffic mitigation funds from this developer as well as from other projects under the traffic mitigation category for a total projected budget amount of $818,000. CM/DeStefano explained that the other fee revenue coming from the South Pointe project is a developer fee that was imposed upon the project in 2007- 2008 when the project was approved. The City budgeted the anticipated receipt $1 million of about $500,000 coming in the next fiscal year with the remaining $500,000 coming to the City in the following fiscal year. These are General Fund dollars. M/Lin asked in what year the City had its highest CIP budget SCE/Young said she believed it to be FY 2017-18. CM/DeStefano opined that this could vary greatly. A couple of years from now Lemon Avenue will be done and the number will drop and then it will skyrocket depending on how the Confluence project is handled. MPT/Low asked when the Sprouts fee was set in 2007-08 was there a built- in escalator. CM/DeStefano responded "no." MPT/Low asked if it was standard and could an escalator be built in for a project that is anticipated to be completed 10 -years hence, for example. CM/DeStefano said that everything is negotiable. However, who knew back in 2007, 2008 and 2009 when those projects were approved that there would be a five-year recession and post years of recovery. Having a ten-year gap for about a half-dozen projects that were approved is unfathomable. Most projects are developed within a year or two of City Council approval. To MPT/Low's point, such an escalator could have been negotiated into the number. June 6, 2017 PAGE 8 CC STUDY SESSION MPT/Low said as a "note to self' there are a couple of big projects pending and with the track record of developers even without a recession it could be 10 years and it may be prudent to negotiate an escalator when it is a penalty for delay and no cost to them if they move forward in a timely manner. CM/DeStefano explained that the Vantage project above Target was built out within a year and a half of approval. The Willow Heights project took slightly longer but once it started it blew out as well. With the South Pointe project is has been nine years. It is something for the Council to think about for the future as there is at least one pending application coming to the City in 2018 that would seem to be ripe for attachment of an additional developer fee. M/Lin asked FD/Honeywell to recap what the Council will be approving this evening. FD/Honeywell stated that the Council will be approving the Operating Budget (General Fund), Special Revenue Funds (Prop A, Prop C, Measure R), Capital Improvement Projects budget SCE/Young presented this evening, Debt Service, and internal service funds including Liability Insurance, Vehicle Maintenance, Capital Expenditures, and Building Maintenance. CM/DeStefano advised that Council will also be approving the Gann limit, Investment policy and compensation plan for City employees. FD/Honeywell reported that there are no changes to the investment policy, the Gann Limit is calculated per State code which basically portends that cities will not spend more than they have. Diamond Bar is well under the limit of $44 million as the City's committed expense is about $35 million. The City performs the calculation and gives the results to the auditors who double check the calculations and give their blessing before it is given to the City Council and to the public. MPT/Low asked if the document provided to the City Council is available to the public. FD/Honeywell said that if it is part of the City Council packet and available to the public. CM/DeStefano said that it has been posted on the website and will be available in its final form once the Council approves the budget. C/Tye asked if the Kmart project could be renamed to the "Sprouts" project. C/Tye asked if the Sprouts development was dealing with Gentle Springs as a private road. June 6, 2017 PAGE 9 CC STUDY SCE/Young explained that staff is working with all of the property owners separately outside of the development to bring them together to propose participation since Sprouts has all of the equipment on site it would be in the best interest of all property owners to partner with the contractor/developer to improve Gentle Springs. C/Tye asked what would happen if they didn't want to participate. CM/DeStefano explained that depending on the severity of the deferred maintenance there may be a Code Enforcement action involved. The City looks at all angles very, very carefully. The difficulty is that Gentle Springs is a privately owned roadway comprised of eight or so different property owners. There is no association of commercial property owners so the City is dealing with each property owner individually who have different goals, financial resources, etc. And no, it does not make sense for the City to acquire that property because the City would be spending $2 million easily to fix what is wrong with the street with no discernable benefit coming back to the City. It would not increase property values to any degree nor would it generate new businesses, etc, resulting in a huge expense for little gain. C/Tye asked about the tire dealership and condominiums as to whether or not they have access from Gentle Springs. SCE/Young said that the owner may have "reciprocal access rights" to Gentle Springs and not necessarily be an "owner" of Gentle Springs and that the condominiums have access rights as a property owner. Public Comments: None. ADJOURNMENT: With no further business to come before the City Council, M/Lin recessed the Study Session at 6:12 p.m. to the Regular Meeting. \11',et,- TOMM E CRIBBINS, City Clerk The foregoing minutes are hereby approved this 20th day of Tune 2017. JIMMY LIN', -Mayor MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR JUNE 6, 2017 CLOSED SESSION: 5:00 p.m., Room CC -8 Public Comments: None Is GOVERNMENT CODE SECTION 54967 — PUBLIC EMPLOYEE APPOINTMENT Title: City Manager CONFERENCE WITH LEGAL COUNCIL PURSUANT TO GOVERNMENT CODE §54956.9 Name of Case: City of Diamond Bar v Young Men's Christian Association Los Angeles County Superior Court Case No. KC069337 PIITFIYOTr;- 5:15 p.m., Room CC -8 CITY MANAGER'S RECOMMENDED FY 2017-18 BUDGET — Discussion and Action (Supporting Document under Council Consideration Item 8.2) CALL TO ORDER: Mayor Lin called the Regular City Council meeting to order at 6:31 p.m. in the South Coast Air Quality Management District/Government Center Auditorium, 21865 Copley Drive, Diamond Bar, CA. CM/DeStefano reported that the Council held their third meeting to go over the proposed budget for FY 2017-18 during tonight's Study Session and a detailed review of the $21 million Capital Improvement Program (CIP) for the upcoming fiscal year leading to the Council's anticipated adoption this evening of the City Budget. CA/DeBerry reported that there were two items discussed in Closed Session, the first a discussion to consider the appointment of a new City Manager which is an item on tonight's agenda, and the other matter concerned an Eminent Domain action that was filed by the City of Diamond Bar with no reportable action taken on this matter from the Closed Session. PLEDGE OF ALLEGIANCE: C/Herrera led the Pledge of Allegiance INVOCATION: Shaykh Nomaan Beig, Institute of Knowledge was unable to attend to provide the invocation. ROLL CALL: Council Members Herrera, Tye, Mayor Pro Tem Low and Mayor Lin Council Member Lyons was excused. JUNE 6. 2017 PAGE 2 CITY COUNCIL Staff Present: James DeStefano, City Manager; David DeBerry, City Attorney; Ryan McLean, Assistant City Manager; Greg Gubman, Community Development Director; Dianna Honeywell, Finance Director; Anthony Jordan, Parks Maintenance Superintenant; Ken Desforges, IS Director; Kimberly Young, Senior Civil Engineer; Anthony Santos, Assistant to the City Manager; Alfa Lopez, Sr. Management Analyst; Dannette Allen, Management Analyst; Fabian P. Aoun, Assistant Engineer; Amy Haug, Human Resources/Risk Manager; Cecelia Arellano, Public Information Coordinator; and Tommye Cribbins, City Clerk. APPROVAL OF AGENDA: As Presented. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: None 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: CM/DeStefano updated the Council and community on the anticipated demolition of the Honda/Burger King property that he had reported on about a month ago. As of this date, the equipment is onsite and the project may have started this afternoon and if not, tomorrow or the day after which means that the site should be cleared in a very short period of time. 3. PUBLIC COMMENTS: Pui Ching Ho, Diamond Bar Librarian, spoke about special summer programs offered, including the summer reading program kick-off on Thursday, June 8 at 2:00 p.m. Join the library for a comic and magic show on Thursday, June 15 at 2:00 p.m. On Saturday, June 17 at 3:00 p.m. the library will host an authentic highland bagpipe experience. On Wednesday, June 21 at 3:00 p.m. teens are invited to the library to build exciting projects. To check out these and other programs, visit the website at www.colapublib.org. Many library programs are sponsored by The Friends of the Diamond Bar Library. Susan Pantages, is concerned about the proposed solar farm on 2,000 acres bordering Los Angeles, Orange and San Bernardino counties and infringing on premium view lots such as hers and felt such large ventures should be limited to industrial sites and not allowed on residential property or on property bordering residential dwelling property. Gladys Crittendon voiced her disappointment over the Council's decision to no longer allow Mt. SAC to conduct computer classes for senior citizens at the library and asked that they reconsider their decision. Mrs. Turner said she and her neighbors were very concerned about a number of VRBO daily rentals in her neighborhood that are listed on Airbnb which have brought parties, lots of visitors both day and night and last weekend an individual drowned in a swimming pool. JUNE 6, 2017 PAGE 3 CITY COUNCIL Jane Murakami spoke about the Airbnb home on Crestwood Court. Loud parties happen on weekday nights as well as, weekends. Police were called on Tuesday and the party was broken up. Participants trampled over her neighbors fence and left discarded beer bottles. On Wednesday there was another party, the police were called again and the party was disbanded. On Friday night, a 22 year-old drowned in the swimming pool. The next day there was another party. Does Diamond Bar have the ability to charge the homeowner a business tax or some kind of consequence to the homeowner that will benefit the citizens of Diamond Bar. Douglas Barcon, said that since the warehouses were built on Ferrero Parkway in the City of Industry the noise generated by the trains just south of the warehouses has been greatly amplified due to the sound deflecting off of the buildings facing the train tracks. He estimates the noise from passing freight trains in the neighborhood passing by that area to be at about 85 decibels at his house which is loud enough to disturb outdoor conversation. He suggested that Diamond Bar work with the City of Industry to develop a noise mitigation strategy to lower the railroad sound level. CM/DeStefano responded to the first speaker about the City of Industry's proposed solar farm on the Tres Hermanos Ranch property. The Tres Hermanos Ranch property is generally the vacant land between Diamond Bar and Chino Hills on both sides of Grand Avenue. Generally, on the north side of Grand Avenue going up to Diamond Ranch High School is under the jurisdiction of the City of Diamond Bar. Almost all of the south area from Grand Avenue down to the SR57 wrapping entirely around Diamond Bar is in the jurisdiction of Chino Hills or under the jurisdiction of the County of Los Angeles but in Diamond Bar's future Sphere of Influence. All of the land is owned by the City of Industry or more technically, by the successor agency to their Redevelopment Agency. As the speaker indicated, it was recently discussed in the newspaper that Industry has plans for a solar farm of some 440 acres on that property. Diamond Bar has no details and no information and until the newspaper story broke it was heresay as to what the development was. Neither did the newspaper provide any information on detailed plans nor does Diamond Bar have any such information. Chino Hills has requested information which has either not been provided or has not been forthcoming from the City of Industry. A solar farm of the size and scale that the newspaper described is the type of project that has most recently been seen in desert communities such as the huge facility near the California/Nevada border. However, most facilities of 100 megawatts or greater are often found in underutilized farmland in the Midwest. It is his estimate that a 440 -acre solar farm would require somewhere between 1000 and 1500 acres which is most of the Tres Hermanos Ranch property. Diamond Bar's jurisdiction and Chino Hills jurisdiction does not at this time allow for the type of project that is being proposed. Both jurisdictions have restrictions on the land uses and statements within their policy documents that talk about future Master Planning for the JUNE 6, 2017 PAGE 4 CITY COUNCIL property which requires a lot of public input. It is puzzling to him that the City of Industry would propose a project that is so vastly different than what the two jurisdictions have set forth for their future planning documents. It is also puzzling why this type of proposal would be sandwiched between two well-developed residential communities. As the speaker suggested, Diamond Bar has been carefully watching the City of Industry for a long period of time and information is shared with the City's partner, Chino Hills. Diamond Bar monitors Industry's staff reports, their agendas, etc. It is not always easy to figure out what is being discussed, especially that being discussed under privileged closed session authority. It is a bit difficult for Diamond Bar to react to something that it doesn't know with certainty will occur. It does know that Industry is proposing such a property but no details have been submitted to the city. He has advised the City Council that the City Council should keep a watchful eye on what is occurring, remain vigilant about all of it and use all of its options and time will tell what this may be and Diamond Bar has plenty of time to weigh in to decide what action Diamond Bar would like to take. Ms. Crittendon spoke regarding the use of the Willow Room which is not a space within the Diamond Bar Library but actually a space within Diamond Bar City Hall. The Willow Room was set aside in 2012 for use as a computer room meant to be a computer classroom and was a carryover from a similar space that was provided at the Diamond Bar Center since 2004. The Willow Room has about 16 computer stations, all of which are old and need to be replaced to meet current standards. There are a variety of other improvements needed within the Willow Room. That cost amounts to somewhere in the neighborhood of $40-50,000 to replace all of the equipment. The cost the City has borne for several years and would have to bear going forward to maintain the room and equipment amounts to about $11,000 a year. The equipment, maintenance and support necessary to maintain that facility is very costly to the City. For reasons he cannot fully understand or articulate to the Council, this has been a program that has been around for a very long time with Mt. SAC. There is no cost to the users of the facility but there is great cost to the City of Diamond Bar and especially at this point where the City is looking at the need to replace all of the equipment. The speaker alluded to Mt. SAC offering to bear the cost of the replacement equipment. That is not completely accurate. At one point, Mt. SAC offered to provide the seniors with their old and outdated equipment to use in Diamond Bar's facility to replace Diamond Bar's already much newer equipment that was outdated. It was not an offer to bear the cost of the room's needs and use. It is his responsibility to look at all aspects of the organization — the operation, public assets, etc. and he came to the conclusion that this was no longer an appropriate use of that property which is enjoyed by the public and serviced by the taxpayers of Diamond Bar. The City asked Mt. SAC to assist in trying to determine who uses that facility and learned through Mt. SAC's records that there were about 17 participants on a Monday and about 20 participants on a Friday, several of which are carryovers for each day, with only 35 percent of whom are from the City of Diamond Bar. So he questions the appropriate use of Diamond Bar's funds for JUNE 6, 2017 PAGE 5 CITY COUNCIL this type of project. There are computers at the Diamond Bar Center and computers available at no charge inside the library and access to that technology in other places as well. At this time, staff is looking at the request from Ms. Crittendon and have been doing so for more than a year. He reiterated that in August 2016 the City wrote a letter to Mt. SAC indicating that the free program which was costly to Diamond Bar would terminate in July 2017 and suggested that for a nominal fee of $50 an hour, which does not entirely cover the City's cost, the City would be willing to reconsider to meet both Mt. SAC's and participants needs. That nominal fee was rejected. The use of the space for the few Diamond Bar individuals who have used this free service is coming to an end. Staff is still looking at what can be done going forward and the offer to Mt. SAC is still on the table. From his perspective it seems appropriate that the agreement needs to change to the extent that Mt. SAC needs to bear some of the cost in order to keep the facility operational at the highest standards. The days the participants wish to use the space will need to change because the space was originally intended as a training center for City employees. In fact, tonight's budget consideration includes the purchase of two new large systems for the City in recreation and in finance. Because of this and the many other changes that have been made to the City's technology and software programs, that room will need to be made available to staff for training so that staff can continue to provide good service to the community. The third and fourth speakers raised concerns regarding short-term rentals more commonly known as airbnb's. Short-term rentals are illegal in Diamond Bar. Some communities permit them. They are typically tourist -oriented destinations. Diamond Bar is not such a City. Diamond Bar has aggressively gone after those homes where such illegal activities are known to exist. In the last year or so, Diamond Bar has caused the closure of 11 of those facilities. The facility that was brought to the City Council's attention this evening is one that was recently brought to the City's attention and the City has authorized its City prosecutor to begin aggressive action to address that illegality of land use at that location. It may take time but the public needs to know that where the City has been made aware of such facilities, staff has taken action to eliminate them and will continue to do so. The last speaker had concerns regarding train noise. The City of Industry is an enormous manufacturing, industrial, warehousing community in the area paralleling the SR60 between Diamond Bar and Walnut with millions of square feet of such facilities. Over the years as that property has been developed trains and train noise may or may not have increased in size and frequency. There is not a lot the City of Diamond Bar will be able to do for the issue of train noise bouncing off of existing buildings in that area because it is outside of the City's jurisdiction and is an area that will likely see increased development. Some of the noise may be mitigated as more offices and retail businesses are built on both sides of Grand Avenue. In tonight's budget the City Council is budgeting for a "Quiet Zone" which is a design standard that would be incorporated within the Lemon Avenue railroad crossing intersection in Diamond Bar which will result in JUNE 6, 2017 PAGE 6 CITY COUNCIL trains no longer needing to blow their horns as they are required to do by law, as they enter the intersection. Progress is being made. However, there may be nothing more the City can do to mitigate the noise bouncing off of the buildings next to the railroad tracks today. C/Tye asked who sets the decibel standard for trains. CM/DeStefano responded that he believed it to be the federal government that has set the standards which involve many factors including speed of the train entering the crossing as to how many times the train must engage the horn and for what period of time. C/Tye said he gets the number of times and how long it has to be but in an area there are not the types of crossings that the public would encounter on the road and how hard would it be to inquire about the possibility that at certain hours it is not necessary? CM/DeStefano said he is not sure what might be required. The area behind the Little League which is near Kohl's Department Store is the area where there is a private crossing and the train noise comes from the horns that are mandated to be honked at that private crossing where seldom there is anyone and it occurs in the middle of the night as well as during daytime hours which is what most people are hearing. It might be possible to pursue a "Quiet Zone" in that area as well but staff would have to research the matter and look into the progress of the Temple Avenue crossing as well. MPT/Low asked CM/DeStefano if there might be a staff person who residents could contact to gain information regarding the Tres Hermanos proposal. CM/DeStefano said at this point he believes it should remain in the City Manager's office or Community Development Department. At this point, the City Manager's office is managing the issue. PWD/Liu has weighed in as well as part of the monitoring of the City of Industry's work efforts. But until further notice, he believes any contact from the public should be with the City Manager's Office. As previously stated, there is a lot of information floating about and staff does not know who has originated the information. An example of "fake news" is the so- called 10,000 homes someone threw out in the universe more than a year ago which could not have been more false and designed by individuals who wished to generate a lot of concern to make just about anything look better than 10,000 homes that were never ever going to be approved by the two cities (Diamond Bar/Chino Hills) because not only does the General Plan and Zoning not allow 10,000 homes, neither City was ever going to do that. Staff can make the best possible effort to bring forth factual information but on this topic there is still a lot the City does not know and cannot control. JUNE 6, 2017 PAGE 7 CITY COUNCIL MPT/Low said in her opinion, having a point person would get rid of that problem. MPT/Low said that with respect to comments regarding the short-term rentals, what does CM/DeStefano advise neighbors to do pending action by a City prosecutor? CM/DeStefano said he would advise anyone who believes there may be a short- term rental property adjacent to them in their neighborhood, to contact CDD/Gubman at 839-7031 and if that rental is creating a disturbance of any kind immediately contact the Sheriffs Department and let the Sheriff's Department determine whether or not there is a violation of law which helps the City to document the issue and move the process forward to take appropriate action. 5.1 Traffic and Transportation Commission Meeting — June 8, 2017 — 7:00 p.m., Windmill Community Room, 21810 Copley Drive (Canceled). 5.2 Planning Commission Meeting — June 13, 2017 — 7:00 p.m. — Windmill Community Room, 21810 Copley Drive (Canceled). 5.3 Concerts in the Park — June 14, 2017 — 6:30 — 8:00 p.m., Bumptown (Latin) — Sycamore Canyon Park, 22930 Golden Springs Drive. 5.4 Movies "Under the Stars" (Storks) — June 14, 2017 — Immediately following Concerts in the Park. 5.5 General Plan Advisory Committee Meeting (GPAC) — June 15, 2017 — 6:30 p.m., Windmill Community Room, 21810 Copley Drive. 5.6 City Council Meeting — June 20, 2017 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive. 6. CONSENT CALENDAR: C/Tye moved, C/Herrera seconded, to approve the Consent Calendar as presented with C/Tye pulling Item 6.7 for separate consideration. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Herrera, Tye, MPT/Low, M/Lin NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Lyons 6.1 WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS AND ADOPT THE CONSENT CALENDAR. JUNE 6, 2017 PAGE 8 CITY COUNCIL 6.2 APPROVED CITY COUNCIL MINUTES: 6.2.1 Joint Meeting with Planning Commission of March 29, 2017. 6.2.2 Study Session of May 16, 2017 6.2.3 Regular Meeting of May 16, 2017 6.3 RATIFIED CHECK REGISTER DATED May 11, 2017 through May 31, 2017 totaling $988,823.92. 6.4 APPROVED TREASURER'S STATEMENT FOR APRIL 2017. 6.5 AWARDED CONTRACT TO ADVANCED OFFICE SOLUTIONS FOR COPIER SERVICE IN AN AMOUNT NOT -TO -EXCEED $80,000 FOR THE PERIOD JULY 1, 2017 THROUGH JUNE 30, 2022. 6.6 ADOPTED RESOLUTION NO. 2017-18: APPROVING FINAL PARCEL MAP NO. 72730, TO SUBDIVIDE AIRSPACE FOR A 21 -UNIT OFFICE CONDOMINIUMON A 3.59 ACRE COMMERCIAL LOT, LOCATED AT 1470 VALLEY VISTA, DRIVE (APN: 8293-050-010). 6.8 RESOLUTION NO. 2017-19: ACCEPTING A PORTION OF LARKSTONE DRIVE LOCATED WITHIN CITY OWNED LOT 72 OF TRACT MAP NO. 32091 (APN 8763-026-901) INTO THE CITY'S SYSTEM OF STREETS. 6.9 APPROVED NOTICE OF COMPLETION FOR THE CONSTRUCTION OF THE STEEP CANYON CONNECTOR TRAIL AND THE PANTERA PARK TRAIL PROJECT. 6.10 ADOPTED RESOLUTION 2017-20: APPROVING PLANS AND SPECIFICATIONS AND ESTABLISHING A PROJECT PAYMENT ACCOUNT; AWARDED THE CONSTRUCTION CONTRACT FOR THE AREA 5 RESIDENTIAL AND COLLECTOR STREET REHABILITATION (SLURRY SEAL, CHIP SEAL & OVERLAY) AND BREA CANYON CUTOFF ROAD DRAINAGE IMPROVEMENT AND PAVEMENT REHABILITATION PROJECT TO COPP CONTRACTING INC. IN THE AMOUNT OF $1,731,182.50 AND AUTHORIZED A CONTINGENCY AMOUNT OF $134,833.69 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $1,866,016.19. MATTERS WITHDRAWN FROM CONSENT CALENDAR: 6.7 AWARD A THREE-YEAR CROSSING GUARD SERVICES CONTRACT WITH AMERICAN GUARD SERVICES, INC. BEGINNING JULY 1, 2017 TO JUNE 30, 2020 WITH A NOT -TO -EXCEED AMOUNT OF $148,441 FOR FISCAL YEAR 2017-2018, $155,142 FOR FISCAL YEAR 2018- 2019, AND $167,260 FOR FISCAL YEAR 2019-2020. JUNE 6, 2017 PAGE 9 CITY COUNCIL C/Tye asked if it was possible to have the school districts pick up the cost of crossing guard service since the City is servicing children going to schools in the local school districts' ($500,000 over three years). CM/DeStefano said the short answer is that everything is negotiable. There are many cities that provide such services and there are many more cities that have school districts that provide and pay for these services because generally speaking, the need is brought on by the school children going to those public or private schools. At this point there is no contract with the school district to pay for any portion of the services but it does not mean there could not be a contribution provided by the school district after negotiations. C/Tye asked how long the City has been paying for this service and how did the City get into doing so in the first place. CM/DeStefano said he did not recall how the City got into it. He believes some of it was inherited when the City incorporated. That said, the City has been providing that public service for at least 20 years. C/Herrera explained that cities are responsible for safety in and of its streets and she believes that's how the City got involved. At the same time she does believe Diamond Bar is very magnanimous and the City of Walnut does not contribute anything toward street crossing guards. CM/DeStefano said he was not aware of what Walnut's contribution might be. M/Lin suggested C/Tye amend his motion to request City staff to determine whether the schools would be willing to contribute all or part of the school crossing guard expenses. C/Tye agreed. C/Herrera said that having been a former school board member for 16 years she can say that the school district most likely would respond that money is tight and they do not have any funding for this which is why she believes the City got involved because the City is responsible for traffic and safety in the streets. C/Tye asked if the school districts have funds specifically allocated for transportation or student related issues. C/Herrera replied no, school districts do not receive any such funds. In fact, she has been asked by members of the school district if some of the City's transportation funds could be donated to them for the cost of their buses they use to transport students. JUNE 6, 2017 PAGE 10 CITY COUNCIL C/Tye moved, C/Herrera seconded, to Award A Three -Year Crossing Guard Services Contract with American Guard Services, Inc. beginning July 1, 2017 to June 30, 2020, with a not -to -exceed amount of $148,441 for Fiscal Year 2017-2018, $155,142 for Fiscal Year 2018-2019, and $167,260 for Fiscal Year 2019-2020, with a request for staff to contact the school districts regarding a possible contribution in full or part to the contract costs. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Herrera, Tye, MPT/Low, M/Lin NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Lyons 7. PUBLIC HEARINGS: None 8. COUNCIL CONSIDERATION: 8.1 EMPLOYMENT CONTRACT WITH NEW CITY MANAGER DANIEL H. FOX, JR., TO BE EFFECTIVE JULY 10, 2017. CM/DeStefano stated that as the Council and community is aware, he is about to end his term with the City of Diamond Bar after 11 years as its City Manager and nearly 27 years as an employee of the City of Diamond Bar. To that end, it,is his great pleasure to have assisted the City Council in seeking a replacement and the decision the Council is being asked to make this evening will pass the mantle to a great candidate that has been selected as a result of an exhaustive recruitment process that began in December when he formally announced his retirement. The Council developed its characteristics/profile of what it was looking for in the next leader of this organization and manager to the City Council. The Council began its recruitment effort with announcements, a recruitment brochure, advertising in various journals and publications that catered specifically to public administrators and city managers. The City received about 67 applications for the position, worked through those applications and pared them down to a manageable number of highly qualified candidates for an interview process which eventually concluded with the Council's choice candidate, Dan Fox, for contract negotiations to be its next City Manager. The City Council authorized the City Attorney to negotiate a contract with Mr. Fox on the Council's behalf. CM/DeStefano is pleased to forward the recommendation from CA/DeBerry, himself and staff that the City Council adopt the agreement with Mr. Fox. Mr. Fox comes to the City of Diamond Bar most recently serving in the City of Laguna Nigel as the Assistant City Manager responsible for a wide variety of areas of that organization. He is an economic development professional, a community development director in his past and is familiar with this area through his five-year experience as the community development director in the partner City of Walnut which brings to Diamond Bar not only the consistency of knowing the local area and many other county agencies and support teams, but his JUNE 6, 2017 PAGE 11 CITY COUNCIL service in an Orange County contract city format (Laguna Nigel) with County fire, sheriff, etc. brings him additional experience in the overall Diamond Bar contract city format and how an organization benefits by a contract city format. Mr. Fox is a fine individual who is educated and well- prepared. CA/DeBerry stated that under newly enacted state laws, the city council is required to orally report the compensation including fringe benefits paid to a city manager in an oral presentation for new contracts or changes to compensation from old contracts. He summarized the provisions of the proposed contract with the new City Manager Dan Fox. Pursuant to that agreement he will become the City Manager effective July 10, 2017 which is three days after Mr. DeStefano's retirement. His salary would be $210,000 annually; he would receive a $500 per -month car allowance; a $7,500 payment in deferred compensation for the first year and $15,000 in deferred compensation for the second year; for the first year only he would receive 40 -hours of vacation leave and 40 -hours of sick leave — otherwise, he would receive all of the same retirement, vacation and medical benefits provided to the City's other executive management employees. C/Tye said that in his time on the City Council there has not been an opportunity to appoint a city manager and sometimes, as in this case, people do not get an opportunity to see how this City and its staff works together. From the time that the Council could not convince CM/DeStefano not to retire to this moment in time, HR/Haug has done a magnificent job. While she may be one of the quietest individuals on staff, from the time she put together the requirements and the plan for advertising, handle applications, etc. going forward, she did a magnificent job and it was a pleasure to watch her in action. The City Council had the option of using its own HR Manager or go to a national search and C/Tye is very glad that the Council gave HR/Haug the opportunity to show what she can do. C/Tye thanked HR/Haug very much for her help in this matter. C/Herrera said she has been on the Council for nearly 22 years and has worked with three different city managers. This City is only 28 years old and has had only four city managers to date and she will miss CM/DeStefano terribly! C/Herrera moved, C/Tye seconded, to engage in an employment contract with new City Manager Daniel Fox, Jr. to be effective July 10, 2017. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Herrera, Tye, MPT/Low, M/Lin NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Lyons JUNE 6, 2017 PAGE 12 CITY COUNCIL Mr. Fox said he is honored to have been selected to serve as the next City Manager of Diamond Bar and thanked the City Council for their consideration. He has heard great things about the staff and had the privilege of meeting many of the executive team members and staff members through the selection process. He looks forward to working with staff to complete many of the projects underway and projects that will be undertaken in the future. He knows he has big shoes to fill and most particularly if he has the emcee role at the meetings. He appreciates the support of CM/DeStefano and wishes him the best and a happy and healthy retirement. He introduced his son, Cameron and his wife Ann and thanked them for their support as he works through the next chapter in his career. He looks forward to serving the City of Diamond Bar. NOTE: THE FOLLOWING AGENDA ITEMS 8.2, 8.3, 8.4 AND 8.5 WERE CONSOLIDATED INTO ONE STAFF PRESENTATION AND VOTE AS PART OF THE COUNCIL'S CITY BUDGET ADOPTION CONSIDERATION: 8.2 ADOPT RESOLUTION 2017-21: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING AND ADOPTING A BUDGET FOR THE CITY OF DIAMOND BAR FOR THE FISCAL YEAR COMMENCING JULY 1, 2017 AND ENDING JUNE 30, 2018, INCLUDING MAINTENANCE AND OPERATIONS, SPECIAL FUNDS AND CAPITAL IMPROVEMENTS, AND APPROPRIATING FUNDS FOR ACCOUNTS, DEPARTMENTS, DIVISIONS, OBJECTS, AND PURPOSES THEREIN SET FORTH. FD/Honeywell presented staff's report for the Fiscal Year 2017-18 City Manager's recommended budget which provides General Fund resources of $29.7 million, $29.2 in General Fund Appropriations and increases the General Fund Reserves by an estimated $447,000. The budget, as proposed, incorporates modest yet realistic growth in both revenue and expenditures over the current year's projected numbers while maintaining excellent service levels to the community. After the use of General Fund Reserves in great part for Capital projects, it is anticipated that the City will end the year with $17.7 million in General Fund Reserves or 60.5 percent of General Fund Appropriations. This year the approach taken when developing the Fiscal Year 2017-18 was a bit different than in past years which started in February 2017 with staff looking at not just what was to be accomplished in FY 2017-18, but looking forward through 2020. A citywide strategic plan was developed in order to help implement the priorities of the City Council. The framework for this strategic plan was achieved by defining the City's Vision Statement which is "Celebrating our Roots — Building a Thriving Future" and identifying broad overarching goals, all of which can be aligned with categorized strategic priorities. This effort results in specific and JUNE 6, 2017 PAGE 13 CITY COUNCIL measureable departmental objectives that have an implementation timeline. The budget has been developed around the City's vision, goals and priorities presented in the strategic plan. Study Sessions were held with the City Council to help develop and refine the priorities presented in this plan. The Strategic Plan was adopted by City Council on April 4th, 2017. Noteworthy is that the budget document has a different look and feel than in prior years. It was developed using the best budget practices set forth by the Governmental Finance Officers Association. Using this GFOA model promotes improvements in public sector budgeting and enables governments of all sizes to provide citizens and stakeholders with clear, understandable and complete budget documents. The document incorporates financial perspective, demographics, Diamond Bar history and a concise explanation of the budget process so the average reader can understand the information presented. - The General Fund estimates resources of $29.7 million for Fiscal Year 2017-18. Budgeted Revenues are 15.3 percent higher than FY 2016-17 or 1.3 percent higher when the use of Reserves are excluded. Property tax and related property tax in lieu of VLF are the two highest revenue sources to the City and they are projected to grow by four percent during FY 2017-18. Sales tax is projected to be slightly lower in FY 2017-18 due to one-time adjustments in FY 2016-17. There has been an expanded effort on the part of Council and City staff, in order to diversify the sales tax base of the City and offer more options for residents to shop and dine in Diamond Bar. This is evidenced by significant development at the new Sprouts/Ross retail store site with several nationally recognized stores and restaurants scheduled to open during FY 2017-18. The City will realize an increase in sales tax revenue of about $275,000 which will increase further with the addition of more stores. Other exciting projects on the horizon include the development of a hotel and office suites at the former Honda property and another project at the existing Brea Canyon Road trailer storage site that will include a hotel, offices and a restaurant. Once again, staff is recommending the sale of excess Prop A Funds. By selling these funds, the City will exchange them for less restrictive General Fund money which can be used for any use throughout the City. Every effort has been made to keep appropriations at or near the same level as the current fiscal year estimates. The General Fund estimated appropriations are $29.2 million. Factored into the proposed budget is a 2.4 percent Cost of Living adjustment for benefited employees and JUNE 6, 2017 PAGE 14 CITY COUNCIL executive staff, along with a $50 to the Benefit Allotment. The City Manager regularly reviews the departmental operations and staffing structures of the City in order to ensure that it is delivering services to the residents in the most efficient and cost-effective manner possible. The City Manager has identified changes to the organizational structure in order to meet these goals, which are as follows: To establish a senior neighborhood enforcement officer job classification as a full-time non-exempt position at salary grade 23ne. The newly established Senior Neighborhood Improvement Officer will deal with more complex issues and take the lead on investigation and coordination of enforcement issues such as boarding houses, marijuana dispensaries, illicit massage establishments, and manage all aspects of nuisance abatement and coordinate the City's efforts with other agencies. If approved by the City Council, the City Manager will reclassify an existing Neighborhood Improvement Officer to the Senior Neighborhood Improvement Officer position. Also, it is proposed that a Permit Services Coordinator job classification be established as a full-time non-exempt position at salary grade 21ne. Currently, there is one City employee that acts as the liaison between the contract Building and Safety staff, City staff and the development community. The workload over the last few years has risen in both volume and complexity. The additional duties that the Permit Technician is performing are at a level above other similar municipalities. In order to best serve the City's residents and the development community, it is recommended that the City Council reclassify the Permit Technician to Permit Services Coordinator. Upon the reclassification of the current Permit Technician to Permit Services Coordinator, the Permit Technician job classification can be deleted. Finally, it is proposed to establish a part-time non -benefited Recreation Leader 3 job classification at salary grade H8. This position would require candidates to have two to three years of recreation -specific experience and be expected to provide lead an onsite supervision to other less -experienced part-time recreation staff. The financial impact of all changes outlined above to the personnel structure is $12,600. Aside from salaries and benefits, the Sheriff's Department contract is one of the City's larger expenditures. The Sheriff's Department notified the City that the increase to the FY 2017-18 Law Enforcement Contract will be 3.872 percent for a total Law Enforcement budget of about $6.7 million. Also included in the increase is a payment of 10 percent ($585,000) into the Sheriff's Liability Trust Fund. This fund has been set up to offset any costs associated with liability claims filed against the Sheriff's Department. The total expected increase is about $244,000 over the current fiscal year. JUNE 6, 2017 PAGE 15 CITY COUNCIL The FY 2017-18 budget provides for the use of General Fund Reserves in the amount of $4.3 million. A majority of these reserve funds will be used for CIP projects with the balance being used to fund Economic Development efforts and subsidizing the Lighting and Landscape Districts (LLD). At the end of FY 2017-18 it is expected that resources will outpace appropriations by about $447,000 and the ending estimated General Fund Reserve level will be $17.7 million or 60.5 percent of appropriations. Also included in the proposed budget are various Special Revenue Funds, the Debt Service Fund, Equipment Replacement Fund and the Capital Improvement Fund. These types of funds have specific guidelines as to how the resources may be used. The City uses these funds to pay for things such as slurry seal projects, transit related programs, solid -waste reduction programs and unforeseen fleet costs and network upgrades. It is proposed that a new fund, the Measure M Fund, be established in FY 2017-18. On November 8, 2016 Los Angeles County voters approved a one-half cent sales tax increase that will improve local streets, repair potholes and improve traffic flow and safety. During FY 2017-18 the City will receive approximately $672,600 and will,use this money to partially fund a groundwater drainage improvement project, a streetscape project at Diamond Bar Boulevard and intersection enhancements at Grand Avenue and Golden Springs Drive. The FY 2017-18 Capital Improvement budget includes projects totaling $21.2 million of which $16.1 million are project carryovers from the current fiscal year. The balance of the $5.1 million is either new projects or additional appropriations for existing projects. Included in the new projects for FY 2017-18 are two street improvement projects, two traffic management projects, street enhancement projects, trail enhancements, playground improvements, HVAC replacement at City Hall and the next phase of the roof rehabilitation at the Diamond Bar Center. 8.3 RESOLUTION 2017-22: ADOPTING THE FY 2017-18 STATEMENT OF INVESTMENT POLICY. FD/Honeywell reported that each year the City Council adopts the Investment Policy which guides what kind of vehicles the City can invest its "idle" funds in, most of which is set forth by the California Code. The 2017-18 FY investment policy is unchanged from the 2016-17 FY Investment Report. 8.4 RESOLUTION NO. 2017-23: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, SETTING THE PROPOSITION 4 (GANN) APPROPRIATIONS LIMIT FOR FISCAL YEAR 2017-2018 FOR THE CITY OF DIAMOND BAR IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE. JUNE 6, 2017 PAGE 16 CITY COUNCIL M FD/Honeywell stated that each year the maximum designated GANN limit given to the City is calculated annually based on what revenues the City expects to bring in. For FY 2017-18 the City is well under the limit of $44 million at about $35 million. RESOLUTION NO. 2017-24: ESTABLISHING A COMPENSATION PLAN INCORPORATING SALARY RANGES AND FRINGE BENEFITS FOR CLASSIFICATIONS OF EMPLOYMENT EFFECTIVE JUNE 24, 2017 AND AMENDING RESOLUTION 2017-06. As previously reported under Item 8.2. MPT/Low thanked FD/Honeywell, her staff and CM/DeStefano for their excellent job in preparing the budget items and presenting a budget document that is extremely readable and easy to understand. Viewers can review the budget on the City's website. M/Lin said that the City Council is very proud of the way the City handles its finances and how it continues to be a fiscally conscientious City. Thanks to staff and especially to CM/DeStefano and FD/Honeywell. C/Herrera moved, MPT/Low seconded, to adopt the following: Resolution 21: A Resolution of the City Council of the City of Diamond Bar approving and adopting a Budget for the City of Diamond Bar for the fiscal year commencing July 1, 2017 and ending June 30, 2018 including Maintenance and Operations, Special Funds and Capital Improvements, and appropriating funds for Account, Departments, Divisions, Objects and Purposes therein set forth; Resolution 22: Adopting the FY 2017-18 Statement of Investment Policy; Resolution 23: A Resolution of the City Council of the City of Diamond 113ar, County of Los Angeles, State of California, setting the Proposition 4 (GANN) appropriations limit for Fiscal Year 2017-2018 for the City of Diamond Bar in accordance with the provisions of Division 9 of Title 1 of the Government Code; and, Resolution 24: Establishing A Compensation Plan incorporating Salary Ranges And Fringe Benefits for Classifications of Employment effective June 24, 2017 and Amending Resolution 2017-06. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Herrera, Tye, MPT/Low, M/Lin NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Lyons 8.6 APPOINTMENT TO THE TRAFFIC AND TRANSPORTATION COMMISSION TO FILL THE UNEXPIRED TERM OF SHOKOUFEH MIRZAEL JUNE 6, 2017 PAGE 17 CITY COUNCIL M/Lin said the Council applicants, one from an decided to appoint Lisa expires February 2018. received applications from two very qualified attorney and one from an engineer. He has Washington to fill the unexpired term which C/Herrera moved, MPT/Low seconded to ratify M/Lip's appointment of Lisa Washington to fill the unexpired term of Shokoufeh Mirzaei which expires February 2018. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Herrera, Tye, MPT/Low, M/Lin NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Lyons 9. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: C/Herrera serves on the Board of Foothill Transit and attended a Governing Board meeting on May 26 during which the Board adopted the Business Plan for Foothill Transit and modified service changes to bus routes, most of which were in other cities such as San Dimas, Claremont and Azusa. There was one change that affects Diamond Bar which is the bus 493 that comes to the Diamond Bar Park 'n Ride. Because the lot is so congested with carpoolers, it will no longer serve as a bus pickup location. As a result, customers riding on Foothill Transit will now be picked up at the City of Industry Park `n Ride on Brea Canyon Road. C/Tye welcomed incoming City Manager Dan Fox and family. Great job by staff on the budget which is,a long and tedious process. He agreed with MPT/Low that it is a very understandable document and while it is difficult to see anyone get excited about a budget, FD/Honeywell does it as well as anybody. He thanked HR/Haug for doing a terrific job through the process of getting the City Council to the selection of Dan Fox to serve as the City's new manager. He is always mystified as to how people can show up at tonight's meeting and state they did not hear about tonight's meeting until yesterday. He encouraged everyone to attend Council Meetings to express their concerns. The Council meets every first and third Tuesday of the month unless otherwise notified. For those who may have missed it during tonight's future events that the first Concerts in the Park for this year which has been an annual event for the past 25 years, will be next Wednesday, June 14th and hoped to see everyone at Sycamore Canyon Park. MPT/Low reported that she and C/Lyons worked on the Fee Analysis for the City. She thanked M/Lin for putting the subcommittee together and thanked staff for their hard work, research, good humor and patience She and C/Tye met with the Legislative Subcommittee and she looks forward to keeping the Council informed of upcoming legislation. The House and the Senate in Sacramento are super -busy and it is more important that Diamond Bar keeps tabs on what they JUNE 6, 2017 PAGE 18 CITY COUNCIL are doing. She welcomed Dan Fox and thanked him for joining the Diamond Bar family. HR/Haug quietly goes about doing great work and the Council appreciates her thoughtfulness, graciousness and tenacity. Last week she participated in the Ribbon Cutting Ceremony for a new business in the HMart Center called iDance which promises to be a fun business. Last Sunday the Diamond Bar Chinese American Association celebrated its 28th year. Congratulations to them and for their service in the City of Diamond Bar. She commented on the Ribbon -Cutting Ceremony for the new Pantera Park hiking trail just in time for summer's magnificent views. Congratulations to the graduating classes of 2017and wished all the fathers a Happy Father's Day. M/Lin said he attended several ceremonies during the past three weeks but the highlight for him was the Pantera Park hiking trail opening. The trail is 1.6 miles and when one arrives at the top they can see downtown LA and Palm Springs. This weekend he and his wife plan to climb the trail and urges everyone to partake of the hike. He received a letter from the President of the Center for Excellence in Education in Virginia who advised him that there is a so-called US Biology Olympian competition with 10,000 registered students from which the final 20 will compete which is currently being held at Marymount University. One of the students from Diamond Bar, Alexander Chow is among the 20 finalist and the President urged him to make this announcement and ask people to offer their encouragement. He wished CM/DeStefano good luck. There is only one more Council meeting before he leaves the City. M/Lin thanked HR/Haug for her hard work. ADJOURNMENT: With no further business to conduct, M/Lin adjourned the Regular City Council Meeting at 8:05 p.m. TOMMYCRIBBINS, CITY CLERK The foregoing minutes are hereby approved this 2Ofh day of June . 2017. JIM IN, MAYOR