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HomeMy WebLinkAbout12/14/2004THIS MEETING IS BEING BROADCAST LIVE BY ADELPHIA FOR AIRING ON CHANNEL 3 AND BY REMAINING IN THE ROOM, YOU ARE GIVING YOUR PERMISSION TO BE TELEVISED. THIS MEETING WILL BE RE -BROADCAST EVERY SATURDAY AT 9:00 A.M. AND EVERY TUESDAY AT 8:00 P.M. ON CHANNEL 3. CITY OF DIAMOND BAR CITY COUNCIL AGENDA December 14, 2004 Next Resolution No. 2004-64 NextOrdinance No. 10(2004) CALL TO ORDER: 6:30 p.m. PLEDGE OF ALLEGIANCE: Mayor INVOCATION: Dr. James Price, Diamond Canyon Christian Church ROLL CALL: Council Members O'Connor, Zirbes, Mayor Pro Tem Herrera, Mayor Chang APPROVAL OF AGENDA: Mayor 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: 3. PUBLIC COMMENTS: "Public Comments" is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Council on Consent Calendar items or matters of interest to the public that are not already scheduled for consideration on this agenda. Although the City Council values your comments, pursuant to the Brown Act, the Council generally cannot take any action on itemsnot listed on the posted agenda. Please complete a Speaker's Card and give it to the City Clerk (completion of this form is voluntary). There is a five-minute maximum time limitwhen addressina the Citv Council. 4. RESPONSE TO PUBLIC COMMENT: Under the Brown Act, members ofthe City Council may briefly respond to public comments but no extended discussion and no action on such matters may take place. 5. SCHEDULE OF FUTURE EVENTS: 5.1 D.B. COMMUNITY FOUNDATION MEETING— December 16, 2004 — 7:00 p.m., AQMD/Government Center Room CC -8, 21865 Copley Dr. 5.2 CHRISTMAS HOLIDAY OBSERVANCE — City Offices will be closed December 23 and December 24, 2004. Offices will reopen Monday, December 27, 2004. DECEMBER 14, 2004 PAGE 2 CITY COUNCIL 5.3 NEW YEAR'S DAY OBSERVANCE - City Offices will be closed, Friday, December 31, 2004. Offices will reopen Monday, January 3, 2004. 5.4 CITY COUNCIL MEETING - January 4, 2005 - 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.5 PLANNING COMMISSION MEETING - January 11, 2005 - 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.6 STATE OFTHE CITY -January 13, 2005 -7:00 a.m., D.B. Center, 1600 S. Grand Ave. 5.7 TRAFFIC AND TRANSPORTATION COMMISSION - January 13, 2004 - 7:00 p.m., AQMD/Government Center Hearing Board Room, 21865 Copley Dr. 6. CONSENT CALENDAR: 6.1 City Council Minutes - Special Meeting ofDecem ber 1,2004 -Approve as submitted. 6.2 Check Register - Ratify Check Register dated December 9, 2004 in the amount of $297,887.70. Requested by: Finance Division 6.3 Rejection of Claim - Filed by Mike and Susan Guzman on December 2, 2004. Recommended Action: Reject Claim. Requested by: City Clerk 6.4 Second Reading And Adoption Of Ordinance No. 09(2004) Amending Section 3.28.060 Of The Diamond Bar Municipal Code Eliminating Reference To The Finance Committee. Recommended Action: Adopt. Requested by: City Manager DECEMBER 14, 2004 PAGE 3 CITY COUNCIL 6.5 Adopt Resolution No. 2004 -XX: Authorizing Termination Of The Confirming Letter Of Credit And Execution And Delivery Of An Amendment ToThe Reimbursement Agreement, Pertaining To The City Of Diamond Bar Public Financing Authority Variable Rate Lease Revenue Bonds, 2002 Series A(Comm unity/Senior Center Project); And Authorizing Certain Other Actions In Connection Therewith. Recommended Action: Adopt. Requested by: City Manager 6.6 Adopt Resolution No. 2004 -XX: Establishing Salary Ranges For All Classes Of Employment Effective The Pay Period Commencing December 26, 2004; Rescinding Resolution No. 2004-61 In Its Entirety. Recommended Action: Adopt. Requested by: City Manager 6.7 Approval Of Contract Amendment No. 6 To Extend City -Wide Landscape Maintenance Contract With Trugreen Landcare For One Year, January 1, 2005 Through December 31, 2005 In The Amount Of $315,564; Plus Appropriation Of $36,000 From LLAD #39 Reserves For Contract Costs Related To LLAD #39 And Appropriation Of $15,000 From General Fund Reserves For Contract Costs Related To City Parks. Recommended Action: Approve. Requested by: Community Services Division 7. PUBLIC HEARINGS: None 8. COUNCIL CONSIDERATION: 8.1 (a) Selection of Council Appointee -Individual Council members have submitted their nominees, and the names are as follows: Jack Tanaka, Joe McManus and Dan Nolan. The Council will discuss and consider these nominations and any other candidates itwishes at its discretion. (b) Selection of Term of Appointee -The Council will, at its discretion, include consideration ofthe appointee's term. (c) Call for Election - The Council may opt to call for a special election or continue the matter to the January 4, 2005 meeting. DECEMBER 14. 2004 PAGE 4 CITY COUNCIL 8.2 Reorganization of Mayor Pro Tem. Selection of Mayor Pro Tem. COUNCIL SUB -COMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: 10. ADJOURNMENT: Agenda No. 6.1 CITY OF DIAMOND BAR CITY COUNCIL SPECIAL MEETING DECEMBER 1, 2004 CALL TO ORDER: Mayor Zirbes called the Special Meeting to order at 8:11 a.m. in Conference Room B of the South Coast Air Quality Management District/Government Center, 21865 Copley Dr., Diamond Bar, CA. Present: Council Members Chang, O'Connor, Mayor Pro Tem Herrera and Mayor Zirbes. Council Member Huff was excused. Staff Present: Linda Lowry, City Manager; Michael Jenkins, City Attorney; James DeStefano, Deputy City Manager; David Doyle, Deputy City Manager and Tommye Cribbins, Assistant City Clerk. 1. PUBIC COMMENTS: None Offered RESPONSE TO PUBLIC COMMENTS: None 2. CONSIDERATION OF THE PROCESS FOR APPLICANT INTERVIEWS TO FILL CITY COUNCIL VACANCY. MPT/Herrera felt it was important for the four remaining Council Members to interview applicants as a group rather than one-on-one. Individuals say different things to different people and there should be continuity in the process and the same set of questions should be used to interview each candidate in the interest of fairness. Each individual should be interviewed in Conference Room B with the remaining applicants waiting outside the room unable to hear the responses. In this way, the four Council Members could objectively evaluate individual responses. She felt it might be too burdensome to interview all applicants on December 7 because 21 applications had been pulled and the City could receive even more applications by Friday. M/Zirbes pointed out that there might be only 10 applicants since only 6 of the 21 applications had been submitted to date. MPT/Herrera said that the Council had been through the process of selecting a City Manager. In that case, Council Members reviewed and ranked each candidate with the top 5 candidates being selected for interview. She recommended that the Council conduct the same type of interview process for the Council vacancy. She also recommended that staff list the candidates with columns for ranking next to each name. The Council Members should then rank each applicant individually and have staff collate the numbers to determine which five candidates the four Council Members would interview. DECEMBER 1, 2004 PAGE 2 CC SPECIAL MTG M/Zirbes felt that the fairest way to proceed would be to interview all applicants. For example, 15 individuals turned in applications. The interviews could be scheduled 10 minutes apart and then Council Members could rank applicants from the initial interview to determine the five finalists for a more in-depth interview. MPT/Herrera agreed that it would be courteous to interview all applicants. C/Chang agreed that it would most reasonable for all Council Members to interview all applicants, rank the applicants and then invite the top five back for a second interview. In response to C/O'Connor, CA/Jenkins stated that the interviews must be held in public view. However, the Council could say to the candidates that they would not be considered unless they were willing to abide by the Council's request to remain outside while others were being interviewed. C/O'Connor said that she was not familiar with about half of the individuals who pulled applications and that she had asked staff to set up appointments for her beginning on Friday so that she could meet the individuals prior to interviewing them. It was okay with her if the Council chose to interview individuals as a group and felt it was important that all applicants be interviewed. Rather than ranking 1 through 5 in order of preference, she preferred to pick the top five for final interview. She also felt that staff should contact each individual to inquire as to why their application had not been received. MPT/Herrera said that if people were truly interested in the position they would make the effort to complete and submit the application. Staff should not have to chase after individuals who should be responsible for their own actions or lack thereof. She felt that many individuals would be deterred from filling out and submitting Conflict of Interest forms each year. M/Zirbes said that the application form states that applicants who submit a resume and/or return the application by 3:30 p.m. on Friday, December 3 would be scheduled for an interview on December 7 and because the form is explicit about what needs to be done in order to have an interview on Tuesday, December 7, the Council should abide by those statements. C/O'Connor felt that 10 minutes was an insufficient amount of time to get to know an individual. Discussion ensued. C/Chang felt that each individual should have a 20 -minute interview. MPT/Herrera said she had a problem with Council Members conducting individual interviews. DECEMBER 1, 2004 PAGE 3 CC SPECIAL MTG M/Zirbes recapped: Each candidate will be granted a 20 -minutes interview; the study session/interview process will be backed down from 6:00 p.m. in accordance with the number of applicants; staff will contact each interviewee to give each individual a time slot; applicants are to be told that in order to be considered they must remain in the hall until they are called into the public interview session; interviews will be scheduled on a random basis in accordance with the applicant's availability; staff will provide a list of standard interview questions to each applicant. CA/Jenkins felt individuals would not be surprised about the questions asked by Council so it would be feasible to give them a list beforehand. Everyone understood what the job entailed and he felt the evaluation would depend more on Council's reactions to individual answers and that applicants would in all likelihood, come prepared to respond to why they believed they should be considered to fill the vacancy and what they believed they could contribute to the City. MPT/Herrera suggested that each Council Member pick a preferred candidate and those four be interviewed as the final candidates. Discussion ensued. CA/Jenkins responded to C/O'Connor that the rankings could be public without divulging how the Council Members arrived at the list of finalists. DCM/Doyle summarized: On December 7 the Council will hold the collective interviews, develop a rating sheet, present the sheets to staff, staff will go through the sheets and create the final interview list outside of the public arena in City Hall. The finalists will be contacted and invited back on December 14 for a second interview or selection. The December 7 regular meeting agenda would include an item calling for direction to staff for the final interview process. He asked who would be writing the interview questions. MPT/Herrera felt that if December 7 was a "get acquainted" session it would be a conversational type of process during which the Council could ask applicants questions about their applications, their experiences, involvement with the City of D.B., etc. The second round could be questions pertaining to specifics about how the applicant would work to help the City attain the Council's approved goals. There was general consensus. CA/Jenkins offered 10 possible questions to staff for the December 7 interview. CM/Lowry asked for specific direction in order to pass along the correct information to the applicants. M/Zirbes said that on December 7 the first round interviews would be finished by 6:00 p.m. leaving 30 minutes for Council discussion and selection of the final applicants for discussion and direction to staff during the regular meeting. C/O'Connor reiterated her assumption that on December 14 the finalists would DECEMBER 1, 2004 PAGE 4 CC SPECIAL MTG be interviewed prior to the regular meeting with nominations being offered during the regular City Council meeting. C/Chang said the Council should inform each applicant what process would lead to final determination during the first interview on December 7. CA/Jenkins assured C/O'Connor that there were a variety of alternatives and there was nothing that would preclude the Council from going back and approaching it in a different manner. If the Council is unable to reach a final decision. The Council could re-agendize the matter for the first January meeting. Some Councils like to start by having the Mayor call each Council Member's name to announce their top choice and then see if one person garners three votes. The other method would be to nominate each individual one at a time and vote yea or nay. There is no hard and fast rule. He personally liked the first method of calling the roll with each person announcing his/her choice. In fact, the Council could choose an individual who had not applied and had not gone through the interview process. In short, up to the point of special election, the Council can do whatever it wants in the selection process. DCM/DeStefano asked when the Council intended to start its process on December 14. Four Planning Commissioners have pulled applications and there is a Planning Commission the evening of the 14th, beginning at 7:00 p.m. PUBLIC COMMENTS: Jack Tanaka asked if the Council had made a decision about whether applicants would be allowed to remain in the public meeting after their interview. MPT/Herrera felt it would be uncomfortable and intimidating for applicants to remain in the room. C/Chang said it was a public meeting and anyone who wished to remain in the room once they were finished could do so. M/Zirbes agreed. Beatrice Grossman asked how many vacancies there were on the Council. Council Members responded that there is one opening replacing Mr. Huff. C/Chang reminded everyone that next November there would be three positions open. C/Chang indicated to C/O'Connor that he expected the Council to decide on December 14 or in January how long the selected applicant would serve. M/Zirbes said he intended to look at a selection based on filling out the balance of the term to avoid the election process. If the Council could not come to such a DECEMBER 1, 2004 PAGE 5 CC SPECIAL MTG determination it could be reduced to one year. He wanted to remain open-minded to placing the individual for the entire balance of the term. MPT/Herrera agreed and suggested the Council leave all options open to consideration. C/Chang said he would prefer to appoint someone for only one year and leave the future choice open to an election by the people. C/O'Connor said that she was inclined to confirm a three-year appointment only if it was the next highest vote getter from the last election. However, she was open to considering the three-year appointment. CM/Lowry asked for confirmation that there would not be an agenda item related to this process for discussion and direction to staff on December 7. Council so confirmed. CA/Jenkins said it would be helpful to go through each step of the process so that everyone was on the same page. DCM/Doyle reiterated: Friday, December 3: 3:30 p.m. deadline for applications. Staff would then begin to pull names from a hat (random order) to determine the order of scheduling applicants for interviews 20 minutes apart starting from 6:00 p.m. working back depending on the number of interviews. If random order does not work staff would have the flexibility to work the scheduling accordingly. This process would create the interview list for the Council as well as start time for the interviews. Prior to the interview, staff will put together a list of questions that would be included in Friday's packet. Those questions would be asked of applicants on Tuesday, December 7 during the initial interview. The Council would be seated in Conference Room B and the applicants would be seated in another room waiting for their interview time. At 6:00 p.m. when the last interview is completed the Council will commence to rank the applicants, how the nomination process will go forward and determine the second round of interviews between 6:00 p.m. and 6:30 p.m. prior to the regular Council meeting. CA/Jenkins asked if the Council wanted staff to make the questions available to the applicants in advance of the interview. Council concurred to have the list of questions available at City Hall. CA/Jenkins asked if the Council would have sufficient time between 6:00 p.m. and 6:30 p.m. to digest all of the interviews and determine what would happen next or has the Council already decided that the next step would be the ranking process. DCM/Doyle said his understanding was that based on the number of interviews the Council would on December 7 at the conclusion of the interview process, decide how many names they would give staff for the second interview. Council will discuss how it wants to do the nomination process and how Council will nominate people for actual voting per CA/Jenkins' recommendations. (This could also be decided prior to commencement of the December 14 regular meeting). DECEMBER 1, 2004 PAGE 6 CC SPECIAL MTG December 14: Second round of interviews to conclude prior to the regular meeting with the process being similar to the first round. C/Chang felt that at the end of the interview process on December 7th the Council should be able to select its final list. MPT/Herrera suggested the Council should have all interviews completed by 5:30 p.m. on December in order to have sufficient time to make a decision about who would be selected to participate in the final interview or to decide that the Council needs to have a second round of interviews prior to final selection. Staff should prepare a second round of questions in case the Council needed to conduct a second interview process. C/O'Connor said she was more comfortable with MPT/Herrera's scenario since the Council Members would be meeting the applicants for the first time. DCM/Doyle confirmed that the Council would not want consideration of an appointment placed on the agenda for the regular December 7 meeting. Council concurred. CA/Jenkins reminded Council Members that they previously considered compiling their rankings individually after the first interview and giving those rankings to staff for collation and presentation on December 14. MPT/Herrera said she would want to know the outcome on December 7. C/O'Connor wanted to leave her options open because she was not certain that she could arrive at two final candidates on December 7. C/Chang said that if Council could not come up with a final list on December 7 they should have a final list prior to the December 14 meeting. M/Zirbes asked to have the list by 9:00 a.m. on December 7 to see how many interviews the Council would have that evening and to determine at the end of the first interview whether the Council would need more time for second interviews. CA/Jenkins reiterated that Council would not reveal the rankings on the evening of December 7 but would instead present those rankings to staff by December 10. Should the names be made public on December 10 as part of the packet that gets mailed out for the meeting of December 14? Council Members indicated in the affirmative. CM/Lowry said that by end of business on December 7 the Council would tell staff whether or not to schedule a second go -round of interviews. CA/Jenkins said as a natural part of this process that some individuals may call DECEMBER 1, 2004 PAGE 7 CC SPECIAL MTG Council Members and lobby on their behalf or they may have other individuals call to lobby on their behalf. There will be such conversations during the period of time when Council Members are arriving at their ranking decisions and the Council should not give the impression that they were sequestered from this type of contact. C/O'Connor advised staff that she would not be able to start the interview process before 1:00 p.m. on December 7. CA/Jenkins summarized: By the end of the study session on December 7 Council would have a better idea as to what would happen next; there will be no agenda item for the regular December 7 meeting; by December 10 a packet would be sent out for the December 14 meeting that would include names of the "finalists" and whether there would be additional interviews on the 14th or the time would be devoted strictly to process of deciding on an appointment and for what length of time. CM/Lowry advised Council that time permits 13 interviews on December 7. M/Zirbes said there would be no discussion of this subject during the December 21St meeting because C/Chang would be out of the country. CM/Lowry asked if Council wanted a question included that addressed the length of time an applicant was willing to serve. Council concurred to hold the December 14 meeting in the main auditorium in full public view. MPT/Herrera asked if staff would prepare an analysis sheet for the Council Members that would include the name of each applicant so that during the interview process notes could be made for future reference. DCM/Doyle said staff would pare down the interview questions and included them on the analysis sheet. M/Zirbes said that Mr. Huff continues to create problems for the Council and City by stealing away EA/Whitehouse. M/Zirbes complimented EA/Whitehouse on her great care of the City Council and was happy for her that she would assume a new position. At the same time he was sad and sorry that she would be leaving the City and would not be there to take care of him and the other Council Members. MPT/Herrera said that in the nine years that she has been on the City Council EA/Whitehouse always did an outstanding job in making sure she was always prepared, had everything she needed to do her job and was directed to where she needed to go. DECEMBER 1, 2004 PAGE 8 CC SPECIAL MTG C/Chang said in the seven years he had been on the Council it was wonderful to work with EA/Whitehouse. Whenever the Council needed something EA/Whitehouse made it happen. ADJOURNMENT: With no further business to come before the City Council, M/Zirbes adjourned the Special Meeting at 9:36 a.m. Linda C. Lowry, City Clerk The foregoing minutes are hereby approved this day of , 2004. Wen Chang, Mayor AGENDA # 6.2 NOTICE REGARDING THE WARRANT REGISTER Please note that the Warrant Register has not been included in the electronic versions of the City Council Agenda Packets on the City's Web Site because severe formatting errors occur when attempting to convert this material. If you are interested in receiving a copy of the Warrant Register, please contact the City Clerk's office at 909-839-7000 to receive a FAXed copy or to pick one up in person. We apologize for the inconvenience. Agenda # 6.3 Meeting Date: December 14, 2004 TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager TITLE: Rejection of Claim —Filed by Mike and Susan Guzman — November 3, 2004 RECOMMENDATION: Carl Warren & Co., the City's claims administrator, recommends the City Council reject the claim filed by Mike and Susan Guzman. FINANCIAL IMPACT: There is no financial implication associated with rejecting this claim. The claim for damage is for approximately $625. Should the claim be successful, it will be paid by the JPIA. BACKGROUND: On November 3, 2004, Mike and Susan Guzman filed a Claim for Damages with the City alleging that the damage to sewer pipes was caused by roots from a tree owned by the City. Carl Warren & Co., the City's claims administrator, determined that the claim appears to be one of questionable liability and has recommended denial. Upon action by the City Council, appropriate notice shall be sent to the claimant and Carl Warren & Co. PREPARED BY: Tommye Cribbins, Executive Asst. REVIEWED BY: Deputy City Manager CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # 6.4 Meeting Date: December 14, 2004 AGENDA REPORT TITLE: Adopt Ordinance No. 09-2004 amending section 3.28.060 of the Diamond Bar Municipal Code eliminating reference to the Finance Committee RECOMMENDATION: The Finance Committee recommends the City Council adopt Ordinance No. 09-2004 amending Section 3.28.060 of the Diamond Bar Municipal Code to eliminate reference to the Finance Committee. FINANCIAL IMPACT: There is no financial implication associated with this action. BACKGROUND In November 2004 the City Council introduced Ordinance 09-2004 to revise the process the City uses to disburse payments. The attached Ordinance eliminates review of the register of payments by the Finance Committee and requires the review be conducted by the full Council. If adopted by the City Council tonight, the Ordinance will be effective in 30 days Prepared By: David Doyle Deputy City Manager Attachment: 1. Ordinance No 09-2004 Ordinance No. 09 (2004) An Ordinance of the City of Diamond Bar amending SECTION 3.28.060 of the Diamond bar municipal code REGARDING PAYMENT OF DEMANDS The City Council of the City of Diamond Bar does ordain as follows: SECTION 1. This ordinance is enacted for the purpose of amending Section 3.28.060 of the Diamond Bar Municipal Code to remove any reference to the Finance Committee as part of the process of issuing payments. SECTION 2. Section 3.28.060 of Title 3, Chapter 3.28 of the Diamond Bar Municipal Code is amended to read as follows: 3.28.060 Purchases; supplies; services (a) All demands, invoices or claims for purchases, supplies or services included within budgetary appropriations shall be presented in writing to the City Manager. All such demands, invoices or claims shall be fully itemized and verified as just and correct by the claimant or its authorized agent. (b) Each demand shall be appropriately documented. (c) Such demands, invoices, or claims shall be audited by Finance Director or his or her designee, who shall prepare a check register. The affidavit of the Finance Director shall be attached to the check register certifying its accuracy. (d) The check register shall be ratified by the City Council at a regular City Council meeting. (e) All claims shall be paid by checks drawn by the City and signed by the persons designated by resolution of the City Council. Section 3. The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be posted within fifteen (15) days after its passage in at least three (3) public locations in the City of Diamond Bar. Passed, Approved, and Adopted this day of , 2004. Mayor I, Linda Lowry, City Clerk of the City of Diamond Bar, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the Council of the City of Diamond Bar held on the day of , 2004, and was finally passed at a regular meeting of the City Council of the City of Diamond Bar held on the day of 2004 by the following vote: Ayes: Council Members: Noes: Council Members: Absent: Council Members: Abstained: Council Members: Linda C. Lowry, City Clerk Agenda # —6.5 Meeting Date: December 14, 2004 TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager TITLE: Resolution authorizing the termination of the Confirming Letter of Credit, and amending the terms of the Reimbursement Agreement pertaining to the Variable Rate Lease Revenue Bonds, and First Amendment to the Reimbursement Agreement with Union Bank of California RECOMMENDATION: Approve Resolution and First Amendment to the Reimbursement Agreement with Union Bank of California. FINANCIAL IMPACT: Cost of LOC Replacement CALSTRS Termination Fee Bond Counsel Financial Advisor UBOC Legal Fees S & P Rating Prorated cost of C Current FY 04-05 Budge - 10,000 LOC Fees 5,000 Confirming LOC Fees 25,000 1 Remarketing Fees 10,000 F 8.479 FY 04/05 LOC Fees per Schedule ' 115,717 Grand Total FY 04-05 Costs $178,196 Additional Appropriation Required 36,000 15,000 $173,000 .pJ, I'qV If savings cannot be located in the current budget during the midyear review, appropriation will be requested at that time. It is anticipated that there will be cost savings of approximately $210,300 over the next five fiscal years. BACKGROUND: In early 2004, the City requested that Kosmont Financial Services, Inc. and US Bancorp Piper Jaffray to perform an assessment of the City's Variable Lease Revenue Bonds to determine if costs could be reduced. In reviewing the underlying financial structure several alternatives that might be available were evaluated. It was found that the best alternative to pursue was the re -bidding of the existing Letter of Credit (LOC). DISCUSSION: In October, Kosmont Financial Services, Inc. was retained to bid and secure a replacement Letter of Credit that would produce an annual savings to the City. The re -bidding process solicited interest from seventeen financial institutions. Six of which expressed an interest in bidding, and requests for proposals were sent. Union Bank of California submitted the most competitive bid, which reduced the annual LOC fees from 115 basis points (bps) to 70 basis points. According to Kosmont Financial Services, the savings from the initial year will pay for all transaction costs except for approximately $5,400. The initial five fiscal year's savings, spanning 2005-2009, amount to approximately $210,300. The recommendation from Kosmont Financial Services is to leave in place the existing Union Bank of California LOC priced at 70bps, but terminate the CALSTRS Confirming LOC. The resolution presented for adoption terminates the Confirming Letter of Credit with CALSTRS and makes the necessary changes to the Union Bank of California LOC agreement. PREPARED BY: Linda G. Magnuson REVIEWED BY: Department Head Deputy City Manager Attachments: Resolution No. XX -XX, and First Amendment to the Reimbursement Agreement with Union Bank of California RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR AUTHORIZING TERMINATION OF THE CONFIRMING LETTER OF CREDIT AND EXECUTION AND DELIVERY OF AN AMENDMENT TO THE REIMBURSEMENT AGREEMENT, PERTAINING TO THE CITY OF DIAMOND BAR PUBLIC FINANCING AUTHORITY VARIABLE RATE LEASE REVENUE BONDS, 2002 SERIES A (COMMUNITY/SENIOR CENTER PROJECT); AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City of Diamond Bar Public Financing Authority (the "Authority") has issued its Variable Rate Lease Revenue Bonds, 2002 Series A (Community/Senior Center Project) (the "Bonds"); WHEREAS, to provide credit enhancement for the Bonds, the City has entered into a Reimbursement Agreement, dated as of December 1, 2002, by and between the City and Union Bank of California, N.A. ("Union Bank"), pursuant to which Union Bank issued its irrevocable, direct pay letter of credit (the "Union Bank Letter of Credit"); WHEREAS, Union Bank has entered into a Confirmation Agreement, dated as of December 1, 2002, with California State Teachers' Retirement System ("CaISTRS"), pursuant to which CaISTRS issued its Confirming Letter of Credit (the "Confirming Letter of Credit") to confirm payments made by Union Bank pursuant to the Union Bank Letter of Credit; WHEREAS, the City has determined that it is in the best interests of the City to exercise the City's right to terminate the Confirming Letter of Credit and to amend certain terms of the Reimbursement Agreement; WHEREAS, the City Council has reviewed the documentation related to the termination of the Confirming Letter of Credit and the amendment to the Reimbursement Agreement, which documentation is on file with the City Clerk of the City of Diamond Bar; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: The City hereby finds and determines that the foregoing recitals are true and correct. The "First Amendment to Reimbursement Agreement, " in substantially the form on file with the City Clerk of the City and presented to the City Council at this meeting, is hereby approved. Any one of the Mayor, the City Manager or the City Clerk of the City, or any designee of any of them (each, an "Authorized Officer" and collectively the 'Authorized Officers') is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the First Amendment to Reimbursement Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. The termination of the Confirming Letter of Credit according to its terms is hereby approved and any one of the Authorized Officers is hereby authorized to execute any and all notices or other documents necessary to effect the termination of the Confirming Letter of Credit. The Authorized Officers, the other officers and employees of the City, the members of the City Council, Bond Counsel and the other consultants to and agents of the City, are each hereby authorized and directed to do all things and take all actions necessary or desirable to effectuate the transaction contemplated by this Resolution, and to execute such other assignments, agreements, certificates, receipts, endorsements, orders, opinions and other documents in connection with such transactions, including, without limitation, closing documents in connection with the issuance of the Bonds, which actions are hereby ratified, approved and confirmed in every respect. This Resolution shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED this 14th day of December, 2004. Wen Chang, Mayor I, Linda Lowry, as City Clerk of the City of Diamond Bar, California, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of Diamond Bar, California at a special meeting held on the 14th day of December, 2004, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Linda Lowry, City Clerk FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT THIS FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT (the "First Amendment") is made as of December 1, 2004, by and between the CITY OF DIAMOND BAR, a municipal corporation organized and existing under and by virtue of the Constitution and laws of the State of California (the "City") and the UNION BANK OF CALIFORNIA, N.A., a national banking association organized and existing under the laws of the United States ("UBOC"). RECITALS A. The City and UBOC have previously entered into that certain Reimbursement Agreement, dated as of December 1, 2002 (the "Reimbursement Agreement") whereby UBOC issued its irrevocable Letter of Credit No. 3065234589 to Union Bank of California, N.A., as trustee (the "Trustee") under that certain Indenture, dated as of December 1, 2002 (the "Indenture"), by and between the Trustee and the City of Diamond Bar Public Financing Authority (the "Authority"). B. Pursuant to the Indenture, the Authority issued its Variable Rate Lease Revenue Bonds, 2002 Series A (Community/Senior Center Project) (the "Bonds"). C. The City and UBOC have agreed to amend the Reimbursement Agreement as set forth below NOW THEREFORE, in consideration of the foregoing recitals, the mutual covenants contained herein, and other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Definitions. Capitalized terms used herein and not otherwise defined shall have the same meaning as set forth in the Reimbursement Agreement. 2. Amendment. 2.1 The Reimbursement Agreement is hereby amended by deleting the following terms defined in Section 1.01: "Confirmation Agreement" "Confirmina Bank" "Confirming Letter of Credit" 2.2 The Reimbursement Agreement is hereby amended by deleting the phrase in Section 1.01 in the definition of "Bank Bonds" which reads "...or any and all Bonds purchased by the Trustee by means of a draw on the Confirming Letter of Credit." 2.3 The Reimbursement Agreement is hereby amended by deleting the last sentence in Section 2.01. 2.4 The Reimbursement Agreement is hereby amended by deleting the percentage "0.85%" in Sections 2.03(b) and 2.03(c) and substituting in lieu thereof the percentage "0.70%." 2.5 The Reimbursement Agreement is hereby amended by deleting Section 2.03(g) in its entirety. 2.6 The Reimbursement Agreement is hereby amended by deleting all references to the Confirmation Agreement, the Confirming Bank and Confirming Letter of Credit and, as of the "Amendment Effective Date" as defined below, terms and provisions in the Reimbursement Agreement relating to the Confirmation Agreement, the Confirming Bank and the Confirming Letter of Credit shall be of no further force or effect, except that (i) the obligations of the City with regards to Payment Obligations, as set forth in Section 2.04 of the Reimbursement Agreement and (ii) the obligations of the City to pay fees and expenses of the Confirming Bank, including but not limited to, fees due upon termination of the Confirming Letter of Credit, shall survive execution of this Amendment and shall remain obligations of the City until paid in full. 3. Effect. All Related Documents which reference the Reimbursement Agreement shall be deemed hereafter to refer to the Reimbursement Agreement as hereby amended. Except as specifically amended herein, the Reimbursement Agreement and all Related Documents shall remain in full force and effect and are hereby ratified and confirmed. 4. Representation and Warranties. As part of the consideration for this Amendment, the City represents and warrants to UBOC as follows: 4.1 The execution, delivery and performance by the City of this Amendment are within the City's powers, have been duly authorized by all necessary action on the part of the City, and require no action by or in respect of, or filing with, any governmental body, agency or official, and the execution, delivery and performance by the City of this Amendment do not contravene, or constitute a default under, any provision of applicable law or regulations or any material agreement, judgment, injunction, order, decree or other instrument binding upon the City. 4.2 This Amendment constitutes the valid and binding obligation of the City, enforceable against the City in accordance with its terms, except as enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws now or hereafter in effect relating to creditor's rights, and to the general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 4.3 After giving effect to this Amendment, no Event of Default has occurred and is continuing, and after giving effect to this Amendment, the representations and warranties of the City contained in the Reimbursement Agreement and the Related Documents are true and correct in all material respects as of the date hereof as if made on the date hereof. 5. Conditions to Effectiveness of this Amendment. This Amendment shall become effective on the date (the "Amendment Effective Date") when each of the following shall have been delivered to UBOC: 5.1 Amendment. Counterparts of this Amendment duly executed by each of the parties hereto. 5.2 Fees and Costs. Fees and costs of UBOC, including fees of its counsel, and fees and costs of the Confirming Bank, including fees relating to the termination of the Confirming Letter of Credit. 5.3 Other Documents. All other certificates, consents, and documents which may be reasonably requested by UBOC relating to the existence of the City, the corporate authority for and the validity of this Amendment, and any other matters relevant hereto and thereto, all in form and substance satisfactory to UBOC. 5.4 Approval of UBOC's Counsel. Approval by legal counsel for UBOC as to all actions, proceedings, instruments and documents required to carry out the transactions contemplated by this Amendment or incidental thereto and all other related matters. 6. Counterparts; Effectiveness. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument. 7. Governing Law; Submission to Jurisdiction, and Waiver of Jury Trial. THIS AMENDMENT IS SUBJECT TO THE PROVISIONS OF SECTIONS 7.14 AND 7.17 OF THE AGREEMENT, RELATING TO GOVERNING LAW, CONSENT TO JURISDICTION, AND WAIVER OF JURY TRIAL, THE PROVISIONS OF WHICH ARE BY THIS REFERENCE HEREBY INCORPORATED HEREIN IN FULL. IN WITNESS WHEREOF, this Amendment has been entered into by the parties as of the date first above written. "CITY" By: Title: "UBOC" UNION BANK OF CALIFORNIA, N.A. Title: CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # 6.6 Meeting Date: December 14„ 2004 AGENDA REPORT TITLE: Resolution No. 2004-xx, Establishing Salary Ranges for All Classes of Employment Effective the Pay Period Commencing December 26, 2004; Rescinding Resolution No. 2004-61 in its Entirety. RECOMMENDATION: It is recommended that the City Council adopt Resolution No. 2004 -XX, establishing job classifications and salary ranges, and rescind Resolution No. 2004-61 in its entirety. FINANCIAL IMPACT: The annual financial impact of the attached resolution is approximately $10,000. The financial implication for the remainder of FY 2004-05 is approximately $7,000. It is anticipated that the funds can be located in the existing budget. If the cost can not be absorbed in the existing budget then a budget adjustment will be presented for Council consideration in January. BACKGROUND In November 2004 the City Council adopted Resolution 2004-61 establishing the salary ranges for all classes of City employment. Since that time a need has developed to modify the Salary Resolution described below. DISCUSSION The adoption of Resolution No. 2004 -XX will have the following impacts: • Create a part time (20 hours per week — no benefits) Public Information Specialist position. Based on the top step of the salary range, the cost for this position is $18,980. • Change the title from Deputy City Manager to Assistant City Manager. There is no cost associated with this action. • Create a Parks and Maintenance Inspector/Technician position. There is no cost associated with the creation of this position since the decision to fund this position would be considered by the City Council in January. • Modify the salary range of the Development Services Associate position from salary range 1897 to salary range1635. This will result in a savings of $8,748 based on the top step of the salary range. Public Information Specialist This part time position will report to the Public Information Manager and assist with a variety of routine duties such as writing press releases, placing ads, creating the Community Recreation Guide, and assisting with production of the City newsletter. This will allow the full time Public Information staff to concentrate on the following two priorities: Assist with the City's Economic Development Program Enhance the use of DBTV, the City Public Information Television channel. Assistant City Manager At the request of the City's Deputy City Managers, the City Manager recommends the position title be changed to Assistant City Manager to more accurately reflect the duties of the position. There is no cost associated with this action. Parks and Maintenance Inspector/Technician This position will report to the Parks and Maintenance Supervisor and provide technical support and inspection services at public buildings, parks and maintenance districts. This position provides expertise in the building trades including, but not limited to plumbing, painting, roofing, mechanical, carpentry, electrical, HVAC, concrete, and welding. This position also provides expertise in landscaping and irrigation systems. This position will inspect and recommend approval of work performed by others, including other City staff and/or contractors, and may perform the actual work himself. Further description of the position's duties and responsibilities are discussed in the landscape maintenance contract staff report on tonight's agenda. The creation of this position in the salary resolution will not result in any cost impact. The decision to fund the position will be considered by the City Council in January. Development Services Associate The Development Services Associate position will be relocated from salary range 1897 to salary range 1635. If approved by the City Council, the above actions will be effective on December 26, 2004. PREPARED BY: David Doyle Deputy City Manager Attachments: Salary Resolution 2004-xx establishing salary ranges and rates. Resolution No. 2004- A Resolution of the City Council of the City of Diamond Bar establishing salary ranges for all classes of employment effective the pay period commencing DECEMBER 26, 2004; rescinding resolution no. 2004-61 in its entirety. Whereas, the City Council of the City of Diamond Bar has adopted the annual budget for fiscal year 2004-2005; Whereas, the City Council of the City of Diamond Bar wishes to establish salary ranges (Attachment 1, Schedule A-E) for the compensation of its employees, including cost of living adjustments and compliance with minimum wage requirements; WHEREAS, it is necessary to assign each position to a job classification number that reflects the various levels as either non-exempt full-time (Schedule A), exempt full-time (Schedule B), executive - management (Schedule C), non -benefited part-time (Schedule D) or benefited part-time (Schedule E) (Schedule A-E attached); WHEREAS, it is necessary from time to time to establish comprehensive job classifications and salary schedules to fix the rate of compensation to be paid to employees of the City; Now, therefore be it resolved, the City Council of the City of Diamond Bar, does hereby repeal all previous salary resolutions and establishes salary ranges for non-exempt full-time, exempt full- time, executive -management, non -benefited part-time and benefited part-time as outlined in Salary Schedules A-E. PASSED, ADOPTED AND APPROVED this 14th day of December 2004. Wen Chang, Mayor I, LINDA C. LOWRY, City Manager of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, adopted and approved at a regular meeting of the City Council of the City of Diamond Bar held on the day of , 2004, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Linda C. Lowry, City Clerk City of Diamond Bar Schedule 2 Effective 12/26/0 City of Diamond Bar Salary Ranges By Position FY 2004-2005 Full-time Non -Exempt Positions (Job Classifications 1000-1599) RANGE )OB TITLE A B C D E F G 1037 Office Assistant 12.39 13.01 13.66 14.34 15.06 15.81 16.60 60 9 991.2575 1,040.820 1,092.86 1,147.50 1,204.87 1,265.12 1,328.38 4 14 45 97 37 2,147.69 2,255.11 2,367.87 2,486.26 2,610.57 2,741.10 2,878.16 1141 Account Clerk II 13.62 14.31 15.02 15.77 16.56 17.39 18.26 Community Services 1,089.9225 1,144.418 1,201.63 1,261.72 1,324.80 1,391.04 1,460.60 Coordinator 6 95 15 76 80 Office Assistant II 2,361.50 2,479.57 2,603.55 2,733.73 2,870.42 3,013.94 3,164.63 1203 Parks Maintenance Worker II 14.37 15.09 15.84 16.63 17.47 18.34 19.26 1,149.5405 1,207.017 1,267.36 1,330.73 1,397.27 1,467.13 1,540.49 5 84 68 37 74 2,490.67 2,615.20 2,745.96 2,883.26 3,027.43 3,178.80 3,337.74 1257 Senior Account Clerk 15.02 15.77 16.55 17.38 18.25 19.16 20.12 1,201.2134 1,261.274 1,324.33 1,390.55 1,460.08 1,533.08 1,609.74 1 78 47 24 65 1 2,602.63 2,732.76 2,869.40 3,012.87 3,163.51 3,321.69 3,487.77 1365 Administrative Assistant 15.83 16.62 17.45 18.32 19.24 20.20 21.21 1,266.0654 1,329.368 1,395.83 1,465.62 1,538.91 1,615.85 1,696.64 7 71 90 05 60 9 2,743.14 2,880.30 3,024.31 3,175.53 3,334.31 3,501.02 3,676.07 1437 Neighborhood Improvement Officer Recreation Specialist Senior Administrative Assistant Accounting Technician 17.17 18.03 18.93 19.87 20.87 21.91 23.01 1,373.4968 1,442.171 1,514.28 1,589.99 1,669.49 1,752.96 1,840.61 6 02 42 39 86 7 2,975.91 3,124.71 3,280.94 3,444.99 3,617.24 3,798.10 3,988.00 1460 Parks and Maintenance 19.66 20.64 21.67 22.75 23.89 25.08 26.33 Inspector/Tech 1,572.80 1,651.20 1,733.60 1820.00 1,911.20 2006.40 2,106.40 3,145.60 3,302.40 3,467.20 3640.00 3,822.40 4,012.80 4212.80 City of Diamond Bar Salary Ranges By Position FY 2004-2005 Full-time Exempt Positions (Job Classifications 1600-2600) RANGE )OB TITLE 1635 Accountant II Assistant City Clerk Assistant Engineer Assistant Planner Management Analyst Parks & Maintenance Supervisor Public Works Supervisor Recreation Supervisor Development Services Associate 1752 Sr. Neighborhood Improvement Officer 1897 Public Information Coordinator Recreation Supervisor II Superintendent of Parks/Maintenance Schedule 1 Effective 12/26/0 A B C D E F G 19.52 20.50 21.52 22.60 23.73 24.92 26.16 1,561.88 1,639.97 1,721.9 1,808.071 1,898.47 1,993.39 2,093.06 00 40 73 4 50 87 86 3,384.07 3,553.28 3,730.9 3,917.49 4,113.36 4,319.03 4,534.98 4 20.99 22.04 23.14 24.30 25.51 26.79 28.13 1,679.02 1,762.97 1,851.1 1,943.676 2,040.86 2,142.90 2,250.04 12 23 21 9 08 38 90 3,637.88 3,819.77 4,010.7 4,211.30 4,421.86 4,642.96 4,875.11 6 22.66 23.79 24.98 26.23 27.54 28.92 30.37 1,812.71 1,903.34 1,998.5 2,098.441 2,203.36 2,313.53 2,429.20 25 81 16 3 33 15 81 3,927.54 4,123.92 4,330.1 4,546.62 4,773.95 5,012.65 5,263.28 2 1920 Senior Management Analyst 23.09 24.24 25.45 26.73 28.06 29.46 30.94 1,846.92 1939.27 2,036.2 2,138.04 2,244.95 2,357.19 2,475.05 3 4,001.67 4,201.75 4,411.8 4,632.43 4,864.05 5,107.25 5,362.62 4 1987 Associate Planner 23.73 24.92 26.17 27.47 28.85 30.29 31.81 Associate Engineer 1,898.67 1,993.60 2,093.2 2,197.953 2,307.85 2,423.24 2,544.40 47 84 89 3 10 35 57 Executive Assistant 4,113.80 4,319.48 4,535.4 4,762.23 5,000.34 5,250.36 5,512.88 6 Senior Accountant 1990 Network/GIS Engineer 25.51 26.79 28.13 29.53 31.01 32.56 34.19 Senior Planner 2,041.07 2,143.12 2,250.2 2,362.799 2,480.93 2,604.98 2,735.23 52 89 85 6 96 66 59 4,422.33 4,643.45 4,875.6 5,119.40 5,375.37 5,644.14 5,926.34 2 1995 Public Information Manager 27.54 28.92 30.36 31.88 33.48 35.15 36.91 2,579.33 2,203.35 2,313.52 2,429.1 2,550.656 2,678.18 2,812.09 2,952.70 60 28 04 96 3 91 85 35 5,867.99 4,773.93 5,012.63 5,263.2 5,526.42 5,802.74 6,092.88 6,397.52 6 2319 Assistant to the City Manager 27.69 29.08 30.53 32.06 33.66 35.34 37.11 City Clerk 2,215.43 2,326.20 2,442.52 2,564.64 2,692.87 2,827.52 2,968.89 76 95 00 60 83 22 83 Senior Engineer 4,800.11 5,040.12 5,292.13 5,556.73 5,834.57 6,126.30 6,432.61 2571 Deputy Public Works Director 30.71 32.24 33.85 35.55 37.32 39.19 41.15 Planning Manager 2,456.51 2,579.33 2,708.30 2,843.71 2,985.90 3,135.19 3,291.95 05 60 28 79 38 90 90 5,322.44 5,588.56 5,867.99 6,161.39 6,469.46 6,792.93 7,132.58 Schedule ( Effective 12/26/0 City of Diamond Bar Salary Ranges By Position FY 2004-2005 executive management (Exempt) Positions (Job Classifications 2900-3999) RANGE JOB TITLE A B C D E F G 2985 City Engineer/Public Works 35.65 37.44 39.31 41.27 43.34 45.50 47.78 Director Comm. Development Director 2,852.30 2,994.91 3,144.66 3,301.89 3,466.99 3,640.34 3,822.36 43 95 55 88 37 34 06 Community Services Director 6,179.99 6,488.99 6,813.44 7,154.11 7,511.82 7,887.41 8,281.78 Finance Director Information Systems Director 3172 Deputy GMV Manaqw 37.89 39.78 41.77 43.86 46.05 48.36 50.77 Assistant City Manager 3,031.03 3,182.58 3,341.71 3,508.79 3,684.23 3,868.44 4,061.87 10 26 17 73 72 90 15 6,567.23 6,895.60 7,240.38 7,602.39 7,982.51 8,381.64 8,800.72 City of Diamond Bar Salary Ranges By Position FY 2004-2005 Schedule I Effective 12/26/0 PART-TIME HOURLY: NON -BENEFITED POSITIONS (Job Classifications 500 - 899) RANG )OB TITLE A B C D E F G E 515 Community Services Worker 7.27 7.64 8.03 8.43 8.84 9.29 9.75 537 Community Services Leader I 7.95 8.34 9.00 9.61 10.25 10.88 11.44 753 Community Services Leader II 8.99 9.61 10.25 10.88 11.54 12.19 12.83 Intern 10.88 11.44 953 Community Services Leader II 8.99 9.61 10.25 10.88 11.54 12.19 12.83 Parks Maintenance Helper 19.88 20.87 21.91 23.01 Officer 770 Parks Maintenance Helper II 12.39 13.02 13.66 14.34 15.07 15.81 16.61 775 Community Services Coordinator 13.63 14.30 15.02 15.78 16.55 17.39 18.25 Public Information Specialist 800 Engineering Aide 15.01 15.76 16.54 17.38 18.25 19.16 20.12 Schedule I Effective 12/26/0 PART-TIME HOURLY: BENEFITED POSITIONS (Job Classifications 900 - 999) tANGE )OB TITLE A B C D E F G 937 Community Services Leader I 7.95 8.34 9.00 9.61 10.25 10.88 11.44 953 Community Services Leader II 8.99 9.61 10.25 10.88 11.54 12.19 12.83 987 Neighborhood Improvement 17.17 18.02 18.93 19.88 20.87 21.91 23.01 Officer Agenda # 6_7 Meeting Date: 12/14/04 TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager TITLE: Approval of Contract Amendment #6 to Extend City -Wide Landscape Maintenance Contract with TruGreen LandCare for one year, January 1, 2005 through December 31, 2005 in the amount of $315,564; Plus Appropriation of $36,000 from LLAD #39 Reserves for Contract Costs Related to LLAD #39 and Appropriation of $15,000 from General Fund Reserves for Contract Costs Related to City Parks. RECOMMENDATION: Approve contract amendment #6 and appropriations. FINANCIAL IMPACT: Additional funds from LLAD #39 ($36,000) and the General Fund ($15,000) are necessary to fully fund this contract. $89,112 $63,732 $123,756 $38,964 Current Budget Parks: $74,112 District #38: $63,732 District #39: $87,756 District #41: $38,964 Contract Appropriation Cost Request $89,112 $63,732 n/a $123,756 $36,000 $38,964 n a TOTALS: $264,564 $315,564 $51,000 Funding Total $15,000 $315,564 BACKGROUND: On July 20, 2004, the City Council extended the contract with TruGreen LandCare for City Wide Landscape maintenance for the period of July 1, 2004 through December 31, 2004. At the time the contract was extended, TruGreen representatives reported they were losing money on the contract and would need to raise their fees substantially to continue providing the services specified in the contract. In anticipation of the end of this contract on December 31, staff released an RFP and accepted bids for a contractor to service this contract. Three bids were received: TruGreen LandCare $315,564 Excel $452,388 ValleyCrest $504,372 DISCUSSION: The bid submitted by TruGreen LandCare is the lowest submitted by over $136,000. Staff has a concern about the quality of work provided by TruGreen the past six months. Staff also has a concern about such a large difference in bid price between the two lowest bidders. As a way to take advantage of TruGreen's lower bid and to ensure that the City receives the quality of service specified in the contract, staff has planned the following actions: 1. Include new monetary penalty clauses in the contract to reimburse the City for any deficiencies found in TruGreen's work. 2. Up -grade the currently vacant Parks Maintenance Worker II position to Parks and Maintenance Inspector/Technician at an annual additional cost of $20,110. This position will provide additional inspection of work provided by TruGreen Landcare to ensure quality. Any deficient work will be subject to monetary penalties. Staff has met with TruGreen representatives, and they say they will be able to meet the quality standards stated in the specifications. They also have agreed to accept the monetary penalty provisions for any work found to be sub -standard. With the planned actions listed above, staff can confidently recommend TruGreen Landcare as the contractor for this contract. REVIEWED BY: Bob Rose Director of Community Services James DeStefano Deputy City Manager AMENDMENT #6 TO CONTRACT AGREEMENT THIS CONTRACT AMENDMENT is made this 14th day of December, 2004 by and between the CITY OF DIAMOND BAR, a municipal corporation of the State of California ('CITY") and TRUGREEN LANDCARE, ("CONTRACTOR") Recitals: a. CITY awarded a contract to CONTRACTOR for City-wide Landscape Maintenance on June 16, 1998. b. The CITY has regularly extended its City -Wide Landscape Maintenance Contract with CONTRACTOR, most recently for the period of July 1, 2004 through December 31, 2004. C. Parties desire to amend the contract to extend the contract for an additional one year period, January 1, 2005 through December 31, 2005, in the amount of $315,564. d. Parties desire to further amend the contract by adding monetary penalties for contract specification deficiencies and sub -standard work, as stated in Attachment "A" to this Amendment. Now, therefore, the parties agree to amend the AGREEMENT as follows: Section 1 — Contract is amended to extend the contract for an additional one year period, January 1, 2005 through December 31, 2005, in the amount not to exceed $315,564. Section 2 — Contract is amended to add Attachment "A", monetary penalties for contract specification deficiencies and sub -standard work. Except as provided above, the AGREEMENT is in all other respects in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT #6 TO CONTRACT AGREEMENT on the date and year first written above. ATTEST: CITY OF DIAMOND BAR A Municipal Corporation Of the State of California Signed Wen Chang Mayor APPROVED TO FORM TRUGREEN LANDCARE Contractor Title Signed City Attorney Linda Lowry, City Clerk AGENDA NO. 8.1 a, b and c NO DOCUMENTATION AVAILABLE AGENDA NO. 8.2 NO DOCUMENTATION AVAILABLE