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HomeMy WebLinkAbout6/15/2004THIS 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 June 15, 2004 STUDY SESSION: 3:00 p.m., Room CC -8 City Council Goals and Objectives FY 2004-05 Budget Discussion Public Comments CLOSED SESSION: 6:00 p.m., Room CC -8 Public Comments on Closed Session Agenda Conference with Real Property Negotiators: Government Code Section 54956.8 Property: 5.4 acre parcel located at Diamond Bar Blvd. at the Pomona (SR 60) freeway to the City; Parcel 2 of Tract 10208 (Assessor's Parcel 8703-002-029) City Negotiators: City Manager, Deputy City Manager, City Attorney Negotiating party: Canyon Wash, LLC Under negotiation: Price and terms of payment Anticipated Litigation- Government Code Section 54956.9(b) two cases. Pending Litigation — Government Code Section 54956.9 (Chung v. City of D.B. Case No. KC 041832 R). CALL TO ORDER: 6:30 p.m. PLEDGE OF ALLEGIANCE: Mayor INVOCATION: Monsignor James Loughnane St. Denis Catholic Church ROLL CALL: Council Members Chang, Huff, O'Connor, Mayor Pro Tem Herrera, Mayor Zirbes June 15, 2004 PAGE 2 City Council APPROVAL OF AGENDA: Mayor 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Presentation of Certificates to Industry East Project Advisory Committee Members. 1.2 Presentation of Certificates to Community Emergency Response Team (CERT) Program Members. NEW BUSINESS OF THE MONTH: 1.3 Presentation of Certificate Plaque to Sun Won, owner of "It's A Grind." 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS Cont'd. 1.4 Presentation by Bernice Shaw, Asst. CEO with Project D.R.I.P. 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 items not 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 limit when addressina the Citv Council. 4. RESPONSE TO PUBLIC COMMENT: Under the Brown Act, members of the 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 COMMUNITY FOUNDATION MEETING — June 17, 2004 — 7:00 p.m., Room CC -8, AQMD/Government Center, 21865 Copley Dr. 5.2 PLANNING COMMISSION MEETING — June 22, 2004 — 7:00 p.m., AQMD/Auditorium, 21865 Copley Dr. 5.3 PARKS AND RECREATION COMMISSION MEETING — June 24, 2004 — 7:00 p.m., Hearing Board Room, AQMD/Government Center, 21865 Copley Dr. 5.4 CONCERT IN THE PARK — Jumpin' Joz Band - June 30, 2004- 6:30 — June 15, 2004 PAGE 3 City Council 8:00 p.m., Sycamore Canyon Park, 22930 Golden Springs Drive. 5.5 4T" OF JULY BLAST CONCERT AND FIREWORKS SHOW— (Gregg Young and the 2nd Street Band & "Hot August Night" Tribute to Neil Diamond) - July 4, 2004 — 6:00 -9:30 p.m., Sycamore Canyon Park, 22930 Golden Springs Drive. 5.6 4th of JULY HOLIDAY — Monday, July 5, 2004 — City Offices will be closed in observance of the July 4th Holiday. Offices will re -open, Tuesday, July 6, 2004. 5.7 CITY COUNCIL MEETING — July 6, 2004 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive. 6. CONSENT CALENDAR: 6.1 City Council Minutes: 6.1.1 Study Session of June 1, 2004 - Approve as submitted. 6.1.2 Regular Meeting of June 1, 2004 — Approve as submitted. 6.2 Planning Commission Minutes — Regular Meeting of May 25, 2004 - Receive and file. 6.3 Parks and Recreation Commission Minutes - Regular Meeting of April 29, 2004 — Receive and File. 6.4 Warrants - Approve Warrant Registers dated June 3, 2004 and June 10, 2004 in an amount totaling $418,399.47. Requested by: Finance Division 6.5 Reject Claim for Damages — Filed by Paul and Barbara Royalty on April 16, 2004. Recommended Action: Reject. Requested by: City Clerk 6.6 Adopt Resolution No. 2004 -XX: Approving the installation of Stop Signs on Prospectors Rd. at North Rock River Dr. Recommended Action: Adopt. Requested by: Public Works Division June 15, 2004 PAGE 4 City Council 6.7 Authorize increase amount with Nakoma Group by $5,000 for a total contract authorization for FY 03-04 of $60,000 and approve contract extension for FY 04-05 in the amount of $112,500. Recommended Action: Authorize and approve contract. Requested by: City Manager 6.8 Adopt Resolution No. 2004 -XX: Confirming the Appointment of Special Representatives to the Board of the San Gabriel Valley Council of Governments. Recommended Action: Adopt. Requested by: City Council 6.9 Amendment to a Consulting Services Agreement with Gary L. Neely for Governmental Affairs Consulting Services. Recommended Action: Approve. Requested by: Planning Division 6.10 Approve Cost -Sharing Agreement between Walnut Valley Water District (WVWD) and the City of Diamond Bar for Slope Erosion Repairs within City -owned Property situated between WVWD's Eastgate Reservoirs Site and the Residential Property at 828 Pantera Dr. and Authorize the City Manager to Execute the Agreement. Recommended Action: Approve. Requested by: Public Works Division 6.11 Approve Amendment No. 1 to a Professional Services Agreement with BonTerra Consulting in an amount not -to -exceed $15,425 for preparation of and EIR Report for proposed Vesting Tentative Tract Map No. 53670 (Horizon Pacific/JerryYeh). Recommended Action: Approve. Requested by: Planning Division 6.12 Adopt Resolution No. 2004 -XX: Adopting the Statement of Investment Policy. Recommended Action: Adopt. June 15, 2004 PAGE 5 City Council Requested by: Finance Division 6.13 Approve Amendment No. 1 to a Professional Agreement with BonTerra Consulting in an amount not -to -exceed $77,610 for preparation of an EIR for proposed Vesting Tentative Tract Map No. 53430 (Stanley Chung). Recommended Action: Approve. Requested by: Planning Division 6.14 Adopt Resolution No. 2004 -XX: Setting Forth Personnel Rules and Regulations for City Employees and rescinding Resolution No. 2003- 45 in its Entirety. Recommended Action: Adopt. Requested by: Finance Division 6.15 Adopt Resolution No. 2004 -XX: Opposing California State Assembly Bill 2406 (Bermudez): Fire Protection which would mandate conformity to specific response times, staffing objectives, and reporting requirements for Fire Departments. Recommended Action: Adopt. Requested by: Legislative Sub -Committee 6.16 Adopt Resolution No. 2004 -XX: Supporting California State Assembly Bill 1802 (Bogh): Illegal Dumping: Penalties which would increase the monetary fines for illegal dumping of solid waste. Recommended Action: Adopt. Requested by: Legislative Sub -Committee 7. PUBLIC HEARINGS: None 8. COUNCIL CONSIDERATION: 8.1 (a) Adopt Resolution No. 2004 -XX: Approving and Adopting a Budget for the Fiscal Year Commencing July 1, 2004 and Ending June 30, 2005, Including Maintenance and Operations, Special Funds and Capital Improvements and Appropriating Funds for Accounts, Departments, Divisions, Objects and Purposes therein set forth. June 15, 2004 PAGE 6 City Council Recommended Action: Adopt. (b) Adopt Resolution No. 2004 -XX: Setting the Proposition 4 (Gann) Appropriations Limit for Fiscal Year 2004-2005 for the City in accordance with the provisions of Division 9 of Title 1 of the Government Code. Recommended Action: Adopt. c) Adopt Resolution No. 2004 -XX: Establishing Salary Ranges for all classes of employment effective the pay period commencing July 1, 2004; and, rescinding Resolution No. 2003-43 in its entirety. Recommended Action: Adopt. Requested by: Finance Division 8.2 Consideration of an Advisory Committee for the City of Industry Business Center Project. Recommended Action: Direct staff as appropriate. Requested by: Planning Division 9. COUNCIL SUB -COMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: 10. ADJOURNMENT: Tonight's meeting will be adjourned in memory of our 401h President, Ronald Reagan. Agenda No. 6.1.1 CITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION JUNE 1, 2004 STUDY SESSION: Mayor Zirbes called the Study Session to order at 3:44 p.m. in Room CC -8 of the South Coast Air Quality Management District/Govemm ent Center, 21865 Copley Dr., Diamond Bar, CA. Present: Council Members Chang, Huff, O'Connor, Mayor Pro Tem Herrera and Mayor Zirbes. Staff Present: Linda Lowry, City Manager; David Doyle, Deputy City Manager; James DeStefano, Deputy City Manager; Bob Rose, Community Services Director; David Liu, Public Works Director; Linda Magnuson, Finance Director; April Blakey, Public Information Manager; Susan Full, Senior Accountant, and Tommye Cribbins, Deputy City Clerk. Michael Jenkins, City Attorney arrived at4:07 p.m. Economic Development Planning Review Review of Proposed FY2004-2005 Draft Budget Public Comments Economic Development Planning Review CM/Lowry said that staff hoped this would be a continuation of the May 18 discussion with a brief review for C/Chang who was absent forthat meeting. Short Term Project Potentials (2 -years): Calvary Chapel and Site D: DCM/DeStefano stated that in addition to the previous staff report and Kosmont materials, Council packets included materials representing the primary focus on short-term projects at ICSC. Staffs proposal was to work through the short-term priorities to make certain that staff continued to work in concert with Council's wishes on the key sites and related types of land uses. Additionally, staff seeks direction on the long-term projects listed. With respect to the short-term project, Lewis continues to move forward with a big -box retail development on the Calvary Chapel property. During meetings last week at ICSC with Home Depot, Lewis presented them with a new proposal. Home Depot will present their alternative response to Lewis late this week or early next week. Due to a family emergency, Target executives canceled all meetings at ICSC. Lewis will be flying to Minneapolis to talk with Target officials late this week or early next week. Along with Lewis, staff continues to pursue a big -box retail for the Calvary Chapel property. He asked for Council's concurrence. JUNE 1, 2004 PAGE 2 CC STUDY SESSION M/Zirbes said he was fine with the concept. The changes in uses occur because of one-on-one conversations with individual City Council members. D.B. needs that type of retailer and if it takes that location to capture that retailer, so be it. There are certain things that he would like to have the City bring in and he was not particularly set on any specific locations for those types of businesses. He wanted the corner developed appropriately and would be okay if the City ended up with a higher intensity use forthe Calvary Chapel property. MPT/Herrera said that when they spoke with Larry Kosmont and others at ICSC it became apparent that others were wo oing the same businesses D.B. was attempting to attract into the City. If Council vacillates on this issue it will be difficult, if not impossible, to get the job done and the businesses will go elsewhere. Council needs to make decisions and give clear direction to staff and their consultants to provide the means to approach businesses with a definite agenda. C/O'Connor said she voiced her opin ions during the May 18 Study Session. C/Chang said he totally agreed with staff s proposal for the Calvary Chapel site. He concurred that Council needed to wo rk as a cohesive body with Lewis to attract the appropriate businesses such as Home Depot and Target. C/Huff reiterated that his first priority for the Calvary Chape I would not be Home Depot but he would accept whatever business would generate the most dollars. At ICSC he was impressed with the fact that cities needed to move when opportunities presented themselves. M/Zirbes stated that Council consensus was that if Lewis presented the proposal they have been considering for the past year it would be acceptable. The distraction came from the conversation that Lewis had brought to the table. While the alternate Lewis plan called for moving the big box retailer down to the south end of town on Site D and creating a destinat ion or "lifestyle" type of a complex on the Calvary Chapel site, a big box retailer was necessary to the financial future of the community. Hefelt it was more a call by Home Depot and Target to decide rather than the Councils' decision. Sometimes he was confused about what staff wanted to see at the Calvary Chapel location. He felt that Council had been "walking the road" that the developer wanted. His personal opinion was that a less intense development that would deliver components the City needed for the Calvary Chapel site along with reality for Site D big box retailers would definitely locate there and would be a way to capture revenue off of the Calvary Chapel corner in the meantime. C/O'Connor asked if Lewis intended to put a Home Depot in at the Calvary Chapel property and a Target at Site D? DCM/DeStefano said that staff was looking to the Calvary Chapel location for the highest sales tax performing uses because itwas available and ithad expenses JUNE 1, 2004 PAGE 3 CC STUDY SESSION related to preparation for Home Depot or Target and the Church and some of the other proposed uses. Site D was closer to the freeway, a 20 net acre piece of property but it had hundreds of thousands of extra yards of earth on the site that would need to be moved in order to build out. To put a box of any size and a flat parking lot on the site would mean moving enormous amounts of earth. Thus, Site D was a couple of year s behind the Calvary Chapel site in terms of potential development and consequently, remained in the mid-term category. The national director of Target told DCM/DeStefano that Site D was his lowest priority site in this area and that his number one site was Kmart. However, getting Kmart off of the site was very problematic. Absent Kmart, the next priority was the Calvary Chapel site or the Majestic site at Grand Ave. and Valley Blvd. Acouple of years ago Home Depot was looking at Site D. In recent months they have spoken only to the Calvary Chapel site. The latest from Lewis regarding Site D is that they are not looking to place a big box at that location. Staff told Lewis that was not acceptable. Lewis was looking at 14 to 15 acres of residential and 5-6 acres of retail commercial (neighborhood shopping center). Staff told Lewis it was never the intent for Site D and that it was not an acceptable use. Staff does not see Site Din the short term and does notview itas aTarget ora Home Depot sitebased on current information. M/Zirbes asked if the City could say to the developer that "lifestyle" was not appropriate atthe Calvary Chapel location? CM/Lowry said No, based on what the Council had said. C/O'Connor said she had not seen a "lifestyle" plan from Lewis. M/Zirbes said during a conversation he had with Lewis they talked about taking the big box to Site Dand putting a Brea Birch Street at the Calvary Chapel site. C/O'Connor agreed with C/Huff that her first choice was not to have a Home Depot at the Calvary Chapel site but reality dictated the Council's need to move forward with a sales tax generator such as Home Depot. Consequently, Council would have to take the political heat for putting a Home Depot at that location but what choice did the Council have? M/Zirbes said what if Lewis came to the City and said he could not capture Target, Home Depot or Kohl's but could capture a "lifestyle" concept. Would the Council want to firmly sit on the theory of placing the highest tax producing business at Calvary Chapel instead of moving into, in the short term, a "lifestyle" center with movie theaters, shops, etc? CM/Lowry suggested the Council go back to the original idea of allowing residential units to be built on non-resident ial property. The hospital piece was not originally intended for housing. So, the concept was that the City would consider a Lewis housing development as a trade-off for sales tax generators. Now it had morphed JUNE 1, 2004 PAGE 4 CC STUDY SESSION into housing and smaller sales tax generator s in order to improve the consumers' quality of life. As a result, the compromise had been further compromised. C/O'Connor asked if Target could go on the hospital site. DCM/DeStefano explained that it could physically fit butthe property was narrow and long and Target would never locate a store there. C/O'Connor wondered if Target would locate there if Home Depot were there. DCM/DeStefano felt itwould not befeasible because itwas a very difficult site. C/Huff said the property had been for sale for some time and there was never any interest and that the interest was in the Calvary Chapel site not the hospital site. C/Chang felt initial discussions were that D.B. wanted to maximize the Calvary Chapel location because it was the best site in the City with the biggest question being the matter of ingress/egres s. The City has no redevelopment money and is surrounded by big -money cities. D.B. promised the community it would use the bond money that had been sitting for a year. If the City took no action, why did it issue the bond? He felt that the first priority was to improve the quality of the community. However, if the City could use the bond money to increase the sales tax revenue it would be a bonus and if the City focused on a better quality community instead of sales tax generation, the coffers would be drained. If the quality could be improved at the same time that the City increased its sales tax revenue that would be the best scenario but if D.B. did not take a Home Depot some other City would. He felt if Home Depot were properly designed and maintained it would be an acceptable store. And, almost every Home Depot generates $750,000 revenue every single year. It would be good to have a Target but the City should keep Home Depot in its sights. MPT/Herrera believed that everyone wanted a good image for the City and everyone had dreams and visions of what they would like but practically speaking, the City was looking at a $400,000 annual deficit with the loss of two businesses and an additional $400,000 to help the state balance its budget for the next two years. Also, the City had increased expenses with the Diamond Bar Center for a total $1 million deficit. Accordingly, Council needed to take the bull by its horns, accept what came to the City and stand firm on its decision. DCM/DeStefano mirrored staff's understanding to move forward to attract the highest sales tax producers for the Calvary Chapel site. In addition, staff proposed to include a sit-down lunch and dinner restaurant on the comer, no fast food. In terms of the small retail (15,000 — 25,000 square feet), either tax generating in-line restaurants or retail, not service oriented uses such as a State Farm Insurance office. Hereported that Calvary Chapel was moving forward with their sanctuary, bookstore and coffee shop that would generate tax to the City. JUNE 1, 2004 PAGE 5 CC STUDY SESSION Country Hills Town Center Site: DCM/DeStefano turned to the Country Hills Towne Center stating that Mr. McCarthy was moving forward with his redevelopment having completed at his own expense the required traffic and market studies. Mr. McCarthy submitted a detailed package to the City and the project would be before the Planning Commission in about 45 days. McCarthy talks about putting in a restaurant or retail on the pad in front of the Globe Theatre, replacing the theater with a hardware store, and an outdoor garden area facing Fountain Springs in the small parking lot of the theater. McCarthy is looking to mix up the "mom and pop" monthly rentals and possibly remove severa I of them, particular ly the low volume and low sales tax producing businesses. McCarthy is working with Henry's or other full service grocery store for the grocery site. Adjacent to the grocery store McCarthy proposes a 65,000 sq. ft. four-sto ry medical-orien ted office building, slightly larger than the old City Hall. Staff will take a closer look at concerns about competition for parking from adjacent businesses. McCarthy is talking with AAA about moving the Auto Club into the ground floor of the office building so that he could redevelop their current location. The reason McCarthy proposes a four- story office building is so that it could project above the car wash and be seen from Diamond Bar Blvd. McCarthy proposes a Coco's Restaurant, a Sharkie's Mexican Grill and It's a Grind or somethi ng similar close to where the Auto Club is currently located. In addition, he proposes to re-sign, re -landscape, and re -skin the project to make it more contemporary. C/O'Connor was concerned that the four-story medical building would look into the residences across Diamond Bar Blvd. DCM/DeStefano pointed out that the entire area steps down so that residences above look down onto the residences below and in turn the buildings in the center. Staff talked with McCarthy about the building and the opinion the single family homeowners would have about the tenant's peering into yards and homes and in response, McCarthy rotated the building 90 degrees and pushed it further away from the street so that the fewest number of wind ows on the office building look down over the residential properties. MPT/Herrera asked if Mr. McCarthy's targeted businesses were real or in the dream and vision stage? DCM/DeStefano responded that in discussing the matter with Mr. McCarthy it was a combination of thos a he wanted, those that he had enjoyed successful business enterprises with in other cities and those that he had talked with that were interested in the location such as the small hardware store. Mr. McCarthy was doing a similar project in the Phillips Ranch area. C/Chang wondered if the City could permit Mr. McCarthy lighted signs to capture business instead of variance fora four-story building. JUNE 1, 2004 PAGE 6 CC STUDY SESSION DCM/DeStefano responded that a number of considerations could be made at the Planning Commission and Council level. The site suffers problems with topography that does not allow buildings to be seen and it would be a matter of producing the best packaging to obtain the necessary visibilityfor the tenants. Council concurred to continue with the proposed Country Hills Towne Center refurbishing project as proposed. Walnut Valley Trailer Park Site: DCM/DeStefano spoke about the Walnut Valley Trailer Park property. Unfortunately, the project team of Extended Stay America withdrew their project. The property was recently purchased and staff was attempting to renew interest in the freeway -oriented property as a hotel/office building property with preference being a hotel that would generate compatible and supporting businesses. DCM/DeStefano introduced Carl Morgan, an economic development expert who worked for other cities and had been retained by D. B. to assist the City in use -specific and overall projects including the Walnut Valley Trailer Park property. Mr. Morgan had a cu rrent and good relationship with the owner of the park who was developing a retail center in another of his client cities, Glendora, and staff hoped to instill renewed interest in development of the property. The prior project was estimated to generate revenue in the area of $225-250,000. He asked Council if the pursuit of such a project would be suitable to the City? M/Zirbes asked what the property owner's interest was in moving forward in the short or long-term? DCM/DeStefano said the property owner told him she wanted to wait a year or two and it was staffs intent to get her to move forward now. Mr. Morgan explained that the property owner was out of the country until the end of this month and hewould talk with her upon her return. C/O'Connor asked ifthe site would be suitable for a car dealership. DCM/DeStefano responded that the site would be large enough but typically, dealerships wanted the synergy of being a part of a larger auto center. It could however, suit a rental or used car dealership. DCM/DeStefano responded to MPT/Herrera that a gas station and fast food restaurants could locate on the site but he felt a hotel would be the key to significant tax performance for the site. JUNE 1, 2004 PAGE 7 CC STUDY SESSION Mid -Term Project Potentials (3 to 5 years): Kmart Property: DCM/DeStefano explained that Kmart had a long-term sweetheart lease. He, MPT/Herrera and C/Huff had a discussion with the new property owner at ICSC last week and talked about the lease at 20 cents a sq. ft., a lease that could continue for another 50 years. The property owner was doing everything possible to redevelop that property with uses other than those seen today. He made financial offers to Kmart that were rejected and was now saying he could not afford to buy Kmart out at the asking price. The property owner offered Kmart 3.5 million dollars to walk away and Kmart was asking 6-8 million dollars. However, he had interest from Target to locate a store there and Target indicated to DCM/DeStefano that it was their number 1 choice as a location. The D.B. Kmart is a very low -producing store but it is a profitable store for Kmart because it has a ridiculously low rent. Agood Target would gross about 35-50 million dollars with $350,000 coming to the City versus a Kmart that generated about half that amount. MPT/Herrera said the new property owner was very enthusiastic about re- vitalizing the entire shopping center and was interested in acquiring a portion of the shopping center directly above it facing Golden Springs Dr. to provide connectivity. He was very excited about the different restaurants located on the upper site and felt he could work toward creating a destination point for the community. The City had at one time or another discussed all of these possibilities but the real holdup was Kmart. The property owner's employee suggested using a parking authority as a tool and to encourage bus usage a parking structure could be erected and a parking authority could be created and condemnation could be invoked. The City could look at this tool as a possibility for removing Kmart. The Redevelopment Agency had been challenged in the past and she felt that certain individuals in the community were waiting to launch another challenge so she woul d hesitate to use that tool to accomplish the goal. The property owner was enthusiastic about revitalizing the entire area, creating connectivity between the upper and lower centers and pursuing what the City's vision was for the center as a project area. C/Huff said the key was eliminating Kmart. CM/Lowry recalled that when the "Smart guys" talked about potential projects one of the ways cities helped developers was to purchase the parking areas, create a parking district leaving the developer to sell or lease only the remaining area. The question would be wh ether the City could create a parking district that would suit the configurati on of the property that this person acquired with the City condemning portions of his property. The City would own the parking area and would use its authority to hold the parking area. JUNE 1, 2004 PAGE 8 CC STUDY SESSION MPT/Herrera said specifics were not discussed with the property owner, only Larry Kosmot whose immediate take was that Yes, the parking structure would be located on the site where the building would be condemned. DCM/DeStefano stated that the site could easily be a big box retail site, entertainment center and employ other possible uses. The site with architecture and signage was visible from the freeway and was at the crossroads of the two freeways and one of the City's most intense areas. It would be best if it were regionally oriented so that consumers were pulled from the freeway so it should not necessarily be a grocery store, for example. He advised Council that Mr. Morgan was engaged to assist the City with this site as we II as other sites. He explained that the Council would be looking at a decision package as part of its budget discussions tonight that called for setting aside resources to look at the possibility of redevelopment project area. Whether or not Council decided to do that, there was a separate resource request to look at market and fiscal analyses for that property to help determine what might locate there. CA/Jenkins cautioned Council to refrain from further discussion about condemnation of property except in Closed Session. MPT/Herrera said the property owner felt it would be a good idea to include the commercial center across Diamond Bar Blvd in order to tie it all together as a coordinated center. C/Chang was pleased to hear that the property owner was willing to spend money to refurbish the Kmart center location. He felt that the bond money could be used to assist the property owner to accomplish his and the City's goals in the short term. Honda Dealership Site: DCM/DeStefano stated that he and C/Chang met with the owner about a week ago and were told that the dealership would likely move to the City of Industry. They were, in a sense being forced by Honda of America to move or face placement of a new dealership in the City of Industry and Hon da felt it had little choice but to move. The City of Industr y was working toward moving them to the vacant Circuit City store along the SR 60 that was owned by Industry's Redevelopment Agency. Departure time was a bit up in the air and staff figured it would be about a year and a half from this point when the actual move took place. This business is a significant sales tax producer and would be difficult to realize the same level of sales tax performance from this 2-3 acre site with another use. The property owner had no immediate plans for the property that could incorporate a wide group of land uses such as another auto dealership, used car dealership, boat or motorcycle sales or hotel/restauran t, etc. that would stand alone or piggyback on Industry businesses. Mr. Morgan had been asked to assist on this project as well and staff proposed a decision packet in the budget JUNE 1, 2004 PAGE 9 CC STUDY SESSION to allow staff to commence study of the property because staff wanted to move forward now in order to avoid dark site days. C/O'Connor wondered about a hotel for the site. DCM/DeStefano said a possible location was the lower pad/ca rwash portion. He also suggested that a gas station, although not a glamorous use, would be a large revenue generatorfor D.B. DCM/DeStefano asked Council for input about what they would like to see atthe site and not see at the site. DCM/DeSte fano responded to M/Zirbes that the dealership was about 2 '/2 acres, Burger King about 1 '/2 acres and the carwash portion about 1-1 '/2 acres for a total of about 5 acres for the entire piece. M/Zirbes felt that because the site was already retrofitted to suit a car dealership that would be the most likely use depending on who and what. He said he spoke with Greg Penske about using the site for his Jaguar dealership but felt that Mr. Penske was not interested in renewing his franchise. Another possible use was a secondary site for his Mercedes-Benz operation. Since the improvements were completed, it seemed most feasible to M/Zirbes that the use could easily be transferred to another similar use and would like staff to pursue that possibility. DCM/DeStefano said that one of the reasons he asked Mr. Morgan to assist with that site was because of his success in assisting Glendora with development of their auto row. CM/Lowry reminded Council that they by approving the freeway sign, had supported the Honda Dealer. Site D: DCM/DeStefano reiterated that Lewis was looking to produce residential with a small retail area and staff conveyed to several members of the Lewis Company that was not acceptable to the City. D.B. had looked at Site D as a potential retail location for some time and knew the School District was selling it at a residential price. Staff would like Council's input about what they would like to see on this site. M/Zirbes said that in his opinion, Site D could accomplish a variety of things including a high-density housing component to the northeast, ingress from Diamond Bar Blvd with secondary access across the wash, and a compliment of entertainment/li festyle destination businesses — a movie theater, restaurant, two or three story buildings on either side with an open courtyard area and parking structure. And, what was the likelihood that a Lewis or some other developer would proceed to construct such a vision? He felt the potential for community excitement and benefit was huge. JUNE 1, 2004 PAGE 10 CC STUDY SESSION MPT/Herrera contemplated that if D.B. could get Home Depot for income of about $500,000 a year and Target for about $350,000 a year and whatever other revenue generating entities, itwould befeasib leto incorporate a "lifestyle" type center at Site D. She would also like to see apartments over businesses incorporated in a lifestyle type center. M/Zirbes said that no matter what was done on Site D it would create controversy because residents had become accustomed to seeing the area in its natural state. The same challenge faced the Council and City with respect to a Home Depot — what would it look like and how would it change the feel of this City that had come to appreciate the site as open space? C/Chang felt that Site D was the only site large enou gh in the City to incorporate a lifestyle core. In his opinion, it would be better to place a Home Depot at the Calvary Chapel site than on Site D. He liked the lifestyle center in Calabasas where the Council lunched after visiting their library and felt that Site D could fulfill that kind of vision. CM/Lowry asked if Council, based on th e reality of the purchase price, was willing to invest a portion of the $10 millpn to make that vision happen for Site D? C/O'Connor wanted the City to use a portion of the $10 million for the Kmart cen ter. C/Chang agreed. M/Zirbes suggested that if Lewis wanted a density of 200 units for the Calvary Chapel site, the City could ask for a coupl a of acres or place a surcharge of $25,000 on each of the 200 units that would generate $ 5 million to the City that it could apply to other economic potentials such as, parking authority at Kmart, cooperation on site Dwith revenue extraction from those units, etc, depending on the state of the economy now and in th e future. D.B. does not need a lifestyle center but it would be good to aspire to such a goal that would enhance the quality of life in the City, provide entertainment and shopping for the residents and produce revenue atthe same time. CM/Lowry said the City's issue was about contributing to the local economy. In the next 25 years how many entertainment centers does the City think it should build and where should the City place them to make sure they would get the maximum benefit? Would that be on Diamond Bar Blvd. where the primary businesses are currently located and where the businesses would beexperience the synergy of an entertainment draw or would it be at the golf course where the City would have the greatest potential to bring in new ancillary businesses that could bed spiked byan entertainment center? M/Zirbes said that to him, the golf course was an entry statement into the community of D.B. and by the time land became available to trade off with JUNE 1, 2004 PAGE 11 CC STUDY SESSION Supervisor Knabe or the County of Los Angeles — an equal amount of land he could use for a golf course or open space, it was, he felt, so far down that road that anything one were to contemplate for the golf course area would already be built out in the City of Industry and other adjacent cities. The golf course is to him a great place for everything. C/Chang said that in order for that to happen, Site D has to happen first. M/Zirbes said with that in mind he believed that if the Council wanted to move forward with some type of entertainment or lifestyle complex, Site D would present the most realistic opportunity now. C/Chang felt that regardless of whether the City decided to move forward with Site Das a lifestyle center, it should continue pursuing the golf course property. C/Huff wondered if the City would want to monetarily participate in the development of Site D when the purchaser had obviously overpaid for the property? The tradeoff was to benefit the School District because they would use the proceeds of the property sale in the community in a different venue that would still benefit the citizens of D.B. DCM/DeStefano said that through discussion Council had answered many of the questions on staffs list. Long -Term Projects (10 years): DCM/DeStefano informed the Council that itwould be advisable to move forward with the feasibility studies for long-term projects at this time while implementing details of short-term and mid-term projects. The long-te rm project areas would be the golf course site, Tres Hermanos, a joint venture with Chino Hills as part of the JPA and the AERA project for possible annexation and potent ial land use. CM/Lowry suggested that if the Counci I had a vision for the golf course, for instance, it should be plac ed on the ballot for the community to decide whether it was in favor of the proposed land use. That opportunity for planning and engaging the community in the process wa s an option after the plan was created. Her sense of urgency was to get a sense of the Council's direction to collect information to create a plan and that staffs concern was that if the County were able to move the golf course to another location the current site would be surplus property which would present an entirely different thought process. MPT/Herrera said that the Supervisor's wishes of like for like property presented a huge hurdle to the City. CM/Lowry further stated that staff's angst was that none of these huge hurdles could be met if the City didn'tget started; and on that note, the budget requests JUNE 1, 2004 PAGE 12 CC STUDY SESSION were a starting step. Staffs eagerness was for the Council to permit staff to begin the process. C/O'Connor said that seven years ago the City conducted a study of the Calvary Chapel property and nothing happened so she was concerned about getting started only to have the process slow to a stop. C/Chang said that in his opinion once the hurdle of satisfying the Supervisor was overcome, the rest was technical. He recommended the Council direct staff to come up with a proposal for a strategic plan to acquire the golf course property and present the findings to Council for their acceptance and determination of whether the matter should beplaced on the ballot. MPT/Herrera said she seconded C/Chang's motion. M/Zirbes agreed with C/Chang that the golf course property presented the City with a unique opportunity for the community and that the City could find itself funding the communities needs for decades and decades. Personally, he did not like the idea of losing the greenscape that to him was a great entryway into the City of D.B. However, if it came to fruition and he was still involved with the City he would keep an open mind to the opportuniti es. He felt the City should at the very least pursue some type of strategic plan to have an understanding but the challenges were, how do you relocate the golf course and where do you put it which then takes it to Tres Hermanos, the only available span of acreage in the City. And how would that be accomplishe d working with the property owner? He felt the City had no clear direction from the property owner about their vision for the site. So, how could the City move its vision into property that was privately owned? If there were a way to do it the City could certainly consider it even though the 800 acres in Tres Hermanos was greater than what the City would have along the freeway. The 800 Tres Hermanos acres were nowhere near the value of the golf course property with respect to freeway visibility and it should be studied for potential uses and so shoul d the AERA property. Staff should be moving forward to provide a roadmap for Council to travel and decide at each intersection how to proceed. As C/O'Connor earlier stated, most of these items were placed on the Council's list of goals and objectives as items the Council wished to have move forward. CM/Lowry suggested that when the Council went into the budget discussion, the items discussed tonight could be bundled for a future study session so that Council could move forward on the general fund budget items. Public Comments on Economic Development Planning Review: Clyde Hennessee reiterated his desire to bring tax revenue producing business to the City and said that D.B. could no longer afford to be casual about doing business. JUNE 1, 2004 PAGE 13 CC STUDY SESSION Anna Smith felt the City needed to pursue Target and Home Depot because that was where the majority of residents shopped. D.B. also needed sit-down resta u ra n ts. 2. Review of Proposed FY2004-2005 Draft Budget CM/Lowry referred Council to Page 3 of the itemized budget documents and the $763,340 of un-appropriat ed funds out of next year's current income, about $60,000 less than previously stated because the Pavement Management Plan was re -budgeted out of next year's current revenues. The Decision Package Summary Table bundled the General Fund requests in the amount of $848,010 that could be reduced by $36,400 becau se several of the Decision Package items had already been included in the big budget document that shows a balance of $763,000. CM/Lowry stated that at the direction of MPT/Herrera and C/Huff (Finance Committee) staff and the City Manager created the priorities list indicated on the Decision Package list. On the list under Priority 1 were the following: 1) Notice to Comply with GASB 34 Governmental Accounting Standards for Declaration No. 34 — eval uate the City's infrastructure. 2) Add Planning Manager position to full time staff to free up DCM/Stefano to shepherd Economic Development Strategy and general supervisory position entitled Planning Manager to take care of the Planning and Code Enforcement duties. This position would share the same status as Deputy Public Works Director in the current salary table. 3) Sell the 1.27 acres on Summitridge Drive to bring in $900,000 (per the estimate of DCM/DeStefano ) to bolster the General Fund. C/Huff asked if the City could hold out an easement for the unofficial trail from the park to Diamond Point. CSD/Rose responded that there used to be a connection from the upper portion ofSummitridge Park down to the neighborhood pocket park. C/Huff said he would prefer to have the sale proceeds go toward parks use whether it was for trails development, Youth Master Plan or sports park. Council concurred to sell the property and earmark the proceeds. CM/Lowry responded that staff would proceed to sell the land and not recognize the proceeds as revenue or appropriations but include adjustments for appraisal and escrow. JUNE 1, 2004 PAGE 14 CC STUDY SESSION FM/Magnuson offered that the money could be put into the Parks and Facilities Development Fund. CM/Lowry encouraged Council to also consider proceeding with Priority #2 items that included the Financial System Upgrade. Since no significant investment had been put toward financial upgrades for seven years and the timing was correct in the evolution of the City's computer services, she felt it was time for the City to move forward to investigate other systems and indicated that FM/Magnuson was willing to shop systems and forward a recommendation to Council, if approved. CM/Lowry said the General Plan had not been updated since its 1995 approval and there were housekeeping issues that needed tending. DCM/DeStefano stated that certain elements such as the Land Use Element to help deal with economic development issues need to be updated, the Noise Element needed revitalization and other General Plan changes were necessary to pursue possible annexation of other lands into D.B. The rough estimate for the General Plan update was $175,000 for consultant input. CM/Lowry stated that it would require staff time as well as legal work to Update the Personnel Rules and Regulations to bring the job classification structure into conformity and to eliminate inconsistencies inside the Municipal Code. CM/Lowry reported that it would cost the City $2,100 to set up a Section 125 Benefits Plan and there would be a long-term maintenance fee of $1,300 per year. This benefit would allow all employees to set aside pre-tax dollars for deductible costs. Staff believed the administration would be done in-house with Finance from Human Resource staff with an outside administrator to keep the City on the right track and file the necessary reports. M/Zirbes felt that this benefit was an important recruiting tool. CM/Lowry agreed. CM/Lowry stated that McDermott and Camph, the City's transportation consultants recommended the SR 57/60 Interchange Improvements item. The $50,000 request was 50 percent of the cost for a MTA preliminary study that would permit City of Industry and D.B. staff in consultation with MTA to determine the best solution for the St. 60 project so that when the engineers begin their work they would have parameters. She felt that this project could give the City a head start toward getting Caltrans and MTA to move in the right direction and would put D.B. atthe table as equal partners with the City of Industry. C/O'Connor pointed out that the aforementioned proposal aligned with what the Local Governmental Services Commission was attempting to accomplish. JUNE 1, 2004 PAGE 15 CC STUDY SESSION CM/Lowry said that PWD/Liu explained that if the City sold an additional $550,000 in Prop A funds the project would be an appropriate use of those p ro ceed s. CM/Lowry spoke about the Priority 3 items beginning with an Annual Appreciation Luncheon and if appropriate, staff would review this item separately at a later time. This was a recommendation form the Employee Relations Committee. Part Time Assistance was budgeted for the City Managers Office. She stated that the City Clerk position was open and re - budgeted with no immediate anticipation to fill the position during reorganization ofthe City Manager's office. C/O'Connor asked if a high school or college intern could fill the part time assistance positions. DCM/Doyle said that staffs goal was to get a person from a contract agency who would provide clerical support on a consistent basis because it was a key position, particularly at the receptionist desk. Staff conducted interviews through temp agencies during this current fiscal year and would propose the same person who filled in during the past year be invited back on an as -needed basis. C/O'Connor felt that a qualified high schoo I or college intern could provide good service to the City. DCM/Doyle spoke about current Message on Hold for Telephone System and the proposed system that would advertise City programs, recreational activities, opportunities classes, Diamond Bar Center and other things that the City offers. C/O'Connor was personally opposed to an advertising system requiring callers to listen to the end of message. DCM/Doyle explained that callers would be subject to the system only when placed on hold for a small period of time instead of hearing music. M/Zirbes felt a "thank you for calling the City of D.B., your call is important to us" followed by updates on Community events and activities would be better than listening to music. He asked how the system would be updated. DCM/Doyle responded that the system provided four updates per year and the company would do the recording from City provided text. MPT/Herrera agreed with M/Zirbes. She did not like the music and felt informational tidbits would be good to listen to. M/Zirbes felt it might be better to update the system on a monthly basis, for example. JUNE 1, 2004 PAGE 16 CC STUDY SESSION PMS/Blakey said the price would then be $3,000 including startup costs and $2,000 for 12 updates for the second year and every year thereafter. M/Zirbes felt that for a small amount of dollars this system would lend itself to a Council goal to improve communications with the residents. He felt a staff member could record the updates and save the City the related costs and asked staff to pursue the option of recording the updates in house to negate the annual update fee. CM/Lowry stated that staff originally looked at three components for The Pacific Institute Training and after reviewing the reques t with the Finance Committee staff reduced it to two components that included a re -survey of the employees to compare with the survey conducted last year and additional time for leader/manager training. She expressed her opinion that the item could be eliminated but in so doing the City would lose ground on what it had tried to accomplish. The $15,000 item for Employee Computer Purchase Loan Program would be a revolving fund that would be reimbursed by the employees over time and as it was reimbursed funds would become available to other employees for purchase of computers. In response to C/O'Connor, DCM/Doyle pointed out that this would be an employee initiated purchase where the City would not be involved in supplying, purchasing or maintenance warranties. The employee would purchase the computer and present a receipt to the City for reimbursement against which the employee would make payments until the item was paid in full. Staff would propose working with ERC in the details. CM/Lowry proposed that if this item were acceptable to the Council the City would establish a "computer loan fund" and bring a resolution on the function of the fund to the City Council for approval. M/Zirbes asked if there was a large outcry from employees that they were unable to purchase a computer? FM/Magnuson responded that employees who had participated in the program previously made the suggestion. M/Zirbes felt companies offering low prices and zero interest purchase over time would be more attractive to employees and wondered if there would actually be much interest in this program. Illuminated Street Name Signs @ Signalized Intersections with a price tag of $200,000 for 20 intersections with 8 signs per intersection. CM/Lowry stated that as PWD/Liu pointed out this could be done using Prop A sale proceeds. JUNE 1, 2004 PAGE 17 CC STUDY SESSION Priority 5 — Parks Master Plan Update: CM/Lowry told Council staff could complete the update. Removal of Poisonous Plants from Trails in City Parks: C/O'Connor asked if the Boy Scouts could be engaged to perform this service. CSD/Rose said staff did not want the Boy Scouts involved. However, they removed a large portion of poison oak at Sycamore Canyon Park. Staff was rather amazed that troop leaders allowed them to work with the material. He further stated that a woman who left the trail and walked into the poison oak presented the City with a claim that was denied. C/O'Connor said she hesitated to pass judgment on the budget items without first looking at the Council's goals and objectives. She and M/Zirbes have new goals to present. With respect to the items on Page two of the Decision Packages Summarization — Sycamore Canyon Park Improvements, First Phase of Sports Complex Implementation, Construction of Block Walls — South Side of Pathfinder between Evergreen Springs and Diamond Bar Blvd., staff needs to know how these items fit into long-term plans and are these items on the list of Council's goals. CSD/Rose has Prop 12 and Prop 40 funds available for another phase of the Sycamore Canyon Park Improvements that include the ADA playground, slope erosion, and the like, but not portables and not restrooms. The first phase of the sports complex Implementation is installation of artificial turf at one Lorbeer field, the same field that houses the lights. C/Huff pointed out that although itwas on staffs radar, therewas no budget item for future repairs and maintenance for the Diamond Bar Center and that would be one of his articulated goals. CM/Lowry pointed out that the Diamond net of $200,000. Although the budget $300,000 revenue, $100,000 of the o portion of that could be put toward 1 requested by C/Huff. Bar Center budget includes an expected says $600,000 for operating costs and erating cost was not described and a e future repair and maintenance fund C/O'Connor was concerned that some of Council's undeclared goals could involve general funds. M/Zirbes asked which of her items she felt would require monies from the General Fund. C/O'Connor said she submitted a list in April and there had been no action on those items. She felt the property owners should pay for a block wall on Pathfinder since itwould reside on personal property. JUNE 1, 2004 PAGE 18 CC STUDY SESSION M/Zirbes said itwas intended to be in the public right-of-way CM/Lowry asked Council if they wanted to exclude capital items from the general budget and show a surplus to addre ss other items during the year. MPT/Herrera suggested that all of the items listed beapprov ed leaving $250,000 for items on the Council's listof goals and that the June 15 study session would consider the Council's goals and related costs. She felt that the difference between the anticipated and actual bond rate payment should go into a separate account to pay off the bonds early if the City chose to do so, a suggestion she had previously put before the Council. CM/Lowry asked for clarification from MPT/Herrera about including the other fees such as the $170,000 for the Letter of Credit. She asked that at the June 15 Study Session each Department Head be al lowed to conduct a brief walkthrough of their goal items and proposed costs for the Council's edification. M/Zirbes asked if there were any items on the list that should be eliminated and carried over to the June 15 meeting. C/Chang felt the $75,000 consultant fees should be reconsidered. He suggested that staff review what needed to be done with Council so that Council could make an informed determination. C/O'Connor suggested the seven-year old study could be updated. She reiterated her desire to see the list of goals before making a decision on the proposed decision package. M/Zirbes was concerned that it was close to time to adopt the budget. CM/Lowry said that staff would not be re-appropriat ing the balances in the open purchase orders after July 1 because they would be shown as use offunds in the current year, and that the funds would be held in reserve and the outstanding purchase orders would be paid out of the reserve. And then if the reserve was out of whack at the end of the year staff would ask Council to take appropriate action. The only reason staff would be coming back to the Council regarding the budget would be to deal with unanticipated revenues or expenditures that required appropriation. Public Comments regarding the Review of Proposed FY2004-2005 Draft Budget: None Offered. ADJOURNMENT: With no further business to come before the City Council, M/Zirbes adjourned the Study Session to the regular meeting at 6:31 p.m. JUNE 1, 2004 PAGE 19 CC STUDY SESSION Linda C. Lowry, City Clerk The foregoing minutes are hereby approved this day of , 2004. BOB ZIRBES, Mayor Agenda No. 6.1.2 MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR JUNE 1, 2004 STUDY SESSION: Mayor Zirbes called the Study Session to order at 3:44 p.m. in Room CC -8 of the South Coast Air Quality Management District/Governm ent Center, 21865 Copley Dr., Diamond Bar, CA. Present: Council Members Chang, Huff, O'Connor, Mayor Pro Tem Herrera and Mayor Zirbes. Staff Present: Linda Lowry, City Manager; James DeStefano, Deputy City Manager; David Doyle, Deputy City Manager; Bob Rose, Community Services Director; David Liu, Public Works Director; Linda Magnuson, Finance Director; April Blakey, Public Information Manager; Susan Full, SeniorAccountant; and Tommye Cribbins, Deputy City Clerk. Michael Jenkins, City Attorney arrived at4:07 p.m. Economic Development Planning Review Proposed FY 2004-05 Budget Planning Session M/Zirbes recessed the Study Session at 6:31 p.m CALL TO ORDER: Mayor Zirbes called the Regular City Council meeting to order at 6:45 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. M/Zirbes reported that during the 3:30 p.m. Study Session, Council discussed Economic Development Planning including short term and long-range planning for the economic health ofthe City, and reviewed the proposed FY2004-05 budget. PLEDGE OF ALLEGIANCE: Mayor Zirbes led the Pledge of Allegiance. INVOCATION: Ahmad H. Sakr, Ph.D., Islamic Education Center gave the Invocation. ROLL CALL: Council Members Chang, Huff, O'Connor, Mayor Pro Tem Herrera and Mayor Zirbes. Staff Present: Linda Lowry, City Manager; Michael Jenkins, City Attorney; James DeStefano, Deputy City Manager; David Doyle, Deputy City Manager; Bob Rose, Community Services Director; David Liu, Public Works Director; Linda Magnuson, Finance Director; April Blakey, Public Information Manager and Tommye Cribbins, Deputy City Clerk. APPROVAL OF AGENDA: Approved as presented JUNE 1, 2004 PAGE 2 CITY COUNCIL SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 C/Chang introduced Pastor Troy Wong, Jason Ching and Kevin Hatanaka, representing Gateway Friends Church who then presented the City with a check in the amount of $1,341 for the Youth Master Plan. 1.3 C/Huff presented a Certificate Plaque to Gil Villavicencio, Owner, The Whole Enchilada, for his dedication to the betterment of the City. Mr. Villavicencio reported that hewoul d be moving to Arizona to be closer to his daughter and would open another busine ss. He thanked the community for 20 good years in D.B. and said the restaurant would continue to serve the res id ents. 1041WU►I31,10111 01110*P1 1.4 MPT/Herrera presented a City Tile to Kay Shin, Owner, Continental Burger as Business of the Month for June 2004 and displayed the business video. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: Cont'd. 1.2 C/O'Connor presented a Certificate Plaque to Diamond Ranch High School Principal Dave Linzey, for five years of service. Mr. Linsey will be leaving b become a principal in Huntington Beach. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: CM/Lowry announced that the Pomona Unified School District's Measure JCitizens' Oversight Committee was seeking a business community representative. Interested persons should contact Enrique Medina, Assistant Superintendent business Services 397-4800 ext 3031 orobtain an application at Website www.PUSD.orq Anna Smith, representing No rthminster Presbyterian Church, asked for citywide support and City approval to launch an "Operation Gratitude" program atthe 4th of July celebration. Cherina Sung, 2708 Rocky Trail Road, expressed her feeling that the current library facility did not meet the City's needs and expectations. She asked the Council to work toward providing a larger high-tech library for the residents. Clyde Hennessee wanted the City to bring in "income-generati ng" businesses instead of providing "lifestyle" malls. JUNE 1, 2004 PAGE CITY COUNCIL RESPONSE TO PUBLIC COMMENTS: M/Zirbes thanked Mrs. Smith for her comments and indicated that staff would be in touch with her. He invited Ms. Sung to attend the Library Task Force meeting. 5. SCHEDULE OF FUTURE EVENTS: 5.1 PUBLIC SAFETY COMMITTEE — June 7, 2004 — 7:00 p.m., Diamond Bar/Walnut Sheriff Station, 21695 E. Valley Blvd., Walnut 5.2 PLANNING COMMISSION MEETING— June 8, 2004 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.3 CALTRANS MEETING St. Rt. 57/60 Carpool Lane Project— June 9, 2004 — 6:30 p.m., Room CC -2, AQMD/Go vernment Center, 21865 Copley Dr. 5.4 TRAFFIC AND TRANSPORTATION COMMISSION MEETING —June 10, 2004 — 7:00 p.m., AQMD/Government Center Hearing Board Room, 21865 Copley Dr. 5.5 LIBRARY TASK FORCE — (3 d Meeting) —June 14, 2004 — 6:30 p.m., D.B. Library Meeting Room, 1061 S. Grand Ave. 5.6 CITY COUNCIL MEETING — June 15, 2004 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 6. CONSENT CALENDAR: C/Chang moved, C/O'Connor seconded to approve the Consent Calendar with the exception of Item 6.8. Motion carried bythe following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Huff, O'Connor, MPT/Herrera M/Zirb es NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 6.1 City Council Minutes: 6.1.1 Approved Study Session Minutes of March 16, 2004 — as submitted. 6.1.2 Approved Study Session Minutes of May 18, 2004 — as submitted. 6.1.3 Approved Regular Meeting Minutes of May 18, 2004 — as submitted. 6.2 Planning Commission Minutes — May 11, 2004 — Received and filed. 6.3 Traffic and Transportation Commission Minutes — Regular Meeting of May 11, 2004 — Received and filed: JUNE 1. 2004 PAGE 4 CITY COUNCIL 6.4 APPROVED WARRANT REGISTERS dated May 20, 2004 and May 27, 2004 for a total amount of$767,442.12. 6.5 REVIEWED AND APPROVED TREASURER'S STATEMENT - Month of April 2004. 6.6 REJECTED CLAIM FOR DAMAGES - filed by Fredrick Fidel on December 23, 2004. 6.7 AUTHORIZED INCREASE IN PRINTING SERVICES AGREEMENT WITH PEPR GRAPHICS BY $7,000 FOR A TOTAL FY 2003-04 EXPENDITURE OF $60,000. 6.9 AUTHORIZED PURCHASE OF EMERGENCY MANAGEMENT COMMUNICATIONS EQUIPMENT IN AN AMOUNT NOT TO EXCEED $16,000 FROM METRO MOBILE COMMUNICATIONS AND APPROPRIATED NECESSARY GRANT FUNDS FROM HOMELAND SECURITY GRANT FY03 PART II ($13,730) AND CALIFORNIA LAW ENFORCEMENT EQUIPMENT PROGRAM (CLEEP) ($2,270). 6.10 (a) ADOPTED RESOLUTION NO. 2004-23 DECLARING THE CITY'S INTENTION TOLEVY AND COLLE CTASSESSMENTS FOR LANDSCAPE DISTRICT NO. 38 AND DIRECTED THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JULY 6, 2004 REGULAR MEETING. (b) ADOPTED RESOLUTION NO. 2004-24 DECLARING THE CITY'S INTENTION TOLEVY AND COLLE CTASSESSMENTS FOR LANDSCAPE DISTRICT NO. 39 AND DIRECTED THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JULY 6, 2004 REGULAR MEETING. (c) ADOPTED RESOLUTION NO. 2004-25 DECLARING THE CITY'S INTENTION TOLEVY AND COLLE CTASSESSMENTS FOR LANDSCAPE DISTRICT NO. 41 AND DIRECTED THECITY CLERK TOADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JULY 6, 2004 REGULAR MEETING. ITEMS REMOVED FROM CONSENT CALENDAR: 6.8 APPROVAL OF FIVE YEAR MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT WITH THE COUNTY OF LOS ANGELES FOR GENERAL LAW ENFORCEMENT SERVICES. C/O'Connor felt that a 10 percent penalty for late payments was excessive. CM/Lowry responded that this contract is standard for all client cities and it takes considerable action and effort on behalf of all the cities to amend the JUNE 1, 2004 PAGE 5 CITY COUNCIL 7 contract. Arguably, the County provides law enforcement services for client cities and fronts those costs on behalf of the cities and she believed the penalty was meant to encourage client cities to pay on time. C/O'Connor moved, MPT/Herrera seconded, to approve Consent Calendar Item 6.8. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Huff, O'Connor, MPT/Herrera, M/Zirbes NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None PUBLIC HEARINGS: ADOPT ORDINANCE NO. 1-A (2004); AN INTERIM ORDINANCE EXTENDING THE TERM OF AN URGENCY ZONING ORDINANCE NO. 1(2004) REGARDING THE MAXIMUM SIZE OF SECOND DWELLING UNITS AND GUESTHOUSES PURSUANT TO THE PROVISIONS OF CALIFORNIA GOVERNMENT CODE SECTION 65858 AND MAKING FINDINGS IN SUPPORT THEREOF. DCM/DeStefano reported that on April 20 the City Council adopted an urgency ordinance that served as interim development standards for the construction of second dwelling units and guesthouses in the City. The ordinance modified the current standards by reducing the size of second dwelling units and guesthouses from a maximum of 1,200 sq. ft. to a maximum of 500 sq. ft. giving staff an opportunity to review the ordinance for possible conflicts within the existing single family neighborhoods. The interim ordinanc a was scheduled to expire on Friday, June 4 unless extended by City Council action. Staff recommends that the City Council open the Public Hearing, receive testimony and extend Ordinance No. 1-A (2004) for a maximum often and one-half (10 '/2) months, awaiting the outcome of pending state law. M/Zirbes opened the Public Hearing. There was no public testimony offered. M/Zirbes closed the Public Hearing. MPT/Herrera moved, C/Chang seconded to adopt Ordinance No. 1-A (2004). Motion approved by the following Roll Call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Chang, Huff, O'Connor, MPT/Herrera, M/Zirb es None None 8. COUNCIL CONSIDERATION: None JUNE 1, 2004 PAGE CITY COUNCIL COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBERS COMMENTS: C/O'Connor reported onthe Contract Cities Conference attended byrepresentatives from all Contract Cities and their emergency personnel. The County spoke about their current budget strategies and the Police and Fire Department personnel sponsored a survival contest during which participants donned the 75 pounds of attire and equipment used by emergency personnel when they respond to emergencies. She also attended various other meetings during thepast two weeks. C/Huff gave no report. C/Chang enjoyed participating with other cities and learned about a new and safer product made from shredded tiresthat hewould introduce to CSD/Rose forpossible use atthe City's parks. Hefe Itit would beespecially useful during the renovation of the Sycamore Canyon Park playground. He assured the community that the Council was focused short and long-term on creating projects that would increase the income revenue for the City. Atthe same time, the Council would attempt to focus on "quality of life" malls that featured commercial areas including restaurants, bookstores, hotels, department stores, etc. MPT/Herrera was pleased that the Council approved a five-year contract with the Sheriffs Department, an entity that provides very good serviceto D.B. ata minimal cost. She, C/Huff and DCM/DeStefano recently attended the International Counsel of Shopping Centers Convent ion, an exciting and rewarding experience. They worked to stimulate interest in businesses locating in D.B. During dinner one evening they met with Council Members from the City of Pomona. The two Council Members she spoke with agreed that the Youth Master Plan could benefit the School Districts as well as the City. She hoped the ultimate outcome would be that the entire City of Pomona would buy into the plan. She asked staff to send a copy of the Youth Master Plan to each Pomona Council Member. She wished graduates a safe and sober graduation. M/Zirbes thanked the grads. His daughter recently completed her first year at Cal State Fullerton and his son is in his first year at D.B.H.S. He thanked all who had served this great country and were recognized on Memorial Day. He reported that the Council was moving forward to establish "income-generati ng" projects on a couple of pieces of property currently in play in the City. He asked the residents to focus on what they would like to see in the way of businesses in the community, keeping in mind that the City needed to produce sales tax revenue in order to continue providing the standard of goods and services the residents had grown accustomed to. Hecontinues to actively pursue asupermarket forthe Country Hills Towne Centre. He asked residents to stay informed and present their ideas to the Council and asked residents to please join with the Diamond Bar Improvement Association for the annual "Paint the Town" this Saturday commencing at7:00 a.m. at Heritage Park. 10. ADJOURNMENT: There being no further business to conduct, M/Zirbes adjourned the meeting at 7:44 p.m. JUNE 1, 2004 PAGE 7 CITY COUNCIL LINDA C. LOWRY, CITY CLERK The foregoing minutes are hereby approved this day of 2004. BOB ZIRBES, MAYOR Agenda No. 6.2 MINUTES OF THE CITY OF DIAMOND BAR REGULAR MEETING OF THE PLANNING COMMISSION MAY 25, 2004 CALL TO ORDER: Chairman Nolan called the meeting to order at 7:00 p.m. in the South Coast Air Quality Management District/Governm ent Center Auditorium, 21865 Copley Drive, Diamond Bar, California 91765. PLEDGE OF ALLEGIANCE: Vice Chairman Tanaka led the Pledge of Allegiance. 1. ROLL CALL: Present: Chairman Dan Nolan, Vice Chairman Jack Tanaka and Commissioners Ruth Low, Joe McManus and Steve Tye. Also present: Ann Lungu, Associate Planner and Stella Marquez, Administrative Assistant. 2. MATTERS FROM THE AUDIENCE/PUBLIC COMMENTS: None Offered. 3. APPROVAL OF AGENDA: As Presented. 4. CONSENT CALENDAR 4.1 Minutes of the Regular Meeting of May 11, 2004. C/McManus moved, VC/Tanaka seconded, to approve the minutes of the Regular Meeting of May 11, 2004 as presented. Motion carried by the following Roll Call vote: AYES: COMMISSIONERS: Low, McManus, Tye, VC/Tanaka, Chair/Nolan NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None 5. OLD BUSINESS: None 6. NEW BUSINESS: None 7. CONTINUED PUBLIC HEARING(S): None 7.1 Development Review No. 2004-13 (pursuant to Code Section 22.48) is a request to remodel and construct an approximate 713 square foot second story addition to an existing 1,205 livable square foot one story single-family residence with a two -car garage. (Continued from May 11, 2004) MAY 25, 2004 Page 2 PLANNING COMMISSION PROJECT ADRESS: 20316 Flintgate Drive (Lot 69, T28258) Diamond Bar, CA 91765 PROPERTY OWNER: Lily W. Zheng 20316 Flintgate Drive Diamond Bar, CA 91765 APPLICANT: Rupert Mok 829 S. Lemon Avenue #Al 1-13 Walnut, CA 91789 AssocP/Lungu presented staff's report. She reported that the City's Neighborhood Improvement Officer visited the project site several times since the May 11 Public Hearing. As a result, a correction notice was issued for parking a vehicle on an unpaved surface and the violation was immediately corrected. The City Attorney's memorandum regarding issues of family rental, parking and covenants and agreements was attached to staff's report and stated that staff's role was to look at regulations related to land use and not the land user. Staff concluded that this project complied with the General Plan objectives and strategies, complied with the standards in the City's Development Code for this type of addition, met the City's Design Guidelines and as aresult, staff again recommended Planning Commission approval of Development Review No. 2004-13, Findings of Fact, and conditions of approval as listed within the resolution. Chair/Nolan re -opened the public hearing. Bill Becker, 20311 Flintgate Drive said he did not believe the owner lived at the site. He had no problem with a room addition, but how many more individuals would live at the residence. He felt there would be additional parking violations if more rooms were built onto the home and wanted to know how he could find out if the house was being rented out. Chair/Nolan referred Mr. Becker to the opinion brought forward by the City Attorney. A significant amount of the concerns addressed by Mr. Becker had to do with the land user rather than land use. Chair/Nolan explained to Mr. Becker that the Planning Commission is charged with ruling on land use and recommended that if Mr. Becker witnessed future violations to the City's Code he call City Hall and present his concerns to Code Enforcement. Chair/Nolan closed the public hearing. C/Tye appreciated the City Attorney's memorandum citing the San Diego ordinance. However, it was not relative to the Commission's consideration tonight. MAY 25, 2004 Page 3 PLANNING COMMISSION C/Low said that given the City Attorney's memorandum, what was the force and effect of the covenant and agreement to maintain a single-family residence? Chair/Nolan recalled that DCM/DeStefano stated at the May 11 meeting that Code Enforcement would respond to infractions and that it was clear to him that matters of land users fell outside the auspices of the Planning Commission. C/McManus moved, C/Tye seconded, to approve Development Review No. 2004-13, Findings of Fact, and conditions of approval as listed within the resolution. AYES: COMMISSIONERS: Low, McManus, Tye, VC/Tanaka, Chair/Nolan NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None 9. PLANNING COMMISSION COMMENT S/INFORMATIONAL ITEMS: None Offered. 10. STAFF COMMENTS/INFORMA TIONAL ITEMS: 10.1 Public Hearing Dates for future projects. AssocP/Lungu stated that tonightthe Commissioners were given two exhibits forthe proposed Grand Avenue/Golden Spring Drive project, a mixed-use project that consists of commercial, residential, institutional and office/business park type uses. The City had been working on this project for some time and it continued to evolve. As a result, it was possible that other iterations would occur prior to the Commission's review. Staff plans to present this project to the Planning Commission at its June 22 meeting. 11. SCHEDULE OF FUTURE EVENTS: As listed in the Agenda. ADJOURNMENT: With no further business before the Planning Commission, Chair/Nolan adjourned the meeting at 7:15 p.m. Respectfully Submitted, James DeStefano Deputy City Manager Attest: Chairman Dan Nolan Agenda No. 6.3 CITY OF DIAMOND BAR MINUTES OF THE PARKS & RECREATION COMMISSION HEARING BOARD ROOM OF S.C.A.Q.M.DJTHE GOVERNMENT CENTER 21865 Copley Drive APRIL 29, 2004 CALL TO ORDER: Chairman Grundy called the Parks and Recreati on Commission meeting to order at 7:02 p.m. in the SCAQMD/Governmen tCenter Building Hearing Board Room, 21865 Copley Drive, Diamond Bar, California 91765. PLEDGE OF ALLEGIANCE: Commissioner Liang led the Pledge of Allegiance. 1. ROLL CALL: Present: Chairman Dave Grundy, Vice Chairman Nancy Lyons, and Commissioners Ling -Ling Chang, Benny Liang and Marty Torres. Staff: Bob Rose, Director of Community Services; Anthony Jordan, Parks & Maintenance Supervisor; Teresa Arevalo, Senior Management Analyst; Sara West Recreation Supervisor Il and Marisa Somenzi, Administrative Assistant. MATTERS FROM THE AUDIENCE: None Offered. CALENDAR OF EVENTS: As presented in the agenda. 1. CONSENT CALENDAR 1.1 Regular Meeting Minutes for March 25, 2004. C/Torres moved, VC/Lyons seconded, to approve the March 25, 2004 minutes as presented. Without objection, the motion was so ordered. 1.2 Approval of Minutes of April 8, 2004 Special Meeting. C/Wang moved, VC/Lyons seconded, to approve the April 8, 2004 Special Meeting minutes as presented. Without objection, the motion was so ordered. APRIL 29, 2004 PAGE 2 P&R COMMISSION 1.3 Received and Filed Transmittal of"Thank you" letter to Round Table Pizza for its support of recreati on programs in Diamond Bar. The Commission concurred with VC/Lyons' recommendation to have Chair/Grundy also sign the letter. CSD/Rose reported that staff recommended recognition of Round Table Pizza as Business of the Month by the City Council. The business has tentatively been scheduled for an August presentation. 2. INFORMATIONAL ITEMS 2.1 Youth Master Plan - CSD/Rose The steering committee met last Friday to develop recommendations forthe implementation of the Youth Master Plan. The document will be completed after the Healthy Kids Survey taken two years ago is updated. CSD/Rose introduced Pam Wooldridge, Research Network, Ltd. Ms. Wooldridge stated that she was included in the consulting team for the Youth Master Plan. Her responsibility was to design, implement and analyze the random sample telephone survey. Her firm developed the questionnaire in cooperation with the steering committee and task force volunteers. Once the questionnaire was approved bythe steering committee and staff interviewing commenced in early December and was completed shortly thereafter with a written report to the City. Chair/Grundy explained that the Commission had raised concerns regarding the survey. Specifically, he was called for the survey and encountered an interviewer who had a problem with English and difficulty reading the questions. Hefound that his answers were repeated back incorrectly and he had to re -repeat hisanswer on several occasions. In addition, the interviewer misrepresented the length of the survey. All of these issues left him feeling uncomfortable with the survey and felt that others who encountered the same issues may have not completed the survey. He asked how many people did not complete the survey to which Ms. Wooldridge responded she could get the information but did not have it with her tonight. Chair/Grundy asked if Ms. Wooldridge had statistics from other surveys and Ms. Wooldridge responded "absolutely." Ms. Wooldridge indicated to Chair/Grundy that Research Network targeted and completed 450 interviews. Chair/Grundy asked if Ms. Wooldridge had statistics regarding the demographic of the person who abandoned the call as well as, the demographic ofthe replacement call? Ms. Wooldridge explained that surveys were based on random telephone numbers and the demography of the respondents is monitored to make sure that it mirrored the community -at - large via the census data. APRIL 29, 2004 PAGE 3 P&R COMMISSION Chair/Grundy felt the survey was too long and toward the end of the survey the questions were more complex and wondered if people might have rushed through the questions atthe end. Was there a method of measuring whether people were beginning to give random answers? Ms. Wooldridge said she could look to see ifthe first hundred surveys were measurably different from the second hundred and so forth. She has never experienced that kind of situation. She subcontracts all data collection and specifically does so because there are professional data -collection facilities wh ich conduct these types of survey programs 24/7 and are beneficial because they have professionally trained interviewing staff. Secondly, the data -collection service as Computer Aided Telephone interviewing so that the selection of the telephone number and processing of the questionnaire is handled at the computer sothe interviewer conducts thesurvey liveallowing the interview to be consistent from interviewer to interviewer maintaining additional interviewer quality. The data collection group she used in this instance isthe same firm she has used for the past seven plus years on many different projects. Itis a local southern California firm with the head office in Brea and have English and non-English speaking interviewers. In the case of this project more than a third of the community were of Asian decent and 15-20 percent were Hispanic. In those cases she likes to have interviewers available who can address diverse speaking situations. When she received complaints regarding the interviewers shecontacted the data -collection firm. Atthat point 208 interviews had been completed and ofthat number there were 50-60 that were completed by non- native English speaking interviewers and removed those interviewers from the pool and completed the process with only native English-speaking interviewers. C/Chang said she was concerned about whether the City's large population non English-speaking Asians were fairly represented in the survey. Ms. Wooldridge responded to VC/Lyons that the interview was supposed to be about 15 minutes in length. VC/Lyons reiterated that the Commission would like to know how many surveys were abandoned. She felt itwas a long survey, especially for people with small children and wondered ifthe surveys for that group might not have been completed. Ms. Wooldridge agreed that 15 minutes could be a long time but it took 15 minutes to ask the full compliment of questions. In any interview there were groups ofpeople who, based on their answers, received a questionnaire that was shorter. In addition, the order of questions was routinely rotated in order to avoid bias. Her experience had been that her consultants would alert her if people were baling out on the questionnaire. C/Torres asked ifthere was current science behind a 15 -minute long survey? Ms. Wooldridge felt C/Torre s' concern was valid. She monitors the outcomes of the interviews very closely on a regular basis and had found that 10-15 minutes was a typically fair length of time for an interview. Two factors contributed to the success ofthe survey: 1)the interviewee was told up front APRIL 29, 2004 PAGE 4 P&R COMMISSION that this was something being done for their citygovernment and 2)this was about their community and its youth and that it was their opportunity to provide feedback to the city. C/Torres asked how statistical significance was measured? Whatwas a good ratio of calls to completion? Ms. Wooldridge responded that generally, 10- 12:1 ratio is acceptable. For 400 to 600 interviews, 4000 to 6000 telephone numbers would be pulled and processed. Telephone numbers were not pulled from the telephone directory because there were many unlisted numbers. The numbers were randomly selected byusing an area prefix and the last four numbers were then randomly generated. When calls were generated to businesses, answering machines, modems the interviewer weeded those out. In this case 450 households were interviewed which generated a 4.7% error range on the random data. In other words, if every household in D.B. were interviewed the results should not vary by more than plus or minus 5 percentage points. C/Torres said he would like statistics regarding the point of termination. Ms. Wooldridge explained that the time she was given by the consultant was 15 minutes at the outset. She had not looked at the data to see if information was available based on when exactly the interview was terminated. C/Torres took exception with the sequencing of questions. Ms.Wooldridge responded that the science dealt with trying not to introduce any sequencing bias bythe order of the questions. Ms. Wooldridge responded to C/Liang that the survey was conducted in early December. C/Liang said he believed that during that period of the year families were always very busy and hewondered how a 15 -minute interview could be effective. Chair/Grady said that the Youth Master Plan would beused to plan the City's recreation activities for years to come. Anything that would negatively or falsely affect the outcome of the survey would skew the recommendations and ultimately, the overall plan. The Commission needed data that provided a comfort level on which to base those long-term decisions. Ms. Wooldridge explained that these kinds of surveys do not operate in a vacuum and are accompanied bypublic wo rkshops, outreach to user groups and community leaders. The telephone survey results were paired up against what was heard from the community in those other arenas. If the telephone survey and outreach programs surface oddities or flew in the face of another public outreach block of input it wa s cause for concern and should be explored. In this instance, that was done. CSD/Rose confirmed that several pub licworkshops had been held and more were scheduled. These opportunities offered public input and consultants always compared the data. C/Torres felt that nothing said thisevening gave the Commissioners a warm feeling about the validity ofthe data and the Commission's concern was that APRIL 29, 2004 PAGE 5 P&R COMMISSION when the City was paying for this type of service there should be a high degree of confidence in those services. Mrs. Wooldridge responded that she had explained to the Commission that therewas ahigh degree of confidence in the data based on her 30 -years ofsery ice. She was sorry that she had not been able to alleviate the Commissioners' concerns and she hoped that the data on the disposition report ofthe interviews would assist the Commission in becoming more comfortable with the data. VC/Lyons asked ifthere was a breakdown according to age ofchildren in the households? Ms. Woodridge responded that the information was contained in th a rep o rt. 2.2 Recreation Program Report — RSII/West C/Chang asked why C/Chang decided to donate funds for one additional "Concerts in the Pa rk" co n cert? RSIIAN est exp Iained thatC/Chang offered to donate the funds during the Council meeting. CSD/Rose explained that the Council voted to add a concert if donor paid the cost. During the discussion C/Chang offered to donate the $2400. Ultimately, Council approved a motion to add the concert only if a donor could be found to pay the cost of the concert. Chair/Grundy proposed the Commission write a thank you to C/Chang. C/Torres felt men's softball could be eliminated. CSD/Rose indicated that RS/Wright suggested a Sunday co-ed program that was included in next year's budget. The Wednesday night adult league no longer existed. Chair/Grundy asked on average how many showed up to play table tennis. RSII/West guessed that about 25 players participated during the course of an even in g. RSII/West confirmed to Chair/Grundy that 126 members of the Youth Track Meet out ofthe 188 registered participants were moving onto the next level. RSII/West responded to VC/Lyons that the Diamond Bar Center was not designed to allow cooking and that such classes would have to be booked at CalPoly Pomona. VC/Lyons wanted to know the deadline for fall classes because she wanted to schedule a "Read Together Diamond Bar" cooking class. She asked how registration for summer day camp was proceeding. VC/Lyons felt the Diamond Bar Center computer program was excellent. She thought the City Birthday Party was a very, very good event and understood it was very challenging because of the rain. Everyone had a good attitude and staff was to be commended for staying with the program. She liked the new layout. CSD/Rose explained that when the Diamond Bar Center was designed, it was intended to have cooking available for classes and not for other uses. The intent was to use "Small ware" that could be used to heat without flame and the plan had not yet been implemented. RSII/West would look into the APRIL 29, 2004 PAGE 6 P&R COMMISSION matter and report back to the Commission. 2.3 Diamond Bar Community Foundation Oral Report - C/Torres. C/Torres reported that during this month's meeting new members were given a general overview of the Foundation. The Board was working to define its mission and goals for fundraising. The three areas under consideration for fundraising possibilities were 1) arts, 2) sports and recreation and 3) social and cultural diversity. There was also discussion about changing the bylaws to make it easier to reach a quorum and provide operational changes that would aid in the efficiency of the Foundation. 2.4 C.I.P. Program Report - CSD/Rose Diamond Bar Center CSD/Rose reported that the Center had already exceeded revenue goals of $170,000 for the year prompting an increase in fees and revenue goals to $315,000 for 2004/05 Fiscal Year. He reported that the City recently hired Bryan Petroff from Brea as its new Parks & Maintenance Supervisor to be in charge of the Diamond Bar Center. In response to C/Chang, CSD/Rose indicated that seniors could use Dial -a -Cab at a cost of 50 cents each direction. There was an effort afoot to get transit companies to pl ace the Center on their routes and that accordingly, the roadway and turning channels were designed to accommodate full-length buses. Trail Development at Sycamore Canyon Park C. Peterson and Pantera Park Improvements Sycamore Canyon Park Improvements - Phase II Update. CSD/Rose reported that he, CM/Lowry and DCM/DeStefano met last week and discussed Phase III improvements that included the Tot Lot, retaining wall replacement, access from the lower level to the upper level, patio area and portable build ing improvements. The discussion centered on the projects currently in the works and the limited resources that could be directed to those projects. As the City continues to grow, either hiring new management staff or redirection of resources must occur. As a resu It, staff looked at the possibility of moving some of the programs to the YMCA, for instance, for administration and moving the portable building to the Sunset Crossing location and leaving Sycamore Canyon Park in its natural setting. Ifthat happened, the other improvements such asthe Tot Lot, Patio area and retaining wall would be completed. At some point in the future when the City has the resources to construct a more suitable building, it could be constructed as a nature center, for instance, with classrooms and other amenities originally APRIL 29, 2004 PAGE 7 P&R COMMISSION contemplated. CSD/Rose further reported that staff istalking with the Walnut Valley Unified School District about the possibility of using their storage yard instead of the backof Sycamore Canyon Park as the City's Storage Yard. Long term, if Caltrans vacated their facility on Golden Springs Drive the City would move its storage items to that facility. C/Chang asked why political signs were stored in the unit at Sycamore Canyon Park. CSD/Rose responded that Code Enforcement takes down illegally placed signs and store them at the park for a period of time or until candidates retrieve them. CSD/Rose responded to C/Torres that the City is offering day camp this year. 2.5 Sports Complex Task Force update — C/Torres and Chair/Grundy C/Torres reported that the Task Force completed its draft report and forwarded itto staff for presentation to the City Council. 2.6 City Birthday Party Committee update — VC/Lyons. VC/Lyons reiterated that the birthday party was wonderful and staff and volunteers did a great job. 2.7 Parks Report — PMS/Jordan PMS/Jordan asked other Commissioners to schedule their park walkthroughs attheir earliest convenience. 3. OLD BUSINESS: 3.1 Consideration for Policy Regarding Use of City Equipment by Community Groups and Private Organiza tions — RMS/Arevalo. Deposit for rental for replacement due to damage beyond normal wear and tear. Staff would be responsible for checking the condition of equipment upon its return. Private User Category should not be pursued. Equipment should remain in or near the City of Diamond Bar. RMS/Arevalo reported that since this policy was drafted, staff had received a request to rent carnival, fall fun and Snowfest games. Staff recommends game rental foreach ofthe 12 games ata rate of$10 each with arefundable deposit per game and a replacement value of $50 per game be included as part of the policy and that the game rental policy together with the above APRIL 29, 2004 PAGE 8 P&R COMMISSION proposed policies be forwarded to the City Council for adoption. Chair/Grundy pointed out the following typographical errors: 1) Equipment Request Form calling for"refundable deposit' actually contains the values for the replacement value. 2) Reword the section on equipment availability to read: "The City of Diamond Bar makes available equipment to the community based on non-profit. " C/Torres offered that the equipment condition verification read: "equipment verification upon check-out and check-in ."He further recommended that staff should have the person checking in the equipment sign to verify staffs comments regarding condition of the equipment. VC/Lyons asked what "too far away" from D.B. would be and who would decide what was "too far away?" Discussion ensued with no final determination except to say that staff would decide. C/Torres moved, C/Liang seconded, to recommend approval to the City Council. Without objection, the motion was so ordered. 4. NEW BUSINESS: 4.1 Subcommittee Appointments of Commissioners . Staff recommends appointment of two Commissioners to each of the following subcommittees: a. User Group Subcommittee — C/Liang and Chair/Grundy b. City Birthday Party Subcommittee — C/Chang, VC/Lyons 4.2 Establishment ofAd hoc Committee to Review Park and Athletic Facility Use Policy — C/Torres and C/Chang. 5. ANNOUNCEMENTS : C/Liang congratulated staff on a great Easter Egg Hunt, City Birthday Party and the Diamond Bar Center grand opening dinner. He expressed concern about kids getting tripped on the security lines. He thanked PMS/Jordan for his assistance with the orchids at the City Birthday Party. VC/Lyons thanked C/Liang for providing the orchids. She complimented PMS/Jordan because she had never seen the Sycamore Canyon Park field look so good. Unfortunately however, they encountered a lot of Poison Oak on the trail. C/Chang said she was approached by a resident who asked if the City had ever considered constructing a dog park? CSD/Rose responded that yes, the City had discussed the possibility atthe request of another resident and the proposal was low priority due to limited resources and the desireto serve the youth and residents first. There are dog parks in the region. C/Chang congratulated the Cityon a fine Easter Egg Hunt and Birthday Party. C/Torres felt the City sponsored track meet held at Walnut High School was APRIL 29, 2004 PAGE 9 P&R COMMISSION excellent. He suggested the Commission discuss the possibility of a City provided volleyball program for grade school. He read an email from Jennifer Chu emailed him asking if the City had programs for developmentally and physically disabled children. RSII/West said staff planned to attend the June 4th Leadership Strategies for Inclusive Recreation seminar. Chair/Grundy congratulated the City on its wonderful Birthday Party. Hepersonally thanked the Community Services Department, VC/Lyons and C/Liang for their contributions. He thanked Wen Chang for funding the additional summer concert. ADJOURNMENT: Upon motion by VC/Lyons, seconded byC/Chang and there being no further business before the Parks &Recreation Commission, Chair/Grundy adjourned the meeting at 9:27 p.m. Respectfully Submitted, Bob Rose, Secretary Attest: Chairman, Dave Grundy AGENDA No. 6.4 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. CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # 6. S Meeting Date: June 15, 2004 AGENDA REPORT TITLE: Rejection of Claim — Filed by Pa ul and Barbara Royalty on April 16, 2004. RECOMMENDATION: Carl Warren & Co., the City's claims administrator, recommends the City Council reject the claim filed by Paul and Barbara Royalty. FINANCIAL IMPACT: There is no financial implication associated with rejecting this claim. The claim for damage is for approximately $11,942. Should the claim be successful, it will be paid by the JPIA. BACKGROUND: On April 16, 2004, Paul and Barbara Royalty filed a Claim for Damages with the City alleging that roots from a City tree damaged their sewer line. 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 Counc il, appropriate notice shall be sent to the claimant and Carl Warren & Co. PREPARED BY: Tommye Cribbins, Deputy City Clerk REVIEWED BY: Deputy City Manager Agenda: _6.6 _ Meeting Date: June 15, 2004 CITY COUNCIL AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager TITLE: RESOLUTION OF THE CITY COUNCI L OF THE CITY OF DIAMOND BAR APPROVING THE INSTALLATION OF STOP SIGNS ON PROSPECTORS ROAD AT NORTH ROCK RIVER DRIVE RECOMMENDATION: Approve Resolution No. 2004 -XX FINANCIAL IMPACT: The installation of stop signs, "Stop Ahead" signs, and pavement markings will cost approximately $400 and will be funded by the City's signing and striping maintenance budget allocation for FY 2003-2004. BACKGROUND: There have been concerns raised by residents regarding speeding along Prospectors Road between Sunset Crossing Road and North Palo Cedro Drive. Prospectors Road is often utilized as a "cut-thru" street by motorists traveling between Diamond Bar Boulevard/Sunset Crossing Road to Golden Springs Drive. Road Characteristics Prospectors Road is a residential street with an overall length that is approximately 3,620 linear feet (from Sunset Crossing Road to the SR -60 freeway underpass). The street width is 40 feet curb to curb . The existing speed zone is 25 mph. Lane configuration consists of two (2) lanes with yellow center -line striping. From Sunset Crossing Road to Eaglespur Road, the ascending grade rate on Prospectors Road begins at approximately 1% and increases to 6% as the vehicle approaches No. Rock River Drive. From No. Rock River Drive to Eaglespur Road, the grade rate continues to ascend to 8%. Currently, there is a multi -way stop at Prospectors Road and Sunset Crossing Road (approximately 658 feet to the north). There is also a multi -way stop at the intersection of Prospectors Road and Eaglespur Road, approximately 624 feet south of No. Rock River Drive. Volume and Speed The Diamond Bar speed trailer was deployed at two (2) locations. The following is a summary of the data obtained. Location: Northbound Prospectors Road near No. Rock River Drive Date April 13 and 14, 2004 Time 3:00 p.m. to 3:00 p.m. Total Vehicles 3372 Maximum Speed 44 mph Average Speed 28 mph 85t Percentile 132 mph Percentage Speeding 80% Location: Southbound Prospectors Road north of No. Rock River Drive. Date Apr. 14 thru Apr. 15, 2004 Time 3:00 p.m. to 3:00 p.m. Total Vehicles 3168 Maximum Speed 47 mph Average Speed 28 mph 85t Percentile 132 mph Percentage Speeding 56% Visibili Sight distance was observed at the intersection. When looking to the north from No. Rock River Drive, there is a clear view to Sunset Crossing Road. Looking to the south, approaching vehicles from Eaglespur Road are obscured due to the ascending grade plus the horizontal curves (please see attached aerial map). Accidents Within the previous three (3) year period, there have been no reported collision reports atthe intersection. DISCUSSION: There are visibility obstructions on the south side of Prospectors Road when exiting North Rock River Drive due to parked vehicles as well as vertical curves. Furthermore, speeds were in excess of acceptable limits with a maximum speed of 44 mph in the northbound direction and 47 mph in the southbound direction. Out of the total number of vehicles traveling northbound, 80% were traveling at speeds over 30 mph. The percentage of southbound vehicles traveling over 30 mph was 56%. 2 The request was reviewed and discussed attheTraffic and Transportation Commission meeting of May 13, 2004. The Commission recommended the installation of stop signs on Prospectors Road at North Rock River Drive. PREPARED BY: Sharon Gomez, Senior Management Analyst REVIEWED BY: David G. Liu James DeStefano Director of Public Works Deputy City Manager Attachments: Resolution No. 2004 -XX Draft Traffic and Transportation Commission Minutes, 5/13/04 Attachment A --Aerial Map RESOLUTION 2004 -XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING THE INSTALLATION OF STOP SIGNS ON PROSPECTORS ROAD AT NORTH ROCK RIVER DRIVE. Recita I s (i) At the public meeting of May 13, 2004, the Traffic and Transportation Commission determined that the installation of stop signs on Prospectors Road at North Rock River Drive will enhance and improve the public health, safety and welfare. (ii) The Traffic and Transportation Commission recommends the installation of stop signs on Prospectors Road at North Rock River Drive. Resolution NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: 1. Said action is pursuant to Sections 10.08.010, 10.08.080, and 10.12.1110 of the City of Diamond Bar Municipal Code, as heretofore adopted; 2. The City Council hereby finds the public health, safety and welfare will be best protected by the installation of stop signs on Prospectors Road at North Rock River Drive as herein prescribed; 3. The City Council of the City of Diamond Bar hereby authorize and direct the City Engineer to cause said stop signs to be installed. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 15th day of June, 2004. Bob Zirbes, Mayor ATTEST: Linda C. Lowry, City Clerk I, LINDA C. LOWRY, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the 15th day of June, 2004, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: LINDA C. LOWRY, City Clerk City of Diamond Bar 2 CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # — 67 Meeting Date: June 17, 2004 AGENDA REPORT TITLE: Authorization to increase the current contract with The Nakoma Group by $5,000 for a total contract authorization for FY 03-04 of $60,000 and approve contract extension for FY 04-05 in the amount of $112,500. RECOMMENDATION: City staff recommends the City Council authorize the City Manager to extend the contract with The Nakoma Group for additional services ($5,000) for a tota I contract not -to -exceed $60,000 for FY 03- 04 and approve a contract extension for FY 04-05 in the amount of $112,500. FINANCIAL IMPACT: There are sufficient funds available in the FY 03-04 Information Systems budget for the current year's contract increase and sufficient funds are proposed in the FY 04-05 budget for the contract extension. DISCUSSION: In January 2004 the City entered into an agreement with The Nakoma Group to provide contract information systems management and support. The original contract ($45,000) provided for the contract IS Manager (Ken Des Forges ) to be onsite approximately 20 hours per week as well as offsite network administration support. During the first several months, the City experienced significant issues with its network and e-mail systems. In order to keep the systems functioning and immediately address the issues, the IS Manager was required to be onsite in excess of 30 hours per week as well as working a number of weekends. In order to provide continue IS management services for the remainder of FY 03-04, the Council needs to authorize an addition to the current contract in the amount not to exceed $5,000. It is recommended that the City Counc it authorize the utilization of The Nakoma Group in FY 04-05. City staff has been exceptiona Ily pleased with the services provided by the onsite IS manager. By offering a contract extension, the City can continue to receive IS management services at FY 03-04 ra tes. PREPARED BY: Deputy City Manager Attachment 1. Amendment Number 2 to The Nakoma Group Contract ($ 5,000) 2. Amendment Number 3 to The Na koma Group Contract ($112,500) AMENDMENT NO. 2 TO THE CONSULTING SERVICES AGREEMENT This Amendment No. 2 to the Agreement is made and entered into this 17th day of June, 2004, between the CITY OF DIAMOND BAR, a Municipal Corporation (hereinafter referred to as "City") and The Nakoma Group (hereinafter referred to as "CONSULTANT"). A. RECITALS: (1) The CITY on January 20, 2004 entered into an Agreement, with CONSULTANT to provide Professional Consulting Services. (ii) The CONSULTANT submitted a proposal, a full, true and correct copy of which is attached hereto as Exhibit "A" (Nakoma's proposal). NOW, THEREFORE, it is agreed by and between CITY and CONSULTANT: Section 2: Section 3 of the Agreement is hereby amended to read as follows: Compensation. "City agrees to compensate Consultant for each service which Consultant performs to the satisfaction of Agency in compliance with the schedule set forth in Exhibits "B". Payment will be made only after submission of proper invoices in the form specified by City. Total payment to Consultant pursuant to this Agreement shall not exceed ($60,000) dollars." Section 3: Each party to this Amendment No. 2 acknowledges that no representatio n by any party which is not embodied herein nor any other agreement, statement, or promise not contained in this Amendment No. 2 shall bevalid and binding. Any modification of this Amendment No. 2 shall be effective only if it is in writing signed by the parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement No. 2 as of the day and year first set forth above: APPROVED AS TO FORM: CONSULTANT: The Nakoma Group By: C ity Atto m ey I_VINOR1111 Dave Doyle, Deputy City Manager/Deputy City Clerk DATE: CITY OF DIAMOND BAR Linda C. Lowry, City Manager AMENDMENT NO. 3 TO THE CONSULTING SERVICES AGREEMENT This Amendment No. 3 to the Agreement is made and entered into this 17th day of June, 2004, between the CITY OF DIAMOND BAR, a Municipal Corporation (hereinafter referred to as "City") and The Nakoma Group (hereinafter referred to as "CONSULTANT"). B. RECITALS : (II) The CITY on January 20, 2004 entered into an Agreement, with CONSULTANT to provide Professional Consulting Services. (iii) The CONSULTANT submitted a proposal, a full, true and correct copy of which is attached hereto as Exhibit "A" (Nakoma's proposal). (iv) The CITY desires to utilize the services of CONSULTANT in FY 04-05. NOW, THEREFORE, it is agreed by and between CITY and CONSULTANT: Section 2: Section 3 of the Agreement is hereby amended to read as follows: Compensation. "City agrees to compensate Consultant for each service which Consultant performs to the satisfaction of Agency in compliance with the schedule set forth in Exhibits "B". Payment will be made only after submission of proper invoices in the form specified by City. Total payment to Consultant for FY 04-05 pursuant to this Agreement shall not exceed ($112,500) dollars." Section 3: Each party to this Amendment No. 3 acknowledges that no representatio n by any party which is not embodied herein nor any other agreement, statement, or promise not contained in this Amendment No. 3 shall bevalid and binding. Any modification of this Amendment No. 3 shall be effective only if it is in writing signed by the parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement No. 3 as of the day and year first set forth above: APPROVED AS TO FORM: CONSULTANT: The Nakoma Group By: C ity Atto m ey I_VINOR1111 Dave Doyle, Deputy City Manager/Deputy City Clerk DATE: CITY OF DIAMOND BAR Linda C. Lowry, City Manager CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # 6.8 Meeting Date: June 15, 2004 AGENDA REPORT TITLE: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DIAMOND BAR CONFIRMING THE APPOINTMENT OF SPECIAL REPRESENTATIVES TO THE BOARD OF THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS RECOMMENDATIONS: It is recommended that the City Council adopt the Resolution. FISCAL IMPACT: There is no fiscal impact on the City of Diamond Bar. BACKGROUND / DISCUSSION: At their General Assembly in May, the San Gabriel Valley Counc it of Governments (SGVCOG or COG) elected Mayor Pro Tem Carol Herrera to serve as Vice President of the COG during FY2005. Her term begins on July 1, 2004. The By -Laws of the SGVCOG state that as an officer Mrs. Herrera automatically becomes the "delegate" to the COG from the City of Diamond Bar. Council Member Bob Huff will complete his term as President of the COG on July 1, 2004. Therefore, he will serve as the "a Itemate delegate". This resolution was requested by the San Gabriel Valley COG. Prepared by: Jim Clarke, Legislative Analyst Attach men is 1. Resolution No. 2004 -XX confirming the appointm ents of special representatives to the San Gabriel Valley Council of Governments RESOLUTION NO. 2004 -XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR CONFIRMING THE APPOINTMENT OF SPECIAL REPRESENTATIVES TO THE BOARD OF THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS WHEREAS, the City of Diamond Bar has executed the San Gabriel Valley Council of Governments Joint Powers Agreement; and WHEREAS, the Joint Powers Agreement for the San Gabriel Valley Council of Governments requires that each member city appoint a Delegate Governing Board Represen tative and an Alternate Governing Board Representative to represent the City in conducting the affairs of the San Gabriel Valley Council of Governments; and WHEREAS, the current Delegate is Council Member Bob Huff and the Alternate, Mayor Pro Tem Carol Herrera; and WHEREAS, Mayor Pro Tem Carol Herrera has been elected Vice President of the San Gabriel Valley Council of Governments; and WHEREAS; according to the By -Laws of the San Gabriel Valley Council of Governments an elected officer of the COG mu st serve as the Delegate from their city. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Diamond Bar does hereby resolve the following: SECTION 1. That the City Council of the City of Diamond Bar appoints Mayor Pro Tem Carol Herrera to serve as the Delegate to the Governing Board of the San Gabriel Valley Council of Governments. SECTION 2. That the City Council of the City of Diamond Bar appoints Council Member Bob Huff to serve as the Alternate Delegate to the Governing Board ofthe San Gabriel Valley Council of Governments. SECTION 3. That the individuals previously designate d in this resolution shall serve until replaced by resolution oruntil they become ineligible pursuant to the terms ofthe Joint Powers Agreement ofthe San Gabriel Valley Council of Governments. SECTION 4. That the City Clerk shall certify the adoption of the resolution. SECTION 5. That a certified a copy of the resolution be circulated to the following: San Gabriel Valley COG CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # — 69 Meeting Date: June 15, 200 AGENDA REPORT TITLE: Amendment to a Consulting Services Agreement with Gary L. Neely for Governmental Affairs Consulting Services. RECOMMENDATION: Itis recommended that the City Council approve the amendment. FISCAL IMPACT: The proposed 6- month agreement extension ($9,720) will be expensed to the FY 2004-2005 Planning Division — Professiona I Services appropriation and will not exceed the amount proposed in the annual budget. BACKGROUND: Mr. Neely is under contract with the City to provide governmental affairs consulting services. The current contract is scheduled to expire on December 17, 2004, unless extended. This report proposes that the contract for services be extended to June 30, 2005, and that, effective July 1, 2004, compensation to the Consultant be reduced from the current retainer rate of $3,240. 00 per month to $1,620.00 per month. The City Manager and City Council determine the nature and scope of the specific services performed by this Consultant. Assigned tasks have focused upon providing advice and consulting services to Diamond Bar City Council Members and Staff regarding the City of Industry ownership of properties within the City and Sphere of Influence, matters related to the Tres Hermanos Conservation Authority, area conservancies such as the Wildlife Corridor Conservation Authority and the Rivers and Mountains Conservancy, Municipal Utility Districts, California Water Districts, the Los Angeles County General Plan and Significant Ecological Area revision process and related legislative matters. PREPARED BY: James DeStefano Deputy City Manager Attachment: Amendment AMENDMENT NO. 1 TO THE CITY'S CONSULTING SERVICES AGREEMENT WITH GARY L. NEELY This Amendment to the City's Consulting Services Agreement is made and entered into this 15th day of June. 2004 , between the City of Diamond Bar, a Municipal Corporation (hereinafter referred to as "City") and Gary L. Neely (hereinafter referred to as "Consultant." ) A. Recitals: (i) The City has heretofore entered into an Agreement, dated December 17, 2001, with Consultant to provide Governmental Affairs Consulting Services (hereinafter referred to as the "Agreement.") (ii) Consultant will provide additional "as -needed" services at the rate of $1,620.00 per month commencing July 1, 2004, and shall continue to and including June 30, 2005. (iii) It is in the City's best interest to extend the Agreement for the services in order to ensure consistency and continuity of the services already being provided by Consultant. NOW THEREFORE, itis agreed by and between City and Consultant: Section 1: Paragraph No. 3 of the Agreemen t is hereby amended to read as follows: "3. Compensation and Method of Payment. City agrees to compensate Consultant, and Consultant agrees to accept in full satisfaction for the services provided for hereunder, fees on a time and material basis at the rate of $1,620.00 per month but in no event to exceed a cumulative total of $106,920.00, which fees include all labor, materials, printing and other costs incurred in connection with the project. Payment will be made on ly after submission of proper invoices in the form specified by City." Section 2: Each party to this Amendment acknowledges that no representation by any party, which is not embodied herein, or any other agreement, statement, or promise not contained in this Amendment shall be valid and binding. Any modification of this Amendment shall be effect ive only if it is in writing signed by the parties. Section 3: All other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 as of the day and year firstset forth above: APPROVED AS TO FORM: CONSULTANT: Gary L. Neely 13933 Laurelwood Avenue Corona, CA 92880 BY: City Attorney Gary L. Neely ATTEST: CITY OF DIAMOND BAR City Clerk Bob Zirbes, Mayor CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # 6.10 Meeting Date: June 15, 2004 AGENDA REPORT TITLE: APPROVE COST-SHARING AGREEMEN T BETWEEN THE WALNUT VALLEY WATER DISTRICT (WVWD) AND THE CITY OF DIAMOND BAR FOR SLOPE EROSION REPAIRS WITHIN CITY -OWNED PROPERTY SITUATED BETWEEN THE WVWD'S EASTGATE RESERVOIRS SITE AND THE RESIDENTIAL PROPERTY AT 828 PANTERA DRIVE, AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT. RECOMMENDATION : Approve the agreement. FISCAL IMPACT: The estimated total cost is $88,417, of which the WVWD will contribute up to, but not to exceed $44,200, to be paid within thirty (30) days of acceptanc a of the completed project. The project cost estimates are broken down as follows: PROJECT PHASE FY 03-04 FY 04-05 INTERIM REPAIRS Budgeted Actual Budgeted Estimated Design N/A N/A N/A N/A Construction $9,000 $8,342 N/A N/A PERMANENT REPAIRS Budgeted Estimated Budgeted Estimated Design, Geotechnical Services, and Construction Management $25,000 N/A N/A $22,500 Construction N/A N/A $70,000 $57,575 SUB -TOTAL $34,000 $8,342 $70,000 $80,075 *Total Budgeted: $104,000 Total Estimated: $88,417 * Note: The difference in the amount budgeted and the amount estimated is an allowance of a 17.5% contingency for unforeseen/unant ici ated project conditions/com I ications. Page 1 of 2 On January 20, 2004, the City Council approved approp riations in the amount of $9,000, from Landscape Assessment District #39 (L.A.D. #39) fund balance reserves to pay for necessary emergency/interi m repair work performed by the City's on-call contractor, MCE Corporation. On April 16, 2004, the City Council approved appropriations, in the amount of $25,000, from L.A.D. #39 fund balance reserves to pay for the Design, Geotechnical Services, and Construction Management of the permanent repair work to be performed. For FY 04-05, the proposed amount is $70,000 for the construction of permanent repairs. Of this amount, $25,800 will be funded by L.A.D. #39 and the remaining $44, 200 will be provided by the WVWD. BACKGROUND: Various slopes within the city -owned property situated between the WVWD's Eastgate Reservoirs site and the residential property at 828 Pantera Drive have suffered slope erosion which, in tum, has undermined existing drainage swales. The City has incurred costs for completing interim repairs to the slopes and has prepared plans and specifications for permanent repairs. As such, the City and the WVWD desire to collaborate in the construction of permanent repairs and contribute equally toward the cost of the project. DISCUSSION : A project estimate of the tota I cost of the project, including the completed interim repairs, design of permanent repairs, geotechnical services, construction administration/i nspection and construction is $88,417. Of this amount, the WVWD will contribute up to, but not to exceed $44,200, to be paid within thirty (30) days of acceptance of the completed project. To facilitate the WVWD's project collaboratio n, an agreement which was prepared by the City Attorney, Mike Jenkins, has been approved by both counsels. The project schedule is tentatively set as follows: Advertise for Bids June 16, 2004 Award of Contract July 20, 2004 Start of Construction July 30, 2004 Completion of Construction August 30, 2004 PREPARED BY: Javier R. Peraza, Management Analyst :7:kT/IWUT/091: Vil David G. Liu James DeStefano Director of Public Works Deputy City Manager Attachments: Cost -Share Agreemen t, including Exhibits "A" & "B" Project Site Aerial Map Page 2 of 2 CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # _6.11 _ Meeting Date: June 15, 2004 AGENDA REPORT TITLE: Amendment No.1 to a Professional Services Agreement with BonTerra Consulting in an amount not -to -exceed $15,425.00 for preparation of an Environmental Impact Report for proposed Vesting Tentative Tract Map No. 53670 (Horizon Pacific / Jerry Yeh) RECOMMENDATION: It is recommended that the City Council approve an amendment to the agreement between the City and BonTerra Consulting in the amount of $15,425.00. FISCAL IMPACT: All costs associated with the preparation of the environmental analysis are the responsibility of the developer via development processing fees paid to the City. The developer has entered into an Agreement to provide the City with all funds necessary to process the proposed project. 3[d"Eel ZT4111►193 The City entered into a contract with BonTerra Consulting in the amount of $45,120.00 on April 4, 2003 to prepare an Environmental Impact Report for a proposed five lot residential subdivision project located at the terminus of Alamo Heights. As a result of modifications to the tree survey, tract map design, hydrology and geotechnical report resulting in changes to project description, hydrology and water quality analysis, additional meetings with City staff, the applicants landscape architect and regulatory agencies (e.g., U.S. Army Corps of Engineers and California Department of Fish and Game), BonTerra has been directed to perform additional tasks not previously contemplated when the contract was approved. Therefore, BonTerra has requested a contract amendment in the amount of $15,425.00 to reflect the identified changes to the original Scope of Work. PREPARED BY: James DeStefano Deputy City Manager Attachments: 1. Amendment No. 1 2. Request for Budget Augmentation dated March 26, 2004 CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # 6.12 Meeting Date: June 15, 2004 AGENDA REPORT TITLE: Review and approve Resolution No: 2004 -XX which adopts the FY 2004- 2005 Investment Policy. RECOMMENDATION: It is recommended that City Council review and approve Resolution No: 2004 -XX which adopts the FY 2004-2005 Investment Policy. FINANCIAL IMPACT: None DISCUSSION: Submitted for Council's review and approval is the FY 2004-2005 Investment Policy and its accompanying resolution. The proposed investment policy states the goals of the City's investment activities, the types of investments in which the City will invest funds, and the monthly reporting requirements. The FY 2004-2005 Investment Policy is same as the City's prior year's investment policy and was drafted in accordance with the Government Finance Officers Association (GFOA) investment policy outline and model. The City as part of its investment policy, requires all broker/dealers to complete a questionnaire and provide information on their portfolios and investment policies. The broker/dealer questionnaire was adapted from a questionnaire that was provided by the City's auditing firm of Conrad and Associates. Additionally, the proposed investment policy has been reviewed and approved by the City's auditors. It should be noted that the City continues to invest in the State Treasurer's Local Agency Investment Fund. The investment goals and practices of LAIF are in concurrence with the City's investment goals and objectives. Attached, as Appendix Cis a description of the LAIF program. Page 2 — FY04-05 Investment Policy Report PREPARED BY: Linda G. Magnuson, Finance Director REVIEWED BY: Department Head Deputy City Manager Attachments: Resolution No: 2004 -XX Investment Policy RESOLUTION NO: 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR , COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADOPTING THE STATEMENT OF INVESTMENT WHEREAS, it is the City's policy to annua Ily adopt the City investment policy, and NOW, THEREFORE, THE CITY COUNCI L OF THE CITY OF DIAMOND BAR HEREBY RESOLVES, that the attached Statement of Investment Policy (Exhibit A) be adopted as presented herein. PASSED, ADOPTED AND APPROVED THIS _____day of____________, 2004 Bob Zirbes, Mayor I, Linda C. Lowry, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at a meeting of the City Council of the City of Dia mond Bar held on the ______day of .............. 2004, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ATTEST: Linda C. Lowry City Clerk ofthe City of Diamond Bar W: M"1131ir_l CITY OF DIAMOND BAR INVESTMENT POLICY - FY 2004-2005 PURPOSE This Statement is intended to provide guidelines for the prudent investment of the City's temporarily idle cash and to outline the policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting it's accumulated cash. It is the policy of the City Council to review, update and adopt the City's Investment Policy on an annual basis. INVESTMENT OBJECTIVE The investment of funds of the City of Dia mond Bar is directed to the goals of safety, liquidity and yield. The authority governing investments for municipal governments is set forth in the Government Code, Sections 53601, et. seq. 1. S a fety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. The City will operate only in those investments that are considered very safe. A. Credit Risk is the risk of loss due to the failure of the security issuer or backer. Credit risk will be mitigated by: Limiting investments to the safest types of securities; Pre -qualifying the broker-dealers with which the City will do business. This will be done via a competitive bid and the response on a questionnaire (Appendix B) submitted by the prospective institution. In addition broker- dealers should beprimary, registered investment securities dealers; Diversifying the investment portfolio in order that potential losses on individual securities do not exceed the income generated from the remainder ofthe portfolio. B. Interest Rate Risk is the risk that the market value of portfolio securities will fall due to a change in general interest rates. Interest rate risk will be mitigated by: Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation to meet specific operational needs; Operating funds will be invested primarily in shorter term securities. PAGE 2 - Investment Policy 2. Liauidity. The investment portfolio will remain sufficiently liquid to meet all operating requirements which might be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature at the same time as cash is needed to meet anticipated demands. Additionally, since all possible cash demands cannot be anticipated, the portfolio will consist largely of securities with active secondary or resale markets. 3. Yield. Yield is the potential dollar earnings an investment can provide and sometimes is described as the rate of return . The primary objective of the investment policy of the City of Diamond Bar is SAFETY. Investments shall be undertaken to ensure the preservation of capital in the overall portfolio. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and cash flow characteristics of the portfolio. Return on investment is of least importance compared to the safety and liquidity objectives described above. Investments are limited to relatively low risk securities in anticipation of earni ng a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity unless one of the following conditions exists: 1) a declining credit security could be sold early to minimize loss of principal; 2) a security swap would improve the quality of yield in the portfolio; or 3) liquidity needs of the portfolio require that a security be sold. POLICY As a General Law city, Diamond Bar operates its accumulated idle cash investments under the prudent man rule. This insures that "...investment shall be made with the exercise of that degree of judgement and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment considering the probable safety of their capital as well as the probable income to be derived." (CC #2261) This affords the City a broad spectrum of investment opportunities, so long as the investment is deemed prudent and is allowable under current law of the State of California and the regulations ofthe Cityof Diamond Bar. The City of Diamond Bar strives to maintain the level of investment of all funds as near 100% as possible, through daily and projected cash flow determinations. Cash management and investment transactions are the responsibility of the Treasurer. Investments are allowed in the following media: United States treasury bills, bonds, notes or any other obligations or securities issued by the United States treasury or any other obligation guaranteed as to principal and interest by the United States. Local Agency Investment Fund (state pool) - Demand Deposits Certificates of Deposit (or Time Deposits), placed with commercial banks and/or savings banks. Negotiable Certificates of Deposit Bankers Acceptances Commercial Paper PAGE 3 - Investment Policy Medium Term Corporate Notes Passbook Savings Accounts Active Deposits Money Market Funds comprised of investments rated in the highest category by Moody's Investors Services Inc. or by Standard & Poor's Corporation. Repurchase Agreements Prohibited investments include securities not listed above(unless authorized pursuant to section 53601 (L)), as well as inverse floaters, range notes, interest only strips derived from a pool of mortgages (Collateralized Mortgage Obligations ), and any security that could result in zero interest accrual if held to maturity, as specified in Section 53601.6. (Zero interest accrual means the security has the potential to realize zero interest depending upon the structure of the security. Zero coupon bonds and similar investments that start ata level below the face value are legal because their value does increase.) Government and agency paper are the highest qua lity investments available in terms of safety and liquidity. Certificates of deposit and savings accounts are insured or collateralized. Only commercial paper, with A-1 Moody's and P-1 Standard & Poor's ratings, is authorized for purchase. Most investments are highly liquid, with the exception of collateralized and insured certificates of deposit held by banks and savings banks. Maturities are selected to anticipate cash needs, thereby eliminating the need for forced liquidation. Effective January 1, 1989 the Government Code, Section 53601 states..."no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement authorized by this section, which at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved no less than three months prior to the investment." Therefore longer-term investments (over one year) are limited to maturities of five years or less unless specifically approved by the City Council. Diamond Bar attempts to obtai n the highest yield possible when selecting investments, provided that the criteria for safety and liquidity are met. Ordinarily, through a positive yield curve, (i.e., longer term investment rates are higher than those of shorter term maturities), the City attempts to ladder its maturities to meet anticipated cash needs in such a way that longer term investments carry a higher rate than is available in the extremely short term market of 30 days or less. The City is authorized to invest in the Local Agency Investment Fund based upon periodic reviews of the book to market value of the investment pool and an annual review of the goals and strategies of the investment board. If there are changes in the management of the Local Agency Investment Fund, and there is a conflict with the City's investment goals, the City may elect to discontinue investment in LAIF. It should be noted that, per LAIF's investment policy, no more than 10% of its portfolio may be invested in Reverse Repurchase Agreements. Since these types of investments are extremely sophisticated, the City of Diamond Bar chooses not to individually invest in these types of securities but will participate LAIF's investment in Page 4 - Investment Policy these as long as the percentage of the portfolio remains at 10% or less. POLICY CONSTRAINTS The City operates its investment pool with many State and self-imposed constraints. The City does not purchase or sell securities on margin. The City does not buy stocks or eal in futures or options. The City does not use Reverse Repurchase Agreements for the investment of funds. The City does not invest in Guaranteed Small Business Administration (SBA) Notes. SAFEKEEPING OF SECURITIES The City of Diamond Bar will adopt the operational practice of having all purchased securities physically delivered, versus payment to a safekeeping account at the City's depository bank. It is recognized this will be to a third party independent custodian under contractual agreement made with the Security Services Division of the chosen bank. Investment transactions will be authorized by the City Treasurer and executed by either the Finance Director or the Assistant City Clerk. The transactions will be verified via monthly reconciliations by the Senior Accountant. REPORTING A monthly report of investments will be provided to the City Manager. The required elements ofthis report are asfollows: a) Type of investment b) Institution c) Date of Maturity d) Amount of deposit or cost of security e) Current market value of securities with maturity in excess of twelve months D Statement relating the report to the Statement of Investment Policy g) Rate of interest h) Statement that there are sufficient funds to meet the next six months' obligations The basic premise underlying the City of Dia mond Bar's investment philosophy is to insure that money is always available when needed. Attachment: Appendix A -Description of Investments Appendix B - Broker Dealer Questionnaire Appendix C- Local Agency Investment Fund Description Linda C. Lowry City Manager Appendix A Description of Investments U.S. Treasury Issues are direct obligations of the United States Government. These issues are called bills, notes and bonds. The maturity range of new issues is from 13 weeks (T -Bills) to 30 years (T -Bonds). These are highly liquid and are considered the safest investment security. Federal Agency Securities are issued by direct U.S. Government agencies or quasi - government agencies. Many ofthese issues areguaranteed directly orindirectly bythe United States Government. Examples of these securities are Federal Home Loan Bank (FHLB) notes, Federal National Mortgage Associations (FNMA) notes, Federal Farm Credit Bank (FFCB) notes, Small Business Administration (SBA) notes, Government National Bank (GNMA) notes, Federal Home Loan Mortgage Credit (FHLMC) notes and Student Loan Association (SALLMAE) notes. Investment in these types ofsecurities is limited to 20% of the portfolio. Local Agency Investment Fund (LAIF) is a special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of$1,000 above that, with a maximum of $20 million and increasing to $30 million on July 1, 1998 for any agency. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly via direct deposit into the agency's LAIF account. The State keeps an amount for reasonable costs of making the investments, not to exceed one-quarter of one percent of the earnings. Certificates of Deposit are investments for inactive funds issued by banks, savings and loans and credit unions. Investments of $100,000 are insured respectively by Federal Deposit Insurance Corporation (FDIC), Federal Savings and Loan Insurance Corporation (FSLIC) and the National Credit Union Share Insurance Fund (NCUSIF). Certificates of Deposit can be issued from 14 days to several years in maturity allowing the City of Diamond Bar's investment of funds to be matched to cash flow needs. For deposits exceeding $100,000 the financial institution is required to collateralize with 110% government securities collateral. City of Diamond Bar does not accept 150% Collateral (First Trust Deeds) or 105% Letters of Credit (L.C.). Section 53635.2 of, the Government Code prohibits investments in certificates of deposits of state or federal credit unions if any member of the city's governing or managing officers(Council , City manager, Fiscal officers)serves on the credit union board or key committee positions. Negotiable Certificates of Deposit are unsecured obligations of the financial institution. These securities are generally issued in bearer form and pay interest at maturity. Although negotiable, a strong secondary market exists only in the NCD's issued by the largest United States banks. Examples of large banks include Bank of America, Citibank, Chase Manhattan, Manufacturers Hanover, etc. These securities generally trade with minimum amounts of $1 million per trade with the average trade in the secondary market of $5 million. Page 2 - Appendix A Investment in Negotiable Certificates of Deposit is limited to 30% of the investment portfolio per Government Code Section 53601. Bankers Acceptances are short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions . They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at maturity. An acceptance is a high grade negotiable instrument. Acceptances are purchased in various denominations for 30 to 180 days but no longer than 180 days. The interest is calculated on a 360 day discount basis similar to Treasury Bills. Investment in Banker's Acceptances is limited to 40% of the investment portfolio per Government Code Section 53601. Commercial Paper is a short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments may be purchased ata discount to par value or interest bearing. Commercia I paper is issued by corporations such as General Motors Acceptance Corporation (GMAC), Shearson American Express, Bank ofAmerica, Wells Fargo Bank, etc. Local agencies are permitted by state law to invest in commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided by Moody's Investor's Service, Inc. or Standard &Poors Corporatio n. Purchases of eligible commercial paper may not exceed 270 days maturity nor exceed twenty five percent of the local agency's total investemnts. Investment in Commercial Paper is limited to 25% of the total investment portfolio and 10% of the issuing corporation per Government Code Section 53601. Medium Term Corporate Notes are unsecured promissory notes issued by a corporation organized and operating in th a United States. These are negotiable instruments and are traded in the secondary market. Medium Term Notes (MTN) can be defined as extended maturity commercial paper. Corporations use these MTN's to raise capital. Examples of MTN issuers are General Electric, GMAC, Citibank, Wells Fargo Bank, etc. Investment in Medium Term Corporate Notes is limited to 30% of the investment portfolio per Government Code 53601. Notes must berated "A" or better. Passbook Savings Account is a certificate of deposit issued in any amount for a non specified amount of time. Interest rate is much lower than CD's but the savings account allows flexibility. Funds can bedeposit ed and withdrawn according to daily needs. Mutual Funds are referred to in the Government Code, Section 53601, K, as "shares of beneficial interest issued by diversified management companies". The Mutual Fund must be restricted by its by-laws to the same investments as the local agency by the Government Code. These investments are Treasury issues, Federal Agency issues, State of California and City (within California) debt obligations, Certificates of Deposit, Repurchase Agreements, Reverse Repurchase Agreements, Financial Futures and Financial Options and Medium Term Corporate Notes. The quality rating and percentage restrictions in each investment category, which are applicable to the local agency also, apply to the Mutual Fund. Additional limitations apply to such management companies orthei r investment advisors. The City may not invest in a mutual fund, which invests in derivative types of products. The purchase price of shares of mutual funds shall not include any sales commission. Investments in mutual funds shall not exceed fifteen percent of the local agency's investment portfolio. Active Deposits are demand or checking accounts which receive revenues and pay disbursements. Money Market Funds are comprised of short term government securities, certificates of deposit and highly rated commercial paper. Average length of maturity is twenty to fifty days. Money Market Funds are 100% liquid at any time. Repurchase Agreements and Reverse Repurchase Agreements are short term investment transactions. Banks buy temporarily idle funds from a customer by selling him U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date. Repurchase agreements are typically one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal Funds and the maturity of the REPO. Some banks will execute repurchase agreements for a minimum of $100,000, but most banks have a minimum of $500,000. Areverse-repur chase agreement (reverse-repo) is exactly what the name implies. The City of Diamond Bar does NOT invest in Reverse Repurchase Agreements. Financial Futures and Financial Options are forward contracts for securities. The government code states that a local agency may incur future contracts/option s in any of the investment securities enumerated in Section 53601 A-N. Due to the volatility of trading in financial futures the City of Diamond Bar does NOT invest in financial futures offinancial options. Derivative Products are structured products, which limits, through imbedded options, the flow of principal and or interest to the note holder. This limitation could be on how fast payments are received, how much principal is returned, or how high or low a coupon can move. Derivative is also a broad term referring to any security which derives its value from another underlying asset. The City of Diamond Bar does NOT invest in derivative products APPENDIX B CITY OF DIAMOND BAR BROKER/DEALER QUESTIONNAI RE AND CERTIFICATION 1. Name of Firm: 2. Address: 3. Telephone: ( ) ( ) 4. Broker's Representative to the City (attach resume): Name: Title: Telephone: ( 1 5. Manager/Partner-in-Charge (attach resume) Name: Title: Telephone: ( ) 6. List all personnel who will be trading with or quoting securities to City employees (attach resume) Name: Title: Telephone: ( ) ( ) 7. Which of the above personnel have read the City's investment policy? 8. Is your firm a primary dealer in United States Government Securities? Yes No CITY OF DIAMOND BAR Broker/Dealer Questionnaire and Certification Name of Firm: Page Two 9. List the total volume of United States Government and Agency Securities for the last calendar year. Firm -wide $ Your local office $ No. of Transacti ons No. of Transactions 10. Which instruments are offered regularly byyour local office? Treasury Bills Treasury Notes/Bonds BA's (domestic) BA's (foreign) Commercial Paper Agencies (specify): _ CMO's _ Bank CD's _ S&LCD's Repos Reverse Repos Other (specify): 11. References --Please identify your most directly comparable public sector clients in our geographical area. Entity Contact Telephone Client Since 12. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explai n. _ CITY OF DIAMOND BAR Broker/Dealer Questionnaire and Certification Name of Firm: Page Three 13. Has your local office ever subject to a regulatory or state/federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so explai n_ 14. Has a client ever claimed in writing that your firm was responsible for investment losses? If so, explain. 15. Explain your normal custody and delivery process. Who audits these fiduciary systems? Can you meet safekeepi ng requirements? 16. How many and what percenta ge of your transactions failed Last month? _ Last year? 17. Describe the capital line and trading limits of the office that would conduct business with the City of Diamond Bar. 18. Does your firm participate in the S.I.P.C. insurance program if not, explain CITY OF DIAMOND BAR Broker/Dealer Questionnaire and Certification Name of Firm: Page Four 19. What portfolio information, if any, do you require from your clients? 20. What reports, transactions, confirmations and paper trail will the City receive? 21. Does your firm offer inves tment training to your clients? Yes No 22. Please enclose the following: Latest audited financial statements. Samples of reports, transactions, and confirmations the City will receive. Samples of research reports and/or publications that your firm regularly provides to clients. Complete schedule of fees and charges for various transactions. CITY OF DIAMOND BAR Broker/Dealer Questionnaire and Certification Name of Firm: Page Five ***CERTIFICATION *** I hereby certify that I have personally read the Statement of Investment Policy of the City of Diamond Bar, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of Diamond Bar. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of Diamond Bar of all foreseeable risks associated with financial transactions conducted with our firm. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Signed Title Date Countersignature * Date Title * Company president or person in charge of government securities operations. CITY COUNCIL Agenda # _6.13 Meeting Date: June 15, 2004 AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager TITLE: Amendment No.1 to a Professional Services Agreement with BonTerra Consulting in an amount not -to -exceed $77,610.00 for preparation of an Environmental Impact Report for proposed Vesting Tentative Tract Map No. 53430 (Stanley Cheung) RECOMMENDATION: Approve. FISCAL IMPACT: All costs associated with the preparation of the environmental analysis are the responsibility of the developer via development processing fees paid to the City. The developer has previously entered into an Agreement with the City to provide the City with all funds necessary to process the proposed project. BACKGROUND: The City entered into a contract with BonTerra Consulting in the amount of $140,664.00 in March 2002 to prepare an Environmental Impact Report for a proposed 48 -unit single-family residential subdivision project located upon an 80 -acre site at the terminus of Blaze Trail, Alamo Heights and Rocky Trail. Several modifications to the project area boundary and tract map design have occurred since the project inception. Additional consultant tasks have included extensive animal and plant species survey work, hydrology and geotechnical report review, traffic study preparation and dozens of meetings between the developer, City staff and our environmental consultant as well as additional meetings with regulatory agencies (e.g., U.S. Army Corps of Engineers and California Department of Fish and Game). Most recently, BonTerra was requested to prepare a Habitat Mitigation Program for the development. BonTerra has been directed to perform additional tasks not previously contemplated when the contract was approved in March 2002. Therefore, BonTerra has requested a contract amendment in the amount of $77,610.00 to reflect the numerous identified changes to the originally contracted Scope of Work. The project developer is well aware of the additional Scope of Work items and has specifically requested the City consultant prepare certain tasks. Prepared by: James DeStefano Deputy City Manager Attachments: 1. Amendment No. 1 2. Request for Budget Augmentation dated March 18, 2004 3. Request for Budget Augmentation dated June 4, 2004 CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda #: 6.14 Meeting Date: June 15, 2004 AGENDA REPORT TITLE: Resolution No. 2004 -XX, Setting Forth Personnel Rules and Regulations and Rescinding Resolution No. 2003-45 in its Entirety. RECOMMENDATION: It is recommended that the City Council adopt Resolution No. 2004 -XX, setting forth personnel rules and regulations (Rules Resolution) and rescinding the Resolution from the prior year. FINANCIAL IMPACT: The proposed increase to the benefit allotment is estimated to cost of $14,993. Additionally, City Council is considering the Salary Resolution also included on this agenda, which includes the proposed 2% cost of living adjustment (COLA) for City personnel and is estimated to be a cost of $63,963 for a total estimated cost to the City of $78,956 for FY 04-05. These costs have been incorporated into the FY 04-05 Municipal budget. BACKGROUND/DISCU SSION: The FY 04-05 proposed budget includes a benefit allotment amount change of an additional $25 per month increasing the total amount available for Health Insurance to $795 for non-exempt employees and $825 for exempt employees. The proposed benefit allotment change as well as additional changes to clarify administrative language make itnecessary to amend the Rules and Regulations Resolution as well as the Salary Resolution (separate agenda item). Summary of Changes in the Rules Resolution: Health Benefit Allotment- Rules Section 6 This section has been amended to increase the monthly health benefit allotment by $25. Effective January 1, 2004, health benefit plans offered to City of Diamond Bar employees under the CalPERS Health Program increased an average of 20%. The estimated costs of Health Benefits for 2005 are unknown atthis time. The increase to the City's monthly health benefit allotment should help offset a portion of increases. Fair Labor Standards Act language - Rules Section 12 Language has been added stipulating the exempt employees are employed on a salary basis rather than an hourly basis and therefore leave will be granted on a ILLY basis rather than hourly in conformance with Federal law. Vacation Time Accrual - Rules Section 13 This section has been amended to permit vacation time to be accrued to a maximum amount of 320 hours increased from a 240 -hour maximum. The rate of accrual has not been amended. This change is recommended due to the on-going vacation scheduling dilemmas posed by a small organization with a senior (in terms of longevity with Diamond Bar) work force. Administrative Leave Carry-over - Rules Section 32 This section has been amended to permit eligible employees to accumulate administrative leave for a maximum of two fiscal years rather than the one-year restriction currently in place. Administrative leave would therefore no longer expire at the end of the first fiscal year. This change goes hand-in- hand with the scheduling issues mentioned above. The increase in these leave accrual maximums allows employees to continue to accrue vacation and administrative leave in the event their work load does not permit leave to be taken in the fiscal year. The Sections 6, 12, 13, and 32 changes have been incorporated into the Rules Resolution. The Rules Resolution becomes effective July 1, 2004. Additions are in highlighted text and deletions are in strikethrough text. Kim Crews Senior Management Analyst REVIEWED BY: David Doyle Linda Magnuson Deputy City Manager Finance Director Attachment: Rules Resolution amending Resolution No. 2004-xx with changes in highlighted text for additions and strikethrough text for deletions to the appropriate sections. RESOLUTION NO. 2004 -XX RESOLUTION OF THE CITY OF DIAMOND BAR SETTING FORTH PERSONNEL RULES AND REGULATIONS REGARDING THE PAYMENT OF SALARIES, SICK LEAVE, VACATIONS, LEAVES OF ABSENCES, AND OTHER REGULATIONS EFFECTIVE JULY 1, 2004; RESCINDING RESOLUTION NO. 2003-45 IN ITS ENTIRETY. 1. WHEREAS, the purpose of the rules and regulations is to communicate to employees the benefits, policies, and requirements of the job, as well as provide guidance to supervisors in the administration of the personnel system; 2. WHEREAS, the City Council has determined that it is necessary to the efficient operation and management of the City that rules and regulations be maintained prescribing sick leave, vacation, leaves of absences , and other regulations for the officers and employees of the City; and 3. WHEREAS, as the rules and regulations do not create any contract of employment, express or implied, or any rights in the nature of a contract; 4. WHEREAS, this Resolution will become effective on July 1, 2004; NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Diamond Bar, California, as follows: SECTION 1. COMPREHENSIVE JOB CLASSIFICATION AND SALARY SCHEDULES Pursuant to Ordinance 21 (1989), a comprehensive job classification and salary schedule for authorized full-time and part-time positions shall be established upon adoption of a resolution by the City Council. SECTION 2. JOB CLASSIFICATIONS For the purposes of the City's Personnel System, each position title shall correspond to a job classification number as reflected in the job classification and salary resolution. A. Hourly Non -benefited Positions — Job Classification Range 100-899. These positions are classified and referenced as either seasonal or intermittent part-time. 1. Seasonal Part-time — a seasonal position is a position that is utilized up to 40 hours per week on a seasonal or partial year basis, but not more than 1000 hours per fiscal year. 2. Intermittent Part-time — an intermittent position is a position that is utilized an average of 19 '/2 hours or less per week and no mo rethan 1000 hours per fiscal year. B. Hourly Benefited Positions — Job Classification Range 900-999. These positions are classified and referenced as regular part-time. A regul ar part-time position is a position that is utilized twelve (12) months per year and works an average of 20 or more hours per week on a year-round basis. Benefits for regular part-time employees shall be the same as provided for non-exempt full-time employees on a pro -rated basis. C. Full-time Non- Exempt Positions - Job Classification Range 1000-1599. Positions in job classification range 1000-1599 are subject to the Fair Labor Standards Act (FLSA) overtime requirements. D. Full-time Exempt Positions - Job Classification Range 1600-1999. The City of Diamond Bar has determined various executive, administrative and professional employees are exempt from the overtime requirements of the FLSA. Employees in the job classification range 1600 and above are considered exempt. E. Executive Management Positions - Job Classification Range 2000-3999 are Executive Management positions, which are also classified as exempt. Executive management positions may be terminated with or without cause, at any time, at the will of the City, in its sole d iscretion . SECTION 3. ADVANCEMENT WITHIN THE SALARY SCHEDULE A. New full-time and regular part-time employees shall be hired at the entry step or any step at the discretion of the City Manager and must successfully complete a one-year probation period. At the end of six months, the employee will be give n a performance evaluation and shall be eligible for the next step. Every year thereafter, employees shall be given a performance evaluation and shall move to each successive step, so long as the employee's performance is satisfactory or above. B. Intermittent and seasonal part-time employees shall be hired at the entry step or any step at the discretion of the City Manager and must successfully complete a one-year probation period. At the end of six months, the employee will be given a performance evaluation. In order to receive a step increase, a part-time employee must complete one year of service and worked a minimum of 500 hours. C. An employee that has received a one-year evaluation and has reached the top step in their job classification shall be moved to a July 1 annual evaluation date. D. An employee shall receive their annual step increase on time regardless of supervisor's completion of timely evaluation. SECTION 4. PROBATION The probationary period shall be regarded as part ofthe testing process and shall beutilized for closely observing the employee's work to determine the employee's fitness for the position. A. In an effort to monitor newly hired employees, the probation period for newly hired employees is one year of actual and continuous service. Periods of time on paid or unpaid leave exceeding five (5) days (consecutive or not) shall automatically extend the probationary period by that number of days the employee is on leave. B. If it is determined that the probationary shou Id be extended, the probationary employee shall begiven notice in writing prior to the expiration ofthe original probationary period. C. During the probationary period an employee may be rejected at any time without cause and without the right of appeal. SECTION 5. VEHICLE USE A. Private automobiles are not to be used for the City business except as authorized. The City Manager may authorize such use at the reimbursement rate equal to that set forth by the Internal Revenue Service. Payments shall be based upon the most direct route to and from the destination, and garage and parking expenses shall be paid in addition to the current rate, upon submission ofpaid receipts. B. Executive Management Employees will receive a monthly car allowance of $150 per month. This stipend will be in lieu of any mileage reimbursement. If additional garage and parking expenses are incurred, they are reimbursable. SECTION 6. HEALTH BENEFIT ALLOTMENT All designated officials, full-time employees and regular part-time employees will beprovided a monthly allotment of PJ -Q--$795 a month (pro -rated for regular part- time employees) which can be applied to selected benefit options as described in Section 7. A. Members of the City Council, Executive Management and employees defined as full-time exempt shall receive an additional $30.00 per month to be applied as described in Section 7. B. Premiums for selected benefits options are paid from the monthly health benefit allotment as described in section 7. The total of all premiums for selected benefits that exceed the monthly health benefit allotment will be paid at the employees' expense as a bi-weekly payroll deduction. C. Employees who are not encumbering their entirehealth benefit allotment will have those funds applied to a Section 457 deferred compensation plan offered through the International City Management Association (ICMA). Monies in excess of the City's 457 Plan maximum shall be paid off annually each December. SECTION 7. HEALTH AND BENEFIT OPTIONS A. All designated officials, full-time employees and designated regular part-time employees (pro- rated for regular part-time employees) are eligible to receive group health, dental, vision, life, deferred compensation, disability insurance and employee assistance program within the City's group insurance carrier(s). The administrative cost and premiums are paid as described below. Eligible dependents of designated officials and full-time and part-time employees are eligible for health, dental and vision insurance. B. Premiums for selected benefits that are not paid by the City are paid from the employee's monthly health benefit allotment to a maximum as described in Section 6. The total of all premiums for selected benefits that exceed the monthly health benefit allotment will be paid at the employees' expense as a bi-weekly payroll deduction. 1. Health Plan: Designated officials and full-time and regular part-time employees and their eligible dependents are eligible for health coverage throug h the California Public Employees' Retirement System (CalPERS). Premiums vary depending on health plan selected. If selected, the premium is deducted from the monthly health benefit allotment. 2. Dental Plan: Two dental plans are available to designated officials and full-time and regular part-time employees and theireligible dependents. The City pays for employee coverage. If dependent coverage is selected, the premium is deducted from the monthly health benefit allotment. 3. Vision Plan: One vision plan is available to designated officials and full-time and regular part-time employees and their eligible dependents. The City pays for employee coverage. If dependent coverage is selected, the premium is deducted from the monthly health benefit allotment. 4. Life/Accident al Death and Dismemberment Insurance: Life and accidental death and dismemberment insurance is provided to all designated officials ($10,000 benefit) and full- time and regular part-time employees ($50,000 benefit). This benefit is provided at no cost to designated officials and full-time employees and at a pro -rated cost to regular part-time employees. Supplemental life insurance is also available. If supplemental life insurance is selected, the premium is deducted from the monthly health benefit allotment. Deferred Compensation: A Section 457 deferred compensation plan is made available to all designated officials and full-time and regular part-time employees through the International City Management Association (ICMA). Employees not encumbering their entire monthly health benefit allotment will have those excess funds deferred into this plan. Employees may also elect to have additional contributions are their expense as a payroll deduction on a bi-weekly basis. Total deferral contributions are not to exceed limits under Section 457 of the Internal Revenue Code. Short-term and Long-term Disability: A short-term and long-term disability benefit is provided to all full-time and regu lar part-time employees at no cost to the employee. This benefit provides income replacement in the event of a covered disability at 60% of salary up to a maximum of $1500 per week. There is a 15 -day elimination period for short-term disability. Employee Assistance Program (EAP) — All designated officials and full-time and regular part-time employees are eligible to receive face-to-face assessment, treatment and follow- up to help resolve a broad range of personal, work, and family problems. Employees are eligible to receive up to 5 -sessions of treatment with professional counselors for early intervention and treatment at no cost the employee. SECTION 8. STATUS OF EMPLOYMENT All employees serve under the City Manager, pursuant to Government Code Section 34856. Per Government Code Section 36506, nothing in thes a rules and regulations shall be construed to provide employees with any tenure or property interest in employment. SECTION 9. PUBLIC EMPLOYEES' RETIREMENT SYSTEM -DEFERRED COMPENSATION The City of Diamond Bar shall pay the employee contribution of said employee salary to the State Public Employees' Retirement System (PERS) as deferred income. SECTION 10. PAY PERIODS The compensation due to all officers and employees of the City shall be paid on a bi-weekly basis. SECTION 11. PAY DAYS Warrants, checks or electronic transfers in the payment of compensation shall be made available by the City to employees and officers of the City on the Friday succeeding the close of any given pay period. In an event that pay day falls on a holiday, all warrants, electronic transfers or checks in payment of compensation shall be made available to the City employee on the last work day preceding the holiday. SECTION 12. WORKING HOURS AND OVERTIME A. Nine (9) hours Monday through Thursday and eight (8) hours on Friday, exclusive of lunch period, shall constitute a day's work for all full time employees participating in the 9/80 flex plan. Employees participating in the 9/80 -flex plan will work 80 hours in a nine -day period. Eight (8) hours, exclusive of lunch period, shall constitute a day's work for all full time employees participating in the traditional eight- (8) hour work schedule. B. The official work week of the City of Diamond Bar shall be Monday through Thursday, 7:30 a.m. to 5:30 p.m., and Friday, 7:30 a.m. to 4:30 p.m. It shall be the duty of each Department Head to arrange the work of their Department so that each employee therein shall not work more than five days in each calendar week. The City Manager may require an employee to temporarily perform service in excess of five (5) days per week when public necessity or convenience so requires. 1. The work period will be begin at 12:01 p.m. on Frid ay and end the following Friday at noon for all full-time employees on a traditional schedule and all full-time employees scheduled to be off on Fridays in accordance with the 9/80 work schedule. 2. The work period will begin at 12:01 p.m. on Monday and end the following Monday at 12 noon for all full-time employees scheduled to be off on Mondays in accordance with the 9/80 schedule. C. Whenever an employee, other than an exempt employee, shall be required to work overtime, beyond 40 hours per week, such person shall receive compensation for such overtime worked atone and one-half (1 1/2) times the regular rate of pay, provided they have completed full 40 hour work week. D. Any full time employee, other than an exempt, who is required to work on an observed holiday beyond the regular 40 hour work week, shall be entitle d to pay at the rate of two (2) times the regular rate of pay provided they have worked a 40 hour work week. E. Hourly and non-exempt employees are prohibited from working overtime without express authorization from the City Manager. F. Employees who are exempt from the Fair Labor Standards Act (FLSA) overtime provisions are compensated on a salary basis and only deductions from salary that are consistent with FLSA will be made. G. There is nothing contained within this Section to exclude the City from implementing a 4-10 or traditional Plan attheir option. SECTION 13. ANNUAL VACATION The purpose of annual vacation leave is to enable each eligible employee annually to return to his or her work mentally and physically refreshed. All eligible employees shall be entitled to annual vacation leave with pay as follows: A. A full time employee, pursuant to the below schedule, shall be entitled to a vacation, to be accrued at the appropriate hours per pay period. Regular part-time employees are eligible for vacation ata pro -rated accrual rate based upon hours scheduled to work. YEARS OF SERVICE ANNUALVACATION ACCRUAL 1 - 5 80 hours 3.08 hours per pay period 6 — 10 120 hours 4.62 hours per pay period 11 & up 160 hours 6.15 hours per pay period B. Vacation time may be accu mulated to a maximum of 2.4& 320 hours. Once the 2"Z40 h8CT 320 - hour maximum accumulation is exceeded, no further vacation leave shall accrue until the employee reduces the accumulation below the maximum. C. The total vacation allowance shall be computed to the nearest whole day based upon the number offull months of City service. D. In the event one or more observed holidays follow accumulated vacation leave, such days shall not be charged as vacation leave and the vacation leave shall be extended accordingly for those employees eligible for such holidays. E. An employee shall take vacation atsuch timeduring the calendar yearbased upon due regard to the needs of the employee's services and the work schedule. F. Employees are eligible to use vacation leave, as it is accrued and/or accumulated. G. The time set for the vacation of the City Manager shall be subject to the approval of the City Council. H. Employees who terminate shall be paid the salary equivalent to all accrued and accumulated vacation. I. All vacation requests shall be made at least ten (10) days in advance and employee's supervisor and City Manager must give prior approval. J. If an employee does not request time off in advance and simply does not show up for work, the City Manager may deny the use of vacation time or other benefit for the time off, and said employee is subject to disciplinary action including discharge. K. Exempt employees, for the purpose of accrual, shall be credited with previous municipal experience, up to five (5) years of full-time service. SECTION 14. SICK LEAVE A. Sick leave with pay shall be accrued by full-time employees at a rate of 3.08 hours per pay period. Regular part-time employees are eligible for sick leave and receive a pro -rated accrual rate based upon hours scheduled to work. B. Employees are eligible to use sick leave, as it is accrued and/or accumulated. C. Absence or illness may not be charged to sick leave if not already accrued and/or accumulated. D. Each full time employee shall be paid annually for all accrued sick leave in excess of the maximum allowable accumulation of 200 hours at a rate of one-half the employee's current wage at the time of payment. Said payment is to be made during the month of December, or at such other time as the City Manager may determine, at his/her absolute discretion, as appropriate. E. Sick leave shall be allowed only in case of necessity and actual sickness or disability of the employee or dependent family members, as determined by the City Manager. In order to receive sick leave with pay, the employee shall notify the supervisor or Department Head prior to or within two (2) hours after the time set for beginning daily duties. The City Manager may, if he/she deems necessary, require the employee to file a Physician's Certificate ora Personal Affidavit. F. Sick leave shall not accrue to any employee for any month in which that employee is on unpaid leave and does not work a minimu m of 80 hours in any one month. G. If an employee does not show up for work and does not call in within two hours, the City Manager may deny use of sick leave for the unauthor ized time off, and employee is subject to disciplinary action. H. Except as otherwise required by law, employees using all accumulated sick leave may be deemed to have abandoned their employment. I. After five (5) years of service, when an employee retires, resigns or terminates in good standing, that employee will be paid all accumulated sick leave ata rate of one-half (1/2) of the employee's current rate of pay at his/her date of termination. J. Sick leave to attend to the illness of a child , parent, or spouse of the employee (pursuant to California Labor Code Section 233). Use of sick leave for this purpose (as opposed to when used for an employee's own illness), shall be limited to half the yearly sick leave entitlement in any one (1) year period. The amount of leave available is limited to what the employee accrued prior to utilizing sick leave for this purpose. Additionally, sick leave taken for this purpose shall be allowed only in the case of necessity of and actual illness of an employee's child, parent, or spouse as determined by the City Manager. In order to receive sick leave with pay for this purpose, the employee shall notify the Department Head prior to or within (2 hours after the start of the employee's scheduled work shift. The City Manager may, if he/she deems necessary, require the employee to file a Physician's Certificate (regarding the illness of the employee's child, parent or spouse) or an Affidavit stating the cause of absence. Use of sick leave under this section shall not extend the maximum period of leave to which an employee is entitled under Family and Medical Leave (Section 16). SECTION 15. FAMILY AND MEDICAL LEAVE The family and medical leave policy complies with the California Government Code, Sections 12945, 12945.2, and 19702.3, and the federal Family and Medical Leave Act of 1993. California law shall prevail unless preempted byfederal law. Copies of the state and federal acts are available in the Personnel Department. Following is a summary ofpertinent sections. A. The family and medical leave allows for an eligible employee to take twelve (12) weeks of leave in a twelve (12) month period for the birth, adoption, orfoster care ofa child; the serious health condition of the employee's child, parent or spouse; or the employee's own serious health condition. B. During the twelve (12) week period, paid leave may be charged to accrued benefit time such as vacation, administrative leave and floating holidays, at the employee's request during the family and medical leave period as long as the total time off does not exceed twelve (12) weeks in a twelve (12) month period. In addition, accrued sick leave may be used at the employee's request, in accordance with Section 15. If the employee has extinguished their benefit leave and accrued leave balance, but have a balance in their FMLA, they are still eligible to take the time, but must do so at no pay and with no accrual of leave time (sick or vacation). C. Health insurance benefits shall continue for the duration of the family and medical leave under the same conditions as if the employee had continued employment. If the employee fails to return to work after the period of leave to which the employee is entitled has expired, the City is entitled to recover the premiums paid on behal fof the employee for maintaining coverage. D. To be eligible for family and medical leave, the employee must be employed by the City of Diamond Bar for at least 12 months and has worked at least 1,250 hours over the previous 12 - month period for the City of Diamond Bar. E. The City will use a rolling 12 -month period measured backward from the date the employee uses FMLA. F. The City Manager may, if he/she deems necessary, required the employee to file a Physicians Certificate or Personal Affidavit stating the cause of absence. G. When a husband and wife are both employed by the City of Diamond Bar, they are limited to a total of 12 weeks collectively for family leave during the 12 -month period. H. Employee will be reinstated to the same position of employment held when the employee's leave commenced; or reinstated to an equivalent position with equivalent employment benefits, pay, and other terms and conditions of employment, unless position ceased to exist for reasons unrelated to the leave. SECTION 16. PREGNANCY DISABILITY LEAVE In compliance with California law, the following section has been added. Separate from FMLA, when an employee is pregnant, they are eligible for six weeks of leave for a normal childbirth and up to 16 weeks when there is certification by a physician that there is a disability or related medical condition due to the pregnancy. A. During the Pregnancy Disability Leave Time, paid leave may be charged to accrued benefit time such as vacation, administrative leave and floating holidays, at the employee's request. In addition, accrued sick leave may be used at the employee's request, in accordance with Section 15. If the employee has extinguished their benefit leave and accrued leave balance, but have a balance in their PDL, they are still eligible to take the time, but must do so at no pay and with no accrual of leave time (sick orvacation). B. Health insurance benefits shall continue for the duration of the Pregnancy Disability Leave under the same conditions as if the employee had continued employment. If the employee fails to return to work after the period of leave to which the employee is entitled has expired; the City is entitled to recover the premiums paid on behalf of the employee for maintaining coverage. C. The City Manager may require the employee to file a physician's certificate or personal affidavit if the leave is to be for more than a six-week period. SECTION 17. BEREAVEMENT LEAVE When circumstances are such and the City Manager determines that conditions warrant, three (3) paid bereavement leave days may be granted in the event of death of a relative of a full-time employee. "Relative" is defined as spouse, parents, children, step -children, brother, sisters, grandparents, grandchildren, half-brothers, half-sisters, aunts, uncles, to the City employee oras may be approved by the City Manager. SECTION 18. UNAUTHORIZED LEAVE If an employee does not show up for work for three consecutive work days without notifying said employee's supervisor or Department Head, said employee shall be considered to have voluntarily terminated employment with the City. SECTION 19. ON-THE-JOB INJURY Whenever a person is compelled to be absent from employment with the City on account of injury arising out of or in the course of that employee's employment as determined by the Workers' Compensation Act, the employee may elect to apply pro -rated accrued sick leave, if any, to such absence to receive compensation of an amount of the difference between the compensation received under the Workers' Compensation Act and that employee's regular pay, not to exceed the amount of the employee's earned sick leave. An employee in such instance may also elect to use any earned vacation time in like manner after sick leave is exhaus ted. The City will pay the employee up to three (3) days of that employee's regular salary as it relates to an on-the-job injury and if not covered by Workers' Compensation. SECTION 20. JURY DUTY If a full-time employee is called for jury duty, such person shall receive regular pay while actually performing jury service, however, any amount received by such employee as payment for services as juror shall be reimbursed to the City. All mileage paid to the employee, as a juror shall not be considered as a reimbursable item to the City. Regular part-time employees who are eligible for jury duty receive such as a pro -rated accrual rate based upon hours scheduled to work. SECTION 21. ATTENDANCE Full time employees shall be in attendance at their work in acco rdance with the rules regarding hours of work, holidays, and leave. Departments shall keep attendance records of all employees. Absence of any employee without leave may result in possible disciplinary action, including discharge. SECTION 22. HOLIDAYS A. Holidays which fall on Saturday shall beobser ved on the preceding Friday, and holidays which fall on Sunday shall be observed on the following Monday. Paid holidays are only for the observed days. B. The City of Diamond Bar's observed paid holidays are as follows: 1. New Year's Day (January 1) 2. President's Day (observed the third Monday in February) 3. Memorial Day (observed the last Monday in May) 4. Independence Day (July 4) 5. Labor Day (observed first Monday in September) 6. Veteran's Day (November 11) 7. Thanksgiving Day 8. Day following Thanksgiving Day 9. Christmas Eve (December 24) 10. Christmas Day (December 25) 11. Sixteen (16) Floating Holiday Hours C. If an observed holiday falls on a nine (9) hour work day under the 9/80 work schedule, those employees on the 9/80 schedule shall receive nine (9) hours of holiday pay and those employees on a traditional work schedule shall receive eight hours of holiday pay. D. If an observed holiday falls on an eight (8) hour work day under the 9/80 work schedule, those employees on the 9/80 schedule shall be receive eight (8) hours of holiday pay and those employees on the traditional work schedule sha II receive eight (8) hours of holiday pay. SECTION 23. FLOATING HOLIDAY HOURS A. Each full time employee is allowed sixteen (16) hours per calendar year, January through December. Regular part-time employees are allowed prorated floating holiday hours per calendar year, January through December based upon hours scheduled to work. B. Floating Holiday hours are not cumulative and must be used during the above period or said employee will lose theallocated hours. C. Each employee must submit a request in advance, and approval must be given by the employee's supervisor and Department Head. D. An employee is eligible to use floating holiday hours as they are accrued. E. Floating Holiday hours may be used in lieu of sick leave only if all other benefit time has been exhausted. SECTION 24. TRAINING PLAN The City Manager and employees of the City are eligible to request specialized training in the form of symposiums, special courses, forums, etc., at the City's expense. SECTION 25. LEAVE OF ABSENCE Leave of absence without pay may only be granted by the City Manager and shall not exceed one year, except as otherwise prescribed by law. SECTION 26. RESIGNATION An employee wishing to terminate employment in good standing shall file a written resignation with the City Manager stating the effective date and reasons for leaving, at least two (2) weeks prior to the resignation. Failure to give such notice shall mean the employee did not terminate in good standing, unless by reason of hard ship and upon that employee's request, the City Manager has waived the two-week notice requirement. SECTION 27. ANTI -NEPOTISM PROVISION A. Relatives of those listed below may not be employed anywhere in the City organization: 1. City Council Members; 2. Standing Board and Commission members; 3. Management Team Members ofthe City; 5. Employees ofthe City Manager's Department; or 6. Employees of the Personnel Department. B. The employment of a relative within a department is prohibited when they: 1. Perform joint duties; 2. Share responsib ility of authority; 3. Function in the same chain of command; and 4. Work on the same shift at the same work site. C. For business reasons of supervision, safety, security or morale, the City may refuse to place one spouse under the direct supervision of the other spouse. D. For business reasons of supervision, safety, security or morale, an employer may refuse to place both spouses in the same department, division, or facility if the work involves potential conflicts of interest or other hazards greater for married couples than other persons. E. "Relative" means child, stepchild, parent, grandparent, grandchild, brother, sister, half-brother, half-sister, aunt, uncle, niece, nephew, parent -in-law , brother -in law, sister-in-law, or another individual related by blood or marriage. F. "Employee" means any person who receives a City paycheck for services rendered to the City. G. For business reasons, these sections shall be enforced to address the marriage of employees in the City's employment, within six (6) months of said marriage. H. Exceptions to this section may be made by the City Manager in unusual circumstances where the concerns addressed by this policy are not implicated. Any appeal of the enforcement of this section shall be in accordance to the City's grievance procedures. SECTION 28. NON-DISCRIMINATI ON The City of Diamond Bar does hereby affirm to adopt and support a policy of non- discrimination with regard to all phases of personnel recruitment, selection and appointment. The City further declares that it will not exclude from participation in, deny the benefits to, or subject to discrimination any person on the basis of race, color, sex, religious affiliation, national origin, age or disability, thereby affirming the City of Diamond Bar's posture as an equal opportunity employer. SECTION 29. EMPLOYEE PERFORMANCE EVALUATION APPEALS PROCEDURES It is the intent of the City to offer fair and equitable appeals procedures for employee's performance evaluations. Below are the official guidelines. A. Employee and supervisor meet to review and discuss the employee's performance evaluation. B. The employee may respond in writing to the contents of the evaluation. The employee must submit this response to the Department Head within five (5) working days immediately following receipt ofthe evaluation. C. The Department Head, as the reviewing official, shall respond in writing to the employee within five (5) working days. This response becomes an official part of the evaluation. D. If the Department Head does not respond or if the employee chooses to continue to appeal following the response from the reviewing official, the employee must submit an additional written response to the Personnel Officer within five (5) working days after receipt of the reviewing official's response. E. The Personnel Officer shall review the evaluation appeal within five (5) days with the employee, supervisor and Department Head. Every effort will be made at this level to resolve the appeal. If the Personnel Officer and City Manager are the same, the appeal shall proceed directly to the City Manager. F. If the matter is not settled, a written appeal may be submitted to the City Manager by the employee within five (5) working days following the decision rendered in writing by the Personnel Officer. G. The City Manager shall review the appeal with the employee, supervisor, Department—Head and Personnel Officer. The decision shall be rendered in writing within fifteen (15) working days bythe City Manager, and the decision ofthe City Manager shall befinal. SECTION 30. POST OFFER PHYSICAL EXAMS As a condition of an offer of City employment all candidates must successfully pass a post - offer physical and substance abuse exam and are subject to fingerprinting and a background investigation. The candidates being considered for employment will be sent to a City authorized physician atthe City's expense. SECTION 31. EMERGENCY CALL -OUT POLICY The following Emergency Call -Out Policy shall be adhered to: A. When a full time employee or part-time, other than an exempt employee, is called out for a City emergency, the employee shall be given a minimum of two hours pay, regardless of the amount oftime ittakes to rectify the problem. B. The employee shall be paid overtime per Section 12. SECTION 32. ADMINISTRATIVE LEAVE Exempt employees are allowed eighteen (18) hours of administrat ive leave per fiscal year. Executive Management employees are allowed thirty-six (36) hours of administrative leave per fiscal year. Additional days of leave may beauthorized bythe City Manager, based on the number oftotal hours the individual works over and above 40 hours per work week. Administrative leave may w)-� be accumulated and carried over to the following year for a maximum of two years. # Administrative leave must be used by June 30 of G@Gh the second fiscal year. Leave Requests shall be submitted to employee's immediate supervisor for approval, then forwarded to the City Manager for approval. Use of Administrativ e leave will be authorized at the convenience of the City and the work schedule. SECTION 33. MEDICARE Pursuant to Revenue Billing 86-68 of the Internal Revenue Code, all employees hired after March 31, 1987 will have 1.45 percent of their base salary deducted from their paycheck to be paid to Medicare. The City will match the 1.45 percent as mandated by law. SECTION 34. IMMIGRATION REFORM AND CONTROL ACT OF 1986 In compliance with the Immigration Reform and Control Act of 1986, all new employees must verify identity and entitlement to work in the United States by providing required documentation. SECTION 35. EXTENDED BENEFITS —COBRA The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides for the continuation of health care coverage to certain employees who terminated employment and beneficiaries of employees who die, become disabled or are divorced. Employees become eligible for continued coverage upon termination of service, whether voluntary or not (other than termination for gross misconduct), retirement or reduction in hours worked. For these employees and their dependents, continued coverage is available for the time period set forth bylaw, attheir expense. SECTION 36. TUITION REIMBURSEMENT Subject to Council fiscal year budget authorization, each full-time and regular part-time (on a pro -rated basis) employee shall be entitled to reimbursement in the amount of $500 per fiscal year, for college -level or university -level educational courses (including tuition and related books), which have been approved by the Personnel Officer or his/her designate as being job-related and of value to the City. Reimbursem ent under this Section is contingent upon the verification of the attainment of a letter grade of "C" or better, or in those cases where no letter grade is given, verification of completion of the course with a "Pass" or "Credit" grade and submittal of a receipt for registration bearing the name of the course, for which reimbursement is being requested. In the case of reimbursement for books for any approved/verifie d course; a syllabus, course reading list or course outline showing the book as being required for the course, plus a receipt bearing the title of the book shall be submitted. SECTION 37. PART TIME EMPLOYEES' RETIREMENT Effective July 1, 1991, intermittent and seasonal part-time employees will be covered by a retirement system, under Social Security(OASDI). An employee's contribution rate shall be 6.2% on wages up to the maximum provided by law. The employer's tax rate is the same. Election workers and emergency workers are excepted from coverage, under this section. Regular part-time employees are covered under the State Public Employees' Retirement System (PERS). SECTION 38. SEVERABILITY The City Council declares that, should any provision, section, paragraph, sentence, or work of this Resolution be rendered or decla red invalid by any final Court action in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, and words ofthis Resolution shall remain in full force and effect. SECTION 39. Resolution No. 2003-45 is hereby repealed in its entirety PASSED, ADOPTED AND APPROVED THIS day of , 2004 Bob Zirbes, Mayor I, Linda C. Lowry, City Manager of the City of Diamond Bar, do hereb y certify that the foregoing Resolution was passed, approved and adopted at a meeting of the City Council of the City of Diamond Bar held on the day of , 2004, by the following vote: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ATTEST: Linda C. Lowry, City Clerk City of Diamond Bar CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # 615 Meeting Date: June 15, 2004 AGENDA REPORT TITLE: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DIAMOND BAR OPPOSING CALIFORNIA STATE ASSEMBLY BILL 2406 (BERMUDEZ): FIRE PROTECTION WHICH WOULD MANDATE CONFORMITY TO SPECIFIC RESPONSE TIMES, STAFFING OBJECTIVES, AND REPORTING REQUIREMENTS FOR FIRE DEPARTMENTS. RECOMMENDATIONS: It is recommended that the City Council adopt the Resolution. FISCAL IMPACT: The Fiscal impact to the City of Diamond Bar is undete rminable atthis time. However, significant on- going state-reimbursab le costs to local fire departments will be necessary — totaling nearly $7 million per year for increased reporting requirements; and significant on-going costs of $200,000 from the State General Fund to the State Fire Marshall for staff to compile, analyze, and publish data. 1: 7_[�7:(e3:Z�1�1►U1I�76Y�1���9[�7►E Assembly Bill 2406 (Bermudez) could dramatically increa se local fire protection staffing costs. The bill requires the State Fire Marshal to compare each fire department's National Fire Incident Reporting System, NFIRS -which would include specific response time and staffing objectives -to the highly controversial staffing "standards" adopted in 2001 by the National Fire Protection Association (NFPA 1710). Unfortunately, this standard is virtually impossible to meet and was opposed by most local officials in California and across the country because it is a one- size-fits-all-po licy that is unsuitable for many jurisdictions. AB 2406 would not be fiscally feasible for cities, counties, and special districts without a fire station located every mile and a half. The inclusion of mandated reporting requirements further increases the potential fiscal impacts of AB 2406 on State and local governments, and also creates a perception that would increase liability for cities, counties and special districts. Prepared with information from the League of California Cities. Prepared by: Jim Clarke, Legislative Analyst Attach men is 1. Resolution No. 2004 -XX Opposing AB 2406 (Bermudez): Fire Safety RESOLUTION NO. 2004 -XX A RESOLUTION OF THE CITY COUNCI L OF THE CITY OF DIAMOND BAR OPPOSING CALIFORNIA STATE ASSEMBLY BILL 2406 (BERMUDEZ): FIRE PROTECTION WHICH WOULD MANDATE CONFORMITY TO SPECIFIC RESPONSE TIMES, STAFFING OBJECTIVES, AND REPORTING REQUIREMENTS FOR FIRE DEPARTMENTS. WHEREAS, AB 2406 (Bermudez) requires the State Fire Marshal to compare each fire department's National Fire Incident Reporting System (NFIRS) to the highly controversial staffing "standards" adopted in 2001 by the National Fire Protection Association (NFPA 1710); and WHEREAS, the NFIRS includes specific response time and staffing objectives; and WHEREAS, AB 2406 would not be fiscally feasible for cities, counties, and special districts without a fire station located every mile and a half; and WHEREAS, the inclusion of man dated reporting requirements further increases the potential fiscal impacts of AB 2406 on State and local governments; and WHEREAS, the standard set forth by AB 2406 would be virtually impossible to meet and was opposed by most local officials in California and across the country due to its itis a one -size -fits- all - policy that is unsuitable for many jurisdiction s including the City of Diamond Bar and Los Angeles County. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Diamond Bar OPPOSES AB 2406 (Bermudez): Fire Safety and directs the following: SECTION 1. That the City Council of the City of Diamond Bar shal I adopt the Resolution and the City Clerk shall certify to the adoption. SECTION 2. That the City Coun cil of the City of Diamond Bar asks all elected local and State officials to OPPOSE AB 2406 (Bermudez). SECTION 3. That certified copies of the resolution be circulated to the following: League of California Cities, L.A. Division Assemblyman Bob Pacheco Senator Bob Margett CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager Agenda # 6.16 Meeting Date: June 15, 2004 AGENDA REPORT TITLE: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DIAMOND BAR SUPPORTING CALIFORNIA STATE ASSEMBLY BILL 1802 (BOGH): ILLEGAL DUMPING: PENALTIES WHICH WOULD INCREASE THE MONETARY FINES FOR ILLEGAL DUMPING OF SOLID WASTE. RECOMMENDATIONS: It is recommended that the City Council adopt the Resolution. FISCAL IMPACT: There is no fiscal impact to the City of Diamond Bar. BACKGROUND / DISCUSSION: Existing law (California Integrated Waste Management Act of 1989) provides that it is unlawful to dump or cause to be dumped any waste matter in or upon any public or private highway or road, including any portion of the right-of-way, any private property without consent of the owner, or any public property other than public property set aside for dumping. It also states that itis unlawful to place, deposit, or dump, or cause to be placed, deposited, or dumped, any rocks or dirt in or upon any private road, including any portion of the right-of-way, any private property without consent of the owner, or any public property without consent of the state or local agency with jurisdiction over the property. Assembly Bill 1802 (Bogh) increases the mandatoryfine for unlawful dumping of commercial quantities of waste matter, rocks, or dirt. Specifically, AB 1802 raises the mandatory fine for dumping commercial quantities of waste matter, rocks, or dirt as follows: 1) For a first conviction, raises the minimum fine from $500 to $1,000 and the maximum fine from $1,500 to $3,000; 2) For a second conviction, raises the minimum fine from $1,500 to $3,000 and the maximum fine from $3,000 to $6,000; or, 3) For a third or subsequent conviction, raises the minimum fine from $2,750 to $6,000 and the maximum fine from $4,000 to $10,000. AB 1802 will help to curb the illegal disposal of solid wa ste. By increasing the penalties the bill would deter illegal dumping and encourage residents and businesses to take pride in their communities. AB 1802 would also help ensure the protection of pub lic health and safety and preserve our natural resources. Prepared with information from the State Legislative Analyst Office. Prepared by: Jim Clarke, Legislative Analyst Attach men is 1. Resolution No. 2004 -XX Supporting AB 180 2 (Bogh): Illegal Dumping: Penalties RESOLUTION NO. 2004 -XX A RESOLUTION OF THE CITY COUNCI L OF THE CITY OF DIAMOND BAR SUPPORTING CALIFORNIA STATE ASSEMBLY BILL 1802 (BOGH): ILLEGAL DUMPING: PENALTIES WHICH WOULD INCREASE THE MONETARY FINES FOR ILLEGAL DUMPING OF SOLID WASTE. WHEREAS, Assembly Bill 1802 (Bogh) would update the California Integrated Waste Management Act of 1989; and WHEREAS, AB 1802 (Bogh) increases the mandatory fine for unlawful dumping of commercial quantities of waste matter, rocks, or dirt; and WHEREAS, AB 1802 will help to curb the illegal disposal of solid waste; and WHEREAS, AB 1802 would deter illegal dumping and encourage residents and businesses to take pride in their communities; and WHEREAS, AB 1802 would also help ensure the protection of public health and safety and preserve our natural resources. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Diamond Bar SUPPORTS Assembly Bill 1802 (Bogh): Illegal Dumping: Penalties and directs the following: SECTION 1. That the City Council of the City of Diamond Bar shal I adopt the Resolution and the City Clerk shall certify to the adoption. SECTION 2. That the City Coun cil of the City of Diamond Bar asks all elected local and State officials to SUPPORT AB 1802 (Bogh). SECTION 3. That certified copies of the resolution be circulated to the following: League of California Cities, L.A. Division Assemblyman Bob Pacheco Senator Bob Margett Agenda # Meeting Date: June 15, 2004 CITY CC?UNCIL AGENDA REPORT 8.1 TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager TITLE: Approval and adoption of the FY04-05 City of Diamond Bar Proposed Municipal Budget RECOMMENDATION: Adopt Resolution 04 -XX — "A RESOLUTION OF TH E 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, 2004 AND ENDING JUNE 30, 2005, INCLUDING MAINTENANCE AND OPERATIONS, SPECIAL FUNDS AND CAPITAL IMPROVEMENTS AND APPROPRIATING FUNDS FOR ACCOUNTS, DEPARTMENTS, DIVISIONS, OBJECTS AND PURPOSES THEREIN SET FORTH" and amending the City Manager Proposed FY04-05 Budget as directed by City Council in this public meeting. FINANCIAL IMPACT: The document as submitted reflects General Fund Estimated Resources of $15,511,280 with anticipated appropriations of $14,678,690. This results in an increase of $832,590 to the General Fund reserves from annual operations. In addition to the annual appropriations, the proposed budget reflects a transfer of $1,120,260 in General Fund reserves to the Capital Improvement Projects Fund to assist in the construction of several capita I improvement projects. If approved, the FY04-05 Municipal Budget anticipates an ending General Fund fund balance of $21,822,797 based on projected revenues and expenditures. The proposed budget also includes a Capital Improvement program that amounts to $5,572,295. In addition there are spending plans for the various Special Revenue Funds and Internal Service Funds. In addition to the proposed document, several decision packages will be discussed at the study session prior to the City Council meeting. Those decision packages approved by the City Council at the study session will be inco rporated in to the budget as directed in the City Council adoption motion. Page 2 — FY04-05 Budget Report BACKGROUND Each year the City Manager prepares and submits a preliminary municipal budget for review and adoption. This year the proposed budget and various decision packages were presented to the Finance Sub -Committee at its meeting on May 27, 2004, and will have been discussed attwo City Council study sessions during the month of June 2004. During these discussions an emphasis was placed on adopting a conservative budget that could absorb possible State cuts in funding with the least disruption to City services and on-going work plans. DISCUSSION: The attached budget document presents an operating plan that permits the City to live within a reasonable estimate of revenues while continuing to provide community programs and services to the residents of the City of Diamond Bar, including making planned improvements to infrastructur eand facilities. Items of Note Included in the Budget: Personnel Changes: Cost of Living Adjustment (COLA) — a 2.0 percent COLA has been applied. This is based on the CPI as provided through the U.S. Department of Labor and California Department of Finance for the twelve months ending in March 2004. Benefit Allotment — Due to the increasing cost of PERS health care insurance costs, the cafeteria benefit has been increased by $25 and now stands at $795/month for non-exempt and $825/month for exempt employees and City Council. Retirement Contributions — Next year's retirement contribution made by the City on behalf of staff and City Council has increased from 12.696% in FY04 to 15.061% for FY05 or 2.365%. This is due to revised actuarial estimates and reduced investment return on the investments held by CaIPERS. This increase has been incorporated in the proposed FY05 Budget document. City Manager/City Clerk Division: In previous budgets, the City Manger's Division and the City Clerk's Division have been separated. This year, the City Clerk's Division has been incorporated into the City Manager's Division. For clarification purposes, the title shown is City Manager/ City Clerk. Diamond Bar Center: The Diamond Bar Center opened for operations during FY 04 and in an effort to track costs associated with the operation of the facility various options are being evaluated. At this time the Page 3 — FY04-05 Budget Report proposed budget includes a new division to identif y items that will be specifically charged to the Diamond Bar Center. Staff is working with the City's auditors to establish an accounting method for the Banquet Facility portion of the Center. This would address thebanquet function as an enterprise and address the depreciation of equipment. Once a recommendation is established in coop eration with the City's auditors the matter will be brought to the City Council for consideration. City Manager's Compensation: With the concurrence of the Council City Manager Sub -committee, the current proposed budget includes a 2% COLA increase in the City Manager's compensation. Decision Packages: Decision Packages have been discussed in the preceding City Council Study session. Any items approved during the study session shall be incorporated in the FY04-05 final budget document by motion of the City Council. A listing of the proposed decision packages is attached. PREPARED BY: Linda G. Magnuson 1:7:kV/IWITA097: U Department Head Attachments: Resolution #04 -XX Fiscal Year 2004-2005 Annual Budget (proposed) FY 04-05 Personnel Summary FY 04-05 Decision Packages 3 Deputy City Manager A. Recitals RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUN CIL OF THE CITY OF DIAMOND BAR APPROVING AND ADOPTING A BUDGET FOR THE CITY OF DIAMOND BAR FOR THE FISCAL YEAR COMMENCING JULY 1, 2004 AND ENDING JUNE 30, 2005 INCLUDING MAINTENANCE AND OPERATIONS, SPECIAL FUNDS AND CAPITAL IMPROVEMENTS AND APPROPRIATING FUNDS FOR ACCOUNTS, DEPARTMENTS, DIVISIONS, OBJECTS AND PURPOSES THEREIN SET FORTH. (i) The City Manager has heretofore prepared and presented to this City Council a proposed budget for the City's fiscal year 2004-2005, including staffing and position allocations, maintenance and operations, special funds and capital improvements, including appropriations therefor (referred to the "Budget" sometimes hereinafter). (ii) The Planning Commission of the City of Diamond Bar has heretofore publicly reviewed the proposed capital improvements specified in the Budget and has rendered to the City Council its report thereon concerning conformity of the capital improvement program with the City's contemplated general plan, all as required byCalifomia Government Code Section 65401. Copies of the Budget are on file in the office of the City Clerk labeled "City of Diamond Bar 2004-2005 Budget" and said Budget hereby is made a part of this Resolution. (iii) The City Council has conducted public meetings on the entirety of the fiscal year 2003-04 Budget and concluded said meetings prior to the adoption of this Resolution. (iv) All legal prerequ isites to the adoption of this Resolution have occurred. NOW THEREFORE, the City Council of the City of Diamond Bar does hereby find, determine and resolve as follows: 1. In all respects, as set forth in the Recitals, Part A, of this Resolution. 4 2. The City Council hereby finds and determines that the capital improvement program set forth in the Budget, and each project identified therein, is categorically exempt from the requirements of the California Environmental Quality Act of 1970, as amended, and the guidelines promulgated thereunder pursuant to Section 15301 of Division 6 of Title 14 of the California Code of Regulations. 3. The Budget, including the changes enumera ted and directed to be made bythe City Council during the course of the publ is meeting conducted by the City Council, hereby is adopted as the Budget of the City of Diamond Bar for the fiscal year commencing July 1, 2004 and ending June 30, 2005 and consisting of the estimated and anticipated expenditures and revenues for that fiscal yea r. 4. There are hereby appropriated for obligations and expenditures by the City Manager the amounts shown for the various departments, divisions and objects set forth in the Budget. All obligations and expenditures shall be incurred and made in the manner provided by the provisions of State law and City ordinances and resolutions applicable to purchasing and contracting. 5. Subject to further provision of th is Resolution, the appropriations made above constitute the maximum amount authorized for obligation and expenditure by the City Manager for respective departments, divisions and objects asset forth in the Budget. Each department head shall be responsible, as well as the City Manager, for seeing that said maximum amounts are not exceeded. 6. No warrant shall be issued nor shall any indebtedness be incurred which exceeds the unexpended balance of the fund and department appropriations herein above authorized unless such appropriations shall have been amended by a supplemental appropriation duly enacted by the 5 City Council, or by individual appropriations within any aforesaid fund or department therein, except insofar as the City Manager may authorized transfers pursuant to this Resolution. 7. Within the various funds and departments contained in the Budget, the City Manager is authorized to employ, during the fiscal year covered by said Budget, the number and classification of such full time employees as are shown in the Budget all subject to the provisions of the City's classification and compensation plans as amended and adopted by the City Council. Part time and seasonal employees are authorized as necessary by the City Manager provided that the total to be obligated and expended within any fund and department set forth in the Budget, with respect to salaries and wages therefor, shall not exceed the budgeted and appropriated amount, as the same may be amended by the City Counc il, from time to time. 8. The City Manager hereby is authorized to transfer funds appropriated hereby or by supplemental appropriation as follows: With respect to those classifications designated by code 0000 series,1000 series, 2000 series, 4000 series, 5000 series and code 6000 series, the City Manager may transfer amounts between and within those classifications, but only within a fund. 9. The City Clerk shall certify to the adoption of this Resolution. PASSED, ADOPTED AND APPROVED this _____ day of ........... 2004. Carol Herrera, Mayor 6 I, Linda C. Lowry, City Clerk 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: ABSTAINED: COUNCIL MEMBERS: ATTEST: Linda C. Lowry, City Clerk of the City of Diamond Bar 7 Agenda # _8.1 & Meeting Date: June 15, 2004 CITY COUNCIL TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager AGENDA REPORT TITLE: Approve the 2004-2005 Fiscal Year Appropriation s Limit using the percentage change in total assessed valuation for the City's non residential new construction as the annual adjustment growth factor. RECOMMENDATION: Approve the use of the percentage change in total assessed valuation from the City's non residential new construction for use in calculating the Fiscal Year 2004-2005 Appropriations Limit. Approve Resolution 2004 -XXX, which establishes the Fiscal Year 2004-2005 Appropriations Limit at $24,879,224. FINANCIAL IMPACT: Since the City's appropriations subject to the Gann Limit fall well below $24,879,224 there is no financial impact. BACKGROUND: Per City Policy, the Finance Department presents the Appropriations Limitfor the City Council's review and approval. Pursuant to ArticleXIIIB ofthe California Constitution (known as the Gann Limit), the City must compute an annual appropriations limit. This appropriations limitwill place a ceiling on the City's total amount of tax revenues and the total amount of appropriation s. The appropriations limit can be calculated by the use of one of the following factors: • Based on the growth factor of County population change over the prior year and the change in the California per capita income over the prior year. • Based on the growth factor of City population change over the prior year and the change in the California per capita income over the prior year. Page 2 - Appropriations Limit FY 2004-2005 Report Based on the growth factor of change in the City's non residential new construction valuation. DISCUSSION: The recommended factor to compute the appropria tions limit is the growth factor of change in the City's non residential new construction valuation. By using this factor the City will have an appropria tion limit of $24,879,224. W V0 WFWAI V0 92 CEO Susan Full, Accountant II V:kVjIWWW402 --YA Attachments: Department Head Deputy City Manager Appropriations Limit Worksheets Resolution V4:1011tel OQ L■► 1911111l A10 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 2004-2005 FOR THE CITY OF DIAMOND BAR IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE WHEREAS, Article XIII B of the Constitu tion of the State of California (enacted with the passage of Proposition 4 in 1979 and modified with the passage of Proposition 111 in 1990), provides that the total annual appropriations limit of such entity for the prior year be adjusted for changes in the non-residential assessed valuation or the percentage change in the California Per Capita Income and population except as otherwise specifically provided for in said Article; and WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolu tion, establish its appropriations limit for the following fiscal year pursuant to Article XIII B at a regularly scheduled meeting or a noticed special meeting. Prior to such meeti ng, documentation used in the determination of the appropriation limitshall be available to the public; and WHEREAS, Proposition 111 as approved by the voters of the State of California, revised the method for calculating the Gann Spending Limit, it also requires a recorded voice vote of the City Council regarding which of the annual adjustment factors have been selected each year; a n d WHEREAS, Section 7902 (a) and 7902.6 of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction for the fiscal year; and WHEREAS, the City Council of the City of Diamond Bar wishes to establish the appropriation limitfor fiscal year 2004-2005 for the City of Diamond Bar. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar, California, asfollows: Section 1. That it is hereby found and determined that the documentation used in the determination ofthe appropriations limitfor the City of Diamond Bar for fiscal year 2004- 2005 was available to the public in City offices of said City at least fifteen days prior to this date. Section 2. That the County of Los Angeles LAFCO, established the appropriations limitforthe newly incorporated City. Section 3. That the factor selected is the percentage change in total assessed valuation for the City, due to non-residential construction. Section 4. That the Appropriations Limit forthe City of Diamond Bar as established in accordance with Section 7902(a) and Section 7902.6 of the California Government Code is $24,879,224. Section 5. That the Mayor of the City of Diamond Bar shall sign and the City Clerk shall certify to the passage and adoption of this Resolution No. 2004-XXXX . PASSED, APPROVED AND ADOPTED this______ day of__________, 2004. Robert P. Zirbes, Mayor I, Linda C. Lowry, City Clerk of the City of Dia mond Bar do hereby certify that the foregoing Resolution was passed, and approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the _____ day of__________, 2004, bythe following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: ATTEST: Linda C. Lowry, City Clerk City of Diamond Bar CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 1998-1999 California Per Capita Income 4.15% % Change over Prior Year Population Change 1.28% % Change over Prior Year (City) Per Capita converted to a Ratio 1.0415 Population converted to a Ratio 1.0128 Calculation of Growth Factor 1.0548 1997-1998 Appropriations Limit $15,608,665 1998-1999 Appropriations Limit $16,464,507 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 1998-1999 California Per Capita Income 4.15% • Change over Prior Year Population Change 1.39% • Change over Prior Year (County) Per Capita converted to a Ratio 1.0415 Population converted to a Ratio 1.0139 Calculation of Growth Factor 1.0560 1997-1998 Appropriations Limit $15,608,665 1998-1999 Appropriations Limit $16,482,389 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 1999-2000 California Per Capita Income 4.53% % Change over Prior Year Population Change 1.93% % Change over Prior Year (City) Per Capita converted to a Ratio 1.0453 Population converted to a Ratio 1.0193 Calculation of Growth Factor 1.0655 1998-1999 Appropriations Limit $16,482,389 1999-2000 Appropriations Limit $17,561,562 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 1999-2000 California Per Capita Income 4.53% % Change over Prior Year Population Change 1.78% % Change over Prior Year (County) Per Capita converted to a Ratio 1.0453 Population converted to a Ratio 1.0178 Calculation of Growth Factor 1.0639 1998-1999 Appropriations Limit $16,482,389 1999-2000 Appropriations Limit $17,535,718 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 1999-2000 % Change Non Residential 2.99% new construction Nonresidential converted to a 1.0299 Ratio 1998-1999 Appropriations Limit $16,482,389 1999-2000 Appropriations Limit $16,975,212 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2000-2001 California Per Capita Income 4.91% % Change over Prior Year Population Change 1.89% % Change over Prior Year (City) Per Capita converted to a Ratio 1.0491 Population converted to a Ratio 1.0189 Calculation of Growth Factor 1.0689 1999-2000 Appropriations Limit $17,561,562 2000-2001 Appropriations Limit $18,772,045 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2000-2001 California Per Capita Income 4.91% % Change over Prior Year Population Change 1.75% % Change over Prior Year (County) Per Capita converted to a Ratio 1.0491 Population converted to a Ratio 1.0175 Calculation of Growth Factor 1.0675 1999-2000 Appropriations Limit $17,561,562 2000-2001 Appropriations Limit $18,746,252 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2000-2001 % Change Non Residential new construction 1.01% Nonresidential converted to a 1.0101 Ratio 1999-2000 Appropriations Limit $17,561,562 2000-2001 Appropriations Limit $17,738,934 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2001-2002 California Per Capita 7.82% Income %Change over Prior Year Population Change 1.49% %Change over Prior Year (City) Per Capita converted to a 1.0782 Ra ti o Population converted to a 1.0149 Ra ti o Calculation of Growth 1.0943 Fa cto r 2000-2001 Appropriations $18,772,045 Limit 2001-2002 Appropriations $20,541,595 Limit CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2001-2002 California Per Capita 7.82% Income %Change over Prior Year Population Change 1.66% %Change over Prior Year (Co u n ty) Per Capita converted to a 1.0782 Ra ti o Population converted to a 1.0166 Ra ti o Calculation of Growth 1.0961 Fa cto r 2000-2001 Appropriations $18,772,045 Limit 2001-2002 Appropriations $20,576,003 Limit CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2001-2002 % Change Non 5.84% Residential new construction Nonresidential converted 1.0584 to a Ra ti o 2000-2001 Appropriations $18,772,045 Limit 2001-2002 Appropriations $19,868,332 Limit CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2002-2003 California Per Capita 7.82% Income %Change over Prior Year Population Change 1.49% %Change over Prior Year (City) Per Capita converted to a 1.0782 Ra ti o Population converted to a 1.0149 Ra ti o Calculation of Growth 1.0943 Fa cto r 2000-2001 Appropriations $18,772,045 Limit 2001-2002 Appropriations $20,541,595 Limit CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2002-2003 California Per Capita 7.82% Income %Change over Prior Year Population Change 1.66% %Change over Prior Year (County) Per Capita converted to a 1.0782 Ra ti o Population converted to a 1.0166 Ra ti o Calculation of Growth 1.0961 Fa cto r 2000-2001 Appropriations $18,772,045 Limit 2001-2002 Appropriations $20,576,003 Limit CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2002-2003 % Change Non 5.84% Residential new construction Nonresidential converted 1.0584 to a Ra ti o 2000-2001 Appropriations $18,772,045 Limit 2001-2002 Appropriations $19,868,332 Limit CITY OF DIAMOND BAR ANNUAL APPROPRIATIONS LIMIT EXHIBIT "A" 2002-2003 1989-90 Base Year 9,882,416 1990-91 Adjusted Base 10,785,669 1991-92 Adjusted Base 11,585,192 1992-93 Adjusted Base 11,762,247 1993-94 Adjusted Base 12,275,495 1994-95 Adjusted Base 13,169,824 1995-96 Adjusted Base 14,005,207 1996-97 Adjusted Base 14,729,615 1997-98 Adjusted Base 15,608,665 1998-99 Adjusted Base 16,482,389 1999-00 Adjusted Base 17,561,562 2000-01 Adjusted Base 18,772,045 2001-02 Adjusted Base 20,576,003 2002-03 Adjusted Base CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2002-2003 California Per Capita Income %Change over Prior Year Population Change %Change over Prior Year (City) Per Capita converted to a Ratio Population converted to a Ratio Calculation of Growth Factor 2001-2002 Appropriations Limit 2002-2003 Appropriations Limit -1.27% 1.90% 0.9873 1.019 1.0061 $20,576,003 $20,700,667 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2002-2003 California Per Capita Income -1.27% %Change over Prior Year Population Change 1.77% %Change over Prior Year (County) Per Capita converted to a Ratio 0.9873 Population converted to a Ratio 1.0177 Calculation of Growth Factor 1.0048 2001-2002 Appropriations Limit $20,576,003 2002-2003 Appropriations Limit $20,674,258 CITY OF DIAMOND BAR ANNUAL APPROPRIATIONS LIMIT 2002-2003 Fiscal Year Appropriations Percentage Limit Change 1989-90 Base Year 9,882,416 Base Yr. 1990-91 Adjusted Base 10,785,669 9.14% 1991-92 Adjusted Base 11,585,192 7.41% 1992-93 Adjusted Base 11,762,247 1.53% 1993-94 Adjusted Base 12,275,495 4.36% 1994-95 Adjusted Base 13,169,824 7.29% 1995-96 Adjusted Base 14,005,207 6.34% 1996-97 Adjusted Base 14,729,615 5.17% 1997-98 Adjusted Base 15,608,665 5.97% 1998-99 Adjusted Base 16,482,389 5.60% 1999-00 Adjusted Base 17,561,562 6.55% 2000-01 Adjusted Base 18,772,045 6.89% 2001-02 Adjusted Base 20,576,003 9.61% 2002-03 Adjusted Base 22,364,058 8.69% CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2002-2003 %Change Non Residential new construction Nonresidential converted to a Ratio 2001-2002 Appropriations Limit 2002-2003 Appropriations Limit CITY OF DIAMOND 8.69% 1.0869 $20,576,003 $22,364,058 BAR APPROPRIATIONS LIMIT WORK SHEET 2003-2004 California Per Capita 2.31% Income %Change over Prior Year Population Change 1.59% %Change over Prior Year (City) Per Capita converted to a 1.0231 Ra ti o Population converted to a 1.0159 Ra ti o Calculation of Growth 1.0394 Fa cto r 2002-2003 Appropriations $22,364,058 Limit 2003-2004 Appropriations $23,244,470 Limit CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2003-2004 California Per Capita 2.31% Income %Change over Prior Year Population Change 1.66% %Change over Prior Year (County) Per Capita converted to a 1.0231 Ra ti o Population converted to a 1.0166 Ra ti o Calculation of Growth 1.0401 Fa cto r 2002-2003 Appropriations $22,364,058 Limit 2003-2004 Appropriations $23,260,487 Limit CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2003-2004 % Change Non 10.55% Residential new construction Nonresidential converted 1.1055 to a Ra ti o 2002-2003 Appropriations $22,364,058 Limit 2003-2004 Appropriations $24,723,466 Limit CITY OF DIAMOND BAR ANNUAL APPROPRIATIONS LIMIT EXHIBIT "A" 2003-2004 1989-90 Base Year 9,882,416 1990-91 Adjusted Base 10,785,669 1991-92 Adjusted Base 11,585,192 1992-93 Adjusted Base 11,762,247 1993-94 Adjusted Base 12,275,495 1994-95 Adjusted Base 13,169,824 1995-96 Adjusted Base 14,005,207 1996-97 Adjusted Base 14,729,615 1997-98 Adjusted Base 15,608,665 1998-99 Adjusted Base 16,482,389 1999-00 Adjusted Base 17,561,562 2000-01 Adjusted Base 18,772,045 2001-02 Adjusted Base 20,576,003 2002-03 Adjusted Base 22,364,058 2003-04 Adjusted Base 24,723,466 CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2004-2005 California Per Capita 3.28% Income %Change over Prior Year Population Change 1.02% %Change over Prior Year (City) Per Capita converted to a 1.0328 Ra ti o Population converted to a 1.0102 Ra ti o Calculation of Growth 1.0433 Fa cto r 2003-2004 Appropriations $23,244,470 Limit 2004-2005 Appropriations $24,251,759 Limit CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2004-2005 California Per Capita 3.28% Income %Change over Prior Year Population Change 1.38% %Change over Prior Year (County) Per Capita converted to a 1.0328 Ra ti o Population converted to a 1.0138 Ra ti o Calculation of Growth 1.0471 Fa cto r 2003-2004 Appropriations $23,244,470 Limit 2004-2005 Appropriations $24,338,184 Limit CITY OF DIAMOND BAR APPROPRIATIONS LIMIT WORK SHEET 2004-2005 % Change Non 0.63% Residential new construction Nonresidential converted 1.0063 to a Ra ti o 2003-2004 Appropriations $24,723,466 Limit 2004-2005 Appropriations $24,879,224 Limit CITY OF DIAMOND BAR ANNUAL APPROPRIATIONS LIMIT EXHIBIT "A" 2004-2005 1989-90 Base Year 9,882,416 1990-91 Adjusted Base 10,785,669 1991-92 Adjusted Base 11,585,192 1992-93 Adjusted Base 11,762,247 1993-94 Adjusted Base 12,275,495 1994-95 Adjusted Base 13,169,824 1995-96 Adjusted Base 14,005,207 1996-97 Adjusted Base 14,729,615 1997-98 Adjusted Base 15,608,665 1998-99 Adjusted Base 16,482,389 1999-00 Adjusted Base 17,561,562 2000-01 Adjusted Base 18,772,045 2001-02 Adjusted Base 20,576,003 2002-03 Adjusted Base 22,364,058 2003-04 Adjusted Base 24,723,466 2004-05 Adjusted Base 24,879,224 CITY COUNCIL TO: Honorable Mayor and Members of the City Council Agenda # 8.1(e) Meeting Date:.1une 1-5 2004 AGENDA REPORT VIA: Linda C. Lowry, City Manager TITLE: Resolution No. 2004 -XX, Establishing Salary Ranges for All Classes of Employment Effective the Pay Period Commencing July 1, 2004; Rescinding Resolution No. 2003-43 in its Entirety. RECOMMENDATION: It is recommended that the City Counc it adopt Resolution No. 2004 -XX, establishing job classifications and salary schedules. FINANCIAL IMPACT: The proposed 2% cost of living adjustment (COLA) fo r City personnel is estimated to be $63,963 and has been incorporated into the FY 04-05 Municipal budget. As described in the budget decision package, the addition of Planning Manager position will be budgeted for a total cost, inclusive of salary and benefits, of $112,700. BACKGROUND/DISCU SSION: The proposed personnel changes that are reflected in the Salary Resolution include a COLA of2.0% for all full-time and part-time positions, a title change for one position from Communications and Marketing Coordinator to Public Information Coordinator, which has no financia I implications, and the additional position of Planning Manager in the Community and Development Services Department. No additional range classification is needed for these positions since they currently exist in the Salary Resolution. If the budget decision package creating a Planning Manager position is not approved, the City Council's motion should include direction to remove theposition from the Salary Resolution. Ia:74J_1:7401 ]'fl Kim Crews Senior Management Analyst REVIEWED BY: David Doyle Deputy City Manager Linda Magnuson Finance Director Attachment: Salary Resolution 2004 -XX establishing salary ranges and rates. Resolution No. 2004-xx A RESOLUTION OF THE CITY COUNCI L OF THE CITY OF DIAMOND BAR ESTABLISHING SALARY RANGES FOR ALL CLASSES OF EMPLOYMENT EFFECTIVE THE PAY PERIOD COMMENCING JULY 1, 2004; RESCINDING RESOLUTION NO. 2003-43 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 -manage ment (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 day of , 2004. Bob Zirbes, 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 ATTEST: Linda C. Lowry, City Clerk City of Diamond Bar Schedule A Effective 7/1/04 CITY OF DIAMOND BAR SALARY RANGES BY POSITION FY 2004-2005 FULL-TIME NON -EX EMP T POSITIONS (JOB CLASSIFICATIONS 1000-1599) RANGE ]OB Tm F A B C D E E S 1037 Office Assistant 12.39 13.01 13.66 14.34 15.06 15.81 1( 991.2575 1,040.8204 1,092.8614 1,147.5045 1,204.8797 1,265.1237 1,328.3 2,147.69 2,255.11 2,367.87 2,486.26 2,610.57 2,741.10 2,871 1141 Account Clerk II 13.62 14.31 15.02 15.77 16.56 17.39 11 Community Services Coordinator 1,089.9225 1,144.4186 1,201.6395 1,261.7215 1,324.8076 1,391.0480 1,460.6 Office Assistant II 2,361.50 2,479.57 2,603.55 2,733.73 2,870.42 3,013.94 3,16, 1203 Parks Maintenance Worker II 14.37 15.09 15.84 16.63 17.47 18.34 1(. 1,149.5405 1,207.0175 1,267.3684 1,330.7368 1,397.2737 1,467.1374 1,540.4 2,490.67 2,615.20 2,745.96 2,883.26 3,027.43 3,178.80 3,33; 1257 Administrative Assistant 15.02 15.77 16.55 17.38 18.25 19.16 2( Senior Account Clerk 1,201.2134 1,261.2741 1,324.3378 1,390.5547 1,460.0824 1,533.0865 1,609.7 2,602.63 2,732.76 2,869.40 3,012.87 3,163.51 3,321.69 3,48; 1365 Senior Administrative Assistant 15.83 16.62 17.45 18.32 19.24 20.20 2: 1,266.0654 1,329.3687 1,395.8371 1,465.6290 1538.9105 1,615.8560 1,696.6 2,743.14 2,880.30 3,024.31 3,175.53 3,334.31 3,501.02 3,67E 1437 Neighborhood Lrprovement Officer 17.17 18.03 18.93 19.87 20.87 21.91 2: Recreation Specialist 1,373.4968 1,442.1716 1,514.2802 1589.9942 1,669.4939 1,752.9686 1,840.6 2,975.91 3,124.71 3,280.94 3,444.99 3,617.24 3,798.10 3,981 1519 Management lnbrmation System 18.15 19.05 20.01 21.01 22.06 23.16 2, (10115) Technician 1,451.6316 1,524.2132 1,600.4238 1,680.4450 1,764.4673 1,852.6906 1,945.3 3,145.20 3,302.46 3,467.58 3,640.96 3,823.01 4,014.16 4,21, Schedule B Effective 7/1/04 CITY OF DIAMOND BAR SALARY RANGES BY POSITION FY 2004-2005 FULL-TIME EXEMPT POSITIONS (JOB CLASSIFICATIONS 1600-1999) RANGE JOB TITLE A B C D E F G 1635 Accountant II 19.52 20.50 21.52 22.60 23.73 24.92 26. Assistant City Clerk 1,561.8800 1,639.9740 1,721.9727 1,808.0714 1,898.4750 1,993.3987 2,093.06 Assistant Engineer 3,384.07 3,553.28 3,730.94 3,917.49 4,113.36 4,319.03 4,534 Assistant Planner Development Services Assistant Management Analyst Parks &Maintenance Supervisor Public Works Supervisor Recreation Supervisor 1752 Senior Management Analyst 20.99 22.04 23.14 24.30 25.51 26.79 28. Sr. Neighborhood hVrovement Officer 1,679.0212 1,762.9723 1,851.1209 1,943.6769 2,040.8608 2,142.9038 2,250.04 3,637.88 3,819.77 4,010.76 4,211.30 4,421.86 4,642.96 4,875 Public Nbrnnation Coordinator 1897 22.66 23.79 24.98 26.23 27.54 28.92 30. Recreation Supervisor II 1,812.7125 1,903.3481 1,998.5155 2,098.4413 2,203.3633 2,313.5315 2,429.20 Senior Accountant 3,927.54 4,123.92 4,330.12 4546.62 4,773.95 5,012.65 5,263 Superintendent ofParksMlainten ance 1987 Associate Planner 23.73 24.92 26.17 27.47 28.85 30.29 31. Associate Engineer 1,898.6747 1,993.6084 2,093.2889 2,197.9533 2,307.8510 2,423.2435 2,544.40 Executive Assistant 4,113.80 4,319.48 4,535.46 4,762.23 5,000.34 5,250.36 5,512 1990 Senior Engineer 25.51 26.79 28.13 29.53 31.01 32.56 34. Senior Planner 2,041.0752 2,143.1289 2,250.2854 2,362.7996 2,480.9396 2,604.9866 2,735.23 4,422.33 4,643.45 4,875.62 5,119.40 5,375.37 5,644.14 5,926 1995 Public Hfomiation Manager 27.54 28.92 30.36 31.88 33.48 35.15 36. 2,203.3528 2,313.5204 2,429.1964 2,550.6563 2,678.1891 2,812.0985 2,952.70 4,773.93 5,012.63 5,263.26 5,526.42 5,802.74 6,092.88 6,397 CITY OF DIAMOND BAR SALARY RANGES BY POSITION FY 2004-2005 EXECUTIVE MANAGEMENT (EXEMPT) POSITIONS (JOB CLASSIFICATIONS 2000-3999) RANGE 106 TITLE 2319 Assistant to the City Manager City Clerk 2571 Deputy Public Works Director Planning Manager 2985 City EngineerrPublic Works Director Corrin Development Director Comrrunity Services Director Finance Director 3172 Deputy City Manager Schedule C Effective 7/1/04 A B C D E F G 27.69 29.08 30.53 32.06 33.66 35.34 37. 2,215.4376 2,326.2095 2,442.5200 2,564.6460 2,692.8783 2,827.5222 2,968.84 4,800.11 5,040.12 5,292.13 5556.73 5,834.57 6,126.30 6,432 30.71 32.24 33.85 35.55 37.32 39.19 41. 2,456.5105 2,579.3360 2,708.3028 2,843.7179 2,985.9038 3,135.1990 3,291.9E 5,322.44 5,588.56 5,867.99 6,161.39 6,469.46 6,792.93 7,132 35.65 37.44 39.31 41.27 43.34 45.50 47. 2,852.3043 2,994.9195 3,144.6655 3,301.8988 3,466.9937 3,640.3434 3,822.3 E 6,179.99 6,488.99 6,813.44 7,154.11 7,511.82 7,887.41 8,281 37.89 39.78 41.77 43.86 46.05 48.36 50. 3,031.0310 3,182.5826 3,341.7117 3,508.7973 3,684.2372 3,868.4490 4,061.8i 6,567.23 6,895.60 7,240.38 7,602.39 7,982.51 8,381.64 8,800 CITY OF DIAMOND BAR SALARY RANGES BY POSITION FY 2004-2005 Schedule D Effective 7/1/04 PART-TIME HOURLY: NON -BENEFITED POSITIONS (Job Classifications 500 - 899) RANGE 70B TITLE A B C D E F G 515 Conrrunity Services Worker 7.27 7.64 8.03 8.60 8.84 9.29 9. 537 Community Services Leader I 753 Conrrunity Services Leader II Intern Parks Maintenance Flelper 770 Parks Maintenance Ftlper II 775 Comrmnity Services Coordinator 800 Engineering Aide 7.95 8.34 9.00 9.61 10.25 10.57 11. 8.99 9.61 10.25 10.88 11.54 12.19 12. 12.39 13.02 13.66 14.34 15.07 15.81 16 13.63 14.30 15.02 15.78 16.55 17.39 18 15.01 15.76 16.54 17.38 18.25 19.16 20. Schedule E Effective 7/1/04 PART-TIME HOURLY: BENEFITED POSITIONS (Job Classifications 900 - 999) RANGE ]OB TITLE A El C D E E Sz 937 Community Services Leader I 7.95 8.34 9.00 9.61 10.25 10.88 11. 953 Community Services Leader II 8.99 9.61 10.25 10.88 11.54 12.19 12. 987 Neighborhood Improvement Officer 17.17 18.02 18.93 19.88 20.87 21.91 23. Agenda # 8.2 Meeting Date: June 15, 2004 CITY COUNCIL AGENDA REPORT �JF�i1f1n1^t R*���� TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager TITLE: Consideration of an advisory committee forthe City of Industry Business Center Project RECOMMENDATION: It is recommended that the City Counc it direct staff as appropriate. FISCAL IMPACT: Unknown atthis time. BACKGROUND: The City of Industry proposes construction of a 594 -acre commercial retail, office and industrial development to be located upon property owned by Industry and located genera Ilynorth and south of Grand Avenue. The hillside site is situated adjacent to residential properties and Diamond Bar Honda. The City of Industry has distributed a Draft Environmental Impact Report for public review. The public review period will close July 16, 2004. Diamond Bar City staff is presently reviewing the documents and will prepare a comment letterto bedelivered to Industry. It has been suggested that an advisory committee be created from which the Council would receive advice on aspects of the project. A similar advisory committee, comprised of ten -members with a member of the City Council serving as Chairperson, was created in July 2000 for the City of Industry development known today as the Grand Crossing /Majestic Project. It is recommended that the City Council consider this matter and direct the City staff as deemed appropriate. Prepared by: James DeStefano Deputy City Manager