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HomeMy WebLinkAbout6/20/2006 Minutes - Regular MeetingFOUR CORNERS TRANSPORTATION COALITION REGULAR MEETING MINUTES JUNE 20, 2006 1. CALL TO ORDER: David Doyle, Assistant City Manager, Diamond Bar called the meeting to order at 12:00 noon in Room CC -3 of the SCAQMDIGovernment Center Building, 21825 Copley Drive, Diamond Bar, CA 91765 2. ROLL CALL: Tim D'Zmura, Pomona; Charles LaClaire, Pomona; George Hunter, Pomona; Linda Lowry, Diamond Bar; John Beauman, Brea; David Doyle, Diamond Bar; Doug LaBelle, Chino Hills, Gwenn Norton -Perry, Chino Hills, Jim DeStefano Chino Hills, Carol Herrera, Diamond Bar; Charles View, Brea; Frank Hall, Norco; Jeff Allred, Norco. 3. DISCUSSION ITEMS: 3.1 CONSIDER ACCEPTANCE OF MEMBERSHIP APPLICATIONS AND SELECTION OF: CHAIR FOR PURPOSES OF ACCEPTING MEMBERSHIP APPLICATIONS. There was general discussion regarding membership applications. Members reported they had received word from other cities that they were interested in joining the coalition. David Doyle stated that when this group and the transportation summit were first discussed there was direction to officially form the group and invite other municipalities to join. At this point members have applications and resolutions that their City Councils have passed and in accordance with direction to staff members the next step is for the FCTC to accept those applications and invite other municipalities to join with the group. This process requires the selection of an interim Chair position for purposes of accepting applications. Charles View said he contacted OCTA to determine their perception of the group and whether or not OCTA would be put off by the group's direction. His contact felt that OCTA was not put off but were waiting to see what kind of role they would want to have in the organization. He said he also heard from Anaheim today and they were interested in joining but due to logistics the matter would not be on the Council agenda until July. Their staff is recommending approval. Carol Herrera said she spoke with City of Industry and Walnut Council Members and both cities are interested in joining. She recalled that the original conversation included forming a nucleus and having a booth at the summit to advertise which cities had joined. She believed that by having a firm nucleus the Coalition would be able to demonstrate at the summit that the FCTC was a viable and serious group that was promoting membership. She further recalled that the method considered for JUNE 20, 2006 PAGE 2 FCTC promoting FCTC was to list the proposed projects and goals and ask other cities to "jump on this train and come with us and help us to be a success." John Beauman agreed with Carol Herrera. His understanding was that this group would form the initial committee and he had no problem with interim appointments for 60 to 90 days because it is difficult to ask people to join an organization when the person asking has not himself joined the organization. Carol Herrera agreed and stated that part of the agreement of the four cities was that they would commit by joining so that the group could move forward. Gwenn Norton -Perry said the way that this organization came about was somewhat different in that the OTCA was a critical component. She said she was not trying to advocate for transportation commissions. Her point was that she did not want to dismiss their efforts or their contributions that some individuals who were not been on board would not have experience. An OTCA policy director told her he wondered why they would want to assist FCTC when the group's sole purpose was to lobby OCTA. She felt it was a legitimate point and could not be overlooked. She said that her TCA was oversubscribed and had no money. Charles View said that OTCA did not feel alienated but that they were concerned about what their role would be in the Coalition. Gwen Norton - Perry said that she may lobby OTCA because her transportation Commission does not have any money — it is oversubscribed and the arterial street may not get an MOU approved within the next two weeks. Construction costs are up from 23 to 39 percent and this problem will happen over and over with the transportation commission. Do we bring them on or do we not? It is the other members' call. She merely wanted to point out that it had been an issue since the beginning. Carol Herrera felt that SCAG might also be concerned about the creation of the FCTC as well as perhaps the MTA because this Coalition will be competing for dollars. Gwen Norton -Perry said that quite frankly, SCAG should be concerned. John Beauman said that one of the things he intended to do was to explain Four Corners objectives to SCAG, that Four Corners is not competing with developers and that it wants to work in conjunction with them. His understanding was that the only reason the group was formed was to support the four corners. Carol Herrera said that the point of forming this Coalition was that no one was taking care of the needs in this area and no one was addressing the transportation problems that continue to accumulate. Cities wait and wait and wait. Four Corners went on forever and ever. People talked about a huge list and if anyone were going to take care of it cities they would have to look to themselves to find funding and whatever else needed to be done. George Hunter said he felt that this philosophy had not changed JUNE 20, 2006 PAGE 3 FCTC and if Four Corners doesn't do it, it won't get done. Carol Herrera said that it was just the: reality that when there was one pot of money, groups would come along wanting pieces of it and it would diminishes what everyone else got. Charles View pointed out that this Coalition would be asking the transportation commissions to address the projects the Coalition felt were necessary and were already on their project list, albeit the projects may be a higher priority for the FCTC that the particular Transportation Commission. Tim Dzmura agreed. He said he had been with the City of Pomona for only six months. When he was brought into this he was given some history about what the organization was supposed to do and it was his understanding that it was a small group of directly affected cities and other entities that needed to, because of past experience, focus on local specific projects and specific priorities to achieve immediate solutions. There is not enough money to solve all of the problems and the idea was to keep the group small and very focused on a specific list of priorities. As a staff member he needs to understand what the group is trying to achieve so that he can adequately assist the FCTC to that end. Doug LaBelle said that the intent was never to be just the four or five cities but to have a very broad based public/private partnership to get all fourteen or fifteen cities within the four corners region to become active members, invest their $10,000 and to make their commitment and then move forward to address the private sector side to get the Majestics of the world, residential developers and such to come on board since they have a vested interest in the ultimate outcome. The primary four projects that were originally identified by the Four Corners group a few years ago are projects that all stakeholders support. Four Corners is not really competing with these entities because all entities should be advocates for these projects. From a transportation standpoint trucks cannot move across the country unless they go through the four corners region. If trucks move from Long Beach to the high desert they travel through the region. People commuting into Orange County go through the region. Frank Hall felt that in essence it would be better if more cities were involved in the Coalition because there would be a bigger pie and regional efforts would receive more attention and consideration. Gwenn Norton -Perry said that as more cities are built out the focus will shift to arterial issues that do not get recognition from counties. That's why the Coalition needs to have those municipalities on its side rather than be upset about the focus of the Coalition. The counties are the baseline of all transportation commissions. George Hunter wondered if with 14 or 15 cities involved the term "Four Corners" (four counties) would understate or overstate the issue to funding sources that the coalition would be looking to lobby or influence. JUNE 20, 2006 PAGE 4 FCTC John Beauman responded that everything comes out of Long Beach and a — good portion comes through the Four Corners region. SCAG meetings for example, are heavily weighted on the west side. If you speak only to the four counties it tracks with the SCAG model where it is heavily weighted in the population center. This coalition helps make the efforts of all of the other organizations successful and without the participation of all of the cities it will not be successful. CM/Lowry said that what Gwenn-Norton Perry was describing was the Coalition's approach to marketing in that the Coalition markets itself to the transportation agencies in a way that the Coalition is supporting the existing work plans. The concern is that because Four Corners is oversubscribed, which of the projects would fall to the bottom of the list. And, by having the Coalition active and effective, projects will stay where they belong and they will have a priority. If the Coalition is not present to market the practicality of the four projects in the way that they actually tie into traffic movement the region may be forgotten and that is the very reason why the Coalition needs to get itself together now and begin marketing these projects. Discussion continued. The group generally agreed the focus should be on forming the organization as opposed to being concerned about specific projects and relationships at this point. CM/Lowry felt it was important to keep Gwenn Norton -Perry's comments in mind going forward as to how it might be possible to unintentionally alienate certain bodies and it behooves the Coalition to decide on a specific approach so that those groups understand the goals and objectives of the Coalition. John Beauman moved, George Hunter seconded to form the Coalition. Without objection, the motion was so ordered. John Beauman moved, George Hunter seconded to appoint an interim Chair until October 1St or until the first Coalition meeting thereafter. Without objection, the motion was so ordered. Gwenn Norton -Perry nominated Carol Herrera to serve as Chair. There were no other nominations offered. Without objection, Carol Herrera was unanimously selected to serve as Interim Chair of the Four Corners Transportation Coalition. 3.2 REVIEW MEMBERSHIP TYPES AND CRITERIA. David Doyle stated that currently there were three types of members — the public sector members (cities and counties); private sector members (any private sector businesses that are affected by transportation issues or any business that wishes to contribute) and, associate members (transportation quasi -governmental agencies) that would be non-voting members and non-paying members. Discussion ensued regarding associate membership. David Doyle pointed out that the original JUNE 20, 2006 PAGE 5 FCTC conversation regarding associate members was the concern that these agencies would be: bigger than individual cities and could potentially take over the Coalition, thus the conversation about them being non-paying and in particular non-voting members. Gwenn Norton -Perry suggested gold, silver and bronze or 20, 10 and 5 tiers with no limit of membership from the private sector. Someone in the private sector be non-profit or members of the transportation Coalition, for example. David Doyle could not recall a discussion about limiting the membership other than the distinction of cities and counties that came out of a discussion among the City Managers. John Beauman felt it was important to have the associate members included and as Carol Herrera said have them on the mailing list. Associate members could serve as an advisory body rather than a voting body. Associate members could suggest, recommend or submit projects but would not have a vote. Gwenn Norton -Perry felt the associate members should be voting members. Chair/Herrera stated that the current bylaws refer to associate members as non-paying and non-voting members. Charles View felt that non-paying members would be less likely to take the Coalition seriously. Members concurred to reconsider the associate member issue at a later date and place the matter on a future agenda. John Beauman said that the voting issue was not important to him because his experience was that with every group almost every issue passed unanimously. It was more important to him that his input was considered. David Doyle said that there would be a separate membership agreement that would spell out the definition of an association member. He said he was also working on membership agreements for the private sector. Doug LaBelle said he would be very surprised if the Coalition were able to attract more than seven or eight of the fifteen cities at $10,000 per year and with a three-year commitment. The four cities that are present are here because they are the mostly affected cities. When he, Linda Lowry and Tim O'Donnell met with the city managers and their representatives there were questions from outlying communities about how it pertained to them. He felt it might be easier to get participation from the transportation agency side because they would see the benefit. Perhaps at some future date (90-120 days) when the Coalition consisted of seven cities and two transportation agencies for example, and the transportation agencies agreed to participate for $10,000 a year as long as they were voting members, the board could decide. In his opinion, the more public participation and commitment the stronger the group would become. The members concurred to possibly consider a bylaw change regarding associate membership at a later date. JUNE 20, 2006 PAGE 6 FCTC 3.3 REVIEW OF FOUR CORNERS TRANSPORTATION COALITION MARKETING AND INFORMATION BROCHURE. David Doyle presented the draft Marketing and Information brochure for the member's perusal and asked for comments and suggestions no later than July 7 in order to prepare the brochure for production for the July 28 summit. Discussion ensued about a possible mission statement. Chair/Herrera suggested the following: "Secure funding for and facilitate the implementation of regional transportation projects" and that a separate list of Goals and Objectives be included. Gwenn Norton Perry said the brochure should define the four corner counties and her colleagues agreed. 3.4 TRANSPORTATION SUMMIT UPDATE. Jim DeStefano reported that the date was changed to accommodate the keynote speaker. The new date is Friday, July 28 from 9:30 a.m. to 2:00 p.m. Anthony Gonzales and Assemblyman Huff committed to speak and perhaps Congressman Miller who was not available for the 215t but may be available on the 28th. Other speakers are Randall Lewis, and Dr. John Husing. Chair/Herrera asked if a booth would be available for display of the Coalition and recruitment information. 3.5 DISCUSSION OF REGULAR MEETING TIME. The board agreed to meet on July 10, 2006 immediately following the regular Four Corners meeting. Frank Hall wondered at what point Four Corners would be dissolved and whether the same name "Four Corners" would be confusing. Chair/Herrera said that it was a completely separate group and Four Corners was technically created under the auspices of SCAG whereas this Coalition was not. This Coalition is an independent group and if the greater Four Corners disappeared, this group would no longer have status under SCAG. - - There was general discussion about who would act as treasurer, how expenses would be handled, who would be authorized to sign checks and what legal representation would be required. The Coalition concurred to place the aforementioned matters on the next regular meeting agenda. JUNE 20, 2006 PAGE 7 FCTC 1 6. COALITION MEMBER COMMENTS: None Offered. 7. ADJOURNMENT: There being no further business to conduct, Chairperson Herrera adjourned the meeting at 1:40 p.m. to July 10, 2006 immediately following the regular Four Corners meeting. . &4� 444Z4,11". CAROL_ HERRERA, Chairman 1 1 MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR JUNE 20, 2006 CALL TO ORDER: Mayor Herrera called the Regular City Council meeting to order at 6:32, p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. PLEDGE OF ALLEGIANCE: M/Herrera led the Pledge of Allegiance. INVOCATION: None Offered. ROLL CALL: Council Members Chang, Tanaka, Tye and Mayor Herrera. Mayor Pro Tem Zirbes was excused. Staff Present: CM/Lowry, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; David Liu, Public Works Director; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Nancy Fong, Community Development Director; Kim Crews, Human Resources Manager; Ken Desforges, IS Director; Ryan McLean, Senior Management Analyst and Tommye Cribbins, City Clerk. APPROVAL OF AGENDA: CMILowry announced that Agenda Items 1.1 and 1.2 would be continued to the July 18 meeting. In addition, staff corrected its report accompanying the CFD discussion under Agenda Item 8.3 wherein the amount of estimated construction was corrected to $15 million and the amount of the estimated bond proceeds to $11 million. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: BUSINESS OF THE MONTH: 1.1 Presentation of City Tile to Jimmy You, Owner of Color Marble as Business of the Month for June 2006 and slide presentation — continued to July 18, 2006. 1.2 Presentation by Jack French, Interim CEO, American Red Cross San Gabriel Valley Chapter regarding "What the Red Cross is doing forthe City" — continued to July 18, 2006, 1.3 Presentation by Rick Richmond, Executive Director, ACE. Mr. Richmond stated that Congressman Gary Miller was instrumental in moving this project forward with his assistance in providing Federal funding last year under the re -authorization of the Federal Bill. The project is estimated to cost approximately $50 million including construction, engineering, land acquisition, railroad improvements and other costs. The goal of the project is to lower Brea Canyon Rd. approximately 16 ft. under the railroad, which will remain on a two- JUNE 20, 2006 PAGE 2 CITY COUNCIL track road across Brea Canyon Rd. The north end of the Project extends close to Spanish Ln. , and as the Project moves southerly to Currier Rd. and Washington St. it will be lowered to meet the lowered Brea Canyon Rd. One of the significant challenges for the Project is the significant amount of utility relocation, which is currently underway. Mr. Richmond then introduced Garrish Roy, P.E., Senior Project Manager, and other team members. Mr. Roy gave a slide presentation overview of the Project. He stated that ACE conducted two outreach meetings during the design phase and included improvements based on input from participants. Construction notices were distributed to more than 1100 residents, businesses, key contacts and emergency respondents coordinated with Walnut Valley School District. Mr. Roy stated that access to businesses will remain intact during construction and a toll-free hotline will operate 2417 in three languages during the construction period. A Notice to Proceed with construction was given for July 5, 2006 through July 2008. During August 2006 the Metrolink access road from D.B. and the SR60 will be completed. Once the road is completed Brea Canyon Rd. will be closed to north and south traffic at the tracks. The Project plans to open two lanes on Brea Canyon Rd. late 2007 with all lanes opened to through travel by May 2008. Shortly thereafter, the project will be completed. Mr. Roy stated that during construction Washington St. will remain open. During construction of sound walls, sound blankets will be installed close to the townhouses to mitigate noise and dust. The temporary "shoofly" tracks will be in use for about a year and one-half and once the bridge is completed the shoofly will be brought onto the mainline tracks for permanent operation. M/Herrera thanked ACE and its team for choosing the Brea Canyon Rd. Rail -Crossing Project that will greatly benefit the area. The pain of the project will give way to an outstanding result that will reduce traffic, air pollution and noise (horn blowing). 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None Offered. 3, PUBLIC COMMENTS: Tony Torng, 20985 Jade Ct. said he supported a new library that would include a good view and coffee shop. He felt a new facility would be good for the residents as a research center and as a good investment for the City. Sue Mages, Chaparral Middle School Library, brought a "show and tell' depicting part of the curriculum for the 61h-7 1h and 8`h grade students. There JUNE 20, 2006 PAGE 3 CITY COUNCIL are three middle schools in D.B. with approximately 400 students at each grade level. When the children attempt to complete projects on one subject there is not enough resources in any of the schools to help the children meet their requirements. A new library would help the students and the entire community so much. Next Tuesday she will have lived in D.B. for 30 years and she had to take her children anywhere they could find the information for their projects because there was not always enough information at the D.B. Library. She said she was present tonight representing the other librarians in the District to ask the City for a new library. She met Ray Bradbury who told her he wrote his first novel in a library setting. She provided Council Members with a copy of his novel Fahrenheit 451. Peter Loh, a 20 year resident said that both of his children graduated from D.B.H.S Studies indicate that on average individuals can expect three to four career changes during their work years and in his opinion, it meant that education would certainly be a lifelong exercise. A library is a place for children to begin their lifelong learning experience, use computers and borrow books. Well-educated students will be economically competitive in the coming years. Education secures fundamental values for the country. $53 per year to have an updated library is a low-cost investment to have a facility that will serve generations to come. Steven Loh attended local schools and recently graduated from UC Riverside. He felt the Internet would never replace libraries; that libraries were essential to his education and that D.B. and its youth would benefit from a new library. Rick Rogers, residents and member of Friends of the Library said he favored a new library and believed when built it would be a valuable addition to the City's infrastructure. A new library would be an investment in the City's future and would 'be an asset that would yield many dividends including improved property values throughout the City. He thanked the Council for proceeding with further study of the proposed special assessment ballot measure being considered as a method for funding the new library. He said it was his understanding that a portion of the costs being evaluated were the operating costs. The City's residents currently pay about $1.2 million annually to the County out of property taxes to operate the existing Library. The existing Library is about 9,000 sq. ft. The proposed new Library is approximately 20,000 sq.ft. The single largest budget item for the current facility is salaries and benefits (46 percent of the annual expense). Will the number of staffers at the new library double over the current level? He urged the Council to be diligent in its review. He felt that the annual operating expenses for the new facility could be even less than the current facility and there would therefore be no need to include operating costs in the ballot measure. Allen Wilson said he and other residents wanted a new library but were opposed to the proposed financing. He asked how much the City was JUNE 20, 2006 PAGE 4 CITY COUNCIL paying for the Community Center bonds and believed those bonds should be paid off before the City incurred any more debt. In his opinion there is a silent majority that does not want this City to put itself further into debt because it would hurt the City's finances. Two weeks ago the people of California and the residents of D.B. soundly defeated Proposition 81 and as a result, it was very clear to him that the residents did not want a library bond and, what makes the City believe that the residents would approve a local assessment by a two-thirds vote. Robert Delgado asked what the City allowed to flow through its storm drains. Eileen Ansari, 1823 Cliffbranch Dr. stated that when D.B. residents were asked to approve an additional assessment for a library district the City asked for accountability and Los Angeles County was unable to provide an answer so D.B. and three other cities decided to research the matter. As a result D.B. found it was contributing over $900,000 and getting about $750,000 worth of service and with pressure from the D.B. City Council and Friends of the Library the County of Los Angeles agreed to help refurbish the current library. D.B. needs a larger and better -equipped library. It appears that there will be no help coming from the State and the only fair thing is to put this matter to a vote of the people. Lydia Plunk said that while there has been a lot of talk about people who do and do not favor a larger library there is a third group that questions the wisdom of putting the Library issue on the ballot at this time. The book industry is very labor-intensive and a Library twice the size of the current facility would most surely double its operating expenses. She felt it would be helpful to clarify the issues in order to be able to promote a legitimate plan. RESPONSE TO PUBLIC COMMENTS: CM/Lowry responded to Mr. Delgado that there are Federal Regulations for storm water runoff and accordingly, citations are related to those regulations. Staff will contact Mr. Delgado regarding his issues. CM/Lowry referred the Council and speakers to tonight's FY 2006107 Budget that includes a line item for principal payment amount for the D.B. Center Bond of $240,000 subject to an estimated highest possible interest payment of $470,000 for year 2006107. The Public Financing Authority makes the payments to the bank. FM/Magnuson reported that the outstanding principal is approximately $13,520,000. The original bond issue was $13,755,000 and there has been one principal payment made with another due July 1, 2006. CM/Lowry responded to speakers that the current Library facility is 9,000 sq. ft. and the proposed new library would be 24,000. The estimated increase in operating costs is $500,000 with an ongoing operating budget of $1.2 million 1 I 1 JUNE 20, 2006 PAGE 5 CITY COUNCIL or a 40% increase in operating costs as a result of an approximate 265% increase in building square footage. SCHEDULE OF FUTURE: EVENTS: 5.1 Parks and Recreation Commission Meeting — June 22, 2006 — 7:00 p.m., Hearing Board Room, AQMD/Government Center, 21865 Copley Dr. 5.2 Planning Commission Meeting — June 27, 2006 — 7:00 p.m., Auditorium, AQMDIGovernment Center, 21865 Copley Dr. 5.3 Concerts in the Park — (Brooke Ramel- Acoustic Pop) - June 28, 2006 — 6:30-8:00 p.m., Sycamore Canyon Park, 22930 Golden Spgs. Dr. (Sponsored by the Community Foundation). 5.4 City Council Meeting — July 4, 2006 —No Meeting will be held due to the 4th of July Holiday. 5.5 4T" of July Blast — July 4, 2006 -- 4:30 — 9:30 p.m, Diamond Bar High School, 21400 Pathfinder Rd. 5.6 4th of July Holiday — July 4, 2006, City Offices will be closed in observance of the holiday. City Offices will reopen Wednesday, July 5, 2006. 5.7 Concerts in the Park (CHICO- Latin) — July 5, 2006 — 6:30 — 8:00 p.m. Sycamore Canyon Park, 22930 Golden Spgs. Dr. 8. COUNCIL CONSIDERATION: 8.1 ADOPT RE' OLUTION NO. 2006-54: APPROVING AND ADOPTING A BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2006 AND ENDING JUNE 30, 2007 INCLUDING MAINTENANCE AND OPERATIONS, SPECIAL FUNDS AND CAPITAL IMPROVEMENTS, AND APPROPRIATING FUNDS FOR ACCOUNTS, DEPARTMENTS, DIVISIONS, OBJECTS AND PURPOSES THEREIN SET FORTH. CMILowrystated that Page 3— City of Diamond Bar Fiscal Year 2006- 2007 Budget, column 1 titled "Estimated FB Reserves @ 06/30/06 is the best -guess estimate of where staff believes the City's funds will stand after paying all bills and booked revenues that fit within the generally accepted accounting principles for governments which is generally two months worth of revenues. In short, the City expects to have $35 million available to spend as of June 30, 2006 of which $27 million would be General Fund money. The City expects to receive $18 million of new General Fund Revenues and $9 million of Special JUNE 20, 2006 PAGE 6 CITY COUNCIL Funds bringing the total revenue to the City of $27.7 million. Disregarding the $10 million "transfers in" D.B. will have about $63 million to spend. In Fiscal Year 2006107 the City expects to spend $19 million of the $46 million General Fund and at the end of the fiscal year will realize a balance of $24.5 million in the General Fund. Almost a third of the 2006107 expenditures ($10 million) are devoted to Capital Improvement Projects. This is particularly impressive because it shows that the City can run its operations, provide programs and still make a very sizable investment in the City's infrastructure, buildings and improvements. This is a sign of a well- managed and prudent long-term view of what to do with the public's funds. Bottom line is that (transfers in/transfers out) the City is spending $10 million for capital improvement while using only $3 million of its General Fund. CM/Lowry said that the good news is that because of the way the City has managed its money over the years the $3 million is available because the money has been kept on hand. She asked the City to accept the proposed budget that has allowed and will allow D.B. to continue running its business in a fiscally prudent manner and expand itself to make a sizeable investment in its infrastructure. FM/Magnuson stated that the budget contains the General Fund and 23 Special Funds Budgets including the Capital Improvement Projects Budget and the associated Capital Improvement Project (CIP) List. The CIP list was reviewed by the Planning Commission at its June 13 meeting and was found to be in compliance with the City's General Plan. The General Fund Budget reflects estimated resources of $20,244,610. These resources include items such as property tax revenue, sales tax revenue, State Subventions (motor vehicle in -lieu revenue, fines and forfeitures, service charges such as building fees and recreation fees). There are also transfers in from other funds to cover expenses that can be paid with special revenues such as gas tax and special grants. The budget shows a growth in anticipated revenues for the General Fund of approximately 4.2% over the previous year. These estimates are conservative in nature and take into consideration the changes in the City's economy and increased development activity, primarily as a result of the Target and Brookfield Homes projects. FM/Magnuson further stated that the General Fund appropriations total is $19,452,010 — appropriations for City administration, public safety including law enforcement including animal control, Community Development, Community Services including parks maintenance and recreation, and Public Works. The difference between the estimated resources of $20, 244,610 and the appropriations of $19,452,010 results in an increase of $792,600 to the General Fund reserves from annual operations. In addition to the annual appropriations the proposed budget reflects a transfer of $2,613,750 in General Fund JUNE 20, 2006 PAGE 7 CITY COUNCIL M/Herrera reiterated that the Council had reviewed the Budget during two previous study sessions and Members' questions were asked and answered. M/Herrera invited public comment on the proposed Budget. There was no one present who wished to speak on this item. M/Herrera commended staff for presenting an outstanding Budget for the coming year. D.B. is fortunate that it does not have to make $2 reserves to the CIP fund to assist with the CIP construction program. There is also an allocation of $715,850 in reserves for economic development purposes. The fiscal year 2006107 Budget anticipates an ending General Fund Fund balance of $24,500,782 based on the projected revenues and expenditures. As earlier stated, the proposed Budget includes Capital Improvement Projects that amount to $10,238,1813. The projects are as follows: Street improvement Project — Grand Avenue Beautification and Betterment Program Phase I, 11 and III; Two Slurry Seal Overlay Projects — Area 2 and Area 3, Prospectors Road, Sunset Crossing to Golden Springs Drive, Washington Street cul-de-sac and a new arterial Slurry Seal Program for Zone 1. Total Street Improvement projects equals $5,580,000. Traffic Management and Safety Projects -- Brea Canyon Cutoff at southbound SR 57 on-off ramps, Neighborhood Traffic Management mitigations, Traffic Signal Modifications for Diamond Bar Blvd. and Golden Springs Dr., Traffic Signal modifications for Brea Canyon Rd. and Golden Springs Dr., Traffic Signals at Racquet Club and Interconnect links, traffic calming measures for Prospectors Rd. at Sunset Crossing, Golden Springs and Sunset Crossing Rd., Diamond Bar Blvd. and Prospectors Rd. The total Traffic Management Safety Projects equals $1,530,000. FM/Magnuson continued. Parks and Recreation Improvements proposed include Sycamore Canyon Park ADA Retrofit Phase 111, Pantera Park storerooms, restrooms and drinking fountains, Paul C. Grow ADA (Retrofit, trail access for the Diamond Bar Center, Clear Creek at Steep Canyon, an emergency generator to be located at the Diamond Bar Center and batting cages at Peterson Park and Pantera Park for a total Parks and Recreation Improvements item equaling $1,640,781. Miscellaneous improvement projects include landscape improvement project for Fallow Field Dr., parkway landscape improvements for Prospectors Rd. at Sunset Crossing Rd., improvements to Lorbeer ball field, school area curb ramp installation, landscape improvements at Site XR Brea Canyon Rd. at Diamond Bar Blvd. and landscape drainage improvements for Gold Rush east of Diamond Bar Blvd. for a total miscellaneous improvements item of $1,487,408. The grand total for CIP projects is $10,238,189. M/Herrera reiterated that the Council had reviewed the Budget during two previous study sessions and Members' questions were asked and answered. M/Herrera invited public comment on the proposed Budget. There was no one present who wished to speak on this item. M/Herrera commended staff for presenting an outstanding Budget for the coming year. D.B. is fortunate that it does not have to make $2 JUNE 20, 2006 PAGE 8 CITY COUNCIL and 3 million budget cuts, as do some neighboring cities in order for them to balance their budgets. Due to prudent management by City staff and Council Members the City is fortunate that it is able to balance its Budget and have additional funds available for infrastructure improvements. C/Chang moved, C/Tye seconded to adopt Resolution No. 2006-54: Approving and Adopting a Budget for the Fiscal Year commencing July 1, 2006 and ending June 30, 2007 that included Maintenance and Operations, Special Funds and Capital Improvements and appropriating funds for Accounts, Departments, Divisions, Objects and Purposes therein set forth. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Zirbes 6. CONSENT CALENDAR: ClChang moved, CITye seconded to approve the Consent Calendar with the exception of Items 6.10 and 6.12. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, MPTIZirbes, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 6.1 APPROVED CITY COUNCIL MINUTES: 6.1.1 Special Meeting of June 1, 2006—as submitted. 6.1.2 Study Session of June 6, 2006 — as submitted. 6.1.3 Regular Meeting of June 6, 2006 — as submitted. 6.2 PLANNING COMMISSION MINUTES: 6.2.1 Regular Meeting of April 25, 2006 — Received and Filed. 6.2.2 Regular Meeting of May 9, 2006 —Received and Filed. 6.2.3 Regular Meeting of May 23, 2006 — Received and Filed. 6.3 PARKS AND RECREATION COMMISSION MINUTES — Regular Meeting of April 27, 2006 — Received and Filed. 6.4 TRAFFIC AND TRANSPORTATION COMMISSION MINUTES: 6.4.1 Regular Meeting of February 9, 2006 — Received and Filed. 6.4.2 Special Meeting of February 28, 2006 — Received and Filed. JUNE 20, 2006 PAGE 9 CITY COUNCIL 6.5 RATIFIED CHECK REGISTER — containing checks dated June 8, 2006 to June 15, 2006 totaling $489,092.34. 6.6 ACCEPTED AND APPROPRIATED DIAMOND BAR COMMUNITY FOUNDATION DONATION OF $2000 TO FUND A COMMUNITY CONCERT IN THE PARK ON WEDNESDAY, JUNE 28, 2006 AT SYCAMORE CANYON PARK FROM 6:30 TO 8:00 P.M. 6.7 APPROVED CONTRACT EXTENSIONS FOR PUBLIC WORKS: (a) APPROVED CONTRACT AMENDMENT WITH ADVANTEC CONSULTING ENGINEERS FOR THE FY 2006107 CITYWIDE TRAFFIC SIGNAL TIMING PROJECT TO MONITOR AND FINE- TUNE THE SIGNAL TIMINGS IN THE AMOUNT OF $25,000 (b) APPROVED EXTENSION OF CONTRACT AGREEMENT WITH DIVERSIFIED TRANSPORTATION, LLC (PREVIOUSLY DEVERSIFIIED PARATRANSIT, INC.), FOR FY 2006107 DIAMOND RIDE (DIAL. -A -CAB) SERVICE. 6.8 APPROVES) CONTRACT EXTENSIONS FOR COMMUNITY ' SERVICES DEPARTMENT: (a) APPROVED AMENDMENT NO.2 TO EXTEND THE VENDOR SERVICES CONTRACT WITH D.H. MAINTENANCE SERVICES FOR THE 'TERM JULY 1, 2006 THROUGH JUNE 30, 2007 TO PROVIDE JANITORIAL AND BUILDING MAINTENANCE SERVICES AT THE DIAMOND BAR CENTER, HERITAGE PARK COMMUNITY CENTER AND PANTERA PARK ACTIVITY ROOM IN THE AMOUNT OF $150,674 AND AS -NEEDED WORK IN THE AMOUNT OF $75,076 FOR A TOTAL AUTHORIZATION NOT TO EXCEED $225,750 FOR FY 2006107. (b) APPROVED AMENDMENT NO. 5 TO EXTEND THE VENDOR SERVICES CONTRACT WITH VALLEYCREST LANDSCAPE MAINTENANCE FOR THE TERM OF JULY 1, 2006 THROUGH JUNE 30, 2007 TO PROVIDE LANDSCAPE MAINTENANCE SERVICES AT PANTERA, PETERSON AND SUMMITRIDGE PARKS, AND THE GROUNDS OF THE DIAMOND BAR CENTER, WITH A CPI INCREASE OF 4% IN THE AMOUNT OF $194,762.88, PLUS AS -NEEDED WORK IN THE AMOUNT OF $50,000 FOR A TOTAL AUTHORIZATION NOT TO EXCEED $244,762.88 FOR FY 2006107. (c) AUTHORIZED TO EXCEED THE CITY MANAGER'S PURCHASING AUTHORITY OF $25,000 TO EXTEND VENDOR SERVICES FOR SENIOR AND ADULT EXCURSIONS PROVIDED BY INLAND, EMPIRE STAGES LTD., IN AN AMOUNT NOT TO JUNE 20, 2006 PAGE 10 CITY COUNCIL EXCEED $65,000 FOR FY 2005106. (d) APPROVED AMENDMENT NO.1 TO THE CONTRACT WITH INLAND ROUNDBALL OFFICIALS TO OFFICIATE THE CITY'S ATHLETICS PROGRAM FOR THE PERIOD JULY 1, 2006 THROUGH JUNE 30, 2007 IN AN AMOUNT NOT TO EXCEED $30,000. (e) APPROVED AMENDMENT NO. 3 TO THE AGREEMENT WITH TENNIS ANYONE TO EXTEND THE TERM TO JULY 1, 2006 THROUGH JUNE 30, 2007 IN THE AMOUNT OF $50,000 TO PROVIDE CONTRACTED TENNIS CLASSES. (f) APPROVED AMENDMENT NO.2 TO THE CONTRACT WITH WEST COAST ARBORISTS FOR CITYWIDE TREE MAINTENANCE AND WATER SERVICES FOR FY 2006107 IN AN AMOUNT NOT TO EXCEED $230,000 INCLUDING A 4.7% CPI UNIT PRICE INCREASE AND AN INCREASE TO THE FREQUENCY OF THE TRIMMING PROGRAM TO TRIM ALL TREES IN THE CITY DURING A THREE-YEAR CYCLE INSTEAD OF A FIVE-YEAR CYCLE. (g) APPROVED AMENDMENT NO.5 TO THE CONTRACT WITH EXCEL LANDSCAPE FOR LANDSCAPE MAINTENANCE SERVICES AT 14 LOCATIONS IN LLAD NO. 38 AND LLAD NO. 41 FOR FY 2006107 IN THE AMOUNT OF $44,000 WHICH INCLUDES A CPI INCREASE OF 3.5% AND A CONTINGENCY AMOUNT OF $5,000 FOR AS -NEEDED WORK. 6.9 APPROVED CONTRACT AMENDMENT NO.8 WITH DAVID EVANS AND ASSOCIATES, INC. FOR $19,650 TO PROVIDE DESIGN SERVICES FOR THE CONSTRUCTION OF BATTING CAGES AT PETERSON AND PANTERA PARKS. 6.11 (a) APPROPRIATED $56,035 FROM PROP C FUND RESERVE TO THE CAPITAL IMPROVEMENT PROGRAM BUDGET; APPROVED PLANS AND SPECIFICATIONS; AWARDED CONSTRUCTION CONTRACT IN THE AMOUNT OF $912,673 TO MACADEE ELECTRICAL CONSTRUCTION; AND AUTHORIZED A CONTINGENCY AMOUNT OF $60,000 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $972,673, FOR CONSTRUCTION OF LEFT -TURN TRAFFIC SIGNALS AT BREA CANYON ROAD/SILVER BULLET DRIVE; DIAMOND BAR BOULEVARD/SHADOW CANYON DRIVE; DIAMOND BAR BOULEVARD/MOUNTAIN LAUREL WAY, DIAMOND BAR BOULEVARD/HIGHLAND VALLEY ROAD; DIAMOND BAR BOULEVARD/GRAND AVENUE, AND GOLDEN SPRINGS DRIVE/PROSPECTORS ROAD; AND, NEW TRAFFIC SIGNAL JUNE 20, 2006 PAGE 11 CITY COUNCIL INSTALLATIONS ON GRAND AVENUE AT CAHILL STREET AND AT CLEGHORN DRIVE. (b) APPROVED CONTRACT AMENDMENT WITH WARREN C. SIECKE TRANSPORTATION AND TRAFFIC ENGINEERING FOR CONSTRUCTION INSPECTION SERVICES IN THE AMOUNT OF $50,000 PLUS A CONTINGENCY AMOUNT OF $5,000 FOR CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $55,000 FOR CONSTRUCTION OF LEFT -TURN TRAFFIC SIGNALS AT BREA CANYON ROAD/SILVER BULLET DRIVE; DIAMOND BAR BOULEVARD/SHADOW CANYON DRIVE; DIAMOND BAR BOULEVARD/MOUNTAIN LAUREL WAY; DIAMOND BAR BOULEVARD/HIGHLAND VALLEY ROAD; DIAMOND BAR BOULEVARD/GRAND AVENUE, AND GOLDEN SPRINGS DRIVE/PROSPECTORS ROAD. 6.13 ADOPTED (RESOLUTION NO. 2006-55: ESTABLISHING SALARY RANGES FOR ALL CLASSES OF EMPLOYMENT AND BENEFITS FOR ALL CLASSES OF EMPLOYMENT EFFECTIVE JULY 1, 2006 AND RESCINDING RESOLUTION NO. 2006-47 IN ITS ENTIRETY. 6.14 AMENDED THE FY 2005/06 BUDGET TO INCREASE THE TRANSIT SUBSIDY FARE REVENUE AND TRANSIT SUBSIDY FARES APPROPRIATION BY $100,000 AND APPROPRIATED $10,000 FROM PROP A TRANSIT FUND RESERVES INCREASING THE TRANSIT SUBSIDY APPROPRIATION. 6.15 AUTHORIZED EXPENDITURES IN AN AMOUNT NOT TO EXCEED $75,000 FOR FY 2006/07 TO GRAPHICS UNITED FOR PRODUCTION OF THE CITY'S NEWSLETTER/RECREATION GUIDE AND MISCELLANEOUS PRINTING SERVICES. 6.16 APPROVED EXTENSION OF CITYWIDE GRAFFITI REMOVAL CONTRACT WITH GRAFFITI CONTROL SYSTEMS FOR FY2006/07 IN THE AMOUNT OF $45,000. 6.17 AUTHORIZED CITY MANAGER TO PURCHASE COMPUTER NETWORK HARDWARE (SIX SERVERS) FROM HEWLETT PACKARD THROUGHOUT FY 2006/07 FOR AN AMOUNT NOT TO EXCEED $73,000. 6.18 AUTHORIZED CITY MANAGER TO PURCHASE VARIOUS ' COMPUTER NETWORK EQUIPMENT FROM CDWG THROUGHOUT THE 2006/07 FISCAL YEAR FOR AN AMOUNT NOT TO EXCEED $109,400. JUNE 20, 2006 PAGE 12 CITY COUNCIL 6.19 AUTHORIZED CITY MANAGER TO ENTER INTO A THREE 3) YEAR CONTRACT WITH GRANICUS, INC. FOR PURCHASE OF WEBCAST SOFTWARE AND SERVICES, WITH FIRST YEAR TOTAL CONTRACT COST NOT TO EXCEED $43,500 AND ADDITIONAL SERVICE COSTS NOT TO EXCEED $12,000 PER YEAR. 6.20 AUTHORIZED CITY MANAGER TO ENTER INTO A ONE (1) YEAR CONTRACT WITH A.C.T. GIS INC., FOR PURCHASE OF GIS RELATED PROFESS IONALITECHNICAL SERVICES, GIS DATA AND PREPARATION OF A GIS STRATEGIC PLAN AT A TOTAL CONTRACT COST NOT TO EXCEED $100,000 FOR FY 2006107. 6.21 AUTHORIZED CITY MANAGER TO ENTER INTO A MEMORANDUM OF UNDERSTANDING FOR THE LOS ANGELES REGION IMAGERY ACQUISITION CONSORTIUM (LAR -IAC) PROGRAM BY AND BETWEEN THE COUNTY OF LA AND PARTICIPATING ENTITIES TO PROVIDE THE CITY WITH UPDATED AERIAL IMAGERY, AT A COST OF $49,000 FROM THE FY 2006107 BUDGET. 6.22 ADOPTED RESOLUTION NO. 2006-57: SETTING THE PROP 4 (GANN) APPROPRIATIONS LIMIT FOR FY 2006107 AND AMENDING THE APPROPRIATIONS LIMIT FOR FY 2005106 AND 2004105 IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE. 6.23 ADOPTED RESOLUTION NO. 2006-57: RENEWING THE ADOPTION OF INVESTMENT POLICY FOR FISCAL YEAR 2006107. 6.24 APPROPRIATED $21,114 OF GENERAL FUND BALANCE RESERVE (RESTRICTED FROM THE PREVIOUS SALE OF PROP A FUNDS) TO THE CAPITAL IMPROVEMENT PROGRAM BUDGET; APPROVED PLANS AND SPECIFICATIONS; AND AWARDED THE CONSTRUCTION CONTRACT FOR THE NEIGHBORHOOD TRAFFIC MANAGEMENT PILOT PROJECT TO IMPERIAL PAVING CO. IN THE AMOUNT OF $133,144; AND AUTHORIZED A CONTINGENCY AMOUNT OF $13,000 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $146,144. 6.25 APPROVED A 4.5% COST OF LIVING ADJUSTMENT FOR THE CITY MANAGER ($6,206) AND APPROPRIATED THE AMOUNT INTO THE 2006107 BUDGET ALONG WITH ADDITIONAL ASSOCIATED FRINGE COSTS. JUNE 20, 2006 PAGE 13 CITY COUNCIL ITEMS WITHDRAWN FROM CONSENT CALENDAR: 6.10 ADOPT RESOLUTION NO. 2006-58: PROVIDING FOR THE TRANSFER OF CONTROL OF THE CITY'S CABLE TELEVISION FRANCHISE FROM ADELPHIA COMMUNICATIONS TO COMCAST CORPORATION, WHO WILL THEN TRANSFER CONTROL OF THE FRANCHISE TO TIME WARNER CABLE AND, FOR ACCEPTANCE OF A SETTLEMENT AGREEMENT FROM ADELPHIA COMMUNICATIONS IN THE AMOUNT OF $75,000 FOR OUTSTANDING FRANCHISE FEE UNDERPAYMENTS, OTHER AUDIT AND TRANSFER RELATED COSTS AND FRANCHISE NON- COMPLIANCE CHARGES. C/Tye asked if the amount of $75,000 was sufficient to cover the underpayments and non-compliance issues with which the City has been dealing. ACM/Doyle responded yes, that the $75,000 included all of the underpaid franchise fees with accumulated penalties and interest together with the cost of performing the audit that disclosed the under - franchised fee payments and the cost of the City's consultants to assist with the transfer process. In addition, the City assessed Adelphia additional penalties for non-compliance with the franchise. Staff spent months negotiating with Adelphia representatives and Time Warner representatives to arrive at a mutually acceptable dollar amount. This does not relieve Adelphia and Time Warnerfrom any of their commitments going forward to meeting those franchise requirements. C/Tye moved, C/Tanaka seconded, to Adopt Resolution No. 2006-58 providing for the transfer of control of the City's cable television franchise from Adelphia Communications to Comcast Corporation, who will then transfer control of the franchise to Time Warner Cable and, for acceptance of a Settlement Agreement from Adelphia Communications in the amount of $75,000 for outstanding franchise fee underpayments, other audit and transfer related costs and franchise non-compliance charges. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Zirbes 6.12 APPROVAL. OF EXTENSION OF CONSULTING SERVICES AGREEMENT WITH GARY NEELY FOR GOVERNMENTAL AFFAIRS CONSULTING SERVICES FOR 24 MONTHS TOTALING $38,880. JUNE 20, 2006 PAGE 14 CITY COUNCIL CM/Lowry responded to C/Tanaka that the Governmental Affairs consulting services provided by Mr. Neely include attendance at a number of agency meetings outside of the City area such as WCCA, Rivers and Mountains Conservancy, Water District, various transportation related meetings as well as reports back to the City. Mr. Neely provides agendas of meetings he attends and occasionally recaps by email outcome of meetings and networking he has performed at the meetings. Mr. Neely has provided this service to the City for the past five years. C/Chang asked if Mr. Neely was stili representing the City of Industry to which Mr. Neely responded that at no time does he represent both the City of Industry and the City of Diamond Bar at the same time on the same matter. Projects that he consults on with the City of Industry are not the same projects that he consults on with the City of D.B. It is not unusual for consultants to work for more than one city and there is no conflict of interest. Mr. Neely further stated that he has never been asked to negotiate or make decisions on behalf of any municipality including the City of D.B. CM/Lowry responded to C/Chang that Mr. Neely was correct in stating that he did not negotiate on behalf of the City and there is no conflict of interest with Mr. Neelywhen he follows his contract assignments to bring back matters of concern to the City. M/Herrera said she had found Mr. Neely's services to be of great value to her and to the City. Mr. Neely is very knowledgeable regarding matters of transportation. He attends OCTA (Orange County Transportation Authority) and has been able to help her respond to many questions from residents seeking information. D. B. is a contract City and it is impossible with the limited number of staff members to attend all agency and organization meetings. However, the City is affected by many of those surrounding entities and it is important to stay informed about what different agencies are doing and the direction in which they are moving. C/Tye felt that as a contract City it was in D.B.'s best interest to make sure that the City gets as much accomplished with all available resources and, he understood that Mr. Neely was responsible for helping the City secure a grant in excess of $120,000 that was and will be used for park improvements. The reason this City has a balanced budget and can continue to add to its reserves is because staff and Council make good use of resources like Mr. Neely. If Mr. Neely can continue to produce and secure grants and funding mechanisms then he more than pays for himself. C/Tanaka asked if the reports staff receives from Mr. Neely are more than just an oral report or does the report document some of the JUNE 20, 2006 PAGE 15 CITY COUNCIL different issues that are brought up at the different meetings and, who evaluates Mr. Neely's contract. CM/Lowry reiterated that staff receives materials from Mr. Neely when he attends the various agency meetings. On occasion staff receives an email that provides staff with information aboutwhat Mr. Neely has experienced at the meeting and what outcome he has gathered from networking conversations with staff and elected officials in attendance at the meetings. Mr. Neely works directly with the Council Members when they choose to communicate with him so to some extent the Council's estimate of his performance is quite relevant. Mr. Neely has also reported to the City Manager and Community Development Director and former Assistant City Manager who was the first to hire Mr. Neely in 2001. M/Herrera moved, C/Tye seconded to approve extension of consulting services agreement with Gary Neely for Governmental Affairs consulting services for 24 months totaling $38,880. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tye, MlHerrera NOES: COUNCIL MEMBERS: Tanaka ABSENT: COUNCIL MEMBERS: MPT/Zirbes 7. PUBLIC HEARINGS: 7.1 ADOPT RESOLUTION NO. 2006-59: TO INCREASE CERTAIN FEES AND CHARGES FOR RENTAL OF PUBLIC FACILITIES. CM/Lowry stated that as is the City's practice whenever there is consideration to change fees or charges, the matter is noticed in advance to the Public. During a previous public meeting the Council amended its Parks Athletic and Facility Use Policy and for facilities other than the Diamond Bar Center a fee increase was proposed. Staff and the Parks and Recreation Commission recommended approval of the fee increase. CSD/Rose reported that on May 16, 2006 the City Council approved the Park Athletic and Facility Use Policy and directed staff to set this Public Hearing to consider the fees and charges for the rental of public facilities. This hearing concerns all public facilities in the City of D. B. with the exception of the Diamond Bar Center. Staff reviewed the fees charged to rent public facilities and recommends increases to cover costs borne by the City to process reservation requests and to set fair rental rates that reflect the current market conditions in the D.B. area. The fees and charges recommended are as follows: JUNE 20, 2006 PAGE 16 CITY COUNCIL 1) Establish a $25 fee for resident reserved use of picnic facilities and increase the non-resident fee from $25 to $50. 2) Increase the hourly rental rate for use of Heritage Park Community Center from $47.50 to $55.00 per hour for residents and from $53.50 to $65.00 per hour for non- residents. 3) Increase the hourly rental rate for the use of Heritage Park Community Center classroom from $22.50 to $30.00 for residents and from $25.63 to $40.00 per hour for non- residents. 4) Increase the hourly rental rate for use of the Pantera Park Activity Room from $22.50 to $30.00 per hour for residents and from $25.63 to $40.00 per hour for non-residents. CSD/Rose stated that these are the first proposed fee increases for the facilities since March 2002. The Parks and Recreation Commission reviewed the proposed fee increases on April 27, 2006 and recommended Council approval. Therefore, staff and the Parks and Recreation Commission recommend adoption of a resolution to increase fees and charges for the rental of public facilities at the proposed rates. M/Herrera opened the Public Hearing at 8:20 p.m. With no one present to speak on this matter, M/Herrera closed the Public Hearing at 8:21 p.m. CSD/Rose responded to C/Tye that the proposed rates are comparable to public facilities use charges in surrounding Jurisdictions. C/Chang moved, C/Tanaka seconded to Adopt Resolution No. 2006- 59: To increase certain fees and charges for rental of public facilities. Motion carried by the following Roll Call vote: AYES: COUNCIL_ MEMBERS: Chang, Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Zirbes 8. COUNCIL CONSIDERATION: (Continued): 8.2 APPROVE APPOINTMENT OF PLANNING COMMISSIONER BY MAYOR HERRERA. JUNE 20, 2006 PAGE 17 CITY COUNCIL MlHerrera nominated Osman Wei to serve as her appointed Planning Commissioner. Osman Wei thanked MlHerrera for selecting him. He understands that the Planning Commission plays an important role in the growth of D.B. and he promised to do his best to contribute to the community and live up to the trust of the people as he accepted the appointment. Ron Everett, a 29 -year resident said he was disappointed that the disclosure was not meaningful in that the name of the appointee was not placed on the agenda. His real concern is the ethics of public perception in the best interest and fairness for the people of this community. This issue relates to the emphasis by the State to improve community ethics and, the financial elements were addressed in the annual form 700 for many D.B. officials. His points are beyond financial and more difficult but certainly no less important. He read from the Institute for Local Government Putting Ethics Principles into Practice. He said that public perception matters a great deal with respect to what is the "right thing to do" in public service because public officials are stewards of the public's trust. In short, public service ethics is not only about doing the right thing but also about the public's confidence that indeed the right thing has been done. In this; case, his specific point has nothing to do with the named appointee but the conditions that exist today. He said he does not believe a person should serve on a Planning Commission, which is responsible for land use in D.B. and at the same time serve as a homeowner's association board member. It may be legal but it should be considered separately and as seriously as these are important government positions or quasi -government as in the case of the HOA. The non -fiscal aspects of this decision at hand are most important. He provided examples that included the significant perception of a conflict-of-interest and the likely unfair influence will exist as an ongoing reality for an HOA board member who is negotiating annexation with an adjacent and land -locked 80 -acre residential development project of which annexation is a condition. There is another Mot HOA on Steeplechase in various stages of development including annexation as a condition of project approval. Finally, a significant ongoing number of project approval within this large HOA continue as Planning Commission agenda items month after month. This cannot be mitigated by recusal. The significance of the perception of a conflict of interest and the unfair influence are compelling in this matter. The only responsible motion for Item 8.2 approving appointment of Planning Commissioner by MlHerrera would be to condition the appointment to be effective upon the resignation by the named appointee from his HOA Board of Directors and any related leadership positions therewith. With specific conditions that exist today an individual should not serve on a Planning Commission and an HOA Board of Directors with a set of JUNE 20, 2006 PAGE 18 CITY COUNCIL responsibilities and issues referenced herein. CA/Jenkins stated that the speaker correctly indicated that appointment of an individual who is a member of a homeowner's association board to the Planning Commission is not illegal. There may be instances that come up before the Planning Commission where such an individual would have to recuse himself from participation either by virtue of a financial or a non-financial common law conflict of interest and those would have to be evaluated on a case-by-case basis. It would not be possible sitting here this evening to examine each of those instances but were there to be instances where the Planning Commissioners' duties overlapped with some matter that the Homeowner's Association Board was involved with then the City would have to make an assessment at that time as to whether that individual should abstain from participation on such a matter as a member of the Planning Commission. MlHerrera asked the Council to accept her nominee. Each year since 1989 the Council Members have appointed individuals they deemed fit to serve and each year other Council Members have respected the right of the individual Council Member to name his/her appointee. She asked for the Council's respect in this matter. MlHerrera moved to approve appointment of Osman Wei as Planning Commissioner. C/Tye asked if he understood correctly that when projects involving the specific HOA came forward to the Planning Commission recusal would be appropriate and that there was nothing illegal about an individual serving as both a HOA Board Member and Planning Commissioner of D.B. CITye said that during his tenure on the Planning Commission there was hardly a month that a matter involving "The Country Estates" Homeowners Association was not on the Planning Commission agenda. CA/Jenkins responded that CITye was correctthat the individual could recuse himself or, after some discussion, the nominee may wish to recuse himself as a board member. C/Chang said that the majority of the residential construction projects were inside "The Country Estates." He said that with all due respect he was concerned about a HOA Board Member making decisions on matters brought before the Planning Commission. MlHerrera understood C/Chang's concerns and said that there were many other matters coming forward to the Planning Commission in the next year or two such as General Plan amendments, annexation of particular neighborhoods with a large portion of land becoming JUNE 20, 2006 PAGE 19 CITY COUNCIL available to the City and so forth. There are a lot of other important issues that need to be dealt with other than renovation and expansions of homes in "The Country Estates" and this is a much bigger job in scope. C/Tanaka asked if Mr. Wei could be polled to see if he was willing to give up his IHOA Board position. M/Herrera asked that the matter be continued to the July 18 meeting to give the nominee an opportunity to think about what was said this evening. M/Herrera moved, C/Tye seconded to continue 8.2 to July 18, 2006. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: Chang ABSENT: COUNCIL MEMBERS: MPT/Zirbes 8.3 ADOPT RESOLUTION NO. 2006-60: ADOPTING LOCAL GOALS AND POLICIES FOR COMMUNITY FACILITIES DISTRICTS (CFDs) AND AUTHORIZING THE CITY MANAGER TO HIRE CONSULTANTS. CM/Lowry stated that the action before Council this evening related to the library CFD considers approving a resolution which includes the goals and policies that the City would set forth as reasons to create a Community Facilities District. ACM/Doyle introduced Brian Forbath who has been working with staff on the creation of the CFD language as well as rates and methods of apportionment and other detailed information necessary to create a Community Facilities District for the Library in order for it to be placed on the November ballot. Brian Forbath stated that as previously discussed, should the Council decide to move forward to create a CFD for a Library or for any Community Facilities District benefiting residents within the City, the Council would need to adopt certain goals and policies that are required by the Mello -Roos Act that sets forth minimum standards that the City would evaluate in rendering a decision as to whether or not to form a Community Facilities District. These standards are broadly set forth in the Goals and Policies before the Council this evening. Adopting the Goals and Policies tonight is not a decision one way or the other as to how the Council would move forward on the Library Project. This is merely a first step in reaching that decision. He introduced Emad Mirgoli, Stone & Youngbird, the bond underwriting firm and Jenny Carter, Muni Financial, the City's special tax JUNE 20, 2006 PAGE 20 CITY COUNCIL consultant. There was no one present who wished to speak on this matter. C/Tye wanted the public to be aware that he had attended virtually every meeting involving consideration of a new library, and the City had assessed what the building and operating costs would be. He heard tonight that as best as the City can estimate the operating costs of the library are $1.2 million per year and an individual said that the Council had decided, as it went forward with the CFD, to double that amount because the square footage would be more than double the current facility. Not in any meeting in which he has been involved has anyone indicated or recommended that the costs be doubled. And, for the record, the Council agenda report regarding a special meeting that was held on June 1 read that "the annual operating cost increase will be funded through the CFD with a base amount of $500,000 and include an annual CPI adjustment." He feared that as the City moved forward rumors would abound and take on a life of their own. He encouraged residents to verify the facts. C/Tanaka moved, CITye seconded to Adopt Resolution No. 2006-60: Adopting Local Goals and Policies for Community Facilities Districts (CFDs) and Authorized the City Manager to hire consultants. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Zirbes 8.4 APPROVE CONTRACT WITH INLAND VALLEY HUMANE SOCIETY -SPCA TO PROVIDE ANIMAL CONTROL SERVICES THROUGH 2009, WHICH INCLUDES AN EXPECTED ANNUAL COST INCREASE FROM $82,463 TO $102,008. CM/Lowry stated that this item was brought forward under Council Consideration because while it is a contract renewal similar to other contracts, the amount that staff is presenting to the Council is a net result of the fee offset and the amount paid from the General Fund. Staff believes that this cost increase is so significant that Council might want to consider adjusting the fees to avoid further impact to the City's General Fund. SMA/McLean reported that since incorporation the City has contracted with the Inland Valley Humane Society to provide animal care and control services in the community. These services include operation of a public animal shelter as well as, enforcement of the City's animal related municipal codes and other codes. In staff's estimation the Inland Valley Humane Society has provided quality JUNE 20, 2006 PAGE 21 CITY COUNCIL service throughout its term. In the past the City explored the option of contracting with Los Angeles County to provide animal services. Research showed that contracting with the County may not be the most cost-effective method and would potentially present several customer service concerns due to its distance from the community. The current contract expires July 1, 2006 and to ensure that animal services continue without interruption staff recommends that the contract with the Inland Valley Humane Society be extended for a three-year term through 2009. Due to the increased cost of fuel, business expenses and salary adjustments, a proposed net increase from $82,463 to $102,008 is proposed. The proposed increase was incorporated in the Fiscal Year Budget for 2006107 with the difference being absorbed through the General Fund. By adopting a revised fee schedule, the costs could be offset thereby eliminating a hit to the General Fund. Staff is seeking direction from the Council as to whether the Members would like to schedule consideration of these options during a future meeting. Any proposed adjustments would require a Public Hearing at a future meeting as well as, amendments to the new contract to reflect the new annual net costs. M/Herrera asked if service quality to residents had improved. ACM/Doyle responded that the last time staff negotiated the contract there were issues raised that primarily involved the Humane Society's approach during the canvassing process. Staff worked closely with the Society to modify their approach and perception within the community. To his knowledge there were no further complaints regarding the Inland Valley Humane Society. If the Council desires to consider this matter further, staff if so directed, would move forward to gather additional information for a future study session to understand what fees were raised and when they were raised. Should the Council approve a change in the fees the contract could be amended to lower the General Fund payment. M/Herrera asked if it would be prudent to approve a one-year contract during the reconsideration process. ACM/Doyle responded that staff discussed this matter with the IVHS. They indicated that if Council were to approve the three-year agreement and subsequently changed the fee structure they would adjust their contract. Therefore, he felt it was not an issue for the service provider and the City relative to the three-year agreement. Staff looked at other providers and with respect to service to the community it is much better to have the facility close rather than having to travel to Baldwin Park, for example. The current contract terminates June 30, 2006 and the new contract would extend the service to 2009. Were the fees to be adjusted they would continue to be paid directly to IVHS for animal control services and what the fees JUNE 20, 2006 PAGE 22 CITY COUNCIL did not cover would be supplemented with General Fund dollars. There is a 360 -day termination clause for the new contract. C/Tanaka felt the Humane Society did an excellent job forthe City. He felt that geographical proximity was a plus for animal owners. He also felt the Humane Society offered substantial volunteer opportunity for students and adults. The Humane Society is also involved with educational opportunities for groups such as the Boy Scouts, Girl Scouts as well as classroom projects. The Humane Society deals with all kinds of animals — birds, horses, pot-bellied pigs, snakes, skunks, opossums, etc. C/Tye said he was now less clear on what this service costs D.B. He thought the service cost to the City is $102,000. In previewing the contract, Page 3 indicates that the City will pay the Humane Society $102,800 over a 12 month period and under b) it indicates the gross animal care and control cost for the initial year is $202,800. CA/Jenkins responded that the reason the contract was written that way was because in the first line of 1) says that it is agreed that the gross animal care and control "cost" -- and the reason the provider included "cost" is because they want the annual CPI adjustment referred to in paragraph c) to be based on the $202,800 figure. While the City's obligation is to pay only the $102,800 the difference between $100,000 and $202,000 is the amount of estimated fee recovery and if the provider does not recover that amount it eats the difference. If the provider recovers more it keeps the excess but the purpose of 1) is so that the CPI adjustment noted in c) would be based on the $202,000 amount. C/Chang moved, C/Tanaka seconded to Approve Contract with Inland Valley Humane Society -SPCA to Provide Animal Control Services through 2009, which includes an expected annual cost increase from $82,463 to $102,008 and direct staff to prepare alternative fee schedules for future Council Consideration subject to the proviso that were the Council to approve an increase in the fees, the City's contribution would be reduced commensurate with the anticipated revenue to be obtained by the provider from the increased fees. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Zirbes JUNE 20, 2006 PAGE 23 CITY COUNCIL 9. COUNCIL SUBCOMMITTEE REPORTSICOUNCIL MEMBER COMMENTS: C/Tanaka reported that on Tuesday June 13 he attended the D.B. Chamber of Commerce mixer; on June 15 he attended a retirement luncheon for a retiring Los Angeles Police Department Detective; on Sunday, June 18 he attended the sneak preview for Pacific Crest Drum & Bugle Corps. The Corps will perform on Saturday, June 24 at Mt. SAC. This morning he attended D.B.'s Day at the Fair Committee meeting along with C/Chang. The Committee plans to dedicate a day at the fair as Thursday, September 14 for the City of D.B. C/Chang said that when his friends visit D.B. they feel it is a different atmosphere and that the City is well run. It is the Council's goal to improve the quality of life for everyone and after tonight's approval of the 2006/07 Budget there is a surplus. He understands that some residents are concerned about a bond for the new library but after careful study the City is very solid and doers not intend to use its money unwisely. The Council has put the matter on the table for consideration in the light of day so that everyone understands what is involved. C/Tye said it was his pleasure to attend the June 10 D.B.H.S. graduation and that he was very proud of his son for making it through the 12th grade to graduate with his 797 classmates. On Saturday, June 11 he attended the Filipino Heritage Clay, a regional celebration of independence. He asked residents to join him on Saturday, June 24 at the Jolly Bagel to discuss matters of concern from 9:00 a.m. to 11:00 a.m. He hoped residents would join "Team Huff' on Sunday, June 25 for the Walk for Life at Walnut High School. June 28 is the first Concerts in the Park and he thanked the D.B. Community Foundation. Two weeks from tonight everyone is invited to D.B.H.S. to enjoy what will surely be the biggest and best ever 4th of July celebration. On June 10 his wife Patty received her Masters degree from CalPoly-Pomona and he said he was very proud of her accomplishments. Those who have students at Diamond Ranch High School are the beneficiaries of one of the best teachers in the school system. He also thanked his wife for 30 years of marriage. M/Herrera congratulated C/Tye on celebrating 30 years of marriage. She too attended the outstanding Filipino event on June 11 during which one of the association board members gave a fascinating history of the last 100 years. The Filipino community is a large part of the City of D.B. as well as the City of Walnut and this was a regional event. On June 10 she attended a dinner sponsored by ALADS, Association of Los Angeles Deputy Sheriffs, celebration in conjunction with the District Attorney's Office honoring the heroism and valor of various deputy Sheriff's. It was a very moving event during which many acts of heroism were related. She was very pleased that such an event was held to honor the deputies who perform these heroic acts on a daily basis as part of their jobs. She is proud that D.B. has a contract JUNE 20, 2006 PAGE 24 CITY COUNCIL 2006. with the LA County Sheriffs Office and she was also proud that D.B. was recognized as one of their best contract cities and one of the best cities in which to work. Due to the diligence and perseverance of the Sheriff's Department D.B.'s crime late remains low. She is President of the San Gabriel Council of Governments and unfortunately, the COG is having some financial problems and plans to consider raising dues from member cities. Dues have not been increased in 11 years and costs have risen. A special meeting is scheduled for July to deal with this matter and she may be asking the D.B. Council to approve an increase. MlHerrera said that she was very happy the City Council had adopted a balanced budget. She announced that Assemblyman Bob Huff invites everyone to participate in his 60th Assembly District Small Business Advisory Committee session on Friday June 23 from 7:30 a.m. to 9:00 a.m. at the SCAQDIGovernment Building in Room CC -2. The Committee will review legislation that will impact local business, proposed legislative ideas and address the fiscal crisis in the State of California. The Council covered a great deal of business this evening due to cancellation of the July 4 meeting. The next regular Council meeting is scheduled for July 18, 2006. ADJOURNMENT: With no further business to conduct, MlHerrera adjourned the regular City Council meeting at 9:35 p.m. to a Special City Council meeting on June 30, 2006 at 10:00 a.m. in the SCAQMDIGovernment Center Auditorium. Tommye Cribbins, CITY CLERK The foregoing minutes are hereby approved thisl 8th day of July , CAROL HERRERA, MAYOR