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HomeMy WebLinkAbout06/1/2004 Minutes - Regular MeetingCITY 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/Government 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 at 4:07 p.m. ► Economic Development Planning Review ► Review of Proposed FY2004-2005 Draft Budget Public Comments 1. 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 for that 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. Staff's 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. JUNE 1, 2004 PAGE 2 CC STUDY SESSION Along with Lewis, staff continues to pursue a big -box retail for the Calvary Chapel property. He asked for Council's concurrence. 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 for the Calvary Chapel property. MPT/Herrera said that when they spoke with Larry Kosmont and others at ICSC it became apparent that others were wooing 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 opinions 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 work 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 Chapel 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 destination or "lifestyle" type of a complex on the Calvary Chapel site, a big box retailer was necessary to the financial future of the community. He felt 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 JUNE 1, 2004 PAGE 3 CC STUDY SESSION 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 it was available and it had expenses 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 years 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. A couple 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 D in the short term and does not view it as a Target or a Home Depot site based on current information. M/Zirbes asked if the City could say to the developer that "lifestyle" was not appropriate at the 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 D and 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? JUNE 1, 2004 PAGE 4 CC STUDY SESSION 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-residential 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 into housing and smaller sales tax generators in order to improve the consumers' quality of life. As a result, the compromise had been further compromised. C/O'Connor asked if a Target could go on the hospital site. DCM/DeStefano explained that it could physically fit but the 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 it would not be feasible because it was 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/egress. 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. JUNE 1, 2004 PAGE 5 CC STUDY SESSION 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 corner, 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. He reported that Calvary Chapel was moving forward with their sanctuary, bookstore and coffee shop that would generate tax to the City. 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 at 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 several of them, particularly 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-story medical -oriented 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 something 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. JUNE 1, 2004 PAGE 6 CC STUDY SESSION 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 windows 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 those 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 a variance for a four-story building. 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 visibility for 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 current 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. JUNE 1, 2004 PAGE 7 CC STUDY SESSION 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 staff's 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 he would talk with her upon her return. C/O'Connor asked if the 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. 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. A good 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 JUNE 1, 2004 PAGE 8 CC STUDY SESSION 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 would 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 whether the City could create a parking district that would suit the configuration 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. 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 well 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 a 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. JUNE 1, 2004 PAGE 9 CC STUDY 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 Honda felt it had little choice but to move. The City of Industry 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/restaurant, 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 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/carwash portion. He also suggested that a gas station, although not a glamorous use, would be a large revenue generator for D.B. DCM/DeStefano asked Council for input about what they would like to see at the site and not see at the site. DCM/DeStefano responded to M/Zirbes that the dealership was about 2 Y2 acres, Burger King about 1 1/2 acres and the carwash portion about 1-1 'h 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 JUNE 1, 2004 PAGE 10 CC STUDY SESSION 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/lifestyle 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. 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, it would be feasible to 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 enough 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 JUNE 1, 2004 PAGE 11 CC STUDY SESSION 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 the reality of the purchase price, was willing to invest a portion of the $10 million 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 center. 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 couple 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 D with revenue extraction from those units, etc, depending on the state of the economy now and in the 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 at the 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 be experience 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 by an 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 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. JUNE 1, 2004 PAGE 12 CC STUDY SESSION C/Chang felt that regardless of whether the City decided to move forward with Site D as 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 staff's list. Long -Term Projects (10 years): DCM/DeStefano informed the Council that it would 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-term 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 potential land use. CM/Lowry suggested that if the Council had a vision for the golf course, for instance, it should be placed 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 was 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 staff's 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't get started; and on that note, the budget requests were a starting step. Staff's 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 JUNE 1, 2004 PAGE 13 CC STUDY SESSION acquire the golf course property and present the findings to Council for their acceptance and determination of whether the matter should be placed 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 opportunities. 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 accomplished 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 should the AEFiA 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. 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 restaurants. 2. Review of Proposed FY2004-2005 Draft Budget JUNE 1, 2004 PAGE 14 CC STUDY SESSION CM/Lowry referred Council to Page 3 of the itemized budget documents and the $763,340 of un -appropriated 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 because 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 — evaluate 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 of Summitridge 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 15 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. at the table as equal partners with the City of Industry. JUNE 1, 2004 PAGE 16 CC STUDY SESSION C/O'Connor pointed out that the aforementioned proposal aligned with what the Local Governmental Services Commission was attempting to accomplish. 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 proceeds. 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 of the 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 staff's 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 school 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 a 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. JUNE 1, 2004 PAGE 17 CC STUDY SESSION 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. 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 lfor 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 request 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. JUNE 1, 2004 PAGE 18 CC STUDY SESSION 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. 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 it was on staff's radar, there was 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 Bar Center budget includes an expected net of $200,000. Although the budget says $600,000 for operating costs and $300,000 revenue, $100,000 of the operating cost was not described and a portion of that could be put toward the future repair and maintenance fund requested by C/Huff. JUNE 1, 2004 PAGE 19 CC STUDY SESSION 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 it would reside on personal property. M/,_ ,bes said it was intended to be in the public right-of-way. Cf,!Lowr<j asked Council if they wanted to exclude capital items from the geno,ral budget and show a surplus to address other items during the year. MPT/Herrera suggested that all of the items listed be approved leaving ,$250,0,00 for items on the Council's list of 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 allowed 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 -appropriating the balances in the open purchase orders after July 1 because they would be shown as use of funds 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 JUNE 1, 2004 PAGE 20 CC STUDY SESSION 2004. 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 ;ci��lar meeting at 6:31 p.m. 4ia . Lowry, City CI The foregoing minutes are hereby approved this lath day of June , .�.Zkq—S, Mayor 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/Government 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, Senior Accountant; and Tommye Cribbins, Deputy City Clerk. Michael Jenkins, City Attorney arrived at 4:07 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 of the City, and reviewed the proposed FY2004-05 budget. PLEDGE OF ALLEGIANCE: Mayor Zirbes fed 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 he would be moving to Arizona to be closer to his daughter and would open another business. He thanked the community for 20 good years in D.B. and said the restaurant would continue to serve the residents. NEW BUSINESS RECOGNITION: 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 to become a principal in Huntington Beach. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: CM/Lowry announced that the Pomona Unified School District's Measure J Citizens' Oversight Committee was seeking a business community representative. Interested persons should contact Enrique Medina, Assistant Superintendent business Services 397-4800 ext 3031 or obtain an application at Website www.PUSD.or-a 3. PUBLIC COMMENTS: Anna Smith, representing Northminster Presbyterian Church, asked for citywide support and City approval to launch an "Operation Gratitude" program at the 4`h 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 -generating" businesses instead of providing "lifestyle" malls. JUNE 1, 2004 PAGE 3 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/Government 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 — (3rd 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 by the following Roll Call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: 6.1 City Council Minutes: Chang, Huff, O'Connor, MPT/Herrera M/Zirbes None None 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. JUNE 1, 2004 PAGE 4 CITY COUNCIL 6.3 Traffic and Transportation Commission Minutes — Regular Meeting of May 11, 2004 — Received and filed: 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 l! ($13,730) AND CALIFORNIA LAW ENFORCEMENT EQUIPMENT PROGRAM (CLEEP) ($2,270). 6.10 (a) ADOPTED RESOLUTION NO. 2004-23 DECLARING THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS 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 TO LEVY AND COLLECT ASSESSMENTS 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 TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 41 AND DIRECTED THE CITY CLERK TO ADVERTISE 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. JUNE 1, 2004 PAGE 5 CITY COUNCIL 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 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 7. 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 ordinance 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 of ten and one-half (10 1/2) 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: JUNE 1, 2004 PAGE 6 CITY COUNCIL AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: 8. COUNCIL CONSIDERATION: 9. COUNCIL SUBCOMMITTEE COMMENTS: Chang, Huff, O'Connor, MPT/Herrera, M/Zirbes None None None REPORTS/COUNCIL MEMBERS C/O'Connor reported on the Contract Cities Conference attended by representatives 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 the past 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 tires that he would introduce to CSD/Rose for possible use at the City's parks. He felt it would be especially 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. At the 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 Sheriff's Department, an entity that provides very good service to D.B. at a minimal cost. She, C/Huff and DCM/DeStefano recently attended the International Counsel of Shopping Centers Convention, 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 - generating" projects on a couple of pieces of property currently in play in the JUNE 1, 2004 PAGE 7 CITY COUNCIL 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. He continues to actively pursue a supermarket for the 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 at 7:00 a.m. at Heritage Park. 10. ADJOURNMENT: There being no further business to conduct, M/Zirbes adjourned the meeting at 7:44 p.m. 2004. L DA C. LOWRY, CITY CLERK The foregoing minutes are hereby approved this 15thday of June , IRBES, MAYOR