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HomeMy WebLinkAbout06/15/2004 Minutes - Regular MeetingCITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION JUNE 15 2004 STUDY SESSION: Mayor Zirbes called the Study Session to order at 3:07 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; Michael Jenkins, City Attorney; 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; Kim Crews, Senior Administrative Analyst; Sharon Gomez, Senior Management Analyst, Ken DesForges, Assigned Technician -and Tommye Cribbins, Deputy City Clerk. ► City Council Goals and Objectives ► FY2004-2005 Budget Discussion ► Public Comments on Study Session Agenda Items CITY COUNCIL GOALS AND OBJECTIVES: CM/Lowry stated that staff's report included a compilation of input from each of the five Council Members as well as the list of last year's goals and objectives. Staff did not include clean up freeway entrances and improve slopes in the City and that staff was cleaning slopes but not freeway entrances at this point. Also, JCC and the pre -annexation agreement with Shell Oil were removed. C/Huff felt the City should continue working to produce a pre -annexation agreement. CM/Lowry believed that DCM/DeStefano felt this was covered in his Economic Development Decision package that he would present later this evening. Plant more trees was an ongoing budget item and was therefore excluded from the list. Further, staff omitted annexation of the Boy Scout property. MPT/Herrera felt that that issue would be covered under the Sphere of Influence and LAFCO process. JUNE 15, 2004 PAGE 2 CC STUDY SESSION CM/Lowry proposed that ongoing goals not necessarily having a direct impact on the next year's work plan should be eliminated from the current list. She explained that the list was unwieldy and needed to be pared in order for staff to make sense of action -oriented priority matters. M/Zirbes stated that in his opinion, every item should be brought forward and reprioritized so that items would remain on the radar. CM/Lowry asked if Council would be agreeable to two lists — one for short- term goals and one for long-term goals. C/Chang felt Council should prioritize all of its goals based on input from staff and that these types of discussions should be held earlier in the year in preparation for budget considerations. CM/Lowry felt there should be a joint discussion between Council and staff about priorities and how the items might fit into the overall budget, move into the budget discussion and continue with the decision packages. When staff met today to review this matter there was discussion about the study session during. which short-term, mid-term and long-term strategies for economic development were discussed. DCM/DeStefano believed that if the City had $10 million it should keep it a secret and not necessarily establish a detailed game plan as to how the dollars would be spent because the development community would, if given the opportunity, consume every nickel. Instead, the City needed to set forth a general framework for the kinds of things the City might be willing to invest in, for example, but not attach a dollar amount because there was too much information that was yet unknown. CM/Lowry encouraged the Council to make a commitment to follow through with the original plan to use the $10 million for economic development and no longer agonize over whether to do economic development or retire the bonds. She asked Council to give staff a direction to "engage in economic development and find a prudent and appropriate way to invest $10 million." C/Chang agreed with CM/Lowry and DCM/DeStefano. M/Zirbes said he agreed that Economic Development should be a priority and there should be a strong game plan. CM/Lowry said that in that vein, priorities 3, 4, and 8 would be included inside the No. 1 Economic Development goal. C/O'Connor saw economic development as one main goal with objectives listed under that main goal. JUNE 15, 2004 PAGE 3 CC STUDY SESSION CM/Lowry said the bottom line for staff was the work plan so that staff knew how to proceed. Accordingly, at the end of each year Council could determine whether staff was able to complete the goals. CM/Lowry referred to Priority #2 — Signal Management System; ongoing with no outlay of City funds. M/Zirbes pointed out that this was an example of why items needed to remain on the list. Although this item was ongoing and required no outlay of City funds it would require monitoring so that the system was controlled locally and if the item were removed from the list of goals the system would likely fall to the County's control. D.B. knows how its traffic flows and should be in total control of how the system is monitored. CM/Lowry asked for comment on the "dynamic center, the supermarket" and how it related to the #7 goal of "in partnership with -the Chamber and business owners survey the City to see what people want to happen." M/Zirbes believed they should be tied together along with Site D. Site D was under consideration for purchase by a developer and the City needed to make certain the developer understood what the City wanted on the site. Until the developer brought forth a design it would be better for the City to remain proactive. "Evaluating Site D" was purely for economic development reasons so all economic development items should be pulled together. DCM/Doyle concluded that if the goal were to create an economic strategy all of the other items would be bullet points under that goal. C/Chang agreed with M/Zirbes and "work with the Chamber" should also be a subcategory of Economic Development. To him a dynamic/lifestyle center should consist of a commercial complex with a theater, restaurant, retail shopping, etc. M/Zirbes agreed and expanded it to multi -story, mixed use, theater, restaurant and possibly third story co-op apartments. He pointed to Birch Street as an example. He, having spoken to a staff member who lives on Birch Street, felt it would be a great place to live. He also felt that all Council Members were like-minded that these types of things should be explored for Site D unless there were differing thoughts about what the City should be doing with economic development. CM/Lowry verified that the supermarket could be included as a subcategory. The 51h priority was the bond retirement fund included in the decision packages with an estimate of the transfer amount of $800,000. The library goal of creating a strategy if the funding failed was JUNE 15, 2004 PAGE 4 CC STUDY SESSION priority No. 6 but the goal to establish a fund for current library enhancements has a priority of 14, with a priority 20 for studying alternate uses of the library if the funding failed. In short, the library goals pull in opposite directions. Moreover, staff believed that no separate budget appropriation was needed at this time because the grant outcome was unknown. C/O'Connor said that in the event the City were unsuccessful in obtaining the funding would it be another year before the City decided to fund a new library? DCMIDoyle said the Council could decide now that if the application failed the $8 million allocation would be included in the budget or, they could wait until that eventuality and determine the money should be taken out of reserve funds. The other option would be to look at alternative financing mechanisms (go to a vote of the people) to fund the library. Does Council intend to build a library with City money or does Council want staff to pursue other funding measures? MPT/Herrera felt the City did not have 100 percent of the funds to build a new library. She would not want the City to pay for the library in whole but reaching out to the community to see if there was support through an assessment district, for example, might be an option. DCM/Doyle said staff had completed a survey on that possibility and asked if Council would want to update the survey and whether they would want to hold a special election or wait for the next election cycle? If Council wanted to hold a special election, those funds would have to be set aside and the City would be prohibited by law from spending money to promote such a measure. He reminded Council that staff would not know whether the grant application was successful until at least August/September. On that basis, would Council want to appropriate money at this time not knowing whether it would be spent in the next fiscal year? M/Zirbes felt that "talking about alternative uses of that site" could be eliminated from the list because everyone was focused on having a library at Summitridge Park. That left two items under the library goal — to create a strategy to build the library if the State funding failed and establish a fund for the current library. With those two items as a) and b) once the City received word from the State, Council could get together to discuss the matter. He felt last night's task force meeting was very productive with a lot of creative ideas coming from the members. However, there was no reason to talk about this today because if grant funds were forthcoming from the State, the City would be committed to building the library. At this point, with Council concurrence, the third item should be removed, move forward with the Library Task Force and discuss what types of JUNE 15, 2004 PAGE 5 CC STUDY SESSION improvements could be made to the present facility in the interim and how the City would proceed to obtain funds to build the library at the Summitridge location once the City knew its direction. C/Chang felt the Task Force was moving in the right direction during the interim. This item was proposed to come up with a Plan B only in the event the grant funding was not forthcoming and he certainly did not intend for the City to pay for a new library facility. Council concurred to eliminate "study alternative uses of the site if funding fails." C/O'Connor said the "financing mechanisms" should remain. CM/Lowry asked if Council would be open to staff conducting an in-house survey or would they prefer to engage an outside consultant: MPT/Herrera recommended the survey be included as a small section of the monthly newsletter and suggested that residents could call in to a certain telephone number, email, or mail in a tear off response. C/O'Connor asked that information about the possibility of getting a Trader Joe's be printed in the newsletter because she had received numerous calls asking what was happening. DCM/Doyle explained that each tear off would cost the City 47 cents. MPT/Herrera suggested it be a tear off or cut off and that residents could mail back to the City using their own stamps. M/Zirbes agreed and reiterated that this was going to be included under the major topic of economic development. The next item was to hire an economic development professional. Perhaps Council needed to work with the professional to determine what kind of research studies the City needed to do to satisfy companies such as Trader Joe's that residents would indeed shop at these establishments. C/O'Connor asked if hiring an economic professional was over and above the proposed personnel changes to hire a Planning Director and designate DCM/DeStefano as heading the economic development phase to which DCM/DeStefano responded affirmatively. C/Chang felt Council needed to discuss these potential changes. M/Zirbes stated that Larry Kosmot had been advising the City for well over a year and he had not seen any specific or detailed plans from Mr. Kosmot nor had he brought any retailers to the City. The new consultant recently JUNE 15, 2004 PAGE 6 CC STUDY SESSION hired by DCM/DeStefano may prove to be more proficient in this regard. Ii the City hired a consultant, the Council needed to be assured he could produce what the City wanted. In fact, the City's current private open space developer had brought in more interest that any one. If the City were not realizing the kind of results from the professionals and consultants currently being used for something as important as the future economic health of the City, the Council needed the ability to respond quickly. His thought when he listed the item, was for the City to find someone with the connections to reach out and bring in particular businesses that were vital to the long-term economic health of D.B. and that was what he meant when he said "hire an economic development professional." MPT/Herrera recalled that the City did not extend Larry Kosmot's contract to include a specific plan for the City and that it was her intent that the City invest more dollars toward economic development in order to get a specific plan. M/Zirbes assumed that the consultant would be paid from the money already set aside for economic development. C/O'Connor said she interpreted the goal as the City would be hiring an employee and it would be DCM/DeStefano pursuing economic development. That is why she rated the item high. CM/Lowry said that staff felt there would not be a specific person to cure the City's economic needs but that the combination of approaches to projects that DCM/DeStefano described in his decision packages would address economic development. CM/Lowry stated that "annexation" was discussed to some extent and that the "golf course" was included as a decision package in the economic table of five items. M/Zirbes agreed that the "golf course" would be a natural sub item of economic development. CM/Lowry referred to the Trails Master Plan ranked No. 14, specifically addressing the trails around the Diamond Bar Center. To accomplish this goal, staff moved the grant writer to CSD/Rose's department for which no additional funds would be required. Council concurred. The ACE funding was ongoing and MPT/Herrera suggested the item be moved to 'ongoing goals." CM/Lowry agreed. C/Huff said the truck lanes should be moved to "ongoing goals." JUNE 15, 2004 PAGE 7 CC STUDY SESSION CM/Lowry said it would be places next to the ACE item. She explained that as previously discussed, the Sports Complex goal was ongoing and to some extent would be included in Goal #12 — Joint Use Facilities. These items were addressed in CSD/Rose's decision packages with special fund allocations that did not require general fund monies. She stated that the opportunity to deal with Larkstone Park should be forthcoming if that development occurred and that it would not necessarily require a budget appropriation. M/Zirbes asked why "consider the development of a sports complex" was not on the list? CM/Lowry responded that staff felt it had become the actual work plan. "Purchase lots 1 and 61" and "joint use agreements" could be moved under a category of "consider the development of -a sports complex" as sub items. C/O'Connor asked for information on the condition of Lots 1 and 61 and what mitigation needed to be done. M/Zirbes explained that Lots 1 and 61 consisted of about 68 acres and depending on the amount of grading, there would likely be land available for a 30 -acre complex with parking and access most likely from Grand Avenue. He said that Lots 1 and 61 were map and deed restricted properties and were currently on the market as "mitigation" properties meaning there were limited biological amenities and that the City would have to determine their worth. He felt that if the City could find an agreeable price it could capture a parcel of land offering the potential of creating additional sports fields, park space, or a temporary tree nursery for development mitigation. In his opinion, Lots 1 and 61 offered the greatest potential for a future sports park, -park or some other use at a reasonable price and he felt it was an opportunity worth pursuing. In response to C/O'Connor, M/Zirbes said the lots currently belonged to a land bank broker in Texas. M/Zirbes responded to C/Chang that the purchase price originally worked out to just under $2 million. When he spoke with the broker the price was reduced to $1.5 million. Additionally, there was potential for the City to swap one acre of currently owned property for the 68 acres of Lots 1 and 61. C/Chang said he regretted that some years ago the City did not step up to purchase the SunCal property and with that in mind he would like to see the City purchase the land for use or open space. He rated Lots 1 and 61 low -priority because he felt the property could not be developed. The Council could decide to use it as a park. If the community wanted to build JUNE 15, 2004 PAGE 8 CC STUDY SESSION a sports complex on Lots 1 and 61, it would require a vote of the people. He was concerned about taking that kind of action at this time because there were many other items to consider with the City's limited resources and $1.5 or $2 million of the reserve was a huge chunk for a piece of property that would sit unused. He felt it would be better for the City to focus on using its money toward economic development. M/Zirbes rated this item as No. 8. The land may be available five years from now, but with all of the development occurring a developer could easily purchase the property for mitigation purposes. C/Huff suggested the City sell the small piece of property. DCM/DeStefano suggested selling and putting the proceeds toward the much larger piece of land. M/Zirbes said the final price may not be favorable but it should at least be a goal to pursue. His vision of D.B. was that it was a family destination and certain components such as high quality schools, libraries, quality park space, etc. that drew that segment of the population. This city lacks parkland and this offers D.B. an opportunity to increase the number of playable fields at what appears to be a favorable price. C/O'Connor asked why the property was map and deed restricted to which DCM/DeStefano responded that the County restricted the property in the middle 70's when they allowed the subdivision above the property. They took the permissible hillside density and moved the density to the flat area above and came back and deed restricted the balance i.e. transferred the density. M/Zirbes responded to CM/Lowry that the item should be listed as "pursue the purchase of Lots 1 and 61." CM/Lowry reiterated that Item 14 was included with the library goal. Goal 15 "Council and staff team building" offered an interesting discussion when two Council Members gave it a high priority and two Council Members gave it a lower priority making it problematic to plan a consensual event when only two Council Members were particularly interested. M/Zirbes felt that since it was likely one Council Member would be moving on and there would be a new Council Member on board it would be better to promote this for the next year. MPT/Herrera said it would be agreeable with her to wait. She rated it high because it had been on the goals list for a number of years to develop a strategic plan. JUNE 15, 2004 PAGE 9 CC STUDY SESSION M/Zirbes said the makeup of the Council could change once again in a short time. CM/Lowry said the money was set-aside in the current budget for the visioning process that had not occurred. CM/Lowry again emphasized the point that the goals list and the budget contained little pocket appropriations however, the ultimate goal for those items was not clear. To her a strategic plan was not team building and visioning was not a strategic plan. For instance, M/Zirbes just explained how he viewed his community, but she did not hear any of the other four Council Members cheer that opinion. Again, Council and staff have not engaged in that type of discussion. And that is "visioning?" There are a number of different wishes on the wish list. That is one facet of "visioning." So, if Council wanted to have a team building event some time next year there was probably an appropriation opportunity within the budget. Before that happened, however, there needed to be greater discussion about what visioning is. C/Chang believed teambuilding meant working with staff. He felt the goal of the Council was to make certain that the City was going in the right direction and that was why he ranked the item low. At the same time he felt it would be a good idea for Council to discuss a vision for the future of the City. M/Zirbes agreed that it would be important to hear what each Council Member viewed as their vision for the future of the City. C/O'Connor felt the Council needed to work together as a body rather than going five separate ways which was why staff kept asking which way they should go. MPT/Herrera suggested that rather than Council and staff team building it should be Council and staff visioning and that a visioning event should be planned for sometime between January and June of 2005. C/Huff felt it would provide a platform for producing goals and a budget for next year. As leaders, Council Members have an obligation to be as efficient as possible and set a vision for the City that reflects the needs of the citizens and in his opinion, a facilitator would definitely help. M/Zirbes suggested that a visioning session be scheduled for the third or fourth week of January. CM/Lowry said staff was clear on this item JUNE 15, 2004 PAGE 10 CC STUDY SESSION CM/Lowry said that Item 16, Pathfinder Road Improvements, was included in the decision packages with indirect funding that would not require a General Fund appropriation based on the City's success in obtaining federal funds for the Grand Avenue project. Staff believed that if the City were successful in getting federal funds for Grand Ave. General Funds would not be required to do Grand Ave. and those funds would then be available for the Pathfinder Road Improvements Project. C/O'Connor wanted to know why the City was spending money on private property improvements instead of improvements to City property? C/Huff said because they could not be fixed by private property funds. C/O'Connor asked if the residents had been surveyed to determine whether the program was effective. The problem the City faces with private slopes is that individuals do not maintain them uniformly and the City continues to struggle with that issue and whether it would eventually require an assessment district to cure the situation. M/Zirbes suggested that if the City were successful in getting federal monies it could use the money that would have been spent for enhancements on Grand Ave. on Pathfinder Rd. instead, a major thoroughfare into the City. C/O'Connor asked what about the slopes along Diamond Bar Blvd. and could the City use the $400,000 to help irrigate that area to make it look nice? She felt it was wrong to use public funds for one small area. C/Huff said it was a goal only. M/Zirbes explained that the City had an easement over the area where the improvements would be done and there was no easement over privately owned slopes. CM/Lowry stated Site D was incorporated in another goal and that the contiguous neighborhoods/zip code issue was an ongoing and separate item. She asked if Council would concur to remove the "clarifying the goal process" item. Council concurred. C/Chang said that each time Council discusses goals, staff should be invited to provide more input as to whether or not the goal was feasible. CM/Lowry said staff could look into Goal No. 20 without an additional appropriation. She explained that the increases to the allotment do not keep pace with the increased insurance costs. Goal No. 21 was eliminated. Goal No. 22 — "evaluate the business registration" was not JUNE 15, 2004 PAGE 11 CC STUDY SESSION dispatched during the last study session and there was no appropriation to purchase software or pay for third party administration of such a program. M/Zirbes rated it last because he was not in favor of the City assuming the licensing function. He was however, geared to the City pursuing business registration and felt it was the consensus of the Council. CM/Lowry restated the goal "for business registration" only and asked the Council if it would be ranked differently. If Council directed staff to proceed, there would have to be a budget appropriation request approved. M/Zirbes suggested rewording the goal to read as follows: "look to bring the business registration as a requirement to do business in the City in-house at zero cost" and asked that the matter be listed as a sub item under economic development. C/O'Connor did not recall that the Council concurred to do business registration at zero cost to the City. C/Chang said he would prefer to have the cost paid by the registrant. CM/Lowry said that the business registration would be a sub item goal under economic development. C/Huff felt there were many items that could be dropped from the list. C/O'Connor thought staff would redo the list based on tonight's discussion. DCM/Doyle said that if Council concurred to drop items, it should be done on the spot. MPT/Herrera said she would like to see a dollar figure attached to the items because the Council may revise their priorities after seeing what the costs are. Discussion ensued about the street sweeping program. M/Zirbes thought to take some of the revenue from the program and put it into sweeping more frequently, especially during time of increased debris. With consensus of Council the matter was tabled. CM/Lowry referred Council to No. 23 and stated that since the Youth Master Plan was not completed there was no specific budget allocation. JUNE 15, 2004 PAGE 12 CC STUDY SESSION C/O'Connor felt this was similar to the Parks Master Plan wherein the City expended funds to do the plan and then did no follow up and she wanted this item to remain on the radar screen. Goal No. 25 was reviewing sign matters with no specific budget allocation. If Council wishes staff to pursue this goal it would do so with the current staff. C/O'Connor asked if the Torito Plaza sign needed to be fixed. DCM/DeStefano said he looked at the signs and discovered that two businesses and the property owner needed to apply new lettering to the cans. There was, however,no specific code section that addressed pealing paint on signs. He suggested that staff could write the property owner a letter. C/Chang said he would like to see this item as ongoing. DCM/DeStefano said staff's concern about this item was uniformity. For example, some cities required all signs to be blue. Torito Plaza had multi- colored signs as do many other centers. C/O'Connor felt the City should have conformity for signage. M/Zirbes suggested the Planning Commission revisit the Sign Ordinance with an eye toward mitigating disrepair. Council concurred to leave it on the fist of goals and directed the Planning Commission to revisit the Sign Ordinance. C/O'Connor suggested removing Goal #26 because it was too expensive. Aziz Amiri, D.B. Chamber was impressed with the Council's accomplishments and was glad that economic development was a top priority for the Council and staff. He also understood and appreciated CM/Lowry's concern that it was essential for staff to have a clear understanding of the Council's goals and expectations. 2. FY2004-2005 BUDGET DISCUSSION: CM/Lowry indicated that staff, department by department would discuss their specific budget to and comment on important aspects of specific items and that the study session goal was to provide backup information for Council approval during tonight's regular meeting. DOM/Doyle commented that the proposed budget remained status quo with no major changes. The only change was found on Page 25 indicating the City Manager and City Clerk offices were merged. JUNE 15, 2004 PAGE 13 CC STUDY SESSION C/O'Connor asked which budget would include a special election. DCM/Doyle responded that it would be included in the City Clerk's budget and he was not aware of what the cost would be. The cost for the last County election was approximately $48,000 and he assumed it would be slightly more costly for a special election. FD/Magnuson reported that the basic change to the Administration and Support portion of the budget was the incorporation of the bank courier service moved from General Government. Secondly, a $50,000 appropriation was moved from General Government to Administration and Support in anticipation of a retirement or separation opportunities that might presents themselves during the forthcoming fiscal year. Page 37 indicated the Employee Recognitions Program specifically targeted for certificates and plaques, retirement gifts, watches, service pins, etc. On Page 38 was a $12,000 allocation for Education and Training. This item was previously designated as a $7,000 allocation and staff moved an additional $5,000 from the General Government Services Budget to this allocation for purposes of consistency. Decision packages for Employee Recognition Luncheon, Section 125 Plan and Codes and Personnel Regs update. Organization Development pieces with Pacific Institute were removed. DCM/Doyle referred Council to the Information Systems area that indicated a jump in the cost. During the current year the City had a six month contract that staff was requesting be extended for one full year. Staff was very happy with the contract services and excited about the company coming on board. Also included were a number of software maintenance items. In short, the current budget reflected true costs since there were a number of software licenses that were not renewed and those were currently being reviewed by AS/DesForges. Staff also proposed to replace some servers, complete license upgrades and make a concerted effort to keep the licenses current. Further, staff removed the additional Kiosk from the budget and current plans were to move the existing D.B. City Hall Kiosk up to the Diamond Bar Center. Under General Government a number of items were eliminated and moved to other departments. One item that was not included was an allocation for a Diamond Bar Community Foundation grant writer. That item was included in the Parks and Recreation budget. C/O'Connor asked for an explanation of the $7,000 Information Systems Education and Training (Page 41) and in Human Resources Education and Training allocation of $12,000 for a total of $19,000. DCM/Doyle explained that the Education and Training in Human Resources was for general staff and included computer training and other JUNE 15, 2004 PAGE 14 CC STUDY SESSION training and educational opportunities. The Information Systems Education and Training was strictly for the two -person IT staff. AS/DesForges explained that $7,000 was the actual cost for one staff member for the HP and Microsoft Training Center. Last year MIS/DeFriend attended several classes and money for those classes came directly from the General Fund. In keeping with the philosophy to more accurately track the funds this allocation represents the actual line item. C/O'Connor wanted to know if this was specialized training to which DCM/Doyle responded absolutely. AS/DesForges stated that only the hardware (HP) and software (Microsoft) vendors offer these classes. In fact, there are only three such classes offered on the west coast. C/O'Connor asked about the Strategic Planning Program facilitator on Page 47. DCM/Doyle explained that this was the $15,000 allocation for Council's visioning for the community workshop. CM/Lowry said the allocation was in response to an item Council included on its goals list. MPT/Herrera said this item was not a new item and that it had been carried forward for several years. C/O'Connor asked if on Page 50 the $3,000 for employee items was different from the $3,000 allocated in Human Resources. PMS/Blakey explained that employee items were staff shirts and the $3,000 Human Resource allocation was for other items. Within Special Services there was a Cost of Living increase due to changing vendors and increasing the quantity of printing. Also within Professional Services there was an item included in the first draft that was moved to a decision package - a new design for the trade show groups. The second area of change was in the advertising budget. In the past the City obligated its advertising dollars to local publications and now that the Diamond Bar Center was online those advertisements in trade and regional high-end publications were essential and significantly more expensive than local publication advertisements. If the City were to obligate itself to one ad per month in the Chamber publication the budget item would have to be increased by $8,000. JUNE 15, 2004 PAGE 15 CC STUDY SESSION CM/Lowry explained that the City would equally obligate itself to other publications in the community. The nature of the advertising that the Chamber could provide the City would have to change dramatically and the circulation that /the City would have from its $10,000 guaranteed amount of advertising with the Chamber per month would be significantly different because the Chamber would be changing their entire format with respect to how they publish and to whom the materials were mailed. C/Huff was uncertain this was the year to cut back on the Chamber advertising because they were attempting to become a more self-sufficient business. While the Council grumbled about the budget item the Chamber had depended on the City's allocation for its survival. He would like to have the City enter into a three-year agreement, for example, to continue giving them the same payment this year and perhaps cut it down over the next two years so that there would be motivation for them to become more self-sufficient. MPT/Herrera agreed. M/Zirbes said he could not agree because he had not seen the new publication and could not speak to what it would do and what it would cost. C/Huff said the Chamber would have to make a presentation to the Council. M/Zirbes suggested Council could increase the budget, accept a presentation and proposal from the Chamber and make a decision accordingly. CM/Lowry recommended that PIM/Blakey's advertising strategy would be left in tact. C/O'Connor felt the Chamber was looking for a guarantee of $36,000, the amount the City guaranteed last year. DCM/Doyle said staff would add $4,000 to the Economic Development line item for the Chamber of Commerce. DCM/Doyle reported that there were no dollar changes in Public Safety. The major change was to the team. In accordance with the Sheriff's Department recommendation to add a motorcycle officer, the team leader position at the same cost was being eliminated. Accordingly, the team leader was offered and accepted the position of motorcycle officer at the same salary. The LAT position was not included in the original budget however, there was no increase over the prior fiscal year, it was merely not included with monies from COPS funds. JUNE 15, 2004 PAGE 16 CC STUDY SESSION FD/Magnuson explained that the difference in the Sheriff figures from the first budget draft was due to the fact that she did not have current numbers and a correct classification for the team leader. DCM/Doyle continued stating there was no significant impact regarding the Volunteer Patrol. Fire protection that was included for Tres Hermanos; Animal Control Service increased slightly from the first budget projections. There was a significant reduction in Emergency Preparedness from $50,000 to $10,000 because it is not necessary chose not to rehire the consultant doing the Hazard Mitigation Plan. DCM/DeStefano stated that on the Development Services side there was a slight bump over last year for the Planning Division that had to do with salaries. The department was also asking for additional dollars for printing based on a desire to provide more handouts and "how to" manuals for the general public and that there was an increase in Membership and Dues associated with the American Planning Association and others. One of the other changes on Page 74 having to do with Professional Services was videography that was reduced from $15,000 to $3,000 by amending the service for on-call services only and eliminating Business of the Month videos. The Building and Safety budget was significantly increased reflective of an increase in activity that was estimated to occur during this budget year. Staff anticipates construction of a couple of office buildings, hopefully the Home Depot and related residential development and as a result, there will be significantly more revenue offset by additional expenditure. On the Neighborhood Improvement side there was an increase over last year, most of which was in salaries and small tools and equipment. With respect to Economic Development, the budget was decreased over last year due to the business incentive program needing fewer resources. Although SigmaNet was scheduled to leave D.B. in July the City would be responsible for the six months' of 2004 share of the generated sales tax. Based upon the company's growth, staff estimates the City's portion to be $100,000. The Professional Services category was increased by about $15,000 for the additional services expected from Carl Morgan, the new consultant for economic purposes. The Community Development Block Grant Budget on Page 149 remains at about $500,000 approved by the Council in January 2004. One change under Economic Development was a $5,000 recommendation for membership in the San Gabriel Valley Economic Partnership. DCM/DeStefano responded to C/O'Connor that the designee for the Partnership could be a member of Council or staff. CSD/Rose reported that the biggest difference in the Community Services budget was due to the opening of the Diamond Bar Center with a separate budget. The $19,000 administration budget increase was due to moving the grant writer to the Community Services Department as previously JUNE 15, 2004 PAGE 17 CC STUDY SESSION mentioned. He referred Council to the notation marketing allocation for rental brochures. The or may not be done this fiscal year. $10,000 Marketing Efforts. on page 90 regarding the Capital improvements may was eliminated for Special C/O'Connor said she understood there was a problem this past week because the City blocked the Diamond Bar Center driveway with a vehicle that she understood was permitted to be there but unfortunately, a softball team was unable to access the field. If the City installs the electric gate would staff guarantee that the gate would be opened at sunrise? CSD/Rose said that staff needed to talk about that issue. The truck was to have been moved closer to the monument sign but the message did not reach the responsible individual. CSD/Rose reported that one item not listed was the possible replacement of the banquet room projection camera and that staff was currently seeking bids on a new unit. C/O'Connor asked if the current projector could be returned and CSD/Rose said he was told it could not and that instead, the City would use it as a portable unit at the Center. C/Huff suggested staff revisit the fee schedule based on the higher cost unit. M/Zirbes suggested the projector could be sold to another city. CSD/Rose said the projector could be used in other meeting rooms and he felt there was a need for a portable unit. CSD/Rose stated there was only one change in the Park Maintenance budget. The Maple Hills Park restroom roof needed replacement and rather than increase the budget request staff moved $10,000 from Heritage Park. The main difference in the recreation budget was a reallocation of a position to Prop A funds. Staff's goal was to begin selling transit tickets at Diamond Bar Center to accommodate the seniors. Additionally, there were small changes between the Recreation and Diamond Bar Center budgets to eliminate duplication. C/O'Connor pointed out that Page 97 should indicate the 16th birthday party instead of the 151h birthday party. PWD/Liu stated under Professional Services the Public Works Division staff budgeted $50,000 for the SR 57/60 Traffic Management Program in response to JUNE 15, 2004 PAGE 18 CC STUDY SESSION the Caltrans construction activities. Again under Professional Services were line items pertaining to compliance related items. Under contract services staff would be looking at a Pavement Management Program and a Neighborhood Traffic Management Program in this fiscal year. The budget also included $30,000 for speed hump installations. FD/Magnuson reported on the following transfers out: $20,000 Community Support Fund (ongoing), Self -Insurance Fund — same, $35,500 Computer Replacement Fund (new), CIP — changes. DCM/Doyle reported that $180,000 was allocated from the Air Quality AB 2766 fund for computer software in anticipation of possible funding for an on-line permitting system, a GIS System and/or on-line transit sales in the next fiscal year. FD/Magnuson explained the changes in the CIP program. The document presented to the Council tonight shows $286,000 from Proposition 40 for the Summitridge Park restrooms, tot lot and drinking fountain and the number should be $209,600 with the balance of $116,800 from the Park Development Fund. The Transfer out for the CIP from the Park Development Fund would be increased accordingly. C/O'Connor asked what the cost was for constructing a new building at Sycamore Canyon Park. CSD/Rose responded that it would depend on the type of building. A stick built building with a 2000 sq. ft. meeting room and restrooms would cost about $1 million. C/O'Connor recalled that it was a high priority for the Parks and Recreation Commission and asked what Council decided and wondered if Council wanted to consider using a portion of the Park Facilities Fund for the building and CM/Lowry said that CSD/Rose would come back to Council with a presentation in July to review various proposals. FD/Magnuson continued stating the amount under miscellaneous improvements for landscaping on Diamond Bar Blvd. between Maple Hill and Mountain Laurel was changed to $125,730 with funds coming from the Landscape Maintenance District 38. Staff removed the $250,000 General Fund budget item for the Pathfinder median project to a decision package. With those changes, the grand total for CIP was $5,572,295. C/O'Connor questioned why the note for Pathfinder said $600,000. PWD/Liu responded that when he formulated his wish list he took two approaches: Option 1) take the median only for the length of the D.B.H.S. JUNE 15, 2004 PAGE 19 CC STUDY SESSION frontage at a cost of $250,000 and Option 2) take the median from Fern Hollow/Brea Canyon Rd. all the way down to Diamond Bar Blvd. at a cost of $600,000. FD/Magnuson concluded her presentation stating that at its June 8 meeting the Planning Commission approved a resolution finding that the FY 2004-2005 Capital Improvement Program was in conformance with the City's General Plan. Decision Packages: CM/Lowry reported that in consideration of the Decision Packages, the Council had $824,000 of current un -appropriated revenue and a bundle of Decision Packages. The $400,000 economic package for example, would not be required to come out of the current revenue, but out of the fund balance or out of the $10 million allocation for economic development. Secondly, the list of Decision Packages on the second sheet would require an additional $1.9 million from the General Fund. However, included in those numbers were establishing the Bond Reserve Fund for $800,000, a restriction of the already ending fund balance that would not necessarily have to be appropriated out of the current revenues i.e. creating savings accounts out of the reserves. MPT/Herrera asked what amount was budgeted for the bond payments for the coming year. FD/Magnuson explained that monies from the bond proceeds was paying next year's debt service based on a 1.2 percentage rate. When the bonds were issued sufficient dollars were held in reserve to pay the debt service on the loan at 4.5 percent. This amount was earmarked "debt service" and was held by the trustee. That money cannot be drawn down, it is used only to pay the interest. The money has been used to pay the debt service for the past year and three months or so and there is still enough money in the reserve to cover next year's interest. MPT/Herrera believed that since 4.5 percent was set aside and the interest rate was only 1.2 percent, the remaining money should be set aside to pay of the bond earlier if possible. DCM/Doyle explained that the excess money was never budgeted and remains in the General Fund Reserve Account. CM/Lowry said that one way to approach this would be to determine how much money had been saved and restrict that amount in the reserve account or take the extra savings out of the reserves and restrict it in a bond payment fund. She urged the Council not to adopt a policy of restricting current revenues and shrink the "future -building" in order to JUNE 15, 2004 further expand the reserves. PAGE 20 CC STUDY SESSION C/Chang suggested that all or at least 50 percent of the $315,000 should be used — set aside to create a bond retirement fund. At some point the interest rate would go up and the excess should be set aside to take care of that eventuality. At the same time, the City wanted to create funding resources and he felt the City could accomplish both. CM/Lowry suggest the amount to budget could be shown as $250,000, staff could transfer the actual amount and bring forward a resolution defining the restricted fund and the manner in which the money would be transferred. FD/Magnuson wanted to know if she should use the 4.5 interest rate or 5 percent (potential fixed rate). CM/Lowry explained that if selected, the fixed rate would have been 5 percent and if Council wanted to see that actual savings the 5 percent rate should be applied. C/O'Connor asked if the resolution would need to be approved by the Public Financing Authority and the City Council and CM/Lowry responded, the City Council only. CM/Lowry stated that if Council wanted to approve $50,000 for the MTA study in partnership with the City of Industry it could be funded out of Proposition A funds. PWD/Liu proposed that $50,000 for the MTA study and $200,000 for signs could be funded from the sale of Prop A funds. C/O'Connor suggested eliminating the No. 5's. DCM/Doyle said that one of the No. 5's could potentially be done in- house. CM/Lowry confirmed that CSD/Rose's staff could complete the Parks Master Plan update. C/Huff asked if Council could agree to use the $900,000 revenue offset for disposal of property toward the purchase of Lots 1 and 61. If not that, at least include it in a capital acquisition fund. DCM/DeStefano explained that were other issues staff wanted to discuss with Council and that the fundamental issue was to move forward to JUNE 15, 2004 PAGE 21 CC STUDY SESSION dispose of property. CM/Lowry said staff would take this item off of the Decision Packages and insert it in the goals and when the sale was consummated Council could then decide how the money would be used. DCM/Doyle confirmed for C/O'Connor that the first three items on Page 1 of the Decision Packages would fall under the Economic Development goal and would be paid for out of the $10 million economic package. C/Chang felt it would be advisable to use the term Economic Development instead of Redevelopment. Council concurred to eliminate Item #1 and move forward with items 2 and 3 under economic development. DCM/DeStefano said staff hoped that the City of Industry would buy into the Tres Hermanos project (Item No. 4). However, D.B. and Chino Hills needed to proceed toward a plan for their respective futures with or without the City of Industry. CM/Lowry said that if the cities do a good job they would bring a plan that would work for the City of Industry as the property owner as well as for Diamond Bar and Chino Hills. DCM/DeStefano explained that Diamond Bar and Chino Hills would begin looking at •a potential palette of uses. For D.B. it might be relocating the golf course and for Chino Hills it might be relocating Boys Republic. DCM/DeStefano responded to M/Zirbes that it would be prudent to move forward at this time and that it would likely be a two-year planning process for development five to ten years from now. In addition, this works hand -in glove with other economic development pursuits set forth for this year. C/O'Connor asked if Chino Hills was open to this proposal and DCM/DeStefano responded not completely because they have no money budgeted for this project. CM/Lowry said Chino Hills did not have this item in their Budget documents and that they were waiting for THCA representatives to make their recommendation to Chino Hills City Council. D.B. staff had been too busy to bring the matter to Council through THCA. Council concurred to move forward with Item No. 4 - $175,000. M/Zirbes felt the Trade Show Booth should have a priority of No. 1. J JUNE 15, 2004 PAGE 22 CC STUDY SESSION 2004. C/Huff felt it was a necessity for a minimal amount. CM/Lowry asked if the bottom line for Page 1 was less $75,000 for a total of $331,000. Page 2 — Lose the #5 item for a $310,000 savings. C/O'Connor and FD/Magnuson reiterated the elimination of $815,000, $250,000, $10,000, $50,000, $200,000 and $50,000 equaling a bottom line of $532,010 for Page 2. Page 3 - $725,000 total. Council agreed that whatever PUSD was currently spending to maintain the field that would be replaced by the artificial turf should be put back into the maintenance fund. C/Chang felt $20 per hour for use was not onerous. Council concurred to move forward with the first three items on Page 4. CM/Lowry asked Council if they had sufficient information to adopt the budget as amended. There was general Council concurrence. PUBLIC COMMENTS: Delilah Knox Rios, Diamond Bar Chamber of Commerce thanked Council for approving the Chambers funding request and for showing confidence in the organization. There were no public comments offered on the Closed Session agenda items. ADJOURNMENT: With no further business to come before the City Council, M/Zirbes adjourned the Study Session to the Closed Session at 6:37 p.m. Linda C. Lowry, City Cler The foregoing minutes are hereby approved this 6th day of July Bo es, Mayor MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR JUNE 15, 2004 STUDY SESSION: Mayor Zirbes called the Study Session to order at 3:07 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; Michael Jenkins, City Attorney; 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; Kim Crews, Senior Administrative Analyst; Sharon Gomez, Senior Management Analyst, Ken DeForges, Assigned Technician and Tommye Cribbins, Deputy City Clerk. ► City Council Goals and Objectives ► FY 2004-05 Budget Discussion ► Public Comments on Study Session Agenda Items M/Zirbes recessed the Study Session to Closed Session at 6:37 p.m. CLOSED SESSION: Mayor Zirbes called the Closed Session to order at 6:37 p.m. in Room CC -8 of the SCAQMD/Government Center, 21865 Copley Drive. • Conference with Real Property Negotiators: Government Code Section 54956.8 Property: 5.4 acre parcel located on Diamond Bar Boulevard at the Pomona SR 60 freeway to the City; Parcel 2 of Tract 10208 (Assessor's Parcel 8703-002-029). CITY NEGOTIATORS: NEGOTIATING PARTY: Linda Lowry, City Manager; James DeStefano, Deputy City Manager and Michael Jenkins, City Attorney. Canyon Wash, LLC UNDER NEGOTIATION: Price and terms of Payment JUNE 15, 2004 PAGE 2 CITY COUNCIL • Anticipated Litigation — Two cases under Government Code Section 54956.9(b). Pending Litigation — Government Code Section 54956.9 (Chung v. City of D.B. Case No. KC 041832 R) CALL TO ORDER: Mayor Zirbes called the regular City Council meeting to order at 7:04 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. M/Zirbes reported that during the 3:00 p.m. Study Session, Council discussed its goals and objectives for 2003/04 and 2004105, continued the 2004/05 budget discussion and adjourned to Closed Session during which the Council discussed real property negotiations and two anticipated litigation cases and one pending litigation case. There was no reportable action taken during the Closed Session. PLEDGE OF ALLEGIANCE: Council Member Chang led the Pledge of Allegiance. INVOCATION: Monsignor James Loughnane, St. Denis Catholic Church 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; 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; Kim Crews, Senior Administrative Analyst and Tommye Cribbins, Assistant City Clerk. APPROVAL OF AGENDA: Approved as presented. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Council Members O'Connor and Chang presented Certificates to Industry East Project Advisory Committee Members. 1.2 MPT/Herrera presented Recognition Certificates to individuals who completed the City's First Community Emergency Response Team (CERT) Program. Asst. Fire Chief Nieto introduced instructor Kevin Taylor who spoke about the CERT Program. JUNE 15, 2004 PAGE 3 CITY COUNCIL NEW BUSINESS RECOGNITION: 1.3 M/Zirbes presented Certificate Plaque to owner Sun Won, owner of Business of the Month "It's A Grind." 1.4 Ryan Wei, Assistant Public Relations Manager, Project D.R.1.P. (Drought Resistant Indigenous Plants) made a presentation regarding the possibility of cities adopting a practice of requiring new developments to use drought resistant plants in order to save water. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: CM/Lowry announced that today the City received an invitation from Governor Schwarzenegger to gather signatures in remembrance of former President Ronald Reagan that would eventually be bound in book form and presented to the family of Mr. Reagan for The Ronald Reagan Library. Additionally, due to a scheduling conflict the Council would need to calendar an adjourned meeting for June 29, 2004 in order to review the proposed Lewis Development immediately following the Planning Commission's review. MPT/Herrera stated that the proposed project offered economic opportunities for the City and she felt Council should move forward expeditiously to avoid the possibility of losing much needed business opportunities to other jurisdictions. She supported a special June 29 Council meeting. DCM/DeStefano explained to C/Huff that on June 29 the Council would be asked to consider a General Plan change for the hospital (Citrus Valley) property from Commercial to Residential and to consider a Specific Plan and Zone Change that would reclassify a good portion of the 70 acres to Residential for the eventual construction of up to 200 town homes; Commercial for the construction of one big box operator such as Home Depot or Target and related land uses, and an additional sanctuary and parking spaces for expansion of the Calvary Chapel. Further, Council would be asked to review and consider a Development Agreement, setting forth terms, obligations and benefits to the developer and to the City and be asked to take action on the Environmental Assessment for the proposal. Staff was preparing documents for the Planning Commission, a duplicate of which would be forwarded to the Council along with Commissioner Comments following their June 22nd meeting. DCM/DeStefano responded to C/O'Connor that the Council would consider traffic impacts to a certain degree using the Environmental Assessment and that the City had not dealt with a project of this magnitude since incorporation. Public Notice would be 10 days in advance of the June 29 meeting. C/O'Connor was uncomfortable about rushing through the process without first having an opportunity to digest the material. JUNE 15, 2004 PAGE 4 CITY COUNCIL C/Chang believed the project was good for the developer and good for the City, that timing was important and that the process should move forward. He favored a June 29 meeting. Council concurred to adjourn tonight's meeting to June 29, 2004 at 7:30 p.m. 3. PUBLIC COMMENTS: "Cougars on a Mission" a group of concerned students from Chaparral Middle School spoke about their mission to promote a letter writing campaign in support of a new D.B. Library. Marsha Hawkins, Friends of the Diamond Bar Library, thanked the students for their efforts and the Diamond Bar High School Key Club for presenting the Friends of the Library with a $5,000 check toward the new library -building fund. Lydia Plunk asked if an EIR was available for the proposed Lewis project. RESPONSE TO PUBLIC COMMENTS: DCM/DeStefano again stated that the only document that was prepared and transmitted to the Planning Commission was the Environmental Assessment, a copy of which was available at City Hall and the Diamond Bar Library as of Thursday, June 17. 5. SCHEDULE OF FUTURE EVENTS: 5.1 COMMUNITY FOUNDATION MEETING —June 17,2004 — 7:00 p.m., Room CC -8, AQMD/Government Center, 21865 Copley Dr. 5.2 PLANNING COMMISSION MEETING — June 22, 2004 — 7:00 p.m., AQMD/Auditorium, 21865 Copley Dr. 5.3 PARKS AND RECREATION COMMISSION MEETING — June 24, 2004 — 7:00 p.m., Hearing Board Room, AQMD/Government Center, 21865 Copley Dr. 5.4 CONCERT IN THE PARK—Jumpin' Jaz Band - June 30,2004- 6:30- 8:00 p.m., Sycamore Canyon Park, 22930 Golden Springs Drive. 5.5 4T" OF JULY BLAST CONCERT AND FIREWORKS SHOW— (Gregg Young and the 2nd Street Band & "Hot August Night" Tribute to Neil Diamond) - July 4, 2004 — 6:00 -9:30 p.m., Sycamore Canyon Park, 22930 Golden Springs Drive. 5.6 4`h of JULY HOLIDAY — Monday, July 5, 2004 — City Offices will be closed in observance of the July 4`h Holiday. Offices will re -open, Tuesday, July 6, 2004. JUNE 15, 2004 PAGE 5 CITY COUNCIL 5.7 CITY COUNCIL MEETING — July 6, 2004 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive, 6. CONSENT CALENDAR: C/Chang moved, C/O'Connor seconded to approve the Consent Calendar with the exception of Item 6.9. 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 6.1 City Council Minutes: 6.1.1 Approved Study Session Minutes of June 1, 2004 — as submitted. 6.1.2 Approved Regular Meeting Minutes of June 1, 2004 — as submitted. 6.2 Planning Commission Minutes — May 25, 2004 — Received and filed. 6.3 Parks and Recreation Commission Minutes — Regular Meeting of April 29, 2004 — Received and filed: 6.4 APPROVED WARRANT REGISTERS dated June 3, 2004 and June 10, 2004 for a total amount of $418,399.47. 6.5 REJECTED CLAIM FOR DAMAGES — filed by Paul and Barbara Royalty on April 16, 2004. 6.6 ADOPTED RESOLUTION NO. 2004-26: APPROVING THE INSTALLATION OF STOP SIGNS ON PROSPECTORS ROAD AT NORTH ROCK RIVER DRIVE. 6.7 AUTHORIZED INCREASE AMOUNT WITH NAKOMA GROUP BY $5,000 FOR A TOTAL CONTRACT AUTHORIZATION FOR FY 2003- 2004 OF $60,000 AND APPROVED CONTRACT EXTENSION FOR FISCAL YEAR 2004-2005 IN THE AMOUNT OF $112,500. 6.8 ADOPTED RESOLUTION NO. 2004-27: CONFIRMING THE APPOINTMENT OF SPECIAL REPRESENTATIVES TO THE BOARD OF THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS. JUNE 15, 2004 PAGE 6 CITY COUNCIL 6.10 APPROVED COST-SHARING AGREEMENT BETWEEN WALNUT VALLEY WATER DISTRICT (WVWD) AND THE CITY OF DIAMOND BAR FOR SLOPE EROSION REPAIRS WITHIN CITY -OWNED PROPERTY SITUATED BETWEEN WVWD'S EASTGATE RESERVOIRS SITE AND THE RESIDENTIAL PROPERTY AT 828 PANTERA DRIVE AND AUTHORIZED THE CITY MANAGER TO EXECUTE THE AGREEMENT, 6.11 APPROVED AMENDMENT NO.1 TO A PROFESSIONAL SERVICES AGREEMENT WITH BONTERRA CONSULTING IN AN AMOUNT NOT -TO -EXCEED $15,425 FOR PREPARATION OF AN EIR REPORT FOR PROPOSED VESTING TENTATIVE TRACT MAP NO. 53670 (HORIZON PACIFIC/JERRY YEH), 6.12 ADOPTED RESOLUTION NO. 2004-28: ADOPTING THE STATEMENT OF INVESTMENT POLICY. 6.13 APPROVED AMENDMENT NO. 1 TO A PROFESSIONAL AGREEMENT WITH BONTERRA CONSULTING IN AN AMOUNT NOT -TO -EXCEED $77,610 FOR PREPARATION OF AN EIR FOR PROPOSED VESTING TENTATIVE TRACT MAP NO. 53430 (STANLEY CHUNG). 6.14 ADOPTED RESOLUTION NO. 2004-29: SETTING FORTH PERSONNEL RULES AND REGULATIONS FOR CITY EMPLOYEES AND RESCINDING RESOLUTION NO. 2003-45 IN ITS ENTIRETY. 6.15 ADOPTED RESOLUTION NO. 2004-30: OPPOSING CALIFORNIA STATE ASSEMBLY BILL 2406 (BERMUDEZ): FIRE PROTECTION WHICH WOULD MANDATE CONFORMITY TO SPECIFIC RESPONSE TIMES, STAFFING OBJECTIVES, AND REPORTING REQUIREMENT FOR FIRE DEPARTMENTS. 6.16 ADOPTED RESOLUTION NO. 2004-31: SUPPORTING CALIFORNIA STATE ASSEMBLY BILL 1802 (BOGH): ILLEGAL DUMPING: PENALTIES WHICH WOULD INCREASE THE MONETARY FINES FOR ILLEGAL DUMPING OF SOLID WASTE. ITEMS REMOVED FROM CONSENT CALENDAR: 6.9 AMENDMENT TO A CONSULTING SERVICES AGREEMENT WITH GARY L. NEELY FOR GOVERNMENTAL AFFAIRS CONSULTING SERVICES. MPT/Herrera requested that the contract with Mr. Neely be amended to a two-year period instead of a one-year period with a beginning date of July 1, 2004 and continuing through June 30, 2006. JUNE 15, 2004 PAGE 7 CITY COUNCIL AYES: NOES: ABSENT: COUNCIL MEMBERS COUNCIL MEMBERS COUNCIL MEMBERS 7. PUBLIC HEARINGS: None 8. COUNCIL CONSIDERATION: Huff, MPT/Herrera, M/ irbes Chang, O'Connor None 8.1 (a) ADOPT RESOLUTION NO. 2004-32: APPROVING AND ADOPTING A BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2004 AND ENDING .TUNE 30, 2005, INCLUDING MAINTENANCE AND OPERATIONS, SPECIAL FUNDS AND CAPITAL IMPROVEMENTS AND APPROPRIATING FUNDS FOR ACCOUNTS, DEPARTMENTS, DIVISIONS, OBJECTS AND PURPOSES THEREIN SET FORTH. CM/Lowry reported that in accordance with Council's reviews of goals for FY 2004/2005 and approval of decisions packages and budget items this item sets forth a total General Fund appropriation of $15,217,750. In addition, $581,475 would be appropriated from the General Fund Reserve to include Economic Development decision packages and establish a Bond Reserve Fund. Council approved an additional appropriation of $345,000 of Proposition A funds to pay for new street signs and a transportation study to be shared with the City of Industry regarding the future SR57/60 interchange construction. Council also approved an additional $1,575,100 in a combination of Proposition 12 and 40 funds for Sycamore Canyon Park improvements and implementation of the first phase recommendations from the Sports Complex Task Force report. There were no public comments offered. MPT/Herrera moved, C/Chang seconded to adopt Resolution No. 2004-32. 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 (b) ADOPT RESOLUTION NO. 2004-33: SETTING THE PROPOSITION 4 (GANN) APPROPRIATIONS LIMIT FOR FISCAL YEAR 2004-2005 FOR THE CITY IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE. CM/Lowry reported that in 1979 voters passed the Gann limit. Accordingly, the City sets forth its spending cap each year. Each year JUNE 15, 2004 PAGE 8 CITY COUNCIL the cap is increased to the greatest extent possible. With a cap in excess of $24 million and fund subject to the cap being less than $10 million, there is room to spare. There were no publiccomments offered. MPT/Herrera moved, C/O'Connor seconded to adopt Resolution No. 2004-33. 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 (c) ADOPTED RESOLUTION NO. 2004-34. ESTABLISHING SALARY RANGES FOR ALL CLASSES OF EMPLOYMENT EFFECTIVE THE PAY PERIOD COMMENCING JULY 1, 2004 AND RESCINDING RESOLUTION NO. 2003-43 IN ITS ENTIRETY. CM/Lowry explained that each year when Council approves the budget, staff brings forward an accompanying resolution setting forth salary ranges for the City employees. The proposed schedule replaces last year's schedule and includes the two -percent Cost of Living increase included in the budget document and enters into the salary schedule the Planning Deputy position that was approved by Council in the decision packages. There were no public comments offered. C/O'Connor moved, C/Chang seconded to adopt Resolution No. 2004-34. Motion carried by the following Rall Call vote: AYES: COUNCIL MEMBERS: Chang, Huff, O'Connor, MPT/Herrera, M/Zirbes NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 8.2 CONSIDERATION OF AN ADVISORY COMMITTEE FOR THE CITY OF INDUSTRY BUSINESS CENTER PROJECT. DCM/DeStefano stated that this matter is coming to Council at the request of C/O'Connor and involves the pending almost 600 -acre City of Industry project that encompasses Industrial, Office and Retail. The project has issues that could affect D.B. residents and businesses and Council is requested to determine whether an advisory committee should be created to provide comments to the City Council. JUNE 15, 2004 PAGE 9 CITY COUNCIL MPT/Herrera felt that advisory committees were important to the governmental process and certainly the Industry East Advisory Committee played an important role in obtaining mitigation. However, she supported such a committee only when the City received more definitive plans from the City of Industry. MPT/Herrera moved that an Industry Project Advisory Committee be created and activated when the City of D.B. received a more specific plan from the City of Industry. C/Huff seconded the motion for purposes of discussion. C/Huff recommended that Council form a subcommittee to watch the City of Industry development. MPT/Herrera said her motion was intended to create a committee but not fill the positions until the information was available. C/Huff concurred and suggested two Council Members be appointed to serve as a subcommittee later to interface with the citizen's committee. MPT/Herrera accepted C/Huff's amendment. C/O'Connor felt that since the City had received an EIR and must comment on the document by July 16 there was, in fact, information for the committee to review. DCM/DeStefano explained that staff would be responding to the EIR and the citizens could respond on their own if they chose to do so. C/Chang felt that due to the complexity of the project the City should take time to be prepared about its response. He asked if the July 16 date could be postponed? CA/Jenkins responded that the City could make the request but the City of Industry was under no obligation to provide an extension. DCM/DeStefano responded to MPT/Herrera that the City would respond to the EIR. There were no public comments offered. C/O'Connor encouraged residents to review the EIR prior to the response deadline. C/Huff cautioned citizens that the City would offer a more technical response to the EIR and that D.B. would be working with the City of Industry in a proactive manner to benefit its residents. JUNE 15, 2004 PAGE 10 CITY COUNCIL MPT/Herrera restated her motion with the inclusion of a Council sub- committee being appointed. 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 9. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBERS COMMENTS: C/Chang spoke about the support for the "Paint the Town" project and thanked the many volunteers who participated. The Library Task Force continues to pursue possibilities for the current facility and a new facility if the City were successful in obtaining the grant funds. He thanked the Task Force members for their participation and input. He stated that the nation lost a great leader with the passing of former President Ronald Reagan. Mr. Reagan ended the cold war without firing a shot and without losing one soldier and, he avoided the possibility of a nuclear disaster. Because of his actions the world is a more peaceful place today. Mr. Reagan is a treasure to a nation and world. C/Huff spoke about his participation as a member of the Boys' State sponsored by the American Legion and his opportunity to travel to Sacramento to listen to then Governor Reagan spread his optimism and joy about being a Californian. He shook the hand of Governor Reagan and got his autograph. Governor and then President Reagan led this nation in an unparalleled fashion and will be sorely missed. C/O'Connor stated that she had been honored to meet Ronald Reagan in 1964. She echoed the words of her colleagues and was very sorry that Mr. Reagan and his family were faced with such overwhelming challenges during the last 10 years of his life. This afternoon she returned from a two-day California Joint Powers Insurance Authority Conference, one of the most informative meetings she had attended in some time. She especially enjoyed interacting with Council Members from cities through southern California and listening to CA/Jenkins address the group in his capacity as opening speaker on Monday morning. MPT/Herrera reassured residents that D.B. was fiscally sound as compared with some surrounding cities. Representatives from other cities at the League of California Cities State Board told her they were considering imposing utility taxes to help balance their budgets. She was proud of the Council and staff for practicing due diligence and accumulating reserves over time. This City had made wise decisions and done remarkable things and she was grateful to live in D.B. and not in a city that was in serious financial jeopardy. JUNE 15, 2004 PAGE 11 CITY COUNCIL M/Zirbes thanked staff for guiding the Council through the budget this year and thanked Council Members for their cooperation and positive attitude during the study sessions. D.B. was in excellent financial shape and was able to continue providing the quality of life in the City the residents had grown to expect. There are exciting projects on the horizon, some of which were approved in the budget documents this evening. He was very optimistic that this would be an excellent year for the City and that next year would look even better. Last meeting he spoke to the residents about the need for revenue in order to continue to fund the types of services and programs the residents had come to expect and with that in mind, he hoped residents would participate in the June 29 meeting to discuss a major project that had been pending for about a year. This project represented a potential for 200 new housing units and a major retail center with related traffic impacts. He asked residents to join Council on June 29 and stay informed. Staff had kept Council apprised of this matter for more than a year and the Council would not make a decision unless it was in the best interest of the community. He, too, paid homage to former President Reagan saying that though he had been out of site for the past 10 years, his achievements were not out of mind. 10. ADJOURNMENT: There being no further business to conduct, M/Zirbes adjourned the meeting at 8:42 p.m. to June 29, 2004 at 1:30 p.m. and in memory of Ronald Reagan, former Governor of the State of California and the 40'h President of the United States of Amertta. /% Lifida C. Lowry, CIT` L1,ERK The foregoing minutes are hereby approved this 6th day of jij u 2004. Bob it es, MAYOR