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HomeMy WebLinkAbout6/3/2008 Minutes - Regular MeetingCITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION JUNE 3, 2008 STUDY SESSION: M/Tanaka called the Study Session to order at 5:16 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, Herrera, Tye, Mayor Pro Tem Everett (telephonically) and Mayor Tanaka. Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Mike Jenkins, City Attorney; Bob Rose, Community Services Director; David Liu, Public Works Director; Linda Magnuson, Finance Director; Susan Full, Senior Accountant; Nancy Fong, Community Development Director; Greg Gubman, Planning Manager; Ken Desforges, IS Director; Ryan McLean, Assistant to City Manager; Anthony Santos, Management Analyst; Joyce Lee, Sr. Management Analyst; Rick Yee, Senior Engineer; Kimberly Molina; Associate Engineer; Vicki Cross, Human Resources Manager, and Tommye Cribbins, City Clerk, Also Present: Lt. Maxey ► DISCUSSION AND ACTION REGARDING FISCAL YEAR 2008-2009 BUDGET: (Continued from May 20, 2008). CM/DeStefano gave a brief update and spoke about the most recent General Fund resource needs of $21,150,000 with appropriations estimated at $19,257,000. Staff anticipates about $1.9 million into the General Fund as a result of this year's efforts that includes the sale of the Summitridge property at a higher value than discussed in Closed Session. A budget adjustment will be included upon sale of the property. Almost every department has seen a variety of budget cuts as a result of this year's process resulting in a $1 million decrease in appropriations from the FY 2007/2008 budget. C/Herrera said that one of her questions to CM/DeStefano was what the City planned to do if it did not receive all of its anticipated revenues. CM/DeStefano stated that staff did not expect those kinds of hits this year because of built in protections. Unless something dramatic happens, D.B. should be protected far more so than in the last several years. Should the City fall into a position of having to find $1 million for example, most likely the City would first look to defer major capital projects and major purchases of equipment or materials that required General Fund dollars. For example, the proposed change -out of several computers could be deferred. Other cities are struggling because they are much more dependent on sales tax and have burdensome retirement systems that are haunting them. Pomona with a full-service city structure has different requirements. Their budget for their police department alone is almost JUNE 37 2008 PAGE 2 CC STUDY SESSION $50 million and for the fire department, almost $22 million. The value of D.B.'s contract structure has served the City extraordinarily well and provided protections. D.B. is far more prepared to weather the storm than many cities and has significantly more reserves than many cities, which would allow the City to weather a $1 million hit were it to be required. CM/DeStefano responded to C/Chang that the fire services are provided via the district that covers the area. D.B. property owners pay $50-75 per parcel directly to the County through property taxes to pay for fire services. The $11,000 is primarily for the Tres Hermanos "Wildland Fire Fee." C/Chang asked for an explanation of the Special Fund budget total. D/Magnuson responded roughly $7 million. CM/DeStefano said that a couple of Council Members asked about establishment of rates for Lighting and Landscape Districts for next year. He explained that the rates are not changing because it requires an election and the Council has not made a decision yet. The subcommittee is investigating the matter and will need a few more months in order to bring the results to the Council. The solid waste special funds have also been diminishing overtime because they were based on the AB 939 fee which was set many years ago. One of the action items this evening is consideration of eliminating support of the solid waste special funds. MPT/Everett asked about tree maintenance and Public Safety. CM/DeStefano said that this year staff is recommending the City scale back from a two-year to five-year tree -trimming cycle to save about $100,000 per year. ACM/Doyle responding to MPT/Everett indicated that the $200,000 safety cut was to eliminate a fourth motorcycle officer. Because COPS funds are drying up and the City will no longer be receiving funds to pay for a particular special funds deputy, staff is recommending that the deputy remain on the public safety policing team and be rotated back into the patrol function. CM/DeStefano responded to C/Chang that there are budget decreases throughout the document that add up to the total $1 million decrease. With no further questions, M/Tanaka went on to the second item on the agenda. JUNE 3, 2008 PAGE 3 CC STUDY SESSION ► DISCUSSION AND ACTION REGARDING GOALS AND OBJECTIVES REPORT FOR FISCAL YEAR 2008/09: (Continued from May 20, 2008). CM/DeStefano updated the Council on the revised list. MPT/Everett suggested that the wording regarding sustainability be enhanced. C/Herrera said it seemed to her that the language suggested by staff would be a step 1 focus whereas what MPT/Everett proposes is a Step 2 and Step 3 strategy. She recommended that Council proceed carefully with one step at a time. MPT/Everett felt that it should be all encompassing. Following discussion it was decided not to change the wording. M/Tanaka responding to MPT/Everett stated that the four priority projects would be listed in parentheses after the third bullet under transportation. C/Tye felt that under Traffic Mitigation, bullet 5 Neighborhood Traffic Management Plan should indicate that action will be taken when needed. CM/DeStefano indicated that staff would "wordsmith" that sentence. C/Herrera complimented staff on the preparation of the budget and goals. CM/DeStefano thanked department heads and division managers for their assistance in refining the budget and refining their focus on goals. PUBLIC COMMENTS: None Offered. ADJOURNMENT: With no further business to come before the City Council, M/Tanaka adjourned the Study Session at 5:50 p.m. ', /! / TOMMYrE CRIBBINS, City Clerk The foregoing minutes are hereby approved this 177, day of MACK TANAKA, Mayor 1 C MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR JUNE 3, 2008 CLOSED SESSION: 5:00 p.m. — Room CC -8 Public Comments on Closed Session Agenda ► Government Code Section 54956.8 — Conference with Real Property Negotiator Property Address Agency Negotiator: Under Negotiation: STUDY SESSION: Summitridge Mini -Park APN#8701013902 City Manager Price and Terms 5:16 P.M. — Room CC -8 ► Discussion and Action Regarding Fiscal Year 2008/2009 Budget: (Continued from May 20, 2008). ON. Discussion and Action Regarding Goals and Objectives Report for Fiscal Year 2008/2009: (Continued from May 20, 2008). Public Comments: None Offered Adjourned to Regular Meeting at 5:50 p.m. CALL TO ORDER: Mayor Tanaka called the regular City Council meeting to order at 6:30 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. PLEDGE OF ALLEGIANCE: D.B. Troop 737 presented the colors and led the Pledge of Allegiance. INVOCATION: Darlene Jones, Outreach Pastor, Diamond Canyon Christian Church gave the invocation. CM/DeStefano reported that from the Closed Session there was no reportable action. Further, CM/DeStefano reported that during the Study Session the City Council worked with staff on last minute budget items and questions in preparation for adopting the Budget later this evening. In addition, the City Council finalized its Goals and Objectives, a component of the budget process. ROLL CALL: Council Members Chang, Herrera, Tye, Mayor Pro Tem Everett (telephonically) and Mayor Tanaka. JUNE 3, 2008 PAGE 2 CITY COUNCIL Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Mike Jenkins, City Attorney; Bob Rose, Community Services Director; David Liu, Public Works Director; Linda Magnuson, Finance Director; Nancy Fong, Community Development Director; Greg Gubman, Planning Manager; Ryan McLean, Assistant to City Manager; Rick Yee, Senior Engineer; Joyce Lee, Senior Management Analyst; Vicki Cross, Human Resources Manager; Anthony Santos, Management Analyst; Patrick Gallegos, Management Analyst; Marsha Roa, Public Information Manager; and, Tommye Cribbins, City Clerk. APPROVAL OF AGENDA: As Presented. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: BUSINESS OF THE MONTH 1.1 M/Tanaka presented City Tile to Ken's Ace Hardware, 303 S. Diamond Bar Boulevard as Business of the Month for June 2008. MTanaka advised that he would deliver the Tile to Ken's Ace Hardware. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None Offered. 3. PUBLIC COMMENTS: Carolyn Anderson reminded residents that if they have a damaged or broken cart they are entitled to free replacement by calling 1-800-266-7551. In addition, residents are entitled to have four bulky item pickups per year which is included in the monthly rate — any items up to three cubic yards that do not fit into the regular, recycling or green waste carts. 4. RESPONSE TO PUBLIC COMMENTS: None 5. SCHEDULE OF FUTURE EVENTS: 5.1 Planning Commission Meeting — June 10, 2008 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive. 5.2 Traffic and Transportation Commission Meeting — June 12, 2008 — 7:00 p.m., AQMD/Government Center Hearing Board Room, 21865 Copley Drive. 5.3 Free Electronic Waste Collection Event — June 14 & 15, 2008 — 9:00 a.m. — 4:00 p.m., Diamond Bar City Hall, 21865 Copley Drive. 5.4 City Council Meeting — June 17, 2008 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive. JUNE 3, 2008 PAGE 3 CITY COUNCIL FISCAL YEAR 2008-2009 MUNICIPAL BUDGET REVIEW AND COUNCIL CONSIDERATION: ADOPT RESOLUTION NO. 2008-17; APPROVING AND ADOPTING A BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2008 AND ENDING JUNE 30, 2009 INCLUDING MAINTENANCE AND OPERATIONS, SPECIAL FUNDS AND CAPITAL IMPROVEMENTS AND APPROPRIATING FUNDS FOR ACCOUNTS, DEPARTMENTS, DIVISIONS, OBJECTS AND PURPOSES THEREIN SET FORTH. C/Herrera felt that staff had done a good job informing the City Council on the various budget considerations during past Study Sessions. She said she was pleased with staff's proposed budgets. Many nearby cities are struggling with their budgets and finding it necessary to cut many items. D.B. is in a very good fiscal position with healthy reserves and a balanced budget due to fiscally prudent policies and excellent management on the part of both City Council and staff. She congratulated staff for the hard work in preparing the proposed budget. C/Tye hoped that citizens would realize how hard staff and Council had worked to put together a good budget and how much the Council appreciates that staff spends the City's money as if it were their own. Since the Council last met Vallejo filed for bankruptcy and West Covina is grappling with budget shortfalls. This and previous Councils have been in the habit of making sure that the City's budget is in order. C/Chang said that staff and the Council had spent several months preparing the budget. The City's resources are somewhat limited due to the lack of industrialization, commercialization and lack of a redevelopment agency. In spite of that, D.B. should be very proud of the way it conducts business with a balanced budget. The City's Councils and staff have worked together over the years in the best interest of its residents. MPT/Everett commented that by good planning the City has been able to preserve its resources and supported the budget as presented this evening. M/Tanaka thanked staff for an outstanding budget and his colleagues for their support and diligence. There was no one present who wished to speak on this matter. C/Herrera moved, C/Chang seconded, to adopt Resolution No. 2008-17; Approving and Adopting a Budget for the Fiscal year commenting July 1, 2008 ending June 30, 2009 including Maintenance and Operations, Special Funds and Capital Improvements and Appropriating Funds for Accounts, Departments, Divisions, Objects and Purposes therein set forth. Motion carried by the following Roll Call vote: JUNE 3, 2008 PAGE 4 CITY COUNCIL AYES: COUNCIL MEMBERS: Chang, Herrera, Tye, MPT/Everett (telephonically), M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 6. CONSENT CALENDAR: C/Tye moved, C/Herrera seconded, to approve the Consent Calendar with the exception of Items 6.1(b) and 6.15. Motion carried by the following Roll Call: 6.2 RECEIVED AND FILED PARKS AND RECREATION COMMISSION MEETING MINUTES — Regular meeting of April 24, 2008. 6.3 RECEIVED AND FILED TRAFFIC AND TRANSPORTATION COMMISSION MINUTES: 6.3.1 Regular Meeting of March 13, 2008. 6.3.2 Regular Meeting of April 10, 2008. 6.4 RATIFIED CHECK REGISTER — dated May 15, 2008 through May 28, 2008 totaling $704,837. 6.5 APPROVED TREASURER'S STATEMENT — Month of April 2008 6.6 ADOPTED RESOLUTION NO. 2008-18: SETTING THE PROPOSITION 4 (GANN) APPROPRIATIONS LIMIT FOR FISCAL YEAR 2008-2009 IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE. 6.7 ADOPTED RESOLUTION NO. 2008-19: ADOPTING THE STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2008- 2009. 6.8 ADOPTED RESOLUTION NO. 2008-20: ESTABLISHING A COMPENSATION PLAN CONSISTING OF SALARY RANGES FOR ALL CLASSES OF EMPLOYMENT AND BENEFITS FOR ALL CLASSES OF EMPLOYMENT EFFECTIVE JULY 1, 2008; RESCINDING RESOLUTION NO. 2007-46, IN ITS ENTIRETY. 6.9 a) ADOPTED RESOLUTION NO. 2008-21: DECLARING THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENT FOR LANDSCAPE DISTRICT NO. 38 AND DIRECT THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JUNE 17, 2008 REGULAR MEETING. JUNE 3, 2008 PAGE 5 CITY COUNCIL b) ADOPTED RESOLUTION NO. 2008-22: DECLARING THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 39 AND DIRECT THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT ITS JUNE 17, 2008 REGULAR MEETING. c) ADOPTED RESOLUTION NO. 2008-23: DECLARING THE CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE DISTRICT NO. 41 AND DIRECT THE CITY CLERK TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT ITS JUNE 17, 2008 REGULAR MEETING. 6.10 CONTRACT AMENDMENTS FOR COMMUNITY SERVICES DEPARTMENT: a) APPROVED CONTRACT AMENDMENT NO.7 WITH EXCEL LANDSCAPING FOR LANDSCAPE MAINTENANCE SERVICES AT LIGHTING AND LANDSCAPING MAINTENANCE DISTRICTS #38, #39 AND #41 FOR THE 2008/2009 FISCAL YEAR IN THE AMOUNT OF $302,195; INCLUDING CPI INCREASE OF 3.1% AND A CONTINGENCY AMOUNT OF $34,000 FOR AS -NEEDED WORK, FOR A TOTAL AUTHORIZATION OF $336,195 FOR FISCAL YEAR 2008/2009. b) APPROVED CONTRACT AMENDMENT NO. 4 TO EXTEND THE VENDOR SERVICES CONTRACT WITH D.H. MAINTENANCE SERVICES FOR THE TERM OF JULY 1, 2008 THROUGH JUNE 30, 2009 TO PROVIDE JANITORIAL AND BUILDING MAINTENANCE SERVICES AT THE DIAMOND BAR CENTER, HERITAGE PARK COMMUNITY CENTER AND PANTERA PARK ACTIVITY ROOM IN THE AMOUNT OF $155,832 AND AS -NEEDED WORK IN THE AMOUNT OF $75,000 FOR A TOTAL AUTHORIZATION NOT -TO - EXCEED $230,832 FOR FISCAL YEAR 2008/2009. c) APPROVED CONTRACT AMENDMENT NO. 8 TO EXTEND THE VENDOR SERVICES CONTRACT WITH VALLEYCREST LANDSCAPE MAINTENANCE FOR THE TERM OF JULY 1, 2008 THROUGH JUNE 30, 2009 TO PROVIDE LANDSCAPE MAINTENANCE SERVICES AT NINE (9) CITY PARKS, THE GROUNDS OF THE DIAMOND BAR CENTER, THE FOOTBALL FIELD AND SLOPE AT LORBEER MIDDLE SCHOOL, AND THE TRAIL/TRAIL HEAD AT SYCAMORE CANYON PARK, WITH A C.P.I. INCREASE OF 4% FOR AN ANNUAL AMOUNT OF $362,995 PLUS AS -NEEDED WORK IN THE AMOUNT OF $110,000 FOR A TOTAL AUTHORIZATION NOT TO EXCEED $472,995 FOR FISCAL YEAR 2008-2009. JUNE 3, 2008 PAGE 6 CITY COUNCIL d) APPROVED CONTRACT AMENDMENT NO. 4 TO THE CONTRACT WITH WEST COAST ARBORISTS FOR CITYWIDE TREE MAINTENANCE AND WATERING SERVICES FOR THE 2008/2009 FISCAL YEAR IN THE AMOUNT NO -TO -EXCEED $177,800 INCLUDING A 3.1% C.P.I UNIT PRICE INCREASE. 6.11 APPROVED EXTENSION OF CONTRACT WITH MCE CORPORATION FOR THREE YEARS (FISCAL YEAR 2008-2009; FISCAL YEAR 2009-2010, AND FISCAL YEAR 2010-2011) FOR STREET MAINTENANCE SERVICES. 6.12 a) APPROVED PLANS AND SPECIFICATIONS AND AWARDED CONSTRUCTION CONTRACT FOR THE GRAND AVENUE STREET IMPROVEMENTS PROJECT, PHASE III IN THE AMOUNT OF $1,098,901 TO HARDY & HARPER, INC. AND AUTHORIZED A CONTINGENCY AMOUNT OF $100,000 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $1,198,901. b) APPROVED CONTRACT AMENDMENT WITH DMS CONSULTANTS, INC. (DMS) FOR CONSTRUCTION MANAGEMENT SERVICES IN THE AMOUNT OF $121,320 PLUS A CONTINGENCY AMOUNT OF $10,000 FOR CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $131,320 FOR THE GRAND AVENUE STREET IMPROVEMENTS PROJECT, PHASE III. 6.13 INCREASED THE APPROPRIATION FOR THE TRAFFIC MANAGEMENT SYSTEM PROJECT IN THE CAPITAL IMPROVEMENT FUND BY $3,650 TO BE FUNDED WITH AN INCREASE IN ESTIMATED REVENUE FROM L.A. COUNTY AND APPROVED CONTRACT AMENDMENT WITH TRANSCORE ITS, LLC FOR PROCUREMENT OF ETHERNET BASED COMMUNICATIONS EQUIPMENT FOR THE TRAFFIC MANAGEMENT SYSTEM IN THE AMOUNT OF $93,650. 6.14 ADOPTED RESOLUTION NO. 2008-24: INSTALLING 350 FEET OF RED CURB SOUTH OF THE CURB RETURN AT THE ENTRYWAY OF THE WALNUT VALLEY UNIFIED SCHOOL DISTRICT (WVUSD) ALONG THE EAST SIDE OF LEMON AVENUE. MATTERS WITHDRAWN FROM CONSENT CALENDAR: 6.1(b) C/Tye asked that the Minutes reflect that M/Tanaka presented a City Tile to Minuteman Press and not he. ,JUNE 3, 2008 PAGE 7 CITY COUNCIL 6.15 ADOPTED RESOLUTION NO. 2008-25: SUPPORTING AB844 (BERRYHILL), REQUIRING SCRAP METAL DEALERS AND RECYCLERS TO COMPLY WITH ADDITIONAL RECORD-KEEPING AND IDENTIFICATION PROCEDURES TO ENSURE THEY ARE NOT PURCHASING STOLEN MATERIALS. C/Chang commented on this item. C/Chang moved, C/Tye seconded to approve the Minutes as corrected; and, adopt Resolution No. 2008-25. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, Tye, MPT/Everett (telephonically), M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 7. PUBLIC HEARINGS: None 8. COUNCIL CONSIDERATION: 8.1 ADOPT RESOLUTION NO. 2008-26: AMENDING AB939 FEES FOR INTEGRATED WASTE MANAGEMENT PLAN/PROGRAM. PWD/Liu reported that Assembly Bill 939 also known as the California Integrated Waste Management Act of 1989, established a solid waste mandate that required cities to implement plans and programs for source reduction, reuse and recycling as integrated waste management practices. To offset the cost of preparing and implementing a plan, the City in 1990 established AB939 fees for residential and commercial accounts. In 2000 the fee was increased from 35 to 75 cents per residential subscriber and the commercial rates remained at the 1990 rate of $6 per bin and $40 per roll offs. While costs for these programs have increased over the years, fees have not been adjusted to meet the increase. At present the City collects an annual average of $215,000 of ABA939 fees. These funds are used to pay for reporting, monitoring of recycling programs, educational outreach activities, giveaways, publications, construction and demolition debris, sharps disposals, street sweeping, street sweeping debris composting, household hazardous waste and drainage device maintenance and cleaning. The street sweeping and storm drain cleaning programs alone totaled $185,000 for fiscal year 2007/2008. In reviewing budgets for the past three years staff noticed the revenue shortage for fiscal years 05, 06 and 07 in the amount of $95,519, 170,643 and $219,082 respectively. In order to update the ABA939 fees in an amount sufficient to pay for the cost for preparing JUNE 3, 2008 PAGE 8 CITY COUNCIL M and implementing the City's integrated waste management plan and program, the adjustment to the ABA939 fees are proposed to be an increase to $1.25 for residential, $12 per bin and $50 per residential roll offs. The adjustments would result in a new monthly total of $21,140 for residential and $17,688 for the commercial/multi-family sector. Staff recommends that the City Council Adopt Resolution No. 2008-26 to help offset the cost of the City's integrated waste management plan and program. M/Tanaka opened the item for public comment. No one spoke on this item. C/Herrera moved, C/Chang seconded to adopt Resolution No. 2008- 26. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, Tye, MPT/Everett (telephonically), M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None APPROVE VALLEY VISTA SERVICES RATE ADJUSTEMENTS FOR CPI AND DISPOSAL COSTS. SMA/Lee stated that in August 2000 the City Council awarded an exclusive contract to Valley Vista Services to collect refuse and recyclables in the commercial/multi-family sectors. The contract with Valley Vista stipulates that the contractor can adjust rates to account for CPI, disposal and fuel. In April 2008 Valley Vista submitted its annual request for adjustments to the existing rates. For 2008/2009 the rate for a 3 -cubic yard bin collected weekly will be $106.68. The proposed increase when compared with surrounding cities indicates that D.B. commercial rates are among the lowest of the sample cities. Staff recommends that the City Council approve the proposed rate adjustment for Fiscal Year 2008/2009. M/Tanaka opened the item for public comment. No one present spoke on this matter. C/Chang commented on this item and explained how the increase was calculated. JUNE 3, 2008 PAGE 9 CITY COUNCIL C/Chang moved, C/Herrera seconded, to approve Valley Vista Services' Rate Adjustment for CPI and Disposal Costs. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, Tye, MPT/Everett (telephonically), M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 8.3 APPROVE WASTE MANAGEMENT'S RATE ADJUSTEMENTS FOR CPI AND DISPOSAL COSTS. SMA/Lee reported that in August 2000 the City Council awarded an exclusive contract to Waste Management Services to collect refuse and recyclables in the residential sector. The contract stipulates that the contractor can adjust rates to account for CPI, disposal and fuel. In April 2008 Waste Management submitted its annual request for adjustments to existing rates. The combined increase and the approved ABA939 fees have been reviewed and have been found to be accurate and within industry and area standards compared to neighboring cities. When compared with surrounding cities the proposed increase is in the median range and staff recommends approval of the rate adjustment proposed by Waste Management. M/Tanaka opened the item for public input No one who spoke on this matter. C/Chang explained the proposed adjustment. C/Chang moved, C/Herrera seconded, to approve Waste Management's Rate Adjustments for CPI and Disposal Costs. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Herrera, Tye, MPT/Everett (telephonically), M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 9. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: C/Herrera congratulated Ken's Hardware, a business that D.B. has enjoyed for many years. She was happy that the Council approved its budget, a matter most important to the City and its residents. The City hopes to get the anticipated revenues since D.B. has lost Diamond Bar Honda resulting in a JUNE 3, 2008 PAGE 10 CITY COUNCIL loss of $500,000 in sales tax revenue. D.B. needs to work diligently to bring new businesses to the City in order to continue providing residents with the programs and services to which they have grown accustomed. D.B. was able to balance its budget without cutting its programs and services. She was happy to report that D.B. was fiscally sound. She hoped everyone voted. C/Chang said that Ken's Ace Hardware was a success story because many big box stores have driven small hardware stores out of business. He was pleased that the City Council passed a solid budget this evening and explained its content. This year the City's income will be lower by about $1.2 million. However, staff has managed to reduce the expenditures by about $1 million without sacrificing City services. C/Tye hoped that everyone would participate in the Relay for Life this weekend at Lorbeer Middle School and support Bridgette del Rio Cortez who lost her husband to this disease in April. He reiterated the Council's appreciation to department heads for the hard work that went into trimming the budget. He thanked staff for their hard work; especially to Esmmy Magallanes for the service she provided for an individual through Building & Safety who took time to write and thank her. He congratulated the Diamond Ranch Varsity Baseball team that made it to CIF. Last weekend the Council attended the California Contract Cities Conference and learned more about "being green". The City will have an opportunity to transition to CNG or hybrid vehicles and suggested that the waste providers come to a Council Meeting to explain what use of those vehicles means to the community. MPT/Everett strongly echoed comments made by his colleagues about the very hard work on the part of staff to create a balanced budget that protects the City of D.B. MPT/Everett went on to speak about the various events he attended. M/Tanaka thanked staff for their hard work on the budget and that it was Council's pleasure to approve the budget. He thanked Troop 737 for presentation of the Colors and Pledge of Allegiance this evening. The Relay for Life is scheduled for Saturday and Sunday June 7 and 8 at the field at Lorbeer Middle School. He attended the Chamber Mixer hosted by Walnut Valley Water District concentrating on Water Awareness Month; Council attended a VIP reception at the Shoppes in Chino Hills and congratulated Chino Hills on this exciting project. D.B.H.S. held a sober graduation presentation; the Relay for Life held a fundraiser; he and MPT/Everett attended the International Taikwando Festival 2008 in the City of Industry; Sheriff Lee Baca hosted the 39th Annual LA County Peace Officers Memorial Service and a talent show, showcasing class participants was held at the Diamond Bar Center. Last weekend the City Council attended the California Contract Cities Municipal Seminar to learn about how cities can work to bring green elements into developments. This afternoon Kmart held a ribbon- 1 1 1 JUNE 3, 2008 PAGE 11 CITY COUNCIL cutting ceremony in coordination with the Regional Chamber of Commerce of the San Gabriel Valley. He thanked Valley Vista and Waste Management for their service to D.B. ADJOURNMENT: With no further business to conduct, M/Tanaka adjourned the regular City Council meeting at 7:48 p.m. TOMMY CRIBBINS, CITY CLERK The foregoing minutes are hereby approved this 17yb day of , 2008. JACK TANAKA, MAYOR