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Home My WebLink About9/16/2008 Minutes - Regular MeetingCITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION SEPTEMBER 16, 2008 STUDY SESSION: M/Tanaka called the Study Session to order at 5:30 p.m. in Room CC -8 of the South Coast Air Quality Management District/Government Center, 21865 Copley Dr., Diamond Bar, CA. Present: Council Member Chang, Tye, Mayor Pro Tem Everett, Mayor Tanaka. Absent: Council Member Herrera was excused. Staff Present: James DeStefano, City Manager; David Doyle, Asst. City Manager; Mike Jenkins, City Attorney; David Liu, Public Works Director; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Nancy Fong, Community Development Director; Greg Gubman, Planning Manager; Ken Desforges, IS Director; Ryan McLean, Assistant to the City Manager; Anthony Santos, Management Analyst and Tommye Cribbins, City Clerk. I► DISCUSSION AND ULTIMATE ACTION OF REMARKETING THE 2002 PUBLIC FINANCING AUTHORITY VARIABLE RATE LEASE REVENUE BONDS. CM/DeStefano stated that one of the City Council's Goals is to develop alternative financing options for the outstanding municipal bonds used to construct the Diamond Bar Center. Finance Director Linda Magnuson has prepared a report that will outline the alternatives as well as staff's recommendation that will be discussed during tonight's Council meeting. FD/Magnuson provided a brief history of the issuance of the bond and indicated that the next principal payment of $290,000 would be due September of 2009. She indicated that the payment continues to increase over time with the final principal payment coming due July of 2033. At that time the principal payment would increase to $840,000 from the original $255,000. Initially, due to the low interest rate the Council chose to pursue a variable rate. As time moved forward there was concern about an increase in interest rates and the City Council decided to purchase a 10 -year bond rate cap with the interest rate being 4.5% for 10 years at a cost of about $650,000. One of the additional costs resulting from the variable rate bond is for the Letter of Credit required to guarantee that payment will be made in a timely manner. Additionally, the variable rate bond requires remarketing and depending on how the market fluctuates any of the bonds could be turned back in for a rate change — either higher September 16, 2008 PAGE 2 CC STUDY SESSION or lower. The cost is based on 1/8 of 1% of the outstanding average principal balance, or about $16,300 for the past three years. At the five- year mark which was reached in December staff compared interest rates against the variable bond rate to see how the City had fared by looking at five different options in light of increasing rates. Staff concluded that it would be financially prudent to leave the variable interest rate in place. At this time the fixed rates range between 3.7% and 5.1% which would not save the City money since it is currently paying about 2%. By changing remarketing agencies to DeLa Rosa, it appears the City would save about $36,000 to $37,000 per year. C/Chang favored staying with the status quo and remaining diligent. CM/DeStefano stated that although the City spent $650,000 for an insurance policy (variable cap rate purchase) it has saved well in excess of $1.3 million by going with the variable rate bond. Council Members concurred to stay with the variable rate and contract with De La Rosa for remarketing of the bonds. PUBLIC COMMENTS: None ADJOURNMENT: With no further business to come before the City Council, M/Tanaka adjourned the Study Session at 6:01 p.m. TOMM CRIBBINS, City Clerk The foregoing minutes are hereby approved this 71h day of october 2008. JACK TANAKA, Mayor 1 1 MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR SEPTEMBER 16, 2008 STUDY SESSION: 5:30 p.m. — Room CC -8 Public Comments on Study Session Agenda — None Offered. ► Discussion of remarketing of the 2002 Public Financing Authority Variable Rate Lease Revenue Bonds — Discussion and Action. CALL TO ORDER: Mayor Tanaka called the regular City Council meeting to order at 6:33 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. CM/DeStefano reported that during tonight's Study Session the City Council reviewed the remarketing of the Diamond Bar Center Bond financing. After considering the five options staff provided, Council agreed to retain the structure implemented in 2002. Staff was directed to continue to watch the structure and the market for possible reconsideration. PLEDGE OF ALLEGIANCE: Troop 730 presented the Colors and the Pledge of Allegiance. INVOCATION: Pastor Jim Price, Diamond Canyon Church, gave the invocation. ROLL CALL: Council Members Chang, Tye, Mayor Pro Tem Everett and Mayor Tanaka. Council Member Herrera was excused. Staff Present: James DeStefano, City Manager; David Doyle, Asst. City Manager; Mike Jenkins, City Attorney; David Liu, Public Works Director; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Nancy Fong, Community Development Director; Greg Gubman, Planning Manager; Ken Desforges, IS Director; Ryan McLean, Assistant to the City Manager; Anthony Santos, Management Analyst; Kimberly Molina, Associate Engineer; Rick Yee, Sr. Civil Engineer; Lauren Hidalgo, Public Information Specialist; Cecilia Arellano, Public Information Coordinator; and, Tommye Cribbins, City Clerk. APPROVAL OF AGENDA: As Presented. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: NEW BUSINESS OF THE MONTH: SEPTEMBER 16, 2008 PAGE 2 CITY COUNCIL 1.1 M/Tanaka recognized Chili's Grill & Bar, 707Grand Avenue, as New Business of the Month and announced that he would forward the Certificate Plaque to Paul Auon and his staff. Pat Fabio, Field Representative with Congressman Miller's Office also presented Chili's with a Certificate of Recognition. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: 2.1 Lauren Hidalgo, Public Information Specialist gave a presentation regarding "Through My Lens" Community Photography Contest. 3. PUBLIC COMMENTS: Liset Rajaratnam, 23509 Ridgeline Rd. spoke about what she considered to be a safety concern for children and the crossing guard at Chaparral Middle School. Due to increased rush hour traffic volume, vehicles waiting to turn left often do not have sufficient time to navigate the turn. Often these drivers plow through the crossing lane despite her warning as the crossing guard and the clearly visible signage indicating "children present." She asked for help. Bridgette del Rio Cortez and Kathleen Romero thanked participants in the Relay for Life event and presented the Council Members with a Certificate of Appreciation for the City's support and participation. Marny Shay, Friends of the Library, announced the upcoming fourth annual "Read Together Middle School Challenge" on October 28 from 7:00 to 8:30 p.m. in the Clark Theatre at Mt. SAC. There will be free parking in Lot B for parents and supporters. She presented copies of the featured book "Tangerine" to each Council Member and invited them to participate in the event. 4. RESPONSE TO PUBLIC COMMENTS: CM/DeStefano responding to the comments made by Liset Rajaratnam stated that staff had received a letter from her today and that copies were delivered to the City Council for review. In addition, copies of the letter were forwarded to PWD/Liu and to the Sheriffs Department. Staff will explore issues and possible changes to the intersection in the next couple of days. 5. SCHEDULE OF FUTURE EVENTS: 5.1 Planning Commission Meeting — September 23, 2008 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive. 1 SEPTEMBER 16, 2008 PAGE 3 CITY COUNCIL 5.2 Diamond Ride Community Meeting —September 25, 2008 —1:00 p.m. — 3:00 p.m., Diamond Bar Center Ballroom, 1600 S. Grand Avenue. 5.3 Parks and Recreation Commission Meeting — September 25, 2008 — 7:00 p.m., AQMD/Government Center Hearing Board Room, 21865 Copley Drive. 5.4 City Council Meeting — October 7, 2008 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive. 6. CONSENT CALENDAR: C/Tye moved, C/Chang seconded, to approve the Consent Calendar with the exception of Item 6.10 pulled by MPT/Everett. Motion carried by the following Roll Call: AYES: COUNCIL MEMBERS: Chang, Tye, MPT/Everett, M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Herrera 6.1 CITY COUNCIL MINUTES — Regular Meeting of August 19, 2008 — approved as submitted. 6.2 RECEIVED AND FILED PLANNING COMMISSION MINUTES 6.2.1 - Regular Meeting of June 10, 2008. 6.2.2 — Regular Meeting of July 8, 2008. 6.2.3 — Regular Meeting of August 26, 2008 6.3 RECEIVED AND FILED PARKS AND RECREATION COMMISSION MINUTES — Regular Meeting of July 24, 2008. 6.4 RECEIVED AND FILED TRAFFIC AND TRANSPORTATION COMMISSION MINUTES --- Regular Meeting of June 12, 2008. 6.5 RATIFIED CHECK REGISTER — dated August 14, 2008 through September 10, 2008 totaling $1,905,790.83. 6.6 APPROVED PRELIMINARY TREASURER'S STATEMENT— month of July 2008. 6.7 APPROVED SURPLUS CITY OWNED 1997 FORD TAURUS AND 1991 CHEVROLET S-10 PICKUP. SEPTEMBER 16, 2008 PAGE 4 CITY COUNCIL 6.8 APPROVED NOTICE OF COMPLETION TO CJ CONSTRUCTION, INC. FOR THE 2007-08 COMMUNITY DEVELOPMENT BLOCK GRANT CURB RAMP INSTALLATION PROJECT IN THE VICINITY OF QUAIL SUMMIT ELEMENTARY SCHOOL AND PAUL C. GROW PARK. 6.9 APPROVED NOTICE OF COMPLETION TO CHRISTOPHER MORALES, INC. FOR TRAFFIC SIGNAL MODIFICATIONS AT GOLDEN SPRINGS DRIVE/DIAMOND BAR BOULEVARD; GOLDEN SPRINGS DRIVE/RACQUET CLUB ROAD; AND, GOLDEN SPRINGS DRIVE/BREA CANYON ROAD. MATTERS WITHDRAWN FROM CONSENT CALENDAR: 6.10 AWARD OF PROFESSIONAL ENGINEER SERVICES CONTRACT TO DMS CONSULTANTS, INC. FOR CIVIL ENGINEERING DESIGN, CONSTRUCTION ADMINISTRATION /INSPECTION, AND CONSTRUCTION SURVEY FOR THE PATHFINDER ROAD LANDSCAPED MEDIAN PROJECT IN THE AMOUNT OF $40,085 PLUS A CONTINGENCY AMOUNT OF $8,000 FOR A TOTAL AUTHORIZATION OF $48,085. MPT/Everett asked for more information from staff as to why if the texas dots are not working why staff feels that placing a landscape median would prevent motorists from crossing the striped median. He further asked what will be done to conserve water. PWD/Liu reported that with respect to the existing texas dots placed in the median to prohibit and reinforce prohibition of left turns out of the business driveways, staff has observed and residents have reported that drivers who are not familiar with the dots will drive over them. In the area there are two or three driveways accessing businesses with a considerable amount of turning maneuvers. Raised landscaped medians provide separation of opposing vehicular movement as well as a physical barrier. Staff also plans to incorporate water conservation into the design effort. MPT/Everett moved, C/Chang seconded, to approve Item 6.10. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tye, MPT/Everett, M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Herrera SEPTEMBER 16, 2008 PAGE 5 CITY COUNCIL 7. PUBLIC HEARINGS: None 15. COUNCIL CONSIDERATION: 8.1 FIRST READING OF ORDINANCE NO. 05(2008): AMENDING TITLE 12, CHAPTER 12.00 DIVISION 3 RIDING AND HIKING TRAILS REGARDING THE RULES FOR USE OF PUBLICLY OWNED TRAILS AND AMENDING THE DIAMOND BAR MUNICIPAL CODE. CSD/Rose reported that the City has and continues to develop more trails in Sycamore Canyon Park and in the open space adjacent to the Diamond Bar Center. In order to promote safe use of trails and protect the environment adjacent to the trails it is necessary to adopt and post rules for their use with signage at the trail access points. The rules presented this evening for Council's consideration were reviewed and recommended by the Parks and Recreation Commission on March 27. In addition, the proposed rules have been reviewed by the Joint Powers Insurance Authority which also recommends adoption. The trails in D.B. are intended for hiking and mountain biking, a multi -use scenario required by grants that provide funding to construct the trails. The proposed rules include: Trails be open one-half hour before sunrise and closed one-half hour after sunset, a rule that is consistent with unlighted parks throughout the City. Since many trails remain in their natural state, trail users use the trails at their own risk; Trail users are required to stay on the trails and not trespass on or damage private property adjacent to the trails; Trails shall be used exclusively for hiking and biking; All bikers must yield the right-of-way to pedestrians, pass to the right and provide verbal warnings. All bicyclists under the age of 18 shall wear a helmet; No smoking or open flame is permitted on or in areas surrounding the trails; Alcoholic beverages are not allowed on the trails or in surrounding areas; Dogs must remain on leash and in control of the owner; Dog owners shall pick up and pack out dog waste; and, and All trail users must take out their trash. CSD/Rose explained that adoption of this ordinance would require purchase and installation of 10 new signs for posting of trail rules at the trail access points. The total cost of the signage is estimated to be about $1500. He stated that the funds are available in the current 2008-2009 Fiscal Year Budget for the purchase. MPT/Everett asked if there was a guideline for imposing fines. He wondered if the amount specified would call for purchasing SEPTEMBER 16, 2008 PAGE 6 CITY COUNCIL replacement signs. CSD/Rose responded that the City is usually able to change signs for a reasonable fee and avoid replacement. Don Sutton, 1107 North Moonlight Summit Dr., said he found most rules to be excellent and recommended that more emphasis be given to "trailblazing" where people tend to leave the trails. C/Chang moved, C/Tye seconded, to approve for first Reading Ordinance No. 05(2008). Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tye, MPT/Everett, M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Herrera 8.2 APPROVAL OF THE CREATION OF A CITY COUNCIL SOLID WASTE SUBCOMMITTEE AND APPOINTMENT OF TWO COUNCIL MEMBERS. CM/DeStefano stated that staff is recommending the Mayor appoint two Council Members to serve on a subcommittee to provide assistance to staff during consideration of solid waste provider negotiations during the next two years. There was no one present who wished to speak on this item. MPT/Everett moved, C/Tye seconded, approval of a subcommittee and appointment of two Council Members. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Tye, MPT/Everett, M/Tanaka NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Herrera M/Tanaka appointed himself and MPT/Everett to serve on the subcommittee. RECESS: M/Tanaka recessed the City Council Meeting to the Public Financing Authority Meeting at 7:17 p.m. SEPTEMBER 16, 2008 PAGE 7 CITY COUNCIL RECONVENE: M/Tanaka reconvened the Regular City Council meeting at 7:24 p.m. 8. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: C/Tye announced that both he and M/Tanaka attended the LA Division of the League of Cities. A representative from the Governor's office presented the Governor's Budget proposal and discussed possible ways to close a $15 billion budget gap. A 1 cent increase in sales tax was proposed, which they were told would be decreased at some point. Assemblyman Huff proposes to hold the line on taxes and focus on cutting spending. There is a proposed ballot amendment for a'/2 cent sales tax to fund the MTA project. He encouraged citizens to be mindful of the proposals and refuse to pay more until there is a good return on monies currently being collected. C/Tye said he and his colleagues attended the Diamond Bar Day at the Fair Thursday. He congratulated D.B. Heroes Debby Herrman, Mary Hackett and Freddy Peng. C/Tye sent his condolences to C/Herrera who lost her mother last week and asked residents to keep C/Herrera in her thoughts and prayers. C/Chang also offered his condolences to C/Herrera and her family. C/Chang stated that the State Government needs to curb spending and find more revenue without increasing taxes. C/Chang thanked everyone who participated in the Diamond Bar Day at the Fair last Thursday. Mr. Chang spoke about the proposed NFL Stadium in the City of Industry. He stated that the City received the Environmental Impact Report and the entire report can be found on the City's Website. He further stated that the City will be responding to the EIR. During the month of August Code Enforcement conducted approximately 1,264 inspections with 802 being for removal of illegal signs. Others were for no landscaping, poor landscaping, no maintenance, trash cans and debris in the public right-of- way, etc. In addition, 2,295 sq. ft. of graffiti was removed from 203 sites during the month costing $5,200. C/Chang stated that the Crestline area residents have asked the City to be annexed into D.B. and the residents have received the ballot requesting that the LA County Lighting and Maintenance District be changed from LA County to D.B. He asked residents to review all material they receive providing information on the process. MPT/Everett said it was his privilege to attend the services celebrating Victoria Platteborze's life that was held at St. Denis Church. He thanked C/Chang for his excellent leadership as Chairman of the Diamond Bar Day Committee. He went on to announce that the Yellow Bus Program successfully raised over $3200 for student education. MPT/Everett spoke SEPTEMBER 16, 2008 PAGE 8 CITY COUNCIL about the Neighborhood Improvement Committee and recognized CEO/Ed Flacks for his work. The Public Safety Committee met with the Sheriff's Department to discuss the recent burglaries and reviewed the school traffic enforcement and both he and M/Tanaka joined with other residents in celebrating India's 61St Independence Day Celebration at the Diamond Bar Center. M/Tanaka asked staff to prepare a report for Council on the possibility of installing field lights at the D.B. Little League field and explore the possible joint use agreement for use of the field. Council Members concurred. M/Tanaka stated that on August 20 he and his wife attended the final 2008 Concerts in the Park. He attended the Senior Citizens' Luau Dance; the Federation of Indo -American celebration of its 61St Independence Day; and both he and MPT/Everett attended a Neighborhood Watch meeting in the Moonlake neighborhood. M/Tanaka also attended the rodeo roundup at D.B.H.S.; the Diamond Bar Day at the Fair events; the San Gabriel Valley Partnership Awards Gala Dinner; San Gabriel Valley Council of Governments seminar on "Trash 101" and reported that the Puente Hills Landfill would be closing in 2013. He further attended the Vietnamese Children and Mid Autumn Festival. Lastly, M/Tanaka wished to express both his and his wife Wanda's condolences to C/Herrera and her family on the passing of her mother, and to the family of Deputy Gilmartin who also passed away. ADJOURNMENT: With no further business to conduct, M/Tanaka adjourned the regular City Council meeting at 7:55 p.m. in memory of Victoria Platteborze, mother of C/Herrera, and in memory of Deputy James Gilmartin. a r TOMMY CRIBBINS, CITY CLERK The foregoing minutes are hereby approved this 7thday of October 2008. JACK TANAKA, MAYOR