Loading...
HomeMy WebLinkAbout6/2/2009 Minutes - Regular MeetingCITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION JUNE 2, 2009 STUDY SESSION: M/Everett called the Study Session to order at 5:15 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, Tanaka, Tye, Mayor Pro Tem Herrera, Mayor Everett Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; Bob Rose, Community Services Director; David Liu, Public Works Director; Linda Magnuson, Finance Director; Susan Full, Senior Accountant; Greg Gubman, Acting Community Development Director; Ryan McLean, Assistant to the City Manager; Rick Yee, Senior Engineer; Kimberly Molina, Associate Engineer; Patrick Gallegos, Management Analyst; Anthony Santos, Management Analyst; Cecilia Arellano, Public Information Coordinator; Isaac Aziz, Network Systems Administrator; Marsha Roa, Public Information Manager, and Tommye Cribbins, City Clerk. ► PRESENTATION OF DRAFT FY 2009-10 BUDGET CM/DeStefano stated those two weeks ago the Council considered a $19.5 million budget. Today's offering is a $20 million General Fund Budget which is due to $1 million in revenue from the Federal Resources Water Development Act being been moved into the General Fund Budget which increased the Public Works/Engineering budget by $1 million. MET/Herrera asked if the property tax allocation was an estimate and whether the numbers would decrease with the State's adoption of their budget. CMIDeStefano responded that the State is looking at taking $2 billion from cities and counties which means a $770,000 allocation from D.B. Since the amount is technically a "loan" to the State, the money with some interest yet to be determined will be repaid in about three years. Staff is suggesting that the City's General Fund Reserves be used to backfill the City's budget. ► HOUSING ELEMENT UPDATES ACDD/Gubman stated that after the July 2008 Study Session and two Study Sessions with the Planning Commission in 2009 staff submitted the draft Housing Element to HCD last August. In October 2008 staff held a telephone consultation with HCD staff after their review of the document. Following the discussion staff received a letter from HCD detailing steps the City would need to address in order to receive certification of the Housing Element. The key issues included a request for further verification of how the City's RHNA numbers would meet the State's requirement and to provide more detail of the City's commitment to rezone JUNE 2, 2009 PAGE 2 CC STUDY SESSION property to accommodate the 468 lower income housing units. HCD also asked the City to provide more detail on how it would allow emergency shelters in compliance with S132, a mandate that cities allow, by right, emergency shelter for homeless. The revised document proposes various means by which the City can reach the targets. In the Council's packet, Exhibit B matrix summarizes how the City responded to each of HCD's comments. ACDD/Gubman further stated that the revised draft was presented to the Planning Commission on May 26. The Planning Commission was generally positive about how staff continues to address the issues of concerns and in particular indicated support for the proposal to look at the Kmart property as a possible mixed-use redevelopment opportunity for providing high density housing. One of staff's strategies is a commitment to rezone or embark on a specific plan process for the Kmart site that would include a housing component and include within that housing component some of the target low-income units. Staff intends to move forward to complete the process by going through a public hearing with the Planning Commission and City Council to finally adopt the revised Housing Element. He introduced the City's Consultant John Douglas who provided a PowerPoint presentation regarding what has been done to update the Housing Element. Mr. Douglas with Conexus added that with most jurisdictions D.B. received a lengthy critique from the State. Every jurisdiction in the State is required to demonstrate that they can accommodate their fair share of RHNA numbers as well as other RHNA numbers of which the Emergency Shelter law is probably the most significant. The Emergency Shelter law requires that every City designate a zone allowing emergency shelter accommodations with no conditional uses. Staff would like feedback from the Council about this issue because the State requires that within the Housing Element the City designate a zoning district where emergency shelters would be allowed. Staff has suggested in the draft document that the median density residential zone where churches already exist would be an entity where the property owner could provide emergency shelter. Mr. Douglas responding to C/Tye stated that it would have to be a broad enough zone for designation so that any church property within that zone could be considered. The State is looking at requiring cities to designate a large enough overlay area to create sufficient opportunities for a shelter. For example, if the City were to designate just one small area the State may view this as the zone being drawn too narrowly. Mr. Douglas explained to M/Everett that it is an area within a zone or an overlay of a zone. Staff is considering only the areas where churches exist today at this point. The ordinance would say that within the RM zone JUNE 2, 2009 PAGE 3 CC STUDY SESSION where a church currently exists — that is where emergency shelters would be provided. Then there would be additional development standards the City could also impose such as number of beds, on-site security, lighting, management plan, etc. MPT/Herrera asked if a particular church would be expected to construct some kind of facility or would they be expected to store beds, bedding, etc. Mr. Douglas said it is important to keep in mind that what this law requires only that the City commit to having emergency shelters. It does not actually require that any entity open a shelter. It would be entirely up to the congregation as to whether they would want to take advantage of this law. ACDD/Gubman said that although D.B. does not have an identified homeless population the City is still obligated to facilitate any entity to provide emergency shelter. When staff conducted a homeless count as part of the Greater Los Angeles homeless count it found zero homeless. At this time, staff would not contemplate anyone coming forward offering to build a homeless shelter since the findings indicate there is no homeless population. However, the City needs to do what it can to provide the opportunity. C/Tye said that if St. Denis were identified and wanted to have a shelter they would be allowed to but not be required to. ACDD/Gubman said that staff looked at how to implement this requirement in a genuine manner and it seemed at the outset that a church was an appropriate development site because churches have the type of infrastructure that would likely accommodate emergency shelter needs such as a social hall or classroom facilities, etc. Some churches have buildings with facilities within their campuses that could easily accommodate cots being set up. Not every church would meet the criteria that the City might establish as it studies this issue in more detail. There may have to be a certain amount of parking, square footage within certain interior spaces, lighting, distance from residential properties, etc. It is not possible at this time to say that all churches within the City would be entitled to emergency shelters until the criteria were established. M/Everett stated that this is a critical issue. The causes of homelessness are not necessarily traditional. There are people who come through and are homeless and there are also those that are victims of domestic violence and short term overnight needs, etc. He wanted to know if there were any other options or whether options could be added should the Council define another option that would be reasonable. JUNE 2, 2009 PAGE 4 CC STUDY SESSION Mr. Douglas spoke affirmatively that the Housing Element will include the City's preliminary findings. When the ordinance comes back for adoption if the Council has different ideas there can be other zones designated. M/Everett suggested the YMCA might be an alternative to consider. Mr. Douglas responding to C/Tye stated that the more confined the area the less likely it would be to survive scrutiny. SGCOG has been studying this for some time and has concluded that cities and governments should not be the driving force in obtaining homeless shelters, especially from the non-profit sector. However, the Government should support them by providing regulatory oversight so that there aren't homeless shelters on every block. C/Chang stated that homeless shelters were not necessarily for homeless only. Mr. Douglas responded that there are emergency shelters for natural disasters which are temporary in nature. These shelters are required to be available on a permanent basis. M/Everett asked if D.B. could refer to a "regional" solution and get certified. Mr. Douglas responded that there is discussion about a regional solution. However, although the law says that cities can use regional solutions the way the law is being interpreted leaves some question. Up to three jurisdictions can provide regional shelters but each city interprets that in such a strict way that it is virtually impossible to consider that approach. ACDD/Gubman said that as an example, Pomona might offer to provide regional shelter and D.B. would be expected to provide sustainable funding. This would free up the zoning districts from having to accommodate facilities but it also creates the certainty that the City would have to participate in funding the facility. If D.B. established locations that could be utilized within the City it may never happen. The tradeoff is that the City would not be obligated to contribute financially and if some organization should elect to provide the shelter they would be responsible for the funding. Staff believes that D.B. is probably better off to establish its own regulations. Mr. Douglas stated that today the City does not have enough land for high density which leaves a shortfall of about 470 units. For this process the City must submit to evaluating and within a reasonable period of time, identify which properties could be rezoned to allow about 470 high density units. There are four potential sites identified in the Housing Element: 1) Kmart 2) Tres Hermanos 3) Aera Energy property and 4) the rear of the JUNE 2, 2009 PAGE 5 CC STUDY SESSION LDS Church property. Those four sites add up to thousands of acres. Over the next year the Housing Element says that the City will study those options — and possibly other options, should any arise, and identify which of those or combination of those would most appropriately satisfy the rezoning compliance for high density units. C/Tanaka asked for status of the Diamond Bar Improvement Association and Paint the Town Project. CM/DeStefano stated that the last conversation he had with C/Zirbes about the Paint the Town Project was in January 2007. At that point there had been no forward movement for about a year or two. There was some hope that the program would be reconstituted and as DBIA moved forward the group might move back to a "Paint the Town" effort. However, nothing has happened within the past few years and there has been no application for additional resources from the City. C/Tanaka asked if this was something the City could revive? CM/DeStefano responded that it is a DBIA program, not a City program. C/Tye said he was frustrated that the State cannot run its own business but can tell cities how to run their business. Mr. Douglas said the downside of not complying with the Housing Element is that the City has greater exposure to a lawsuit. MPT/Herrera stated that the City of Irvine is involved in a lawsuit. ACM/Doyle said he understood that if there is no certified housing element and a development comes forward that the Council supports, someone could challenge and sue the City and prevent the development because the City didn't have a certified housing element. Mr. Douglas said that the argument would be that the City does not have a valid General Plan and therefore no authority to issue permits. Council concurred to move forward with the revised draft as presented by staff. ► PRESENTATION OF SCI'S PROPOSAL AND LOCAL FUNDING MECHANISMS FOR LLAD 38,39 AND 41 CM/DeStefano reported that this matter involves ongoing discussions regarding the need to examine funding sources for Lighting and Landscape Assessment Districts 38, 39 and 41. Since about 1996-1997, the City has funded the Districts, first with staff resources and now with JUNE 2, 2009 PAGE 6 CC STUDY SESSION maintenance and operation resources of about a $140,000 subsidy for FY 2009/10. Council created a subcommittee more than a year ago to study this matter to discuss a number of different approaches. Staff made a couple of recommendations and suggestions. Tonight's presentation is to discuss what possible steps can be taken in pursuit of a resolution to the funding issues within the districts. PWD/Liu provided a powerpoint presentation reiterating the increasing yearly budget subsidies and Parks Master Plan update that gives staff an opportunity to look at these issues. Before the City Council makes its decision staff needs to conclude its benefit and risk analysis. He introduced Gerard Van Steyn with SCI. Mr. Van Steyn gave a brief history of SCI and its unique goal of assisting public agencies to help establish new revenue sources on a local basis. Most of the firm's work is conducted under Proposition 218. Before the City makes any decisions about whether to ask voters to approve a new or increased levy it is vital that it has the most accurate research data. SCI is proposing to conduct a survey to help the City gain the best insight into the priorities and desires of the property owners and voters and to focus on immediate needs as well as the needs that are coming out of the Parks Master Plan update. Phase 1 of the survey will be an initial analysis of the planning work. SCI will work with staff to best determine what different objectives the City has that could potentially be covered in the survey. At the same time, SCI will conduct a very thorough analysis of the City's property owners and voters. An important element of this initial work is to go out to voters with a benefits assessment designed by property owners rather than voters. Phase 2a is a phone survey with a random survey of 400 voters and property owners. After these initial phases are conducted SCI will present the findings to the City Council. If the results are generally favorable, SCI would recommend that the City then conduct Phase 2b, a mail survey that is designed to account for the unique aspects of the property owners and is designed to mimic the actual look and feel of what those property owners would view through an assessment. At the conclusion of the surveys, SCI would work with staff to bring the Council a recommendation that would cover how successful a ballot measure might be for raising funds through an election for the Parks Master Plan, for example. SCI has found that there is a shifting of priorities when there is a cost attached to those priorities. This information is ultimately very helpful in planning and prioritizing. MPT/Herrera asked if the election would be for 2010. Mr. Van Steyn said the earliest would be spring 2010. MPT/Herrera asked if it was possible to add to the survey the feasibility of increasing the TOT. JUNE 2, 2009 PAGE 7 CC STUDY SESSION Mr. Van Steyn said that with the survey it is very difficult to test for different concepts of funding and TOT is such a different revenue source than a property owner/voter type measure that the survey would have to be redesigned to have a standalone survey sample for each group; however, TOT votes can be done by mail as well. Mr. Van Steyn explained to MPT/Herrera that for an assessment the ballots are mailed with a 45 -day period for return. At the end of the balloting period the returned ballots are counted. "Yes" votes are weighted by how much of an assessment each property owner would have to pay. Discussion ensued regarding how SCI operates and Mr. Van Steyn explained the phased -in contract costs. PUBLIC COMMENTS: No comments were offered. ADJOURNMENT: With no further business to discuss, M/Everett adjourned the Study Session at 6:26 p.m. TOMMY CRIBBINS, City Clerk The foregoing minutes are hereby approved this 16th day of June , 2009 RON EVERETT, Mayor MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR JUNE 2, 2009 CLOSED SESSION: 5:00 p.m., Room CC -8 Public Comments on Closed Session Agenda — None Offered ► Government Code Section — 54956.9(c) Initiation of Litigation — 1 Case STUDY SESSION: 5:15 p.m., Room CC -8 ► Presentation of Draft FY 2009/2010 Budget — Discussion and Action ► Housing Element Update — Discussion and Action ► Presentation of SCI's Proposal and Local Funding Mechanisms for LLAD 38, 39 and 41 — Discussion and Action Public Comments: None Study Session adjourned at 6:26 p.m. CALL TO ORDER: Mayor Everett called the Regular City Council meeting to order at 6:35 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. CA/Jenkins reported that during tonight's Closed Session the City Council discussed the matter of potential initiation of litigation. The City Council took reportable action to authorize the City along with all of the other contract cities within the County of Los Angeles, to file a suit against the County of Los Angeles relative to alleged improper use of the liability trust fund, a fund that is created and funded by the contract cities for liability associated with the use of contract law enforcement services. The authorization to file the lawsuit is contingent on the County not agreeing to a one-year extension of the existing law enforcement services agreement which is scheduled to expire on June 30, 2009. If the County declines the extension, the City Council has authorized the City, along with the Contract Cities Association of Los Angeles County and all of the other contract cities that are members of that Association to file the lawsuit seeking reimbursement to the fund of approximately $6 million that was taken from the fund for what is alleged as an improper use. CM/DeStefano reported that during tonight's Study Session, the City Council discussed the Draft FY 2009-10 Budget in preparation for this evening's action item; the Draft Housing Element, a component of the City's General Plan which is required by the State of California; and, a presentation from staff and a consultant regarding local funding mechanisms for LLAD 38, 39 and 41. PLEDGE OF ALLEGIANCE: Mayor Everett led the Pledge of Allegiance. JUNE 2, 2009 PAGE 2 CITY COUNCIL INVOCATION: Executive Pastor Mark McAlpine, Church in the Valley, led the invocation. ROLL CALL: Council Members Chang, Tanaka, Tye, Mayor Pro Tem Herrera, and Mayor Everett. Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Greg Gubman, Acting Community Development Director; Ryan McLean, Assistant to the City Manager; Rick Yee, Senior Engineer; Kimberly Molina, Associate Engineer; Cecilia Arellano, Public Information Coordinator; Anthony Santos, Management Analyst; Christian Malpica-Perez, Associate Engineer; Cecilia Arellano, Public Information Coordinator, and Tommye Cribbins, City Clerk. APPROVAL OF AGENDA: As Presented. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 The City Council presented Certificates of Recognition to "Older Americans Award" winners Beverly Mayerski, Diamond Bar Senior Citizens' Club; Mrs. Wen Fong K. Wu, Diamond Age Senior Club; Mangal Gulshan, Sunshine Senior Club; and Athena Chu, Evergreen Senior Club. NEW BUSINESS OF THE MONTH: 1.2 Mayor Everett presented a City Tile to Shahida Ather Ali, owner of Good Care Adult Day Health Care, 23401 Golden Springs Dr., as Business of the Month for June 2009. Mr. Ali introduced members of his staff. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None. 3. PUBLIC COMMENTS: Mangal Gulshan, 21401 Bella Pine Dr., thanked Council for his recognition. He then advised the Council that he had spoken with a friend of his who had told him that he had tried to get a permit for a portable storage shed to be placed in his backyard and that the City had told him that according to the City's Code the shed could not be higher than 6 ft. Mr. Gulshan asked for clarification and though that maybe his friend had been misinformed. Mr. Gulshan also stated that he has been walking in the Ronald Reagan Park area for the past year and wondered if the City could provide a more level walking path. JUNE 2, 2009 PAGE 3 CITY COUNCIL Chief Ed Gandara, LA County Fire Department, reminded residents of the upcoming Tonner Canyon Wildland Park Ranch scrimmage that will be conducted June 10, 11 and 12 at 9:00 a.m. City representatives are invited to attend on Thursday, June 11. Jack Shah, 22900 Estoril, thanked the City Council for keeping the City in good shape in spite of the challenging economic times. He pointed out that the stage at the Diamond Bar Center has a lighting problem and it is difficult for the seniors to see participants who are performing on stage and asked if staff could do something to provide better lighting. 4. RESPONSE TO PUBLIC COMMENTS: In response to Mr. Gulshan, CM/DeStefano stated that he believed there was a misunderstanding about the storage shed. Based on the size there are different regulations and it is possible that a store-bought shed would be permissible. Staff will work with Mr. Gulshan to attempt to clarify the matter. With respect to Ronald Reagan Park and a walkway around the park, he felt the speaker might be referring to a walkway similar to that installed at Peterson Park and Pantera Park a few years ago. CM/DeStefano felt the request was an excellent suggestion for CSD/Rose and the Parks Master Plan subcommittee to consider for potential enhancement to Ronald Reagan Park. With respect to lighting at the Diamond Bar Center it may be a problem with the podium lighting on the stage and that there is a temporary allocation set aside in an attempt to fix the problem in next year's budget. FY 2009-10 MUNICIPAL BUDGET REVIEW AND COUNCIL CONSIDERATION: ADOPT RESOLUTION NO. 2009-19: APPROVING AND ADOPTING A BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2009 AND ENDING JUNE 30, 2010 INCLUDING MAINTENANCE AND OPERATIONS, SPECIAL FUNDS AND CAPITAL IMPROVEMENTS; AND APPROPRIATE FUNDS FOR ACCOUNTS DEPARTMENTS, DIVISIONS, OBJECTS AND PURPOSES THEREIN SET FORTH. CM/DeStefano stated that the budget as submitted reflects a General Fund estimated resource for the upcoming year of $20,566,971 with anticipated appropriations of $19,988,507. If all goes well, this will result in an increase of $578,464 to the City's General Fund Reserves. There is a proposed transfer of $358,208 in General Fund Reserves to the Capital Improvement Project fund; and, $745,787 in General Fund Reserves for other non recurring appropriations. If approved, the FY 2009-10 Municipal Budget anticipates an ending General Fund balance- of $30,757,828 based on the projected revenues and expenditures. This is a very lean budget for the City. For the last three years the City has seen a drop in JUNE 2, 2009 PAGE 4 CITY COUNCIL the estimated resources as a result of the declining economy as well as, withholdings from the State. This year's estimated resources of $20,566,971 is almost $4 million less than where the City was at the beginning of FY 2006-07. Within the appropriations budget for this year there have been a variety of reductions in revenue which has caused staff to look very carefully at each line item within each department's budget in an attempt to find resources to cut fat, cut into the muscle and in some departments into the bone in order to continue to provide service levels and to do so without affecting the City's General Fund Reserves and programs to every extent possible. As everyone knows, the State is in a very critical situation and their fiscal crisis affects cities statewide. The State is looking at releasing up to 52,000 low-level prisoners in the next year which will have a direct effect on law enforcement services throughout the State. Additionally, the State is looking at a variety of cuts in programs and withholding property taxes from the City in the amount of 8% that translates to about $731,000 the City will lose. It has been frustrating for him and other city managers across the State because while cities generally have the ability to pay for services and programs and budget their cities properly to operate within their means, the state has not done so. As a result, the State continues to look to its cities, school districts, etc. to bail them out. And there may be other takings or withholdings as resources are sought. This is a big hit to the City of D.B. and the City is unable to recapture these funds ($731,000) without drastically reducing costs in each department of the City and significantly diminishing services and programs to the community. Therefore, when the $731,000 is taken, staff is recommending that the dollars be allocated from General Fund Reserves in order to maintain the programs and services the City provides. Of the $20,566,971 the City anticipates receiving in the next fiscal year, about $3.8 million from property tax revenues which is a slight increase over the current budget year. However, staff believes that during the next couple of budget years that amount will decrease slightly. Other taxes the City receives revenues from including sales taxes, transit occupancy taxes, property taxes and franchise taxes are all down approximately 10% from the current budget year so we are looking at about $5 million in that category. State subventions are slightly higher than the current year due to anticipated increases in motor vehicle in lieu revenues. This year the City anticipates receiving $1 million from the Federal Water Resources Development Act which will be used to complete a sanitary sewer and storm drain master plan for the community due to aging infrastructure. There is also re - budgeting of Federal Emergency Management revenue anticipated for repair of a slope at the Diamond Bar Center. CM/DeStefano stated that the fundamental approach to this year's proposed budget was to keep appropriations at or below where the City was at mid -year because staff saw that the revenues were decreasing and that the State was in trouble and likely to come looking for solutions to JUNE 2, 2009 PAGE 5 CITY COUNCIL their problems by looking to cities for financial help. Typically, staff asks the Council to consider a Cost of Living increase for 52 full time staff members. This year there is no proposed COL adjustment. Staff is seeking a minor enhancement for personnel in the amount of $25 per month per employee for a total of $17,000 to offset the monthly health benefit allotment. There are no staffing positions requested for this year. The City intends to retain the full complement of staff with no layoffs. There are currently four vacant positions that are being frozen at this time. Should the City's need change and the City's revenue position improve we may choose to thaw one or more of those positions. With the freezing of those positions for the entire year the resulting savings would be $301,000. The law enforcement contract is comprised of about 25% of the City's overall fund appropriations. Operating under a "contract cities" form of government has allowed the City to maintain a very high level of service delivery to the customer base while doing so at a very low and prudent cost. Many surrounding cities that have their own police and/or fire department pay at a range of 75% to 80% of their general fund budget for those purposes. Because property owners pay into the fire district the City pays only about $11,000 for fire department services annually. With the contract cities format D.B. is one of 40 cities that contract with LA -- County for law enforcement services. As a result, the service levels have remained high. This year's law enforcement budget is proposed to be about $5.4 million with no changes in service and in fact with some enhancements through the Edwin Byrne Memorial Justice Assistance Grant. Staff is recommending that $357,000 be allocated for use with economic development programs specifically to develop incentive -based plans for Market World, Kmart and Honda properties. Staff is looking to renegotiate the lease contract with Air Quality Management District for the 12,000 sq. ft. the City leases inside the facility. In addition, staff is studying the need for an additional 4,000 sq. ft. that has become available immediately adjacent to the currently leased City Hall space. Staff will provide a lease -extension proposal for next year's renewal that will include consideration of the 4,000 sq. ft. The Lighting and Landscape Districts continue to require funds from the City's General Fund reserves. Funds have never been changed since their inception and the City is looking at about $210,000 that the General Fund is providing to the districts. The CIP is about $7.9 million. Incorporated within that amount is about $1.8 million in stimulus that the City will receive from the federal government this year to be principally used for two slurry seal shovel -ready projects. There are a variety of special funds. Most notable is the Prop A Transit Funds. Changes were made to this program about a year ago and expected that costs would increase by about $100,000 depending on the -- success of the program. Actually, the budget allocation is about $550,000 in total for the upcoming budget year which reflects about a 60% increase in the program over the past four years. Staff continues to operate very effectively with the resources that the City Council provides each year. He thanked his department heads and division managers who worked in JUNE 2, 2009 PAGE 6 CITY COUNCIL harmony to produce a lean budget without reducing staff and overall service delivery to the community. Staff is proud to present the draft budget to the City Council for approval. MPT/Herrera applauded staff for their prudent calculations and organization of programs and services to the residents. The contract system allows the City to save a lot of money. D.B. is fortunate that since cityhood the City Councils and staff have always been prudent in spending the City's money and have always believed that at the end of every year there should be some left over to build up the reserve funds for rainy days. Since the rainy days have arrived D.B. is fortunate that it has an allocated reserve to make up the deficit should the State decide to take $731,000 or more from the City. People throughout the years have asked why the City needs to maintain so much money in reserve and why not spend it on projects. Thankfully, the City has the reserves so that it does not have to consider laying off employees. She asked that if in renegotiating the lease for City Hall if the City anticipated an increase in the lease cost and whether that increase had been factored into the budget? CM/DeStefano responded that since the lease does not expire for another year, it is not an item within the current draft budget and would instead be a proposed expenditure for fiscal year 2010-11. MPT/Herrera said that while the Diamond Ride program is very popular City Council held a discussion about the limitations and modifications in the program. She said she was concerned that while the Council tried to set limits on the program the cost has continued to escalate. She felt the City needs to get a better handle on the program and asked staff to analyze the program to determine whether there are excesses and abuses to the program. Perhaps the City needs to have tighter control of the program in order to minimize or eliminate abuses. The City cannot afford to have the program expense increase every year and at the same time provide other services to residents seeking other services from the City. CM/DeStefano spoke about the successful Diamond Ride program. It is a program that is envied by other cities because D.B. provides a range of service at a very low price. This program is nearing the one-year anniversary of the program changes and staff has been talking about producing a report for the City Council on the changes that were made and costs associated with those changes along with suggestions for potential changes in the future in an attempt to control the costs. PWD/Liu and ACM/Doyle are working on a package to present to Council for review. C/Tye said he appreciated all of the work by staff to make certain the City can continue to provide the type and level of service and public safety the residents expect. A couple of years ago there was talk about spending JUNE 2, 2009 PAGE 7 CITY COUNCIL the City's reserves to build a library or city hall. If it were not for prudent management over the past 20 years this reserve fund would not exist and D.B. would find itself in a similar situation to what the State is in at this time. The State asked for help to protect them from themselves and to help them set up a rainy day fund. D.B. has a rainy day fund and this stormy period is not over. He agreed with MPT/Herrera that the State's taking of 8% was conservative and the State would likely take even more. D.B. is prepared to weather this storm due to the efforts of staff. He appreciates the fact that staff has done such a good job in putting this draft budget together. M/Everett opened the meeting for public comments. No one present wished to comment on the matter. C/Chang talked about the budget and decreases in income sources. D.B. balances its budget every year for which he complimented staff. C/Chang moved, MPT/Herrera seconded to adopt Resolution No. 2009- 19: Approving and Adopting a Budget for the Fiscal Year commencing July 1, 2009 and ending June 30, 2010 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: AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye, MPT/Herrera, M/Everett NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 5. SCHEDULE OF FUTURE EVENTS: 5.1 Planning Commission Meeting — June 9, 2009 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.2 Traffic and Transportation Commission Meeting — June 11, 2009 — 7:00 p.m., AQMD/Government Center Hearing Board Room, 21865 Copley Dr. 5.3 City Council Meeting — June 16, 2009 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 6. CONSENT CALENDAR: MPT/Herrera moved, C/Chang seconded, to approve the Consent Calendar as presented. Motion carried by the following Roll Call: JUNE 2, 2009 PAGE 8 CITY COUNCIL AYES: COUNCIL MEMBERS NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: 6.1 CITY COUNCIL MINUTES Chang, Tanaka, Tye, MPT/Herrera, M/Everett None None 6.1.1 Study Session of May 19, 2009 — Approved as amended. 6.1.2 Regular Meeting of May 19, 2009 — Approved as submitted. 6.2 RECEIVED AND FILED TRAFFIC AND TRANSPORTATION COMMISSION MINUTES of May 9, 2009. 6.3 RATIFIED CHECK REGISTER — Dated May 14, 2009 through May 27, 2009 totaling $1,606,785.02. 6.4 APPROVED TREASURER'S STATEMENT — Month of April 2009. 6.5 APPROVED INCREASE OF THE CITY'S FY 08-09 TRANSIT PASS SUBSIDY FARE REVENUE AND TRANSIT PASS SUBSIDY FARE EXPENDITURES BY $100,000. 6.6 ADOPTED RESOLUTION NO. 2009-20: SETTING PROPOSITION 4 (GANN) APPROPRIATIONS LIMIT FOR FY 2009-10 IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE. 6.7 ADOPTED RESOLUTION NO. 2009-21: ADOPTING THE STATEMENT OF INVESTMENT FOR FISCAL YEAR 2009-10. 6.8 (a) ADOPTED RESOLUTION NO. 2009-22: CALLING AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2009, FOR THE ELECTION OF CERTAIN OFFICERS (THREE (3) CITY COUNCIL SEATS) AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES. (b) ADOPTED RESOLUTION NO. 2009-23: REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2009 WITH THE SCHOOL ELECTIONS TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE. (c) ADOPTED RESOLUTION NO. 2009-24: ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS SUBMITTED TO JUNE 2, 2009 PAGE 9 CITY COUNCIL THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2009. 6.9 PUBLIC WORKS REQUESTS: (a) APPROVED DESIGN SERVICES CONTRACT AMENDMENT WITH NORRIS-REPKE, INC. FOR RESIDENTIAL AREA 5 STREET MAINTENANCE PROJECT IN THE AMOUNT OF $9,001.73. (b) REALLOCATED PROPOSITION 1B FUNDS IN THE AMOUNT OF $78,000 FROM THE ARTERIAL ZONE 3 CAPITAL IMPROVEMENT PROGRAM BUDGET TO THE RESIDENTIAL AREA 5 CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FY 2008-09; APPROVED PLANS AND SPECIFICATIONS; AND AWARDED THE CONSTRUCTION CONTRACT FOR THE RESIDENTIAL AREA 5 STREET MAINTENANCE PROJECT TO DOUG MARTIN CONTRACTING COMPANY, INC. IN .THE AMOUNT OF $743,562.05; AND AUTHORIZED A CONTINGENCY AMOUNT OF $74,500 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $818,062.05. (c) REALLOCATED PROPOSITION 1B FUNDS IN THE AMOUNT OF $95,000 FROM THE ARTERIAL ZONE 3 CAPITAL IMPROVEMENT PROGRAM BUDGET TO THE LYCOMING STREET REHABILITATION CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FY 2008-09; APPROVED PLANS AND SPECIFICATIONS; AND AWARDED THE CONSTRUCTION CONTRACT FOR THE LYCOMING STREET REHABILITATION PROJECT IN THE AMOUNT OF $554,660.05 TO RJ NOBLE COMPANY AND AUTHORIZED A CONTINGENCY AMOUNT OF $55,500 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $610,160.05. (d) APPROVED CONSTRUCTION ADMINISTRATION SERVICES CONTRACT WITH NORRIS-REPKE IN THE AMOUNT OF $35,940 FOR THE LYCOMING STREET REHABILITATION PROJECT AND AUTHORIZED A CONTINGENCY AMOUNT OF $3,600 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER FOR A TOTAL AUTHORIZATION OF $39,540. JUNE 2, 2009 PAGE 10 CITY COUNCIL (e) APPROVED A THREE-YEAR CROSSING GUARD SERVICES CONTRACT WITH ALL CITY MANAGEMENT SERVICES, INC., BEGINNING JULY 1, 2009 THROUGH JUNE 30, 2012. 6.10 APPROVED A ONE-YEAR EXTENSION TO CITY -COUNTY LAW ENFORCEMENT SERVICES AGREEMENT WITH THE COUNTY OF LOS ANGELES AND AUTHORIZED THE LAW OFFICES OF DAPEER ROSENBLIT AND LITVAK TO REPRESENT THE CITY IN LITIGATION AGAINST THE COUNTY OF LOS ANGELES ASSOCIATED WITH THE LIABILITY TRUST FUND. 7. PUBLIC HEARINGS: None 8. COUNCIL CONSIDERATION: None 9. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: C/Tye commented on the pending lawsuit and that he wanted residents to know that the City Council would do whatever necessary to protect the interest of its constituents even if it means suing the County of Los Angeles to make sure they abide by the rules of the game instead of unilaterally pilfering $6 million from a trust fund. He also wanted everyone to understand that Supervisor Knabe supports the City's position on this issue. Last Saturday he attended the D.B./Walnut Sheriff's Substation to help them celebrate 21 years at that location. Their efforts on the City's behalf are very much appreciate. He recently visited with Shelly Gentry who expressed concerns about a vacant home next to her. He appreciated that she brought this matter to the Council's attention. It is always a benefit to the community to fix a problem and to have the opportunity to improve the process. He invited residents to join in the D.B. Relay for Life at Lorbeer Middle School June 13 and 14. C/Tanaka he attended the Older American Honoree Recognition Ceremony and luncheon at the Hall of Administration. He attended the State of the City address in Chino Hills; the 40th Annual LA County Peace Officers Memorial Ceremony hosted by LA County Sheriff Lee Baca; the Wildlife Corridor Conservation Authority meeting on May 27 and congratulated WCCA Advisory Board appointee Rick Rogers. He reported that WCCA has softened its stance on electrical lines running through Chino Hills State Park. He attended the Regional Chamber Mixer hosted by the Walnut Valley Water District; the Relay for Life Survivor's Breakfast at Pantera Park last Saturday; the D.B./Walnut Sheriffs Station Open House; the Princess Tea hosted by Miss Diamond Bar and her court; an Eagle Court of Honor; a tree planting ceremony at Neil Armstrong Elementary School; and the LA County Fair D.B. Day committee meeting. JUNE 2, 2009 PAGE 11 CITY COUNCIL He thanked FD/Magnuson and her staff for providing a great budget. C/Chang said he attended the LA County Fair D.B. Day committee meeting. On that day a D.B. hero is recognized. There are currently two nominees. Please let committee members know about a hero you believe should be recognized. The Sheriff's Department Open House was a great event. He found the new bulletproof vest to be very interesting and thanked the Sheriff's Department for keeping the community safe. He also thanked the fire department for participating in the press conference at the Diamond Bar Center. He spoke about the importance of having a "kit" of important items and documents ready to go in the event of evacuation and be ready to cooperate with the fire department. This year's Friends of the Library Wine Soiree event raised $43,000 for the library. He thanked Kathleen Newe, Rick Rogers, Tony Torng, Nancy Lyons and others for helping sponsor the event. MPT/Herrera said that all five Council Members attended the Sheriff's Department Open House and other events Council Members have already spoken about this evening. She attended the San Gabriel Valley Council of Governments meeting last week. The election of officers was held over to another meeting due to an unbreakable tie between two nominated candidates for President. It appears that David Spence will continue to serve as President until another election changes that circumstance. The group has voted to go dark for July and August with the next meeting in September. She believed it was the first occasion of a voting stalemate. During these economic times she wanted to share some good news. The City pays dues to LAFCO of which she is a commissioner. Last year the dues went down and again this year dues are decreasing by $100 per city. M/Everett wished Dr. Thelma Melendez, Superintendent, Pomona Unified School District, who was nominated by President Obama to lead the K-12 at the Federal Level reporting directly to the Secretary of Education, the best in her new position. Schools are struggling. He attended the California League of Cities Mayors and Council Members Forum last week and the topic was continuing education. The most significant item was the exercise being led by the organization to take away the 8% loss and fight the State in a concerted effort with the League, California County Association and the California School Board Members Association. The National League of Cities previewed a Civic Youth Environment Engagement for Communities program and tested activities for youth involvement across the country. He congratulated the volunteer groups young and old who contribute to the City. He recognized two Boy Scouts who were present at the meeting and reminded everyone to drive safely as the school session ends. JUNE 2, 2009 PAGE 12 CITY COUNCIL ADJOURNMENT: With no further business to conduct, M/Everett adjourned the regular City Council meeting at 8:15 p.m. — T41"MMY—E CRIBIBINS, CITY CLERK The foregoing minutes are hereby approved this l tifih day of 2009. to SmAwl- I —,���►.