HomeMy WebLinkAbout7/21/2009 Minutes - Regular MeetingMINUTES OF THE CITY COUNCIL
REGULAR MEETING OF THE CITY OF DIAMOND BAR
JULY 21, 2009
CALL TO ORDER: Mayor Everett called the Regular City Council
meeting to order at 6:32 p.m. in The Government Center/SCAQMD Auditorium,
21865 Copley Dr., Diamond Bar, CA.
PLEDGE OF ALLEGIANCE: MPT/Herrera led the Pledge of Allegiance.
INVOCATION: Ahmad H. Sakr, Ph.D 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; David Liu, Public Works Director; Linda Magnuson, Finance
Director, Greg Gubman, Community Development Director; Ryan McLean,
Assistant to the City Manager; Isaac Aziz, Network/GIS Engineer; Marsha Roa,
Public Information Manager, Rick Yee, Senior Civil Engineer; Kimberly Molina,
Associate Engineer; Patrick Gallegos, Management Analyst; Cecilia Arellano,
Public Information Coordinator, and Tommye Cribbins, City Clerk.
APPROVAL OF AGENDA: As Presented.
1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS:
NEW BUSINESS OF THE MONTH:
1.1 C/Tanaka presented a City Plaque to Johnathan Chao, owner,
Shabu Shabu Station, 2803 S. Diamond Bar Blvd., as New
Business of the Month.
2. CITY MANAGER REPORTS AND RECOMMENDATIONS:
CM/DeStefano reported that a structure fire broke out at the strip mall
located at 2020 S. Brea Canyon Rd. about 1:30 this morning. He then
introduced Interim Asst. Chief Greg Jones who went into more detail about
the fire and that the fire appeared to have started at the fagade signage
due to an electrical short. Asst. Chief Jones stated that the Fire
Department was able to contain the fire to one facility with damage to
three offices of the building. Both CM/DeStefano and property
management representatives were also onsite and although three
businesses are temporarily out of business four remain in business.
There were no injuries and the building was not a total loss. Asst. Chief
Jones then announced that at the August 4 Council meeting, his
replacement will be introduced to the City Council.
JULY 21, 2009 PAGE 2 CITY COUNCIL
CM/DeStefano reported that today staff was on scene working with a
demolition crew cleaning up the property, boarding up the building and
securing the site. In the next few days the property owners and their
representatives will receive a demolition permit from the City to deal with
the three affected businesses. At this time, staff is unable to report a
timeline for the three businesses to be up and running but will keep the
Council and residents apprised.
3. PUBLIC COMMENTS: None Offered.
4. RESPONSE TO PUBLIC COMMENTS: None
5. SCHEDULE OF FUTURE EVENTS:
5.1 Concerts in the Park — July 22, 2009 — 6:30 — 8:00 p.m. Upstream
(Caribbean) - Sycamore Canyon Park, 22930 Golden Springs Dr.
5.2 Movies under the Stars — July 22 , 2009 - Igor — immediately
following Concerts in the Park, Sycamore Canyon Park, 22930
Golden Springs Dr.
5.3 Planning Commission Meeting — July 28, 2009 — 7:00 p.m.,
AQMD/Government Center Auditorium, 21865 Copley Dr.
5.4 Concerts in the Park — July 29, 2009 — 6:30 — 8:00 p.m., Present
Tense (Jazz) — Sycamore Canyon Park, 22930 Golden Springs Dr.
5.5 Movies Under the Stars — July 29, 2009 — Stuart Little —
Immediately following Concerts in the Park, Sycamore Canyon
Park, 22930 Golden Springs Dr.
5.6 Parks and Recreation Commission Study Session — Presentation of
Draft Parks Master Plan — July 30, 2009 — 7:00 to 9:00 p.m., City
Hall Conference Room B, 21825 Copley Dr.
5.7 Site D Draft EIR Public Forum — August 3, 2009 — 7:00 to 8:30
p.m., Heritage Park Community Room, 2900 S. Brea Canyon Rd.
5.8 City Council Meeting — August 4, 2009 — 6:30 p.m.,
AQMD/Government Center Auditorium, 21865 Copley Dr.
5.9 Community Workshop — Presentation of Draft Parks Master Plan —
August 8, 2009 — 9:00 a.m. to 11:00 a.m., Diamond Bar Center
Grandview Ballroom, 1600 S. Grand Ave.
JULY 21, 2009 PAGE 3 CITY COUNCIL
6. CONSENT CALENDAR: C/Tye moved, C/Chang seconded, to approve
the Consent Calendar as presented. Motion carried by the following Roll
Call:
AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye,
MPT/Herrera, M/Everett
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
6.1 CITY COUNCIL MINUTES — Regular Meeting of July 7, 2009 —
Approved as submitted.
6.2 RECEIVED AND FILED TRAFFIC AND TRANSPORTATION
COMMISSION MINUTES — Regular Meeting of June 11, 2009.
6.3 RATIFIED CHECK REGISTER — Dated July 1, 2009 to July 15,
2009 totaling $505,097.17.
6.4 ADOPTED RESOLUTION NO. 2009-35: APPROVING PROGRAM
SUPPLEMENT NO. 009-N ADMINISTERING AGENCY -STATE
AGREEMENT NO. 07-455R FOR UTILIZATION OF FEDERAL
FUNDS IN THE AMOUNT OF $1,770,000 ON THE
PREVENTATIVE STREET MAINTENANCE PROGRAM (ZONE 3
& 4 ARTERIAL STREET REHABILITATION PROJECT) FEDERAL
PROJECT NO. ESPL-5455(013).
6.5 APPROVED A CONTRACT WITH BLACKBOARD CONNECT FOR
GOVERNMENT/CONNECT-CTY TO PROVIDE AN EMERGENCY
MASS NOTIFICATION FOR ONE YEAR IN THE AMOUNT OF
$38,709.97 AND ADOPTION OF THE ASSOCIATED SYSTEM
USE POLICY.
6.6 APPROVED CONTRACT AMENDMENT NO. 8 TO EXTEND
LICENSE AGREEMENT WITH COCA COLA FOR THE
OPERATION OF BEVERAGE -SERVING MACHINES IN CITY
PARKS FOR THE PERIOD OF AUGUST 1, 2009 THROUGH
JANUARY 31, 2010.
7. PUBLIC HEARINGS: None
8. COUNCIL CONSIDERATION:
8.1 APPROVAL OF MODIFICATIONS FOR DIAMOND RIDE (DIAL -A -
CAB) PROGRAM.
CM/DeStefano reported that in August 2008 the City Council
adopted modifications to the Diamond Ride Program. However, due
JULY 21, 2009 PAGE 4 CITY COUNCIL
to higher costs of the program, staff has once again taken a look at
the program and is recommending three changes to the program: -
1) Transition from the present 24/7 service to a "fixed hour' service
of 7:00 a.m. to 8:00 p.m.; 2) Transition from a demand same-day
service to a scheduled 24-hour advance notice service; and, 3)
Restriction of users requesting specific drivers in order to correct
some problems within the program.
MA/Gallegos stated that the Diamond Ride Program was
established by the City in 1995 to augment the public transportation
service options available to Diamond Bar seniors aged 60 years
and older as well as, persons with disabilities. To ensure that the
program continued meeting the needs of its users the City
completed a review of Diamond Ride based on ridership trends and
with input from users and transportation industry professionals.
This review resulted in the City Council approving the following
modifications at its August 5, 2008 meeting: 1) Approved unlimited
medical , trips within 20 miles of medical facilities boundaries; 2)
Granted 10 additional non-medical trips within the 20 mile medical
facilities boundaries to qualified participants; and, 3) Eliminated
special trip request authorizations. Since implementation of these
modifications the budget to operate the program has grown
significantly. At the beginning of FY 2008-09 the budget for the
program was $400,000. In one year Council amended the
Diamond Ride Program twice allocating an additional $100,000 on
February 17, 2009 and an additional $60,000 on June 16, 2009
which brought the program budget to $560,000 marking a 40%
($160,000) increase for FY 2008-09. The program budget for FY
2009-10 is also representative of increasing costs to manage the
program with an approved budget of $550,000. A portion of this
increase may be attributed to the slumping economy which may
have played a role in the number of residents registering for this
economical mode of transportation. The weakened economy
coupled with unparalleled program boundaries and increased
participation were the most obvious reasons for expanding costs.
For FY 2008-09, participation increased 30% over the previous FY.
Although participation has grown dramatically throughout the San
Gabriel Valley cities there is no other cab service with such
expansive boundaries as Diamond Ride. The Diamond Ride
Program has grown steadily since 2001 with the monthly average
cost of the program increasing 63% from FY 2001-02 to FY 2008-
09. In addition, the program showed a monthly average cost
increase of 24% from FY 2007-08 to FY 2008-09. FY 2008-09
experienced the highest monthly average cost at $43,994. It is
anticipated that the ,)rogram budget will continue to increase absent
targeted and necessary modifications. Diamond Ride is funded by
Prop A Transit Funds which is funded by portions of the'/2 cent
JULY 21, 2009 PAGE 5 CITY COUNCIL
sales tax measure passed by LA County voters in 1980. For FY
2009-10 the City is expecting to receive approximately $981,900 in
Prop A Funds. In addition to funding the Diamond Ride Program,
these monies are used to fund contract services, which include
popular senior group excursions, special event shuttles such as the
Concerts in the Park series as well as, holiday rides. The transit
subsidy program is also funded by Prop A funds which allow
residents to obtain a discount when using Foothill, Metro and MTA.
These discounts amount to 20% for residents and 50% for seniors
and persons with disabilities. Prop A Funds will also be used to
fund operating expenditures, which include the traffic signal
management system and personnel costs. For FY 2009-10 the
fund balance reserve for Prop A Funds will be $25,947. With such
a low fund balance the City will be hard pressed to incur any
dramatic program increases for FY 2009-10 as well as the ability to
exchange Prop A Funds with other cities, which in the past has
allowed D.B. to utilize funds for a variety of projects including the
SR57/60 feasibility study and congestion relief strategy, the
Neighborhood Traffic Management Program and various speed
hump installations and sidewalk repairs throughout D.B. As a first
- step, staff recommends that the City Council consider three
modifications that will serve to quickly reduce program costs with
minimal disruption to the large majority of program users: 1)
Change from the present 24/7 service to a "fixed hour' service of
7:00 a.m. to 8:00 p.m. D.B. is one of the few remaining cities in the
San Gabriel Valley area with 24/7 service. For FY 2008-09, 93% of
its users placed trip requests between the hours of 7:00 a.m. and
8:00 p.m. and only 7% of users scheduled trips outside those hours
with a majority of those trips made to the Ontario Airport, out-of-
town retailers but within the designated boundaries, and trips to
residential (relatives and friends) homes. 2) Change the current
demand for same-day service to a scheduled 24-hour advance
notice service. 24-hour notice would allow the cab company to
increase the number of shared rides by allowing them to plan
ahead for next day trip requests. In D.B. the number of monthly
shared rides has decreased significantly from a high of 427 in FY
2001-02 to a low of 6 shared rides in FY 2008-09. 3) Restrict users
from requesting specific drivers to prevent misuse of the program.
In the past, the cab company for the Diamond Ride program has,
on occasion, allowed users to request a specific driver; however,
the cab company has already taken steps to ensure users do not
have the ability to request a specific driver nor allow drivers to place
trip requests on a rider's behalf, a normal practice for most Dial -A
Cab providers. Staff believes there are additional opportunities to
reduce costs including but not limited to the following: 1) changes
to boundaries based on specific trip analysis; 2) increased fares for
trips outside of the City limits; 3) generating a targeted list of
JULY 21, 2009 PAGE 6 CITY COUNCIL
designated medical facilities; increasing fares for trips to Ontario
Airport and Fullerton Amtrack stations; and, the use of shuttle
buses to frequently traveled destination points.
MA/Gallegos further stated that staff recommends a phased
approach for any new modifications approved, as well as other
potential modifications for Council consideration if costs remain
high. Based on industry professional experiences, the initial
recommendations are projected to result in program savings of
between 10% and 20% ($55,000 to $110,000). Staff recommends
implementing the initial set of changes within the next 60-90 days.
Many cities have and will continue to consider changes for their
Dial -a -Cab programs including cuts in services and increased fares.
Staff is working diligently to develop modifications that will reduce
costs while maintaining a high level of service without having to
increase fares. Within the coming months staff may bring
additional recommendations to Council if necessary, to ensure that
the Diamond Ride Program remains a reliable and affordable
means of transportation for seniors and persons with disabilities.
By considering all transportation options Diamond Ride, Metro, LA
Access and Foothill, etc. users can gain greater independence
while maintaining their transportation needs.
MA/Gallegos responding to M/Everett stated that 60% of the trips
are to medical and shopping destinations with about 60% of those
trips being for medical. The other 40% represents a variety of
locations including but not limited to, a family or friends home or
local stores within the area.
M/Everett asked how staff determined the fixed hours.
MA/Gallegos responded that most cities in the San Gabriel Valley
run from 8:00 a.m. to 5:00 p.m. Usually, medical, appointments and
mall shopping fall within that time period. Therefore, it seems to be
very liberal to offer the Diamond Ride Program from a fixed hour of
7:00 a.m. to 8:00 p.m.
Sharon Young, 1253 Porte Grande Dr., said she reviewed the three
modifications and had no problem with the proposed fixed hours of
service. She had a sense that the City was mad at a few people
who have abused the service and would not want to see those who
have used the service responsibly to be penalized by those who
have misused the system. From 2001 to present an increase of 10
riders a day does not seem to be unreasonable. She thanked the
Council for restoring and maintaining the service in August 2008.
Recommendation number 2 (24 -hours notice for service) creates a
challenge for individuals who are trying to get to appointments on
JULY 21, 2009 PAGE 7 CITY COUNCIL
time and is a disservice to individuals who attempt to keep
appointments for legal and medical service. She thanked the City
for its very good service to the community.
MPT/Herrera knew that the Diamond Ride program was very
important to a number of the City's senior citizens and those with
medical disabilities who depend on the service to get to their
destinations. The City is trying to provide the best possible
program while maintaining cost controls which is particularly
important this year for the City to maintain as much prudent
management as possible in light of the State's attempt to balance
its budget by taking monies from the cities. It is possible that D.B.
could lose $2.4 million next year and it becomes very important to
control costs as much as possible. Residents expect the City to
live within its means and do the best it can with its programs.
There have been aspects of the program that have gotten out of
control and therefore the regulations under consideration tonight is
an attempt to regain control of the program for the good of the
majority. The City certainly does not want to be punitive but wants
the program to be used ethically as originally planned. She said
she appreciated staff's analysis and hard work because staff has
been studying the program for several months knowing there were
serious problems. She said she was prepared to vote to support
staffs recommendations to see if the problems can be corrected.
C/Tye stated that if Sacramento had kept as watchful an eye on
expenses as has this Council and staff with programs like this the
State would not be in the situation it is in looking to the cities to
subsidize the State budget. He asked staff to address Ms. Young's
concerns about the "bulking up" of rides and how Ms. Young will be
able to get to her appointments on time.
MA/Gallegos responding to C/Tye stated that with a 24-hour
advance notice it allows the cab company to better schedule pickup
and drop offs. In the case of Ms. Young, she would call the cab
company 24 -hours in advance and tell them she needs a ride at a
certain time and will be picked up on time. As the program exists
now users sometimes have to wait up to 40 minutes or longer
depending on the number of on -demand calls the company
receives. In talking with other cities there are growing pains when a
program goes through a change and that is why staff is
recommending 60-90 days to implement the program so that
everyone becomes comfortable with the changes.
C/Tye asked if the cab company in an effort to combine riders might
cause residents to miss their appointments.
JULY 21, 2009 PAGE 8 CITY COUNCIL
MA/Gallegos stated that staff would work it out with the cab
company. The intent of the program is to share rides to reduce --
cost; however not to the point that the rider would miss their
appointment.
PWD/Liu wanted to make sure that everyone understood that with
the proposed change there is no recommendation for change in the
level of service. If the rider needs to get to a 9:00 a.m. appointment
they merely makes the arrangement 24 -hours in advance. Since
the inception of this program, shared rides have always been a
component of the Diamond Ride Program.
C/Tanaka and C/Chang spoke in favor of the program and felt that
the program must be modified in anticipation of the State's budget
shortfall and threat to the cities.
M/Everett asked for clarification of the level of service and the 24-
hour advance requirement.
MA/Gallegos responding to M/Everett stated that the cab company
works 24/7 and residents can make the call 24 -hours in advance.
M/Everett asked if it were true that residents would be expected to
literally call 24 hours in advance of their appointment.
MA/Gallegos said "that would be the hope."
M/Everett said there was no doubt the program needed fixed hours.
A number of seniors he knows tend to be late risers and late
operators and 7:00 a.m. is a premium that may not be warranted
but 8:00 p.m. is a constraint because many markets are open until
9:00 or 10:00 p.m. and toward that hour crowds have lessened
after the rush. He wanted to hear reasons why the hour should not
be increased to 9:00 p.m. or 10:00 p.m. at a minimum.
MA/Gallegos stated that after looking at other cities' fixed hours
generally from 8:00 a.m. to about 7:00 p.m. or 9:00 a.m. to 5:00
p.m., staff concluded that it would be generous to offer 7:00 a.m. to
8:00 p.m. hours.
PWD/Liu added that earlier, MA/Gallegos stated that when the City
looked at all of the data, especially between the hours of 7:00 a.m.
to 8:00 p.m. the number suggested that over 93% of the users were
using the program within those hours.
M/Everett stated that he was in -favor of the concepts and details of
the program except for this item. He also felt that local merchants
JULY 21, 2009 PAGE 9 CITY COUNCIL
were open until 9:00 p.m. and therefore Diamond Ride participants
could take advantage of the extra hour.
C/Chang moved, C/Tanaka seconded, to approve modifications for
the Diamond Ride (Dial -A -Cab) Program as recommended by staff.
MPT/Herrera offered a substitute motion to extend the Dial -A -Ride
hours to 9:00 p.m.
C/Chang accepted the modification.
C/Tanaka commented that he believed the 8:00 p.m. hour was
more than generous for a program that was intended to supplement
other modes of travel.
M/Everett stated that he interpreted C/Tanaka's comment to mean
that he did not concur with the modified motion.
CA/Jenkins stated that there is a motion on the floor that has been
seconded and that M/Everett quite properly sought an informal
resolution by determining if the maker of the original motion and the
seconder would simply informally accept that modification but it
appears that the seconder is not willing. At this point the Council
needs to determine if there is a second to MPT/Herrera's substitute
motion. If there is, the substitute motion would be voted upon first
and if approved, would overlay the original motion.
M/Everett asked if there was a second to the substitute motion. No
second was given. M/Everett called for the question on the original
motion to accept staffs recommendation as presented. Motion
carried by the following Roll Call vote:
AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye,
MPT/Herrera
NOES: COUNCIL MEMBERS: M/Everett
ABSENT: COUNCIL MEMBERS: None
8.2 APPROVAL OF SOLID WASTE CONTRACT WITH WASTE
MANAGEMENT FOR RESIDENTIAL TRASH HAULING
SERVICES.
PWD/Liu reported that the exclusive collection of refuse and
recyclables contract agreement with Waste Management covers all
residential and any temporary roll off box and bin service
associated with the residential sector. On December 2, 2008, the
City Council directed staff to begin a six-month negotiation with
Waste Management. Through a rigorous process of negotiation
JULY 21, 2009 PAGE 10 CITY COUNCIL
meetings held with the representatives of Waste Management, a
franchise agreement designed to protect and enhance the -
environment and address the future solid waste and recycling
needs for D.B. residents is now ready for Council consideration and
approval. The new contract term is for eight (8) years commencing
August 16, 2010 and expiring August 15, 2018 with a one-year
optional extension. The agreement has been reviewed by Waste
Management, HF&H the City Consultant, the City Attorney and City
staff.
Laith Ezzet, Sr. Vice President, HF&H Consultants, stated that his
firm consults with about 250 cities with respect to their solid waste
programs and does not work for waste haulers. Both the residential
and commercial contract agreements are far more comprehensive
than the current contracts the City has. The proposed agreements
will benefit the City by enhancing performance and reporting
requirements; customers will benefit from additional services;
favorable rates when compared to other cities; and, the recycling
and waste diversion will increase significantly. A PowerPoint
presentation detailing the benefits was provided. Mr. Ezzet
reported that household hazardous waste materials (paint,
household chemicals, florescent tubes, batteries) will be funded
through the regular solid waste program; and, that within six
months of the start of the new contract a program for the collection
of sharps (needles, syringes, etc.) will be introduced. Further,
Waste Management will use vehicles powered by natural gas within
17 months and the amount of waste diverted will increase by 5
percentage points. Waste Management has included in the
agreement two mulch giveaway events during each year and a
recycling rebate to customers if recycling materials improve in the
future. There is a weighted rate adjustment mechanism for fuel,
labor and disposal that assures the City will not have to deal with
extraordinary or special adjustment requests as prices move up
and down. There are payments remitted by the contractor to the
City — franchise payment equal to 5% of gross receipts, AB939 fee
payment, road maintenance payment, and sharing of street
sweeping costs. In total these fees will generate $656,000 per
year. Under the current agreement the fees to the City total
approximately $250,000 per year.
Mr. Ezzet stated that with respect to customer rates, the charges
are based on the size of the refuse container with recycling and
green waste being provided as part of the service. The 64 -gallon
rate, the most common level of service, is $21.03 with rate
adjustments normally occurring on an annual basis. The new
agreement will begin August 2010 at which time the rate will
increase by $2.31 per home per month. The rates in the proposed
JULY 21, 2009 PAGE 11 CITY COUNCIL
contract compare favorably with six other cities surveyed. The
current and proposed rate will put D.B. as the second lowest of the
six surrounding cities noting that rates for surrounding cities will
increase by the time the proposed D.B. contract is scheduled to
take effect in 2010.
PWD/Liu said the State has mandated that it is the City's
responsibility to ensure proper disposal and recycling of refuse and
hazardous waste in the community. Staff believes it is extremely
important to secure a responsible and resourceful waste hauler that
will guarantee recycling levels and ensure that the City disposes of
its waste and maintains a diversion rate in compliance with State
mandates. Staff requests that the City Council consider approval of
this comprehensive residential refuse and recycling franchise
agreement with Waste Management.
C/Tanaka asked PWD/Liu to address the annual rate increase
limits in the contract under consideration.
PWD/Liu stated that there is a specific methodology that has been
built into the contract.
Mr. Ezzet explained that there is no cap on the increase. The rate
is based on the actual disposal fee in place at the time. It is
possible that the waste hauler may not go to Puente Hills even
though there is rail hauling in the future. Waste Management owns
their own landfills and may utilize more cost-effective alternatives.
At this point it would be too early to speculate on what those
alternatives may be.
C/Tanaka asked Mr. Ezzet to explain the termination clause.
Mr. Ezzet responded that there are provisions for default and other
matters and more importantly, there are liquidated damages — fines
and penalties, for not meeting performance requirements. Short of
terminating the contract there would first be a series of remedies
that would allow for assessing damages for non-performance in
accordance with the contract requirements.
C/Tanaka thanked HF&H, CA/Jenkins, and staff for their
participation in negotiating this contract.
C/Chang asked if the increase was based on the CPI.
Mr. Ezzet stated that the increase was based on a better formula
than the CPI because the CPI has very little to do with collection of
trash. HF&H developed a much better index that uses the cost of
JULY 21, 2009 PAGE 12 CITY COUNCIL
labor in a solid waste operation, the cost of fuel, the cost of
equipment, etc. so it ensures that the City's rate payers are treated --
fairly and that the company is more likely compensated in
accordance with what is happening with its cost structure. Mr.
Ezzet stated that the waste hauler would propose the rate increase
and in turn the City would review the increase. Although the review
is limited to an administrative action the formula and rate
adjustment is very specific.
C/Chang thanked Mr. Ezzet for negotiating on behalf of the City for
recycling. He asked if the $45 per ton is a reasonable price.
Mr. Ezzet said that if the target is hit the money is rebated to the
customers on their bill and would not go to the City. The $45 per
ton was figured based on historical evidence over the last few
years. Companies have historically retained recycling revenues
and used that money as an offset to its operating costs so it is
reflected in the rates. The goal was if there is a windfall (a big rise
in prices) the rate payers would be able to share in it. It really
depends on China, because a large amount of recycling materials
go to China and those markets are down right now. If the world
market booms again there is a good chance that the price of
recyclables could exceed the historical averages of the past and
there could indeed be a rebate to the customers. Mr. Ezzet said
he believed the price was right if the City's goal was to share any
windfall and big rises in recycling prices.
MPT/Herrera asked Susan Moulton, Director of Public Sector
Services for Waste Management what plans her company has for
adjusting to the closing of Puente Hills landfill in a few years and
whether there would be a big jump in fees to the customers.
Ms. Moulton stated that because Waste Management has disposal
infrastructures set up in the San Gabriel Valley they are working on
permitting a transfer station in Azusa and that their company has
the largest infrastructure disposal sites throughout Los Angeles.
Since the disposal rate adjustment rates are based on actual
disposal the City gets the ben 3fit of Waste Managements' local
disposal sites and will not have to be dependent on a rail hauling
and outside parties such as Puente Hills. D.B. rates will be much
more stable and in short, residents will enjoy much better rates.
M/Everett asked how the annual increase formula compared to the
formula in the current contract.
Mr. Ezzet stated that the current contract does not include a
weighted index using the price indices that are more related to the
JULY 21, 2009 PAGE 13 CITY COUNCIL
solid waste industry. The current contract includes the CPI. The
new contract is based on industry standards and where the industry
is headed. Most cities are basing their contracts on the new index
to avoid extraordinary cost requests due to the fact that the CPI is
dominated by residential real estate, which does not have a lot to
do with picking up solid waste.
M/Everett stated that he was concerned about the rise in rates and
wanted assurance because there is a known quantity in the CPI
and it has worked well for the City for nine years. He was
concerned that the residents may see some volatility.
Mr. Ezzet responded by saying that HF&H conducted an analysis
by looking back over five and ten years when other Council's have
asked the same question. HF&H took historical data using the new
rate adjustment formulas and actually went up by a little less than
the CPI. Historically, the increases have been reasonable and
favorable.
M/Everett said he was also concerned that the new contract
included a 10% increase with the economy as it is today. Other
service providers have buffered their increases and he wanted to
know what options D.B. may have to buffer the stepping up from
the normal CPI of 2% to 3% a year that the residents are used to
budgeting. Are there any options to buffer or step up the
implementation of this increase?
ACM/Doyle stated that the bulk of increase in the rate is about
$2.31 a month. Certainly there are options available to the Council
to phase the rate in from the standpoint that certain elements of the
cost of doing business could be phased in. However, staff feels
that the minimal cost impact to the residents of $2.31 a month is
sufficient for staff to be able to bring the item to Council for full
implementation remembering that this contract does not go into
effect until August 2010.
ACM/Doyle said he felt it was important to note that what D.B. has
seen in recent years is fuel costs increasing significantly and waste
haulers coming forward with those extraordinary cost requests to
the City Council due to those fuel costs. The fuel costs in the
actual weighted index used for purposes of this contract compose
only about 5% of the ultimate formula. Staff believes that this will be
a much better stabilizing factor to reduce those kinds of dramatic
increases as the fuel prices swing wildly upward.
John Rowe, 1229 Porto Grande, Board Member, Montefino
Townhomes, believed that Montefino has been and remains an
JULY 21, 2009 PAGE 14 CITY COUNCIL
exemplary property in D.B. with outstanding maintenance and
landscaping practices. He stated that the residents of Montefino
are now being confronted with an 11 % refuse rate increase which
will result in $11,000 of additional annual fees to Montefino
residents in addition to other service increases for water, etc.
Montefino pays $2600 a year of this fee for street sweeping, a
service that is not provided to Montefino. The new fee for road
maintenance on residential streets will cost Montefino an additional
$3600, a service not provided for the three miles of streets inside
the association. He asked the City to negotiate rate reductions to
offset these services which Montefino will never see, particularly in
the current economic climate. He also would like to have the data
include the 20-25 cities surrounding D.B. and within a 12 -mile
radius of the City. He intends to contact other associations to
advise them of the services for which they pay and do not receive
from the City.
ACM/Doyle stated that Mr. Rowe represents a homeowners
association and the residents therein. Previous conversations with
Mr. Rowe included the fact that the homeowner's association
apparently pays the dues for the waste hauler fees and those dues
are currently passed on to the residents through their homeowner's
association dues. One of their critical issues is attempting to raise
the dues through their election process. Moreover, to speak
directly to Mr. Rowe's comments regarding street sweeping and
road maintenance, Montefino has privately owned streets and the
City is precluded by law from providing maintenance on privately
owned streets and on private property. Residents do enjoy the fact
that other streets in D.B. will be well -paved and that all streets are
swept. ACM/Doyle said that staff understands Mr. Rowe's
concerns and would be willing to help facilitate discussions with the
waste hauler to see what options are available to the association.
His understanding is that in the past there was some previous
experience with Waste Management and their excellent customer
service providing for their landscaping in that they do their own
landscaping services and that green waste is provided through
alternative services which then resulted in a lowering of the
association's rate.
C/Chang commented on the contract and said that it was the first
time he had heard about an eight-year contract.
PWD/Liu responded that originally, the City proposed a ten-year
contract and subsequently,: during a Study Session it was modified
from a ten-year contract to an eight-year contract with a one-year —"
extension. Working together with HF&H it is fairly typical to see an
eight to nine year contract
JULY 21, 2009 PAGE 15 CITY COUNCIL
term. With a ten-year term the City would not want to preclude
itself from meeting future State mandates. Staff believes that an
eight-year contract is a reasonable term with a one-year extension.
C/Chang said he would support the proposal and reminded the
waste haulers that they should remain good partners with D.B. and
its residents.
MPT/Herrera moved, C/Tanaka seconded, to approve the solid
waste contract with Waste Management for residential trash
hauling services. Motion carried by the following Roll Call vote:
AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye,
MPT/Herrera
NOES: COUNCIL MEMBERS: M/Everett
ABSENT: COUNCIL MEMBERS: None
8.3 APPROVAL OF COMMERCIAL REFUSE AND RECYCLING
FRANCHISE AGREEMENT WITH VALLEY VISTA SERVICES.
-- PWD/Liu reported that this franchise agreement covers all bin
served accounts, temporary roll off box service and residential units
that use bins. On December 2, 2008, Council directed staff to
begin the six-month negotiation process with Valley Vista Services.
A rigorous process resulted in a franchise agreement that will
address the future solid waste and recycling needs for D.B.
businesses. The new contract term is for eight years commencing
on August 16, 2010 and expiring on August 15, 2018 with a one-
year option provision. The proposed contract has been reviewed
by Valley Vista Services, HF&H the City's Consultant, the City
Attorney and staff.
Mr. Ezzet stated that the biggest change in the proposed contract is
that all commercial waste will be taken to a material recovery facility
to be processed and recyclables recovered which will offer
significant benefits to the City's waste diversion rate and help keep
D.B. in compliance with the State's requirements to divert.
Currently, the commercial sector is recycling 8 '/2% of everything
collected. Valley Vista owns a facility so they are in a good position
to handle this mandate. Similarly to Waste Management, Valley
Vista will collect construction and demolition debris for commercial
customers and recycle 75% of that material. The same indices are
being used for commercial as residential. Valley Vista will also be
using natural gas trucks within 12 months of the start of the
agreement. Similar to the residential contract, a franchise fee of
5% will be paid to the City (AB939). Total fee payments under this
contract would be $429,000 per year, a significant increase from
JULY 21, 2009 PAGE 16 CITY COUNCIL
the $220,000 per year under the existing agreement. Two of the
most common levels of service for small businesses are the three
cubic yard business service once a week with an increase of
$14.58 per month and twice a week service with an increase of
$25.29 inclusive of City fees. Comparing commercial rates to other
cities, the commercial rate is the second lowest of the cities
surveyed and third lowest based on the rates in effect today, rates
which will increase by next August.
PWD/Liu stated that the State has mandated that it is the City's
responsibility to ensure proper disposal and recycling of all refuse
and hazardous waste in the community and continued partnership
with Valley Vista Services will help the City accomplish these goals.
Staff requests that the City Council consider approval of this
comprehensive commercial refuse and recycling franchise
agreement with Valley Vista Services.
M/Everett asked if there were significant differences in services
included in contracts with comparative cities. For example, is MRF
a part of each of the contracts.
Mr. Ezzet stated he did not believe it was a part of each contract.
D.B. has a very aggressive recycling program and probably more
comprehensive services than most other cities.
PWD/Liu stated that the City of Walnut does not use MRF. D.B.'s
rate reflects the new mixed -waste processing.
Mr. Ezzet commented that by recycling 25% of every ton there is
less to take to the landfill. So when one adds in the landfill fees as
C/Tanaka spoke about that may occur when Puente Hills closes, it
will not be as extreme for D.B. because there will not be as much
waste to deliver to the landfill.
C/Tye said that if one looks at the rates of other cities one cannot
determine what fees are included for the residents.
Mr. Ezzet explained how the rates were arrived at. What this
presentation shows is how it compares to what the customer sees
in other cities. HF&H was very careful to look at all of the services
that the Council was concerned about.
David Perez, Valley Vista Services, thanked the City Council and
staff and especially PWD/Liu and ACM/Doyle and their consultant.
The City is getting increased recycling processing and rates
reflecting the cost to process the waste and whatever additional
City fees are involved. The service component is about the same
JULY 21, 2009 PAGE 17 CITY COUNCIL
as it was in the current contract. Staff has done an excellent job in
achieving its goal of increasing recycling efforts and negotiating a
very aggressive price. It is very evident why this City in the current
climate where other cities are melting down, is well-suited to move
on to the next 20 -years because the City is well run. He thanked
the Council for what he hoped would be their vote of confidence
in his family and in Valley Vista Services.
MPT/Herrera said she was very pleased that recycling was being
increased for commercial, a very important component.
MPT/Herrera moved, C/Tanaka seconded, to approve the
commercial refuse and recycling franchise agreement with Valley
Vista Services as recommended by staff.
M/Everett said he was troubled about the step up and would prefer
to have some way of buffering. He is also fiscally prudent but if
there were any way the City could underwrite and allow a step up
from one to two years in the rate he believed it would be the right
thing to do.
Motion carried by the following Roll Call vote:
AYES: COUNCIL MEMBERS: Chang, Tanaka, Tye,
MPT/Herrera
NOES: COUNCIL MEMBERS: M/Everett
ABSENT: COUNCIL MEMBERS: None
9. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBER
COMMENTS:
C/Tanaka said that he and his wife have been enjoying the Concerts in the
Park and Movies under the Stars events. He reminded everyone about
the Diamond Bar Family Festival sponsored by the D.B. Pony Baseball
League and Pop Warner Football at the Little League field on Sunset
Crossing Rd. from Thursday, July 23 to Sunday, July 26.
C/Tye congratulated State Senator Bob Huff on his being named Senate
Republican Caucus Chairman by Republican leader Dennis Hollingsworth.
Apparently, the State has a budget and the supervisors were quick to say
they would be filing a lawsuit and that the Executive Director of the
California League of Cities would be filing a lawsuit on behalf of the cities
to protect their resources. The reason D.B. is in its good fiscal condition is
because it negotiates well, it saves well, it plans well and because D.B.
has done all =of those things now the State wants to come and raid the
rainy day fund the City has put aside. C/Tye asked everyone to
participate on August 3 at Heritage Park in the Site D Draft EIR Public
JULY 21, 2009 PAGE 18 CITY COUNCIL
Forum because it is important that the City has the public's input for the
record.
C/Chang also encouraged everyone to participate in the Site D Draft EIR
Public Forum and to participate in the Parks Master Plan Town Hall
Meeting at the Diamond Bar Center on Saturday, August 8. Residents
can see from tonight's meeting that the Council is working hard to
maintain a tight budget and remain lean and mean. He commented on the
Dial -A -Ride program and the desire to keep the service for the benefit of
all. He also spoke about the consulting service for the proposed 911
reverse system.
MPT/Herrera thanked the Sheriff's Department and the Fire Department
for their excellent response to last night's fire where most of the
businesses were saved. She announced that at the San Gabriel Council
of Governments- meeting on July 16, Council Member Tom King from
Walnut was elected President. She congratulated Mr. King and stated
that Diamond Bar and Walnut frequently collaborate on many issues and
D.B. looks forward to working with President King.
M/Everett also asked residents to participate and provide input at the Site
D Draft EIR Public Forum August 3 at Heritage Park and the August 8
Parks Master Plan Town Hall meeting at the Diamond Bar Center. Take
time to review the documents on the City's website. He congratulated
FD/Magnuson and her staff for once again being awarded a Certificate of
Excellence in financial reporting. M/Everett reminded residents that from
now until the end of September they can watch replays of the Concerts in
the Park on Saturday and Sunday at 12:00 noon and Wednesday at 8:00
p.m. on DBTV3 and Channel 47. He said he voted tonight against three
items; however, he is in full support of Dial -A -Ride; it was the hour or two
that he was concerned about and felt he needed to express himself. The
solid waste contracts were very significantly exercised thanks to the
consultant, staff and vendors who worked to put together the details. He
really likes both programs and is proud of them. He is concerned with
delivery to the customers in the marketplace. With the way the economy
is other agencies are deferring rates and he would have preferred D.B. to
do so as well. He wished his mother-in-law Marion Hillner a happy 97th
Birthday.
ADJOURNMENT: With no further business to conduct, M/Everett
adjourned the regular City Council meeting at 8:33 p.m.
3 d y
TOMM E CRIBBINS, CITY CLERK
JULY 21, 2009 PAGE 19 CITY COUNCIL
The foregoing minutes are hereby approved this 4th day of August ,
2009.
OMAYOR