Loading...
HomeMy WebLinkAbout4/6/2010 Minutes - Regular MeetingMINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR APRIL 6, 2010 CLOSED SESSION: 5:30 p.m., Room CC -8 Public Comments on Closed Session Agenda — None ► Government Code Section 54956.8 Property Address: 21810 Copley Drive Diamond Bar, CA 91765 Agency Negotiator: City Manager Negotiating Party: Behringer Harvard Western (Portfolio) P.O. Box 190700 San Francisco, CA 94119-00700 Under Negotiation: Price and Terms of Payment Closed Session Adjourned at 6.20 p.m. to the Regular Meeting CALL TO ORDER: Mayor Herrera called the Regular City Council meeting to order at 6:30 p.m. in The Government Center/SCAQMD Auditorium, 21865 Copley Dr., Diamond Bar, CA. CM/DeStefano reported that during this evening's Closed Session the City Council discussed property located at 21810 Copley Dr. Under discussion were price and terms of payment. Further, under Council Consideration, Item 8.1 this matter will be discussed further. No public comments were received and Closed Session adjourned at approximately 6:20 p.m. PLEDGE OF ALLEGIANCE: Mayor Herrera led the Pledge of Allegiance. INVOCATION: Pastor Randy Lanthripe, Church in the Valley, gave the invocation. ROLL CALL: Council Members Ling -Ling Chang, Ron Everett, Jack Tanaka, Mayor Pro Tem Steve Tye and Mayor Carol Herrera. Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; Ken Desforges, IS Director; David Liu, Public Works Director; Bob Rose, Community Services Director; Linda Magnuson, Finance Director; Greg Gubman, Community Development Director; Ryan McLean, Asst. to City Manager; Rick Yee, Senior Engineer; Marsha Roa, PIO Manager; Lauren Hidalgo, Public Information Specialist; Anthony Santos, Management Analyst, and Tommye Cribbins, City Clerk. APRIL 6, 2010 PAGE 2 CITY COUNCIL APPROVAL OF AGENDA: As Presented. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS 1.1 M/Herrera asked Miss Diamond Bar and her Court along with Coordinator Linda Headlee to come down to be introduced. MPT/Tye then introduced Miss Diamond Bar 2010 and her Court. Miss Diamond Bar Julia Hernandez presented the City Council with a Certificate of Appreciation. 1.2 MPT/Tye proclaimed April 23, 2010 "Arbor Day" and presented the proclamation to CSD/Rose. NEW BUSINESS OF THE MONTH: 1.3 M/Herrera presented a City Tile to Cassidi Haskell, Sales Manager, representing Ayres Suites, 21951 Golden Springs Dr. Diamond Bar, as Business of the Month for April 2010. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None Offered. 3. PUBLIC COMMENTS: Jesse Lanz, D.B. Library Manager, announced that National Library Week is April 11 through 17, 2010. Mr. Lanz went on to list the many events planned, with the kickoff event being the 17th Annual Friends of the Library Wine Soiree on Sunday, April 11 from 4:00 to 7:00 p.m. at the Diamond Bar Center. Pat Fabio, representing Congressman Gary Miller's office, announced the Artistic Discovery Art Competition for 2010. She stated that any interested students should call Congressman Miller's office in Brea at (714) 257- 1142 for further details. Rick Rogers, President of the Friends of the Library stated that it is the position of the Friends of the Library that the possible acquisition of the building at 21810 Copley Dr. by the City represents a great opportunity to increase the library. Mr. Rogers then announced the 17th Annual Friends of the Library Wine Soiree being held at the Diamond Bar Center on Sunday, April 11th with all proceeds benefiting the Diamond Bar Library. Tony Torng also spoke in favor of the potential purchase of 21810 Copley Dr. under Item 8.1. 4. RESPONSE TO PUBLIC COMMENTS: None Offered. APRIL 6, 2010 PAGE 3 CITY COUNCIL 5. SCHEDULE OF FUTURE EVENTS: 5.1 Traffic and Transportation Commission Meeting — April 8, 2010 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.2 Sycamore Canyon Park Trail and Restroom Building Dedication — Saturday, April 10, 2010 — 10:00 a.m., 22930 Golden Springs Dr. (Trail Head along Diamond Bar Blvd.) 5.3 Friends of the Library's 17th Annual Wine Soiree — April 11, 2010 — 4:00 p.m. — 7:00 p.m., Diamond Bar Center Ballroom, 1600 S. Grand Ave. 5.4 Planning Commission Meeting — April 13, 2010 — 7:00 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 5.5 City's 21St Birthday Party — April 17, 2010 — 11:00 a.m. to 5:00 p.m. (Carnival rides until 6:00 p.m.) — Pantera Park, 738 Pantera Dr. 5.6 City Council Meeting — April 20, 2010 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Dr. 6. CONSENT CALENDAR: MPT/Tye moved, C/Chang seconded, to approve the Consent Calendar as presented. Motion carried by the following Roll Call: AYES: COUNCIL MEMBERS: Chang, Everett, Tanaka, MPT/Tye M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 6.1 CITY COUNCIL MINUTES: 6.1.1 Study Session of March 2, 2010 —Approved as submitted. 6.1.2 Regular Meeting of March 2, 2010 —Approved as submitted. 6.1.3 Special Meeting of March 11, 2010 — Approved as submitted. 6.2 RECEIVED AND FILED PLANNING COMMISSION MINUTES: 6.2.1 Regular Meeting of February 9, 2010 6.2.2 Regular Meeting of March 9, 2010 6.3 RECEIVED AND FILED PARKS AND RECREATION COMMISSION MINUTES: 6.3.1 Regular Meeting of January 28, 2010 6.3.2 Regular Meeting of March 9, 2010 APRIL 6, 2010 PAGE 4 CITY COUNCIL 6.4 RECEIVED AND FILED TRAFFIC AND TRANSPORTATION COMMISSION MINUTES for the Regular Meeting of January 14, 2010. 6.5 RATIFIED CHECK REGISTER - Dated February 25, 2010 through March 30, 2010 totaling $2,384,103.27. 6.6 APPROVED TREASURER'S STATEMENT — Month of February 2010. 6.7 RECEIVED, ACCEPTED AND FILED PROPOSITION A LOCAL RETURN FUND, PROPOSITION C LOCAL RETURN FUND AND TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 ANNUAL FINANCIAL REPORT FOR FISCAL YEARS ENDED JUNE 30, 2009 AND 2008. 6.8 INCREASED CONTRACT WITH THE COMDYN GROUP, INC. FOR AS -NEEDED INFORMATION TECHNOLOGY SERVICES FROM $38,150 TO AN AMOUNT NOT -TO -EXCEED $47,150. 6.9 APPROVED PLANS AND SPECIFICATIONS; AWARDED CONSTRUCTION CONTRACT FOR THE 2009-2010 CLEGHORN DRIVE/GOLD NUGGET AVENUE NEIGHBORHOOD TRAFFIC MANAGEMENT PROGRAM PROJECT TO PREMIER PAVING, INC. IN THE AMOUNT OF $14,962 AND AUTHORIZED A CONTINGENCY AMOUNT OF $1,500 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $16,462. 6.10 ADOPTED RESOLUTION NO. 2010-09_ SUPPORTING THE LOCAL TAXPAYER, PUBLIC SAFETY AND TRANSPORTATION PROTECTION ACT OF 2010. 6.11 AUTHORIZED THE CITY MANAGER TO PURCHASE THREE HYBRID FLEET VEHICLES FROM MCCOY MILLS FORD AT A COST NOT -TO -EXCEED $100,000 USING SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT AB2766 SUBVENTION FUNDS. 7. PUBLIC HEARINGS: None 8. COUNCIL CONSIDERATION: 8.1 ACQUISITION OF 21810 COPLEY DRIVE FOR USE AS CITY HALL AND RELATED PUBLIC FACILITIES. - APRIL 6, 2010 PAGE 5 CITY COUNCIL CM/DeStefano stated that staff is recommending that the City Council authorize the purchase of the building at 21810 Copley Dr. based on the following information. As indicated earlier, D.B. is almost 21 years old. Since 1989 the City Hall has been located within leased office space within the Gateway Corporate Center. In March 2001, after residing at the location since incorporation, City offices moved from 21660 Copley Dr. to its current location for which the current 10 -year lease is about to expire (February 28, 2011). Due to decades of growth, staff believes it is now appropriate to consider a permanent and publicly owned home for City Hall and related public facilities. As the AQMD lease comes to a conclusion a negotiation process began with AQMD for a potential lease renewal. As a part of that process, staff began to look at other opportunities within the City that were of the size and scope to accommodate the facilities and provide the qualifications for a City Hall facility. During the search for lease space, staff became aware of the availability of property directly across the street from the current facility at 21810 Copley Drive. Staff first inquired about leasing the property and the lease was substantially higher than what staff hoped to negotiate with the AQMD. From - that discussion emerged the possibility of a potential purchase of the building. The building has been vacant since December 31, 2009 when the 10 -year lease with Allstate Insurance expired. The 12,000 sq. ft. of current AQMD space is no longer sufficient to serve the City's needs and accommodate the myriad of services that have been added to the City's menu. Discussions with the AQMD included a request to expand the existing 12,000 sq. ft. to at least 15,600 sq. ft. The renewal lease fee for the AQMD space would be about $1.96 per square ft. which is a competitive rate and a rate that included a new fee for use of the AQMD Auditorium. The current lease costs the City approximately $270,000 per year. The new lease with the AQMD with the added square footage would cost approximately $100,000 more per year. A 10 -year lease with an assumption of an annual CPI adjustment of approximately 3% would result in a 10 -year lease payout of about $481,000 per year. In addition to the AQMD space, the City rents 12-14 self -storage facilities throughout D.B. at a cost of about $20,000 per year. About 10 years from now the storage facilities cost would most likely be closer to $30,000 for which would continue to be a very inefficient service level for retention of records. Assuming a 10 -year lease at the same rate of CPI increases, at the end of 20 years, the City would spend approximately $685,000 per year in rent and almost $40,000 per year in storage fees. Using PowerPoint showing the building, CM/DeStefano stated that 21810 Copley Dr. is a building located directly across from the APRIL 6, 2010 PAGE 6 CITY COUNCIL AQMD campus and is owned by a Dallas based commercial real estate firm (Behringer Harvard — seller) that has five buildings within the portfolio that includes the 21810 Copley Dr. building. Staff has negotiated a purchase price of $9,917,100 ($180 per sq. ft. for 55,095 usable sq. ft.) The building is currently vacant and in very good condition. The building was purchased by Behringer Harvard in 2005 for about $13 million. The building has 300 parking spaces surrounding the building. The building offers the lowest possible relocation costs due to its proximity to the current location since the current infrastructure is located within the street. Staff estimates that the total moving expenses and tenant improvements will cost about $1 million. Should the City Council decide to purchase the building, staff would recommend that City Hall offices be located on the second floor which would leave the first floor open for public and private uses that would provide the best opportunity for partnerships and economic benefit. Significant tenant improvements would be needed to properly configure the open office space with public reception areas, meeting room areas, community spaces and appropriately sized employee work spaces. Staff is looking at this facility for a variety of reasons including providing adequate space for all City services, a dedicated emergency operations center; a larger public service counter; more public meeting rooms; elimination of off-site rental storage; provide a public safety personnel area; storage, office and computer training room (relocated from the Diamond Bar Center), providing additional parking space, etc. The move will require consulting services for the tenant improvements at a cost of approximately $1 million. CM/DeStefano stated that the cost to purchase the building $9.9 million will require $2 million additional dollars to move everything and provide the public and employees with the infrastructure to be fully operational. Because the current furniture, fixtures and equipment are owned by the AQMD, there is very little of the current furniture, fixtures and equipment that could be relocated to a different City Hall site and most of the current equipment is quite outdated. Ownership of a new building would by its nature create certain costs that the City does not presently have such as paying for lights, water, interior maintenance, landscape and building maintenance, association dues, depreciation, etc. Staff further believes that those costs with potentially new employees to care for the building would be about $400-$450,000 per year. Staff believes that if City Hall occupied the entirety of the second floor of 27,000 sq. ft. for City Hall operations, there would also be some APRIL 6, 2010 PAGE 7 CITY COUNCIL additional space required on the first floor to accommodate the IT server room and a large space for community meetings. The obvious choice for the remaining ground floor square footage was to work with the County of Los Angeles to consider moving and expanding the existing Diamond Bar Library branch. County officials and their architects have visited the site and believe that it can be done. In lieu of a floor plan, staff believes that there is about 18,000 sq. ft. available for a dedicated library space with additional space through sharing of some common areas which would arrive at about the 25-26,000 sq.ft. library for which the City was requesting in the California State Bond Act application of 2004. The County is looking at this very carefully. CM/DeStefano stated the he did not want to imply that the County would move into the space because negotiations are not to that point as yet. Another public option is addressed in the new Parks Master Plan which talks about the need for planning for improved and expanded senior services. If the City decided not to have an agreement with the County for a library within the building the City might wish to create a dedicated senior facility within the ground floor of the public spaces. Because senior activities occur multiple days of the week at the Diamond Bar Center it impacts the City's ability to generate rentals from corporate users that want to lease the space for business meetings, etc. If not for the aforementioned, the Copley Drive space could be leased out to other public entities or leased out to private tenants. The market for leasing space is very soft at this point in history and I would caution the Council that it may not be a time that space could readily be rented out. However, the building could provide an attractive location for an additional government use or private use and likely within a couple of years, it could be an attractive use for such a tenant. A secondary public use or a private use would generate lease revenue to the City in addition to that which the City might receive from a library negotiated lease. CM/DeStefano stated that staff asked its financial consultant to look at the City's fiscal health and overall ability to finance, purchase with cash and to operate and maintain the building. The consultant concluded that under the most conservative revenue forecasts, the City indeed had the ability to purchase the building outright, to purchase the building through financing options and/or to maintain and operate the building. Staff took the most aggressive review of what the resources would be. The City has limited resources today compared to a few years ago thanks to the economy, the State of California and so forth. Staff did not assume the better years in its analysis. Staff also did not assume any financial resources coming from the stadium project. With all of that, the consultant tells staff it believes that the City has the financial health and ability to conduct APRIL 6, 2010 PAGE 8 CITY COUNCIL this transaction. Because the market is soft for office purchases and because the building is vacant and this building is part of a small portfolio the seller owns, it is advantageous for the City to be able to acquire the building quickly because with the City's ability to complete a transaction by initially funding the purchase with cash the building can be acquired at a lower rate. Paying cash initially for the purchase does not limit the City's ability to finance the cash purchase. Staff is seeking Council's approval to purchase the building with all cash. Staff is further asking that the Council look at financial options at a later date. Should the Council approve the purchase and direct staff to proceed, it does not preclude the Council from financing all or a portion of the purchase in a timely manner due to legal and tax issues related to an all cash purchase versus a financed purchase. The sales price that CM/DeStefano has negotiated with the seller is $9,917.100. Staff is seeking authorization from the City Council to purchase the building and with that authorization, allow the Mayor, City Attorney and CM/DeStefano to work with the seller and the seller's agent to complete the necessary paperwork. M/Herrera opened the matter to public comment. Helen Doss, 23806 Cholame Dr., said she was very excited when D.B. became a City and felt the purchase of its own building was a wonderful opportunity and step forward. C/Chang felt the purchase of the building was the most fiscally responsible move for the City at this time. C/Chang moved, MPT/Tye seconded, to direct the Mayor, CM/DeStefano and CA/Jenkins to move forward with the cash acquisition of 21810 Copley Dr. MPT/Tye felt this was the right time to do the right thing and this happens to be the right place which is very close to the current City Hall and convenient to residents. He asked for more insight into the City's discussions with the County regarding locating the library facilities at the new building. He agreed with C/Chang that this is the fiscally responsible thing to do and it was his pleasure to second C/Chang's motion. C/Everett thanked residents who spoke in favor of the purchase. He said he also agreed it was time. Other residents have spoken in favor of the acquisition. One resident was concerned about kids walking from Lorbeer Middle School. He felt since the walk was only 10 minutes longer than to the current location the students APRIL 6, 2010 PAGE 9 CITY COUNCIL would be able to deal with the change. He appreciated staffs work and was interested in moving forward with the cash transaction and looking at the public and private financial opportunities as soon as possible. C/Tanaka said when he first heard about the opportunity he was very excited about D.B. having a home and a City Hall; but learning that the new location did not call for a City Council Chamber he felt it was somewhat incomplete. He views a government center and a City Hall as being comprised of offices, conference rooms, and storage but also as a location that residents can look to with pride as a facility that includes Council Chambers. He advocates expansion of the library and would prefer to see it built where originally intended next to the Diamond Bar Center; however, if the option is that the City is not able to build a Council Chamber he would still support the proposal and would like for staff to look at the cost to build a Council Chamber on the lower level. He was also concerned about a library co -habiting with a City upstairs and a library downstairs and folks being confused about whether they were visiting a public library or going there to do business at City -- Hall. M/Herrera said she also supported the fabulous and exciting opportunity. Many are concerned about the downturn in the economy but what that has led to is a benefit to the City by making available a building that the City might not otherwise be able to afford a building that is in excellent condition and a building that is much, much larger than the City would need for a City Hall that could accommodate other uses. She is making a commitment to the community to speak directly with Supervisor Knabe and use all of her persuasive powers to talk him into relocating the library to the new building because it is a great opportunity for the City of D.B. She believes this is the most fiscally prudent course of action for the City. It would have cost about $20 million dollars to build only a standalone library and for under $10 million dollars the City is getting two possible excellent uses for the price of one. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chang, Everett, Tanaka, MPT/Tye M/Herrera NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None M/Herrera thanked all who spoke in support of this matter. APRIL 6, 2010 PAGE 10 CITY COUNCIL 9. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: -- C/Everett said he enjoyed and appreciated the State of the City presentation following last Council meeting. He encouraged residents to view the presentation. He appreciated the March 11 Special Meeting at 21810 Copley Dr. which helped the Council come to a good conclusion this evening. It was a pleasure to attend the Miss Diamond Bar Pageant. He congratulated Miss Diamond Bar and her Court and Mike Shea who served as emcee. March 28 he attended an excellent presentation by the Diamond Bar Community Foundation at Mt SAC — a community spotlight on the arts. He said it was his privilege to attend the League of Cities Planning Institute March 24-26 and the excellent training that will be very useful to him as a Council Member. He attended the Regional Chamber of Commerce Good Friday Sunrise Breakfast. On Saturday he attended the Pantera Park Easter Egg Hunt and Pancake Breakfast. His heart and prayers go out to all who have suffered through earthquakes as well as the victims and their families of the coal mining accident. C/Tanaka attended the March 3 Pomona Unified School Board meeting during which possible cuts in the music and arts programs were discussed; the State of the City and reception; D.B. Pony Baseball's opening ceremony on Saturday, March 6; the Miss Diamond Bar Pageant Car Wash on Sunday, March 7; Eagle Scout Ceremony for Koree Hamilton Hines from Troop 777; March 9 and 10 a couple of Neighborhood Watch meetings; Diamond Bar Senior Citizens' St. Patrick's Day Celebration and lunch; and, the Miss Diamond Bar Pageant on March 21. He congratulated Miss Diamond Bar and her Court and thanked them for remaining with the Council through the meeting. On Wednesday, March 24 he attended the retirement of five firefighters from the Los Angeles County Fire Department. Last Saturday he attended the 27th Annual Easter Egg Hunt sponsored by the Diamond Bar Breakfast Lions Club and the City of D.B. He thanked CSD/Rose, staff and volunteers for doing an outstanding job. C/Chang reported that she and her colleagues attended the National League of Cities in Washington D.C. to lobby for transportation funding and in particular, for the SR57/60 Confluence project and other projects that would benefit D.B. While there she learned about a program that would benefit the residents of D.B. —a pharmaceutical discount card available to member cities of the NLC, which give residents of these cities up to 20% off of the pharmacy's regular retail price at no cost to the City. Pharmacies in the network agreed to absorb the costs of the discount so the benefits to the member pharmacies are customer loyalty and increased store traffic. She asked staff to look into the program and update the City Council and residents. She congratulated Miss Diamond Bar and her Court; applauded the Diamond Bar Community Foundation APRIL 6, 2010 PAGE 11 CITY COUNCIL for doing such a fabulous job in presenting Community Spotlight on the Arts. She congratulated and thanked staff for doing such a great job with the Easter Egg Hunt and thanked C/Tanaka and his wife Wanda for all of their work and the Leo's for volunteering. She asked if staff could look into a potential project; a dog park. For many years during her service on City Commissions many people have approached her asking for a dog park and more recently even more residents have asked about the potential for a dog park. She said she envisioned using a small unused portion of an existing park as a dedicated space for residents and their dogs. She invited residents to visit her on Twitter to read her frequently updated report on City activities. MPT/Tye said that it was a privilege to attend the Pony League opening and throw out the first pitch. On March 7 he attended the Eagle Scout Honor Ceremony. MPT/Tye stated that 4% of all Boy Scouts become Eagle Scouts. Congratulations to Koree and Troop 777. He was privileged to attend the Fire Department retirements and the Easter Egg Hunt. On March 28 he attended the Diamond Bar Community Foundation Spotlight on the Arts. Austin Chen from DBHS who captured the Grand Prize at the Grotrian Steinweg International Piano Competition in Germany gave a spectacular performance. It is encouraging that the Diamond Bar Community Foundation puts together these kinds of programs because often people are wondering what can be done during these difficult economic times. The Foundation helps raise funds for DBHS, Diamond Ranch High School and for the Pacific Crest Youth Arts Program for scholarships. He encouraged everyone to attend. M/Herrera said that the City Council works very hard and many Council Members were in attendance at the same events. While there was no City Council Meeting the second Tuesday in March the Council continues to work very hard on behalf of the residents. She thanked Miss Diamond Bar and her Court and was very impressed that they remained for the entire Council Meeting. While in Washington D.C. Council and staff members met with Senators Barbara Boxer and Dianne Feinstein; Congressman Gary Miller, David Dreier and Congresswoman Grace Napolitano and their staff members. Everyone seemed very receptive to the requests and Council and staff are hopeful that their requests will be funded. M/Herrera serves on the Regional Council of SCAG that last week took action to approve the amendment to the 2008 RTP (Regional Transportation Plan) which included the SR 57/60 adjusted project price of $260 million as well as, the Lemon Avenue Project. This has been a very exciting evening and she is very excited about the action the Council took this evening and commended them for their courage in voting yes to move forward to buy a building, one of the most momentous things this City has undertaken. She believes it is the right thing to do for the City and will be a very good venture for the City. It will be very exciting to be the owner of a home after being a renter for 21 years! She looks forward to additional information APRIL 6, 2010 PAGE 12 CITY COUNCIL about the building and potential financing options. There are many things to resolve such as convincing the Los Angeles County Library to make this _ advantageous move. ADJOURNMENT: With no further business to conduct, M/Herrera adjourned the Regular City Council meeting at 8:12 p.m. 4 JJL- TOMMYE dRIBBINS, CITY CLERK The foregoing minutes are hereby approved this nth day of April 2010. CAROL HERRERA, MAYOR