HomeMy WebLinkAbout5/18/2010 Minutes - Regular MeetingCITY OF DIAMOND BAR
CITY COUNCIL STUDY SESSION
MAY 18, 2010
STUDY SESSION: M/Herrera 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 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; Susan Full, Senior Accountant;
Anthony Jordan, Parks and Maintenance Superintendent; Christy Murphey,
Recreation Specialist; Greg Gubman, Community Development Director; Ryan
McLean, Assistant to the City Manager; Rick Yee, Senior Civil Engineer;
Kimberly Molina, Associate Engineer; Marsha Roa, Public Information Manager;
Anthony Santos, Management Analyst; Patrick Gallegos, Management Analyst;
Dennis Tarango, Building Official; and, Tommye Cribbins, City Clerk.
► REVIEW OF DRAFT BUDGET FOR FY 2010-2011 — DISCUSSION AND
ACTION
CM/DeStefano presented the Council with an overview of the updated
draft budget for 2010/11 indicating that the most notable change had to do
with the proposed City Hall and Library building. When the Council
previously discussed the budget on May 4 there was a basic discussion
on the General Fund. Tonight staff would like to take the opportunity to
answer any questions the Council may have regarding the General Fund
as well as, answer questions about the Special Funds and/or Capital
Improvement Program.
CM/DeStefano stated that the biggest addition to the budget is the
addition of roughly $12 million to the estimated resources coming from
reserves for the purchase of the City Hall building and the resources
needed to move our operations to the new location. Staff anticipates the
close of escrow on the building and all or a substantial portion of the
tenant improvements being constructed or encumbered within the next
fiscal year. When the resources and the expenses are accounted for at
the end of June 2011 staff anticipates having about $17,700,000 in
reserves leaving the Council with substantial resources that are still higher
than cities in the immediate vicinity of D.B. The bottom line is that the
City is still in very, very good economic shape.
CM/DeStefano pointed out a couple of things that have changed since the
last budget discussion: The potential 2.4% CIP living adjustment for all full
and part time staff for a total of about $144,000. The numbers have been
refined as well as a mathematical error corrected adding up to an
MAY 18, 2010 PAGE 2 CC STUDY SESSION
allotment totaling $153,161. Special Funds are a variety of different
measures and resources that come to the City from the State, County and -
Lighting and Landscape Assessment Districts.
The budget message speaks to the use of those special funds and talks
about how the City has been very careful with use of resources this year
while relying more on Prop C monies in the next year for transit and then
moving back to Prop A funds in the following year. The Integrated Waste
Management Fund is part of the Special Funds (AB939 fees) that
incorporate street sweeping and a variety of other things, along with air
quality improvement fees, etc. The Landscape and Lighting Assessment
Districts continue to be a drain on General Fund resources and that will
continue to grow. CSD/Rose has done an outstanding job in an effort to
keep costs as low as possible while keeping the medians and hillsides as
green as possible. But it is getting tougher because the City's resources
are static and yet the everyday expenses continue to rise.
The Capital Improvement Projects Fund is about $4.5 million out of which
key elements include street improvements, traffic management projects,
traffic mitigation programs, curb installation, as well as fixing the drainage
problem near the intersection of Brea Canyon Rd. at Via Sorella. Some of
the more visible capital improvements staff hopes to complete and has
budgeted for the next year are in Parks and Recreation for additional trail
enhancement in Sycamore Canyon Park, development of Washington
Park, and retrofits at the mini parks in the Summitridge/Longview area.
C/Tanaka said he liked the way the budget was presented and found it
very easy to follow.
Public Comments: None Offered.
► CITY FEES — DISCUSSION
ATCM/McLean provided a PowerPoint presentation of the proposed
phasing approach to increasing rates as was discussed at the previous
study session.
CSD/Rose then discussed how fees are calculated for different user
groups when utilizing the various park facilities.
C/Chang said she was comfortable with increases for all of the groups but
not for individual residents.
Both C/Tanaka and MPT/Tye were comfortable with rate increases as
proposed by staff. _-.
MAY 18, 2010 PAGE 3 CC STUDY SESSION
CM/DeStefano stated that staff would bring back this item on June 15,
2010 for adoption.
ClEverett said he had a number of questions on various line items.
CM/DeStefano stated that this City Council as well as City Councils' in the
past have talked about attempting full -cost recovery. However the City
would end up
with vacant buildings and angry residents if the City were to attempt to
gain full cost recovery for service levels provided.
C/Everett said he had great respect for staff's ability to make things work
and balance the equations. He questioned whether the Maximus numbers
were good honest numbers for full cost recovery.
CM/DeStefano stated that Staff and in particular the departments that
provide significant services to the public have all taken a look and as one
can see staff's recommendations and Maximus's recommendations do not
necessarily agree. Staff understands the Council's philosophy present
and past. Staff does not necessarily agree with the consultant that
thousands of dollars for a service that staff believes can be provided for
hundreds of dollars is an appropriate fee to establish. Therefore, staff
tried to take a look at each and every item and attempted to be reasonable
but at the same time very cognizant of cost recovery.
C/Everett said he thought the fee schedule charts made sense. But that
he was having trouble reconciling the different group identifications giving
the example of "non-profit, residents and non-residents" and Groups A
through G for field use and Group A through G for facilities. He asked if
they could be more consistent.
CSD/Rose said he understood what C/Everett was saying; however, the
two groups are very different with one using fields and one using
buildings.
C/Everett asked if CSD/Rose was saying the groups are so different that it
wouldn't matter that there were two "Group A's" in two different lists.
CSD/Rose agreed and explained how his department's fees have evolved
over time.
M/Herrera explained that in the past, City Council Members have agreed
that there needs to be special consideration for certain groups and that is
why there are so many different categories.
MAY 18, 2010 PAGE 4 CC STUDY SESSION
C/Everett stated that although it makes sense it is difficult for him and is
concerned that it is confusing and therefore would be better if it went from
A through L rather than repeating the alphabet. He looked at the reports
Council received in December and last meeting. The report talks about
non-profit current uses of $1100 going to $1200 and that D.B. residents
are $2400. He stated that he has gotten enough questions from D.B.
residents thinking they pay double what non -profits pay. It is a little
different when he looks at the details of A through B and understands
CSD/Rose is doing it this way to balance costs and revenues.
CSD/Rose stated that non -profits were limited to the weekends for that
rate.
C/Everett reiterated that it bothers him that rates are significantly different
for non -profits and D.B. residents because he is fighting for D.B. residents.
If he looks at staffs recommended changes it makes him think that other
people will expect some kind of a discount too so why reduce any of these
— they should be flat.
CSD/Rose reiterated that Diamond Bar Center has always had a long list
of different categories. Both Heritage and Pantera were much simpler over
time and now staff has put in a non-profit rate for the Diamond Bar Center
which was never before included.
C/Everett recommended keeping 55/55 going across or going up rather
than giving a couple of people a minus. Regarding field use December
2006 the Council tabled that item in May 2009 and there was a lot of
public interest and he did not think that item was sunshined. It hasn't
been in any of the Council studies and is not in the report today. It does
not affect it as much as the 2009 recommendation did so he would like to
see that sunshined for the athletic field users and teams.
CSD/Rose said the group that was significantly recommended in 2009
was then what is now "CS16 Athletic Field Group B" for which staff was
recommending a $10 per participant fee in 2009 which staff has removed
completely. That was the primary issue that brought people out who
addressed that item as their greatest concern. What he heard at that
meeting was that there was not a real concern with moving non-resident
rates. So the CS2 recommendation is from May 19 and CS 4 — again,
non-resident $12 per hour for lights was originally recommended to be $40
fee. Since staff is recommending that CS3 remain at $12 staff is also
keeping the CS 4 rate the same. The only other recommendation that
would affect residents is CS 5.
C/Everett wanted to know about teams.
CSD/Rose explained that all of those qualify under CS 16.
MAY 18, 2010
PAGE 5 CC STUDY SESSION
M/Herrera stated that C/Everett is giving his opinion and that staff needs
to know if there is a majority of the City Council that agree with the
changes that he is asking staff to make.
M/Herrera stated that she is satisfied with the figures staff has and the rest
of the Council needs to weigh in on these items.
C/Everett said he wanted to sunshine where changes are being made.
CM/DeStefano asked what C/Everett meant by "sunshine" — advertise it
and tell the public the numbers? Or, sun setting a determination?
C/Everett said he is putting a spotlight on it at a minimum for Council and
for public sessions and how broadly the Council goes he believes it needs
to be fair.
CM/DeStefano said that all fees are widely advertised and staff is very
used to dealing with the public, the user groups and the folks that utilize
the Diamond Bar Center. Council Members may not have intimate
knowledge of all of the numbers and how they apply and what is the best
bang for the buck for the users.
C/Everett said he just wants to
this one has been almost con:
the Council has had in the las
increases are going to be CPI
Because some fees in other
wondered if was an oversight,
CM/DeStefano responded "No."
make sure the City is making it public and
ciously left out of almost every discussion
month or two. Other than that all of the
where they are projected out three years.
areas such as engineering are flat and
Following further discussion, C/Everett said staff had clarified everything.
M/Herrera said that in the beginning when Council talked about the
different groups that would want to use the Diamond Bar Center there was
a lot of input regarding D.B. residents and non -profits and that the non-
profits were very vocal about being "given a break" in the rate. That is
how they got into a different category versus residents who want to rent
the Diamond Bar Center for private events where perhaps they have more
money available to rent the facility and that is why there is a difference in
those kinds of categories.
M/Herrera asked for the Council's opinion about the flat $50 rate so that
staff has clear direction for preparing final figures and reports. In short, is
Council satisfied with the report in general or support the changes as
expressed by C/Everett.
MAY 18, 2010 PAGE 6 CC STUDY SESSION
C/Chang said she was struggling with the increases for residents but was
on board with the balance of the report. --
C/Tanaka said the increases have to happen as a cost of doing business.
He does not want the City to get into a position of no longer being able to
provide the quality programming the City has always provided. He said he
was comfortable with staff's proposal for the $5 reduction.
MPT/Tye said he did not think the fees had anything to do with the quality
of service but wanted to make sure that everyone understood that if it
costs $100 to use a building or field and the City charges $5 the City is
subsidizing $95 whether it is a non-profit, D.B. resident or non-resident.
So the City is subsidizing D.B. residents more than any other group other
than non -profits because they get a break right out of the chute. The City
is not ever going to recover the costs because if we did we would have
empty parks and empty buildings. It makes no sense to build landscape
and water a park if they are not going to be used. It makes no sense to
build a Diamond Bar Center if people cannot afford to use it. So the
question is, we need to get as close as possible.
CSD/Rose and CM/DeStefano said the Diamond Bar Center recovery was
at about 75-80%. This figure is a little lower at this time than a year or two
ago because of the economy.
MPT/Tye stated that whether or not the resident is paying $5 or $50 the
City is subsidizing these facilities and events. There are some things the
City does for its residents and he thinks that the increases are appropriate
and manageable but he does not want to go through this line by line and
group by group. He stated that he didn't agree with everything the
consultant recommended but that he trusts the (City) departments enough
to say this is appropriate and therefore is comfortable with what staff is
recommending.
C/Everett asked, whether or not the City should charge non -profits more?"
M/Herrera said "Yes." Again, that's part of his argument that it is just a
little higher from residents compared to the difference between non-profit
and residents.
CM/DeStefano said it goes back to the fact that there is a tipping point and
at some point if you are not reasonably close to what the market is
dictating then you will not get the non-residents to rent the facility and then
you have an empty facility that you are still maintaining. We try to be
competitive the number should be higher than for a resident. But again,
the City tries to be competitive in order to keep the facility occupied. --
MAY 18, 2010 PAGE 7 CC STUDY SESSION
M/Herrera felt the residents should have first preference and have better
rates. Seniors will tell you every day of the week that they should have
the most preference and the least rate.
C/Chang said she was very surprised to see the report and it would
probably be kind of a shock to the community because residents are
probably under the assumption that rates have been subject to CPI all of
these years. It is somewhat difficult for her but she can go with the report.
CM/DeStefano addressed M/Herrera stating that with the assumption that
there will not be a first meeting in June staff would plan to bring this back
for adoption June 15.
Public Comments:
Sid Mousavi asked about an item to which staff responded it was a typo
(duplicate item).
ADJOURNMENT: With no further business to discuss, M/Herrera
adjourned the Study Session at 6:15 p.m.
TOMMYE CtRIBBINS, City Clerk
The foregoing minutes are hereby approved this 15th day of jun,
2010.
CAROL HERRERA, Mayor
MINUTES OF THE CITY COUNCIL
REGULAR MEETING OF THE CITY OF DIAMOND BAR
MAY 18, 2010
STUDY SESSION:
5:15 p.m., Room CC -8
► Review of Draft Budget for FY 2010-11 — Discussion and Action.
► User Fee Study — Discussion.
Public Comments: None Offered.
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 Study Session Council
discussed the draft Budget that staff will be asking the City Council to consider
and adopt later this evening. During the review, the General Fund, Special
Funds and Capital Improvement Projects were further discussed. Council also
received more in depth discussion regarding potential User Fee changes which
entail some increases and some decreases to the Development Services Fees,
Community Services operations, etc. which is tentatively scheduled for possible
adoption on June 15, 2010.
PLEDGE OF ALLEGIANCE: Mayor Herrera led the Pledge of Allegiance.
INVOCATION: Monsignor James Loughnane, St. Denis
Catholic Church, 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 Deforges, IS
Director; David Liu, Public Works Director; Bob Rose, Community Services
Director; Linda Magnuson, Finance Director; Greg Gubman, Community
Development Director; Ryan McLean, Assistant to the City Manager; Susan Full,
Sr. Accountant; Kimberly Molina, Associate Engineer; Patrick Gallegos,
Management Analyst; Anthony Santos, Management Analyst; Cecilia Arellano,
Public Information Coordinator; Rick Yee, Sr. Civil Engineer; and Tommye
Cribbins, City Clerk.
APPROVAL OF AGENDA: As Presented.
SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS
BUSINESS OF THE MONTH:
1.1 M/Herrera and Council presented a City Tile to Garo Kupelian,
Manager of CVS Pharmacy #9667, 300 S. Diamond Bar Blvd. as
Business of the Month for May 2010.
MAY 18, 2010 PAGE 2 CITY COUNCIL
2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None
Offered.
3. PUBLIC COMMENTS:
Sally Seashore, Diamond Bar Library, spoke about the Summer Reading
Program announcing several events scheduled during the summer.
Marina RL, representing AYSO announced that the Youth 10 boys will
participate in the AYSO American Youth Soccer Organization National
Games in Palm Beach, FI. She also announced that several fundraisers
are under way to help support their attendance at the event and that
anyone wishing to donate may call her at 562-254-5555.
John Martin, 1249 S. Diamond Bar Blvd., spoke regarding Site "D" and
asked that since this project affects the City as a whole, that all residents
be notified of the project and not just those required by law.
David Busse, 21455 Ambushers, spoke in opposition to Site "D".
4. RESPONSE TO PUBLIC COMMENTS: None offered.
5. SCHEDULE OF FUTURE EVENTS:
5.1 Planning Commission Meeting — May 25, 2010 — 7:00 p.m.,
AQMD/Government Center Auditorium, 21865 Copley Dr.
5.2 Parks and Recreation Commission Meeting — May 27, 2010 — 7:00
p.m., AQMD/Government Center Hearing Board Room, 21865
Copley Dr.
5.3 Memorial Day — May 31, 2010 — City Hall closed in observance of
Memorial Day — City offices reopen Tuesday, June 1, 2010 at 7:30
a.m.
5.4 City Council Meeting — June 1, 2010 — 6:30 p.m.,
AQMD/Government Center Auditorium, 21865 Copley Dr.
5.5 Second Neighborhood Meeting at Silver Tip Park — June 12, 2010 —
10:00 a.m., 900 Longview Dr. (at Summitridge Dr.).
6. CONSENT CALENDAR: MPT/Tye, C/Tanaka 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
MAY 18, 2010 PAGE 3 CITY COUNCIL
6.1 APPROVED CITY COUNCIL MINUTES
6.1.1 Study Session of May 4, 2010 —As submitted.
6.1.2 Regular Meeting of May 4, 2010 —As submitted.
6.2 RECEIVED AND FILED PLANNING COMMISSION MINUTES —
Regular Meeting of April 27, 2010.
6.3 RATIFIED CHECK REGISTER — Dated April 29, 2010 through May
13, 2010 totaling $685,579.26.
6.4 SECOND READING OF ORDINANCE NO. 03 (2010): AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
DIAMOND BAR AMENDING THE ZONING REGULATIONS
GOVERNING GROUP HOMES AND ADOPTING PROVISIONS
FOR REASONABLE ACCOMMODATION.
6.5 APPROVED CONTRACT AMENDMENT NO. 5 WITH ADVANTEC
CONSULTING ENGINEERS FOR THE ONGOING CITYWIDE
TRAFFIC SIGNAL TIMING PROGRAM IN THE AMOUNT OF
$26,000 FOR A TOTAL AUTHORIZATION AMOUNT OF $26,000.
6.6 APPROPRIATED $65,000 FROM THE TRAFFIC IMPROVEMENT
FUND AND APPROVED CONTRACT AMENDMENT WITH FEHR
& PEERS IN THE AMOUNT OF $65,000 FOR PROFESSIONAL
SERVICES RELATED TO THE STATE ROUTE 57/60 FREEWAY
CONGESTION RELIEF STRATEGY.
6.7 APPROVED AMENDMENT NO. 10 WITH EXCEL LANDSCAPE
FOR LANDSCAPE MAINTENANCE SERVICES AT LIGHTING
AND LANDSCAPE MAINTENANCE DISTRICT NOS 38, 39 AND
41 FOR FY 2010/11 IN THE AMOUNT OF $329,675; PLUS A
CONTINGENCY AMOUNT OF $43,000 FOR AS -NEEDED WORK,
FOR A TOTAL AUTHORIZATION OF $372,675, SUBJECT TO
ADOPTION OF THE FY 2010/11 BUDGET.
6.8 APPROVED FY 2010/11 CITY COUNCIL GOALS AND
OBJECTIVES.
6.9 APPROVED ADJOURNING THE JUNE 1, 2010 CITY COUNCIL
MEETING TO JUNE 15, 2010.
6.10 ADOPTED RESOLUTION NO. 2010-13: AMENDING
RESOLUTION 2009-37 ESTABLISHING SALARY GRADES AND
FRINGE BENEFITS FOR ALL CLASSES OF EMPLOYMENT
EFFECTIVE JULY 1, 2010 (Total corrected amount $153,161)
MAY 18, 2010 PAGE 4 CITY COUNCIL
6.11 APPROVED CONTRACT WITH THE COMDYN GROUP, INC.
FOR AS -NEEDED INFORMATION TECHNOLOGY SERVICES IN
AN AMOUNT NOT -TO -EXCEED $32,500 FOR FY 2010/11.
6.12 ACCEPTED WORK PERFORMED BY SOUTHERN CALIFORNIA
CONTRACTORS FOR CONSTRUCTION OF SYCAMORE
CANYON PARK ADA RETROFIT OF THE RESTROOM/OFFICE
BUILDING; DIRECTED THE CITY CLERK TO FILE THE NOTICE
OF COMPLETION AND RELEASE THE RETENTION THIRTY-
FIVE DAYS AFTER THE RECORDATION DATE.
6.13 (a) ADOPTED RESOLUTION NO. 2010-14: DECLARING THE
CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS
FOR LANDSCAPE DISTRICT NO. 38 AND DIRECTED THE CITY
CLERK TO ADVERTISE THE PUBLIC HEARING TO BE SET FOR
THE JUNE 15, 2010 REGULAR MEETING.
(b) ADOPTED RESOLUTION NO. 2010-15: DECLARING THE
CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS
FOR LANDSCAPE DISTRICT NO. 39 AND DIRECTED THE CITY
CLERK TO ADVERTISE THE PUBLIC HEARING TO BE SET FOR
THE JUNE 15, 2010 REGULAR MEETING.
(c) ADOPTED RESOLUTION NO. 2010-16: DECLARING THE
CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENTS
FOR LANDSCAPE DISTRICT NO. 41 AND DIRECTED THE CITY
CLERK TO ADVERTISE THE PUBLIC HEARING TO BE SET FOR
THE JUNE 15, 2010 REGULAR MEETING.
7. PUBLIC HEARINGS: None
8. COUNCIL CONSIDERATION:
8.1 ADOPT RESOLUTION NO. 2010-17: APPROVING AND
ADOPTING A BUDGET FOR THE FISCAL YEAR COMENCING
JULY 1, 2010 AND ENDING JUNE 30, 2011 INCLUDING
MAINTENANCE AND OPERATIONS, SPECIAL FUNDS AND
CAPITAL IMPROVEMENTS; AND APPROPRIATING FUNDS FOR
ACCOUNTS, DEPARTMENTS, DIVISIONS, OBJECTS AND
PURPOSES THEREIN SET FORTH.
CM/DeStefano stated that the this year's draft budget has a
General Fund estimate of resources for next year at $31,077,230
with appropriations of $30,824,350. The presumption is that at the
end of the budget year will result in an increase of approximately _
$253,000 to the General Fund Reserve. This year contains the
anomaly of the purchase of the building across the street, as
MAY 18, 2010 PAGE 5 CITY COUNCIL
previously agreed to by the City Council, as a new city hall as well
as efforts to gain access for the library to develop a facility twice
what is now available. The budget includes the use of General
Fund Reserves in the amount of $12,427,964 which includes $9.9
million for the building purchase and the $2.1 million estimated to
relocate City Hall. Once approved, and at the conclusion of the
2010/11 budget year, staff anticipates General Fund Reserves
ending at $17,706,843. The budget also includes the use of
Special Funds as well as, the Capital improvement Program
estimated to cost $4,486,989. Review of this year's budget began
on May 4 and at that meeting staff and the City Council discussed
General Funds and the various components of resources that were
needed within each of the City's operating departments as well as,
the use of those resources to continue programs and services
provided by the City. During tonight's Study Session there was
detailed discussion pertaining to the General Fund, Special Funds
and the Capital Improvement Program. The General Fund
resources are comprised of a variety of sources. Reducing the
estimated resources of $31,077,230 by the building cost of $12
million is about $1 million less than the 2008/09 budget year levels,
which is a direct result of the current economic recession.
Property taxes for 2010/11 are estimated at $3,840,000 which is
slightly higher than the current budget year. Staff believes that
some reassessments will continue and that number will remain flat
or drop during the next couple of years until real estate values
begin to trend upward and reassessments take place so that the
numbers again begin to increase. In a general category of "Other
Taxes and Fees" that includes sales taxes, hotel transient
occupancy taxes, franchise taxes and others is about $5,222,000.
Staff tends to estimate these resources very conservatively. This
year D.B. is likely to see a slight decrease in sales tax; however,
there are signs that consumer purchasing is on the increase. Staff
anticipates that State Subvention revenues will remain even with
the current fiscal year at about $4,610,000, the majority of which is
in vehicle license fees coming from the State of California. Another
highlighted area is the City's investment earnings. As everyone
knows, investment earnings have dropped significantly for
individuals as well as, the City's investments that are made with the
public's dollars and as a result, staff expects that the investment
earnings will remain static with the current fiscal year at about
$300,000. The City Hall building purchase price is $9.9 million.
Staff is finalizing the purchase agreement and expects that escrow
will not close until sometime in August. Therefore, the purchase
and all relocation costs amounting to about $2.1 million has been
included in the 2010/11 budget. The City Hall purchase will initially
be made through the use of cash reserves. However, the City
Council adopted a resolution that provided an 18 -month window
MAY 18, 2010 PAGE 6 CITY COUNCIL
after the close of escrow to consider whether to maintain the cash
purchase or to augment that purchase with some sort of financing.
If escrow closes in August/September as projected, the Council will
have until January 2012 to conclude the financing decision. Staff is
developing a Request for Proposal from architectural firms to assist
the City in the development of City Hall and to assist the County
Library with development of a new library on the ground floor of the
building. An extensive amount of work will be done in the next year
including the approval of an extension for the lease with AQMD for
the current facilities. Staff has negotiated a lease extension on a
month to month basis at a favorable rate and has negotiated at a
staff to staff level the use of the AQMD auditorium once City Hall
moves across the street which is expected to take place August or
September 2011.
CM/DeStefano further reported that staff utilized General Fund
reserves for economic development activities. Within the current
budget year $300,000 of unused money was set aside. In the
proposed budget year the amount set aside is $112,500. The
Lighting and Landscape Assessment Districts have their own
funding sources; however, General Fund reserves are used to
supplement those district costs with about $72,000 being used in
the upcoming budget year. This is an area that has a Council
subcommittee looking at very carefully. As the cost to maintain
these districts continue to increase the revenues for those districts
have remained static for 20 years. There has been no CPI or other
adjustments and none proposed for next year so it means that the
City's General Fund continues to have to support these
assessment districts.
Capital Improvement Projects have historically been augmented in
their resource needs by the use of reserves. There are a variety of
funds used for physical improvements made in the community's
buildings, parks and roads. This year $215,000 is proposed to be
taken from General Fund Reserves to help support the $4.4 million
set aside. Within the Capital Improvement Budget for 2010/11
projects include slurry seals and overlays, traffic signal
improvements, curb ramp installation improvements, drainage
improvements, an additional leg of the Sycamore Canyon Park trail,
Washington Street (Presidents) Park construction, American's with
Disabilities Act (ADA) retrofit of Stardust, Silvertip and Longview
Mini Parks and design of a future improvement within Sycamore
Canyon Creek. The law enforcement budget for 2010/11 is
$5,549,800, an increase of slightly less than 2% over the current
budget year with no decreases in any service levels and no
changes in the number of deputies, vehicles and programs.
MAY 18, 2010 PAGE 7 CITY COUNCIL
Staff anticipates an increase of about $125,000 in Liability and
Workers' Compensation insurance premiums for 2010/11.
Generally speaking, the appropriation levels for the next fiscal year
are consistent or slightly lower than what the City Council approved
in the FY 2009/10 mid -year revision in February 2010. The City
obtains resources as a result of voter Initiatives passed county -wide
such as Measure R for which the City receives a small portion of
$500,000 for street improvements. There are gasoline taxes
imposed by the State for which the City receives a portion that will
continue to be used for improvements to the City's roadways. The
City receives transit funds, a voter approved sales tax
augmentation within LA County that are used for various transit
programs. Proposition C is being used for additional transit
programming resources and can also be used for Capital
Improvements within the community along its roadways. There are
resources that come from the Integrated Waste Management Fund,
a direct result of waste hauler franchise agreements with Valley
Vista and Waste Management and those dollars pay for street
sweeping, storm drain maintenance, composting programs,
literature, etc. Air Quality Improvement Funds are used to assist in
the transportation management system, signalization, fluid leakage,
and previously were used to purchase Hybrid vehicles. Lighting
and Landscape Assessment District funds come from residences
that directly benefit from and are within those districts and are
augmented by General Fund dollars.
CM/DeStefano stated that this year's budget is comprised of
significant resources with expenditures and appropriations that
have been laid out in detail. The City Council has had the
opportunity to review the proposed budget in two Study Sessions
and has asked staff a lot of questions during the process. This is
the toughest budget that he has had to put together since becoming
the City's Manager and it came with a lot of help from his staff.
Staff believes the tide will turn and resources will begin to increase
through various opportunities. The City is in very good financial
shape unlike many other cities, a testament to the frugality of the
Council and 14 other Council Members who preceded the current
Council. CM/DeStefano recommended that the City Council adopt
the Fiscal Year 2010/11 Budget to take effect July 1, 2010 by
Resolution.
M/Herrera thanked staff members for putting together such a
thoughtful budget and advised residents that while the City has
constrained a lot of the administration within City Hall, the programs
and services that the community has come to know and love have
not been cut or reduced. D.B. continues to take care of its streets
and landscaped areas. She thanked staff for their hard work and
MAY 18, 2010 PAGE 8 CITY COUNCIL
diligence in continuing to run the City on a very tight budget.
C/Tanaka thanked staff and in particular the Department Heads for
the budget that has been presented to the City Council and to
CM/DeStefano for presenting a very easy to read and
understandable report.
MPT/Tye echoed his colleague's sentiments thanking the
Department Heads for their hard work. He stated he would trust
them with his wallet and credit cards and appreciates all of staff's
efforts and for a job well done.
C/Everett thanked staff and the City's contractors including the
Sheriffs Department in helping to maintain the public safety and
service levels. He was also delighted that Council supported a
2.4% COL adjustment for staff. He acknowledged the very
aggressive and creative use of State and Federal funding possible
to keep the roads and services at their highest levels.
C/Chang echoed her colleague's comments. After reviewing
previous Water Department budgets and this year's City's budget
she was very impressed with CM/DeStefano and his staff for
coming up with a creative use of this year's limited budget. She
thanked department heads for running a tight ship and helping the
Council run a tight ship.
There was no one present who wished to speak on this item.
C/Everett moved, C/Chang seconded, to Adopt Resolution 2010-17
Approving and Adopting a Budget for the Fiscal Year Commencing
July 1, 2010 and Ending June 30, 2011 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, Everett, Tanaka,
MPT/Tye, M/Herrera
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
9. COUNCIL SUBCOMMITTEE - REPORTS/COUNCIL MEMBER
COMMENTS:
C/Everett spoke about his attendance at the SCAG Conference and
Annual Assembly on May 5, 6 and 7 and SCAG's role in the Southern
California Region. Friday, May 14 he attended "Music from the Silver
MAY 18, 2010 PAGE 9 CITY COUNCIL
Screen" performed by the Chaparral String Orchestra. Last Friday it was
announced that D.B.H.S. Principal Dennis Paul will retire on June 17 after
38 years serving as an educator. C/Everett stated that this past Sunday
he encountered a rattlesnake on his driveway and that The Inland Valley
Humane Society responded to his call and educated him about the
importance of these creatures in the cycle of life. He thanked Inland
Valley Humane Society for their professionalism. He again thanked staff
for the budget.
C/Tanaka celebrated Cinco de Mayo with the Seniors monthly dinner
dance on May 5. On May 7 he attended the 5t" Annual Asian -American
Pacific Islander Heritage Month celebration with C/Chang at the Southern
California Edison Customer Technology and Application Center in
Irwindale. On Monday, May 10 the Diamond Bar Day at the LA County
Fair committee met with the LA County Fair staff and that C/Everett had
joined the committee. Diamond Bar Day at the Fair will be held on
Thursday, September 16. On May 11 he and C/Everett attended a
Neighborhood Watch meeting at the Knoll Court area. Last Thursday he
participated in Career Day at Diamond Ranch High School. He thanked
his wife Wanda and C/Everett and his wife Kay for their help in
- chaperoning at the DB4-Youth in Action Middle School Dance at the
Diamond Bar Center.
C/Chang attended the Southern California Edison Asian -American
Heritage Month celebration with C/Tanaka. On May 13-15, she,
CM/DeStefano, ACM/Doyle and Captain Halm attended the Contract
Cities Conference. She encouraged residents to help in raising funds for
the AYSO team for their trip to Florida.
MPT/Tye said it was a privilege to be elected as the City's representative
to California Contract Cities Association. As a contract city D.B. benefits
from their vigilance on different issues and he looks forward to serving as
a delegate -at -large and representing D.B. in a leadership role with that
organization. Before the Council meets again graduations will be
underway and he congratulated Nathan Lyon Smith on receiving his MBA
from Claremont Graduate School and his sister Alex who received her
degree from Duke in Raleigh, North Carolina. Congratulations to all
graduates.
M/Herrera updated residents as the City's representative on the Foothill
Transit Board on her previous report of a budget deficit of $12.5 million
and impending budget cuts for services and administration. The State has
subsequently funded one of the categories in the amount of $3.7 million
and on tomorrow's Board meeting agenda there is an item to have a 25
cent fare increase which will generate another $1.1 million. The
expenditures for the current year budget are less than anticipated which
will result in additional savings. What this means is that instead of having
MAY 18, 2010 PAGE 10 CITY COUNCIL
to make $10 million of cuts in services Foothill Transit will now have to
make only $3.2 million in cuts in the lower ridership service lines. The end
result for D.B. is that Line #286 which runs down Diamond Bar Blvd. will
not suffer in service cuts. She thanked everyone who showed up at the
hearing to testify about how potential service cuts for Line #286 would hurt
especially those individuals living in D.B. who's only means of getting to
their jobs is the bus line. She was very pleased that the Council adopted
the 2010/11 budget.
ADJOURNMENT: With no further business to conduct, M1Herrera
adjourned the Regular City Council meeting at 7:50 p,m. to June 15, 2010 at 7:50
p.m.
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TOM YE CRIBBINS, CITY CLERK
The foregoing minutes are hereby approved this 15th day of ,-rune
2010.
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CAROL HERRERA, MAYOR