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HomeMy WebLinkAbout10/18/2011 Minutes - Regular MeetingCITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION OCTOBER 18,2011 STUDY SESSION: M[Tye called the Study Session to order at 5:45 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 Ron Everett, Carol Herrera, Jack Tanaka, Mayor Pro Tern Ling -Ling Chang and Mayor Tye. Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; Glenn Steinbrink, Interim Finance Director; David Liu, Public Works Director; Greg Gubman, Community Development Director; Ryan McLean, Assistant to the City Manager; Rick Yee, Senior Civil Engineer; Kimberly Young, Associate Engineer-, Ken Desforges, IS Director; Anthony Santos, Senior Management Analyst; Marsha Roa, Public Information Manager, and Marcy Hilario, Administrative Assistant. No. PRESENTATION OF DOCUMENTS RELATED TO CONVERSION OF THE CITY OF DIAMOND BAR PUBLIC FINANCING AUTHORITY VARIABLE RATE LEASE REVENUE BONDS, SERIES 2002A TO A FIXED RATE: CM/DeStefano introduced Jim Fabian, Fieldman, Rolapp & Associates, Brian Forbath, Stradling Yocca Carlson & Rauth and John Tim, E.J. De La Rosa & Co., Inc. IFD/Steinbrink stated that nearly two weeks ago Standard & Poor's visited D.B. to receive a presentation from staff regarding the City's finances and the City's future plans including additional financial information. From that presentation, the City received the highest possible rating for obtaining a fixed rate bond issue, one step from a Triple A rating which under the circumstances provides the City with an implied Triple A rating for issuance. Jim Fabian with Fieldman Rolapp stated that other positive influences in Standard & Poor's rating was great management, strong Counsel - management relations, very strong General Fund reserves, very low outstanding overall City debt, the strong "wow -factor" of the community and the overall way in which the City is managed through the use of subcontractors and the limited number of full-time employees which provides flexibility to deal with changing economic conditions with regards to staffing issues, and very good management policies and practices. Kudos to Council and Staff for the- AA+ rating for which the City should be very proud. D.B. joins other cities in the AA+ rating category including Santa Monica, Beverly Hills, and Newport Beach. OCTOBER 18,2011 PAGE 2 CC STUDY SESSION Mr. Fabian discussed each of the documents before the Council and Public Financing Authority tonight for approval including two resolutions, a Remarketing Agreement, Preliminary Reoffering Memorandum, Amendment No. 1 to Lease Agreement, Continuing Disclosure Certificate, and Financial Advisor Contract and Bond Counsel Agreement. John Tim said he believed it was an opportune time to be in the marketplace because from an investor's standpoint, large mutual funds, and insurance companies which are very particular about the types of borrowers from whom they are willing to buy bonds serves the City well with its AA+ rating. M[Tye asked whether it would present a problem if this or a future Council decided to pay off the bonds. Mr. Fabian explained that there are redemption features in the documents from the previous issuance. Mr. Tim stated that the bonds have a call protection for a certain period of time from the fixed-rate conversion date which he believed was 10 years. After that time, the City could pay off the bond at any time. C/Herrera asked if CM/DeStefano, ACM/Doyle and CA/Jenkins had studied these documents and found them to be in order to which each responded positively. CA/Jenkins explained that Mr. Forbath is the lawyer for this transaction because the documents are very specialized and involve an area in which he does not practice. Therefore, he defers to Mr. Forbath. Mr. Forbath said his firm drafted all of the documents as the City's representative for this and previous transactions. Mr. Forbath further stated that the City of D.B. is his client and he honors that attorney/client relationship. CM/DeStefano stated that IFD/Steinbrink has been an outstanding resource for the City with all of his years of experience and a variety of issues that he has been managing for the City of Fullerton during a long career. He has been able to provide D.B. with a lot of insight about what the City was getting into because several D.B. staff members did not have the depth of experience that he brings to the table. IFD/Steinbrink was able to translate what the documents mean to the City going forward. Public Comments: None Offered. OCTOBER 18,2011 PAGE 3 CC STUDY SESSION ADJOURNMENT: With no further business to discuss, M/Tye adjourned the Study Session at 6:00 p.m. to the Regular City Council Meeting. TOMMYE CRIBBiNS, C.ty Clerk The foregoing minutes are hereby approved this 1st day0f November 2011. Steve`-ry&,-M- ayor MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR OCTOBER 18, 2011 STUDY SESSION: 5:45 p.m., Room CC -8 110 Presentation of Documents related to Conversion of the Bar Public Financing Authority Variable Rate Lease Series 2002A to a Fixed Rate. City of Diamond Revenue Bonds, CM/DeStefano stated that during tonight's study session, staff and consultants provided the City Council with information and documents that upon approval, will assist in moving the City from a variable rate lease revenue bond to a fixed rate bond. No action was taken during the Study Session. CALL TO ORDER: Mayor Steve Tye 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. PLEDGE OF ALLEGIANCE: Lieutenant Kimberly Whitlow led the Pledge of Allegiance. INVOCATION: Associate Pastor Alex Barrett, Church of the Valley, gave the invocation. ROLL CALL: Council Members Ron Everett, Carol Herrera, Jack Tanaka, Mayor Pro Tem Ling -Ling Chang and Mayor Steve Tye. Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; Ken Desforges, IS Director; David Liu, Public Works Director; Greg Gubman, Community Development Director; Ryan McLean, Assistant to the City Manager; Rick Yee, Senior Civil Engineer; Kimberly Young, Associate Engineer, Anthony Santos, Senior Management Analyst; Cecilia Arellano Public Information Coordinator; and, Marcy Hidalgo, Administrative Assistant. APPROVAL OF AGENDA: As submitted. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Mayor Tye proclaimed the month of November 2011 as Pulmonary Hypertension Awareness Month and presented the proclamation to Victor Chen, M.D., Kaiser-Permanente Medical Offices, Diamond Bar. NEW BUSINESS OF THE MONTH: 1.2 Mayor Tye and Council Members presented a Certificate Plaque to Raul Cerda, Manager, See's Candies, 1117 S. Grand Avenue, as Business of the Month for October 2011. OCTOBER 18, 2011 PAGE 2 61 3. 4. 5 1.1 CITY COUNCIL CITY MANAGER REPORTS AND RECOMMENDATIONS: 2.1 Sergeant Mark Saunders introduced Lieutenant Kimberly Unland who introduced Deputy Kimberly Whitlow, new STAR Deputy for Diamond Bar. PUBLIC COMMENTS: Steven Ly, Executive Director of the Regional Chamber of Commerce, said he looked forward to assisting D.B. and the region with economic development. C/Herrera welcomed Mr. Ly to the community. RESPONSE TO PUBLIC COMMENTS: None Offered SCHEDULE OF FUTURE EVENTS: 5.1 Washington Park Groundbreaking Ceremony — Saturday, October 22, 2011 — 9:00 a.m., 21208 Washington Street. 5.2 Planning Commission Meeting — October 25, 2011 — 7:00 p.m., SCAQMD/Government Center Auditorium, 21865 Copley Drive. 5.3 Parks and Recreation Commission Meeting — October 27, 2011 — 7:00 p.m., SCAQMD/Government Center Hearing Board Room, 21865 Copley Drive. 5.4 Hall of Horrors and Haunted House — October 30-31, 2011 — 6:00 p.m. to 9:00 p.m., Heritage Park, 2900 S. Brea Canyon Road. 5.5 Fall Fun Festival — October 31, 2011 — 4:30 to 8:30 p.m., Heritage Park, 2900 S. Brea Canyon Road. 5.6 City Council Meeting — November 1, 2011 — 6:30 p.m., SCAQMD/Government Center Auditorium, 21865 Copley Drive. 5.7 Election Day — November 8, 2011 — Polls open from 7:00 a.m, to 8:00 P.M. 6. CONSENT CALENDAR: C/Everett requested that Item 6.13 be pulled for further discussion. C/Herrera moved, C/Everett seconded, to approve the remainder of the Consent Calendar as presented. Motion carried by the following Roll Call: OCTOBER 18, 2011 PAGE 3 CITY COUNCIL AYES: COUNCIL MEMBERS: Everett, Herrera, Tanaka, MPT/Chang, MI -Fye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 6.1. CITY COUNCIL MINUTES —Regular Meeting of October 4, 2011 — Approved as corrected. 6.2 PLANNING COMMISSION MINUTES — Regular Meeting of August 23, 2011 — Received and Filed. 6.3 RATIFIED CHECK REGISTER — Dated September 29, 2011 through October 12, 2011 totaling $1,558,159.17. 6.4 AWARDED DESIGN AND CONSTRUCTION ADMINISTRATION SERVICES CONTRACT FOR THE 2011-2012 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CURB RAMP INSTALLATION PROJECT TO INFRASTRUCTURE ENGINEERS IN THE AMOUNT OF $30,830 AND AUTHORIZED A CONTINENCY AMOUNT OF $3,000 FOR CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $33,830. 6.5 ADOPTED RESOLUTION NO. 2011-41: APPROVING THE APPLICATION FOR $89,608 OF LAND AND WATER CONSERVATION GRANT FUND, WHICH IF AWARDED, REQUIRES AN $89,670 MATCH FROM THE CITY, FOR THE GRAND VIEW TRAIL LINK IN THE SUMMITRIDGE PARK TRAIL SYSTEM. 6.6 APPROVED PLANS AND SPECIFICATIONS AND AWARDED CONSTRUCTION CONTRACT FOR THE 21810 EAST COPLEY DRIVE INTERCONNECT PROJECT TO PROTECH ENGINEERING CORP. IN THE AMOUNT OF $35,350 AND AUTHORIZED A CONTINGENCY AMOUNT OF $4,500 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $39,850. 6.7 AWARDED PROFESSIONAL ENGINEERING SERVICES CONTRACT FOR ON-CALL TRAFFIC ENGINEERING WITH (a) ADVANTEC CONSULTING ENGINEERS; (b) ITERIS; (c) SASAKI TRANSPORTATION SERVICES; (d) WARREN SIECKE; (e) FEHR & PEERS; AND (f) KOA CORPORATION, FOR A PERIOD OF THREE (3) YEARS. OCTOBER 18, 2011 PAGE 4 CITY COUNCIL 6.8 AWARDED PROFESSIONAL ENGINEERING SERVICES CONTRACT FOR ON-CALL CIVIL ENGINEERING WITH (a) HALL AND FOREMAN, INC.; (b) ONWARD ENGINEERING; (c) HARRIS AND ASSOCIATES; and (d) DMS CONSULTANTS, FOR A PERIOD OF THREE (3) years. 6.9 AWARDED PROFESSIONAL ENGINEERING SERVICES CONTRACT FOR ON-CALL SOILS AND GEOTECHNICAL ENGINEERING SERVICES WITH (a) LEIGHTON AND ASSOCIATES, INC.; (b) WILDAN GEOTECHNICAL; and (c) NINYO AND MOORE, FOR A PERIOD OF THREE (3) YEARS. 6.10 APPROVED CONTRACT INCREASE WITH FREEWAY ELECTRIC FOR THE TRAFFIC SIGNAL INSTALLATION AT BREA CANYON CUTOFF ROAD AND THE SOUTHBOUND STATE ROUTE 57 FREEWAY RAMP IN THE AMOUNT OF $6,000 FOR A TOTAL AUTHORIZATION AMOUNT OF $176,515. 6.11 ADOPTED RESOLUTION NO. 2011-42: RATIFYING AND RECONFIRMING THE DESIGN GUIDELINES APPLICABLE TO THE GATEWAY CORPORATE CENTER AND AMENDING A PORTION OF RESOLUTION NO. 89-104 TO ALLOW ON STREET PARKING OF VEHICLES ALONG PORTIONS OF BRIDGE GATE DRIVE AND VALLEY VISTA DRIVE. 6.12 AUTHORIZED THE CITY MANAGER TO CONTINUE FINANCE DEPARTMENT CONSULTING SERVICES WITH GLENN STEINBRINK FOR A TOTAL COST NOT -TO -EXCEED $75,000. 6.14 APPROVED A CONTRACT WITH TIME WARNER CABLE TO RELOCATE EXISTING FIBER AND COAX CABLING FROM 21825 COPLEY DRIVE TO 21810 COPLEY DRIVE IN THE AMOUNT OF $27,247 AND AUTHORIZED CHANGE ORDERS, AS REQUIRED, UP TO $5,000 FOR A TOTAL AUTHORIZATION OF $32,247. MATTERS WITHDRAWN FROM CONSENT CALENDAR: 6.13 AUTHORIZE THE CITY MANAGER TO PURCHASE VARIOUS TELECOMMUNICATIONS AND SECURITY EQUIPMENT FROM CDWG IN AN AMOUNT NOT -TO -EXCEED $290,000 WHICH INCLUDES ALL REQUIRED TRAINING AND PROFESSIONAL DESIGN SERVICES FOR INSTALLATION; AND, APPROPRIATE $90,000 FROM COPS FUND. C/Everett stated that he has the utmost confidence in the City's IS support team and is convinced that this is the right OCTOBER 18, 2011 PAGE 5 CITY COUNCIL recommendation. For him, what is missing is the normal bidding process. These are all RFP's and believed there were six bidders and asked for staffs report to help him see what the Council normally sees in the bid environment and to find out why the City picked CDWG. IS/Desforges stated that as the Council is aware the City is currently purchasing and remodeling a new City Hall building across the street which will require additional new phones, local area networks (LAN) digital media and security cameras. Staff has determined that Cisco is the best manufacturer of the phone system based on a Cisco UC6000 LAN including a central core switch, digital media signage for the front entrance on the first and second floor lobbies as well as additional security cameras for both the exterior and public spaces of the new City Hall. These items have a retail price of $408,032. With professional services and tax the total cost is $518,734.80. IS/Desforges stated that the City has the option to use State negotiated contracts; however, in this case, the State negotiated contract would result in a cost of $364,270.66. The City solicited proposals from five vendors including CDWG, PC Mall Gov, Nexus, Resilient Communications, and USGS. Two of the vendors were non-responsive which left three bids remaining. The three remaining bids ranged from $305,943.40 down to the low bid of $278,742.15 which was CDWG. CDWG has served as a professional vendor for the City in the past and is able to provide both the services and the product, and was considered the lowest responsible bidder for the City. Therefore, staff recommended CDWG in an amount not -to -exceed $290,000 to include the contingency funds necessary for the $278,742.15 low bid. C/Herrera thanked IS/Desforges for the very detailed explanation and stated that she is confident that staff has selected the best company to conduct business with on behalf of the City. C/Herrera moved, MPT/Chang seconded, to approve Consent Calendar Item 6.13 as proposed by staff. Motion carried by the following Roll Call vote: AYES NOES: ABSENT COUNCIL MEMBERS COUNCIL MEMBERS COUNCIL MEMBERS 7. PUBLIC HEARING: None Everett, Herrera, Tanaka, MPT/Chang, M/Tye None None OCTOBER 18, 2011 PAGE 6 CITY COUNCIL 8. COUNCIL CONSIDERATION: 8.1 ADOPT RESOLUTION NO. 2011-43: APPROVING DOCUMENTS RELATED TO THE CONVERSION OF THE CITY OF DIAMOND BAR PUBLIC FINANCING AUTHORITY VARIABLE RATE LEASE REVENUE BONDS, SERIES 2002A FROM A VARIABLE INTEREST RATE TO A FIXED INTEREST RATE AND AUTHORIZING AND DIRECTING CERTAIN ACTION IN CONNECTION THEREWITH: APPROVAL OF REMARKETING AGREEMENT; PRELIMINARY REOFFERING MEMORANDUM; AMENDMENT NO. 1 TO LEASE AGREEMENT; CONTINUING DISCLOSURE CERTIFICATE; FINANCIAL ADVISOR CONTRACT AND BOND COUNSEL AGREEMENT. CM/DeStefano explained that this item comes to the City Council as a result of discussions held earlier this year on August 16 to consider the refinancing of the Diamond Bar Center from its variable rate structure to a fixed rate structure by taking advantage of attractive rates in the Market -place. Thus, the City Council directed staff to commence the process to proceed with this change. As part of this process City staff, consultants and IFD/Steinbrink met with Standard & Poor's almost two weeks ago and ultimately received the highest possible rating of AA+. Jim Fabian, Fieldman, Rolapp & Associates, stated that Standard & Poor's visited D.B. and received a 90 minute presentation about D.B.'s history, current financial situation and budget as well as, an overview of the refinancing of the variable rate to a fixed rate loan. He commended staff for putting together an excellent, thorough and comprehensive overview of the financial health of the City. As a result of that meeting, Standard and Poor's released a AA+ rating which is the highest possible rating for a lease revenue bond transaction and a rating enjoyed by other cities such as Santa Monica, Beverly Hills, Malibu and Newport Beach. He believed the AA+ rating was a reflection upon the community as a whole, the tremendous wealth factors that the community enjoys, its stable management, the great relationship between the City Manager and City Council; as well as the great framework of financial policies and management practices that have been implemented since incorporation. It is a real testament to the stewardship the City Councils have shown over the years in governing the City. Tonight before the Council are two items, one as the City Council and one as the Financing Authority. There are several documents for approval tonight. As part of the process of the fixed rate conversion, an RFP was conducted for underwriting services and the firm of E.J. De La Rosa & Co., Inc. was selected as the City's underwriter. John Kim of E.J. De La Rosa & Co., Inc. is in the OCTOBER 18, 2011 PAGE 7 CITY COUNCIL audience this evening to respond to questions related to marketing of the bonds. Brian Forbath, Stradling Yocca Carlson & Rauth, explained that the action before the Council this evening is adoption of a Resolution approving a variety of documents necessary to convert the City's existing variable rate transaction into a fixed rate transaction. The fixed-rate conversion will be through the maturity or life of the bond and cannot be converted once the rate is fixed for the life of the bond. He explained each of the following documents pursuant to this action which includes 1) A Reoffering Memorandum; 2) Remarketing Agreement; 3) Amendment to the Lease Agreement; and, 4) Amendment to the Indenture. The sale of the bonds is scheduled in the next week to two weeks for a closing on December 1, the expiration of the existing Letter of Credit. CM/DeStefano stated that this process is for a principal bond amount of $11,858,000 for a twenty-two year period. Staff recommends that the City Council take action to approve the package. Following Council's action the Public Financing Authority will take action later this evening. C/Herrera thanked staff for its guidance to Council over a period of several meetings and study sessions to make certain that Council Members thoroughly understand this transaction and reinforce the ultimate outcome, to save the City money. M/Tye asked for any public comments on this item; however no one came forward to speak. C/Herrera moved, C/Everett seconded to Adopt Resolution No. 2011-43: Approving Documents Related to the Conversion of the City of Diamond Bar Public Financing Authority Variable Rate Lease Revenue Bonds, Series 2002A from a Variable Interest Rate to a Fixed Interest Rate and Authorizing and Directing Certain Action in Connection therewith: Approval of Remarketing Agreement; Preliminary Reoffering Memorandum; Amendment No. 1 to Lease Agreement; Continuing Disclosure Certificate; Financial Advisor Contract and Bond Counsel Agreement. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Everett, Herrera, Tanaka, MPT/Chang, M/Tye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None OCTOBER 18, 2011 PAGE 8 CITY COUNCIL RECESS: M/Tye recessed the Regular City Council Meeting to the Public Financing Authority at 7:20 p.m. -- RECONVENE: M/Tye reconvened the Regular City Council Meeting from the Public Financing Authority Meeting at 7:21 p.m. 9. COUNCIL SUBCOMMITTEE REPORTS/COUNCIL MEMBER COMMENTS: C/Tanaka reported that he attended the Three Valleys Municipal Water District's Quarterly Leadership Breakfast with guest speaker, the Honorable Robert M. Hertzberg; football game between DBHS vs. DRHS with the Mayor's Cup presented to DRHS and thanked IFD/Steinbeck for his help with the Public Finance Authority this evening. C/Everett stated that it had been his privilege to attend his second annual California Citizens Against Lawsuit Abuse during which State Senator Bob Huff, State Senator Bob Dutton and business man and radio host Jack Chou spoke. Saturday, October 8 Assemblyman Curt Hagman held a Town Hall meeting at the AQMD in D.B. C/Everett reminded everyone about the groundbreaking for Washington Park, and the Hall of Horrors and the Fall Fun Festival at Heritage Park. He also reminded everyone about the annual "Shakeout" scheduled for 10:20 a.m. on October 20 during which millions of Californians will trop, Cover and Hold for the largest earthquake drill. C/Herrera said it was nice to have See's Candies Management present to receive the New Business of the Month award. See's has sugar -free candy and there are several individuals throughout D.B. who need to restrict or avoid sugar intake. She welcomed STAR Deputy Kimberly Whitlow who will certainly do a fabulous job for the school kids. She congratulated D.B. for achieving a AA+ rating from Standard and Poor's and stated that she is particularly proud of the reasons the City received this award, especially due to great management, strong reserves, strong City Council -City Manager relationship and great stewardship over the last many years due to the outstanding City Councils and staff teams. On October 20 the Southern California Association of Governments meeting will take place during which there will be a discussion of the regional transportation plan. SCAG is pushing for 50-60 foot high truck lanes over the San Jose Creek which is the waterway between the SR60 and the Union Pacific Rail lines. D.B. is opposed to that plan and has been working very hard to get other cities to join in the opposition of the plan which will likely come to a vote in October. She plans to be at that meeting to voice D.B.'s opposition and encourage other surrounding cities to voice their opposition as well. OCTOBER 18, 2011 -PAGE 9 CITY COUNCIL MPT/Chang reminded everyone to follow her on Facebook and Twitter and announced that she will be joining Foursquare. MPT/Chang reported that on October 10 she had been invited to help celebrate Taiwan's 100th year of democracy and freedom at the Universal Hilton at Barnes Park in Monterey Park. She also participated in a parade in Chinatown in downtown LA. She also joined the Government Affairs Committee with the Regional Chamber and looks forward to the meetings. She commended the Mayor for his idea for a Mayor's Cup for the October 7 match between DBHS and DRHS because it promotes a sense of spirit and community pride while showcasing the City's 2 great high schools and student athletic abilities. She reminded residents that if they would like to participate in the D.B. Educational Community Roundtable, the next meeting is November 1 at 9:00 a.m. at the AQMD for parents of school children in D.B. from both school districts. The Diamond Bar Community Foundation Gala will be held on November 12 from 6:00 to 10:00 p.m. which includes dinner and dancing with semi -formal attire. For more information click on www.dbcf.org or call 909-860-6088. M/Tye spoke regarding a letter he had received criticizing the Mayor's Cup event between Diamond Bar High and Diamond Ranch High. He stated that he was disappointed that some residents misunderstood his intent; however, there will always be those who misunderstand the intent. M/Tye said he hoped that everyone would join the Council on Saturday at 9:00 a.m. at Washington Park at which time the kids in the surrounding neighborhoods will have the opportunity to decorate tiles that will be incorporated into the construction of the park. He is exceedingly proud of this City, this Council and past Councils, and this staff that resulted in a AA+ rating from Standard and Poor's. This happened over a period of time since 1989 and it is due to the work of the City Councils and administrations since the City's inception. ADJOURNMENT: With no further business to conduct, M/Tye adjourned the Regular City Council meeting at 7:40 p.m. TOMMY fi CRIMNS, CITY CLERK The fore ng minutes are hereby approved this 1st day of _, November , 2011 �. �- ---- j STE , MAY/OR