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HomeMy WebLinkAbout05/15/2012 Minutes - Regular MeetingCITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION MAY 15,2012 STUDY SESSION: M/Chang called the Study Session to order at 5-17 p.m. in Room CC -8 of the South Coast Air Quality Management District, 21865 Copley Drive Diamond Bar, CA. Present: Council Members, Ron Everett, Carol Herrera, Steve Tye, Mayor Pro Tern Jack Tanaka and Mayor Ling -Ling Chang. Staff Present: James DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; Dianna Honeywell, Finance Director; David Liu, Public Works Director; Bob Rose, Community Services Director; Greg Gubman, Community Development Director; Ryan McLean, Assistant to the City Manager; Rick Yee, Senior Civil Engineer; Kimberly Young, Associate Engineer; Glenn Steinbrink, Financial Consultant, Ken Desforges, IT Director; Marsha Roa, Public Information Manager, and Tommye Cribbins, City Clerk. FY 2012-13 BUDGET — Discussion and Action FIVE (5) YEAR CAPITAL IMPROVEMENT PROJECTS (CIP) — Discussion and Action CMIDeStefano stated that tonight's presentation of the FY2012-13 Budget is in anticipation of the Council's- adoption on June 5. In addition, staff is introducing a new concept for DB, a Five (5) Year Capital Improvement Program. Staff spent a great deal of time putting this budget together and he thanked his department heads including CSD/Rose and PWD/Liu who worked diligently to make sure the City's General Fund dollars were protected by using every cent of available resources from state and federal programs available to them for CIP projects. Revenues remain relatively flat. There were increases in spending this year including the Sheriff's Liability Trust Fund and the increase in the Sheriffs Department contract which amounted to about $550,000. The City refinanced the bonds and initially, the refinancing of the bonds affects the City in a significant way during the first few years and the amount for this year was about $200,000. CM/DeStefano stated that FC/Steinbrink will discuss the bond renewal and its effects. There was an increase in FY 2011-12 with the full year increase going into a FY 2012713 for the new City Hail and Library operations. In FY 2012-13 the City will see a slight increase in reserves as a result of revenues over expenditures. Staff is expecting an improvement in sales tax revenue due to the Shell Station, Ralph's replacement and upcoming progress on the Kmart property. In the years following 2013, there are one time revenues coming from the sale of the City's portion of the Site D property as well as, the School District's reimbursement of the $500,000 loan from the City for processing of Site D project and developer fees. The City will also realize about $1 million in developer fees from the South Point JCC project. CM/DeStefano said that he would recommend to the Council that as some of these additional revenues are paid to the City that some of the depleted special funds (parks funds, traffic mitigation monies, capital equipment replacement including technical equipment, MAY 15, 2012 PAGE 2 CC STUDY SESSION vehicles, etc.) be backfilled. During these past recessionary years the City has been able to maintain its level of service without program and personnel changes and protect its General Fund resources. 1. Discussion of Fiscal Year 2012-13 Budget: FD/Honeywell introduced the FY 2012-13 Budget which is balanced and increases the General Fund Reserves by about $55,000. The budget, as proposed, incorporates modest and realistic growth in both revenue and expenditures over the prior year's revenue and expenditures while maintaining the committed . service levels. Projected General Fund Revenues are expected to grow about 1.2 percent over the 2011-12 revenues. The three most significant revenues to the General Fund are property taxes, in -lieu vehicle license fees and sales tax that account for nearly 60 percent of the General Fund revenue. Projected General Fund Expenditures for 2012-13 are expected to grow about 2.9 percent excluding the Civic Center expenses incurred during the current fiscal year. Most of the growth in expenditures is attributable to the public safety budget ($542,000), increases in expenses for the Civic Center ($160,000), personnel increases (2 percent Cost of Living and a $25 increase to the benefit allotment) and increased expense on the debt service on the 2002 bonds (increased by approximately $100,000). FC/Steinbrink explained that DB has never before had a debt service bond reflected in the budget and has always buried the debt service cost in the General Fund. This year staff decided it would be a good idea to separate out those debt service costs and put them into their own fund in the budget. Page 179 of the proposed budget shows the debt service fund. He explained why it was in the City's best interest to refinance the bond from a variable to a fixed rate. FD/Honeywell continued stating that this budget provides for the use of General Fund reserves in the amount of about $665,000. The most notable expenditure is the purchase of an emergency generator for the new Civic Center which will allow the City to continue service in the event of a power outage as well as, the transfer out to the Lighting and Landscape Districts in the amount of about $113,000 for utilities and maintenance. FC/Steinbrink announced that no action would need to be taken tonight on the following item. In Fiscal Year 2005-06 the City was required to join a risk pool in PERS because the City has less than 100 employees in the -system. At the time the City was required to join the pool it was not fair for all of the agencies in the pool to bear the unfunded liabilities of all of the other agencies in the pool, so MAY 15, 2012 PAGE 3 CC STUDY SESSION each agency's unfunded liability was fixed at that time and was set aside in a "side" fund that allowed PERS to increase the City's employer rate each year to amortize and pay down the "side" fund in addition to all of the normal costs that all of the agencies in the pool would pay. At the time DB was required to join the pool the City's unfunded liability was $556,000 and the interest rate was 8.25 percent. The second year the interest rate dropped to 7.75 percent and remained at that level until it will drop next year to 7.50 percent. In today's economy and market, 7.50 percent is an outrageous amount of interest expense. Therefore, staff is recommending that DB pay off the "side" fund in 2011-2012 which will reduce the employer contribution rate for 2013 and years beyond for a total of nine years, By using the $588,000 of General Fund reserves to pay off the "side" fund it will save the City a net of about $140-$150,000 over the nine years. By paying this account off early, the savings to the City is probably greater than $200,000. He said he figured the amount of interest the City would make on the $588,000 would be a lot less than the $50-$60,000 he backed out, because this amount has to be paid out over the next nine years one way or the other. C/Everett asked where the CalPers payment is shown. FC/Steinbrink responded that it is actually shown in each department under retirement costs. C/Evereft said he appreciated staffs work on the budget along with the budget's goals statement. He said he wanted to hear innovative methods for more fairly responding to the Lighting and Landscape Districts, especially 39 and 41. Unless residents are willing to pay for the type of pristine greenery of the parks the City enjoys, that level of service is not warranted. ClEverett asked if there was anything more staff could do to reduce budget costs. FD/Honeywell said that staff spent a tremendous amount of time and effort to reduce costs wherever possible while maintaining current service levels. The budget is a fluid process and is regularly updated. C/Everett stated "a different or reduced service level" as something staff could consider. M/Chang said she recently attended an event in which council members from various cities were invited to comment on their budgets and almost everyone had something negative to say and that they were having a difficult time balancing their budgets. M/Chang said she wanted to go up and say that DB was doing MAY 15, 2012 PAGE 4 CC STUDY SESSION great and that it was able to open a new city hall and two parks and still maintain a healthy reserve due to the fiscally prudent staff and Council Members. M/Chang thanked staff for the excellent budget. C/Herrera recalled that DB felt bad for a number of years because it did not have a redevelopment agency and the City felt it was behind the times and everyone else had an advantage over DB. Now the shoe is on the other foot because DB has learned how to cope with what it has and the City does very well. She feels somewhat differently than C/Everett in that she knows that CM/DeStefano and his staff hold the line very tightly on expenses, staff re-evaluates everything mid -year and all departments trim back a bit wherever possible and monies are shifted from place to place to better address the City's needs — she knows that staff does those things and it is certainly reflected in a budget where DB does' not have to look at making $1 million in personnel and program cuts because the City is balanced and will have $57,000 left over which to her is amazing. DB is in a unique position which is due to everyone working very hard all year round to hold the line and be as prudent with expenditures as possible in each department, She again thanked CM/DeStefano and staff. MPT/Tanaka said he felt the same as C/Herrera. First, he thanked staff for the great budget and looks to increasing services and programs rather than looking for more cuts because the City does have a balanced budget. Yes, the City has taken some hits on slurry seal schedules and other items that he would have liked to see stay on schedule but with the information from the experts the City has been able to trim back a little and at this point he would like to maintain and increase the budget rather than looking for more cuts because the service levels are so great, the residents of DB expect that to continue and the City has done its best to trim wherever possible and does not believe that staff needs to go back and try to find areas to trim any more than what has already been done. CM/DeStefano explained that DB has spent the last five years trimming the budget by looking at each of the programs and services for ways to be more innovative and where possible, have reinvested in those types of programs and opportunities whether it was by saving water, saving electricity through parks and/or public works projects. Each year has been harder and harder. The City is probably better off not having redevelopment but losing that effort 12 years ago hurt DB greatly at that time. However, today this City looks like it is genius for not having redevelopment. DB would have been able to do more if it had a redevelopment agency and significant businesses were lost to adjacent cities that had MAY 15, 2012 PAGE 5 CC STUDY SESSION redevelopment agencies. Many cities are struggling greatly because of the weight of redevelopment problems, debt and burden which is something DB does not have. DB, as a contract city, has managed to weather the storm far better than most cities because most cities are full-service cities and bear the weight and burden of public safety costs. DB has a fire district and a modest public safety budget through the very fine Sheriffs Department that works with contract cities to make certain service levels remain high and costs are as low as possible. Staff members are always looking at different ways to stretch the dollars and maintain the high quality of service. Staff can discuss these issues further at tomorrow's staff meeting. However, when you consider watering less or owing less you risk a compromise in appearance and with the cultural bias to maintain the green it may make the choices tougher. CM/DeStefano said he did not know where more cuts would be productive. He tended to think it might be a more sery ices cut orientation other than new innovations. C/Evereft said he had no intention of looking at service levels across the board. His service level concern was with two accounts only — Lighting and Landscape District #39 and #41. M/Chang said that even with the new five-year slurry seal program people have commented to her how good DB streets are and CM/DeStefano responded that DB has the best streets because of PWDILiu and the best parks because of CSD/Rose and the City Council providing the best direction for property maintenance. Some neighboring cities that have not maintained their streets for many years will end up spending considerably more "fixing" their streets than they would have spent with a reasonable program in place. 2. Discussion of Five (5) Year Capital Improvement Projects (CIP): CM/DeStefano explained that this five year plan begins with the current fiscal year and shows where the City plans to go with the upcoming fiscal year's CIP as well as, the three fiscal years beyond the upcoming fiscal year. Next year the 2013-2014 and four years beyond will be included. This will allow the City Council to help guide staff to project future resources allocations and what projects should move forward and this five year plan will allow PWD/Liu and CSD/Rose to tell Council which projects they believe need attention. Ultimately, this will allow the City to focus resources on projects it might want to accomplish three or four years from now. This program is a dynamic process of capital investment. Priorities will change as new ideas and concepts come forth. MAY 15, 2012 PAGE 6 CC STUDY SESSION PWDILiu gave a Power Point presentation on the five-year proposed plan. By considering all of the projects over the five year span, it allows staff and Council to have a more comprehensive view of the community's capital needs and allow for better coordination and financing opportunities for projects. The presentation focused on 59 projects over the next five years for a total cost of just under $30 million with only $450,000 expected to be paid toward these projects from the City's General Fund. CSD/Rose talked about the proposed projects and funding sources and explained how some projects have been moved forward and others deleted (deferred) because they extend beyond the five year summary period. CM/DeStefano reminded Council that it would be asked to adopt the FY 2012-13 Budget and the CIP for FY 2012-13 on June 5. He again thanked staff and particularly his management team for their excellent efforts this year. Public Comments: None Offered. ADJOURNMENT: With no further business to come before the City Council, M/Chang adjourned the Study Session at 6:23 p.m. to the Regular City Council Meeting. TOMMYY CRIBBINS, City Clerk The foregoing minutes are hereby approved this 5th - day of June 2012. 0 a g -Ling Chang, Mayor LJng Chang. Mavor���� MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR MAY 15, 2012 STUDY SESSION: 517 p.m., Room CC -8, South Coast Air Quality Management District, 21865 Copley Drive, Diamond Bar, CA. CALL TO ORDER: Mayor Ling -Ling Chang called the Regular City Council meeting to order at 6:32 p.m. in the SCAQMD/Government Center Auditorium, 21865 Copley Drive, Diamond Bar, CA. CM/DeStefano reported that during tonight's study session the City Council discussed the recommended draft Budget for FY 2012-13. This document reflects the continued conservative revenue and expenditures the City has been dealing with, without any diminishment of service levels. This budget reflects resources of about $20,300,000 and appropriations of about $20,250,000, offering a small surplus for the end of the 2013 budget term. Staff also presented a proposed Five (5) Year Capital Improvement Project (CIP) program with specific projects Fiscal Year 2012-13 and beyond. Fifty -Nine projects are estimated to cost about $30 million. Both these items will be brought to Council th for adoption at their meeting of June 5 PLEDGE OF ALLEGIANCE: Council Member Carol Herrera led the Pledge of Allegiance. INVOCATION: Alex Barrett, Associate Pastor, Church in the Valley, gave the invocation. ROLL CALL: Council Members Ron Everett, Carol Herrera, Mayor Pro Tem Jack Tanaka, and Mayor Ling -Ling Chang. Absent: Council Member Steve Tye was excused. Staff Present: J ames DeStefano, City Manager; David Doyle, Assistant City Manager; Michael Jenkins, City Attorney; Dianna Honeywell, Finance Director- David Liu, Public Works Director- Greg Gubman, Community Development Di�ector; Bob Rose, Community Se'rvices Director; Rick Yee, Senior Civil Engineer; Kimberly Young, Associate Engineer; Ryan McLean, Assistant to the City Manager, Lauren Hidalgo, Public Information Specialist, and Tommye Cribbins, City Clerk. APPROVAL OF AGENDA: As Presented. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: None. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None MAY 15, 2012 191 0 5, PUBLIC COMMENTS: PAGE 2 CITY COUNCIL Steve Otting and his son Nolan, representing Mt. Calvary Lutheran School, announced that on Saturday, May 19 from 9,00 a.m. to 3:00 p.m. the school will sponsor an E -Waste fundraiser. There is no charge for drop off of computer equipment. Julie McFarland (Princess Julie), Diamond Bar Library, spoke about the "Dream Big at Your Library" summer reading program which is all about dreams, stars, constellations, space and travel. To kickoff the summer reading program the library is sponsoring a Star Wars Party on June 16 from 2:00 to 3:30 p.m. RESPONSE TO PUBLIC COMMENTS: None. SCHEDULE OF FUTURE EVENTS: 5.1 Planning Commission Meeting — May 22-, 2012 — 7:00 p.m., Windmill Community Room, Diamond Bar City Hall, 21810 Copley Drive. 5.2 Parks and Recreation Commission Meeting — May 24, 2012 — 7:00 p.m., Windmill Community Room, Diamond Bar City Hall, 21810 Copley Drive. 5.3 Memorial Holiday — May 28, 2012 — City Offices closed in observance of the Memorial Day Holiday. City Offices reopen Tuesday, May 29, 2012 at 7-30 a.m. 5.4 Washington Park Grand Opening — June 2, 2012 — 10:00 a.m., 21208 Washington Street. 5.5 City Council Meeting — June 5, 2012 — 6-30 p.m., SCAOMD/Government Center Auditorium, 21865 Copley Drive. 6. CONSENT CALENDAR: C/Herrera moved, MPT/Tanaka seGonded, to approve the Consent Calendar as presented. Motion carried by the following Roll Call: AYES. COUNCIL MEMBERS: Everett, Herrera, MPT/Tanaka, M/Chang NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Tye 6.1 CITY COUNCIL MINUTES — Regular Meeting of May 1, 2012 — Approved as amended. MAY 15,2012 PAGE 3 CITY COUNCIL 6.2 RECEIVED AND FILED PARKS AND RECREATION COMMISSION MINUTES: 6.2.1 Regular Meeting of January 26, 2012 6.2.2 Regular Meeting of February 23, 2012 6.3 RATIFIED CHECK REGISTER Dated April 26, 2012 through May 9, 2012 totaling $1,168,678.59. 6.4 APPROVED AMENDMENT NO. 5 TO THE MEMORANDUM OF UNDERSTANDING WITH THE WALNUT VALLEY UNIFIED SCHOOL DISTRICT RELATED TO THE SITE D SPECIFIC PLAN. 6.5 ADOPTED RESOLUTION NO. 2012-19: AUTHORIZING AND APPROVING THE SALE OF $200,000 OF PROPOSITION A FUNDS (LOCAL RETURN TRANSIT FUNDS) TO THE CITY OF INDUSTRY. 6.6 a) AWARDED CONSTRUCTION ADMINISTRATION SERVICES CONTRACT TO ONWARD ENGINEERING FOR THE CHINO HILLS PARKANAY AND CHINO AVENUE STREET REHABILITATION PROJECT, FEDERAL PROJECT NO STPL- 5455(015), IN THE AMOUNT OF $39,900, PLUS A CONTINGENCY AMOUNT OF $4,000 FOR A TOTAL AUTHORIZATION OF $43,900. b) ADOPTED RESOLUTION NO. 2012-20- APPROVING PLANS AND SPECIFICATIONS AND ESTABLISHING A PROJECT PAYMENT ACCOUNT; AND, AWARDED THE CONSTRUCTION CONTRACT TO ALL AMERICAN ASPHALT FOR THE CHINO HILLS PARKWAY AND CHINO AVENUE STREET REHABILITAT10N PROJECT, FEDERAL PROJECT NO STPL-5455(015) IN THE AMOUNT OF $606,000 PLUS A CONTINGENCY AMOUNT OF $60,600 FOR A TOTAL AUTHORIZATION OF $666,600. 6.7 APPROPRIATED PROP C FUNDS IN THE AMOUNT OF $75,702.50 AND PROP 1B FUNDS IN THE AMOUNT OF $16,070 TO THE CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2011-12; ADOPTED RESOLUTION NO. 2012-21 APPROVING PLANS AND SPECIFICATIONS AND ESTABLISHING A PROJECT PAYMENT ACCOUNT- AWARDED THE CONSTRUCTION CONTRACT FOR THE R�SIDENTIAL AREA 1A (BOUNDED BY THE CITY LIMITS TO THE NORTH AND WEST AND SR57 TO THE SOUTH AND EAST) AND ARTERIAL ZONE 6 (GOLDEN SPRINGS DRIVE BETWEEN DIAMOND BAR BOULEVARD AND TEMPLE AVENUE) ROAD MAINTENANCE MAY 15, 2012 PAGE 4 CITY COUNCIL PROJECT TO HARDY & HARPER, INC. IN THE AMOUNT OF $1,212,000; AND, AUTHORIZED A CONTINGENCY AMOUNT OF $145,828.50 FOR CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $1,357,828.50. 7. PUBLIC HEARING: 7.1 FIRST READING OF ORDINANCE NO, OX (2012): AMENDING THE DIAMOND BAR MUNICIPAL CODE TO ESTABLISH ENFORCEMENT AUTHORITY RELATED TO ANIMAL CODE VIOLATIONS. CM/DeStefano reported that this matter relates to a minor change to the City's Municipal Code with respect to animal code violations. ATCM/McLean stated that the item before the City Council this evening is the First Reading of an Ordinance amending Section 6.00.020 of the Municipal Code which is related to enforcement of the City's animal related code provisions. Animal services are currently provided by the Inland Valley Humane So'ciety under a Council approved contract and these services include enforcement of the City's animal related codes. Since much of the City's animal code was adopted from the County at the time of incorporation it is sometimes in need of review and amendment to properly reflect the City's current procedures. Tonight's recommended Ordinance makes a very simple but important change by adding a one sentence subsection clearly granting the Director of the City Council's approved contract for animal services with the authority to enforce the animal code. It should be noted that this section does not change existing procedures, but simply clarifies them in the code by stating in print that "the Director of the Animal Control Agency has the authority to issue citations for animal code violations". Staff recommends Council approve First Reading of the Ordinance as presented. C/Herrera asked if the animal control director had authority to issue citations previously. ATCM/McLean responding affirmatively stated that the code references the director and defines the director as the Director of the City's Animal Control Agency and that there are certain sections throughout the Ordinance where the Director is referred to as the enforcement authority. This subsection provides a clearer picture of what the City is attempting to do. M/Chang opened the Public Hearing, MAY 15,2012 PAGE 5 CITY COUNCIL With no one present who wished to speak on this matter, M/Chang closed the Public Hearing. C/Herrera moved, C/Everett seconded, to approve for First Reading by Title Only, Waive Full Reading of Ordinance No. OX(2012) and adopt Ordinance No. OX(2012). Motion carried by the following Roll Call vote: AYES: COUNCILMEMBERS: Everett, Herrera, MPT/Tanaka, M/Chang NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Tye 8. COUNCIL CONSIDERATION: None 9. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: C/Everett reported that.he had attended the National Day of Prayer and Breakfast on Thursday, May 1. That evening he attended the League of California Cities LA Division member meeting along with M/Chang and CM/DeStefano. During the meeting MIChang was nominated for LA County Division Vice President. The following Saturday he attended the Sycamore Canyon Trailhead dedication and on Wednesday kicked off a multi -agency fire exercise called "SOLAR" and that afternoon attended the San Gabriel Valley Regional Chamber of Commerce Power Lunch. The next day he attended the Asian Business Association Chamber of Commerce small business exchange. Friday night he attended Chaparral Middle School's Annual String Orchestra Spring Concert during which he presented a Certificate in recognition of top ratings in concert festivities over the past 10 years. Lastly, he attended two Eagle Scout ceremonies for Eric Solis, Troop.777, (DRHS) and Ian Shaw, Troop 737 (DBHS) at their Courts of Honor. C/Herrera reported that last week she attended Foothill Transit's Annual Governing Board meeting and is happy to report that a business plan (balanced budget) was adopted. Due to prudent fiscal management, Foothill Transit is in a much improved financial situation over last year when they were looking at $6 million in personnel and services cuts. Foothill is no longer in that situation and there will be no cuts of any lines. Saturday she attended the City Birthday Party and thanked staff and the hundreds of volunteers for all their hard work in putting together a great event. Everyone worked very hard to make the event a success. MPT/Tanaka reported on his attendance at the DB Senior's Cinco de Mayo Dinner Dance, Sycamore Canyon Trailhead opening last Saturday and the 23 d City Birthday Celebration at Pantera Park, He thanked Miss MAY 15, 2012 PAGE 6 CITY COUNCIL Diamond Bar and her Court for participating, congratulated the volunteers who were recognized as well as thanking CSD/Rose and staff. This Saturday and Sunday the American Cancer Society's DB Relay for Life will be held at Lorbeer Middle School beginning at 9:00 a.m. on Saturday and ending at 9:00 a.m. on Sunday. He asked that tonight's meeting be adjourned in memory of Gil Pagan, a longtime DB resident. M/Chang invited residents to follow her on Facebook, Twitter and Foursquare as well as, the City's website. She and ACM/Doyle gave a presentation to the Flash Leadership Class at Lorbeer Middle School on local government and leadership. She enjoyed the City's Birthday Party and thanked staff for their efforts. She reported that a couple of businesses had approached her to thank her and the City for the ease of working with the City to start a business in DB- She attended the Diamond Bar Community Foundation/Walnut Valley Rotary Golf Tournament yesterday. ADJOURNMENT: With no adjourned the Regular City Council Pagan, husband of Orien Pagan and further business to conduct, M/Chang Meeting at 7:01 p.m. in memory of Gilbert longtime resident. TOMWEICRIBBINS, CITY CLERK The foregoing minutes are hereby approved this -9th day of jiinp 2012.