HomeMy WebLinkAbout06/05/2012 Minutes - Regular MeetingMINUTES OF THE CITY COUNCIL
REGULAR MEETING OF THE CITY OF DIAMOND BAR
JUNE 5, 2012
CALL TO ORDER: Mayor Ling -Ling Chang called the Regular City
Council meeting to order at 6:32 p.m. in the SCAQMD1Government Center
Auditorium, 21865 Copley Drive, Diamond Bar, CA.
PLEDGE OF ALLEGIANCE: Council Member Steve Tye led the Pledge of
Allegiance.
INVOCATION: Cantor Paul Buch, Temple Beth Israel, gave
the invocation.
ROLL CALL: Council Members Ron Everett, Carol Herrera,
Steve Tye, Mayor Pro Tem Jack Tanaka, and Mayor Ling -Ling Chang.
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; Dianna Honeywell, Finance Director; Greg Gubman, Community
Development Director; Ryan McLean, Assistant to the City Manager; Rick Yee,
Senior Civil Engineer; Kimberly Young, Associate Engineer; Cecilia Arellano,
Public Information Coordinator, and Tommye Cribbins, City Clerk.
APPROVAL OF AGENDA: As Presented.
1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS:
None
2. CITY MANAGER REPORTS AND RECOMMENDATIONS:
2.1 Update on Park -n -Ride - CMIDeStefano reported that the City
Council was introduced to the possibility of Foothill Transit building
a park -n -ride facility of at least 500 vehicles on the park -n -ride lot at
Diamond Bar Boulevard just north of the SR60. Diamond Bar is
one of three sites under consideration by Foothill Transit. Staff
recently met with Caltrans and Caltrans is interested in
relinquishing the property from their inventory and by structure it
would come to the City of Diamond Bar. Should they agree to
develop a parking facility with Foothill Transit, the City would likely
enter into some sort of lease agreement with Foothill Transit calling
for them to build, operate and maintain a parking facility on the
property. Foothill Transit is seeking direction from its Board of
Directors about whether or not they are interested in constructing
the facility in DB. City staff has completed their portion of the
negotiations and should Foothill Board take action to seek approval
from DB to build such a facility the City will then commence
negotiations with Foothill and bring the matter to Council for a
decision about whether to enter into such an agreement and
relinquishment of the property by Caltrans.
JUNE 5, 2012 PAGE 2 CITY COUNCIL
3. PUBLIC COMMENTS: None Offered.
4. RESPONSE TO PUBLIC COMMENTS: None
5. SCHEDULE OF FUTURE EVENTS:
5.1 Planning Commission Meeting — June 12, 2012 — 7:00 p.m.,
Windmill Community Room, Diamond Bar City Hall, 21810 Copley
Drive.
5.2 Traffic and Transportation Commission Meeting — June 14, 2012 ---
7:00 p.m., Windmill Community Room, Diamond Bar City Hall,
21810 Copley Drive.
5.3 Silver -Tip Park Grand Re -Opening — June 16, 2012 — 10:00 a.m.,
904 Longview Drive.
5.4 City Council Meeting — June 19, 2012 — 6:30 p.m.,
SCAQMDIGovernment Center Auditorium, 21865 Copley Drive.
6. CONSENT CALENDAR: CITye moved, C/Herrera seconded, to approve
the Consent Calendar with the exception of Item 6.12 pulled by C/Everett.
Motion carried by the following Roll Call:
AYES: COUNCIL MEMBERS: Everett, Herrera, Tye, MPT/Tanaka,
M/Chang
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
6.1 CITY COUNCIL MINUTES:
6.1.1 Study Session of May 15, 2012 —Approved as submitted.
6.1.2 Regular Meeting of May 15, 2012 —Approved as submitted.
6.2 RECEIVED AND FILED TRAFFIC AND TRANSPORTATION
COMMISSION MINUTES:
6.2.1 Regular Meeting of March 8, 2012
6.2.2 Regular Meeting of April 12, 2012
6.3 RATIFIED CHECK REGISTER - Dated May 10, 2012 through May
30, 2012 totaling $1,532,983.51.
6.4 APPROVED TREASURER'S STATEMENT —For April, 2012.
JUNE 5, 2012 PAGE 3 CITY COUNCIL
6.5 ADOPTED ORDINANCE NO. 09 (2012):
DIAMOND BAR MUNICIPAL CODE
ENFORCEMENT AUTHORITY RELATED
VIOLATIONS.
AMENDING THE
TO ESTABLISH
TO ANIMAL CODE
6.6 APPROPRIATED PROP C FUNDS IN THE AMOUNT OF $25,000
TO THE CAPITAL IMPROVEMENT PROGRAM BUDGET FOR
FISCAL YEAR 2011-12; ADOPTED RESOLUTION NO. 2012-22
APPROVING PLANS AND SPECIFICATIONS AND
ESTABLISHING A PROJECT PAYMENT ACCOUNT; AWARDED
CONSTRUCTION CONTRACT FOR THE COPLEY DRIVE BUS
STOP RELOCATION TO TSR CONSTRUCTION AND
INSPECTION IN THE AMOUNT OF $20,400, PLUS A
CONTINGENCY AMOUNT OF $3,000 FOR CONTRACT CHANGE
ORDERS TO BE APPROVED BY THE CITY MANAGER, FOR A
TOTAL AMOUNT OF $23,400.
6.7 a) ADOPTED RESOLUTION NO. 2012-23: APPROVING
PLANS AND SPECIFICATIONS AND ESTABLISHING A
PROJECT PAYMENT ACCOUNT; AWARDED THE
CONSTRUCTION CONTRACT FOR THE GOLDEN SPRINGS
DRIVE DRAINAGE IMPROVEMENT PROJECT IN THE VICINITY
OF LAVENDER DRIVE/CALVARY CHAPEL TO HYM
ENGINEERING, INC. IN THE AMOUNT OF $154,470; AND,
AUTHORIZED A CONTINGENCY AMOUNT OF $15,400 FOR
CONTRACT CHANGE ORDERS TO BE APPROVED BY THE
CITY MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF
$169,870.
b) AWARDED CONSTRUCTION ADMINISTRATION SERVICES
CONTRACT TO DMS CONSULTANTS, INC. FOR THE GOLDEN
SPRINGS DRIVE DRAINAGE IMPROVEMENT PROJECT IN THE
AMOUNT OF $28,100, PLUS A CONTINGENCY AMOUNT OF
$3,000, FOR A TOTAL AUTHORIZATION OF $31,110.
6.8 ADOPTED RESOLUTION NO. 2012-24: APPROVING PLANS
AND SPECIFICATIONS AND ESTABLISHING A PROJECT
PAYMENT ACOUNT; AND, AWARDED THE CONSTRUCTION
CONTRACT TO ROBERT D. GOSNEY FOR THE PATHFINDER
ROAD EROSION CONTROL PROJECT (BETWEEN DIAMOND
BAR BOULEVARD AND PRESADO DRIVE) IN THE AMOUNT OF
$44,780, PLUS A CONTINGENCY AMOUNT OF $5,220, FOR A
TOTAL AUTHORIZATION OF $50,000.
JUNE 5, 2012 PAGE 4 CITY COUNCIL
6.9 ADOPTED RESOLUTION NO. 2012-25: APPROVING PROGRAM
SUPPLEMENT AGREEMENT NO. 012-N TO ADMINISTERING
AGENCY -STATE AGREEMENT NO. 07-5455R FOR UTILIZATION
OF FEDERAL FUNDS IN THE AMOUNT OF $519,000 FOR
CONSTRUCTION OF THE CHINO HILLS PARKWAY AND CHINO
AVENUE STREET REHABILITATION PROJECT -FEDERAL
PROJECT NO. STPL-5455(015).
6.10 a) ADOPTED RESOLUTION NO. 2012-26: DECLARING THE
CITY'S INTENTION TO LEVY AND COLLECT ASSESSMENT
FOR LANDSCAPE DISTRICT NO. 38 AND DIRECTED THE CITY
CLERK TO ADVERTISE THE PUBLIC HEARING BEFORE THE
CITY COUNCIL AT ITS JULY 17, 2012 REGULAR MEETING.
b) ADOPTED RESOLUTION NO. 2012-27: 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 BEFORE THE
CITY COUNCIL AT ITS JULY 17, 2012 REGULAR MEETING.
c) ADOPTED RESOLUTION NO. 2012-28: 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 BEFORE THE
CITY COUNCIL AT ITS JULY 17, 2012 REGULAR MEETING.
6.11 APPROVED 2011-12 BUDGET ADJUSTMENT FOR GAS TAX
FUND.
MATTERS WITHDRAWN FROM CONSENT CALENDAR:
6.12 AWARD OF CONTRACT TO KORMX, INC. FOR
CONSTRUCTION OF THE ACCESSIBLE WALKWAY AT THE
PANTERA PARK DOG PARK IN THE AMOUNT OF $96,875 PLUS
A CONTINGENCY OF $9,688 (10%) FOR A TOTAL
AUTHORIZATION OF $106,563; PLUS AUTHORIZE THE
EXPENDITURE OF $235,000 FOR THE DEVELOPMENT OF THE
DOG PARK.
C/Everett asked staff to clarify changes in the project and its cost.
CSD/Rose stated that staff's report lists a $235,000 total budget for
development of the dog park versus the $131,600 that was
originally appropriated in the 2011-2012 FY Budget. The difference
in the cost for the dog park is because of the required accessible
walkway. Staff anticipated spending no more than $20-$25,000 for
a decomposed granite path to the dog park from the developed
JUNE 5, 2012 PAGE 5 CITY COUNCIL
7.
Pantera Park. However, investigation of the site and evaluation of
the site by the Civil Engineer disclosed that the elevations for the
accessible walkway were significant. Under the ADA Federal Law,
an accessible walkway can have a maximum 5 percent grade.
Inclines of more than 5 percent up to 8.33 percent requires
handrails. The existing terrain and conditions which include the
underground flood control pipes limited the amount of grading that
could be done to create the path for the walkway. After considering
all options, staff discovered that the proposed method was the most
cost-effective way to proceed without disturbing the pipes and
infringing on the dog park space. Originally the walkway was
planned to be five feet wide and inclusion of the handrails widened
the walkway to eight feet in order to accommodate maintenance
vehicles. The handrails added $41,000 to the overall cost and the
addition of the concrete to widen the walkway added cost as well.
C/Everett said he is sensitive to the increase and wonders what is
next. In light of the budget he is looking at ways to save or defer
money and his personal opinion would be to defer this or invite
members of the community to take a second look at it.
C/Herrera moved, CITye seconded, to approve the award of
contract to Kormx, inc. for construction of the accessible walkway at
the Pantera Park Dog Park in the amount of $96,875 plus a
contingency of $9,688 (10%) for a total authorization of $106,563;
plus authorize the expenditure of $235,000 for the development of
the dog park. Motion carried by the following Roll Call vote:
AYES: COUNCIL MEMBERS: Herrera, Tye, MPT/Tanaka,
M/Chang
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: Everett
ABSENT: COUNCIL MEMBERS: None
PUBLIC HEARING: None.
8. COUNCIL CONSIDERATION:
8.1 a) ADOPT RESOLUTION NO, 2012-29: APPROVING AND
ADOPTING A BUDGET FOR FISCAL YEAR COMENCING JULY
1, 2012 AND ENDING JUNE 30, 2013 INCLUDING
MAINTENANCE AND OPERATINOS, SPECIAL FUNDS AND
CAPITAL IMPROVEMENTS; AND, APPROPRIATE FUNDS FOR
ACCOUNTS, DEPARTMENTS, DIVISIONS, OBJECTS, AND
PURPOSES, THEREIN SET FORTH.
JUNE 5, 2012 PAGE 6 CITY COUNCIL
b) ADOPT RESOLUTION NO. 2012-30: SETTING
PROPOSITION 4 (GANN) APPROPRIATIONS LIMIT FOR FISCAL
YEAR 2012-13 IN ACCORDANCE WITH THE PROVISIONS OF
DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE.
c) ADOPT RESOLUTION NO. 2012-31: ADOPTING THE
STATEMENT OF INVESTMENT FOR FISCAL YEAR 2012-13.
d) ADOPT RESOLUTION NO. 2012-32: AMENDING
RESOLUTION NO. 2011-25 ESTABLISHING SALARY GRADES
AND FRINGE BENEFITS FOR ALL CLASSIFICATION OF
EMPLOYMENT EFFECTIVE JULY 1, 2012.
CMIDeStefano stated that his recommended budget reflects
General Fund estimated resources of $20,371,000 with
appropriations of $20,347,000 resulting in a modest increase to the
General Fund Reserves at the end of FY 2012-13 in the amount of
$24,667. This is a very tight and lean budget and is the fifth budget
he has presented to the Council that reflects changes in the City's
resources from 2000-2006. This budget reflects the conditions that
are within the local, regional and national economy. DB is
consistent with prior practices and policies and staff is
recommending the use of some General Fund Reserves in the
amount of $721,000. The City will begin the new fiscal year with a
General Fund Reserve amount of $16,469,000 and based upon
recommendations in the proposed budget for FY 2012-13 with a
Fund Balance Reserve of $15,772,000 based upon revenues and
expenditures as predicted at this point in history. This is 78 percent
of the operating budget. It is rare to find another City in California
and elsewhere that has 78 percent of its operating budget in
reserves. This is a lower number than the Council has seen in prior
years because as part of the policies and practices, the City has
used reserves for purchases that have been made over time, not
the least of which has been the decision to purchase a building and
construct a brand new City Hall and library for the community which
involved a significant investment of the City's resources. The City
Council chose to use its existing saved General Fund Reserves in
lieu of borrowing and paying more over time for the same capital
improvements. Additionally the $20 million plus General Fund
Operating Budget, about $6,290,000 will come from other sources
for capital improvements — maintaining the City's roadways, parks,
etc. Initially this budget was presented on May 15 and it has since
been tweaked with relatively minor changes in a couple of
instances. On May 15 staff and Council discussed the state of the
economy which is beginning to stabilize and modest increases are
felt in some of the City's major revenue sources such as sales and
property tax growth. Conservative forecasts indicate that
JUNE 5, 2012 PAGE 7 CITY COUNCIL
meaningful improvements will not be realized until at least the
2013-14 fiscal year which staff believes is true for DB with FY 2012-
13 Budget remaining tight for the City. When the mid -year budget
was presented to the Council in February he had stated to both the
Department Heads and Council that this would be a blueprint for
next year's budget. There are no changes to the Sheriff's
Department's budget and there is no diminishment of services. DB
made one $55,000 change which was to eliminate the cost in the
contract for a Community Services Officer position that has not
been filled for three years because the Sheriff's Department has
been unable to find a suitable candidate for that position. When the
Sheriff's Department finds a suitable replacement, the City will
gladly fund that position. There have been no program changes
and no service reductions in any other category of services that the
City continues to provide to the residents and the community. Staff
has found different ways to spend the public's resources, using
innovative ways whenever possible and always mindful of the
resources that are available by following the Council's lead and
continuing to provide service levels the public enjoys. With respect
to an anticipated increase in revenue in the 2013-14 FY, there are
some vacant retail locations in the City that staff believes will be
occupied by new and significant revenue producers. in the next
fiscal year providing additional sales tax revenue during FY 2013-
14. Staff believes that the City will see the transformation of at
least one major shopping center which will not physically occur until
the later part of 2012-13 and will not bring revenue and resources
to the City until 2013-14 and 2014-15. There are two or three
residential development projects that have been approved that staff
believes will move forward toward the end of 2013. Staff has not
incorporated revenues that come from those projects that will be
developed over time because staff believes those revenues will
begin coming forward to the City in fiscal years 2013-14, 2014-15
and 2015-16 cycles. Residential projects have development fees
that are one-time revenues that come to the City upon completion
of the projects which staff would see coming to the City during the
three years after the next FY cycle. The Site D project that was
approved by the Council earlier this year has allowed the school
district to proceed with its efforts to dispose of that property and
should the disposal continue on its current path with bids due from
potential buyers tomorrow, the City would see the reimbursement of
the .resources that were utilized for the school district to process
that project paid most likely during FY 2013-14 depending on the
length of escrow. Upon close of escrow, the City receives
reimbursement of those resources in the amount of about
$500,000. The City invested in a piece of property a few years ago
which lies adjacent to the Site D property and is being sold
concurrently with the school district's property. Revenues from the
JUNE 5, 2012 PAGE 8 CITY COUNCIL
City owned property will likely not be seen until the end of FY 2013-
14. Generally speaking the outlook for the budget is good. Staff
has not included any stadium related development opportunities or
any stadium related resources that come from the agreement
entered into with the City of Industry a few years ago because that
project is not certain. DB does not know what will frit it but it does
know that 2012-13 is tight and lean and staff will pay very close
attention to the revenue and expenditures anticipated throughout
the year. DB looks forward to new opportunities in 2013-14 and for
several years beyond.
FD/Honeywell stated that before the Council this evening is the
recommended 2012-13 FY Budget which is balanced and
increases the General Fund Reserves for operations by $24,667.
General Fund budgeted revenues are estimated to be $20,371,000
and are projected to increase over the current Fiscal Year by
$363,000 (2.1 percent). During the Study Session on May 15 it
was reported that General Fund Revenues were only expected to
increase 1.2 percent. After recalculating the numbers it was
discovered that there was a mathematical error and 2.1 percent is
the accurate figure. It was also reported that other taxes and fees
were estimated to increase only about 1 percent. Upon
recalculation, 2.54 percent is the correct number for other taxes
and fees increase. The General Fund budgeted expenditures are
estimated to be $20,347,000 and every effort has been made to
keep the appropriations near the same level as current fiscal year
estimates. It is anticipated that General Fund expenditures will
grow by 2.9 percent over the current fiscal year. As mentioned, the
Public Safety Budget is estimated to increase approximately 2.23
percent over the actual anticipated current year expenditures. The
proposed budget also includes a payment of four percent or
$211,000 to the Sheriff's Liability Trust Fund. This payment was
not required to be made during the current fiscal year so the total
increase to the Public Safety Budget is $542,000 and as also
mentioned, staffing levels remain unchanged from the current fiscal
year. Also incorporated in the proposed budget is a 2 percent Cost
of Living increase for the employees as well as, a $25 increase in
the benefit allotment which amounts to a total of $131,500. The
proposed budget provides for the use of General Fund Fund
Balance Reserves in the amount of approximately $721,000 and
most notable of the expenditures funded by the reserves is the
purchase of an emergency generator for the new Civic Center in
the amount of $120,000. The purchase of this generator will allow
the City to continue to provide core services to the community in
the event of a power failure. Since 2001, the City Council has
regularly set aside reserves to fund economic development
activities. Included in the proposed budget is $315,000 to fund
JUNE 5, 2012 PAGE 9 CITY COUNCIL
these activities. Also included is the transfer out to the Lighting and
Landscape Districts in the amount of $112,000 in order to maintain
current service levels for utilities and maintenance of grounds.
Tonight, staff is also asking Council to approve the Gann
Appropriation Limit which is required by the Government Code and
to approve the 2012-13 Investment Policy which remains
unchanged from the current year's Investment Policy. Staff is also
recommending that Council to adopt the 2012-13 Salary Resolution
which incorporates a 2 percent Cost of Living increase consistent
with the March to March CPI for wage earners and clerical workers
in Los Angeles and Orange Counties and includes a $25 increase
to the Benefit Allotment for a proposed total cost increase of
$131,500.
C/Herrera said she was very proud to be in the City of DB where
the Council and staff have been very conservative with its dollars.
DB is fortunate not be in a situation that a lot of neighboring cities
find themselves in and as a result, they are looking to cut millions of
dollars from their budgets while suffering large deficits and having
to layoff hundreds of individuals. DB looks good.
C/Herrera moved, MPT/Tanaka seconded, to approve Item 8.1 a)
b) c) and d).
MPT/Tanaka thanked staff for presenting the Council with a
balanced budget and especially thanked FD/Honeywell and
FCISteinbrink.
M/Chang commented that DB is a lean -mean operating machine
when it is unheard of to have 78 percent of the City's operating
budget in reserves. The State of California and Sacramento should
take note!
C/Everett said he agrees with what has been done in budgeting the
City's money with one exception using the General Fund
expenditure for the Lighting and Landscape Districts. He said he
believed the taxpayers owed the City more than one million dollars
for past years and again this year the City is taking $112,000 from
its reserves to keep the service level the same. In Study Session
he brought this matter up and that he appreciated every department
and resources except the Lighting and Landscape Districts. He felt
there could be water and labor reduction that would result in
$100,000 reduction and by doing so the City could learn something
which may or may not be okay with the residents. He would like for
someone to help him understand why the service level for the
Lighting and Landscape Districts which aren't City owned should be
the same as the City's Parks, recreation and facilities. Without that
JUNE 5, 2012 PAGE 10 CITY COUNCIL
service level being addressed and explained to him he couldn't
support this item and if it requires that he abstain from all four
categories he will do so.
There was no one present who wished to speak on this item.
Motion carried by the following Roll Call vote:
AYES: COUNCIL MEMBERS: Herrera, Tye, MPT/Tanaka,
M/Chang
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: Everett
ABSENT: COUNCIL MEMBERS: None
8.2 APPROVAL OF THE MULTI-YEAR CAPITAL IMPROVEMENT
PROGRAM.
CMIDeStefano reported that at its May 15 Study Session, staff
introduced to the City Council a five-year Capital Improvement
Program which commences with the current fiscal year and
subsequent years. This five-year proposal lays out a "game plan"
for how the City wishes to invest the public's resources in the City's
infrastructure.
PWD/Liu stated that as a five-year planning tool, staff would
propose to use this documentation to identify and coordinate the
financing and timing of public improvements in DB. By considering
all projects at one time a more comprehensive view can be taken of
the community's capital needs. Projects can be better coordinated
and financed through the use of this five-year CIP. Furthermore,
the multi-year CIP provides a means for the City Council to
determine capital priorities and continuity in moving them forward.
Project selection is based on citizen input, data from the Pavement
Management Program and the Comprehensive Infrastructure
Management Plan, Parks Master Plan, City Council Priorities,
General Plan Goals and information from City staff. Fifty-five
projects are listed in the summary representing an investment of
almost $30 million over the five-year plan with only $464,000
expected to be paid from the City's General Fund. Projects slated
for subsequent years in this document do not receive expenditure
authority until they are allocated funding for the capital project for
the specific fiscal year. He presented a summary of the five-year
expenditure plan with approximate estimates from various funding
sources. The capital improvement projects are divided into five
categories: 1) Street Maintenance, 2) Traffic Management and
' Safety, 3) Transportation Infrastructure, 4) Miscellaneous Public
Works Improvements and, 5) Parks and Recreation Improvements.
JUNE 5, 2012 PAGE 11 CITY COUNCIL
CSD/Rose stated that with some of the Public Works projects
during 2013 there will be a residential slurry seal project which will
take place in the center of the City. There will also be an arterial
slurry seal on a portion of Golden Springs Drive. The Grand
Avenue enhancement will be construction along with median
modifications at Diamond Bar Boulevard and Silver Hawk Drive as
well as, curb ramp design for the Gateway Corporate Center and
Peaceful Hills areas. Parks and Recreation improvements during
FY 2012-13, the Dog Park will be constructed with completion
anticipated for August 2012. In addition, staff plans to do some
design work for -the Grandview Trail. The Parks and Recreation
improvements for FY 2013-14 include construction of the
Grandview Trail and design of the Heritage Park Community Center
interior upgrade. Public Works projects included in FY 2013-14 are
interior slurry seal on Diamond Bar Boulevard and at Brea Canyon
Cutoff, construction of a median modification at Diamond Bar
Boulevard and Kiowa Crest and curb ramps in the Gateway
Corporate Center and Peaceful Hills as well as, residential slurry
seal on the west side of Diamond Bar Boulevard. During FY 2014-
15 staff plans to construct improvements at Longview Park South
and commence construction of the Lemon Avenue Interchange
Project. There will also be a median modification at Diamond Bar
Boulevard and Maple Hill and a residential slurry seal on the south
area of town as well as, an arterial slurry seal along Golden Springs
Drive from Grand Avenue to the north City limits. During FY 2015-
16 Parks and Recreation would include construction of Stardust
Park and for Public Works there would be a rehabilitation of
Pathfinder Road, continuation of construction of the Lemon Avenue
Interchange Project, completion of Area 4 Slurry Seal on the far
west side of DB and slurry seal the full length of Brea Canyon
Road.
PWD/Liu explained that the proposed five-year CIP was created to
be within a reasonable estimate of special fund revenues while
continuing to provide the community with planned improvements.
To achieve this, the document will be a dynamic and evolving
document which will facilitate meeting future capital needs of the
community. There are a myriad of factors that will influence and
affect the planning process as the CIP continues to evolve and
mature. Some of the critical factors include forecast demand
(population grown, traffic volumes, etc.) and expectation of
revenues. With respect to Level of Service Standards, staff will
measure the facility capacity to the actual and potential demand as
well as, desired output levels. Capital projects require evaluation
and any new project to be added to the CIP will require review and
scrutiny. Critical to implementation is a sound plan for use of public
funds, grants, partnering in debt as necessary. Commitment
JUNE 5, 2012 PAGE 12 CITY COUNCIL
requires active involvement and support by the City's appointed
and elected policymakers, management staff, as well as, public and
community interest groups. In conclusion, the City of DB's CIP
reflects staff's commitment to provide the most efficient use of
available resources to the community it serves. To better
safeguard the City's resources, staff recommends that the City
Council approve the multi-year CIP document as submitted.
There was no one present who wished to speak on this item.
C/Herrera moved, ClEverett seconded, to approve the Multi -Year
Capital Improvement Program. Without objection, the motion
carried.
AYES" COUNCILMEMBERS: Everett, Herrera, Tye,
MPT/Tanaka, M/Chang
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAINED: COU NCILMEMBER: None.
8.3 APPROVAL OF PROPOSED PREPAYMENT OF THE SIDE FUND
LIABILITY — CALIFORNIA PUBLIC EMPLOYEES RETIREMENT
SYSTEM (CALPERS).
CMIDeStefano explained that it is staff's recommendation to prepay
the California Public Employees Retirement System's Side Fund
Liability. The City Council asked staff to look at the possibility of
doing things differently. Staff has great resources with all
employees. His department heads and division managers did an
outstanding job in helping to shape the budget the Council just
approved. The City has great resources including FC/Steinbrink
who brought staff the idea of paying off this side fund as a means of
saving the public dollars over several years.
FCISteinbrink explained that the Side Fund Liability in the California
Public Employees Retirement System is the unfunded liability that
existed as of June 30, 2003 before the City was required to join a
risk pool in the Public Employees Retirement System. The side
fund was to be amortized over a 16 -year period so the City of DB
has been paying toward the amortization of that side fund liability
for the past seven years. The liability expected as of June 30, 2012
will be $588,000 which is greater than the amount of the liability at
June 30, 2003 because of the amount of interest that is being
charged to the City by CalPers. The interest rate has been 7.75
percent. CalPers is lowering the rate next year to 7.50 percent but
that rate of interest is still very, very high in today's interest rate
environment. Conservatively, staff expects that the City of DB will
JUNE 5, 2012 PAGE 13 CITY COUNCIL
save at least $140,000 over the next nine years by paying off this
liability at the end of this fiscal year because the employer rate will
go down in 2012-13 and years thereafter by the amortization of that
side fund liability which is nearly two percent of payroll each year.
The savings in the first year alone will be $44,000 and over the
entire nine year period the conservative estimate of savings is at
least $140,000 which is net after considering the amount of interest
that the City would have earned on the $588,000 had the City
continued to leave the money in the bank and continued to make
the payments every two weeks for the next nine years. Therefore,
this item is a request of City Council to approve using $588,000 in
General Fund Reserves in Fiscal Year 2011-2012. If approved, the
payment will be forwarded to CalPers by the end of June 30, 2012.
C/Tye felt this was terrific thinking outside the box that helps DB
build the type of reserves that the City has available. Anyone who
understands the current rate environment knows that when one can
earn a percent or two or utilize those resources to save seven plus
percent the net result is a terrific use of resources.
ClHerrera said she is always in favor of saving money.
There was no one present who wished to speak on this matter.
CITye moved, ClHerrera seconded, to approve prepayment of the
Side Fund Liability to California Public Employees Retirement
System (CalPers). Without objection, the motion carried.
AYES: COUNCIL MEMBERS: Everett, Herrera, Tye,
MPT/Tanaka, MlChang
NOES:/1111 COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAINED: COUNCIL MEMBERS: None
9. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE
REPORTSICOUNCIL MEMBER COMMENTS:
CITye participated in the terrific Ribbon -Cutting Ceremony at DB's newest
park on Washington Street off of Brea Canyon Road. It. is a wonderful
addition to the neighborhood and the event is a fine example of the
community getting together and expressing what they want. The art on
the tiles is a terrific example of the community spirit and believed the
neighborhood was pleased to have that amenity in their neighborhood.
Sunday he joined his colleagues and Senator Huff in celebrating the 22nd
Anniversary of the DB Chinese-American Association. Congratulations to
Tony Torng for putting the event together; congratulations to Wen and Mei
Lien Chang for having the vision for the event and congratulations to new
JUNE 5, 2012 PAGE 14 CITY COUNCIL
President Tony Tai. He was privileged to represent DB with California
Contract Cities Association and a privilege to be chosen to serve as Vice
President for the organization for the next year. This will provide an
opportunity for him to advocate on behalf of DB as a contract city as well
as, advocate for contract cities on all of the important issues facing all
cities. 'He hopes everyone voted and if not, it is not too late because each
vote is very important. It was a delight to see the new City Hall used as a
precinct location.
C/Herrera attended Contract Cities Conference on May 17-20 and had the
opportunity to attend many training sessions provided for Council
Members on working effectively with other people, best uses of technology
as well as, Ethics Training which is mandated for Council Members every
two years. On May 31 -she attended the Board meeting for the San
Gabriel Valley Council of Governments during which the budget was
passed. The adopted budget has $1,833,000 in revenues for the next
fiscal year with $1,814,000 in expenditures leaving a surplus of $18,563.
Also that evening there was a report on the operational and organizational
review committee which is the committee that is looking at ways to staff
the San Gabriel Valley COG. Five options are being considered, one of
which is to make three of the consultants COG employees. The
committee has so far had two meetings. One option would be to sign up
the employees for the PERS system and assuming 15 years past service,
the cost would be hundreds of thousands of dollars and the implication to
the member cities will be severe.. In the adopted budget the Executive
Director has a footnote stating the proposed budget does not reflect
implementation of any of the recommendations from the recently
completed organization and operations revenue by Citygate Associates.
Any changes resulting from implementation of those recommendations
would be presented as revisions to the budget. It is a tight budget and as
she interprets the revisions, would most likely result in a dues increase. At
this time DB pays $23,000 annual dues to the San Gabriel Valley COG
which is the highest amount of dues the City pays to any organization to
which it belongs. As this evolves and reports are released she will keep
the Council and staff apprised since this could potentially have very
severe implications to DB.
C/Everett stated that on May 15 he attended an Economic Summit at the
Diamond Bar Center presented by the Four -Corners Coalition. The first
panel addressed the current state of the economy at local, regional and
state levels and promoted a great deal of interest in national issues. The
subset was the role of the Ontario Airport and what it plays in the region's
economy. John Simpkin presented an update on the City of Industry's
NFL Stadium proposal. That afternoon he attended the PUSD event with
M/Chang presenting certificates to Community Service Award recipients
and presented certificates to ten graduating seniors from DBHS at a Circle
of Friends event. He represented the City at the 43rd Annual Los Angeles
JUNE 5, 2012 PAGE 15 CITY COUNCIL
County Peace Officers Memorial at the Star Center in Whittier which was
synchronized with the National Memorial Day Celebration. He
commented on the life and legacy of Gilbert Pagan who was remembered
during the last Council meeting.
MPT/Tanaka attended the 7t" Annual Relay for Life at Lorbeer Middle
School. The DBHS Leo's and Lions participated as teams. There were
29 teams that participated. Two weeks ago the LA County Fair hosted the
Junior Fair Board Awards and Recognition Dinner at the Fairplex
Conference Center. Members presented their small group projects and
high school. seniors were awarded scholarships. Last Wednesday he was
guest speaker for the 5th Grade Arts Ceremony at Quail Summit
Elementary School. This Thursday was the All School Awards Night at
DBHS. Last Wednesday he attended the Neighborhood Watch meeting at
the Cimarron Oaks Condo units. There have been several burglaries in
the complex and it was the largest attendance he had witnessed for a
Neighborhood Watch meeting with over 50 individuals in attendance.
MPT/Tanaka felt the Neighborhood Watch motor home had seen better
days and asked CMIDeStefano to consider replacing the unit with
participation from the cities of Walnut and Rowland Heights. Thursday
was the 29th Graduation Ceremony at DBHS. He congratulated the 764
graduating seniors. Last Saturday he attended the Washington Park
Ribbon Cutting Ceremony. He thanked the community for participating.
He congratulated the retiring teachers and administrators from PUSD with
special recognition to Shirley Sawyer, a long-time DB resident who retired
from Diamond Point Elementary School. He congratulated the 35
WVUSD retiring personnel and special thank you to teacher Clorinda
Burke from Quail Summit Elementary and Special Education teacher from
South Point, Terry Hulse. Sunday he attended the DB Chinese
Association's 22nd Gala.
M/Chang reminded attendees that they have 10 minutes left to vote if they
have not yet done so. Residents can follow her on Facebook, Twitter and
Foursquare. She attended the Four Corners Economic Summit, DB
Women's Club Scholarship Luncheon, PUSD Community Service awards
events all held on the same day. She attended the Contract Cities
Municipal Seminar and congratulated CITye for being elected Vice
President. She moderated a session entitled "The Lost Art of
Compromise". She attended the International Conference of Shopping
Centers ICSC with CMIDeStefano in an effort to attract retailers to DB.
She attended the Washington Park Dedication which enjoyed an
excellent turnout. She thanked the Community Services and Public
Information staff for putting together a great event. She loved the
sustainability features which included a bio-swale, the LED lighting and
drip irrigation. She attended the DB Chinese Association Annual Dinner.
She has been a board member since 2003 and the organization has
grown tremendously. The Association has a wonderful DB Chinese
JUNE 5, 2012 PAGE 16 CITY COUNCIL
School and attended the graduation ceremonies last Saturday. She is
very, very proud of DB, City staff and her colleagues for putting together
an excellent budget. She reiterated her comments about the budget and
the fact that the State should take note of what DB has accomplished.
ADJOURNMENT: With no further business to conduct, M/Chang
adjourned the Regular City Council Meeting at 7:50 p.m.
�.
L�A
TOM,I�IIYE tRIBBINS, CITY CLERK
The foregoing minutes are hereby approved this 19th day of
2012.
;06-�RNG C ANG, MAY