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HomeMy WebLinkAbout06/07/16 Minutes - Regular MeetingCITY OF DIAMOND BAR CITY COUNCIL STUDY SESSION JUNE 7, 2016 STUDY SESSION: M/Lyons called the Study Session to order at 5:14 p.m. in Room CC -8 of the South Coast Air Quality Management District/Government Center, 21865 Copley Drive, Diamond Bar, CA 91765. Present: Council Members Carol Herrera, Ruth Low, Steve Tye, Mayor Pro Tem Jimmy Lin, and Mayor Nancy Lyons Staff Present: James DeStefano, City Manager; David DeBerry, City Attorney; Ryan McLean, Deputy City Manager; Bob Rose, Community Services Director; David Liu, Public Works Director; Greg Gubman, Community Development Director; Dianna Honeywell, Finance Director; Kimberly Young, Senior Civil Engineer; Grace Lee, Senior Planner; Ken Desforges, IS Director; Isaac Aziz, Network Systems Administrator; Anthony Santos, Senior Management Analyst; Alpha Lopez, Management Analyst; Anthony Jordan, Parks Maintenance Superintendent; Christy Murphey, Recreation Superintendent; Amy Haug, Human Resources Manager; Mandy Jiang, Intern; Marsha Roa, Public Information Manager; Cecilia Arellano, Public Information Coordinator, and Tommye Cribbins, City Clerk. ► INTRODUCTION OF ,DRAFT FISCAL YEAR 2016-17 BUDGET - Discussion and Action. CM/DeStefano explained that FD/Honeywell would briefly summarize some of the items discussed during the last Council budget study session, answer questions that have come forward since that meeting including the listing of professional organizations and walk through special funds, and the capital improvement program and respond to questions on those items. This will be done by exception because overall, the budget is only a couple of percentage points above what it is in the current fiscal year and much of what is being discussed is an extension of a carryover from the current budget program. FD/Honeywell said that she had responded to requests that are captured in the Council handouts including the listing of professional organizations by department, and the full time employee counts for the fiscal year and how much was being spent on those full time employees, which has also been itemized by department. Also, on Page 49 (total of -General Fund) she added the percent change over the 2015-16 projected numbers for the proposed change. M/Lyons wanted to know the dollar increase for full time employees. CM/DeStefano said he does not know the exact figure but it is about 3 percent more which includes the 1.5 increase, $50 per month benefit allotment and other small items. This is really only a "moment in time" JUNE 7, 2016 PAGE 2 CC STUDY SESSION because there are employees coming and going which causes payroll to fluctuate. The one-time money received during the current fiscal year is about $900,000 for the remainder of the Willow Heights project and staff had proposed taking all of that money and supplementing with a small additional amount to refill some of the special revenue funds that have been depleted over the years (Page 2). CM/DeStefano stated that as additional dollars have come in post recessionary years, and as resources negotiated/one-time dollars out of the Willow Heights project have been received, those dollars have been invested over the last couple of years. For example, the list for tonight's discussion includes the General Plan. Staff knew three or so years ago that the City would likely need $800,000 to $1 million to develop that project, so staff created a fund and began to invest in that fund so that the $240,000 recommended from the General Fund gets that fund to a million dollars, which is the amount staff believes will be needed for the General Plan update project. The Council will be considering a consulting contract for the General Plan update at its next meeting or two. Technology is a new fund because the City has aging systems, most expensive of which is likely the Finance System. There are others including recreation, community development systems, traffic, equipment and building, most of which are ongoing but more than merely routine maintenance. Such big-ticket items might include setting aside funds for replacing the air conditioning system at City Hall or a future roof repair at the Diamond Bar Center and so forth. Staff is not recommending adding additional funds to the Parks Fund because there are other resources available for that category at this time. However, each year staff will need to look at these items to determine where additional dollars can be placed to provide project, improvement, and maintenance needs for the City. C/Low asked what the benefit of segregating monies into various funds as opposed to lumping them into the General Fund and expending them as needed. It seems to her that if these monies are placed in specific funds it encourages the City to spend those funds on those specific items. CM/DeStefano said as stated in C/Low's question, he believes it provides a commitment to spending money for the General Plan, for example, over the years the fund is seen growing and being depleted and if committed to a General Plan or upgraded technology, in lieu of pulling a million dollars out of reserves the monies have been set aside. The Council could continue to lump it all into the General Fund but to him that is not setting forth the policy statement that the Council wishes to maintain and invest in these areas and projects such as the General Plan. Money can be taken out of these funds at any time. For example, if the bottom falls out and there is another recession, the General Plan project stops and the money is used for public safety or something else of primary importance. These are not JUNE 7, 2016 PAGE 3 CC STUDY SESSION restricted dollars and in fact, during the five major recessionary years some of these funds were being depleted for maintenance in order to save other dollars that were very limited and precious in other areas. C/Low asked on what page she could find the balance of funds that have been set aside for the five funds. FD/Honeywell referred the Council to Page 47 and explained the breakdown. M/Lyons felt more money should be set aside for parks maintenance as well as, the drainage problems in the City. CM/DeStefano said those are policy choices and it is well within the City Council's purview to move monies anywhere it wishes to do so. Under those circumstances, however, he would ask that the Council provide more advance time to allow staff to provide a more thoughtful presentation on what those dollars are used for and what the issues and opportunities might be. In short, staff is asking the City Council to adopt the new budget tonight; however, it can be modified two weeks from now and as many times as the Council wishes throughout the year: So staff could look at the impacts such as if $200,000 was arbitrarily taken and put into the seepage mitigation project. Or, that can be done tonight or a few weeks from now with a response in terms of where that money could come from and what it would mean. Currently, parks maintenance is being transitioned from Community Services to Public Works and he expects that through that transition there will be different areas that might need maintenance, and staff is likely to come back to the City Council in the next few months anyway with additional thoughts about the structure of maintenance, extent of resources, and most likely a refined "battle plan" for what, where, and how often the City does it. While the City has substantial reserves and while CM/DeStefano would like for the Council to be extremely prudent with those funds because there is always a question about where and when more will come from, there are reserves the Council can do things with. So, for example, if the Council wanted to keep the profile as recommended and take $200,000 out of reserves that can be done at any time. The Council is leading the policy direction on how to best use the public's resources. C/Herrera said she believes this type of fund breakdown says that the Council values these different projects and is setting aside money when possible in order to have the resources to follow through when the time comes. M/Lyons said she agrees with C/Herrera but wanted to have the discussion. JUNE 7, 2016 PAGE 4 CC STUDY SESSION C/Low still questioned why the funds should not be combined rather than segregated. CM/DeStefano said he believed the Council was better served to have the funds segregated because it creates a very transparent document. And while the Council is making the policy choices on where it puts the people's money, it reflects a commitment that this is where the Council wants to invest and this is being conveyed to the public which can see that the Council is setting aside substantial dollars for law enforcement, traffic mitigation, parks maintenance and whatever else it might be. C/Tye felt it was important for people who are concerned about how the City spends its money to be able to see that money has been set aside for technology improvements, etc. rather than saying "don't worry about it — we'll pull it out of the General Fund when we need it." To him it is the difference in having a savings account with one lump sum or setting aside savings for vacation, new tires, auto, etc. FD/Honeywell continued responding to the special fund breakdowns. Estimated resources are about $26.1 million and the property tax revenue, which is the City's largest revenue source, is increasing about 4 percent. There is a slight dip in the sales tax revenue, but a lot of that is due to one- time adjustments and payments this fiscal year. Although it looks low, it is still a very healthy number. Something that is always in the forefront is the City's dependence on fuel for sales tax revenue in the City, and Council has been doing a lot of work on the Economic Development side to try and diversify the sales tax base. Staff looks forward to that continued pursuit this next fiscal year. Staff is also proposing that the City sell $600,000 of its Prop A specific purpose funds that are set to expire, in exchange for $450,000 of General Fund money that can be used for anything. In fact, it appears there is interest in purchasing these funds and if Council decides to move forward staff will be pursuing that interest. Appropriations are $25.8 million this year and part of that is the Cost of Living and Benefit Adjustments for employees. Staff is proposing a 1.5% Cost of Living adjustment based on CPI of 1.34 percent, and a $50 increase to the Benefit Allotment. Also proposed in this budget is a substantial reorganization of the City's operations. After reviewing the matter and determining efficiencies of scale there will be a realignment of all park and facilities maintenance and capital improvement duties from Community Services to Public Works, which will be under the direct supervision of PWD/Liu. This structure is typical in most cities and with that, staff is recommending that the salary range for the Public Works Director position be adjusted to 58E. Another change will be the scope of Community Services to highlight a focus on the parks and recreation component. Thus, it is proposed that the Community Services Department be renamed Parks and Recreation, and that as a result in the change in JUNE 7, 2016 PAGE 5 CC STUDY SESSION responsibilities the Community Services Director position be retitled Parks and Recreation Director and the salary range be adjusted to 51E. Since the maintenance function will be centralized in one department, staff wants the maintenance worker series to be consistent throughout the department as Senior Maintenance Worker with the salary range remaining unchanged. The Deputy City Manager will be reclassified to Assistant City Manager due to additional duties he will assume during the transition of the realigned Parks and Recreation Department. The salary range for the ACM position will be adjusted from 60E to 59E to more accurately reflect the labor market. It is also proposed that the Assistant to the City Manager be fully funded in Fiscal Year 2016-17 in order to ensure proper oversight of all the programs within the scope of the administration portion of the City. Because of the additional duties Ryan McLean will assume as the Assistant City Manager, the risk management portion of his duties will transition to Human Resources with the Human Resources Manager classification being changed to Human Resources and Risk Manager, and the salary range will be adjusted to 44E. All of the proposed changes result in an increase of $110,000. Of this amount, $83,000 will impact the General Fund. This is the lowest increase in the last five years because of the savings realized from the realignment. C/ -Tye asked why the Assistant City Manager (ACM) who is assuming additional responsibilities goes from 60E to 59E. FD/Honeywell explained that in his position as Deputy City Manager he is at a salary range of 52E and the 59E is a significant increase for that position. C/Low asked if each classification has steps. CM/DeStefano responded "yes." The last agenda item in tonight's packet includes the compensation plan by position and includes ranges and steps. C/Low asked if for budgeting purposes a salary is budgeted at the top step or at the current step expected during that particular year. FD/Honeywell said she looks at each position and person individually and where they are in the pay scale. If it is a vacant position she usually budgets it at step D for an average. CM/DeStefano said that if staff anticipates that an employee will receive an evaluation and be eligible for a meritorious increase, staff will budget that in. However, Diamond Bar is fortunate to have a lot of very good employees, most of whom have been with the City for a number of years. So, 88 percent of the City's full time employees are already at the top step JUNE 7, 2016 PAGE 6 CC STUDY SESSION of their positions which has a lot to do with their longevity and feeds into the other factor that the Council has blessed him to commence which is looking at a Performance Management Program that staff will bring back to the Council later in this calendar year to help continue to support those employees that do extremely well because the very best performers and the worst performers are all earning the same 1.5 percent CPI and there is a need to find a way to help keep the highest performers motivated with some sort of performance plan. MPT/Lin asked if Diamond Bar's salary ranges were comparable to other cities in the area. CM/DeStefano responded "yes." Overall the City remains very competitive and through the recessionary period Diamond Bar was not in a position where it had to cut staff, hours, or salaries, and the City was able to make it through where many cities were unable to survive economically. The totality of these things including the fact that it is a great place to work has made Diamond Bar a highly sought after City in which to be employed, which starts with the City Council and the atmosphere the Council creates. FD/Honeywell continued that Special Revenue Funds must be used for special projects and most are used for CIP projects — streets, parks, traffic mitigation projects (Page 47 Summary — details begin on Page 235). The Capital Improvement Project fund (Page 287) is a summary of the projects proposed for the next Fiscal Year with 80-90 percent being carryover projects from this year. Some of the new projects include public works projects, trails projects, and Diamond Bar Center improvement projects. On Page 289 is a detailed description of each of the projects found on the list. MPT/Lin asked the amount of the franchise fees the City receives. FD/Honeywell said it varies by vendor. The City typically receives about $1.5 million per year. CM/DeStefano referred MPT/Lin to Page 53 and said the numbers change slightly. By example, the City is getting ready to renegotiate its waste hauler contract and a couple of years from now those numbers are likely to go up. The far right hand column on Page 53 adds up to $1,465,000, which is the franchise tax total. MPT/Lin asked about the safety in -lieu fees. PWD/Liu said that item was for the Lemon Avenue project. JUNE 7, 2016 PAGE 7 CC STUDY SESSION CM/DeStefano referred MPT/Lin to Page 287, halfway down the Page to Transportation Infrastructure Improvements to see the $7,457,000 under Map 21. MPT/Lin referred to Page 67 and the Legislative item for Professional Services which he said had jumped up about $100,000. FD/Honeywell referred him to Page 78 for the detail and stated that the big jump is due to the Ballot Measure Consultant item which is a carryover item from the current year. MPT/Lin asked about Page 81, Item 42, Memberships and dues, which have dropped from $48,000 to $13,000. FD/Honeywell said that items were moved from "General Government" which was a catchall account to various departments that specifically manage those memberships and dues. MPT/Lin asked why on Page 88 the salary in Human Resources jumped about $90,000 for one more position. FD/Honeywell reiterated that the new Performance Pay Program has been added to that department. MPT/Lin asked if that figure was annual or one-time. CM/DeStefano said he would like it to be annual, which is up to the Council, and depending on how the City is doing financially it can be funded with more or less each year just as the Council considers any other compensation request for the employees. M/Lyons asked if anyone wished to discuss the agenda items regarding adoption of the budget. FD/Honeywell explained Items 8.1 a) b) c) and d) which are designed to comply with laws regarding the proposed budget. For example, the spending limit is $42 million and factors that factor into this budget amount to about $32 million. Last year staff did a very comprehensive overhaul of the investment policy (Statement of Investment) and basically, this year it is the same with the exception of one new asset class allowed by the California Government Code. She has included the Supra National which is a conglomeration of investments but has not decided whether she will invest in this vehicle because it is difficult to get a good return on the City's idle cash and the City is limited by the code of what the City can invest in by percentage and she is pretty much at the limit of most of the current vehicles so it would offer another vehicle in case it became necessary if it were adopted. JUNE 7, 2016 PAGE 8 CC STUDY SESSION CM/DeStefano said that cities are precluded from investing in the types of vehicles folks can invest their personal or business money in, so yield is not the City's greatest priority. Arguably, it should be, but Diamond Bar does the very best it can and it has been substantially better in the past four and one-half years with FD/Honeywell at the helm. The priority is on the security/liquidity side, which is well above the yield that the City may accrue. The last piece of the agenda was the request through a Resolution to establish the new compensation and benefit plan for employees as well as, the personnel changes for the next Fiscal Year. Council Members asked if all four resolutions could be passed with one vote. CM/DeStefano responded "yes" unless someone wished to set one or more of the resolutions aside for further deliberation. CA/DeBerry said that it might be cleaner to adopt each resolution separately in case of disagreement. ► INTRODUCTION TO COMPREHENSIVE GENERAL PLAN UPDATE — For Information Only. CDD/Gubman provided an introduction to the Comprehensive General Plan Update by providing an overview of the process. He stated that there will also be an introduction of the consultant team whose contract the Council will be asked to approve at the next City Council meeting. State law requires every city and county to have a General Plan. Its purpose is to guide long-term growth so that it occurs in an orderly manner. The General Plan needs to be comprehensive, long range, internally consistent and its Statement of Policy is to be used to guide public decision-making on a variety of matters including Land Use, Capital Improvements, and Resource Conservation. There are some descriptions that like to compare the General Plan to being a "blueprint" to guide future planning decisions or to serve as the city's constitution. The General Plan needs to be updated from time to time to maintain its relevance and although no timeframe is set for updating a General Plan except for the Housing Element, a 20 -year cycle is typically the rule of thumb. Because Diamond Bar's General Plan was adopted in 1995 the City has reached an appropriate time to revisit the guiding vision and policy statements expressed in the original document. The Scope of Work includes three major phases to get through the process with eight tasks under those three phases and approximately 50 sub -tasks under the eight tasks. The first phase is visioning outreach and background research where outreach tools are used to gather the information needed to gain the initial policy direction. Phase I will also include the formation of the Citizens General Plan Advisory Committee (GPAC) and should take about six months. JUNE 7, 2016 PAGE 9 CC STUDY SESSION Phase II, Options and Strategies, is when the City will formulate three plans illustrating alternative land use and circulation plans. Staff will focus on opportunity sites identified during Phase I. The financial feasibility infrastructure and other implications of these alternatives will be tested and the findings will be presented to the GPAC. There will be a community workshop and a joint City Council/Planning Commission Study Session to thoroughly discuss those alternatives. And finally, a preferred Land Use Plan will be refined and serve as the basis for the Draft General Plan. Phase II will take about 10 months to complete. Phase III is the Draft General Plan and EIR documents which will be written, circulated and refined in this phase after which the City will embark on a final series of Adoption Hearings. Drafting of these large documents will take about 16 months. A future Phase IV would include the Comprehensive Update to the City's Zoning Code in order to implement the new General Plan. After adoption of the General Plan, this effort will take about nine (9) months to complete. At this point, staff is not prepared to finalize the consultant selection or specify when this phase will take place. The community outreach GPAC will consist of a representative group of community members selected by the City Council. Staff and the consultant will work with the City Council to determine the selection process. Staff and the consultant team will establish an ongoing review and check in relationship with the GPAC to work through technical and political issues with the objective of ensuring some higher-level buy in before presenting work products to the Planning Commission and City Council. CM/DeStefano stated that the Council will be very engaged in the GPAC creation and management process. Having gone through this in the early 90's, he knows that Council's selection of the GPAC members is critical to the process. In other words, do not select someone that you just met. Council needs to think about this as a Task Force similar to the duties and responsibilities of Planning Commissioners, Traffic Commissioners, and Parks Commissioners and give the kind of weight to those selection processes when appointing people as GPAC members, because they are critical to provide the Council and the Planning Commission with the best advice possible for the decisions the Council and Planning Commission will be asked to make. These should be people that Council Members are very comfortable with and the maximum number should probably be about 15 which is close to what staff would recommend. CDD/Gubman said there were several GPAC's and a couple of false starts in the 90's. One GPAC consisted of 30 members and another 38 members. He explained that staff would kick things off with stakeholder interviews and work with the consultants to identify key stakeholders in the JUNE 7, 2016 PAGE 10 CC STUDY SESSION community. Staff is looking at about 16 GPAC members with one-on-one or small group meetings and plans to interview about 30 business people, Commissioners, Council Members, major commercial property owners, and other stakeholders. M/Lyons asked if staff would let the Council know who they believe are major stakeholders and let the Council suggest others as well. CDD/Gubman responded "yes." C/Tye said that the City has a General Plan and all of these outreaches and interviews leads to a variety of different input. He stated that during consideration of Site D about 70 people were drawing plans and then they came to the Council complaining that their plan was not considered. Why does the City go through this and why is the City not merely refining the existing General Plan? CDD/Gubman explained that the General Plan is being refined to a large extent. However, it must be kept relevant and there are some mandates that must be incorporated such as climate action planning, complete streets requirements, and sustainable community strategies, all of which need to be added to the document. There may also be existing goals that may no longer need the consensus of the community for the City to continue pursuing. The public participation process is a required part of the overall General Plan process, which is where it gets messy because citizen participation will obviously prove to be a difficult quest to reach consensus. Staff knows that and part of the consultant selection includes vetting of public outreach so that staff has confidence that they will be able to maintain that type of control over the conversation to prevent that type of discord. CDD/Gubman responded to MPT/Lin that there is an outreach firm in Chino Hills (Arellano Associates) and the project manager for Arellano is a Diamond Bar resident, which provides additional local connection. CM/DeStefano said that with all that needs to be done staff believes it will take 2-3 years. Staff does not know how this will flow. Staff spent an enormous amount of time in the early years walking through it and the result was that the community wanted what they saw that day — their future was today and that may wind up being the same conclusion this time around. There is Tres Hermanos to talk about, Tonner Canyon to talk about and whatever intensification with everything else. There are not as many things to talk about but it is still hugely important including the new requirements outlined by CDD/Gubman. Will it really be a million dollars? Staff does not know at this point but wants to budget for it now. Will it really take three years? Hopefully not, but it may take four. The contract amount is set because it is based on specific tasks, work products, etc. JUNE 7, 2016 PAGE 11 CC STUDY SESSION CDD/Gubman said that the proposals received this year are roughly in line with what the going rate was a couple of years ago when the survey was done. The firm that staff will be recommending is Dyett & Bhatia based in San Francisco. They were on the short list of excellent firms that staff sent the RFP to and their proposal, interview and list of sub -consultants fortified staff's confidence that this firm would be the right fit for Diamond Bar. Public Comments: None ADJOURNMENT: With no further business to come before the City Council, M/Lyons adjourned the Study Session at 6:28 p.m. Tommie Cribbins, City Clerk The foregoing minutes are hereby approved thisg t Aday of 2016. Nancy Ly 'ns, M yor MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR JUNE 7, 2016 CLOSED SESSION: 5:00 P.M., Room CC -8 Public Comments on Closed Session Agenda: None. ► Government Code Section 54956.9 —Anticipated Litigation (1 Case). Recessed Closed Session: STUDY SESSION: 5:12 p.m. 5:14 p.m., Room CC -8 ► Introduction and Discussion of Draft Fiscal Year 2016-17 Budget — Discussion and Action ► Introduction to Comprehensive General Plan Update — for Information only. Public Comments: None Recessed Study Session: 6:31 p.m. CALL TO ORDER: Mayor Lyons called the Regular City Council meeting to order at 6:38 p.m. in the South Coast Air Quality Management District/Government Center Auditorium, 21865 Copley Drive, Diamond Bar, CA. CM/DeStefano reported that tonight's Closed Session involved an anticipated litigation matter and there were no reportable actions. CM/DeStefano stated that the Study Session included discussions regarding the 2016- 17 Fiscal Year budget that is being brought forward this evening for the Council's action. The upcoming Comprehensive General Plan update process was also discussed, a project that is likely to continue over the next three years with substantial community involvement. Council was provided with a brief overview of a couple of major components of the General Plan. The last time the General Plan was done was in 1995 and it is appropriate to review the document at this point. Staff will be asking the City Council to approve a consultant at its next meeting or the first meeting in July. PLEDGE OF ALLEGIANCE: Mayor Lyons led the Pledge of Allegiance. INVOCATION: Reverend Dr. Jeanne Faveau-Sorvillo, Diamond Bar United Church of Christ provided the invocation. ROLL CALL: Council Members Herrera, Low, Tye, Mayor Pro Tem Lin and Mayor Lyons. Staff Present: James DeStefano, City Manager; David DeBerry, City Attorney; Ryan McLean, Deputy City Manager; Ken Desforges, IT Director; David Liu, Public Works Director; Bob Rose, Community Services Director; Dianna Honeywell, JUNE 7, 2016 PAGE 2 CITY COUNCIL Finance Director; Greg Gubman, Community Development Director; Amy Haug, Human Resources Manager; Kimberly Young, Senior Civil Engineer; Grace Lee, Senior Planner; Isaac Aziz, Network Systems Administrator; Anthony Santos, Senior Management Analyst; Alpha Lopez, Management Analyst; Anthony Jordan, Parks Maintenance Superintendent; Christy Murphey, Recreation Superintendent; Mandy Jiang, Intern; Cecilia Arellano, Public Information Coordinator, and Tommye Cribbins, City Clerk. APPROVAL OF AGENDA: As Presented. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Presentation by Mayor and City Council of City Tile to Isaac Aziz upon his leaving to become the IT Manager for the City of Aliso Viejo. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: CM/DeStefano stated that the City incorporated in 1989 and learned from a few cities that did so prior to Diamond Bar at about that timeframe. There was a group of cities that incorporated within the five -ten years thereafter who all came to Diamond Bar to try to learn how it was done, what was successful, and in particular, spoke with many staff members about the contract cities format and the use of contract services for a variety of municipal needs. One of those cities was Aliso Viejo and it is a great city within Orange County and may be one of the newest if not the newest city. Diamond Bar is proud to have "parented" a few folks in Aliso Viejo including Gina Therani, Finance Department, who became and is to this day the only Finance Director for that city. Aliso Viejo has had great leadership and two and one-half years ago Dave Doyle moved from Diamond Bar to that city as its City Manager. Speaking on behalf of the staff, it has been a great run with Isaac. Diamond Bar has been fortunate to have him help carry the City through all of its needs over the past 10 years as he has been part of the brains behind all of the infrastructure inside City Hall and beyond. Isaac has done great things for Diamond Bar and he will continue to do very great things as the IT Manager working for a great guy in a very well managed city. Isaac is wished the very, very best. CM/DeStefano reported that Diamond Canyon Park is a neighborhood park that meanders somewhat through the Lennar project but lies mostly at the corner of Diamond Bar Boulevard and Brea Canyon Road. The park consists of about four and one-half acres with an active area of about two and one-half acres. The park will eventually connect to trails. Currently it has been designed and is being constructed with a 9 -car plus handicap parking lot, two tot -lots, one for children up to five years of age and the other for children up to 12 years of age. There is an upper and lower portion of the park that will be separated by a bridge over the flood control channel. The placement of the bridge is critical; the flood control channel is owned and managed by LA County and the developer has had issues getting the permitting process completed. The project is, however coming to a JUNE 7, 2016 PAGE 3 CITY COUNCIL conclusion and there will be a bridge over the Brea Canyon Flood Control channel. Portions of the park contain picnic areas, a trailhead, exercise equipment stations, drinking fountains, park benches, etc., and in addition, there is a garden interpretive area. There is centralized irrigation which is remotely connected back to City Hall. Adjacent to the park on Diamond Bar Boulevard is a new major City entry monument sign that is ready to be built at the intersection. As a result of some of the complications and progress of the project there will be an approximate 120 plant -establishment period/warranty maintenance period and wait time for the bridge to be installed, which means that it is likely the park will not open until about December 2016. There is a possibility it could open earlier if the developer can get the permits from the County for the bridge and, if the plant establishment period is reduced from 120 days to roughly 90 days. Finally, there is a utility pole in the way that has presented an impediment to the new right -turn lane from Brea Canyon Road to Diamond Bar Boulevard that will need to be removed. M/Lyons hoped that the plants would be planted without regard to the bridge installation so that they would have sufficient time to get through the establishment period. She asked staff to explain the garden interpretive area. CSD/Rose stated that the demonstration garden will be an example for the community, to show residents what types of plants can be planted in different levels of irrigation and water, in drought tolerant areas as well as, very wet areas. There will be interpretive panels that will describe the plant materials and will have a map showing what types of plants and irrigation are needed for that particular type of planting area. There will be five different types of hydro zones. There are decomposed granite trails and benches throughout the area. C/Tye asked when the signs that say Brea Canyon Drive would be taken care of CM/DeStefano said the signs had been ordered but had not yet arrived. 3. PUBLIC COMMENTS: Pui-Ching Ho, Diamond Bar Library Librarian, announced that the library will have a variety of programs throughout the summer months including a Summer Reading Kickoff with Arty Loon on Saturday, June 11 at 3:00 p.m. for children and their families. Tuesday, June 14 at 2:00 p.m. teens can build a Lemon Clock; a fun comedy magic show on Thursday, June 16 at 2:00 p.m.; and a Paper Airplane Race on Saturday, June 18 at 2:00 p.m. presented by the Friends of the Library Teen Advisory Board. 4. RESPONSE TO PUBLIC COMMENTS: None JUNE 7, 2016 PAGE 4 CITY COUNCIL 5. SCHEDULE OF FUTURE EVENTS: 5.1 Traffic and Transportation Commission Meeting — June 9, 2016 — 7:00 p.m., Windmill Community Room, 21810 Copley Drive. 5.2 Planning Commission Meeting — June 14, 2016 — 7:00 p.m., Windmill Community Room, 21810 Copley Drive. 5.3 Concerts in the Park — June 15, 2016 6:30 p.m. to 8:00 p.m. The Answer (Classic Rock), Sycamore Canyon Park, 22930 Golden Springs Drive. 5.4 Movies Under the Stars — Minions — June 15, 2016 — Immediately following the Concert, Sycamore Canyon Park, 22930 Golden Springs Drive. 5.5 City Council Meeting — June 21, 2016 — 6:30 p.m., AQMD/Government Center Auditorium, 21865 Copley Drive. 6. CONSENT CALENDAR: C/Herrera moved, C/Low seconded, to approve the Consent Calendar with the exception of Item 6.10 pulled by MPT/Lin for separate consideration. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Herrera Low, Tye, MPT/Lin, M/Lyons NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 6.1 WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS AND ADOPT THE CONSENT CALENDAR. 6.2 APPROVED CITY COUNCIL MINUTES: 6.2.1 Study Session of May 17, 2016 — as presented. 6.2.2 Regular Meeting of May 17, 2016 — as presented. 6.3 RECEIVED AND FILED TRAFFIC AND TRANSPORTATION COMMISSION MINUTES: 6.3.1 Regular Meeting of January 14, 2016. 6.3.2 Regular Meeting of March 10, 2016. 6.3.3 Regular Meeting of April 14, 2016. 6.4 RECEIVED AND FILED PARKS AND RECREATION COMMISSION MINUTES — Regular Meeting of April 28, 2016. 6.5 RECEIVED AND FILED PLANNING COMMISSION MINUTES: 6.5.1 Regular Meeting of March 8, 2016. 6.5.2 Regular Meeting of April 26, 2016. JUNE 7, 2016 PAGE 5 CITY COUNCIL 6.6 RATIFIED CHECK REGISTER — dated May 12, 2016 through June 2, 2016 totaling $1,565,222.41. 6.7 APPROVED TREASURER'S STATEMENT — Month of April 2016. 6.8 APPROVED SUPPLEMENTAL APPROPRIATIONS OF $300,727 INTO THE FISCAL YEAR 2015-16 BUILDING FEES REVENUE ACCOUNT AND $118,000 INTO THE FISCAL YEAR 2015-16 BUILDING AND SAFETY CONTRACT SERVICES EXPENDITURE ACCOUNT TO FUND THE PAYMENT OF RKA CONSULTING SERVICES INVOICES. 6.9 APPROVED AMENDMENT NO. 2 TO THE AGREEMENT WITH TENNIS ANYONE TO EXTEND THE CONTRACT PERIOD TO JULY 1, 2016 THROUGH JUNE 30, 2017 IN THE AMOUNT OF $70,000. 6.11 AWARDED CONTRACT TO ACCELA, INC., IN THE AMOUNT OF $30,456 ANNUALLY FOR LEGISLATIVE MANAGEMENT SOFTWARE SERVICES AND AUTHORIZED THE CITY MANAGER TO EXECUTE FUTURE CONTRACT RENEWALS. 6.12 APPROVED AMENDMENT NO. 6 TO THE CONTRACT WITH VALLEYCREST LANDSCAPE MAINTENANCE TO EXTEND THE TERM OF THE CONTRACT FROM JULY 1, 2016 THROUGH SEPTEMBER 30, 2016 TO PROVIDE LANDSCAPE MAINTENANCE SERVICES AT NINE (9) CITY PARKS, THE GROUNDS OF THE DIAMOND BAR CENTER, THE FOOTBALL FIELD AND SLOPE AT LORBEER MIDDLE SCHOOL, AND THE MESA TRAIL/TRAILHEAD AT SYCAMORE CANYON PARK, IN THE AMOUNT OF $93,485, AND AS -NEEDED WORK IN THE AMOUNT OF $9,750, FOR A TOTAL AUTHORIZATION NOT -TO - EXCEED $103,235 FOR THE FISCAL YEAR 2016-17; AND, ACCEPTED THE CHANGE OF THE COMPANY'S NAME FROM VALLEYCREST TO BRIGHTVIEW LANDSCAPE SERVICES; INC. MATTERS WITHDRAWN FROM CONSENT CALENDAR: 6.10 AWARD CONTRACT TO HILTON FARNKOPF & HOBSON, LLC (HF&H) IN THE NOT -TO -EXCEED AMOUNT OF $218,000 FOR AS -NEEDED SOLID WASTE AND RECYCLING CONSULTING SERVICES. MPT/Lin said it seemed to him that many of the items contained in the scope of work could be performed by staff. $218,000 is a lot of money for someone to help the City find a solid waste hauler. Also, it was stated that staff anticipated the City would be fully reimbursed for the consulting costs and he did not quite understand that statement. CM/DeStefano explained that when Diamond Bar incorporated there were 13 waste haulers. A few years after incorporation, the City went through JUNE 7, 2016 PAGE 6 CITY COUNCIL a competitive process and awarded contracts for the residential pickup to Waste Management and the commercial/industrial pickup to Valley Vista Services. The City had an excellent relationship with those two haulers and those contracts were ready to expire in about 2008. At that time, based upon the outstanding services provided by both firms, the then City Council offered those two firms an exclusive negotiating period in which to develop a new contract. And at that time there were a variety of state mandates and local needs involved in dealing with solid waste refuse removal from the community. Diamond Bar also entered into the first contracts with Valley Vista and Waste Management without any sort of franchise fee. There was a discussion about franchise fees for exclusive contracts during tonight's Study Session. The City grew out of the exclusive 2008 negotiations with what amounted to contract extensions with those two excellent providers, franchise fees, a variety of necessary needs as required by the state and local government and in order to be successful, because the City had not negotiated waste hauler contracts, back in 2008 the City employed HF&H. As a result of the negotiation process and an early request from the City of Diamond Bar, resulted in the waste haulers paying for HF&H's services at that time, which again, was ultimately part of the successful negotiations and contract award. The two waste haulers paid their proportional share of the fees that HF&H charged which was the contract that the City had with HF&H. The reason the City chose HF&H at that time and the reasons staff is recommending them to the Council this evening is that first, HF&H levels the playing field for Diamond Bar. The City has excellent City staff members, none of whom are experienced at waste hauler negotiations, the nuances of the contracts, and the details of all of the parameters. The City does this only every eight or ten years or so. The waste haulers do it many times a year with many communities for the many service providers in California and for other cities, counties school districts, etc. A firm like HF&H is well- known and is considered to be the best in its field and currently serves more than a 100 jurisdictions and has served 360 jurisdictions in recent years in California. The second firm the City received a proposal from also provides contract services but to a much lesser degree. Their services, are equal in some areas but not in all areas and they have a history of serving only about 60 communities. HF&H helps staff with the expertise needed to successfully negotiate a contract that would then be recommended for Council's consideration and award. Based upon Council direction to staff when this subject was discussed at a recent Council meeting, the City is gearing up for waste hauler negotiations as the current contracts are getting ready to expire and the Council directed staff to allow an exclusive negotiating period with the two existing haulers. The fees proposed by HF&H include two contract components. The first part of the contract proposal is Phase A which is basically the exclusive negotiating period. CM/DeStefano said he anticipates the City will end up with a contract as a result of the six-month exclusive negotiating period. Should that be the case, HF&F would charge the City about $99,000 and JUNE 7, 2016 PAGE 7 CITY COUNCIL the other company would have charged the City about $93,500, an appreciable difference. If negotiations are not successful through the exclusive negotiating period, it is opened up to competitive bidding with all waste haulers who have an interest in providing services to Diamond Bar which would get much more difficult, and the City would then need expert services even more through that phase. The total of the exclusive and competitive bidding period for HF&H is about $218,000 which is higher than the $178,000 proposed by the other company; however, he does not believe the entire amount of $218,000 will be needed. But if it is required, he would strongly recommend that the Council provide staff with the best resources available which is HF&H to then help the City Council make the policy choices as to what the Council wants to see in that contract, what rates the Council wishes to pay, and how much the Council wishes to have the hauler pay with all of the details necessary to make an informed choice for the community. He hopes to improve upon the existing franchise fee that the City has received in the ,past as well as, other maintenance fees, etc. from trucks on the City roadways, and ensure that the City is engaged and providing all of the regulatory requirements and all appropriate environmental requirements that the City wishes to utilize going forward. Staff is recommending HF&H because staff believes they provide the City with the best services to perform the work the City needs. MPT/Lin asked if the franchise fees and other fees would be used to reimburse the City for the HF&H fee. CM/DeStefano responded "no" the fees would be in addition to the reimbursement of the HF&H fee which will be part of the negotiated contract including repayment of the consulting services fees and any other legal fees incurred during the process of a successfully negotiated contract. C/Tye said that 13 years ago there could have been 13 different trash haulers on his cul-de-sac. CM/DeStefano said that C/Tye was correct. It was a confusing time. Some of the haulers were properly permitted while many were not and it was extraordinarily difficult situation for the City to deal with when Diamond Bar became a City. As soon as other issues were resolved, attention turned to the waste hauler issue and the number was reduced to the two the City enjoys to this day. M/Lyons said she believes this is one of the larger contracts the City has in terms of money. CM/DeStefano said that the City does not actually pay the waste hauler, the customers (residents and commercial businesses) pay the waste JUNE 7, 2016 PAGE 8 CITY COUNCIL haulers. The City Council is granting a franchise for the pickup of waste to a certain number of haulers and they bill the customer and receive the revenue and the City receives a franchise fee. Diamond Bar is not in the business of preparing invoices, it is all done by the waste hauler. M/Lyons said she understands that but if all of the fees were added up for residences and businesses, it would be a very large sum of money. CM/DeStefano agreed. M/Lyons felt it was very important to every resident and business that the City negotiate the best rate possible, and believed that even if the City has to spend the entire $218,000 there was a chance the City would get it back. HF&H has a lot of experience and knows what other cities in similar circumstances are paying which will help Diamond Bar get a good rate. In other words, HF&H has abilities and knowledge that city staffs do not have. CM/DeStefano said that the City needs the consultant because City staff does not have that level of expertise and it goes way beyond any legal services the City may need. MPT/Lin moved, C/Tye seconded, to approve Item 6.10 to Award a Contract to Hilton Farnkopf & Hobson, LLC (HF&H) in the Not -To -Exceed Amount of $218,000 for As -Needed Solid Waste and Recycling Consulting Services. Motion carried by the following Roll Call Vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: 7. PUBLIC HEARINGS: None. 8. COUNCIL CONSIDERATION: Herrera, Low, Tye, MPT/Lin, M/Lyons None None 8.1 (a) ADOPT RESOLUTION NO. 2016-17: APPROVING AND ADOPTING A BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2016 AND ENDING JUNE 30, 2017 INCLUDING MAINTENANCE AND OPERATIONS, SPECIAL FUNDS AND CAPITAL IMPROVEMENTS; AND, APPROPRIATING FUNDS FOR ACCOUNTS, DEPARTMENTS, DIVISIONS, OBJECTS AND PURPOSES THEREIN SET FORTH. JUNE 7, 2016 PAGE 9 CITY COUNCIL (b) ADOPT RESOLUTION NO, 2016-18: SETTING THE PROPOSITION 4 (GANN) APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016-17 IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE GOVERNMENT CODE. (c) ADOPT RESOLUTION NO. 2016-19: ADOPTING THE STATEMENT OF INVESTMENT. (d) ADOPT RESOLUTION NO. 2016-20: ESTABLISHING A COMPENSATION PLAN INCORPORATING SALARY RANGES AND FRINGE BENEFITS FOR BENEFITTED CLASSIFICATIONS OF EMPLOYMENT EFFECTIVE JUNE 25, 2016 AND AMENDING RESOLUTION NO. 2015-43. FD/Honeywell provided staff's report stating that the Fiscal Year 2016-17 Budget is balanced and increases General Fund reserves by an estimated $355,000. The budget, as proposed, incorporates modest yet realistic growth in both revenue and expenditures over the current year's projected numbers while maintaining excellent service levels to the community. The City has received the final development fees related to the Willow Heights housing project which amounted to nearly $900,000 and it is proposed that this one-time money be reinvested into funds that have been depleted over time. This money would be transferred during the current Fiscal Year to the General Plan Fund, the Traffic Mitigation Fund, the Equipment Maintenance and Replacement Fund, the Building Maintenance Fund and the newly created Technology Reserve Fund. After this transfer is made it is anticipated that the City will add nearly $1.5 million to its General Fund Reserves balance at June 30, 2016, and at the end of the current Fiscal Year the General Fund Reserve Balance will be $18.8 million (72%) of General Fund Appropriations. The approach taken this year when developing the Fiscal Year 2016-17 budget was more of a global approach that started with the adoption of the Council Goals in April, as the goals were revamped a bit to be more measurable and easier to report the progress and status of projects. Along the line of taking a more global look, the City Manager looked at how the organization delivered services to the nearly 60,000 residents in Diamond Bar, and it was determined that a consolidation of the maintenance functions would be cost -beneficial and provide favorable service delivery to the residents. The General Fund estimated resource is $26.1 million for Fiscal Year 2016-17. Although this level is a bit lower than the current Fiscal Year, it is explained by the high level of one-time money received during the current Fiscal Year. Property tax and related property tax in -lieu of the LF are two of the highest revenue sources to the City, and they are projected to grow about four percent during Fiscal Year 2016-17. Sales tax is JUNE 7, 2016 PAGE 10 CITY COUNCIL projected to be a bit lower in Fiscal Year 2016-17 due to one-time adjustments in FY 2015-16 along with declining gas prices. There has been an expanded effort by the City Council and City staff to diversify the sales tax base of the City by offering more options for residents to shop and dine in Diamond Bar. Once again, staff is recommending sale of excess and expiring Proposition A funds. By selling these funds, the City will exchange them for less -restricted General Fund money that can be used for any use in the City. Every effort has been made to keep appropriations at or near the same level as the current Fiscal Year estimates. The General Fund Estimated Appropriations are $25.8 million. Factored into the proposed budget is a 1.5 percent Cost of Living adjustment for employees and an increase of $50 to the Benefit Allotment. As previously mentioned, the City Manager regularly reviews departmental operations and staffing structures of the City in order to ensure that it is delivering services to residents in the most efficient and cost-effective manner possible. The City Manager has identified changes to the organizational structure in order to meet these goals, and these changes are incorporated in this budget and in the compensation plan. The financial impact of all changes to the personnel structure as mentioned amounts to $110,000 of which $84,000 impacts the General Fund. Aside from salaries and benefits, the Sheriff's Department contract is one of the City's larger expenditures. The Los Angeles County Sheriff's Department notified the City that the increase to Fiscal Year 2016-17 Law Enforcement Contract will be 3.7 percent for a total Law Enforcement budget of $6.5 million. Also included in the increase is a payment of 9.5 percent or $530,000 into the Sheriff's Liability Trust Fund. This fund has been set up to offset any costs associated with liability claims that are filed against the LA County Sheriffs Department. The total expected increase amounts to $372,000. Fiscal Year 2016-17 budget provides for the use of General Fund Reserves in the amount of $1.9 million, a majority of which will be used for Capital Improvements Projects, with the balance being used to fund Economic Development efforts and subsidizing the Lighting and Landscape Districts (LLD). At the end of Fiscal Year 2016-17, it is anticipated that resources will outpace appropriations by $355,000 bringing estimated General Fund Reserves to $17.3 million or 67 percent of appropriations. Also included in the proposed budget are various Special Revenue Funds, the Debt Service Fund, Equipment Replacement Funds and the Capital Improvement Fund. These types of funds have specific guidelines as to how the resources may be used and the City uses these funds to pay for such things as slurry seal projects, transit related programs, solid waste JUNE 7, 2016 PAGE 11 CITY COUNCIL reduction programs, unforeseen fleet costs, and network upgrades. As previously mentioned, it is also proposed that a new fund "Technology Reserve Fund" be established in the current fiscal year in order to fund the City's anticipated future needs related to aging software systems that may no longer be supported by the vendors. The primary funding source for this fund during the current year will be the one-time money realized from building fees related to the Willow Heights housing project. The Fiscal Year 2016-17 Capital Improvement budget includes projects totaling $19.6 million, of which $12.1 million are project carryovers from Fiscal Year 2015-16, and the balance of the $7.5 million is either new projects or additional appropriations for existing projects. Included in the new projects for Fiscal Year 2016-17 is a street improvement project, two traffic management projects, street enhancement projects, trail enhancements, and improvements at the Diamond Bar Center. MPT/Lin complimented staff on a great job in putting together a conservative and well -crafted budget. MPT/Lin moved, C/Herrera seconded, to Adopt Resolutions 2016-17, 2016-18, 2016-19 and 2016-20. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Herrera Low, Tye, MPT/Lin, M/Lyons NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None M/Lyons thanked FD/Honeywell for her hard work on the 2016-17 FY budget. 9. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: C/Herrera said she was sad to say goodbye to NSA/Aziz because whenever she had trouble with her computer he magically solved her dilemma. She knows he will do an outstanding job in his new position because he is very intelligent and skilled, and has acquired a wealth of knowledge in his field. She jokingly stated that the next time she sees David Doyle she plans to kick him in the knee. Congratulations and well -wishes to NSA/Aziz. She thanked DCM/McLean, SMA/Santos, Lt. Phil Marquez, Deputy Aaron Scheller, Leticia Pacillas and the two individuals from the Fire Department who came to St. Denis Church on June 1 to provide an Emergency Preparedness Session for 60 plus people who had anxieties about certain types of potential disasters in Diamond Bar. Everyone was reassured that Diamond Bar has a very comprehensive plan and they were very pleased and felt a lot better at the conclusion of the session. Thanks to all for their help in this effort. She hopes everyone voted because today is a very JUNE 7. 2016 PAGE 12 CITY COUNCIL important day. C/Low congratulated graduates and their parents and wished them good luck on the next phases of their lives. Last Sunday she attended the Diamond Bar Chinese-American Association's annual meeting. She congratulated new President David Huang and thanked outgoing President Annie Chen. The organization runs a Chinese language school in Diamond Bar with students coming from all over the valley. C/Low said she was very excited about staff's revamping the Diamond Bar app which she strongly recommends. One can go to the iTunes store and look up Diamond Bar for the free app. C/Tye hoped everyone voted today and took advantage of their right and privilege. Last week he and C/Low attended the official Ribbon -Cutting for Encore Teppan, a new restaurant in town that he understands has the largest grill in the US. One week from tomorrow will be the first in the Concerts in the Park Series for 2016 and he hoped everyone would join in attending the event. He once heard a pastor say that "grandchildren are the gift that God gives you for not killing your own kids" and he hopes everyone who has kids and hears him say that has a hearty laugh. Brooklyn Tye arrived on Saturday, May 28 at 7 pounds and she is an absolute delight. He has been called many things in his life and he cannot wait to hear what she will decide to call him. MPT/Lin said that last Sunday he too attended the Diamond Bar Chinese- American Association's 26th Annual meeting. He felt privileged to serve on its Board for many years. He wished C/Tye good luck on his election bid. M/Lyons expressed appreciation to FD/Honeywell and her staff. The Council put her through her paces over several meetings. There is a lot in the budget and she believes Council Members asked questions about most of the items. She thanked FD/Honeywell for her patience and thorough explanations. M/Lyons encouraged parents and grandparents in the City to take a look at the many free events being held for children, teens and families this summer such as Concerts in the Park, the 4th of July event and the many library events throughout the summer. Two meetings ago, the Evergreen Elementary School students were here from the Odyssey of the Mind team. At that time they had won the State competition and were on their way to the world competition. She learned from the school principal two days ago that the team placed 5th in the world out of 51 teams in their division and a thousand teams overall. For their project, the team built a 14.9 gram structure that held 900 pounds. She is thinking that the City should get these kids to help with the 57/60 Confluence project. She congratulated C/Tye and his wife Patty on becoming grandparents. JUNE 7, 2016 PAGE 13 CITY COUNCIL ADJOURNMENT: With no further business to conduct, M/Lyons adjourned the Regular City Council Meeting at 7:41 pm in honor of employee Isaac Aziz. E Tommye Oribbins, City Clerk The foregoing minutes are hereby approved this ,) d of 12016. Nancy L ons Mayor