HomeMy WebLinkAbout02/21/17 Minutes - Regular MeetingCITY OF DIAMOND BAR
CITY COUNCIL STUDY SESSION
FEBRUARY 21, 2017
STUDY SESSION: M/Lin called the Study Session to order at 5:00
p.m. in Room CC -8 of the South Coast Air Quality Management
District/Government Center, 21865 Copley Drive, Diamond Bar, CA 91765.
ROLL CALL: Council Members Herrera, Lyons, Tye, Mayor
Pro Tem Low and Mayor Lin
Staff Present: James DeStefano, City Manager; David
DeBerry, City Attorney; Ryan McLean, Assistant City Manager; David Liu, Public
Works Director; Ken Desforges, IS Director; Dianna Honeywell, Finance Director;
Anthony Santos, Assistant to the City Manager; Amy Haug, Human Resources/Risk
Manager Kimberly Young, Senior Civil Engineer; Cecilia Arellano, Public
Information Coordinator, and Tommye Cribbins, City Clerk.
Also Present: Eric Strong, RCS
1® FEE STUDY UPDATE — DEVELOPMENT AND ADMINISTRATIVE
MISCELLANEOUS SERVICES — Discussion and Action.
ACM/McLean explained that he and AtoCM/Santos will provide the Council
with staff's update on the City's Fee Study process, background on how the
study was conducted and provide recommendations for consideration to
obtain staffs direction for bringing this matter back at an upcoming City
Council Meeting for consideration and adoption. The fee study was done for
all services offered by the City. Tonight's presentation and action is based
entirely on Development Services (Planning, Building and Safety,
Engineering and Public Works as well as basic administrative services).
Staff will bring back Parks and Recreation related items for separate
discussion at a later date.
The City offers hundreds of services across departments within the City's
structure with tonight's discussion focusing on the Development and
Administrative Miscellaneous Services portion. It is very important to
understand the different types of services offered by the City in two
categories with the first being community supported services which are the
services where there is implicit rationale for the subsidization, items that
have a community benefit and social benefit including parks facilities, public
safety, police and fire. Those are items that serve the entire public. In
general, these services are funded using tax dollars (property tax, sales tax,
etc:). The second type of services to discuss are "personal choice" services
which are those that directly benefit the end user, whether that is an
individual or a developer, and is generally assumed thatthe costs associated
with these services are generally paid for by the person who benefits from
the service such as building permits, facilities rental, development and so
forth. ACM/McLean noted that staffs goal tonight is not about raising
revenue, it is about eliminating or reducing subsidies. Staff is attempting to
plan for and provide strategies for long-term fiscal sustainability and one of
the key ways to do so is to make sure that the City is not subsidizing
FEBRUARY 21, 2017 PAGE 2 CC STUDY SESSION
"personal choice" services with taxpayer dollars. In general, Community
Support Services such as the Sheriffs contract, is generally paid from taxes
the City collects through revenues or grants. Personal Choice Services are
generally paid for by fees. Currently, the City is subsidizing the Personal
Choice Services and have been doing so for quite some time which means
that the City is using, General Fund tax revenues to subsidize the cost of
providing those fees to individuals and developers.
M/Lin said that a classic argument is whether it is a taxpayer subsidy or
something that a developer is generating future tax revenues for the City.
ACM/McLean said he believed it depended on the project. In addition to
generating tax revenue there are ongoing services that must be provided
through Public Safety, for example. There may be certain projects where
agreements are made as a tradeoff, but in general, most of the projects
(building permit or housing development), is not the case because in time
the City ends up subsidizing those items.
CM/DeStefano pointed out that this directly relates to the extraordinarily low
property tax rate. Out of all 88 cities in LA County, Diamond Bar has the
lowest. property tax rate. It is what it is and it cannot be changed, but what it
means to the City is that developments just do not produce the kinds of tax
revenue needed and residential land uses even in Diamond Bar's higher
priced brackets, do not pay for the services necessary to support a
residential use. Office uses at best are break-even because again, there is
not any revenue coming from most office uses. With retail the picture tends
to get much better very quickly. With hotels, for example, it is instantly better
but Diamond Bar has very little retail land left and very little sales tax -
producing retail businesses and very few hotels. So it comes full circle where
the City does not receive the kind of tax revenue from the typical
developments that occur in Diamond Bar and by necessity, the City has to
seek revenues from other sources to fill this void.
ACM/McLean continued that it is very important to remember that the City
has inherent limitations on its revenue generating capabilities. The City is
built out. It does not have any malls, racetracks or resort types of facilities
that generate transient occupancy tax. When the City thinks long-term, staff
believes it is appropriate, if the City wants to maintain fiscal sustainability
and the good performance over the years with balanced budgets without
service cuts, it is very important to look at the level of subsidies the City has
for providing these services.
AtoCM/Santos said these studies are performed at regular intervals. The
last time Diamond Bar conducted a study was in 2009. In 2016, the City
Manager authorized a new study with Revenue Cost Specialists (RCS).
FEBRUARY 21, 2017 PAGE 3 CC STUDY SESSION
ACM/McLean stated that when the 2009 study was performed, the policy
direction that was taken was to not follow the full cost recovery model as
outlined, which means that the City is still subsidizing nearly all of its fees.
At this point, the current document serves as the baseline for what it costs
today.
C/Tye asked what a reasonable interval was.
AtoCM/Santos responded that it is dependent upon the agency. Eric Strong
with RCS has done dozens if not hundreds of these fee study analysis.
Some agencies conduct studies every three years and others every five
years. The last time Diamond Bar conducted a study was in 2009, eight
years since the last comprehensive review.
CM/DeStefano said that Eric may have additional thoughts, but without
CPI's, it hurts the City. He knows that some do not favor automatic CPI's
but the City's costs reflect more closely the CPI and without that the City
instantly starts to fall behind.
CITye asked if a city with stable work force would necessarily have their
costs go up more than a city with a lot of turnover and are costs driven up as
cities age and cost of staff goes up.
Mr. Strong responded that it absolutely reflects the costs through turnover
where newer employees would have a lower cost per employee basis. That
is why this study looked at the costs for providing this cost for Diamond Bar
and did not concern themselves about costs in Walnut or Brea.
CM/DeStefano said that there cannot be an apples to apples comparison
because it is different everywhere. On a per -capita basis, Diamond Bar pays
a far lower cost for its Public Safety services. Some cities are up to 70-75
and almost 80 percent of their entire city budget paying for police, fire, labor,
retirement, etc. Other cities have substantially more property taxes or sales
taxes or other things. During the redevelopment days there were cities that
subsidized their development fees because they received money at the end
through property tax increases and tax increment benefits. If one were
comparing the costs in Diamond Bar versus the costs in any other city it is
very difficult to compare without getting into the deep details and financial
intricacies and philosophies behind why a city does what it does.
M/Lin felt the City received the benefit of consultants because it was not
burdened by retirement, pensions, etc.
CM/DeStefano said it depends on the Personal Service requested. In the
Planning Department, for example, most of the services are provided directly
by staff but there are consultants that are used in areas of expertise staff
does not have and for which it would not make sense to purchase that
FEBRUARY 21, 2017 PAGE 4 CC STUDY SESSION
expertise with a city staff person. On the Engineering side, it is 50/50 with
staff doing a lot of the work and so are the consultants but staff is overseeing
that consultant's work. Building and Safety is entirely consultant driven with
CDD/Gubman overseeing that contract. And it has been the City's
philosophy and profile to utilize consultant services over the years because
it best serves the City's needs and keeps overall costs low including
retirement costs, ebb and flow of the economy and other reasons. Other
departments that may have personal services that are offered to constituents
are done by staff or paid by recreation fees and in this instance, this study
directly relates to what it costs to provide the service in Diamond Bar and
what is the appropriate percentage of that cost the City is trying to recover.
AtoCM/Santos continued that this study was conducted to determine the
fully -burdened cost to Diamond Bar, to the Diamond Bar taxpayer as well as,
to the recipient of these purchase choices to make sure of the benefits to the
individual for the work being performed. Staff also wanted to make sure to
develop a legally -defensible baseline purpose which included employee time
by classification in completing different classifications of permit work in order
to defend those costs for a Conditional Use Permit or a New Business
License. The ultimate goal of this study is to recommend fee and policy
adjustments to the City Council for consideration.
The methodology for conducting this fee study included departmental
meetings to determine service level and time spent to provide each service;
review budget, develop a cost allocation plan, review services to categorize
between Community Supported and Personal Choice services, review
recovery percentage and develop recommendations. The elements of costs
included salaries, employee fringe benefits, operating expenses, overhead
and administration expenses and asset replacement expenses.
The full costs of delivering fee -financed personal choice services exceed
revenue on an annual basis. Current Development and
Administrative/Miscellaneous Services taxpayer subsidy is about $917,534.
Full cost recovery model for Personal Choice Services presents a potential
subsidy reduction of $652,675 in FY 2017-18.
C/Lyons asked what it would take to fully recover.
AtoCM/Santos explained that the dollar figure for full cost recovery is a very
conservative revenue estimate. The City does not want to over -promise and
under -deliver. Every year fluctuates based on development projects and the
applicant load that comes in. No two years are the same. The last couple
of years when the Willow Heights project was going on it was one-time
applications that were among the highest the City had received since
incorporation. Staff looked at conservative estimates year-to-year on
average which resulted in the $652,675.
FEBRUARY 21, 2017 PAGE 5 CC STUDY SESSION
ACM/McLean said that the $917,534 number is based on data from the
previous year in which the City had more volume and the $652,675 figure is
based on a more normal average year-to-year.
C/Lyons asked for confirmation that the whole cost recovery model would
recover most of the cost in a normal year.
Mr. Strong said that part of the costs would be something that would occur
once every five years.
AtoCM/Santos said that with the current fee structure, if there are volumes
greater than Lennar the subsidy would be greater than the $917,534. If the
full cost -recovery model is implemented, depending on how much volume
there is (high or low), the City would recoup its costs for providing the
services. He explained fee examples highlighting current to actual costs
(fully -burdened business model).
ACM/McLean stated that staff's recommendation is to put into place a fee -
resolution that captures the fully -burdened rate for providing Personal
Choice Services. Staff believes it is appropriate for the City's long term fiscal
health to eliminate or reduce taxpayer subsidies. Obviously, the Council has
the discretion to make decisions if they choose to provide subsidies in certain
cases, but staffs recommendation is that the City implement a full -burdened
fee resolution that eliminates the taxpayer subsidies for these particular
services. Staff would further recommend that this take effect July 1, 2017 to
correspond with the budget year and also recommends that Business
License applications and renewal remain at the $11 rate which is consistent
with the City Council's goal to provide business -friendly services. Staff
would strongly recommend that with any implementation that there be an
annual fee adjustment based on the annual CPI in order to stay somewhat
current and recommend another fee study be done at a future interval to
make sure that five to seven years going forward that the City is capturing
the correct costs. As a reminder, Parks and Recreation fees will be
discussed at a later date given its unique features.
In summary, the objective is to prioritize the long term fiscal health of the City
and eliminate taxpayer subsidies on Personal Choice Services.
C/Herrera asked if on adoption the Plot Plan fee would go from $225 to
$1670, for example.
Mr. Strong responded affirmatively.
C/Herrera commented that it is a huge hike.
ACM/McLean said that the difference demonstrates the level of subsidy that
is currently in place. One can see that while it is a very significant increase,
FEBRUARY 21, 2017 PAGE 6 CC STUDY SESSION
it is the cost of providing that service and if the City continues to subsidize it
at that level it is money that cannot be spent in Community Choice services.
MPT/Low asked for more time to study this matter.
Discussion ensued.
Council agreed to again discuss this item at a future Study Session meeting
► SISTER CITY— Discussion and Action
M/Lin stated that he brought this item forward for discussion because about
two months ago a citizen of New Taipei City requested to meet with him
which he did when he traveled to Taiwan. He was told that the two cities
had not had any contact for a long time and that the previous Sister City no
longer existed but that the District still had about 110-120,000 people. He
met with the Chief of the District of Sanshia and original members of the
Sister City Committee for Diamond Bar and was told they would like to
revitalize activities.
CM/DeStefano said that staff is recommending that the City not go forward
at this time. Staff could not find any direct benefit to the community of
Diamond Bar from the prior relationship and were challenged by the benefits
that may derive from the new larger City of New Taipei. That coupled with
efforts underway over the next year in a variety of areas caused staff to
believe that this is not an area the City should move forward with at this time.
Council may think differently and move forward to re-energize the
relationship with now New Taipei City and if Council were to do so, it is
recommended that the Council do so directly with the government of New
Taipei and not go through the Sister City Association because it has been
inactive for many years and may not have current representation that would
benefit Diamond Bar in a re -energized relationship.
M/Lin said he is very experienced with the Sister City concept and he
believed the proper way to move forward would be to create a Sister City
Committee consisting of two Council Members and a group of no more than
10 people as a part of the Sister City group.
Council discussion ensued after which Council concurred to take time to
consider the matter and bring it back for further discussion.
No. BARKING DOG NUISANCE PROCESS - Discussion and Action
M/Lin asked for discussion of this matter after hearing from a speaker and
learning about the situation.
FEBRUARY 21, 2017 PAGE 7 CC STUDY SESSION
CM/DeStefano said that in 28 years there has been only one other incident
of its kind of which staff is aware. These issues must exist but they do not
rise to the level of the recent example which is discussed in staffs report.
Also discussed in staffs report is the difficulty in monitoring and
implementing any ordinance for any length of time of an annoying barking
dog or any other animal nuisance and given the infrequent nature of this
item, staff is not recommending changes to the code at this time.
C/Herrera said she has complaints from residents about barking dogs in her
neighborhood and neighbor disputes. They call Inland Valley and Inland
Valley doesn't really do anything and she believes the reason it doesn't
surface to the City level is that people get discouraged that there is no one
to help them. What she does not want to see is people poisoning other
people's pets because they can't make the barking stop.
CM/DeStefano said he is not aware of any such incidents. The Inland Valley
Humane Society is often used as a weapon against a neighbor in what is a
disgruntled neighbor -to -neighbor relationship so the IVHS has a process that
begins by having at least one more complaining party, at which point they
will then begin investigating the situation and try to find a duplication of the
incidents that are the source of the complaints. Often IVHS cannot confirm
the problem and as a result, nothing happens. In the most recent case, the
circumstances were the same and to this day staff does not know whether it
was the dogs next door, down the street or up the hill because the situation
could not be duplicated. When IVHS can duplicate a situation they issue
notices or citations to the owner to make the appropriate correction.
C/Tye felt that IVHS did a good job but felt they needed help with customer
service. Some people will never be satisfied which is likely the situation with
the most recent example and he does not believe anything should be
changed because of one aberration.
Public -Comments: None.
ADJOURNMENT: With no further business to come before the City
Council, M/Lyons recessed the Study Session at 6:25 p.m. to the Regular Meeting.
Tommyd Cribbins, City Clerk
The foregoing minutes are hereby approved this 7th day of March
2017.
Jimmy Li i; ayo
MINUTES OF THE CITY COUNCIL
REGULAR MEETING OF THE CITY OF DIAMOND BAR
FEBRUARY 21, 2017
CLOSED SESSION: 5:00 p.m., Room CC -8
Conference with Real Property Negotiators pursuant
to Government Code Section 54956.8
Property: APN 8718-005 Parcels 007 and 008 (vacant property)
Agency Negotiators: James DeStefano, City Manager,
David DeBerry, City Attorney
Negotiating Parties: City and YMCA
Under Negotiations: Price and Terms of Payment
5:20 p.m., Room CC -8
110Fee Study Update — Development & Administrative Miscellaneous
Services — Discussion and Action
10Sister City — Discussion and Action
10. Barking Dog Nuisance Process — Discussion and Action
Public Comments:
None Offered
Study Session Adjourned to Regular Meeting at 6:25 p.m.
CALL TO ORDER: Mayor Lin called the Regular City Council meeting to
order at 6:32 p.m. in the South Coast Air Quality Management District/Government
Center Auditorium, 21865 Copley Drive, Diamond Bar, CA.
CM/DeStefano reported that the City Council began this evening with a Closed Session
at 5:00 p.m. There was one matter discussed regarding property negotiations for which
there is no reportable action.
Council then moved from the Closed Session to a Study Session at 5:20 p.m., during
which three items were discussed: 1) Fee Study Update in consideration of changing
General Consumer Fees (parks & recreation services) for services the City Government
provides as well as Personal Choice Service (single party building permits). Council
asked that this matter be brought back for further discussion. 2) Possible renewal of a
Sister City relationship with a community in Taiwan formerly known as Sanshai and now
known as New Taipei City was discussed and Council took action to table the matter for
the foreseeable future. 3) There was a brief discussion by the City Council regarding
the possibility of making changes to the City's Code dealing with annoying nuisance
FEBRUARY 21, 2017 PAGE 2 CITY COUNCIL
barking dog incidents and Council agreed with staff's recommendation that no action
was needed at this time because such incidents that rise to City Council level are
extremely infrequent in Diamond Bar. The Study Session concluded at 6:28 p.m.
PLEDGE OF ALLEGIANCE: C/Lyons led the Pledge of Allegiance
INVOCATION: Luke Pamplin, Evangelical Free Church, gave the
invocation
ROLL CALL: Council Members Herrera, Lyons, Tye, Mayor Pro
Tem Low and Mayor Lin
Staff Present: James DeStefano, City Manager; David DeBerry, City
Attorney; Ryan McLean, Assistant City Manager; David Liu, Public Works Director; Ken
Desforges, IS Director; Dianna Honeywell, Finance Director; Anthony Santos, Assistant
to the City Manager; Kimberly Young, Senior Civil Engineer; Cecilia Arellano, Public
Information Coordinator, and Tommye Cribbins, City Clerk.
APPROVAL OF AGENDA: As Presented.
1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS:
1.1 M/Lin and Council Members presented Certificates of Recognition to
Diamond Bar Pop Warner Cheer Team members for placing 6th in the
nation at the 2016 National Cheer & Dance Championship and for
becoming the 2017 Jamz National Champions.
NEW BUSINESS OF THE MONTH:
1.2 M/Lin and Council Members presented a Certificate Plaque to Diamond
Bar Montessori Academy, 23555 Palomino Drive, as New Business of the
Month for February 2017.
2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None.
3. PUBLIC COMMENTS:
Cynthia Smith asked what the monitoring policy and procedure was in the
Diamond Bar Planning Department that assures projects are consistent with the
City's General Plan and is it true that the Planning Department does not retain or
refer to CC&R's when considering development project applications and/or
approvals. Upon reading the annual General Plan Update report she noticed that
there was no declaration of projects that are inconsistent with the General Plan.
FEBRUARY 21, 2017 PAGE 3 CITY COUNCIL
Allen Wilson, representing the Office of Assemblyman Chen, spoke about the
introduction of Assembly Bill 100 which offers tax breaks for homeowners and
renters offered by Assemblyman Chen and Assemblyman Matthew Hart from
Huntington Beach which they encourage constituents to support. For further
information individuals can call him at his Sacramento Office at 916-319-2055 or
the Brea Office at 714-529-5502 or follow him on Twitter @PhillipChenca.
Pui Ching Ho, Diamond Bar Library spoke about upcoming Library events. On
Saturday, February 25 at 3:00 p.m. the Alzheimer's Association will present a
workshop teaching individuals how to recognize the warning signs of the disease.
March 2 is Dr. Seuss' Birthday and the Library is celebrating with a puppet show.
Please check the library website at
http://colapublib.org/libs/diamondbar/index.php for additional programs and
events.
Rob Julian, 209 S. Rock River Road voiced his concerns about individuals
parking cars in front of the school where there is bus parking only at Lorbeer
Middle School. When he called the school he was told to call the City and when
he called the City he was told to take the matter up with the Sheriffs Department.
He called the Sheriff's Department and was told to go back to the school and was
again told it was a City issue and when he called the City again he was told the
City had a problem with the school. He called the school principal and was told
she had never had a problem with the City and it must have happened prior to
her tenure. He suggested the City paint the curb and install "bus parking only"
signs so it can be enforced.
Ghazala Khan, 2896 Vista Court, asked for increased security for her Crystal
Ridge neighborhood community due to the increased burglaries in the area of
Hawkwood and Crystal Ridge. Captain Reyes and Lt. Marquez have responded
and obtained videos from residents to help identify the perpetrators but they are
not aware that any individuals have been identified or apprehended. Residents
of the area are working with the Homeowners Association to install cameras and
security lights. Her goal in bringing this matter to the City Council is because
Diamond Bar is considered to be one of the top 10 cities in the nation when it
comes to a low crime rate and that the current situation gives the City a huge
black eye. Response by the Sheriff's Department has taken up to an hour and a
half which they believe to be unacceptable.
Daniel Luevanos, One Legacy/Donate Life, spoke about the purpose of his
organization and advised Council that he and 23 other eye and organ recipients
rode on the Team Life Rose Parade float this year that won the Theme Trophy
"Echoes of Success". His organization is preparing for its 15th Annual Donate
Life Run/Walk at Cal State Fullerton. April is Donor Awareness Month and his
organization is asking for a Proclamation for organ donation for the month of
April
FEBRUARY 21, 2017
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CITY COUNCIL
Manuel Baca and Rosanne Bader, Board of Trustees members for Mt. SAC
updated Council on the school's facilities, its activities and programs. Mt. SAC
is planning for the next decade and seeking community input to help develop a
new Education and Facilities Master Plan. To this end, Mt. SAC will have a
series of workshops, the first of which will be held on Thursday evening at
Ganesha Park on White Street in Pomona. Thereafter, there will be meetings
spread throughout the district including West Covina, Baldwin Park, Irwindale,
Hacienda Heights, City of Industry, Walnut, LaVerne and Pomona. They
presented flyers and referred residents to the website at www.mtsac.com
Chia Teng, 22379 Kicking Horse Drive, spoke about Tentative Parcel Map No.
72035 which seeks subdivision of the property into three lots where only two are
mandated by The Country Estates Homeowners Association for which approval
of the Association is required and has been denied. Despite the Association's
denial, the Planning Commission approved the Map at its last meeting which is a
conflict and he imagines the matter will be litigated because the property owner
will have the subdivision map recorded and the HOA will fight it.
Tommy Lu, 2898 Vista Court and member of Crystal Ridge Homeowners
Association, spoke in support of Ghazala Khan's comments and other community
members who were affected by burglaries in their community. During this period
of time the community has had police support and Lt. Marquez has been very
kind, very attentive and very supportive but more needs to happen to protect the
community.
RESPONSE TO PUBLIC COMMENTS:
CM/DeStefano responded to the first speaker's comments about the City's
General Plan and the City's utilization and enforcement of private CC&R's. With
respect to the General Plan, City staff is obligated by. City Codes and State
Codes to ensure that all physical development projects are ultimately consistent
with the City's overall broad policy document for land use known as the City's
General Plan. Whether it is a room addition or a new subdivision like Willow
Heights or a new commercial building in the Gateway Corporate Center, each
and every project must be found to be consist with the City's General Plan. That
decision making process is at the basic staff level with a front counter permit as
well as, through actions preceded by recommendations from staff, actions of the
City's Planning Commission and often by the City Council. It is a fundamental
requirement and your professional City staff upholds the laws of the State of
California as well as, the rules of the City and the policies of the City
Government. A comment was made regarding the General Plan Annual Report
which was on the City Council's agenda a meeting or two ago. It is a State
requirement that an annual report be prepared and submitted to the State
regarding the progress of the City's General Plan and its implementation.
Accordingly, each year City staff puts together a summary of activities, major
developments, issues and opportunities that are occurring within the City. That
annual General Plan Report does not get into details and is instead, a broad
FEBRUARY 21, 2017 PAGE 5 CITY COUNCIL
stroke review of the City's implementation of its General Plan.
The same speaker asked questions about whether or not the City looks at
CC&Rs. Homeowners Associations and Business Property Owner Associations
often have CC&R's (Covenants, Conditions & Restrictions) which arerip vate
party agreements amongst and between the parties within that association who
have agreed to abide by the rules of that association. More commonly, these
associations are known within residential projects where there may be different
standards from what the City utilizes. There may be different standards for the
size of lots, the number and size of pets, and a wide variety of things which can
be implemented through private CC&Rs that may be different that the standards
of the cities. This City government like other City governments does not create
and does not enforce private CC&Rs. Homeowners Associations and Business
Owner Associations have their own enforcement powers, have their own
attorneys, and their own decision-making process through their Board of
Directors to enforce their own rules. Cities do not enforce private CC&Rs. The
example that was raised by a Mr. Lu regarding a potential project that is coming
to the City and indicating that the project does not follow The Country Estate's
CC&Rs, may indeed be the case. It is not often that it happens, but does happen
from time to time. It is really incumbent upon the private property owner (in this
case the sub -divider) to work through its Homeowner's Association. If they do
not, their project is in peril because they need to abide by their local Association's
rules and regulations, which is not generally difficult to do. Again, the City does
not enforce private CC&Rs and it is not the public's responsibility to weigh in and
to enforce those private covenants amongst and between the property owners.
Another speaker provided the Council and staff with a matter regarding traffic,
school buses and student pickup/drop-off at Lorbeer Middle School. Having
spoken with PWD/Liu, this is a matter of which staff is not aware but takes
extraordinarily serious and so too does the City's Public Safety partner, the LA
County Sheriff's Department and staff will be on that matter immediately and if
the speaker is still in the audience, a staff member will get additional information
from him to be able to coordinate information regarding that issue. Each school
has a circulation route for buses, parent pickup and for students which obviously
needs to be adhered to in order for the circulation system to work properly. Each
school has appropriate parking zones, each school is located in a different area
and each school has its own unique characteristics, but there is a traffic and
circulation parking plan for each school. Staff and the Sheriff's Department will
get on this matter immediately and continue to work very closely with the current
principal and the entire Pomona Unified School District, a wonderful working
relationship the City has enjoyed for three decades with both school districts.
Two speakers spoke regarding the recent spate of home burglaries within The
Country Estates. Speakers happen to live in one of the newer developments of
The Country Estates, a sub -community known as Crystal Ridge which is a
neighborhood of beautiful homes that are inside the gates. These homeowners
are members of the larger Country Estates Homeowners Association, which is
FEBRUARY 21, 2017 PAGE 6 CITY COUNCIL
privately gate -guarded, and privately security patrolled. A question was with
respect to Hawkwood which is a public street that terminates at a street within
The Country Estates Association where there is a gate. The Hawkwood gate is
within the boundaries of The Country Estates and is the managed and
maintained responsibility of The Country Estates Homeowners Association. It
was created decades ago but it was improved 15-20 years ago with pilasters and
wrought iron when a nearby Parcel Map was processed and the Crystal Ridge
Project was processed. Again, the Hawkwood gate is under the control of The
Country Estates Homeowners Association and it was meant to be an emergency
gate and is therefore not manned as are the other two gates within The Country
Estates.
Lt. Marquez spoke to the burglaries and ongoing investigation underway in the
Crystal Ridge community to catch those responsible. He stated that he is aware
of the burglaries committed in the community within The Country Estates. He
has attended a meeting with the community and he spoke about the specific
incidents that have taken place. At this point it would be irresponsible of him to
speak to an open investigation that is ongoing in this particular forum. He met
with the HOA President, security, two detectives and the Community Relations
Deputy today regarding additional patrol and additional monitoring and electronic
devices that can be placed in and around the community in question to make it
safer. The meeting lasted about two hours and was held inside the community.
He assured the community that the investigation of the burglaries that are
happening in The Country Estates has the attention of the Sheriff's Department
and that the department is working diligently with the community and other law
enforcement agencies to apprehend and arrest the individuals that have
committed these burglaries.
CM/DeStefano said that the first speaker referred to the City's enforcement of
CC&Rs. A later speaker was more specific in referring to The Country Estates
CC&Rs and a subdivision of a parcel of land. He admonished the Council that
should Council Members have questions or comments, they should not speak to
the matter of the Parcel Map (the subdivision of land) because that matter is
coming to the City Council in the form of a public hearing upon a
recommendation from the Planning Commission to move forward. There will be
another Noticed public hearing before the City Council and while an exact date
has not yet been set for the hearing, it is likely to be on the March 21, 2017 City
Council agenda. Because this is a matter of public hearing and because it is
coming before the City Council again, Council is asked to please not discuss the
CC&R enforcement, particularly with respect to the subdivision of land and the
specific application coming to the City Council in 30 days.
M/Lin said that Mrs. Khan said that it took law enforcement 47 minutes to
respond to a call and he wanted to know if that was a typical response time.
Lt. Marquez said he has spoken with Mrs. Khan on several occasions. Calls for
service are constantly monitored and broken into different categories such as
FEBRUARY 21, 2017 PAGE 7 CITY COUNCIL
emergency, priority and routine calls for service. He can assure the Council that
any calls that are emergency and priority are very quickly responded to by the
department and routine calls such as calls for service that are reports that need
to be taken take longer for response and he will speak to Mrs. Khan about that
effort again. If Mrs. Khan calls in an emergency his department will be there in
short order.
5. SCHEDULE OF FUTURE EVENTS:
5.1 Parks and Recreation Commission Meeting — February 23, 2017 — 7:00
p.m. —Windmill Community Room, 21810 Copley Drive.
5.2 Household Hazardous Waste and a -Waste Roundup Event — Saturday,
February 25, 2017 — 9:00 a.m. to 3:00 p.m., Gateway Corporate Center.
5.3 Community Coffee with State Senator Josh Newman — February 25, 2017
9:00 a.m. to 11:00 a.m., Diamond Bar Center, 1600 Grand Avenue.
RSVP to 714-671-9474.
5.4 4th Annual Bridal Show — February 26, 2017 — 11:00 a.m. to 3:00 p.m.,
Diamond Bar Center, 1600 Grand Avenue.
5.5 City Council Meeting — March 7, 2017 — 6:30 p.m., AQMD/Government
Center Auditorium, 21865 Copley Drive.
6. CONSENT CALENDAR: C/Herrera moved, MPT/Low seconded, to
approve the Consent Calendar as presented. Motion carried by the following
Roll Call vote:
AYES:
COUNCIL MEMBERS:
Herrera, Lyons, Tye, MPT/Low, M/Lin
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 Minutes of February 7, 2017 — as submitted.
6.2.2 Regular Meeting of February 7, 2017 — as submitted.
6.3 RECEIVED AND FILED PARKS AND RECREATION COMMISSION
MINUTES OF NOVEMBER 17, 2016.
6.4 RATIFIED CHECK REGISTER DATED February 2, 2017 through
February 15, 2017 totaling $735,966.05.
FEBRUARY 21, 2017 PAGE 8 CITY COUNCIL
7
6.5 ADOPTED RESOLUTION 2017-03: APPROVING PLANS AND
SPECIFICATIONS AND ESTABLISHING A PROJECT PAYMENT
ACCOUNT; AWARDED CONSTRUCTION CONTRACT FOR THE
TRAFFIC SIGNAL INFRASTRUCTURE UPGRADES PHASE II PROJECT
TO ELECNOR BELCO ELECTRIC, INC. IN THE AMOUNT OF $449,772
AND AUTHORIZED A CONTINGENCY AMOUNT OF $42,000 FOR
CONTRACT CHANGE ORDERS TO BE APPROVED BY THE CITY
MANAGER, FOR A TOTAL AUTHORIZATION AMOUNT OF $491,772.
PUBLIC HEARING:
7.1 RESOLUTION NO. 2017-04: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DIAMOND BAR FINDING AND DETERMINING THAT
THE PUBLIC INTEREST AND NECESSITY REQUIRE THE
ACQUISITION BY EMINENT DOMAIN OF INTERESTS IN CERTAIN
REAL PROPERTY FOR PUBLIC USE AND AUTHORIZING AND
DIRECTING CONDEMNATION OF PARCEL NOS. 8718-005-007 AND
008.
CM/DeStefano referred staff's report to CA/DeBerry who stated that this is
a Public Hearing at which the City Council considers whether to authorize
legal counsel to file a Court action in Eminent Domain to acquire the
property. The particular property that is subject to the Resolution is 2.83
acres and is currently unused. It is owned by the YMCA and is located
across from the YMCA at the end of Sunset Crossing Road. Its current
state is that it is generally covered with weeds, some grass and dirt, it is
surrounded by chain link fencing, and there are storage bins located on
the property. At one point this property was used as practice fields for the
adjacent Pony League but in staff's estimation, it has not been used for
any recreational purposes over the last 10 years.
CA/DeBerry further stated that the City's proposed use of the property is
to develop one -acre as a neighborhood park and to leave the remaining
1.83 acres as open space for the immediate future pending further study.
There will be further study of the precise amenities anticipated to be
included in the neighborhood park and the City also intends to receive
neighborhood input prior to proceeding.
Prior to filing a Court action, State Law requires that the City Council make
specified findings, all of which are contained in the Resolution before the
Council this evening. He summarized the five findings: 1) the public
interest is served by the proposed use (park purposes); 2) that the
proposed use is planned or located in a manner compatible with the
greatest public good and least private injury; 3) that the property is
necessary for the proposed use; 4) that the offer required by State Law
has been made to the property owner; and, 5) that the City has fulfilled its
legal requirements prior to adopting the Resolution of Necessity which
FEBRUARY 21, 2017 PAGE 9 CITY COUNCIL
includes a finding under the California Environmental Quality Act (CEQA).
Staffs report contains the detailed findings and evidentiary support.
Briefly, in support of the findings, the acquisition will help the City meet its
General Plan goal of having 3 -acres per 1,000 residents. Currently, the
rate is 2.3 -acres per 1,000 residents. It also furthers two General Plan
strategies that encourage both acquisition of open space and public parks.
The property is already designated under the Zoning Code and General
Plan for "park purposes and open space." There is currently no
neighborhood park that serves this community. The nearest park
(Peterson Park) is about 1.8 miles from the site. The City has complied
with state law and retained an appraiser which appraised the property as
"highest and best use" and by state law, the City is required to offer the full
amount of the appraised value to the YMCA which it has done. The
Resolution also contains a finding under the California Environmental
Quality Act (CEQA) that the property is categorically exempt. There are
three exemptions that apply to this project: 1) Exemption for infill
development of less than five -acres; 2) there is an exemption when there
is no reasonable foreseeability that the project will have any significant
impact on the environment; and, 3) typically acquisitions for Open Space
and Public Parks are exempt under CEQA. However, having said that,
once the City decides on the particular amenities for the neighborhood
park and sometime in the future when the City decides what to do with the
balance of the property, it would undertake the same CEQA analysis to
determine whether or not it is exempt.
As required by State Law, the City provided written notice to the property
owner regarding the time and place of this hearing and by State Law, the
property owner is required, within 15 -days of such notice (by February 10)
to advise the City if the property owner wants to be heard at this Public
Hearing. To date, the City has not received a written request from the
property owner to be heard in this matter.
If the City Council adopts this Resolution, it will authorize legal counsel to
move forward with the filing of an action in LA Superior Court to acquire
the property. He noted that even if the Council adopts the Resolution
tonight the ongoing effort for the City to negotiate a voluntary purchase
with the YMCA will in no way stop. This effort to negotiate a voluntary
purchase will be ongoing as the parties involved have recently traded
ideas about what the purchase price should be.
One of the items that is not discussed at the Public Hearing as dictated by
State Law is the price being offered for the property. To that end, all
public comments during tonight's Public Hearing must be directed to the
five findings that are contained within the Resolution.
MPT/Low asked for clarification that this project was exempt under CEQA
and yet at some other point another CEQA might be required.
FEBRUARY 21, 2017 PAGE 10 CITY COUNCIL
CA/DeBerry said that the current actions tonight are intended to simply
acquire the property. Until such time as the City has acquired the park
and has determined what particular amenities will be for the neighborhood
park and or for the 1.83 acres later on, whether or not those particular
activities and installation/construction would have on the property are not
known. It is too early in the process to determine whether or not there will
be an Environmental Impact required for whatever is determined to take
place until the property is acquired. Once a more definitive plan is in place
the City will relook at CEQA to determine whether or not those exemptions
still apply and if not, further study may be required.
MPT/Low asked if the property was currently being used or sitting fallow.
CA/DeBerry said as indicated in staffs report, it is sitting fallow staff
believes it has not been used over the past 10 years.
M/Lin opened the Public Hearing at 7:49 p.m.
M/Lin asked if the property owner was present and there was no
response.
Absent anyone requesting to speak on this matter, M/Lin closed the Public
Hearing at 7:49 p.m.
C/Lyons said she would like to move forward with this project. She can
remember when the property was well used by youth in the community for
baseball practice and general play. She hates to see it in its current
condition and it is definitely an eyesore.
C/Lyons moved, C/Herrera seconded, to Approve Resolution No. 2017-04:
A Resolution of the City Council of the City of Diamond Bar, Finding and
Determining that the Public Interest and Necessity require the
Acquisition by Eminent Domain of Interests In Certain Real Property for
Public Use, and Authorizing and Directing Condemnation of Parcel Nos.
8718-005-007 and 008. Motion carried by the following Roll Call vote:
AYES: COUNCIL MEMBERS: Herrera, Lyons, Tye, MPT/Low,
M/Lin
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
FEBRUARY 21, 2017 PAGE 11 CITY COUNCIL
8. COUNCIL CONSIDERATION:
8.1 (a) ADOPT RESOLUTION NO. 2017-05: AMENDING THE FISCAL
YEAR 2016-17 MUNICIPAL BUDGET.
CM/DeStefano stated that each year at about this time staff brings forward
to the City Council recommended changes to the Council's adopted
budget and staff is doing so again this evening. Staff's report will be
provided by FD/Honeywell.
FD/Honeywell explained that the purpose of this report is to update the
City Council on the City's financial condition at the midpoint of the 2016-17
Fiscal,Year and to make appropriate adjustments to the budget. The City
has continued to see moderate increases in most revenue sources which
is a positive indicator of an improving local economy. Property tax and
sales tax revenue represent nearly 63 percent of the General Fund
revenue so meaningful increases in these categories are important
financial indicators for the City. Property tax revenue is tracking on budget
for FY 2016-17 and it had been increased over the 2015-16 FY levels by 3
percent. Sales tax is being adjusted upward at mid -year by $350,000.
This increase is due primarily to better than expected results in the
business and industry sector, diversification in the sales tax base and
continued economic development efforts throughout the City. There are
some decreases in the General Fund revenue such as lower than
expected fines and forfeiture revenue due to better compliance with City
Ordinances and lower recreation fees due to cancellation of the Snowfest
earlier this year due to bad weather. Even with these reductions, there is
an overall increase to the General Fund revenue in the amount of
approximately $1.7 million of which $1.2 is a use of General Fund
reserves. The City has continued to control expenditures in order to best
meet the needs of the organization and its residents. Staff is
recommending an increase of General Fund Appropriations at mid -year of
approximately $1.6 million over the current adjusted budget. A portion of
this increase is due to the reorganization of the Parks and Facilities
Maintenance Division earlier this fiscal year. It was not immediately
known at the beginning of the fiscal year what the needs of the
department would be. As the year has progressed and staff has had the
opportunity to evaluate facilities throughout the City, the necessary
resources are now being appropriated.
A majority of the increase to the expenditures is for the funding of Capital
projects which constitutes $1.2 million of the $1.6 million increase.
$245,000 is for additional funding for the City's Monument Signs, $84,000
is for Preliminary Mitigation Measures for the recent storm damage to
Sycamore Canyon Park and Steep Canyon, and $805,000 for Area 5
Street Rehab. In the past, projects of this nature have commenced after
the beginning of the new fiscal year around August. Staff has determined
FEBRUARY 21, 2017 PAGE 12 CITY COUNCIL
that it is beneficial for slurry projects to start closer to the beginning of the
summer for better results and fewer school traffic issues. In order to
award the contract in April or May, funding sources must be identified
during the current fiscal year which results in the short-term borrowing
from the General Fund Reserves in the current fiscal year. These funds
will be returned to the General Fund Reserves in Fiscal Year 2017-18 and
replaced with a new funding source such as Measure M which was
approved by the voters in November 2016. The details of all of these
changes can be found in Exhibit A of Staffs report. Adjustments at mid-
year will bring projected General Fund Reserves at June 30, 2017 to
$15.8 million which is 60 percent of the General Fund appropriations.
Also included in this mid -year report are a variety of adjustments to
Special Revenue Funds, the most notable being an increase to the
General Plan Fund. The majority of the $544,000 increase is funds that
were already earmarked and appropriated in prior years and not carried
over in September when the rest of the carryovers were done. A small
portion is for costs related to GPAC meetings and public outreach in order
to keep the residents apprised of the progress of the General Plan.
Adjustments to the CIP Fund include additional appropriations for Lemon
Avenue and as previously mentioned, the City Monument signs. New
appropriations include Pantera Park lighting design and the previously
mentioned funding for the Area 5 slurry project and initial mitigation efforts
at Sycamore Canyon Park and Steep Canyon.
C/Herrera moved, C/Tye seconded, to Adopt Resolution 2017-05:
Amending the Fiscal Year 2016-17 Municipal Budget. Motion carried by
the following Roll Call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Herrera, Lyons, Tye, MPT/Low,
M/Lin
None
None
(b) ADOPT RESOLUTION NO. 2017-06: AMENDING RESOLUTION
NO. 2016-40, THE CITY OF DIAMOND BAR'S COMPENSATION
PLAN EFFECTIVE MARCH 4, 2017.
C/Herrera moved, C/Lyons seconded, to Adopt Resolution No. 2017-06:
Amending Resolution No. 2016-40, the City of Diamond Bar's
Compensation Plan effective March 4, 2017. Motion carried by the
following Roll Call vote:
AYES: COUNCIL MEMBERS: Herrera, Lyons, Tye, MPT/Low,
M/Lin
NOES: COUNCIL MEMBERS: None
FEBRUARY 21, 2017 PAGE 13 CITY COUNCIL
ABSENT: COUNCIL MEMBERS: None
8.2 APPROVE AMENDED AND RESTATED AGREEMENT BETWEEN CITY
OF DIAMOND BAR AND USA WASTE OF CALIFORNIA, INC. (WASTE
MANAGEMENT) FOR RESIDENTIAL CART CUSTOMER SOLID WASTE
MANAGEMENT SERVICES.
ACM/McLean reported that staff is bringing forward a recommendation to
approve a franchise amended and restated agreement between the City
and USA Waste aka Waste Management, the City's exclusive residential
solid waste hauler since 2000. The current second agreement went into
place in 2010. Since that time, Waste Management has continued to
provide good service to the customers, has maintained competitive rates
and offered a variety of very significant refuse and recycling programs.
The current agreement is set to expire in August 2018. In March 2016,
City Council directed staff to begin exclusive negotiations with Waste
Management over the next six months. Following an RFP process,
Council selected HF&H Consultants, an industry leader and expert in
providing assistance to staff as it negotiates these very complex deals and
who is represented at tonight's meeting.
Staff began negotiations last August by setting staff's goals about how it
would proceed with negotiations. Number one was to provide high quality
service. Staff wanted to maintain and expand the special programs the
City has which include not just trash service, but also recycling, e -waste,
household hazardous waste and a long list of other items. Staff wanted to
generate revenues and added value from these agreements to fund
community -wide initiatives and services and finally, to maintain health and
safety throughout the community through continuity of service. This
negotiation process concluded early 2017 and the resulting document is
Exhibit A in Council's packet which is the proposed contract agreement
that staff has come to agreement with the City's haulers. This document
has been reviewed and approved by the City Attorney.
Some of the key provisions are as follows: The term of the agreement per
the negotiated agreement is that the current agreement would be
extended for a period of five years to August 2023 with the City having
at that point, the option to extend the Agreement by two one-year
extensions. Regular service provided under this agreement are that
customers will continue to be able to select the appropriate sized cart they
wish to use. One of the unique features of the agreements is that the City
has a "pay as you throw" system which means individuals can choose
carts based on the amount of waste and/or recyclables they generate. In
short, those who produce less waste end up paying less because they do
not need the larger cart. Staff found that about 84 percent of customers
choose to use bins that are smaller than the 96 gallon because they found
ways to recycle more and generate less waste. The third item is rates and
FEBRUARY 21, 2017 PAGE 14 CITY COUNCIL
what staff has agreed to with Waste Management is to freeze the current
rates for the first year of the agreement which results in an approximate
rate payer savings of $94,630 for that first year. Thereafter, Waste
Management would have the availability of requesting rate increases
based solely on their changes in providing service and business costs
associated with providing service beginning in year two of the agreement.
He noted that it is very difficult to provide apples to apples comparisons
between cities. The agreements Diamond Bar has and the franchise
agreements versus those of other agencies can differ in many different
ways. For example, Arcadia has a much more limited "scope of services"
compared to specialized recycling service Diamond Bar enjoys including
e -waste, household hazardous waste, sharps collection, etc. More
importantly, Arcadia has made a policy decision not to have franchise
fees. They do not have road maintenance charges associated with their
agreements which for Diamond Bar are charged to offset heavy
equipment on City streets which fund the City's slurry seal projects that
keep Diamond Bar streets looking very nice. Arcadia has also chosen not
to collect street sweeping costs, a policy decision that was made because
Arcadia has fundamentally different revenue sources from Diamond Bar.
For example, Arcadia has a higher property tax share. Diamond Bar has
the lowest property tax share in the County of Los Angeles which limits its
revenue collection. Some other cities that may choose to subsidize these
services have large-scale sales tax producing developments such as
malls and in Arcadia's case, a racetrack. It is important to keep these
factors in mind when comparing rates.
The City has two fees that are included in its franchises which are the 5
percent franchise fee and the 4.7 percent AB939 fee. Staff is not
proposing changes in the levels of those rates. They will continue as they
have been for the past 17 years or so. Staff anticipates a total of
$510,000 being generated by franchise and AB939. Because of Diamond
Bar's limited availability of sales tax like a resort town generates with a
high TOT and because the City does not have other revenue generating
sources it is important that the City has the ability to do so in a situation
such as this. The agreement also includes street sweeping funding which
allows the City to meet all stormwater requirements. There is road
maintenance funding of $125,000 which is put into the City's street
maintenance accounts to fund slurry seal and street improvements
throughout the community to offset some of the damages caused by
heavy equipment on the streets. There is a $75,000 one-time payment for
contracting funds, a fee that will be collected to reimburse the City for
consultant costs related to the negotiation process. Finally, there is an
environmental education fund which goes to fund community education
programs including the City's Discovery Cube partnership of Orange
County to provide additional environmental services and recycling
education to school -aged kids in both districts.
FEBRUARY 21, 2017 PAGE 15 CITY COUNCIL
The agreements have minimal diversion rates that remain at 45 percent
for all material and 75 percent for construction/demolition materials, both
of which meet state requirements.
Staff and the consultant team have spent a lot of time developing these
comprehensive program enhancements which include a senior discount
for residents aged 60 who may be eligible for those reduced rates.
Diamond Bar is a pioneer in that aspect. The City has over 3,000
residents who take advantage of the City's senior program which is unique
to the area. There is a disabled customer discount in which those that can
provide proof of disability receive an additional 15 percent off of their
monthly service. There is a yard waste reduction discount which provides
backyard composting instruction which may result in the customer being
eligible for waiver of the "mandatory yard waste bin." Backyard assistance
for disabled individuals wherein Waste Management drivers retrieve and
replace carts for those who are unable to wheel the carts to the curbside.
Program includes "on-call bulky item and a -Waste collection and disposal.
Residents are eligible for four free bulky item pickups which is helpful in
disposing of furniture, refrigerators, etc. There is also an "at your door
hazardous waste" collection — two free annual pickups for residents which
includes items such as paint, cleaning solution, household chemicals,
batteries, etc. There is also a Sharps mail -back program, for secure
return, medication take -back program, a free mulch giveaway which is
very popular and is tied to the bi-annual environmental events such as
Arbor Day, Earth Day, joint events and the Eco -Expo. The program
includes holiday tree collection and disposal and staff has partnered with
Waste Management to increase the City's outreach, educational and
marketing materials with billing inserts, a comprehensive user -guide that
provides information on all of these services and others that are available
to residents. And, Waste Management provides free services to the City
for various City events which provides another offset to the City's General
Fund.
C/Tye asked ACM/McLean if when he spoke to comparing apples to
apples, that the City has all of these services that other cities may not
have and that residents would have to pay for those additional services
were they not written into the contract.
ACM/McLean said that in general, Diamond Bar has a very
comprehensive program and some of these particular offerings may not
be available to residents of other cities and yes, in most cases, they would
likely pay an additional charge to receive those services.
Certain accountability items are built into the agreements to make sure
that contract compliance is met, that there is accountability to the City and
the residents. It includes standardized reporting to ensure the haulers are
meeting their diversion and other contractual obligations. The City has the
FEBRUARY 21, 2017 PAGE 16 CITY COUNCIL
ability to do performance audits and there are payments associated with
those to offset the cost of doing those audits, and there are customer
surveys available at the City's request.
In summary, staff and Waste Management believe the goals of the
exclusive negotiation period have been met and to that end, staff has
received a signature from Waste Management indicating their approval of
this process. The agreed upon terms provide extremely robust services
as the Council has always shown that it wants to set an example when it
comes to environmental services and staff believes that the large amount
of specialized services these agreements provide shows that. The
agreement also ensures the City and residents that the community is
meeting State Mandates with respect to environmental and diversion
requirements.
Staff recommends that the City Council approve the agreement with
Waste Management for the amended and restated agreement.
C/Herrera pointed out that the previous agreement was for eight (8) years
and why is the City proposing only a five-year agreement this time around.
ACM/McLean said that the total timeframe for the previous agreement
included one-year extension opportunities which was actually a six-year
agreement with two option years.
C/Herrera said she did not understand why it was shortened from 8 to 7
years.
ACM/McLean said that in discussing the matter with the City Attorney and
amongst staff, it was felt that it was an appropriate time period and, at a
future time, if the City wished to enter into another exclusive negotiation it
could. Staff felt this was the appropriate time span for this agreement. In
addition, staff anticipates there will likely be changes to State Mandates
and Laws coming forward and staff felt it would be appropriate to address
those at that time.
C/Tye referred staff to Page 14, Item 2.4 Term of the Agreement which
states that the term of this agreement shall be 13 years.
ACM/McLean said that is because this is an amended and restated
agreement which means that this extends the term of the original
agreement by amendment.
C/Lyons said she felt that Waste Management does a very good job for
Diamond Bar and appreciates the bulky item and holiday tree pickups and
the fact that they call and leave messages for residents when they are
delayed due to the holiday. For residential, Waste Management does a
FEBRUARY 21, 2017 PAGE 17 CITY COUNCIL
terrific job.
MPT/Low asked if ACM/McLean had stated that because Diamond Bar
has one of the lowest property tax rates for every hundred dollars a
resident pays the City gets 40 cents on that hundred.
ACM/McLean responded that the City gets 5.9 percent or 5.9 cents of
every dollar received of the County's share of property tax revenue.
MPT/Low said that over the past eight years Diamond Bar has enjoyed the
contract with Waste Management have there been any rate increases
imposed to the initial contract.
ACM/McLean said there have been rate increases in accordance with a
standard formula included in the agreement based on the changing
dynamics of business costs which includes fuel, labor, landfill rates, etc.
MPT/Low asked if the increase was different from the published CPI.
ACM/McLean said that the staff's audit he referenced was based on
performance which is separate from this. It is not the CPI. There are
different factors and a formula that generates the amount the hauler would
request for any type of increase which would be done annually. He
reminded Council that for the first year of this agreement there is a rate
freeze, so none would be accepted for review until year two.
MPT/Low asked whether any other waste hauler would be obligated to
reimburse for the consulting costs.
ACM/McLean said yes, that this has been a feature of the agreements in
the past two negotiation periods and when he speaks about Valley Vista
she will hear that they have the same obligation as part of their agreed
upon terms.
C/Herrera moved, C/Tye seconded, to Approve Amended and Restated
Agreement between City of Diamond Bar and USA Waste of California,
Inc. (Waste Management) for Residential Cart Customer Solid Waste
Management Services. Motion carried by the following Roll Call vote:
AYES: COUNCIL MEMBERS: Herrera, Lyons, Tye, MPT/Low,
M/Lin
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
FEBRUARY 21, 2017 PAGE 18 CITY COUNCIL
8.3 APPROVE AMENDED AND RESTATED AGREEMENT BETWEEN CITY
OF DIAMOND BAR AND VALLEY VISTA SERVICES FOR BIN ROLL-
OFF BOX CUSTOMER SOLID WASTE MANAGEMENT SERVICES.
C/Lyons recused herself from Item 8.3 and left the Dais
ACM/McLean stated that much of the information he provided related to
the process for the Waste Management Agreement applies to this request
for approval of an amended and restated agreement between the City of
Diamond Bar and Valley Vista Services. Valley Vista Services has served
the City of Diamond Bar since 2000 and is currently working under an
agreement that began in 2010. Valley Vista Services has continued to
provide good customer service, maintain competitive rates and offer a
variety of services to the public they serve. In addition, they have been
very responsive to staff and worked well with staff members to make sure
the City was providing good environmental services to the community. In
March 2016 the City Council directed staff to proceed with exclusive
negotiations with Valley Vista for commercial and multi -family services and
during this process staff again used the services of HF&H, an expert
consulting service to help get through the process with Valley Vista.
This process began in August 2016 and staff, consultants and Valley Vista
met over a series of months to negotiate and get to an agreed upon
amended and restated franchise agreement. Similar to the previously
discussed agreement, this supersedes the existing document and is
essentially an amendment going forward with new terms. This amended
and restated agreement would go into effect immediately upon Council's
approval, should it be granted. The City Attorney has reviewed and
approved this agreement.
Key provisions related to the Valley Vista agreement are that this is a five-
year agreement with an expiration in 2023 and adds two option years at
the City's discretion. For regular service customers continue to be able to
select the appropriate sized bins and all recyclables and refuse is sorted
at the Valley Vista MRF which is the Material Recovery Facility. With
respect to rates, apples to apples comparisons are difficult for the reasons
previously outlined. However, like the previous discussion, these rates
are frozen at the current rates through June 30, 2018 which is an
estimated rate payer savings of approximately $48,278 and Valley Vista
would be eligible for a rate increase request starting in July 2018, year two
of the agreement. Any increase would be based on a formula that is
included in the agreed upon terms that is based on business costs such
as fuel, labor and landfill costs.
Valley Vista has had and staff is recommending that it continue to have
slightly different percentages for franchising, AB939 fees. In this case,
franchise fees are at 5 percent and the AB939 are at 13 percent. AB939
FEBRUARY 21, 2017 PAGE 19 CITY COUNCIL
are funds that are special revenue funds the City uses specifically for
environmental services and recycling programs. One example is that the
City partners with ACE Hardware to provide a place for residents to drop
off and recycle light bulbs, batteries, fluorescent tubes and such which is a
very well used and convenient benefit provided residents. The agreement
includes minimum diversion of 25 percent for all solid waste and a
minimum of 75 percent for all construction/demolition materials as
mandated by the State.
Program enhancements that are focused on the commercial and multi-
family sector are substantially different than the residential. These
comprehensive and proactive efforts include scout service for businesses
and multi -family units, bulky item pickups, household hazardous waste
pickups, and very comprehensive educational and marketing materials
which include materials for an organics program which were very
impressive and will be very helpful for businesses that are required to
meet the new Organics State Mandates. They also provide service to City
facilities and special events which is a very significant service to the public
since Diamond Bar has several large-scale events including the City
Birthday Celebration and the 4th of July which are provided to the City at
no charge which is a General Fund offset the City would otherwise have to
pay.
The Organics Recycling Program is a result of the recently passed
AB1826 which is a requirement that commercial businesses that generate
specific amounts of food waste or restaurant waste have this material
diverted from landfills. This is a new requirement and through this process
staff worked with Valley Vista to secure a program that will serve the
community, its businesses and restaurants that are impacted by this State
Mandate at a very competitive price as an incentive to get them to
participate.
With respect to accountability, Valley Vista wants to ensure compliance
and accountability to the City and its residents so there are standardized
reporting requirements, performance audits and customer service surveys
as terms in the agreement.
Staff recommends that the City Council approve the amended and
restated agreement with Valley Vista Services to provide commercial and
multi -family waste hauling services. Both parties agreed that the goals of
the negotiation have been met.
M/Lin asked what the monthly average rate is for these services.
ACM/McLean reported that the services vary but in general, a 3 -yard bin
commercial and multi -family standard monthly service rate is $132.98.
Staff's report includes comparisons in different agencies and staff would
FEBRUARY 21, 2017 PAGE 20 CITY COUNCIL
caution that there are varying factors in each agreement that impact those
rates. In Diamond Bar, the comparison for monthly standard service for a
64 gallon cart for residential and the rate is $27.18. The senior rate is a
15 percent reduction off of the standard rates.
C/Tye commented that Valley Vista and Waste Management have been
involved in this community for years and have done a terrific job. At one
time there were 13 different providers in the City of Diamond Bar and
again, many unfunded mandates have come to the forefront and those
mandates are pushed off on somebody. So he thinks that Valley Vista
and Waste Management have done a terrific job for the City and residents
of Diamond Bar. Just about anything Council Members and the public
attend and anything the City puts together, they are there and they are
both supporting the City in any way that they can. He appreciates their
efforts and their neighborly attitude and attention.
MPT/Low said that Valley Vista and Waste Management have done an
excellent job and she really appreciates their participation in the City.
C/Tye moved, MPT/Low seconded, to Approve Amended and Restated
Agreement between City of Diamond Bar and Valley Vista Services for Bin
Roll -off Box Customer Solid Waste Management Services. Motion carried
by the following Roll Call vote:
AYES:
COUNCIL MEMBERS:
Herrera, Tye, MPT/Low, M/Lin
ABSTAIN:
COUNCIL MEMBERS
Lyons
NOES:
COUNCIL MEMBERS:
None
ABSENT:
COUNCIL MEMBERS:
None
C/Lyons returned to the Dais.
9. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE
REPORTS/COUNCIL MEMBER COMMENTS:
C/Lyons reported that on February 9th she enjoyed celebrating Chinese New
Year with the Diamond Bar Evergreen Club which was very well attended with
lots of food and entertainment. Last week she represented the Council at the
celebration for Chaparral Middle School. The school was one of only nine that
earned the prestigious award "Middle Schools to Watch." Well done, Chaparral!
She participated in a meeting with Southern California Gas where concerns were
shared regarding the reduced amount of storage this year over past years. As a
result, they have asked everyone to conserve natural gas so that everyone can
make it through the winter which is unusually wet and cold. She thanked
FD/Honeywell and her staff for all of their hard work on the mid -year budget
amendment. It was a huge task and the recommendations were thorough and
thoughtful and she appreciates their diligence. She is very excited about the
acquisition of the YMCA property and feels a park in that part of the City would
FEBRUARY 21, 2017 PAGE 21 CITY COUNCIL
be terrific. She recalls when the property was well used and she looks forward to
that happening again.
C/Herrera congratulated the Diamond Bar Pop Warner Cheer Team for placing
6th in the "National Cheer and Dance" Championship and becoming the 2017
Jamz National Champions. The kids work very hard and deserve all of the
accolades they receive. She attended the San Gabriel Valley Council of
Governments Transportation meeting where a great deal of time was spent
discussing ACE (Alameda Corridor East) concluding its grade separation work so
that rail can run above traffic through intersections rather than impeding traffic
flow. In a few years they will conclude their work after spending $1 billion of
federal funds. San Gabriel Valley Council of Governments is the parent
organization for ACE and the discussion was whether to disband ACE or
repurpose and reutilize the organization for other projects throughout the San
Gabriel Valley region. It was the recommendation of the Transportation
Committee and the Governing Board of the Council of Governments and the vote
was unanimous to keep ACE and to take the next six months to come up with a
plan on how to repurpose ACE so that it could potentially take over construction
of different projects. Diamond Bar's interest is the potential of ACE taking over
and supervising the construction of the SR57/60 Confluence project which would
undoubtedly expedite the project and likely come in for less money than if the
project was supervised under Caltrans. The decision was very exciting for
Diamond Bar.
M/Lin said that ACE is providing construction supervision for the Lemon Avenue
Interchange project.
C/Tye said it seems that the City is saving money as the Council sits in session
and thank you to C/Herrera for making everyone aware of that. Tonight this
meeting will be adjourned in memory of Lynda Burgess and he asked that the
meeting also be adjourned in memory of Whittier Police Officer Keith Boyer.
Captain Reyes and Lt. Marquez have black bands across their badges to
commemorate the loss of a fellow police officer who was murdered in the line of
duty, simply for doing his job. C/Tye stated that he grew up in Whittier and the
incident happened close to a Little League field where he used to play. This man
was killed for responding to a car accident and was murdered by a cockroach of
a human being and it quickly and forever changed the Boyer's lives and the life of
his fellow officer, Pat Hazel. This perpetrator was a gang member who killed his
cousin so he could steal his cousin's car and make his way to Whittier and kill
Officer Boyer. Sheriff McDonald discussed AB47 and Prop 109 or 58, he knows
from people who spoke this evening, burglaries have increased and burglars are
very bright in that if they do not steal more than $950 they will not be treated as
they were in the past. Again, this individual was in and out of jail 10 times in the
last year. Something is wrong. When one considers what has been approved
through the initiative process or by the legislature, this officer was nearing
retirement which is what one looks forward to — to have a successful career and
be able to retire and spend time with his family. It is so very sad when one
FEBRUARY 21, 2017 PAGE 22 CITY COUNCIL
realizes this can happen in the blink of an eye.
MPT/Low said that C/Tye mentioned AB47 which has resulted in the early
release of many prisoners. Her heart goes out to the two speakers and their
neighbors who were burglarized in their homes in the Crystal Ridge
development. Nearly every month individuals appear before the Council to talk
about the trauma they have experienced, not so much to the loss of property, but
to the emotional toll and the feeling that their privacy and safety have been
violated. She understands their pain and is very thankful that Diamond Bar has
an excellent and responsive Sheriff's Department. She thanked Lt. Marquez and
staff for meeting with the residents. This is not a problem that can be fixed very
quickly but the effort to eliminate such events is ongoing. She thanked
ACM/McLean for his work on the Waste Management and Valley Vista contracts
whose report came in at a whopping 542 pages. Great job! It was great seeing
the young women doing their cheer. If others grew up with parents who did not
encourage sports she thinks that is a mistake and young people should be
encouraged to participate in various sports because they make people happy
and provide new perspectives on life. She gave a shout out to the Pony League
and Girls Softball, basketball and baseball. Congratulations to the Breakfast
Lions for their successful "Drumming for Kids" event as well as, the Miss
Diamond Bar Scholarship Pageant which deserves everyone's support.
M/Lin attended many functions during the past two weeks, one of which that
stood out to him was his attendance, along with C/Lyons, at the Diamond Bar
Woman's Club's Annual Charity Casino Night which was a very fun event. C/Tye
spoke about Officer Keith Boyer. M/tin's nephew recently graduated from the
Police Academy and is working for the police department in Westminster and he
understands how great a police officer is. This is the first police officer in his
family as far back as he can trace his history. Lynda Burgess was the City's first
City Clerk and helped set up the documentation protocols, filing systems, etc.
She worked for the City for 15 years and passed away last week.
ADJOURNMENT: With no further business to conduct, M/Lin adjourned the Regular
City Council Meeting at 8:45 p.m. in memory of Lynda Burgess and Whittier Police
Department Officer Keith Boyer.
Tommye Criibbins, City Clerk
FEBRUARY 21, 2017 PAGE 23 CITY COUNCIL
The foregoing minutes are hereby approved this 7th day of March 2017.
Jimmy L"ayor