HomeMy WebLinkAbout112117 - Agenda - Regular Meeting
City Council Agenda
Tuesday, November 21, 2017
6:30 PM
The Government Center
South Coast Air Quality Management District/
Main Auditorium
21865 Copley Drive, Diamond Bar, CA 91765
JIMMY LIN
Mayor
RUTH M. LOW
Mayor Pro Tem
CAROL HERRERA
Council Member
NANCY A. LYONS
Council Member
STEVE TYE
Council Member
City Manager Dan Fox • City Attorney David DeBerry • City Clerk Tommye Cribbins
Copies of staff reports or other written documentation relating to agenda items are on file in the Office of the City Clerk, and are
available for public inspection. If requested, the agenda will be made available in an alternative format to a person with
disability as required by Section 202 of the Americans with Disabilities Act of 1990. If you have questions regarding an agenda
item, please contact the City Clerk at (909) 839-7010 during regular business hours.
In an effort to comply with the requirements of Title II of the Americans with Disabilities Act of 1990, the City of Diamond Bar
requires that any person in need of any type of special equipment, assistance or accommodation(s) in order to communicate at
a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting.
Have online access? City Council Agendas are now available on the City of Diamond Bar’s web site at
www.diamondbarca.gov
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DIAMOND BAR CITY COUNCIL MEETING RULES
Welcome to the meeting of the Diamond Bar City Council. Meetings are open to the public and
are broadcast live on Spectrum Cable Channel 3 and Frontier FiOS television Channel 47. You
are invited to attend and participate.
PUBLIC INPUT
Members of the public may address the Council on any item of business on the agenda during
the time the item is taken up by the Council. In addition, members of the public may, during the
Public Comment period address the Council on any Consent Calendar item or any matter not on
the agenda and within the Council’s subject matter jurisdiction. Persons wishing to speak
should submit a speaker slip to the City Clerk. Any material to be submitted to the City Council
at the meeting should be submitted through the City Clerk.
Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise.
The Mayor may adjust this time limit depending on the number of people wishing to speak, the
complexity of the matter, the length of the agenda, the hour and any other relevant
consideration. Speakers may address the Council only once on an agenda item, except during
public hearings, when the applicant/appellant may be afforded a rebuttal.
Public comments must be directed to the City Council. Behavior that disrupts the orderly
conduct of the meeting may result in the speaker being removed from the Council chambers.
INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL
Agendas for regular City Council meetings are available 72 hours prior to the meeting and are
posted in the City’s regular posting locations, on DBTV Channel 3, Spectrum Cable Channel 3,
Frontier FiOS television Channel 47 and on the City’s website at www.diamondbarca.gov. A full
agenda packet is available for review during the meeting, in the foyer just outside the Council
chambers. The City Council may take action on any item listed on the agenda.
ACCOMMODATIONS FOR THE DISABLED
A cordless microphone is available for those persons with mobility impairments who cannot
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HELPFUL PHONE NUMBERS
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Computer access to agendas: www.diamondbarca.gov
General information: (909) 839-7010
Written materials distributed to the City Council within 72 hours of the City Council meeting are
available for public inspection immediately upon distribution in the City Clerk’s Office at 21810 Copley
Dr., Diamond Bar, California, during normal business hours.
THIS MEETING IS BEING BROADCAST LIVE FOR VIEWING ON
SPECTRUM CABLE CHANNEL 3 AND FRONTIER FiOS TELEVISION
CHANNEL 47, AS WELL AS BY STREAMING VIDEO OVER THE INTERNET
AND BY REMAINING IN THE ROOM, YOU ARE GIVING YOUR PERMISSION
TO BE TELEVISED. THIS MEETING WILL BE RE-BROADCAST EVERY
SATURDAY AND SUNDAY AT 9:00 A.M. AND ALTERNATE TUESDAYS AT
8:00 P.M. AND ARE ALSO AVAILABLE FOR LIVE AND ARCHIVED VIEWING
ON THE CITY’S WEB SITE AT WWW.DIAMONDBARCA.GOV.
CITY OF DIAMOND BAR
CITY COUNCIL AGENDA
November 21, 2017
CALL TO ORDER: 6:30 p.m.
PLEDGE OF ALLEGIANCE: Mayor
INVOCATION: Pastor Jake Kim,
Northminster Presbyterian Church
ROLL CALL: Herrera, Lyons, Tye, Mayor Pro Tem
Low, Mayor Lin
APPROVAL OF AGENDA: Mayor
1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS:
1.1 Presentation of Certificate Plaque to Sprouts Farmers Market, 239 S.
Diamond Bar Boulevard, as New Business of the Month for November,
2017.
2. CITY MANAGER REPORTS AND RECOMMENDATIONS:
3. PUBLIC COMMENTS:
"Public Comments" is the time reserved on each regular meeting agenda to
provide an opportunity for members of the public to directly address the Council
on Consent Calendar items or matters of interest to the public that are not
already scheduled for consideration on this agenda. Although the City Council
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values your comments, pursuant to the Brown Act, the Council generally cannot
take any action on items not listed on the posted agenda. Please complete a
Speaker's Card and give it to the City Clerk (completion of this form is voluntary).
There is a five-minute maximum time limit when addressing the City Council.
4. RESPONSE TO PUBLIC COMMENTS:
Under the Brown Act, members of the City Council may briefly respond to public
comments but no extended discussion and no action on such matters may take
place.
5. SCHEDULE OF FUTURE EVENTS:
5.1 Parks and Recreation Commission Meeting - November 23, 2017 - 7:00
p.m., Windmill Community Room, 21810 Copley Drive (Cancelled).
5.2 Thanksgiving Holiday - City Offices will be Closed November 23 - 24, 2017
in observance of the Thanksgiving Holiday. City Offices will reopen on
Monday, November 27, 2017 at 7:30 a.m.
5.3 Holiday Diamond Ride - November 24, 2017 through January 2, 2018 -
Free shuttle service to and from Diamond Bar Shopping Centers. For ages
18 years and older.
5.4 Planning Commission Meeting - November 28, 2017 - 7:00 p.m., Windmill
Community Room, 21810 Copley Drive.
5.5 General Plan Advisory Committee Meeting - November 30, 2017 - 6:30 -
8:30 p.m., Windmill Community Room, 21810 Copley Drive.
5.6 City Council Meeting - December 5, 2017 - 6:30 p.m., AQMD Government
Center Auditorium, 21865 Copley Drive.
6. CONSENT CALENDAR:
All items listed on the Consent Calendar are considered by the City Council to be
routine and will be acted on by a single motion unless a Council Member or
member of the public request otherwise, in which case, the item will be removed
for separate consideration.
6.1 APPROVAL OF CITY COUNCIL MINUTES.
6.1.a Regular Meeting of November 7, 2017.
Recommended Action: Approve.
Requested by: City Clerk
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6.2 TRAFFIC AND TRANSPORTATION COMMISSION MINUTES.
6.2.a Regular Meeting of August 10, 2017.
6.2.b Regular Meeting Minutes October 12, 2017.
Recommended Action: Receive and file.
Requested by: Public Works Department
6.3 RATIFICATION OF CHECK REGISTER DATED 11/2/2017 THROUGH
11/21/2017 TOTALING $ 2,704,629.42.
Recommended Action: Ratify.
Requested by: Finance Department
6.4 TRANSMITTAL OF THE COMPREHENSIVE ANNUAL FINANCIAL
REPORT FOR THE YEAR ENDED JUNE 30, 2017.
Recommended Action: Receive and file.
Requested by: Finance Department
6.5 FIRST AMENDMENT TO LORBEER MIDDLE SCHOOL USE
AGREEMENT AND AMENDED AND RESTATED COMMUNITY
RECREATION AGREEMENT (PAUL C. GROW PARK).
Recommended Action:
a. Approve, and Authorize the Mayor to sign, the First Amendment to the
Lorbeer Middle School Use Agreement; and,
b. Approve, and Authorize the Mayor to sign, the Amended and Restated
Community Recreation Agreement related to Paul C. Grow Park.
Requested by: City Manager
6.6 CONSULTING SERVICES AGREEMENT FOR THE DESIGN OF A NEW
L.E.D. LIGHTING SYSTEM AT PANTERA PARK
Recommended Action: Approve, and authorize the Mayor to sign, a
consultant services agreement with PENCO Engineering in the amount of
$16,530, plus a contingency amount of $4,000 to be approved by the City
Manager for a total authorization amount of $20,530.
Requested by: Public Works Department
7. PUBLIC HEARINGS: NONE.
8. COUNCIL CONSIDERATION: NONE.
9. COUNCIL SUB-COMMITTEE REPORTS AND MEETING ATTENDANCE
REPORTS/COUNCIL MEMBER COMMENTS:
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10. ADJOURNMENT:
Agenda #: 6.1
Meeting Date: November 21, 2017
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: APPROVAL OF CITY COUNCIL MINUTES.
RECOMMENDATION:
Approve.
PREPARED BY:
Attachments:
1. 6.1.a Regular Meeting of November 7, 2017.
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MINUTES OF THE CITY COUNCIL
REGULAR MEETING OF THE CITY OF DIAMOND BAR
NOVEMBER 7, 2017
CLOSED SESSION: 6:00 p.m., Room CC-8
► Conference with Legal Counsel - Anticipated Litigation -
Government Code Section 54956.9 - One (1) Potential Case
► Conference with Legal Counsel - Anticipated Litigation -
Significant Exposure to Litigation Pursuant to
Government Code Section 54956.9(2) – One (1) Potential Case
Public Comments: None Offered
CM/Fox announced that no reportable Action was taken during Closed Session.
CALL TO ORDER: Mayor Lin called the Regular City Council meeting to order
at 6:34 p.m. in the South Coast Air Quality Management District/Government Center
Auditorium, 21865 Copley Drive, Diamond Bar, CA.
PLEDGE OF ALLEGIANCE: Councilmember Lyons led the Pledge of Allegiance.
INVOCATION: Luke Pamplin, Director of Young Adults, Diamond Bar Evangelical
Free Church provided the invocation.
ROLL CALL: Council Members Herrera, Lyons, Tye, Mayor Pro Tem Low and
Mayor Lin.
Staff Present: Dan Fox, City Manager; David DeBerry, City Attorney; Ryan
McLean, Assistant City Manager; David Liu, Public Works Director; Greg Gubman,
Community Development Director; Dianna Honeywell, Finance Director; Ken Desforges,
IS Director; Marsha Roa, Public Information Manager; Amy Haug, Human Resources
/Risk Manager; Alfa Lopez, Senior Management Analyst; Anthony Santos, Assistant to
the City Manager; 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 City Council presented a Proclamation proclaiming November
25, 2017 as “Small Business” Saturday to Anthony Duarte, Executive
Director of the Regional Chamber of Commerce.
1.2 Mayor and City Council presented Certificates of Recognition to each of
the 20 Diamond Bar Restaurant Week participants as well as announcing
winners of the Restaurant Week Raffle.
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2. CITY MANAGER REPORTS AND RECOMMENDATIONS: None.
3. PUBLIC COMMENTS:
Pui-Ching Ho, Diamond Bar Library Manager, announced that on Wednesday,
November 8 at 4:00 p.m. the month of “Thankfulness” celebrates books, art
activities and fun. Children will learn about Thanksgiving traditions through a
bingo game and create a variety of gratitude themed art projects . This program is
co-sponsored by the Diamond Bar Friends of the Library. On Tuesday,
November 14 at 3:30 p.m. teens are invited to celebrate Native American
Heritage Month and create their own unique dream catcher and learn interesting
facts about the dream catcher. On Saturday, November 18th at 3:00 p.m.,
Deputy Scheller will provide tips on how to stay safe and protect person and
property during the holiday season. For these and other events, check out the
library website at http://www.colapublib.org/libs/diamondbar/
Dave Reynolds thanked C/Lyons for bringing the idea of having Diamond Bar join
the “Taking Back our Community” Coalition and for Council’s consideration and
ultimate decision to join the coalition. He requested that C/Lyons and MPT/Low
as representatives of the City of Diamond Bar within the Coalition, that they
investigate whether or not all reported crimes are being appropriately processed
so they appear in crime rate reports, whether the trends show overtime, and the
monitoring of the funded rehabilitation programs which should include evaluation
of the program’s effectiveness and an accounting of how and where the money is
spent. If the trends impact community safety and quality of life negatively and/or
if the programs do not achieve their goals, he hopes that the Coalition can also
act as a lobbying body in Sacramento and push for corrective legislative action.
He looks forward to future reports from C/Lyons and MPT/Low during the
Subcommittee Report and Councilmember Comments portion of the meeting
agenda regarding activities of the Coalition.
4. RESPONSE TO PUBLIC COMMENTS: None
5. SCHEDULE OF FUTURE EVENTS:
5.1 Veterans Day Celebration – November 8, 2017 – 9:00 a.m. to 11:00 a.m.,
Diamond Bar Center, 1600 S. Grand Avenue.
5.2 Traffic and Transportation Commission Meeting – November 9, 2017 –
7:00 p.m., Windmill Community Room, 21810 Copley Drive.
5.3 Veterans Holiday – November 10, 2017 – City offices closed Friday,
November 10th in observance of Veterans’ Day. City offices reopen
Monday, November 13, 2017 at 7:30 a.m.
5.4 Planning Commission Meeting – November 14, 2017 – 7:00 p.m.,
Windmill Community Room, 21810 Copley Drive (Canceled)
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5.5 Special Parks and Recreation Commission Meeting – November 16, 2017
– 7:00 p.m., Windmill Community Room, 21810 Copley Drive.
5.6 City Council Meeting – November 21, 2017 – 6:30 p.m.,
AQMD/Government Center Auditorium, 21865 Copley Drive.
5.7 Thanksgiving Holiday – City Offices closed Thursday, November 23 and
Friday, November 24, 2017 in observance of the Thanksgiving Holiday.
City Offices reopen on Monday, November 27, 2017 at 7:30 a.m.
5.8 Holiday Diamond Ride – Friday, November 24, 2017 until Monday,
January 2, 2018 – Free cab service to and from Diamond Bar Shopping
Centers – for ages 18 years and older.
5.9 General Plan Advisory Committee – November 30, 2017 – 6:30 to 8:30
p.m., Windmill Community Room, 21810 Copley Drive.
6. CONSENT CALENDAR: C/Herrera moved, C/Lyons 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 APPROVED CITY COUNCIL MINUTES
6.1a Study Session of October 17, 2017 – as presented.
6.1b Regular Meeting of October 17, 2017 – as presented.
6.2 RECEIVED AND FILED PLANNING COMMISSION MEETING MINUTES
of October 10, 2017 Regular Meeting.
6.3 RATIFIED CHECK REGISTER DATED October 13, 2017 through
November 2, 2017 totaling $1,901,331.05.
6.4 APPROVED TREASURER’S STATEMENT OF SEPTEMBER 2017.
6.5 APPROVED AMENDMENT NO. 3 TO CONSULTANT SERVICES
AGREEMENT WITH ITERIS, INC. FOR ON-CALL TRAFFIC SIGNAL
TIMING AND COMMUNICATION NETWORK SUPPORT.
6.6 APPROVED CONSULTANT SERVICES AGREEMENT DIMENSION
DATA TO REPLACE EXISTING VIDEO SURVEILLANCE OPERATION
MANAGER UNITS AT CITY HALL AND SYCAMORE CANYON PARK
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FOR A NOT-TO-EXCEED AMOUNT OF $57,132.92.
6.7 APPROVED FULL EXONERATION OF SURETY BOND NO. 929598539
TO COMPLETE PUBLIC STREET IMPROVEMENTS AND SURETY
BOND NO. 929598540 TO COMPLETE PUBLIC TRAFFIC SIGNAL
IMPROVEMENTS RELATED TO TRACT MAP 72295 (WILLOW
HEIGHTS DEVELOPMENT) LOCATED AT THE SOUTHEAST CORNER
OF DIMAOND BAR BOULEVARD AND BREA CANYON ROAD.
7. PUBLIC HEARINGS: None.
8. COUNCIL CONSIDERATION: None.
9. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE
REPORTS/COUNCIL MEMBER COMMENTS:
C/Lyons said it was interesting to hear from Mr. Reynolds tonight . Coincidentally,
the first item on her list tonight is a brief report on the Take Back our Community
meeting that she and staff members attended last week. Membership in the
organization continues to grow. Currently, there are some 38 agencies
represented. During the meeting there was a presentation related to a proposed
ballot initiative that is being advanced by a broad coalition of groups including the
California Grocers Association because they too are suffering from this
legislation which has resulted in increased shoplifting of larger quantities and
more expensive goods. Details for the ballot initiative are being finalized;
however, the overarching goal is to adjust Prop 57 by reclassifying certain crimes
from non-violent to violent and adjusting Prop 47 by making thefts a chargeable
felony if a person commits three or more thefts. And to fix AB109 which would
allow criminals only two flash incarcerations so that if that person commits a third
crime they would be sent back to prison. While there has b een a press
conference on this proposed initiative C/Lyons does not believe there has been
any further action. She provided the Council with a preliminary flyer and she will
keep the Council and residents posted as this matter moves forward. She
congratulated the Diamond Bar Library and the Diamond Bar Friends of the
Library for a couple of recent events including a fabulous and well attended
program for the wrap up of Read Together Diamond Bar which featured a NASA
scientist and four of the Rocket Girls who played an instrumental role in the
space race, and a very successful “gently used” purse sale from which a
significant amount of money was raised and will be used to overhaul the
children’s furniture at the library which is much needed. C/Lyons said she was
able to enjoy meals at all twenty participating restaurants. However, full
disclosure, she was forced to extend her personal restaurant week to complete
the journey. Every meal was of course, delicious. C/Lyons reminded all
Diamond Bar veterans that the Council would love to see everyone at the City
celebration at 9:00 a.m. tomorrow so that the City can honor their service.
C/Herrera attended a Foothill Transit Governing Board meeting last Friday and
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was pleased to hear the announcement that Diamond Bar’s Mayor Jimmy Lin is
one of the newest Board Members of the Governing Board as the appointee of
Supervisor Janice Hahn. Congratulations to M/Lin on his appointment. Foothill
Transit was pleased to announce emerging technology it will be using on the
electric buses. Before there were fast-charge batteries buses would travel 30
miles at which point the batteries would need to be recharged and with the new
technology the buses will run about 240 miles before needing to be recharged
which means that bus routes will be able to be extended. Foothill’s goal is that
its fleet will be 100 percent electric by 2030. At this point, the bulk of the buses
are CNG (Clean Natural Gas) and all diesel buses have been retired.
C/Tye said it was his privilege to represent Diamond Bar at the 50th Anniversary
of Evangelical Free Church in Diamond Bar. Tonight’s invocation was given by
Luke Pamplin, Director of Young Adults. It was great to recognize 50 years in
town and 50 years of making a difference in peop le’s lives. Captain Reyes, a
representative of the Fire Department, C/Lyons was there to present a Certificate
on behalf of the Church for which everyone was very appreciative, as well as,
Senator Newman, Assemblyman Chen and Supervisor Hahn’s office.
Congratulations to M/Lin on completing his year as President of the International
Chinese Transportation Professionals Association and being appointed to the
Foothill Transit Board of Directors. M/Lin is a very involved citizen and
professional. C/Tye said he hoped Veterans and everyone else would participate
in the ceremony to honor veterans at 9:00 a.m. tomorrow at the Diamond Bar
Center. He believes this is a very important time to tell veterans and current
military how much we appreciate them and everything that they do.
MPT/Low congratulated the Diamond Bar Friends of the Library for a very
successful October Read Together Diamond Bar. Under the very able
leadership of Pui Ching Ho and co-chair leadership of Rachel Kirk and Kathleen
Newe the community of Diamond Bar got to learn, see, hear, touch and
experiment with all kinds of science, nature and outer space. When she saw
photos that were taken from the various telescopes presented by the NASA
scientists, she found it amazing that the galaxy is so beautiful. It is so humbling
that everyone got to be a part of that. It was very exciting to see so many people
participate in the General Plan Community Workshop. The consultants and staff
received a lot of good input and feedback and she thanked all w ho participated
and offered their many good ideas and passion. She reminded everyone to go
online and complete the survey to help move the General Plan Update process
forward. She is very excited to announce that on December 2 nd the City will host
a new program called “Youth in Government” and the idea behind this program is
to have young people in the community meet elected officials, learn firsthand the
very many ways that public service can be accomplished and hear from those
officials what got them involved and what motivates them to do what they do.
Anyone who is interested can call the City and sign up to participate. MPT/Low
wished all veterans a happy Veterans Day who in spite of not seeking the
limelight, richly deserve our thanks for being the backbone of society and
keeping citizens safe.
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M/Lin thanked his colleagues for their kind words. MPT/Low mentioned about
the General Plan Update Community Workshop which was attended by a few of
the City Councilmembers who witnessed democracy in action. The workshop
provided a forum for the residents to be involved in the process.
Councilmembers sat quietly at the back of the room and observed a very
productive evening. M/Lin said he is very pleased that the City of Diamond Bar
has two representatives on Foothill Transit’s Governing Board. Foothill Transit is
the first transit agency in the country that will be using the electrical buses which
he finds amazing. The contractor’s facility is located about 4 miles from Diamond
Bar on the border of W alnut and the City of Industry. Any residents who are
interested in how the buses are put together can visit the facility and perhaps
realize their value enough to take advantage of public transportation. Transit
services are paid for by taxpayers and subsidized by the government. The Fare
Box Recovery ratio is less than 20 percent so please take advantage of public
transportation facilities that are available in the City of Diamond Bar.
ADJOURNMENT: With no further business to conduct, M/Lin adjourned the
Regular City Council Meeting at 7:16 p.m.
_____________________________________
TOMMYE CRIBBINS, CITY CLERK
The foregoing minutes are hereby approved this day of , 2017.
JIMMY LIN, MAYOR
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Agenda #: 6.2
Meeting Date: November 21, 2017
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: TRAFFIC AND TRANSPORTATION COMMISSION MINUTES.
RECOMMENDATION:
Receive and file.
PREPARED BY:
Attachments:
1. 6.2.a Regular Meeting of August 10, 2017.
2. 6.2.b Regular Meeting Minutes October 12, 2017.
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Agenda #: 6.3
Meeting Date: November 21, 2017
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: RATIFICATION OF CHECK REGISTER DATED 11/2/2017 THROUGH
11/21/2017 TOTALING $ 2,704,629.42.
RECOMMENDATION:
Ratify.
FINANCIAL IMPACT:
Expenditure of $ 2,704,629.42.
BACKGROUND:
The City has established the policy of issuing accounts payable checks on a weekly
basis with City Council ratification at the next scheduled City Council Meeting.
DISCUSSION:
The attached check register containing checks dated November 2, 2017 through
November 21, 2017 for $ 2,704,629.42 is being presented for ratification. All payments
have been made in compliance with the City’s purchasing policies and procedures.
Payments have been reviewed and approved by the appropriate de partmental staff and
the attached Affidavit affirms that the check register has been audited and deemed
accurate by the Finance Director.
PREPARED BY:
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Attachments:
1. 6.3.a Check Register Affidvit 11-16-17
2. 6.3.b Check Register 11-16-17
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Agenda #: 6.4
Meeting Date: November 21, 2017
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: TRANSMITTAL OF THE COMPREHENSIVE ANNUAL FINANCIAL
REPORT FOR THE YEAR ENDED JUNE 30, 2017.
STRATEGIC
GOAL:
Responsible Stewardship of Public Resources
RECOMMENDATION:
Receive and file.
FINANCIAL IMPACT:
There is adequate funding for the preparation of the annual audit and Comprehensive
Annual Financial Report (CAFR) included in the Finance Department’s Operations
Budget.
BACKGROUND/DISCUSSION:
The FY 2016-17 annual audit has been completed by the City’s independent audit firm
of Lance, Soll and Lunghard, LLP (LSL). The City’s Finance Department, in concert with
the LSL, has prepared the Fiscal Year 2016-2017 Comprehensive Annual Financial
Report (CAFR). The City’s Audit Subcommittee, which is made up of the Mayor and
Mayor Pro-Tem, has met with the audit partner of LSL twice, once to discuss the
planning and a second time to discuss the results of the audit. In the opinion of LSL,
the financial statements reflect fairly the financial position of the City as of June 30,
2017.
This report has been prepared in conformance with the requirements of GASB #34. As
a result the report format includes the Management Discussion and Analysis, Required
Supplementary Information and the Government-wide Financial Statements which
include the Statement of Net Position and Statement of Activities.
As required by GASB #45, the CAFR also includes disclosure of the City’s Other Post -
Employment Benefits (OPEB) liability. In connection with the retirement benefits for
employees provided through California Public Employees Retirement System
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(CalPERS), the City provides post-retirement health care benefits to retirees through the
CalPERS Health Benefits program. Although the retiree pays most of the cost of this
benefit, the City is required to pay a portion of this cost. The City’s OPEB obligation is
derived from this benefit. The City engaged the services of the firm Demsey, Filliger &
Associates for an updated actuarial valuation of the City’s retiree health insurance
program as of July 1, 2015. This valuation is required not less frequently than once
every two years. The City’s net OPEB obligation at June 30, 2017 is $393,213. More
information may be found in Note 8 of the CAFR.
GASB #68 requires the inclusion of Net Pension Liability in the Statement of Net
Position. As of June 30, 2017 the City reported total net pension liability of $4,607,967.
More information may be found in Note 7 of the CAFR.
The 2016-17 CAFR includes the fund balance reserve reporting methodology set forth
in GASB #54. The City Council approved a Fund Balance Policy on June 7, 2011 which
established an amount of $4.5 million (three months of General Fund operational
expenditures) as a formal commitment of fund balance to be set aside as an emergency
contingency for Federal, State or Local emergencies. The total General Fund reserve
balance as of June 30, 2017 is $24.9 million.
The Finance Department has submitted the CAFR to the Government Finance Officers
Association (GFOA) for review for the Certificate of Achievement for Excellence in
Financial Reporting program. The City has been honored to receive this award for the
past twenty-two consecutive years.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 6.4.a Diamond Bar CAFR
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CITY OF DIAMOND BAR, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2017
Prepared by:
Finance Department
Dianna Honeywell
Director of Finance
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CITY OF DIAMOND BAR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................. i
GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................... v
Organization Chart ................................................................................................................................. vi
List of Elected and Administrative Officials ........................................................................................... vii
FINANCIAL SECTION
Independent Auditors’ Report ................................................................................................................. 1
Management's Discussion and Analysis (Required Supplementary Information) .................................. 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position ........................................................................................................ 15
Statement of Activities .............................................................................................................. 16
Fund Financial Statements
Balance Sheet – Governmental Funds .................................................................................... 17
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position .............................................................................................. 18
Statement of Revenues, Expenditures, and Changes in Fund Balances ................................ 19
Reconciliation of Statement of Revenues, Expenditures and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities ............................. 20
Statement of Net Position – Proprietary Funds ....................................................................... 21
Statement of Revenues, Expenses, and Changes in Fund Net
Position – Proprietary Funds .................................................................................................... 22
Statement of Cash Flows – Proprietary Funds ........................................................................ 23
Statement of Fiduciary Net Position – Fiduciary Funds ........................................................... 24
Statement of Changes in Fiduciary Net Position – Fiduciary Funds ....................................... 25
Notes to Basic Financial Statements .......................................................................................... 27
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CITY OF DIAMOND BAR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
Page(s)
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information ........................................................................... 56
Budgetary Comparison Information:
Budgetary Comparison Schedule – General Fund ............................................................. 57
Schedule of Proportionate Share of the Net Pension Liability .................................................... 58
Schedule of Plan Contributions ................................................................................................... 59
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds ..................................................... 60
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds ....................................................................... 66
Budgetary Comparison Schedules - Special Revenue Funds:
State Gas Tax Fund ................................................................................................................. 71
Proposition A Transit Fund ...................................................................................................... 72
Proposition C Transit Fund ..................................................................................................... 73
Transportation Grant Fund ...................................................................................................... 74
Integrated Waste Management Fund ...................................................................................... 75
Traffic Improvement Fund ........................................................................................................ 76
Sewer Mitigation Fund ............................................................................................................. 77
Air Quality Improvement Fund ................................................................................................. 78
MTA Grant Fund ...................................................................................................................... 79
Beverage Center Recycling Grant Fund .................................................................................. 80
Used Oil Block Grant Fund ...................................................................................................... 81
Park and Facility Development Fund ....................................................................................... 82
Community Development Block Grant (CDBG) Fund ............................................................. 83
Citizens Option for Public Safety (COPS) Fund ...................................................................... 84
California Law Enforcement Equipment Program (CLEEP) Fund ........................................... 85
Landscape Maintenance District Fund ..................................................................................... 86
Measure R Local Return Fund ................................................................................................. 87
PEG Fees Fund ....................................................................................................................... 88
Waste Hauler Fund .................................................................................................................. 89
Budgetary Comparison Schedule – Capital Projects Fund:
Capital Improvement Funds ..................................................................................................... 90
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CITY OF DIAMOND BAR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
Page(s)
Budgetary Comparison Schedule - Debt Service Funds:
Public Financing Authority........................................................................................................ 91
Combining Statement of Net Position – Internal Service Funds ................................................. 92
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Position – Internal Service Funds ................................................................................ 93
Combining Statement of Cash Flows – Internal Service Funds .................................................. 94
STATISTICAL SECTION
Financial Trends:
Net Position by Component - Last Ten Fiscal Years .................................................................. 96
Changes in Net Position - Last Ten Fiscal Years........................................................................ 98
Fund Balances of Governmental Funds - Last Ten Fiscal Years ............................................. 101
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years .......................... 102
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years ............... 105
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ....................................... 106
Top 10 Property Taxpayers - Current Fiscal Year and Ten Fiscal Years Ago .......................... 108
Secured Property Tax Levies and Collections – Last Ten Fiscal Years ................................... 109
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ................................................... 111
Direct and Overlapping Debt ..................................................................................................... 112
Computation of Legal Debt Margin - Last Ten Fiscal Years ..................................................... 114
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Calendar Years .......................................... 115
Taxable Sales by Category - Current Fiscal Year and Nine Fiscal Years Ago ......................... 116
Operating Information:
Full-Time Equivalent City Employees by Function - Last Ten Fiscal Years ............................. 117
Operating Indicators by Function - Last Ten Fiscal Years ........................................................ 118
Capital Asset Statistics by Function - Last Ten Fiscal Years .................................................... 119
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Honorable Mayor and Council Members
City of Diamond Bar
Diamond Bar, California
It is an honor to submit to you the Comprehensive Annual Financial Report
(CAFR) of the City of Diamond Bar for the fiscal year ended June 30, 2017. This
report consists of management’s representations concerning the finances of the
City. Consequently, responsibility for both the accuracy of the presented data
and the completeness and fairness of the presentation, including all disclosures,
rests with the City’s management. To provide a reasonable basis for making
these representations, management of the City has established a
comprehensive internal control framework that is designed both to protect the
City’s assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the City’s financial statements in conformance
with generally accepted accounting principles (GAAP). Because the cost of
internal controls should not outweigh their benefits, the City’s comprehensive
framework of internal controls has been designed to provide assurance that the
financial statements will be free from misstatement. As management, we assert
that, to the best of our knowledge and belief, this financial report is complete and
reliable in all material aspects.
The City’s financial statements have been audited by Lance, Soll, & Lunghard,
LLP, a firm of certified public accountants. The goal of the independent audit is
to provide reasonable assurance that the financial statements of the City for fiscal
year ended June 30, 2017, are free of material misstatement. The independent
audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used
and significant estimates made by management; and evaluating the overall
financial statement presentation. The independent auditor concluded based
upon the audit that there was a reasonable basis for rendering an unmodified
opinion that the City’s financial statements for the fiscal year ended June 30,
2017, were fairly presented in conformity with GAAP. The independent auditor’s
report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and
analysis to accompany the basic financial statements in the form of
Management’s Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement MD&A and should be read in conjunction with it. The
City’s MD&A can be found immediately following the report of the independent
auditors.
PROFILE OF THE CITY OF DIAMOND BAR
The City of Diamond Bar was incorporated on April 18, 1989, and is located
at the eastern edge of Los Angeles County in the East San Gabriel Valley.
Diamond Bar is a relatively young residential community of about 57,000,
situated among the meandering hills and valleys of Brea Canyon. Many
desired services can be found in Diamond Bar's shopping and business
centers.
City of Diamond Bar
21810 Copley Drive Diamond Bar, CA 91765-4178
(909) 839-7000 Fax (909) 861-3117 www.DiamondBarCA.gov
Jimmy Lin
Mayor
Ruth M. Low
Mayor Pro Tem
Carol Herrera
Council Member
Nancy A. Lyons
Council Member
Steve Tye
Council Member
November 7, 2017
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Recreational opportunities within the City include more than 75 acres of developed park facilities,
hiking trails, a community center, an 18-hole public golf course and more than 370 acres of
undeveloped publicly owned open space.
Diamond Bar is also strategically located at the junction of the SR-57 and SR-60 freeways with
easy access to the I-10 and SR-71 freeways. This makes Diamond Bar a desirable and
convenient location to live and work within close proximity to Los Angeles, Orange, Riverside and
San Bernardino counties.
Diamond Bar is a General Law city and operates under the council-manager form of government.
Policy making and legislative authority are vested in a five member City Council. The City Council
is responsible, among other things, for passing ordinances, adopting the budget, appointing
committees and task forces, and hiring both the City Manager and contracting for City Attorney
services. The Council Members are elected on a non-partisan basis and serve four-year
staggered terms, with elections held every other year. Each December, the City Council selects
a Mayor and Mayor Pro Tem from its membership. The City Manager is responsible for
overseeing the day-to day operations of the City, and for appointing the heads of the various
departments.
The City of Diamond Bar operates primarily as a “contract city” utilizing agreements with other
governmental agencies, private sector firms and individuals to provide many of its services. This
includes police services, animal services, building and safety services, engineering, road
maintenance and landscape maintenance.
The Los Angeles County Fire District provides fire protection, which is independent of the City.
Los Angeles County also provides library services through a Library District as well as sewer and
sanitation services through a Sanitation District. Funds for these services are collected through
property tax bills and are disbursed directly by the Los Angeles County Tax Collector's Office to
those entities.
Water services for the City are provided by the Walnut Valley Water District. Refuse collection is
provided by private waste collection companies. Additionally, schools are provided by both the
Walnut Valley Unified School District and the Pomona Unified School District. Accordingly, none
of these activities are included in this report.
ECONOMIC CONDITION AND OUTLOOK
Fiscal year 2016/17 saw sustained improvement in the national, state and local economies.
Unemployment rates have continued to come down and consumer spending was on the rise. The
housing market has also remained strong.
Fiscal year 2016/17 was a year of continued growth for the City of Diamond Bar. However, it was
also another year of closely monitoring revenues, while holding costs to prior year levels wherever
possible. The General Fund reserves increased by $1 million (net of a restatement of
<-$402,436>) during FY 2016/17 with the unassigned fund balance growing to $20.4 million and
total General Fund reserves coming in at $24.9 million. These reserve figures represent 95.4%
and 116.7%, respectively, of total General Fund expenditures.
The largest revenue source in the City, Property Tax revenue, was up 4.9%. Homeowners took
advantage of the strong housing market by selling their properties at a gain. Property transfers
during FY 16/17 numbered 502 vs. 844 during the previous fiscal year. The most recent average
home price (August 2017) was $794,000 while the median price was $700,000. Home values in
the City during FY 2016/17 finally rose to a level higher than the previous peak price which was
in 2006. Assessed valuations citywide increased by 4.35% while the countywide assessed
valuations increase by 6.0%.
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The City’s sales tax base grew with an increase in revenue of 3.6% over last year. City officials
have been working diligently toward its economic development goal to diversify its sales tax base.
FY 2016/17 saw the addition of several new businesses which have provided additional and
significant sales tax revenue to the City.
As the City looks forward to FY 2017/18 there are many exciting projects on the horizon. New
retail and restaurant options are under construction at the former K-Mart property with openings
anticipated in FY 2017/18. Sprouts Market, one of the new major tenants in the center held their
grand opening in October 2017. Residents will continue to see additional nationally known retail
and restaurant businesses open their doors in FY 2017/18. A new housing development, South
Point, is well under construction bringing 99 new higher-end single family homes to the City. A
new 6.9 gross-acre neighborhood park will also be part of that new neighborhood which is also
expected to be completed in FY 2017/18. Finally, the City’s first comprehensive update to the
General Plan since incorporation is well underway. This multi-year effort has allowed the current
residents of the City provide input as to their vision of the City for the next 20 years. It has been
a very interactive, dynamic and exciting process that will continue into next fiscal year.
The City’s future economic health is being secured by building healthy reserves through fiscally
conservative budgets and policies in addition to aggressively pursuing economic development
opportunities.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City of Diamond Bar for
its comprehensive annual financial report for the fiscal year ended June 30, 2016. The Certificate
of Achievement is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized comprehensive annual financial report, with contents that
conform to program standards. The CAFR must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Diamond Bar has
received the Certificate of Achievement for the last twenty-two consecutive years (fiscal years
ended 1995 through 2016). We believe our current report continues to meet the Certificate of
Achievement Program’s requirements and we will be submitting it to GFOA to determine its
eligibility for another certificate.
REPORTING ENTITY AND ITS SERVICES
This Comprehensive Annual Financial Report includes all funds of the City. The City directly
provides a limited range of services and contracts for several other services. The City's significant
reliance on contracted services has the benefit of reducing expenses to the citizens of the City of
Diamond Bar while simultaneously providing the City with a high degree of flexibility in responding
to changing economic conditions. Contracted services include police protection, building and
safety, street maintenance, park maintenance, capital improvement projects, animal control,
attorney services and engineering. Staff provided services include: community development
(which includes planning, economic development, building and safety management, and
neighborhood improvement), public works (which includes engineering, capital projects
administration, street maintenance contract management, traffic and transportation matters,
engineering contract management, park maintenance, landscape maintenance and solid waste
contract management), parks & recreation (which includes senior services, recreation services,
community events and community center operation), public information, subsidized transit ticket
sales, grant administration, financial management and administrative management. All of these
activities are included in this report.
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INTERNAL CONTROLS
The City of Diamond Bar’s accounting system has been developed by giving consideration to the
adequacy of internal accounting controls. Internal accounting controls are implemented by the
City to provide reasonable assurance that assets are safeguarded against loss from unauthorized
use or disposition; and that the City’s financial records used for preparing financial statements
are maintained in a reliable fashion. The concept of reasonable assurance recognizes that the
cost of these controls should not exceed the benefits derived from them. The City’s internal
controls accomplish these objectives.
ACKNOWLEDGEMENTS
The preparation of this Comprehensive Annual Financial Report was made possible by the
dedicated service and excellence found within the City's Finance Department staff, and through
the cooperation of the entire City staff. Each City staff member has my sincere appreciation for
their cooperation and contributions in the preparation of this Report.
I would like to thank Dianna Honeywell, Finance Director, for her prudent fiscal stewardship. In
addition, I would also like to thank our independent auditor, Lance, Soll, and Lunghard, L.L.P.,
who provided expertise and advice in the preparation of the City's Comprehensive Annual
Financial Report.
In closing, without the leadership and support of the City Council of the City of Diamond Bar, the
preparation of this Report would not have been possible.
Sincerely,
Daniel Fox
City Manager
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Diamond Bar Residents City Council City Clerk xCouncil Support xElections xRecords Mgmt. Public Safety xAnimal Control xCrossing Guards xEmergency Prep. xLA Co. Fire xLA Co. Sheriff Community Services xDB Center xLLADs xRecreation xParks & Facility Maintenance xSenior Services xSpecial Events Deputy City Manager xEnvironmental Services xWaste Hauler Contracts Public Financing Authority City Commissions Traffic & Transportation Parks & Recreation Planning City Manager xCouncil Goals & Objectives xEconomic Development City Attorney Public Information xMarketing xPublic Education xPublic Relations Human Resources xRecruitment xBenefits Admin. xWorker’s Comp. xEmployee Relations Finance xAccounting xBudget xFinancial Reporting xPayroll xTransit Sales Public Works/ Engineering xCIP xDevelopment & Engineering Plan Check/Inspection xRoad Maintenance xTraffic & Transportation Information Systems xIT Infrastructure xE-Government xGIS xTelecom Community Development xPlanning xBuilding & Safety xNeighborhood Imp. vi
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CITY OF DIAMOND BAR
ELECTED AND ADMINISTRATIVE OFFICIALS
FISCAL YEAR 16-17
Jimmy Lin
Ruth Low
Carol Herrera
Nancy Lyons
Mayor
Mayor Pro Tem
Councilmember
Councilmember
Councilmember Steve Tye
City Manager James DeStefano
Assistant City Manager Ryan McLean
City Clerk Tommye Cribbins
Director of:
Parks & Recreation Vacant
Community Development Greg Gubman
Finance Dianna Honeywell
Information Systems Ken Desforges
Public Works David Liu
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Diamond Bar, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of City of Diamond Bar, California, (the City) as of and for
the year ended June 30, 2017, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022
An Association of Independent Accounting Firms
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To the Honorable Mayor and Members of the City Council
City of Diamond Bar, California
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the City of Diamond Bar, California, as of June 30, 2017, and the respective changes
in financial position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the budgetary comparison schedules for the general fund, the schedule of
proportionate share of the net pension liability and the schedule of plan contributions be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements and schedules and statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
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To the Honorable Mayor and Members of the City Council
City of Diamond Bar, California
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 7, 2017, on our consideration of the City’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City’s internal control over financial reporting and compliance.
Brea, California
November 7, 2017
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Management’s Discussion and Analysis
As management of the City of Diamond Bar, we offer readers of the City of Diamond Bar’s
financial statements this narrative overview and analysis of the financial activities of the
City of Diamond Bar for the fiscal year ended June 30, 2017. We encourage readers to
consider the information presented here in conjunction with additional information that we
have furnished in our letter of transmittal.
Financial Highlights
The total revenues and other financing sources from all sources equaled
$30,451,044.
The total cost of all City programs equaled $36,317,223.
The assets and deferred outflows of the City of Diamond Bar exceeded its liabilities
and deferred inflows at the close of the fiscal year by $387,402,734 (net position).
Of this amount, $23,047,078 represents unrestricted net position may be used to
meet the City’s ongoing obligations to citizens and creditors.
As of the close of the current fiscal year, the City of Diamond Bar’s governmental
funds reported combined ending fund balances of $30,221,001, a slight decrease
of $108,517 in comparison with the prior year. Approximately $20.1 million of the
$30.2 million is available for spending at the City’s discretion.
At the end of the current fiscal year, unrestricted fund balance for the general fund
was $20,379,854, or 95.4% of the amount of general fund expenditures. The
General Fund unrestricted balance of $20.4 million is in addition to a $4.5 million
reserve for emergencies as established by City Council resolution.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of
Diamond Bar’s basic financial statements. The City of Diamond Bar’s basic financial
statements comprise three components: 1) government-wide financial statements,
2) fund financial statements, and 3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements – The government –wide financial statements
are designed to provide readers with a broad overview of the City of Diamond Bar’s
finances, in a manner similar to a private-sector business.
The statement of net position presents financial information on all of the City of
Diamond Bar’s assets, liabilities and deferred inflows/outflows of resources with the
difference reported as net position. Over time, increases or decreases in net position
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may serve as a useful indicator of whether the financial position of the City of
Diamond Bar is improving or deteriorating.
The statement of activities presents information showing how the City’s net position
changed during the most recent fiscal year. All changes in net position are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of
Diamond Bar that are principally supported by taxes and intergovernmental revenues
(governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities).
The governmental activities of the City of Diamond Bar include general government,
public safety, highways and streets, community development, and parks and recreation.
The City of Diamond Bar currently has no business-type activities or enterprise funds.
The government-wide financial statements include not only the City of Diamond Bar itself,
but also a legally separate financing authority. Although legally separate, the
Diamond Bar Financing Authority is included because the City is financially accountable
for it.
Fund financial statements – A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or
objectives. The City of Diamond Bar, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds and fiduciary funds.
Governmental Funds – Governmental funds are used to account for essentially the
same functions reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable
resources, available at the end of the fiscal year. Such information may be useful in
assessing the near-term financing requirements necessary to finance City programs.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the
government-wide financial statements. By doing so, readers may better understand the
long-term impacts of the City’s near-term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
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The City of Diamond Bar adopts an annual appropriated budget for its general fund. A
budgetary comparison statement has been provided for the general fund to demonstrate
compliance with this budget.
Proprietary Funds – The type of proprietary funds that the City maintains are internal
service funds that are used to allocate costs internally among the various functions of the
City. The City of Diamond Bar uses these funds to account for its liability insurance costs
and vehicle, building and computer replacement costs. Because these services
predominantly benefit governmental rather than business-type functions, they have been
included within governmental activities within the government-wide financial statements.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit
of parties outside of the government. Fiduciary funds are not reported in the
government-wide financial statements because the resources of those funds are not
available to support the City’s own programs. The accounting used for fiduciary funds is
much like that used for proprietary funds.
The City of Diamond Bar maintains one fiduciary fund which is the Other
Post-Employment Benefits (OPEB) Trust Fund. This fund is used to report resources
held in trust for retiree’s post-employment health insurance premiums.
Notes to the Financial Statements – The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund
financial statements.
Other Information – In addition to the basic financial statements and accompanying
notes, this report also presents certain required supplementary information concerning
the City’s budgetary control and accounting and expenditures in excess of appropriations.
Government-wide Financial Analysis
As noted earlier, net position over time, may serve over time as a useful indicator of the
City’s financial position. The City of Diamond Bar’s assets and deferred outflows
exceeded liabilities and deferred inflows by $387,402,734 at the close of 2017. (see Table
1)
By far the largest portion of the City’s net position (92.6%) is its investment in capital
assets (e.g., land, buildings, infrastructure, machinery, equipment, and construction in
progress), less the related outstanding debt used to acquire those assets. The City of
Diamond Bar uses these capital assets to provide services to its citizens; consequently,
these assets are not available for future spending. Although the City’s investment in its
capital assets is reported net of related debt, it should be noted that the resources needed
to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
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Table 1
CITY OF DIAMOND BAR’S
Statement of Net Position
2017 2016
Current and other assets $37,879,109 $38,010,700
Capital assets 368,573,699 373,438,626
Total Assets 406,452,808 411,449,326
Deferred Outflows 1,785,323 1,169,894
Long-term debt outstanding 15,457,341 14,554,269
Other Liabilities 5,034,135 4,292,550
Total Liabilities 20,491,476 18,846,819
Deferred Pension Related Items 343,921 503,488
Net position:
Net investment in capital assets 358,765,476 363,216,277
Restricted 5,590,180 7,309,644
Unrestricted 23,047,078 22,742,992
Total Net Position $387,402,734 $393,268,913
Governmental Activities
The City’s net position decreased by $5,866,179. This reason for this overall decrease
is due primarily to depreciation expense.
At the end of fiscal year 2017 the City reports an increase of $304,000 in the unrestricted
net position from the prior fiscal year. The City has continually expended its resources
conservatively in anticipation of economic downturns and future capital needs which has
resulted in being able to end the year with $23,047,078 in Unrestricted Net Position.
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Table 2
City of Diamond Bar’s
Changes in Net Position
2017 2016
Revenues:
Program revenues:
Charges for services $7,569,296 $9,027,647
Operating grants and contributions 3,844,192 3,687,015
Capital grants and contributions 359,669 1,455,770
General Revenues
Property taxes 4,951,033 4,665,140
Transient occupancy taxes 923,527 994,476
Sales Taxes 4,789,172 4,598,858
Franchise Taxes 1,320,617 1,431,513
Other taxes 394,961 523,015
Motor vehicle in lieu 5,757,423 5,411,143
Use of money & property 58,160 524,918
Other 482,994 703,457
Total revenues 30,451,044 33,022,952
Expenses:
General Government 6,627,894 5,812,525
Public Safety 6,586,188 6,216,279
Highways and Streets 14,178,723 11,966,721
Community Development 3,231,764 2,127,206
Parks, Recreation and Culture 5,164,413 6,137,787
Contribution to OPEB Trust 84,761 84,761
Interest and Fiscal Charges 443,480 455,700
Total expenses 36,317,223 32,800,979
Increase(Decrease) in net position (5,866,179) 221,973
Net position - beginning 393,268,913 395,162,740
Restatement of Net Position - (2,115,800)
Net position - ending $387,402,734 $393,268,913
Revenues
In the Statement of Activities, the City’s total revenues were $30.5 million, while the total
cost of all programs and services was $36.3 million. Revenues this fiscal year were
7.79% lower than those of the prior year. There were increases in some areas and
decreases in others. The following are highlights of some of the major differences:
x Property Tax revenues were up 6.1% from FY15-16. The housing market
continued to improve during FY 16-17 which afforded greater
inflation/Proposition 13 based adjustments. Housing sales also continued to
increase which allowed the County to increase overall assessed valuations by
6.0% during 2017 while Diamond Bar’s assessed valuations were up by 4.3%
during 2017.
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x Transient Occupancy Taxes were slightly lower by $71,000 or 7.1% in
FY 16-17. The previous year’s TOT revenue was the City’s highest recorded
amount in this category.
x Sales tax revenues were up about 4.1% due to continued improvement in the
local economy and new businesses within the City. Last year’s figure includes
a one-time final payment of the triple flip portion of sales tax.
x Investment Income increased by 29.4%, excluding the fair market value
adjustment of $<404,133>, due to improving investment yields available in the
bond market coupled with more of the City’s portfolio being further diversified
into higher yielding investments such as highly rated corporate bonds and
California municipal bonds. The Local Agency Investment Fund (LAIF) rate also
continued to show some improvement and ended the fiscal year at 0.98%. By
the end of FY 16/17 the City’s overall investment yield increased from 1.297%
in FY 2015/16 to 1.47% in FY 2016/17.
Expenses
Once again this year, the City has continued to be very diligent in controlling growth in
expenses. This year expenses for the City totaled $36.3 million which is approximately
$3.5 million, or 10.7% higher than the previous fiscal year. This increase was due
primarily due to a significant uptick in capital improvement projects. The changes in
various categories are as follows:
x There was an increase in General Government expenses of approximately 13.8%
this year. This was due primarily to higher capital outlay in this category this year
compared to last year.
x There was an increase in Public Safety expenses of approximately 6.0% this year.
x There was a decrease in Parks & Recreation expenses in the amount of $973,000.
This is due to the reorganization of the department during FY 2016/17. The Parks
Maintenance division was moved under the Public Works umbrella for the first time
during FY 2016/17.
x The Streets and Highways category increased this year by $2.2 million. This is
due to an increase in the number of Capital Improvement projects completed
during the fiscal year.
x Community Development expenses were higher in 2016/17 by $1.1 million. The
increase reflects an increase in building permit activity and the commencement of
the City’s General Plan Update.
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Financial Analysis of the City’s Funds
As noted earlier the City of Diamond Bar uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental funds - The focus of the City of Diamond Bar’s governmental funds is to
provide information on near-term inflows, outflows, and balances of spendable resources.
Such information is useful in assessing the City’s financing requirements. In particular,
unassigned fund balance may serve as a useful measure of a City’s net resources
available for spending at the end of the fiscal year.
At June 30, 2017, the City of Diamond Bar’s governmental funds reported combined
ending fund balances of $30,221,001, a slight decrease of $108,517 in comparison with
the prior year. Approximately 66.5% of this amount ($20,089,713) constitutes unassigned
fund balance, which is available for spending at the government’s discretion. The
remainder of the fund balance is either nonspendable, restricted or assigned to indicate
that it is 1) not in spendable form ($42,108), 2) restricted for particular purposes
($5,589,960 or 3) committed for particular purposes ($4,500,000).
The general fund is the chief operating fund of the City. At the end of the current fiscal
year, the unassigned fund balance of the general fund was $20,379,854, while the total
fund balance was $24,921,962. As a measure of the general fund’s liquidity, it may be
useful to compare both unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 95.4% of total general fund
expenditures, while total fund balance represents 116.7% of the same amount.
Since the City’s incorporation in 1989, the City has been fiscally conservative contributing
to healthy fund balance reserves. Several years ago the City chose to fund major
maintenance projects from General Fund reserves when other funds were not available
for this purpose. This fiscal year General Fund Reserves increased $995,153 (after a
restatement of <$402,436>).
Factors contributing to the change in General Fund ending fund balance are as follows:
General Fund revenues were down $919,000 from FY15/16. The largest decrease
was in the Licenses and Permits category ($963,000) which is primarily attributed
to a one-time write off last year, which increased the Developer Fees category, of
unclaimed developer deposits during FY 2015/16.
Costs were higher this year in the General Fund by $722,600 (3.5%) as compared
to last year. There were notable increases in the Community Development, Public
Safety and Public Works category offset by lower costs in General Government
and Parks & Recreation.
Conservative expenditure budgets over the years have contributed to the City’s
general fund healthy fund balance reserve. This includes a contract city business
model which aids the City in containing costs.
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General Fund Budgetary Highlights
Original revenue budget projections were increased during the year by 1.8% to reflect an
increase in sales tax, licenses & permits and intergovernmental revenues. The actual
revenue came in lower than anticipated by $617,000. This is due to higher than
anticipated sales tax offset by the fact that the mark to market adjustment on the City’s
investments this year was negative and transfers into the General Fund were lower than
anticipated.
General Fund appropriations were increased during the year by $3,967,213 or 14.9%
from the original budget to the amended budget. The final expenditures actually came in
$7,352,662 less than the amended budget due primarily to fewer projects being
completed therefore lower transfers out of the General Fund. These projects have been
carried over to the new fiscal year.
Capital Asset and Debt Administration
Capital assets - The City of Diamond Bar’s investment in capital assets for its
governmental activities as of June 30, 2017 amounts to $368,573,699
(net of accumulated depreciation). This investment in capital assets includes land, Right
of Way, buildings and improvements, furniture and fixtures, vehicles and equipment,
infrastructure and construction in progress.
Table 3
2017 2016
Land $5,633,624 $5,633,624
Right of Way 265,614,104 265,614,104
Buildings and Improvements 20,308,031 19,236,765
Furniture and Fixtures 201,173 292,200
Vehicles & Equipment 763,278 934,779
Infrastructure 73,275,812 77,379,900
Construction in Progress 2,777,677 4,347,254
$368,573,699 $373,438,626
City of Diamond Bar
Capital Assets
(net of depreciation)
The City’s capital assets decreased in value $4,864,927 during FY16/17. This decrease
was due to depreciation expense and lower construction in progress than in previous
years.
Construction in progress at the end of the year included eleven projects in various stages
of design or construction. The ten projects equaling $3,815,819 include street
rehabilitation and enhancement projects, traffic mitigation projects, median modification
and various park projects.
Additional information on the City’s capital assets can be found in note 4.
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Long-term debt – At the end of the current fiscal year, the City of Diamond Bar’s total
long-term debt equaled $10,456,161. The following table shows the breakdown of the
long-term debt outstanding:
Variable Rate Lease Revenue Bonds
(backed by the Public Financing
Authority)9,635,000$
Unamortized Bond Premium 173,223
Compensated Absences 647,938
10,456,161$
Outstanding Long Term Debt at Year-end
See footnote 5 for additional information on the City’s long-term liabilities as of
June 30, 2017.
Economic Factors and Next Year’s Budgets and Rates
While the City maintains a diverse and upscale housing stock, the City’s economy is
equally dependent on commercial and retail revenues. The City’s concentration on
maintaining and attracting new business clientele is of utmost importance.
The City’s 2017/18 budget is a fiscally conservative budget. As the economy continues
to improve, anticipated revenues in the General Fund reflect moderate yet realistic
growth. The ongoing operations budget has been maintained at the status quo as much
as possible. This budget presents an operating plan that permits the City to live within a
reasonable estimate of revenues while continuing to provide community programs and
services to the residents of the City of Diamond Bar.
The City has made a conscientious decision to use some general fund balance reserves
for economic development purposes. As a result, the FY 2017/18 budget includes an
appropriation for economic development. It is anticipated that these efforts will continue
to be rewarded in the near future with the development of several new retail spaces.
Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, and
creditors with a general overview of the City of Diamond Bar’s finances and to show the
City’s accountability for the money it receives. If you have questions about this report or
need additional financial information, contact the City’s Finance Department, at the City
of Diamond Bar, 21810 Copley Drive, Diamond Bar, California 91765.
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CITY OF DIAMOND BAR
STATEMENT OF NET POSITION
Governmental
Activities
Assets:
Cash and investments 35,343,237$
Receivables:
Accounts 509,078
Notes and loans 370,704
Accrued interest 127,936
Prepaid costs 42,108
Due from other governments 1,484,891
Cash with fiscal agent 80
Due from employees 1,075
Capital assets not being depreciated 274,025,405
Capital assets, net of depreciation 94,548,294
Total Assets 406,452,808
Deferred Outflows of Resources:
Deferred pension related items 1,785,323
Total Deferred Outflows
of Resources 1,785,323
Liabilities:
Accounts payable 2,843,151
Accrued liabilities 276,112
Accrued interest 34,546
Unearned revenue 162,661
Deposits payable 1,265,187
Due to other governments 452,478
Noncurrent liabilities:
Due within one year 973,425
Due in more than one year 9,482,736
Net pension liability 4,607,967
OPEB liability 393,213
Total Liabilities 20,491,476
Deferred Inflows of Resources:
Deferred pension related items 343,921
Total Deferred Inflows
of Resources 343,921
Net Position:
Net investment in capital assets 358,765,476
Restricted for:
Community development projects 2,066,650
Public safety 243,642
Public works 3,095,734
Capital projects 184,074
Debt service 80
Unrestricted 23,047,078
Total Net Position 387,402,734$
JUNE 30, 2017
See Notes to Financial Statements 15
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CITY OF DIAMOND BAR
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2017
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Primary Government:
Governmental Activities:
General government 6,712,655$ 811,846$ -$ -$ (5,900,809)$
Public safety 6,586,188 460,325 168,740 - (5,957,123)
Community development 3,231,764 2,077,810 222,370 - (931,584)
Parks, recreation and culture 5,164,413 1,544,002 406,119 689 (3,213,603)
Highways and Streets 14,178,723 2,675,313 3,046,963 358,980 (8,097,467)
Interest on long-term debt 443,480 - - - (443,480)
Total Primary Government 36,317,223$ 7,569,296$ 3,844,192$ 359,669$ (24,544,066)
General Revenues:
Taxes:
Property taxes, levied for general purpose 4,951,033
Transient occupancy taxes 923,527
Sales taxes 4,789,172
Franchise taxes 1,320,617
Other taxes 394,961
Motor vehicle in lieu - unrestricted 5,757,423
Use of money and property 58,160
Other 482,994
Total General Revenues 18,677,887
Change in Net Position (5,866,179)
Net Position at Beginning of Year 393,268,913
Net Position at End of Year 387,402,734$
Program Revenues
Net (Expenses)
Revenue and
Changes in Net
Position
See Notes to Financial Statements 16
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CITY OF DIAMOND BAR
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2017
Capital Projects
Funds
Other Total
Governmental Governmental
General Funds Funds
Assets:
Pooled cash and investments 27,100,597$ 236,446$ 5,578,091$ 32,915,134$
Receivables:
Accounts 324,411 - 182,459 506,870
Notes and loans - - 370,704 370,704
Accrued interest 127,936 - - 127,936
Prepaid costs 42,108 - - 42,108
Due from other governments 1,041,380 310,550 132,961 1,484,891
Due from other funds 48,789 - - 48,789
Due from employees 1,075 - - 1,075
Restricted assets:
Cash and investments with fiscal agents - - 80 80
Total Assets 28,686,296$ 546,996$ 6,264,295$ 35,497,587$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 2,123,833$ 526,587$ 191,163$ 2,841,583$
Accrued liabilities 265,702 - 10,410 276,112
Unearned revenues 109,612 - 53,049 162,661
Deposits payable 1,265,187 - - 1,265,187
Due to other governments - - 370,704 370,704
Due to other funds - - 48,789 48,789
Total Liabilities 3,764,334 526,587 674,115 4,965,036
Deferred Inflows of Resources:
Unavailable revenues - 310,550 - 310,550
Total Deferred Inflows of Resources - 310,550 - 310,550
Fund Balances:
Nonspendable:
Prepaid costs 42,108 - - 42,108
Restricted for:
Community development projects - - 2,066,650 2,066,650
Public safety - - 243,642 243,642
Highways and streets - - 3,095,734 3,095,734
Capital Projects - - 184,074 184,074
Debt service - - 80 80
Committed to:
Emergency contingencies 4,500,000 - - 4,500,000
Unassigned 20,379,854 (290,141) - 20,089,713
Total Fund Balances 24,921,962 (290,141) 5,590,180 30,222,001
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 28,686,296$ 546,996$ 6,264,295$ 35,497,587$
Capital
Improvement
Fund
See Notes to Financial Statements 17
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CITY OF DIAMOND BAR
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2017
Fund balances of governmental funds 30,222,001$
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets net of depreciation have not been included as financial resources
in governmental fund activity.368,227,026
Deferred outflows related to pension items:
Adjustments due to difference in proportions 518,610$
860,978
1,444
Difference between expected and actual experiences 17,485
386,806 1,785,323
Long-term debt, compensated absences, other post employee benefit obligation
and net pension liability that have not been included in the governmental fund
activity:
Bonds payable (9,635,000)$
Unamortized bond premiums/discounts (173,223)
Compensated Absences (647,938)
Other post employment benefit obligation (393,213)
Net pension liability (4,607,967) (15,457,341)
Accrued interest payable for the current portion of interest due on
bonds has not been reported in the governmental funds. (34,546)
Deferred inflows related to pension items:
Adjustment due to difference in proportions (166)$
Difference between expected and actual experiences (4,006)
Change in assumptions (165,424)
(174,325) (343,921)
Revenues reported as unavailable revenue in the governmental funds and recognized
in the statement of activities. These are included in the intergovernmental revenues
in the governmental fund activity.310,550
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net position.2,693,642
Net Position of governmental activities 387,402,734$
Change in employer's proportion and differences between the employer's
contributions and the employer's proportionate share of contributions
Current year contributions that occurred after the measurement date
Change in employer's proportion and differences between the employer's
contributions and the employer's proportionate share of contributions
Net difference between project and actual earnings on pension plan
investments
See Notes to Financial Statements 18
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CITY OF DIAMOND BAR
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2017
Capital Projects
Funds
Other Total
Governmental Governmental
General Funds Funds
Revenues:
Taxes 12,698,595$ -$ 769,014$ 13,467,609$
Licenses and permits 2,220,572 - 135,408 2,355,980
Intergovernmental 6,207,423 58,214 5,402,880 11,668,517
Charges for services 1,544,032 - 1,355,289 2,899,321
Use of money and property (65,606) - 94,084 28,478
Fines and forfeitures 460,325 - - 460,325
Miscellaneous 371,045 115,243 75,000 561,288
Total Revenues 23,436,386 173,457 7,831,675 31,441,518
Expenditures:
Current:
General government 4,960,482 - 600,000 5,560,482
Public safety 6,567,087 - 9,867 6,576,954
Community development 2,290,877 - 695,096 2,985,973
Parks and recreation 2,662,622 - 60,936 2,723,558
Public works 4,788,397 1,833,074 2,342,811 8,964,282
Capital outlay 86,625 2,933,867 20,951 3,041,443
Debt service:
Principal retirement - - 400,000 400,000
Interest and fiscal charges - - 459,191 459,191
Total Expenditures 21,356,090 4,766,941 4,588,852 30,711,883
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,080,296 (4,593,484) 3,242,823 729,635
Other Financing Sources (Uses):
Transfers in 1,155,511 4,285,296 954,781 6,395,588
Transfers out (1,838,218) - (4,993,086) (6,831,304)
Total Other Financing Sources
(Uses)(682,707) 4,285,296 (4,038,305) (435,716)
Net Change in Fund Balances 1,397,589 (308,188) (795,482) 293,919
Fund Balances, Beginning of Year, as
previously reported 23,926,809 18,047 6,385,662 30,330,518
Restatements (402,436) - - (402,436)
Fund Balances, Beginning of Year, as restated 23,524,373 18,047 6,385,662 29,928,082
Fund Balances, End of Year 24,921,962$ (290,141)$ 5,590,180$ 30,222,001$
Capital
Improvement
Fund
See Notes to Financial Statements 19
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CITY OF DIAMOND BAR
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2017
Net change in fund balances - total governmental funds 293,919$
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period.
Capital Expenditures 2,820,713$
Depreciation Expense (7,525,241)
Loss on disposal of capital assets (13,279) (4,717,807)
Repayment of bond principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position.
Principal repayments 400,000$
Amortization of bond premium 14,126
Other post employment benefit obligation 22,949
Compensated Absences (69,740) 367,335
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.1,585
Pension contributions are expenditures in the governmental funds, but reduce
the Net Pension Liability in the statement of net position and changes in the
Net Pension Liability are expensed in government-wide statements.(495,411)
Revenues reported as unavailable revenue in the governmental funds and recognized
in the statement of activities. These are included in the intergovernmental revenues
in the governmental fund activity.(1,020,156)
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
governmental activities.(295,644)
Change in net position of governmental activities (5,866,179)$
See Notes to Financial Statements 20
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CITY OF DIAMOND BAR
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2017
Governmental
Activities-
Internal
Service Funds
Assets:
Current:
Cash and investments 2,428,103$
Receivables:
Accounts 2,208
Total Current Assets 2,430,311
Noncurrent:
Capital assets - net of accumulated depreciation 346,673
Total Noncurrent Assets 346,673
Total Assets 2,776,984$
Liabilities and Net Position:
Liabilities:
Current:
Accounts payable 1,568$
Due to other governments 81,774
Total Liabilities 83,342
Net Position:
Investment in capital assets 346,673
Unrestricted 2,346,969
Total Net Position 2,693,642
Total Liabilities and Net Position 2,776,984$
See Notes to Financial Statements 21
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CITY OF DIAMOND BAR
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2017
Governmental
Activities-
Internal
Service Funds
Operating Revenues:
Sales and service charges 10,291$
Total Operating Revenues 10,291
Operating Expenses:
Administration and general 20,918
Insurance Premiums 530,772
Equipment repair and maintenance 58,821
Depreciation expense 160,822
Total Operating Expenses 771,333
Operating Income (Loss)(761,042)
Nonoperating Revenues (Expenses):
Interest revenue 29,682
Total Nonoperating
Revenues (Expenses)29,682
Income (Loss) Before Transfers (731,360)
Transfers in 588,716
Transfers out (153,000)
Changes in Net Position (295,644)
Net Position:
Beginning of Year 2,989,286
End of Fiscal Year 2,693,642$
See Notes to Financial Statements 22
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CITY OF DIAMOND BAR
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2017
Governmental
Activities-
Internal
Service Funds
Cash Flows from Operating Activities:
Insurance Premiums paid (530,772)$
Payments to suppliers (124,035)
Cash received from others 99,916
Net Cash Provided (Used) by Operating Activities (554,891)
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out (153,000)
Cash transfers in 588,716
Net Cash Provided (Used) by
Non-Capital Financing Activities 435,716
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets (13,702)
Net Cash Provided (Used) by
Capital and Related Financing Activities (13,702)
Cash Flows from Investing Activities:
Interest received 29,682
Net Cash Provided (Used) by
Investing Activities 29,682
Net Increase (Decrease) in Cash
and Cash Equivalents (103,195)
Cash and Cash Equivalents at Beginning of Year 2,531,298
Cash and Cash Equivalents at End of Year 2,428,103$
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)(761,042)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 160,822
(Increase) decrease in accounts receivable 7,851
Increase (decrease) in accounts payable (44,296)
Increase (decrease) in due to other governments 81,774
Total Adjustments 206,151
Net Cash Provided (Used) by
Operating Activities (554,891)$
See Notes to Financial Statements 23
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CITY OF DIAMOND BAR
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2017
Assets:
Cash and investments with fiscal agents 162,315$
Total Assets 162,315$
Liabilities:
Due to other governments 13,246$
Total Liabilities 13,246
Net Position:
Held in trust for other post retirement benefits 149,069 Held in trust for other purposes -
Total Net Position 149,069$
OPEB Trust
Fund
See Notes to Financial Statements 24
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CITY OF DIAMOND BAR
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2017
Additions:
Interest and change in fair value of investments 2,696$
Contributions from City 84,761
Total Additions 87,457
Deductions:
Benefits 13,256
Total Deductions 13,256
Changes in Net Position 74,201
Net Position - Beginning of the Year 74,868
Net Position - End of the Year 149,069$
OPEB Trust
Fund
See Notes to Financial Statements 25
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
Note 1: Reporting Entity and Significant Accounting Policies
a. Description of Reporting Entity
The City of Diamond Bar (the City) was incorporated April 18, 1989, as a "General Law”
City governed by an elected five-member city council. As required by accounting
principles generally accepted in the United States of America, these financial statements
present the City of Diamond Bar (the primary government) and its component units. The
component units discussed below are included in the City's reporting entity because of
the significance of their operational or financial relationship with the City. These entities
are legally separate from each other. However, the City of Diamond Bar's elected officials
have a continuing full or partial accountability for fiscal matters of the other entities. The
financial reporting entity consists of: (1) the City (2) organizations for which the City is
financially accountable; and, (3) organizations for which the nature and significance of
their relationship with the City are such that exclusion would cause the City's financial
statements to be misleading or incomplete.
An organization is fiscally dependent on the primary government if it is unable to adopt its
budget, levy taxes or set rates or charges, or issue bonded debt without approval by the
primary government. In a blended presentation, a component unit’s balances and
transactions are reported in a manner similar to the balances and transactions of the City.
Component units are presented on a blended basis when the component unit’s governing
body is substantially the same as the City's or when the component unit provides
services almost entirely to the City.
Blended Component Units
The Diamond Bar Public Financing Authority (the Authority) was formed on
November 19, 2002. The purpose of the Authority is to issue debt to finance public
improvements and other capital purchases for the City and Agency. The activity of the
Authority is reported in debt service and capital projects funds. Separate financial
statements are not prepared for this blended component unit.
b. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the
statement of changes in net position) report information on all of the nonfiduciary
activities of the City. For the most part, the effect of interfund activity has been removed
from these statements. Governmental activities, which normally are supported by taxes
and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support. The City has no
business-type activities.
The statement of activities demonstrates the degree to which the direct expenses of a
given function or segment are offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific function or segment. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds are reported as separate columns in the
fund financial statements.
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The basic financial statements of the City are composed of the following:
x Government-wide financial statements
x Fund financial statements
x Notes to basic financial statements
The government-wide financial statements, proprietary fund and fiduciary fund financial
statements are reported using the economic resources measurement focus and the
accrual basis of accounting. Under the economic resources measurement focus, all
assets and liabilities (current and long-term) are reported. Under the accrual basis of
accounting, revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the fiscal year, which the taxes are levied. Revenue from
grants, entitlements, and donations is recognized in the fiscal year in which all the
eligibility requirements imposed by the provider have been met.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the City's internal service funds are charges to
departments for services. Operating expenses for the proprietary funds include the cost
of services, administrative expenses, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Under the
current financial resources measurement focus, generally only current assets and
liabilities are reported in the governmental funds. Governmental fund operating
statements present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets. Under the modified accrual
basis of accounting, revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this
purpose, the government considers revenues to be available if they are collected within
60 days of the end of the current fiscal year. Expenditures generally are recorded when
a liability is incurred, except for principal and interest on long-term liabilities, claims and
judgments, and compensated absences which are recognized as expenditures only when
payment is due.
The City’s fiduciary fund consists of a OPEB trust fund. OPEB trust funds are accounted
for using the “economic resources” measurement focus and the accrual basis of
accounting. Under the accrual basis of accounting, revenues are recognized in the
period in which they are earned while expenses are recognized in the period in which the
liability is incurred.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
Property taxes, taxpayer-assessed taxes, such as sales taxes, gas taxes, and transient
occupancy taxes, and interest associated with the current fiscal period are all considered
to be susceptible to accrual and have been recognized as revenues of the current fiscal
period. Only the portion of special assessments receivable due within the current fiscal
period is considered to be susceptible to accrual as revenue of the current period to the
extent normally collected within the availability period. All other revenue items are
considered to be measurable and available only when cash is received by the City.
The accounts of the City are organized and operated on the basis of funds, each of which
is considered a separate accounting entity with a self-balancing set of accounts,
established for the purpose of carrying on specific activities or attaining certain objectives
in accordance with special regulations, restrictions or limitations.
As a general rule, the effect of Interfund activity has been eliminated from the
government-wide financial statements. Exceptions to this general rule are charges
between the government’s proprietary funds functions and various other functions of the
government. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services or privileges provided, 2) operating contributions and grants, and
3) capital contributions and grants, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted
resources.
d. Fund Classifications
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City and is used to account for all
revenues and expenditures of the City not legally restricted as to use. A broad range of
municipal activities are provided through this fund including City Manager, City Attorney,
Finance, City Clerk, Public Works, Building and Safety, and Parks and Recreation.
The Capital Improvement Fund has been classified as a major fund and is used to
account for City capital improvement projects. The revenues in this fund will generally
come from transfers in from other funds and have been identified for specific capital
projects.
The City's fund structure also includes the following fund types:
Special Revenue Funds are used to account for the proceeds of specific revenue sources
that are legally restricted or committed to expenditures for specified purposes.
Debt Service Funds are used to account for the receipt of revenues and payments of
debt service related to outstanding bonds.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
Additionally, the City reports the following fund types:
Internal Service Funds have been established to finance and account for goods and
services provided by one City department to other City departments or agencies. These
activities include self-insurance, equipment, building maintenance and computer
maintenance.
OPEB Trust Fund has been established to account for the prefunding of the City’s
obligation of postemployment benefits other than pensions (OPEB).
e. Investments
For financial reporting purposes, investments are stated at fair value.
Changes in fair value that occur during a fiscal year are recognized as investment income
reported for that fiscal year. Investment income includes interest earnings, changes in fair
value, and any gains or losses realized upon the liquidation or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents.
Each fund’s share in this pool is displayed in the accompanying financial statements as
cash and investments. Investment income earned by the pooled investments is allocated
to the various funds based on each fund's average cash and investment balances.
f. Cash and Cash Equivalents
For purposes of the statement of cash flows, cash and cash equivalents are defined as
short-term, highly liquid investments that are both readily convertible to known amounts
of cash or so near their maturity (an original maturity date of three months or less from
the date of purchase) that they present insignificant risk of changes in value because of
changes in interest rates. Cash and cash equivalents also represent the proprietary
funds' share in the cash and investment pool of the City. All cash and investments of the
proprietary (internal service) funds are pooled with the City's pooled cash and
investments and are therefore considered cash equivalents for purposes of the statement
of cash flows.
g. Prepaid Costs
Prepaid costs are accounted for on the consumption method. Certain payments to
vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both government-wide and fund financial statements.
h. Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records are
available and at an estimated original cost where no historical records exist. Contributed
capital assets are valued at their estimated fair market value at the date of contribution.
Capital asset purchases (other than infrastructure) in excess of $5,000 are capitalized if
they have an expected useful life of three years or more. Donated capital assets,
donated works of art and similar items, and capital assets received in a service
concession arrangement are recorded at estimated fair market value at the date of
donation.
Capital assets include additions to public domain (infrastructure), certain improvements
including roads, streets, sidewalks, medians and storm drains within the City.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
Capital assets used in operations are depreciated over their estimated useful lives using
the straight-line method in the Government-wide and Proprietary Fund Financial
Statements. Depreciation is charged as an expense against operations and accumulated
depreciation is reported on the respective balance sheet. The lives used for depreciation
purposes of each capital asset class are:
Buildings and improvements 10 - 20 years
Furniture and fixtures 3 - 5 years
Vehicles 5 years
Infrastructure 10 - 50 years
Equipment 5 – 20 years
i. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a
future period(s) and so will not be recognized as an outflow of resources
(expense/ expenditure) until then. The government only has one item that qualifies for
reporting in this category. It is deferred outflows relating to the net pension obligation
reported in the government-wide statement of net position. These outflows are the results
of contributions made after the measurement period, adjustments due to difference in
proportions, and the difference between actual contributions made and the proportionate
share of the risk pool’s total contributions, and differences between expected and actual
experiences.
In addition to liabilities, the statement of financial position will sometimes report a
separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that
applies to a future period(s) and thus will not be recognized as an inflow of resources
(revenue) until that time. The government has one item which arises under the modified
accrual basis of accounting that qualifies for reporting in this category. Accordingly, the
item, unavailable revenue, is reported only in the governmental funds balance sheet. The
governmental funds report unavailable revenues from two sources: taxes and grant
revenues. These amounts are deferred and recognized as an inflow of resources in the
period that the amounts become available. In addition, the government has an item that
qualifies for reporting in this category which relate to deferred inflows relating to the net
pension obligation reported in the government-wide statement of net position. These
inflows are the result of the net difference between projected and actual earnings on
pension plan investments, changes in employer’s proportion and difference between the
employer’s contributions and the employer’s proportionate share of contributions, and
adjustments due to difference in proportions. These amounts are deferred and amortized
straight-line over a five-year period or over the remaining service life.
j. Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted
(e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate
the amounts to report as restricted – net position and unrestricted – net position in the
government-wide and proprietary fund financial statements, a flow assumption must be
made about the order in which the resources are considered to be applied. It is the
government’s policy to consider restricted – net position to have been depleted before
unrestricted – net position is applied.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
k. Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted
and unrestricted resources (the total of committed, assigned, and unassigned fund
balance). In order to calculate the amounts to report as restricted, committed, assigned,
and unassigned fund balance in the governmental fund financial statements a flow
assumption must be made about the order in which the resources are considered to be
applied. It is the government’s policy to consider restricted fund balance to have been
depleted before using any of the components of unrestricted fund balance. Further, when
the components of unrestricted fund balance can be used for the same purpose,
committed fund balance is depleted first, followed by assigned fund balance. Unassigned
fund balance is applied last.
l. Compensated Absences
Vacation and sick leave time begin to accumulate as of the first day of employment to a
maximum of 360 hours and 280 hours, respectively. Employees who accumulate sick
leave in excess of 200 hours are paid for the excess annually at one half the employees
current wage rate.
A liability is recorded for unused vacation and similar compensatory leave balances since
the employees' entitlement to these balances are attributable to services already
rendered and it is probable that virtually all of these balances will be liquidated by either
paid time off or payments upon termination or retirement.
A liability is recorded for unused sick leave balances only to the extent that it’s probable
that the unused balances will result in termination payments. This is estimated by
including in the liability the unused balances of employees currently entitled to receive
termination payments, as well as those who are expected to become eligible to receive
termination benefits as a result of continuing their employment with the City.
If an employee retires, resigns, or terminates in good standing with a minimum of
five years of service, the employee is entitled to receive 100% of unused sick leave at
one half the employees current wage rate. Compensated absences will be reported in
government funds only if they have matured, such as upon retirement.
m. Pension Plan
For purposes of measuring the net pension liability, deferred outflows and inflows of
resources related to pensions, and pension expense, information about the fiduciary net
position and additions to/deductions from the fiduciary net position have been determined
on the same basis as they are reported by the CalPERS Financial Office. For this
purpose, benefit payments (including refunds of employee contributions) are recognized
when currently due and payable in accordance with the benefit terms. Investments are
reported at fair value. CalPERS audited financial statements are publicly available reports
that can be obtained at CalPERS’ website under Forms and Publications.
n. Property Taxes
Under California law, property taxes are assessed and collected by the counties up to
1% of assessed value, plus other increases approved by the voters. The property taxes
go into a pool, and are then allocated to the cities based on complex formulas.
Accordingly, the City accrues only those taxes which are received from the County within
60 days after year end.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
Property taxes are assessed and collected each fiscal year according to the following
property tax calendar:
Lien date January 1
Levy date July 1
Due dates November 1 - 1st installment
February 1 - 2nd installment
Collection dates December 10 - 1st installment
April 10 - 2nd installment
Delinquent dates December 11 - 1st installment
April 11 - 2nd installment
o. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenditures during the reporting period. Actual results could
differ from those estimates.
p. Fund Equity
In the fund financial statements, government funds report the following fund balance
classification:
x Nonspendable include amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained
intact.
x Restricted include amounts that are constrained on the use of resources by
either (a) external creditors, grantors, contributors, or laws of regulations of other
governments or (b) by law through constitutional provisions or enabling
legislation.
x Committed include amounts that can only be used for specific purposes pursuant
to constraints imposed by formal action of the government’s highest authority,
City Council. The formal action that is required to be taken to establish, modify,
or rescind a fund balance commitment is a resolution.
x Assigned include amounts that are constrained by the government’s intent to be
used for specific purposes, but are neither restricted nor committed. The Director
of Finance is authorized to assign amounts to a specific purpose, which was
established by the governing body in resolution.
x Unassigned include the residual amounts that have not been restricted,
committed, or assigned to specific purposes. The General Fund is the only fund
that reports a positive fund unassigned fund balance amount. In other
governmental funds it is not appropriate to report a positive unassigned fund
balance amount.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
However, in governmental funds other than the general fund, if expenditures
incurred for specific purposes exceed the amounts that are restricted, committed,
or assigned to those purposes, it may be necessary to report a negative
unassigned fund balance in that fund.
An individual governmental fund could include nonspendable resources and amounts that
are restricted or unrestricted (committed, assigned, or unassigned) or any combination of
those classifications. Restricted amounts are to be considered spent when an
expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available and committed, assigned, then unassigned amounts are considered
to have been spent when an expenditure is incurred for purposes for which amounts in
any of those unrestricted fund balance classifications can be used.
Note 2: Cash and Investments
As of June 30, 2017, cash and investments were reported in the accompanying financial
statements as follows:
Statement of Net Position:
Cash and investments 35,343,237$
Cash and investments with fiscal agents 80
Statement of Fiduciary Net Position:
Cash and investments with fiscal agents 162,315
35,505,632$
Cash and investments held by the City at June 30, 2017, consisted of the following:
Cash and cash equivalents:
Imprest cash on hand 2,150$
Demand deposits 708,517
Total Cash and cash equivalents 710,667
Investments:
United States Government Sponsored Enterprise Securities 9,422,142
Certificates of Deposit 9,865,328
Corporate Bonds 2,136,798
Municipal Bonds 7,505,641
Local Agency Investment Fund 5,702,661
Held by fiscal agents:
Mutual Funds - CalPERS - CERBT 3 162,315
Money Market Mutual Funds 80
Total Investments and held by fiscal agents 34,794,965
35,505,632$
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
Investments Authorized by the California Government Code and the City's Investment Policy
The following table identifies the investment types that are authorized for the City by the
California Government Code (or the City’s investment policy, where more restrictive). The
table also identifies certain provisions of the California Government Code (or the City's
investment policy, where more restrictive) that address' interest rate risk, credit risk, and
concentration of credit risk. This table does not address investments of debt proceeds held by
bond trustee that are governed by the provisions of debt agreements of the City, rather than
the general provisions of the California Government Code or the City's investment policy. The
City Treasurer may waive the collateral requirement for deposits that are fully insured up to
$250,000 by the FDIC.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
United States Treasury Obligations 5 years None None
United States Government Sponsored Enterprise
Securities 5 years None None
Banker's Acceptance 180 days 40%30%
Time Certificates of Deposits 5 years 30%250,000$
Commercial Paper 270 days 25%10%
Negotiable Certificates of Deposit 5 years 30%None
Money Market Mutual Funds 5 years 15%None
Repurchase Agreements 1 year None None
Medium-Term Corporate Notes (1) 5 year 30%5%
Local Agency Investment Fund (LAIF)N/A None 50,000,000$
(1) Notes must be rated "A" or better
N/A - Not Applicable
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
City's investment policy. The table below identifies the investment types that are authorized
for investments held by bond trustee. The table also identifies certain provisions of these debt
agreements that address interest rate risk, credit risk, and concentration of credit risk.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
United States Treasury Obligations None None None
United States Government Sponsored
Enterprise Securities None 10%None
Banker's Acceptance 1 year None None
Time Certificate of Deposits None None None
Local Agency Investment Fund None None None
Money Market Funds None None None
Repurchase Obligations Tax Exempt 30 days None None
Taxable Government Money Market Portfolios None None Equal to six
months of
principal and
interest in the
bonds
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. One of the ways that the City
manages its exposure to interest rate risk is by purchasing a combination of shorter term and
longer term investments and by timing cash flows from maturities so that a portion of the
portfolio is maturing or coming close to maturity evenly over time as necessary to provide the
cash flow and liquidity needed for operations.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
Information about the sensitivity of the fair values of the City's investments
(including investments held by bond trustee) to market interest rate fluctuations is provided
by the following table that shows the distribution of the City's investments by maturity:
Investment Type
12 Months or
Less 1 - 3 years 3 - 5 years Total
US Government Sponsored Securities 2,993,605$ 1,743,355$ 4,685,182$ 9,422,142$
Certificate of Deposits 495,270 2,932,950 6,437,108 9,865,328
Corporate Bonds 149,971 - 1,986,827 2,136,798
Municipal Bonds - 2,252,411 5,253,230 7,505,641
Local Agency Investment Fund (LAIF) 5,702,661 - - 5,702,661
Held by Fiscal Agents:
Mutual Funds - CalPERS - CERBT Strategy 3 162,315 - - 162,315
Money Market Mutual Funds 80 - - 80
9,503,902$ 6,928,716$ 18,362,347$ 34,794,965$
Remaining Maturity (in Months)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to
the holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented below is the minimum rating required by
(where applicable) the California Government Code, the City's investment policy, or debt
agreements, and the actual rating, as reported by Moody’s, as of year-end for each
investment type:
Investment Type
Total as of June
30, 2017 AAA AA+ AA- AA A-Unrated
US Government Sponsored Securities 9,422,142$ -$ 8,680,166$ 498,720$ -$ 243,256$ -$
Certificate of Deposits 9,865,328 - - - - - 9,865,328
Corporate Bonds 2,136,798 489,214 751,680 895,904 - - -
Municipal Bonds 7,505,641 486,970 - 3,137,415 3,379,046 - 502,210
Local Agency Investment Fund (LAIF)5,702,661 - - - - - 5,702,661
Held by Fiscal Agents:
Mutual Funds - CalPERS - CERBT Strategy 3 162,315 - - - - - 162,315
Money Market Mutual Funds 80 - - - - - 80
34,794,965$ 976,184$ 9,431,846$ 4,532,039$ 3,379,046$ 243,256$ 16,232,594$
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. The hierarchy is based on the valuation inputs
used to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3
inputs are significant unobservable inputs.”
The City has the following recurring fair value measurements as of June 30, 2017:
Totals 1 2 3
Certificate of Deposit 9,865,328$ -$ 9,865,328$ -$
Corporate Bonds 2,136,798 - 2,136,798 -
Municipal Bonds 7,505,641 - 7,505,641 -
Local Agency Investment Fund 5,702,661 - 5,702,661 -
U.S. Federal Agency Securities 9,422,142 - 9,422,142 -
Cash with Fiscal Agents
Mutual Funds - CalPERS - CERBT Strategy 3 162,315 - 162,315 -
Totals 34,794,885 -$ 34,794,885$ -$
Cash with Fiscal Agents
Money Market Funds 80
Totals 80
Total Investments 34,794,965$
Level
Investments by fair value level
Investments measured at amortized cost
Deposits and securities classified in Level 1 of the fair value hierarchy are valued using prices
quoted in active markets for those securities. Local Agency Investment Funds classified in
Level 2 of the fair value hierarchy are valued using specified fair market value factors.
Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using
institutional bond quotes.
Disclosures Relating to Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty
(e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code and the City's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or investments,
other than the following provision for deposits: The California Government Code requires that
a financial institution secure deposits made by state or local governmental units by pledging
securities in an undivided collateral pool held by a depository regulated under state law
(unless so waived by the governmental unit). The market value of the pledged securities in
the collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure City deposits by pledging
first trust deed mortgage notes having a value of 150% of the secured public deposits. The
City does not accept 150% of the secured public totals. At June 30, 2017, the City deposits
38
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 2: Cash and Investments (Continued)
(bank balances) were insured by the Federal Depository Insurance Corporation up to
$250,000 and the remaining balances were collateralized under California Law. The cash and
investments held by Bond Trustee are uninsured and uncollateralized.
Investment in State Investment Pool
The City is a voluntary participant in the California Local Agency Investment Fund (LAIF) that
is regulated by California Government Code Section 16429 under the oversight of the
Treasurer of the State of California. LAIF is overseen by the Local Agency Investment
Advisory Board, which consists of five members, in accordance with State statute. The
State Treasurer’s Office audits the fund annually. The fair value of the position in the
investment pool is the same as the value of the pool shares.
Note 3: Interfund Transfers and Due To/From Other Funds
Transfers In Transfer Out Amount
Internal Service Funds General Fund 588,716$
Capital Improvement Fund General Fund 294,721
Other Governmental Funds General Fund 954,781
Capital Improvement Fund Other Governmental Funds 3,837,575
General Fund Other Governmental Funds 1,155,511
Capital Improvement Fund Internal Service Funds 153,000
6,984,304$
Transfers to the General Fund from the Other Governmental Funds were made to reimburse
the General Fund for various capital projects and administrative expenditures.
Transfers to the Capital Improvement Fund from the General Fund and Other Governmental
Funds were made to pay for various capital projects.
Transfers from the General Fund to the Other Governmental Funds were made to fund
various capital improvement projects, the City general plan revision, a fund deficit and debt
service payments. Transfers from the Other Governmental Funds to the Internal Service
Funds were made to fund the self-insurance, equipment replacement, computer equipment
replacement and building facility maintenance.
Due from other funds Due to other funds Amount
General Fund Other Governmental Funds 48,789$
48,789$
Short-term borrowings were made from the General Fund to Other Governmental Funds due
to negative cash. This is expected to be repaid in the immediate future with reimbursements.
39
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 4: Capital Assets
A summary of changes in the Governmental Activities capital assets at June 30, 2017, is as
follow:
Balance at
June 30, 2016 Transfers Additions Deletions
Balance at
June 30, 2017
Capital assets not being depreciated:
Land 5,633,624$ -$ -$ -$ 5,633,624$
Right of way 265,614,104 - - - 265,614,104
Construction in progress 4,347,254 (2,723,722) 1,167,424 (13,279) 2,777,677
Total Capital Assets Not
being Depreciated 275,594,982 (2,723,722) 1,167,424 (13,279) 274,025,405
Capital assets being depreciated:
Buildings and improvements 42,238,589 2,677,921 1,007,336 - 45,923,846
Furniture and fixtures 1,607,645 - 118,967 - 1,726,612
Vehicles and equipment 2,683,907 - 13,702 - 2,697,609
Infrastructure 190,846,334 45,801 526,986 - 191,419,121
Total Capital Assets
being Depreciated 237,376,475 2,723,722 1,666,991 - 241,767,188
Less accumulated depreciation for:
Buildings and improvements 23,001,824 - 2,613,991 - 25,615,815
Furniture and fixtures 1,315,445 - 209,994 - 1,525,439
Vehicles and equipment 1,749,128 - 185,203 - 1,934,331
Infrastructure 113,466,434 - 4,676,875 - 118,143,309
Total Accumulated
Depreciation 139,532,831 - 7,686,063 - 147,218,894
Total Capital Assets
Being Depreciated, Net 97,843,644 2,723,722 (6,019,072) - 94,548,294
Governmental Activities
Capital Assets, Net 373,438,626$ -$ (4,851,648)$ (13,279)$ 368,573,699$
Depreciation expense was charged to functions in the Statement of Activities as follows:
General government 614,800$
Public safety 8,971
Highways and streets 4,717,431
Parks, recreation and culture 2,184,039
Internal Service Funds depreciation charges to program 160,822
7,686,063$
Note 5: Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2017, was as follows:
Balance at
June 30, 2016 Additions Deletions
Balance at
June 30, 2017
Due Within
One Year
Bonds payable
Revenue Bonds 10,035,000$ -$ 400,000$ 9,635,000$ 420,000$
Compensated Absences 578,198 563,598 493,858 647,938 553,425
Total 10,613,198$ 563,598$ 893,858$ 10,282,938 973,425$
Net unamortized bond premium 173,223
Net Long-Term Debt 10,456,161$
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 5: Long-Term Liabilities (Continued)
Bonds Payable
In December 2002, the Diamond Bar Public Financing Authority issued $13,755,000 of
2002 Series A Variable Rate Lease Revenue Bonds to finance the construction of a
community/senior center project and other public improvements within the City. The bonds
are special limited obligations of the Authority payable solely from revenues, consisting
primarily of base rental payments paid by the City. The variable interest rate on the bonds are
reset on a bi-weekly basis.
In conjunction with the Bonds, the Authority executed a rate cap agreement on
December 2, 2002, (the Agreement) with JPMorgan Chase (Counterparty) to minimize debt
service cost on the 2002 Lease Revenue Bonds (the Bonds) by setting a cap on the interest
rate on the Bonds. Under the Agreement, the Counterparty will pay the Authority an amount
equal to the product of: (i) the amount by which the floating rate exceeds 4.5%, (ii) the
notional principal amount and (iii) the actual number of days in the calculation period divided
by 365 days. The Agreement is for a notional amount equal to the outstanding principal
amount of the Bonds and will decline as the principal amount declines. The Agreement
terminated on January 1, 2013.
Credit Risk
The Counterparty, JPMorgan Chase, has the following credit ratings of: (i) Standard & Poor's,
AA- and (ii) Moody's, Aa2.
Refinancing of the 2002 Series A Lease Revenue Bonds (Community/Senior Center Project)
The 2002 Series A Lease Revenue Bonds were originally issued on December 19, 2002, in
the aggregate principal amount of $13,755,000. Since the date of their initial issuance, the
Bonds have borne interest at a Weekly Rate and the regularly scheduled payments of
principal of and interest on the Bonds have been payable from the proceeds of draws upon
an irrevocable direct-pay letter of credit issued by Union Bank, N.A., formerly known as
Union Bank of California, N.A. On December 1, 2011, these Bonds were refinanced and
$12,190,000 was defeased. Subsequently, $11,790,000 in Bonds were issued with the
interest rate converted from a Weekly Rate to a Fixed Rate. The fixed rates range from
3.00% to 5.00% throughout the life of the bond.
41
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Packet Pg. 104
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 5: Long-Term Liabilities (Continued)
Payments and Associated Debt
As of June 30, 2017, debt service requirements of the Bonds and the Counterparty's
payments, assuming current interest rates remain the same for remainder of the term of the
Agreement, are as follows.
Year Ending June 30 Principal Interest Total
2018 420,000$ 435,906$ 855,906$
2019 440,000 414,906 854,906
2020 460,000 397,306 857,306
2021 485,000 378,906 863,906
2022 505,000 354,656 859,656
2023-2027 2,910,000 1,404,950 4,314,950
2028-2032 3,670,000 705,175 4,375,175
2033 745,000 35,388 780,388
Totals 9,635,000$ 4,127,193$ 13,762,193$
Fixed Rate Debt
Compensated Absences
The City's policies relating to compensated absences are described in Note 1. This liability,
amounting to $647,938 at June 30, 2017, is expected to be paid in future years from future
resources, typically liquidated from the General Fund.
Note 6: Liability, Property and Workers’ Compensation Protection
The City of Diamond Bar is a member of the CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY (Authority). The Authority is composed of 117 California public entities and is
organized under a joint powers agreement pursuant to California Government Code §6500 et
seq. The purpose of the Authority is to arrange and administer programs for the pooling of
self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group
purchased insurance for property and other lines of coverage. The California JPIA began
covering claims of its members in 1978. Each member government has an elected official as
its representative on the Board of Directors. The Board operates through a nine-member
Executive Committee.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 6: Liability, Property and Workers’ Compensation Protection (Continued)
a. Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A
retrospective adjustment is then conducted annually thereafter, for coverage years
2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine
annual retrospective adjustment. The total funding requirement for self-insurance
programs is based on an actuarial analysis. Costs are allocated to individual agencies
based on payroll and claims history, relative to other members of the risk-sharing pool.
Primary Liability Program
Claims are pooled separately between police and general government exposures.
(1) The payroll of each member is evaluated relative to the payroll of other members. A
variable credibility factor is determined for each member, which establishes the weight
applied to payroll and the weight applied to losses within the formula. (2) The first layer
of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as
a percentage of the pool’s total incurred costs within the first layer. (3) The second layer
of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is
evaluated as a percentage of the pool’s total incurred costs within the second layer.
(4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of
cost allocation within the first and second loss layers.
For 2016-17 the Authority’s pooled retention is $2 million per occurrence, with
reinsurance to $20 million, and excess insurance to $50 million. The Authority’s
reinsurance contracts are subject to the following additional pooled retentions:
(a) $2.5 million annual aggregate deductible in the $3 million in excess of $2 million layer,
and (b) $3 million annual aggregate deductible in the $5 million in excess of $10 million
layer. There is a third annual aggregate deductible in the amount of $2.5 million in the
$5 million in excess of $5 million layer, however it is fully covered under a separate policy
and therefore not retained by the Authority. The overall coverage limit for each member,
including all layers of coverage, is $50 million per occurrence. Costs of covered claims
for subsidence losses have a sub-limit of $30 million per occurrence.
Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general
government exposures. (1) The payroll of each member is evaluated relative to the
payroll of other members. A variable credibility factor is determined for each member,
which establishes the weight applied to payroll and the weight applied to losses within the
formula. (2) The first layer of losses includes incurred costs up to $50,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the
first layer. (3) The second layer of losses includes incurred costs from $50,000 to
$100,000 for each occurrence and is evaluated as a percentage of the pool’s total
incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory
limits are distributed based on the outcome of cost allocation within the first and second
loss layers.
For 2016-17 the Authority’s pooled retention is $2 million per occurrence, with
reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s
Liability losses are pooled among members to $2 million. Coverage from $2 million to
$5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses
from $5 million to $10 million are pooled among members.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 6: Liability, Property and Workers’ Compensation Protection (Continued)
b. Purchased Insurance
Pollution Legal Liability Insurance
The City of Diamond Bar participates in the pollution legal liability insurance program
which is available through the Authority. The policy covers sudden and gradual pollution
of scheduled property, streets, and storm drains owned by the City of Diamond Bar.
Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has
an aggregate limit of $50 million for the 3-year period from July 1, 2014 through
July 1, 2017. Each member of the Authority has a $10 million sub-limit during the 3-year
policy term.
Property Insurance
The City of Diamond Bar participates in the all-risk property protection program of the
Authority. This insurance protection is underwritten by several insurance companies. City
of Diamond Bar property is currently insured according to a schedule of covered property
submitted by the City of Diamond Bar to the Authority. City of Diamond Bar property
currently has all-risk property insurance protection in the amount of $35,408,517. There
is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which
has a $2,500 deductible.
Earthquake and Flood Insurance
The City of Diamond Bar purchases earthquake and flood insurance on a portion of its
property. The earthquake insurance is part of the property protection insurance program
of the Authority. City of Diamond Bar property currently has earthquake protection in the
amount of $0. There is a deductible of 5% per unit of value with a minimum deductible of
$100,000.
Crime Insurance
The City of Diamond Bar purchases crime insurance coverage in the amount of
$1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the
Authority.
c. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection
experienced settlements or judgments that exceeded pooled or insured coverage.
There were also no significant reductions in pooled or insured liability coverage in
2016-17.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 7: Pensions
Rate Plan Description
All qualified permanent and probationary employees are eligible to participate in the
Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan)
administered by the California Public Employees’ Retirement System (CalPERS.) The Plan
consists of individual rate plans (benefit tiers) within a miscellaneous risk pool (all other.) Plan
assets may be used to pay benefits for any employer rate plan of the miscellaneous pools.
Accordingly, rate plans miscellaneous pools are not separate plans under GASB Statement
No. 68. Individual employers may sponsor more than one rate plan in the risk pools. The City
sponsors two rate plans. Benefit provisions under the Plan are established by State statute
and Local Government resolution. CalPERS issues publicly available reports that include a
full description of the pension plan regarding benefit provisions, assumptions and
membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments
and death benefits to rate plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment.
Members with five years of total service are eligible to retire at age 50 with statutorily reduced
benefits. All members are eligible for non-duty disability benefits after 10 years of service.
The death benefit is one of the following: The Optional Settlement 2W Death Benefit or the
Lump Sum Death Benefit. The cost of living adjustments for each rate plan are applied as
specified by the Public Employees’ Retirement Law. The Rate Plans’ provisions and benefits
in effect at June 30, 2017, are summarized as follows:
Miscellaneous* Misc. PEPRA
Hire dates
Prior to
January 1, 2013
January 1, 2013 and
thereafter
Benefit formula 2% @55 2% @62
Benefit vesting schedule 5 years of service 5 years of service
Benefit payments monthly for life monthly for life
Retirement age Minumum 50 yrs Minumum 52 yrs
Monthly benefits, as a percentage of eligible
compensation
1.425% - 2.418%,
50 yrs - 63+ yrs,
respectively
1.000% - 2.500%,
52 yrs - 67+ yrs,
respectively
Required employee contribution rates 6.886%6.250%
Required employer contribution rates 12.005%6.567% * Miscellaneous rate plan is closed to new entrants.
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that
the employer contribution rates for all public employers be determined on an annual basis by
the actuary and shall be effective on the July 1 following notice of a change in the rate. The
total rate plan contributions are determined through the CalPERS’ annual actuarial valuation
process. The actuarially determined rate is based on the estimated amount necessary to pay
the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the
year, and any unfunded accrued liability. The employer is required to contribute the difference
between the actuarially determined rate and the contribution rate of employees.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 7: Pensions Rate Plans (Continued)
The City’s contributions to the Plan for the year ended June 30, 2017 were $460,471.
Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of
Resources Related to Pensions
As of June 30, 2017 the City reported a net pension liability for its proportionate share of the
net pension liability of the Plan of $4,607,967.
The City’s net pension liability for the Plan is measured as the proportionate share of the net
pension liability. The net pension liability of the Plan is measured as of June 30, 2016, and
the total pension liability for the Plan used to calculate the net pension liability was
determined by an actuarial valuation as of June 30, 2015, rolled forward to June 30, 2016,
using standard update procedures. The City’s proportion of the net pension liability was
based on a projection of the City’s long-term share of contributions to Plan relative to the
projected contributions of all participating employers, actuarially determined. The City’s
proportionate share of the net pension liability for each Rate Plan as of June 30, 2015 and
2016, was as follows:
Miscellaneous
Proportion - June 30, 2015 0.12165%
Proportion - June 30, 2016 0.13265%
Change - Increase (Decrease) 0.01100%
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Packet Pg. 109
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 7: Pension Rate Plans (Continued)
For the year ended June 30, 2017, the City recognized pension expense of $495,411. At
June 30, 2017, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual experience 17,486$ 4,006$
Net Difference between projected and acutal earnings on
pension plans investments 860,977 -
Adjustment due to difference in proportions 518,610 166
Change in assumptions - 165,424
Change in employer's proportion and differences
between the employer's contributios and the employer's
proportionate share of contributions 1,444 174,325
Current year contributions that occurred after the
measurement date of June 30, 2016 386,806 -
SubTotal 1,785,323$ 343,921$
$386,806 reported as deferred outflows of resources related to contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2018. Other amounts reported as deferred outflows or deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Year Ended Deferred Outflows/
June 30, (Inflows) of Resources
2017 246,030$
2018 207,698
2019 377,865
2020 223,003
Total 1,054,596$
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6.4.a
Packet Pg. 110
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 7: Pension Rate Plans (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2016 (the measurement date), the total pension
liability was determined by rolling forward the June 30, 2015 total pension liability. The
June 30, 2015 and the June 30, 2016, total pension liabilities were based on the following
actuarial methods and assumptions:
Actuarial Cost Method
Entry Age Normal in accordance with the requirements of GASB
Statement No. 68
Discount Rate 7.65%
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return
7.65% Net of Pension Plan Investment and Administrative
Expenses; includes Inflation
Mortality Rate Table (1) Derived using CalPERS’ Membership Data for all Funds
Post Retirement Benefit
Increase
Contract COLA up to 2.75% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2.75%
thereafter
Actuarial Assumptions
(1) The mortality table used was developed based on CalPERS’ specific data. The table includes 20
years of mortality improvements using Society of Actuaries Scale BB. For more details on this table,
please refer to the 2014 experience study report.
All other actuarial assumptions used in the June 30, 2015, valuation was based on the results
of an actuarial experience study for the period from 1997 to 2011, including updates to salary
increase, mortality and retirement rates. The Experience Study report can be obtained at
CalPERS’ website under Forms and Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.65 percent. To determine
whether the municipal bond rate should be used in the calculation of a discount rate for each
plan, CalPERS stress tested plans that would most likely result in a discount rate that would
be different from the actuarially assumed discount rate. Based on the testing, none of the
tested plans run out of assets. Therefore, the current 7.65 percent discount rate is adequate
and the use of the municipal bond rate calculation is not necessary. The long term expected
discount rate of 7.65 percent is applied to all plans in the Public Employees Retirement Fund.
The stress test results are presented in a detailed report called “GASB Crossover Testing
Report” that can be obtained at CalPERS’ website under the GASB 68 section.
48
6.4.a
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 7: Pension Rate Plans (Continued)
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both
short-term and long-term market return expectations as well as the expected pension fund
cash flows. Such cash flows were developed assuming that both members and employers
will make their required contributions on time and as scheduled in all future years. Using
historical returns of all the funds’ asset classes, expected compound (geometric) returns were
calculated over the short-term (first 10 years) and the long-term (11-60 years) using a
building-block approach. Using the expected nominal returns for both short-term and
long-term, the present value of benefits was calculated for each fund. The expected rate of
return was set by calculating the single equivalent expected return that arrived at the same
present value of benefits for cash flows as the one calculated using both short-term and
long-term returns. The expected rate of return was then set equivalent to the single
equivalent rate calculated above and rounded down to the nearest one quarter of one
percent.
The table below reflects long-term expected real rate of return by asset class. The rate of
return was calculated using the capital market assumptions applied to determine the discount
rate and asset allocation. These geometric rates of return are net of administrative expenses.
Asset Class
New
Strategic
Allocation
Real Return
Years 1-10*
Real Return
Years 11+**
Global Equity 51.00% 5.25%5.71%
Global Debt Securities 20.00% 0.99%2.43%
Inflation Assets 6.00%0.45%3.36%
Private Equity 10.00% 6.83%6.95%
Real Estate 10.00% 4.50%5.13%
Infrastructure and Forestland 2.00%4.50%5.09%
Liquidity 1.00% -0.55%-1.05%
* An expected inflation of 2.5% used for this period
**An expected inflation of 3.0% used for this period
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 7: Pension Rate Plans (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability/(asset) of the Plan as of the measurement
date, calculated using the discount rate of 7.65 percent, as well as what the net pension
liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point
lower (6.65 percent) or 1 percentage-point higher (8.65 percent) than the current rate:
Discount Rate - 1%
(6.65%)
Current Discount Rate
(7.65%)
Discount Rate +1%
(8.65%)
Plan's Net Pension
Liability/(Assets)7,539,307$ 4,607,967$ 2,185,360$
Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net positions is available in the separately
issued CalPERS financial reports.
Note 8: Post-Employment Benefits Other than Pensions
The City provides an agent multiple-employer OPEB plan to retirees through the California
Employers’ Retiree Benefit Trust (CERBT). Information on the plan is available from
CalPERS on their website www.calpers.ca.gov.
Annual OPEB Cost and Net OPEB Obligation
The City's annual OPEB cost (expense) is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and to amortize any unfunded
liabilities of the plan over a period not to exceed thirty years.
Funding Policy
The City sets its monthly contribution rates for health insurance on behalf of all eligible
retirees according to the PERS Health Program's statutory minimum ($125/month for
calendar 2016 and $128/month for calendar 2017, increased in all future years according to
the rate of medical inflation). The City pays a 0.32% of premium administrative charge on
behalf of all retirees. The City is currently funding this OPEB obligation on a pay-as-you-go
basis usually using available resources in the general fund. For the year ended
June 30, 2017, the City paid $10,126 in health care costs for its retirees and their covered
dependents.
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 8: Post-Employment Benefits Other than Pensions (Continued)
The following table shows the components of the City's annual OPEB cost for the year, the
amount actually contributed to the plan, and changes in the City's net OPEB obligation to the
PERS Health Program:
Annual required contribution 84,761$
Interest on net OPEB obligation 12,485
Adjustment to annual required contribution (25,308)
Annual OPEB cost (expense)71,938
Contributions made 94,887
Increase in net OPEB obligation (22,949)
Net OPEB obligation - beginning of year 416,162
Net OPEB obligation - end of year 393,213$
Three-Year Trend Information
For fiscal year 2017, the City's annual OPEB cost (expense) was $71,938. Information on the
annual OPEB costs, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation is only available for two fiscal years, as presented below:
Fiscal Year
Ended
Annual OPEB
Costs
Actual
Contributions
Percentage of
Annual OPEB Costs
Contributed
Net OPEB
Obligation
6/30/15 73,775$ 6,635$ 8.99% 436,244$
6/30/16 72,089 92,171 127.86% 416,162
6/30/17 71,938 94,887 131.90% 393,213
Funded Status and Funding Progress
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the City are subject to continual revision as actual results are compared with
past expectations and new estimates are made about the future.
The schedule of funding progress below presents multiyear trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits. The information is as of the latest actuarial valuation.
Unfunded UAAL as a
Actuarial Actuarial Actuarial Percent of
Type of Valuation Value of Accrued Funded Covered Covered Interest
Valuation Date Assets Liability Ratio Payroll Payroll Rate
Actual 7/1/2014 -$ 596,261$ 0.0% 4,293,708$ 13.89% 5.00%
Actual 7/1/2015 - 556,098 0.0% 4,376,116 12.71% 6.00%
Information on the plan is available from CalPERS.
51
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 8: Post-Employment Benefits Other than Pensions (Continued)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and the plan members at that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the
long-term perspective of the calculations.
In the July 1, 2015, actuarial valuation, the projected unit credit method was used. The
actuarial assumptions included a discount rate of 6.0% per annum, a rate of return on assets
of 6.0% per annum and a healthcare cost trend rate of 3.5% for medical and a healthcare
cost trend rate of 7.0% for Rx initially, reduced by annual decrements of 1.0% to an ultimate
rate of 5.0% after three years. The City's unfunded actuarial accrued liability will be amortized
as a level dollar over an open period of 30 years.
Note 9: Classification of Net Position and Fund Balance
Details of the fund balance classifications at June 30, 2017, are as follows:
Restricted for Community Development Projects:
Integrated Waste Management 1,170,472$
Beverage Center Recycling 54,044
Used Oil Block Grant 17,292
Park and Facility Development 572,371
PEG Fees 252,471
Total 2,066,650
Restricted for Public Safety:
COPS 222,455
CLEEP 21,187
Total 243,642
Restricted for Highways and Streets:
State Gas Tax 2,423
Proposition A Transit 466,011
Proposition C Transit 678,660
Transportation Grant Fund 363
Traffic Improvement 1,000,504
Sewer Mitigation 111,097
MTA Grant Fund 33
Landscape Maintenance District 66,811
Measure R Local Return 680,953
Waste Hauler 88,879
Total 3,095,734
Restricted for Capital Projects:
Air Quality Improvement 184,074
Total 184,074
Restricted for Debt Service:80
Total Restricted Funds 5,590,180$
52
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CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2017
Note 10: Contingencies
The City is presently involved in other matters of litigation that have arisen in the normal
course of the City's business. City management believes, based upon consultation with the
City Attorney, that these cases, in the aggregate, are not expected to have a material
adverse financial impact on the City.
Note 11: Construction Commitments
No material construction commitments existed at June 30, 2017.
Note 12: Fund Balance Restatement
Beginning Fund Balance in the General Fund has been restated by $402,436 related to the
recognition of sales tax revenue in the previous year outside the City’s revenue recognition
policy. There is no impact to the Statement of Net Position due to the basis of accounting.
53
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54
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REQUIRED SUPPLEMENTARY
INFORMATION
55
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CITY OF DIAMOND BAR
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2017
Note 1: Stewardship, Compliance and Accountability
a. Budgetary Data
General Budget Policies
The City adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds and on the accrual basis of accounting for its
proprietary funds. The City Manager or his designee is authorized to transfer budgeted
amounts between the accounts of any department or funds that are approved by City
Council. Prior year appropriations lapse unless they are approved for carryover into
the following fiscal year. Expenditures may not legally exceed appropriations at the
department level.
Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
56
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CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 23,524,373$ 23,524,373$ 23,524,373$ -$
Resources (Inflows):
Taxes 12,106,530 12,421,530 12,698,595 277,065
Licenses and permits 2,131,273 2,382,251 2,220,572 (161,679)
Intergovernmental 6,053,000 6,207,423 6,207,423 -
Charges for services 1,671,282 1,652,032 1,544,032 (108,000)
Use of money and property 263,500 306,500 (65,606) (372,106)
Fines and forfeitures 482,000 422,000 460,325 38,325
Miscellaneous 121,650 230,351 371,045 140,694
Transfers in 1,538,257 1,586,957 1,155,511 (431,446)
Amounts Available for Appropriations 47,891,865 48,733,417 48,116,270 (617,147)
Charges to Appropriation (Outflow):
General government
City Council 191,018 191,018 179,738 11,280
City Attorney 215,000 230,000 212,124 17,876
City Manager/Clerk 1,506,449 1,519,258 1,257,519 261,739
Finance 772,578 748,292 748,292 -
Human resources 426,953 437,453 326,878 110,575
Information systems 1,120,538 1,178,904 1,023,929 154,975
Public information 761,059 768,611 644,624 123,987
Civic Center 518,239 545,451 482,617 62,834
Contribution to OPEB trust - 84,761 84,761 -
Subtotal general government 5,511,834 5,618,987 4,960,482 658,505
Public safety
Law Enforcement 6,461,991 6,476,991 6,341,310 135,681
Fire Protection 7,500 7,500 7,359 141
Animal Control 167,500 167,500 161,896 5,604
Emergency preparedness 69,900 69,900 56,522 13,378
Subtotal public safety 6,706,891 6,721,891 6,567,087 154,804
Community development
Comm. Dev. & Pl. Adm.1,132,155 1,686,567 980,289 706,278
Building and Safety 718,822 925,995 830,616 95,379
Neigh. Imprv.312,092 308,192 291,253 16,939
Eco. Devel.334,563 405,873 188,719 217,154
Subtotal community development 2,497,632 3,326,627 2,290,877 1,035,750
Parks, recreation, and culture
Comm. Srvcs. Adm.173,542 25,600 24,151 1,449
Diamond Bar Ctr.1,057,644 1,088,447 962,958 125,489
Recreation 1,936,554 1,927,339 1,675,513 251,826
Subtotal parks, recreation, and culture 3,167,740 3,041,386 2,662,622 378,764
Highways and streets
Public Works 859,276 885,012 798,363 86,649
Engineering 672,429 1,093,050 665,103 427,947
Road Maint.1,757,959 1,885,361 1,779,036 106,325
Landscape Maint.271,108 315,685 315,685 -
Park & Facilities Maintenance 1,316,055 1,584,361 1,230,210 354,151
Subtotal highways and streets 4,876,827 5,763,469 4,788,397 975,072
Capital outlay 114,400 213,145 86,625 126,520
Transfers out 3,704,433 5,861,465 1,838,218 4,023,247
Total Charges to Appropriations 26,579,757 30,546,970 23,194,308 7,352,662
Budgetary Fund Balance, June 30 21,312,108$ 18,186,447$ 24,921,962$ 6,735,515$
57
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CITY OF DIAMOND BAR
MISCELLANEOUS RATE PLAN
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017
Proportion of the Net Pension Liability 0.12979%0.12165%0.13265%
Proportionate Share of the Net Pension Liability 3,207,669$ 3,337,560$ 4,607,967$
Covered-Employee Payroll 4,376,117$ 4,650,369$ 4,551,711$
Proportionate Share of the Net Pension Liability as
Percentage of Covered-Employee Payroll 73.30%71.77%101.24%
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 79.82%78.40%74.06%
Notes to Schedule:
Changes of Assumptions:
Benefit Changes:
There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan
may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a
specified time period (a.k.a. Golden Handshakes). Employers that have done so may need to report this information as a separate liability in
their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should
consult with their auditors.
There were no changes of assumptions.
(1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of
implementation, therefore only three years are shown.
See Notes to Required Supplementary Information 58
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Packet Pg. 121
CITY OF DIAMOND BAR
MISCELLANEOUS RATE PLAN
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017
Actuarially Determined Contribution 403,553$ 460,471$ 386,806$
Contribution in Relation to the Actuarially Determined Contribution (403,553)(460,471)(386,806)
Contribution Deficiency (Excess)-$-$-$
Covered-Employee Payroll 4,650,369$ 4,551,711$ 4,680,371$
Contributions as a Percentage of Covered-Employee Payroll 8.68%10.12%8.26%
Note to Schedule:
Valuation Date:June 30, 2014
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll, closed
Assets valuation method Market Value
Discount Rate 7.50% (net of administrative expenses)
Projected Salary Increases
Inflation 2.75%
Payroll Growth 3.00%
Individual Salary Growth
(1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of
implementation, therefore only three years are shown.
3.30% to 14.20% depending on Age, Service, and type of employment
A merit scale varying by duration of employment coupled with an
assumed annual inflation of 2.75% and an annual production growth of
0.25%.
59
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CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2017
Assets:
Pooled cash and investments 2,423$ 496,924$ 733,755$ 363$ 1,052,904$
Receivables:
Accounts - - - - 131,099
Notes and loans - - - - -
Due from other governments - - - - -
Cash and investments with fiscal agents - - - - -
Total Assets 2,423$ 496,924$ 733,755$ 363$ 1,184,003$
Liabilities and Fund Balances:
Liabilities:
Accounts payable -$ 28,724$ 54,404$ -$ 7,231$
Accrued liabilities - 2,189 691 - 6,300
Unearned revenues - - - - -
Due to other governments - - - - -
Due to other funds - - - - -
Total Liabilities - 30,913 55,095 - 13,531
Restricted for:
Community development projects - - - - 1,170,472
Public safety - - - - -
Highways and streets 2,423 466,011 678,660 363 -
Capital Projects - - - - -
Debt service - - - - -
Total Fund Balances 2,423 466,011 678,660 363 1,170,472
Total Liabilities and Fund Balances 2,423$ 496,924$ 733,755$ 363$ 1,184,003$
State Gas Tax
Fund
Proposition A
Transit Fund
Proposition C
Transit Fund
Transportation
Grant Fund
Integrated
Waste
Management
Fund
Special Revenue Funds
60
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CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2017
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Due from other governments
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Restricted for:
Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Total Fund Balances
Total Liabilities and Fund Balances
(CONTINUED)
1,008,921$ 111,097$ 165,545$ 4,377$ 39,537$
- - - - -
- - - - -
- - 18,529 - 14,507
- - - - -
1,008,921$ 111,097$ 184,074$ 4,377$ 54,044$
-$ -$ -$ -$ -$
- - - - -
8,417 - - 4,344 -
- - - - -
- - - - -
8,417 - - 4,344 -
- - - - 54,044
- - - - -
1,000,504 111,097 - 33 -
- - 184,074 - -
- - - - -
1,000,504 111,097 184,074 33 54,044
1,008,921$ 111,097$ 184,074$ 4,377$ 54,044$
MTA Grant
Fund
Beverage
Center
Recycling
Grant Fund
Sewer
Mitigation
Fund
Air Quality
Improvement
Fund
Traffic
Improvement
Fund
Special Revenue Funds
61
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CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2017
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Due from other governments
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Restricted for:
Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Total Fund Balances
Total Liabilities and Fund Balances
34,918$ 612,659$ -$ 187,477$ 21,187$
- - - - -
- - 370,704 - -
- - 48,837 39,416 -
- - - - -
34,918$ 612,659$ 419,541$ 226,893$ 21,187$
17,626$ -$ 48$ 4,438$ -$
- - - - -
- 40,288 - - -
- - 370,704 - -
- - 48,789 - -
17,626 40,288 419,541 4,438 -
17,292 572,371 - - -
- - - 222,455 21,187
- - - - -
- - - - -
- - - - -
17,292 572,371 - 222,455 21,187
34,918$ 612,659$ 419,541$ 226,893$ 21,187$
CLEEP Fund
Used Oil
Block Grant
Fund
Park and
Facility
Development
Fund CDBG Fund COPS Fund
Special Revenue Funds
62
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CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2017
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Due from other governments
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Restricted for:
Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Total Fund Balances
Total Liabilities and Fund Balances
(CONTINUED)
135,061$ 680,953$ 232,492$ 57,498$
- - 19,979 31,381
- - - -
11,672 - - -
- - - -
146,733$ 680,953$ 252,471$ 88,879$
78,692$ -$ -$ -$
1,230 - - -
- - - -
- - - -
- - - -
79,922 - - -
- - 252,471 -
- - - -
66,811 680,953 - 88,879
- - - -
- - - -
66,811 680,953 252,471 88,879
146,733$ 680,953$ 252,471$ 88,879$
PEG Fees
Fund
Waste Hauler
Fund
Landscape
Maintenance
District Fund
Measure R
Local Return
Fund
Special Revenue Funds
63
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CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2017
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Due from other governments
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Due to other governments
Due to other funds
Total Liabilities
Restricted for:
Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Total Fund Balances
Total Liabilities and Fund Balances
Total
Governmental
Funds
-$ 5,578,091$
- 182,459
- 370,704
- 132,961
80 80
80$ 6,264,295$
-$ 191,163$
- 10,410
- 53,049
- 370,704
- 48,789
- 674,115
- 2,066,650
- 243,642
- 3,095,734
- 184,074
80 80
80 5,590,180
80$ 6,264,295$
Public
Financing
Authority
Debt Service
Funds
64
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CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2017
Revenues:
Taxes -$ -$ -$ -$ -$
Licenses and permits - - - - -
Intergovernmental 1,079,084 1,034,041 860,946 924,125 -
Charges for services - 823,272 - - 532,017
Use of money and property 4,028 9,806 11,513 - 15,688
Miscellaneous - - - - 75,000
Total Revenues 1,083,112 1,867,119 872,459 924,125 622,705
Expenditures:
Current:
General government - 600,000 - - -
Public safety - - - - -
Community development - - - - 561,193
Parks and recreation - 60,936 - - -
Public works - 1,195,519 395,369 - -
Capital outlay - - - - -
Debt service:
Principal retirement - - - - -
Interest and fiscal charges - - - - -
Total Expenditures - 1,856,455 395,369 - 561,193
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,083,112 10,664 477,090 924,125 61,512
Other Financing Sources (Uses):
Transfers in - - - 220 -
Transfers out (1,450,291) (505,976) (463,445) - (112,220)
Total Other Financing Sources
(Uses)(1,450,291) (505,976) (463,445) 220 (112,220)
Net Change in Fund Balances (367,179) (495,312) 13,645 924,345 (50,708)
Fund Balances, Beginning of Year 369,602 961,323 665,015 (923,982) 1,221,180
Fund Balances, End of Year 2,423$ 466,011$ 678,660$ 363$ 1,170,472$
Special Revenue Funds
State Gas Tax
Fund
Proposition A
Transit Fund
Proposition C
Transit Fund
Transportation
Grant Fund
Integrated
Waste
Management
Fund
66
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CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2017
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
(CONTINUED)
-$ -$ -$ -$ -$
9,883 - - - -
- - 72,892 48,650 29,111
- - - - -
18,857 1,591 2,892 33 849
- - - - -
28,740 1,591 75,784 48,683 29,960
- - - - -
- - - - -
- - - - 27,485
- - - - -
3,695 - - - -
- - - - -
- - - - -
- - - - -
3,695 - - - 27,485
25,045 1,591 75,784 48,683 2,475
- - - - -
(543,858) - (159,694) (48,650) -
(543,858) - (159,694) (48,650) -
(518,813) 1,591 (83,910) 33 2,475
1,519,317 109,506 267,984 - 51,569
1,000,504$ 111,097$ 184,074$ 33$ 54,044$
Special Revenue Funds
Traffic
Improvement
Fund
Sewer
Mitigation
Fund
Air Quality
Improvement
Fund
MTA Grant
Fund
Beverage
Center
Recycling
Grant Fund
67
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CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2017
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
-$ -$ -$ -$ -$
- - - - -
15,769 406,119 119,965 168,740 -
- - - - -
175 11,590 - 2,978 391
- - - - -
15,944 417,709 119,965 171,718 391
- - - - -
- - - 9,867 -
14,223 - 92,195 - -
- - - - -
- - - - -
- - - 2,435 11,148
- - - - -
- - - - -
14,223 - 92,195 12,302 11,148
1,721 417,709 27,770 159,416 (10,757)
- - - - -
- (765,786) (27,770) (98,958) -
- (765,786) (27,770) (98,958) -
1,721 (348,077) - 60,458 (10,757)
15,571 920,448 - 161,997 31,944
17,292$ 572,371$ -$ 222,455$ 21,187$
Special Revenue Funds
Used Oil
Block Grant
Fund
Park and
Facility
Development
Fund CDBG Fund COPS Fund CLEEP Fund
68
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CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2017
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
(CONTINUED)
685,863$ -$ 83,151$ -$
- - - 125,525
- 643,438 - -
- - - -
- 9,642 2,789 1,158
- - - -
685,863 653,080 85,940 126,683
- - - -
- - - -
- - - -
- - - -
748,228 - - -
- - 7,368 -
- - - -
- - - -
748,228 - 7,368 -
(62,365) 653,080 78,572 126,683
95,423 - - -
- (700,816) - (115,622)
95,423 (700,816) - (115,622)
33,058 (47,736) 78,572 11,061
33,753 728,689 173,899 77,818
66,811$ 680,953$ 252,471$ 88,879$
Special Revenue Funds
Landscape
Maintenance
District Fund
Measure R
Local Return
Fund
PEG Fees
Fund
Waste Hauler
Fund
69
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Packet Pg. 132
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2017
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Debt Service
Funds
Total
Governmental
Funds
-$ 769,014$
- 135,408
- 5,402,880
- 1,355,289
104 94,084
- 75,000
104 7,831,675
- 600,000
- 9,867
- 695,096
- 60,936
- 2,342,811
- 20,951
400,000 400,000
459,191 459,191
859,191 4,588,852
(859,087) 3,242,823
859,138 954,781
- (4,993,086)
859,138 (4,038,305)
51 (795,482)
29 6,385,662
80$ 5,590,180$
Public Financing
Authority
70
6.4.a
Packet Pg. 133
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 369,602$ 369,602$ 369,602$ -$
Resources (Inflows):
Intergovernmental 1,164,130 1,114,791 1,079,084 (35,707)
Use of money and property 5,500 7,500 4,028 (3,472)
Amounts Available for Appropriations 1,539,232 1,491,893 1,452,714 (39,179)
Charges to Appropriation (Outflow):
Transfers out 1,573,242 1,542,667 1,450,291 92,376
Total Charges to Appropriations 1,573,242 1,542,667 1,450,291 92,376
Budgetary Fund Balance, June 30 (34,010)$ (50,774)$ 2,423$ 53,197$
71
6.4.a
Packet Pg. 134
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A TRANSIT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 961,323$ 961,323$ 961,323$ -$
Resources (Inflows):
Intergovernmental 1,038,288 1,038,288 1,034,041 (4,247)
Charges for services 1,075,000 1,075,000 823,272 (251,728)
Use of money and property 6,000 10,000 9,806 (194)
Amounts Available for Appropriations 3,080,611 3,084,611 2,828,442 (256,169)
Charges to Appropriation (Outflow):
General government 600,000 600,000 600,000 -
Parks, recreation and culture 81,250 81,250 60,936 20,314
Highways and Streets 1,510,909 1,510,909 1,195,519 315,390
Capital outlay 14,500 14,500 - 14,500
Transfers out 760,155 710,155 505,976 204,179
Total Charges to Appropriations 2,966,814 2,916,814 2,362,431 554,383
Budgetary Fund Balance, June 30 113,797$ 167,797$ 466,011$ 298,214$
72
6.4.a
Packet Pg. 135
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PROPOSITION C TRANSIT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 665,015$ 665,015$ 665,015$ -$
Resources (Inflows):
Intergovernmental 861,232 861,232 860,946 (286)
Use of money and property 5,700 9,000 11,513 2,513
Amounts Available for Appropriations 1,531,947 1,535,247 1,537,474 2,227
Charges to Appropriation (Outflow):
Highways and Streets 551,637 551,637 395,369 156,268
Transfers out 902,565 1,053,458 463,445 590,013
Total Charges to Appropriations 1,454,202 1,605,095 858,814 746,281
Budgetary Fund Balance, June 30 77,745$ (69,848)$ 678,660$ 748,508$
73
6.4.a
Packet Pg. 136
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
TRANSPORTATION GRANT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (923,982)$ (923,982)$ (923,982)$ -$
Resources (Inflows):
Intergovernmental 7,682,387 7,682,387 924,125 (6,758,262)
Transfers in - - 220 220
Amounts Available for Appropriations 6,758,405 6,758,405 363 (6,758,042)
Charges to Appropriation (Outflow):
Transfers out 7,682,387 7,721,103 - 7,721,103
Total Charges to Appropriations 7,682,387 7,721,103 - 7,721,103
Budgetary Fund Balance, June 30 (923,982)$ (962,698)$ 363$ 963,061$
74
6.4.a
Packet Pg. 137
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
INTEGRATED WASTE MANAGEMENT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,221,180$ 1,221,180$ 1,221,180$ -$
Resources (Inflows):
Charges for services 540,000 540,000 532,017 (7,983)
Use of money and property 12,000 16,000 15,688 (312)
Miscellaneous - - 75,000 75,000
Amounts Available for Appropriations 1,773,180 1,777,180 1,843,885 66,705
Charges to Appropriation (Outflow):
Community development 571,333 688,963 561,193 127,770
Transfers out 112,220 112,220 112,220 -
Total Charges to Appropriations 683,553 801,183 673,413 127,770
Budgetary Fund Balance, June 30 1,089,627$ 975,997$ 1,170,472$ 194,475$
75
6.4.a
Packet Pg. 138
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
TRAFFIC IMPROVEMENT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,519,317$ 1,519,317$ 1,519,317$ -$
Resources (Inflows):
Licenses and permits 168,562 168,562 9,883 (158,679)
Use of money and property 5,000 15,000 18,857 3,857
Amounts Available for Appropriations 1,692,879 1,702,879 1,548,057 (154,822)
Charges to Appropriation (Outflow):
Highways and streets - 16,465 3,695 12,770
Transfers out 1,096,281 1,519,698 543,858 975,840
Total Charges to Appropriations 1,096,281 1,536,163 547,553 988,610
Budgetary Fund Balance, June 30 596,598$ 166,716$ 1,000,504$ 833,788$
76
6.4.a
Packet Pg. 139
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
SEWER MITIGATION FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 109,506$ 109,506$ 109,506$ -$
Resources (Inflows):
Use of money and property - 1,500 1,591 91
Amounts Available for Appropriations 109,506 111,006 111,097 91
Charges to Appropriation (Outflow):
Transfers out 109,000 109,000 - 109,000
Total Charges to Appropriations 109,000 109,000 - 109,000
Budgetary Fund Balance, June 30 506$ 2,006$ 111,097$ 109,091$
77
6.4.a
Packet Pg. 140
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY IMPROVEMENT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 267,984$ 267,984$ 267,984$ -$
Resources (Inflows):
Intergovernmental 65,000 65,000 72,892 7,892
Use of money and property 1,200 2,800 2,892 92
Amounts Available for Appropriations 334,184 335,784 343,768 7,984
Charges to Appropriation (Outflow):
Transfers out 219,705 325,958 159,694 166,264
Total Charges to Appropriations 219,705 325,958 159,694 166,264
Budgetary Fund Balance, June 30 114,479$ 9,826$ 184,074$ 174,248$
78
6.4.a
Packet Pg. 141
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
MTA GRANT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental 3,517,094 3,517,094 48,650 (3,468,444)
Use of money and property - - 33 33
Amounts Available for Appropriations 3,517,094 3,517,094 48,683 (3,468,411)
Charges to Appropriation (Outflow):
Transfers out 3,517,094 3,561,663 48,650 3,513,013
Total Charges to Appropriations 3,517,094 3,561,663 48,650 3,513,013
Budgetary Fund Balance, June 30 -$ (44,569)$ 33$ 44,602$
79
6.4.a
Packet Pg. 142
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
BEVERAGE CENTER RECYCLING GRANT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 51,569$ 51,569$ 51,569$ -$
Resources (Inflows):
Intergovernmental 14,604 14,604 29,111 14,507
Use of money and property 500 500 849 349
Amounts Available for Appropriations 66,673 66,673 81,529 14,856
Charges to Appropriation (Outflow):
Community development 41,500 41,500 27,485 14,015
Total Charges to Appropriations 41,500 41,500 27,485 14,015
Budgetary Fund Balance, June 30 25,173$ 25,173$ 54,044$ 28,871$
80
6.4.a
Packet Pg. 143
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
USED OIL BLOCK GRANT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 15,571$ 15,571$ 15,571$ -$
Resources (Inflows):
Intergovernmental 15,700 15,700 15,769 69
Use of money and property 100 100 175 75
Amounts Available for Appropriations 31,371 31,371 31,515 144
Charges to Appropriation (Outflow):
Community development 16,300 16,300 14,223 2,077
Total Charges to Appropriations 16,300 16,300 14,223 2,077
Budgetary Fund Balance, June 30 15,071$ 15,071$ 17,292$ 2,221$
81
6.4.a
Packet Pg. 144
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PARK AND FACILITY DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 920,448$ 920,448$ 920,448$ -$
Resources (Inflows):
Intergovernmental 345,900 345,900 406,119 60,219
Use of money and property 4,500 13,000 11,590 (1,410)
Amounts Available for Appropriations 1,270,848 1,279,348 1,338,157 58,809
Charges to Appropriation (Outflow):
Transfers out 897,916 1,146,200 765,786 380,414
Total Charges to Appropriations 897,916 1,146,200 765,786 380,414
Budgetary Fund Balance, June 30 372,932$ 133,148$ 572,371$ 439,223$
82
6.4.a
Packet Pg. 145
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG FUND)
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Intergovernmental 204,096 429,096 119,965 (309,131)
Amounts Available for Appropriations 204,096 429,096 119,965 (309,131)
Charges to Appropriation (Outflow):
Community development 129,813 118,624 92,195 26,429
Transfers out 136,301 587,801 27,770 560,031
Total Charges to Appropriations 266,114 706,425 119,965 586,460
Budgetary Fund Balance, June 30 (62,018)$ (277,329)$ -$ 277,329$
83
6.4.a
Packet Pg. 146
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
CITIZENS OPTION FOR PUBLIC SAFETY (COPS) FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 161,997$ 161,997$ 161,997$ -$
Resources (Inflows):
Intergovernmental 100,000 100,000 168,740 68,740
Use of money and property 1,500 3,000 2,978 (22)
Amounts Available for Appropriations 263,497 264,997 333,715 68,718
Charges to Appropriation (Outflow):
Public safety 6,200 9,301 9,867 (566)
Capital outlay 5,000 3,000 2,435 565
Transfers out 92,935 98,958 98,958 -
Total Charges to Appropriations 104,135 111,259 111,260 (1)
Budgetary Fund Balance, June 30 159,362$ 153,738$ 222,455$ 68,717$
84
6.4.a
Packet Pg. 147
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
CALIFORNIA LAW ENFORCEMENT EQUIPMENT PROGRAM (CLEEP) FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 31,944$ 31,944$ 31,944$ -$
Resources (Inflows):
Use of money and property 200 400 391 (9)
Amounts Available for Appropriations 32,144 32,344 32,335 (9)
Charges to Appropriation (Outflow):
Capital outlay 10,000 11,148 11,148 -
Total Charges to Appropriations 10,000 11,148 11,148 -
Budgetary Fund Balance, June 30 22,144$ 21,196$ 21,187$ (9)$
85
6.4.a
Packet Pg. 148
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE MAINTENANCE DISTRICT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 33,753$ 33,753$ 33,753$ -$
Resources (Inflows):
Taxes 684,000 689,302 685,863 (3,439)
Transfers in 201,547 201,547 95,423 (106,124)
Amounts Available for Appropriations 919,300 924,602 815,039 (109,563)
Charges to Appropriation (Outflow):
Highways and Streets 879,649 945,059 748,228 196,831
Total Charges to Appropriations 879,649 945,059 748,228 196,831
Budgetary Fund Balance, June 30 39,651$ (20,457)$ 66,811$ 87,268$
86
6.4.a
Packet Pg. 149
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
MEASURE R LOCAL RETURN FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 728,689$ 728,689$ 728,689$ -$
Resources (Inflows):
Intergovernmental 645,877 645,877 643,438 (2,439)
Use of money and property 5,500 11,000 9,642 (1,358)
Amounts Available for Appropriations 1,380,066 1,385,566 1,381,769 (3,797)
Charges to Appropriation (Outflow):
Transfers out 722,821 1,484,821 700,816 784,005
Total Charges to Appropriations 722,821 1,484,821 700,816 784,005
Budgetary Fund Balance, June 30 657,245$ (99,255)$ 680,953$ 780,208$
87
6.4.a
Packet Pg. 150
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PEG FEES FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 173,899$ 173,899$ 173,899$ -$
Resources (Inflows):
Taxes 100,000 100,000 83,151 (16,849)
Use of money and property 1,500 2,700 2,789 89
Amounts Available for Appropriations 275,399 276,599 259,839 (16,760)
Charges to Appropriation (Outflow):
Capital outlay 85,000 115,000 7,368 107,632
Total Charges to Appropriations 85,000 115,000 7,368 107,632
Budgetary Fund Balance, June 30 190,399$ 161,599$ 252,471$ 90,872$
88
6.4.a
Packet Pg. 151
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
WASTE HAULER FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 77,818$ 77,818$ 77,818$ -$
Resources (Inflows):
Licenses and permits 125,490 125,490 125,525 35
Use of money and property 1,000 1,000 1,158 158
Amounts Available for Appropriations 204,308 204,308 204,501 193
Charges to Appropriation (Outflow):
Transfers out 202,023 204,957 115,622 89,335
Total Charges to Appropriations 202,023 204,957 115,622 89,335
Budgetary Fund Balance, June 30 2,285$ (649)$ 88,879$ 89,528$
89
6.4.a
Packet Pg. 152
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 18,047$ 18,047$ 18,047$ -$
Resources (Inflows):
Intergovernmental 453,985 442,851 58,214 (384,637)
Miscellaneous 503,000 503,000 115,243 (387,757)
Transfers in 18,555,369 21,527,779 4,285,296 (17,242,483)
Amounts Available for Appropriations 19,530,401 22,491,677 4,476,800 (18,014,877)
Charges to Appropriation (Outflow):
Public works - - 1,833,074 (1,833,074)
Capital outlay t 19,596,438 22,698,631 2,933,867 19,764,764
Total Charges to Appropriations 19,596,438 22,698,631 4,766,941 17,931,690
Budgetary Fund Balance, June 30 (66,037)$ (206,954)$ (290,141)$ (83,187)$
90
6.4.a
Packet Pg. 153
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PUBLIC FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 29$ 29$ 29$ -$
Resources (Inflows):
Use of money and property - - 104 104
Transfers in 860,606 860,606 859,138 (1,468)
Amounts Available for Appropriations 860,635 860,635 859,271 (1,364)
Charges to Appropriation (Outflow):
Debt service:
Principal retirement 400,000 400,000 400,000 -
Interest and fiscal charges 460,606 460,606 459,191 1,415
Total Charges to Appropriations 860,606 860,606 859,191 1,415
Budgetary Fund Balance, June 30 29$ 29$ 80$ 51$
91
6.4.a
Packet Pg. 154
CITY OF DIAMOND BAR
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2017
Totals
Assets:
Current:
Cash and investments 1,003,280$ 537,236$ 454,217$ 433,370$ 2,428,103$
Receivables:
Accounts - - - 2,208 2,208
Total Current Assets 1,003,280 537,236 454,217 435,578 2,430,311
Noncurrent:
Capital assets - net of accumulated depreciation - 130,191 216,482 - 346,673
Total Noncurrent Assets - 130,191 216,482 - 346,673
Total Assets 1,003,280$ 667,427$ 670,699$ 435,578$ 2,776,984$
Liabilities:
Current:
Accounts payable -$ 1,568$ -$ -$ 1,568$
Due to other governments 81,774 - - - 81,774
.
Total Current Liabilities 81,774 1,568 - - 83,342
Total Liabilities 81,774 1,568 - - 83,342
Net Position:
Investment in capital assets - 130,191 216,482 - 346,673
Unrestricted 921,506 535,668 454,217 435,578 2,346,969
Total Net Position 921,506 665,859 670,699 435,578 2,693,642
1,003,280$ 667,427$ 670,699$ 435,578$ 2,776,984$
Liabilities and Net Position:
Total Liabilities and Net Position
Governmental Activities - Internal Service Funds
Self
Insurance
Fund
Equipment
Replacement
Fund
Computer
Equipment
Replacement
Building
Facility &
Maintenance
92
6.4.a
Packet Pg. 155
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2017
Totals
Operating Revenues:
Sales and service charges -$ -$ -$ 10,291$ 10,291$
Total Operating Revenues - - - 10,291 10,291
Operating Expenses:
Administration and general - 20,918 - - 20,918
Insurance premiums 530,772 - - - 530,772
Equipment repair and maintenance - 23,137 11,132 24,552 58,821
Depreciation expense - 39,982 120,840 - 160,822
Total Operating Expenses 530,772 84,037 131,972 24,552 771,333
Operating Income (Loss)(530,772) (84,037) (131,972) (14,261) (761,042)
Nonoperating Revenues (Expenses):
Interest revenue 8,680 8,005 4,676 8,321 29,682
Total Nonoperating
Revenues (Expenses)8,680 8,005 4,676 8,321 29,682
Income (Loss) Before Transfers (522,092) (76,032) (127,296) (5,940) (731,360)
Transfers in 441,316 - 147,400 - 588,716
Transfers out - - - (153,000) (153,000)
Changes in Net Position (80,776) (76,032) 20,104 (158,940) (295,644)
Net Position:
Beginning of Year 1,002,282 741,891 650,595 594,518 2,989,286
End of Fiscal Year 921,506$ 665,859$ 670,699$ 435,578$ 2,693,642$
Governmental Activities - Internal Service Funds
Self
Insurance
Fund
Equipment
Replacement
Fund
Computer
Equipment
Replacement
Building
Facility &
Maintenance
93
6.4.a
Packet Pg. 156
CITY OF DIAMOND BAR
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2017
Totals
Cash Flows from Operating Activities:
Insurance Premiums paid (530,772)$ -$ -$ -$ (530,772)$
Payments to suppliers (42,830) (45,521) (11,132) (24,552) (124,035)
Cash received from others 81,774 9,000 - 9,142 99,916
Net Cash Provided (Used) by Operating Activitie (491,828) (36,521) (11,132) (15,410) (554,891)
Cash Flows from Non-Capital
Financing Activities:
Cash transfers out - - - (153,000) (153,000)
Cash transfers in 441,316 - 147,400 - 588,716
Net Cash Provided (Used) by
Non-Capital Financing Activities 441,316 - 147,400 (153,000) 435,716
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets - - (13,702) - (13,702)
Net Cash Provided (Used) by
Capital and Related Financing Activities - - (13,702) - (13,702)
Cash Flows from Investing Activities:
Interest received 8,680 8,005 4,676 8,321 29,682
Net Cash Provided (Used) by
Investing Activities 8,680 8,005 4,676 8,321 29,682
Net Increase (Decrease) in Cash
and Cash Equivalents (41,832) (28,516) 127,242 (160,089) (103,195)
Cash and Cash Equivalents at Beginning of Year 1,045,112 565,751 326,976 593,459 2,531,298
Cash and Cash Equivalents at End of Year 1,003,280$ 537,235$ 454,218$ 433,370$ 2,428,103$
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)(530,772)$ (84,037)$ (131,972)$ (14,261)$ (761,042)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation - 39,982 120,840 - 160,822
(Increase) decrease in accounts receivable - 9,000 - (1,149) 7,851
Increase (decrease) in accounts payable (42,830) (1,466) - - (44,296)
Increase (decrease) in due to other governments 81,774 - - - 81,774
Total Adjustments 38,944 47,516 120,840 (1,149) 206,151
Net Cash Provided (Used) by
Operating Activities (491,828)$ (36,521)$ (11,132)$ (15,410)$ (554,891)$
Governmental Activities - Internal Service Funds
Self
Insurance
Fund
Equipment
Replacement
Fund
Computer
Equipment
Replacement
Fund
Building
Facility &
Maintenance
Fund
94
6.4.a
Packet Pg. 157
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2017
This part of the City of Diamond Bar’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information say about the government’s overall financial health.
Contents: Schedules
Financial Trends – These schedules contain trend information to help the reader
understand how the city’s financial performance and well-being have changed over
time.
Revenue Capacity – These schedules contain information to help the reader assess
the city’s most significant local revenue source, the property tax.
Debt Capacity – These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the City’s ability to
issue additional debt in the future.
Demographic and Economic Information – These schedules offer demographic and
economic indicators to help the reader understand the environment within which the
City’s financial activities take place.
Operating Information – These schedules contain service and infrastructure data to
help the reader understand how the information in the City’s financial report relates
to the services the City provides and the activities it performs.
1 - 4
5 - 8
9 - 11
12 - 13
14 - 16
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2008 2009 2010 2011 2012
Governmental activities:
Net investment in capital assets 370,949,296$ 367,529,907$ 377,940,738$ 381,985,940$ 382,660,310$
Restricted for:
Capital projects 2,912,276 3,526,991 2,260,872 146,567 163,603
Community development 889,176 568,280 725,667 1,644,861 958,293
Public safety 541,482 559,920 453,730 285,508
Public works 3,636,487 3,504,339
Debt service 309,533 305,915 319,815 333,694 2
Unrestricted 36,236,504 34,554,084 34,215,610 22,582,318 18,288,491
Total governmental activities net position 411,296,785$ 407,026,659$ 416,022,622$ 410,783,597$ 405,860,546$
(accrual basis of accounting)
Fiscal Year Ended June 30,
City of Diamond Bar
Net Position by Component
Last Ten Fiscal Years
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2013 2014 2015 2016 2017
378,511,311$ 372,068,596$ 368,779,901$ 363,216,277$ 358,765,476$
165,587 135,914 207,205 267,984 184,074
1,084,434 1,174,082 1,482,522 2,382,667 2,066,650
196,503 140,747 171,928 193,941 243,642
3,964,252 4,015,113 3,862,123 4,465,023 3,095,734
3 4 3 29 80
18,508,423 20,894,700 20,659,058 22,742,992 23,047,078
402,430,513$ 398,429,156$ 395,162,740$ 393,268,913$ 387,402,734$
Fiscal Year Ended June 30,
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2008 2009 2010 2011 2012
Expenses:
Governmental activities:
General government 4,473,666$ 5,159,300$ 4,973,685$ 6,370,986$ 6,384,072$
Public safety 4,944,729 5,396,083 5,526,099 5,591,049 6,104,982
Highways and streets 12,034,669 13,931,211 12,287,325 10,619,860 11,248,137
Community development 2,251,196 1,959,303 1,624,547 1,969,540 2,126,906
Parks, recreation and culture 5,188,977 4,950,687 5,091,215 5,153,264 5,559,427
Contritution to OPEB Trust
Interest on long-term debt 392,548 177,633 57,948 72,592 848,976
Total general expenses 29,285,785 31,574,217 29,560,819 29,777,291 32,272,500
Program revenues:
Governmental activities:
Charges for services
General Government 225,553 132,262 131,633 118,016 247,248
Public safety 632,980 596,375 605,262 558,544 491,831
Highways and streets 2,851,187 1,732,985 2,070,167 2,400,272 2,555,900
Community development 567,302 438,563 430,081 955,380 1,006,971
Parks, recreation and culture 1,581,597 1,705,282 1,754,789 1,829,409 1,753,585
Operating grants and contributions 4,307,074 5,588,818 4,358,895 3,685,378 4,992,856
Capital grants and contributions 219,193 2,272,580 15,960,279 40,779 1,242,636
Total governmental activities
program revenues 10,384,886 12,466,865 25,311,106 9,587,778 12,291,027
General revenues:
Taxes
Property taxes 3,927,073 4,001,276 3,837,288 4,187,896 3,951,722
Transient occupancy taxes 800,390 633,075 569,916 642,509 692,162
Sales taxes 4,102,177 3,085,223 3,122,229 3,355,127 3,397,259
Franchise taxes 1,024,710 1,093,039 1,115,980 1,259,471 1,415,924
Other taxes 283,433 199,365 259,384 172,687 202,951
Unrestricted Motor vehicle in lieu 4,563,127 4,687,515 4,599,922 4,766,225 4,646,985
Use of money and property 1,420,988 833,270 618,963 474,598 145,408
Other revenues 4,388 304,463 7,090 91,975 46,342
Loss on disposal of capital asset
Total general revenues 16,126,286 14,837,226 14,130,772 14,950,488 14,498,753
Change in net position (2,774,613) (4,270,126) 9,881,059 (5,239,025) (5,482,720)
Net position at beginning of year 414,071,398 411,296,785 407,026,659 416,022,622 410,783,597
Restatement of net position (885,096.00) 559,669
Net position at end of year 411,296,785$ 407,026,659$ 416,022,622$ 410,783,597$ 405,860,546$
Source:
City Finance Department
Fiscal Year Ended June 30,
City of Diamond Bar
Changes in Net Position
(accrual basis of accounting)
Last Ten Fiscal Years
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Packet Pg. 161
2013 2014 2015 2016 2017
6,942,983$ 7,301,502$ 6,524,968$ 5,812,525$ 6,627,894$
5,831,227 5,627,026 5,929,156 6,216,279 6,586,188
10,197,098 10,599,386 10,225,922 11,966,721 14,178,723
1,980,646 2,346,073 2,587,504 2,127,206 3,231,764
5,591,916 6,463,192 6,300,920 6,137,787 5,164,413
84,761 84,761
487,369 477,201 466,662 455,700 443,480
31,031,239 32,814,380 32,035,132 32,800,979 36,317,223
160,379 770,908 587,081 661,910 811,846
502,948 559,008 523,145 470,722 460,325
2,604,053 2,671,741 5,536,984 4,389,876 2,675,313
1,196,806 1,413,094 2,463,932 1,820,325 2,077,810
1,689,497 1,804,189 1,758,319 1,684,814 1,544,002
4,024,537 4,203,990 4,443,765 3,687,015 3,844,192
690,732 207,971 717,961 1,455,770 359,669
10,868,952 11,630,901 16,031,187 14,170,432 11,773,157
4,080,273 4,307,077 4,448,566 4,665,140 4,951,033
782,952 851,249 935,355 994,476 923,527
3,546,239 3,658,327 3,974,564 4,598,858 4,789,172
1,465,666 1,393,584 1,460,342 1,431,513 1,320,617
333,250 471,455 442,914 523,015 394,961
4,659,994 4,862,100 5,133,910 5,411,143 5,757,423
6,307 256,758 244,275 524,918 58,160
533,475 52,891 114,545 703,457 482,994
-21,057 1,328,681 - - -
15,387,099 17,182,122 16,754,471 18,852,520 18,677,887
(4,775,188) (4,001,357) 750,526 221,973 (5,866,179)
405,860,546 402,430,513 398,429,156 395,162,740 393,268,913
1,345,156 (4,016,942) (2,115,800)
402,430,513$ 398,429,156$ 395,162,740$ 393,268,913$ 387,402,734$
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General fund:2011 2012 2013 2014 2015 2016 2017
Nonspendable:
Prepaid costs 41,451$ 28,114$ 26,331$ 62,752$ 75,887$ 75,866$ 42,108$
Committed to:
Emergency contingencies 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000
Unassigned 16,726,964 12,616,200 13,010,385 15,199,698 17,656,659 19,350,943 20,379,854
Total general fund 21,268,415 17,144,314 17,536,716 19,762,450 22,232,546 23,926,809 24,921,962
All other governmental funds:
Restricted for:
Comm development projects 1,644,861 958,293 1,085,184 1,174,082 1,482,522 2,382,667 2,066,650
Public safety 453,730 285,508 196,503 140,747 171,928 193,941 243,642
Highways and streets 3,271,595 3,170,407 3,964,252 4,015,113 3,862,123 3,541,041 3,095,734
Capital Projects 146,567 164,867 165,587 135,914 207,205 267,984 184,074
Debt service 333,694 2 3 4 3 29 80
Assigned to:
Capital Projects 2,730
Unassigned (3,466) (88,639) (71,561) 18,047 (290,141)
Total all other governmental funds 5,850,447 4,579,077 5,410,793 5,377,221 5,652,220 6,403,709 5,300,039
Total fund balances 27,118,862 21,723,391 22,947,509 25,139,671 27,884,766 30,330,518 30,222,001
2008 2009 2010
General fund:
Reserved 1,864,387$ 1,612,181$ 1,955,477$
Unreserved 31,065,127 30,041,357 28,841,621
Total general fund 32,929,514 31,653,538 30,797,098
All other governmental funds:
Reserved 5,810,250 2,754,526 1,735,077
Unreserved, reported in:
Special revenue funds 4,955,552 5,423,979 5,218,642
Debt Service Fund
Capital projects funds (5,703,854) (2,701,642) (2,020,782)
Total all other governmental funds 5,061,948 5,476,863 4,932,937
Total fund balances 37,991,462$ 37,130,401$ 35,730,035$
Note:
Source: City Finance Department
The City implemented GASB 54,titled "Fund Balance Reporting and Governmental Fund Type Definitions"as of the fiscal year ended
June 30, 2011.
City of Diamond Bar
Fund Balances of Governmental Funds
(modified accrual basis of accounting)
Last Ten Fiscal Years
Fiscal Year Ended June 30
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Packet Pg. 164
2008 2009 2010 2011 2012
Revenues:
Taxes 10,165,881$ 9,119,375$ 8,591,893$ 9,646,883$ 9,664,801$
Special assessments 543,561 550,822 556,989 556,562 547,209
Intergovernmental 9,896,948 12,081,466 11,478,456 9,441,959 11,053,326
Charges for services 1,111,655 1,460,828 3,191,416 3,390,367 3,190,675
Fines and forfeitures 637,484 601,533 607,936 567,575 509,166
Licenses and permits 3,121,476 1,445,324 640,287 818,913 1,127,569
Use of money and property 1,629,257 938,053 648,503 499,377 183,507
Other 826,177 1,018,956 30,766 113,578 54,634
Total revenues 27,932,439 27,216,357 25,746,246 25,035,214 26,330,887
Expenditures:
Current:
General government 3,987,656 5,071,860 4,435,858 4,977,021 5,485,001
Public safety 4,933,958 5,407,476 5,524,279 5,580,507 5,731,595
Public works 4,926,418 5,607,870 5,183,964 5,002,456 6,609,087
Parks, recreation and culture 3,714,762 3,673,282 3,655,029 3,712,194 4,090,551
Community development 2,246,496 1,945,951 1,604,220 1,960,125 2,114,433
Capital outlay 4,271,890 5,508,167 5,161,924 11,480,595 6,702,615
Debt service:
Principal retirement 255,000 265,000 280,000 290,000 12,510,000
Interest and fiscal charges 411,583 187,212 33,904 37,461 406,626
Total expenditures 24,747,763 27,666,818 25,879,178 33,040,359 43,649,908
Excess (deficiency) of
revenues over (under)
expenditures 3,184,676 (450,461) (132,932) (8,005,145) (17,319,021)
Other financing sources (uses):
Bond issued or refinancing 11,790,000
Bonds discount or premium 252,381
Transfers in 7,266,149 6,629,225 4,379,718 2,929,528 6,085,337
Transfers out (7,608,749) (7,039,825) (4,795,374) (3,535,556) (6,494,449)
Proceeds from sale of capital asset
Contribution to OPEB Trust
Total other financing
sources (uses)(342,600) (410,600) (415,656) (606,028) 11,633,269
Net changes in fund balances 2,842,076$ (861,061)$ (548,588)$ (8,611,173)$ (5,685,752)$
Debt service as a
percentage of noncapital
expenditures 2.89%1.77%1.35%1.45%35.00%
Source: City Finance Department
Fiscal Year Ended June 30,
City of Diamond Bar
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
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Packet Pg. 165
2013 2014 2015 2016 2017
10,200,419$ 10,638,609$ 10,730,234$ 12,930,081$ 12,698,595$
550,609 549,402 672,492 781,232 769,014
10,427,352 10,281,985 11,185,489 10,384,417 11,668,517
3,238,165 3,321,883 3,344,356 3,101,103 2,899,321
522,142 582,844 523,145 470,722 460,325
1,238,626 1,542,765 5,474,765 4,121,387 2,355,980
30,116 281,752 273,656 563,300 28,478
551,710 85,558 136,786 716,914 561,288
26,759,139 27,284,798 32,340,923 33,069,156 31,441,518
4,214,834 5,115,321 5,040,491 5,092,527 5,475,721
5,678,614 5,602,021 5,914,404 6,201,985 6,576,954
5,263,046 5,698,765 5,216,083 5,531,705 8,964,282
4,050,161 4,406,954 4,225,938 4,232,431 2,723,558
2,010,040 2,225,647 2,540,430 2,313,053 2,985,973
3,031,168 2,518,617 4,646,891 5,598,997 3,041,443
335,000 350,000 365,000 385,000 400,000
502,291 492,159 481,656 470,741 459,191
25,085,154 26,409,484 28,430,893 29,826,439 30,627,122
1,673,985 875,314 3,910,030 3,242,717 814,396
5,195,892 4,856,728 7,084,629 7,287,721 6,395,588
(5,690,201) (5,822,286) (8,249,564) (7,999,925) (6,831,304)
2,282,406
(84,761) (84,761)
(494,309) 1,316,848 (1,164,935) (796,965) (520,477)
1,179,676$ 2,192,162$ 2,745,095$ 2,445,752$ 293,919$
3.49%3.35%3.48%3.25%3.09%
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Fiscal
Year Less Total Taxable Total
Ended Secured Unsecured Other Tax Assessed Direct
June 30, Property Property Property Exemptions Value Tax Rate % Change
2007-08 6,824,177,817$ 109,704,881$ - 39,859,238$ 6,894,023,460$ 0.05485 7.35%
2008-09 7,151,359,322 99,170,064 - 48,909,164 7,201,620,222 0.05270 4.46%
2009-10 7,071,193,381 90,528,493 - 66,422,679 7,095,299,195 0.05274 -1.48%
2010-11 7,183,008,793 81,410,401 - 70,706,628 7,193,712,566 0.05270 1.39%
2011-12 7,347,032,537 77,283,606 - 74,296,191 7,350,019,952 0.05268 2.17%
2012-13 7,471,528,800 76,724,231 - 78,856,697 7,469,396,334 0.05267 1.62%
2013-14 7,765,883,788 69,544,511 - 83,574,453 7,751,853,846 0.05264 3.78%
2014-15 8,201,610,010 70,524,426 - 83,189,280 8,188,945,156 0.05260 5.64%
2015-16 8,649,508,385 72,343,401 - 85,103,082 8,636,748,704 0.05256 5.47%
2016-17 9,174,331,277 75,610,798 - 62,484,967 9,187,457,108 0.05252 6.38%
Note: Exempt values are not included in Total Net Taxable Values.
Source: HDL Coren & Cone and Los Angeles County Auditor/Controller-Property Tax Division.
The assessed valuation data shown above represents the only data currently available with respect to the actual market value
of taxable property and is subject to the limitations described above.
2006/07 - 2015/16 Taxable Property Values
(unaudited)
City of Diamond Bar
Assessed and Estimated Actual Values of Taxable Property
Real Property
$-
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
$8,000,000,000
$9,000,000,000
$10,000,000,000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17Millions
Fiscal Year
Net Assessed Value
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Agency 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Basic Levy*1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Metropolitan Water District 0.00450 0.00430 0.00430 0.00370 0.00370 0.00350 0.00350
Mt. San Antonio College 0.01750 0.02333 0.02571 0.02636 0.02642 0.02896 0.02023
Pomona Unified School Dist 0.11379 0.11577 0.14546 0.17721 0.17364 0.18488 0.16407
Walnut Valley Unified School Dist 0.08462 0.11297 0.11674 0.11839 0.11735 0.12554 0.11342
Total Direct & Overlapping Tax Rates
1.2204 1.2564 1.2922 1.3257 1.3211 1.3429 1.3012
City's Share of 1% Levy Per Prop 13*0.05192 0.05192 0.05192 0.05192 0.05192 0.05192 0.05192
General Obiligation Debt Rate
Redevelopment Rate*
Total Direct Rate*0.05485 0.05270 0.05274 0.05270 0.05268 0.05267 0.05264
*
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared
by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners
are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds for
the Pomona Unified School District or Walnut Valley Unified School Districts in Diamond Bar depending on which school
district the property is located in.
Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping
rates apply to all city property owners.
RDA rate is based on the largest RDA tax rate area(TRA) and includes only rate(s) from indebtedness adopted prior to 1989
per California State statute. RDA direct and overlapping rates are applied only to the incredmental property values.
Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical
section information.
Source: Hdl Coren & Cone
City of Diamond Bar
Direct and Overlapping Property Tax Rates
(Rate per $100 of Assessed Value)
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2014/15 2015/16 2016/17
1.00000 1.00000 1.00000
0.00350 0.00350 0.00350
0.02129 0.02154 0.02400
0.16599 0.15364 0.14368
0.11510 0.09285 0.06601
1.3059 1.2715 1.2372
0.05192 0.05192 0.05192
0.05260 0.05256 0.05252
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2016-17 Percentage of Total
Current Taxpayers Assessed Valuation Net Assessed Valuation
Roic Diamond Hills Plaza LLC 79,448,567$ 0.86%
Lennar Homes of California Inc 47,082,654 0.51%
SRGMF South Grand Diamond Bar LLC 47,070,092 0.51%
BSP Senita Gateway Center LLC 41,100,000 0.45%
Emerald Pointe Apartments LLC 39,076,957 0.43%
Pacifica Trenton Holdings-2 LLC 31,311,101 0.34%
Hua Qing Enterprise LLC 28,708,616 0.31%
Target Corporation 27,883,753 0.30%
Kaiser 27,879,630 0.30%
Muller Rock 2 Gateway 27,187,917 0.30%
Top Ten Total 396,749,287$ 4.32%
City Total 9,187,457,108$
2007-08 Percentage of Total
Taxpayers Nine Years Ago Assessed Valuation Net Assessed Valuation
Behringer Harvard Western Portfolio 39,933,000$ 0.58%
Hampton Apartments at Diamond Bar LP 35,496,990 0.51%
Target Corporation 30,593,344 0.44%
CRP-2 Holdings CC 28,682,236 0.42%
DB Gateway Corporate Inc 26,809,313 0.39%
Muller Rock 2 Gateway 24,022,387 0.35%
Gateway Corporate Center LP 19,250,000 0.28%
Hidden Manna Corporation 19,020,602 0.28%
Ari Diamond Bar LP 18,783,376 0.27%
Millennium Diamond Road Partners LLC 17,998,919 0.26%
Top Ten Total 260,590,167$ 3.78%
City Total 6,894,023,460$
Source: Hdl Coren & Cone.
City of Diamond Bar
Top 10 Property Taxpayers
Current Year and Nine Years Ago
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Fiscal Year Taxes Levied
Ended for the
June 30 Fiscal Year Amount % to Levy Years % to Levy
2008 3,598,889 3,276,908 91.05%321,981 8.95%
2009 3,760,371 3,436,585 91.39%323,786 8.61%
2010 3,704,133 3,412,996 92.14%291,137 7.86%
2011 3,750,806 3,505,792 93.47%245,015 6.53%
2012 3,844,101 3,506,696 91.22%337,405 8.78%
2013 3,908,533 3,778,461 96.67%130,072 3.33%
2014 4,075,791 3,960,684 97.18%115,107 2.82%
2015 4,326,040 4,189,390 96.84%136,650 3.16%
2016 4,568,789 4,412,561 96.58%156,228 3.42%
2017 4,842,897 4,643,891 95.89%199,007 4.11%
Source: Los Angeles County Auditor/Controller.
City Finance Department
Fiscal Year of Levy
CITY OF DIAMOND BAR, CALIFORNIA
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
(unaudited)
Collections in
Subsequent
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Fiscal Year Lease Unamortized Total Total % of Debt
Ended Revenue Bond Premium Governmental Primary Personal Per
June 30 Bonds (a) (Discount) Activities Government Income (b) Capita (b)
2008 13,025,000$ (114,625)$ 12,910,375$ 12,910,375$ 0.68% 215
2009 12,760,000 (110,040) 12,649,960 12,649,960 0.66% 210
2010 12,480,000 (105,455) 12,374,545 12,374,545 0.66% 223
2011 12,190,000 (100,869) 12,089,131 12,089,131 0.62% 217
2012 11,470,000 243,853 11,713,853 11,713,853 0.63% 210
2013 11,135,000 229,727 11,364,727 11,364,727 0.57% 203
2014 10,785,000 215,601 11,000,601 11,000,601 0.55% 195
2015 10,420,000 201,475 10,621,475 10,621,475 0.55% 188
2016 10,035,000 187,349 10,222,349 10,222,349 0.53% 179
2017 9,635,000 173,223 9,808,223 9,808,223 0.50% 172
Note:
(a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial statements.
(b) Details regarding the City's population and personal income can be found in the Demographic and Economic
Statistics Table.
Source: City Finance Department
Governmental Activities
CITY OF DIAMOND BAR, CALIFORNIA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Unaudited)
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Gross Bonded % Applicable Net Bonded
Debt Balance To City (1) Debt
Direct Debt as of June 30, 2017
Diamond Bar Lease Revenue Bond 9,635,000$ 100.000 9,635,000$
Net Unamortized Bond Premium 173,223 100.000 173,223
9,808,223
Overlapping Debts as of June 30, 2017 (2)
330.10 Metropolitan Water District 36,281,674 0.850 308,298
809.54 Mt San Antonio CCD DS 2001, 2008 Series D 394,812 11.060 43,667
809.56 Mt San Antonio CCD DS 2008 Series 13A 200,561,691 11.060 22,182,496
809.57 Mt San Antonio CCD DS 2008 Series 2013B 8,460,000 11.060 935,692
809.58 Mt San Antonio CCD DS 2013 Series A 67,410,000 11.060 7,455,671
809.59 Mt San Antonio CCD DS 2013 Series B 40,990,000 11.060 4,533,570
809.60 Mt San Antonio CCD DS 2008 Series 2015C 19,500,000 11.060 2,156,736
809.61 Mt San Antonio CCD DS 2015 Ref Bonds 19,130,000 11.060 2,115,814
915.62 Pomona Unified School District 2000 Ser A 13,390,000 19.799 2,651,053
915.64 Pomona Unified SD Refunding 2001 Ser A 12,295,000 19.799 2,434,257
915.71 Pomona Unified School District 2008 Series A 3,590,000 19.799 710,775
915.72 Pomona USD DS 2008 Series B 2,990,000 19.799 591,983
915.73 Pomona USD 2008 Series C 40,525,000 19.799 8,023,445
915.74 Pomona USD DS 2012 Refunding Bond Series A 28,895,000 19.799 5,720,850
915.75 Pomona USD DS 2012 Refunding Bond Series B 13,875,000 19.799 2,747,077
915.76 Pomona USD DS 2008 Series D QSCBS 20,970,000 19.799 4,151,799
915.79 Pomona USD DS 2015 Ref Bonds 39,860,000 19.799 7,891,783
915.82 Pomona USD DS 2016 Ref Bonds 113,358,077 19.799 22,443,486
980.60 Walnut Valley Unified USD DS 2000 Series E 11,428,114 60.198 6,879,469
980.62 Walnut Valley Unified SD 2007 Series A (Measure S) 5,167,108 60.198 3,110,483
980.64 Walnut Valley Unified SD 2011 Refunding 25,685,606 60.198 15,462,160
980.65 Walnut Valley Unified SD 2007 Series B Meas. S 1,160,000 60.198 698,294
980.67 Walnut Valley Unified SD 2012 Ref Bonds 2,070,000 60.198 1,246,094
980.68 Walnut Valley USD 2007 Series C 195,887 60.198 117,920
980.69 Walnut Valley USD 2014 Ref Bonds Series A 15,000,000 60.198 9,029,664
980.70 Walnut Valley USD 2014 Ref Bonds Series B 8,700,000 60.198 5,237,205
980.71 Walnut Valley USD 2016 Ref Bonds 40,010,000 60.198 24,085,124
Total Overlapping Debts:791,892,969 162,964,865
Grand Total Direct and Overlapping Debt:801,527,969$ 172,773,088$
Debt to Assessed Valuation Ratios as of June 30, 2017:
2016/17 Net Assessed Valuation: $ 9,187,457,108 Direct Debt 0.10%$172
2016 Total City Population: 57,066 Overlapping Debt 1.77%$2,856
Total Debt 1.88%$3,028
Note:
(1)Percentage of direct and overlapping agency's assessed valuation located within boundaries of the city.
(2)The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city.
Source:
Hdl Coren & Cone
U.S. Census Bureau
City Finance Department
(unaudited)
CITY OF DIAMOND BAR, CALIFORNIA
Direct and Overlapping Debt
June 30, 2017
112
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Gross Bonded % Applicable Net Bonded
Debt Balance To City (1) Debt
Direct Debt as of June 30, 2008
146.01 Diamond Bar Lease Revenue Bond 13,025,000$ 100.000 13,025,000$
Unamortized Discount (114,625) 100.000 (114,625)
12,910,375
Overlapping Debts
330.10 Metropolitan Water District 150,054,336 0.870 1,304,724
809.50 Mt San Antomio CCD 2001 Series A 4,470,000 10.596 473,636
809.51 Mt San Antomio CCD 2004 Series B 13,300,000 10.596 1,409,252
809.52 Mt San Antomio CCD 2005 Bond 71,525,843 10.596 7,578,793
809.53 Mt San Antomio CCD 2006 Series C 79,996,203 10.596 8,476,302
915.57 Pomona Unified AD Refund Series 1997A 37,450,000 19.764 7,401,767
915.62 Pomona Unified SD 2000 Series A 18,505,000 19.764 3,657,402
915.63 Pomona Unified SD 1998 Series D 190,000 19.764 37,552
915.64 Pomona Unified SD Ref 2001 Series A 19,680,000 19.764 3,889,633
915.65 Pomona Unified SD Ref 2002 Series A 8,750,000 19.764 1,729,385
915.66 Pomona Unified SD Ref 2002 Series B 13,545,000 19.764 2,677,088
915.67 Pomona Unified SD Ref 2002 Series C 14,025,000 19.764 2,771,957
915.68 Pomona Unified SD Ref 2002 Series D 14,320,000 19.764 2,830,262
915.69 Pomona Unified SD Ref 2002 Series E 21,859,163 19.764 4,320,332
980-50 Walnut Valley Unif. 2007 Series A 36,800,887 58.750 21,620,455
980.55 Walnut Valley Unified SD Series 1997A 31,867,718 58.923 18,777,407
980.56 Walnut Valley Unified SD 2000 Series A 640,000 58.923 377,107
980.57 Walnut Valley Unified SD 2000 Series B 400,000 58.923 235,692
980.58 Walnut Valley Unified SD 2000 Series C 7,160,000 58.923 4,218,885
980.59 Walnut Valley Unified SD 2000 Series D 21,763,114 58.923 12,823,474
980.60 Walnut Valley Unified SD 2000 Series E 6,001,837 58.923 3,536,461
980.61 Walnut Valley Unified SD 2005 Ref Bds 11,835,000 58.923 6,973,534
584,139,101 117,121,100
Grand Total Direct and Overlapping Debt:597,049,476$ 130,031,475$
2007/08 Net Assessed Valuation: $ 6,894,023,460
Debt to Assessed Valuation Ratios:
2008 Total City Population: 59,920 Direct Debt 0.19%$215
Overlapping Debt 1.70%$1,955
Total Debt 1.89%$2,170
Note:
(1)Percentage of direct and overlapping agency's assessed valuation located within boundaries of the city.
(2)The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city.
Source:
Hdl Coren & Cone
U.S. Census Bureau
City Finance Department
CITY OF DIAMOND BAR, CALIFORNIA
Direct and Overlapping Debt
June 30, 2008
(unaudited)
113
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Fiscal Year 2013 2014 2015 2016 2017
Net assessed value 7,469,396,334$ 7,751,853,846$ 8,188,945,156$ 8,636,748,704$ 9,187,457,108$
Add back: Exemptions 78,856,697 83,574,453 83,189,280 85,146,082 62,484,967
Gross assessed value 7,548,253,031 7,835,428,299 8,272,134,436 8,721,894,786 9,249,942,075
Conversion percentage 25%25%25%25%25%
Adjusted assessed valuation 1,887,063,258 1,958,857,075 2,068,033,609 2,180,473,697 2,312,485,519
Debt limit percentage 15%15%15%15%15%
Debt limit 283,059,489 293,828,561 310,205,041 327,071,054 346,872,828
City Debts:
Revenue bonds 11,135,000 10,785,000 10,420,000 10,035,000 9,635,000
Unamortized Bond Premium 229,727 215,601 201,475 187,349 173,223
Legal debt margin 271,694,762$ 282,827,960$ 299,583,566$ 316,848,705$ 337,064,605$
Fiscal Year 2008 2009 2010 2011 2012
Net assessed value 6,894,023,460$ 7,201,620,222$ 7,095,299,195$ 7,193,712,566$ 7,350,019,952$
Add back: Exemptions 39,859,238 48,909,164 66,422,679 70,706,628 74,296,191
Gross assessed value 6,933,882,698 7,250,529,386 7,161,721,874 7,264,419,194 7,424,316,143
Conversion percentage 25%25%25%25%25%
Adjusted assessed valuation 1,733,470,675 1,812,632,347 1,790,430,469 1,816,104,799 1,856,079,036
Debt limit percentage 15%15%15%15%15%
Debt limit 260,020,601 271,894,852 268,564,570 272,415,720 278,411,855
City Debts:
Revenue bonds 13,025,000 12,760,000 12,480,000 12,190,000 11,470,000
Unamortized Bond Premium (114,625)(110,040) (105,455)(100,869)243,853
Legal debt margin 247,110,226$ 259,244,892$ 256,190,025$ 260,326,589$ 266,698,002$
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However,
this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal
year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The
computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation
the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local govern-
ment located within the state.
Source: Section 43605 of the California Government Code
Hdl Coren & Cone
City Finance Department
CITY OF DIAMOND BAR, CALIFORNIA
Computation of Legal Debt Margin
Last Ten Fiscal Years
(unaudited)
114
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General Information
Date of Incorporation April 18, 1989
Form of Government Council-Manager
Area 14.88 Square Miles
Miles of Streets 128
Public Safety
Police Protection Los Angeles County Sheriff Department
Fire Protection Los Angeles County Fire Department
Education
School District Pomona Unified School District
Schools 1 High School, 1 Middle School, & 4 Elementary Schools
School District Walnut Valley Unified School District
Schools 1 High School, 2 Middle Schools, & 4 Elementary Schools
Personal Per Capita Median Pop 25+Pop 25+
Calendar Income Personal Household Unemployment Median High School Bachelor
Year Population (In Thousands) Income Income Rate Age Degree Degree
2007 59,629 1,903,585$ 31,924$ 87,224$ 3.60%
2008 59,920 1,929,498 32,201 94,061 5.30%
2009 60,184 1,885,698 31,332 89,185 8.30% 39.2 93.1% 46.7%
2010 55,766 1,960,418 35,154 87,216 9.10% 39.8 92.0% 47.6%
2011 55,819 1,846,158 33,074 90,153 8.80% 40.5 92.5% 47.8%
2012 56,099 1,991,290 35,496 90,181 6.60% 40.6 92.6% 48.8%
2013 56,400 1,984,772 35,191 88,422 5.40% 41.3 92.4% 49.7%
2014 56,426 1,919,782 34,023 90,901 5.30% 40.9 92.0% 48.4%
2015 57,081 1,943,144 34,041 89,221 4.30% 41.1 91.5% 47.9%
2016 57,066 1,978,657 34,673 90,061 3.30% 42.0 92.1% 50.9%
Population Distribution by Race (2010 US Census)Total Percent
Asian 28,106.06 50.40%
White 18,570.08 33.30%
Hispanic or Latino 10,294.40 18.46%
African American 2,174.87 3.90%
Others - 0.00%
Single Family Residential Full Value Sales (01/01/2012-06/30/2017)
Year
Full Value
Sales
Average
Price
Median
Price
Median %
Change
2012 789 484,681 417,500$
2013 814 591,380 500,000 19.76%
2014 701 660,281 535,000 7.00%
2015 726 626,515 551,000 2.99%
2016 822 633,353 574,250 4.22%
2017 353 (Jan-Jul 2017)) 667,147 610,000 6.23%
Source:L.A. County Recorder
HdL Cornen & Cone
US Bureau of the Census. The official population census of the United States is conducted every ten years, most recently in 2010.
Median Household Income were obtained from U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates.
CITY OF DIAMOND BAR, CALIFORNIA
Demographic and Economic Statistics
(unaudited)
115
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2007 2008 2009 2010 2011
Apparel Stores 1,105,000$ 817,000$ 625,000$ 648,000$ 724,000$
Food Stores 12,958,000 13,290,000 12,251,000 11,846,000 11,577,000
Eating and Drinking Places 48,162,000 49,952,000 46,028,000 46,570,000 48,948,000
Building Materials 3,269,000 2,411,000 1,845,000 1,896,000 2,422,000
Service Stations 107,331,000 115,009,000 89,072,000 99,425,000 119,234,000
Other Retail Stores 133,411,000 87,674,000 77,126,000 71,307,000 68,812,000
All Other Outlets 91,698,000 84,554,000 78,453,000 89,288,000 92,733,000
Total 397,934,000$ 353,707,000$ 305,400,000$ 320,980,000$ 344,450,000$
Source: State of California Board of Equalization and The HdL Companies.
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories
presented are intended to provide alternative information regarding the sources of the City's revenue.
CITY OF DIAMOND BAR, CALIFORNIA
Taxable Sales by Category
(unaudited)
116
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2012 2013 2014 2015 2016
905,000$ 1,595,000$ 1,924,000$ 2,072,000$ 2,476,000$
10,189,000 10,527,000 11,010,000 12,487,000 15,866,000
50,623,000 52,796,000 54,241,000 56,680,000 58,666,000
2,275,000 1,757,000 1,482,000 1,877,000 2,375,000
125,532,000 120,371,000 112,487,000 104,360,000 92,419,000
74,365,000 75,645,000 75,280,000 68,373,000 69,377,000
89,638,000 97,801,000 101,276,000 210,800,000 250,911,000
353,527,000$ 360,492,000$ 357,700,000$ 456,649,000$ 492,090,000$
117
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Function 2013 2014 2015 2016 2017
General government 24 24 25 25 27
Community development 88899
Public works 8891017
Community services-(full time)14 14 15 13 0
-(part time)73 56 58 56 0
Parks and recreation-(full time)9
-(part time)50
Total 127 110 115 113 112
Function 2008 2009 2010 2011 2012
General government 24 25 21 24 23
Community development 6 7 8 8 8
Community services 69 71 75 75 75
Public works 10 10 9 9 9
Total 109 113 113 116 115
Note:
The City is a contract city and as such contracts for many of its services. This includes police services, fire
services, building and safety services, engineering, road maintenance and landscape maintenance.
A full-time emplyee is scheduled to work 2,080 hours per year (including vacation and sick leave).
Beginning In FY2017, part of the former Community Services Department, road maintenance and landscape
maintenance, has been centralizd in Public Works.
Source: City Finance Department
Fiscal Year Ended June 30,
Fiscal Year Ended June 30,
CITY OF DIAMOND BAR, CALIFORNIA
Full-time and Part-time City Government Employees
by Function/Program
118
6.4.a
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2013 2014 2015 2016 2017
Police:(in fiscal year) (1)
Physical arrests 630 494 522 702 636
Street Sweeping Parking Citation 3,776 5,774 5,887 5,682 5,289
Fire: (in fiscal year) (2)
Number of emergency calls 2,604 2,760 2,820 3,180 3,331
Inspections 1,477 1,434 1,413 1,667 1,336
Public works: (in fiscal year) (3)
Street resurfacing (miles)8.3 12.5 17.0 19.3 14.4
Parks and recreation:(in fiscal year)(4)
Number of recreation classes(5)2,082 2,623 2,591 2,546 2,338
Number of facility rentals 4,332 4,178 4,491 4,804 4,316
2008 2009 2010 2011 2012
Police: (1)
Physical arrests 543 591 700 647 737
Street Sweeping Parking Citation 5,200 5,103 5,110 4,137 3,766
Fire: (2)
Number of emergency calls 2,595 2,561 2,654 2,594 2,516
Inspections 1,085 1,100 979 1,202 1,287
Public works: (3)
Street resurfacing (miles)18.5 13.8 23.3 12.0 9.2
Parks and recreation:(4)
Number of recreation classes 1,569 1,315 2,456 2,115 2,096
Number of facility rentals 4,103 4,299 4,111 4,147 4,270
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Dep East Regional Operation Bureau
(3) City Public Works Department
(4) City Community Services Department
(5) Includes online classes
Note: Indicators are not available for the general government function.
Function
Fiscal Year Ended June 30,
Function
Fiscal Year Ended June 30,
CITY OF DIAMOND BAR, CALIFORNIA
Operating Indicators by Function
Last Ten Fiscal Years
119
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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Public safety (1)
Police:
Station 1 1 1 1 1 1 1 1 1 1
Patrol units (all shifts combined) 18 18 18 18 18 18 18 18 18 18
Fire stations (2) 3 3 3 3 3 3 3 3 3 3
Highways and streets (3)
Streets (miles) 128 128 129.4 129.4 129.4 129.4 129.4 129.4 130.9 130.9
Streetlights 233 233 294 294 294 294 294 294 294 307
Traffic signals 73 73 73 74 74 74 74 74 74 76
Culture and recreation:(4)
Parks acreage (developed) 62.7 62.7 62.7 63.6 67.9 67.9 67.9 67.9 67.9 72.6
Parks acreage (undeveloped) 439.0 439.4 439.4 440.3 440.3 440.3 440.3 440.3 440.3 440.3
Hiking Trails (developed miles) 2.7 2.7 2.7 2.7 3.2 3.2 3.2 4.0 4.0 4.5
Hiking Trails (undeveloped miles) 5.4 5.4 5.4 5.4 5.0 5.0 5.0 4.1 4.1 4.0
Parks 12131314 15 15151515 16
Public Tennis courts 8 8 8 8 8 8 8 8 8 8
Community centers 3 3 3 3 3 3 3 3 3 3
Golf Course:(5)
County golf courses 1 1 1 1 1 1 1 1 1 1
Sewer (3)
Sanitary sewers (miles) 157 157 158.4 158.4 158.4 161.21 161.21 161.21 161.21 161.38
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Department, Division VIII Office
(3) City Public Works Department
(4) City Community Services Department
(5)LA County Golf Course
Note:
The City is a contract city and as such contracts for many of its services. This includes police services,
fire services, building and safety services, engineering, road maintenance and landscape maintenance.
No capital asset indicators are available for the general government function.
Function
CITY OF DIAMOND BAR, CALIFORNIA
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year Ended June 30,
120
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Agenda #: 6.5
Meeting Date: November 21, 2017
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: FIRST AMENDMENT TO LORBEER MIDDLE SCHOOL USE
AGREEMENT AND AMENDED AND RESTATED COMMUNITY
RECREATION AGREEMENT (PAUL C. GROW PARK).
STRATEGIC
GOAL:
Safe, Sustainable & Healthy Community
RECOMMENDATION:
a. Approve, and Authorize the Mayor to sign, the First Amendment to the Lorbeer
Middle School Use Agreement; and,
b. Approve, and Authorize the Mayor to sign, the Amended and Restated Community
Recreation Agreement related to Paul C. Grow Park.
FINANCIAL IMPACT:
Funding is appropriated in the annual operating budget to provide site maintenance and
staff resources to implement the terms of both agreements.
FIRST AMENDMENT TO LORBEER MIDDLE SCHOOL USE AGREEMENT:
In July 2006, the City and Pomona Unified School District entered into the Lorbe er
Middle School Use Agreement, which memorialized previous City-sponsored facility
improvements, including installation of athletic field lighting, field renovation, and
ongoing turf and landscape maintenance, and established the City as the lead allocator
of facility use when school is not in session. Per the agreement, the initial term may be
extended by mutual consent for successive five year terms thereafter. At the October
10, 2017 Regular Board Meeting, the Pomona Unified School District Board of Directors
approved an amendment to extend the term of the agreement through June 30, 2021.
Lorbeer Middle School is one of three lighted athletic facilities allocated for public
athletic use by the City. Since the execution of the use agreement in 2006, thousands of
hours have been allocated to Diamond Bar youth and adult athletic organizations for
practices, league games, and tournaments. To ensure athletic facility access remains
6.5
Packet Pg. 184
available to Diamond Bar athletic organizations, it is recommended that the First
Amendment to the Lorbeer Middle School Use Agreement be approved and executed
by the Mayor. If approved, the City’s longstanding commitment to meet facility
maintenance and lighting standards would also be extended.
AMENDED AND RESTATED COMMUNITY RECREATION AGREEMENT (PAUL C.
GROW PARK):
The Walnut Valley Unified School District (WVUSD) owns the property known as Quail
Summit Elementary School Site, which includes approximately five (5) acres on the
southern half of the property known as Paul C. Grow Park. Paul C. Grow Park is
maintained and operated as a public facility during non -school hours by the City of
Diamond Bar under a Community Recreation Agreement first executed in March 1999.
With the original term now expired, staff and legal counsel for the City and WVUSD
conferred to review the terms and develop an extension. The resulting Amended and
Restated Agreement maintains the current arrangement for two successive five-year
terms. At the conclusion of each five-year term, City and WVUSD representatives will
meet to review and update the terms to best facilitate the shared use of the site. To
maintain community access to this neighborhood park, it is recommended that the
Amended and Restated Community Recreation Agreement be approved and
executed by the Mayor. If approved, the City’s longstanding commitment to meet
facility maintenance standards would also be extended.
LEGAL REVIEW:
The City Attorney has reviewed and approved the First Amendment to Lorbeer Middle
School Use Agreement and the Amended and Restated Joint Use Agreement related to
Paul C. Grow Park.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 6.5.a First Amendment to Lorbeer Middle School Use Agreement
6.5
Packet Pg. 185
2. 6.5.b Lorbeer Middle School Use Agreement - 1996
3. 6.5.c Community Recreation Agreement - 1999 (Paul C. Grow Park)
4. 6.5.d Amended and Restated Community Recreation Agreement (Paul C. Grow
Park)
6.5
Packet Pg. 186
1
City of Diamond Bar
Amendment to Use Agreement (Lorbeer Field)
BA: 10 10 17 mohlaw
FIRST AMENDMENT
TO
LORBEER MIDDLE SCHOOL
USE AGREEMENT
THIS FIRST AMENDMENT TO LORBEER MIDDLE SCHOOL USE AGREEMENT
("Amendment") is made effective as of October 11, 2017, by and between POMONA UNIFIED
SCHOOL DISTRICT, a public agency of the State of California ("District"), and CITY OF
DIAMOND BAR, a municipal corporation of the State of California ("City").
RECITALS
This Amendment is made with reference to the following facts:
A.District and City have entered into that certain Lorbeer Middle School Use
Agreement dated July 26, 2006 ("Agreement"), under which District has agreed to allow City to
use the Permitted Field and the Restroom Facilities at Lorbeer Middle School at certain
designated times and City has agreed to maintain the Permitted Field and Restroom Facilities in
the manner set forth in the Agreement,all for the Term of the Agreement.
B.District and City now desire to amend the Agreement to extend the Term of the
Agreement through June 30, 2021,all on the terms and conditions provided below.
C.Unless expressly provided otherwise, all capitalized terms and phrases used in this
Amendment shall have the same meanings as set forth in the Agreement.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the covenants and agreements contained
herein, the parties hereby amend the Agreement, as follows:
1.Term.In accordance with Section 2 of the Agreement,the Term of the Agreement is
hereby extended through June 30, 2021.
6.5.a
Packet Pg. 187
2
City of Diamond Bar
Amendment to Use Agreement (Lorbeer Field)
BA: 10 10 17 mohlaw
2.Effect of This Amendment.The provisions of this Amendment shall constitute an
integral part of the Agreement and in the event of a conflict between the Agreement and
this Amendment, the terms of this Amendment shall control. All other terms and
conditions of the Agreement shall remain in full force and effect, except as amended by
this Amendment.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the effective
date hereof.
CITY OF DIAMOND BAR POMONA UNIFIED SCHOOL DISTRICT
a municipal corporation a public agency of the State of California
By: ___________________________________________________________________
Jimmy Lin, Mayor Leslie A. Barnes, Assistant Superintendent/
Chief Financial Officer
Attest: ______________________________Approved by Board: _________________
Daniel Fox, City Manager
Approved as to Form:
Approved as to Form:
MUNDELL, ODLUM & HAWS
____________________________________General Counsel
David DeBerry, City Attorney
___________________________________
Approved by City Council: ______________
6.5.a
Packet Pg. 188
LORBEER MIDDLE SCHOOL USE AGREEMENT
CITY OF DIAMOND BAR - POMONA UNIFIED SCHOOL DISTRICT
This Agreement ("Agreement's is made and entered into this 26th day of
Ju y 2006, by the City of Diamond Bar (City', and the Pomona Unified School
District ('District'.
Recitals
A. Chapter 10 of Part 7 of Division 1 of Title 1 (§§10900 et seq.) of the Education
Code of the State of California authorizes and empowers school districts and cities to
organize, promote and conduct programs of community recreation, to establish systems of
playgrounds and recreation, and to acquire, improve, maintain, and operate centers within
or without the territorial limits of the City.
B. The City and the District entered into that certain Agreement for Use of Facilities,
dated October 4, 1994 (`Use Agreement', that provided, inter alfa, for the cooperative
development, use, and maintenance of certain school and recreation areas, facilities, and
buildings described in the Agreement.
C. The City and the District also entered into that certain Addendurn to Agreement
for Use of Facilities, dated June 17, 1997 ('Addendum', acknowledging, as a public benefit
to the community, the capital improvement lighting project ('Lorbeer Lighting Project")
at the Lorbeer Middle School ('Lorbeer' football field ('Football Field', depicted on
Exhibit "A" funded in its entirety by the City, and according to the terms of the existing Use
Agreement.
D. The City advised the District that the Lorbeer Lighting Project construction was
completed and accepted by the City on January 4, 2000 based on the Notice of Completion
for the Lorbeer Lighting Project.
Now, Therefore, in consideration of the mutual covenants and conditions contained herein,
the parties hereto agree as follows:
1. Lorbeer Only. The parties acknowledge that this Agreement affects only the use of
Lorbeer and, except as specifically provided in this Agreement as it relates solely to Lorbeer,
makes no amendment to or modification of and has no impact on the terms and conditions
of the Use Agreement and the Addendum.
2. Term. The term of this Agreement ("Term's shall be ten (10) years, commencing with
the execution date of this Agreement. Notwithstanding anything to the contrary contained
herein, either party may terminate this Agreement, with or without cause, after giving 180
days written notice thereof to the other party. This Agreement may be extended by mutual
consentfor successive five-year terms thereafter, upon the same terms and conditions herein
contained, as evidenced by a written amendment to this Agreement signed by both parties.
Lorbeer/Diamond Bar Use (7/18/06)
6.5.b
Packet Pg. 189
Nothing in this section is intended to alter the amortization terms stated in Section 10 of this
Agreement.
3. Renovation of Fields.
3.1. On or before September 1, 2006, City shall aerate, reseed, fertilize, top dress and
complete minor irrigation repairs on the Football Field and complete minor improvements to
the running track as agreed upon by both agencies, at City's sole cost and expense,
3.2. Upon the completion of the work listed in Section 3.1 of this Agreement, to
compensate for the additional use of the upper field ("Upper Field', depicted on Exhibit
B", by community users of the City (collectively, "Community Users' during said work
on the Football Field and track, on or before September 21, 2006, City shall return the Upper
Field to a level equal to or better than the condition the Upper Field was in on the day prior
to the closure of the Football Field for said work.
3.3. On or before August 20, 2007, City shall complete at City's sole cost and expense,
the renovation of the Football Field pursuant to the specifications attached as Exhibit "C"
Initial Renovation').
3.4. Upon the completion of the Initial Renovation, to compensate for the additional use
of the Upper Field by Community Users of the City during the renovation of the Football
Field, on or before September 21, 2007, City shall return the Upper Field to a level equal to
or better than the condition the Upper Field was in on the day prior to the closure of the
Football Field for the Initial Renovation.
4. On Going Maintenance and Repair.
4.1. Notwithstanding anything to the contrary contained herein, during the Term, the
City shall maintain the Football Field at a level typical of a City's park that the City
acknowledges shall be at a level equal to or greater than a typical unlighted middle school
football/soccer Feld maintained by District personnel ("Minimum Maintenance Level").
4,2. Maintenance of Football Field provided by City shall include, without implied
limitation, irrigation, mowing, trimming, edging, cleaning, and maintenance of the lighting
system of the Lorbeer Lighting Project ("Lighting System'.
4.3. City shall, at the City's sole cost and expense, remedy any and all damage to the
Lighting System due to community use.
4.4. City is responsible for the removal of all trash left on Lorbeer by Community Users.
With respect to a scheduled use, the City acknowledges that all trash must be removed by
7:30 a.m. of the day following said use.
4.5. City and Community Users shall have use of restroom facilities, as identified on
Exhibit A (collectively, "Restroom Facilities'. The Restroom Facilities shall be maintained
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by the City and serviced after the community's use no later than 11:00 p.m, each night,
seven days per week, and at a level typical of a City's park restroom facility that the City
acknowledges that shall be at a level equal to or greater than a typical athletic field restroom
maintained by District personnel
4.6. City shall repair, cause to be repaired or reimburse District, no later than 30 days
after an invoice from the District, for the cost of repairing damage to any portion of Lorbeer
that occurs as a result of use by the City or Community Users, or resulting from any act or
omission of the City, excepting any reasonable wear and tear by District's use of Lorbeer.
4.7. District shall report to the City, and City and Supervisor, as defined herein, shall
report to District, as soon as practical, any damage to District property by a Community User,
whether during scheduled use or not. Damage resulting from community use that creates
a health and safety issue must be resolved by City immediately. Repair work for all other
damage resulting from community use must be completed by City within 48 hours of its
reporting, or as soon as possible if the 48-hour time period is not feasible.
5. Annual Maintenance. To compensate for extensive use of the Football Field by
Community Users, once a year during the Term, the City shall renovate the Football Field to
a typical football/soccer field maintained by District personnel, but no less than the Minimum
Maintenance Level, including, without implied limitation, aeration, over seeding, fertilizing,
and top dressing the Football Field ('Annual Maintenance'.
5.1. The Football Field shall be secured with a 6' high construction fence and the Football
Field shall remain closed from the day after the last day of school in June until the third
Monday in August for the Annual Maintenance.
5.2. Once a year during the Term, upon the completion of the Annual Maintenance and
no later than September 21, the City shall aerate, over seed, fertilize, and top dress the
Upper Field in recognition of the additional use the Upper Field will receive during the closure
of the Football Field as provided in this Section 5.
6. Lighting System. City shall pay for all electrical and maintenance costs related to the
Lighting System, Utility expenses, including, without implied limitation, the cost of electricity
for the Lighting System, shall be paid by the City to the District on a quarterly basis.
7. Priority of Use. The parties acknowledge that the priorities of use of (i) the Football Field,
and (ii) the Upper Field during the time the Football Field is closed during Annual
Maintenance (individually a "Permitted Field;' and collectively "Permitted Fields', shall
be governed by the previously agreed provisions of the Addendum.
8. Scheduling the Use. The City shall be responsible for scheduling the use of the Football
Field when Lorbeer Middle School is not in session (Use Agreement Period'. The City
acknowledges that on days that Lorbeer Middle School is in session, the Use Agreement
Period does not commence, and no events shall be scheduled, until after 5:00 p.m. for City
or community use. The City acknowledges that the District shall have the right to terminate
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the City's responsibility for scheduling and assume the responsibility for scheduling the use
of the Permitted Field during the Use Agreement Period with 90 days written notice to the
City.
8.1. City shall schedule the Permitted Field during the Use Agreement Period by the
District, City and Community Users for the following two periods: (i) January 1 through July
31, and (ii) August 1 through December 31.
8.2. Notwithstanding anything to the contrary, District retains the right to use at all times
of the day and every day of the week all or a portion of Lorbeer, including, without implied
limitation, the Permitted Field, without the requirement of notice to the City or Community
Users, however, the District will use reasonable efforts to provide at least seven (7) days
notice for a use that has not been previously scheduled.
8.3. A schedule of users shall be presented to District by City no less than 14 days prior
to all scheduled uses.
8.4. City shall have the right to use the Lighting System seven (7) days per week;
provided City complies with all applicable governmental rules and regulations related to the
use of the Lighting System, including, without implied limitation, environmental and light
pollution regulations. City acknowledges this level of use may result in deterioration of the
field conditions of the Football Field and the need for the City to complete field renovation
work in addition to maintenance responsibilities as described in this Agreement.
8.5. The City acknowledges that the Lighting System shall not be used or otherwise
operated after 10:00 p.m.
8.6. No vehicles shall drive or park on grass or asphalt areas that are not designated by
District for driving or parking.
8.7. City shall provide daily supervision of scheduled community use of the Permitted
Field. City's supervision of the Permitted Field shall be provided on a periodic basis during
the day of use, but in no case shall this supervision be considered security or policing of the
entire school campus of Lorbeer, The duties of the City's supervisor ("Supervisor's shall
include, without implied limitation, (i) check and report to. Sheriff's Department of vehicles
that are improperly or illegally parked on asphalt play courts or turf fields of Lorbeer, (ii)
check permits issued by city to Community Users to verify compliance with the conditions
of approval for the permit, (iii) check that the Restrooms Facilities are available to
Community Users to verify proper stocking of paper products and maintain sanitary
conditions throughout the day, (iv) reporting any damage to District and to the City, and (v)
verify trash is picked up by Community Users and that trash cans are emptied into proper
dumpster and trash cans have liners in place.
8.8. The District's students, employees and property shall be respected at all times: Any
violators of this provision shall subject the violator to the immediate loss of use of the,
Permitted Field and access to Lorbeer.
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8.9. Users of the Permitted Field shall at no time interfere with District's students and
employees, District's use of Lorbeer, District's contractors or other District authorized
operations at Lorbeer. Any violators of this provision shall subject the violator to the
immediate loss of use of the Permitted Field and access to Lorbeer.
8.10. All publicly released references to the Permitted Fields and Lorbeer shall
acknowledge District's ownership of the Permitted Fields and Lorbeer.
8.11, Neither the City nor a Community User is allowed to use Permitted Field when
District or City determines that the Permitted Field is unusable due to inclement weather. The
typical closure guideline is one day of closure for each day of rain. Any violators of this
provision shall be subject to the immediate loss of use of the Permitted Field and access to
Lorbeer.
8.12. City may charge and collect fees for community use of the Permitted Field.
9. Casualty
9.1. If any portion of the Lorbeer Lighting Project is substantially damaged or destroyed
by fire, war, earthquake, flood, storm, or other casualty beyond the control of the parties
hereto to such an extent that the damaged portion of the Lorbeer Lighting Project cannot
be restored to its previous condition within 120 days after the happening of the casualty,
then City shall have the option of restoring the damaged portion of the Lorbeer Lighting
Project to the condition as of the date of the casualty. In the event the City does not elect
to perform such restoration, this Agreement shall terminate and the District shall have the
option of sending the City written notice to and City acknowledges that as soon as feasible
to do so, but in no event later than 45 days after receipt of said notice, that City shall remove
the Lorbeer Lighting Project, including, without implied limitation, all fixtures, equipment and
personal property related to the Lorbeer Lighting Project, from Lorbeer and return Lorbeer
to substantially the same condition as prior to installation of the Lorbeer Lighting Project,
normal wear and tear excepted ('Original Condition'. If the Lorbeer Lighting Project is
damaged or destroyed by any of the causes enumerated above and in the event they can
be restored within 120 days after the happening of the casualty, then City shall restore as
soon as feasible to do so and the Agreement shall continue in full force and effect.
9.2. If any portion of Lorbeer is substantially damaged or destroyed by fire, war,
earthquake, flood, storm, or other casualty beyond the control of the parties hereto to such
an extent that (i) the improvements damaged cannot be restored to their previous condition
within 120 days after the happening of the casualty, and/or (ii) the District determines as a
result of the damage to Lorbeer that is in the best interests of the District's students or stafforthepublic, then either party shall have the option of terminating this Agreement as of the
date of the casualty.
10. Termination. Should either party during the Term determine that it is necessary and in
the best interests of the public purposes which it is authorized and empowered to carry out,
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to terminate, in the manner prescribed by this Agreement, the community recreational uses
of the Football Field, upon such termination all improvements installed or constructed on said
facility shall be left in place. Either party may terminate this Agreement, with or without
cause, after giving 180 days written notice thereof to the other party. Upon the giving of
said notice, and the expiration of 180 days, this Agreement shall be of no further force or
effect. Upon termination or expiration of this Agreement, District shall have the option of
requiring the City to remove any and all equipment and materials placed by the City upon
Lorbeer, and to return Lorbeer to its Original Condition. If the District terminates the
Agreement without cause prior to January 4, 2010, District shall compensate City in an
amount equal to the cost the City incurred in constructing the Lighting System ($214,000),
divided by 10 ($21,400), then multiplied by the number of years remaining until January 3,
2010 (individually a Remaining Year) the 10 -year anniversary of the Notice of
Completion, dated January 4, 2000, for the Lorbeer Lighting Project. In such events, and
if the District does not exercise its option to require the City to remove the equipment, title
to such equipment shall be passed to District on the date of termination and upon payment
of compensation due as provided above. If District terminates this Agreement between
January 4 and July 3, then the partial year shall be considered as a full Remaining Year. If
District terminates this Agreement between July 4 and January 3, then the partial year shall
not be considered as a Remaining Year.
11, Indemnification.
11.1. City indemnifies and agrees to protect, defend, save and hold harmless District, its
governing body, the individual members thereof, and all officers, agents, employees and
representatives free and harmless from any and all liability, loss, damage, cost, or expense
arising out of any liability or claim of liability for personal injury, bodily injury to persons,
contractual liability, and damage to property sustained or claimed to have been sustained
of every nature arising out of or in connection with the use of Lorbeer whether such is
authorized by this Agreement or not, by City, or those of any of its officers, employees,
contractors or agents, and/or City's authorized Community Users; and City shall pay for any
and all damage to the property of District, or loss or theft of such property, done or caused
by such persons. District assumes no responsibility whatsoever for any property placed on
Lorbeer. City further waives and agrees to waive all rights of subrogation against District.
Excluded from this indemnity shall be such loss or damage caused by the sole negligence or
willful misconduct of District.
11.2. Except as provided in Section 11A, District shall indemnify, defend and hold
harmless the City, and its officers, agents, servants, and employees, from any and all claims,
demands, actions, causes of action, damages or liability for injury to or death of persons, or
for damage to facility, resulting from or arising out of any actor omissions of District or its
officers, agents servants or employees in the exercise of any right or privilege granted to
District pursuant to this Agreement. Excluded from this indemnity shall be such loss or
damage caused by the sole negligence or willful misconduct of City and its Community Users.
11.3. City shall require all scheduled and authorized Community Users to provide and
maintain in full force and effect a policy of liability insurance with minimum limits of
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1,000,000 combined single limit to protect against the risks associated with their activities
at Lorbeer. Evidence of insurance shall be provided to City and shall be subject to approval
of the City Attorney, and upon written request by the District, also shall be subject to the
written approval of the District's risk manager.
11.4. City shall not authorize use of Lorbeer by any Community User until the Community
User has submitted to City an executed release in the following form:
Agreement of Liability, Assumption of Risk and Release.
a) Community User seeks to use Lorbeer for an athletic activity that poses inherent risks
of personal injury to participants. Community User acknowledges and agrees that both the
Pomona Unified School District ("District'? and the City of Diamond Bar (`'City's are making
Lorbeer available to Community User with the express understanding that Community User
bears all risks associated with use of Lorbeer. Community User understands that District will
not supervise or in any respect be involved with Community User's activities on Lorbeer, and
has no responsibility therefore. Further, Community User agrees and acknowledges that it
accepts and uses Lorbeer in its existing condition, and assumes all risks associated with use
of the field in that condition. Finally, Community User bears full responsibility for the conduct
and safety of all of those participating in its activity on Lorbeer.
b) Community User indemnifies and shall defend, and hold harmless District and City,
and their respective elected and appointed board members, superintendent, officers, officials,
employees, volunteers, attorneys and agents from and against any and all liability, loss,
damage, expense, costs (including without limitation attorneys fees and costs of litigation)
of every nature arising out of or in connection with the its use of Lorbeer as authorized by
City.
c) Community User releases, waives and discharges any claims whatsoever it may have
against District and City, and their respective elected and appointed board members,
superintendent, officers, officials, employees, volunteers, attorneys and agents, whether
known or unknown, arising from its use of Lorbeer. It is understood that this release is a bar
to the commencement of an action of any kind against District and City arising from use of
Lorbeer. ,
d) By its initials below, Community User acknowledges and agrees that it has read,
understood and agreed to this Agreement of Liability, Assumption of Risk and Release, all
of which shall be binding on it and omits assigns, guests and invitees.
11.5. City shall make the evidence of insurance and release required of Community Users
in 113 and 11.4 above available to District upon request.
Any failure to provide by the Community User the required copies of(i) proof of insurance
required by Sections 11.3, and (ii) the separate agreement that, contains the Section 11.4,
shall subject the Community Users to the immediate loss of use of the Permitted Field and
access to, Lorbeer.
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12. Delivery of Notices. All notices permitted or required under this Agreement shall be
given to the respective parties at the following address, or at such other address as the
respective parties may provide in writing for this purpose:
CITY: DISTRICT:
City of Diamond Bar Pomona Unified School District
Director of Community Services Attn: Assistant Superintendent, Business
21825 Copley Drive Services - Fiscal
Diamond Bar, CA 91765-4178 800 South Garey Avenue
Pomona, CA 91766
Such notice shall be deemed made when personally delivered or when mailed, forty-eight
48) hours after deposit in the U.S. Mail, first class postage prepared and addressed to the
party at its applicable address. Actual notice shall be deemed adequate notice on the date
actual notice occurred, regardless of the method of service.
13. Compliance with Laws. City shall keep fully informed of and in with all
local, state and federal laws, rules and regulations in any manner affecting its use of
Lorbeer, including all Cal/OSHA requirements, and shall give all notices required by law.
City shall be liable for all violations of such laws and regulations in connection with its use
of Lorbeer. If City performs any work knowing it to be contrary to such laws, rules and
regulations and without giving written notice to District, City shall be solely responsible
for all costs arising therefrom. City shall defend, indemnify and hold District, its elected
and appointed board members, superintendent, employees, volunteers, attorneys and
agents free and harmless, pursuant to the indemnification provisions of this Agreement,
from any claim or liability arising out of any failure or alleged failure to comply with such
Taws, rules or regulations,
14. Conflict of Laws. This Agreement shall be governed by the laws of the State of
California. This Agreement will not be governed by the Uniform Commercial Code. To
the extent that there is to be delivery or performance of services under this Agreement,
such services will not be deemed "goods" within the definition of the Uniform Commercial
Code.
15. Integration. This Agreement contains the entire agreement of the parties with
respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. Neither of the parties has relied upon any oral or written
representation or oral or written information given to the party by any representative of
the other party.
16. Severability. If one or more of the provisions of this Agreement are hereafter
declared invalid or unenforceable by judicial, legislative or administrative authority of
competent jurisdiction, then the parties hereto agree that the invalidity or
unenforceability of any of the provisions shall not in any way affect the validity or
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enforceability of any other provisions of this Agreement.
17. Modification. No change or modification of the terms or provisions of this Agreement
shall be deemed valid unless set forth in writing and signed by both parties.
18. Construction of Agreement. This Agreement will be liberally construed to effectuate
the intention of the parties with respect to the transaction described herein. In
determining the meaning of, or resolving any ambiguity with respect to, any word, phrase
or provision of this Agreement, neither this Agreement nor any uncertainty or ambiguity
herein will be construed or resolved against either party (including the party primarily
responsible for drafting and preparation of this Agreement), under any rule of
construction or otherwise, it being expressly understood and agreed that the parties have
participated equally or have had equal opportunity to participate in the drafting hereof.
19. Waiver. No waiver of any default shall constitute a waiver of any other default or
breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a party shall give the other party
any contractual rights by custom, estoppel, or otherwise.
20. Headings. The headings of sections of this Agreement have been inserted for
convenience of reference only and shall not affect the interpretation of any of the
provisions of this Agreement.
21. Attorneys' Fees. In the event of any action or proceeding (including, without implied
limitation, any bankruptcy proceeding) to enforce or construe any of the provisions of this
Agreement, the prevailing party in any such action or proceeding shall be entitled to
attorneys' fees and costs.
22. Further Assurances. Each of the parties hereto shall execute and deliver any and all
additional papers, documents and other assurances, and shall do any and all acts and
things reasonably necessary in connection with the performance of their obligations
hereunder and to carry out the intent and agreements of the parties hereto.
23. Assignment. City shall not assign this Agreement or any interests therein without the
prior written approval of the District. Any such attempt to assign or sublet this
Agreement Without District approval shall be invalid.
24. Authority. City has all requisite power and authority to conduct its business and to
execute, deliver, and perform the Agreement. Each party warrants that the individuals
who have signed this Agreement have the legal power, right, and authority to make this
Agreement and bind each respective party.
25. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which shall constitute one and the same
instrument.
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26. Education Code Section 17604. In accordance with Education Code Section 17604, this
Agreement is not valid or an enforceable obligation against the District until approved or
ratified by motion of the Governing Board duly passed and adopted.
27. APPROVED SIGNATURE. IN ADDITION, THIS AGREEMENT IS NOT VALID OR
AN ENFORCEABLE OBLIGATION AGAINST THE DISTRICT UNTIL SIGNED BY THE
SUPERINTENDENT OR HIS APPROVED DESIGNEE.
In Witness Whereof, the parties have executed this Agreement as of the date first above
written.
CITY OF DIAMOND BAR: POMONA UNIFIED SCHOOL DISTRICT
Mayor Pamela J. Lopez, As stan
Superintendent, Business Services - fiscal
Date: ;°; ,
F Approved by Board:
Approved as to form:
G Manager
Date: 'Z-
Approved as o form:
GA orney
I
Date: '
jr oiJ
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07/19/2006 17:15 9098613117 CITY DF DIAMNOD BAR
prhibit aflvv
PAGE 02/03
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07/19/2006 17:15 9098613117.
Exhibit"S"
CITY OF DIAMNOD BAR PAGE 03/03
1 zs
Upper Field
I
ALS: 1" 120'-0°
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Exhibit C
L Working cooperatively with District staff, City shall procure a contract landscape
architect to develop plans and specifications to improve Football Field, track and slope
along Golden Springs.
2. Improvements shall include a separate water meter to irrigate Football Field and
slope.
3. Irrigation improvements to Football Field will be made to ensure proper irrigation.
4. New sod will be placed on Football Field.
5. Improvements to track will be made so it is safe for public and school use.
6. City shall maintain improvements during Term.
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AMENDED AND RESTATED
COMMUNITY RECREATION
AGREEMENT WALNUT VALLEY
UNIFIED SCHOOL DISTRICT
AND CITY OF DIAMOND BAR
THIS AGREEMENT, made and entered into this 1st day of January, 2018 ("Agreement") BY
AND BETWEEN
CITY OF DIAMOND BAR
Herein after referred to as "City"
AND
WALNUT VALLEY UNIFIED SCHOOL DISTRICT
OF LOS ANGELES COUNTY
Hereinafter referred to as "District"
WITNESSETH:
WHEREAS, California Education Code section 10900 et seq. (“Community
Recreation Programs Law”) authorizes public authorities to organize, promote and conduct
such programs of community recreation as will contribute to the attainment of general
educational and recreational objectives for children and adults and further empowers public
authorities to cooperate with each other to attain such objectives;
WHEREAS, District and City are authorized under Community Recreation Programs
Law to enter into joint use agreements to utilize each other's facilities and to operate and
maintain recreation centers (“Recreation Centers”), as defined in Education Code section
10901(f), for community recreation; and
WHEREAS, the Parties intend to use the School Site to offer recreational programs and
services to District students and City residents;
WHEREAS, the District owns a site known as the Quail Summit School Site ("School
Site"), as shown herein on Exhibit "A", which is hereby incorporated as a part of this
Agreement; and
WHEREAS, it is in the public interest for facilities of public agencies to be put to uses
which promote programs of community recreation; and
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WHEREAS, the City and the District have found it to be in the public interest,
economically and practically, to cooperate with each other in regard to the operation of softball
fields, soccer/football fields and appurtenant facilities on a portion of the School Site and
previously entered into an agreement dated March 3, 1999 (the "1999 Agreement") for the purposes of
such cooperation the term of which expired on or about March of 2014; and
WHEREAS, the City and District have continued to cooperate in the joint use of the
Park Site as set forth in the 1999 Agreement; and
WHEREAS, the City and District desire to enter into this Agreement pursuant to the
provisions of Section 10900 to extend, amend and restate certain provisions of the 1999
Agreement; and
WHEREAS, upon approval by both the parties this Agreement shall replace in its
entirety the 1999 Agreement and all amendments and/or other agreements that the City and
District may have entered into with respect to the City's and the District's use of the School
Site for the purposes set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and conditions
contained herein, the parties hereto agree as follows:
1. TERM. The term of this Agreement shall commence on January 1, 2018, and continue in
effect, for two successive terms of five (5) years each terminating on January 1, 2028,
unless sooner terminated as provided herein. During the last six months of the first five
(5) year term, the parties agree to meet and review the terms of this Agreement and
update provision as mutually agreed upon to better facilitate the shared use of the Park
Site.
2. SCOPE OF USE OF PARK SITE. The District agrees to permit the City to use the
south half (approximately 5 acres) of the School Site ("Park Site") in accordance with
the facility program and plans contained in Exhibit "A", attached hereto and
incorporated as a part of this Agreement, for public recreational programs and activities
in accordance with a schedule acceptable to the District and in accordance with Section
3 below.
a. The City may utilize the Park Site without providing monetary consideration to the
District, except as otherwise specified herein.
b. The priority for use of the Park Site shall be regular and special school programs
and as otherwise noted in District’s Board Policies. Activities sponsored by City
shall have next priority based on availability, in the following order: youth
programs (e.g., sports camps, educational activities), other recreation activities
scheduled by City.
c. The Parties agree that each Party shall provide all materials and equipment to be
used in their respective activities. Selected permanent equipment, which is owned
by the District, may be used by the City if any such equipment is identified in
writing.
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d. The City may charge only charge fees to users of the Park Site which do not exceed
the City's estimated reasonable costs in administering the program for which the
fee is charged. The District shall not be responsible to the City for the cost of the
City’s recreation programs or the cost of any third party organization which might
benefit from a particular aspect of this Agreement. The City covenants and agrees
to bear all costs that it should incur with respect to the operation of any recreation
program, including the cost of service of its employees and incidental costs in
connection therewith.
e. Each Party agrees to utilize the Park Site in conformance with applicable Federal
and State law as well as District and City administrative regulations, ordinances,
and policies.
f. The use of the Park Site by City shall be in such a manner, as not to interfere with
the District’s normal use of the School Site, including, but not limited to back to
school nights, school assemblies, and cleaning/gardening activities.
3. SCHEDULE. With respect to the use of the Park Site and other agreements to which
District and City have entered into for their joint use of property (hereafter, "Use
Agreements", District and City shall conduct quarterly meetings for the purpose of
scheduling anticipated uses of the Park Site and other facilities covered under Use
Agreements (“Scheduling Meetings”). The parties shall consult with each other and
develop a schedule of use that will reserve the fields and facilities within the Park Site for
District use during regular school hours and/or any other special school use occasions and
reserve the Park Site for City use during non-school hours during the school year and full
daily use during periods of school vacations and holidays subject to the terms of this
Agreement.
a. At each Scheduling Meeting the District and City shall agree in writing upon a
schedule (“Schedule”) with respect to the use of the Park Site, including, but not
limited to the proposed times, uses and users of the Park Site.
b. After the Schedule is determined at the Scheduling Meetings, both Parties shall
notify each other of any scheduling changes. In the event of an unanticipated event
not included on the Schedule, each Party agrees to reasonably accommodate the
other Party with respect to such event.
c. Notwithstanding anything in this Agreement to the contrary, the District shall have
priority use of the Park Site during the normal school day. As used herein "normal
school day" refers to that period of time when classes are in session, including the
regular school year, summer sessions and inter-sessions (year-round school). In
addition to use during normal school days, District shall have priority use of the
Park Site for school-related activities, events and functions during all times other
than those within normal school days. By way of example and not by way of
limitation, school-related activities include uses for after-school programs, school
athletics, school club activities, parent/teacher association activities, school
fundraisers, graduation ceremonies and related commencement activities. At all
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other times, the City shall have the right to the full and unrestricted use of the Park
Site subject to Section 4 of this Agreement and the City’s use shall not supersede
other agreements already in place.
d. District shall notify City at the Scheduling Meetings of any school athletic events
that are anticipated to extend more than one half (1/2) hour beyond a school’s
closing time so that such athletic events may be included in the schedule which is
agreed upon at the Scheduling Meetings.
e. On non-school days, the Park Site shall be available from 7:00 a.m. until dusk.
4. FEES FOR USE OF PARK SITE. The City shall charge fees in accordance with its duly
adopted fee schedule. The fees charged by the City may not exceed the City's estimated
reasonable costs for administration of City-sponsored events and costs of maintaining the
Park Site. In the event the City desires to charge fees for any City-sponsored events on the
Park Site which exceed its cost, the City shall, prior to scheduling such an event, obtain the
District's written approval, which approval may include revenue-sharing with the District.
The City shall provide its fee schedules for the Park Site to the District upon request.
5. OPERATIONS AND SECURITY. The City shall, during such periods as it is
authorized to use the Park Site, provide at City's own expense such employees as are
necessary for the efficient operation of the recreational programs and activities at the
Park Site. During periods of City use the Park Site shall be operated by the City in
keeping with the best practices to assure proper standards of conduct and safety. City
shall be responsible for the security of the Park Site during non-school use hours.
6. MAINTENANCE.
a. City Obligations. The City shall be responsible for maintenance of the existing
improvements installed on the Park Site including, but not limited to irrigation,
mowing, trimming, edging, pruning, sweeping, wash down, cleaning, and repairing
of landscaping, fences, backstops, irrigation systems, playground equipment,
parking lot, graffiti eradication, the storage and restroom structure; and, if installed,
a playing field lighting system. City shall ensure that the Park Site is maintained in
a clean and safe condition suitable for public use, including but not limited to, the
requirements set forth in the Agreement. Any additional improvements shall be
installed only upon the mutual agreement of the parties.
b. Field Rest, Renovation and Closures. Annual rest and renovation of the playing
field will be a priority. The City and the District will attempt to be flexible in
accommodating user groups, however, concern for the health and safety of the user
takes priority and requires a period of rest and renovation for the playing field. An
annual calendar for regular field maintenance will be developed each year to
include rest and renovation. The District shall have final approval of the field
maintenance calendar.
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Closures of the playing field will be kept to a minimum when playing field is in
playable condition. Priority will be given to maintenance needs and rest and
renovation periods. The playing field may be closed when the health and safety of
participants are threatened due to conditions, including but not limited to, heavy
rains, dense fog, smog alerts, pesticide spraying, herbicide spraying and natural
disasters. The City shall provide to the District a calendar scheduling all pesticide
and/or herbicide spraying and the District shall have final approval of the calendar.
In addition, the City is required to post written notice of pesticide and/or herbicide
spraying five (5) days in advance of pesticide and/or herbicide spraying. The
District has the right to direct closure due to health and safety concerns at its
discretion and in cooperation with the City.
The use of fertilizer on the playing field, including the choice of fertilizer material
and timing for application of fertilizer, shall take into account the possible impact
on students. The City shall propose and the District shall approve a calendar
scheduling the day and time of fertilizer application. Any unscheduled fertilizer
application must be approved by the District a minimum of two weeks in advance
of the proposed date. Use of biosolids is not permitted. The fertilizer material used
may not contain “biosolids,” defined as sewage sludge as specified under 40 Code
of Federal Regulations (CFR) Part 503.
c. Custodial. District and City each shall be responsible for providing custodial
services to clean the Park Site upon completion of the Parties respective use. During
their respective use of the Park Site, City and District shall be responsible for
adequate clean-up of the Park Site and shall require any user who contracts to use
the Park Site with either entity to provide adequate clean-up of the Park Site. All
clean up shall be completed no later than the commencement of the next school
day.
d. Maintenance in Event of Deficiency. If either party fails to comply with the
obligations outlined in this Section, the other party may request full performance
by written notice. If the obligations are not met within five (5) working days after
the receipt of the notice, the other party has the right, but not the duty, to perform
the obligation and recover the direct cost of such performance by invoice submitted
to the non-complying party. The amount billed is payable within thirty (30) days.
7. UTILITIES. City shall pay for electricity, trash collection, and water related to the use of
the Park Site.
8. DAMAGE. The District shall repair, cause to be repaired, or reimburse the City for
the cost of repairing damage to that portion of the Park Site and facilities maintained by
the City and covered by this Agreement occurring during periods of use by the District
or resulting from any act or omission of the District, except where such damage may be
attributable to ordinary wear and tear arising out of reasonable use of the Park Site.
The City shall repair, cause to be repaired, or reimburse the District for the cost of repairing
damage to that portion of the School Site and facilities maintained by the District and
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covered by this Agreement occurring during periods of use by the City, or resulting from
any act or omission of the City, except where such damage may be attributable to ordinary
wear and tear arising out of reasonable use of the School Site.
9. NON-EXCLUSIVE USE. The District reserves the right to make use of such portions
of the Park Site as it deems necessary and appropriate for access to and staging of any
construction and/or maintenance activities which it authorizes on the School Site.
District will make all reasonable efforts to notify and confer with the City regarding
such use. During such use District will minimize interference with use of the "Park
Site" to the extent reasonably practical. Nothing in this paragraph shall be construed by
either party to this Agreement to place any limits or restrictions on District's rights to use
all or any part of the School Site as it deems necessary to accomplish those activities
which it is authorized and empowered to carry-out under the Education Code of the
State California.
10. MUTUAL INDEMNIFICATION. District hereby agrees to indemnify, defend .and save
harmless the City, its agents, officers, and employees from and against any and all liability,
expense, including defense costs and legal fees, and claims for damage of any nature
whatsoever, including, but not limited to bodily injury, death, personal injury, or property
damage arising from or connected with, either directly or indirectly, District acts or
omissions hereunder.
City hereby agrees to indemnify, defend, and save harmless the District, its agents, officers,
and employees from and against any and all liability, expense, including defense costs and
legal fees, and claims for damages of any nature whatsoever, including, but not limited to
bodily injury, death, personal injury, or property damage arising from or connected with,
either directly or indirectly, City's acts or omissions hereunder.
11. CIVIC CENTER ACT. Both Parties acknowledge that School Site, including Park
Site, may be identified as a “Civic Center” pursuant to the Civic Center Act (Education
Code section 38130 et seq.) and that the use of the School Site and Park Site must
comply with the provisions of the Civic Center Act. Both Parties understand that other
individuals and/or entities may utilize the Park Site pursuant to the Civic Center Act
and other provisions of law, including but not limited to such license agreements as the
District may determine to enter into. For purposes of this Agreement, periods of use
of the Park Site by a District licensee shall be considered the District’s use of the Park
Site.
The Park Site shall be operated by the City in a manner that does not conflict with the
Civic Center Act.
12. TERMINATION RIGHTS. This Agreement may be terminated by either party at any
time and for any reason upon 180 days' written notice to the other. District may require
removal of any improvements not installed by District.
13. DAMAGE AND DESTRUCTION. If the Park Site or improvements thereon are destroyed
by fire, war, earthquake, flood, storm, or other casualty beyond the control of the parties
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hereto to such an extent that they can be restored to their previous condition within 240
days after the happening of the casualty, City shall have the option to restore the Park Site
and improvements thereon to their condition as of the date of the casualty. If the Park Site
and improvements are destroyed by any of the causes enumerated above and in the event
they cannot be restored within 240 days after the happening of the casualty, the City may,
with the approval of the District, restore the Park Site and improvements as soon as feasible
to do so and this Agreement shall continue in full force and effect. In the event City does
not elect to perform such restoration or District does not provide the additional time beyond
240 days for City to perform such restoration, this Agreement shall terminate and City shall
remove all improvements and personal property not installed by District from the Park Site.
Upon agreement by the parties, such improvements and personal property may remain in
place.
14. TORT LIABILITY. Government Code Section 895.2 imposes certain tort liability jointly
upon public agencies solely by reason of such public agencies being parties to an agreement
as defined in Government Code Section 895. Therefore, the parties hereto, as between
themselves, pursuant to the authorization contained in Government Code Sections 895.4
and 895.6, each assumes the full liability imposed upon it or any of its officers, agents,
representatives or employees by law for injury caused by a negligent or wrongful act or
omission occurring in the performance of this Agreement, to the same extent that such
liability would be imposed in the absence of Government Code Section 895.2. To achieve
this purpose, each party indemnifies and holds harmless the other party for any loss, cost,
or expense, including reasonable attorneys' fees that may be imposed upon or incurred by
such other party solely by virtue of Government Code Section 895.2.
15. INSURANCE.
a. During the term of this Agreement, District and City shall either be self-insured or
maintain a comprehensive liability insurance policy providing coverage for public
liability, automobile liability, bodily injury and property damage as set forth herein.
b. Each party shall procure and maintain, during the period of this Agreement,
comprehensive public liability insurance coverage, for its acts or omissions
described herein in a form satisfactory to the other party in the following minimum
amounts:
Bodily injury (including death) $2,000,000.00
Each person, each occurrence $2,000,000.00
Property damage $2,000,000.00
c. Policies or certificates evidencing each party's coverage shall be filed with the other
party, shall include the other party as a named additional insured, and shall be
primary. Said policies or certificates shall provide thirty (30) days' written notice
to the other party prior to any material change, termination or cancellation.
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16. The insurance limits referred to herein may be increased from time to time by mutual
written consent in accord with then accepted practice for California cities and school
districts.
17. The parties recognize that insurance practices and requirements of a school district and a
municipality may differ from that of private parties and may change from time to time.
During any period of time in which the parties, as a regular practice do not maintain
insurance but rather self-insure or participate in a Joint Powers Agreement with other
governmental entities, the parties may meet their insurance requirements under this
Agreement in the same manner.
18. EMERGENCY NEED. In the event that the District determines that an emergency
need requires the use of the Park Site, the District shall have the unlimited right to make
use of all or any portion of the Park Site for the entire time that such emergency need exists
as approved by the District’s Board of Education. For purposes of this Agreement,
emergency is defined as any circumstance or event that poses an actual or potential danger
to life or property.
19. NOTICES.
a. All formal notices, demands, and communications between the parties shall be
given either by (i) personal service, (ii) delivery by reputable document delivery
service such as Federal Express that provides a receipt showing date and time of
delivery, or (iii) mailing in the United States mail, certified mail, postage prepaid,
return receipt requested, addressed to:
If to District: Attention: Kenneth A. Goodson
Assistant Superintendent Business Services
WALNUT VALLEY UNIFIED SCHOOL DISTRICT
880 S. Lemon Ave.
Walnut, CA 91789
If to City: Attention: Assistant City Manager
CITY OF DIAMOND BAR
21810 Copley Drive
Diamond Bar, CA 91765
b. Notices personally delivered or delivered by document delivery service shall be
deemed effective upon receipt. Notices mailed shall be deemed effective at Noon
on the second business day following deposit in the United States mail. Such
written notices, demands, and communications shall be sent to such other addresses
as any Party may from time to time designate in a notice delivered in accordance
with the requirements of this Section.
c. The Parties will provide each other after-hours emergency contact phone numbers
of appropriate supervisory staff which shall be periodically updated. Such lists will
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also include emergency contact numbers for other facilities which may be utilized
in the event of a community emergency.
20. MISCELLANEOUS.
a. Binding on Successors.
The terms and conditions herein contained shall apply to and bind the heirs, successors in
interest, executors, administrators, representatives and assigns of all the Parties hereto.
b. Recreation Organizations.
With respect to Recreation Organizations, City shall be responsible for the scheduling of
recreation programs by such Recreation Organizations. City shall require each of the
Recreation Organizations to execute a document stating the following:
[Name of Recreation Organization] agrees to hold harmless, defend, and indemnify
District and City against all actions, claims, or demands, for injury, death, loss or
damages, regardless of fault or cause, by anyone whomsoever (except where such
injury, death, loss, or damage was solely due to the willful acts or omissions of City
and/or District, its agents, servants, or employees), whenever such injury, death,
loss, damage or claim is a consequence of, or arises out of the use of the Park Site
by [Name of Organization] or its agents, servants or employees.
c. No Assignment of Rights.
No rights which District or City have under this Agreement may be assigned to any other
person, persons, or corporation without prior written approval of the other party.
d. Employees.
i. For purposes of this Agreement only, all persons employed in the
performance of services and functions for the City shall be deemed City
employees and no City employee shall be considered as an employee of the
District under the jurisdiction of the District, nor shall such City employees
have any District pension, civil service, or other status while an employee
of the City.
ii. For purposes of this Agreement, all persons employed in the performance
of services and functions for the District shall be deemed District employees
and no District employee shall be considered as an employee of the City
under jurisdiction of the City, nor shall such District employees have any
City pension, civil service, or other status while an employee of the District.
21. JOINT PREPARATION.
This Agreement shall be deemed to have been prepared jointly by the parties, and the usual
rule that the provisions of a document are to be construed against the drafter shall not apply.
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IN WITNESS WHEREOF, City of Diamond Bar, by order of its City Council, has
approved this Agreement and authorized it to be executed on its behalf, by the Mayor and
attested by the City Clerk; and the Walnut Valley Unified School District Board of Trustees
has approved this Agreement and has authorized it to be executed, on its behalf, by the Board's
President.
CITY OF DIAMOND BAR
By:_____________________________
Jimmy Lin
Mayor
Dated: _______________, 2017
WALNUT VALLEY UNIFIED
SCHOOL DISTRICT
By:____________________________
Kenneth A. Goodson,
Assistant Superintendent
Business Services
Dated: ____________________, 2017
ATTEST:
By:____________________________
Tommye Cribbins
City Clerk
ATTEST:
By:_____________________________
Dr. Robert P. Taylor
Board Secretary
APPROVED AS TO FORM:
By:_____________________________
David A. DeBerry
City Attorney
APPROVED AS TO FORM:
By:_____________________________
Constance J. Schwindt,
Atkinson, Andelson, Loya, Ruud & Romo
District Counsel
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Agenda #: 6.6
Meeting Date: November 21, 2017
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: CONSULTING SERVICES AGREEMENT FOR THE DESIGN OF A
NEW L.E.D. LIGHTING SYSTEM AT PANTERA PARK
RECOMMENDATION:
Approve, and authorize the Mayor to sign, a con sultant services agreement with
PENCO Engineering in the amount of $16,530, plus a contingency amount of $4,000 to
be approved by the City Manager for a total authorization amount of $20,530.
FISCAL IMPACT:
In Fiscal Year 17/18, the CIP budget allocated $30,000 of Park Development Funds for
the design of a new walkway lighting system and new lights at Pantera Park. Upon
completion of the design and engineer’s estimate, funding for construction would need
to be considered by the Council separately either during the last quarter of the current
fiscal year or proposed to be included in the FY 18/19 Capital Improvement Program.
BACKGROUND/ DISCUSSION:
The proposed project is to replace thirty-six (36) deteriorating high pressure sodium
(HPS) walkway lights and light poles in Pantera Park with a new light emitting diode
(LED) lighting system. The project will include the design of new lighting poles, anchor
bolts, foundations, luminaires, conduits and wiring. Replacement of these existing HPS
lighting fixtures with LED lighting would provide an energy efficient system that would
reduce the energy consumption and reduce the maintenance cost.
There is an additional or optional design task included to remove and replace nineteen
(19) existing (HPS) luminaires with new (LED) luminaires at the two (2) tennis courts
and three (3) basketball courts. The new (LED) luminaires will be similar to the existing
(HPS) luminaires in size, shape, light output, and type of mounting on the existing poles.
It is anticipated that this additional task could be included as a bid alternate, or bid out
separately.
A Request for Proposal (RFP) was sent out to the City’s three (3) on-call engineering
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consulting firms for professional engineering services to prepare plans, specifications,
and construction cost estimates. Two (2) consulting firms submitted proposals and their
fees are as follows:
No. Consulting Firm Cost Based on Hourly
Rates
1. PENCO Engineering $16,530
2. Onward Engineering $25,925
Upon evaluation of the proposals by staff, PENCO Engineering was deemed as the
most competitive and qualified to meet the City’s requirements/expectations as well as
approaches and methodology that best fits the City’s needs.
PENCO’s detailed scope of work will include the following tasks:
Kick off meeting & utility records research
Base sheet preparation including the existing lighting system
Conceptual design
Upgrade lighting at basketball and tennis courts (optional task)
Final construction plans, specification, and engineer’s estimates
Construction support services
As-built plans
The tentative schedule of this project is as follows:
Award of Contract November 21, 2017
Notice to Proceed December 2017
Completion of Design March 2018
LEGAL REVIEW:
The City Attorney has reviewed and approved the agreement as to form.
PREPARED BY:
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Attachments:
1. 6.6.a CONSULTING SERVICES AGREEMENT_ 11.21.17
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CONSULTING SERVICES AGREEMENT
THIS AGREEMENT (the "Agreement") is made as of November 21, 2017 by and
between the City of Diamond Bar, a municipal corporation ("City") and PENCO ENG,
("Consultant").
1. Consultant's Services.
Subject to the terms and conditions set forth in this Agreement Consultant shall
provide to the reasonable satisfaction of the City the services set forth in the attached
Exhibit "A", including optional services which is attached hereto and incorporated
herein by this reference. As a material inducement to the City to enter into this
Agreement, Consultant represents and warrants that it has thoroughly investigated the
work and fully understands the difficulties and restrictions in performing the work.
Consultant represents that it is fully qualified to perform such consulting se rvices by
virtue of its experience and the training, education and expertise of its principals and
employees.
David G. Liu, Director of Public Works shall be the person to whom the
Consultant will report for the performance of services hereunder. It is u nderstood that
Consultant shall coordinate its services hereunder with the City’s Project Manager to the
extent required by the City’s Project Manager, and that all performances required
hereunder by Consultant shall be performed to the satisfaction of the City’s Project
Manager and the City Manager
2. Term of Agreement. This Agreement shall take effect November 21,
2017, and shall continue unless earlier terminated pursuant to the provisions herein.
3. Compensation. City agrees to compensate Consultant for each service
which Consultant performs to the satisfaction of City in compliance with the scope of
services set forth in Exhibit "A". Payment will be made only after submission of proper
invoices in the form specified by City. Total payment to Consul tant pursuant to this
Agreement shall not exceed Sixteen thousand five hundred thirty dollars and zero cents
($16,530.00) without the prior written consent of the City. The above not to exceed
amount shall include all costs, including, but not limited to, all clerical, administrative,
overhead, telephone, travel and all related expenses.
4. Payment.
A. As scheduled services are completed, Consultant shall submit to City an
invoice for the services completed, authorized expenses and authorized extra wor k
actually performed or incurred.
B. All such invoices shall state the basis for the amount invoiced, including
services completed, the number of hours spent and any extra work performed.
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C. City will pay Consultant the amount properly invoiced within 30 days of
receipt, but may withhold 5% of any invoice until all work is completed, which sum shall
be paid within 30 days of completion of the work and receipt of all deliverables .
D. Payment shall constitute payment in full for all services, authorize d costs
and authorized extra work covered by that invoice.
5. Change Orders. No payment for extra services caused by a change in
the scope or complexity of work, or for any other reason, shall be made unless and until
such extra services and a price therefore have been previously authorized in writing and
approved by the City Manager or his designee as an amendment to this Agreement.
The amendment shall set forth the changes of work, extension of time , if any, and
adjustment of the fee to be paid by City to Consultant.
6. Priority of Documents. In the event of any inconsistency between the
provisions of this Agreement and any attached exhibits, the provisions of this
Agreement shall control.
7. Status as Independent Contractor.
A. Consultant is, and shall at all times remain as to City, a wholly
independent contractor. Consultant shall have no power to incur any debt, obligation, or
liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor
any of its agents shall have control over the conduct of Consultant or any of
Consultant's employees, except as set forth in this Agreement. Consultant shall not, at
any time, or in any manner, represent that it or any of its agents or employees are in
any manner agents or employees of City.
B. Consultant agrees to pay all required taxes on amounts paid to
Consultant under this Agreement, and to indemnify and hold City harmless from any
and all taxes, assessments, penalties, and interest asserted against City by reason of
the independent contractor relationship created by this Agreement. In the event that
City is audited by any Federal or State agency regarding the independent contractor
status of Consultant and the audit in any way fails to sustain the validity of a wholly
independent contractor relationship between City and Consultant, then Consultant
agrees to reimburse City for all costs, including accounting and attorney's fees, arising
out of such audit and any appeals relating thereto.
C. Consultant shall fully comply with Workers' Compensation laws
regarding Consultant and Consultant's employees. Consultant further agrees to
indemnify and hold City harmless from any failure of Consultant to comply with
applicable Worker's Compensation laws.
D. Consultant shall, at Consultant’s sole cost and expense fully secure
and comply with all federal, state and local governmental permit or licensing
requirements, including but not limited to the City of Diamond Bar, South Coast Air
Quality Management District, and California Air Resources Board.
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E. In addition to any other remedies it may have, City shall have the
right to offset against the amount of any fees due to Consultant under this Agreement
any amount due to City from Consultant as a result of Consultant's failure to pr omptly
pay to City any reimbursement or indemnification required by this Agreement or for any
amount or penalty levied against the City for Consultant’s failure to comply with this
Section.
8. Standard of Performance. Consultant shall perform all work at the
standard of care and skill ordinarily exercised by members of the profession under
similar conditions and represents that it and any subcontractors it may engage, possess
any and all licenses which are required to perform the work contemplated by this
Agreement and shall maintain all appropriate licenses during the performance of the
work.
9. Indemnification. Consultant shall indemnify, defend with counsel
approved by City, and hold harmless City, its officers, officials, employees and
volunteers ("Indemnitees") from and against all liability, loss, damage, expense, cost
(including without limitation reasonable attorneys' fees, expert fees and all other costs
and fees of litigation) of every nature arising out of or in connection with :
(1) Any and all claims under W orker’s Compensation acts and other employee
benefit acts with respect to Consultant’s employees or Consultant’s contractor’s
employees arising out of Consultant’s work under this Agreement; and
(2) Any and all claims arising out of Consultant's performance of work
hereunder, not covered by Section (3) below, or its failure to comply with any of its
obligations contained in this Agreement, regardless of City’s passive negligence, but
excepting such loss or damage which is caused by the so le active negligence or willful
misconduct of the City. Should City in its sole discretion find Consultant’s legal counsel
unacceptable, then Consultant shall reimburse the City its costs of defense, including
without limitation reasonable attorneys' fees, expert fees and all other costs and fees of
litigation. The Consultant shall promptly pay any final judgment rendered against the
Indemnitees. It is expressly understood and agreed that the foregoing provisions are
intended to be as broad and inclusive as is permitted by the law of the State of
California and will survive termination of this Agreement. Except for the Indemnitees,
this Agreement shall not be construed to extend to any third party indemnification rights
of any kind.
(3) Any and all claims arising out of Consultants design professional services,
Consultant shall, to the fullest extent permitted by law, Consultant agrees to indemnify ,
defend and hold Indemnitees harmless from all liability arising out of any claim, loss,
injury to or death of persons or damage to property that arise out of, pertain to, or relate
to the negligence, recklessness or willful misconduct of the Consultant in the
performance of design professional services pursuant to this Agreement, except for
such loss or damage which is caused by the sole or active negligence or willful
misconduct of the City.
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10. Insurance.
A. Consultant shall at all times during the term of this Agreement carry,
maintain, and keep in full force and effect, with an insurance company authorized to do
business in the State of California and approved by the City the following insurance:
(1) a policy or policies of broad-form comprehensive general liability
insurance written on an occurrence basis with minimum limits of $1,000,000.00
combined single limit coverage against any injury, death, loss or damage as a result of
wrongful or negligent acts by Consultant, its officers, employees, agents, and
independent contractors in performance of services under this Agreement;
(2) property damage insurance with a minimum limit of $500,000.00 per
occurrence;
(3) automotive liability insurance written on an occurrence basis covering
all owned, non-owned and hired automobiles, with minimum combined single limits
coverage of $1,000,000.00;
(4) Worker's Compensation insurance when required by law, with a
minimum limit of $500,000.00 or the amount required by law, whichever is greater; and
(5) Professional liability insurance covering errors and omissions arising
out of the performance of this Agreement with a combined single limit of $1,000,000. If
such insurance is on a claims made basis, Consultant agrees to keep such insurance in
full force and effect for at least five years after termination or date of completion of this
Agreement.
B. The City, its officers, employees, agents, and volunteers shall be named
as additional insureds on the policies as to comprehensive general liability, property
damage, and automotive liability. The policies as to comprehensive general liability,
property damage, and automobile liability shall provide that they are primary, and that
any insurance maintained by the City shall be excess insurance only.
C. All insurance policies shall provide that the insurance coverage shall not
be non-renewed, canceled, reduced, or otherwise modified (except through the addition
of additional insureds to the policy) by the insurance carrier without the insurance carrier
giving City thirty (30) day's prior written notice thereof. Consultant agrees that it will not
cancel, reduce or otherwise modify the insurance coverage and in the event of any of
the same by the insurer to immediately notify the City.
D. All policies of insurance shall cover the obligations of Consultant pursuant
to the terms of this Agreement and except for professional liability insurance, shall be
issued by an insurance company which is authorized to do business in the State of
California or which is approved in writing by the City; and shall be placed have a current
A.M. Best's rating of no less than A-, VII. In the case of professional liability insurance,
such coverage shall be issued by companies either licensed or admitted to conduct
business in the State of California so long as such insurers possesses the
aforementioned Best's rating.
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E. Consultant shall submit to City (1) insurance certificates indicating
compliance with the minimum insurance requirements above, and (2) insurance policy
endorsements or a copy of the insurance policy evidencing the additional insured
requirements in this Agreement, in a form acceptable to the City.
F. Self-Insured Retention/Deductibles. All policies required by this
Agreement shall allow City, as additional insured, to satisfy the self -insured retention
(“SIR”) and/or deductible of the policy in lieu of the Consultant (as the named insured)
should Consultant fail to pay the SIR or deductible requirements. The amount of the
SIR or deductible shall be subject to the approval of the City. Consultant understands
and agrees that satisfaction of this requirement is an express condition precedent to the
effectiveness of this Agreement. Failure by Consultant as primary insured to pay its SIR
or deductible constitutes a material breach of this Agreement. Should City pay the SIR
or deductible on Consultant’s due to such failure in order to secure defense and
indemnification as an additional insured under the policy, City may include such
amounts as damages in any action against Consultant for breach of this Agreement in
addition to any other damages incurred by City due to the breach.
G. Subrogation. With respect to any Workers' Compensation Insurance or
Employer's Liability Insurance, the insurer shall waive all rights of subrogation and
contribution it may have against the Indemnitees.
H. Failure to Maintain Insurance. If Contractor fails to keep the insurance
required under this Agreement in full force and effect, City may take out the necessary
insurance and any premiums paid, plus 10% administrative overhead, shall be paid by
Consultant, which amounts may be deducted from any payments due Consultant.
I. Consultant shall include all subcontractors, if any, as insureds under its
policies or shall furnish separate certificates and endorsements for each subcontractor
to the City for review and approval. All insurance for subcontractors shall be subject to
all of the requirements stated herein.
11. Confidentiality. Consultant in the course of its duties may have access
to confidential data of City, private individuals, or employees of the City. Consultant
covenants that all data, documents, discussion, or other information developed or
received by Consultant or provided for performance of this Agreement are deemed
confidential and shall not be disclosed by Consultant without written authorization by
City. City shall grant such authorization if disclosure is required by law. All City data
shall be returned to City upon the termination of this Agreement. Consultant's covenant
under this section shall survive the termination of this Agreement. Notwithstanding the
foregoing, to the extent Consultant prepares reports of a proprietary nature specifically
for and in connection with certain projects, the City shall not, except with Consultant's
prior written consent, use the same for other unrelated projects.
12. Ownership of Materials. Except as specifically provided in this
Agreement, all materials provided by Consultant in the performance of this Agreement
shall be and remain the property of City without restriction or limitation upon its use or
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dissemination by City. Consultant may, however, make and retain such copies of said
documents and materials as Consultant may desire.
13. Maintenance and Inspection of Records. In accordance with generally
accepted accounting principles, Consultant and its subcontractors shall m aintain
reasonably full and complete books, documents, papers, accounting records, and other
information (collectively, the “records”) pertaining to the costs of and completion of
services performed under this Agreement. The City and any of their authorized
representatives shall have access to and the right to audit and reproduce any of
Consultant's records regarding the services provided under this Agreement. Consultant
shall maintain all such records for a period of at least three (3) years after termin ation or
completion of this Agreement. Consultant agrees to make available all such records for
inspection or audit at its offices during normal business hours and upon three (3) days'
notice from the City, and copies thereof shall be furnished if requested.
14. Conflict of Interest.
A. Consultant covenants that it presently has no interest and shall not
acquire any interest, direct or indirect, which may be affected by the services to be
performed by Consultant under this Agreement, or which would confl ict in any manner
with the performance of its services hereunder. Consultant further covenants that, in
performance of this Agreement, no person having any such interest shall be employed
by it. Furthermore, Consultant shall avoid the appearance of havin g any interest which
would conflict in any manner with the performance of its services pursuant to this
Agreement.
B. Consultant covenants not to give or receive any compensation,
monetary or otherwise, to or from the ultimate vendor(s) of hardware or sof tware to City
as a result of the performance of this Agreement. Consultant's covenant under this
section shall survive the termination of this Agreement.
15. Termination. The City may terminate this Agreement with or without
cause upon fifteen (15) days' written notice to Consultant. The effective date of
termination shall be upon the date specified in the notice of termination, or, in the event
no date is specified, upon the fifteenth (15th) day following delivery of the notice. In the
event of such termination, City agrees to pay Consultant for services satisfactorily
rendered prior to the effective date of termination. Immediately upon receiving written
notice of termination, Consultant shall discontinue performing services, unless the
notice provides otherwise, except those services reasonably necessary to effectuate the
termination. The City shall be not liable for any claim of lost profits.
16. Personnel/Designated Person. Consultant represents that it has, or will
secure at its own expense, all personnel required to perform the services under this
Agreement. All of the services required under this Agreement will be performed by
Consultant or under it supervision, and all personnel engaged in the work shall be
qualified to perform such services. Except as provided in this Agreement, Consultant
reserves the right to determine the assignment of its own employees to the performance
of Consultant's services under this Agreement, but City reserves the right in its sole
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discretion to require Consultant to exclude any employee from performing services on
City's premises.
17. Non-Discrimination and Equal Employment Opportunity.
A. Consultant shall not discriminate as to race, color, creed, religion,
sex, marital status, national origin, ancestry, a ge, physical or mental handicap, medical
condition, or sexual orientation, in the performance of its services and duties pursuant to
this Agreement, and will comply with all rules and regulations of City relating thereto.
Such nondiscrimination shall include but not be limited to the following: employment,
upgrading, demotion, transfers, recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and selection for training,
including apprenticeship.
B. Consultant will, in all solicitations or advertisements for employees
placed by or on behalf of Consultant state either that it is an equal opportunity employer
or that all qualified applicants will receive consideration for employment without regard
to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical
or mental handicap, medical condition, or sexual orientation.
C. Consultant will cause the foregoing provisions to be inserted in all
subcontracts for any work covered by this Agreement except contracts or subcontracts
for standard commercial supplies or raw materials.
18. Reserved.
19. Time of Completion. Consultant agrees to commence the work provided
for in this Agreement within (5) days of being notified by the City to proceed and to
diligently prosecute completion of the work within the time frame designated per task or
as may otherwise be agreed to by and between the Project Manager and the
Consultant.
20. Time Is of the Essence. Time is of the essence in this Agreement.
Consultant shall do all things necessary and incidental to the prosecution of
Consultant's work.
21. Delays and Extensions of Time. Consultant's sole remedy for delays
outside its control shall be an extension of time. No matter what the cause of the delay,
Consultant must document any delay and request an extension of time in writing at the
time of the delay to the satisfaction of City. Any extensions granted shall be limited to
the length of the delay outside Consultant’s control. If C onsultant believes that delays
caused by the City will cause it to incur additional costs, it must specify, in writing, why
the delay has caused additional costs to be incurred and the exact amount of such cost
within 10 days of the time the delay occurs. No additional costs can be paid that
exceed the not to exceed amount absent a written amendment to this Agreement. In no
event shall the Consultant be entitled to any claim for lost profits due to any delay,
whether caused by the City or due to some othe r cause.
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22. Assignment. Consultant shall not assign or transfer any interest in this
Agreement nor the performance of any of Consultant's obligations hereunder, without
the prior written consent of City, and any attempt by Consultant to so assign this
Agreement or any rights, duties, or obligations arising hereunder shall be void and of no
effect.
23. Compliance with Laws. Consultant shall comply with all applicable laws,
ordinances, codes and regulations of the federal, state, and local governments.
24. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of
any one or more of the conditions of performance under this Agreement shall not be a
waiver of any other condition of performance under this Agreement. In no event shall
the making by City of any payment to Consultant constitute or be construed as a waiver
by City of any breach of covenant, or any default which may then exist on the part of
Consultant, and the making of any such payment by City shall in no way impair or
prejudice any right or remedy available to City with regard to such breach or default.
25. Attorney's Fees. In the event that either party to this Agreement shall
commence any legal or equitable action or proceeding to enforce or interpret the
provisions of this Agreement, the prevailing party in such action or proceeding shall be
entitled to recover its costs of suit, including reasonable attorney's fees and costs,
including costs of expert witnesses and consultants.
26. Mediation. Any dispute or controversy arising under this Agreement, or in
connection with any of the terms and conditions hereof, which cannot be resolved by
the parties, may be referred by the parties hereto for mediation. A third party, neutral
mediation service shall be selected, as agreed upon by the parties and the costs and
expenses thereof shall be borne equally by the parties hereto. The parties agree to
utilize their good faith efforts to resolve any such dispute or controversy so submitted to
mediation. It is specifically understood and a greed by the parties hereto that mutual
good faith efforts to resolve the same any dispute or controversy as provided herein,
shall be a condition precedent to the institution of any action or proceeding, whether at
law or in equity with respect to any such dispute or controversy.
27. Notices. Any notices, bills, invoices, or reports required by this
Agreement shall be deemed received on (a) the day of delivery if delivered by hand
during regular business hours or by facsimile before or during regular bus iness hours;
or (b) on the third business day following deposit in the United States mail, postage
prepaid, to the addresses heretofore set forth in the Agreement, or to such other
addresses as the parties may, from time to time, designate in writing pursu ant to the
provisions of this section.
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*NOTE: If Consultant is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary,
the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant
Treasurer. If only one corporate officer exists or one corporate officer holds more than
one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this
Agreement. A copy of the corporate resolution, certified by the Secretary close in time to
the execution of the Agreement, must be provided to the City.
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INLAND EMPIRE IRVINE SAN DIEGO
255 E. Rincon Street, Suite 114 16842 Von Karman Avenue, Suite 150 11440 West Bernardo Court, Suite 300
Corona, CA 92879 Irvine, CA 92606 San Diego, CA 92127
951-736-2040 • Fax 951-736-5292 949-753-8111 • Fax 949-753-0775 858-753-1800 • Fax 858-753-1803
www.pencoeng.com
Revised October 10, 2017
PENCO JN: 04433.32
Mr. John Beshay
Associate Engineer
CITY OF DIAMOND BAR
21810 Copley Drive
Diamond Bar, CA 91765
Sent via email to JBeshay@DiamondBarCA.Gov
RE: Proposal for Engineering Design Services for Pantera Park Walkway Lighting Project
Dear Mr. Beshay:
PENCO Engineering, Inc. (PENCO) appreciates the opportunity to provide professional
engineering design services for the above referenced project.
This proposal includes the following:
1. Project Understanding
2. Project Team
3. Scope of Services
4. Project Schedule
5. Fee Summary
I will oversee all work included in this proposal and will serve as your Project Manager and sole
point of contact for the City. Feel free to contact me at (949) 753‐8111 or
gsolsona@pencoeng.com should you have any questions regarding this proposal.
Once again, thank you for this opportunity. I look forward to working with you and the City on
this project.
Sincerely,
PENCO Engineering, Inc.
Gary Solsona, P.E./QSD
Public Works Manager
Exhibit "A"6.6.a
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City of Diamond Bar Page 2 of 5
Proposal for Pantera Park Walkway Lighting Project Revised October 10,2017
1. PROJECT UNDERSTANDING
The City of Diamond Bar (City) would like to remove the existing walkway lighting system in
Pantera Park (consisting of 36 park walkway lights) and replace it with a new Light Emitting Diode
(LED) lighting system including new lighting poles, anchor bolts, foundations, luminaires, conduits
and wiring. The City would like the existing lighting system to remain in full operation during
construction to maintain park lighting. The City proposes that the new lights be located adjacent
to the existing lights, thus providing a one for one replacement. New light locations will also be
selected to minimize damage to existing hardscape improvements. The City also requested that
conduits and wires be increased in size. While increasing conduits will be beneficial, the use of
LED lights will significantly reduce the demand on the system and upsizing the wiring may not be
necessary. The City does not have a standard pole or LED luminaire for their parks and has
requested that two (2) to three (3) options be provided for City review and approval. All
foundations and anchor bolts shall be constructed to place the new light standards above grade
with positive drainage slope.
2. PROJECT TEAM
The PENCO team will be led by Project Manager, Gary Solsona, PE, QSD, who has over 15 years
of civil engineering experience and will provide the day‐to‐day project management,
coordination, oversight and preparation of complete project specifications. PENCO will utilize the
services of Albert Grover and Associates, (AGA) to serve as PENCO’s electrical lighting design
subconsultant.
3. SCOPE OF SERVICES
PENCO’s primary role will be an administrative one, with AGA, PENCO’s subconsultant, taking the
lead role on most aspects of the day‐to‐day tasks. AGA will prepare plans, specifications and
estimate (PS&E) package for the removal and installation of lighting systems at Pantera Park. The
PENCO Team’s Scope of Services consists of the following:
Task 1 – PS&E
Subtask 1.1 Kick off meeting & Records Research
The PENCO team will conduct a kickoff meeting with City staff to obtain record plans of the
existing walkway lighting, if available, existing panel information, LED light pole and fixture
information and discuss other City requests. Project objectives will be discussed / confirmed.
We will prepare a meeting agenda and transmit to City staff a minimum of 24 hours prior to
the scheduled meeting time. Meeting minutes will be prepared and distributed to attendees.
Subtask 1.2 Base Sheet Preparation
The PENCO team will prepare a base map from existing aerial photometry (not a full
topographic survey), which will show the existing lighting system (poles, luminaires pull
boxes, conduits, power connection, etc.).
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Proposal for Pantera Park Walkway Lighting Project Revised October 10,2017
Subtask 1.3 Conceptual (50%) Design & Feedback Meeting with City Staff
The PENCO team will prepare a conceptual design plan, for City approval, and will include
preliminary recommendations of two (2) to three (3 )pole and luminaire options and pole
location layout. We will design a new lighting system to be installed adjacent to the existing
system to maintain lighting during construction. We will develop itemized quantities and a
preliminary opinion of probable construction cost.
We will meet with City staff to review the engineering concepts and recommended
approaches. Upon City approval of the concept design, the final engineering will advance to
completion of the Final PS&E construction documents suitable for bidding purposes.
Subtask 1.4 90% and 100%/Final PS&E
Construction Plans: After the 50% design and feedback meeting, the 90% and 100%
Construction Plans will be prepared at 1”=40’ scale using the City’s standard title block in
AutoCAD format, and will include poles, standard foundation, detail, conduits, pull boxes,
wiring, luminaires, etc. all in accordance to current standards. Includes coordination with City
Departments for code compliance and permitting.
Project Specifications: We will prepare Technical Special Provisions per Standard
Specifications for Public Works Construction (APWA Greenbook) and insert into City’s
standard specification package. City staff will furnish a sample front end contract and
insurance documents and the PENCO team will organize and prepare the complete project
specification package.
Engineer’s Opinion of Probable Construction Cost: A detailed engineer’s opinion of probable
construction costs will be developed in accordance with the City of Diamond Bar’s
requirements, for the 90% and 100% submittals to the City.
Subtask 1.5 Construction Document Processing (City Reviews)
1. Submit 3 hard copy sets (or a PDF electronic file, if City prefers) of the 50%, 90% and
100% submittals to the City for review and comment
2. Review results of the City’s plan check review and discuss as necessary
3. Make agreed upon revisions and corrections to the PS&E after the City’s detailed
review and resubmit to the City
4. Upon final completion, acceptance and approval of the 100% PS&E by the City,
provide the City with a project file of the Final PS&E including the following
information:
Original signed reproducible plans on Mylar
Project Specifications
Electronic files of PS&E (drawings will be provided in AutoCAD format)
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Proposal for Pantera Park Walkway Lighting Project Revised October 10,2017
The following submittals & deliverables will be furnished to the City:
Submittal% Deliverable
50% Plans and Cost Estimates
90% Plans, Specifications and Estimates
100% Plans, Specifications and Estimates
Final Original Mylars (24” x 36”), Specifications and Estimates
Task 2 – CONSTRUCTION ASSISTANCE (Time & Materials)
The PENCO team will provide construction support services to City staff including attending pre‐
construction meeting, providing responses to Requests for Information (RFIs), review materials
submittals, attending a final job walk with City staff and creating a punch list for remaining items
to be completed. For budgetary purposes, we have budgeted 10 hours for this task.
Task 3 – AS‐BUILT PLANS
The PENCO team will prepare as‐built plans upon completion of construction. The plans will show
any modifications made in the field not reflected on the approved plans. The as‐built plans will
be based on City‐approved red‐lined plans provided to PENCO. We will provide the City with a
final set of plans, and an electronic copy on CD of the final as‐built plans.
OPTIONAL Task 4 – UPGRADE LIGHTING AT BASKETBALL & TENNIS COURTS
The City, as an optional design task, would like to remove and replace the existing lighting at the
tennis courts and basketball courts with new Light Emitting Diode (LED) luminaires. We will
research and provide options to the City for a one‐to‐one complete replacement of the existing
luminaire only (no changes to the existing poles). The new luminaire would be similar to the
existing in size, shape, light output and type of mounting. The new LED luminaire will have the
capability to be mounted on existing poles and utilize existing wiring. It is proposed that the
remove and replace bid item would be a specification item only and no plans will be prepared.
4. PROJECT SCHEDULE
The schedule of performance for the project is as follows:
MILESTONE Weeks Following NTP
Notice to Proceed (NTP) ...............................................................................0
Project Kick‐off Meeting ...............................................................................1
Concept (50%) Design, complete by .............................................................4
City’s 1st plan check review (of Concept Design), complete by ....................6
90% PS&E, complete by .............................................................................. 10
City’s 2nd plan check review (of 90% PS&E), complete by .......................... 12
100% / Final PS&E ready for bidding, complete by .................................... 14
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Proposal for Pantera Park Walkway Lighting Project Revised October 10,2017
5. FEE SUMMARY
PENCO proposes to provide the services for the total “not to exceed” fee presented below. The
fees should be considered as a negotiable offer. We would be happy to discuss the fees and their
association to our proposed scope of work and make revisions where mutually agreeable.
TASK FEE
Task 1 PS&E (Lump Sum) .......................................................................$ 10,440
PENCO Project Management, Meetings, Project Specs = $1,750
AGA Walkway Lighting Design PS&E (plus 10% markup) = $8,690
Task 2 Construction Assistance (T&M) .................................................$ 2,165
PENCO Project Management & Oversight = $350
AGA Construction Assistance (plus 10% markup) = $1,815
Task 3 As‐Built Plans (Lump Sum, AGA plus 10% markup) ..................$ 825
BASE SCOPE OF SERVICES TOTAL FEE = $ 13,430
Optional Task 4 Upgrade Lighting at Basketball & Tennis Courts ........$ 3,100
PENCO Project Management & Oversight = $350
AGA Construction Assistance (plus 10% markup) = $2,750
SCOPE OF SERVICES (with Optional Task 4) TOTAL FEE = $ 16,530
All terms and conditions will be per the On‐Call Civil Engineering Services Agreement, which was
approved by the Diamond Bar City Council on October 7, 2014.
ASSUMPTIONS / EXCLUSIONS
City to provide all existing data, existing record drawings and information relevant to the
proposed project improvements
Utility coordination, including map requests from utility owners, is excluded
Scope excludes outside agency fees, water quality enhancements, environmental
document preparation and bidding and construction support services
City to provide advertising for bids and awarding of construction contracts
All work not set forth in the scope of work shall be deemed additional work. Should
additional work be required, it is the responsibility of City staff and/or PENCO to initiate
negotiations for such work. Additional work will be charged at our regular hourly rates
per the attached fee schedule and on time and material basis if a fee is not negotiated.
Additional work will not be commenced without written authorization from City staff
.
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