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HomeMy WebLinkAbout02/19/1991THIS MEETING IS BEING TAPED BY JONES INTERCABLE FOR AIRING ON CHANNEL 51, AND BY REMAINING IN THE ROOM, YOU ARE GIVING YOUR PERMISSION TO BE TAPED. ALL COUNCIL MEETING TAPES WILL BE BLACKED IMMEDIATELY AFTER AIRING AND WILL BE UNAVAILABLE FOR REPRODUCTION. Next Resolution No. 91-10 Next Ordinance No. 1(199 1) CALL TO ORDER: 6:02 P.M. PLEDGE OF ALLEGIANCE: Mayor Werner ROLL CALL: COUNCILMEN NARDELLA, PA PEN, KIM, MAYOR PRO TEM FORBING, MAYOR WERNER WILLIAM P. CURLEY, ASST. CITY ATTORNEY COUNCIL COMMENTS: Items raised by individual Councilmembers are for Council discussion. Direction may be given at this meeting or the item may be scheduled for action at a future meeting. 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. Please complete a Speaker's Card and give it to the City Clerk completion of this form is volunta There is a five minute maximum time limit when addressing -the City Council. CONSENT CALENDAR: The following items listed on the Consent Calendar are considered routine and are approved by a single motion. SCHEDULE FUTURE MEETINGS - A. SEATAC - February 25, 1991 - 3:00 p.m., Community Room, 1061 S. Grand Ave. B . Planning Commission - February 25, 1991 - 7:00 p.m., W.V.U.S.D. Board Room, 880 S. Lemon Ave. C. Council Study Session "1991-92 Fiscal Budget" - February 26, 1991 - 6:00-9:00 p.m., W.V.U.S.D. Board Room, 880 S. Lemon Ave. D. Parks and Recreation Commission - February 28, 1991 - 7:00 p.m., Community Room, 1061 S. Grand Ave. E. City Council Meeting - March 5, 1991 6:00 p.m., W.V.U.S.D. Board Room, 880 S. Lemon Ave. F. Traffic and Transportation Commission - March 14 1991 - 6:00 p.m., Community Room, 1061 S. Grand Ave. G. Parks and Recreation Commission - March 14, 1991 7:00 p.m., City Hall, 21660 E. Copley Dr., Suite 100. CITY COUNCIL AGENDA PAGE 2 FEBRUARY 19, 1991 2. APPROVAL OF MINUTES - Regular Meeting of February 5, 1991. 3. WARRANT REGISTER - Approve Warrant Register dated February 19, 1991 in the amount of $177,996.67. 4. PLANNING COMMISSION MINUTES - Receive and file Planning Commission Minutes of January 14, 1991. 5. PARKS AND RECREATION COMMISSION MINUTES - Receive and file Parks and Recreation Commission Minutes of December 13, 1990, January 10, 1991 and January 24, 1991. 6. SEATAC MINUTES - Receive and file SEATAC Minutes for December 3, 1990 and January 18, 1991. 7. BOND EXONERATIONS - L.A. County Department of Public Works requested exoneration of the following surety bonds: Bond No. 83SB 100 360 427, Street Tree Improvements, Tract No. 42576 vicinity of Longview Dr. and Coldstream Ct.; Bond No. ASI 100204, Road Improvements, Tract No. 42581 vicinity of Pantera Dr. and Shady PL; Bond No. ASI 100193, Road Improvements, Tract No. 42579 vicinity of Armitos Place and Bowcreek Dr.; Surety Bond No. ASI 100214, Road Improvements, Tract No. 42583 vicinity of Bowcreek Dr. and Claywood Dr.; Surety Bond No. ASI 100219, Road Improvements, Tract No. 42589 vicinity ofDeersprings Dr. and Bowcreek Dr.; and Bond No. 3007 2322, Road Improvements, Tract No. 45380 vicinity ofPantera Dr. and Rexford Ct. City Engineer has reviewed and approves. Recommended Action: Approve work completed, exonerate the Surety Bonds and direct City Clerk to send Council action to principals involved. A) RESOLUTION NO. 91 - 10: A RESOLUTION OF THE COUNCIL OF THE CITY OF DIAMOND BAR APPROVING PLANS AND SPECIFICATIONS FOR THE MEDIAN RECONSTRUCTION, LANDSCAPE MODIFICATIONS AND TRAFFIC SIGNAL CONSTRUCTION ON GRAND AVENUE AT SHOTGUN LANE IN SAID CITY AND AUTHORIZING AND DIRECTING THE CITY CLERK TO ADVERTISE TO RECEIVE BIDS. Pursuant to previous Council direction, staff has prepared plans and specifications for the installation of a traffic signal and median modifications at the intersection of Grand Ave. at Shotgun Ln. Recommended Action: Adopt Resolution No. 91 -XX approving plans and specifications for the median reconstruction, landscape modifications and traffic signal construction on Grand Ave. at Shotgun Ln. and authorize and direct the City Clerk to advertise to receive bids. CITY COUNCIL AGENDA PAGE 3 FEBRUARY 19, 1991 SPECIAL PRESENTATIONS - Proclamations, certificates, etc. 9. PROCLAMATION - Proclaiming the week of March 3-9, 1991 as "Save Your Vision Week" in the City of Diamond Bar. 9a. PROCLAMATION - Proclaiming the month of March as "Women's History Month" in the City of Diamond Bar. 10. LETTER OF RECOGNITION - Recognition of Specialist Leonard C. Holifield in the Persian Gulf. 10a. Muravez - Crime Prevention Update - North of 60, West of 57 then East of 57. 11. SECOND ANNIVERSARY CELEBRATION - On April 18, 1991 the City will celebrate the second Anniversary of its incorporation. The Second Anniversary Celebration is scheduled to take place on April 13, 1991 at Diamond Bar High School. Recommended Action: Direct staff as necessary. OLD BUSINESS 12. RECREATION SERVICES - At the November 6, 1990 meeting, Council approved a Request for Proposal for Recreation Services. Three organizations responded to the RFP. A sub -committee made up of two Parks and Recreation Commissioners and staff interviewed the proposers. The Parks and Recreation Commission has recommended awarding the bid to the City of Brea. Recommended Action: Authorize and direct staff to negotiate a final contract with the City of Brea for recreation services with an approximate cost of $150,000 and bring back the contract at the March 5, 1991 meeting. NEW BUSINESS 13. PUBLIC FINANCE ADVISORS CONTRACT - Continued from February 5, 1991 meeting. Recommended Action: Authorize an agreement with Kelling, Northcross & Nobriga, Inc. for financial management services to fund capital projects and authorize the City Manager to execute the agreement on behalf of the City. 14. PARK DIRECTIONAL SIGNS - At the present time, all park signage indicates that the County of Los Angeles is providing city parks. The Parks and Recreation Commission has requested that staff modify the directional signage. Staff has created a prototype sign, which has been approved by the Parks and Recreation CITY COUNCIL AGENDA PAGE 4 FEBRUARY 19, 1991 Commission and the Traffic and Transportation Commission. Recommended Action: Approve design concept and authorize staff to initiate production and installation of park directional signage. 15. OFFICE OF TRAFFIC SAFETY GRANT - OTS Grants are available to local agencies upon their request and eligibility of a project. The intent of the program is to assist agencies in improving their traffic safety and operation. Within this grant cycle, staff informed the OTS of the City's traffic problems and requested funding to establish a satisfactory record of traffic control devices. On February 6, 1991, the OTS informed us that they have approved our proposal and $79,705 will be allocated for this project. Recommended Action: Authorize staff to enter into an agreement with OTS and proceed with development of a comprehensive Traffic Control Device Inventory Program. ANNOUNCEMENTS - This time is set aside for any City Councilmember to direct staff regarding any matters to be discussed at the next regular meeting CLOSED SESSION - 8:21 p.m. Property Acquisition Government Code Sec. 54956.8 ADJOURNMENT - to February 26, 1991 at 6:00 p.m. UXIMMEO Or THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR FEBRUARY 5, 1991 CALL TO ORDER: M/Werner called the meeting to order at 6:00 p.m. in the Council Chambers, W.V.U.S.D., 880 S. Lemon Avenue, Diamond Bar, California. PLEDGE OF The audience was led in the Pledge of ALLEGIANCE: Allegiance by Mayor Werner. ROLL CALL: Mayor Werner, Mayor Pro Tem Forbing, Councilmen Nardella, Papen and Kim. Also present were City Manager Robert L. Van Nort, Assistant City Manager Terrence L. Belanger, City Attorney Andrew V. Arczynski, City Planner James DeStefano, City Engineer Sid Mousavi and City Clerk Lynda Burgess. COUNCIL COMMENTS: C/Papen expressed appreciation for Congressman David Dreier's assistance with the City's dual zip codes and stated that a letter had been received indicating that within two weeks, "Diamond Bar" could be used in mailing addresses for the 91789 zip code area. M/Werner stated that a successful rally had been held on Grand Ave. and Diamond Bar Blvd. on January 25th in support of the troops in the Persian Gulf and commended D.B. High School and the participants for keeping the rally clean and legal. PUBLIC COMMENTS: Mr. David H. Cope, 316 S. Del Sol Ln, spoke regarding excessive spending by the City for reports and not listening to the will of the people. Ms. Janet Spatz, General Manager of Jones Intercable, 20965 Lycoming St., presented the City a check representing the final franchise fee for 1990 in the amount of $53,932.71 and thanked the Council for their cooperation. Mr. Michael Goldenberg, 1859 Morning Canyon Rd. spoke in regard to the increasing costs of City management and administration and the computer network system proposed by City staff. Following discussion, Council directed the City Manager to prepare a report on staffing needs for the next 12 months. Mr. Red Calkins, 240 Eagle Nest Dr., spoke regarding water rationing. He requested information as to what office buildings and FEBRUARY 5, 1991 PAGE 2 businesses in the area are doing to reduce water consumption and the feasibility of desalinization plants. M/Werner stated that the Water District is looking at policies and would present them to Council at the next meeting. CONSENT CALENDAR: C/Nardella moved, seconded by MPT/Forbing to approve the Consent Calendar with the excep- tion of Item No. 13, Public Finance Advisors Contract. Motion carried by the following Roll Call vote: AYES: COUNCILMEN - Nardella, Papen, Kim, MPT/Forbing, M/Werner NOES: COUNCILMEN - None ABSENT: COUNCILMEN - None Approval of Approved Minutes of Regular Meeting of Minutes January 15, 1991. Warrant Register Approved Warrant Register dated February 5, 1991 in the amount of $472,330.41. Treasurer's Report Approved Treasurer's Report for the month of December, 1990. Traffic & Trans. Received and filed Traffic & Transportation Comm. Minutes Commission Minutes of December 13, 1990. Parks & Rec. Received and filed Parks & Recreation Comm. Minutes Commission Minutes of October 25, 1990, November 8, 1990 and December 1, 1990. Planning Comm. Received and filed Planning Commission Minutes Minutes of October 22, 1990, November 26, 1990 and December 10, 1990. Resolution 91-05 Adopted Resolution No. 91-05 entitled: A Rqstg. Bd. of RESOLUTION OF THE CITY COUNCIL OF THE CITY OF Sups. to Accept DIAMOND BAR, CALIFORNIA, REQUESTING THE BOARD Transfer & OF SUPERVISORS OF THE LOS ANGELES COUNTY Conveyance of FLOOD CONTROL DISTRICT OF THE STATE OF Storm Drain Imps. CALIFORNIA TO ACCEPT ON BEHALF OF SAID Private Drain DISTRICT A TRANSFER AND CONVEYANCE OF STORM No. 2156 DRAIN IMPROVEMENTS KNOWN AS PRIVATE DRAIN NO. 2156 IN THE CITY OF DIAMOND BAR FOR FUTURE OPERATION, MAINTENANCE, REPAIR AND IMPROVEMENT, AND AUTHORIZE THE TRANSFER AND CONVEYANCE THEREOF. FEBRUARY 5, 1991 PAGE 3 Resolution 91-06 Adopted Resolution No." 91-06 entitled: A Rqstg. Bd. of RESOLUTION OF THE CITY COUNCIL OF THE CITY OF Sups. to Accept DIAMOND BAR, CALIFORNIA, REQUESTING THE BOARD Transfer & OF SUPERVISORS OF THE LOS ANGELES COUNTY Conveyance of FLOOD CONTROL DISTRICT OF THE STATE OF Storm Drain Imps. CALIFORNIA TO ACCEPT ON BEHALF OF SAID Private Drain DISTRICT A TRANSFER AND CONVEYANCE OF STORM No. 1820, Unit I DRAIN IMPROVEMENTS KNOWN AS PRIVATE DRAIN NO. 1820 UNIT I IN THE CITY OF DIAMOND BAR FOR FUTURE OPERATION, MAINTENANCE, REPAIR AND IMPROVEMENT, AND AUTHORIZE THE TRANSFER AND CONVEYANCE THEREOF. Resolution 91-07 Adopted Resolution No. 91-61 entitled: A Rqstg. Bd. of RESOLUTION OF THE CITY COUNCIL OF THE CITY OF Sups. to Accept DIAMOND BAR, CALIFORNIA, REQUESTING THE BOARD Transfer & OF SUPERVISORS OF THE LOS ANGELES COUNTY Conveyance of FLOOD CONTROL DISTRICT OF THE STATE OF Storm Drain Imps. CALIFORNIA TO ACCEPT ON BEHALF OF SAID Private Drain DISTRICT A TRANSFER AND CONVEYANCE OF STORM No. 1983 DRAIN IMPROVEMENTS KNOWN AS PRIVATE DRAIN NO. 1983 IN THE CITY OF DIAMOND BAR FOR FUTURE OPERATION, MAINTENANCE, REPAIR AND IMPROVEMENT, AND AUTHORIZE THE TRANSFER AND CONVEYANCE THEREOF. Claim for Damages Denied Claim for Damages filed by Mary Hunt. Mary Hunt Award of Bid - Awarded bid for installation of traffic Traffic Signal signal at Golden Springs Dr. and Sunset Golden Springs Crossing to Raymor Electric Company, Inc. of & Sunset Crossing Baldwin Park, in the amount of $51,787. Traffic Signal - Concurred with recommendation of the Traffic Grand Ave. & and Transportation Commission and authorized Rolling Knoll staff to proceed with design and bid process. City Memorabilia Approved concept of selling of City memora- bilia. Public Finance CM/Van Nort stated that the purpose of the Advisors Contract agreement is to review, at no cost to the City, unless bonds are issued, the City's ability to acquire funds to construct facilities and acquire sites. Mr. Clair Harmony, 24139 Afamado, stated that these types of companies usually require that they provide the bonds and that the Council may not have the option of dealing with another company. FEBRUARY 5, 1991 PAGE 4 C/Papen moved and M/Werner seconded to con- tinue this matter until such time as Council has a better understanding of the time frame. Mr. Frank Dursa, 2533 Harmony Hill Dr., spoke in opposition to the contract. Following discussion, motion carried to con- tinue the matter to the next Council meeting by the following Roll Call vote: AYES: COUNCILMEN - Papen, Nardella and Mayor Werner NOES: COUNCILMEN - Kim and MPT/Forbing ABSENT: COUNCILMEN - None SPECIAL PRESENTATIONS: Certificate of M/Werner presented Jeff Fuller with a Recognition Certificate of Recognition for saving the life of a two-year-old child. Proclamation - Proclaimed the month of February, 1991 as February, 1991 "National Community College Month" and pre - "National sented Mr. Stu Van Horn of Mt. San Antonio Community College with the Proclamation. College Month" Chino Hills Mr. Doug Sparks with the Chino Hills Incorp. Committee Incorporation Committee introduced Karen Bristol, Director, Glenn Norton Parrish, publicist, Fred Haney, legal counsel and Paul Hudson, chairman. Mr. Sparks stated that Chino Hills is the largest master planned community in Southern California and covers approximately 46 sq. miles. He made a slide presentation and stated that they were hoping to have the incorporation issue on the November, 1991 ballot. Operation Desert Administrative Analyst Troy Butzlaff reported Storm that many local governments, including the City, have received requests by citizens asking for the development and/or implementation of support programs to deal with the impact of the Persian Gulf crisis. Staff was directed to develop several viable alternatives to express the City's support. Alternatives include but are not limited to: adopting a resolution in support of our military personnel or a specific military unit; proclaiming a certain day or week as "Armed Forces Day/Week;" lowering the flags at City Hall and other civic facilities to half-mast to honor the military personnel FEBRUARY 5, 1991 PAGE 5 killed in action; and/or flying the POW -MIA flag at City Hall to remember those members of the military captured or listed as missing in action. He further stated that the pur- pose of supporting a particular activity is not to condone the use of force but to express the community's unequivocal support of our military personnel. Mr. Clair Harmony, 24139 Afamado, spoke in favor of the Council adopting a resolution in support of Operation Desert Storm. He also requested the City's assistance in prohib- iting illegal solicitation by an organization called "American National Veterans Incorporated." Capt. McCown stated that the Sheriff's Department had previously acted on this matter and that one individual had been cited and another arrested. Mr. Ed Shiltz, a resident of Diamond Bar, stated that his son is serving in the Persian Gulf and that he has formed a support group for families of the troops. His phone number is 595-3931 and he invited families with members in the Persian Gulf to call. Mr. Joe McManus stated that The Edit Shop had videotaped and interviewed some of the par- ticipants during the rally and had edited two 6 1/2 minute videos that were sent to the Persian Gulf. He further stated that interested persons may view the tape at The Edit Shop. M/Werner moved, C/Kim seconded to adopt Resolution No. 91-08 with appropriate amendments. MPT/Forbing read the Resolution. CM/Van Nort recommended that the fourth paragraph be amended to include the 1182nd Airborne as well as other units." Motion carried unanimously. C/Papen read the proposed Proclamation. M/Werner then proclaimed the week of February 11 through 17, 1991 as "Yellow Ribbon Week." FEBRUARY 5, 1991 PAGE 6 C/Papen suggested that the Proclamation be amended to add the words "and daughters" in the third paragraph. Further, she suggested that our servicemen be honored during the Second Anniversary Celebration. RECESS: M/Werner declared a recess at 7:37 p.m. RECONVENED: M/Werner reconvened the meeting at 7:50 p.m. NEW BUSINESS: Vehicle Theft Capt. McCown introduced Deputy Larry Luter, Decal Program Crime Prevention Officer, Sgt. Steve Webb, Crime Prevention Sergeant; Warren Wright, Team Sergeant and Team Lt. Mike Muravez, who had just arrested two persons in the parking lot trying to break into one of the cars. Capt. McCown described the CAT (Combat Auto Theft) program. Through a contract with the Walnut Sheriff and after ownership verifica- tion is obtained, a decal would be affixed to the inside of the rear window of a person's car. The decal would indicate that the persons signing the contract understand that they are subject to be stopped by a patrol car anytime between 1:00 a.m. and 5:00 a.m. to verify that the car is not stolen. In response to M/Werner's inquiry, Capt. McCown indicated that other police agencies would recognize the decal. At the request of C/Nardella, Capt. McCown stated that costs are handled through the Automobile Club of Southern California and volunteers are used to man the program. M/Werner asked how the program would be implemented once the Council approves it. Capt. McCown stated that they would work with the Automobile Club, the Crime Prevention Unit and the City. Photo sessions would be scheduled, notices would be publicized and invitations sent. Capt. McCown then announced that three officers from the San Dimas/Walnut Regional Command are in Saudi Arabia. In recognition, all squad cars have yellow ribbons and a blood drive was held on February 5, 1991 in which 60 pints of blood were donated to the American Red Cross for the soldiers in the Gulf. FEBRUARY 5, 1991 PAGE 7 C/Papen moved, C/Nardella seconded to authorize the Sheriff's Department to include the City in the Combat Auto Theft (CAT) Program. Motion carried unanimously. OLD BUSINESS: Emergency ACM/Belanger presented a timeline for comple- Preparedness tion of the various tasks required for a wholly -integrated emergency preparedness program. Ordinance 8A Matter continued to February 19, 1991. (1990) Ranch Festival CM/Van Nort stated that the organization sponsors an annual event for the purpose of promoting a "community feeling" in the City, to give other non-profit groups an opportun- ity to raise monies, to give businesses a chance to display and sell products and services and to distribute profits to local non-profit groups. Planning for the event is a year-long process and is directed by a 15 - member, all -volunteer board. He further stated that he had met with the President of the Board and that they are seeking assist- ance from the City to provide a cooperative framework so that the City and the Committee can work together in promoting the festival in following years. He recommended that Council appoint a two member sub -committee to meet with him and the Ranch Festival and bring the details back for further discussion by Council. C/Papen stated that she would be concerned with the City assuming responsibility and liability for this event. While she fully supports the Ranch Festival, she does not feel that the City is in a position to become a fundraiser for other non-profit organiza- tions. C/Nardella stated that he believed that the Committee was not looking for the City to take over the project, but to work hand-in- hand with the Committee as L.A. County did before Incorporation. He supported CM/Van Nort's recommendation. Following discussion, M/Werner asked for volunteers from the Council to serve on a sub -committee to meet with CM/Van Nort and FEBRUARY 5, 1991 PAGE 8 the Ranch Festival Committee. C/Papen and MPT/Forbing volunteered. Reorganization C/Nardella opened the discussion by stating that at a prior meeting, it was announced that notification had been received that the Board of Supervisors approved the City's request to consolidate elections with School District elections in November of odd - numbered years. Based on this, the Council would be required to reorganize. C/Papen recommended a one-year term commenc- ing in December; however, the current term should be continued until the first meeting in April, with the next rotation in December and each December thereafter. C/Papen moved, C/Nardella seconded to con- tinue this term until the first meeting in April, whereupon rotation would occur until December, and at that time, rotate again to a one-year cycle. With consensus of Council, the motion carried. C/Nardella moved, C/Papen seconded to nomin- ate MPT/Forbing for Mayor effective the first meeting in April. There being no other nom- inations for Mayor, nominations were closed. With consensus of Council, the motion carried. MPT/Forbing moved, M/Werner seconded to nom- inate C/Kim as Mayor Pro Tem effective the first meeting in April. There being no other nominations for Mayor Pro Tem, nominations were closed. With consensus of Council, the motion carried. American CM/Van Nort stated that a request had been Communities for received from the City of Alhambra to join Cleanup Equity American Communities for Cleanup Equity. Alhambra, along with 14 other cities, is involved in the "Operating Industry's landfill suit" and is asking for the City's support in seeking an amendment to the Federal Superfund law for the purpose of limiting exposure to cities. He recommended joining the ACCE. C/Nardella stated that he was concerned that it was nothing more than a lobbying organiza- tion and asked what progress has been made. FEBRUARY 5, 1991 PAGE 9 C/Kim suggested that this matter be tabled based on the fact that Diamond Bar is consid- ered a "bedroom community" and would not be involved in hazardous waste disposal so there should be no need to join the organization. MPT/Forbing was opposed to C/Kim's motion. Mr. Joe McManus was opposed to joining the ACCE. CM/Van Nort stated that the D.B. Lively Sr. Citizens Club had been contacted and were aware of the Hearing. Mr. Clair Harmony asked if the land that is being bought with the Community Development Block Grant could be used for more common purposes such as a City Hall complex/park with the Sr. Citizens center located on it. C/Kim moved C/Papen seconded to table this matter to provide exploration of other options in concert with Congressman Dreier, EPA agencies and other cities. Motion carried by 4 to 1; MPT/Forbing voted No. Resolution 91-09 CE/Mousavi reported on the 1990-91 Slurry Approving Plans project for Area 1. He stated that the & Specs. for Engineer's estimate is under $132,000 from 1990-91 Slurry Gas Tax funds. Seal Program C/Kim requested a written City policy be presented regarding liquidated damages. MPT/Forbing moved, seconded by M/Werner to adopt Resolution No. 91-09. Motion carried unanimously. PUBLIC HEARING: 1991-92 Commun. CP/DeStefano reported on the 1991-92 Development Development Block Grant Program and stated Block Grant that this year, the City is expecting to Program to receive approximately $463,000 based upon the formula. Following discussion, M/Werner opened the Public Hearing. Mr. Frank Dursa, 2533 Harmony Hill Dr., suggested that the D.B. Senior Citizens Club should have been contacted directly regarding this issue. CM/Van Nort stated that the D.B. Lively Sr. Citizens Club had been contacted and were aware of the Hearing. Mr. Clair Harmony asked if the land that is being bought with the Community Development Block Grant could be used for more common purposes such as a City Hall complex/park with the Sr. Citizens center located on it. FEBRUARY 5, 1991 PAGE 10 PD/DeStefano stated that the development of the City Hall complex is not a permissible activity under federal guidelines. Mr. Harmony then asked if the CDBG money could be used with other monies to purchase common property. PD/DeStefano stated that the funding mechanisms have to remain in separate accounts and as far as he is aware, there is no co -mingling of funds permitted. Mr. Harmony stated that it can be used for leverage on a larger purchase without co - mingling funds. With no further testimony offered, M/Werner closed the Public Hearing. In response to M/Werner's question, CP/ DeStefano stated that he was unaware of any particular types of housing projects that would qualify under the present specifications. M/Werner suggested using a small portion to support the "Wings" program. CA/Arczynski suggested that a number be allocated to the contingency account, based on the fact that it is unknown at this time whether or not this program would qualify under the HUD CDBG guidelines. C/Kim stated that he would like to see increased contingency and decreased land acquisition. MPT/Forbing moved C/Kim seconded to approve the proposed project and recommendations as provided and direct these materials to be forwarded to the Community Development Commission and adopt the attached requirements to be used in evaluating future planning eligibility proceedings. With the following Roll Call vote, the motion carried: AYES: NOES: ABSENT: COUNCILMEN - Papen, Kim, Nardella, Mayor Pro Tem Forbing and Mayor Werner COUNCILMEN - None COUNCILMEN - None FEBRUARY 5, 1991 PAGE 11 ANNOUNCEMENTS: C/Kim proposed that, due to increased traffic and maintenance of Grand Ave., consideration be given to making Grand Ave. a toll road. He also requested that the City Attorney look into ramifications of having a toll booth on Grand Ave. In addition, he requested that staff look into taking over the Country Club. C/Papen asked for further discussion on the City computers and requested that a sub- committee be appointed. C/Nardella and M/Werner volunteered for said sub -committee. C/Papen requested staff to make suggestions on ways to alleviate gang violence. C/Nardella stated that staff might get in touch with the Sheriff's Department and the SANE program to see what is being done. He further encouraged all community groups and citizens to participate in "Yellow Ribbon Week." M/Werner asked for Council support for prep- aration of a letter on behalf of the California Contract Cities Assn. to be sent to the Legislature in support of SB 76. The bill is intended to unfreeze the 10% property tax that has been withheld from cities. No objections were indicated. M/Werner congratulated Mayor -Elect Forbing and Mayor Pro Tem -Elect Kim. CLOSED SESSION: With no further business to conduct, M/Werner recessed to Closed Session at 9:08 p.m. for discussion of Personnel matters. ADJOURNMENT: M/Werner reconvened the meeting at 9:40 p.m., declared that there was no reportable action taken and adjourned the meeting at 9:40 p.m. in memory of Fire Fighter Specialist James Howe who lost his life in the line of duty. LYNDA BURGESS, City Clerk ATTEST: Mayor MINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR FEBRUARY 19, 1991 CALL TO ORDER: M/Werner called the meeting to order at 6:02 p.m. in the Council Chambers, W.V.U.S.D., 880 S. Lemon Avenue, Diamond Bar, California. PLEDGE OF The audience was led in the Pledge of Allegiance ALLEGIANCE: by Mayor Werner. ROLL CALL: Councilmen Nardella, Papen, and Kim, Mayor Pro Tem Forbing, Mayor Werner. Also present were Assistant City Manager Terrence L. Belanger, Assistant City Attorney William P. Curley III, City Planner James DeStefano, City Engineer Sid Mousavi and City Clerk Lynda Burgess. COUNCIL COMMENTS: C/Nardella stated that the Walnut Valley Water District has announced a usage reduction goal of 15% for each household and that the Diamond Bar Improvement Assn. has conservation kits available at the Chamber of Commerce. He also stated that he has received a couple of phone calls regarding the inability to schedule time with staff after having a project denied or rejected by the Planning Department. He would like to see staff find time (within 48 business hours, if possible) to meet with applicants who have had projects rejected, for an explanation of the denial and how to amend their plans to obtain approval. MPT/Forbing stated that he had been contacted by a number of residents whose gas bills reflect a 5% "City utility tax". He explained that this is a computer error by the Gas Co. and that persons paying this amount in error will receive a credit on future billings. He also stated that there have been several inquiries into the reason for the trailer parked at the Park -N -Ride at Diamond Bar Blvd. under the 60 fwy. He explained that The person is there at the request of Cal Trans to deter car thefts at the Park -N -Ride lot. PUBLIC COMMENTS: Mr. Robert Eggert, 1050 Overland Ct., San Dimas, District Manager, So. Calif. Gas Co., stated that the County had instituted the 5% tax to be applied to services provided in unincorporated areas only and that the Gas Co. had errored in separating their data files. He repeated the instructions outlined by MPT/Forbing. Mr. Piero L. Wemyss, 24207 Gingerwood Pl., stated that the Council should give better guidance to the Planning Department so that the Department could become more efficient and better serve the community's needs. FEBRUARY 19, 1991 PAGE 2 Mr. Chuck Martin, 444 Red Cloud, stated that his problem with the Planning Department is that he received a different answer to the same question on numerous occasions. He further inquired into the manner in which the Mayor is selected. M/Werner stated that the Mayor is selected by the Council on an annual basis. Mr. Joe McManus, 23561 E. Coyote Springs Dr., stated that a Letter to the Editor written by the Mayor contained a factual error; specifically, that Assemblyman Horcher had not endorsed SB2557. The truth is that Assemblyman Horcher did endorse on two occasions --Friday, October 5, 1990 during the La Habra Chamber of Commerce Candidates Debate and Tuesday, October 23, 1990 during the Whittier Area League of Women's Voters Candidates Debate at Whittier College. Further, he felt that Mayor Werner cannot effectively serve two masters since he is working for Assemblyman Horcher. Mr. David H. Cope, 316 S. Del Sol Ln., spoke regarding bonds and his opposition to the sale thereof. Mr. Jim Paul, 1269 Ahtena Dr., stated that both his gas and electric bill showed a "city utility tax" on them. He further stated that he had contacted the Gas Co. and the Edison Co., who after much discussion, agreed to rectify the problem. He further went on to praise the Council for not implementing a utility tax. Mrs. Lydia Plunk, 1522 So. Deerfoot Dr., stated that, as a member of the Parks and Recreation Commission, she had been the dissenting vote against contracting with the City of Brea for recreation services, but agreed to defer to the other Commissioners and concur with their decision. CONSENT CALENDAR: C/Kim moved, seconded by MPT/Forbing to approve the Consent Calendar. Motion carried by the following Roll Call vote: AYES: COUNCILMEN - Nardella, Papen, Kim, MPT/ Forbing, M/Werner NOES: COUNCILMEN - None ABSENT: COUNCILMEN - None FEBRUARY 19, 1991 PAGE 3 Schedule A. SEATAC - February 25, 1991 - 3:00 p.m., Future Meetings Community Room, 1061 S. Grand Ave. B. Planning Commission - February 25, 1991 - 7:00 p.m., W.V.U.S.D. Board Room, 880 S. Lemon Ave. C. Council Study Session 111991-92 Fiscal Budget" - February 26, 1991 - 6:00-9:00 p.m., W.V.U.S.D. Board Room, 880 S. Lemon Ave. D. Parks & Recreation Commission - February 28, 1991 - 7:00 p.m., Community Room, 1061 S. Grand Ave. E. City Council Meeting - March 5, 1991 - 6:00 p.m., W.V.U.S.D. Board Room, 880 S. Lemon Ave. F. Traffic & Transportation Commission - March 14, 1991 - 6:00 p.m., Community Room, 1061 S. Grand Ave. G. Parks & Recreation Commission - March 14, 1991 - 7:00 p.m., City Hall, 21660 E. Copley Dr., Suite 100. Approval of Approved Minutes of February 5, 1991. Minutes Warrant Register Approved Warrant Register dated February 19, 1991 in the amount of $177,996.67. Planning Comm. Received and filed Planning Commission Minutes Minutes of January 14, 1991. Parks & Rec. Received and filed Parks & Recreation Commission Comm. Minutes Minutes of December 13, 1990, January 10, 1991 and January 24, 1991. SEATAC Minutes Received and filed SEATAC Minutes for December 3, 1990 and January 18, 1991. Bond Exonerations Approved work completed, exonerated the following Surety Bonds and directed the City Clerk to send Council action to principals involved: Bond No. 83SB 100 360 427, Street Tree Improvements, Tract No. 42576 vicinity of Longview Dr. and Coldstream Ct; Bond No. ASI 100204, Road Improvements, Tract No. 42581 vicinity of Pantera Dr. and Shady P1.; Bond No. ASI 100193, Road Improvements, Tract No. 42579 vicinity of Armitos Place and Bowcreek Dr.; Surety Bond No. ASI 100214, Road Improvements, Tract No. 42583 vicinity of Bowcreek Dr. and Claywood Dr.; Surety Bond No. ASI 100219, Road Improvements, Tract No. 42589 vicinity of Deefspring Dr. and Bowcreek Dr.; and Bond No. 3007 2332, Road Improvements, Tract No. 45380 vicinity of Pantera Dr. and Rexford Ct. FEBRUARY 19, 1991 PAGE 4 Resolution 91-10 Adopted Resolution No. 91-10 entitled: A Approving Plans RESOLUTION OF THE CITY COUNCIL OF THE CITY OF & Specs. for DIAMOND BAR APPROVING PLANS AND SPECIFICATIONS Median Recon., FOR THE MEDIAN RECONSTRUCTION, LANDSCAPE Landscape Modif., MODIFICATIONS AND TRAFFIC SIGNAL RECONSTRUCTION & Traffic Signal ON GRAND AVENUE AT SHOTGUN LANE IN SAID CITY Const.- Grand AND AUTHORIZING AND DIRECTING THE CITY CLERK at Shotgun TO ADVERTISE TO RECEIVE BIDS. PD/DeStefano responded to comments about the Planning Department by stating that in regard to guidance by the Council, his department receives quite a bit of information and direction from the Council through the support that is given, the formation of the Planning Commission and SEATAC and through various meetings that occur on individual development projects or through normal Council communications. He indicated that he would speak to Mr. Martin directly regarding his complaint concerning inconsistent information provided by staff. SPECIAL PRESENTATIONS: M/Werner presented Mr. and Mrs. Cleve Holifield with a Letter and a Certificate of Recognition complimenting their son, Leonard C. Holifield, on his courageous acts in the Persian Gulf. Both Mr and Mrs. Holifield thanked the Council for their kindness. Proclamation - Proclaimed the week of March 3 - 9, 1991 as "Save 3/3 - 3/9/91 Your Vision Week." "Save Your" Vision Week Proclamation - Proclaimed the month of March, 1991 as "Women's March 1991 History Month." M/Werner and C/Papen presented "Women's History the Proclamation to Veronica Johnson and Suzanne Month" Harmony. Crime Update Lt. Muravez, Walnut Sheriff, stated that 13 burglaries have occurred since January 7, 1991 involving kicking in double front doors. These burglaries have generated requests that a neigh- borhood watch program be instituted. Most of the burglaries occurred north of the 60 freeway but in January, a number occurred west of the 57 freeway and in February, this type burglary moved a little bit east of the 57. He provided tips for home- owners to use in keeping their residences more secure and that if any resident wanted his home inspected, to call the Walnut Sheriff's Station and ask for the Crime Prevention Unit. FEBRUARY 19, 1991 PAGE 5 C/Papen suggested that an article be placed in the upcoming City newsletter regarding "Neighborhood Watch Programs." Second Admin. Analyst Kellee Fritzal reported that the Anniversary Second Anniversary Celebration is scheduled for Celebration April 13, 1991 at D.B. High School and identified the committee members involved: Shelly Arakalian, Glenda Bona, Donalda Day, Ken Demaret, Gerry Heffren, Alba Moesser and Sue Page. She stated that rental of a booth at the Business Expo will cost approximately $50 and that the City will sell T-shirts and City memorabilia and provide neigh- borhood watch information, earthquake preparedness self-help guides, information on the Combat Auto Theft program and water conservation information, including shower adjusters and water displacement kits. The City will also recognize members of the military that are currently serving in Saudi Arabia. OLD BUSINESS: Recreation Admin. Analyst Kellee Fritzal reported on the Services process used for selecting an organization to Agreement provide recreation services and indicated that even though the City of Brea's initial net charge was proposed at $239,000, this figure has been reduced to $150,000. She further reported that it was recommended by the Parks and Recreation Commission that Council direct staff to negotiate a final contract with the City of Brea and bring back the contract to Council for final approval at the March 5, 1991 meeting. C/Kim commended staff on the successful negotiations with the City of Brea and asked if the amount negotiated was based on current budget estimates. ACM/Belanger stated that the proposed program by the City of Brea is substantially the same as is currently being conducted by the Walnut Valley Recreation Department. C/Nardella stated that after the RFPs had been sent out, the Parks and Recreation Commission decided that they would no longer support the operation of the Park Drop -In Program and eliminated that from the current program as well as from future programs because it was economically insupportable. FEBRUARY 19, 1991 PAGE 6 C/Papen stated correspondence had been received from Dr. Brown of the Walnut Valley School District last October indicating that, with the cancellation of the JPA, the School District would be charging the City for the use of their facilities. The amount totaled approximately $100,000 and she asked if the City's budget included this amount. Mr. Pat Whelan, Chairman of the Parks & Recreation Commission, stated that the Commission was looking for free or low -rent facilities. Negotiations continue with the Walnut Valley School District regarding the fees and part of the proposed $150,000 was to provide for some rental fees and other possible additional costs. Following discussion, staff was directed to negotiate the terms of an agreement with the City of Brea, based on a balanced budget in terms of costs and services and bring the agreement back to Council for final approval. Staff was further directed to prepare a staff report on the programs to be offered. NEW BUSINESS: Park Direction Parks & Maintenance Director Janiel reported Signage that at the present time, all of the signage in the City indicates that the County of Los Angeles provide the parks. Staff is currently looking at an overall signage program and possibly changing all the park signage. However, because of the costs involved, staff has held off making any recommendations until there is a City-wide pro- gram, so that everything can be consistent. He displayed a sample sign that had been approved by the Traffic & Transportation Commission with a recommended change in color from green to brown with white lettering. The cost would be approx- imately $1,500 to replace the park directional signs only. Following discussion, C/Nardella moved and C/Papen seconded to authorize the manufacture and replace- ment of park directional signage now in place. With the following Roll Call vote, the motion carried: AYES: COUNCILMEN - Papen, Kim, Nardella, MPT/Forbing and M/Werner NOES: COUNCILMEN - None ABSENT: COUNCILMEN - None FEBRUARY 19, 1991 PAGE 7 Public Finance ACM/Belanger stated that this item had been Advisors continued from the February 5, 1991 meeting Contract in order obtain answers to certain questions asked by the Council. Mr. Frank Dursa, 2533 Harmony Hill Dr., spoke in opposition to approving the contract. Mr. Clair Harmony, 24139 Afamado, stated that he had checked with other finance people and was told that they preferred not to go with the type of agreement proposed. Following discussion, M/Werner moved, MPT/Forbing seconded to approve the proposed Public Finance Advisors Contract as recommended by staff. With the following Roll Call vote, the motion carried: AYES: COUNCILMEN - Papen, Nardella, MPT/Forbing and M/Werner NOES: COUNCILMEN - Kim ABSENT: COUNCILMEN - None Office of CE/Mousavi reported on a grant received from Traffic Safety the California Office of Safety to be used for Grant a Traffic Control Device Inventory Program to assist the City by allowing an inventory of the traffic devices in the City, their uniformity as established in the industry and how they are maintained and controlled. Upon Council author- ization of an agreement, the project will proceed. ANNOUNCEMENTS: C/Papen asked if the program is limited to traffic signals or would it include stop signs and road markings. CE/Mousavi stated that the program would include everything. C/Kim moved, C/Papen seconded to authorize staff to enter into an agreement with the Office of Traffic Safety and proceed with the development of a comprehensive Traffic Control Device Inventory Program. With consensus of Council, the motion carried. C/Papen congratulated Mr. Mousavi on the award of the OTS grant. FEBRUARY 19, 1991 PAGE 8 C/Kim stated that the traffic on Grand Ave. is getting worse and encouraged drivers to use Chino Hills Parkway. He asked the City Attorney to investigate the possibility of making Grand Ave. a toll road. C/Kim also stated that the D.B. Golf Course is deteriorating and asked staff to look into the possibility of purchasing the site from the County or at least allowing the City to manage the facility. CLOSED SESSION: With no further business to conduct, M/Werner recessed the meeting to Closed Session at 8:21 p.m. for discussion of Property Acquisition and Personnel Matters. ADJOURNMENT: M/Werner reconvened the meeting to Regular Session at 9:05 p.m., declared that there was no report- able action taken and adjourned the meeting at 9:05 p.m. ATTEST: Mayor LYNDA BURGESS, City Clerk I N T E R O F F I C E M E M O R A N D U M TO: Councilmembers Papen and Nardella FROM: Linda G. Magnuson, senior Accountant SUBJECT: Voucher Register, February 19, 1991 DATE: February 13, 1991 Attached is the Voucher Register dated February 19, 1991. As requested, the Finance Department is submitting the voucher register for the Finance Committee's review and approval prior to it's entry on the Consent Calender. The checks will be produced after any recommendations and the final approval is received. Please review and sign the attached. CITY OF DIAMOND BAR VOUCHER REGISTER APPROVAL The attached listing of vouchers audited approved and recommended allowed from the following funds FUND NO. FUND DESCRIPTION dated February 19, 1991 have been for payment. Payments are hereby in these amounts: 001 General Fund 115 Integrated Waste Mgt Fd 138 LLAD #38 Fund 139 LLAD #39 Fund 141 LLAD #41 Fund TOTAL ALL FUNDS APPROVED BY: Linda G. MaIgnuson Senior Accountant fj3Ci]�1�4Y 153,991.55 8,216.00 5,957.39 6,055.00 3,776.73 $177,996.67 Phyllis E. Papen/ Councilmember i, Obert Van Nort Donald C. Nardel a` City Manager Councilmember CITY OF DIAMOND BAR MINUTES OF THE PLANNING COMMISSION JANUARY 14, 1991 CALL TO ORDER: Vice Chairman Harmony called the meeting to order at 7:07 p.m. in the Walnut Valley School District Board Meeting Room, 880 South Lemon Street, Diamond Bar, California. PLEDGE OF The audience was led in the Pledge of Allegiance by ALLEGIANCE: Commissioner MacBride. ROLL CALL: Commissioner Grothe, Commissioner Lin, Commissioner MacBride, and Vice Chairman Harmony. Chairman Schey was absent. Also present were Planning Director James DeStefano, Assoc. Planner Robert Searcy, Deputy City Attorney Bill Curley, City Engineer Sid Mousavi, Planning Technician Ann Lungu, City Planner Irwin Kaplan, and Contract Secretary Liz Myers. CONSENT CALENDAR: Motion was made by C/MacBride, seconded by C/Lin and CARRIED UNANIMOUSLY to approve the Consent Calendar and the Minutes of December 10, 1990. Motion was made by VC/Harmony, seconded by C/MacBride and CARRIED UNANIMOUSLY to reschedule the order of the agenda for the Public Hearing Items, in the order of #4, #5, #3, and #6. NEW BUSINESS: Staff reported the CUP 86-0410 is a request for an extension of time to construct a three story CUP 86-410 building, housing professional offices. The property is located on 1200 South Brea Canyon Road. Ann Lungu, Planning Technician, reported the application was filed on September 15, 1986, with the Department of Regional Planning, to allow for the construction of a one-story building for the use of, retail stores, a three story building for the use of professional offices, and a zone change from R-1-8,000 SFR to C3 -DP -BE. A public hearing was held on June 10, 1987, whereas the zone change, the request to construct for retail stores, and professional offices were denied at this hearing. The zone change was denied at a public hearing on July 1, 1987. At the public hearing, and a de Nova hearing on November 19, 1987, the matter of the zone change and the construction of the two buildings were taken under advisement. The Board of Supervisors recommended, on December 22, 1987, that the Regional Planning Commission consider a revised project for the parcel of land and a zone change from R-1-8,000 SFR to C3 -DP -BE, rather than C -3 -DP -BE. On June 15, 1988, the Regional Planning staff recommended denial. On January 12, 1989, The zone change from R-1-8,000 SFR to CPD zone was approved. The Board of Supervisors declined its January 14, 1991 Page 2 intention to approve the said CUP, and instructed the County Council to prepare the findings and conditions. The staff recommended a one year extension ending March 30, 1992. A condition of the extension is that the project shall go through the design review process of the City of Diamond Bar. The City Attorney recommended any tentative subdivision map requirements of Los Angeles County shall be waived. VC/Harmony inquired what it would involve to waive the tentative subdivision map. Bill Curley, Deputy City Attorney, stated the code provides, as a mandatory condition of listing out, a tentative and a final map. The code refers to the possible subdivisions of larger parcels. In this case, there is only one single parcel, making a mandatory map an unnecessary procedure. C/MacBride asked if there were any correspondence, from neighbors, on file. Ann Lungu stated there are three (3) or four (4) letters, dating 1988 and 1989, from private individuals, in opposition to the project. C/Grothe stated there is no reason for allowing an extension. He was unable to visualize a three story structure anywhere in the area, and would have preferred to have had a site map at hand. He inquired if the CUP expires on it's own. Ann Lungu replied that it appears to expire on March 30, 1991. The applicant is applying for the extension. i C/Grothe requested staff to gather copies of the opposition letters, as well as the site map, and bring it back the next meeting. James DeStefano, Planning Director, clarified the letters of opposition date back to 1986 and 1987, when the project was first proposed. There is time to table the issue and obtain all the information requested by the Commission. VC/Harmony noted the letters of opposition may still be relevant. He suggested a public hearing may be functional. C/MacBride summarized the purpose of the condition, which stated the project go through the design review process, was to enable the Commission to receive new information to assist in the final January 14, 1991 Page 3 decision. James DeStefano stated the approval was for a three story building. The record is not clear as to what precise architecture would accommodate the three story building. If the Commission approves the extension, the Commission would do the architec- tural review, in lieu of staff. VC/Harmony inquired why the project is being given a one (1) year extension. James DeStefano explained a (1) one year extension gives the applicant sufficient time to go through the design review process, submit drawings for construction plan check, and go through all of the construction steps necessary for the commencement of the development of the project. A six (6) month extension was deemed a bit tight. VC/Harmony asked how long the applicant has had since the last approval. James DeStefano replied the applicant has had two (2) years since approval. VC/Harmony asserted he would like the project to come back as a brand new project, with a public hearing. He believed there is more involved -than just a Conditional Use Permit (CUP). C/MacBride clarified if the motion to deny is approved, the applicant may start de Nova, giving the Commission ample opportunity to consider all the ramifications whether there is a protest level. James DeStefano affirmed the applicant may appeal to thelCity Council. If they choose not to appeal, or the City Council concurs with the Commission's actions to deny the extension request, then they would need to come back with a full public hearing, complete plans, and additional data. Motion was made by C/Grothe, seconded by VC/Harmony and CARRIED UNANIMOUSLY to deny the extension of time for CUP 86-0410. PUBLIC HEARING Staff reported the CUP 90-0127 is a request to ITEMS: complete, in two (2) phases, the addition of twenty nine (29) pads for the placement of mobiles. The CUP 90-0127 19.5 acre site is currently developed with 118 pads and is known commonly as the Diamond Bar Estates. The site is surrounded by industrial uses and multiple family residences. Robert Searcy, Assoc. Planner, reported the January 14, 1991 Page 4 applicant has requested, in writing, a continuance of this public hearing in order to have time to clarify some points of concern staff raised in their report. VC/Harmony declared the Public Hearing open. Kevin Bouvian, residing at 21217 E. Washington, inquired as to what kind of barrier walls will be located between the park and the railroad. He asked if a playground for the kids have been planned. Rob Searcy replied the barrier wall will be a six (6) foot, sound proof block wall. After the completion of phase three (3), there will be no play area other than what exists currently. Kevin Bouvian stated, in his opinion, the six (6) foot wall would not be adequate for the trains, nor for keeping the children out of the area. The current wall is fifteen (15) feet and provides no barrier to sound. Dwayne Chamberlain, residing at phase 48 of the Diamond Bar Estates, stated there is presently only one entry in and out of the park, which is not adequate. He inquired if, with the addition of 30 more families, better access will be provided. Rob Searcy reported there is no change in the site plan as it exists as far as access. There will remain the one central access existing today. VC/Harmony noted an extra gate that is now currently chained closed. He pondered if it created a fire hazard. I Ruth Cornelly, assistant manager of the Diamond Bar Estates, wondered if the spa and pool facilities will remain the same to accommodate the residents. She informed the Commission that the extra gates are only opened in case of fire. Rob Searcy reported the pool facility will remain at the existing club house. Kathleen Rose, residing at 21259 Cottonwood Lane, has no objection to the expansion. She questioned the ownership status of a piece of land on Cottonwood Lane, which used to be a portion of Washington street. The portion of land is not maintained, and is full of tumbleweeds that residents must cross to get to the condominium complex across from the Diamond Bar Estates. She inquired if it was possible to tie in the January 14, 1991 Page 5 improvement with the development. VC/Harmony suggested the issue be brought up to staff after the meeting. Dwayne Chamberlain wanted to know, if the expansion is approved, will there be is there provisions to upgrade the condition of the park. The small owners association has requested that management upgrade the lights, and upkeep the grounds. They are concerned that, with the additional pads, upkeep will diminish further. He stated the expansion is acceptable as long as they meet with the standards, as well. VC/Harmony suggested the association work with the Planning staff to elaborate on the ideas, and be prepared to come back to the Commission. James DeStefano commented that staff was under the impression that the residents were notified of the proposed expansion. He recommended continuing the item to the first regular meeting in February 1991, and direct the developer to meet with the residents to inform them of what is being proposed. In this manner, the staff would be able to incorporate all of these different issues and provide a more complete report to include the revised staff report with the appropriate conditions. C/MacBride affirmed the meeting would be an excellent opportunity for the residents to have some input in the developer's plans. He wondered what will happen to the facilities in the present sump area, to be called a recreation area, when it is removed. Ruth Cqrnelly asserted the residents were notified about the expansion. However, she stated many questions were not answered and a meeting with the owners would be helpful to help the residents prepare for the next Commission meeting. C/MacBride suggested the residents confer with staff to set up a meeting date and urged the residents to communicate their concerns. Motion was made by C/Grothe, seconded by C/MacBride and CARRIED UNANIMOUSLY to continue the public hearing item to the meeting of February 11, 1991. CUP 90-0117 Staff reported the CUP 90-0117 was a request to expand an existing adult care facility, in a renovated single family residence, located in a residential neighborhood. The expansion will allow an increase from the current six (6) residents up January 14, 1991 Page 6 to a maximum of 24 residents. Rob Searcy reported the subject residence is in it's original size and shape. The request would seek to expand it to fifteen (15) bedrooms. The size would be approximately 6,210 feet, with double occupancy capabilities, and would house three (3) employees. The house is located at 1000 Park spring Lane, which is in a residential R-1-8,000 neighborhood. The application would expand the structure from 2,150 sq. ft. to 6,210 sq. ft. The parking requirements would increase from two (2) to nine (9) spaces. There is no signage proposed with the application. The project is located at the terminus of a cul-de-sac and is approximately 1/2 acre in size. The total lot coverage ratio for the project site after the proposed addition will be approximately twenty-six percent (26%). Landscaping and open space will comprise over three quarters of the site and ranges from landscaped slopes to landscaped pad areas that can be utilized for recreation. The access to the site is a 105 foot driveway. Parking is planned to be created along the eastern elevation in what is currently an embankment supporting the adjacent neighbor's yard. Providing the parking places at this location could prove to be prohibitive because of the required back up area and the necessary improvements, such as a retaining wall in excess of six (6) feet. Staff has identified, as a major concern, compatibility with adjacent single family residences. In addition to this concern are the issues related to appropriateness of use and aesthetics related to the alterations as proposed. Rob Searcy continued to report that the care for the residents is not critical care in nature and basically provides assistance in areas they may have deficiencies in providing for themselves. The residents are seniors that range in age from 62 and older. The total staff required for the facility is projected to be three (3) employees during the day shift and two (2) employees for the night shift. The size of the residential care facility is a significant intensification beyond the surrounding land uses, as well as the existing on- site use. The traffic generated from the site is likely to increase over the current number of trips. By state law, and right of zone, small residential care facilities are deemed to be a compatible form of residential use within a residential zone. The threshold has been delineated to be six (6) persons before discretionary review is required. The expanded use does, however, fall within the discretionary action of local governing bodies. These larger facilities January 14, 1991 Page 7 are designated for location within multiple family and transitional zones. Also, the existing parking is very limited because of the location on a cul- de-sac. It is foreseen that there would be a prohibition for any on street parking within the cul-de-sac area. Rob Searcy reported the Commission was supplied with numerous letters from residents both in support and opposition to the site. Mr. Searcy indicated that Deputy Luter of the Sheriff's Department has expressed his concerns that the use may not be compatible to the adjacent usage, and the lack of accessibility may create substantial problems. James DeStefano stated nine (9) additional letters were received by staff regarding the project in which seven (7) of the letters were in support of the project and (2) were in opposition. Staff recommended the Planning Commission adopt the attached resolution of denial based on the findings as presented. The Public Hearing was declared open. Smita Sanghvi, the applicant, residing at 963,Dare Court, explained her residence is approximately 800 feet from the site. She stated she owns two (2) boarding care homes for the elderly that are state licensed. She recounted her educational qualifications and proceeded to convince the Commission of the importance for the need of Senior centers. She asserted that she is providing a growing need, within the community, for Alzheimer patients and other related disorders. She depicted her indentions of the proposed expansion: A walk in the back; fire sprinklers; a red tile roof; and a security gate that conforms to fire codes. The building will go through the state fire marshall department, licensing department, and the health and safety department. She argued since the elderly residents don't have a lot of visitors, there will be a minimum increase in traffic of approximately 40 to 50 visitors weekly. She pointed out that her business is not a retail outlet. In summarization, she stated the community needs elderly facilities for Diamond Bar residents and more help is needed. VC/Harmony asked if there where any speakers in favor of the expansion to come forward and limit their comments to five (5) minutes. Linda Scheck, program director for the Alzheimer January 14, 1991 Page S Association of Orange County, described the need for long term care for Alzheimer and related disorders. She stated Orange County has 420 licensed boarding facilities throughout the County with approximately six (6) patients each. The applicant needs to increase the residency to make it more economical and improve the level of daily activities. C/MacBride inquired how many Boarding Homes have more than six (6) patients. Linda Scheck replied the exceptions represent approximately 3% to 4% of the population. George Bening, 1240 N. VanBuren, Anaheim, the architect to the project, stated his willingness to work with staff on any alterations to the project. VC/Harmony called a five (5) minute recess at 8:30 p.m. VC/Harmony called the meeting to order at 8:42 p.m. He requested speakers come forward who are in opposition to the expansion. George Bening asserted the property allows for three (3) to four (4) apartment complexes. Rob Searcy confirmed the zoning is R-1-800 which restricts it for single family usage only. Jim Warner, residing at 23504 E. Grand Rim Court located above the proposed building site, presented a letter and a copy of a fire report dated 1989. He requested the Commission visit the site and note that building by the hillside would require drasticigrading. He is concerned any retaining wall would be unable to support the weight of the hill during a rainy season. Norman Nissell, residing at 1007 S. Park Spring Lane, stated complaints about the facility: It has no parking on the street; there is no area for their garbage now, which is frequently scattered by a stray dog; there is a lack of staff to control the elderly patients and many times they have entered into his property; there has been pushing of the patients by the staff; he has seen staff drinking in their cars in front of his home; and the present hillside, which is approximately 30% of the size of the lot, is not very well maintained. Fearing a devaluation of the property if the project is allowed, he does not feel the applicant should be profitable at his expense. January 14, 1991 Page 9 Don Chalet, residing at 1027 Banner Ridge Road, commended the Commission on their diplomatic approach to reviewing the issue. He was surprised to receive notification of the expansion. He stated the location of the facility in a residential location is not appropriate. He expressed concerns about the facility: There is only one street into the cul-de-sac; the expansion could decrease property value; and allowing this expansion could set a precedent for future undesirable ventures. He agreed there is a need for such facilities, but argued there is a proper place and location for them. Dan Nelson, residing at 23520 Grand Rim, stated his complaints to the project: There is a 40% slope that would slide into the facility in a heavy rain; there seems to be a discrepancy with the information the applicant states, and he would like clarification; there is doubt the employees are not capable in handling the patients during an emergency; the property is not kept up; the red tile roof is not in conformity to the rest of the neighborhood; the patients are Alzheimers now but would they include other ailments such as AIDS, drug addictions, etc. He stated warehousing Alzheimer patients in a residential area is inappropriate. Roy Smith, residing at 23508 Grand Rim Court, stated he would not have bought his property if he had known the facility would have expanded into a commercial business site. Jim Jacobs, residing at 1003 Park Spring, stated patients have wandered into home. There are many children on the block and the trash, which includes urine and fecal matter, is a health hazard. The fire codes require more than just sprinklers as stated by the applicant. He noted that three (3) staff members are not adequate to care for twenty- four (24) patients. Pat Brody, residing at 1021 Park Spring Lane, asserted the facility is not appropriate in a single family home and it belongs in a commercial area. He is totally against it. Louise Nissel, residing at 1007 Park Spring Lane, has witnessed physical abuse, and neglect. It is unacceptable to increase the capacity of the facility. Ron Sweenis, residing at 1022 Park Spring Lane, stated he has stopped speeding employees. The facility does not belong there. January 14, 1991 Page 10 Cheryl Jacobs, residing at 1003 Park Spring Lane, stated she can't argue the need of the care but questioned the appropriateness of the location. VC/Harmony confirmed with staff that the existing facility is not at issue. James DeStefano stated that a few years ago, the State of California took away land use authority from local cities and said a facility with six (6) patients or less can be permitted in any residen- tial zone, in any city. Don Chalet stated he is now aware the facility is allowed to remain. He asked if there can be something done in regards to the garbage, and the care given to the patients. Smita Sanghvi, the applicant, responded to some of the concerns expressed by the audience. She stated that: the facility will have a trash compactor with additional trash service; there will be no extra noise with the increase of patients; the ambulances came six (6) times last year; the location is perfect because of its seclusion; half of the people were even unaware of the present facilities; and fire codes will be met. She stated health care is very expensive and she is doing her best to keep the price affordable for her patients. Peggy Cooperman, in the medical field for fifteen (15) years, worked in a convalescent home and a retirement home, stated the applicants patients should not be allowed to wander in a residential neighborhood. Such incidents do happen, but the facilities should be in the appropriate area. Elita, an employee of the applicant, stated the trash does not belong only to the applicant. She explained that what the residents are perceiving to be abuse is actually the only way to handle the patients because they have a tendency to become aggressive. She asserted the extra twenty-four (24) patients would not be a problem to care for. Smita Sanghvi noted the security gate will keep patients from wandering. Marie Upright stated, after hearing the stated concerns, it is her opinion the facilities be declared a nuisance. She noted that many nursing homes are a lock -in facility and feels the children should not be witness to these patients. Roy Smith, neighboring behind the applicant, stated his small children do note the moaning and noises January 14, 1991 Page 11 coming from the facilities. The Public Hearing was declared closed. VC/Harmony inquired if the CUP can limit the type of care the facility can provide. James DeStefano confirmed the type of care can be limited. VC/Harmony noted there is no turn around area in the driveway and asked if the fire department has reviewed and commented on the configuration. Rob Searcy replied that the plans have not been submitted to the fire department, as of yet. ` r /Harmnnv, i nrrii i rnri hni.7 hi n thm rata i n i nn x.7a l l i n January 14, 1991 Page 12 should remain as it is, and wished the applicant well in conducting a facility which seems to be appropriate at the present moment. C/Lin remarked that deep down, the majority has a sympathy for those with Alzheimer and a deep appreciation for those who care for these people. Neighbors should feel obligated to help the facility keep on. VC/Harmony maintained, that upon visiting, he was impressed with the facility and there was a sense of caring from the director. The idea of expansion is too massive of a construction for the pad size. Every community needs to face its realities and these type of facilities are needed. However, six (6) people may be an adequate number to care for. He urged the neighbors to visit these people and see them for the circumstance they are in. He wished the applicant good luck. Bill Curley noted changes of the draft resolution presented to them: Page (3), section 3c should be deleted; section 4a should read "...to accommodate this density of development and use."; and section 4b should read "...can not reasonably accommodate." Motion made by C/Grothe, seconded by C/MacBride, and CARRIED UNANIMOUSLY to pass the Resolution of Denial for CUP 90-0117, as amended. Sign Ordinance Staff reported the draft sign ordinance is a request to amend certain provisions of Title 22 of the Los Angeles County Code, as heretofore adopted by the City of Diamond Bar, pertaining to signs. James Destefano reported the Commission has received the latest draft sign code package, which incorporates a discussion of non -conforming signs and sign abatement. The package has been distributed to approximately sixty (60) individuals and organizations for their review and input. The outstanding issues of the draft sign ordinance revolves around the need for specific language refinements. James Destefano reviewed the key components of the ordinance in order to be sure the document reflects the Commission's philosophy and policies on the issues. A brief discussion will be necessary in regards to the non -conforming and sign abatement provisions within the document. Depending upon the changes, the document should be brought back to the Commission, at the next meeting, for consideration of a Resolution of Approval at the next meeting. January 14, 1991 Page 13 The key components that staff would like the Commission to review are: 1. page 15, section 106 of the Basic Sign Program - Is it the Commission's desire to have all illuminated signs reviewed by the Planning Commission? There are numerous requests for signs received daily. A high percentage of those signs are illuminated. 2. page 16 - Does the Commission want to review all wall signs in a multi -use building or commercial center where more than one wall sign is proposed? Staff receives numerous requests of wall signs within existing commercial centers. 3. page 17 & 18 - Staff is concerned that signs may be too small in regards to Commercial Real Estate. The policy dictates a_24 sq. ft. maximum sign area for most of the categories. In reality, there may be great difficulty in enforcing the policy creating signs in constant code enforcement resolution. The same circumstance applies to the sub -division and model homes signs. 4. page 18 - It is recommended the political signs be removed from the ordinance. There are numerous issues surrounding political signs. To attempt to set a standard as to the number of signs, or the square footage area of the sign, would be unenforceable by the City. 5. page 19 - Staff would like to re-examine the issue dealing with the intensity, maximum wattage of the temporary holiday lighting. It is now suggested that the lighting must be removed 30 days after the permit is issued. Staff noted that in some holidays, 30 days seem to be excessive. However, the time period and the retail time period between about November 15 and January 15 may require more than 30 days for this type of holiday lighting. 6. page 19 - In regards to the temporary search light permit, the policy presently refers to one search light per property. Some shopping centers are made up of multiple parcels, in which case, multiple search lights would be permitted. The ordinance should be clarified with a definition for shopping centers which would allow for a certain number of search lights at a shopping center. 7. page 24 - Does the Commission want to review Condominium, Subdivision, or Rental Community signs where the maximum sign area is 16 square feet? 8. page 26 - A variety of Exempt signs, located in public parks and City facilities, are suggested to be submitted for an advisory January 14, 1991 Page 14 architectural review by the Planning Commission. Staff wished to caution the Commission that it is more a Council policy issue as to whether they want to delegate that specific authority to the Planning Commission, the Park and Recreation Commission, or to staff. VC/Harmony interrupted the report to suggest the staff review a Council ordinance on architectural review that delegates architectural review on development projects, and so forth, to the Planning Commission. 9. pages 28, 29, & 30 - The areas related to Prohibited Signs will be stricken from the final ordinance. To specifically list permitted signs and list prohibited signs create a grey area for those signs that fall somewhere in the middle. It is best to have a sign ordinance that specifically lists signs that are permitted and everything else is deemed to be prohibited. 10. The final 12 pages of the document have some policy issues that the staff will review with the Commission, if so desired. James DeStefano stated there are still some definitions that need language clarification. As an example, the definition of sign area needs clarification because it is very difficult to understand. He noted there has been very little comment and input concerning the document from individuals and organizations. C/Lin requested staff classify the uses of the free standing monuments noted on pages 21 and 22. i James DeStefano replied, on page 21, it refers to a free standing sign for a single use. Page 22, refers to a free standing sign for a commercial center. The square footage for a sign face area triples for a commercial center, although height remains the same. The Public Hearing was declared open. Rachel Sieger, residing at 22939 E. Escerol Drive, suggested the Commission adopt a conservative approach to signs in Diamond Bar. The proliferation of signs in a community effectively decreases the property value, and quality of a community. She noted the large number of political signs and suggested restricting the numbers allowed. January 14, 1991 Page 15 Carolyn Gallanzier, residing at 224 N. Elencino Drive, concurred with the concern of maintaining a conservative approach with sign policy, and allowing for exceptions as they appear. She remarked that political signs should come down after an election, as quickly as they were put up. Dan Buffington, 2605 Indian Creek, applauded the sign ordinance. He is concerned the ordinance places a large work load onto the Commission and a burden to the new shop keeper to obtain a sign. Bob Zirbes, residing at 2141 Tierra Loma Drive, handed the Commission a survey conducted by the Diamond Bar Improvement Association (DBIA) regard- ing the sign ordinance. He noted Diamond Bar residents preferred a stronger sign ordinance in town and maintain a conservative approach. Richard Sieger reiterated that the lack of the pro- liferation of signs keep real estate value high. Marie Upright suggested that the ordinance should include a policy in regards to repairing beat up signs. Charles Kauld, residing at 2711 S. Diamond Bar Blvd., business holder in the Towne Country Center, urged the Commission to consider the situation of businesses. Signage is essential to the operation of a successful business. Irwin Kaplan, City Planner, inquired if the Commis- sion wished to include a CUP provision for food, fuel and lodging signs adjacent to the freeway that would allow for freeway visibility, appropriate to the neighborhood. There is no such provision and it would be inappropriate to write in a code sec- tion for freeway visibility. However, a limited CUP, allowing the Commission the opportunity to hear special circumstances may be appropriate. C/MacBride asserted there is a need for such a pro- vision because; there is an intense interest in it; it is justified and will save a lot of trouble down the road. He would like to see Mr. Kaplan's sug- gestion implemented. VC/Harmony inquired how exceptions in regard to pole signs were stated. James DeStefano recalled the issue was concluded in which any use, with some set of unique circum- stance, would seem to be eligible to process a variance request describing those circumstances which caused a need to deviate from the established January 14, 1991 Page 16 codes. The maximum height of six (6) feet would remain in effect. There was no talk, specifically, about public uses, which have raised some concerns, that are adjacent to the freeway. It was generally discussed how one may go about receiving an appro- val for a sign that differed from the prescribed standards. Irwin Kaplan explained that a variance is a dif- ficult procedure to determine if it is a variance for height, location, or freeway access. He sug- gested using the CUP as an alternative. Bill Curley stated a variance gives a very narrow set of parameters. The CUP gives a broader range of flexibility. Irwin Kaplan suggested using a CUP procedure that is narrowly focused. VC/Harmony stated the words in the CUP should be tough and the definition should be beyond question. Irwin Kaplan suggested, in regards to signs in multi use buildings, the Commission distinguish between signs from new tenants in existing centers as opposed to a new center with a series of new signs. The former may not need to be part of a plan sign program that needs review by the Planning Commission. Irwin Kaplan stated the Commission distinguished between signs that are non conforming by virtue of type of signs, as opposed to signs that are non conforming because of size. Type of signs would be a pole sign or a roof sign. In the discussion, it was determined that the illegal type of signs would be phased out after the fifteen (15) years. Signs that were illegal in all respects, except size, would continue until such time the business changed, as opposed to trying to go on an enforcement campaign. As the document is now written, it makes no distinguish between signs that are non conforming by virtue of size, versus signs that are non conforming by virtue of type. our original discussion stated we would go after the signs that were of a type no longer to be legal. Bill Curley rebutted that the structured has been broadened rather than trying to develop a definable criteria. By directly articulating all the signs the Commission approves or disapproves, gets into an area fraught with both definitional and equal protection challenges. The way its structured, "they shall be permitted to remain for fifteen (15) years", puts us up to our threshold time where we January 14, 1991 Page 17 can remove them without having to pay. Whether or not there is aggressive removal is an unspoken issue. There is no penalty to a jurisdiction for failure to enforce it's own standards. The structure gets you around the scenario of justifying removal of one sign but not another. We tried to craft in as much flexibility. Irwin Kaplan remarked it is a policy issue. Either way, fifteen (15) years down the road, the City will have to enforce something. VC/Harmony asked for clarification if all signs will be abated in fifteen (15) years or if signs will be abated by size, shape and configuration. Bill Curley explained, as of now, it is structured in such a way that it leaves it unspoken. The state standards have been met. C/Grothe concurred in allowing staff some authority over approval of sign replacements, in existing shopping centers, that conform to the codes and ordinances. He stated there should be specifications to a six (6) foot height sign that is not geared to some topographical situation.::t He asserted, in regards to a CUP or a variance with pole signs, specific rules and conditions should be devised describing a full set of uniformed guidelines. C/Lin noted the ordinance draft is thorough and conservative. She stated concern of the topography and location for the different business centers. She believed a CUP must be adopted to establish guidelines that can be followed in the future. She has begun taking pictures of the commercial centers to seethe percentage of signs that would be non conforming or in violation to the code. VC/Harmony reviewed parts of the document he had questions on: 1. page 2 of non conforming signs, paragraph 4 - He requested the meaning be explained. Bill Curley explained it refers to site or center rehabs in which a sign, sensibly, may or may not be need to be changed to accommodate the site used but, with the 50% factor, they might as well redo anyway. 2. page 1 of non conforming signs, paragraph 2 - He questioned how it applies to multiple advertisers on pole signs. Bill Curley explained it allows partial January 14, 1991 Page IS removal of a sign. 3. page 2, section 102B. 5b. - He noted the application process was not to be done. James DeStefano concurred and stated the section will be removed. 4. page 3, section 102B. 5c. - He inquired why a Planning Director would waive a requirement and for what situations. Bill Curley pondered that initially it began as an amalgamation of a variety of City standards that may have picked up something at a time when a Planning Director's scope included building official. James DeStefano stated the item will be reviewed. 5. page 4, top line - He wanted "th" removed. 6. page 5, item F - He requested a clear definition of "right of way". 7. page 5, item G - He would like some consideration for arabic numerals included. S. page 6, section 106E - He would like the definition of the area of a sign to be improved. 9. page 8, item L - He noted the definition sounds more like an ordinance. 10. page 11, item II - He noted the definition sounds more like an ordinance. James DeStefano stated section LL on page 11 will be removed. 11. page 12, item PP - He suggested including the word "candidate". 12. page 15, section 106 - He corrected the typing error which should read "...Planning Director or...". James DeStefano noted wording such as " ...Planning Director or his..." will be amended to read ..."his/her". 13. page 16, section 106A - He noted that maximum height of wall signs was left blank. James DeStefano explained that maximum height needs to be stricken to allow the flexibility to create signs of various lettering heights, shapes, and so forth. January 14, 1991 Page 19 14. page 17, item B - He inquired to the measuring of the signs. James DeStefano explained that sign face area refers to per face. He inquired if the Commission wants 24 square feet to be the limit, especially in regards to real estate. 15. page 18, item B6 - He inquired as to why the section on political sign will be removed. Bill Curley explained political signs may have loose restrictions but they may not be strictly regulated because of the dangers of trifling with the first amendment. 16. page 22, section 108D.3 - He requested examples to the meaning of the special condition. Irwin Kaplan responded that the special condition is in response to the Commissions concern of shopping centers in a hole whereby some of the buildings had their backs to the roadway. The Commission felt they ought to be entitled to an additional sign on the rear of the building as well as the front. A concern is to keep the signs uniformed. The special condition allows the aggregate square footage of signage on that building front and rear to exceed the 100 square feet. The size it may exceed will be at the Commissions discretion. Motion was made by C/MacBride, seconded by C/Grothe and CARRIED UNANIMOUSLY to continue the Public Hearing to the next regular meeting of January 28, 1991. DA 90-2 Staff reported DA 90-2 is a request for a Development Agreement for Gateway Corporate Center located South of the 57 Freeway and off Golden Springs Drive. James DeStefano reported a development agreement was drafted for review by the Gateway people, as well as the internal City staff, and City Attorney. More time is needed to sort out a variety of issues. Staff recommended the issue be continued to the meeting of February 11, 1991. Public Hearing was declared open. Motion was made by C/MacBride, seconded by C/Lin and CARRIED UNANIMOUSLY to continue the Public Hearing to the meeting of February 11, 1991. January 14, 1991 Page 20 ANNOUNCEMENTS: VC/Harmony inquired of the Commissions interest in a Speakers Bureau. C/Grothe recommended the City maintain a list of possible speakers to be kept at the City office. C/MacBride stated he was uncomfortable with the idea. C/Lin concurred with the other Commissioners. ADJOURNMENT: Motion was made by C/Grothe, seconded by C/MacBride and CARRIED UNANIMOUSLY to adjourn the meeting at 11:40 p.m. Clair Harmony Vice Chairman VkO475� James DeStefan Secretary/Plan ing Commission CITY OF DIAMOND BAR MINUTES OF THE PARRS AND RECREATION COMMISSION DECEMBER 13, 1990 CALL TO ORDER: C/Stitt called the meeting to order at 6:40 p.m. at City Hall, 21660 East Copley Drive, Suite 100, Diamond Bar, California. PLEDGE OF The audience was led in the Pledge of Allegiance by ALLEGIANCE: Commissioner Ruzicka. ROLL CALL: Commissioners Meyer, Ruzicka and Stitt. Commissioner Whelan arrived at 6:50 p.m. Also present were Parks and Maintenance Director Charles Janiel, Administrative Analyst Kellee Fritzal, Lydia Plunk, and Secretary (contract) Liz Myers. MATTERS FROM THE Mr. Don Nardella, 23444 Coyote Springs, Diamond Bar, AUDIENCE: thanked everyone for the participation in the Commission within the past year. C/Ruzicka expressed his respect and emphasized his continual support for Mr. Nardella. CONSENT CALENDAR: C/Meyer requested the Minutes of December 1, 1990 be pulled from the Consent Calendar. He stated his inabili- ty to vote on the minutes due to his absence from the meeting. Motion was made by C/Stitt, seconded by C/Ruzicka, and CARRIED UNANIMOUSLY to approve the Consent Calendar. Motion was made by C/Ruzicka, seconded by C/Stitt and CARRIED to approve the Minutes of December 1, 1990. Ayes: C/Stitt, C/Whelan, and C/Ruzicka Nays: None Abstain: C/Meyer ORAL REPORT: User Group Staff reported the User Group Meeting with the repre- Meeting sentatives from City youth organizations went well. Staff explained there was trouble getting the groups to send in their requests for field usage. They were informed field scheduling will be on a first come first serve basis. According to the Walnut Valley Recreation (WVR), there are now, quite a few applications being submitted. Staff is trying to obtain statements of organizational structure from the user groups, as well. The only group that has responded is James Roberts of the street hockey players. C/Ruzicka stated there are a lot of participants in the user groups. He noted December 31, 1990 was the deadline for the user groups to deliver the requested information to the City. -- i i December 13, 1990 Page 2 I � RAB Oral Report C/Whelan reported the Recreational Advisory Board Meetinc had been uneventful and there is no updated infbrmatior concerning the JPA. Staff reported the City of Walnut has decided noto sign the amendment of the JPA requesting money be .•ret4urned to the City of Diamond Bar from the discontinuance of the Park Drop-In Program. staff explained the money available for use through the JPA agreement is approxi- mately $23,000, excluding costs. Since the actual money will not be returned to the City, staff recommended assigning the funds for use in a special event. C/Whelan inquired if staff can obtain equipment! now for the Second Anniversary, using the funds in the JPA. Kellee Fritzal responded it can be done but suggested using the funds toward services as opposed to equipment. Staff is- not confident any equipment purchased would be returned to the City. C/Whelan stated the City should take advantagg of any funds still available and begin the preplanning stages of the Second Anniversary. C/Meyer inquired if staff felt confident the money can be used in such a manner, even though there is a dispprepancy-_ in the actual monies available through the JPA from discontinuing the Park Drop-In Program. Staff feels the City can obtain enough labor and services equating the dollars at hand. Staff reminded Commission that a new re resent' tive to P � the Recreation Advisory Board (RAB) must be appointed. The ]fleeting is on the first Thursday of the month) at 7:30 p.m. The next meeting will be January 4, 1991. 1 C/Stitt expressed his desire to be the representative on the RAB. Motion was made by C/Ruzicka, seconded by C/Meyer and CARRIED UNANIMOUSLY to nominate C/Stitt to the post of the second representative from the Park and Recreation Commission to the RAB. Changing the C/Whelan requested the Commission meeting time be changed Meeting Date from 6:30 p.m. to 7:00 p:m. to allow more flexibility in & Time. his schedule. He stated Thursday would still remain a good date unless the Commission decides otherwise. a e� December 13, 1990 Page 3 C/Meyer and C/Ruzicka stated the time and date was acceptable. Charles Janiel, Director, reminded the Commission the meetings at the library would have to adjourn by 8:55 p.m., the closing time of the library. C/Whelan inquired if the Commission would elect to cut back to one (1) meeting a month. If there is to be two (2) meetings a month, he inquired whether one (1) of them should become a study session. C/Whelan requested staff check on the availability of using a portable at Quail Summit to hold the meetings. Motion was made by C/Whelan, seconded by C/Ruzicka and CARRIED UNANIMOUSLY to amend the Ordinance to change the Parks and Recreation Commission Meetings to 7:00 p.m., to be held the second and fourth Thursday of the month. The fourth Thursday is to be the actual Commission meeting and the second Thursday to be a study session as needed. OLD BUSINESS: C.I.P. Staff reported the attached list of Capital Improvement Projects have been identified by the Council, Commission, and staff. It is the Councils' wish that the Commissions prioritize the items perspectively. It is suggested each commissioner prioritize pertinent items and return the worksheet to staff. Staff will compile the results and bring the list back to the Commission for finalization. C/Ruzicka asked staff if the Council wanted all items prioritized or just the items pertaining to the Parks and Recreation Commission. Charles Janiel reported the CIP items are to be prioritized 'by the Park and Recreation concerns only, to include landscaping and irrigation, and any items cross connecting. This is just the formation of the CIP and the idea is to develop a foundation to begin the programs. The Commissioners should prioritize items believed to be of utmost importance so the Council can have a reference point. New items may be added as well. Lydia Plunk asked if it was possible to find a time to discuss some of the items appearing to be nebulous on the subject matter. C/Whelan requested reviewing the list as a group and identifying the appropriate items. i December 13, 1990 Page 4 The Commission identified items #10, 23, 24, 25', 28-334 1 35, 38, 39a&b, 40, 41a&b, 42a&b, 43a&b, and 44; througr ' 49. Charles Janiel reminded Commission that the projects will be in competition for funds. Therefore, he suggested prioritizing items in a way to make the funds available, first, for the needs of the Park and Recreation Commission. Lydia Plunk inquired if lights are unattainable at one park field, can there be an addendum to install fights on another field. C/Whelan stated the CIP must be specific ! so the Commission should add the alternative park to the list. C/Meyer suggested the Commission, in terms of prioritizing, refer to the potential number and type of users of a park. Charles Janiel noted the funds requested have been for bigger parks having the potential to serve the most . people. He asserted the present user isn't as important as the potential user. Recreation RFP Kellee Fritzal illustrated the four possible options fort a Recreational Program and their net costs to the City. RFP NET COSTS Brea $235,674 YMCA $180,052 County $337,706 In-House $148,920 Kellee Fritzal reported staff, C/Whelan and C/Ruzicka met with the three (3) proposers at a meeting on Tuesday, December 11, 1990. The In-House proposal was also ! discussed on that date. Kellee Fritzal recommended the I Commissioners not base their decision on net costs only, but also consider the services that can be provided. Items in the proposal can be negotiated. C/Ruzicka reported the bid from Brea was presented imaginatively. He suggested requesting from Brea a bid on programs they would find best for Diamond Bar. The j YMCA does not have any experience in providing municipal type recreation programs and also did not include all the services requested. The County is expensive but experienced. There are opposing opinions to the quality . - of the services provided in the past. He stated his c apprehension on an In-House program due to ;lack of q:Y.....A ;-.. �... . r—1K.. V'—_117'—nl I .�..�....._ •f I' -��� •.i+-..... 'i7 ,.{a i���(�� T'ft-� -y��1, December 13, 1990 Page 5 expertise. He suggested taking a contract from one of the bidders for a couple of years, and then consider an In -House program. C/Whelan reported the YMCA answers to a Board Directors creating complexities to program requests. Brea is experienced and has a tremendous Recreation Program. He believed the costs are negotiable. Brea stated their willingness to develop a program to fit our needs and it will be advertized as a Diamond Bar program. The County is very knowledgeable about our parks but their costs are high. He stated he was not impressed by their presentation. He stated the In -House is a good idea but it is at the infancy stage. C/Meyer inquired who is responsible for insurance. Kellee Fritzal explained the proposer must provide insurance. Kellee Fritzal related the YMCA was very definite the programs must meet their mission statement. Though the programs would be flexible on community needs, Diamond Bar official would have to confer with their Board of Directors. They did offer to waive their membership fee. C/Meyer cautioned against entering into an agreement that could cause similar problems comparable with Walnut. Kellee Fritzal asserted the contract with any of the bidders will have built in mechanisms to protect against losses. C/Meyer suggested going back to Brea and requesting a couple of option type programs. Lydia Plunk stated she would not like to eliminate the YMCA altogether. C/Ruzicka noted the administrative structure of the YMCA creates a difficult circumstance in developing programs. Lydia Plunk advised requesting all of the bidders either reduce their costs and/or provide additional programs acceptable to the City of Diamond Bar. Those groups that are unwilling or unable to do so, should be dropped. C/Ruzicka stated Diamond Bar needs the kind of expertise which provides the desired municipal program. He remarked the YMCA's inability to do so. ' I December 13, 1990 Page 6 Kellee Fritzal informed the Commission of staff's inten to go for a three (3) year contract with yearly renewals. i C/Whelan maintained the original intent was to go for a i two (2) year contract. The first year would be the growing pains, and the second year would be to judge their actual abilities. Staff acknowledged the difference in the time aspect of I the contract and stated a two . (2) year contracts can be developed. C/Whelan asserted he would prefer Brea come back with a revised program, then renegotiate to lower costs not f exceeding $210,000. ` C/Meyer claimed all bidders should receive an opportunity to lower costs and present a revised program. The Commission should give a full review. Lydia Plunk stated it would be easier for City Council to make a final decision based on fair negotiations with two (2) programs. Motion was made by C/Whelan, seconded by C/Meyer and,� CARRIED. UNANIMOUSLY to direct staff to contact all the entities involved in the RFP process and request a,_,., resubmittal on a recreation program at two (2) cost levels: oae being at the existing level originally submitted,'. and the other at a lower cost level, with an idea of providing a program beneficial to the City of Diamond Bar. Staff will negotiate an agreement with the bidders and return the results to the Commission by January 10, 1991. CORRESPONDENCE: JPA Termination City Manager Robert Van Nort stated in a memorandum dated WVUSD December 30, 1990, that the letter dated November 30, 1990 from the City of Walnut reflects they are not interested in either an independent audit or an amend- ment to the present Recreational JPA Agreement with Diamond Bar, Walnut, and the Walnut Valley Unified School District. It is not recommended, in the light of the numerous issues faced by the City and School District, the matter. be further explored. C/Whelan explained the reason for requesting an audit was in hopes to outline items bought and paid for. j i {• ,nr,ry, n..,,��:. .x.., JR XJk _.a. 4.� .., -IT., ] „ til.,,, December 13, 1990 Page 7 C/Meyer stated an audit could take years especially when poor bookkeeping is involved. He suggested requesting invoices and not paying unless an invoice is received. NEW BUSINESS: Selection of Staff reported the recent events have left the Parks and Chairperson and Recreation Commission without a Chairperson or Vice Vice Chairperson Chairperson. It is suggested the Commission operate with an interim Chairperson, and officially select the Chairperson and Vice Chairperson when all vacant positions have been filled. Charles Janiel reminded the Commission the Ordinance mandates a new Chairperson be selected in July of each year. He suggested the Commission keep this in mind during the selection process. INFORMATION: Park Activity Charles Janiel explained Superintendent Don Hensley will Report be submitting each month the significant maintenance tasks performed throughout the parks. C/Ruzicka expressed his approval of having such a report done monthly. COMMISSIONER C/Ruzicka read a letter from Don Schad expressing his COMMENTS: hope to receive from staff a recommendation on a tree planting program, to include native plants to replant barren and burnt out areas. He could get trees at no cost to the City. He stated Earth Day in April is actually a poor time to plant trees and recommended late winter, early spring. Charles Janiel acknowledged the request but noted restrictions: many areas are public property; there are many irrigated areas; the City is cutting back on water supplies; arid the trees should be drought tolerant, not native. He stated his intent to communicate with Mr. Schad. Mr. Janiel will meet with Don Schad to discuss a program. C/Meyer'communicated his enthusiasm in participating in the decision making process and stated his appreciation for any assistance in making a contribution to the Commission. C/Whelan expressed his thanks to Don Nardella for all his input in the Commission. He stated Don Nardella did a tremendous job getting things off the ground. He commented further that all Don Nardella's support on the JPA made a definite impact. ' I December 13, 1990 Page a I C/Whelan stated he was approached by Boy Scouts t at want, to do an ro Eagle project that entails develo g p j pin trailer � through the Sycamore Canyon Park. He inquired of staff as to which action need to be taken. i Charles Janiel replied the City Attorney needs to be i notified first. He suggested the Boy Scouts con act him and give all the information needed and he will confer with the City Attorney and discuss requirements. I ' Charles Janiel informed the Commission their Christmas decoration idea was postponed due to legalities con- cerning liability. C/Stitt welcomed C/Meyer, and stated his eager anticipa- tion of working together. He noted the comments made by C/Whelan in regards to Councilman Don Nardella echoed the opinions of the whole Commission. He announced to the Commission he has attained a permanent position in the Commission. He thanked former Councilman, and now Assemblyman Paul Horcher for his original appointment as well as Councilman Don Nardella for the reappointment in the Commission. C/Stitt retold a concern expressed to him by a citizen in ...• regards to the potential danger of a ladder in onj of the play apparatuses in Peterson Park. He-,was curious as to the point of the ladder to the rest. of the toy, and requested the Commission reevaluate the situation. Charles Janiel explained the functions of the equipment installed is to develop motor and muscle coordination. There are three (3) pieces of equipment at Peterson Park, each intended for different developmental skills. The safety of the equipment and the surrounding area *eet the national standards. He stated the .equipment (will be looked at once again. ADJOURNMENT: Motion was made .by C/Meyer, seconded by C/Ruzicka and CARRIED UNANIMOUSLY to adjourn the meeting at 9:05 p.m. to the next regular meeting on December 7, _199 t 9:00 1 a.m. h ! Charl Janiel Secretary ATTEST: :I Chairman — - 7 , p7 1 , I dSrigRr.,' CITY OF DIAMOND BAR MINUTES OF THE PARRS AND RECREATION COMMISSION JANUARY 10, 1991 CALL TO ORDER: Commissioner Ruzicka called the meeting to order at 6:40 p.m. at City Hall, 21660 East Copley Drive, Suite 390, Diamond Bar, California. PLEDGE OF The audience was led in the Pledge of Allegiance by ALLEGIANCE: Commissioner Whelan. ROLL CALL: Commissioners Meyer, Plunk, Ruzicka and Whelan. Commissioner Stitt arrived at 6:55 p.m. Also present were Assistant City Manager Terrence Belanger, Parks and Maintenance Director Charles Janiel, Administrative Analyst Kellee Fritzal, Superintendent Don Hensley, and Secretary (contract) Liz Myers. CONSENT C/Plunk requested the Minutes of December 13, 1990 be pulled CALENDAR: from the Consent Calendar. Motion was made by C/Meyer, seconded by C/Whelan and CARRIED to approve the Consent C= endar. Ayes: Commissioners Mev -luzicka, and Whelan Nays: None Abstain: Commission< C/Plunk requeste-' cember 13, 1990 be amended on page 5, par ...bidders either reduce their costs P final programs acceptable to the City of „�� as further requested. page 6, paragraph 6, i d "...final decision based on fair negotiati, _) programs.". Motion was made b� r, seconded by C/Whelan and CARRIED to approve the Minu. if December 13, 1990 as amended. Ayes: Commissioners N,yer, Ruzicka, and Whelan Nays: None Abstain: Commissioner Plunk OLD BUSINESS: Resolution 91-1 established the Meetings of the Parks and Recreation Commission of the City of Diamond Bar be held on Resolution the fourth Thursday of each month at 7:00 p.m., to be held in 91-1. the Community Room, 1060 S. Grand, Diamond Bar, California. C/Ruzicka requested the Resolution be amended in section B.1. to read " . unless the same shall be a legal holiday...". C/Meyer requested the Resolution be amended in section B.1. to read "... held on the next succeeding Thursday calendar day.". Motion was made by C/Meyer, seconded by C/Plunk and CARRIED UNANIMOUSLY to approve Resolution 91-1 as amended. January 10, 1991 Page 3 This approach would give the City the greatest amount of flexibility in terms of dealing with the realities of the budget. C/Meyer recounted, to his understanding, the motivation for considering other recreation providers was the unacceptable service provided by WVR, and the County. City staff had also indicated a desire to have a least a year to be able to provide in-house recreation services determined acceptable. With this in mind, the Commission decided the proposal offered by Brea was the most viable option. The only element in question, with the Brea proposal, was scaling down the costs to meet the City's budgetary constraints. He inquired if the posture had changed. ACM/Belanger explained Brea has policies in terms of the administrative charges that applied to the proposal. Brea appeared reluctant to provide a reduction in the admini- stration costs, which are approximately $75,000. Cheryl Lynborn, residing at 21018 Windrose, Walnut, supervisor for the WVR program, suggested, if the Commission is considering an In -House recreation program, to start with small programs as early as March for the summer program. She stated beginning at ground level would not be necessary and communicated the availability of the contract instructors upon City notification. Chair/Whelan maintained the City has not been provided, by WVR, with the needed direction and information to set up recreation programs. ACM/Belanger explained the City had already intended to have the chosen provider involved in replacing WVR as early as March. The intent was to become familiar with the present contractors, develop brochures, while looking over WVRs shoulder for the development of a summer program. Since WVR will not be developing a summer program for Diamond Bar, the preparations will be done solely by the City. Brea, like the City, would have to hire additional professional recreation- ists to provide a recreation program. The City already has staff with the expertise in managing substantial recreation programs. The City is capable of providing the community with a quality recreation program. C/Meyer pointed out that the figures of the In -House program were low because incidents of possible liabilities were not included. C/Plunk noted the costs of hiring four (4) new employees were not included in the In -House estimates. January lo, 1991 Page 5 However, at this point, it does not seem they will be able to conform to our budgetary constraints. Therefore, the Commission should work towards creating a recreation program in preparation of avoiding a linear process. C/Ruzicka inquired if $182,000 is the top figure the City will consider. ACM/Belanger stated the mid year review going to the Council will show there is less monies available than proposed in June, 1990. CM/Van Nort's concern is that the City maintains the budget levels at approximately the levels they are at without expanding beyond that. Chair/Whelan expressed concern that the first area to be cut is the Parks and Recreation. He requested staff return with a core program that will not be touched by budgetary constraints whereas the Commission will then expand from that point. C/Plunk suggested reviewing the programs received from Brea and the YMCA and note the areas favored by the Commission in the two (2) programs, as opposed to going straight back to the proposal made to us. She would like the budget to include the $182,000, plus the $50,000 from Proposition A. She requested if they are unable to meet the limit, the money should be put in the CIP towards recreation in order to avoid paying a profit margin to a provider thereby obtaining better benefits. C/Meyer wondered why Brea presented themselves to be flexible and enthusiastic to meet our needs, but now it appears to be the opposite. ACM/Belanger stated Brea's position has not changed. However, though not emphasized at the time, much of what any contractor would do in way of a recreation program, can be done by our staff. The attraction of a contractor is that the City would not have to do the nitty gritty of a program, if the premiums are affordable. The attraction of having Brea run the program is not any less. However, the environ- ment in which we are considering that has changed and has cast the comparative advantages and disadvantages in a different light. VC/Ruzicka noted the difference between an In -House program and the Brea proposal seems nominal as compared to the total budget. ACM/Belanger stated the difference is not as great in comparison to the total budget but when compared to the difference in relationship beyond the unappropriated reserve, January 1o, 1991 Page 7 review the information and provide additional comments at anytime, not restricted to meeting times. Cheryl Lynborn offered her availability to the Commission for any advise or suggestions. She can be reached at 595-4175. C.I.P. Staff reported the given ratings of the prioritized Capital Improvement Projects (CIP) were derived by dividing the total given prioritized number, by the amount of Commissioners who responded their ratings. The lower the number, the higher the priority. Those Commissioners who did not respond may do so at any time and the figures will be recalculated. AA/Fritzal stated it is up to the Commission to rate the projects according to its importance. She stated the Council recommended making four (4) categories to be done over a five (5) year period: urgent (safety); recommended; desirable; and deferable. Urgent items are to be considered done over a two (2) year period. C/Plunk wondered if the Commission would be, in essence, asking for a budget cut by going with the urgent instead of the desirable. AA/Fritzal explained the Council has the final decision as to what is urgent. If alternative funding can be found, then those monies may be used for some of the projects. Chair/Whelan requested from staff a list of items considered to be urgent. Survey Staff reported a survey was designed by the Parks and Results. Recreation Commission to gather input from the community by requesting information regarding parks, recreation, services, and facilities. The results of the survey will be used for the Parks Master Plan. VC/Ruzicka questioned if the survey of 135 people is a realistic assessment for a City with a population of 70,000. AA/Fritzal replied it may not be statistically accurate but at least 135 individuals responded giving a base for some type of assessment. C/Stitt commented the survey reached out to those individuals who would not have normally involved themselves in City decision. He suggested when looking at the CIP, the Commission should take careful consideration of the findings of the survey and note their differences. Quail Summit PMD/Daniel reported there should be no problems in using the Facilities new portable multi-purpose room at the Quail summit campus Use. after the dedication scheduled for early February. January 10, 1991 Page • 9 concrete, including two (2) goals with fencing, be included in the Commissions CIP list. Chair/Whelan acknowledged the request and stated the Commission will take it into consideration. ADJOURNMENT: Motion was made by C/Meyer, seconded by VC/Ruzicka and CARRIED UNANIMOUSLY to adjourn the meeting at 8:50p.m. Charle Janiel Secretary Attest: Pat Whelan Chairman CALL TO ORDER: PLEDGE OF ALLEGIANCE: ROLL CALL: MATTERS FROM THE AUDIENCE: CITY OF DIAMOND BAR MINUTES OF THE PARRS AND RECREATION JANUARY 24, 1991 Chairman Whelan called the meeting to order at 7:00 p.m. at City Hall, 21660 East Copley Drive, Suite 390, Diamond Bar, California. The audience was led in the Pledge of Allegiance by Commissioner Meyer. Commissioners Meyer, Plunk, Vice Chairman Ruzicka, and Chairman Whelan. Commissioner Stitt was absent (excused). Also present were Parks and Maintenance Director Charles Janiel, Adm,.nistrative Analyst Kellee Fritzal, and Contr- 'ecretary Liz Myers. Jeff Stever 3tive of the Diamond Bar Little T about the possibility of thefield use fees required from , nified School District (WViJSL Commission that the manage_ (' arrangements with the Distric _fields and must pay $7.50 per chil Per family. VC/Ruzick, ..Lormed Mr. Stevens of the City's current buaget constraints. PMD/Janiel explained if the City supplemented the Little League fees, then the City could be obligated to do so with other sports organizations. If the Commission decided to supplement the sports groups, the money would have to come out of the recreation budget. VC/Ruzicka stated there will always be some use fees to,cover the costs of maintenance but perhaps the fees could be less if adequately arranged through the Joint Powers Agreement. C/Meyer pointed out that the tax payers should already be covering maintenance expense. He suggested the request would be better put to the School Board. AA/Kellee Fritzal stated staff will review the matter and bring the information back to the Commission. C/Plunk suggested the money saved, by going in- house for the recreation program, could be directed to the different groups. January 24, 1991 Page 3 The Interview Sub -Committee selected Brea as the most responsive, with a net cost to the City of $235,000. The proposal is currently $50,000 more than budgeted. A more realistic approach to providing recreation may be providing it with in- house recreation staff. The City can provide a quality recreation program the same size described in the RFP. The Brea proposal has not been abandoned. However, it does not seem they will be able to conform to our budgetary constraints. To avoid a linear process, the Commission should work toward creating a recreation program. AA/Fritzal handed the Commission a draft of the revised Brea proposal and a draft of an in-house recreation program. Brea has not yet seen the draft revised to fit within our budget constraints. There is a chance that Brea may accept the draft proposal due to the prestigious nature of expanding their recreation program. However, there is no flexibility for Diamond Bar within the proposal. The in-house proposal includes an estimate of the expenditures and revenues. The programming services can be cut and changed to fit a desired core program. C/Plunk informed the Commission of the excursion information received from Cheryl Lynborn of Walnut. VC/Ruzicka asked if it were possible, giving the information in regards to the recent economic downturn, there will be no money for recreation. PMD/Janiel emphasized that the mid year budget review gave a more realistic view of the monies available. AA/Fritzal stated a successful recreation program will pay for itself. C/Plunk asked for staff's opinion on corporate sponsorship. AA/Fritzal responded she agrees fully with corporate and community organization sponsorships. C/Plunk informed the Commission that R&B Property Management has offered to sponsor the Halloween Haunted House. She also stated that Ray Roberts or John Wilker has offered to help with the Junior Golf classes. Chair/Whelan stated his preference would be to start with a core program and then build from that point. The priorities should be set first within the budget constraints. He would recommend the January 24, 1991 Page 5 the community. Every resource will need to be utilized. VC/Ruzicka pointed out that the development of a core program will be flexible enough to stand whether the budget is meager or generous. REPORTS: PMD/Daniel reported the monthly park activity report for December, 1990 has been completed by Don Monthly Park Hensley, Superintendent of Parks. Activity Report VC/Ruzicka commended the report. He suggested the report be published to reinforce, to the citizens of Diamond Bar, that the parks are not being neglected. INFORMATION: PMD/Daniel reported meeting with Dan Murray, eagle scout candidate, to discuss possible projects in Eagle Scout Sycamore Canyon Park. Financial support was Project offered to help supplement material costs, if needed, on acceptable projects. Mr. Murray had first suggested building an amphitheatre. The project may be too overwhelming, and it was counter suggested to put in benches along the trails, horse shoe pits, or some project on a lower scale. Chair/Whelan noted the scout would need a project that would require a lot of man hours. It is good for scout motivation to do community projects that will give a sense of accomplishment. National/State/ Staff reported the Los Angeles County Board of County/Partnership Supervisors recently has approved $117,675 in matching grants to twenty-one (21) county -residents arts organizations through the National/State/County/ Partnership challenge grant program. I C/Plunk wondered if there was a baseball film of sorts that could be done to get the money over to the Little League. Chair/Whelan inquired if these could be sources for concerts in the parks. AA/Fritzal stated the possibilities will be reviewed. one avenue is that the arts society have traveling tour groups that may give money to very inexpensive shows in cities. PMD/Daniel informed the Commission if they know of any local groups that would like to make applica- tion, they should call City Hall because the deadline is March 4, 1991 to fill the grant application. January 24, 1991 Page 7 The Commission gave approval to accept the suggested change of brown. ADJOURNMENT: Motion was made by C/Meyer, seconded by C/Plunk and CARRIED UNANIMOUSLY to adjourn the meeting at 8:22 p.m. to the next meeting of February 14, 1991. Charles aniel Secretary Attest: — �Y2 e�—& Pat Whelan Chairman CITY OF DIAMOND BAR MINUTES OF THE SIGNIFICANT ECOLOGICAL AREA TECHNICAL ADVISORY COMMITTEE JANUARY 18., 1991 CALL TO ORDER: Chairman Petersen called the meeting to order at 3:15 p.m. at the Community Room, 1061 Grand Avenue, Diamond Bar, California. ROLL CALL: Committee Members: Dr. David Berry, Charles Hewitt, Vice Chairperson Schmidt, and Chairperson Petersen. Also present were Planning Director James DeStefano, Associate Planner Robert Searcy, Interim Director Irwin Kaplan, and Contract Secretary Liz Myers. NEW BUSINESS: Chair/Petersen noted pages 7, 8, and 9 of the master EIR were supplied to the Committee Members. Tentative Tract 47850, Chair/Petersen decided to review the master EIR 47851, & 48407. response packet by page to allow the Committee Members to voice any questions or concerns to the development team on any of the information provided. Page 8: Alternative Density and Configuration. Chair/Petersen referred to the last sentence of the paragraph, and requested clarification. Dr. King stated, essentially, the environmental impacts, in the overall report, that has been identified as unavoidable, are unavoidable on every alternative. Those that can be fixed, can be fixed on any alternative whether it is a lower or a higher density. CM/Hewitt asked for clarification to the proposed lot sizes stated on page 7, and then on page 8. He inquired if it will cause a zone change, or will it fit in�o the present General Plan of the City. Dr.King explained that, in California, zoning is not required, but planning is. If planning is done, something should be done in regards to zoning in order to implement the plan. In California, the zoning must be consistent with a General Plan. The Attorney General defines consistent as compatible and harmonious to. Case law has essentially stated that if the density of the general plan says one unit or less, that means if the zoning has 8,000 sq. ft. minimum lots, it still cannot be subdivided. In the past, this meant some lots could be less than one (1) acre. As long as the average was one acre, it would be found to be January 18, 1991 Page 3 the new condition, and on the existing condition, it is 130 CFS. It is true that less water will be deposited in this canyon than we had coming through on the other section. Chair/Petersen acknowledged on the existing natural drainage, there has been some manipulation where water has gone. Al Dayton stated all the water comes down and into the same stream. It can be controlled. There is going to be slightly more water after the construction than there is in the natural state. Chair/Petersen maintained the statement made by the hydrologist, in regards to a decrease in water, must be incorrect. Al Dayton affirmed there will be an increase in water. However, less water can be delivered by putting in a retention basin and controlling the amount and the velocity. It is not a problem, and a solution can be made to satisfy the City Engineer. James DeStefano recommended the developer's consultant reexamine the issue. There appears to be too many non -permeable surfaces to have the total CFS decrease. The question the Committee is concerned with is the quantity coming off the hill now, and how much will be coming off after the project. Dr. King stated the hydrologist will review the issue, and verify, so as to receive clarification on precisely what and where the change would be, in order to identify it's implications. N Chair/Petersen reiterated the Committees concern as to what will be going down into the riparian system in the Tonner Canyon. The Committee would like clarification. Page 5: VC/Schmidt asserted, on the paragraph below, the Committee was looking for an emphasis on specific statements, in the EIR, about impacts and then, perhaps, some proposed ideas on how to mitigate them. Dr. King noted the request. Page 8: VC/Schmidt stated, on statement #2, the language needs to read "...will be...", as opposed to "...should be... January 18, 1991 Page 5 CM/Hewitt affirmed there is a need for some measure to control water. Ponding seems a viable measure. CM/Berry concurred and stated he has no problem with ponding on a small scale. VC/Schmidt inquired if ponding is the most viable method to deal with run off. She noted , on page 25, that the developer may want to consider a different tree for the waterpool. Gary Mayser explained there are two (2) ways to deal with run off: 1. Take the water as it comes down and use the existing stream. Then, redesign the stream with planting and mechanical devices to deflect the water and limit the erosion. 2. When the water comes initially into the stream system, create a surface pond basin or a percolation basin, where the water comes in and ponds momentarily, and then, either spills out or circulates, and drops into the aquifer. The question is which method does the Committee prefer. CM/Hewitt declared the decision depends upon the volume of water that comes off. Once a projected quantity is given, a decision can be made. Chair/Petersen replied the ponding concept would be a good method as opposed to having the water ricocheting without control. He maintained there is still a problem with the word ponding. Page 10: Bernie Mazure requested items on this page be deferred because a geologist is expected to attend the meeting who is capable of addressing concerns and additional questions. j+ Page 12: Visual Impacts VC/Schmidt maintained she was looking for a statement in the EIR specifically stating there will be an impact on the visible quality and aesthetics of the canyon, and that the alterations will be visible from the canyon and beyond. Page 17: Neighborhood Interfaces with Wildlife CM/Hewitt inquired how the educational information provided will be delivered to the homeowners. He also wondered how the enforcement of the policies will be monitored. Dr. La Peter stated the regulations will be stated in the CC&R's. They will have to be signed upon the purchase of the house. James DeStefano declared that the issue is January 18, 1991 Page 7 Irwin Kaplan, city Planner, explained that typically the City would focus study and then apply a prorata share for each of the developers developing projects within the study area. The problem is that the study would get done after all the development was finished. He suggested it might be appropriate for the Committee, with the information received from the applicant and their consultants, to take a map of the canyon and draw out an ecological context plan. The map can be set up as a framework, with the knowledge it is a first task and not a complete study. Each of the Committee Members could use it as a basis to sketch ideas and write out comments. This method will give a two (2) point perspective: 1. We will have the specific information for the project under consideration. 2. We will have an overview to be able to look at the specific project. Bernie Mazure suggested, if the Committee could arrive at a dimension in regards to cost of the proposed research, it may be possible for the initial developers to fund it on the basis that in coming projects could be assessed and the funds returned over a period of time. Irwin Kaplan stated there is a mechanism for funding and repayment for such a study. It will be suggested that the City define the scope of a study to assist in determining the costs. The proposal will be available at the next meeting. Chair/Petersen stated the majority of the Committee's questions have been responded to. He inquired if Dr. King would like to make a presentation. Dr. King presented the Committee with a map displaying the approximate current boundaries of the SEA 15 and the Chino Hills Preserve. The map demonstrated the three (3) projects currently under discussion; a project to be proposed soon; and the proposed extensions of certain roads. He stated, on this project, the entire area of the SEA 15, within the City of Diamond Bar, is currently proposed for development. Dr. King related that a golf course and a country club, in the Boy Scout property, is currently being proposed through Los Angeles County. He demonstrated where the access road to the development may be located. The SEATAC noted the development of the proposed access road would effectively eliminate the SEA's viability. CITY OF DIAMOND BAR MINUTES OF THE SIGNIFICANT ECOLOGICAL AREA TECHNICAL ADVISORY COMMITTEE DECEMBER 3, 1990 CALL TO ORDER: Planning Director James DeStefano called the meeting to order at 2:05 p.m. at the City Hall, 21660 East Copley Drive, Suite 190 (moved from Suite 300 due to lack of space), Diamond Bar California. ROLL CALL: Committee Members: Dr. David Berry, Charles Hewitt, Vice Chairman Sherry Schmidt, and Chairman Craig Petersen. Also present were Planning Director James DeStefano, Associate Planner Robert Searcy, and Secretary (contract) Liz Myers. NEW BUSINESS: There was a general discussion in regards to the nomination of the Chairman and the Vice Chairman. Designation of Chairman and Staff reported the SEATAC members were appointed by the Vice Chairman. City Council approximately two (2) weeks ago, after a lengthy search for members with the qualifications, and a willingness to support the City Planning Commission and the City Council, in a review of this sensitive project area. The SEATAC and members of the staff have had the opportunity to see the site via a tour provided by Dr. Buffington. The SRAmT^ has also held an informal session Friday. **- 1990, to discuss their role re, Mot ��� chmidt, seconded by CM/Berry and CAR. nominate CM/Craig Petersen as Cha Moti Petersen, seconded by CM/Hewitt, and _„.SLY to nominate CM/Schmidt for Vice Cha i. Conflict of Planning Director James DeStefano explained the SEATAC Interest Code. is subject Ito the same rules and regulations other operating commissions or committees of this Municipal Government abide by. The Committee is subject to the open meeting laws of the Brown Act as well as the Fair Political Practices Act. He stated at the end of the meeting a copy of a memorandum written by the Assistant City Manager, and a copy of Form 730, a State of California Conflict of Interest Form, will be passed out. The form will need to be filled out and returned by the next meeting. General Staff reported that the project under discussion is Discussion adjacent to the Country, located in the southeast portion of the City of Diamond Bar, and adjacent to the County's designated Significant Ecological Area (SEA). This is one (1) SEA out of about 65 SEAs located within Los Angeles County. The specific project is comprised of three (3) separate tracts, in a "U" shaped form, surrounding a remnant parcel. The project contains 120 December 3, 1990 Page 3 ultimately tie into -natural drainage systems". He wondered if street runoff ultimately go directly into Tonner Canyon, and therefore, runoff from the present Country go there too. 5. The main concern wraps around the riparian ecosystem of Tonner Canyon, which was not specifically addressed. He wondered where the runoff will be going to and the kind of impact it will have on the down stream portion of Tonner Canyon: will it be an overall cutting situation, or a building situation? The information is critical in understanding the ultimate changes which may occur in the streamside areas of SEA #15. Suggestion: 1. The CC&Rs should stipulate no removal or alteration of existing natural vegetation on the private lots beyond that required by the fire department regulations. This specifically pertains to the lots having homes setting on the pads and the lots extending along in linear fashion, especially those going down into the riparian areas. Beyond the pad construction and normal house/garden construction, he stated envisioning a person perhaps not liking chaparral and grading the land, in which case could effect the integrity of that particular watershed. 2. The CC&Rs should stipulate no fences allowed which would not allow the free movement of all wildlife species, such as chain link fencing or block walls at the lower portion of the tract. 3. He noted page 75 (#2-H) of the "Environmental Assessment of Potential Impacts Report" stated landscaping will be with water efficient plants wherever possible. He noted the term "wherever possible" as a potential fudge word and thought it should be done with water efficient plants period. He stated, throughout the report, there was no specific recommendations to the types of drought tolerant or xeric plants. There is a wide selection of species available, and the Planning Commission, the City Council, or appropriate biologists in the area should be able to list ten or twenty acceptable plants, as opposed to allowing strange plants from drought tolerant regions that may cause some unknown problems. 4. He asserted the SEA #15 is slowly being altered a little at a time and is appalled there is not a more regional approach on how to deal with Tonner Canyon and the immediate surroundings. This SEA should not be allowed to be degraded a little here and there, such as the yet to be developed adjacent properties, the golf course potential across the canyon, the potential for a major road, December 3, 1990 Page 5 rodent control, skunk and possum control. People must realize the potential for the disappearance of their pets when living in an area as this. There is also a potential for Mountain Lions in the area because of the corridor which goes from Old Canyon across the 91 freeway, through Greener Drive, on through Chino Hills State Park and into Tonner Canyon itself. The potential for domestic animals being harmed by them should also be addressed. 4. There is a symposium on endangered plant communities in Southern California that was given three (3) years ago. The Walnut woodland itself is considered an endangered plant community. She is bothered by the fact there are 1,145 walnut trees in the area and they are proposing to remove 763, leaving only 382 Walnuts remaining. Since it is an endangered plant community, she is bothered that it was not so mentioned in the EIR. 5. There is no mention in the EIR that Tonner Canyon is an important wildlife corridor. Chino Hills State Park is probably the most protected area left in terms of wildlife. It is a very small area and is not large enough to maintain a male mountain lion. The largest area for genetic exchange between Chino Park is the corridor that now exists from the Santa Ana Mountains through Hall Canyon to Chino Hills State Park. Tonner Canyon is also a portion of the corridor. To maintain the integrity of the wildlife in the Park, which is such a small area, the corridor must be maintained for wildlife to move in and out of the Park. She stated the importance of realizing we are impacting an important wildlife corridor, and should be stated as such in the EIR. There is no mention of it in the EIR now. 6. She stated mitigation can not be discussed until some of these questions have been answered. I CM/Hewitt referred to some of his concerns. 1. The EIR does not specify types, sizes, and species of the replacement trees. It is important to use the term zero scape type plants, drought tolerant plants and specify the species. 2. The EIR does not mention the replacement of the 763 Walnuts be removed. Some arrangements should be made on replacing them with another type of drought tolerant tree, and mentioned as such in the EIR. 3. The EIR does not mention the replacement of the 40 Quercus dumosa, which is critical to the watershed, to be removed. 4. The replacement ratio of trees should be higher, and he believed a 4 to 1 ratio would be more acceptable to insure the long term replacement of removed species. He suggested the replacement December 3, 1990 Page 7 suggested the geological reports from the consultant specify, in particular, ways of mitigating problems of expansive clays within the site. 6. Fundamentally, the list of problems need to be tied to a regional master plan and should be continually addressed in future meetings. Chair/Petersen inquired if any committee member wished to add to any comment. With the consensus of the committee members, the questions and concerns are concluded. James DeStefano recommended requesting, from the development team, responses in writing to the variety of concerns illustrated. The comments should be received through the staff, transmitted to the SEATAC, and then schedule the next meeting. Gary Mayser, Senior Vice President of the Diamond Bar Associates, inquired if it is possible to allow a response to be within 10 days. He felt confident a response in a professional manner can be given without delay. Don King stated, with the exception of coming up with a good response to a regional plan in Tonner Canyon, he doesn't see a problem with obtaining the information requested. James DeStefano asserted, assuming the information can be delivered to him by December 14, 1990, the next reasonable meeting date would be close to Christmas. He suggested working around the holidays and set the next meeting date in January, 1991, allowing the committee time to review the comments from the development group. Chair/Peterson concurred and suggested Monday, January 7, 1991. I James DeStefano suggested tentatively targeting January 7, 1991, subject to the receipt of the materials responding to the comments of today as well as subject to the calendar commitments of the SEATAC members. Individual notice of the exact date, time and location of the meeting will be given to the SEATAC members, as well as all other participants in todays meeting.Gary Mayser reiterated if the information is presented earlier, could the date of the next meeting be upped to an earlier date. James DeStefano stated the decision is for the SEATAC members to make but recommended allowing seven (7) to ten (10) days for proper review of the materials. December 3, 1990 Attest: 4�114 to Ja es DeStefano Secretary/Planning Commission Page 9 Craig Petersen Chairman January 14, 1991 Page 12 should remain as it is, and wished the applicant well in conducting a facility which seems to be appropriate at the present moment. C/Lin remarked that deep down, the majority has a sympathy for those with Alzheimer and a deep appreciation for those who care for these people. Neighbors should feel obligated to help the facility keep on. VC/Harmony maintained, that upon visiting, he was impressed with the facility and there was a sense of caring from the director. The idea of expansion is too massive of a construction for the pad size. Every community needs to face its realities and these type of facilities are needed. However, six (6) people may be an adequate number to care for. He urged the neighbors to visit these people and see them for the circumstance they are in. He wished the applicant good luck. Bill Curley noted changes of the draft resolution presented to them: Page (3), section 3c should be deleted; section 4a should read "...to accommodate this density of development and use."; and section 4b should read "...can not reasonably accommodate." Motion made by C/Grothe, seconded by C/MacBride, and CARRIED UNANIMOUSLY to pass the Resolution of Denial for CUP 90-0117, as amended. Sign Ordinance Staff reported the draft sign ordinance is a request to amend certain provisions of Title 22 of the Los Angeles County Code, as heretofore adopted by the City of Diamond Bar, pertaining to signs. James Destefano reported the Commission has received the latest draft sign code package, which incorporates a discussion of non -conforming signs and sign abatement. The package has been distributed to approximately sixty (60) individuals and organizations for their review and input. The outstanding issues of the draft sign ordinance revolves around the need for specific language refinements. James Destefano reviewed the key components of the ordinance in order to be sure the document reflects the Commission's philosophy and policies on the issues. A brief discussion will be necessary in regards to the non -conforming and sign abatement provisions within the document. Depending upon the changes, the document should be brought back to the Commission, at the next meeting, for consideration of a Resolution of Approval at the next meeting. January 14, 1991 Page 14 architectural review by the Planning Commission. Staff wished to caution the Commission that it is more a Council policy issue as to whether they want to delegate that specific authority to the Planning Commission, the Park and Recreation Commission, or to staff. VC/Harmony interrupted the report to suggest the staff review a Council ordinance on architectural review that delegates architectural review on development projects, and so forth, to the Planning Commission. 9. pages 28, 29, & 30 - The areas related to Prohibited Signs will be stricken from the final ordinance. To specifically list permitted signs and list prohibited signs create a grey area for those signs that fall somewhere in the middle. It is best to have a sign ordinance that specifically lists signs that are permitted and everything else is deemed to be prohibited. 10. The final 12 pages of the document have some policy issues that the staff will review with the Commission, if so desired. James DeStefano stated there are still some definitions that need language clarification. As an example, the definition of sign area needs clarification because it is very difficult to understand. He noted there has been very little comment and input concerning the document from individuals and organizations. C/Lin requested staff classify the uses of the free standing monuments noted on pages 21 and 22. i James DeStefano replied, on page 21, it refers to a free standing sign for a single use. Page 22, refers to a free standing sign for a commercial center. The square footage for a sign face area triples for a commercial center, although height remains the same. The Public Hearing was declared open. Rachel Sieger, residing at 22939 E. Escerol Drive, suggested the Commission adopt a conservative approach to signs in Diamond Bar. The proliferation of signs in a community effectively decreases the property value, and quality of a community. She noted the large number of political signs and suggested restricting the numbers allowed. January 14, 1991 Page 16 codes. The maximum height of six (6) feet would remain in effect. There was no talk, specifically, about public uses, which have raised some concerns, that are adjacent to the freeway. It was generally discussed how one may go about receiving an appro- val for a sign that differed from the prescribed standards. Irwin Kaplan explained that a variance is a dif- ficult procedure to determine if it is a variance for height, location, or freeway access. He sug- gested using the CUP as an alternative. Bill Curley stated a variance gives a very narrow set of parameters. The CUP gives a broader range of flexibility. Irwin Kaplan suggested using a CUP procedure that is narrowly focused. VC/Harmony stated the words in the CUP should be tough and the definition should be beyond question. Irwin Kaplan suggested, in regards to signs in multi use buildings, the Commission distinguish between signs from new tenants in existing centers as opposed to a new center with a series of new signs. The former may not need to be part of a plan sign program that needs review by the Planning Commission. Irwin Kaplan stated the Commission distinguished between signs that are non conforming by virtue of type of signs, as opposed to signs that are non conforming because of size. Type of signs would be a pole sign or a roof sign. In the discussion, it was determined that the illegal type of signs would be phased out after the fifteen (15) years. Signs that were illegal in all respects, except size, would continue until such time the business changed, as opposed to trying to go on an enforcement campaign. As the document is now written, it makes no distinguish between signs that are non conforming by virtue of size, versus signs that are non conforming by virtue of type. our original discussion stated we would go after the signs that were of a type no longer to be legal. Bill Curley rebutted that the structured has been broadened rather than trying to develop a definable criteria. By directly articulating all the signs the Commission approves or disapproves, gets into an area fraught with both definitional and equal protection challenges. The way its structured, "they shall be permitted to remain for fifteen (15) years", puts us up to our threshold time where we January 14, 1991 Page IS removal of a sign. 3. page 2, section 102B. 5b. - He noted the application process was not to be done. James DeStefano concurred and stated the section will be removed. 4. page 3, section 102B. 5c. - He inquired why a Planning Director would waive a requirement and for what situations. Bill Curley pondered that initially it began as an amalgamation of a variety of City standards that may have picked up something at a time when a Planning Director's scope included building official. James DeStefano stated the item will be reviewed. 5. page 4, top line - He wanted "th" removed. 6. page 5, item F - He requested a clear definition of "right of way". 7. page 5, item G - He would like some consideration for arabic numerals included. S. page 6, section 106E - He would like the definition of the area of a sign to be improved. 9. page 8, item L - He noted the definition sounds more like an ordinance. 10. page 11, item II - He noted the definition sounds more like an ordinance. James DeStefano stated section LL on page 11 will be removed. 11. page 12, item PP - He suggested including the word "candidate". 12. page 15, section 106 - He corrected the typing error which should read "...Planning Director or...". James DeStefano noted wording such as " ...Planning Director or his..." will be amended to read ..."his/her". 13. page 16, section 106A - He noted that maximum height of wall signs was left blank. James DeStefano explained that maximum height needs to be stricken to allow the flexibility to create signs of various lettering heights, shapes, and so forth. January 14, 1991 Page 20 ANNOUNCEMENTS: VC/Harmony inquired of the Commissions interest in a Speakers Bureau. C/Grothe recommended the City maintain a list of possible speakers to be kept at the City office. C/MacBride stated he was uncomfortable with the idea. C/Lin concurred with the other Commissioners. ADJOURNMENT: Motion was made by C/Grothe, seconded by C/MacBride and CARRIED UNANIMOUSLY to adjourn the meeting at 11:40 p.m. Clair Harmony Vice Chairman VkO475� James DeStefan Secretary/Plan ing Commission December 13, 1990 Page 2 RAB Oral Report C/Whelan reported the Recreational Advisory Board Meeting had been uneventful and there is no updated information concerning the JPA. Staff reported the City of Walnut has decided not to sign the amendment of the JPA requesting money be returned to the City of Diamond Bar from the discontinuance of the Park Drop -In Program. Staff explained the money available for use through the JPA agreement is approxi- mately $23,000, excluding costs. Since the actual money will not be returned to the City, staff recommended assigning the funds for use in a special event. C/Whelan inquired if staff can obtain equipment now for the Second Anniversary, using the funds in the JPA. Kellee Fritzal responded it can be done but suggested using the funds toward services as opposed to equipment. Staff is not confident any equipment purchased would be returned to the City. C/Whelan stated the City should take advantage of any funds still available and begin the preplanning stages of the Second Anniversary. C/Meyer inquired if staff felt confident the money can be used in such a manner, even though there is a discrepancy in the actual monies available through the JPA from discontinuing the Park Drop -In Program. Staff feels the City can obtain enough labor and services equating the dollars at hand. Staff reminded Commission that a new representative to the Recreation Advisory Board (RAB) must be appointed. The meeting is on the first Thursday of the month at 7:30 p.m. The next meeting will be January 4, 1991. C/Stitt expressed his desire to be the representative on the RAB. Motion was made by C/Ruzicka, seconded by C/Meyer and CARRIED UNANIMOUSLY to nominate C/Stitt to the post of the second representative from the Park and Recreation Commission to the RAB. Changing the C/Whelan requested the Commission meeting time be changed Meeting Date from 6:30 p.m. to 7:00 p.m. to allow more flexibility in & Time. his schedule. He stated Thursday would still remain a good date unless the Commission decides otherwise. December 13, 1990 Recreation RFP Page 4 The Commission identified items #10, 23, 24, 25, 28-33, 35, 38, 39a&b, 40, 41a&b, 42a&b, 43a&b, and 44 through 49. Charles Janiel reminded Commission that the projects will be in competition for funds. Therefore, he suggested prioritizing items in a way to make the funds available, first, for the needs of the Park and Recreation Commission. Lydia Plunk inquired if lights are unattainable at one park field, can there be an addendum to install lights on another field. C/Whelan stated the CIP must be specific so the Commission should add the alternative park to the list. C/Meyer suggested the Commission, in terms of prioritizing, refer to the potential number and type of users of a park. Charles Janiel noted the funds requested have been for bigger parks having the potential to serve the most people. He asserted the present user isn't as important as the potential user. Kellee Fritzal illustrated the four possible options for a Recreational Program and their net costs to the City. RFP NET COSTS Brea $235,674 YMCA $180,052 County $337,706 In -House $148,920 Kellee Fritzal reported staff, C/Whelan and C/Ruzicka met with the three (3) proposers at a meeting on Tuesday, December 111, 1990. The In -House proposal was also discussed on that date. Kellee Fritzal recommended the Commissioners not base their decision on net costs only, but also consider the services that can be provided. Items in the proposal can be negotiated. C/Ruzicka reported the bid from Brea was presented imaginatively. He suggested requesting from Brea a bid on programs they would find best for Diamond Bar. The YMCA does not have any experience in providing municipal type recreation programs and also did not include all the services requested. The County is expensive but experienced. There are opposing opinions to the quality of the services provided in the past. He stated his apprehension on an In -House program due to lack of December 13, 1990 Page 6 Kellee Fritzal informed the Commission of staff's intent to go for a three (3) year contract with yearly renewals. C/Whelan maintained the original intent was to go for a two (2) year contract. The first year would be the growing pains, and the second year would be to judge their actual abilities. Staff acknowledged the difference in the time aspect of the contract and stated a two (2) year contract can be developed. C/Whelan asserted he would prefer Brea come back with a revised program, then renegotiate to lower costs not exceeding $210,000. C/Meyer claimed all bidders should receive an opportunity to lower costs and present a revised program. The Commission should give a full review. Lydia Plunk stated it would be easier for City Council to make a final decision based on fair negotiations with two (2) programs. Motion was made by C/Whelan, seconded by C/Meyer and CARRIED UNANIMOUSLY to direct staff to contact all the entities involved in the RFP process and request a resubmittal on a recreation program at two (2) cost levels: one being at the existing level originally submitted, and the other at a lower cost level, with an idea of providing a program beneficial to the City of Diamond Bar. Staff will negotiate an agreement with the bidders and return the results to the Commission by January 10, 1991. CORRESPONDENCE: JPA Termination City Manager�Robert Van Nort stated in a memorandum dated WVUSD December 30, 1990, that the letter dated November 30, 1990 from the City of Walnut reflects they are not interested in either an independent audit or an amend- ment to the present Recreational JPA Agreement with Diamond Bar, Walnut, and the Walnut Valley Unified School District. It is not recommended, in the light of the numerous issues faced by the City and School District, the matter be further explored. C/Whelan explained the reason for requesting an audit was in hopes to outline items bought and paid for. December 13, 1990 Page 8 C/Whelan stated he was approached by Boy Scouts that want to do an Eagle project that entails developing trails through the Sycamore Canyon Park. He inquired of staff as to which action need to be taken. Charles Janiel replied the City Attorney needs to be notified first. He suggested the Boy Scouts contact him and give all the information needed and he will confer with the City Attorney and discuss requirements. Charles Janiel informed the Commission their Christmas decoration idea was postponed due to legalities con- cerning liability. C/Stitt welcomed C/Meyer and stated his eager anticipa- tion of working together. He noted the comments made by C/Whelan in regards to Councilman Don Nardella echoed the opinions of the whole Commission. He announced to the Commission he has attained a permanent position in the Commission. He thanked former Councilman, and now Assemblyman Paul Horcher for his original appointment as well as Councilman Don Nardella for the reappointment in the Commission. C/Stitt retold a concern expressed to him by a citizen in regards to the potential danger of a ladder in one of the play apparatuses in Peterson Park. He was curious as to the point of the ladder to the rest of the toy, and requested the Commission reevaluate the situation. Charles Janiel explained the functions of the equipment installed is to develop motor and muscle coordination. There are three (3) pieces of equipment at Peterson Park, each intended for different developmental skills. The safety of the equipment and the surrounding area meet the national standards. He stated the equipment will be looked at once again. ADJOURNMENT: Motion was made by C/Meyer, seconded by C/Ruzicka and CARRIED UNANIMOUSLY to adjourn the meeting at 9:05 p.m. to the next regular meeting on Decemb r 27, 1990 at 9:00 a.m. �I CharZe Janiel Secretary Attest: Chairman/ January 10, 1991 Page 2 Election of The nominations for Chairperson and Vice Chairperson for the Chairperson Parks and Recreation Commission were requested. and Vice Chairperson. C/Meyer nominated C/Whelan for Chairperson of the Parks and Recreation Commission. C/Stitt seconded the nomination. C/Whelan nominated C/Ruzicka for Chairperson of the Parks and Recreation Commission. C/Plunk seconded the nomination. The Commissioners voted on the nomination of C/Whelan as Chairperson to the Parks and Recreation Commission. Ayes: C/Meyer, C/Ruzicka, and C/Whelan Nays: C/Stitt and C/Plunk Chairperson Whelan received the nomination. C/Meyer nominated C/Ruzicka for Vice Chairperson of the Parks and Recreation Commission. C/Stitt seconded the nomination. The Commissioners voted on the nomination of C/Ruzicka as Vice Chairperson to the Parks and Recreation Commission. Ayes: C/Plunk, C/Meyer, C/Stitt, C/Ruzicka and Chairman Whelan. Vice Chairperson Ruzicka received the nomination. Recreation. ACM/Belanger addressed the Commission in regards to the recreation programs the City of Diamond Bar will be embarking upon at the beginning of the next fiscal year. He stated several recreation program proposals have been reviewed. Since that time, the mid year budget adjustment has been prepared reflecting the changes in service levels, as well as reflecting a more realistic reality as far as estimates for revenues are concerned. The relationship of proposed revenues and expenditures dropped to the point where City Manager Van Nort has expressed concern about expanding the expenditure base any further. Also, the knowledge the State of California and the County of Los Angeles are in a serious deficit situation gives further concern because of the tendency of a cause and effect relationship between State and City. The purpose of the meeting is to convey the reality of considering a recreation program that will be funded at approximately the same level as the recreation program provided through the Walnut Valley Recreation (WVR). There is, however, a constraint in regards to the financial level of the program to be considered. There is currently $182,000 budgeted for recreation programming, plus an additional amount of approximately $50,000, resulting from Proposition A, to underwrite the cost of the program for excursions. The two (2) proposal offered by Brea and the County would be at .least $50,000 more than budgeted. With the concern of the economic downturn, and the given budget realities, it is suggested the more realistic approach to providing recreation may in fact be providing it with In -House recreation staff. January 1o, 1991 Page 4 AA/Fritzal explained the employees would be part time as opposed to full time. ACM/Belanger stated there is a desire to be prudent and have as much control as possible of the resources, yet at the same time deliver a quality recreation program. He pointed out that, with the exception of one, the employees hired by Brea would be Brea's employee. The individuals would not be hired specifically for Diamond Bar but would be used for both cities. It would be very difficult to monitor the activities of the off-site individuals. He stated his assurance that Brea would do a good job, but questioned if the price can be paid. He declared City Manager Van Nort would recommend, if present, to seriously consider the establishment of our own recreation capabilities. He emphasized the importance of the Commission to give comments candidly. C/Plunk summarized that it is staff's recommendation is to seriously consider a program and then going directly to our long range plan of providing Diamond Bar with its own recreation program as opposed to providing the broadest program as quickly as possible then shifting to an in-house program. ACM/Belanger stated it is not necessary to emphasize the initial size of the program. It is not perceived that the In -House staff would be that dramatically different from a contractor. The difference being is that initially they would come better prepared as a team. VC/Ruzicka commented the Commission was already aware of budgetary constraints when making the decision on recreation providers. He noted that staffs expertise is the same now as it was before. He wondered where the idea of going in-house originated rather than trying to obtain some experience with a contractor on a yearly basis. ACM/Belanger responded the reason for moving toward an In - House program was because of the certainty that the expenditure level would remain below or at the current level but not exceed it. C/Plunk requested staff to present to the Commission, at the next meeting, a detailed delineation of the City's proposal. ACM/Belanger suggested the Commission can direct staff in two (2) directions: direct staff as to the areas the Commission would like emphasized in a recreation program; and/or allow staff to create a recreation program, within the given budget, and return it for the Commission's input. He emphasized to the Commission that the issue requires some discussion. The Brea proposal has not been abandoned. January 1o, 1991 Page 6 then the difference becomes much larger. The additional funds will come from the unappropriated monies, not from monies already appropriated. He explained the City does not want to be on a deficit position on an annualized basis with the expenditures and revenues. Chair/Whelan commented the enthusiasm with Brea was in contingency with their ability to revise the program to fit within our parameters. If they are unable to do so, then the Commission must look for alternatives. ACM/Belanger conceded, as of yet, staff has not gone the next step, whereas, our managers and council talk to their managers and council. There may stili be flexibility to get a number which is more acceptable. The purpose of the meeting tonight is to make the Commission aware of the existing situation and to have the Commission emphasize possible programs if In -House is the alternative solution. C/Plunk inquired if Diamond Bar would retain control of field scheduling if the decision is to go with a provider. ACM/Belanger explained the scheduling of fields is dependent upon the nature of the agreement forged with the school districts. C/Plunk inquired if the contract with Brea was a one (1) year contract with an option to renew or a three (3) year contract whereas every year we would be locked into it, if wanted, except for the costs. ACM/ Belanger responded the purpose of the contract would be to have at least a fifteen (15) month contract with a liberal notice provision to allow us to terminate the program with enough notification and begin our own program. C/Meyer suggested looking at a customized package derived from all the proposals. He reiterated including the liability factor in the In -House proposal. ACM/Belanger stated the good news is one way or the other, the City will have a recreation program that will be run by the City of Diamond Bar. Chair/Whelan directed staff to continue discussions with Brea on a revised program if possible and/or develop an In -House core program, to be presented by the next regular meeting of January 24, 1991. ACM/Belanger stated the information for the Commissions review will be available next week to give ample time to January 10, 1991 Page 8 CORRESPONDENCE: United Soccer PMD/Janiel reported the correspondence will be directed to Club. the User Group Sub -Committee. He noted a current roster was not included with the correspondence as so stated in the packet received by the Diamond Bar United Soccer Club. These Girls' are the only two (2) responses (along with the Street Hockey Softball. Players) received in reference to field scheduling. C/Plunk cautioned against giving the Girls Softball Summit Ridge fields in addition to the Peterson Park fields. PMD/Janiel noted field scheduling is now our concerns and will have to be dealt with as a community through a compro- mising manner. COMMISSIONERS C/Plunk thanked staff, with special regard to AA/Fritzal and COMMENTS: PMD/Janiel, and former Commissioner Don Nardella, in taking the time to acquaint her with the Parks and Recreation in an expeditious and professional manner. C/Plunk requested a discussion concerning "Photo Day" at Sycamore Park be brought up for discussion at the next meeting. The issue was brought to her attention by an offended citizen of Diamond Bar. C/Plunk included photos taken at the park and stated she does not feel this is an appropriate event that should be allowed in our parks. C/Plunk requested the Parks and Recreation Commission correspond to the appropriate Commission concerning the western terminus of Sunset Crossing in regards to developing the land for future park use. PMD/Janiel stated additional information concerning the area should be available in the near future and informed C/Plunk that various Commissions are already involved with the issue. C/Stitt apologized for being late and informed the Commission of his intended absence next meeting due to a conflict with his work schedule. VC/Ruzicka congratulated Chair/Whelan on his new position as Chairman. Chair/Whelan inquired if any boy scouts have yet gotten in touch with staff concerning projects at Sycamore Park. He informed staff of their pending call. PUBLIC Henry Ferreyra, residing at Armitos Place, Diamond Bar, COMMENTS: California, representing the Diamond Bar Street Hockey Players, requested a playing surface of 155' by 80' of January 24, 1991 Page 2 Chair/Whelan responded that the difference in cost between an outside recreational provider, and an in-house program, is not money readily available. James Roberts, representative of the Street Hockey Association, related information in regards to modifications of a Garden Grove park at a Junior High School to include a street hockey field. VC/Ruzicka proposed that Mr. Roberts request the plans used by Garden Grove for the purpose of initiating a league in Diamond Bar. CONSENT CALENDAR: Motion was made by C/Meyer, seconded by VC/Ruzicka and CARRIED UNANIMOUSLY to approve the Consent Calendar. C/Plunk requested the Minutes of January 10, 1991 be amended on page 4, paragraph 2, to read "...that staff's recommendation is for the Commission to seriously consider going directly...". She requested page 8, paragraph 3, be amended to read "...with as a community through compromise.". Motion was made by VC/Ruzicka, seconded by C/Plunk, and CARRIED UNANIMOUSLY to approve the Minutes of January 10, 1991, as amended. NEW BUSINESS: PMD/Daniel reported "The Southern California Girls" have reserved Sycamore Canyon Park and are in the Southern process of bringing in their one million dollar California Girls insurance certificate. It is staff's intention of monitoring the event and to work with the Sheriff's Department to strictly enforce all applicable codes. It will be ensured that parking regulations are followed, that solicitation of merchandise will not be allowed, and that the changing of garments on the park site iwill not allowed. He explained, under the current codes, there is not much else that can be done to restrict the group. C/Plunk inquired at what point the Commission should be looking at regulations. AA/Fritzal stated as of July, 1991 the City will be taking over the scheduling of the facilities. Staff is in the process of reviewing park policies and expect to deliver a policy to the Commission a month prior to July, 1991. OLD BUSINESS: AA/Fritzal reported, due to financial constraints, staff recommends the Commission consider a Recreation RFP recreation program to be funded at approximately the same level as the recreation program provided through the Walnut Valley Recreation (WVR). There have been four (4) recreation proposals received. January 24, 1991 Page 4 Commission give direction to staff to begin with a core program, with the first priority being revenue generating classes or programs, and then continue to work from there. C/Meyer would like the Commission to first address the issue of eliminating the RFP's obtained. AA/Fritzal stated it would not be advisable to drop the RFP's until the Commission is sure all avenues have been exhausted. Chair/Whelan asserted by building a foundation to a recreation program, it gives an easier method of revising the given RFP's to meet our needs and priorities. PMD/Daniel suggested it would be appropriate to form a sub -committee to review possible directions. C/Meyer stated he is unclear of the direction expected of the Commission. He questioned if the purpose is to redo the budget, redo the program, or redo the RFP. If the recreation program is to be in-house, then the process must begin tomorrow, disregarding other RFPs. AA/Fritzal stated it would assist staff to have the Commission state their priorities. C/Plunk asserted, realistically, the Commission is dragging the process by referring back to the Brea proposal. If there is going to be an in-house program, the Commission needs to start discussing what needs to be done. Chair/Whelan directed staff to drop all RFP proposals. I C/Plunk and Chair/Whelan volunteered to be on the programming sub -committee. C/Meyer inquired if a non-profit corporation has been set up. He noted it produces revenues and suggested obtaining an attorney to set one up. AA/Fritzal replied there is not one formed and staff will investigate. C/Meyer inquired as to the direction the sub- committee will be given in regards to the basic underwriting policy of the recreation. Chair/Whelan stated the policy is to develop a cost effective, efficient program providing services to January 24, 1991 Page 6 AA/Fritzal stated that usually the grants are given with the specification that so many community events are given. COMMISSIONER C/Plunk thanked AA/Fritzal and PMD/Daniel for COMMENTS: studying the possible resolutions concerning the "Southern California Girls Photo Days" at Sycamore Canyon. She also thanked CM/Van Nort and ACM/Belanger for their assistance in acquainting her with the funding sources and the administrative procedures of this department. C/Plunk inquired if the drainage at Peterson Park had been looked at. PMD/Daniel replied a sump drain is located there and it is intended to drain very slowly. C/Plunk requested the Parks and Recreation Commission correspond with the appropriate Commissions regarding the western terminus of Sunset Crossing. She asserted the major recreation area would be very seriously affected if it did go through. AA/Fritzal responded the General Plan Advisory Committee is now reviewing it. C/Meyer stated he would like to be informed as to where the General Planning Committee is, in regards to the Park and Recreation element. He would like the Commission to be advised so as to be able to provide input. AA/Fritzal stated an update will be made available on the next agenda. PMD/Daniel explained the attempt has been to not politicize the General Planning process. The Commission has not been involved to this point to keep it unbiased in decisions made in that area. C/Meyer requested if it is preferred not to give the Commission, as a whole, a copy of the draft, he would appreciate it if the draft would be mailed to the individuals who so request it. AA/Fritzal replied the Planning Director, James DeStefano, will so be informed. STAFF COMMENTS: PMD/Daniel informed the Commission that the signs to replace the County signs must be changed to brown instead of the approved green. The Traffic and Transportation Commission requested the color follow the State guidelines in order to keep signage standard. January 18, 1991 Page 2 within the intent of the it was being developed. the project and dividing lots will give an average General Plan at the time Taking the total area of by the total number of of 1.32 acres per lot. Page 5: Offsite Drainage Impact. Chair/Petersen indicated if there is an area of land that has homes, streets, and sidewalks, doesn't the net amount of water increase due to the increase of areas of non permeability. In which case, the response, on the second to the last paragraph, stating "... nonpermeable areas will be increased as a result of residential subdivision development of the property and the total run off, according to the hydrologist, will be decreased.", seems to be stated backwards. Al Dayton, of the development team, explained there are maps of the before and after conditions of the tracts. Because of how water has been taken from the tract and brought back into the natural areas, the west side has been decreased and the eastern increased. Many devices could be installed to control the water and deliver it at the velocity desired. James DeStefano contended that it doesn't make common sense that less water will be delivered. The Committee may request the developers to review their response and provide them with the additional research and response. Staff can concurrently work through the City Engineer's office and have it reviewed. Al Dayton concurred that the quantity of runoff will be increased. He was referring to the location of where the water will be brought out and how it will be handled. The water can be delivered to the Tonner Canyon via water retention basins, as a way of retarding the flow velocity. Dr. King attested the map specifies a decrease in water. It is possible that the map is not showing all of the numbers yet. Al Dayton stated the map indicates a 216 CFS at one particular point in the existing condition. When the condition was developed, it indicated a 245 CFS. There is an increase with this particular system. On the other side of the map, considering what is being taken out, there is a 99 CFS, and a 52 CFS coming from the proposed addition. The reason for this occurrence is that all of the water is being taken over to the westerly system. It can be solved easily by putting a storm drain system on the easterly side. On the westerly tract, the summation cue on the bottom of the map is 89 CFS on January 18, 1991 Page 4 Dr.King explained those are statements of intent leading to mitigation measures. These are objectives that the measures will be designed to do. Those measures will be identified in the EIR. VC/Schmidt was concerned with the mitigation measures in regards to statement #5. James DeStefano agreed the Committee may need to understand, conceptually, the types of mitigation measures, that may come out of statement #5, concerning the downstream condition. Dr. King suggested the developers may be able to develop a palate of alternative measures. It is difficult to be specific because the design is somewhat in a state of flux, due to the contour grading standards. Page 7: Chair/Petersen requested information on the proposed pond. He questioned the impacts of adding water sources to retention basins ponds. Dr. King explained the pond referred to a percolation basin, or a retention basin, after a rain, and for a limited period of time. It was not intended to be permanent. It was designed as a mitigation measure to reduce the speed of the flow of water in hopes of providing an intermittent water resource to wildlife. Chair/Petersen asked if the fish will be added seasonally. Dr. King reiterated the intent was not to be long term and the statements concerning "the fish" are specious and willibe removed from the text. James DeStefano clarified that the Committee is looking for a correction of those statements. Bernie Mazure inquired if the statements could be handled conceptually to satisfy the SEATAC. He elaborated that the concerns of the Committee should be satisfied with some conceptual language that could then result in conditions of approval in the subdivision itself. James DeStefano maintained it is staff's position to recommend the SEATAC to obtain enough data, to satisfy them that the issue will be taken care of in a manner deemed appropriate. Dr. King asked if the Committee agreed that ponding is an idea worth working out the specifics. January 18, 1991 Page 6 enforcement of the CC&R's. He suggested it could be referenced in the CC&R's as part of a homeowners packet. The project could be conditioned in a way that requires proof that buyers have received such a packet. Gary Mayser stated the issue will be taken care of. Page 19: Trees CM/Hewitt stated his satisfaction to the changes made. He is concerned with the reality of the availability of the species on the market when it is needed. In the landscape business, if the species is unavailable, an alternative species is used. He requested that language be included which determines how and who makes that decision. Craig Weber declared that native trees are easily attained. The attainability of some of the shrubs vary from nursery to nursery. The intent is to reforest the hillside with the native plants and put ornamental shrubs within closer proximity to the homes. Gary Mayser suggested a list of alternative shrubs could be added to the list. CM/Hewitt declared that there is no need to get that specific. He would like language included which states the alternative plant chosen will be adequate. CM/Hewitt stated another concern is that in some cases the species aren't quantified. Craig Weber explained at this particular time the species cannot be quantified but it will be done in the technical plans. CM/Hewitt and Craig Weber discussed the various types of species of the Eucalyptus that would be preferable. Mr. Weber stated there is no problem clarifying the species to be used. Page 22: Maintenance of Irrigation Planting Chair Petersen inquired if ,one of the conditions of the CC&R will prevent the removal of the native plants by the homeowners. Gary Mayser stated it will be included in the CC&R's. Page 29: Chair/Petersen asked if the City had examples on how fees could be levied on developers in regards to the potential improvements of Tonner Canyon. January 18, 1991 Page 8 James DeStefano contended staff has not been notified of any decision, relating to the near approval of a golf course, or of information addressing road alignment. Staff will provide the accurate information to the Committee. Chair/Petersen stated the dates of the next (3) meetings will be February 4, 1991, February 25, 1991 and March 4, 1991. All three (3) meetings are to be held at 3:00 p.m. at the Community Room, 1061 Grand Avenue, Diamond Bar, California. ADJOURNMENT: The meeting was adjourned at 4:45 p.m. Craig Petersen Chairman W lyoa� I James DeStefano Secretary/Planning Commission December 3, 1990 Page 2 homes on about 160 acres. It is before the Committee because of the proximity to the SEA. The project involves substantial earth movements in order to create the pads for the homes, and also the removal of several mature oak Trees, as well as approximately 1,100 Walnut and Sycamore Trees. The project, which has been with the City of Diamond Bar for quite some time, is heading toward a Public Hearing before the Planning Commission and the City Council. James DeStefano suggested the comments of the SEATAC Committee be responded to in writing, with enough time allotted to allow for review of the responses. The SEATAC will review the project and provide a recommendation to the Planning Commission, possibly by the next regular meeting. The session today is intended to be an introductory discussion, and not a meeting to decide the projects environmental adequacies. James DeStefano stated the members of the SEATAC have received copies of the draft Environmental Impact Report, the appendices, and the copies of the SEATAC information prepared by Dr. King. Comments on Chairman Petersen began the discussion by stating his Tentative Tracts concerns and suggestions. 47850,47851, & Questions: 48407 1. He noted pages 7, 8, and 9 are missing from the Master EIR. 2. The California Department of Fish and Game (Natural Diversity Data Base) is supposed to be contacted in regards to any endangered, threatened, rare or unique elements in any kind of community. He stated there are no copies of any correspondence either to or from the agency. Copies must be included, as is specified in the Biota Report Requirements for SEATAC, page 3, dated June 12, 1987. 3. There is no specific data relating to the amount of runoff of various types, either water or sediments, going off the site in comparison to what kind of runoff would be coming off before grading, during grading, and after grading. He wondered exactly where the ultimate runoff is going to, and assumed during grading and the initial phase, much of it would be headed into the main body of the Tonner Canyon, SEA #15. 4. He was confused with the writings of the Environmental Assessment of Potential Impacts Report to the County stating, on page 32, "gunite swales would be delivering runoff to already constructed drainage systems in neighboring areas". He questioned if the neighboring area is the Country, and inquired how the Country disposes of their runoff. He referred to a contradictory statement on page 74, stating "the gunite swales December 3, 1990 Page 4 and the intense overgrazing on the Boy Scout land. The proponents of the project being addressed need to come up with some creative way to initiate a relevant study of the entire SEA #15. Some of it definitely needs to be saved or enhanced if considerate development of the area is to continue. Perhaps the formation of a task force on Tonner Canyon needs to be organized and funded in order to determine which parts should be saved and which should be developed. Maybe some mitigation needs to allow for the acquisition of a Tonner Canyon Nature Preserve, or a maintenance of a "Mountain Lion Corridor System" between Tonner Canyon and the Santa Ana Mountains. The City of Diamond Bar and the developers of this project have a unique opportunity to make a significant positive impact on the future of this rare environment. He compared the situation to the SEA #16 at Mt. San Antonio College which has been consistently eaten away to approximately 200 acres of basically a fire road. There is a unique opportunity here to make a difference for our children with this adjacent site. VC/Schmidt stated her concerns: 1. The EIR stated storm drains will ultimately tie into the natural drainage which she concluded meant the eventual dumpage into Tonner Canyon. She wondered, since this is occurring and is an Environmental Impact Statement, why there is no statement in the EIR on impacts from the water dumping into Tonner Canyon. There will be some important impacts such as litter, siltation, and erosion of downstream riparian areas. 2. The EIR reports it will impact 3% of the total SEA. It dismisses the 3% by stating the ERA is already degraded and there will be a buffer zone. She acknowledged the development has a nice buffer zone and a lot of open space but she strongly disagrees that only 3% will be impacted. Any impact will be way beyond the borders. It will be built on the watershed into Tonner Canyon and an SEA is set aside in an effort to preserve watersheds. Anytime a watershed is impacted, the impact on the edge will have a far greater impact than just the border of what is played around with. There are also impacts on pets, litter, noise, and also the visual quality of Tonner Canyon itself. Based on this, she believed the Impacts will be far greater than the less than 3% the EIR states. 3. She wondered what the County, or CC&Rs will specify when the domestic cat gets eaten by a wild coyote. Will there be pressure to poison the coyote regardless of the usefulness of coyotes for December 3, 1990 Page 6 trees used should be smaller in size (15 gallons) to become established faster and more appropriately. The cost for the trees will not be much different. 5. The EIR does not address run off water in relationship to surrounding property and how it will affect other land owners. He mentioned Mount SAC as an example of a drainage problem. 6. It would be appropriate for the City to review the entire SEA in relationship to projected developments in the Tonner Canyon and control it now as opposed to allowing the SEA to get chipped away. CM/Berry stated his concerns. 1. He is concerned with the sedimentation during the course of construction being subsequently released into local stream environments. This should be addressed in the EIR. 2. He referred to the overall piece meal way the project is being approached and believed ultimately there is a need to tie all areas of concern into a larger master plan to develop Tonner Canyon as a whole. 3. When referring to slope stabilization, the issue of how much of the riparian community at the base of the slope will be affected by such stabilization programs is unclear. How severely will the slope stabilization, slope grading, construction of buttress keys and fills actually affect the riparian community. It is his understanding if an intermittent blue line stream is to be affected, there is a need for documentation as stated by the Department of Fish and Game. 4. There is a slip plane believed to be coincident with a bentonitic tuft. A similar slope plane, associated with a bentonitic tuft, was a key culprit in the large scale Portuguese and cove landslides in the Palos Verdes Peninsulas. Fortunately here, the water table is far below the bentonitic tufts and doesn't seem to be affected as it had in the Palos Verdes Estates. He recommended the issue of dehydrating the tub, once development is made on top of it, be addressed in the report. With irrigation for plants on the surface, it is possible subsurface drainage might, in effect, activate the tub and cause some local landslide problems. It is peripherally addressed in the technical report. He suggested illustrating more specifically as to what steps are made to assure water does not contact with the bentonitic slip planes. 5. Though expansion figures are given with soils, one of the serious problems in the area with soilsseems to have to do with expansive clays. He December 3, 1990 Page 8 VC/Schmidt stated her commitments are as such there is no possibility to meet before the tentative date suggested. The other committee members concurred. Mr. Buffington inquired how the development team should address the regional master plan. James DeStefano suggested the utilization of the expertise secured within the existing development team to come up with a professional response to the master plan issur. Chair/Petersen invited the development team to ask for any clarifications on the comments made. Gary Mayser stated each concern was presented in an excellent manner and, after reviewing the EIR with Don King, he could see the areas discussed needed further clarification. Their team of geologists, landscape architects and the environmentalists will attempt to answer in a very professional manner. Don King stated the questions asked are quite clear and with xerox copies of the SEATACs notes, they will be able to respond to every concern. ANNOUNCEMENTS: James DeStefano clarified the SEATAC is a technical advisor to the Planning Commission. Their capacity is an advisory role on the impacts of the project to the SEA. Staff will take direction from the SEATAC to develop a report and upon the SEATACs adoption, will be forwarded to the Planning Commission. The report will be a part of the package the Planning Commission will receive and ultimately the City Council. He informed the project team members to note the changes made in the Hillside Development Standards, which were adopted in October, 1990, and revised in November, 1990. The development team should be looking at the existing conditions, plus this projecit, plus the cumulative effect beyond the border of the project, and how to mitigate those problems. James DeStefano mentioned an article in the Sunday Los Angeles Times newspaper concerning SEAs in the County. He offered to copy and distribute the article. ADJOURNMENT: Motion was made by CM/Berry, seconded by CM/Hewitt and CARRIED UNANIMOUSLY to adjourn the meeting at 3:00 p.m. AGENDA NO. I ------------------ -------------------------------------------------------------------------------- CITY OF DIAMOND BAR AGENDA REPORT -------------------------------------------------------------------------------- DATE: February 14, 1991 COUNCIL DATE: February 19, 1991 TO: Honorable Mayor and Members of the City Council VIA: Robert L. Van Nort, City Manager FROM: Sid Mousavi, City Engineer/Public eoigDirector SUBJECT: SURETY BOND RELEASES All work guaranteed by the following Surety Bonds has been completed and the Los Angeles County Department of Public Works is recommending the acceptance of work and release of Bonds. 1. Bond Number 83SB 100 360 427 guaranteeing street tree improvements for Tract No. 42576 in the amount of $8,700. Surety: The Aetna Casualty & Surety Company 100 West Broadway Glendora, CA 91210 Principal: Bramalea Ltd. 1 Park Plaza, Suite 1100 R Irvine, CA 92714 2. Bond Number 300 7 2322 guaranteeing the road improvements for Tract No. 45380 in the amount of $40,500. Surety: Fidelity and Deposit Company of Maryland P.O. Box 7144 Burbank, CA 91510 Principal: South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, CA 92705 (Narrative continued on next page if necessary) FISCAL IMPACT: Amount Requested $ Budgeted Amount $ In Account Number: Deficit: $ Revenue Source: REVD D B -------------------- Robert L. Van Nort Andrew V. Arczynski City Manager City Attorney Z--------------- j - Terrence Belanger Assistant City Manager 3. Bond Number ASI 100 204 guaranteeing road improvements for Tract No. 42581 in the amount of $86,000. Surety: Integrity Insurance Company 2101 West Alameda Avenue Burbank, CA 91506 Principal: South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, CA 92705 4. Bond Number ASI 100 219 guaranteeing road improvements for Tract No. 42589 in the amount of $401,100. Surety: Integrity Insurance Company 2101 West Alameda Avenue Burbank, CA 91506 Principal: South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, CA 92705 5. Bond Number ASI 100 214 guaranteeing road improvements for Tract No. 42583 in the amount of $90,900. Surety: Integrity Insurance Company 2101 West Alameda Avenue Burbank, CA 91506 Principal: South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, CA 92705 6. Bond Number ASI 100 193 guaranteeing road improvements for Tract No. 42579 in the amount of $101,100. Surety: Principal: RECOMMENDATION• Integrity Insurance Company 2101 West Alameda Avenue Burbank, CA 91506 South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, CA 92705 It is recommended that the City Council accept the work done on these projects and instruct the City Clerk to release the bonds and notify the Los Angeles County, Director of Public Works of the City Council's action. pP Los ?�y .Comas f `L� COUNTY OF LOS ANGELES � + J n f DEPARTMENT OF PUBLIC WORKS r qLIF PX 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803-1331 THOMAS A. TIDEMANSON. Director Telephone: (818) 458-5100 ADDRESS ALL CORRESPONDENCE TO: P.O.BOX 1460 ALHAMBRA, CALIFORNIA 91802-1460 January 24, 1991 IN REPLY PLEASE L-5 REFER TO FILE: The City Council City of Diamond Bar 21660 East Copley Drive, Suite 330 Diamond Bar, CA 91765 Dear Council Members: STREET TREE IMPROVEMENTS TRACT NO. 42576 VICINITY OF LONGVIEW DRIVE AND COLDSTREAM COURT All work guaranteed by the improvement security listed below has been completed. IT IS RECOMMENDED THAT YOUR COUNCIL: 1. Approve the work that has been completed. 2. Exonerate the following listed surety bond: Bond Number 83SB 100 360 427 Amount - $8,700 Surety - The Aetna Casualty and Surety Company 100 West Broadway Glendale, California 91210 Principal - Bramalea Limited One Park Plaza, Suite 1100 Irvine, California 92714 f �. Ply's?,instruct the City Clerk to send a copy of the City Council action on this recommendation to the surety, principal, and this office. `fiery truly yours, T. A. TIDEMANSON Director of Public Works City Engineer ,rN, C. DATWYLER U�yAssistant Deputy Director Land Development Division �.JG:ac/42576 cc: City Clerk THOMAS A. TIDEMANSON, Dlreetor January 24, 1991 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803-1331 Telephone: (818) 458-5100 The City Council City of Diamond Bar 21660 East Copley Drive, Suite 330 Diamond Bar, CA 91765 Dear Council Members: ADDRESS ALL CORRESPONDENCE TO: P.O.BOX 1460 ALHAMBRA. CALIFORNIA 91802-1460 IN REPLY PLEASE REFER TO FILE: L-5 ROAD IMPROVEMENTS TRACT NO. 45380 VICINITY OF PANTERA DRIVE AND REXFORD COURT The construction of road improvements guaranteed by the improvement security listed below has been completed in compliance with the plans and specifications. IT IS RECOMMENDED THAT YOUR COUNCIL: 1. Approve and accept the work for maintenance this date. 2. Exonerate the following listed surety bond: Bond Number 3007 2322 Remaining Amount - $40,500 Surety - Fidelity and Deposit Company of Maryland P. 0. Box 7144 Burbank, California 91510 Principal - South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, California 92705 Please instruct the City Clerk to send a copy of the City Council action on this recommendation to the surety, principal, and this office. Very truly yours, T. A. TIDEMANSON Superintendent of Streets/ City Engineer LG:ac/45380A cc: City Clerk x _ Y 'CIO: RN��' THOMAS A. TIDEMANSON, Director February 7, 1991 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803-1331 Telephone: (818) 458-5100 The City Council City of Diamond Bar 21660 East Copley Drive, Suite 330 Diamond Bar, CA 91765 Dear Council Members: ADDRESS ALL CORRESPONDENCE TO: P.O.BOX 1460 ALHAMBRA, CALIFORNIA 91802-1460 IN REPLY PLEASE REFER TO FILE- L-5 ROAD IMPROVEMENTS TRACT NO. 42581 VICINITY OF PANTERA DRIVE AND SHADY PLACE The construction of road improvements guaranteed by the improvement security listed below has been completed in compliance with the plans and specifications. IT IS RECOMMENDED THAT YOUR COUNCIL: 1. Approve and accept the work for maintenance this date. 2. Exonerate the following listed surety bond: Bond Number ASI 100204 Remaining Amount - $86,000 Surety - Integrity Insurance Company 2101 West Alameda Avenue Burbank, California 91506 Principal - South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, California 92705 Please instruct the City Clerk to send a copy of the City Council action on this recommendation to the surety, principal, and this office. Very truly yours, N r. A. TIDEMANSON Superintendent of Streets/ City Engineer LG:ac/42581 cc: City Clerk 1y °F�p LOS :�+ x ,r qC� .RN`P THOMAS A. TIDEMANSON, Direetor February 7, 1991 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803-1331 Telephone: (818) 458-5100 The City Council City of Diamond Bar 21660 East Copley Drive, Suite 330 Diamond Bar, CA 91765 Dear Council Members: ROAD IMPROVEMENTS TRACT NO. 42589 VICINITY OF DEEPSPRINGS DRIVE AND BOWCREEK DRIVE ADDRESS ALL CORRESPONDENCE TO: P.O.BOX 1460 ALHAMBRA, CALIFORNIA 91802-1460 IN REPLY PLEASE REFER TO FILE. L-5 The constructiotl of road improvements guaranteed by the improvement security listed below has been completed in compliance with the plans and specifications. IT IS RECOMMENDED THAT YOUR COUNCIL: 1. Approve and accept the work for maintenance this date. 2. Exonerate the following listed surety bond: r Bond Number ASI 100219 Amount - $401,000 Surety - Integrity Insurance Company 2101 West Alameda Avenue Burbank, California 91506 Principal - South Cduntry Corporation 1932 Deere Avenue, Suite 200 Santa Ana, California 92705 Please instruct the City Clerk to send a copy of the City Council action on this recommendation to the surety, principal, and this office. Very truly yours, �� zo��� �� T. A. TIDEMANSON eP" Superintendent of Streets/ City Engineer LG:ac/42589 cc: City Clerk ADDRESS ALL CORRESPONDENCE TO: P.O.BOX 1460 ALHAMBRA, CALIFORNIA 91802-1460 IN REPLY PLEASE February 7, 1991 REFER TO FILE: The City Council City of Diamond Bar 21660 East. Copley Drive, Suite 330 Diamond Bar, CA 91765 Dear Council Members: ROAD IMPROVEMENTS TRACT NO. .L 583_-, VICINITY OF BOWCREEK DRIVE AND CLAYWOOD DRIVE L-5 The construction of road improvements guaranteed by the improvement security listed below has been completed in compliance with the plans and specifications. IT IS RECOMMENDED THAT YOUR COUNCIL: 1. Approve and accept the work for maintenance this date. 2. Exonerate the following listed surety bond: A Bond Number ASI 100214 Remaining Amount - $90,900 Surety - Integrity Insurance Company 2101 West Alameda Avenue Burbank, California 91506 Principal - South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, California 92705 Please instruct the City Clerk to send a copy of the City Council action on this recommendation to the surety, principal, and this office. Very truly yours, a` T. A. TIDEMANSON v Superintendent of Streets/ City Engineer LG:ac/42583 cc: City Clerk COUNTY OF LOS ANGELES + + DEPARTMENT OF PUBLIC WORKS �gLIP itJ 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803-1331 THOMAS A. TIDEMANSO.N, Director Telephone: (8 18) 458-5100 ADDRESS ALL CORRESPONDENCE TO: P.O.BOX 1460 ALHAMBRA, CALIFORNIA 91802-1460 IN REPLY PLEASE February 7, 1991 REFER TO FILE: The City Council City of Diamond Bar 21660 East. Copley Drive, Suite 330 Diamond Bar, CA 91765 Dear Council Members: ROAD IMPROVEMENTS TRACT NO. .L 583_-, VICINITY OF BOWCREEK DRIVE AND CLAYWOOD DRIVE L-5 The construction of road improvements guaranteed by the improvement security listed below has been completed in compliance with the plans and specifications. IT IS RECOMMENDED THAT YOUR COUNCIL: 1. Approve and accept the work for maintenance this date. 2. Exonerate the following listed surety bond: A Bond Number ASI 100214 Remaining Amount - $90,900 Surety - Integrity Insurance Company 2101 West Alameda Avenue Burbank, California 91506 Principal - South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, California 92705 Please instruct the City Clerk to send a copy of the City Council action on this recommendation to the surety, principal, and this office. Very truly yours, a` T. A. TIDEMANSON v Superintendent of Streets/ City Engineer LG:ac/42583 cc: City Clerk y of jos, I t+t t -A X CIF Map THOMAS A. TIDEMANSON, Director February 7, 1991 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803-1331 Telephone: (818) 458-5 100 The City Council City of Diamond Bar 21660 East Copley Drive, Suite 330 Diamond Bar, CA 91765 Dear Council Members: ROAD IMPROVEMENTS TRACT NO. 42579 VICINITY OF ARMITOS PLACE AND BOWCREEK DRIVE ADDRESS ALL CORRESPONDENCE TO: P.O.BOX 1460 ALHAMBRA, CALIFORNIA 91802-1460 IN REPLY PLEASE REFER TO FILE: L-5 The construction of road improvements guaranteed by the improvement security listed below has been completed in compliance with the plans and specifications. IT IS RECOMMENDED THAT YOUR COUNCIL: 1. Approve and accept the work for maintenance this date. 2. Exonerate the following listed surety bond: s Bond Number ASI 100193 Remaining Amount - $101,100 Surety - Integrity Insurance Company 2101 West Alameda Avenue Burbank, California 91506 Principal - South Country Corporation 1932 Deere Avenue, Suite 200 Santa Ana, California 92705 Please instruct the City Clerk to send a copy of the City Council action on this recommendation to the surety, principal, and this office. Very truly yours, T. A. TIDEMANSON Superintendent of Streets/ City Engineer LG:ac/42579 cc: City Clerk AGENDA NO. CITY OF DIAMOND BAR AGENDA REPORT DATE: February 12, 1991 COUNCIL DATE: February 19, 1991 TO: HONORABLE MAYOR AND CITY COUNCIL VIA: ROBERT L. VAN NORT, CITY MANAGER FROM: SID JALAL MOUSAVI, CITY ENGINEER/DIRECTOR OF PUBLIC WORKS SUBJECT: MEDIAN RECONSTRUCTION; LANDSCAPE MODIFICATIONS AND TRAFFIC SIGNAL CONSTRUCTION ON GRAND AVENUE AT SHOTGUN LANE - AUTHORIZATION TO ADVERTISE FOR BIDS Attached are the plans for the installation of a traffic signal and median modifications at the intersection of Grand Avenue at Shotgun Lane as well as a resolution authorizing staff to advertise for bids. The traffic signal plan provides for a hardwire interconnect with existing traffic signal at the intersection of Grand Avenue and Summitridge Dr. The design of the plans has been coordinated with the current ingress and egress configuration to the Country. The median modification provides for a left turn into the "Country" from west bound Grand Avenue. The Engineer's Estimate for this project is: $19,000.00 Median Reconstruction (Project No. 91-03A) $65,000.00 Traffic Signal (Project No. 91-03B) $84,000.00 Total The funds for the median reconstruction as well as landscape modification has been provided by the "Country" while the Grand Avenue funds will be utilized to pay for traffic signal installation. RECOMMENDATION: It is recommended that the City Council approve the plans and authorize the advertisement of bids, by the attached Resolution No. 91-_, for the subject improvements with a bid date of March 12, 1991. It is anticipated that the contract will be awarded on March 19, 1991 and construction will begin in April, 1991, and will be completed in early May, 1991. RKA:Anb:2817:db-oc4:shotg un. bid FISCAL IMPACT: Amount Requested $ Budgeted Amount $ In Account Number: Deficit: $ Revenue Source: (Narrative continued on next page if necessary) -- - - - - - - - - - - - - - - - - - - - - - -------------------- Robert L. Van Nort Andrew V. Arczynski Terrence L. BelangC6?11 City Manager City Attorney Assistant City Manager 7/24/90 RESOLUTION NO. 91- A RESOLUTION OF THE COUNCIL OF THE CITY OF DIAMOND BAR APPROVING PLANS AND SPECIFICATIONS FOR THE MEDIAN RECONSTRUCTION, LANDSCAPE MODIFICATIONS AND TRAFFIC SIGNAL CONSTRUCTION ON GRAND AVENUE AT SHOTGUN LANE IN SAID CITY AND AUTHORIZING AND DIRECTING THE CITY CLERK TO ADVERTISE TO RECEIVE BIDS. WHEREAS, it is the intention of the City of Diamond Bar to construct certain improvements in the City of Diamond Bar. WHEREAS, the City of Diamond Bar has prepared plans and specifications for the construction of certain improvements. NOW, THEREFORE, BE IT RESOLVED that the plans and specifications presented to the City of Diamond Bar be and are hereby approved as the specifications for Median Reconstruction, Landscape Modifications and Traffic Signal Construction on Grand Avenue at Shotgun Lane. BE IT FURTHER RESOLVED that the City Clerk is hereby authorized and directed to advertise as required by law for the receipt of sealed bids or proposals for doing of the work specified in the aforesaid plans and specifications, which said advertisement shall be substantially in the following words and figures, to wit: "NOTICE INVITING SEALED BIDS OR PROPOSALS" Pursuant to a Resolution of the City Council of the City of Diamond Bar, Los Angeles County, California, directing this notice, NOTICE IS HEREBY GIVEN that the said City of Diamond Bar will receive at the office of the City Clerk in the City Hall of Diamond Bar, on or before the hour of 10:00 o'clock A.M. on the 12th day of March, 1991, sealed bids or proposals for the Median Reconstruction, Landscape Modifications and Traffic Signal Construction on Grand Avenue at Shotgun Lane in said City. Bids will be opened and publicly read immediately in the office of the City Clerk, Suite 100, 21660 E. Copley Drive, Diamond Bar, California 91765-4177. Bids must be made on a form provided for the purpose, addressed to the City of Diamond Bar, California, marked, 'Bid for Median Reconstruction, Landscape Modifications and Traffic Signal Construction on Grand Avenue at Shotgun Lane. PREVAILING WAGE: Notice is hereby given that in accordance with the provisions of California Labor code, Division 2, Part 7, Chapter 1, Articles 1 and 2, the Contractor is required to pay not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work. In that regard, the Director of the Department of Industrial Relations of the State of California is required to and has determined such general Page 1 prevailing rates of per diem wages are on file in the office of the City Clerk of the City of Diamond Bar, Suite 100, 21660 E. Copley Drive, Diamond Bar, California 91765-4177, and are available to any interested party on request. The Contracting Agency also shall cause a copy of such determinations to be posted at the job site. The Contractor shall forfeit, as penalty to the City of Diamond Bar, not more than fifty dollars ($50.00) for each laborer, workman, or mechanic employed for each calendar day or portion thereof, if such laborer, workman, or mechanic is paid less than the general prevailing rate of wages hereinbefore stipulated for any work done under the attached contract, by him or by any subcontractor under him, in violation of the provisions of said Labor Code. In accordance with the provisions of Section 1777.5 of the Labor Code as amended by Chapter 971, Statutes of 1939, and in accordance with the regulations of the California Apprenticeship Council, properly indentured apprentices may be employed in the prosecution of the work. Attention is directed to the provisions in Sections 1777.5 and 1777.6 of the Labor Code concerning the employment of apprentices by the Contractor or any subcontractor under him. Section 1777.5, as amended, requires the Contractor or subcontractor employing tradesmen in any apprenticeable occupation to apply to the joint apprenticeship committee nearest the site of the public works project and which administers the apprenticeship program in that trade for a certificate of approval. The certificate will also fix the ratio of apprentices to journeymen that will be used in the performance of the contract. The ratio of apprentices to journeymen in such cases shall not be less than one to five except: A. When unemployment in the area of coverage by the joint apprenticeship committee has exceeded an average of 15 percent in the 90 days prior to the request for certificate, or B. When the number of apprentices in training in the area exceeds a ratio of one to five, or C. When the trade can show that it is replacing at least 1/30 of its membership through apprenticeship training on an annual basis statewide or locally, or D. When the Contractor provides evidence that he employs registered apprentices on all of his contracts on an annual average of not less than one apprentice to eight journeymen. The Contractor is required to make contributions to funds established for the administration of apprenticeship programs if he employs registered apprentices or journeymen in any apprenticable trade on such contracts and if other Contractors on the public works site are making such contributions. The Contractor and subcontractor under him shall comply with the requirements of Sections 1777.5 and 1777.6 in the employment of apprentices. Page 2 Information relative to apprenticeship standards, wage schedules, and other requirements may be obtained from the Director of Industrial Relations, ex -officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices. Eight (8) hours of labor shall constitute a legal day's work for all workmen employed in the execution of this contract and the Contractor and any subcontractor under him shall employ with and be governed by the laws of the State of California having to do with working hours as set forth in Division 2, Part 7, Chapter 1, Article 3 of the Labor Code of the State of California as amended. The Contractor shall forfeit, as a penalty to the City of Diamond Bar, twenty-five dollars ($25.00) for each laborer, workman, or mechanic employed in the execution of the contract, by him or any subcontractor under him, upon any of the work hereinbefore mentioned, for each calendar day during which said laborer, workman, or mechanic is required or permitted to labor more than eight (8) hours in violation of said Labor Code. Contractor agrees to pay travel and subsistence pay to each workman needed to execute the work required by this contract as such travel and subsistence payments are defined in the applicable collective bargaining agreements filed in accordance with Labor Code Section 1773.8. The bidder must submit with his proposal cash, cashier's check, certified check, or bidder's bond, payable to the City of Diamond Bar for an amount equal to at least ten percent (10%) of the amount of said bid as a guarantee that the bidder will enter into the proposed contract if the same is awarded to him, and in event of failure to enter into such contract said cash, cashier's check, certified check, or bond shall become the property of the City of Diamond Bar. If the City of Diamond Bar awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City of Diamond Bar to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. The amount of the bond to be given to secure a faithful performance of the contract for said work shall be one hundred percent (100%) of the contract price thereof, and an additional bond in an amount equal to fifty percent (50%) of the contract price for said work shall be given to secure the payment of claims for any materials or supplies furnished for the performance of the work contracted to be done by the Contractor, or any work or labor of any kind done thereon, and the Contractor will also be required to furnish a certificate that he carries compensation insurance covering his employees upon work to be done under contract which may be entered into between him and the said City of Diamond Bar for the construction of said work. No proposal will be considered from a Contractor who is not licensed as a contractor at time of award in accordance with the provisions of the Contractor's License Law (California Business and Professions Code, Section 7000 et seq.) and rules and regulations adopted pursuant thereto or to whom a proposal form has not been issued by the City of Diamond Bar. The work is to be done in accordance with the profiles, plans, and specifications of the City of Diamond Bar on file in the office of the City Clerk at the City Hall, Diamond Bar, California. Copies of the plans and specifications will be furnished upon application to the City of Diamond Bar and payment of $25.00, said $25,00 is nonrefundable. Page 3 Upon written request by the bidder, copies of the plans and specifications will be mailed when said request is accompanied by payment stipulated above, together with an additional nonreimbursable payment of $10.00 to cover the cost of mailing charges and overhead. The successful bidder will be required to enter into a contract satisfactory to the City of Diamond Bar. In accordance with the requirements of Section 9-3 of the General Provisions, as set forth in the Plans and Specifications regarding the work contracted to be done by the Contractor, the Contractor may, upon the Contractor's request and at the Contractor's sole cost and expense, substitute authorized securities in lieu of monies withheld (performance retention). The City of Diamond Bar, California, reserves the right to reject any and all bids. The Engineer's Estimate is: $84,000.00 By order of the City Council of the City of Diamond Bar, California. Dated this 19th day of February, 1991 PASSED, ADOPTED and APPROVED by the City of Council of the City of Diamond Bar, California, this 19th day of February, 1991. Mayor ATTEST: City Clerk I, Lynda Burgess, City Clerk of the City of Diamond Bar, California, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the Council of the City of Diamond Bar, California, at its regular meeting held on the 19th day of February, 1991, by the following vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: City Clerk, City of Diamond Bar, California Page 4 Upon written request by the bidder, copies of the plans and specifications will be mailed when said request is accompanied by payment stipulated above, together with an additional nonreimbursable payment of $10.00 to cover the cost of mailing charges and overhead, The successful bidder will be required to enter into a contract satisfactory to the City of Diamond Bar. In accordance with the requirements of Section 9-3 of the General Provisions, as set forth in the Plans and Specifications regarding the work contracted to be done by the Contractor, the Contractor may, upon the Contractor's request and at the Contractor's sole cost and expense, substitute authorized securities in lieu of monies withheld (performance retention). The City of Diamond Bar, California, reserves the right to reject any and all bids. The Engineer's Estimate is: $84,000.00 By order of the City Council of the City of Diamond Bar, California. Dated this 19th day of February, 1991 PASSED, ADOPTED and APPROVED by the City of Council of the City of Diamond Bar, California, this 19th day of February, 1991. Mayor ATTEST: City Clerk I, Lynda Burgess, City Clerk of the City of Diamond Bar, California, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the Council of the City of Diamond Bar, California, at its regular meeting held on the 19th day of February, 1991, by the following vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: City Clerk, City of Diamond Bar, California Page 4; AGENDA ITEM NO. 10 NO DOCUMENTATION AVAILABLE AGENDA NO. ------------------------------------------------------------------------------- ------------------------------------------------------------------------------ CITY OF DIAMOND BAR AGENDA REPORT DATE: February 14 1991 MEETING DATE: February 19, 1991 TO: Honorable Mayor and Members of the City Council VIA: City Manager FROM: Terrence L. Belanger, Assistant City Manager via: Kellee Fritzal, Administrative Analyst SUBJECT: Second Anniversary Celebration BACKGROUND: On April 18, 1991, the City of Diamond Bar will celebrate the 2nd anniversary of its incorporation. The City Council, at the September 27, 1990 Strategic Planning Workshop, directed staff to plan a celebration in conjunction with the Chamber of Commerce Business Exposition. Committee members from the first birthday celebration, in addition to other interested community members, have been asked to plan the 2nd anniversary celebration. DISCUSSION: The Committee has met several times to review the first birthday celebration and to formulate plans for the second anniversary celebration. The second anniversary celebration will take place on April 13, 1991 at the Diamond Bar High School. Alta Ski and Sport's (Donalda Day and Ken Demaret) have volunteered to organize a Second Annual 1K/5K/10K Run/Walk. The run is scheduled for 8:00 a.m. with the awards ceremony at approximately 9:30 a.m. There are also plans to host a softball tournament, which will run throughout the day. The actual second birthday celebration activities will be held between Noon and 4:00 p.m. A ceremony with Council presentations and cake cutting is tentatively scheduled FISCAL IMPACT: Amount Requested $ Budgeted Amount $ In Account Number: Deficit: $ Revenue Source: n REVZEWEA) BY: Robert L. Van Nort City Manager (Narrative continued on next page if necessary) ---------------------- Andrew V. Arczynski City Attorney ----------- — Terrence L. Belang' Assistant City Manager ,age Two second Birthday Celebration oetween Noon and 1:00 p.m. There will be displays from the Sheriff's and Fire Departments. A City Information booth will be set up to sell the t -shirts, answer questions and to have pamphlets available. The anniversary celebration entertainment, games and activities are currently being arranged. Also, advertising and news releases will be prepared to publicize the entire event. RECOMMENDATION• Direct staff as necessary. DATE: February 15, 1991 AGENDA NO. ,,'_ clTx of DIAMOND BAR AGENDA REPORT MEETING DATE: February 19, 1991 TO: Honorable Mayor and Members of the City Council VIA: City Manager FROM: Terrence L. Belanger, Assistant City Manager via: Kellee A. Fritzal, Administrative Analyst,I-' SUBJECT: Recreation Services f' BACKGROUND: In September the City was notified that Walnut Valley Unified School District would no longer be providing recreation services as of July 1, 1991. As a result, on November 6, 1990 the City Council approved a Request for Proposal for Recreation Services. The RFP was sent to sik organizations: City of Brea, City of Pomona, City of Walnut, Diamond Bar/Walnut YMCA, Los Angeles County Parks and Recreation Department and Rowland Unified School District. Three proposals were received: City of Brea, Diamond Bar/Walnut YMCA and Los Angeles Parks and Recreation Department. On December 11, 1990 the proposed contract providers were interviewed by two Parks and Recreation Commissioners and staff. DISCUSSION: The Parks and Recreation Commission discussed contracting recreation service compared to providing an "in-house" program. If the City decided to create an in- house recreation department, staff would need to be recruited, hired and trained. The recreation process, procedures and marketing would need to be developed. Walnut Valley Recreation's last brochure will be the spring issue covering March to early June. The Diamond Bar recreation program needs to be developed and advertised by the middle of May. Currently, the City does not have all the equipment necessary to start up a recreation program. (Narrative continued on next page if necessary) FISCAL IMPACT: Amount Requested $ Budgeted Amount $ In Account Number: Deficit: $ Revenue Source: '- ---------------------- t Robert L. Van Nort Andrew V. Arczynski City Manager City Attorney ���---- - Terrence L. Belan r Assistant City Manager Page 2 Recreation Services Contracting services has several advantages such as levels of experience, existing organization structures, established procedures and a cost level comparable to providing the same level of service in-house. An experienced provider will be able to organize and develop a program that will fit the needs of Diamond Bar. A contract could be developed that would be subjected to the City's budget limitations, while being flexible. The City will be able to set up a system to monitor both the budget and programs offered by the recreation provider. The sub -committee favored the City of Brea's proposal due to the quality of recreation programming proposed, background experience and marketing skills they plan to provide to make sure the program is a success. The programming will be known as the City of Diamond Bar Recreation Service and Brea will not be mentioned in brochures or advertisement. The City of Brea originally provided a proposal with a net cost of $235,674. The Commission recommended that staff negotiate an amount within the level currently budgeted for recreation services. After discussions with the City of Brea it has returned a proposal with a net cost to the City of $150,000. The Diamond Bar/Walnut YMCA net cost was $180,052 and the proposal did not include all programs requested in the RFP. Los Angeles County Parks and Recreation proposal had a net cost of $337,706. RECOMMENDATION: The Parks and Recreation Commission recommends that the City Council authorize and direct staff to negotiate a final contract with the City of Brea, and bring back the contract at the March 5, 1991 meeting. AGENDA NO. 1i _ CITY OF DIAMOND BAR AGENDA REPORT DATE: January 21, 1990 MEETING DATE: February 5, 1991 TO: Honorable Mayor and Members of the City Council FROM: City Manager SUBJECT: PUBLIC FINANCE ADVISORS CONTRACT RECOMMENDATION: Staff recommends authorization to enter into an agreement with Kelling, Northcross & Nobriga, Inc. for financial management services to fund capital projects. The fee shall be in the amount of $15,000 plus one- half of one percent (0.5%) of the par value for each series of securi- ties sold, payable from proceeds of that sale. If no securities are issued, no fee is due. FISCAL IMPACT: Amount Requested $ Budgeted Amount $ In Account Number: Deficit: $ Revenue Source: 1 -v�• YSJ-�/{/----YJJL.".(i. ------------------- Robert L. Van Nort Andrew V. Arczynski City Manager City Attorney '�Ukv (s i Terrence L. Belan er Assistant City Manager KELLING, NORTHCROSS & NOBRIGA, INC. Bond Management Services for Public Agencies 5776 Stoneridge Mall Road Suite 380 Pleasanton, CA 94588 415.734.0755 FAX 415.734.0757 January 4, 1991 Members of the City Council City of Diamond Bar 21660 East Copley Drive, Suite 100 Diamond Bar, CA 91765 Ladies and Gentlemen: We are advised that the City of Diamond Bar (the "City") is contemplating a capital projects program and its financing. We are further advised that you wish to employ the services of an independent financial advisor to assist you in structuring a financing program, meeting any requirements for property assessments or voter authorization, if such is required, and selling and issuing securities. Accordingly, Kelling, Northcross & Nobriga, Inc. ("KNN") proposes to perform the services listed below in connection with your financing; if no property assessment or voter approval is required, Part B does not apply: A. Capital Project and Financing Planning 1) Review capital project needs with the City. 2) Assist City staff as appropriate in developing a capital project plan. 3) Recommend financing vehicles. 4) Assist in the selection of a public opinion survey firm if voter approval will be required, assessment engineer if assessments are to be made and other appropriate consultants, if any, to the extent the City desires such assistance. 5) Formulate and 6commend an overall financing plan based upon discussions with City staff and the capital projects needs of the City. Financing plan will include: a) type of securities; b) financing schedule; C) estimated amount of securities; d) provisions for the administration and flow of funds for payment of debt service; and e) preparation of schedules of debt service and any resulting tax rates or assessments. • Charter Member, National Association of Independent Public Finance Advisors • 595 Marker Street Suite 1350 San F[anCLSCo, CA 94105 415.362.4110 FAX 415.957.2610 - o. r;.„ CA 90232 213.836.6265 FAX 213.838.3160 Members of the City Council City of Diamond Bar January 4, 1991 Page Two 6) Attend all meetings as required and provide staff support during the planning process. B. Assessment or Voter Authorization (If Required) 1) Consult with bond counsel and other legal counsel in preparation and drafting of necessary documents for assessment district formation (if an assessment district financing) or community facilities district formation (if a Mello -Roos financing) and election process (if required). 2) Consult with the County Auditor and Assessor to research data on taxable parcels and assessed valuations, determine composition of existing tax base and provide projections based upon available planning data, as needed. 3) Prepare financing schedules, projected tax rates or assessment and tax rate impact reports to assess financial impact of the financing program on the property owners, based on strategies that will minimize the tax rate or assessment impact. 4) Consult with the County Registrar of Voters to establish the bond election proceedings and deadline dates, if voter approval is required. 5) Prepare the City's tax rate statement to be included in the voter pamphlet and review tax rate statement with the County Auditor, if voter approval is required. 6) Provide tax rate or assessment analyses to the City for public information, as appropriate. 7) Attend all meetings as required and provide staff support during the campaign process. C. Debt Issuance 1) Assist in selection of bond counsel and other consultants, if any, if not yet selected and City wishes such assistance. 2) Structure specific financings in accordance with the City's financing plan, capital project needs and financing requirements. 3) Coordinate the efforts of bond counsel, with respect to the preparation and approval of the financing documents by the City Counsel. 4) Attend all meetings and present materials for the debt financing procedure. Members of the City Council City of Diamond Bar January 4, 1991 Page Three 5) For an issue that is to be rated, prepare and coordinate a comprehensive presentation to the rating services. This presentation will cover all relevant information regarding the financing and will be designed to address the City's ability to fund the annual debt service payments through its tax base or general fund, as the case may be, and the dynamics of the local economy. Prepare a similar presentation to bond insurers, if insurance qualification is sought. 6) Prepare the official statement for the financing, which serves as a marketing instrument and a disclosure document of all material facts incident to the financing in a manner consistent with existing laws and standards of the securities industry. 7) KNN shall. recommend a method of sale and provide the following services: (a) Advise as to securities market conditions and timing of sale; (b) Should the City elect to offer its securities through public sale, KNN shall prepare and distribute the official notice of sale and bid form, along with the preliminary official statement, to prospective underwriters, respond t5* their questions regarding the financing, actively solicit their bids, coordinate publication of notices of sale, coordinate the bid opening process and calculate the net interest cost of each bid received to determine the lowest bidder; (c) Should the City elect to offer its securities through negotiated sale, KNN will assist the City in the selection of an underwriter, negotiate underwriting spread and interest rates on behalf of the City and monitor the underwriter's sales effort to ensure the lowest financing costs are achieved. 8) Coordinate the dglivery, printing and final approval of legal documents, and the preparation of closing certificates and final official statement. 9) Coordinate the work of the City and members of the financing team to ensure that the issue is consummated within a reasonable period of time. 10) For tax supported financing, assist in providing the necessary information to the County Tax Collector for the calculation and collection of the annual tax levy. City's Obligation The City agrees to cooperate with KNN, bond counsel and other parties to the transactions, and to furnish the necessary information for the preparation and drafting of the legal documents and the official statement, and to assert its best efforts to verify the accuracy of such information contained in such documents. Members of the City Council City of Diamond Bar January 4, 1991 Page Four Duration This agreement may be terminated by notice of the City to KNN or by KNN to the City. Compensation For the services to be provided by KNN as outlined above, KNN will be compensated with a fee in the amount of $15,000 plus one-half of one percent (0.5%) of the par value for each series of securities sold, payable from proceeds of that sale. If no securities are issued, no fee is due. KNN agrees to pay its own out-of-pocket expenses for local travel, computer and telephone, incurred by is in performing our duties and obligations. Other costs of issuance including but not limited to, the expense of bond counsel's fee, consultants' fees, trustee, paying agent or fiscal agent fees and charges, if any, printing, publishing and distributing the preliminary and final official statements and notice of sale, if any, printing and delivery of securities, travel expenses of City officials, out-of-state travel of KNN, if any, courier or delivery charges, and the cost of obtaining any statistical and tax data needed for developing a financing plan, by the rating services and/or for the official statement shall be paid by the City. Costs of issuance, subject to bond counsel approval, may be funded from proceeds of the financing. KELLING, NORTHCROSS & NOBRIGA, INC. By ---Vice President= Accepted: CITY OF DIAMOND BAR By City Manager Date MUNICIPAL FINANCE KELLING, NORTHCROSS & NOBRIGA, INC. Independent Financial Advisors to Public Agencies TABLE OF CONTENTS SECTION TAB Introduction ............................................. 1 Municipal Debt .......................................... 2 Common Types of Tax -Exempt Issues ............................ 3 Special Financing Techniques .................................. 4 General Tax Exemption Requirements ............................. 5 Taxable Issues ........................................... 6 Kelling, Northcross & Nobriga, Inc . ............................. 7 Appendix - Assessment and Mello -Roos Bond Procedures ................ 8 INTRODUCTION Kelling, Northcross & Nobriga, Inc. ("KNN") is an independent financial advisory firm providing bond management services to state and local government and 501(c)(3) nonprofit issuers of tax-exempt and taxable debt, be it short, medium or long-term, variable or fixed rate, competitive sale or negotiated sale. This brochure summarizes the major types of financing such issuers can do, which at the same time is a statement of what KNN can provide, and briefly describes KNN. For more information on any of these or other municipal finance topics, please contact: Jon B. Armstrong Vice President Kelling, Northcross & Nobriga, Inc. 595 Market Street, Suite 1350 San Francisco, California 94105 (415) 362-2925 MUNICIPAL DEBT The starting point for any discussion of municipal debt is, of course, the issuer. Debt may be issued by state and local governmental entities such as: Cities States Counties Redevelopment agencies School districts - Hospital districts - Water, sewer, fire and other districts - State departments, agencies and authorities - State colleges and universities - Nonprofit charitable 501(c)(3) organizations (such as many hospitals, colleges and universities) financing through a state or local governmental entity - Joint power authorities - State and local housing authorities State and local governmental entities issue debt for a variety of purposes such as: - Water, sewer and power projects - Transit systems - High speed intercity rail facilities - Resource recovery systems - Infrastructure improvements - Redevelopment projects (taxable debt may be required) - Unfunded pension liability financings (taxable debt required) - Short-term cash flow financing - Industrial development projects (can use tax-exempt debt for manufacturing projects whose amount of financing and capital expenditures meet the $10,000,000 small issue exemption and other federal tax law requirements; taxable debt required for other types of projects or manufacturing projects exceeding the small issue exemption) - Jails - Airport facilities - Harbor facilities - City halls, county administrative centers and municipal buildings and facilities of all kinds - Parks - Land - Parking facilities - Equipment - School facilities - Facilities of 501(c)(3) organizations - Low income single and multi -family housing projects (restrictive federal tax rules apply to tax-exempt housing financing; may be preferable to use taxable rather than tax-exempt debt) Liability insurance, either individual agency or pools 2 Advance refunding of existing debt Current refunding of existing debt Clean up of hazardous substances on public or private property (taxable debt may be required) Renovation of public or private buildings for seismic safety standards compliance (taxable debt may be required) 3 COMMON TYPES OF TAX-EXEMPT ISSUES General Obligation Bond General obligation bonds, or "G.O. bonds", are issued by state or local governmental entities with taxing power (e.g., state, county, city, school district, special district) for funding public facilities (e.g., civic center, sewage plant, law enforcement, fire protection, etc.) and are secured by the full faith and credit and taxing power of the issuing entity. G.O. bonds are the most secure form of municipal debt and carry the lowest interest rate. Ad valorem property taxes are levied (i. e. , a percentage of assessed value) to pay debt service. Projects financed with G.O. bonds must be for the acquisition or improvement of real property, including attached personal property (but not stand-alone equipment). Capitalized interest and debt service reserve funds are not required. In California, G.O. bonds require 2/3 voter approval and competitive sale (except counties and school districts are permitted negotiated sale), and, depending upon the type of governmental entity, there is a constitutional or statutory limitation in terms of a percentage of assessed valuation on the amount of G.O. bonds that may be outstanding. General law cities can issue G. O. bonds up to 15 %, general law counties up to 5 % (up to 15 % for certain water conservation, flood control and road projects), unified school districts up to 2.5% and other school districts to 1.25 % of assessed valuation. Charter cities and counties may have their own G.O. bonds limit. G. O. bonds may be issued for up to thirty years by most issuers except school districts, limited to twenty-five years. Tax Allocation Bonds In California, tax allocation bonds ("TABs") are issued by redevelopment agencies to revitalize blighted and economically depressed areas of a community. They are issued for the purpose of constructing public facilities in the blighted region. A redevelopment project area is established and the assessed value for that area is "frozen" as the tax base for tax increment calculation. From that point on, increases in tax revenue, "tax increment," from any increase in assessed value in that project area go to the redevelopment agency for redevelopment agency purposes and debt service on TABs. TABs, unless insured, generally have no other security than a tax increment (and a small reserve fund). TABs do not require voter approval but must be cometitively sold, except that tax-e*empt refunding TABs, TABs issued by a joint powers authority (such as a city and its redevelopment agency) under the Marks -Roos Local Bond Pooling Act and taxable TABs of any kind may be negotiated. Under the Tax Reform Act of 1986, it can become difficult to structure a transaction involving a private developer or user that also meets requirements for tax -exemption, necessitating the use of a taxable TAB issue in such cases. Writing down from market the price of property as an inducement to development is an example contrary to requirements for tax-exempt TABs. 4 Revenue Bonds Many governmental entities are permitted to issue revenue bonds on a negotiated or competitive sale basis without voter approval being required, which are secured by and payable from the general fund, an enterprise fund or a project's revenues. In California, the situation is more restrictive. Charter cities (though not all, without charter amendment) and various state authorities are the primary entities allowed to issue revenue bonds without voter approval. Otherwise, a requirement of 2/3 voter approval will generally apply for such bonds (but not for revenue based certificates of participation, described below). Lease Revenue Bonds Lease revenue bonds are issued by cities, counties, various districts, nonprofit corporations, redevelopment agencies and joint power authorities to construct or acquire a facility to be leased to a public entity in return for lease payments in the amount of (and which secure) the debt service on such bonds. In California, depending on the issuer and situation, lease revenue bonds may require 2/3 voter approval. Certificates of participation Certificates of participation ("COPs") have become the mainstay of revenue and general fund based financing for public agencies in California and other jurisdictions where the use of bonds carries legal restrictions not applicable to COPS and the use of COPs is supported by case law or statute. Structured on the basis of a financing lease or an installment sale, COPS are certificates representing the owners' participation in the stream of lease or installment sale payments made by the borrowing public agency as lessee or buyer under the lease or installment sale, as the case may be. As a rule, the financing lease structure is used for general fund obligations and the installment sale structure is used for enterprise fund obligations. The lessor or seller is usually a nonprofit corporation set up by the public agency solely to act as lessor or seller in these transactions. Either way, financing lease or installment sale, the financing structure collapses and title reverts to the public agency when all COPS have been fully paid. The public agency is assigned all responsibilities and powers for project construction and acquisition, and a bank corporate trust department is assigned all responsibilities and powers to receive and enforce lease or installment sale payments from the public agency and pay debt service therefrom to owners of the CO1?s, effectively removing the non-profit corporation from any functional part of the transaction. The lease or installment sale payments usually are an obligation of the general fund, but may, when the fund is large enough to support the issue, be an obligation solely of an enterprise or special fund. In California, COPS can be sold by competitive or negotiated sale without voter approval, debt limitation or interest rate limitation (other than applicable state usury law). In California, general (but not enterprise) fund obligations are subject to abatement (by law a public agency that is a general fund entity cannot be compelled to make payments from its general fund for that which it does not substantially have the use of), so COPS subject to abatement are typically rated 1/2 grade lower than revenue bonds to compensate for the risk that the project financed will not be completed or delivered on time, before debt service payments begin (interest payments to investors during the acquisition/construction period plus a cushion 5 of three to six months for possible delays are funded from COP proceeds placed in a capitalized interest fund), or that substantial use will be lost in the future (business interruption insurance for a period and amount sufficient to pay debt service during replacement of destroyed facilities or equipment financed is a standard covenant requirement). Anticipation Notes California state law and federal tax law create specific provisions for short-term cash flow financing (as opposed to longer term capital expenditure financing) known as "anticipation notes" of various types to cover expected temporary cash flow deficits provided that the principal and interest due is paid from revenues received in the same fiscal year as the borrowing. California law requires that such borrowing do not exceed 85% of the anticipated revenues of the borrowing agency for that year, and that final maturity is no more than 15 months after issuance. If applicable federal tax rules are followed, the interest on such borrowing is tax- exempt and the proceeds may be invested at an unrestricted yield not subject to rebate. Federal tax -exemption of the interest on anticipation notes and unrestricted yield on the investment of proceeds (but not freedom from rebate) is granted if the face amount issued does not exceed the amount of the maximum cumulative cash flow deficit anticipated to be reached at some point during the life of the notes, plus the next 30 days' budgeted expenditures, and final maturity is no later than 13 months after issuance. Cumulative cash flow deficit is equal to the deficit of cumulative unrestricted cash expenditures over cumulative cash revenues plus unrestricted cash on hand at the beginning of the fiscal year (excluding anticipation note proceeds and payments), measured at the end of an accounting period. The issuer may subdivide the calendar year into any uniform interval desired in establishing an "accounting period" with which to measure a deficit. In practice, most issuers subdivide their cash flows on either a two week or monthly basis. Some use a daily basis, at least for the 30 to 60 day period used to determine maximum issue size. Under federal tax law, arbitrage earnings on anticipation note proceeds (the portion, if any, of the yield to the issuer on investment of proceeds in excess of the yield to investors on the tax-exempt issue) are subject to rebate unless one of the following applies: (a) all of the gross proceeds (excluding amounts held in a bona fide debt service fund if earnings thereon do not exceed $100,000 annually, or a reasonably required reserve or replacement fund; provided that, in the case of a reasonably required reserve or replacement fund, arbitrage earnings thereon are rebated) are spent on governmental purposes within six months of issuance; or (b) (i) the issuer has general taxing power, (ii) no part of the issue is a private activity bond, (iii) 95% or more of the net proceeds are to be used for local governmental purposes of the issuer, and (iv) the size of the issue does not exceed $5 million and the issuer anticipates issuing an aggregate of no more than $5 million of any kind of tax-exempt debt over the same calendar year; or (c) the actual cumulative cash flow deficit (excluding anticipation note proceeds and payments but including earnings on the note proceeds) reached at some point 0 within six months of issuance must exceed 90% of the amount of notes issued ("safe harbor" rule); or (d) the proceeds are invested only in other tax-exempt securities or held as cash, uninvested. Basically, rules (b) and (c), effectively dividing issuers into those who anticipate issuing more than $5 million in aggregate tax-exempt debt of all kinds during the calendar year, and those who do not so anticipate, are the only two exceptions that permit effective arbitrage earnings on note proceeds. Various anticipation note types are: Bond Anticipation Notes (BANs), Construction Loan Notes (CLNs), Grant Anticipation Notes (GANs), Revenue Anticipation Notes (RANs), Tax Anticipation Notes (TANS), and Tax and Revenue Anticipation Notes (TRANs). TRANS are the most common variety of anticipation notes for school districts. Anticipation notes may be sold by competitive or negotiated sale. California Assessment Bonds (1911, 1913 and 1915 Acts) Special benefit districts can be formed and assessments levied where the land of a property owner will specifically benefit from the improvement and/or acquisition for which the special assessment is levied. The three most general assessment bond acts (there are some others) are as follows: 1911 Act - Each individual bond certificate issued under the Improvement Act of 1911 (the "1911 Act") constitutes a corresponding direct lien against a specific parcel of property. There is no debt service reserve. The municipal treasurer bills the property owner for the principal and interest installments as they become due, collects the payments, and remits the funds to the bondholder. Appr9val of the landowner is required for any assessment. 1913 Act - The Municipal Improvement Act of 1913 (the "1913 Act") is a procedural act which provides for the formation of the assessment district, the levy of an assessment and the creation of a lien against the property, but does not, in itself, contain provisions for the issuance of bonds. 1915 Act - The Improvement Bond Act of 1915 (the "1915 Act") provides for a method of issuing bonds secured by assessments levied under one of the assessment acts such as the 1913 Act. It does not, in itself, provide the machinery for creating a special assessment lien. Under the 1915 Act, all of the assessments in the aggregate secure all of the assessment bonds issued. 7 There is a debt service reserve, normally 5 % to 10 % of issue size, or equal to six months' debt service. Before construction of the improvement has begun, the assessment procedure is completed. If there are assessments remaining uncollected from affected property owners, bonds may be issued pursuant to either the 1911 Act or, most commonly, the 1915 Act. Assessment bonds may be on a competitive or negotiated basis. Often they are used for financing infrastructure projects in connection with new developments while the only property owner is the developer. An election is not required, but there are public hearings and procedures wherein a "majority" protest of affected property owners then triggers a requirement for 4/5 approving vote by the legislative body of the sponsoring local government in order to proceed. Assessment bonds may be used for infrastructure projects such as water and sewer, parks, parking facilities, pedestrian malls, streets, street lighting, sidewalks, gutters, fire protection, landscaping, retaining walls, navigation facilities and certain others, depending on the particular authorizing act used. Assessment bonds issued under the 1915 Act can have a final maturity of up to approximately forty years, but, except for some water or sewer projects, usual practice well supported by market acceptance is to have a final maturity of twenty to twenty-five years. Besides the 1911 Act, the 1915 Act, 1913 Act and other assessment bond procedures, California charter cities may establish their own assessment bond procedures by amendment and ordinance. The 1915 Act restricts its bonds to being fixed rate debt; charter cities, however, can issue variable rate demand assessment bonds where their charter allows. So far, variable rate assessment bonds have been done in California for some of the largest assessment bond issues of some charter cities. California Mello -Roos Bonds In California, bonds may be issued pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Mello -Roos Act") for a wide variety of municipal facility projects by community facilities districts created by the legislative bodies of local governments, including school districts, with 2/3 approval of the voters or landowners within the proposed community facilities district. A local government may finance any facility normal to its operation with Mello -Roos bonds, including personal property (equipment), with a useful life over five years. Mello -Roos bonds also may be issued to acquire, improve, rehabilitate or maintain real or tangible property, publicly or privately owned, for removal or remedial action to clean up hazardous substances, or to finance reconstruction or replacepent of damage from the October 17, 1989 earthquake located within a Presidentially declared disaster area. Mello -Roos bonds and the special tax formula and levy to support the bonds require 2/3 voter or landowner approval within the community facilities district. All Mello -Roos voter approvals can be combined in one ballot measure and election. Community facilities district boundaries are selected to encompass all those who will benefit from the project. They may be essentially the same as the local government's boundaries but more typically only a portion of the sponsoring government's jurisdiction is deemed to benefit from the project to be financed. District boundaries can be drawn very precisely, e.g., excluding trailer parks restricted to senior citizens or parcels owned by charitable nonprofit organizations; borders also do not have to be contiguous. In addition, parcels judged to benefit from the improvements need not border on the improvements or be directly connected to the N. improvements. This selectivity in boundaries obviously can translate into a major advantage over G.O. bonds in obtaining the requisite voter approval. Another potential advantage over G.O. bonds is that the size of a Mello -Roos issue is not restricted to a set percentage of assessed value. This may be particularly important to a smaller school district constrained by a G.O. bond limitation of 1.25% or 2.5% of assessed value. A special tax, collected with and on a par with property taxes, is levied sufficient to pay generally 1.10 times debt service on the Mello -Roos bonds. A community facilities district also may be formed and a special tax levied to generate operating revenue for certain specified purposes, without authorizing or issuing bonds. The special tax on property may be levied according to any reasonable formula that is equitable, provided that it is not ad valorem, i.e., based on assessed value. As a practical matter, the formula should be easy for the county to assess when collecting taxes on behalf of the community facilities district. The municipality may determine the tax formula itself, but may prefer to employ a consultant experienced in formulating special tax levies. A good tax formula often is critical in gaining voter approval of the levy. While Mello -Roos financings can be used in built-up areas, they are particularly useful tools in development areas when the 2/3 voter approval can be obtained from the developer(s) prior to sale of homes to individuals. Mello -Roos bonds may be negotiated or competitively sold and, so far, frequently have been negotiated. Their debt service reserve usually is an amount equal to the smaller of maximum annual debt service or 10% of the issue size. Mello -Roos bonds can have a final maturity of up to forty years. California Community Rehabilitation District Oblgations A California city or county may, by action of its legislative body, including appropriate public hearing, form a community rehabilitation district (provided the district does not overlap any designated project area of a redevelopment agency). A community rehabilitation district may rehabilitate or expand streets, sidewalks, curbs, gutters, traffic control signals and signs, sewer and water lines and facilities, bridges, public buildings, flood control works, libraries, criminal justice facilities or park and recreational facilities. The district can finance such rehabilitation or expansion in three ways: (a) levy assessments and issue assessment bonds pursuant to the 1911, 1913 and 1915 Acts described earlier; i (b) levy a special tax and issue Mello -Roos bonds pursuant to the Mello -Roos Act described earlier; or (c) issue Senior Obligation Bonds under the Community Rehabilitation District Law. Senior Obligation Bonds are secured and paid by property tax revenue, with a claim prior to distribution of property tax revenue to any other entity of government except any tax increment due a redevelopment agency, provided that such debt service shall not exceed 25% of the property tax revenue of the city or county establishing the district. Majority (over 50%) approval of the voters of the district is required for issuance of Senior Obligation Bonds. Senior Obligation Bonds must be sold competitively. Interest payment and principal amortization dates D are established by the district at time of issuance. Bond counsel for Sewer Obligation Bond financing generally will require court validation. California Infrastructure Financing Districts California cities or counties may form an infrastructure financing district (provided the district does not overlap any designated project area of a redevelopment agency) for the purpose of using tax increment to finance improvements to serve new development that provides significant benefit to a community wide or regional area (that may be larger than the infrastructure financing district). Highway interchanges, bridges, sewage and water treatment plants, parks and solid waste transfer facilities are examples of such regional benefit improvements. Infrastructure financing district formation requires 2/3 voter or landowner approval within the proposed infrastructure financing district, following similar public hearing and other formation procedures as Mello -Roos community facilities district formation. Tax increment occurring after the fiscal year of infrastructure financing district formation (i.e., the increase in tax revenue from growth in assessed value within the district after the base fiscal year of formation) may be used to pay principal of and interest on: (a) tax allocation bonds issued by the infrastructure financing district upon 2/3 voter or landowner approval (approval may be combined with district formation approval); (b) pledged to pay principal of and interest -on 1915 Act assessment or Mello -Roos bonds (providing further security to assessments or the special tax, respectively); or (c) used to acquire over time a completed project (contractor or turn key financing). Affected taxing agencies must consent to diversion of their tax increment. Tax increment of the non consenting agency is not available. School district and county office of eduction tax increment by law is not available. Bond counsel for infrastructure finance district financing generally will require court validation. California Motor Vehicle License Fee Account California cities and counties may provide additional security for payment of debt obligations by directing the State Controller to meet debt payment obligations with monies to which the city or county is entitled at that time as its allocation from the Motor Vehicle License Fee Account in the Transportation Tax Fund. However, there is no legal obligation on the part of the State to make such payments when the Controller is so directed. 10 Ratings; Bond Insurance Most assessment and Mello -Roos bonds are non -rated, and since most insurers are reluctant to insure issues not otherwise capable of an investment grade rating, among other reasons, most are also uninsured. Only the strongest assessment and Mello -Roos issues are occasionally being insured. However, there is a good market for non -rated California assessment and Mello -Roos bonds, and they can readily be sold by competitive or negotiated sale. Two major obstacles for assessment and Mello -Roos bonds to overcome for rating agencies and insurers are that (a) the developer may be the only tax payer until the project is fully developed and sold, and even then the particular tax payer base may not be large, stable, diversified or otherwise economically strong compared with investment grade tax or general fund secured debt, and (b) in extreme, property assessment or tax default by a parcel owner could take as long as five years to resolve before bondholders receive payment (covenants to prevent this possibility of delay are regularly a part of financing documents, but have not been adequately tested in the courts). Most investors are satisfied if most of the following conditions are met: a letter of credit secures principal and interest until the project is sold to permanent owners by the developer (a corporate developer with a guarantee from a large enough corporate parent may not need a letter of credit); assessed value to loan ratios in the vicinity of 3 to 1 or more; adequate debt service reserve (usually 5 to 10% of the issue or six months' maximum annual debt service is the minimum requirement); in the case of Mello -Roos but not assessment bonds, debt service coverage of at least 1.10 times; the tax base is strong; and the view that defaults of transactions meeting these criteria are infrequent enough to constitute an acceptable risk in a diversified portfolio with adequate yield. Other types of issues, where the basic security for the issue is a municipal general fund, taxes or, if large enough, a municipal enterprise fund, instead of a developer, usually are rated or insured or both. For issues of any kind that can be insured, bond insurance provides Aaa and AAA ratings from Moody's Investor Services and Standard & Poor's Corporation, respectively, or AAA from Standard & Poor's Corporation alone. The savings achieved, if any, after paying the insurance premium, varies with changing market conditions and the rating without insurance. The decision to insure usually is an economic one, though it may be influenced by covenant demands of the insurer, sometimes announced by the insurer only after final review of a financing for insurance commitment. If lower debt service results after paying the insurance premium, insurance normally should be used; otherwise, not. This decision can be made close to the time of marketing an issue, if application for insurance has been made sufficiently in advance. Some insurers are now making available debt service reserve insurance in lieu of funding a debt service reserve, which allows a smaller new issue. Some insurers also are willing to insure variable rate issues. Insurance is possible with taxable or tax-exempt issues. 11 SPECIAL FINANCING TECBMQUES Refunding Refunding is the procedure whereby an issuer refinances an outstanding debt issue with the proceeds of a new debt issue. The major reasons for refunding are: to reduce or restructure the issuer's remaining debt service requirement, or to remove a burdensome covenant imposed by the terms of the existing debt. Proceeds of a new tax-exempt issue are either deposited in escrow to pay the debt service on the outstanding debt for more than 90 days before the date on which the legal documents for the old debt permit -early redemption, and then are applied to redeem the outstanding debt, in which case the financing is known as an "advance refunding", or used within 90 days of issuance to retire the outstanding debt, in which case the financing is known as a "current refunding." If the refunding issue is tax-exempt, federal tax rules prohibit investing the proceeds in escrow at a yield on the escrow portfolio materially higher than the yield to investors on the new refunding issue. Also, the escrow earnings are subject to rebate to the U.S. Treasury of all arbitrage income. So the escrow investment portfolio is set up to not exceed in yield the yield to investors on the new refunding issue or it is comprised of tax- exempt securities, so no arbitrage can be generated. If the refunding issue is taxable, these federal arbitrage and rebate definitions and rules do not apply. Variable Rate Demand Obligations (VRDOs) A variable rate demand obligation ("VRDO") is a security with an interest rate that is reset at intervals according to the market, or according to an index or formula that is supposed to represent the market. Relying on a published market index almost always fails to match the market sooner or later, so an index approach is not recommended. Weekly resetting of the interest rate is the most common interval, followed by daily and monthly interest rate reset programs. Quarterly and semi-annual interest rate resets also are used. Interest usually is paid monthly. There are also more elaborate VRDO programs where the interval itself can be changed throughout the life of the issue (e.g., from weekly to daily to five years and back to weekly, as the issuer decides; however, each such change may require an updated tax opinion and offering memorandum). Nearly always, a VRDO may also be converted to a fixed rate of interest for the obligation's remaining term on any interest payment date the issuer chooses. There frequently are minor remarketing costs with each change in interest rate, but such costs are likely tp be substantial if the length of interval for resetting the interest rate is changed. The demand feature of a VRDO is the right of a holder to put his or her VRDO back to the issuer at face value. When a VRDO is put, a remarketing agent finds a new buyer. Should the remarketing agent fail to find a new buyer, a bank letter or line of credit is drawn upon to finance the repurchase of the VRDO, and the issuer is obliged to reimburse the bank. VRDOs historically are the lowest cost financing available for the long term, even with ongoing bank letter of credit and remarketing agent fees added to the interest rate. Bonds or certificates of participation, tax-exempt or taxable, can be structured as VRDOs. 12 Extendable Debt - Select Your Own Interest Rate Bonds or certificates of participation, taxable or tax-exempt, may be structured with a specified target interest rate, with the length of the interest rate interval determined so that yield to investors over the new interval remains the target rate each time the prior interval expires, and a right of holders to put when the interval is reset. For example, the initial rate offered may be 6% for five years, then 6% for the next three years because market rates are higher when reset at five years, and then 6% for the next seven years because market rates have fallen at the eight year reset. Such issues are structured with a credit facility back-up, such as a commercial bank letter of credit, to guarantee the debt holder's ability to put the extendable security to the issuer at the time of interest rate reset and receive face value. If market interest rates increase to the extent that the target rate cannot be obtained at even a minimum interval, the rate becomes the lowest rate at which the minimum interval can be remarketed at face value. The maximum interval allowed is the remaining term of the credit facility then in effect. The advantage of extendable debt is that a long-term issue can be marketed with an essentially fixed short to medium-term interest rate, generally achieving a lower overall interest rate than a conventional long-term fixed-rate issue. Zero Coupon or Deep Discount Debt Zero coupon or deep discount debt, debt that pays no or little interest, respectively, prior to maturity and therefore sells initially at a deep discount and trades at a lesser discount thereafter (increasing "accreted value") until reaching face value at maturity, is popular with certain investors desiring to compound their investment at a known rate of return. Such debt is sometimes called "capital appreciation" bonds or certificates or "CABs". For issuers, such debt facilitates structuring a borrowing with ascending debt service payments through time. Low or no debt service during initial years obviously can be useful; the penalty is higher debt service in later years. Serial maturity zero coupon debt also can be structured with a level (or any other pattern, for that matter) debt service requirement overall. This is an advantage only if investor demand for zero coupon debt is strong enough that the issuer can gain a lower overall effective interest cost than provided by using conventional debt paying periodic interest. Historically, the market has only sometimes provided issuers with an effective interest rate advantage for using zero coupon debt, and the advantage has been small. Some public agencies use zero coupon debt with low ascending or no debt service to buy available property for facilities to be built in the future, expecting to refinance to level debt service at the accreted value of the debt at the time the facilities are built. The advantage is obtaining land now at low or no current cost that may not be available in the future at a reasonable price or at all. If the land is not used in the future, the plan is that land will have increased in market value sufficiently to be sold for enough to retire the debt. While real estate usually does increase in market value, the risk is that a sufficient increase will not occur by maturity to pay the fully accreted or face value of the debt or that the issuing public agency will then be financially capable of refinancing at that level of debt. 13 Special Taxes Many California public agencies may enact a "qualified special tax" to fund specified purposes with two-thirds voter approval. A qualified special tax is one levied uniformly on all taxpayers or property owners that is not levied ad valorem and is not for general purposes. A qualified special tax may be enacted permanently or for a specified length of time only, and may contain a provision exempting payment by taxpayers 65 years of age or older. There is no constitutional limit on the specific amount of qualified special tax that may be levied. Voters approve a tax formula, the maximum annual tax and the purposes for the tax. The actual tax levy is calculated each year within that maximum. The basic authority for a qualified special tax is Section 50079 et seq. of the California Government Code. Qualified special taxes usually are levied on a per taxable parcel basis ("parcel tax") as a flat amount per parcel. However, voters have approved parcel tax levies differentiated as to residential, business and unimproved parcels, parcel tax levy by square footage, and have included escalation factors, e.g., by a certain percentage each year. A parcel tax is collected with property taxes by the County for the taxing agency. A qualified special tax may be enacted for any funding purpose lawful for the public agency, e.g., operations, programs, salaries, maintenance, facilities, equipment, etc. As a practical matter, such taxes are most suited for funding other than major land and building expenditures. Major land and building expenditure financing is better handled through Mello - Roos or G.O. bond financings and tax levies, or revenue bonds or COP financing without tax levy. Unlike Mello -Roos or G.O. bond tax revenueTqualified special tax revenue is subject to the Gann limit. Revenue in excess of the Gann limit must be repaid to the tax payers. A Gann limit may be exceeded only with majority voter approval and only for a four year period. There may be successive four year periods with majority voter approval each time. School districts (but not other public agencies) may also apply annually for transfer of a portion of the State of California's unused Gann limit capacity; there is no assurance that such capacity will be available to a district in any subsequent year. Qualified special tax revenue in excess of the Gann limit cannot be relied upon for more than four years at the most, or beyond one year for school districts if State capacity is relied upon. Interest Rate Swap An interest rate payment exchange agreement, commonly known as an "interest rate swap", is a contractual agreement wherein a municipality agrees to exchange interest rate based payments with those of another party. Calculation of the payment amounts is defined by the agreement. There is no borrowing or investing of funds, or pledging, selling, buying or swapping of securities. Hence, laws dealing only with investment of funds or the aforementioned securities transactions do not apply. Legislation adopted in California provides explicit authority for municipalities, including school and other districts, to enter into interest rate swaps. A municipality can either make floating-rate payments and receive fixed-rate payments, or make fixed-rate payments and receive floating-rate payments. Interest rate swaps may be 14 structured in terms of taxable or tax-exempt rates. For municipalities, fixed and floating payments based on tax-exempt rates are generally the most appropriate. The floating-rate payments are based on a market index of thirty -day tax-exempt rates, redetermined weekly, and the fixed payment is at a rate appropriate to the term of the swap, which may be one to ten years, so there generally will be a spread between the two sets of payments. Considered by itself, a municipality will always choose to pay floating and receive fixed rate in order to obtain a positive spread, which can be used either to offset existing debt service requirements (effectively converts debt liability to variable rate when paired with existing fixed rate debt, which often is a lower cost variable rate package overall than a VRDO with attendant letter of credit and remarketing agent fees) or simply add revenue. A particularly strong use of such revenue is to significantly supplement, often by 100 to 200 basis points, and stabilize the return on a portfolio of short term investments, at no risk of investment capital. Or, a swap can be used just as a hedge against variable rate exposure, effectively matching variable rate assets to variable rate liabilities or fixed assets to fixed liabilities when assets and liabilities otherwise are not matched, one being variable and the other fixed. Pool Financings Since January 1, 1989, federal tax law defines pool financings as issues where the lesser of 5 % or $5 million of the net proceeds are reasonably expected to be used to make or finance loans, directly or indirectly, to two or more ultimate borrowers. The issuer must reasonably expect, without taking into account interest rates, that 95 % of the net proceeds of the pool issue will be so used. Written loan commitments must be in existence at issuance for at least 25% of the net proceeds of the issue, at least 25 % of the net proceeds must be lent to ultimate borrowers within one year of issuance, 50% within_ktvo years, 100% within three years, and loan principal repaid to the pool must be used to redeem pool debt no later than the close of the first semi-annual period after repayment. Pool proceeds not lent by the required times must be used to redeem debt within six months, payment of costs of issuance cannot be contingent and at least 95 % of the reasonably expected legal and underwriting costs associated with the issue must be paid within 180 days of issuance. Informally, the Internal Revenue Service has been attacking pool financings where debt issued before January 1, 1989 was obviously issued long prior to an actual business need for funds in the normal course of development of a project. 15 GENERAL TAX EXEMPTION REQUIREMENTS Tax Exemption As long as projects are financed by and for a state or local government entity, they may be financed with tax-exempt securities as "governmental purpose bonds." However, if there are tenants or users other than state or local governmental entities (other than the general public), municipal projects that otherwise would qualify for tax-exempt financing will generally require taxable debt as "private activity bonds," or treatment as "qualified private activity bond" if still tax-exempt. These federal tax code categories and rules apply across the board to all tax-exempt issues of whatever type. Except for short-term cash flow financing for state and local governments and qualified 501(c)(3) borrowers, which operates under its own subset of federal tax rules, working capital financing generally is not allowed and tax-exempt debt must be for purposes which constitute capital expenditures or the refinancing of debt for same. In tax code language, a "private activity bond" is any security which meets (a) the "private business use test," including the "private security or payment test," or (b) the "private loan financing test." Failure to meet all three of these tests means a security is a governmental purpose bond, which is the least restrictive case and the most common case for a public agency financing for its own benefit. The private business test is met if more than 10% of the proceeds of the issue are to be used directly or indirectly in a trade or business carried on by any person other than a governmental entity. The private security or payment test is met if the payments of debt service on more than 10% of the proceeds of the issue directly or indirectly are secured by or paid from any interest in or payments from property or borrowri money used or to be used for a private business. The private loan financing test is met if the proceeds of the issue used directly or indirectly to make or finance loans to persons other than governmental units exceeds the lesser of (a) 5 % of issue proceeds or (b) $5 million, unless the loan enables the borrower to finance any governmental tax or assessment of general application for a specific governmental function or which is a permitted investment. Additional rules further specify these tests. If one of the three tests is met, the issue is a private activity bond and the interest thereon is taxable, unless it is a "qualified" private activity bond. A qualified private activity bond is any: (a) exempt facility bond, (b) qualified mortgage bond, (c) qualified veterans' mortgage bond, (d) qualified small issue bond, (e) qualified student loan bond, (f) qualified redevelopment bond, or (g) qualified 501(c)(3) bond. 16 An exempt facility bond means an issue 95 % or more of the net proceeds of which are to be used to provide any of the following facilities, including functionally related and subordinate property to the extent not specifically prohibited: (a) airports, (b) docks and wharves, (c) mass community facilities, (d) facilities for the furnishing of water, (e) sewage facilities, (f) solid waste disposal facilities, (g) qualified residential rental projects, (h) facilities for the local furnishing of electric energy or gas, (i) local district heating or cooling facilities, 0) qualified hazardous waste facilities, or (k) high-speed inter -city rail facilities. "Net proceeds" means the proceeds of an issue less any amounts invested in a reasonably required reserve or replacement fund. Governmentally owned property managed or operated pursuant to a management or operating agreement by a non-governmental person is treated as governmentally owned and not a cause for private activity bond status if. (a) the term of a management contract does not exceed five years (including renewal options); (b) at least 50% of the compensation to any manager other than a governmental unit is on a periodic, fixed -fee basis, and no amount of compensation is based on a share of net profits; and (c) the governmental unit owning the facility may terminate the contract without penalty at the end of three years. Property leased by a nongovernmental person shall be treated as governmentally owned if: (a) the lessee makes an irrevocable election binding on the lessee and all successors in interest under the lease not to claim depreciation or an investment credit with respect to such property; (b) the lease term is not more than 80% of the reasonably expected economic life of the property; and (c) the lessee has no option to purchase the property other than at fair market value as of the time such option is exercised. Qualified private activity bonds, while the interest thereon is tax-exempt, are restricted in several ways that governmental purpose bonds are not. They are, among other things: 17 (a) subject to statewide volume caps on a aggregate issuance of $50 per capita per year, administered in California by the California Debt Limit Allocation Committee, except that qualified 501(c)(3) bonds and exempt facility bonds for airports, docks and wharves, and certain governmentally -owned solid waste disposal facilities are not subject to the volume cap; (b) restricted to an average issue maturity of not more than 120% of the average reasonably expected economic life of the facilities being financed; (c) restricted to using not more than 25 % of net proceeds of the issue to directly or indirectly acquire land or an interest therein, except in certain farmland, airport, mass commuting or dock or wharf financings; (d) required to provide funds for rehabilitation expenditures to be made in an amount equal to at least 15% of the cost of existing buildings and equipment therefor acquired (100% of the cost of any other existing structures acquired); (e) generally restricted to funding financing and other costs of issuance from issue proceeds an amount equal to no more than 2% of the aggregate face amount of the issue, except for bond insurance premiums and letter of credit fees treated as interest under the tax code by virtue of the employment of insurance or a letter of credit resulting in a present value net savings; and (f) their interest, except for qualified 510(c)(3) bonds and certain refunding issues, is a tax preference item for calculation of federal alternative minimum tax for corporations and individuals (making—"ATM Bonds" not quite as attractive to investors who pay alternative minimum tax). Rebate Under federal tax rules, earnings on unspent proceeds of tax-exempt debt issued after August, 1986 in excess of the yield to investors on that tax-exempt debt must be rebated every five years, and within 60 days of final maturity, to the U.S. Treasury. The exceptions to this rebate requirement are few, basically: (a) all gross proceeds (excl4ding amounts held in a bona fide debt service fund if earnings thereon do not exceed $100,000 annually, or a reasonably required reserve or replacement fund if arbitrage earnings thereon are rebated, but including any capitalized interest or funds) are (i) spent on governmental purposes within six months of issuance, or (ii), if a governmental purpose bond (other than a tax or revenue anticipation note) or a qualified 501(c)(3) bond, spent within one year of issuance if the amount remaining unspent at the end of the first six months of issuance does not exceed the lesser of 5 % of the gross proceeds or $100,000; (b) (i) the issuer has general taxing powers, (ii) no part of the issue is a private activity bond, (iii) 95% or more of the net proceeds are to be used for governmental purposes of the issuer, and (iv) the issue does not exceed $5 million 18 and the issuer expects to issue no more than $5 million in aggregate tax-exempt debt over the calendar year; (c) short-term cashflow financings meeting a safe harbor rule; (d) for governmental bonds, Section 501(c)(3) bonds and private activity bonds used to finance property to be owned by a governmental unit or Section 501(c)(3) organization, 75% or more of the net proceeds of which will be used for construction, reconstruction or rehabilitation purposes, if net proceeds are spent in the amount of 10% or more of the total net proceeds of the issue within the first six months of issuance, 45% or more within twelve months, 75% or more within eighteen months and 100% within twenty-four months or 95% or more within twenty-four months if the remainder is "reasonable retainage" to ensure compliance under a construction contract, and all of the "reasonable retainage" is spent within thirty-six months. (e) certain student loan program financing situations; and (f) earnings on issue proceeds invested in other tax-exempt securities or held in cash, uninvested. At the time of issuance (but not thereafter), an issuer may make a one-time election to be subject to a penalty rather than be subject to rebate calculations and payments (and the penalty for missed rebate payments) if issue proceeds are not spent as required under exemption (d) above. This penalty in lieu of rebate is 1.5 times the amount of proceeds not spent required to be spent at each six month interval, calculated every six months and payable within 90 days of the end of the relevant semi-annual period. As long as a spending shortfall continues to exist, the penalty is calculated and payable every six months for the life of the issue. Depending on the planned construction fund draw down schedule and the likelihood of meeting the requirements of exemption (d), it may be an economic advantage to make this election, plus it has the administrative benefit of avoiding rebate calculations. Rebate calculations require strict separate accounting and tracking of all cash flows of issue proceeds received, earnings specifically thereon and disbursements by issue. The monetary penalty for failure to pay under standard rebate provisions is 50% of the delinquent amount plus interest on the delinquent amount; plus, the delinquent amount must be paid. Bank Qualified Issues Issues -not exceeding $10 million where the issuer expects to issue no more than $10 million in aggregate tax-exempt debt of any kind over the calendar year are "bank qualified." Certain financial institutions may deduct their interest expense of carrying their investment in such issues. Bank qualified issues may achieve a slightly lower interest rate as a result (5 to 10 basis points). 19 TAXABLE ISSUES Many financings that can be done tax-exempt also can be done as taxable financings. Taxable bonds and notes can be structured as variable or fixed rate, and with or without a demand feature if they are variable. Taxable variable rate issues can be structured with variable interest rate intervals as well. That is, interest rate intervals can mimic intervals of commercial paper issuance, change to longer periods such as one year or five years and back to commercial paper intervals of 15, 30, 90, 270 days and so on, or held constant, such as seven day intervals. Taxable interest rates are generally priced at a spread over the interest rate of comparable maturity Treasury debt. This spread depends upon the creditworthiness of the borrower and market conditions. Taxable municipal debt usually is sold on a negotiated sale basis but can be sold by competitive sale. Federally taxable debt issued by a municipality is exempt from SEC registration and, in many cases, from state personal income taxation. There are some significant differences in the tax-exempt and taxable debt markets worth noting. One is that where tax-exempt municipal debt of more than a year or two until final maturity generally is structured with serial maturities (each maturity with its own stated interest rate), the institutional taxable market is accustomed to term maturities matched to certain bellwether term U.S. Treasury notes and bonds. Taxable debt with non-standard terms, when sold to institutions, can carry a premium in interest rate. This affects those serial maturities not precisely corresponding with the bellwether Treasury maturity dates. Small taxable issues also face an interest rate penalty among institutional investors because of perceived lack of trading liquidity. However, the retail market for taxable debt, while much smaller, generally is free from the various interest rate penalties demanded by institutional investors, and is in many cases 25 to 50 basis points lower in interest rates as well. This is an advantage for taxable TABS and other taxable municipal debt. Commercial paper also is available. Commercial paper is a short term promissory note issued in either registered or bearer form, usually backed by a line or letter of credit and always backed, in the case of a municipal borrower (as opposed to an industrial development borrower), by a pledge of the first tax and other revenues to be received in the months specified in the pledge and by any other legally available funds. It is usually issued as a discount note with a maturity under 90 days, though may berissued for terms as long as 270 days. Commercial paper is done within a program authorized by the issuer of up to a maximum amount for a set number of years. At any given time there may be no commercial paper, the entire authorized program amount, or any amount in between, outstanding. Programs are impractical if smaller than $25 million, and should be at least $50 million to avoid any interest rate penalty due to program size. Commercial paper is sold on a negotiated basis. Most, but not all, situations where commercial paper might be used can also be handled by a variable rate demand obligation without the stringent minimum program size considerations of commercial paper. 20 KELLING, NORTHCROSS & NOBRIGA, INC. Kelling, Northcross & Nobriga, Inc. is an independent financial advisory fine_ that provides mal gement services to public agencies _offering, debt secuntles at competitive or negotiated sale. Competitive sale publicly demonstrates that the lowest available interest rate was obtained. In negotiated sale financings, low underwriting spreads and interest rates are achieved for client agencies by the firm negotiating the sale directly with the underwriter's commitment desk. Kelling, Northcross & Nobriga does not underwrite securities itself, so its sole obligation is to serve the best interest ot client agencies. In 1990 Kelling, Northcross & Nobriga structured and brought to market seventy-seven new issues, aggregating in excess of $460 million. The firm's experience and capabilities include structuring and managing all types of municipal issues for real property, equipment, working capital, refundings and self insurance programs, including tax and revenue anticipation notes, general obligation, tax allocation, assessment, Mello -Roos, revenue and industrial development bonds, certificates of participation, advance refundings, pooled financings and taxable municipal issues. For issues requiring two-thirds voter approval, the firm has a high 77% success rate obtaining such approval. Clients include cities, redevelopment agencies, counties, authorities, school districts, water and sewer, hospital and other special districts and 501(c)(3) health care organizations. [1 JA\nr d:\P\47Oo26.pro] 21 APPENDIX Typical Sequence of Events for Assessment and Mello -Roos Financings. Most assessment and Mello -Roos financings will require four to six months to complete, and may, in practice, take longer if they are developer financings, since much is dependent on the speed with which the developer can pursue his project. They also may take longer if an assessment or communities facilities district must be formed. Engineering, architecture, financing aside from the assessment or Mello -Roos bonds, environmental impact report procedures, various governmental permits and negotiations will all, as a practical matter, intervene at various times. Municipal projects using assessment or Mello - Roos financing in some respects will normally work faster, but they are not immune to delay and there always may be political sensitivities to address. We prefer the approach of always being ready to do the next step, whenever the next step becomes possible. The legal procedures for both financings are relatively long in number of steps, though usually not terribly complex. They normally are set forth in detail by bond counsel. As financial advisor, KNN will develop a financing schedule that ties the requirements of the sponsoring municipality, bond counsel, developer and, if negotiated, the underwriter together for a specific financing. Typical Assessment Bond (1913 ACT) Procedures Property Owners - Contact public agency to solicit procedures - Execute petition requesting project - Present to City Council - Consider waiving 1931 Act and cash collection City Council - Approve petition - Retain consultants (engineer, bond counsel, etc.) - Adopt resolution of intention - Resolution to adopt engineer's report and fixing time for public hearing - Resolution calling for construction bids - Resolution of issuance/notice of sale of bonds - Mair notices to property owners Design Engineer - Prepare engineer's report - Prepare plans, specifications and estimate right-of-way requirements - Obtain utility agreements EIR Consultant - Prepare Environmental Impact Report - Process Environmental Impact Report Assessment Engineer - Assessment roll and diagram - Method and formula of cost distribution - Boundary map A-1 Agency Staff - Review and approve plans, specifications and estimates - Conduct informational meetings Assessment Engineer - Advertise and open construction bids - Easement and right-of-way acquisition - Calculate final assessments Public Hearing - Conduct public hearing - Price bonds (negotiated sale) or open bond bids (competitive sale) - Confirm assessments - Award bonds - Award construction contract - Commence 30 -day cash collection Agency Staff - Record assessments - Notify property owners City Council - Resolution determining unpaid assessments - Notice to proceed with construction Staff and Consultants - Print and deliver bonds - Construction management A-2 Mello -Roos Bond Procedures 1 Process 1. Initiate proceedings, by: a) Legislative body on its own initiative; or b) written request by 2 members of Legislative body; or c) petition signed by 10% of the registered voters in the proposed community facilities district ("CFD"); or d) petition signed by 1001c of landowners in proposed CFD to institute proceedings to establish CFD. Written request and petitions under (b), (c) or (d) above, must be accompanied by payment of a fee (determined by Legislative Body) for all costs of creating CFD. Govt. Code Section Timq Frame 53318 53318(a) 53318(b) 53318(c) 53318(d) 2. Adoption of resolution of intention 53320 Within 90 days after initiation of to establish CFD by legislative proceedings by written request or body. Resolution must fix time and 53321(e) petition. place of public hearing not less than 30 or more than 60 days after adoption of resolution. r 3. Publish notice of public hearing in 53322 At least 7 dyas prior to hearing. newspaper of general circulation in the proposed CFD. Mail notice to each registered voter 53322.4 At least 15 days before hearing. and each landowner in proposed CFD (optional). 1 Provided by courtesy of Buchalter, Nemer, Fields & Younger, Los Angeles. A-3 4. Filing of written protests against 53323 On or before time fixed for establishment of CFD with clerk of hearing. legislative body. If 50% or more of registered voters, or six registered 53324 voters, whichever is more, or owners of one-half or more of the area of land proposed to be included in the district, file written protests, no further proceedings can be held to create CFD for one year from date of the decision of the legislative body. 5. Conduct public hearing (may be 53321(e) Not less than 30 or more than 60 continued, but must be completed 53325 days after adoption of Resolution within 30 days, unless legislative of Intention. body finds that complexity or need for public participation requires more time; then may be continued for up to 6 months). 6. Adopt resolution of formation of 53325.1 After public hearing. CFD (which will include a statement about the special tax, if one is proposed); determine validity of prior proceedings. — 7. Conduct election re: levy of special 55326 Next general election or at special taxes: election held between 90 and 180 days after adoption of resolution of a) if held less than 125 days after formation but may be waived if adoption of resolution of unanimous consent of electors and formation, concurrence of the election official. election official conducting the election is required; b) vote is by registered voters, each voter having one vote if 12 persons (not necessarily the same 12) have been registered to vote within the territory of the proposed CFD for each of 90 days preceding the close of the protest hearing; or A-4 c) if not 12 voters as described above, the vote shall be by landowners (who are owners of record at the close of the protest hearing), one vote for each acre or portion of acre. 8. Levy special tax (if tax does not 53328 After canvass of return of election receive approval by 2/3 of the votes if 2/3 of votes in favor of tax. cast, legislative body cannot levy a special tax in the CFD for one year. 9. Record notice of special tax 53328.5 Within 15 Street days and authorization with County successful Highway election Code Recorder. See. 3114.5 10.* Adopt resolution by legislative body 53345 to incur bonded indebtedness and setting time and place of hearing. 11. Publish notice of hearing in 53346 At least 7 days before Step 12. newspaper of general circulation 53347 for CFD. 12. Conduct hearing. 53348- 53349 13. Adopt resolution by legislative body 53350 designating improvement area, for financing specified public facilities. 14. Adopt resolution re. necessity of 53351 After making determination in Step incurring bond indebtedness and 13, setting date of special CFD election. i 15. Publish resolution from Step 14 as 53352 notice of special bond election *Steps 10 through 18 may be taken concurrently with Steps 1 through 8. A-5 16. Conduct special CFD election 53353.5 On date set forth in resolution reincurring bonded indebtedness. from Step 14. Ballot may combine proposals relating to levying special tax, incurring bonded indebtedness, and/or establishing or changing appropriations limit. A two-thirds vote is needed for revenue anticipation bonds. 53355 17. Adopt resolution relating to form, 53356 execution and issuance of bonds. 18. Action to determine validity of 53359 Within 30 days after voters approve bonds brought by interested person. issuance. 19. File notice of proposed sale of debt 53359.5 No later than 30 days prior to sale to CDAC. of bonds. 20. Publish notice of intention to sell bonds in Bond Buyer.**Not less than 15 days prior to sale of bonds. 21. Advertise for bids in general 53360 Not less than 10 days prior to sale circulation newspaper.** 53360.4 of bonds. 22. Open bids for purchase of bonds at 53360.4 At least 15 days after Step 20. specified location; approve resolution awarding bonds to best bidder. Bonds to be sold on sealed proposals to highest bidder unless the legislative body determines that a private sale would result in a lower overall cost. If negotiated sale, sign purchase contract following adoption of resolution approving purchase contract. If no bids received, or if the 53360 legislative body determines that the bids received are not satisfactory, it can reject all bids and either readvertise or sell at private sale.** **Not necessary in a negotiated offering. 23. Deliver bonds. About 3 weeks after Step 22. 24. Sell Bonds. CFD may sell bonds at the time and in the manner designated by the legislative body.53360 25. State Treasurer certifies bonds if 53361.4 legislative body deems it desirable or when CFD was established by the legislative body of a special district required to seek certification of its bonds by the Treasurer pursuant to the District Securities Investigation Law or other law. [1 JA\nr d:\P\470o31.app1 A-7 AGENDA NO. I' % CITY OF DIAMOND BAR AGENDA REPORT ---------------------------------------------------------- - DATE: February 13, 1991 MEETING DATE: February 19 1991 TO: Honorable Mayor and Members of the City Council VIA: Robert L. Van Nort, City Manager FROM: Charles Janiel, Director of Parks and Maintenance- SUBJECT: Parks Directional Signage DISCUSSION: At the present time, all park signage indicates that the County of Los Angeles is the provider of City parks. This situation includes park entrance signs, as well as, all directional signs. It is anticipated that the park entry signs will be undertaken as part of a more all-encompassing capital project that will design, construct and install City street signs, City directional signs and City entrance signs. In the interim, staff has responded to a City Council request to modify the park directional signs. Staff has created a prototype sign, which has been approved by the Parks and Recreation Commission and the Traffic and Transportation Commission; and is recommended to the City Council for its approval. RECOMMENDATION• Approve design concept and authorize staff to initiate production and installation of park directional signage. FISCAL IMPACT: Amount Requested Budgeted Amount In Account Number: Deficit: $ Revenue Source: $1,500 01-4310-2210 REVIEWED B)(:/,,,' ---------------------------------/ --- Robert L. Van Nort Andrew V. Arczynski Terrence Belanger City Manager City Attorney Assistant City Manager AGENDA NO. 1� CITY OF DIAMOND BAR AGENDA REPORT DATE: February 13, 1991 MEETING DATE: February 19, 1991 TO: Honorable Mayor and Members of the City Council VIA: Robert L. Van Nort, City Manager FROM: Sid Jalal Mousavi, City Engineer/Pu is orks Director SUBJECT: CALIFORNIA OFFICE OF TRAFFIC SAFETY GRANT California Office of Traffic Safety (OTS) Grants are available to local agencies upon their request and eligibility of their project. The intent of the program is to assist the agencies to improve their traffic safety and operation. DISCUSSION• The City of Diamond Bar, within this grant cycle, informed OTS of the City's traffic problems and requested funding to establish a satisfactory record of traffic control devices. The Traffic Control Device Inventory program will assist the City to assess the visibility, condition, and conformity of the devices with the manual of Uniform Traffic Control Devices. After assessing deficiencies, the inventory will enable the City to develop an ongoing system to update the inventory and increase the ability to correct future deficiencies as they occur. An effective program within the City is necessary for the establishment of meaningful and coordinated safety improvements and logical recommendation for possible future deficiencies. On February 6, 1991, the OTS informed us that they have approved our proposal and $79,705 will be allocated for this project. RECOMMENDATION• It is recommended that the City Council authorize staff to enter into an agreement with OTS and proceed with development of a comprehensive Traffic Control Device Inventory Program. FISCAL IMPACT: Amount Requested $ Budgeted Amount $ In Account Number: Deficit: $ Revenue Source: - HR ED B --- --------------------------------------- ----- p Robert L. Van Nort Andrew V. Arczynski Terrence L. Belang City Manager City Attorney Assistant City Manager